New Albany Shale Gas Research Project 

Kent F. Perry 1

, Iraj Salehi 1, 

1. Gas Technology Institute 

Keywords: 1. Difficult Reserves; 2. Unconventional Reserves; 3. Production 4.Monetization 5. 

Technology 6.New Albany Shale 7.Gas Shales 

Introduction/Background 

Gas Technology Institute (GTI) is engaged in a research and development project aimed at the development 

of techniques and methods for increasing the success ratio and productivity of New Albany shale gas wells 

to a level where the otherwise noncommercial wells may become commercial producers. The efforts are 

funded by Research Partnership to Secure Energy for America (RPSEA) and supported by several 

producing companies targeting the development of the New Albany gas shale. Although the project is aimed 

at the development of New Albany shale gas, results will be applicable to other gas shale formations such as 

the Marcellus, Woodford, and Mancos as well as other low permeability gas bearing formations. 

The New Albany Shale formation occurs in Illinois, Indiana, and Kentucky, but to date gas production has 

been primarily from western Indiana and southwest Kentucky. Figure 1 shows the boundary of the New 

Albany shale within the Illinois Basin and includes the hydrogen index contours for the most promising areas 

in the basin1

. The volumes of in-place and technically recoverable gas in New Albany shale have been 

estimated to be between 86 and 160 trillion cubic feet (tcf) and 1.9 to 19.2 (tcf) respectively1. 

Figure 1 - Hydrogen index map for New Albany shale in the Illinois Basin – USGS Open File 

Reference 2. 

The New Albany shale project is a field-based industry cooperative project with producer involvement and 

support, which combines scientific and technical analyses with field data acquisition, testing, and field 

validation. 

Eight producing companies (Atlas America, Aurora Oil and Gas Corporation, Breitburn Energy, CNXGas, 

Diversified Operating Corp., NGAS, Noble Energy, and Trendwell Energy Corp.) and nine research 

organizations (GTI, Texas A&M University, Bureau of Economic Geology (University of Texas), West Virginia 

University, Amherst College, University of Massachusetts, Pinnacle Technologies, and ResTech) are 

participating in this project. 

 
GTI has assembled a team of highly qualified experts with outstanding background and experience to 

implement the project. A comprehensive integrated project plan for geological, geochemical, reservoir

engineering, and production stimulation studies and a detailed field data acquisition and testing plan

addressing all major issues have been prepared. Figure 2 is a graphical representation of the project 

structure depicting the flow of information and data between various project elements. 

 

Figure 2 - New Albany Gas Shale Project Structure 

Objectives 

As with other shale gas resources, production from the New Albany shale is primarily from natural fractures. 

However, because of extremely low matrix permeability and limited open natural fractures, commercial 

production from the New Albany shale is normally achieved by interconnecting the natural fractures through 

hydraulic fracture stimulations. As such, the primary objectives of this project are to develop techniques and 

methods for identification and characterization of natural fractures and to develop effective fracture

stimulation techniques, leading to commercially acceptable production rate and ultimate recovery. It needs to 

be mentioned that the New Albany shale is underlain by water bearing Devonian formation in some areas 

and this geology adds an additional problem for effective hydraulic fracturing, as the fractures should not be 

allowed to grow into the water bearing zone. 

Development/Methods 

The methodology being applied to the New Albany Shale research effort includes integration of all the 

necessary aspects of developing a shale resource. Projects will be conducted in each of the following

technical areas. 

a. Geological Studies 

Because of the low matrix permeability characteristic of the New Albany shale, natural fractures are 

the main contributors to flow, and production at a commercial rate can only be achieved by proper placement 

of horizontal wells relative to dominant fracture orientation. High permeability areas (sweet spots) occur in 

regions with high fracture intensity. Characterization of the key fracture attributes of orientation, size 

distribution, intensity, and porosity/occlusion patterns is of primary importance. The work includes application 

of new techniques to quantify the spatial arrangement of fractures including potential clusters of large open 

fractures. Key parameters will be assessed through examination of a combination of data types. The most 

important will be cores, vertical and horizontal well image logs, and drilling and production data. Fracture 

orientation, intensity, and spatial distribution information will be obtained from core and image log data. 
Samples have been selected from cores to be made into polished thin sections to examine the mineral fill of 

the fractures. Scanning electron microscope (SEM) imagery will be also used. A suite of fracture attribute 

characterizations for selected areas will be prepared, which may include maps for attributes such as 

orientation, and models for attributes such as mineral fill, size distribution and intensity. At this stage, we will 

identify those attributes with first order control over gas production as a tool for identification of high-potential 

areas of the basin. 

b. Geochemical Analysis 

Hydrocarbon gases contained in the New Albany shale consist of thermogenic gas evolved from 

thermally matured organic material and biogenic methane resulting from bacterial digestion of carbon 

compounds. While the evolution of thermogenic methane normally ceases upon uplift of the formation, 

bacterial activities continue as long as the environment remains amenable to bacterial growth. To arrive at a 

reliable resource estimate and to identify favorable regions within the basin, a comprehensive geochemical 

investigation is being performed. Key activities include field data acquisition, including sampling of gas and 

co-produced water, as well as laboratory tests including gas chromatography and mass spectropy for 

measurement of total organic content. In addition, the microbial population of the New Albany shale will be 

determined from water samples. Planned data analysis also includes microbial analysis consisting of DAPIstained cell counts from individual wells, molecular fingerprinting based on total DNA for community 

structure, and total RNA to identify active community members. Attempts will be made to isolate and culture 

novel methanogens to determine rates of methane production. Also, microbial community structure in the

New Albany shale will be compared with that of the Antrim Shale to assess whether any observed 

differences influence production rates and total gas content in the shales. 

 

c. Formation Evaluation 

Identification of producing zones in New Albany shale wells and determination of reservoir properties from 

well logs is a nontrivial problem. Intrinsic physical properties of shale are such that conventional formation 

evaluation techniques are not applicable, and techniques specific to the New Albany shale must be 

developed. Emphasis will be placed on borehole imaging, coring, and geochemical techniques as well as 

seismic imaging where possible. The activities identified for this task include fracture identification from logs 

such as FMI, CAST and construction of borehole maps of dip projections of fractures within specific 

distances from boreholes. Log analysis work includes the development of advanced methodology for 

calculation of shale porosity, water and bitumen saturations, free gas saturation, and adsorbed gas through 

correlation with core data. 

 

d. Reservoir Engineering 

Pressure buildup tests in horizontal and hydraulically fractured wells can be difficult to interpret 

because these tests involve many unknown parameters and pressure transient tests require very long 

durations (i.e., months). Producers need to have a reliable estimate of production to make decisions 

regarding well completion and to evaluate the financial and operational requirements of the field. This effort 

is devoted to the analysis/interpretation of the available pressure transient test data obtained from the gas 

shales study area as well as new pressure transient data. Production data analysis is focused on production 

analysis for horizontal and hydraulically fractured wells. In addition, the project plans to develop new 

pressure transient models for horizontal and fractured wells. 

e. Fracture Modeling 

Commercial production from tight sands and shale formations invariably involves hydraulic fracturing 

of the formation. Although several hydraulic fracturing simulators have been developed during the last twenty 

years, none is capable of predicting fracture growth in the presence of natural fractures. In particular, it is 

necessary to use a model capable of dealing with injection-induced fracture propagation near natural 

discontinuities such as joints, faults, and bedding planes. The work in this area is focused on the 

development of knowledge and analytic models for such fractures. 

f. Fracture Design and Fracture Diagnostics 

Design and quality control of fracture stimulations and fracture diagnostic surveys using tiltmeter and 

microseismic fracture imaging for independent verification of fracture design as well as monitoring and 

control of fracture growth is absolutely critical. Integration of stimulation, production data, and reservoir 

engineering technologies will be performed to successfully evaluate and optimize hydraulic fracturing of the 

reservoirs. Current completion/stimulation practices will be evaluated in the New Albany Shale and field 

experiments will be conducted to measure hydraulic fracture geometry and evaluate stimulation 

effectiveness. Integration of the results of field experiments with geologic, geophysical, completion and 

production data to optimize development of the New Albany shale will be conducted. 
g. Best Practice Analysis 

The intent of best practice analysis is to compile drilling, completion, fracture stimulation, and production and 

create a comprehensive database that reflects the range of practices in the New Albany shale. Once the

database is populated with data from a statistically significant number of wells, a series of objective 

numerical analyses based on fuzzy logic and artificial intelligence techniques will be carried out to determine 

the optimal combination of operational parameters that result in the most favorable production instances. 

Upon completion of these analyses results will be verified with hard data from the field and augment the data 

driven results with engineering driven conclusions to arrive at field-verified best practices for drilling and 

completion of New Albany shale wells. 

h. Environmental and Water Management Studies 

The shift of New Albany shale gas from an emerging to an existing resource category entails drilling 

and completion of thousands of wells, establishment of gathering systems, processing plants, compressor 

stations, and so forth. Subsequent to determination of substantial producible reserve and upon identification 

of technically effective and economically optimal development technologies, determination of environmental 

impacts of these operations and facilities in terms of water requirement and waste management is an 

imperative. In addition, water resources to meet the needs of the upstream and downstream operations must 

be identified and a prudent water management scheme be designed. 

 

i. Field Data Acquisition and Verification, Coordination and Technology Transfer 

The prerequisite of success for a field-based project is the acquisition of reliable data and timely 

testing of results so that dependable data are provided for analytic work and designs. Procedures are 

checked in the field and modified based on test results. The New Albany Shale project includes extensive 

field data acquisition and testing including sampling, coring, logging, hydraulic fracturing, fracture

diagnostics, and production logging. Specifically, two production logging, two hydraulic fracturing 

experiments, and four fracture diagnostic surveys are planned. In a multifaceted field-based research,

prudent coordination, and open communication are of essence. Preparation of clear and comprehensive 

reports will be used to extend the technology beyond the limited individuals and companies, expanding the 

information to other applicable regions. In the New Albany shale project, all independent research 

organizations will prepare a stand-alone detailed report describing the scientific bases and results from their 

work. The work of the various contributors will be used to develop an integrated analysis of the factors 

controlling economic production in the New Albany Shale, which will be captured in Best Practices 

recommendations. 

Results 

Experimental results established thus far as part of the ongoing research experiment are reported in the 

following sections. 

Geologic Study Results3

The primary geologic focus is on description and characterization of natural fractures in the New Albany 

Shale. Outcrops of New Albany Shale in Kentucky and Indiana were visited and sampled. In addition, several 

cores were viewed and sampled for further investigations. Because production from the New Albany Shale 

is primarily from natural fractures, knowledge of the orientation of dominant fracture system is critical for 

placement of horizontal wells such that these wells intersect the maximum number of fractures 

One of the best exposures of the regional joint pattern occurs on the Indiana bank of the Ohio River at New 

Albany (Fig. 3). The dominant joint set trends ENE, individual fractures extending several hundreds of feet. A 

secondary set trend almost orthogonal to the dominant set, but abutting relationships suggest they are

broadly coeval. Both joint sets are steeply dipping and have no mineralization on the joint. 
Figure 3 - Map Illustrating New Albany Shale Outcrop Area3

Barren joints were not observed in the cores that were examined. The barren fractures in core that were 

observed are interpreted as being induced fractures on the basis of petal centerline geometries, and the 

observation that they did not have the oxide staining that is ubiquitous in outcrop. It is important to establish 

the significance of these fractures relative to both biogenic and thermogenic parts of the play. 

Many other fractures in core and outcrop were observed and are of interest and merit further study. These 

are described briefly below, along with a statement of how they may or may not be relevant for gas 

production. 

Compacted fibrous quartz-dolomite-bitumen veins were observed in outcrops. The veins are very wide 

relative to their height, and commonly contain bitumen in vuggy openings, termed geodes by other workers. 

These large veins were not observed in the cores. However, in the outcrops and cores we did observe 

smaller fractures, confined to pyrite-rich layers that also show compaction structures, and that provide 

support structures for the bedding and compaction fabric, which is deflected down on either side of the 

fracture (Fig. 4). It is not known at this stage if these small fractures are related in any way to the large 

fractures. 
Figure 4 - Small, Early, Compacted Veins, Fill Likely Dolomite; and (picture to right) Example from 

New Albany Shale Core at 2,804 ft. Height of Fractures Approximately 3 cm. Reference 3. 

It is unlikely that these large veins will affect production as they seem to be mostly confined to the Blocher 

Member, which is well below the usually targeted Clegg Creek Member. However, our observations so far 

are restricted to a very few outcrops. Vertical cores may not sample them as they are spaced several meters 

apart. They are worth further study, however, because they record fluid conditions at an early point in the 

burial of the New Albany Shale. The smaller veins are apparently more widespread, but because they are

confined to pyrite layers may not affect production significantly. However, arrays of small veins can act as 

mechanical discontinuities for hydraulic fractures causing the hydraulic fractures to split or be deflected. 

In the underlying limestone and the very base of the Blocher Member there is a second set of filled fractures. 

These are networks or en echelon arrays and are calcite filled. These are not compacted and areinterpreted 

to be later than the dolomite-quartz filled veins described above. 

In the cores several examples of steep, sealed, or partly sealed fractures were observed. Some have 

smeared cement fill and have been interpreted as faults. These sets are likely to be important either for 

enhancing permeability or as influences over hydraulic fracture propagation. 

Because of the difference in depth of the biogenic and thermogenic plays we think that the barren joints are 

of possible importance for the biogenic play but are unlikely to play a role in the thermogenic play. The 

fractures observed in core could all potentially play a role in either directly influencing the permeability or 

affecting hydraulic fracture propagation. 

Well Drilling and Completion4

Multiple well drilling and completion geometries have been investigated within the New Albany Shale 

including the following list of geometries: 

• Open hole lateral wells with cased sump 

o Vertical pilot holes 

o Deviated pilot holes 

• Open hole lateral wells with no sump 

• Intersection of vertical well with open hole lateral 

o Intersection occurs in early portion of lateral 

o Intersection occurs at toe of lateral 

• Multiple open hole laterals 

• Stacked 

• Dual opposing 

• V-shaped 

• Pitchfork 

Horizontal and high angle lateral wells are developing as the preferred geometry as opposed to vertical holes 

although vertical wells are still being considered. Figure 5 illustrates a open hole lateral well geometry. 
Figure 5 – Toe-up Open Hole Lateral Well Completion Geometry (From John Hunter, Aurora Oil and 

Gas4

The concept is to drill a long lateral section of the New Albany shale with the end (toe) of the wellbore higher 

than the wellbore portion (heel) near the vertical section. This allows any water produced in the open hole 

section to flow downhill to the heel section where it can be pumped out of the well by a downhole pump

placed in the cased section of the wellbore. 

Well geometries of this type can be fractured or produced without fracture stimulation treatments. While 

stimulation is the preferred approach some areas of the New Albany are underlain by a water wet dolomite 

formation. If fracture treatments grow downward to this section the well economics can be negatively 

impacted by the subsequent water production. 

In areas where the water wet dolomite is not an issue the preferred completion procedure usually includes 

hydraulic stimulation. A number of issues need to be considered for proper well completion design including 

the following items: 

• Cost containment 

o Necessary for acceptable economics 

• Open hole lateral(s) with no stimulation required 

o Prior local knowledge of reservoir needed 

o Minimize reservoir damage while drilling 

• Assume that stimulation will be required? 

o High volume acid treatment to dissolve calcite 

o Fracture stimulation to connect with natural fractures 

o Open hole vs. cased hole 

• Recover gas reserves from all organic members? 

o Most laterals have targeted only the Clegg Creek member 

o Blocher member is generally separated by impermeable Selmier member 

• Optimize drilling geometry for pump placement 

o Necessary for water removal and reduction of back pressure 
Hydraulic Fracturing and Hydraulic Fracture Design5

Figure – 6 Possible Hydraulic Fracture Configurations in the New Albany Shale5

The research efforts on hydraulic fracturing are focusing on the potential to model a New Albany Shale

hydraulic fracture treatment with a 3-D fracture simulator. Results to date indicate this is a difficult task to 

accomplish. Figure 6 is a plan view of two horizontal wells each being fracture stimulated at four points. On 

this figure, the colored dots denote the location microseismic events associated with hydraulic fracturing. 

Note that a simple bi-wing induced fracture (left side Figure 6) may be an indication of a lack of natural 

fracturing. This can be a real problem in a marginal play in that a substantially reduced surface area is 

exposed to the reservoir creating challenging well economics. 

If the natural fracture network consists of multiple parallel and orthogonal induced fractures then the likely 

hydraulic fracture development is most likely to resemble the geometry depicted on the right hand side of 

Figure 6. It should be noted that this case is beyond the capability of most hydraulic fracture simulators to 

adequately model. This creates a potential conundrum that only uneconomic wells can be adequately 

modeled by current simulators. 

 

Experience thus far in the New Albany Shale with hydraulic fracturing has yielded a cross section of 

experiences with varying results. Large waterfracs in a shallow, normally pressured shale may not be viable 

due to the inability to adequately recover the fracturing fluids. Substantial experimentation with 70 to 85 

quality foams has indicated that large foam fracture treatments may be acceptable in terms of preventing 

water blockage, but generally have unacceptable viscosity. Foam viscosity can be 80 to 100 times that of 

water and 4,000 to 5,000 times that of nitrogen. Low viscosity promotes network complexity while high 

viscosity promotes fracture simplicity. 

Straight nitrogen is utilized in the shallower New Albany Shale wells almost exclusively. Some limited

experimentation is taking place with high quality (+95 quality) foam systems as well as misting fluids using 

propane and other mechanisms to reduce water and lower viscosity. A major paradigm shift may be 

necessary for hydraulic fracture stimulations in order to make the New Albany Shale a first class shale 

resource 

Production Methods4

The New Albany Shale in many regions produces some water which needs to be removed from the wellbore 

to allow gas to flow unimpeded. Also, in the areas where hydraulic fracture treatments are conducted there is 

a considerable volume of treatment water that needs to be removed from the wellbore. The Initial pump of 

choice for some operators is the progressive cavity pump (Figure 7 – for surface configuration of progressive 

cavity pump) which is well suited for high water volumes. It is however problematic when installed in curved 

wellbores. 
Figure 7–Surface Configuration for Progressive Cavity Pump – From Aurora Oil and Gas4

Electrical Submersible Pumps (ESP) are utilized in some areas where well depths exceed the depth at which 

water well pumps can be utilized. These pumps are more expensive but required due to the depth from 

which pumping must take place. Heat generated by electrical submersible pumps (ESP) may result in rapid 

calcium carbonate scale buildup which is another production characteristic that must be considered. 

Gas lift is another water handling procedure being tested by some operators. At least two operators have 

employed chamber-lift method in horizontal wells with mixed success 

Beam pumps (Figure 8) are evolving into a preferred production method for handling water production in the 

New Albany shale. Operators need to be prepared for corrosion and scale issues that impact tubing and 

rods. 
Figure 8 - Beam Pump Installed on Flood Plain in New Albany Shale Region, Illinois Basin4

Gas Production Infrastructure4

Gas production infrastructure needs for producing New Albany Shale gas is strongly related to the low 

volume low pressure production characteristics encountered. Specifically, the objective is to minimize back 

pressure in order to enable low reservoir pressures to maximize gas desorption. This requires both low

pressure gathering systems and low pressure production facilities be designed and installed. Very often 

large diameter polyethylene pipe is used for both gas production lines and lines for moving water to disposal 

facilities (Figure 9). 

Figure 9 - New Albany Shale Gas and Water Lines Prior to Burial4

Compressor stations are located both at satellite locations and central facilities. Satellite locations are the 

first stage of compression and are usually electric modular screw compressors providing the first stage of 

compression. These electric compressors provide for lower capital cost, lower maintenance and are 

environmentally preferred. Reciprocating compressors provide 3 stages of compression to attain pipeline 

pressure and are normally located at a central production facility and can be either electric or gas driven. 
The advantages of this low pressure system design provide a significant reduction in capital expenditures. 

Increased production rates are realized due to reduced back pressure on the wells and the commercial life of 

wells is extended due to reduced costs. Facility capacities can be optimized over the life of the wells as 

development takes place based on economics and technical factors. 

New Albany Shale Production and Reserves4

The peak gas production volumes for most New Albany Shale wells are usually attained in the first 30 days 

of well production. This is followed by a somewhat immediate and significant production decline followed by 

a shallow hyperbolic decline. Gas reserves are long-lived with production occurring up to 50 years. Figure 

10 illustrates expected production from a New Albany Shale horizontal well with a 2500 ft. lateral section. 

Initial gas production rates are on the order of 275 mcf/day declining to 100 mcf/day in the first 24 months of 

production. Initial water rates are on the order of 200 bbls per day declining to 70 bbls per day after 24 

months. Cumulative gas production estimated after 40 years is just over 1 billion cubic feet of gas. 

Figure 10 – New Albany Shale Gas Production Profile for a 2500 ft. Horizontal Well4 

Well costs for a New Albany Shale horizontal well with hydraulic fracture stimulation can exceed one million 

U.S. dollars. In addition to this capital investment are operating expenses over a long time period (40 

Years). Operating expenses can include water lifting, transport and disposal, gas compression, well 

workovers to maintain pumps, gas processing expenses to remove CO2 and nitrogen and road and site 

maintenance. Other expenses include royalties and severance taxes. 

Overall economics surrounding the current New Albany Shale are very challenging at today’s gas prices. 

Summary/Conclusions/Perspectives 

The New Albany Shale contains vast reserves of natural gas, but technological challenges have posed a 

hindrance to economic development. A number of active horizontal drilling programs are currently underway 

to extract biogenic gas. 

The naturally fractured rock supporting biogenic gas generation in the New Albany Shale is not particularly 

similar to other well-publicized shale plays. Care should be taken when transferring outside technologies to 

the New Albany Shale. A number of elements need to be collectively considered for development of the 

New Albany Shale resource as well as other shales. Figure 11 illustrates eight important areas that should 

be investigated for every play6

. The importance of each of these elements can be different for each shale 
play and can contribute to the success of the play in different ways and varying quantitative values. Each 

should be carefully examined. 

Figure 11 – Elements to be Considered for Development of a Successful Gas Shale Play6

Well drilling and completion design is then based on the attributes of the play as determined by the 

geosciences topics investigated early in the cycle life. Each shale play can differ significantly and with the 

New Albany Shale there can be significant differences from one portion of the Illinois Geologic Basin to 

another part of the basin. Carefully consideration of all elements for success and using caution when

transferring a technology that has worked in another region without careful field testing will be of ongoing 

importance. 

New research continues to investigate the most effective well completion design and practices and will need 

to continue to unlock this vast gas resource. 

Acknowledgements 

Funding for this project is provided by Research Partnership to Secure Energy for America (RPSEA) through 

the Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Research and 

Development Program authorized by the Energy Policy Act (EPAct) of 2005. RPSEA is a non-profit 

corporation established to help meet the nation's growing need for hydrocarbon resources produced from

reservoirs in America; formed by a consortium of premier U.S. energy research universities, industry and 

independent research organizations. 

References 

[1] BEG/PTTC presentation, November 2006 

[2] USGS Open-File Report 03-07, Higley et al, “The New Albany shale Petroleum System, Illinois 

Basin” 

[3] Bureau of Economic Geology – Gas Technology Institute Quarterly Research Report; August to 

October 2008. 

[4] Presentation by John Hunter, Aurora Oil and Gas, “The New Albany Shale from an Antrim Shale 

Operator’s Perspective”, RPSEA Mid-Continent Gas Shales Forum, June 4, 2009, Chicago, Illinois 

[5] Presentation by Douglas Walser, Pinnacle Technologies, “Fracture Design & Simplistic 3-D 

Parametric Modeling New Albany Shale Project” RPSEA Mid-Continent Gas Shales Forum, 

June 4, 2009, Chicago, Illinois, 

[6] Presentation by Dr. John Curtis, Colorado School of Mines/Potential Gas Agency, “Shale Gas: 

From Onerous Stepchild to Premier Resource”, RPSEA Mid-Continent Gas Shales Forum, June 4, 

2009, Chicago, Illinois