ATM PETE 689 UBD ATM Lesson 12 Selecting an Appropriate Technique Read: UDM Chapter 4 pages 4.1-4.54 ATM ATM ATM PETE 689 UBD ATM Selecting an Appropriate Technique • Potential Applications and Candidate Technique • Technical Feasibility • Economic Analysis ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Required data for UBO Candidate Identification: • • • • Pore pressure/gradient plots Actual reservoir pore pressure ROP records Production rate or reservoir characteristics to calculate/estimate production rate • Core analysis ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Required data for UBO Candidate Identification: • • • • • ATM Formation fluid types Formation integrity test data Water/chemical sensitivity Lost circulation information Fracture pressure/gradient plot Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Required data for UBO Candidate Identification: • • • • ATM Sour/Corrosive gas data Location topography/actual location Well logs from area wells Triaxial stress test data on any formation samples Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Poor candidates for UBD • High permeability coupled with high pore pressure • Unknown reservoir pressure • Discontinuous UBO likely (numerous trips, connections, surveys) • High production rates possible at low drawdown ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Poor candidates for UBD • Weak rock formations prone to wellbore collapse at high drawdown • Steeply dipping/fractured formation in tectonically active areas • Thick, unstable coal beds ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Poor candidates for UBD • Young, geo-pressure shale • H2S bearing formations • Multiple reservoirs open with different pressures • Isolated locations with poor supplies • Formation with a high likelihood of corrosion ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Good candidates for UBD • Pressure depleted formations • Areas prone to differential pressure sticking • Hard rock (dense, low permeability, low porosity) • “Crooked-hole” country and steeply dipping formations ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Good candidates for UBD • Lost-returns zones • Re-entries and workovers (especially pressure depleted zones) • Zones prone to formation damage • Areas with limited availability of water ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Good candidates for UBD • • • • ATM Fractured formations Vugular formations High permeability formations Highly variable formations Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Good candidates for UBD • Once the optimum candidate has been identified, the appropriate technique must be selected, based on much of the same data required to pick the candidate. ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Candidate Decision Tree Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Candidate Decision Tree Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Candidate Decision Tree Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Candidate Decision Tree Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM These decision trees can be found on the IADC website (www.iadc.org). Click on Committees Click on Underbalanced Drilling committee Click on decision tree. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Potential Applications and Candidate Technique ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Low ROP through hard rock • Dry air • Mist, if there is a slight water inflow • Foam, if there is heavy water inflow, if the borehole wall is prone to erosion, or if there is a large hole diameter. • Nitrogen or natural gas, if the well is producing wet gas and it is a high angle or horizontal hole. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Lost circulation through the overburden • Aerated mud, if the ROP is high (rock strength low or moderate) of if watersensitive shales are present. • Foam is possible if wellbore instability is not a problem ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Differential sticking through the overburden • Nitrified mud, if gas production is likely, especially if a closed system is to be used. • Aerated mud, if gas production is unlikely and an open surface system is to be used. • Foam is possible if the pore pressure is very low and if the formations are very hard ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Formation damage through a soft/medium-depleted reservoir • Nitrified brine or crude – string injection, if the pore pressure is very low – parasite injection, if the pore pressure is high enough and a deviated/horizontal hole needs conventional MWD and/or mud motor – Temporary casing injection, if the pore pressure is intermediate and a high gas rate in needed. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Formation damage through a soft/medium-depleted reservoir • Nitrified brine or crude, con’t – String and temporary casing injection, if the pore pressure is very low and/or if very high gas rates • Foam, if the pore pressure is very low and an open surface system is acceptable ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Formation damage through a normally pressured reservoir • Flowdrill (use a closed surface system if sour gas is possible) ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Lost circulation/formation damage through a normally pressured, fractured reservoir • Flowdrill (use an atmospheric system if no sour gas is possible) ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Formation damage through an overpressured reservoir. • Snub drill (use a closed surface system is sour gas is possible) ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Technical Feasibility • In evaluating the feasibility of a technique, a controlling factor is the range of anticipated borehole pressures which will be required for each zone to be drilled. • The upper limit is formation pore pressure • Lower limit will be determined by wellbore stability. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Technical Feasibility • First step is to determine the anticipated pressures. • Step two is to determine which methods are functional within the anticipated pressure window. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Technical Feasibility • Other considerations are: – – – – ATM Will there be sloughing shales? Are aqueous fluids inappropriate? Will water producing horizons be penetrated? Will multiple, permeable zones, with dramatically different pore pressures, be encountered? Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Technical Feasibility • Other considerations con’t: – What is the potential for chemical formation damage, due to fluid/fluid or fluid/formation interaction and is this an overwhelming problem, regardless of what wellbore pressure is used? – Is there a potential for sour gas production? ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Technical Feasibility • Other considerations con’t: – Are there features of the well geometry which dictate specific underbalanced protocols? – What is the local availability of suitable equipment and consumables (including liquids and gases for the drilling fluids)? ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • Pore pressure – the wellbore pressure must be maintained below the formation pressure in all open hole sections. – If there is no formation fluid inflow, borehole pressures with dry gas, mist, foam or pure liquid will be lower when not circulating. – With fluid influx, borehole pressure can increase or decrease when not circulating. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • Pore pressure – Best practice is to use the: – lower bounds for pore pressure prediction when choosing a technique – while surface equipment capacity and drilling specifics should be based on an upper bound. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • Wellbore stability provides the lower limit to the allowable borehole pressures. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • Hydrocarbon production rates can sometimes set the lower bound, depending upon the surface equipment available. • Formation damage may effect the tolerable drawdown due to fines mobilization in the producing formation. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • Backpressure from a choke can sometimes be used to protect the surface equipment from excess production rates or pressures. • This also increases the BHP. • This is limited by the pressure rating of the equipment and formation upstream of the choke. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • When using compressible fluids, it is usually more cost effective to switch to a higher density fluid than to choke back the well. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • Applying back pressure will: – increase the gas injection pressure. – Increase the gas injection rate required for acceptable hole cleaning. – These both will increase the cost of the gas supply. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • With a gasified liquid, BHP can usually be increased by reducing the gas injection rate. • When drilling with foam, back pressure may be necessary to maintain foam quality. • Holding back pressure is most beneficial when drilling with liquids. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Borehole pressure limits • Once the maximum tolerable surface pressure is reached, production rate can only be further reduced by increasing downhole pressure by increasing the effective density of the drilling fluid. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Implications of Drilling Technique Selection • • • • ATM Pore pressure gradients vary with depth Formation strength varies with depth In-situ stresses vary with depth The tolerable stresses, are affected by by the inclination and orientation of deviated, extended reach and horizontal wells. Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Implications of Drilling Technique Selection • Production rates depend on the length of the reservoir that is open to the wellbore and on the underbalanced pressure ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Implications of Drilling Technique Selection • Once the borehole pressure limits, corresponding to wellbore instability and excessive production rate, have been determined , a first pass evaluation of the different drilling techniques can be performed. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD Example 1 ATM Shallow, normally pressured well. No wellbore stability problems Surface equipment can handle the anticipated AOF. Minimal water inflow is expected. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD Example 2 ATM Depleted sandstone from 3000 to 4000 ft with a pore pressure gradient of 5 ppg. Pore pressure above the sand is 8 ppg. Lost circulation and sticking is a problem with mud. No instability problems anticipated if borehole pressure is > 2 ppg. Production rate is low. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD Example 3 ATM Pore pressure = 8 ppg Shale from 6-8000’ requires a minimum wellbore pressure of 7 ppg Target zone is 8-9000’ Reservoir itself is competent unless borehole pressure < 5 ppg Expect high flow rates w/ minimum drawdown = 500 psi Pore pressure at 9000’ = 3744 psi, min BHP = 3244 psi or 6.93 ppg ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD Example 4 ATM Maximum drawdown = 100 psi. equivalent to 7.79 ppg. Diesel or crude gives a pressure lower than this. Plain water is too dense. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Example 5 Reservoir is depleted to 6.5 ppg. Maximum drawdown is 500 psi. The tolerable range for ECD through the reservoir would be 5.4-6.5 ppg. A gasified liquid would be required. This would not supply sufficient support for the shale above. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Evaluating Highly Productive Formations • Require detailed numerical analyses of circulating pressures. • Formation fluid influx interacts with drilling fluids which effect borehole pressure effecting influx rate. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Evaluating Highly Productive Formations • When circulation stops, the influx lifts mud from wellbore. • This changes the borehole pressure and the production rate. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Evaluating Highly Productive Formations • Choking back the well returns further complicates the calculation of borehole pressures and production rate. • If the fluid is incompressible, backpressure changes BHP by the amount of pressure applied. • If the fluid is compressible, backpressure changes density, velocity, and BHP ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Evaluating Highly Productive Formations • Uncertainty of input parameters in simulators leads to uncertainty in output. • In many cases these uncertainties can make simulations in technique selection unjustified. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Water production • Production of small quantities of water makes dry gas drilling difficult. • If offset wells have a history of water production, dry gas drilling below the water zone is probably impractical. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Water production • When misting, higher gas rates are required to prevent slug flow. • Slug flow can damage the borehole and surface equipment. • Higher injection rates and the increased density in the annulus may require boosters on the compressors. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Water production • Large water influxes may require foams. • High disposal costs can sometimes make mist drilling impractical. • Higher density foams can decrease water influx, however the increased volume of make-up water may make disposal still impractical. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Water production • If high water influx makes gas and foams impractical, aerated mud or low density liquids may be required. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Multiple permeable zones • If all zones are to be drilled UB, the circulating pressure must satisfy the borehole pressure requirements for all open permeable zones, simultaneously. • Several factors can prevent this from happening. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Factors preventing UB in all zones • The ECD of compressible fluids increases with increasing depth. • In vertical wells, it is possible for a permeable zone close to the bit to be overbalanced when a permeable zone higher up hole, with the same pore pressure gradient, is UB ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Factors preventing UB in all zones • This effect is more pronounced in high angle and horizontal wells. • AFP increases along the borehole even if HSP remains relatively constant along the borehole. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Factors preventing UB in all zones • Changes in pore pressure gradient along the wellbore may be present. • This can be due to abnormally pressured formations, or partially depleted formations. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Multiple permeable zones • The major concern with multiple permeable zones is the potential for underground blowouts. • Extreme care must be taken to prevent this from happening when pressure changes occur such as tripping, or connections. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM If cross flows cannot be tolerated: • Use a different drilling technique that allows all permeable zones to remain UB, if possible • Kill the well before suspending circulation. • Change the casing scheme so that the upper formations are isolated behind pipe before penetrating the producing zone. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Sour gas • There must be no possibility of releasing hydrogen sulfide into the atmosphere while the well is being drilled or completed. • If any is produced during drilling it must be disposed of in a suitable flare. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Sour gas • H2S can become entrained in any liquid in the wellbore, and must be completely removed from the fluid and flared before any of the liquids are returned to any open surface pits. • The separation process should be completed in a closed vessel. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Sour gas • Sour gas can become entrained in foams. • The foam must be completely broken prior to separation. • Unless effective defoaming can be guaranteed foams cannot be used in closed systems, and should not be used in the presence of Hydrogen Sulfide. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Drilling/Reservoir fluid incompatibility • It can be difficult to prevent temporary overbalance. • Drilling fluids should be tested for compatibility with formation fluids. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Hole geometry • A compressible fluid will have a greater ECD in deep wells than in shallow wells. • Annular gas injection only reduces the density of the fluids above the injection point. In deep wells drillstring injection may be required. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Hole geometry • Increasing ECD with depth may make it impossible to maintain the proper foam quality in deep wells. Backpressure may be required, increasing the gas supply needed. • Increasing hole size makes hole cleaning more difficult. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Hole geometry • Large hole sizes may require larger diameter surface equipment. Larger surface diverter equipment may not have the pressure rating of smaller resulting in lower back pressure capabilities. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Naturally fractured formations • In fractured formations, high viscosity drilling fluids, circulating at low rates may prevent hole enlargement and still maintain UB. • Stiff foams may be the preferred candidate. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Logistics • Water supplies may be limited in some areas, and a technique that limits water use may be chosen. • Availability and access to the gaseous phase can influence the choice of gas used. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Logistics • Offshore locations generally do not have the same space available as land locations. • Equipment used on surface locations may not be suitable for offshore locations. • Modular closed systems must be used offshore. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Logistics • The high production rates necessary for offshore wells to be economically viable may make them unlikely candidates for UBD. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Economic Analysis • Rules of thumb – UBO increases costs 1.25 - 2.0 times the cost per day over conventional – but may be accomplished in 1/4 to 1/10 of the time. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Economic Analysis • Rules of thumb – In permeable rock ROP may be increased from 30% to 300% as well goes from overbalanced to balanced – Below balance ROP will increase another 1020% – In impermeable rock, ROP will increase 100200% ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM Steps for Economic Analysis 1. Determine the expected penetration rate or drilling time of each candidate holeinterval, if the operation were to be carried out conventionally 2. Estimate the daily cost of conventional drilling operations for each prospective hole-interval based on empirical data. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Steps for Economic Analysis 3. Multiply the conventional daily cost by an underbalanced factor (1.3-2.0, depending on difficulty of the operation) to get the expected daily cost of UBO 4. Apply the expected underbalanced operating cost by the anticipated underbalanced drilling ROP to get the total cost for each interval. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Factors that Effect the Economics of Underbalanced Drilling • • • • ATM Penetration rate Bit selection Bit weight and rotary speed Mud weight Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Completions and Stimulation • UBO does not save completion time • but, if you are going to drill UB to prevent formation damage, you better complete UB • Mitigation of formation damage in wells that will need to be hydraulically fractured (except naturally fractured) may be a poor and unnecessary economic decision. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Formation Evaluation • Real time formation evaluation possible • UB coring possible ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Environmental Savings • Closed systems make smaller reserve pits and locations possible, but there is additional costs of rental of the systems. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Fluid Type • The bottom line controlling factor may be the specific fluid system adopted. Each fluid type has technical and economic advantages and limitations. ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Cost Comparisons - Case 1 Nitrogen vs. Pipeline Gas Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM Cost Comparisons - Case 1 ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Cost Comparisons - Case 2 Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM Economic Analysis • On the basis of available technology, select the potential drilling systems to be evaluated. • Tabulate the tangible and intangible costs for each system • Rely on previous history and recognize the inevitability of statistical variation ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Economic Analysis • Perform basic cost/ft drilling evaluations. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Assess Drilling Costs ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM Accelerated Production • Earlier production can improve the NPV 1 t NPV 1 DR t 1 DR NPV Net Present Value (discounte d value of asset) DR Discount rate t discount t ime, years ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Improved Production/Reserves • The absolute and relative increase in production should be calculated, or estimated. • Productivity Index, PI should be calculated based on whether the well is vertical, horizontal, oil, gas, radial, transient flow, or pseudo-steady state flow (see page 4.48) ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Improved Production/Reserves • Well Inflow Quality Indicator, WIQI, is the ratio of the PI for an impaired to that for an undamaged well. ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Improved Production/Reserves ATM Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Improved Production/Reserves ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Improved Production/Reserves Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Example • • • • • • • • • • • • ATM ATM Oil well Revenue Interest = R = 0.375 Working Interest = WI = 0.5 Gross Income (per net bbl) Crude Price = $20.00/bbl Less Transportation = $1.00/bbl Production taxes = $6.00/bbl Leaves Gross Income (per net bbl) = $13.00/bbl Estimated Op. Expense = $5000/well month Number of wells =5 Harold Vance Department of Petroleum Engineering ATM ATM PETE 689 UBD ATM Case 1 • All five wells drilled in the first year with a conventional mud system. ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM Case 2 • Same as Case 1 with the exception that there is higher production to reduced formation damage from UBD. ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM Case 3 • Same as case 2 with the exception that development costs for the five wells are $150,000 less, due to improved drilling while underbalanced. ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD ATM Summary of Examples ATM Harold Vance Department of Petroleum Engineering ATM ATM ATM PETE 689 UBD Summary of Examples Harold Vance Department of Petroleum Engineering ATM ATM