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Introduction to Coal Bed Methane

Presenter: Ashish Gupta / Himanshu Sharma

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Outline
Coal/CBM Overview Globally
CBM Basics
Geology
Reservoir characterization
GIIP
CBM Development
Screening CBM Blocks
Production
Drilling and Completions
Non-Technical challenges in CBM development
Typical CBM development Cycle

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Global Coal Distribution … Where are the Opportunities?

Coal bed methane is a Natural gas.

Contain 95-98% CH4 with minor SO2, N2,


CO2 as impurities

Recovery varies from 20% to 85%

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Formation of Coal: Modern environments for peat accumulation
Low lying areas like alluvial floodplains, deltas and coastlines can accommodate peats
A Peat Land is an ecosystem where the water table is near or slightly above the mineral soil and
the associated vegetation produces organic matter at a rate faster than the degradation
processes can decompose it

Peat mires adjacent to the Copper River Delta Alaska


http://www.wadih-ghsoubi.com/Nature/1/

Coal is an organic deposit mainly composed


of transformed higher landplant material

coal composition is highly heterogeneous 4
1.0
CBM BASICS

Geology
Reservoir Characterisation
GIIP

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Reservoir Depths: Conventional Vs Unconventional

CBM depositions are generally economical at shallow depths

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CBM Vs. Conventional Oil & Gas

Fluid Production Rates - Conventional Gas Production Fluid Production Rates - CBM Production

Dewatering Stable Declining


Stage Production Production

Gas Production Rates


Gas Production

Water Production
Methane Production Rates
VOLUME
VOLUM E

Water Production Rates Gas Production Water Production Rates

Water Production

TIME TIME

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Coal Seam Identification- Petrophysical Logs

Log response of Coal

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Gas Content in Coal
GC increases
with Depth
Mannville Depth vs Vro

1.8
RO_R
R2 = 0.7935
Expon. (RO_R)
1.6

1.4

1.2

1
V r o (% )

0.8

0.6

0.4

0.2

0
0 500 1000 1500 2000 2500 3000 3500 4000
Depth (m)

Gas adsorbed in the coal is proportional to Vitrinite content in the coal

Vitrinite is an organic components of coal (maceral).


VRo- Vitrinite reflectance is a key method for identifying thermal maturity and adsorbed gas content.
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Gas Storage in Coal – Langmuir Sorption Isotherm

Isotherm describes the volume of gas that can be stored in the coal
as a function of pressure,
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Coal Porosity- Dual Porosity Systems

Dual porosity systems consist of two porous media regions – primary


(matrix) and secondary (cleat/fracture) porosity
Most of the gas is contained within primary porosity (matrix), which has
low permeability
Gas flow to wells only occurs through the secondary porosity (fracture)

Primary Porosity

Porous Structures in coal

µm

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Natural Fractures in Coal - Cleats
First reference from 1834. Termed “cleat”, from the wedges that were used to
break the coal from the seam during mining
Occur at right angles (generally) to the bedding
•Primary direction (face cleat)
•Secondary direction (butt cleat)
Origin linked to coalification process
•Dehydration
•Devolatilization
•Confined, stressed system
Primary Darcy flow path
• More open cleat = higher permeability
• More cleats per inch = higher permeability

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Permeability in Coal

Isotropy Face Cleat Anisotropy

Butt Cleat 13
Coal Permeability Vs. Depth
North Shilou Permeability

Surat Permeability
Surat - Juandah Permeability vs Depth
10000
Arrow only
1000 Pangea

100

Permeability, mD
10

0.1

0.01

0.001
0 500 1000 1500 2000 2500 3000 3500 4000

Depth, ft

• Large Scatter
• Permeability decreases with depth
• Huge variability hence Uncertainty
• No definite trend, subject to interpretation
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Data Source- GRI


Transport Mechanism in CBM
Matrix Porosity Induced
Desorption from
Natural Fracture Fracture Coal Microspore
Mesoporosity
Porosity
Microporosity

Diffusion through
Wellbore
Coal Matrix

Desorption
Diffusion Darcy Flow Darcy Flow
nm nm cm m
through Cleats

Meso Cleats + Micro-pore Large Cleats (Macro cleats)

Meso Micro Micro-pore


cleats cleats coal particle
Provides the conduit to mass flow
Gas storage dominated by adsorption

Mass transfer dominated by diffusion Mass transfer dominated by Darcy flow

Relatively impermeable, saturated with gas and water


CBM operations preceded by dewatering 15
Parametric Sensitivity – Relative impact on EUR

CBM Sensitivity TORNADO


Reduction in EUR (BCF) Increment in EUR (BCF)
Permeability is the key
Farcture_Permeabilty
Gas Content
Fracture_Porosity Pareto Chart
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Seam_Thickness
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40 95% of the total absolute change in EUR is due to only 5
VL

% of Total Main effects


parametrs: K_Frac, GC, Th, VL, Por_Frac
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PL 30
25
Rel_Permeabilty 20
15
Matrix_Porosity 10
5
Diffusion_Time
0

Rock_Compressibilty
Frac_Spacing
Matrix_Perm

-0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8


Incremet/Reduction in EUR w.r.t Base Case EUR

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Variability in Production
G a s P r o d u c tio n C u r v e
V e r tic a l 4 F r a c W e lls

1000
10% of the wells produces 90% of the D R -2 8
D R -2 9

800
total production!! D R -3 1
D R -3 2
Gas Rates(MSCF/D)

D R -3 3
D R -3 5
Gas Rate, Mscf/d

D R -3 6
600 D R -2 5
N P -0 5
M G -0 4
M R -2 9
400 M R -3 0
M R -3 1
M R -3 1
M R -3 2
200 M R -3 3
T y p e C u rve - 4 F ra c

0
0 .0 0 2 .0 0 4 .0 0 6 .0 0 8 .0 0 1 0.00 1 2 .0 0 1 4 .0 0
Y rs

W a te r P r o d u c tio n C u r v e
V e r tic a l 4 F r a c w e lls
2 00

1 80
D R -2 8
D R -2 9
Rates(bbls/d)

1 60
D R -3 1
D R -3 2
1 40
D R -3 3
D R -3 5
Mscf/d

1 20 D R -3 6
D R -2 5
Gas Rate,

1 00 N P -0 5
Water

• Large variability in Production


M G -0 4
80 M G -0 7
M R -2 9

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• Log normal distribution in production from wells M R -3 0
M R -3 1
M R -3 2
40
M R -3 3
T y p e C u rv e
20

0
0 .0 0 2 .0 0 4 .0 0 6 .0 0 8 .0 0 1 0 .0 0 1 2 .0 0 1 4 .0 0
Y rs
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Gas In Place- Calculation

Negligible

GIIP = GIIPfree + GIIPadsorbed

GIIP = A * H * ρdaf * GCdaf

Where:

GIIP = Gas Initially In Place


A = Area (m2)
H = Net Thickness of Coal (m)
ρdaf = Coal Density on a “dry ash-free” basis (g/cc)
GCdaf = Gas Content on a “dry ash-free” basis (m3/tonne)

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2.0
CBM DEVELOPMENT

Screening coal block


Production
Drilling and Completion
NTR
Development cycle

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GIIP/SFRanalytical estimate

 Pinf 
GIIP = Ahρaf (1 − a − m)VL   Sgc (1− CO2 )
 Pinf + PL 

RFanalytical

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Screening assessment methodology: GIIP estimate

Mass of net coal in X Hc. Gas content= GIIP


place

High Grade
Thickness distribution Area Shape of
Gas saturation sorption isotherm
(completable coal)
VL / PL
Ash content

Moisture CO2 content

Monte Carlo simulation to handle  P 


uncertainty range on input parameters GIIP = Ahρaf (1 − a − m)VL  inf  Sgc (1 − CO2 )
 Pinf + PL 
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Screening assessment methodology:
recoverable volumes estimate

GIIP X Recove X Land = Scope for


ry factor access Recovery
factor
Production
type curves Analogs
Topography HSSE

Reservoir Wells / Land usage


simulation completions
Infrastructure

Monte Carlo simulation to handle


uncertainty range on input parameters
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Area discounts

North Shilou area Coal depth contour


Existing road
satellite image
1500m well reach

N. Shilou
5km

NSL-O1 location

Green area = proven depth range


Yellow area = probable depth range
Orange area = possible depth range

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Analytical Forecasting

Theoretical recovery factor 2nd

Three Segment Decline curve Analysis Typical Water Saturated Coal bed
Methane Well Performance Profile
Phase1 Phase2 Phase3 Phase2 Phase 3 and 4 are matched with the last two segments of a
3 segment decline curve constructed using the parameters
shown

a. - Qi_apparent is the rate obtained by the intersection of


the Y-axis with a fitted line through the harmonic decline
period (straight line on a log rate vs cum plot if b1 = 1).
b. - d1 is the initial decline factor in units 1/year.
c. - b1 determines the type of decline (exponential: b = 0;
hyperbolic: b > 0; harmonic: b = 1)
d. - The flexpoint (later referred to as d_con) determines
the transition from harmonic/hyperbolic to exponential
decline
e. - Qa is the rate at which the well is abandoned (50
msdf/day as in 2011)
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Example: Reservoir Simulation Arrow MGP

Initial Gas Content (2003) Final Gas Content (2013)


The initial gas content is mapped using The final gas content map is extracted
core data and internally developed from eclipse simulation
depth correlations

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CBM- Drilling Evolution

Vertical Infill Single Multi-laterals Multi-laterals


Conventional Vertical Horizontal (same seam) (multi-seams)

Tried in Arrow

Bowen – Arrow
Australia 26

Data Source- CDX


Artificial Lift

SRP

ESP

PCP

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Non Technical Challenges
Dewatering and Initial Gas Peak Water Production
600000 bbl/day Production Profile Surat
900 900000
800 800000

Gas Rate, MMscf/day


700 700000

Water Rate, bbl/d


600 600000

Wells
500 500000
400 400000
300 300000
200 200000
100 100000
- 0
2009 2014 2019 2024 2029 2034 2039 2044 2049

Gas Rate, MMscfd Water Rate, bbld Wells Req LNG Demand, MMscfd

Flaring
Water Management

Forced Evaporation 28
Saline Water Treatment Plant
UNCONVENTIONAL GAS LIFECYCLE GENERIC OVERVIEW

DEFINE

IDENTIFY & ASSESS SELECT EXCUTE

Explore 1 Appraise 2 Pilot 3/4 Develop

Does the play Is the materiality Can we produce


exist/work ? (scope) present ? commercially ?
Prove Unconventional Gas Demonstrate Materiality Prove Commercial Commercial Development
Play Exists (Scope) Productivity (EUR/well)
• Up to hundreds of wells
• Regional studies (G&G, • Several wells (vert./ horiz.) • Up to tens of wells • Phased programs, incl.
pressure, geochemistry) to demonstrate accumulation • Craft the “EUR recipe”, downspacing
• PSC / JVA / Leasing terms is extensive & gas recoveries including new wellbore & • Surveillance
• Several (vertical) wells or are possible & locate stimulation concepts • Cost efficiency & reduction
core holes to sample for UG sweetspot for future pilot • Acquire production history • Etc.
play parameters • Possible seismic acquisition data
• Possible seismic acquisition • Reduce costs

Keys for Play POS: Keys for Materiality POS: Keys for Productivity POS:
- Play “Big Rules” in place - play scope demonstrated - pilot well performance
- pervasive gas accumulation - h, area, phi, P, Sgas and K - match models
- h, phi, P, Sgas and K quantified - increase EUR
demonstrated - Sweetspot identified - reduce costs
- $/mcf metric achievable - $/mcf metric approached - $/mcf metric passed Source: Tom Hyde
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CBM Development Cycle
Shell Exploration & Production

PSC effective We are here! ODP submission


12/2007 12/2012
12/2009

• Derisking of resource must focus on early assessment of productivity


• Timelines to derisk resource and generate material production are longer
than for conventional gas projects 30
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