Comparison of Reservoir Quality from La Luna, Gacheta and US Shale Formations*

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Comparison of Reservoir Quality from La Luna, Gacheta and US Shale Formations* Joel Walls 1 and Elizabeth Diaz 2 Search and Discovery Article #41396 (2014) Posted July 24, 2014 *Adapted from oral presentation given at 2014 AAPG Annual Convention and Exhibition, Houston, Texas, April 6-9, 2014 **AAPG 2014 Serial rights given by author. For all other rights contact author directly. 1 Ingrain, Inc., Houston, Texas, USA (walls@ingrainrocks.com) 2 La Agencia Nacional de Hidrocarburos (ANH), Bogota, Colombia Abstract A large fraction of all whole core samples recovered today come from shale (mudstone) reservoirs. The primary reason for this is that shale petrophysical models require rigorous core calibration to provide reliable data for reservoir quality, hydrocarbon-in-place and hydraulic fracturing potential. However, the uncertainty in interpreting shale well log data is sometimes matched or exceeded by the uncertainty observed in traditional methods of analyzing core samples. High-quality organic-rich shales usually have permeability lower than 0.001 md. This extreme low permeability creates substantial challenges for existing methods and has contributed to the rapid rise of a new approach to shale reservoir evaluation, Digital Rock Physics (DRP). DRP merges 3 key technologies that have evolved rapidly over the last decade. One is a high-resolution diagnostic imaging method that permits detailed examination of the internal structure of rock samples over a wide range of scales. The second is advanced numerical methods for simulating complex physical phenomenon. The third is high-speed, massively parallel computation using powerful graphical processing units (GPU's), originally developed for computer graphics and animation. This presentation describes an integrated DRP process for analyzing rock properties of shale reservoirs at multiple scales. The process begins with whole core samples, progresses to smaller plug size samples, then ultimately to high-resolution 3D imaging of the pore space. This imaging, combined with unique proprietary fluid flow algorithms allows us to compute shale reservoir properties and provide clear 3D renderings of the pore structure. Core samples were available from 4 wells in the Eagle Ford Formation. Results from these wells are compared to La Luna and Gacheta formation cores from the Litoteca Nacional Bernardo Taborda, Colombia. In summary, a multi-scale rock properties analysis process was applied to the analysis of shale reservoir properties in the La Luna and Gatcheta formations. Key results: Porosity and permeability are comparable to or better than those from the Eagle Ford Formation, permeability in the horizontal plane is 10 to 100 times greater than in the vertical direction, porosity association with organic matter varies from 100% of total to less than 10% of total depending on specific formation and depth, and the transformation ratio for kerogen to porosity ranges from about 20% to 40%.

Comparison of Reservoir Quality from La Luna, Gacheta, and US Shale Formations Dr. Joel D Walls, Juliana Anderson, Elizabeth Diaz* Ingrain Inc., Houston Maria Rosa Ceron Agencia Nacional de Hidrocarburos, Bogota * Now at Shell US E&P

Presentation Outline Scope, goals, focus, and timing of project Primary focus of this presentation Middle Magdalena Valley Basin Catatumbo Basin Llanos Basin Digital Rock Physics Methodology for Unconventional Resources Key results and findings Rock Typing and Analog Formations Rock Quality Measures and Comparisons Example Results Summary, Future Analysis

SCOPE, GOAL, FOCUS, AND TIMING

Project Overview: Core Data and Analyses Project Goal: Identify and characterize shale resource potential in key Colombia basins by analyzing archived core and well log data. Project Duration: 4 months Phase 1: Whole Core X-ray CT Imaging Total Core Scanned: 31,058 ft 139 wells Phase 2 & 3: Unconventional Rock Quality Workflow MicroCT & 2D SEM analysis was performed on 65 wells (4357 plugs, 87000+ 2D SEM images analyzed) Top 3 basins analyzed: Catatumbo (1709 plugs) Llanos (842 plugs) Middle Magdalena Valley (803 plugs) 3D FIB-SEM analysis was performed on 453 samples. Top 3 basins analyzed Catatumbo Basin (141 poro-perm samples) Middle Magdalena Valley (220 poro-perm samples) Llanos Basin (56 poro-perm samples) *As part of the unconventional workflow, additional analysis of XRF, EDS mineralogy, and Pore Size Distribution on 2D and 3D volumes was performed.

Project Overview: Initial Focus in 3 Basins Llanos Basin 54 wells 10019 feet of whole core 842 plug samples Catatumbo Basin 24 wells 7512 feet of whole core 1709 plug samples Approximately 2/3 of total project involves these three basins. Middle Magdalena Valley Basin 13 wells 2012 feet of core 803 plug samples Note: None of the wells in the study were drilled or cored with the intent of unconventional resource analysis.

Identify and characterize most productive rock in least amount of time. DIGITAL ROCK PHYSICS METHODOLOGY FOR UNCONVENTIONAL RESOURCES

Examples: Whole Core CT Imaging Half millimeter resolution over entire whole core (500 CT slices/ft) Provides the visual information for a detailed geologic description. Dual energy CT imaging shows layering, healed and open fractures, and other geologic features. Continuous whole core scan from Sardinata Norte - 2 well, Catatumbo Basin

More porosity, TOC CoreHD Litho-density Analogs: Catatumbo - La Luna More calcite Eagle Ford Wolfcamp La Luna More silica

Examples: Sample selection, Micro CT & 2D SEM Imaging 2.5cm MicroCT scan The sample is ion milled (~500 microns) to create a polished surface. 10ft 1mm 10-15 SE and ESB images are acquired and segmented for porosity, organic matter, and high dense minerals. Multiple 1 plugs are taken from each whole core Example is from Infantas-1613 well, Sample 315, VMM Ion Milled SEM 30um

Quantifying Porosity Associated with Organic Material (PA_OM) and Apparent Conversion Ratio Red = Porosity associated with organic material (PA_OM) Green = Solid OM Apparent Conversion Ratio = Red Area / (Red + Green Area) (or Porosity of OM) = PA_OM / (PA_OM + Solid OM) Enlarged image from FIB-SEM Conversion ratio can only be directly quantified by Digital Rock Physics analysis. Example: Sample SE2 has PA_OM = 11% and solid OM = 7.7% Conversion ratio = 11 / (11 + 7.7) Conversion ratio, Sample SE2 = 59% Average for formation = 39%

3D SEM Imaging: VMM Basin pore 1 micron Surface of 3D FIB-SEM Volume Pore Volume Red: isolated pores Blue: connected pores Green: organic material Infantas-1613 Sample 315 Volume % om Total Porosity 10.7 Non-Connected Porosity 0.4 Organic Matter Content 8.6 Porosity Associated with Organic Matter 5.9 Porosity of Organic Material 41 Absolute Permeability (k_horiz.) 1350 nd

KEY RESULTS AND FINDINGS

Rock Quality Analysis La Luna Fm Pores likely oil/gas filled Pores may contain oil/gas or water

VMM: Infantas-1613 - Differences in Permeability Related to Pore Types and Sizes Infantas-1613 Salada-La Luna sample 361 6019.7 ft 1 1. 2 Porosity=10.84%, OM=14.4%, PA_OM=5.6%, K_Horiz.=6045nd, Ave pore diameter=180nm Infantas-1613 Pujamana-La Luna Sample 343 5595.9 ft 2. Sample 1 and 2 have similar porosities, but their permeability values differ. Sample 1 contains more organic porosity and is connected through the organic material. This sample has the highest permeability Sample 2 contains mostly inter-granular porosity 3. Porosity=10.79%, OM=2.56%, PA_OM=1.1%, K_Horiz.=297nd, Ave pore diameter = 45nm

Averages Rock Quality Analysis 3 Basins- 2 Formations La Luna Fm VMM La Luna Fm Catatumbo Llanos Gacheta Middle Wolfcamp Eagle Ford Depth Range (ft) Core Samples 2742-12405 4057-8310 5928-10876 5600-11000 3800-13000 Porosity (%) 6.3 4.8 5.1 5.6 7.5 Organic porosity (% of Total Porosity) Solid Organic Material (vol %) Porosity Inside Organic Material Permeability (K_horizontal) 47% 71% 51% 47% 76% 7.7 8.1 4.7 8.2 9.6 29% 20% 27% 47% 39% 920 733 982 617 717 Maturity (Ro), Kerogen Type 0.6 1.0 (Increasing to south & east) Type II 0.6 2.0 (Increasing to south) Type II 0.5 0.8 (Increasing to west) Type III 0.7-1.0 0.8 to 1.6 Likely Hydrocarbon Type Mostly Oil Mostly condensate Condensate to gas Oil to condensate Oil to dry gas Caution: Averages can be deceiving! There is large variability depending on facies, depth, organic pore type, and other factors.

Summary Rock quality of La Luna (VMM and Catatumbo) similar or better than many North America shale plays. Gacheta formation in Llanos may be prospective but data is limited. Rock property ranges; Catatumbo Poro; 3-12%; TOC (vol%) 5-27; Permeability 10 1000nd VMM - Poro; 2-13%; TOC (vol%) 0-20; Permeability 10 10000nd Llanos - Poro; 2-12%; TOC (vol%) 0-5; Permeability 10 1000nd (2 wells only) Rock quality compared to analogs. La Luna, Catatumbo ----- TOC higher, poro slightly lower, perm higher than Wolfcamp or LEF La Luna, VMM------------- Porosity similar and permeability higher than middle Wolfcamp Gacheta, Llanos----------- Porosity and permeability similar to Fayetteville Large variability by depth and well location. Some zones have high inter-granular porosity, which may host water. Tier 1 Unconventional Prospect: LaLuna; Catatumbo and VMM Tier 2 Unconventional Prospect: Lower Gacheta; Llanos

The authors gratefully acknowledge the Agencia Nacional de Hidrocarburos, Colombia for permission to present this material.

Understanding Organic Porosity Texture 250 nm cube 1 million oil molecules mainly oil window pendular (bubble) 1 µm 1 µm spongy fracture both oil and gas 1 µm mainly gas window 1 µm 1 µm