Index of content

1.
Scope of application............................................................................................ 3
2.
Who should read and act on this document ...................................................... 3
3.
Record of revisions .............................................................................................. 3
4.
Introduction ......................................................................................................... 3
5.
Determination of net pay .................................................................................... 3
5.1. Case 1: RCA, SCAL, Log and test data available, FWL can be estimated........ 3
5.2. Case 2: RCA, SCAL and Log data available, no information about FWL ......... 4
5.3. Case 3: Log data available, no information about FWL ................................... 5
5.4. Case 4: Log data available, no analogous or offset reservoir data, no
information about FWL ................................................................................................. 5
5.5. Case 5: Thin beds, low resistivity pay ............................................................... 6
5.6. Case 6: Carbonate reservoirs ............................................................................ 7
6.
Determination of cut-offs .................................................................................... 7
7.
Definitions .......................................................................................................... 11
Cross references ......................................................................................................... 13
List of abbreviations ................................................................................................... 13

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1. Scope of application
This document is designed to define and explain the term net pay and the way net pay
should be estimated in conventional oil and gas accumulations for the purpose of initial inplace volumes assessment. This should be applied on a single well case. The focus is to
identify different scenarios for net pay determination, depending on data availability, to
explain the differences between gross thickness, net rock, net reservoir, net pay and
respective net-to-gross ratios, so that there is a common understanding of net pay. Water
saturation has not been regarded as cutoff criteria in the context of this standard. For
reservoirs not falling into this category or for enhancement recovery methods (IOR, EOR)
Formation Evaluation department has to be consulted for the net pay estimation. For
selection of perforation intervals petrophysicist has to be consulted.

2. Who should read and act on this document

This document aims at all expertise level petrophysicists, involved in the process of
petrophysical data interpretation, as well as all disciplines experts and managers that use
petrophysical analysis results.

3. Record of revisions
Initial document.

4. Introduction
Unfortunately, there is no universal definition of net pay accepted by the oil industry, nor is
there general agreement on how it should be delineated. Net pay is a key parameter in
reservoir evaluation because it identifies those penetrated geological sections that have
sufficient reservoir quality and hydrocarbon saturation to function as significant producing
intervals. Net pay is not only fundamental input into volumetric reserves calculation, but
also for well test analysis. It also significantly impacts reservoir simulation because nonreservoir rock does not need to be characterized in the same way that reservoir rock does.
The objective of this document is to define the process of net-pay estimation so that it can
be easily compared and audited across the OMV group.

5. Determination of net pay

5.1.

Case 1: RCA, SCAL, Log and Test data available, FWL can be estimated
In the ideal case, when all necessary data are available the workflow for net pay estimation
shall look like figure 1a.
-

Dynamically conditioned cut-off values for total porosity and shale volume have to be
derived from routine and special core analyses, in combination with WFT pressuretransient analyses.
Free water level (FWL) has to be derived from WFT, DST or production data.

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Dynamically conditioned cut-offs and FWL shall be applied on log interpretation data in
order to obtain average values of petrophysical properties and net pay thickness of the
intervals of interest.

Pressure test &

production data

RCA & SCAL data

PHIT and Vsh cutoffs
(Dynamically
conditioned)

FWL
Log data

Average PP
properties, Net Pay
Figure 1a. Net pay determination workflow

5.2.

Case 2: RCA, SCAL and Log data available, no information about FWL
In case FWL determination is not possible, water-hydrocarbon contact shall be determined
as hydrocarbon-down-to (HCDT) or water-up-to (WUT), depending on data availability and
reliability. In the cases where no test or production data are available, hydrocarbon-water
contact (HCWC) must be estimated from the available log data. Workflow that shall be
applied in this case is presented in figure 1b.

Production and/or
Log data

RCA & SCAL data

PHIT and Vsh cutoffs
(Dynamically
conditioned)

HCDT, WUT, HCWC

Log data

Average PP
properties, Net Pay
Figure 1b. Net pay determination workflow
-

Dynamically conditioned cut-off values for total porosity and shale volume have to be
derived from routine and special core analyses.
HCDT or WUT should be estimated from test or production data, and if this data are not
available, HCWC must be estimated from the log interpretation data.

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5.3.

Dynamically conditioned cut-offs and HCWC shall be applied on log interpretation data
in order to obtain average values of petrophysical properties and net pay thickness of
the intervals of interest.

Case 3: Log data available, no information about FWL

In case not enough core analysis data are available or the quality is not good, core analysis
cannot be used for dynamically conditioned cut-offs estimation. The best way is to use
local geological knowledge or analogy with the similar reservoirs for the cut-off estimation.
Workflow for this case is presented in figure 1c.
-

Cut-off values for total porosity and shale volume have to be derived based on local
knowledge and/or analogy with the reservoirs with the similar properties.
HCDT or WUT shall be estimated from test or production data, and if this data are not
available, HCWC must be estimated from the log interpretation data.
Cut-offs and HCWC shall be applied on log interpretation data in order to obtain average
values of petrophysical properties and net pay thickness of the intervals of interest.

Production and/or
Log data

Local knowledge,
Analogy
PHIT and Vsh cutoffs

HCDT, WUT, HCWC

Log data

Average PP
properties, Net Pay
Figure 1c. Net pay determination workflow

5.4.

Case 4: Log data available, no analogous or offset reservoir data, no

information about FWL
In rare cases when there is not enough local geological data information for using as
analog with adjacent reservoirs, then a general rule of thumb is to use permeability cut-offs
of 0.1 and 1mD for gas and oil, respectively. Workflow for this case is presented in figure
1d.
-

Cut-off values for total porosity and shale volume have to be derived based on
permeability cut-off rule of thumb 0.1 mD for gas and 1 mD for oil.
- HCDT or WUT shall be estimated from test or production data, and if this data is not
available, HCWC must be estimated from the log interpretation data.
- Cut-offs and HCWC shall be applied on log interpretation data in order to obtain average
values of petrophysical properties and net pay thickness of the intervals of interest.
In this case, since there is no control or calibration of log data either by core data or local
knowledge, cut-off sensitivity analysis has to be introduced.

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Production and/or
Log data

K=0.1 mD for gas

K=1 mD for oil
PHIT and Vsh
cutoffs

HCDT, WUT, HCWC

Log data

Average PP
properties, Net Pay
Figure 1d. Net pay determination workflow

5.5.

Case 5: Thin beds, low resistivity pay

Special case of clastic rock evaluation is low resistivity pay, or thinly laminated shaly-sand
reservoir. These reservoirs are very often misinterpreted as non-reservoir quality rocks, and
hence bypassed pay, so thin bed reservoirs deserve special attention (figure 1e).

RCA & SCAL data

Pressure test &
production data

Log data, ThomasStieber clay typing

PHIT cutoff and/or
Sand count from the
core, high-resolution
or BH image logs

FWL
Log data

Average PP
properties, Net Pay
Figure 1e. Net pay determination workflow
-

Dynamically conditioned cut-off value for total porosity has to be derived from routine
and special core analyses, in combination with WFT pressure-transient analyses.
Thomas Stieber methodology for clay typing should only be applied on intervals with
thin beds of shale and sand.
If net-pay obtained after PHIT cut-off, then NTG must be discounted by the NTG factor
obtained from the sand count, or any other NTG equivalent input.
Net-pay flag is not necessarily suitable for perforation proposal, unless based on high
resolution logs.

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5.6.

Free water level (FWL) has to be derived from WFT, DST or production data.
Dynamically conditioned cut-offs and FWL shall be applied on log interpretation data in
order to obtain average values of petrophysical properties and net pay thickness of the
intervals of interest.

Case 6: Carbonate reservoirs

Simplified workflow for the carbonate reservoir rock dominated by intergranular
transmissibility is presented in figure 1f.

Pressure test &

production data

RCA & SCAL data

PHIT cutoff
(Dynamically
conditioned)

FWL
Log data

Average PP
properties, Net Pay
Figure 1f. Net pay determination workflow
-

The difference in net pay determination for carbonate rocks is that carbonates are
typically not connected with shale content like clastic rocks, so Vsh cut-off does not
apply to carbonate reservoir rocks. Dynamically conditioned cut-off value for total
porosity has to be derived from routine and special core analyses, in combination with
WFT and mini-DST pressure-transient analyses. Basic principles of net pay
determination for cases, when not all necessary data are available, are the same for
carbonate and clastic rocks.
Free water level (FWL) has to be derived from WFT, DST or production data.
Dynamically conditioned cut-offs and FWL shall be applied on log interpretation data in
order to obtain average values of petrophysical properties and net pay thickness of the
intervals of interest.

6. Determination of cut-offs
As already stated there is no single universal approach to the identification of cut-offs. The
key is to examine the data to discover an optimum approach for a particular case. The most
important step is to establish the linkage between a conventional core measurement and a
reference parameter that distinguishes between reservoir and non-reservoir rock.
Parameters that can be quantified through downhole measurements are tied back to the
reference parameter so that a reference parameter cut-off can be related to cut-offs for
properties that can be determined from well log analysis (as described graphically in
figures 1a to 1f). This process is done synergically (i.e. all log-applicable cut-offs are tied
back directly or indirectly to the same reference parameter so that all cut-offs have a
hydraulic significance). So, dynamically conditioned cutoffs are tied back to one or more
parameters that indicate the ability of rock to flow fluid. In Figure 2 is an example of
schematic process for estimation of dynamically conditioned cut-offs.
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Figure 2. (a)- Correspondence of reference and conventional parametric cut-offs for primary

depletion [Worthington 2008]; (b) Correspondence of reference and conventional cut-offs

for Waterflood depletion [Worthington 2008]; (c) Synergic quantification of conventional
cut-offs [Worthington and Cosentino 2005]
Cut-off determination workflow is following:
Specify an evaluation interval in a well.

Select a reference parameter from RCA, SCAL and WFT, such as reservoir quality
indicator, (k/)0.5, for primary depletion or endpoint relative permeability to oil in the
presence of water, kro(Swirr), for waterflood depletion, etc.

Establish any data partitioning for the segregation of (hydraulic) rock types and thence
the reduction of data scatter in analytical crossplots of reservoir parameters.
Identify a value of the appropriate reference parameter [e.g. (k/)0.5; kro(Swirr)] that
corresponds to the lower limit of hydraulic behavior of the rock over a partitioned
fraction of the evaluation interval. Adopt this limiting value as a reference cut-off.
For the partitioned data set for each (hydraulic) rock type, relate the reference cut-off to
a corresponding value of a conventional core analysis parameter such as porosity or
Klinkenberg-corrected air permeability taking due account of scale where feasible.
Adopt this corresponding value as a dynamically-conditioned cut-off.

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Using the principle of synergic cut-offs, relate the dynamically-conditioned cut-off to

corresponding cut-offs of log-derived porosity (where required) and shale volume
fraction, so that both cut-offs become dynamically conditioned.

Apply the cut-offs simultaneously to obtain net pay within the partitioned data set.

Obtain average log-derived porosity and (porosity-weighted) water saturation over the
net pay thickness(es) of each partitioned interval.

Integrate the data from all partitioned intervals to obtain an overall net pay.

The preceding methods have to be varied for certain types of reservoirs. These include thin
bedded reservoirs, discrete stacked reservoirs, naturally fractured reservoirs, etc.
While air permeabilities are generally available in large quantities, permeabilities at in-situ
conditions (rocks saturated with brine and hydrocarbons and compacted at reservoir
conditions) should be used when selecting the permeability cut-off. Air permeability
measurements of high permeability rocks (larger than 100 mD to air) usually overestimate
the effective permeability to oil measured at irreducible connate water saturation at
overburdened conditions by 10 to 30 percent.
Thin bedded reservoirs (low resistivity pay). Sand/shale sequences constitute the biggest
cause of overlooked pay in the world today. The problem is rooted in the inability of
standard logging tools to resolve individual sand laminae. First step in confirming the
presence and predominance of laminated clay and low resistivity pay in thin beds is
Thomas-Stieber clay type analysis. A partial solution is to use an electrical micro imager to
identify the laminae and a tensor resistivity tool to quantify the resistivity of the sands. Note
that laminated reservoirs are unlikely to show the same recovery as an equivalent thickness
of massive sand with same intrinsic properties. This is especially true during flooding
operations, so there is distinction between continuous pay and floodable pay that
emphasizes the dependence of net pay on recovery mechanism.
Discrete stacked reservoirs. Where multiple stacked reservoirs are separated by
intraformational mudstones or shales of equivalent or smaller thickness, the determination
of net pay can use a single set of (dynamically-conditioned) cut-offs and be referred to an
overall gross thickness. However, the concept of a gross evaluation interval breaks down
where stacked reservoir units are separated by very thick mudstones or other impermeable
sediments that are more than an order of magnitude thicker than the reservoir units
themselves. Here, net-to-gross pay will be misleadingly low. Instead, each unit should be
regarded as a discrete reservoir zone and net-to-gross pay should be for each zone at each
well. If the reservoir units are not congenital (i.e. they have been generated by diverse
depositional systems), different sets of cut-offs may be needed for each unit. In any case,
the reservoir units should be mapped separately.
Naturally fractured reservoirs. Natural fractures can serve as regional conduits that
enhance the transmission of fluids to the wellbore from the remote rock volumes within
which Intergranular permeability exercises the major control on fluid flow. Here, the matrix
system can accommodate the potential pay and it may allow flow into a wellbore directly
but the rock is not penetrated by a well so net pay cannot be measured; in contrast, tight
gas layers are penetrated by a well but there is insignificant capability to flow into the
wellbore directly, so measured net pay is zero. A key parameter for naturally fractured
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reservoirs is the ratio of Intergranular transmissibility to fracture transmissibility for a

hydraulic unit. Where this ratio is high, the fractures augment the Intergranular flow and
the net pay concepts, as outlined above, are applicable. In other words, the well log scale is
applicable for net pay evaluation. Where the transmissibility ratio is low, the reservoir
cannot function without fractures that dominate fluid flow. Here, reservoir performance is
governed by the effective scale of the fracture network, and this can be much greater than
the well log scale. Therefore, what can be measured at the wellbore provides only a partial
insight into reservoir performance. On this basis, such a naturally fractured reservoir is
better analysed dynamically at the reservoir scale. Downhole activity reduces to the
imaging of fracture occurrence and sonic response to fracture transmissibility in
conjunction with inflow analysis based on production logs, which is as well beneficial in
guiding completions. Of course, many reservoirs lie between these two extremes. In such
cases, dynamically conditioned net pay concepts should be used alongside fracture
identification: net pay will include intervals that show good intergranular character
regardless of the fracture density. In general, the static volumetric method is likely to be
inadequate as a standalone approach to resource estimation where fracture flow is
significant.
Relationship between permeability and other parameters. The permeability that is most
appropriate to a reservoir situation is unlikely to be the absolute gas permeability. Yet, this
is what is usually available from conventional core analysis. The analysis of mobility or a
(relative) permeability cut-off must be guided by the nature of the data and the intended
application. However, in all cases the aim is to identify a crossover point from inadmissible
to admissible levels of producibility that can be expressed in terms of a cut-off value for a
permeability or mobility parameter. That permeability parameter should be appropriate to
the particular task. It is more likely to be relative permeability to gas or oil at conditions of
irreducible water saturation, perhaps expressed in units of mobility. These data are usually
far more limited than conventional gas permeability measurements. When a (relative)
permeability cut-off has been determined, it must then be related to absolute permeability
for wider application. This philosophy is in accord with the key well concept of calibrating
interpretative methods at well-studied localities. Once a (relative) permeability or mobility
cut-off has been identified, it can be related to Vsh and cut-offs.
Formulation of cut-off criteria
Although there are still differences of perception across the industry concerning the role of
net pay, it has to be accepted that this term and its defining cut-offs must have a dynamic
significance. In other words, cut-offs are used to delineate those intervals through which
hydrocarbons will flow and hence be produced, and they are therefore a function of
permeability distribution. Further requirement that was introduced is that net pay cut-offs
should delineate intervals of commercial producibility. The difficulty here is how to make
this definition workable at the reservoir evaluation stage. Whatever the precise definition of
net pay, the cut-off exercise reduces to one of quantifying a limiting permeability term that
can be expressed in terms of absolute air permeability as measured by conventional core
analysis. In this way, log-derivable cut-offs can be tied back to a (scale-compatible) corederived permeability that is more abundant than any permeability deliverable from special
core analysis. The underlying problem, which has long been recognized, is that it is difficult
to select with assurance a permeability cut-off value.

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7. Definitions
Although there is no universal set of industry wide accepted definitions of those terms that
describe the ability of rock to store and transmit fluids, there are several descriptive terms
that are in fairly widespread use. They are grounded in the volumetric analysis of
hydrocarbon reservoirs using core and log data, and they may or may not be based on tieback to permeability. They all define thicknesses or thickness ratios and they are
interrelated. Gross and net thicknesses and their relations are presented graphically in
figure 3.
-

Gross thickness (Gross rock). Gross thickness is lithological or stratigraphic unit that
represents all rock between top pick and bottom pick of a unit.

Net rock. Net rock comprises that rocks that might have favourable reservoir properties.
Net rock is usually defined as the summation of those intervals for which the shale
content (Vsh) is less or equal than the limiting value (cut-off). The term shale includes
clays and silts (size indicators), clay minerals (compositional indicator, mostly within
the clay fraction) and other detritus, usually of a poorly sorted nature. The parameter
Vsh is log derived; it cannot be measured directly in the laboratory, but it should be
calibrated with the laboratory measurements of grain size distribution, clay mineralogy,
pore throat size distribution, core photographs, etc.

Net reservoir. Net reservoir comprises those net rock intervals that do have favourable
reservoir properties. This condition is usually expressed in terms of log derived
fractional porosity () being greater than or equal to a limiting value (the porosity cutoff). Porosity can be measured downhole and in the laboratory. It is usually tied back to
core permeability so that the net reservoir criterion effectively becomes one of any
porous and permeable rock that is capable of storing and transmitting hydrocarbons.

Net pay. Net pay comprises those net reservoir intervals that do contain potentially
producible hydrocarbons. That means that all net reservoir above the established free
water level (FWL), established hydrocarbon-down-to, water-up-to or water-hydrocarbon
contact estimated from the log measurements (respectively, depending on data
availability and reliability) is considered to be net pay.

Net-to-gross. Net-to-gross is a generic term that encompasses three definitions, all

derived from the above. Generally, it is the ratio of net thickness to gross thickness.
Net-to-gross can be based on net rock, net reservoir or net pay and expressed as net-togross rock, net-to-gross reservoir or net-to-gross pay, respectively. It is important that
the basis for the net criteria be defined.

Free Water Level. Free Water Level is defined as the water level in a reservoir at zero
capillary pressure. Typically, below this depth no hydrocarbon phase is present.

Hydrocarbon-Water Contact. Hydrocarbon-Water contact is defined as depth below

which the water saturation is 100% (exceptions are to be considered for residual
hydrocarbon saturations). The HCWC corresponds to the capillary entry pressure or
displacement pressure.

Total porosity. Total porosity is defined as the ratio of the entire pore space in a rock to
its bulk volume.

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Adoption of definitions. The full adoption of these definitions calls for two co-existing
physical cut-offs: Vsh, and FWL. The above scheme can be adopted in several
different ways. For example, it can be used in static or volumetric mode, where the
cut-offs are used to evaluate hydrocarbons in place, possibly with the subsequent
application of a recovery factor to estimate reserves. Alternatively it can be used in a
dynamic mode, whereby the cut-offs are tied back to another parameter such as
(relative) permeability, which can be included explicitly in the definition of net reservoir.
It is important to note that the definition of cut-offs is intrinsically related to adopted
approach to petrophysical evaluation, i.e. the effective or total porosity model, or some
variation of these. It should be emphasized that shale volume (Vsh) is not necessarily
the same as clay volume (Vcl) obtained as output of probabilistic log analyses like
Quanti.ELAN. As it can be concluded from the above, it is very important that
petrophysical interpretation model, as well as cut-off selection be fit-for-purpose.

Gross Rock

Net Rock

Net Reservoir

Net Pay

Total evaluation
interval

Shale volume
below cut-off
value

Porosity above
cut-off value

Above FWL,
HCWC or HCDT

Below FWL,
HCWC or HCDT

Porosity below
cut-off

Shale volume
above cut-off
value
Figure 3 Interrelationship of net thicknesses

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Cross references
1. Snyder, R.H. A Review of the Concepts and Methodology of Determining Net Pay
SPE 3609 1971
2. Sneider, R.M, Gaynor, G.C. Effective Pay Determination Development Geology
Reference Manual AAPG 1992
3. Steckhan, J. PE Guideline Petrophysical requirement for the initialization of Water
Saturation in Earthmodels Version 1, 22. 06. 2011. OMV E&P Procedure, E.C.2.2.
4. Cobb, W.M., Marek, F.J., - Net Pay Determination for Primary and Waterflood Depletion
Mechanisms SPE 48925 1998
5. Worthington, P.F. Net Pay-What Is It? What Does It Do? How Do We Quantify It? How
Do We Use It? - SPE 123561 2010
6. Worthington, P.F. The Application of Cutoffs in Integrated Reservoir Studies SPE
94528 - 2008
7. Worthington, P.F., Cosentino, L The Role of Cut-offs in Integrated Reservoir Studies
SPE 84387
8. Jensen, J.L., Menke, J.Y. Some Statistical Issues in Selecting Porosity Cutoffs for
Estimating Net Pay Petrophysics, Vol. 47, No. 4 (August 2006)
9. Etris, N., Stewart, B Net-To-Gross CSEG Recorder, November 2002

List of abbreviations
DST Drill Stem Test
ELAN Elemental Analysis
FWL Free Water Level
HCWC Hydrocarbon-Water contact
HCDT Hydrocarbon-Down-To
K Permeability
Kc/o Permeability cut-off
NTG Net-To-Gross
NMR Nuclear Magnetic Resonance
PHIT Total Porosity
PP Petrophysic
RCA Routine Core Analysis
SCAL Special Core Analysis
Swirr Irreducible Water Saturation
Vsh Volume of Shale
Vshc/o Volume of Shale cut-off
Vcl Volume of Clay
WFT Wireline Formation Tester
WUT Water-Up-To
Porosity
c/o Porosity cut-off

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