HiWAY: The Quest For Infinite Conductivity

Innovation for a step-change in Hydraulic Fracturing

Presentation prepared for

Jornada De Maxi-Fracturas

May 2012
HiWAY: A Paradigm Shift in Hydraulic Fracturing
1947 First hydraulic fracturing job
1950 1950 Fracturing using gelled oil

1960
1960 Water-based, non crosslinked fluids

1968 Borate crosslinked fluids

1970
1973 Crosslinked derivatized guars (HPG, CMHPG, etc)
1977 High-strength ceramic proppants
1980 1980 Foamed fracturing

1988 Encapsulated breakers

1990 1990 Fiber based flowback control
1994 Low polymer loadings
1997 Viscoelastic surfactants (VES)
2000
2001 Micro-seismic used to monitor frac jobs
2003 Horizontal well, multistage fractures
2005 Fiber based proppant transport
2010 2010 HiWAY* Flow-Channel Fracturing
2011 Complex fracture modeling
The Four Components That Deliver HiWAY Reliability

Delivering Ensuring
Channel Structure Structure Stability

Completion Engineering
Technique Design

1 ft
HiWAY is Applicable in a Broad Range of Reservoirs

 Oil, condensate-rich and gas wells

 Competent rock –
Sandstone/carbonate/shale (E/σMIN > 275)

 Requires the use of viscous fluids

 Cased hole, open hole, vertical and

horizontal wells

 BHST < 345 oF (< 174+ oC)

 Reliable Design and Execution
 Engineered candidate
selection
 Design via FracCADE*
HiWAY module
 Thorough peer reviews and
design certification
 Optimized process control
using SLB standard
fracturing equipment

7
 Reliable Design and Execution
 Engineered candidate
selection
 Design via FracCADE*
HiWAY module
 Thorough peer reviews and
design certification
 Optimized process control
using SLB standard
fracturing equipment

8
 Reliable Design and Execution
 Engineered candidate
selection
 Design via FracCADE*
HiWAY module
 Thorough peer reviews and
design certification
 Optimized process control
using SLB standard
fracturing equipment

9
Reservoir-Focused HiWAY Design Workflow

Build Design perforation Evaluate channel

Geomechanical and strategy and profile and fracture
Reservoir Models pumping schedule conductivity
for optimum channel
distribution
HiWAY Execution – From Concept To Reality
Schematic pump schedule
Conventional
HiWAY
Sand Concentration

Pad

Time
Clean Fluid (clean) pulse
Proppant (dirty) pulse
Cycle Tail-in stage
HiWAY Execution – From Concept To Reality
Actual pump schedule in typical HiWAY job

5 600
Sand Concentration, kg added/m3

480
Sand Concentration, PPA

3 360

2 240

1 120

0 0
11:39:43 11:46:23 11:53:03 11:59:43
HiWAY: Extensive Worldwide Experience
>5000 jobs, >99.95% jobs with proppant placed without screen-outs

HiWAY activity
New fields under discussion
2010-2012 HiWAY Activity

1800 6000
1600
5000
1400
1200 4000
Stages per Quarter

Cumulative stages
1000
3000
800
600 2000
400
1000
200
0 0
Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12
 2010 – 2012 HiWAY Activity – Treatment (Stage) Count
Reservoir Lithology Reservoir Fluid
Sandstone 229
Shale Condensate + Oil
583
Lance/Pinedale (USA) Barnett (USA) Gas
Wamsutter (USA) Haynesville (USA)
Granite wash (USA) 1606 Utica (USA)
Yegua (Burgos basin, Mexico) Marcellus (USA)
Eocene (Chicontepec, Mexico) Bossier (USA)
Sierras Blancas (Argentina) Avalon (USA) 1397
Dry Gas
AS & BS – (Russia)
Abrar, West Qarum (Egypt)
Gazhal (Saudi Arabia) 3482
Others
Carbonate
3627 Eagle Ford (USA)
Bakken (USA)
Clear Fork (USA)

Well Orientation Completion type

Vertical 392
Open hole
1203

4259
5070
Horizontal
Cased hole
Case Study: Encana, Rocky Mountains
HiWAY Delivers 24% More Production from Tight Gas Formation

Challenge
 Improve production in multi-stage wells
Solution
 Improve fracture conductivity with HiWAY flow-
channe fracturing technique (13-well campaign)
Formation type Sandstone/shale
Results TVD 3400 – 4100 m 11,000 – 13,500 ft

 24% increase in gas production Permeability

Porosity
0.5 to 10 µD
6% to 9%
 17% increase in expected recovery after 2 Young’s modulus 24x - 41x103 MPa 3.5 - 6 million psi
years BHP 28 – 69 Mpa 4,000 – 10,000 psi

 Reduction in screen-out rate from 5% to 0% BHST 79 - 118 ºC 175 – 245 ºF

 +700 fracturing treatments performed to date Proppant/stage (Klbm) Fluid/stage (Kgal)

with significant footprint reduction HiWAY Conventional ∆ HiWAY Conventional ∆

162 297 -45% 94 104 -10%

SPE Paper 140549

Case Study: BHP-Petrohawk, Eagle Ford Shale
HiWAY Increases Production from Horizontal Well by 37%

Challenge
Formation type Carbonate/shale
 Improve production in multi-stage horizontal TVD 3300 – 3500 m 10,900 – 11,500 ft
wells Permeability 200 to 600 nD

Solution Porosity 6% to 8%
Young’s modulus 17x - 34x103 MPa 2.5 - 5 million psi
 Improve fracture conductivity with HiWAY
BHP 55 – 69 Mpa 8,000 – 10,000 psi
flow-channel fracturing technique (2 HiWAY
BHST 121 - 168 ºC 250 – 335 ºF
vs. 8 conventional wells)
1.6 120,000
Results Gas Area Oil Area

Cumulative Gas Production (Bcf)

1.4

Cumulative Oil Production (bbl)

100,000
1.2
 Heim #2H: +4 MMcfd (37%) increase in 1.0
80,000

0.8
initial gas production rate (gas window)
60,000
0.6
40,000
0.4
 Dilworth #1H: +200 BOPD (32%) increase 0.2 HiWAY
Conventional (best offset)
20,000 HiWAY
Conventional (best offset)

in initial oil production rate (oil window) 0

0 30 60 90 120 150 180
0
0 30 60 90 120 150 180
Time, days Time, days
 2000+ stages, 100+ wells pumped to date Proppant/stage (Klbm) Fluid/stage (Kgal)
with significant footprint reduction HiWAY Conventional ∆ HiWAY Conventional ∆

SPE Paper 145403 203 340 -40% 207 273 -24%

Eagle Ford Completion History

 2008 – 2009, Slickwater treatments

 2009 – 2010, Frac cost elevated rapidly
 2010 (July), Hybrid treatments
 2010 and 2011, Channel fracturing treatments
 Past Direction:
 Lower rate, Lower pressure, Higher Viscosity
 Smaller stage lengths
 Sand (4 to 5 PPA) (85% -20/40 & 15% 40/70)
 Reduce acid and supply water footprint
 Future Direction:
 Increase viscosity
 Increase contact area while minimizing cost
 Lower rate, lower treating pressure
 Reduce supply water footprint
Hawkville Field - Eagle Ford Shale Formation
• Eagle Ford Characteristics
• 100 – 300 ft gross thickness
• High calcite (60 - 70%)
Texas,
• Low quartz (< 20%) United States
• Closure stress: 9,500 - 11,000 psi
• Young’s modulus: 2.7 - 4.3 Mpsi
• BHST: 275 - 335 degF

• Upper Eagle Ford

• 1 – 2.5% TOC, 4 - 7% porosity Gulf of
Mexico
Mexico
• 150 - 300 nD permeability

• Lower Eagle Ford

• 3 – 6.5% TOC, 6 - 12% porosity
• 350 – 700 nD permeability
Hawkville Well Completions
• Well Type: Horizontal, cased hole (5½” and 4 ½” OD)
• Depth (TVD): 10,000 - 12,000 ft
• Depth (MD): 15,000 - 20,000 ft
• Horizontal Section: 4,000 - 7,000 ft
• Staging: Plug & Perf, 12 - 22 stages
• Perforation Strategy:
• SPF: 4 - 6; Phasing: 60º
• Cluster length: 1 - 2 ft
• Clusters per stage: 4 - 8
• Cluster spacing: 30 - 100 ft
Channel Fracturing (Hybrid) Treatment Plot
Distribution of Wells in the Hawkville Field

McMullen County
LaSalle County

HiWAY Channel Fracturing

Conventional – Hybrid
Conventional - Slickwater
 Hawkville Field Production Data
1.6
2
Offset C HiWAY
1.4
5
XL (Hybrid)

P50 Cumulative production (Bcfe)

10 1.2
Cumulative Probability

Offset B Heim 2H
Slickwater
20
30 1
Offset A Dilwortth1H
40
50 0.8
60 Offset D
Fracturing Range Average
technique (Bcfe) (Bcfe)
70 0.6
Channel
80 fracturing 0.43 – 1.10 0.66
(12 wells)
0.4
90
Hybrid
0.36 – 0.65 0.50
95 (8 wells)
0.2
Slickwater
98 (30 wells)
0.11 – 0.68 0.39

0
0.1 0.5 1.0 2.0 90 days 250 days
90-day cumulative production (Bcfe)

Basic completion data

KPIs - 90 days KPIs - 250 days
(Average per well)
Average Average
Production Production Production Production Production Production
Lateral Frac fluid Proppant cum. cum.
Fracturing technique / 1000 ft / Mbbl / Mlbm / 1000 ft / Mbbl / Mlbm
length (ft) (Mbbl) (Mlbm) production production
Lateral Frac Fluid proppant Lateral Frac Fluid proppant
(MMcfe) (MMcfe)

HiWAY (12 wells) 5755 87 3668 659 115 7.6 0.18 1,341 233 15.4 0.37

Hybrid (8 wells) 5382 99 5470 497 92 5.0 0.09 979 182 9.9 0.18

23 Slickwater (30 wells) 4403 176 3890 392 89 2.2 0.10 717 163 4.1 0.18
Productivity Normalization via Reservoir Simulations
Normalized
Completion & Stimulation 3D Formation Calibrated
production at
Parameters* Simulator Model
equivalent BHP
400

350 341

180-day normalized cumulative gas

300

production (MMscf/1000 ft)

250 225
XF
H
200 175
160
150
2X F 100
2L N + L C
50
LN LC LN
0
Heim 2H Offset A Offset B Offset C
(Channel Fracturing)

*Fan, L., Thompson, J., Robinson, J.R., 2010 Understanding Gas Production Mechanism and Effectiveness of Well Stimulation in the Haynesville
Shale Through Reservoir Simulation. Paper SPE 136696 presented at the Canadian Society for Unconventional Gas, Calgary 19 – 21 October
 Dry Gas Area 180-day Cumulative Gas Production
1,600,000
Heim 2H (Channel fracturing)
1,400,000 Offset A

Heim 2H Offset A
Offset B
1,200,000 Offset C

Cumulative production (Mscf)

1,000,000

Offset B 800,000

600,000

Offset C 400,000
6.6 mi
200,000

0
0 30 60 90 120 150 180
Time, days

180-day Wellhead Flowing Pressure and Choke Size

7,000 26
24
6,000 22
20
Wellhead flowing pressure (psi)

5,000
18
16
4,000
Choke size

14
3,000
12
10
2,000 8
Heim 2H (Channel fracturing)
6 Offset A
Heim 2H (Channel fracturing)
1,000 Offset A 4 Offset B
Offset B 2 Offset C
Offset C
0 0
0 30 60 90 120 150 180 0 30 60 90 120 150 180
Time, days
Time, days
Dry Gas Area
History Matches Heim 2H Water

Gas

BHP
Dry Gas Area
180-day Normalized Gas Production at Equivalent BHP

400

350 341
180-day normalized cumulative gas

300
∆ = 51%
production (MMscf/1000 ft)

250 225
200 175
160
150

100

50

0
Heim 2H Offset A Offset B Offset C
(Channel Fracturing)
 Condensate-Rich Area 180-day Cumulative Oil Production
120,000
Dilworth 1H (Channel fracturing)

Offset D
100,000

Dilworth 1H

Cumulative oil production (BBL)

80,000

60,000

40,000
Offset D
20,000

4.4 mi
0
0 30 60 90 120 150 180
Time, days

180-day Wellhead Flowing Pressure and Choke Size

6,000 24
Dilworth 1H (Channel fracturing) Dilworth 1H (Channel fracturing)
22
5,000
Offset D
20 Offset D
18
Wellhead flowing pressure (psi)

4,000 16
Choke size

14
3,000 12
10
2,000 8
6
1,000 4
2
0
0
0 20 40 60 80 100 120 140 160 180 0 30 60 90 120 150 180
Time, days
Time, days
Condensate-Rich Area
180-day Normalized Condensate Production at Equivalent BHP

30
27.1

25
180-day normalized cumulative oil

∆ = 46%
production (Mbbl/1000 ft)

20
17.6

15

10

0
Dilworth 1H Offset D
(Channel Fracturing)
 Effective Stimulated Index Comparison

Dry Gas Area Condensate-Rich Area

120.00 3.00 50.00 4.00
Prop Fluid ESI
Proppant Fluid ESI 45.00 3.60

Fluid and Proppant Volume per Cluster (mgals, mlbs)

Fluid and Proppant Volume per Cluster (mgals,mlbs)

100.00 2.50

Effective Stimulation Index per Cluster (ft^3.mD)

Effective Stimulation Index per Cluster (ft^3.mD)

40.00 3.20

35.00 2.80
80.00 2.00
30.00 2.40

60.00 1.50 25.00 2.00

20.00 1.60
40.00 1.00
15.00 1.20

10.00 0.80
20.00 0.50
5.00 0.40

0.00 0.00 0.00 0.00

Offset A Offset B Channel Frac Offset A Channel Frac

ESI = ESV x Enhanced Permeability

ESV = 2 x PEA half-length x PEA width x thickness
SPE Paper 149390
What Is The End Result?
Better production:
 90-day non-normalized cumulative production increased by:
 32% (channel fracturing vs. hybrid)
 68% (channel fracturing vs. slickwater).
 180-day normalized cumulative production:
 > 51% in dry gas area;
 > 46% in condensate-rich area.

Gains in efficiency:
 Reduction in proppant and fluid volumes, allowing reductions in pumping time.
 Over 2300 treatments (140 wells) pumped to date. Zero screenouts.
• Channel fracturing improved well performance in the Hawkville field beyond
conventional means.
• Additional completions continue to show channel fracturing treatments outperform
slickwater and hybrid in the Hawkville Field.
Public Client Endorsements for HiWAY

• BHP -Petrohawk USA - Eagle Ford shale

• Chesapeake USA - Barnett shale
• Petrohunt USA - Bakken shale
• Encana USA - Jonah field
• YPF, S.A. Argentina
• TNK-BP Russia
• Rosneft Russia
• PEMEX Mexico
• ENI Algeria
• SOG Egypt
HiWAY-Related Publications
Client-Endorsed SPE Activity

 SPE 135034 (with YPF, S.A.) – A New Approach to Generating Fracture Conductivity (ATCE’10. Florence, Italy)
 SPE 140549 (with Encana Oil and Gas USA) - Channel Fracturing - A Paradigm Shift in Tight Gas Stimulation
(HFTC’11, The Woodlands, USA)
 SPE 145403 (with PetroHawk) - Channel Fracturing in Horizontal Wellbores: the New Edge of Stimulation
Techniques in the Eagle Ford Formation (ATCE’11. Denver, USA. Oct. 2011)
 SPE 147587 (with Encana Oil and Gas USA) - Raising the bar in completion practices in Jonah Field: Channel
fracturing increases gas production and improves operational efficiency (SPE UGC. Calgary, Canada. November
2011)
 SPE 149390 (with Petrohawk) - Completion Evaluation of the Eagle Ford Formation with Heterogeneous Proppant
Placement (SPE UGC. Calgary, Canada. November 2011)
 SPE 152112 (with PEMEX) - Field Development Study: Channel fracturing increases gas production and improves
polymer recovery in Burgos Basin, Mexico North (HFTC’12. The Woodlands, February 2012)
 SPE ATW Presentation (with Rosneft)- Channel Fracturing: Experience and Applicability in Russia (Sep’10.
Nizhnevartovsk, Russia)

Industry Articles
 Journal of Petroleum Technology www.slb.com/hiway
 Hart's E&P Magazine
 Petroleum (Spanish)
 New Technology (Canada)
 Several others
2012: Integration of HiWAY modeling with
Mangrove

Structure
Lithology
HiWAY StimMAP
DFN
Stress legend
High Selectively placed perforation clusters
Staging &
Perforating
Rock quality
Low

Stress Rock quality legend

Geomechanical
Model
Microseismic
Mapping
Reservoir
Simulation
Complex Hydraulic
Fracture Models
with HiWAY
Automated
Gridding
HiWAY Channel Fracturing: More value, Less Resources
• Fastest-growing new technology in the history of
Schlumberger
• > 5000 stages pumped (10 countries, 5 Areas)
• Significant impact on production
– Typically > 20% increase
• Smaller footprint: Reductions in
– water and proppant consumption per job of 25%
and 42%, respectively;
– > 6 million barrels of water and 340,000 tons of
proppant saved so far;
– > 33,000 proppant and water hauling road
journeys;
– > 4 million pounds CO2 emissions
• Unprecedented proppant placement rate:
– 99.96% placement success;
– > 200 screen-outs prevented
HiWAY: The Quest For Infinite Conductivity
Innovation for a step-change in Hydraulic Fracturing

Thank you for your attention