SPE-184869-MS

Applying Subsurface DNA Sequencing in Wolfcamp Shales, Midland Basin

Peter Lascelles, Jichun Wan, Lauren Robinson, Randy Allmon, and Grant Evans, EP Energy; Luke Ursell, Nicole
M. Scott, John Chase, Jelena Jablanovic, Moji Karimi, and Vik Rao, Biota Technology

Copyright 2017, Society of Petroleum Engineers

This paper was prepared for presentation at the SPE Hydraulic Fracturing Technology Conference and Exhibition held in The Woodlands, Texas, USA, 24-26 January
2017.

This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents
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Abstract
DNA diagnostics is a new reservoir characterization tool with potential to maximize reservoir production
in tight rock formations. DNA extracted from rock layers provides high resolution fingerprints that define
a "DNA stratigraphy" for organic intervals like the Wolfcamp. DNA sequences originate from microbes
feeding on organic matter or minerals within the formation. A DNA stratigraphic profile, or type section,
was assembled from a vertical pilot well's cuttings and core. The DNA signature from produced oil from
offset laterals was subsequently compared against the DNA type section to provide estimated effective
drainage height. Cuttings from a lateral well were compared with DNA from its produced oil to construct
a production profile comparable to a traditional production log. In addition, when oil samples are collected
over time, the method provides insight on interference, completion effectiveness, and SRV (Stimulated
Reservoir Volume) changes with time.
An optimized development plan in unconventional reservoirs requires operators to understand parameters
such as effective drainage height, hydraulic fracture half-length and individual stage contributions resulting
from their completions. Wolfcamp reservoirs consist of highly laminated mudrocks interbedded with
limestones that have quite different mechanical properties. These contrasting lithologies make it difficult to
estimate resultant completion geometries, SRV, and well-to- well interactions. Also, using costly production
logs, individual stage contributions are difficult to obtain in lower pressure reservoirs like the Wolfcamp.
However, these reservoir performance parameters are required to set benchmarks and continuously uplift
the EUR by taking advantage of insightful diagnostics.
Production logs, micro-seismic, chemical or radioactive tracers are all useful in understanding the
subsurface, but can be expensive and can pose operational challenges. Subsurface DNA sequencing is a
relatively low cost new data source that can be used to gain subsurface insights in complicated reservoirs.
DNA stratigraphy can help assess critical geometric parameters resulting from stimulation by employing
non-invasive sampling that enables lifetime well monitoring to track the flow of oil and provide engineers
the basis to optimize completions and development plans.
An 8 well "subsurface" lab was selected for the experiment. The project included one vertical pilot hole
with cuttings, and 8 horizontal wells landed in two Wolfcamp pay zones (one of the laterals was extended
from the same vertical pilot). Three horizontals had been on production for 11 months before the pilot well
2 SPE-184869-MS

and 6 additional laterals were drilled. The pilot well and its sidetracked lateral had cuttings extracted for
DNA sequencing. DNA signatures from the pilot well and lateral well were compiled to produce vertical
and lateral DNA stratigraphic profiles. The DNA stratigraphic profiles were then compared to DNA from
oil produced in the 7 offset laterals. DNA profiles were also compared to standard geologic parameters
using pilot well e-logs, particularly mechanical stratigraphy. Lateral wells were sampled at various times
after initial production to assess changes with time. Blind tests were designed to check the method as a
reasonable estimator for effective drainage height and communication.
DNA stratigraphy provides a more informed view of well spacing, completion design and well
performance to help increase efficiency and asset value.

Introduction
Although multistage horizontal fracturing is effective in improving production and therefore well
economics, the underlying engineering principles including spacing, orientation, propagation pattern,
fracture length, and conductivity, are not well understood. Numerical simulations carried out with different
production models have indicated that in very low permeability reservoirs, well production is greatly
influenced by the number and type of created fractures (Shelley et al., 2010). These simulations demonstrate
the importance of knowing the characteristics of the formed fractures. The dominant approach in acquiring
this knowledge has been the use of diagnostic tools; the most popular of which are tracers (proppant and
liquid chemicals), microseismic fracture mapping, and numerical simulations. These tools have either a
very shallow depth of investigation (i.e. proppant tracer), represent a gross behavior (i.e. chemical tracer)
or are far from the fracture source with considerable scatter (i.e. microseismic) (Suarez-Rivera et al., 2016).
Results of numerical simulations depend on input data and rarely offer the uniqueness that is required for
engineering decisions and computations. Thus, the approach adopted by some operators for production
optimization has been a brute force experimental method, systematically changing well and fracture spacing
and selecting the optimum plan based on production and economic returns (Bharali et al., 2014).
Experimentation with reduced well spacing has led to increasing reports of communication between
wellbores via hydraulic fractures. However, in most instances the communication has occurred as an
unintended consequence of fracturing, without preparation for collection of proper data to gain knowledge of
fracture properties. One of the most important questions in fracturing treatments is the fracture propagation
pattern. Most of the papers on this subject speculate a complex fracture growth pattern, where a fracture
propagates in multiple planes, sometimes spread over a large area in the reservoir. This speculation is based
on two main points: mapping of fractures with microseismic, and trying to explain the production volumes
based on assumed permeability data (King et al., 2008).
In the development of tight gas and shale, the key properties controlling reservoir productivity are
reservoir permeability, size, and conductivity of hydraulic fracture. It is also crucial to find the optimum
well spacing and lateral landing to maximize the SRV (Sahai et al., 2012). Microseismic measurements have
provided significant insight into hydraulic fracturing growth (Warpinski, 2009; King, 2010). Historically,
microseismic technology was developed to provide far field measurements of fracture height and length
that could be used to calibrate planar hydraulic fracture propagation models (Weijers et al, 2005; Neuhaus
and Miskimins, 2012; Fisher and Warpinski, 2012). However, microseismic images from the Barnett
shale exhibited significantly more complex patterns than typical in tight gas sands (Fisher et al., 2002),
indicating that hydraulic fracture propagation was more complex in nature than initially assumed (i.e.
network fractures). SRV calculations are based on the spatial distribution of events, proximity to neighboring
events, and event density (Daniels et al., 2007; Mayerhofer et al., 2010). In some cases, SRV can be
correlated to well performance (Fisher et al., 2004; Inamdar et al., 2010). SRV concepts, as they are applied
to RTA (Rate Transient Analysis), can also provide estimates of drainage volume and EUR (Kabir et al.,
2011). However, the relationship between SRV and hydraulic fracture geometry is not fully understood, as
SPE-184869-MS 3

microseismic measurements capture only a small portion of the overall deformation (Maxwell and Cipolla,
2011; Warpinski et al., 2012). Additionally, well performance is dictated by kh, PI, hydraulic fracture area
(i.e. total length) and the distribution of conductivity (Cipolla et al., 2008). While microseismic images can
provide a measurement of fracture height, length, and location, microseismic images cannot provide details
of hydraulic fracture structure, total fracture area, and location of proppant (Cipolla et al., 2012; Paryani et
al., 2016). This critical issue is often overlooked when interpreting microseismic images and the subsequent
application of microseismic data in production modeling workflows. These issues are further complicated
by the proliferation of horizontal wells with multi-stage completions.
An ideal tool would overcome the limitations of the mentioned diagnostics, accelerate the learnings
compared to the current trial and error methods, and increase the economical return of the asset. In this
paper we explain how subsurface DNA diagnostics could be of value due to its data density, temporality,
and non-interruptive nature of sample collection.

Economical Impact of Well Spacing Optimization

Well spacing is a key factor in maximizing the net present value (NPV) of a shale reservoir utilizing fractured
horizontal wells. The dilemma is that the wells should be spaced close enough together to maximize the total
stimulated area and drain the entire section in a timely manner, yet, far enough from each other to minimize
the chance of fracture hits by offset wells or overlapping the drainage area of a nearby well to avoid over-
capitalization (King, 2010; Lalehrokh and Bouma, 2014; Sahai et al., 2012; Paryani et al., 2016). With the
recent collapse in the price of crude oil, it has become essential to improve the net present value (NPV)
of unconventional reservoirs by intelligently down-spacing the horizontal wells with multistage fractured
wells. Unconventional reservoirs require optimal well density in addition to stimulation for economic
viability. Optimally designed multi-well facilities simplify well management and maintenance, prevent
overcapitalization by eliminating redundant equipment and increase the overall long-term economic outlook
of shale plays (Fisher and Warpinski, 2012; Khanal et al, 2015).
Bharali et al. 2014 investigated the effect of well spacing on Eagle Ford wells by incorporating geological
and petrophysical parameters into the Harmony model for productivity analysis. Their model took into
account royalty, ad-valorem tax, severance tax and a discount factor. The highest NPV was reached in a
five well model and 1,000 ft. well spacing. Sahai et al. 2012 shows that the NPV in Marcellus Shale and
Haynesville Shale starts falling for more than five wells per section after 10 years production. Their work
concludes that the recovery factor peaks at 66% and 60% with five wells per section in Marcellus Shale and
Haynesville Shale, respectively. In another work (Boulis et al. 2013), well spacing in five different locations
in Marcellus Shale, Woodford, Fayetteville and Haynesville Shale gas resources investigated to maximize
recovery and NPV within and across the shale plays.
To determine the potential economic value of optimized well spacing through the application of
Subsurface DNA Sequencing, a basic economic model was constructed. In this model the average operator
performance across the Permian Basin (Latimer Consulting) was used. By providing increased granularity
to vertical drainage heights and inter-well connectivity, an operator may be able to increase the density of
well placement across a section without compromising EUR/well production. The results are reported in
Fig. 1 show a potential increase in EUR/section of 3000 MBOE, corresponding to an 50% improvement.
4 SPE-184869-MS

Figure 1Economic Potential of Subsurface DNA Sequencing.

Assumes: 500 ft. of Total Pay, 300 ft. before and 150 ft. after for vertical spacing between wells, 6 wells
per section, 500 MBOE EUR/well. Data from Latimer consulting firm and not EP Energy.

DNA Diagnostics Workflow

The DNA sequences used in subsurface DNA Diagnostics are derived from microbial communities that
reside within hydrocarbon reservoirs. DNA of these microbes are sequenced economically through methods
only developed over the past few years (Hayden, 2014). The oil industry has studied microbiology in
reservoirs since 1926 (Bastin et al. 1926) in response to a variety of issues in conventional operations,
including microbially induced corrosion, well sourcing management, H2S diagnostics and tertiary recovery
techniques (e.g. microbially enhanced oil recovery) (Augustinovic et al 2012; Kotlar 2009; Jones et
al. 2008). More recent DNA studies demonstrated variability of microbes in conventional reservoirs
(Hayatdavoudi et al. 2013). More recently, the industry has studied the impact of microbiology in shale
basins to inform biocide selection (Wuchter et al. 2013).
From these studies, the industry has learned that microbes reside in the oil, water, and rock layers within
source rock. These microbes survive at the high temperatures and pressures common to these reservoir
systems (Daly et al.). Imaging studies demonstrate microbes can reside in the small pore spaces in the
tight rock formations (Buchwalter et al. 2015). These microbial communities survive on hydrocarbon
sources (and minerals) and vary by depth due to the microenvironments within a stratigraphic region.
Previously, most of the DNA from these systems was difficult to analyze at scale. But, using modern DNA
sequencing technology (Illumina Inc.), studies in the Permian Basin now demonstrate high- resolution
information with millions of DNA sequences identifying up to a hundred thousand unique features (Ursell et
al. 2016, Caporaso). Due to the high selectivity of microbes for subsurface conditions, such as temperature,
organic content, salinity, pressure, and pore size, the DNA from these samples serve as fingerprints for the
environment. With recent advancements in technology, DNA can thus be extracted directly from subsurface
samples and contribute an entirely novel data source in characterization of hydrocarbon reservoirs.

Field Overview
The study area was located in the southern Midland Basin area (Fig. 2). The Wolfcamp shale is lowermost
Permian in age or about 285 to 290 million years old, with some authors suggesting upper portions of
the Wolfcamp shale, as recognized in oil field terminology, is actually Leonardian in age (Hamlin and
Baumgardner, 2012). The Midland Basin was generally a starved basin in a high stand setting slowly
being filled by pelagic and hemipelagic sediments during organic shale deposition which was occasionally
punctuated by thin calcareous turbidites from the basin margins, with minor terrigenous clastic input
predominantly from the northern and eastern margins. In the study area the organic rich prospective
Wolfcamp is 950 to over 1,000 feet thick and that is divided into three main benches, the A, B and C benches.
SPE-184869-MS 5

Figure 2aStudy area for subsurface DNA diagnostics; located in the southern midland basin area

Figure 2bStudy area in the midland basin

These organic mudrocks have been estimated to contain resources second only to Saudi Arabia's Ghawar
field according to Pioneer CEO Scott Sheffield (Gruley and Carroll, 2016). The Wolfcamp organic section is
so thick and so expansive that development planning needs to be thought of in three dimensions: (a) extreme
vertical heterogeneity characterizes the section, with lithologies ranging between end members of high TOC
siliceous shale and limestone turbidites, (b) the heterogeneous vertical section then changes laterally gently
on a township-by-township basis in the central portions of the basin, with more abrupt stratigraphic change
occurring near the basin margins, and (c) the thick section requires development at multiple levels which is
6 SPE-184869-MS

further complicated by stratigraphic changes, particularly in the mechanical character of the section across
the area.
The detailed study area consisted of one pilot well and 8 laterals, 6 southbound and 2 northbound (Fig. 3).
Well to well spacing was varied slightly and landing zones were staggered vertically. The pilot well had a
full log suite for unconventional petrophysical analysis, 1,125 feet of continuous core was acquired through
the entire Wolfcamp prospective section and the section had full mud logging with drill cuttings captured on
30-50 feet intervals specifically for DNA analysis. Additionally, the pilot hole was subsequently sidetracked
and drill cuttings were acquired in that lateral for DNA analysis.

Figure 3Study area consisted of one pilot well and 8 laterals, 6 southbound
and 2 northbound. Background shows the Young's Modulus earth model.

Subsurface DNA Diagnostics Methodology

DNA extracted from well cuttings from distinct rock layers provides high-resolution fingerprints that define
a "DNA stratigraphy" for organic intervals like the Wolfcamp. These organic shales can have gross pay
thicknesses of over 1000 feet in the southern Midland Basin. The formation is composed of highly laminated
alternating layers of organic mudrocks with thin dense limestones. In order to build effective reservoir
models, calculate reserves and optimize well spacing as part of a three dimensional development plan
for Wolfcamp reservoirs, geologists and engineers need to have the best understanding of the geometry
resulting from completions that ultimately comprise a well's SRV and control well-to-well communication.
Establishing an optimized development plan early in the project is very important for its economic viability
and capital requirements in particular, especially with a large acreage position and the huge resource
thicknesses found in the Wolfcamp.
Subsurface DNA diagnostics were tested in a series of "proof of concept" applications to determine if
DNA signatures from both produced oil and drill cuttings could be compared in various configurations to
provide estimations for effective drainage height, well-to-well communication, and determine stage- by-
stage contribution similar to production logs.
SPE-184869-MS 7

Effective Drainage Height Application

Wolfcamp sediments are thinly laminated organic mudstones and limestones, with bedding ranging in
thickness from less than a centimeter to more than 1 meter for a few of the larger limestones in the study
area. The organic mudstones are often stacked sequences of thin beds that are occasionally punctuated by
limestone turbidites and storm deposits. Limestone and organic rich shale form the end member rock types
and possess much different mechanical properties. With highly variable stacking geometries, often with
very distinct bed contacts, the numerous contrasting mechanical layers requires greater energy input during
stimulation to extend vertical fracture propagation. The effect of alternating limestone/shale sequences on
fracture height growth might best be thought of as acting similar to a bullet proof vest with many layers of
Kevlar able to stop a high energy bullet.
Development planning is further complicated by gentle large scale lateral facies changes within the
Wolfcamp. The broad facies changes and the mineralogy variations that accompany them can have
significant effects on the mechanical properties and stacking geometries of the overall section from area
to area. As such, hydraulic fracture heights within the same stratigraphic landing zone will vary across the
area. Moreover, horizontal wells tend to meander across a number of layers during drilling of the lateral,
despite the best geo-steering efforts. Due to the strong contrast in mechanical properties between mudrock
and limestone layers, some stages will not react to stimulation in the same way. Finding a method to assess
fracture height growth that is cost effective would be very valuable to understanding the reservoir and
engineering optimized solutions. Subsurface DNA analysis was selected as the method of choice and several
blind tests were performed to evaluate the accuracy. One of the main advantages of the DNA method is
that it estimates effective drainage height throughout well's production lifetime as opposed to initial frac
height at fracturing stage.

Well-to-Well Communication Application

Existing wells occasionally experience pressure spikes and positive or negative interference from offset
completion operations. These frac hits are likely facilitated by the pervasive existing natural fracture
system in the Wolfcamp. Typical small bed bounded Wolfcamp fractures likely coalesce into larger fracture
systems that allow completion fluids to more easily reach and pressure up a nearby well. Sometimes the
geometry of the well-to-well connection appeared complicated and difficult to understand at first glance.
In what amounted to an unplanned blind test, valuable information was derived from produced oil DNA
analysis regarding complicated well-to-well communication between an existing producer and one or more
of three new wells under simultaneous stimulation operations.

Stage-by-Stage Production Profiling Application

Production logs are helpful in a number of geological and engineering studies including assessment of
landing zone quality, stimulation methods, and completion effectiveness. Production logs are costly to obtain
and provide operational difficulties in lower pressured portions of Wolfcamp reservoirs. Another proof of
concept experiment was devised, where DNA from drill cuttings at 50 ft intervals, obtained along a lateral
was compared with DNA from the well's produced oil to attempt to determine production contribution by
stage, similar to a production log.

Results and Discussion

Vertical Drainage Height Case Study
Effective vertical drainage height resulting from stimulation efforts of horizontal wells has been a difficult
measure to attain, but is very important for accurate estimation of reserves and in designing proper well-to-
well spacing patterns. Wolfcamp development planning requires horizontal well spacing geometries to be
well understood in both horizontal and vertical dimensions in this multi-level stacked reservoir.
8 SPE-184869-MS

Subsurface DNA diagnostics was proposed as a cost effective method to determine effective fracture
height growth. A proof of concept application comparing a vertical DNA profile to the DNA from offset
produced oil was designed. A consistent match between the produced oil in the vertical pilot section would
identify the effective fracture height capable of flowing oil to a lateral wellbore.
DNA was analyzed from drill cuttings taken every 30 feet across the entire Wolfcamp prospective organic
section in a vertical pilot well to form a reference section for DNA stratigraphy. Procedures were developed
to reduce or eliminate contamination in the cuttings samples from various sources on location including
drilling mud and rig personnel. Methods also had to be developed to collect oil samples from offset lateral
wells to reduce contamination and obtain the most pristine samples for the lab.
Oil was sampled from eight offset wells and subjected to DNA analysis. Three of the sampled wells had
been on production for at least 11 months and 5 wells were sampled shortly after first oil on flow back.
The DNA service company was provided a calibration well for their tool where they were told that the well
had landed somewhere in the Wolfcamp A. Results of the diagnostics are shown for the calibration well in
Fig. 4. The bars on the DNA analysis represent the relative contribution of DNA features from each drill
cutting to the oil. Larger bars indicate that a given drill cutting is likely contributing more DNA features to
the oil, connecting which profiled depths the oil is being produced from. As demonstrated, four depths at
the bottom of the Wolfcamp A were characterized as providing above the mean DNA feature contributions
to the oil, aligning with the operator's landing zone information. With this agreement in mind, the DNA
service company discounted the larger single depth at the bottom of the Wolfcamp B as an outlier.

Figure 4Well #2 Produced Oil DNA compared with Vertical Pilot Well

Using the lessons from the calibration well, the DNA service company's method successfully blindly
estimated the landing zone in another well as shown in Fig. 5. Again, the service provider looked for a
continuous set of drill cuttings that were providing above the mean level of contribution across all Wolfcamp
depths, which were found in the Wolfcamp B. They also discounted the single larger depth towards the
bottom of Wolfcamp C as being an outlier because that depth was not corroborated as being a likely drainage
due to the lack of nearby contributing depths. In this case, it was noticed that the contribution from the bottom
of the lateral was very limited and this raised a flag to look closer in other data sources for explanation.
Upon further investigation a very thin local frac barrier layer was discovered below the lateral justifying
SPE-184869-MS 9

the DNA data observation of limited production contribution from the bottom of the lateral. Also, the upper
limit appeared to be contained by dense limestones. The collective insights provided by subsurface DNA
diagnostics for vertical drainage height estimation, enabled the operator to optimize well spacing on future
wells, likely with substantial economic impact to the field asset value.

Figure 5Well #3 Produced Oil DNA compared with Vertical Pilot Well

Frac Hit Case Study

In another case study, a blind test was performed to identify the well responsible for the observed frac hit in
a monitored well. The location of all neighboring wells with frac operations with respect to the monitored
well are shown in Fig. 6.

Figure 6Location of all neighboring wells with frac operation with respect
to the monitored well #2. Background shows the Gamma Ray earth model.

During the simultaneous frac operation of neighboring wells (well #4, well #5, and well #6) a pressure
response was observed in the monitored well (well #2), however, the operator could not determine what
10 SPE-184869-MS

well was the source of the pressure increase (Fig. 7). Subsequently another pressure response was observed
while simultaneous fracturing of wells #5 and #6. Again, the operator had no way to determine which of
the two wells was communicating with the monitored well (Fig. 8).

Figure 7Well #2 Experienced Continued Hits from Simultaneous Fracturing

Operation in Wells 5 and 6. Background shows the Young's Modulus earth model

Figure 8Well #2 Experienced Continued Hits from Simultaneous Fracturing

Operation in Wells 5 and 6. Background shows the Young's Modulus earth model.

Fig. 9 shows the recorded pressure spikes. Given the proximity, the operator suspected well 6 to be the
cause for the frac hit. However, this information was kept from the service company and oil samples from
the monitored well and all neighboring wells were sent for DNA analysis.
SPE-184869-MS 11

Figure 9The monitored well #2 was kept shut in during frac operation of neighboring wells. A pressure
spike was determined as frac hit during the simultaneous frac operation of wells #4, #5, and #6.

The service company had previously collected samples from the monitored well. All new samples were
sequenced and the DNA signature of the monitored well before and after fracing the neighboring wells were
compared for clues. The results from DNA analysis showed a significant increase in percentage contribution
of DNA signature from well#6 in the monitored well after the frac operation (Fig. 10). This observation
was confirmed to be correct by the operator, eliminating well 5 as the possible suspect due to zipper frac.

Figure 10Analysis of percentage contribution of DNA signature correctly identified well #6 as the culprit of frac hit.
12 SPE-184869-MS

The insights from subsurface DNA sequencing are being used by the operator to decide on the lateral
spacing of wells to avoid frac hit and monitor the connectivity of well throughout time.

Production Profiling Case Study

In another case study the production contribution was evaluated across a 48 stage lateral. Cutting samples
were collected every 50 ft across the lateral to develop the DNA signature baseline. Collected oil samples
from days 1, 2, and 4 were compared to the baseline to allocate production to each stage The results show
a repeated distribution of producing stages (Fig. 11). Samples were collected for the next 3 months on a
biweekly schedule, however after day 4 a jet pump was installed affecting the production profile. In the
future the operator plans to run a PLT (Production Logging Test) to validate the results observed by the
DNA method.

Figure 11Results from DNA analysis of oil samples from days 1, 2, and 4 provide consistent insights
for distribution of producing stages. In the production profile graph, x-axis shows the frac stages
across the lateral and the y-axis shows the relative contribution of produced oil from each stage.

A reliable estimation of production profile across time will have a significant impact on frac stage design
and lateral landing of the next wells in the same horizon. It will also help the operator make an informed
decision for refracturing.

Future Work
Based on the results thus far, a future program is contemplated using a vertical pilot well as a DNA type
section that will be closely offset by three laterals in three different landing zones. Produced oil from the
three laterals produced oil will be compared to the DNA stratigraphy of the pilot well to determine effective
drainage height. The drainage height estimated by the DNA analysis will be compared to height estimates
from pre and post-stimulation dipole sonic logs. With continued optimization, it will be possible to look at
drainage height with time and assess SRV reduction during production life. We believe that drainage height
will be reduced with time as pinch points in the reservoir close during production decline, but have thus far
been unable to document how much SRV decrease might be occurring.
Another avenue for further investigation would be to compare the production profile estimated by the
DNA method to the production log. Production log acquisition in lower pressure Wolfcamp reservoirs is
problematic since the wells generally go directly from a post stimulation super charged situation directly to
artificial lift without a meaningful period of natural flow. A solution would be to attempt the comparison
in higher pressure areas of the Wolfcamp, or possibly the Eagle Ford, where a prolonged period of natural
flow exists.
SPE-184869-MS 13

Conclusions
The results from several tests proved the potential for the Subsurface DNA Diagnostic applications in the
Permian Basin. In particular, the following conclusions were made:
DNA Diagnostics is able to estimate vertical drainage height and landing zones from multiple laterals
wells.
This results of this estimate is strengthened by the fact that the knowledge of the landing zone
was kept blind prior to DNA analysis.
This analysis elucidated a thin fracture barrier at the base of the lateral that was not recognized
during the initial geological assessment.
DNA Diagnostics are able to monitor well-to-well communication over time.
This result was confirmed through the accurate identification of the well responsible for a frac
hit. This analysis was also performed blinded.
Subsurface DNA diagnostics could be used in a proactive manner to optimize well spacing
Aerially, well-to-well connectivity analysis can be monitored over time to understand the nature
of fracture interference over the life of the well
Vertically, elucidating effective vertical drainage heights can inform appropriate well spacing
strategies in stacked lateral plays
DNA Diagnostics have the potential to increase the EUR of our wells and NPV/section by several
millions through optimized well spacing and production monitoring.

Acknowledgement
The authors thank EP Energy for permission to publish the findings. The authors thank EP Energy for
permission to publish the findings. John Ely and Dr. Paul Henshaw contributed in the development of this
technology.

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