Mike Cronin716 479 2722

mbc5043@psu.edu

Zach Fidurko716 378 5970

zmf5005@psu.edu

Matt Minemier814-222-1854

mtm5097@psu.edu

Naser Saleh814-441-1599

nbs5043@psu.edu

Pure Energy Consultants, LLC

East Resources Texas Creek Oriskany Sandstone Reservoir Characterization: Update (Nov 18th, 2010)

Recap: Development Plan

Blk = Wells in PlaceRed = Phase 1 Wells: Data Acquisition and ProductionWht = Phase 2 Wells: Conditional on Phase 1, Part In-Field and Part Exploratory.

Volume of Recoverable Gas Per Block (SCF), North Up. Circle Area Denotes Drainage Area (120 acres for Future Wells).

Graham #2

OverviewAccomplished:

-Finished Calculations for Vertical Well Directional, Horizontal Well

- Cement calculations

- Mud design

- Casing design

- Bit selection

Predicting Fracture Gradient

• After PNG 450 NotesFracture Pressure (EQ. 5.25):

Po = Overburden Pressure (0.9 to 1.0 psi/ft)Pr = Pore Pressure (Measurable with a formation tester)α = Constant, approximately 0.5

Equation obtained from John T. Dewan, “Essentials of Modern Open-Hole Log Interpretation.”

0

1000

2000

3000

4000

5000

6000

7000

8000

0 1000 2000 3000 4000 5000 6000 7000 8000

De

pth

(TV

D)

Pressure (psia)Pore Pressure and Fracture Pressure

Pore Pressure

Ben Eaton Fracture

Hubbert & Willis Min

Hubbert & Willis Max

EQ 5.25

Field Mud Pressure

Pore Pressure and Fracture Gradient

0

1000

2000

3000

4000

5000

6000

7000

8000

0 5 10 15 20 25

De

pth

(TV

D)

Equivalent Mud Weight (PPG)

Pore Pressure and Fracture Pressure EMW

Pore Pressure

Ben Eaton Fracture

Hubbert & Willis MinHubbert & Willis Max

Open Hole

9-5/8”

7”

16-20”

Air Till Kickoff Point

Fresh Water Mud to TD

6000

6500

7000

7500

8000

8500

9000

2228000 2230000 2232000 2234000 2236000 2238000 2240000

De

pth

(ft

KB

)X Coordinate

Graham 2 Delciotto 1 Delciotto 2 Shepard 1

Tully Limestone

Hamilton Shale

Marcellus Shale

Needmore Shale

Onondaga Limestone

Oriskany SS

Oriskany TD

Formation Top Bottom Thickness

Sand/Shale/Silstone 0 2640 2640

Shale 2640 6133 3493

Tully Limestone 6133 6262 129

Hamilton Shale 6262 7248 986

Marcellus Shale 7248 7482 234

Needmore Shale 7482 7533 51

Onondaga Limestone 7533 7602 69

Oriskany SS 7602 7671 69

Top: Graham # 2 Formation Tops from East Resources Completion Reports.

Left: Formation Tops in Texas Creek.

Generalizing Well Development:

-Key Formations Identified

-Relate to KOP, Maximum

Inclination, Loss Additives, TD, etc.

0

1000

2000

3000

4000

5000

6000

7000

8000

0 500 1000

Vertical

Vertical Well

-TD = 7500’-MD = 7500’

Drilling Plan:

Use Air and Hammer Bit down to ~6000’.

Switch to Fresh Water Mud and PDC Bit to TD.

Mud up in preparation for Marcellus and Oriskany.

0

1000

2000

3000

4000

5000

6000

7000

8000

0 500 1000Directional

13

20

ft

660’

66

0’

TD = 7500’ KB

Directional Well

40 acre plot, well head at NW corner, target at center.

Well trajectory, looking NE.

KOP = 1300’

R1 = 450’α1 = 12.7o/100’LBC = 157’

LCD = 2571’θ = 20o

DO = 3870’

R2 = 450’α2 = 12.7o/100’LDE = 157’

TD = 7500’ / MD = 7661’

A

B

C

D

E

F

Symmetric Build Hold and Drop ‘S’ Well

-TD = 7500’-MD = 7661’-Horz. Departure = 933’

Directional WellROB1 = 12.7deg/100’ ROB2 = 12.7 deg/100’ Max Inclination = 8.65 degKOP = 1300’ DO = 2301’ TD = 7500’

0

1000

2000

3000

4000

5000

6000

7000

8000

0 5 10 15 20 25

De

pth

(TV

D)

Equivalent Mud Weight (PPG)Pore Pressure and Fracture Pressure EMW

Pore Pressure

Ben Eaton Fracture

Hubbert & Willis Min

Hubbert & Willis Max

Field Mud Pressure

0

1000

2000

3000

4000

5000

6000

7000

8000

0 1000 2000 3000 4000Horizontal

KOP = 6680’

Horizontal Well

R1 = 820’

α = 7o/100’

A

B

C D

KOP = 6680’

Horizontal Departure = 3820’

Horizontal Length = 3000’

L CD = 3000’L BC = 1286’ Planar View of Well Trajectory.

TD = 7500’MD = 10966’

Horizontal WellROB = 7deg/100’KOP = 6680’TD = 7500

0

1000

2000

3000

4000

5000

6000

7000

8000

0 5 10 15 20 25

De

pth

(TV

D)

Equivalent Mud Weight (PPG)Pore Pressure and Fracture Pressure EMW

Pore PressureBen Eaton FractureHubbert & Willis Min

Mud DesignDepth (MD) Mud Weight (lb/g)

0-4716 air

4716 9 KOP

6497 9.1

6831 14.2

7165 13.5

7490 14.2

7490 14.3 Sting Run

7490 15.3

7508 15.5

7653 15.7

7673 15.8

East Resources Graham II data

Mud

Horizontal

Depth (ft) Capacity (bbls)

KOP (6680) 446

Landing Pt (7966) 493

TD (10966) 602 http://www.petroleumonline.com/content/overview.asp?mod=4

• Water based drilling mud – less expensive, Most common in Appalachian • Lost circulation control – controls lost mud in high permeability sandstone,

prevents mud cakes (e.g. Nut shell)

Vertical

Depth (ft) Capacity (bbls)

TVD (7500) 526

Directional

Depth (ft) Capacity (bbls)

KOP (1300) 116.98

TD (7660) 552.1

Hammer Time

ITEM OD & #/ft. LENGTH

Bit 12-1/4" 1.20

Hammer 5.65

Shock Sub 12.14

DC 8" 58.58

Bell Sub 2.76

DC 6" 269.68

XO 1.24

ITEM OD & #/ft. LENGTH

Bit 12-1/4" 1.00

Hammer 5.67

Shocksub 12.18

BHS 2.68

DC 8" 59.14

Bell Sub 2.07

DC 6" 177.33

XO 1.27

Bit Selection

• Reservoir formation

• Why chose a PDC bit?

• How effective is a PDC bit?

Economics Analysis

• The Economic advantage of a PDC bit.

– Save time and money.

– Has more uses.

– Help increase profit.

– AFE

Economic Analysis

ROP DelCiotto #1

Days

0

4.189189 1

2

3

4

59.72973 5

6

7

8

9

10

11

64.35135 12

64.35135

13

29.7027 14

29.7027 15

Graham

days

n/a 0

n/a 1

80.37037 2

n/a 3

n/a 4

n/a 5

n/a 6

n/a 7

23.46218 8

n/a

23.36402 9

n/a

23.36402 10

n/a

23.36402 11

n/a

23.36402 12

n/a

n/a 13

49.42529

n/a 14

21.088 15

n/a 16

n/a 17

n/a 18

n/a 19

18 20

4.5

3.142857 21

n/a

n/a 22

6.333333

8.740741 23

6.785714

8.740741 24

6.785714

ROPDelCiotto

#2

Days

0

54.58537 1

54.58537 2

3

54.58537

4

54.58537

5

54.58537

6

78.10448

78.10448 7

8

78.10448

9

78.10448

10

78.10448

11

78.10448

12

78.10448

28.54936 13

78.10448

28.54936 14

78.10448

28.54936 15

4.59375 16

• Information taken from the Daily reports for:• DelCiotto #1• DelCiotto #2• DelCiotto #3

Casing Details

Casing Strength

Casing Weight Diameter Burst (psi) Collapse (psi) Tensile (lb/ft)

36 # 9-5/8" 3520 2020 3636428

23 # 7" 5280 3270 3636428

10.5 # 4-1/2" 6081 4010 3636428

43.5 # 9-5/8" 8700 4419 830401

26 # 7" 9955 5900 830401

13.5 # 4-1/2" 16275 10670 830401

J-55

P110

TensileCollapseBurst

Cementhttp://loga.la/haynesville-shale-news/?p=361

• Class A cement for all casing strings• Cement goes to surface for all strings• Pump 50% excess to account for fluid lost• Common Additives:

• Bentonite- Increases viscosity, lowers slurry density, decreases cost• Cement retarder- Reduces cement setting time (Calcium lignosulfonate)• Lost circulation- Prevents loss of cement into formation

• Yield is 1.17 cuft/sack

Directional

Casing Weight Capacity (bbls) Sacks

9-5/8" 43.5 # 77.097 370

7" 26 # 73.01 350.4

Horizontal

Casing Weight Capacity (bbls) Sacks

9-5/8" 43.5 # 69.72 334

7" 26 # 28.2 135.5

4-1/2" 13.5 # 195 937

Vertical

Casing Weight Capacity (bbls) Sacks

9-5/8" 43.5 # 69.72 334

7" 26 # 169 559