Examining Our Assumptions-

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Primary funding is provided by The SPE Foundation through member donations and a contribution from Offshore Europe The Society is grateful to those companies that allow their professionals to serve as lecturers Additional support provided by AIME Society of Petroleum Engineers Distinguished Lecturer Program www.spe.org/dl Examining Our Assumptions- Have Oversimplifications Jeopardized Our Ability to Design Optimal Fracture Treatments? Mike Vincent mike@fracwell.com Society of Petroleum Engineers Distinguished Lecturer Program www.spe.org/dl Portions published in SPE 119143 & 128612 1

Convenient Assumptions Making frac design simple Models, Strategies resulting from those assumptions Actual Observations Complex flow regimes Complex frac geometry Field Results 200 field studies where frac designs were altered Specific Challenges Horizontal Well Fracs Opportunities for Improvement Outline Fracs Simple (bi-wing), planar, vertical, hydraulically continuous, highly conductive Reservoir Homogenous reservoirs (or simplified layering) Fluid Flow Convenient Assumptions Simple fluid flow regimes Gel Cleanup Consistent gel cleanup with all proppants, widths? More assumptions listed later 2

Why Fracture Stimulate? Top View Unstimulated Wells: Require high reservoir permeability for sufficient hydrocarbon flow Side View Hydraulic Fractures: Accumulate hydrocarbons over enormous area, achieving economic flowrates from low permeability formations Figures not to scale! Increased Reservoir Contact Multiple Transverse Fracs High gas velocity! Tremendous pressure drop Some operators have placed 28 stages with 3 perf clusters per stage. Initiate 80 transverse fracs?! SPE 128612 3

Design Goals for Simple, Planar Fracture Adequate reservoir contact (frac length) Adequate flow capacity (conductivity) 7 Simple approach to optimize length and conductivity k form w f k f x f F CD = k f * w f k form * x f Dimensionless Fracture Conductivity (F CD ) a ratio of the flow capacity of the fracture 8 and the formation 4

Analytic Solution to Optimize Simplistic Frac Fracture Effectiveness rw' / Xf 1 0.5 0.3 0.2 0.1 0.05 0.03 0.02 Common Fcd target Assumptions: Simple, planar, vertical fracs Similar flow regime in frac and reservoir Consistent wellbore/frac connectivity 0.01 0.1 0.2 0.5 1 2 5 10 20 50 100 Fcd = (Kp)(Wf) / (Xf)(Kf) F cd = (K f )(W f ) / (X f )(K form ) Conductivity Ratio Prats, M.: "Effect of Vertical Fractures on Reservoir Behavior-Incompressible Fluid Case," paper SPE 1575-G Gridded Numerical Simulation Even sophisticated 3d models frequently presume planar fracs with hydraulic continuity 10 SPE 124843 SPE 110093 5

Intuitive (but faulty) proof that fracs are infinitely conductive If my formation looks like this... Doesn t this provide infinite conductivity? 11 Proppant thin section courtesy of Stim-Lab Common Assumptions Analytic Solutions, Numerical Models and Intuition Generally presume simplistic flow, simplistic geometry, perfect wellbore-to-fracture communication, hydraulic continuity throughout frac 12 6

Flow Convergence 30T short, fat frac Smallest possible reservoir contact in a 30T job L f = 200 ft, 61m Half-length h = 50 ft. (15m) Formation thickness If we have contribution from the entire 40,000 ft 2 [3700m 2 ] of reservoir rock which is in contact with the fracture, we may anticipate a bottleneck near wellbore If we (optimistically) retain ¼ inch frac width 6mm (~3 lb/ft 2 or 15 kg/m 2 ) Our fracture cross section is merely = 2 ft 2 0.18m 2 40,000 ft 2 of reservoir rock is feeding 2 ft 2 of fracture cross section Superficial velocity within the fracture is 20,000 times greater than in the formation! Fracture conductivity frequently constrains production! Navigation menu Velocity within Fracture Vertical Well The following animation depicts the flow through an actual proppant pack. The landscape was created using an X-ray CT scan of an actual sample of 16/20 LWC under 4000 psi stress. Approximate Velocity, API/ISO Test 2 ml/min through a 16/20 pack This is only 6-8 grains/second. Many low rate wells require 100x faster gas flow! And this is pristine highly spherical proppant, zero crush, zero fines plugging, etc Approximate Velocity 35 MSCFD dry gas at 500 psi BHFP Or 1 MSCFD (28 m 3 /d) at 15 psi BHFP (1 atm) Conditions: 2 lb/ft 2 [10 kg/m 2 ] 16/20 LWC at 4000 psi stress 50 ft fracture height, 2 frac wings, perfect wellbore-frac connection CT Scan and mpg video courtesy of CARBO 7

Realistic Conductivity Reductions 20/40 proppants at 6000 psi 2.1 7000 7000 Chinese Sand Effective Conductivity (md-ft) (D-m) 1.8 1.5 1.2 0.9 0.6 0.3 6000 5000 4000 3000 2000 1000 500 1500 1137 182 5715 72 672 3481 24 225 Jordan Sand CarboLITE Effective conductivities can be less than 1% of API test values 1243 5 49 479 1.4 14 144 0.6 99.9% reduction 0.0001 D-m 7 130 98.6% 0.029 D-m reduction 99.7% 0.001 D-m reduction 0.3 4 96 15 0 API Test Modified 50-Hour Test "Inertial Flow" with Non-Darcy Effects Lower Achieved Width (1 lb/sq ft) Multiphase Flow 50% Gel Damage Fines Migration / Plugging Cyclic Stress Conditions: YM=5e 6 psi, 50% gel damage, 250 F, 1 lb/ft 2, 6000 psi, 250 mcfd, 1000 psi bhfp, 20 ft pay, 10 blpd YM=34e 3 MPa, 50% gel damage, 121 C, 5 kg/m 2, 41 MPa, 7000 m 3 /d, 7 MPa bhfp, 6 m pay, 1.6 m 3 l/d References: ST Sand: SPE 14133, 16415, CL: Carbo typical, LT: Stim-Lab PredK 2002, SPE 24008, 3298, 7573, 11634, CARBO Tech Rpt 99-062, Run #6542, StimLab July 2000, SPE 16912, 19091, 22850, 106301, 84306 Fracture Effectiveness rw' / Xf 1 0.5 0.3 0.2 0.1 0.05 0.03 0.02 Prats Correlation Did we realistically achieve this? If we designed to reach this Fcd 0.01 0.1 0.2 0.5 1 2 5 10 20 50 100 Fcd = (Kp)(Wf) / (Xf)(Kf) F cd = (K f )(W f ) / (X f )(K form ) Fracture Conductivity Is there much more remaining potential than we thought? Prats, M.: "Effect of Vertical Fractures on Reservoir Behavior-Incompressible Fluid Case," paper SPE 1575-G 8

Off by 100-fold?! Even in simple, continuous, planar fracs Even if we carefully arrange proppant with perfectly uniform distribution, with lab-grade fluids, perfect breakers, limit test to 50 hours, etc. Pressure losses are generally 50 to 1000 times higher than suggested by advertised data Concern #1 Flow regimes are complex within propped fracs oversimplifications may mislead us. 17 Is our frac geometry assumption valid? Do we envision these proportions? Fracs are very narrow ribbons, massively long! 18 SPE 128612 9

Relatively simple, extremely wide fracture Extends 9500 feet at surface, average width exceeding 7 feet! 19 Pollard (2005) Northeast Ship Rock Dike, New Mexico Outcrop actually comprised of >30 discrete echelon segments separated by intact host rock 20 Pollard (2005) Northeast Ship Rock Dike 10

Are Hydraulic Fracs Simple Planes? Top View Mineback studies 22 CBM minebacks in 6 states; dozens in Australia Surprising complexity, gel residue, discontinuous proppant Less apparent conductivity than predicted by models References: Bureau of Mines Rpt 9083, Diamond and Oyler, SPE 22395, Diamond CBM Symposium 11/87, Lambert OGJ 10/9/89, SPE 15258. Dozens in Australia (Jeffrey 124919, 28079, 21 119351, 63031) Even in competent rock selected for predictable mechanical properties 6 perforations on lower side of hole (plus 6 on top) 5 separate fractures initiated from the 6 lower perforations 22 Warpinski, Sandia Labs. Nevada Test Site, Hydraulic Fracture Mineback 11

Observations of Fracture Complexity Physical evidence of fractures nearly always complex 23 Warpinski, Sandia Labs. Nevada Test Site, Hydraulic Fracture Mineback Multiple Strands in a Propped Fracture (Vertical Well) Physical evidence of fractures nearly always complex 24 Warpinski, Sandia Labs. Nevada Test Site, Hydraulic Fracture Mineback 12

Multiple Strands in a Propped Fracture (Vertical Well) Mesaverde 25 MWX test, SPE 22876 7100 ft TVD [2160m] 32 Fracture Strands Over 4 Ft Interval HPG gel residue on all surfaces Gel glued some core together (>6 yrs elapsed post-frac!) All observed Physical frac evidence sand of (20/40 RCS) fractures pulverized nearly <200 always mesh A second fractured complex zone with 8 vertical fractures in 3 ft interval observed 60 feet away (horizontally) Vertical Complexity Due To Joints Physical evidence of fractures nearly always complex 26 NEVADA TEST SITE HYDRAULIC FRACTURE MINEBACK 13

Woodford Shale Outcrop Some reservoirs pose challenges to effectively breach and prop through all laminations Photo Courtesy of Halliburton Navigation menu Is complexity solely attributed to rock fabric? Chudnovsky, Univ of Ill, Chicago Unconsolidated 200 mesh sand, 35 lb XLG, Flow SPE 63233 28 Many other examples! [TerraTek, Baker, Weijers, CSM FAST consortium] 14

Fractures Can be Enormous Features 3000 2800 2600 2400 2200 2000 1800 1600 1400 3000 x 2900 = First Stage Perf Clusters = 2nd Stage Initial Perf Clusters = Revised 2nd Stage Perf Clusters South-North (ft) 1200 1000 800 600 400 200 0-200 -400-600 -800-1000 -1200 Treatment Well Observation Well Box covers 9 million ft 2 [~200 acre land area] Arguably 10 to 100 million ft 2 of fracture surface area! [reservoir contact] -1400-1600 -1800 1st Stage 2nd Stage -2000-3500 -3300-3100 -2900-2700 -2500-2300 -2100-1900 -1700-1500 -1300-1100 -900-700 -500-300 -100 100 300 500 700 900 1100 1300 1500 West-East (ft) 29 Concern #2 Complexity? On every scale that we investigate, fractures are more complex than the simplified frac geometry we presume in our models 30 15

Does this degree of complexity matter? Interesting industry dialogue Are these examples anomalous or worst case? Do we need any more precise info for fracture propagation theory? The concern evaluated here is not propagation modeling, it is fluid flow and production optimization 31 Range of Fracture Complexity Simple Fracture Complex Fracture Very Complex Fracture Network Pro: Complex fracs increase the reservoir contact (beneficial in nano- Darcy shales?) Con: Complex fracs complicate the flow path, and provide less cumulative conductivity than simple, wider fractures [SPE 115769] 32 SPE 77441 16

Frac Optimization Implications Simple Fracture Optimal Frac Conductivity proportional to reservoir perm Large Network Reducing Reservoir Perm by 10,000 only reduces conductivity requirement by 10 (k 1/4 ) 33 SPE 115769 Fractures Intersecting Offset Wellbores Evidence frac ed into offset 1500 wells Barnett Shale 500 Solid radioactive tracer (logging) 0 Offset wells (blue) Observed in loaded with frac fluid -500 Tight sandstone (Piceance, Jonah, Cotton After unloading Valley, fluid, Codell) -1000 several High offset perm wells sandstone (Prudhoe) permanently stimulated by treatment! Microseismic mapping Slurry to surface1000 Increased watercut Noise in offset monitor well South-North (ft) Shale (Barnett) -1500-2000 Dolomite (Middle Bakken) Chalk (Dan) -2500 Observation Well Often EUR, pulse tests interference tests fail to indicate sustained hydraulic 34 connectivity! -3000-1000 -500 0 500 1000 1500 2000 2500 3000 West-East (ft) SPE 77441 17

Lack of Hydraulic Connection? Possible Explanations Poor gel cleanup gel plugged regions But does not satisfactorily explain slickwater results Extremely low frac conductivity Probable Discontinuous frac lack of hydraulic continuity Probable 35 Frac Width with CrossLinked Gel Diffuse slurry Modest concentration TSO + high concentration Diffuse slurry Low concentration w f We don t envision thick filtercakes in very tight rock, but it doesn t take much to damage a narrow frac! 2 ppa [240 kg/m 3 ] sand slurry is about 1 part solids to 7 parts liquid. Final frac width could be ~1/7 th the pumping width! Navigation menu 18

Uniform Packing Arrangement? Pinch out, proppant pillars, irregular distribution? Is this ribbon laterally extensive and continuous for hundreds or thousands of feet? 37 Fracs may provide imperfect hydraulic continuity Vertical Lateral Concern #3 38 19

Potential Proppant Arrangements End of Pumping During Production Arch Dune 100,000 lbs of 20/40 proppant contains ~125 billion particles Most every arrangement we can envision likely exists somewhere in a frac All arrangements cause higher stress concentration on proppant than our idealized testing on uniform wide packs In series, the flow capacity limited by poorest arrangement, not the average 39 SPE 115769, 114173, 115766, 90698 Flow Capacity of Narrow Fractures Split Core Cotton Valley Sandstone core YM 3.6 to 7.0 e6 psi 12% porosity 0.05 md Split Core No Proppant Split Core 0.1 lb/ft 2 Proppant 40 SPE 60326, 74138 20

Behavior of Proppant In Various Concentrations 10000 Large frac width [2.0 lb/ft 2 ] between honed core 2.0 lb/sq ft bauxite Reference Conductivity, md-ft 1000 100 10 1 2x to 3x difference in flow capacity between sand and bauxite at 4000 psi. 2.0 lb/sq ft Jordan sand 41 0.1 0 2000 4000 6000 8000 14 MPa Closure 28 Stress, MPa psi 41 MPa Adapted from SPE 60326, 74138, 119143 Behavior of Proppant In Various Concentrations Reference Conductivity, md-ft 42 10000 1000 100 10 1 0.1 Intermediate frac width [1.0 lb/ft 2 ] between split core 10x difference in flow capacity between sand and bauxite at 4000 psi. 1.0 lb/sq ft bauxite 1.0 lb/sq ft Jordan sand 0 2000 4000 6000 8000 14 MPa Closure 28 Stress, MPa psi 41 MPa Adapted from SPE 60326, 74138, 119143 21

Behavior of Proppant In Various Concentrations 10000 Narrow fracs [0.1 lb/ft 2 ] between split core Reference Conductivity, md-ft 43 1000 100 10 1 Concern #4: Proppants may not behave as we traditionally report 0.1 lb/sq ft Jordan sand Aligned Fracture no proppant 0.1 lb/sq ft bauxite 100x difference in flow capacity between sand and bauxite at 4000 psi. 0.1 0 2000 4000 6000 8000 14 MPa Closure 28 Stress, MPa psi 41 MPa 14 MPa 28 Adapted MPa from SPE 4160326, MPa 74138, 119143 Assumptions Flow Complexity, Frac Geometry, etc All challenge ability to provide adequate conductivity Other Omissions: Stress concentration on irregularly distributed proppant Gel cleanup is more thorough in high conductivity fracs Wider fracs are less damaged by Filtercake, cyclic stress, fines plugging Higher porosity fracs less damaged by Filtercake, fines plugging All proppants degrade over time but at different rates Not all proppants are thermally stable Hypothesis: Conductivity may be more important than our traditional models and 44conventional wisdom predict 22

Field Evidence of Inefficient Fracs Lack of competition in wells connected by frac Steep production declines Surprisingly limited drainage areas often don t correspond to mapped fracture extent Infill Drilling Often successful on surprisingly close spacing Well Testing Disappointing frac lengths and/or low apparent conductivity Field trials Refrac results Where operators experimented with increased frac conductivity 45 Shouldn t complexities be obvious from production data? 2000 1800 Actual Production Data 200 180 Stage Production (mcfd) 1600 1400 1200 1000 800 600 400 160 140 120 100 80 60 40 Cumulative Production (MMscf) 200 20 0 0 0 100 200 300 400 500 600 Production Days 46 SPE 106151 Fig 13 Production can be matched with a variety of fracture and reservoir parameters 23

Shouldn t complexities be obvious from production data? Stage Production (mcfd) 2000 1800 1600 1400 1200 1000 800 600 400 200 Actual production data Long Frac, Low Conductivity 500' Xf, 20 md-ft, 0.5 ud perm, 23 Acres 4:1 aspect ratio 200 180 160 140 120 100 80 60 40 20 Cumulative Production (MMscf) 0 0 0 100 200 300 400 500 600 Production Days 47 SPE 106151 Fig 13 Production can be matched with a variety of fracture and reservoir parameters Shouldn t complexities be obvious from production data? Stage Production (mcfd) 2000 1800 1600 1400 1200 1000 800 600 400 200 Actual production data Long Frac, Low Conductivity 500' Xf, 20 md-ft, 0.5 ud perm, 23 Acres 4:1 aspect ratio Medium Frac, Low Conductivity 100' Xf, 20 md-ft, 5 ud perm, 11 Acres 4:1 aspect ratio 200 180 160 140 120 100 80 60 40 20 Cumulative Production (MMscf) 0 0 0 100 200 300 400 500 600 Production Days 48 SPE 106151 Fig 13 Production can be matched with a variety of fracture and reservoir parameters 24

Shouldn t complexities be obvious from production data? 2000 Actual production data 200 Stage Production (mcfd) 1800 1600 1400 1200 1000 800 600 400 200 Long Frac, Low Conductivity 500' Xf, 20 md-ft, 0.5 ud perm, 23 Acres 4:1 aspect ratio Medium Frac, Low Conductivity 100' Xf, 20 md-ft, 5 ud perm, 11 Acres 4:1 aspect ratio Short Frac, High Conductivity, Reservoir Boundaries 50' Xf, 6000 md-ft, 10 ud perm, 7 Acres 4:1 aspect ratio History matching of production is surprisingly non-unique. Too many knobs available to tweak We can always blame it on the geology 180 160 140 120 100 80 60 40 20 Cumulative Production (MMscf) 0 0 0 100 200 300 400 500 600 Production Days 49 SPE 106151 Fig 13 Production can be matched with a variety of fracture and reservoir parameters Removing the Uncertainty If we require a production match of two different frac designs, we remove many degrees of freedom lock in all the reservoir knobs! Attempt to explain the production results from initial frac AND refrac [~100 published trials] Require simultaneous match of two different frac designs in same reservoir! [200+ trials] 50 25

Field Studies Documenting Production Impact with Increased Fracture Conductivity >200 published studies identified, authored by >150 companies Oil wells, gas wells, lean and rich condensate Carbonate, Sandstone, Shale, and Coal Well Rates Well Depths 1 to 25,000 bopd 100 to 20,000 feet 0.25-100 MMSCFD 51 SPE 119143 tabulates over 200 field studies Dataset Limitations Intentional Eliminated most field examples with dramatic fluid rheology changes Are production gains attributed to proppant transport (frac length), differing gel cleanup, differing frac heights? Unintentional It s just my literature review. Certainly I missed some excellent papers Publication Bias Industry rarely publishes failures Nonetheless I summarize 10 examples of exceptions to the rule 52 A tabulation of 200 papers in SPE 119143 26

Production Benefit In >200 published studies and hundreds of unpublished proppant selection studies, Operators frequently report greater benefit than expected using: Higher proppant concentrations More aggressive ramps, smaller pads Screen outs Larger diameter proppant Stronger proppant Higher quality proppant More uniformly shaped & sized proppant Frac conductivity appears to be much more important than our models or intuition predict! 53 A tabulation of 200 papers in SPE 119143 Statistically Compelling Example 0.002 md 446 fracs in carefully conducted trial Reference F cd > 400 with modest sand concentrations; >2000 with ceramics 54 Using published conductivity data and simplistic models, frac conductivity should not matter However, field results prove with 99.9% certainty that proppant selection does matter 70% increase in productivity with better ceramic! <5% benefit predicted with laminar model 200 other examples in SPE 119143 SPE 106151 27

W TX, NM, Permian Examples (1 of 3) SPE 4677, Smith: High prop concentrations and screenouts beneficial: Field examples customized for each New Mexico: Lea County audience Texas: Crane, Howard, Midland, Gaines, Yoakum Counties Colorado, Arizona, Utah SPE 24307, Hower: recompleting nitroglycerin fracs in Mesaverde in San Juan Basin, NM SPE 77675, Vincent: Refrac SJB CBM wells with better proppant SPE 67206, Logan: Morrow formation, SE NM. High conductivity fracs increased well #1 80->600 mcfd; well #2 400->3500 mcfd SPE 20708, Ely: high proppant concentrations, larger volumes, forced closure SE New Mexico Several Texas fields including Ector County World Oil, Mar, 1990, Smith: Rio Arriba County, NM Mesaverde: sand to 12 ppg, very favorable production response SPE 27933, Hailey: Granite Wash, Mendota: isolation and restim of individual layers W TX, NM, Permian Examples (2 of 3) SPE 6440, Cooke: 17 field tests, TX and Miss with bauxite instead of sand or acidized completions. Significant gains in all wells SPE 13817, Pauls: Olmos. Refracs at 12 ppg gave 13-fold increase SPE 7912, Logan: SW TX (Webb Cty). Refracs with larger diameter proppant and high proppant concentration yielded 620% increases SPE 3298, Coulter: Crockett Cty TX. Canyon Sand gas production more sustained with higher proppant concentrations SPE 117538, Blackwood: Sutton Cty, TX, Canyon Sand: ELWC provided 60% higher IP and ~40% superior cumulative production in 1 st 3 years compared to Brady sand. SPE 14371, Britt: Andrews and Ector Counties, TX: Increasing sand concentration from 2 ppg to 6 ppg improved production 160% SPE 11930, Illseng: Anton Clearfork (near Lubbock) Initial wells stimulated with low sand concentrations resulted in steep decline. 100 wells treated near 14 ppg gave sustained rates and 100-day payouts Field examples customized for each audience 28

W TX, NM, Permian Examples (3 of 3) SPE 24011, Fleming: Mitchell County TX, Middle Clearfork dolomite: more aggressive concentrations, larger diameter sand (up to 8/16!) 32 refracs >200% ROR SPE 4118, Holditch: Devonian, Wilcox, Hosston including Pecos Cty TX. High viscosity gels and increased prop concentration SPE 20134, Kolb: Crane, Upton Counties, dolomite. Acid jobs failed to provide long term stimulation. Refracs with sand, then up to 10 ppg refracs SPE 22834, Olson: Devonian, Crane County TX: 2 ppg sand refractured with 5 ppg ceramics. 2x to 8x increase in oil rates SPE 23995, Blauer: Midland Basin, Spraberry/Dean. Larger, more aggressive fractures showed greater long-term production and greater EUR Field examples customized for each audience Maybe conductivity matters even in this part of the world? But what about Horizontal Wells? 58 29

Intersection of Wellbore and Fracture Vertical Wells: Typically benefit greatly from improved conductivity 200 field studies - SPE 119143 Horizontal Well with Longitudinal Frac: Uncemented or fully perforated liner Good connection, fluid only needs to travel ½ the pay height within the frac. proppant conductivity requirements are trivial almost anything will be fine Intersection of Wellbore and Fracture Cemented Liner Horizontal Well Cemented liner with limited perforations Fluid travels shorter distances within the frac, but there is significant flow convergence around perfs. Proppant conductivity requirements are a consideration Lyco selected RCS for this completion style (SPE 90697) 30

Intersection of Wellbore and Fracture What if the fracs are NOT longitudinal? In a small fat frac (160 ft Xf, 100 ft h,.4 w), the surface area of the frac is 1 million times greater than the intersection with an 8 wellbore. Velocity can be 1,000,000 times greater in the frac than in the formation! [SPE 101821] Horizontal Well with Transversely Intersecting Frac: (Orthogonal, perpendicular, transverse, imperfectly aligned) Oil/gas must travel hundreds/thousands of feet within fracture, and converge around a very small wellbore high velocity within frac! Horrible Connection; Enormous fluid velocity and near-wellbore proppant characteristics are key! Velocity within Transverse Fracture This is only 6-8 grains/second. Many wells require 100-10,000x faster gas flow! And this is pristine highly spherical proppant, zero crush, zero fines plugging, single phase, etc The following animation depicts the flow through an actual proppant pack. The landscape was created using an X-ray CT scan of an actual sample of 16/20 LWC under 4000 psi stress. Approximate Velocity, API/ISO Test 2 ml/min through a 16/20 pack Approximate Velocity 20 SCFD (0.5m 3 /d) at 15 psi BHFP (1 atm) Or 600 SCFD dry gas at 500 psi BHFP Or 6 mcfd at 5000 psi BHFP Conditions: 2 lb/ft 2 [10 kg/m 2 ] 16/20 LWC at 4000 psi stress 1 transverse frac.mpg video format courtesy of CARBO 31

More Stages? In some reservoirs, operators have pumped 28 stages, with 3 perf clusters per stage. 84 entry points! Question: Are we convinced we touch more rock with more stages, or are we simply redistributing our investment, placing it nearer the wellbore with more entry points? If you increase intersection by 84-fold, you decrease velocity by 84 fold and reduce pressure losses by 84 2 or >7000 fold! However, operators are understandably reluctant to be aggressive on toe stages! Courtesy Karen Olson, BP Summary (1 of 3) The world is complex. We must make simplifying assumptions: Mathematically convenient to describe fractures as simple, vertical features with uniform proppant distribution and continuity Published reference conductivity data are often presumed to provide reasonable estimates of flow capacity Simplified reservoir descriptions (minimal layering, predictable drainage boundaries) simplifies modeling efforts Handy to assume same flow regime in reservoir and in fracture These assumptions are demonstrably false (at least imperfect) 64 32

Summary (2 of 3) Pressure losses within uniformly propped fractures are ~100-times higher than predicted by simplistic models Reservoirs contain heterogeneities (boundaries, laminations, anisotropy, lenticular bodies, etc) that increase the need for laterally and vertically continuous fractures Frac geometry is often complex Not all fracs demonstrate sustained hydraulic continuity Introducing any degree of fracture complexity increases our need to design more conductive fractures We are not making offsetting errors!! All our assumptions are erring the same direction!! 65 200 field studies Summary (3 of 3) tremendous opportunities to improve the productive potential of hydraulically fractured wells simplistic models fail to recognize that potential It will be much easier to double well productivity than to cut well costs by another 50%! 66 33

Recommendations Recognize that tools are imperfect Improve them where easy Compensate for their shortcomings Frac Complexity Touches more rock (good!) Challenges our ability to provide adequately conductive frac (bad) Conductivity You need more than you think! Be willing to listen to the production data Especially when the results violate your intuition! There is always a better frac design! Don t be limited by your tools or imagination! Your Feedback is Important Enter your section in the DL Evaluation Contest by completing the evaluation form for this presentation or go online at: http://www.spe.org/events/dl/dl_evaluation_contest.php Society of Petroleum Engineers Distinguished Lecturer Program www.spe.org/dl 68 34

SPE 119143 Examining Our Assumptions- Have Oversimplifications Jeopardized Our Ability to Design Optimal Fracture Treatments? Mike Vincent mike@fracwell.com 35