- 

# Identifying and Remediating High Water Production Problems in Basin-Centered Formations

Final Report 

### Reporting period: April 1, 2002 to September 30, 2005

Prepared by: 

### R. L. Billingsley

December 2005 

### DOE Award No. DE-FC26-02NT41437

Submitting Organization: 

### Advanced Resources International, Inc. 4501 Fairfax Drive, Suite 910 Arlington, Virginia 22203-1661 Significant Subcontractors Maria Wood Henry Henry GeoConsulting Services, Inc. 863 W. Geddes Ave. Littleton, CO 80120 Keith Jagiello, Ph.D. Petro Data Integration, LLC 8770 West Eden Drive Littleton CO 80127 Leta K. Smith, Ph.D. Consultant 10154 Whiteside Lane Houston, TX 77043

## Disclaimer This report was prepared as an acco unt of wo rk sponsored b yan agency of the United States Governm e nt. Neither the United States Governm e nt nor any agency thereof, nor any of their em ployees, m a kes any warranty, express or im plied, or assum e s any legal liab ility or responsibilityfor the accuracy, com p leteness, o r u s efulness of any inform ation, apparatus, product, or process disc losed, or represents th at its use would not infringe privately owned rights. Reference herein to any specific comm ercial product, process, or service by trade nam e , trad em ark, m a nufacturer, or otherwise does not necessarily constitute or im ply its endorsem e nt, recomm endat i on, or favoring by the United States Governm e nt or any agency th ereof. The views and opinions of authors expressed herein do not necessarily state or re flect those of the United States Governm e nt or any agency thereof.

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## Abstract Through geoc hem i cal analy ses of produced wate rs, pet r ophy s ics, and reservoir sim u l a tion we developed concepts and approaches for mitiga ting unwanted water producti on i ntight gas reservoirs an d for increasing recover y of gas resources presently considered nonc ommer c ial. Only new com p letion research (outside the scope of this study ) wil l validate our h y pothesis. The first task was assembling and i n terpreting a robus t regional dat abase of historical producedwater analy s es to address the producti on of excessive water in basi n-centered tight gas fields in the Greater G r een (GGR B ) and Wind River basins (WRB), Wy oming. The database is supplemented with a sam p l i ng pr ogram i ncurrent l y active areas. Int e rpretation of the regional water che m ist ry data indicates m o st produced waters reflect their original deposit ional environm ents and helps ide n tify local an omalies rel a ted to basement faulting. After the ass e m bly and evaluation phases of this proje c t, we generat e d a working m odel of tight formation reservoir develo pment , based on the regional nature and occurrence o f

the formation waters. Through an i n tegr ative approach to num e rou s existing reservoir concepts, we sy nthe sized a generalized developm ent scheme organized around r eservoir confining stress cycles. This single overarching sche m e acco mm odat es a sp ectru m of outco m es fro m t h e GGRB an d Wind River basins. Burial and tectonic processes destroy much of the de positional intergranular fabric of the reservoir, generate gas, andcreate a rockvolum e marked by extremely low permeabilities to gas and fluids. Stress rel ease associated wit h up lift regenerates r eservo ir permeabilit y through th e developm ent of a penetrative grain boundi ng natural fracture fabric . Reservoir mineral co m position, magnitude of the stress cy cle and local tectonics govern the degree, scale and exact mechanism of perm eabilit y developm ent. We applied the reservoir working m odel to an area of perceived anomalous water production. Detailed w a te r analy ses, seis m ic mapping, petrophy sics, and reserv o ir sim u latio n indicate a lithologic and structural com ponent to excessive in si tu water per m eability . Higher for m ation water salinity was found to be a good pay indi cator. T hus spontane ous potential (SP) and resistivity ratio approaches co m b ined with accurate for m ation water resistivity (Rw) information may be underutilized tools. Reservoir si m u l a ti on indicates significant infill potential in the de m onstration area. Macro natural fracture per m eabil ity was deter m ined to be a key ele m ent affecting bothgas and water producti on. Using the reservoir charact erization resu lts, we ge nerated strategies for avoidance and m itigation of unwanted water production in the field. These st rat e gies include (1) m o re selective perforation b y im proved pay determ ination, (2 ) using seism ic attributes to avoi d small-sc ale fault zones, and (3) utilizing detailed subsurface infor m at ion to de liberately target optim ally located sm all scal e fault zones high in the rese rvoir gas column . Ta pping into the existi ng natural fra cture network represents opportunity for generating dynam i c value. Recognizing th e crucial role of stress rel ease in the natural generati on of permeability withi n tight reservoirs raises the possibility of manmade gen eration of per m eability thr ough local confining stress release. To the extent that relative per m eabilities pr event gas and water m ovement in the deep subsurface a redu ction in stress around a wellbore has the potential to increase the r e lative per m eability condi ti ons, allowi ng gas to flow. For this reason, future research into cavitation com p l e tion methods for deep geopressured reservoirs is reco mmended.

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## Table of Contents

Disclaimer ................................................................................................................. i Abstract .................................................................................................................... ii List of Graphical Materials ...................................................................................... vi Acknowledgements ................................................................................................viii INTRODUCTION ...............................................................................................................1 EXECUTIVE SUMMARY ..................................................................................................2 EXPERIMENTAL ..............................................................................................................4 RESULTS AND DISCUSSION .........................................................................................5 I. Digital Database ........................................................................................................ 5 Format and Structure ...............................................................................................6 II. Digital Map Atlas ...................................................................................................... 8 III. Produced Water Geochemistry Evaluation ............................................................. 9 The Process of Geochemical Analyses ...................................................................9 Assertions ..............................................................................................................11 Depositional Environm ent of Host Rock ........................................................................ 11 Assessing Anomalies Against t he Base ........................................................................ 13 IV. Working Model for Reservoir Development .......................................................... 14 Background ............................................................................................................14 Basin-Centered Ga s Paradigm ...................................................................................... 15 Working Concept Premises ........................................................................................... 16 Two-Phase Tight Gas Reservoir Development .....................................................16 Introduct ion ............................................................................................................... 16 Basin Scale Processes ..........................................................................................18 Stages in tight gas re servoir devel opment ..................................................................... 18 Phase I (B urial) .............................................................................................................. 1 9 Phase II (Basin Uplift) .................................................................................................... 20 Summary ...............................................................................................................22 V. Wild Rose Field Demonstration ............................................................................. 23 Overview ................................................................................................................23 Site Selection

................................................................................................................. 23 The Geologic Characteri zation of the Field De monstrati on Area .................................. 23 Petrophysical Reservoir Characteri zation ...................................................................... 32Contract DE-FC26-02NT41437 December 2005 Final Report page iv Rw Calibra tion ................................................................................................................ 3 3 The Reservoir Simulation ......................................................................................37 Matching Procedures ..................................................................................................... 37 Field Match Results ....................................................................................................... 39 Forecast Model .............................................................................................................. 43 Analysis .................................................................................................................46 Trends and Context ....................................................................................................... 47 Salinity Tr ends .......................................................................................................... 47 Basement Struct ural Trends ..................................................................................... 48 Structural Modeling ................................................................................................... 49 Vertical Mineral ogical Trend ..................................................................................... 50 Production Va lidation ................................................................................................ 50 Water Remediati on Strate gies ....................................................................................... 51 Avoidance Strategy for Small Scale Faulting ........................................................... 52 Capture Strategy for Sm all Scale Faulting ............................................................... 53 CONCLUSION ................................................................................................................54 Digital Database and Atlas ....................................................................................54 Applications ...........................................................................................................54 1. Secondary Porosi ty Prediction ................................................................................... 54 2. Formation Evaluation ................................................................................................. 54 3. Development Strategies ............................................................................................. 55 Perforation Strategy .................................................................................................. 55 Avoidance Strategy for Small Scale Faulting ........................................................... 55 Capture Strategy for Sm all-Scale F aulting ............................................................... 55 Future Research ....................................................................................................56 REFERENCES ................................................................................................................57 ACRONYMS AND ABBREVIATIONS ............................................................................97 ACRONYMS AND ABBREVIATIONS ............................................................................97 APPENDICES ...............................................................................................................102 A. Database .............................................................................................................. 102

• Database_R eadme ................................................................................................ 102

• Database_Access .................................................................................................. 102

• Database _CSV ...................................................................................................... 102

• Database _DBF ...................................................................................................... 102

• Databas e_XLS ....................................................................................................... 102Contract DE-FC26-02NT41437 December 2005 Final Report page v B. Atlas of Maps ....................................................................................................... 102

• ArcReader In stall ................................................................................................... 102

• Digital At las ............................................................................................................ 102 C. Produced Water Geochemistry ............................................................................ 102 D. Working Model for Reservoir Development ......................................................... 102 E. Wild Rose Field Petrophysics .............................................................................. 102 F. Wild Rose Reservoir Simulation ........................................................................... 102Contract DE-FC26-02NT41437 December 2005 Final Report page vi 

## List of Graphical Materials Figures Fig. I-1 Areal distribution of water sample locations contained in the database ........... 6 Fig. III-1. Stratigraphic column identifying major units & their ages ........................... 10 Fig. III-2. Salinity vs., depth for Lance, Almond and Frontier ...................................... 11 Fig. IV-5. Williams Fork fm Southern Piceance basic example .................................. 15 Fig. IV-6. Burial history central Washakie basin ......................................................... 18 Fig. IV-7. The working model ..................................................................................... 19 Fig. IV-8. Conceptual grain expansion & contraction ................................................. 20 Fig. IV-9. Influence of lateral stress ............................................................................ 21 Fig. V-1. Wild Rose Field demonstration location map .............................................. 23 Fig. V-2. Stratigraphic column for Upper Cretaceous in Washakie basin, Wyoming ..................................................................................................... 24 Fig. V-3. Wild Rose type log ....................................................................................... 25 Fig. V-4. Local Wild Rose field index map .................................................................. 26 Fig. V-5. Flow unit and stratigraphic pick relationships .............................................. 27 Fig. V-6. Top Almond subsea structure from 3D seismic and wells ........................... 28 Fig. V-7 Northwest-southeast seismic time section .................................................... 29 Fig. V-8. Paleozoic Depth Structure from 3D seismic ................................................ 30 Fig. V-9. Wireframe illustration of deep Paleozoic fault system ................................. 31 Fig. V-10. Produced water Rw map of Wild Rose field demonstration area ............... 33 Fig. V-11. Pickett plot gas zone – Rw =0.46 @ 68F .................................................. 34 Fig. V-12. Inferred SP-GWC structure map ................................................................ 35 Fig. V-13. Cross-section from east to west along northern portion of model grid ....... 37 Fig. V-14. Initial to final gas pressure arrays (layer 15) depicting some edge effects & showing relative depletion for inter-grid wells .............................. 40 Fig. V-15. Final field-wide cumulative gas & water production ................................... 41 Fig. V-17. Final layer 15 forecast permeability grid .................................................... 43 Fig. V-18. Gas rate (A) & cumulative gas (B) forecasts for 155 wells, compared to forecasting pre-existing 76 wells ............................................................ 45 Fig. V-19. Four-variable plot of Wild Rose reservoir attributes ................................... 46 Fig. V-21. Wild Rose field—first year water production .............................................. 48 Fig. V-22. Projected Laramide shear stresses at Almond level .................................. 49Contract DE-FC26-02NT41437 December 2005 Final Report page vii 

### Tables Table III-1. Range of TDS from water analyses by formation ..................................... 12 Table III-2. Range of TDS by salinity population ........................................................ 12 Table V-1. Initial gas & water in place for 23 model layers ........................................ 38 Table V-2. By-layer voidage & cumulative gas recovered in field thru October 2003 .............................................................................................. 39 Table V-3. Water-gas ratios for fluid gas influx at each of 9 perforation sets ............................................................................................................. 50Contract DE-FC26-02NT41437 December 2005 Final Report page viii 

## Acknowledgements Advanced Resources International, Inc. w ould like to acknowledge the National Energy Technology Laboratory (NETL), Morgantown, WV, for their role as lead funding agency together with the following companies and ot her governmental groups who contributed data, sampling opportunities or discussion: BP Americ a, Schlumberger, Bill Barrett Corp., Anadarko Petroleum Corp., Devon, Shell Western E&P, St one, Ultra Petroleum, USGS, and Wyoming Oil and Gas Commission. We would also like to thank the following individu als for their interpretive efforts or insightful discussion and comments; Vello Kuuskraa, George Koperna, Maria Fokin, Paul Ozanich, Marty Williams, John Forster, and Tim Schowalter. David Sears provided database coaching and processing support. Diane Suchomel and Dianne Finch-Smith deserve special recognition for their tireless efforts collecting data, samp ling, editing and keeping us organized.Contract DE-FC26-02NT41437 December 2005 Final Report page ix

## INTRODUCTION Advanced Resources Internati onal Inc. (ARI), with support from the U.S. Departm e nt of Energy, conducted a research program (DE- FC-02NT41437) to char acterize the nature, distribution and flow paths of m ovea b le flui ds in the subsurface of the Greater Green River basin (GGRB) and W i nd River basin (WRB). The proj ect goals were to im prove resource characterization, develop water rem e diation strategies and enhance gas recoveries in these reso urce-rich b a sins. Specific pro j ect ob jectiv es in clude the following tasks:

• Build a dig i tal wate r che m istry datab a se and construct key m aps using the data.

• Com p ile a digital a tlas o f m aps that in creas es the usability of the database.

• Conduct an in-depth evaluation of produced water geochem i stry that includes inte rpre tatio nas well as applic ation to the pra c tic a l aspe cts of the pro j ect objectives

• Develop a working m odel for m ove ment of water and gas through low perm eabilitybasins (b ase d on the geo c hem i cal evaluation).

• Conduct a field dem onstration for an ar ea with known water production problem s (to test the working m o del).

• Transfer the technology to industry thr ough a demonstrated conceptual m o del The results and discussion summarize the projec t. The bulk of the text, figures and data are included as appendices. This report is organized as follows: I. Digita l Data base ( Appendix A ) II. Digita l Map Atlas ( Appendix B ) III. Produced Water Geoch e m i stry Evaluation ( Appendix C ) IV. Working Model for Reservoir Developm ent ( Appendix D ) V. W ild Rose Field Dem onstration ( Appendix E : Petrophysics) and ( Appendix F : Sim u lation)

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## EXECUTIVE SUMMARY Advanced Resources Internati onal Inc. (ARI), with support from the U.S. Departm e nt of Energy, conducted a research program (DE- FC-02NT41437) to char acterize the nature, distribution and flow paths of m ovea b le flui ds in the subsurface of the Greater Green River basin (GGRB) and W i nd River basin (WRB). The proj ect goals were to im prove resource characterization, develop water rem e diation strategies and boost gas recoveries in thes e reso urce-rich b a sins. Specific pro j ect ob jectiv es in cluded the following tasks:

• Build a dig i tal wate r che m istry datab a se.
• Com p ile a digital a tlas o f m aps that in creas es the usability of the database.

• Conduct an in-depth evaluation of produced water geochem i stry that includes inte rpre tatio nas well as applic ation to the pra c tic a l aspe cts of the pro j ect objectives.

• Develop a working m odel for m ove ment of water and gas through low perm eabilitybasins (b ase d on the geo c hem i cal evaluation).

• Conduct a field dem onstration in an ar ea with known water production problem s.
• Transfer the technology to industry. The results of this project pr ov ide th e produced water chem is try backdrop, together with concepts and tools to reduce unwanted wate r production in tight gas reservoirs. The concepts and approaches generated also offer potential for the developm ent of com p letion technologies to enhance p e rm eabilitywithin tight reservo i rs and achieve commercial production rates. A large database of historical produced water analys es, supplem e nted with a targeted sam p ling program , was assem b led and interpre ted to address the pr oduction of excessive water in basin-centered tight form ation gas fields of the Greater Green and W i nd River Basins, Wy om ing. In excess of 16,000 histor ical chem ical component and isotopic analyses fro mgovernm e nt, academ ic and industry sources w e re winnowed to produce a geographically referenced database of nearly 3,700 discreet form ation tests. The analyses were screen ed for analytical v a lid ity and m e rg ed with perforation da ta and other support inform ation (as availab l e) to create a com posite georeferenced water chem istry resource to support exploration and production activities across the GGRB and WRB. A digital atlas showing the distribution of the data and som e specific an alyses has been constructed using Arc Reader and is contained in Appendix B. The digital atlas has query and lim ited m apping capability for users without ready access to Geographic Information System s (GIS) software. GIS techniq u es we re used extensively in the project.

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### Regional evaluation of chem ical and isotopic analyses indicates little m a ss m ove m e nt of waters in the subsurface. Deposition a l envi ronm ent is th e chief influence o nthe com position of intra form ation waters. Local ized vertical m ovem e nt of water along basem e nt fa ult zones appears as m o re restricted anom alies in contrast to regional com positional variability

. Both regio n al and lo cal knowledge is requ ired to successfully utilize water chem istry as an exploration or developm ent tool. Public availability of the extensive database constructed as a result of this project will suppl em ent the use of water chem istry at the field scal e to increase gas production. A working model of tight for m ation reservoir deve lopm ent was synthesized using the results of the assem b ly and evaluation phase s. An integrative approach w a s used to assem b le num erous existing reservoir concepts into a generalized developm ent sche me organized around reservoir confining stress cycles. W ithin this schem e , burial and tectonic processes destroy m u ch of the deposi tio nal in terg ranu lar f abr ic o f the rese rvo i r, generate gas and create a rock volum e m a rk ed by low perm eabilities to gas and fluids.
Stress releas e associated w ith uplift regenerates rese rvoir perm eability th rough the developm ent of a penetrative grain bounding natural fracture fabric. Reservoir m i neral com position, m a gnitude of the stress cycle a nd local tectonics governthe degree, scale and exact m echanism of perm eabilitydevelopm ent. Recognition of the prim ary role o f stres s re leas e in gene ration of naturally occur r ing reservo i r p e r m eability cr eates the opportunity to replicate the pr ocess artificially. L o cal perm eability enhancem ent induced by som e alternative stress reducing com p le tion methodology could change the local gaswater relative perm eability conditions and potentially allow gas to flow into the well. The working reservoir model was demonstrated in an area of anom alous water production. Detailed water analyses, seis m i c m apping, petrophysics and reservoir sim u lation indicate a lithologic and structural component to excessive in situ water perm eability . Reservoir s i m u lation in dicates sign if icant inf i ll potential in the dem onstration area. W e found higher form ati on water salinity to be a pay indicator. Spontaneous potential (SP) a nd resistivity ratio approaches combined with accurate f o rm ation water res i stivity (Rw) inf o rm ation are tools that can be utilized f o r im proved pay recognition. W e found m acro natural fracture perm eabili ty to be a key elem ent affecting both gas and water production. The re sults of the field study were used to generate strategies for av oidance o r m itigation o f excessive water produ ction. Strateg i es d eveloped to reduce unwanted water production in the field area include 1) more selective perforation through improved pay determ ination 2) use of seism i c attributes to avoid sm all-scale fault zone s and 3) capture of dynam i c value through the use of inf ill drilling inf o rm ation to delibe r atel y target op tim ally lo cated s m all scale f aults zones high in the re servoir gas column.

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## EXPERIMENTAL Work perform e d during this project confor m e d to generally accepted principles of petroleum geology and geochem i stry. No laboratories were operated directly by AR I during the perform a nce of this project. La boratories used as part of this study are docum ented in Appendix C. The analytical ve nd ors in ac cor d ance with a pplicab le lo cal and federal standards destroyed all samples collected during this project. Specif i c lab o ratory o r in terpr e ta tion techniqu es ar e ref e r e nce d in the app l icable appendices as follows: Geochem i stry .........................Appendix C Petrophysics ...........................Appendix E Reservoir S imulation .............Appendix F The following specific tradem arked commercial software packages were used during the inte rpre tive or docum entati on phases of this project: Petra, Petras eisTM (Geop l us Inc.) ArcCatalogTM, ArcMapTM, ArcPublisherTM, Spatial Analy s tTM (ESRI, Inc) Microsoft O ffice Suite (Microsoft C o rporation) Surfer 8TM, Grapher 5TM (Golden Software, Inc.) Canvas 8TM and Canvas 9TM (ACD System s, Inc) Com e t 3TM (Advanced Resources International, Inc.) The following non-comm ercial research software program s were used: NextGenTM (ARI, Inc) Poly3DTM (1993 Stanford University, Thom as) FracGenTM (discrete fracture network m odeling, NETL)
The m a jority of the project work was perf orm e d at ARI offices in Denver, CO. The reservoir simulation was perform e d at ARI offices in Arlington, VA.

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## RESULTS AND DISCUSSION I. Digit a l Dat a base Accurate inform ation regarding the com position of waters tr apped in th e inte rstices o f petroleum reservoirs is crucial to effectiv e form ation evaluation and resource estim ation. Eight decad es of oil and gas exploration in th e Greater Green ( GGRB) and W i nd River Basins has resulted in a large volum e of valuable produced water chem ical analy s es collected during form ation evaluation, workover and wate r disposal operations. The preponderan ce of historical water co mpositi on d a ta is the res u lt of thousands of nonrecurring opportunities and is im possible to recreate. A prim ary objective of this project was to m a ke available the abundant resource (spanning d ecades ) of existing analytical da ta o nproduced water com position. Thu s the first step in this project was to collect data from governm e ntal entities, operators, abandoned files, and previous stud ies. It wa s th en digitized as necessary and com p iled into a digital database

. The result of this collection effort was a com p rehensive body of data, but one with considerable overlap and duplication. The nextstep was to use structured query language (SQL) queries to elim inate dupl icate analyses and data with poor quality or otherwise erroneous aspects. Then, the location id entificatio n data was s c reened to 1. Ensure tha tr e ported loca tion da ta an d Am erican Petroleum Institute (API) num b ers were cor r ec t to the f u lles te x te nt possible. Som e otherwise valid data f a iled th is f i nal scr eenin g. 2. Match as m u ch high qu ality com p osition a l da ta to valid API and loca tio n data as possib l e. In som e cases this requ ired exam ining the origin al location surveys. The final database was spot checked against random ly selected raw input data to ensure the in tegr ity of the co m p i l ation process. The final product is a highly usab le digital database of near ly 8,000 water analysis results from over 3,200 wells (fig. I-1). It sp ans n early eight decades of exploration and production activity across two states (Wyo m i ng a nd Colorado) and num erous productive basins in clu d ing the s t ra tegic a lly importan t Greater Green and W i nd River Basin areas

. Compilation of this data into a single dat abase, with removal of duplicate and invalid analyses, op ens the da ta to access b y a broad audience o f

users with in terests in resource assessment, formation evaluation, prospect ge neration and exploitation of tight formation gas.

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 5Fig. I-1 Areal distribution of water samp le locations contained in the database 

### The database contains the results of rou tine ch emical analys es perform e d on fluids produced during all phases of petroleum we llbore operations. The source and sam p ling m e thod of the individual water sam p les is included where reported. Fluid sam p le analyses fro mdrill s t em test recoveries, as well as com p letion, workover, and production operations are represented. As a result, there is a wide range of applic ations for the data de pending on the specific purposes of the user. 

## Format and Structure The digital d a tabas e f o rm at f acilitates the ef f ective use of the data by prof essiona ls working to increase gas production from these areas. The database is available in native AccessTM form at as well as spread sh eet, text and DbaseTM form ats, m a king possible imm e diate utilization in Geographic Inform ation System s (GIS) or other workstation system s. Details of the d a ta qua lity s c reen ing cr iteria and f i na l datab a se s tructur e ar e included in the Read m e f ile loca te d with the database in Appendix A.

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### The database structure was designed to support use of stable and radiogenic isotope technology in the interpretive process. Produ ced waters from eighty-eight currently producing w e lls in four separate areas (W al t m an/Cave Gulch fields (W RB), Pinedale, Table Rock and W ild Rose fields (G GRB) were sam p led for routine and isotopic characterization as part of this study. Although the analyses were scr eened for validity, for m ation tops and other data were assum e d valid as reported by operators. Lo cal lith ostra tig raphic and form at ion nam e s were consolidated into broad groupings for m apping purposes. Those group nam e s are included in the ‘Revised Form ation’ database field.
Consolidation of these data into an organized, accessible digital form at enables imm e diate use of an irreplaceab le bo dy of know l e dge accum u lated as a result of literally thousands of non-recurring opportun ities. Acqui red at eno rmous expense over decad es of exploration and production activ ity, this inform ation, now acc essible, will prove an invaluab le r e source in meeting the ch alle ng e of increas ing availab l e dom estic en ergy resources.

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## II. Digit a l Map Atlas Our prim ary purpose in creating th is digital atlas of m aps wa s to inc r eas e the usab ility of the database with a high-level tool for exploring it geographically. A principal value of a sizeable g e ographically-co n trolled dig i tal databas e is the abilityto identify large-scale regional variations in num erical data. This is particularly im portant for establishing a regional context w h en interp reting sm aller prospect o r field s c ale d a ta sets. A digital atlas of maps displaying data distribution and several attributes potentially of interest to users is presented as Appendix B. Map layers have been constructed using comm onqueries likely to be of interes tto th e high level user exploring data distribution. These include layers of data distribution by quality, revised form ation, sam p le and analysis types.
These m aps are constructed in Arcm apTM (ESRI) and electronically published in ArcpublisherTM (ESRI). A copy of the curr ent ArcReaderTM (W indows version, ESRI) package is included in Appendix. B. The software packag e is freely available by download from the web link: http://www.esri.com /so f twar e/arcgis/arcreader/index.htm l

. Versions for Linux and Solaris op erating system s are also available from this site. Ref e r to the ESRI website for hardware requi rem e nts, com p atibility, and installation inform ation. ArcReaderTM offers the ability to zo om and pan at the discretion of the user. Crude state and field outlines have been included for gene ral reference. It incl udes public land survey grids to the section leve l. Users without direct access to GIS sof t ware can still use ArcReaderTM with some query and data export lim itations.

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## III. Produced W a ter Geochemistry Evaluation Com p iling a digital database of existing da ta and optim izing its acc essib i lity with a digital m ap atlas laid were pre-cursors to the next phase of th is project—conducting an in-depth evaluation of produced water geochem i stry. The evaluation included inte rpre tatio nas well as applic ation to the pr actical aspects of the pro j ect objectives. This section is a high-level discussion of the resu lts of the geochem i cal evaluation. Appendix C contains a detailed discussion of th e analys es a nd inte rpre ta tions. 

## The Process of Geochemical Analyses First, aggregate produced water com position database were analyzed to establish regional trends and dem onstrate potential uses for water c h em istry as a tool to ide n tif y and rem e diate production of unwanted water. Ge ochem i cal interpretations were based on high-graded regional subsets and loca l sam p les collec t ed as p art of this p r o j ect. F i g. I-1 is an index m ap showing general distribution of the data, which includes historical sam p le distribution and locations sam p led and analyzed. Then, new sam p les were collected specifica lly for the geochem i cal water evaluation. Data cluster of sa m p les were chosen from areas known for their anom alous character or high-profile developm ent activities. These areas were Table Rock, W a ltm an/Cave Gulch, Pinedale and W ild Rose Fields (fig. I-1). Appendix B includ es a detailed discussion of each area. Fig. III-1 is a ge neralized stratig raphic columnidentifying the m a jor units sam p led and their geologic ages. Finally, we perform e d three types of anal yses o nthe f o rm ation water s amples: 1. Major and m i nor elem e n ts 2. Stable isotopes (oxygen and hydrogen) 3. Strontium radiogenic isotopes

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 9Fig. III-1. Stratigraphic column id entifying major units & their ages

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## Assertions From our analysis of form ation waters produ ced from wells in the core study areas of Greater Green (GGRB) and W i nd River Basin w e assert that there is no large-s c ale fluid move m e nt. Instead there are sm aller areas of water m oving along faults and other breaks in the ve rtic al continuityof the basin f

ill, more sp ecifically : Depositional Environment of Host Rock The main control on for m ation wate r chemistr y is the orig ina l deposition a l environment of the host rock. The following evidence s upports this assertion:

• There is little to no relationship betw een salinity of produced water and the depth of recovery for the three m a in produ cing horizons: Lance, Mesaverde, and Frontie r form ations (fig. III-2)

Fig. III-2. Salinity vs., depth for Lance, Almo nd and Frontier (En l arged in Appendix C-20)

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### • The Frontier and Mesaverde form ations are generally m o re saline, i.e., they exhibit wider ranges of sa lin ity th an the Lance f o r

m ation waters. This is consistent w ith th e m a rine af f i nities o f the Frontie r and the M e saverde f o r

m ations whereas th e Lance is con s idered non -m arin e in origin and sho w s a fresher average salin ity withless range (Table III-1 ). Table III-1. Range of TDS from w a ter anal y s e s b yformation
Formatio n R a n g e Frontier 1,500 and 4 2 , 000 ppm Almond 1,700 and 5 0 , 000 ppm Lance 600 and 3 3 ,0 00 ppm


### Both the Fro n tie r and Me saverde f o r

m ati ons, in general, represent retrograde transgressive sequences, and in the study area are overlain with thick sequences of m a rine shale. Thus, those for m ations deposited in m a rine environm ents produce water that tends to h a v e higher tota l disso lved s o lid s (TDS), has chloride as its dom inant anion, and whose deuterium isotopes are le ss negative as compared to form ations deposited in non-m a rine environm ents . Those deposited in non-m a rine environm ents tend to produce water thatis fresher, has bicarbonate as the dom i nant anion, and has deuterium isotopes that are m o re negative (Table III-1). The overall lower TDS of the Lance form ation, both in the average and the range, is in ke eping with its n o n - m a rine orig in as com p ared to the m a rine Fron tie r for m ation.

• Where the Alm ond for m ation can be di vided into upper and lower units, two distinct salinity populations are present. The Upper Alm ond, of m a rine origin, shows a wider range of TDS and a highe r average TDS than the Lower Almond, which is predom inantly of non- m a rine origin (T able III-2). Table III-2. Range of TDS b ysalin itypopulati on Salinity Populations Ran ge Upper Almo nd 19,000 ppm Lo w e r Almond 13,000 ppm L a n c e 9 , 0 0 0 p p m

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### The overall lower TDS of the Lance form ation, both in the average and the range, is in ke eping with its n o n - m a rine orig in as com p ared to the m a rine Fron tie r for m ation. Assessing Anomalies Against the Base Second Assertion: Local salinities, TDS valu es or isotope signatures , at extrem e variance to regional f o rm ation or facies norm s , represent vertical disrup tion of the basin fill and fluid or charge transport along permeability co nduits associated with basement faulting

.

• Water sam p les collected along m a jor lineam ents o r areas of high surface lineam ent density exhibit anom alous local va lues of salinity, TDS or isotopes in contrast to regional m eans for these sam e values. See Appendix C for a complete discourse on this significant assertion.

• Water sam p les collected along m a jor lineam ents o r areas of high surface lineam ent density exhibit anom alous local va lues of salinity, TDS or isotopes in contrast to regional m eans for these sam e values. This phenom e non is exhibited in fig. V-10, and Appendix C figs. C-32 and C- 33 where individual attributes such as Rw, isotopes, and saturation indices exhibit local departures from over a ll geographic trends established by rela tively higher density sampling. See Appendix C for a com p le te discourse on this significant assertion.

• Some local and regional ge ologic problems can best be understood through interpretation of chemical and isotopic compositions of produced formation waters.
Geochem i cal attributes afford significant pot ential for im pact on near and long-term exploration and developm ent activities when properly sam p led, analyzed, and interpreted. A geodatabase is a powerful approach as it enab les rapid evaluation of local analytical results and identification of anomalies within a regional geologic context.

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## IV . W o rking Model for Reservoir Development Background Data from the produced water database, geoche m i stry, field dem onstration phases of this project, as w e ll as public inform ation sources were used to develop a working m odel for move m e nt of gas and water through low perm eab ility basins within a fram e w ork of basin history.
The nature and occurrence of m oveable water, geom echanics, stratigraphy, and reservoir engineering guided our conceptualization of tight gas reservoir developm ent. Knowledge of lithology, stratigraphy and basin history (particularly uplift) in the developm ent of these en igmatic reservoirs was referenced exten s ively.
The results of the com p osition a l s tu dy of the produced waters were app l ied, together with the authors’ operating and research experi ence, to for m ulate working hypotheses about the origins of the produced waters. T h ese hypotheses laid the foundation of our working model for strategies to avoi d and/or rem e diate unwanted water production. The working model ensured consistency as our hypothese s were tested, refined, and ultim a tely incorporated into a con c eptual m ode l for water in tight gas reservoirs. Iterations of the working m odel were presented at the AAPG Hedberg Tight Form ation Gas Sym pos ium in Vail, CO (April 2005) a nd at the 2005 AAPG na tional convention in Calgary, Alberta (June 2005). The Hedberg pos ter and the AAPG slides are included in Appendix D, which also includes an in-depth discussion of the reservoir developm ent model.

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### Basin-Cen t ered Gas Paradigm The basin-centered gas paradigm postulate s the presence of a larg e volum e of gascharged sedim e nts at near irreducible wate r saturation. Located in a down dip position relative to an up dip water sa turated volum e it is depicted in fig. IV-5. Such units genera lly yield gas sho w s when drilled but are projec ted to have very lo w perm eability to water.

Cro s s-se ction sho w ing rela tive position o f gas-s atu r ate d , transition, and water-saturated zon e s Fig. IV-5. Wi lliams Fork fm Southern Piceance basic example 

### The United States Geological Survey (USGS) considers these to be continuous class hydrocarbon deposits. S i nce the early phases of basin-centered ga s exploitation, it was commonly believed industry-w ide that the only signifi cant unknown variable was perm eability —that exp l o ita tion of the s e widespre ad resour ces could be pursued on a statistical basis. As developm ent continues, it’s becom e clearth at th is conce p t was lim ited by the da ta available. E n countering excess (m oveable) water is a far m o re frequent o u tcom e in recent years as tight gas developm en t operations intensify. The risi ng risk of unwanted water production has prom pted efforts (2004, Shanle y and others) to re-evaluate the basincentered paradigm

.

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### Working Concept Premises A m a jor giv e n for this s t udy was a basin witha m i xed fill of coarse and fine-grained clas tic s e dim e nts with sufficient sour ce, he a tand reservo i r to provide m oderate gas charge, reservoirs and seals. W e incorporat ed the following from our study of subsurface waters, previous work by others, and experien ce to fram e our concep tualization of tight gas reservoir developm en t within su ch a basin. 1. Produced water com pos itions generally reflect host rock environm ents of deposition. (2004 Henry and Billingsley). 2. Areas of faulting and vertical transpor t m a y be indicated by anom alous chem ical and/or isotopic com positions as m easur ed against background regional trends (2004 Henry and Billingsley). 3. One study of water chem istry suggests gas and water production from coals. (1998 Sm ith and Surdam). 4. Gravity segregation of som e gas accum ul ations in the Greater Green River basin is well-docum ented (2004 Shanley, et al). 5. The im pact of stress dep e ndency on rela tive p e r m eability is m a them atically corroborated by Ostensen (1983), By rnes (1997) and Shanley (2004). 6. The significant role of temperature in generation of s ubsurface stress as established by W a rpinski (1989), E ngelder (1985), and others. 7. The role of poro-elastic effects durin g uplift of gas charged sedim e nts as docum ented by Katahara and Corrigan (2002). 8. Last, but no t leas t we too k into ac coun t tha t:

- The ability o f water to f l ow in the de ep subsurface is m o re re s t ricted than gas; water is m o re easily characterized ch em ically than gas.

- Most significant large-scale tight gas basins have undergone significant uplift after gas generation. 

## Two-Phase Tight Gas Reservoir Development
Introductio n Bourne (2001) observed that natural fracture developm ent, particularly type, was influenced by whether net m ean confini ng stress was increasing or decreasing when failure occurred. He used a m odified Griff ith –Coulom b failure criterion to show that shear failure in rocks would m o st likely occur when net m ean stress was increasing, and that ex tens io nal f a ilure would m o st likely occur when the net m ean stress was decreas i ng (comm only during uplift).

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### W i despread extensional failure during uplif t can be predicted using poroelastic (1993 Higgs and Bradley) or viscoelastic (1989 W a rpinski) m e thods. Engelder (1990) also dem onstrated the potential for widespread failure during uplift using thermoelastic m e thods (the fixed-grips Griffith energy ba lance approach). Rega rdless of the m e thod used—poroelastic, viscoelastic and therm o elastic—the potential for widespread extensional failure can be shown to occur dur ing periods of falling m ean confining stress. The overall direction of our investigation was influenced by the converg ence of these m e thods. Other factors in tight gas reservoir developm ent parallel the two-stage in crease-decrease pattern. It is generally accepted that h ydrocarbon generation occurs during increasing burial and slows or ceases during uplift. Th e progressive m echanical and chem ical destruc tion of original p o rosity and perm eabilityis of ten ref e rred to as “b uria l” diagenesis. The generation of a bnorm a l pressures at depth is envisioned as a consequence of increasing burial. The respons e of the basin fill to increas ing burial (increasing stress) is dif f e rent than it is to u p lif t.
A m a jor common the m e in the geologic history of the Rocky Mountain tight gas basins is a late stag e uplift even t. Fig. IV-6 is a representative exam ple from the W a shakie bas i n (1994 MacG owan et al). Cycles of energy i nput (increasing temper ature and confining stres s ), and releas e (decreasing tem p eratur e and confining stress) con t rol m echanical strains, and chem ical diagenesis of sedi m e nts through tim e. This comm on sequence of events across several basins (not necessarily in severity or timing) prom pted us to use f r am e the buria l-uplif t cy cle and its impact on the basin fi ll as an organizational fra m ework for our working m odel.

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### Subsidence Uplif t

Although de p t h of burial, amounts of upl ift and ti ming vary betwee n basin s, the Rocky Mountai n

tight gas bas i ns share a c o mmon his t oryof s ubs idence followed by later uplift. Modified after MacGowan e tal, 1994. Fig. IV-6. Burial history central Washakie basin 

## Basin Scale Processes Stages in tight gas reservoir development Stages in tight gas reservoi r deve lop m ent (fig. IV-7) can be organized into two phases , eachdefined by the direction of net m ean stress change over tim e: Phase I is a tim e of net m ean stress increase and Phase II is a tim e of net m ean stress decrease. Reservoir developm ent is also highly influenced by m echanical properties of the reservoir, m i neralogy (provenance), proportions of m i nera logies present in different facies and diagenes is

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 18Fig. IV-7. Th e working model 

### Phase I (Burial) Phase 1 of tight gas reservoir developm ent be gins with the deposition of the reservoir/ source system and ends with the system at m a xi mum te m p erature and burial depth. During Phas e I the m echanical and chem ical diagenetic effects of burial destroy a m a jority of the rese rvoir’ s prim ary poros ity and p e rm eability. Hydrocarbo n genera tion occurs durin g the later stages of Phase I and peaks near m a ximum depth of burial.

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### At the end o f Phase I the potential rese rvoir has reached its minim u m por osity and perm eability . It m a y be locked in th e “perm eability ja il,” which Byrnes d e f i ned as conditions o f porosity, p e rm eability and relativ e saturation in a two- phase system such that neither phase pres ent (gas o r water for ex ample) has s i gnificant perm eability (2 004 oral comm , Shanley). Pe rm eability ja il is a usef ul concept to m a rk the tran sition b e tw een developm ental Phases I and II. Phase II (Basin Uplift) The onset of basin uplift m a rks the beginning of Phase II. Roc k streng th d eclin es with net conf ining str e ss. Ef f ectiv e porosity and perm eability incr ease (particu lar l yin quart z r i c h sedim e nts) as m i crofractures develop al ong the m a rgins of shrinking quartz grains (tabu l ar po re throats) an d c onnect previously isolated prim ary porosity. F i g. IV-8 is a schem a tic illustration of the grain expansion and contraction process.

Fig. IV-8. Co nceptual grai n expansion & contraction 

### During Phas e II of the developm ental cycle, net mean stress on the rocks declines and perm eabilityincre a ses. T h erm o elastic and lithosta tic conf in ing stres s es dec line while pressures from fluids and gases in pore spaces rem a in constant. The individual grains of the rock m a trix con t ract, the external conf ining stresses decrease, and fractures develop along the g r ain boundaries. Rem obilization of flu i ds (gas, water) beg i ns— w ith gas expanding to fill deve lo ping pore sp ace—and in creas ing its satura tion w ith respec t to water. This proces s continue s un til the s t ra ins can no lo nger be ac co mmodated within th e matr ix structure and m acro fracturing begins. The por e throats expand throughout this process. Gas, both as f r ee gas in pores and so rbed gas in c o als and org a nic sha l es, expands to f ill the voids.

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### When relative perm eability conditio n s for flow are satisfied the substances previous ly trapped in the pore spaces begin to m i grate. I tis likely tha tga s m oves first and m o st easily (as co mpressible g a s expands to f ill any in c r eased po ros ity) while in creas i ng its saturation at the expense of the water. This initiates gravity segregation, which generally leaves the or igina l water s f r om deposition inplace. As the uplift process continues, shrinkage of m a trix gr ains reduces n e t conf ining stres s and in creas es per m eability. Basin uplift cycles are m o st often driven by tec t o n ic ac tivity. The late ral a ccommodation required during this p r ocess typicallyinvol ves faulting. Displacem ents from basem e nt faulting will propagate u p wards thro ugh the bas i n fill and dis r upt its vertical in tegrity, allowing som e m i gration of fluids across uni t boundaries, leading to localized m i gration of for m ation water. Depending on the tim ing, water com position, tem p erature, and pressure conditions, m obility of waters across bed boundaries poten tially alters the m i neral stability fields, potentially enabli ng developm ent of secondary porosity, as diagramm atically shown in fig. IV-9.

Fig. IV-9. Influence of lateral stres s 

### Application of dif f e rential la ter a l s t r e ss dur ing the developm ent process imparts a weak planar fabric on the reservoir sedim e nts perp end i cular to the paleo-p r inc i pal hor izontal stress. Follo wing relax a tion of the lateral stress th e planar surf aces open an d support f urther enhancem ent of perm eability . Extension f r actur es m a y develop in high str a in zones par a llel to ax ial tr ends of antic lines. Perm e ability developm ent m a y be irregularly distributed according to the reservoir m i neralogy, litho l ogy an d strain his t ory of the lo cal area.

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### The m acro-stra tigr aphic architec ture of th e deposition a l sys t e m s rem a ins intact un less disrupted by faulting. Interbe dded or overlying ductile shales rem a in intact and function as la tera l or vertical p e r m eability barrie r s. Inte rb edded coals and organic- rich sha l es m a y also store hydrocarbons and eventually releas e gas as reservoir pressures decline. The exact contribution of interbedded organic-richs h ales and co als to reserv oir sto r age and flow is poorly understood possibly undere stim ated. The uplift process; im proves perm eabilityf o r tight ga s reservo i rs, preserv e s se als and r e le a s es charg e
. W ith sufficient cooling, pore pressure, and lithostatic stress rel ease, lithologically controlled bed scale extensional failure in the reservoir unit is induced, form ing m acro fractures. With sufficien t uplift (and associated s train), the b r ittle re servoir m a y develop a large

- ape rture, satura ted , extens ional f r acture system . The onset of m acro fracturing incre a ses total perm eability with in th e rese rvoi r and further fa cilita te s gravity segregation of the gas and water. Large-s cale uplif t even ts are typ i ca lly associ a t ed with f aultin g of the base m e nt. Late stage bas e ment faulting will prop agate upwards through the s e dim e ntary section, disrupting lateral continuity of sedim e nts with varying scal es of shear fractures, and further facilitating gravity segr egation of gas and water. Thes e f ault-r e la te d shear f r ac ture system s in reservoirs c ancrea te ar ea s of high per m eability. If they coin cide with highgas saturation, they produce gas at high rates. L i ke w i se, if fractures coincide with areas of high water s a turation, th ey can prod uce large vo lum e s of wa ter at high rates. W a ter will move through open natural fractures of any type or size when sa turation conditions for flow are m e t

. 

## Summar y The outcomes of the burial-uplift reservoir developm ent run the gam u t of structural, stratigraphic, and relative-perm eability cont rolled, reservoir-trapping configurations. Depending on their stage of reservoir and trap developm ent, these configurations show a variety of characteristics. Many are d u al perm eability, dual (and som e times tr iple ) porosity system s with som e degree of gravity segregation. Uncovering the full range of potential commercial reservoir settings m a y re quire tools an d concepts that shift away from conventional and historical analogs.
We envision the develop m ent of a tight ga s reserv oir as a p r ocess involv i n g m u ltiple sim u ltaneous process threads. The process threads are inter-related and often involve irreversible changes to the chem ical and physical structure of the basin fill. As a consequence , alte rations to the ba sin f ill in respon se to th e sub s idence p r oc ess are no t sim p ly rever s ed on uplif t. Rather, bas i n f ill dev e lo ps dif f e rent f eatures thru dif f e rent alteration mechanism s
.

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## V

. W ild Rose Field Demonstration Overview The purpose of the field dem onstration was to apply our working conceptual m odel, for reducing unwanted water production , in a practical setting. T h e team perform e d a thorough reservoir characterization and sim u lation of the field dem onstration area to establish a base from which water avoidance or rem e diation strategies could be developed.
Site Selection The W ild Rose field m a tched our profile and was selected fo r the dem onstration because the operator (BP) recognized the need to m i ni m i ze water production for the field while m a xi m i zing the am ount of gas produced. W ild Rose Field is located along the W a m s ut ter arch area of the W a shakie basin to th e west of the Echo Springs/ Standard Draw field com p lex (fig. V-1). The operato r contributed the following da ta for study: well logs, 3D seism i c, production data and water chem istr y data. In addition, a num ber of new water sam p les were collected.

Fig. V-1. Wil d

Rose Field demonstration location m ap 

### The Geologic Characterization of the Fie l d Demonstration Are a The reservoir characterization follow e d routin e practice for co nstruc tion of a reservoir model. The reservoir units were m apped usi ng lo cally corr ela tive e l ec tr ic log (e log) m a rkers. Available core and log data was inte grated petrophysically to generate reservoir porosity and satura tion s
.

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### The 3D seism i c data was m apped at the Alm ond (prim a ry reservoir interval) and at a prom inent deep reflector believed to be near the Paleozoic le vel. Mapping of reservoir units and 3D seism i c was com p leted using the Petra software package. The Petra p r oject f i les w ith da ta (no seis m i c) and grids are included in Appendix E. Water sam p les from wells not previously sam p led were collected and analyzed. Com p letion inform ation and production data fo r the area was acquired, edited for quality and sequenced in tim e for the sim u lation. Fig. V-2 is a general stratig raphic columnfor Wyom ing.

Modified from Roehl er (199 0) Fig. V-2. Stra tigraphic co lumn for Upper Cretaceous in Washa k ie basin, Wy oming

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### An Al m ond type log summarizing depositi onal environm ents and regional water salinities is shown in fig. V-3.

Fig. V-3. Wil d

Rose type log 

### The prim ary reservoir unit is the Alm ond for m ation of the Mesaverde Group. It is com posed of stacked, laterally discon tinuous m a rine and estuarine sandstones inte rbedded with coals, s ilts tones and shales . In g e nera l, indiv i dual s a ndstones are thin (1-20 feet), coarsening upward sequences. Lo cal channels do occur, and ar e cleaner, higher quality reservoirs. There is a prom inent flooding surface within the Al m ond fo r m ation (ALMD_SH2) that spans the study area. Above the Almond is th e L e wis form ation, a m a rine shale/siltstone sequence that form s the top seal of the rese rvoir interval. The upper part of the sequence (L-Marker) is high gamm a ray “hot” bentonite s h ale—a p r o m inent stratigraphic m a rker and seism i c horizon. Below the Almond for m ation is the E r icson form ation. Cleaner, more porous fluvial channel sandstones characterize the Ericson for m ation.

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### Regionally, north to south trending Upper Alm o nd retrograde m a rine barrier island facies produce large volum es of gas in fields suchas Echo Springs/Standard Draw. W ild Rose field lies to the west of the Standard Drawbarrier island facies, thus the bulk of the field’s production is from stacked thin m a rine , estuarine and channel facies of the Lower and Upper Al m ond back bar facies (fig. V-4).

Fig. V-4. Loc a l Wild Rose field index map

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### The Alm ond was broken into ei ght lithostratigraphic units (fig. V-5) based upon local flooding surfaces (shales) and correlative co al bed s . The reservoir in terv al was then subdivided into 23 flow units for petr ophysical characterization and sim u lation.

Flow unit pi cks match ARI stratig r ap hic picks ex cept whe r e subdivi ded. Fig. V-5. Flo wunit and st ratigraphic p i ck relationships 

### These units were further defi ned as flow units for petrophys ical study and put into the reservoir simulation m o del as displayed in fig. V-4. The ALMD_SH2 is a regional flooding surface and can be correlated with som e confidence across the d e m onstratio n area. Other m a rkers are less con tinu ous, as are individual sandstone s between the m a rine flooding events.

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### An upper Almond structure m ap was construc ted using seism i c and well control. The Al m ond strikes northwest to southeast acro ss the study area and dips gently to the southwest (f ig. V-6).

Map co ntou r interval is 50 f eet. Total dep th c han ge a c ross the town ship is ap proxi m ately 1,100 feet. Chang e s in the Almo nd stri ke a r e con s tru ed to repre s e n t sma ll scal e (+/

- 5 0 ft) faulting at the res e rv oi r lev e l. Fig. V-6. Top Almond subsea structur e from 3D seis m ic and wells 

### Local strike changes, som e abrupt, occur as the result of warping and small scale faulting that trends n o rtheas t-sout hwest acros s the township. The m ap constructed at the Paleozoic level from 3D seism i c is consid erab ly more com p l e x with a clear north eas tsouthwest trending fault system bifurcating in the northeast portion of the study area. Breccias, vertical s t ylo l ites, extens io n fr actures and other ev idence of strain are commonly observed in A l m ond cores throughout the W a m s utter area.
The sm all scale faulting and changes in strike observed at the Al m ond level are inte rpre ted to ref l ect the displa cem ents across the basem e nt fa ults. Stratigraphic com p lexity and low seism i c frequency c ontent, however, precl uded detailed three dim e nsional fault interpretations within the Alm ond itself. A prom inent high-energy reflector, inferred to be near th e Paleozoic, is displaced acro ss a com p lex northeast-sout hw est trend i n g fault system at around 20,000 feet subsurface (14,000 feet subsea). There are observable st rike changes reflecting num erous sm aller displacem ent subparallel faults distribut ed across the township (fig. V-8).

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### The prom inent deep (possibly Paleozoic) ref l ec tor was m apped in detail f o r the dem onstration area (fig. V-7).

Bas e ment-dr i v e n Fault Zon e Almond

Deep Re flector

Fig. V-7 Northwest-south east seis m ic t i me se ction

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### The Paleozo i c structur e was selected for m appi ng because of its potential to affect the distribution of natural fractur e perm eability within the Alm ond reservoir. Depth-wise there was su fficient disp lacem ent across the faults to determ ine the three-dim e nsional geom etry of the fault system

. The faults dip predom inantly south e ast and show revers e disp lacem ent. The system bifurcates in the northeast corner of the dem ons tration area. A subset of faults, located to the southeast of the juncture, show northwe st dip and reverse di splacem ent (fig. V-8).
These faults lie imm e diately beneath the sm all closed Paleozoic structure in sections 23- 24 (fig. V-8), and at the Al m ond level of th e prom inent southwest plunging antiform in the sam e sections. This move m e nt at depth propagates upward, resu lting in flexure and sm all scale faulting at the Alm ond interval and form s the prom inent southwest plunging antif orm at this lev e l.

Fig. V-8. Pal e ozoic Depth Structure fro m 3D seismic

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### The deep Paleozoic fault system was exposed as a com p lex of over twenty anastom o sing reverse faults (the wi refram e in fig. V-9).

In this wiref r a m e illustratio n of the deep fault syst em the wirefram e element s refl ect their relati ve depth in the subsurfa ce, bl ue (de epe r) t o red (sh a llo wer). No rth is to the top of the scre en ca pture and the area i s the sa me a s the depth structu r e ma ps of the Almond and Paleo z oic ho rizon s p r e v io us ly r e fe r e nc ed

. Fig. V-9. Wire frame illust ration of dee p Paleozoic fault system

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### Petroph ysical Reservoir Characterization Particular attention and care was paid to th e determ ination of reservoir properties from the well logs and core available, both inside the d e m onstratio n area and from the greater Wa m s utter area. Our working concep t suggested perm eabilityand relativ e perm eability would be key issues in the field demonstration. A variety of approaches, techni ques and calculation m e thods we re scrutinized in order to derive a solid petrophysical m odel for determ ining saturation. The petrophysical aspects of the dem o nstration are summarized here and discussed in detail in Appendix E. The prim ary tasks of the petrophysical reservoir characterization were:

• Build a petrophysical model for clay vol um e, porosity, perm e ability, and water saturation based on openhole l og suites and core data. - Review prior petrophysics and re vise/incorporate as appropriate.

• Calibrate cased-hole pulsed neutron l og response (TDT) to the petrophysical models developed for the openhole logs.

• Correct core data to in situ reservoir pressure conditions and s h if t, relativ e to logs.

• Utilize log s u ites to dis t inguish betw een gas and low salin ity for m ation water.

• Define and distribute flow units based on stratigraphy, facies and petrophysical characteristics.

• Export and incorporate summ ations in to a reservoir sim u lation m odel.
A total of 103 wells were loaded and sc reened for petrophysics. Seventy-one had openhole logs, and thirty-seven had cased hole logs. Of this 108, five had both cased and openhole logs. Eleven of the 103 wells were cored. Of the 103 wells, eighty-five were fully processed for petrophysics; the rem a ining wells had cased hole logs with lim ited or poor data sets. Production logging infor m a tion was lim ited to one well within the dem onstration area.
Present wellbore m echanical d e sign s and operating practice precl uded acquisition of additional logs during the project.

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### Rw Calibration Produced water analyses were used to calibra te the petrophysical interpretation. Accurate in situ Rw values are critical to effectiv e pay determ ination. Resistivity values from sam p les collected indicate a prom inent high Rw anom aly in the southwest portion of the dem onstration area, imm e diately overlying th e trace of the m a jor basem e nt fault (fig. V-10).

This ma p sh o w s the ave r a ge re sistivity of the produ ced wate r sa m p les (mea su red at 68 deg F) in

the Wild Rose demon stration are a

. H in dicate s area s of high Rw a nd L indicate s are a s of lo wer Rw. Th ere i s a con s pi cu ou s high resi stivity anomaly in sectio ns 2 8 , 29, 32, 33 an d 34 that is m o st likely relate d to faulting. Fig. V-10. Produced water Rw map of Wild Rose field demonstration area 

### Historical analyses were partic ularly valuable in this effort because they were typically collected from specific intervals within the Alm ond as opposed to the present-day practice of comm ingling the entire A l m ond section.

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### Spontaneous potential (SP) a nd resistivity ratio techniques were used to calibrate Rw, which as a reality check were then test ed via Pickett plot m e thods (fig. V-11).

Usi ng Rw=0. 46@68F, Pickett plots sho w the ga s-b e a ring inte rval s to cal c ulate 25-6 0 % wate r s a turation. Fig. V-11. Pickett plot ga s zone – Rw =0.46 @ 6 8 F 

### Som e lim ited special core analysis data was ava i lable to supp ort th e satur a tion va lid ity. Com p lete details and examples of this work are in Appendix E.

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### Vertic ally and late rally shif ting Rw values m a ke pay determ i n ation a challenge in this area. Com b ining the Rw and pay determ ination techniques led to the iden tif ica tion of an apparent salinity interface th at appears to delineate the boundary between discontinuous gas charged sands of the Al m ond and underlyi ng sands with lower gas saturation (fig. V12) although it neither follows structure rigorously nor appears to be flat.

Gas- w a ter b oundaryfollo w s dipping struc t ur e, but not rigoro u s ly ; therefor e, is a boundarybetw e e n disco ntinuous g a s-ch arged & aquifer s a nd s rathe r tha n an actu a l contact. Fig. V-12. Inferred SP-G W C structur e map 

### Despite m i neralogical and textural com p lexity, a high-quality petrophysical m odel (Appendix E) f o r Vclay , porosity, p e rm eability and water s a tura tion was developed and applied. It w o rks well in most openhole logs a nd in approximately 60 % of the cased hole logs but requires extensive quality control. Permeability was found to be affected by both porosity and Vclay. The conclusion that SP and resistivity ratios canbe used effectively to determ ine changes in f o rm ation water (Rw) is a va luable , im m e diately applicable outgrowth of this dem onstration. Although the theory and techni ques them selves are old, they have not been applied of late beca use of the di f f i culties in calib ration a g ainst Rw. I mproved understanding of Rw br ought about by this pr oject m a y m a ke the techniques valuable tools in pay determ ination and water avoidance. The results of the structural m apping and pe trophysical study were broken down into flow units, gridded across the dem onstrati on area and sam p led on a regular grid node basis for incorporation into the reservoir sim u lation input files. Initia lly, a natural fracture perm eabilitygrid was ge nerated usin g Discre te Fractur e Network (DFN) techniqu es and integ r ated in to the perm eabilitygrids for each lay e r. There wa s no local fracture data with which to ca libra t e the n e twork; howe v er, and sub s equent pe r m eability ad justm e nts

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### (increases) required to achieve an effec tive history m a tch across the field were sufficiently extrem e as to m a ke the DF N per m e ability approach irrelevant.

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## The Res e rvoir Simulation Reservoir simulation technology was used to link the petrophysical reservoir characterization with the act ual production behavior of the field. This was done to identify relationships between water producti on and reservoir characterization that could be used to m i nim i ze water production during co ntinuing developm ent. Historical gas and water production data, com p letion intervals, gathering pressures, and other engineering data were compiled into sim u lator files toge ther with the earth sc ience and petrophysical inte rpre tatio n s. Matching Procedures Appendix includes a detailed discussion of the matching procedures as well as input and output sim u lator files with a Com e tTM post processor for displaying them

. To perform t h is m odeling work, the township study area was discre tized into a 40- by 40- foor rectangular grid of 800-foot by 800-foot squares. This grid spacing covered the com p lete 23,000-acre demonstrati on area. Vertically, the m o de l contained twenty-three layers of alternating gas and water-charged sand and coal la yers, with each layer having variable thicknesses, spatially (fig. V

- 13).

Fig. V-13. Cross-section from east to west along n o rthern portion of model grid 

### There were twelve sand layers and eleven co al layers, with odd-num ber layers being sand bodies (from top to bottom in the reservoir column). Wh en constructing these alternating sand/coal layers, only immedi ate sand/coal pairs were permitted to communicate vertically. T h is procedur e em ulated the rath er interspersed nature of coal stringers through the Al m ond for m ation.

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### Consistent with field completion practices no coal seam s were perforated in the m odel. Sands were com p leted in accordan ce with industry-reported data.

W ith nearly twenty-eight years of historical production data available for the W ild Rose area, wells were controlled through monthly gas rates. F i el d-observed backpressures were a secondary operational constraint. C h anges inoperating practice and regulations over the years contributed uncertainty to the hist ory m a tch. Additional dynam i c production data (e.g., detailed wellhead f l owing or gathering pressures, additional production logs, etc.) could have strengthened the history m a tch. A reservoir model repre s enting the W ild Rose dem onstratio n area was b u ilt, execute d and adjusted until we achieved a reasonable m a tch between reservoir attributes and production. The petrophysically de rived reservoir param e ters were held constant through the m a tch process. No ad dition a l info rm ation indicated a n eed to rev i sit th e petrophys ics and the underlying data was considered m o re reliable than other m odel inputs.

Perm eabilitywas used as the pr im ary attribute f o r adjustm e nt. Initial coars e area l adjustm e nts were m a de, progres sing to individual wells near the conclusion of the m a t c h process. Original gas-in -place vo lumes, as calc ulated in the s imulator, are shown in Table V-1. Table V-1. Initial gas & water in place for 23 model la y e rs

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### Overall, 1.1 tcf of gas and 820-bi llion barrels of water were estim ated to be in-place in the study area (Table V-1). Noting that sand and coal (odd and even layers, respectively) bodies alternate with in the m odel, nearly 60 % o f the origin al hydrocarbo ns in-place were estim ated to have been contained in the sands, leaving the remaining 480 bcf in the adsorbed state within the coal seam s. Fiel d verification of the em ployed isotherm should be conducted to confirm the accuracy of the es tim a ted gas in-place in th e coal seam s.
Field Match Results While the field m a tch was quite good, individu al well m a tches did vary; however, these variab ilities were consid ered ac cepta ble with in th e overa ll field m a tch. Table V-2 shows the by-layer production during the tw enty-three year history. Table V-2. By -la y e r voidage & cumulative gas recovered in field thru October 2003

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### It is noteworthy that the coal seam s a r e negl igible contributors to date, while the sands have produced only 5% of their initial vol um e and 3% of the overall system in-place volum e. De pletion in this system , via pressure for sand layer 15, is depicted in fig. V-14.

Fig. V-14. Initial to final gas pressure arrays (la yer 15) depicting some edge ef fects & showing relative depletion for inter-grid wells

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### The W ild Rose area his t ory m a tch results suppo rted the follo wing suppositions. 1. There appears to be infill potential in this area because of the low volum e s produced to date. The operators are currently undertaking infill projects. (Eleven of s e venty-n i ne perm itted wells h a d bee ndrilled as of 9/05). 2. Taking away edge effects, average well drainage appears to be eighty acres in the developed areas and interferen ce appears to be m i ni m a l (fig. V-15). Theref ore, the inf ill p a ttern deve lop m ent is justif ied. 3. The coal seam s apparently have notcontributed to th e overall production. Confir m a tion of coal initial gas-in -pl ace (IGIP) is necessary to better gau g e the future contribution of these seam s
. The field-wide cum u lative gas and water pr oduction m a tches are show n in fig. V-15.

Fig. V-15. Fi nal field-wid ecumulative gas & water production 

### ARI experience during this produc tion sim u lation is in stark c ontrast to the assertion of Shanley, et al (2004) that little correction was usually required to m a tch bulk production perm eabilities to values generated using core and petrophysical m e t hods. It is clear from f i g. V-16 that m a jor upward adjustm e nts to perm eability were r e quir e d to m a tch the historical production rates. Only twelve of the well bore cells requi red less than a twofold adjustm e nt between original m a trix kh and that required to m a tch production. The average adjustm e nt was 7.5-fold and the m a xi m u m was 36-fold. For this reason a m a jor reasse ssm ent of the per m eability model was m a de in orde r to genera te a more geologic a llyreasonab l e perm eabilitym ap acro ss the dem onstration are a . Fig. V-16 is a com p arison between the origin al and m a tched arrays for one of the layers.

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 41Fig. V-16. Pe rmeability arrays before a n d after modifications (layer 15)

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### Forecast Model The perm eability m a trixf o r the f o re cast m odel was genera ted using th e origin al m a trix values (petrophysically derived) and c onditional sim u lation m e thods. The com posite, m a tched perm eability ar ray was dec onstruc ted and the m a trix perm eability value s were subtracted. The wellbore cells alone were ge ostatistically describe d using variography.
A condition a l sim u latio n was run us ing the wellbore cells an d the eigh t s urrounding cells as inputs. T h e perm eability m a trix was re populated us ing th e nine cells around each wellbore as givens and populat ing the intervening areas fr om the sim u lation array. The resulting f r a c ture p e rm eability array was a dded back to the matrix arrays and reinteg r ated in to the s i m u lation f i le. In this way, the loc a l wellbore m a tch values were held constant a nd the inter-well areas received statistically valid valu es that reflected th e range of the control data set. The final layer 15 p e r m eability ar ray is shown in f i g. V-17 as an exam ple.

This map is the permeability grid (of layer 15 ) used for the forecast runs. The variography indicated a si gnifica nt nug get effect and directio nal a n isotropy in a northea st-so u thwe st trend

. Fig. V-17. Final layer 15 forecast permeability grid

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### The W ild Rose area production forecast used the existing seventy- six wells as a base. Additiona lly , the eleven wells dr illed and co m p leted during the dem onstration were postapprais e d ag ainst the forecast. S i xty-eight pe rm itted well loca tions were projected to be drilled at a rate of two per m onth going forward and then added to the forecast.
The forecast run was executed for tw enty-five ad dition a l years, through 2 028. See fig. V-18 for the gas rate and cum u lative gas forecas ts for the 155 well-run as com p ared to forecasting only the p r e-existing sev e nty-s i x well s already m a tched in the base cas e. This forecast e s tim a tes that p eak gas rate will be on th e order of 3 5 MMcfd and further suggests that cum u lative gas production from the area will eventually surpass 200 bcf (projected to the year 2035).
The cum u lative gas prod uction from the eleven n e w wells co mpared favorably to the forecast, sug g esting the h i story m a tchshould be adequate to p r edict aggregate infill potential as well as estim a te future pr oduction. However, point forward the forecast model should be updated on an ongoing basis to re flect the data gather ed (via geophysical logs and pro duction ) and m i nim i ze the differe nces between th e forecast an d actual field perform a nce.

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 44Fig. V-18. G a s rate (A) & cumulative gas (B) foreca sts for 155 w e lls, compared to forecasting pre-existing 76 wells

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## Analysis The sim u lation results were reviewed to id entify any observable re lationships between bulk perm eability and w a ter production. A data set of seventy-five current wells with over 12 m o nths production was selected fo r reasons of com p letion and operating consistency. Total m a trix perm eability-thickne ss (kh) was subtracted from the sim u lation (m atch) kh. This difference is attrib uted to the p e rm eability contribution of natural fractures. The wells were ranked 1/low through 75/high in (1) m a trix k h, (2) natura l fractur e kh , (3) first 12 m o nths gas production and (4) water gas ratio. A four-variable bubble plot (fig. V-19) was constructed using th e resulting relative rankings.



## Best Wells

Normali zed Gas Productivity Rank

Matrix k h Ran k Natural Fracture kh Ran k Fig. V-19. F o ur-variable plot of Wi ld Rose reservoir attributes 

### This plot (fig. V-19) shows clearly that the highest pr oductivity gas wells with the sm allest water gas ratio are those with the m o st m a trix kh and the m o st fracture kh (sm a ll bubbles (upper right back corner of the cube).

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### The size of the bubbles represents the water- gas ratio ranking (sm a ller is better). The m a trix kh, fracture kh and norm a lized gas variab les are plotted against the axes (z, x and y respectively). The origin (0,0,0) is located at the lower left front corner of the cube. The upper right back corner of the cube is 80, 80, 80 and represents the highest-ranking wells for each variable with in the populatio n. A point lo cated at the lower front corner of the plot would exhibit the w o rst m a trix kh, greatest fracture kh component and worst gas production. The upper back corner represents the best m a trix kh, worst fracture kh com ponent and the best production rank. There are no po ints in the upper back corner.
The m a jority of the wells with relatively sm all fracture perm eability com ponents also rank lower in norm a lized gas production (near the axis between 0,0,0 and 80,0,0), with a m i xture of water-gas ratio rankings. Ther e is also a significant num ber of low productivity, high fracture com ponent wells with high water produc tion (large bubbles, low in the cube, towards the right.
The sim u lation results from the W ild Rose ar ea dem onstrate that the Alm ond reservoir is a com posite system of both m a trix an d natura l f r a c ture p e rm eabilities. W e lls optim ally located to access sign ificant pore vo lum e and fracture perm eability structurally high in a gas columnwill f l ow sig n if icant ga s at low wa te r to gas ra tio s
. W e lls with little f r a c tur e perm eabilitycom ponent tend to be p oor producers of gas although they m a y generate less water as well. This relationship of gas to water is also observed with high fracture perm eability wells, which tend to produce at high water gas rati os. T hus the im pact of natural fracture perm eabilityon production quality is neither all g ood nor all b a d. Rather, the negative or positive impact of natural fracture perme ability on production is determined by its relative pos ition with in the gas column—high or low.
Trends and Context Understanding the nature and occurrence of wate r in tight gas settings is more a question of understanding trends and cont ext than specific de term inative criteria. There are several significant, related trends in th e W ild Rose dem o nstration area. Salinity Tre nds For exam ple, a variation in water salinities (h igh to low) should be expected between the m a rine upper Alm ond, transitional m i ddl e Alm ond, and lower Al m ond/Ericson. A consistent R wacross these intervals would be anom alous. Successful pay determ ination in thes e situ ations requir e s ri gorous data collection to cap ture changing salinity trends because individual data points hav e little value o u t of context.

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### Fig. V-8 is a m ap of produced water resistivityin the dem onstration area showing a major Rw anom aly in the southwest portion of th e township. Strontium isotopes and calcite saturation indices were anom alous as well (e lucidated in Appendix C). W a ter has m oved in this area on the basis of the geochem i cal signatures.
Basement Structural T rends Structur e mapping at th e deep Paleo z oic level confirm e d a prom inent fault trend extending from the southwest corner of the to wnship to the northeas t corner (fig. V-7). There is an analogous trend in th e A l m ond structure (fig. V-7). The inflection of the prom inent flexure at th e Almond level is subparallel to, and nearly overlies, the deep fault itself. The first-ye ar water production m ap shows a less prom inent but nonetheless vis i ble alignm ent along the sam e trend (fig. V

- 21). The high perm eability cells from the reservoir sim u lation display sim ilar directional trends (fig. V-17).

Fig. V-21. Wild Rose field—first yea r water production

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### Structural Modeling To analyze the im pact of the deep Laram i de displacem ents on the res e rvo i r horizon we constructed a geom echanical m odel of the d eep basem e nt fa ult system (fig. V-7). From the m odel we created a m ap of estim ated shear stress at the Al m ond level (fig. V-22).

Structu r e con t ours at the A l mond level a r e sh own su p e rimp osed on shea r stre ss, estim a ted from bo unda ry eleme n t modeli ng o f the deep Pa leozoic fault system. The o pen circles represent fracture permeability rank (larger is better). Only the central NE-SW fault syst em wa s model ed , resulting in t he NW and S E quarters of the town ship contai ning n o valid stress values. The p u rple a r e a (d ark cente r area) repr esent s maximum concentratio n of shea r stresse s along fault tre nd at Almond level. Fig. V-22. Projected Laramide shear st ress es at Almond level 

### Not surprisingly, the distribution of the sim u lated shear s t res s e s gener a lly f o llows the northeast southwest corridor delineated by the water production and sim u lator perm eabilities.
Structur al g e om etries, water p r oduction, and simulato r m a tch perm eabilities all support a northeast-southwest stru ctural grain across the dem onstra tion area. Tim e slices of the conf identia l seism i c data and sm all def l ectio n s of the structur e contours indicate the presence of sm all scale, sm all displacem ent shear zones traversing th e demonstration area along the general corridor of the sim u lated shear stress m a xim a . At least one source of unwanted water production in this area is relate d to subseism ic (resolution) fault system s.

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### Vertica l Mineralogica l Trend Another aspect of the Wild Ro se demonstration area is a vertical m i nera logical trend. Yin and Surdam (1994) characterized Almond and Ericson sandstones petrographically and m i neralogically from cores taken around the GGRB. They found the Almond to be significantly m o re feldspar rich than the Ericson. Two-direct ion whole core perm eability data (p resen t ed in Appe ndix D) demonstra t es the extrem e sensitiv ity of th e Ericson co re to stress release m i crofracturing versus other units, including the Alm ond.
In the W ild Rose area, the sandston e m a turity (increasing quartz content) im proves downward through the Al m ond intervals to the Ericson. Perm eability is likely to parallel this trend, in creas ing with depth. Tradition a lly th is was considered a pos itive but as th e saturation calculations from th e petrophysics study show, ga s saturation decreases with depth, partic ular ly belowthe m o re signif i cant co al units. An incre a sing p e rm eability trend in the face of decreasing gas s a turation m a y not be des i ra ble if the o b jective is to avoid water production.
Production Validation The operator ran only one production log for th e W ild Rose dem onstration area. A simple log m ontage of this production log, a TDT log, and the m udlog was constructed and is available in Appendix F. W a ter-gas ratios for the fluid gas influx at each p e rforation are shown in Table V-3. Table V-3. Water-gas ratios for fluid gas influx at each of 9 perforation sets Perforatio n Set Depth Wate r Rate (Bbls/d) Gas Rate (Mcfd ) Wate r-G as R a tio

1 9 5 5 0 0 1 2 0

. 0 0 0 2 9 6 0 0 1

. 8 1 2 1 0

. 0 1 5 3 9 6 4 0 1 9

. 8 1 4 6 3 0

. 0 1 4 4 9 6 9 0 1 2

. 8 8 1 0

. 1 5 8 5 9 7 3 0 2

. 7 2 0 0

. 1 3 5 6 9 7 5 0 1

. 1 1 5 0

. 0 7 3 7 9 7 9 0 0 6 0

. 0 0 0 8 9 8 3 0 0 2 0

. 0 0 0 9 > 9 9 0 0 4

. 6 3 1

. 7 0

. 1 4 5

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### Nine intervals were perforated across appr oxim a tely 400 feet of the Alm o nd reservoir. Three out of nine perforated intervals in this we ll f l ow at a water gas ra tio ten-f o ld hig h er than the other six. Perforation sets 4, 5,and 9 produce less than 10% of the gas and nearly 50% of the water. Perforation sets 1, 2 and 3 yield 91% of the gas and 50% of the water. Visual exam ination of the TDT log (log pa nel in Appendix F) does not suggest m a jor differences in sand quality across the interval yet a single perf orat ion zone m a kes four tim es the ga s rate as a ll other zon e s com b ined at only a tenth of the water-gas ratio of the lower zones. Our petroph ysical study projected th e salinity /gas-water boundary (G WB) interface to be at approximately 9,800-feet MD in this well. Based on that projection, the lower zone at 9,900 feet is m o st likely a low-gas saturation, quartz-rich, high-perm eability lower Al m ond sand. The low-gas rate, low

- water ratio zones 7 and 8 reflect tight, low perm eabilityreservo i r ro ck and zone s 4, 5 and 6 are trans itio nal, with pe r m eability to both gas and water. Zone 3 has a conspicuously high flow rate but lo w water gas ratio. It most like l y r e presen ts a natura l f r acture zone. Zo nes 1 and 2 are low pe r m eability zo nes high in the gas column, right beneath the Lewis S h ale. Lack of openhole logs precludes solid confir m a tion of this production scenario. It does display potential interpretations upon wh ich a water avoidance strategy based on selec tive co mpletion co uld be built and executed within an operational program . A consistent data collection policy would enab le such strategies to be im plem ented. Water Remediation Strategies In the dem onstration area sim u lation unwanted water was produced when higher perm eabilityinte rvals we re encoun ter e d and perf o r ated in zon e s with low gas saturatio n. We found no pervasive irreducible gas saturation settings within the W ild Rose area that uniform ly produce gas at low water-gas ratios . This was indicated by the presence of a generally identifiable salinity boundary that coincides with in creased gas saturations in the upper few hundred feet of the Almond for m a tion. This salinity boundary does not correspond di rectly to structure. On openhole electric logs this boundary presented as a saline SP log deflection. (F or other indicators see Appendix E, Petrophysical section. ) W ith additio nal calibration, the boun dary m a y be identifiable on TDT logs. Thus, in new we lls the boundaries should be identified and com p letion operations planned accordingly. To understand the salinity boundary with respect to stratigraphy, for m ation waters will be routinely sampled during com p letion operations . Periodic flow test s prior to hydraulic fracture completion operations m a y yield fluids for Rw an alysis. This will improve petrophysical pay determinations and reduce com p letion of highly perm eable, low gas saturation zones.

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### Quartz and calcite rich reservoir in tervals are particularly susc eptible to developing perm eabilityto water. Th e larg e the r m a l expansion coef f i cie n ts of quartz and calc ite contribute to the developm ent of large ap erture grain-bounding m i crofractures during uplif t. Large pore thro ats crea te low c apillary en tr y pressur e s and incr ease m obility of fluids. Quartz con t ent of Mesaverde sed i ments peaks in the delta p l ain fluvial facies (lower Al m ond channels and Ericson form ation). Thes e units are also m o re likely to contain rela tive l y f r e sh f o rm ation water, co mplicati ng gas saturation determ inations. Based on the results presented here, these units are at high-risk of low-gas saturation coupled with high perm eability to water. To avoid completion of high perm eability, low ga s saturation zones in the s e interva l s, we recomm end perforation followed by flow test ing. While not specifi cally investigated here, we hypothesize that these units also ha ve lower inte rna l str e sses that could cause hydraulic fractures to propagate towards th em . Even a m odes tprogram of stress determ ination and hydraulic fracture m appi ng, early in a developm ent program , could avoid or am eliorate such issues. Unwanted water production from natural fractu re zones occurring low in a low-saturation gas zone is another signif i cant m e nace iden tified during th is study. These zones are identifiable by their extrem ely high perm eab ilities. W e advocate two strategies for m a naging this setting: (1) avoidance or (2) capture. Avoidance Strategy for Small Scale Faulting Our proposed strategy for avoid i ng s m all scale faulting is to identify and avoid them prior to drilling. Throughout the W ild Rose dem ons tration area there are sm all-scale fault zones at or below the effective resolution of seism i c. W e bel i eve the prim ary producing perforation in the W a m s utter Rim 15-2 (discu ssed earlier) is such a zone. Typically th ese fault zones are highly perm eable, and when optimally located with in th e g a s column, very prolific gas producers. However, when lo cated in a trans ition a l or lo w gas saturation zone they can be a significan t econom i c drag on the well.
An attem p t was m a de during th is pr oject to cons truc t deta ile d f

ault m aps within th e Al m ond reservoir interval. Stratigraphic com p lexity and low seism i c frequency content were m a jor barriers to successfully com p leting this effort. The Colorado School of Mines Reservoir C h aracterization Project (RCP) ha s demonstrated the use of an autom a ted fault-pickin g software package (Ant Tracker Alg o rithm TM, Schlum berger) for inte rpre ting sm all-scale f aults within reservo i r vo lum e s (supplem ented with hum a n editing). In the future such a sem i -autom ated process m i ght be an effective tool in finding and avoiding sm all-scale f ault zon e s. S e ism i c resolution will likely rem a in a challenge because velocity or o t her issues m a y preclude the leve l o f accuracy required to in tersect o r av oid a 50-foot discontinuity at 10,000 feet subsurface.

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### Capture Strategy for Small Scale Faulting A second strategy to address the issue is to capture the perm eability fabric of the unantic ipate d sm all scale f ault. Mos t natura l sm all-s cale f aults contac t sig n if icantly more reservoir than m a n-m a de hydraulic fractures. If this were not the case hydraulic fractures would consistently perform much better, and m o re consistently. Significant downspacing of an area substantia lly increases the subs urface sam p ling. Thus downspacin g offers the opportunity to pe rform detailed subsurface m apping if appropriate infor m ation and l ogs are obtained and analyze d. While there were no im age logs available for this study, our experien ce suggests consistent im age log collection during the downspacing program offers the oppo rtunity to m ap fracture zones directly, developing detailed m aps of their geom etry. Highly detailed fault m aps would enable th e deliberate inters ection of these extrem ely perm eable zones at the optim al point in the rese rv oir. Wh ile is it pro j ec ted that the ra te of return could increase, an econom ic analysis of each location would substantiate the value.

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## CONCLUSION Oil and gas exploration and developm ent ar e progressive processes that are hugely dependent on historical data and exp e rien ce for s u ccessful re sults. Data pertaining to the chem ical and electrical propertie s of intr a-f o rm ational waters is also crucial but has been difficult to effectively access. This is no longer the case as a prim ary output of this project is a robust database am assing thousands of for m ation water analyses. 

## Digital Database and Atlas The digital database provides data with dynam i c valu e for operators to increase gas production from key Rocky Mountain basins, without significant additional overhead. Along with electric logs, core, and seism i c, the database becom e s yet another valuable tool for m a xim i zing production.

A digital a t las showing the distribution of the data and som e specific an alyses has been constructed using ArcReader to incr e a se the us ability of the d a tabase. The digital a tlas has query an d lim ited m apping capab ility for users without ready access to Geographic Inform ation System s (GIS) software. 

## Applications Beyond the database however, this project has dem onstr ated techniqu es of interpr e ta tion and applications of the form ation water data to id entif y and s o lv e comm on exploration and production (E&P) issues. The tools, techni ques and strategies presented here have potential for im pacting secondary poros ity prediction, form ation evaluation, and developm ent strategies.
1. Second ar yPoro sit yPrediction Formation water geochemistry is an indi cator of the in situ diagenetic system. The chem ical compositions of subsurface waters can be interpreted within th e contex t of their host sedim e nts to reveal anom alies of potential significance. For exam ple, local variations in ion saturation indices can reflect inter-form a tional wate r m o vem e nt with significant implications for sec ondary porosity developm ent.
2. Formation Evaluation Vertical and lateral form ation wa ter resistivity changes are common . Collecting water sam p les f o r Rw and using the inf o rmation in log interpr e ta tion will im prove pay determ ination and com p l e tion decisions.

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### Bulk system permeabiliti es are often underestimated . Bulk reservoir perm eabilities determ ined through reservoir sim u lation can be many tim es greater than those initially estim ated through petrophysical studies alone. (Bottom hole build up pressure tests also show bulk r e servoir pe r m eabilities, but were not within th e s c ope of this projec t.) 3. Development Strategies Perforation Strategy Avoid completion of high perme ability low gas saturation zones. In higher risk intervals, we recommend perforation followed by flow test ing. Wh ile not specifically investigated here, we hypothesize that these units also ha ve lower inte rna l str e sses that could cause hydraulic fractures to p r opagate toward the h i gh-perm eabilityunit. Even a m odest program of s t ress determination and hydrauli c fracture m apping, early in a developm ent program , could avoid o r m itigate suc hissues. Avoidance Strategy for Small Scale Faulting Identify and avoid small-scal e faults prior to drilling . Throughout m o st tight gas reservo i rs th ere are sm all-scale fault zones at or b e low the ef f ective reso lution of seismic. We believe the prim ary producing perforati on in the W a m s utter Rim 15-2 (discussed earlier) is su ch a zone. T ypically thes e fault zones are high ly p e rm eable, and when optim ally lo cated within the gas co lumn, ve ry prolific gas producers. However, when located in a transitional or low gas saturati on zone they can be a significant econom ic drag on the well. In the future sem i -autom ated fa ult-picking processes might be an effective tool in finding and avoi ding sm all-scale fault zones. Capture Strategy for Small-Scale Faulting Capture the dynamic value of the drilling program. Most natural sm all-s c ale f aults contact considerably m o re reservoir than m a n- m a de hydraulic fractures. Significant downspacing of an area s ubstantially increa ses the subsurface sam p ling. Thus downspacin g offers the opportunity to perform detailed subsurface m apping. Consistent im age log collection during the dow nspacing program allows for identifying fracture zones directly, and developing detailed m aps of their geom etry. This would enable the deliberate in tersection of these ex trem ely pe r m e able zones at the optim al point in the reservo i r.

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## Future Research A key resu lt of this p r oject is an integrative conceptual gas r e servoir development model. This m odel encom p asses diverse views w ithin a single developm ental continuum

. Ef f ective tig ht gas re serv oir deve lop m ent is the r e sult of a dynam i c process with m u ltiple essential ing r edien t s:

- The original sedim e ntary provenance

- The proper m i x of deposition a l sy stem s and f acies

- A strong history of burial and uplift It follow s from the conc eptual mod e l that: Generation of increasing reserv oir permeability is a natural by-product of stress release during uplift. Gas sweet spots form in traps delineated by strain fields or ductility contrasts. Understanding the natural process of sweet spot developm ent—by stress rele ase and concentratio n of gas in tr aps f o rm ed by stra in f i elds and/or du ctility contrasts—offers options for m a nm ade repl ication through engineering technologies. A prim e example is cavitation, used comm only in coalbed m e thane plays and less commonly in conventio nal res e rvo i rs to increas e perm eability around a wellbore (19 99 Palm er). During cav ita tion com p letions, a larg e volum e of r o ck m a terial is rem oved from the res e rvo i r creating a cavity o r void space. The cavity accen tuates the no rm al disturbance of the local in situ stress field created by the wellbore. Under favorable conditions shear failure occurs in the ro cks surrounding the cavity and fractures propagate away from the wellbore into th e reservoir. The sh ear fractures im prove production b ycreating p e rm eability conduits and increasing the effective wellbore rad i us. By creating room for expansion of the rock s them selves, the cavitation technique m i ght also in itiate stres s releas e and associated pe rm eability inc r ea ses in the rocks surrounding the well. Sp ecula tion su ggests deve lopm ent of the cavity sho u ld para lle l the natur a l process of p e rm eability enhancem ent during up li f tand allow the gas and water to s e lf

segregate. D e veloping the practic al m e thods of deliberately i nducing such events in tight gas sands will r e quir e ad dition a l r e se arch. The uplifted gas basins of the Rocky Mountai ns have large volum e s of gas trapped in low-saturation, low-perm eability settings, ou ts ide estab lish e d field areas. Wh ere hydraulic fracturing techniques im prove connecti on to a reservoir, e ffective application of cavitation (or sim ilar) techniqu es m a y not only im prove connectivity they may actually increase local permeability in the reservoir and release trapped gas

. Developing the technolo gy to proactively cr eate the condition s for increas e d perm eability of these reservoirs and allowing the gas to se g r eg ate itse lf in s itu and f l ow into th e wellbore for recovery would capture the full dyn am ic value of the large resource base and should be considered a lo ng term research goal.

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. Yu, Zhihuai, Ian Lerche an d Allen Lowrie. 1991 . Mo deling fracturing and faulti ng within sedim ents aro und rapi dl y m oving lateral salt sheets. AAPG Bulletin 75-1 1 : 1 7 7 2 -177 8. Yuan, H.H. 1991. P o re-scale heterogeneity from mercur y por osim etry data: discussion. SPE Formation Ev aluati on 6- 2: 233-2 40. Yuan, H.H. 1991. P o re-scale heterogeneityfrom mercur y por osim etry data: repl y . SPE Formation Ev aluati on 6- 2: 242. Zoback, Mark D and J.D. By erlee. 1973. The e ffect of confining pressure and pore pressure on the permeability of Berea sandstone. EOS 5 4

- 11 : 12 09

. Zoback, Mark D and J.D. By erlee. 1975. Permeabili ty and effective stress. AA PG Bulletin 59-1: 154-1 5 9

. Zoback, Mark D and R.S. Wesson. 1983. Modelin g of coseis m ic stress changes associ ated with the 1975 Oroville earthquake. EOS (8 N o v) 78-46: 83 4. Zoback, Mark D. 1991. State of stress a nd crus tal deformation along weak transf orm f

aults. Philosoph ical Transactions of the Royal Society of Lo ndon 33 7-16 45: 1 41-1 50. Zoback, Mark D. 1996. Critically -stress ed faults, in situ stress and fluid flow-contrasting the Gulf of Mexico with other regio n s of active faulting. AAP G 1996 A nnu al M eeting Abstracts Appendix: 15 9. Zoback, Mark D. and A. H. Lachenbruch. 1992. Intr oduction to s p ecial section on the Cajon Pass scientific drilling pr oject. American Geo physical Union (AGU) Journal of Research (10 April) 97-B4: 4 991- 4994

. Zoback, Mark D. and J.D. By erlee. 197 5. Dilata ncy i nwesterly gr anite under cy clic differen tial stress. EOS 5 5 -12: 119 5.

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 95Zoback, Mark D. and J.D. By erlee. 1975. The eff ect of cy clic differential stres s on dilantancy in westerly granite under unia x ial and triaxi al conditions. American Ge ophysical Union (AGU) Journal of Re search (10 April ) 80-1 1 : 1526- 153 0. Zoback, Mark D. and J.D. By erlee. 1975. The eff ect of m i cro c rackdilantanc y on the perm eability of westerly granite. Americ an Geophysical Union (AG U ) Journal of Research 80-5: 75 2-75 5. Zoback, Mark D. and J.D. By erlee. 1975. The eff ect of stress on the per m eabili ty of the westerly granite. EOS 55-4: 431. Zoback, Mark D. and J.D. By erlee. 197 6. A note o nth e deformational be havior and permeability of crushed gr anite. International Journal of Rock Mechanics & Mining Sciences & Geomechanics Abstracts 13-10: 291-2 9 4

. Zoback, Mark D. and John H. Healy

. 1992. In si tu stress mea s ure m ents to 3.5 km depth in the Cajon Pass scientific resear ch borehole: im plic ations for the m e chanics of crustal faulting. American Ge ophysical Union (AGU) Journal of Research (10 April) 97-B4: 5 0 3 9 -505 7. Zoback, Mark D., D. Moos and D.E. Stephens on. 1989. State of stress and the relation to tectonics in the Central Savannah River area of south Carolina. In Rock mechan ics as a guide for efficient utilization of natural resource, ed. A. Wahab Khair. Proceedings of the 30th U.S. Symposium. M o rgantown, W est Virginia (11-1 9 June 198 9) , pu b. A.A. Balkema: 553-5 59. Zoback, Mark D., Daniel Moos and Larry Mastin

. 1985. Well bor e breakouts and in sit ustress. American Ge ophysical Union (AGU) Journal of Research (10 June ) 90-B7: 5 5 2 3 -553 0. Zoback, Mark D., Hiroaki Tsukahara and Stephe n Hi ck m an. 1980. Stress measu rem e nts at depth in the vicinity of the San A ndreas fault: im plicati ons for the m a gnitude of shear stress at depth. American Ge ophysical Union (AGU) Journal of Research (11 Nov ) 85-B11: 61 57-61 73. Zoback, Mark D., S. Hick man and D. Moos. 19 80. In situ m e asu re m e nts in a ~1 km deep well near the San Andreas faultin the western Mohave Desert. EOS (11 Nov) 61-46: 1032

. Zoback, Mark, D. and Pav e l Peska. 199 5. In s itu stre ss and rock strength in the GBRN/ DOE pathfinder well, South Eugene Island, Gulf of Mexico. In SPE 29233 revised . Jou rnal of Petroleum Technology (JP T ) (July, 47-7 : 582- 585. Zoback, Mark. D., A.W. C h an and J.C. Zinke. 20 01. Production-i n duced norm a l faulting. I n Rock mechanics in the national i n terest, ed. Derek Elsworth, John T nucci and Keith A. Heasl e. Proceedings of the 38th U.S. Rock Mech anics Symposium (7-10 Jul y 20 01) I: 1 5 7 -163. Zoback, Mary Lou an d M ark D. Zoback. 19 85. Unif orm one to on e m a xim u m h o rizontal co m p ressive stress throughout m i d-plate North Am er ica. EOS 66-4 6 : 10 56. Zoback, Mary Lou and Mark D. Zoback. 1989. Tectonic stress fie l d of the continental United States. Chapter 24: Geophy s ical fra m e work of th e c ontinental United States, ed. L. C. Pakiser and Walter D. Moone y . GSA Memoir no. 172: 523- 539

. Zoback, Mary Lou. 19 89. State of stress and m odern deformation of the north ern basin and range province. Am erican Geophysical Union (AGU) Journal of Research (10 June) 94 -B6 : 7105- 712 8.

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 96

## ACRONYMS AND ABBREVIATIONS
ACRONYMS AND ABBREVIATIONS

ALMD_ S H2

... Almond formation API

................ American Petroleum Institute ARI

................ Advanced Resources In c. Bbl

................. barrel bcf

................. billion cubic feet BHPBU

.......... bulk wellbor e scale prod uction permeabilitie s BVW_F

.......... bulk volume water = SWT_F * PHIE_F bwpd.............. barrels of water per day CAL_BS

........ caliper-bit size difference CEC............... cation exch ange capacity CEC1

............. CEC calculation from porosity COAL_FL G

... coal flag COALFL GT

... TDT coal fla g CTE

............... coefficie n t o f thermal expansion DFN

............... discrete fra c ture network DST

............... drill stem te st elog

............... electric log EHS

............... effective horizontal stress EVS

............... effective vertical stre ss E&P

............... exploration and production fm

.................. formation GGRB............ Greater Gre en River Ba sin

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 97GIP

................ gas-in-place GIS

................ Geographic Information Systems GRL

............... gamma ra y l i near GRN1

............ normalized gamma ra y GWB.............. gas-water boundary IGIP

............... initial ga s-in -place k

.................... permeability kh

.................. permeability-feet K_PHI_HI

...... high core po rosity-perme ability trend K_PHI_LO

..... low core porosity-perme ability trend K_PHI_ MD

.... medium core porosity-permeability trend K_PHI_VC

..... permeability from modifi ed Timur-Co a tes equatio n (PHI & Vclay) MD................. measured depth md

................. millidarcies md/pu

............ millidarcies/ porosity unit MMcfd

........... millions of cubic feet per day MW X

............. multi-well experiment

nms

............... net mean stress NPHILS

......... NPHI in lime s tone units NPHISS

......... NPHI in sandstone units OGIP

............. original gas in place ohm-m

........... ohm meters phi

................. porosity PHIE

.............. effective density porosit y PHIE_D1

....... PHIT_D1 * (1-Vclay) PHIE_DF

....... final effect ive density porosity (edited for clay, coal & washouts) PHIE_DG1

.... PHIT_DG1 * (1-Vclay)

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 98PHIE_F

.......... final effect ive porosity PHIE_ND1

..... PHIT_ND1 * (1-Vclay) PHIE_NDF

.... final effect ive density porosity (edited for clay, coal & washouts) PHIE_PN3

..... final correct ed TDT porosity PHIT_AVG

.... average of PHIT_MXa nd PHIT_VSH PHIT_D1

....... total densityporosity, grain density = 2.68g/cc PHIT_DG1

..... total densityporosity with variable grain density and SXO ga s correction PHIT_MX....... maxi mum p o rosity base d on Vshale

- Porosity trend PHIT_ND1

..... total neutron

- density crossplot poro s ity PHIT_ND2

..... total porosit y form su m of squares o f NPHI and DPHI PHIT_VSH

..... porosity derived from Vs hale-porosit y trend ppm

............... parts per million PRES1

.......... pressure cur v e psi.................. pounds per square inch QC

................. quality contr o l Qv.................. cation exch ange conce n tration QV1

............... Qv calculation from CEC & porosity RCP............... Reservoir Characterization Project RES_FLG1

.... reservoir flag RHOBS

......... environment ally correcte d & shifted d ensity RHOMAT

....... density of matrix by stratigraphic inte rval Ro.................. vitrinite refle c tance in o i l RTratDS

........ ratio of deep /shallow resistivity RTratSD

........ ratio of shallow/deep resistivity Rw

................. formation water resistivity RW_Rmf1

...... resistivity of mud filtrate SEM

.............. scanning e l ectronic microscope

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 99SP

................. spontaneou s potential ( l og) SPE

............... Society of Petroleum Engineers SQL

............... structured q uery language Sw

................. water saturation SW_ARC1

..... Archie water saturation in Almond gas zone (1.0 , 1.74, 2.00, 0.46 @ 68F) SW_ARC2

..... Archie water saturation in Almond Aquifer (1.0, 1.74, 2.00, 1

. 74 @ 68F) SW_ARC3

..... Archie water saturation i n Erickson ( 1 .0, 2.00, 2. 00, 1.74 @ 68F) SW_DWT1

.... water saturation from dual water equation SW_SIM1

...... water saturation from Simandoux eq uation SW_WS2

....... water saturation from Waxman-Smit s equation SWT_F

.......... final merged water saturation Sxo

................ water zone saturation SX O_ARC1

... Archie water saturation f o r using RW_Rmf & shallow resistivit y tcf

.................. trillion cubic feet TD

................. total depth TDS

............... total dissolved solids TDT

............... thermal decay time TDT_RT

........ TDT resistivity der ived from the sigma curve TDTratFN

...... ratio of TDT far/near cou n ts TDTratNF

...... ratio of TDT near/far cou n ts TEMP1

.......... temperature Curve TGRN

............ TDT normalized gamma ray TPHI

.............. cased hole pulsed neutr on porosity TSW_WS1

.... TDT water saturation fro m Waxman-Smits equation TVD

............... true vertical depth USGS

............ United States Geological Surve y VCLSTB

........ volume clay by Steiber method

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 100Vr................... vitrinite refle c tance VSH

............... volume shale VSHGRL

....... volume shale by gamma ray linear method WRB

.............. Wind River Basin

Co n t ra ct DE- FC2 6- 02NT41 43 7 Decem ber 2005 Final Report page 101Contract DE-FC26-02NT41437 December 2005 Final Report page 102 

## APPENDICES
A. Database

• Database_Readme

• Database_Access

• Database_CSV

• Database_DBF

• Database_XLS 

## B. Atlas of Maps

• ArcReader Install

• Digital Atlas 

## C. Produced Water Geochemistry
D. Working Model for Reservoir Development
E. Wild Rose Field Petrophysics
F. Wild Rose Reservoir Simulation