Geology of the Louisiana Haynesville Shale Play

Annual Institute on Mineral Law Volume 56 The 56th Annual Institute on Mineral Law Article 6 4-2-2009 Geology of the Louisiana Haynesville Shale Play Louis Gilbert Follow this and additional works at: http://digitalcommons.law.lsu.edu/mli_proceedings Part of the Oil, Gas, and Mineral Law Commons Repository Citation Gilbert, Louis (2009) "Geology of the Louisiana Haynesville Shale Play," Annual Institute on Mineral Law: Vol. 56, Article 6. Available at: http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 This Paper is brought to you for free and open access by the Mineral Law Institute at LSU Law Digital Commons. It has been accepted for inclusion in Annual Institute on Mineral Law by an authorized editor of LSU Law Digital Commons. For more information, please contact kayla.reed@law.lsu.edu.

Gilbert: Geology of the Louisiana Haynesville Shale Play Geology of the Louisiana Haynesville Shale Play Prepared By: Louis Gilbert April 2, 2009 L4IS GILDER? & AsIOCIATI, INC. - 25 - Published by LSU Law Digital Commons, 2009 1

Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 Shale-Abundant, Clastic Sedimentary Rock Comprised Primarily Of Clay (Less Than 0.00015 Inches) And Silt (Between 0.00015 And 0.0025 Inches)(" Sized Particles That Have Been Consolidated into Rock Layers. Shale Typically Exhibits Extremely Low Permeability And Is Often Considered A Natural Barrier Or "Seal" To The Migration Of Hydrocarbons. (1.) Flint, Richard F. & Skinner, Brian J., 1974, Physical Geology :New York, John Wiley & Sons The First Commercial Shale Gas Well Was Drilled In 1821. It Was Drilled 27' Deep Into The Devonian Dunkirk Shale And Supplied The Residents Of Nearby Fredonia New York With Gas To Illuminate Their Homes. (1) (1)Franz, Joseph H., Jochen, Valerie, Shale Gas White Paper, Schlumberger, 2005-26 - http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 2

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Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 4

Gilbert: Geology of the Louisiana Haynesville Shale Play Considering Source Rock Potential * Geologic Conditions. * Organics. * Petrophysics. * Reservoir Conditions. -29 - Published by LSU Law Digital Commons, 2009 5

Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 Considering Source Rock Potential * Geologic Conditions. - Early. * Suitable Source Rocks * Depositional Environment - Late * Geological Complexity * Well Control Geological Conditions Required For Sediments (Shale) to Generate Hydrocarbons * Source Of Clastic Material With Sufficient Amounts Of Organic Content. * Rapid Burial In An Anoxic Environment. * Additional Sedimentation To Increase Pressure And Temperature. * Sufficient Heat And Time (Millions Of Years) To Facilitate The Maturation Of Kerogen. - 30 - http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 6

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Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 Chesapeake -32- http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 8

Gilbert: Geology of the Louisiana Haynesville Shale Play Considering Source Rock Potential * Organics. - Total Organic Content ("TOC"). * Type Specific * Minimum % Values - Thermal Maturity. * Measured By Vitrinite Reflectance (Ro) * Gas Window Kerogen Types * Type I-Lacustrine (Lake) Or Marine In Origin, Algal Or Planktonic Matter, Tends Towards Oil Production. * Type II-Deep Marine, Planktonic, Oil Or Gas Production Depending Upon Maturity. * TyDe III-Shallow to Deep Marine, Terrestrial Plant Debris. Dry Gas Production. - 33 - Published by LSU Law Digital Commons, 2009 9

Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 TOC Boyer, Charles; Kieschnick, John; Lewis, Richard E., Producing Gas From Its Source: Oilfield Review, 2006 Vitrinite Reflectance As Indicator of The Thermal Maturity Of Kerogen * Reflectance Measurements Are The % Light Reflected In Oil (Ro). * Reflectance Increases With Temperature. * Ro Values Vary From One Organic (Kerogen) Type To Another. * High Ro Values (>1.5%) Indicate Presence Of Dry Gas. * Lower Ro Values (0.6 to 0.8%) Indicate The Presence Of Oil. 34 - http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 10

Gilbert: Geology of the Louisiana Haynesville Shale Play Thermal Transformation of Kerogen-The Precursor Of Oil & Natural Gas X Boyer, Charles; Kieschnick, a t John; Lewis, Richard E., Producing Gas From Its Source: Hydrocarbons generated --- Oilfield Review, 2006 Haynesville Organics * TOC 0.5 to 4% By Weight. (1) * Vitrinite Reflectance (Ro) 2.2 to 3%. * Kerogen Type III 5.2% By Volume. (3) (1) Trstone Capital (2) Chesapeake (3) Tristone Capital -35- Published by LSU Law Digital Commons, 2009 11

Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 Considering Source Rock Potential * Petrophysics. - Rock Matrix Porosity (>4%). * Well Logging * Core Analysis - Rock Matrix Permeability (>100 Nanodarcies). * Core Analysis - Fluid Saturation (Wtr. < 45% & Oil < 5%). * Core Analysis Typical Source Rock Well Evaluation Tools * Mud Log With Gas Detector. * Wireline Logging Tools Or Logging While Drilling ("LWD") Formation Evaluation Tools. * Conventional Core Recovery And Analysis. -36- http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 12

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Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 High Organic Shale Well Log Indicators * High (Radioactive) Gamma Counts Commonly Above 135 API Units. * Rwam Response Higher Than Background. * Density Porosity Values Up To 15%. (1)Rwa=Rt/F Where Rt is Formation Resistivity From Well Log; F Is Resistivity Of Rock Matrix/Formation Water Resistivity. Comparison of 5" Detail Log to 1" Correlation Log 38 - http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 14

Gilbert: Geology of the Louisiana Haynesville Shale Play Camterra-Bozeman 35-1 Casplana Field Section 35, T-16N, R-14-W Completed: 3-5-08 Perforations: 11716-11835 Overall IP: 320 MCFD, 0.2 BCD, GVTY 50 GOR: 1,600,000:1 cfibbi FTP: 410 psig CK: 12164" Porosity and Permeability Comparison of Haynesville and Bossier with Other Shale Plays Multiple formations - Porosity and Permeability ci a) f) QI s 's *. Shale rock properties as measured with GRI methodology at CoreLabs: Barnett Bosser, Caney, Conasauga, Fayetteville, Haynesville, Mannf Canyon, Marcellus, Woodford Porosity Increases -39- Published by LSU Law Digital Commons, 2009 15

Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 Haynesville Shale Petrophysics * Porosity (Log) 9-15%.(1) * Porosity (Core) 8-9%.(2) * Permeability (Measured In Nanodarcies). * Water Saturation 15-20%.("" (1) Density Log Porosity (2) Tristone Capital (3) Chesapeake Critical Cutoff Values A Critical reservoir parameters. Experience in multiple US shale-gas basins has shown that shale-gas reservoirs must meet or exceed these parameters to be commercially viable. Boyer, Charles; Kieschnick, John; Lewis, Richard E., Producing Gas From Its Source: Oilfield Review, 2006-40- http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 16

Gilbert: Geology of the Louisiana Haynesville Shale Play Considering Source Rock Potential * Reservoir Conditions. - Depth - Formation Thickness - Formation Pressure - Rock Mechanics * Natural Fracture Induced Permeabiltiy * Acceptance Of Hydraulic Fracturing Reservoir Characteristics * Depth 10,000' to 13,700'+. * Pressure Up To +11,000 psi. * Temperature 24 0 to 3220 F. (2) * Excellent Frac Barriers (Bossier & Smk.) * GIP/Section 150 to 225 BCF. * EUR/Horizontal 4.0 to 8.5 BCF. (1) Geo-pressured Gradient Up to 0.9 psi/ft (2) Chesapeake -41- Published by LSU Law Digital Commons, 2009 17

Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6-42 http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 18

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Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 Louisiana Haynesville Area Map Current Area Approaching 2,500 Sq. Mi. W/Expansion Possible. N-S Extent T1ON to TI9N; E- W Extent R8W to R16W. Over 86 Completions To Date. IP Rates Between 240 mc And 28.0 mmcf. Developing The Haynesville Shale * Units Typically 640 Acre Governmental Sections. Definition Includes Haynesville And Bossier Shale (Haynesville Zone). * Can Be Developed With Horizontal Or Conventional (Vertical) Wells. * Legal Well Location 330' From Unit Lines And 660' Between Wells. * May Be Downhole Combined With Production From Other Intervals. -44 - http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 20

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Annual Institute on Mineral Law, Vol. 56 [2009], Art. 6 E.G. Plantation No. 63-Alt IP 17,076 MCFD; EUR 8.841 BCFG (Horizontal Well) Courtesy of Coutret & Associates, Shreveport SRLT No. 29-2-H Alt. (Type Curve) IP 2,647 MCFD; EUR 2.021 BCFG (Horizontal Well) - 3807 UJF-L- 14 1. fl 20 38 34 38 42 Courtesy of Coutret & Associates, Shreveport -46 - http://digitalcommons.law.lsu.edu/mli_proceedings/vol56/iss1/6 22

Gilbert: Geology of the Louisiana Haynesville Shale Play Additional Potential * Some Porosity Logs And Limited Early Completions Indicate Additional Potential Exists In The Bossier Shale Which Is Commonly Over >1,000' Thick. * Stacked Pays-Shallow Opportunities In The Pettet, Hosston (Travis Peak) And Cotton Valley Formations. Haynesville Benefits * Geological Knowledge. * Regional Depositional Area. * Good Rock Properties. * Good Frac Barriers (Bossier & Smackover). * Existing Industry Infrastructure. * Adequate Water Supply. * Largely Rural Area. * Reasonable Lease Costs? * Established Regulatory Procedures. -47 - Published by LSU Law Digital Commons, 2009 23