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EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp

Chesapeake Energy Corp · Mar 10, 2011 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 1
    EPA Hydraulic Fracturing Workshop March 10th - 11th, 2011
  2. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 2
    Fracture Design in Horizontal Shale Wells Data Gathering to Implementation Tim Beard Sr. Engineering Advisor - Completions Chesapeake Energy Corporation 6100 N. Western Avenue Oklahoma City, OK 76118 405-935-8000…
  3. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 3
    Presentation Overview Goal Planning Data Measuring Validating Properties Needed in Modeling Designing the Hydraulic Fracture Frac Models in Vertically Heterogeneous Formations Execution 3
  4. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 4
    CHKs Operating Areas Low-risk, U.S. onshore asset base; Not exposed to economic, geopolitical or technological risks internationally or in the Gulf of Mexico 4
  5. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 5
    Shale Information Shale Play Fayetteville Barnett Eagle Ford Haynesville Marcellus Average Depth From 4,500 7,400 9,000 11,500 7,100 Surface (ft) Bottom Hole 130 190 260 320 145 Temperature (F) Bottom Hole 2,000 2,900 6,200…
  6. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 6
    What is the Goal of Hydraulic Fracturing Maximize the Stimulated Reservoir Volume (SRV) along the horizontal wellbore for a given well spacing to maximize hydrocarbon production within the zone of interest. Orientation and lateral…
  7. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 7
    Planning 7
  8. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 8
    What data do we use What are the main variables that need to be factored into each frac design Porosity and Permeability Maximum Principle Stress Direction Lateral Length Lithology of Pay Brittleness vs. Ductility Youngs Modulus…
  9. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 9
    Wireline Log Data Logs are run in regionally representative pilot wells over the zone(s) of interest. Triple Combo Log, Spectral Gamma Ray, Dipole Sonic Log, Formation MicroImager The data gathered from the logs is utilized to do a…
  10. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 10
    Lateral Orientation Maximum Principle Stress Direction Perpendicular to maximum principle stress Optimize transverse fracturing Slight variations for more efficient pattern development Lateral Placement 10
  11. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 11
    Lateral Placement Well: PROCKO_MARTIN_WHITMAN_625599 COMPANY: CHK Composite DATUM FOR ELEVATION: GR LOCATION: TWP - Range - Sec SURFACE ELEVATION: 15.00 LATITUDE: 39.0000 MEASUREMENT REF.: LONGITUDE: 80.0000 ELEVATION MEAS. REF.:…
  12. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 12
    Mechanical Properties and Stress Estimation from Acoustic Logs Elastic Moduli Estimated from Acoustic Logs Several Stress Equations are Appropriate Uniaxial Transverse Isotropic Equation (Lateral Strain Model): Hmin =…
  13. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 13
    Pump-In Testing: Key Calibration Pump-In Tests Conventional Pump-In Tests in Cased Hole Closure Stress is Determined After Closure Analysis MDT Pump-In Tests in Open Hole Closure Stress is Determined Core Data The pump-in tests…
  14. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 14
    Fracture Model Mechanical Properties Petrophysics processes the Dipole Sonic log for rock mechanical properties and that data is utilized in the frac model. 14
  15. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 15
    Fracture Model Fluid Flow and Leakoff The fluid loss data input into the model. 15
  16. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 16
    Fracture Model Methodology The actual deviation survey for the well that is being modeled, as well as the planned perforations for the well, are entered. A pump schedule is entered into the fracture model. Numerous iterations with…
  17. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 17
    Example Frac Model Results As depicted in the model, the fracture propogates primarily only in the lower stress portion of the rock. The lower stress portion of the reservoir contains the frac High stress barriers exist above…
  18. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 18
    Example Frac Model Results Fracture is contained by lower stress interval and high stress barriers above and below the lower stress interval. Variable stress throughout section, matching lithology changes Greater height growth…
  19. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 19
    Perforation Clusters and Stage Spacing 50 100 Cluster Spacing 250 500 Stage Spacing Not To Scale 19
  20. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 20
    Fluid Selection Utilize core data and lab fluid-rock sensitivity testing to determine fluid additives Maximize slickwater volumes vs. gelled fluid volumes Utilize light gels/crosslink to place higher sand concentrations where…
  21. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 21
    Green Frac Status Chemical Additives Additive Barnett Fayetteville Haynesville Marcellus Eagle Ford Friction Reducer GF* Test GF Test GF Test GF Test GF Test Biocide GF Test GF Test GF Test GF Test GF Test KCl Substitute Eliminated…
  22. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 22
    Proppant Selection 100 mesh sand is typically used in the early portion of the job for enhanced distance and height, diversion, etching, and as a propping agent 40/70 and 40/80 mesh proppants are currently the predominant proppants…
  23. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 23
    Execution 23
  24. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 24
    Hydraulically Fracturing the Shale Typical Hydraulic Fracturing Job: 10-20 Pumps 2-4 Sand Storage Units Blender Hydration Unit Frac Tanks Chemical Storage Truck Data Monitoring Van 20-30 Workers 24
  25. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 25
    Hydraulically Fracturing the Shale 6 layers of protection between the wellbore and groundwater aquifers during hydraulic fracturing operations. Horizontal shale wells are hydraulically fractured at depths that typically…
  26. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 26
    Summary Planning and executing an optimum hydraulic fracture requires a multidisciplinary approach of gathering data, confirming data, modeling the optimum fracture and well performance, and executing a plan based on those models.…
  27. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 27
    Summary Extensive data collection results in hydraulic fracturing jobs that are designed to remain in the proper formation Remaining in the zone of interest maximizes production and minimizes opportunities to negatively impact…
  28. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 28
    Thank You Questions Tim Beard Sr. Engineering Advisor - Completions Chesapeake Energy Corporation 6100 N. Western Avenue Oklahoma City, OK 76118 405-935-8000 AskChesapeakechk.com chk.com NYSE: CHK 28
  29. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 29
    pilot holes are all that are necessary to determine the principle stress directions for a given region within a play development area. Shale wells are typically drilled perpendicular to maximum principle stress (Figure 3). Drilling a well…
  30. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 30
    formation dip allows for this approach. This toe up drilling practice promotes less liquid hold- up or build-up across the lateral. Data Gathering Once the lateral is drilled, the planning of the actual hydraulic fracturing takes into…
  31. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 31
    This equation recognizes that shales are anisotropic. With lower h in organic rich shales and greater Eh, the difference in Hmin between shale and sandstone/limestone decreases and often reverses. This leads to a minimum stress in shales…
  32. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 32
    Figure 4 The model below (Figure 5) also shows a fracture that is contained by a lower stress interval with higher stress intervals above and beneath. It can be seen that the fracture half length is 800 and the fracture height is 250. A…
  33. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 33
    Perforation Clusters and Stage Spacing The number of perforation clusters per stage and the spacing of the clusters are area and shale specific. In the majority of shale plays the perforation clusters are 50-100 apart. This spacing of…
  34. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 34
    fracturing operations. A primary goal was to eliminate any additive that was not absolutely critical to successful completion and operation of our wells. For those deemed critical, materials have been selected that pose lower risk to…
  35. EPA HYDRAULIC FRACTURING WORKSHOP – Chesapeake Energy Corp – slide 35
    Failure to appropriately design a given hydraulic fracture treatment can result in a sub- optimal to poor well stimulation and lower production potential, risking the millions of dollars invested in the well up to the point of…

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