The most important role of a DG is to:

estimate the oil and gas reserves that may

be discovered in a particular venture.
keep track of the reserves in all past
ventures.
THE 4 BASIC RESERVES ESTIMATION

METHODS
1. Educated Guess and/or Comparison
with nearby production.
2. Static Reserves Estimates
Volumetric Calculations
3. Dynamic Reserves Estimates
Decline Curve Analysis
Material balance calculations
Reservoir Simulation
THE EDUCATED GUESS and/or
COMPARISON OF NEARBY PRODUCTION
Consider a region where production is from a
highly fractured tight formation or where
poroperm heterogeneity is unpredictable.
Volumetric calculations are largely
meaningless.
A way to estimate potential production from
a well is to consider those nearby.
Generally, such a wildcat well will not
perform better than the nearest wells: best to
estimate cautiously
VOLUMETRICS
Most accurate and widely used methods of reserves
estimation.
Carried out by geologists as they are based on
geological structure and isopach maps.
Rock volumes are established that are assumed to
contain hydrocarbons (e.g. seismic bright spot).
Can be a simple volume calculation or a complex net
gas or net oil isopach approach, determined by
structure contours modified by fluid contacts and net
isopachs (net reservoir thickness map).
Accuracy of volumetrics depends on data for porosity,
saturation, net thickness, areal extent, formation
volume factor, integrity of those data within a reservoir.
Volumetric Method
RR = 7758 x A.t x (1 Sw) x FVF x RF
Amount of oil in reservoir Amount of recoverable oil
RR = Recoverable Reserves
7758 = conversion from acreft to barrels (if vol. in
m3. this conversion number is eliminated)
A = area of porous rock, acre
t = thickness in feet
= porosity,%
(1-Sw) = water saturation of reservoir
FVF = Formation Volume Factor (1/Bo & 1/Bg)
Bo/Bg reservoir volume / surface volume (vr / vs )
RF = Recovery Factor
HOW TO DETERMINE

ROCK VOLUME
Most rock volumes established through use of
net gas and net oil isopachs (net pay map).
Constructed from superimposing of net isopach
map and structure contour maps then cut
(reduced) it with well defined OWC and/or GOC.
Calculate the volume of net pay map by
planimeter (or digitizer table) and/or grid square
counting
HORIZON MAP
(Superimposed Structure and Net Isopach Maps)
0
m
5
m
1
0
m
1
5
m
1
0
m
5
m
0
m
NET PAY MAP
Rock Volume Calculations
2 methods :
1. PYRAMID
2. TRAPEZOIDS
A : area, m2 or acre
h : isopach/contour interval, m or ft
n : contour number (0 n)
t : avg. thickness above the top of max. thickness
FVF

Formation Volume Factor
RF
Recovery Factor
Usually RF determination is carried out by
Reservoir Engineer.
Mainly based on the reservoir drive, rock
properties and fluid properties.
For oil with effective water drive the
primary recoveries are in 25 40 % range
(max. 75%).
For gas with gravity drainage, water drive
and depletion drive can provide RF > 80%.
Average Oi l Recovery
Factors,
% of OOIP
Dri ve Mechani sm
Range Average
Sol uti on-gas dri ve 5 - 30 15
Gas-cap dri ve 15 - 50 30
Water dri ve 30 - 60 40
Gravi t y-drai nage
dri ve
16 - 85 50
Average Gas Recovery
Factors,
% of OGIP
Dri ve Mechani sm
Range Average
Vol umetri c reservoi r
(Gas expansi on dri ve)
70 - 90 80
Water dri ve 35 - 65 50
Average Recovery Factors
SOURCES

OF

DATA
Decline Curve Analysis

(Reservoir Engineers jobs)
After wells have been producing for a while:
The rate of production is graphed
Generally 6 months 1 year after start of
production
Good reserves estimates can be derived.
Often compared with volumetric technique
results.
Can be done by well, by a group of well, by
block, by reservoir, by field
Decline Analysis Results
Determine remaining recoverable reserves
under natural depletion rate.
To forecast production under existing
conditions
Limitation:
The degree of the accuracy is depend on the
reliability of the production data.
DECLINE
CURVE
EQUATIONS
Production Plots
1. A plot of log(q) vs t is
Linear if decline is exponential
Concave upward if decline is hyperbolic (n>0) or harmonic
2. A plot of q vs Np is
Linear if decline is exponential
Concave upward if decline is hyperbolic(n>0) or harmonic
3. A plot of log(q) vs Np is
Linear if decline is harmonic
Concave downward if decline is hyperbolic (n<1) or exponential
Concave upward if decline is hyperbolic with n>1.
4. A plot of 1/q vs t is
Linear if decline is harmonic
Concave downward if decline is hyperbolic (n<1) or exponential
Concave upward if decline is hyperbolic with n>1.
Example. Exponential decline
Example. Exponential decline
Example. Exponential decline
q = 6049.1e
-0.0524 t
100
1000
10000
0 10 20 30 40 50 60
time (quarter year)
R
a
t
e
,

s
t
b
/
d





.
Slope=-D 1/quarter year
Example. Exponential decline
Example. Exponential decline
Example. Rate decline with production
q = -0.4301Np + 5768.7
0
1000
2000
3000
4000
5000
6000
7000
0 2000 4000 6000 8000 10000 12000 14000
Cum. prod, MSTB
q

s
t
b
/
d
q

abondonment
Reserves
Example. Harmonic decline
Example. Harmonic decline
0
2000
4000
6000
8000
10000
12000
0 2 4 6 8 10 12 14 16
Time (years)
R
a
t
e

(
s
t
b
/
d
)
0
5
10
15
20
25
30
35
40
C
u
m
.

P
r
o
d
u
c
t
i
o
n

(
M
M
s
t
b
)
Example. Hyperbolic decline
Example. Hyperbolic decline
Hyperbolic Decline curve
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
0 50 100 150 200 250 300 350
days
q

S
T
B
/
D
General Concept of Material Balance.
From: Petroleum Reservoir Engineering
Amyx, Bass, and Whiting (1960).
a. Initial reservoir conditions. b. Conditions after producing N
p
STB of oil,
and G
p
SCF of gas, and W
p
STB of water.
Material Balance: Key Issues
Must have accurate production measurements (oil, water, gas).
Estimates of average reservoir pressure (from pressure tests).
Suites of PVT data (oil, gas, water).
Reservoir properties: saturations, formation compressibility, etc.
MATERIAL BALANCE
MATERIAL BALANCE
of a Petroleum Reservoir
(Mostly carried out by Reservoir Engineer)
RESERVOIR SIMULATION (RS)
RESERVOIR SIMULATION (RS)
Reservoir Modelling: primarily the reservoir
engineers job.
RS applies the concepts and techniques of math-
ematical modeling to the analysis of the behavior of
petroleum reservoir systems.
In a narrower sense refers only to the hydro-
dinamics of flow within reservoir.
In a larger sense refer to the total petroleum
system which includes the reservoir, the surface
facilities, and any interrelated significant activity, and
economic
The basic flow model the partial differential
equations using finite difference methods which
govern the unsteady state flow of all fluid phases in
the reservoir medium.
RESERVOIR
RESERVOIR
SIMULATOR
SIMULATOR
Rock data
Fluid data
Production data
Pressure data
Flow rate data
Mechanical &
operational data
Miscellaneous
data
INPUT
INPUT
PROCESSED
PROCESSED
in the BLACK BOX
in the BLACK BOX
OUTPUT
OUTPUT
Reserves
Reservoir model
Plan of reservoir
depletion
Production
forecast
Optimum
production
RESERVOIR SIMULATION
RESERVOIR SIMULATION
Reservoir link with surface facility
Prepare the array input data (maps) of individual flow
unit : structure (top & bottom), isopach (net & gross),
porosity, permeability, rock compressibility etc.
Advising to simulation engineer in the designing of
the grid model and layer divisions.
Trace and established in the model grid the
existence of faults, horizontal and vertical barriers
permeability.
During the history matching of production, pressure
etc., DG advises to simulation engineer in allowable
geological modification such as thickness, structure,
rock properties and volumetric reserves.
The Role of DG
The Role of DG
in Reservoir Simulation
in Reservoir Simulation
RESERVES CLASIFICATIONS
PROVED :
Estimated to reasonable certainty. Often based on
well logs but normally requires actual production or
formation tests.
Proved developed reserves
Reserves that are expected to be recovered from existing wells
Proved undeveloped reserves
To be recovered by new drilling, deepening wells to a new
reservoir or where additional finance is required to produce
PROBABLE RESERVES
Less certain than proved but can be assessed to
some degree of certainty. May include logging
estimates, improved recovery technique estimates
POSSIBLE RESERVES
Not as certain as probable reserves and can only be
estimated to a low degree of confidence.
UNPROVED RESERVES Resources
RESERVES CLASSIFICATIONS
Decision Making: protocol
Despite these defined terms, there is still some latitude in their
application. In general, we use this:
Proved Reserves = minimum case economics. Financial
investment is based on proved reserves.
Proved + Probable Reserves = most likely case
economics. Internal company decisions usually based on this.
Proved +Probable + Possible Reserves = maximum
case economics. This is the best that could reasonably happen
for a venture. Companies try to sell ventures based on this.
MM DARISSALAM, YOGYAKARTA JUN. 08