URTeC 1582319

Unconventional Resources – Chesapeake’s Integrated Workflow

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Jeff Miller* Chesapeake Energy, Lesley Evans Chesapeake Energy, Keith Yankowsky
Chesapeake Energy
Copyright 2013, Unconventional Resources Technology Conference (URTeC)

This paper was prepared for presentation at the Unconventional Resources Technology Conference held in Denver, Colorado, USA, 12-14 August 2013.

The URTeC Technical Program Committee accepted this presentation on the basis of information contained in an abstract s ubmitted by the author(s). The contents of this paper
have not been reviewed by URTeC and URTeC does not warrant the accuracy, reliability, or timeliness of any information herein . All information is the responsibility of, and, is
subject to corrections by the author(s). Any person or entity that relies on any information obtained from this paper does so at their own risk. The information herein does not
necessarily reflect any position of URTeC. Any reproduction, distribution, or storage of any part of this paper without the written consent of URTeC is prohibited.

Summary

Chesapeake Energy has grown reserves dramatically since 2005 due to increased production from unconventional
reservoirs. This presentation will focus on organizational, workflow and technological drivers for this growth.

Introduction

This presentation illustrates the role of Geoscience and Engineering Technology Groups and their interaction with
operating and exploration teams at Chesapeake Energy. Three critical elements are necessary for success in
unconventional horizontal plays. Technology and workflows required to determine these critical elements are
covered. Chesapeake’s Reservoir Technology Center and proprietary core analysis process is a key technology that
makes Chesapeake unique. The data provided by the Chesapeake Reservoir Technology Center are used to construct
engineering, geological, geophysical and petrophysical maps and models, which correlate to oil and gas production
in unconventional reservoirs.

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Organization
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Figure 1: Org Chart

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Chesapeake is organized by function and then by regional divisions reporting up through their respective functional
Sr VPs. (Figure 1). The two technology groups, Engineering and Geoscience Technology evaluate and facilitate
technology applications and best practices throughout the organization, review projects company wide and develop
workflows to enhance the efficiency of the operating and exploration groups. (Figure 2). Figures 3 and 4 show the
disiplines within the Engineering and Geoscience Technology Groups.
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Figure 2: Interation between technology groups and regional groups at Chesapeake

Figure 3: Geoscience Technology Org Chart

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Figure 4: Engineering Technology Org Chart

The Integrated Horizontal Workflow is a priority workflow at Chesapeake. Figure 5 illustrates the team and
management structure for integrated projects. The project management group accoutable for driving projects
forward consists of the district managers, geoscience, engineering and land in the area which the project is located.
Support and review is provided by the technology groups. Support from senior management all the way through
district team is required for successful integrated projects.

Figure 5: Team and Management structure Intgrated Horizontal Workflow

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Critical Elements

The Integrated Horizontal Workflow consists of three critical elements that must be satisfied for success. Failure in
any single element eliminates the chance of success. It is scalable all the way from exploration projects to
development plans. The critical elements are; hydrocarbons in place, deliverability and hazards. Figure 6
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illustrates the critical elements and deliverables from the Integrated Horizontal Workflow. .

Figure 6: Critical Elements

Hydrocarbons in Place
This is a minimum number that can be estimated using flow unit properties, the cost to drill and complete, and
an estimate of recovery factors from reservoir analogs.
Deliverability
Main drivers for deliverability are permeability (a minimum per hydrocarbon type), pressure, stimulated rock
volume and type of fluid system for liquid reservoirs.
Hazards
Hazards are faults, fracture systems and saltwater zones that negatively impact production post hydraulic
fracturing. The presence and competence of vertical frac barriers must be determined and the impact of local
structures along lateral wellbores to understand the how they interact with the hydraulic fracturing process.

Conclusion

Superior results require consistent well-defined data, workflows, technology implementation and technology transfer
throughout an organization. Advances in technology and the rapid development of unconventional reservoirs
require multidisciplinary studies such as the Integrated Horizontal Workflow approach presented here.

Acknowledgments

I would like to thank Chesapeake Energy for allowing me to make this presentation, Lesley Evans, Manager
Reservoir Characterization and Keith Yankowsky VP Engineering Technology for consultation and review.

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