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yAAPL June 2007
Horizontal Drilling in the
Barnett Shale Andrée French Griffin
Manager of Geology
Fort Worth Basin
XTO Energy
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yAAPL June 2007
Play Overview• Current activity – number of wells, production, the “feeding frenzy” is on!
Geological history of the Fort Worth Basin
Horizontal Drilling• Why does horizontal drilling work in the Barnett
• A geologist’s view of “how they do that!”
The other tools used to make the play economic• Induced Frac technology
• Seismic
Conclusions
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yLargest ‘Shale Gas Field’ in N. America
Low Risk
GAS-IN-PLACE (GIP) 150 BCF/640 acres
‘Unconventional’ resource play Covers 15 counties 6,445 producing wells Producing 2.2 Bcf/d (66 Bcf/month) 2.66 Tcf of gas produced (Nov 2006)
Huge upside potential - 26 TCF (USGS Estimate)
Large resource – low recovery
82% of current production from Core area
Take away capacity is expanding rapidly
Source: IHS current thru Nov 2006
Fort WorthWeatherford
Cleburne
WISE DENTON
PARKER TARRANT
HOOD JOHNSON
HILL35 wells
Ouachita Thrust Front
DALLAS
TIER 1
SOMERVELL
CORE~ 82% of current production
1790 wells950 BCF
2067 wells804 BCF
1005 wells440 BCF
450 wells62 BCF
136 wells20 BCF
9 wells.7 Bcf
4 wells0.15 Bcf
3.5 BcfBOSQUE
717 wells238 BCF
ERATH51 wells2.4 Bcf
TIER 2
Long-Term
Downspacing
COUNTYWells Cum. Bcf
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yXTO Energy: At Home in the Barnett Shale
Net acreage: 265,000 gross (~ 214,000 net)
Plan to drill 280 - 300 wells in 2007
Producing wells:
180 vertical
420 horizontal
95% of acreage covered by 3-D seismic by mid '07
Active drilling rigs: 24 rigs
19 in CORE
4-5 in Tier 1
1 in Tier 2
2007 drilling inventory:
1,800 - 2,000 wells
Still acquiring acreage and pursuing acquisitions
XTO acreage
Fort WorthWeatherford
WISE DENTON
PARKER TARRANT
HOOD JOHNSON
HILL Ouachita Thrust Front
DALLAS
SOMERVELL
BOSQUE
JACK
Cleburne
CORE110,000 acres(94,000 net)
TIER 176,000 acres(61,000 net)
TIER 279,000 acres(59,000 net)
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Wells Drilled per Year
0
500
1000
1500
2000
2500
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
Year
# D
rill
ed
Wells Drilled
Feeding Frenzy!
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yThe Feeding Frenzy is on!
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 20080
20,000,000
40,000,000
60,000,000
80,000,000
NEWARK EAST
Time - Years
Pro
du
cti
on
Ra
tes
- M
CF
PM
Oil Production (bbl)Gas Production (mcf)Water Production (bbl)
2,664,411,669 mcf8,227,873 bbl
Oil Production (bbl)Gas Production (mcf)Water Production (bbl)
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yAAPL June 2007
Play Overview• Current activity – number of wells, production, the “feeding frenzy” is on!
Geological history of the Fort Worth Basin
Horizontal Drilling• Why does horizontal drilling work in the Barnett
• A geologist’s view of “how they do that!”
The other tools used to make the play economic• Seismic
• Induced Frac technology
Conclusions
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yGeology Overview
It is Mississippian-aged -345 mya
Organic-rich shale -contains a bunch of dead critters that when broken down form oil and gas
Continuous and thick - covering the entire Fort Worth Basin - average thickness 350’
It is a known hydrocarbon producer
It is not the same everywhere!
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y Formation of the Fort Worth Basin
Geological History
Deep Ocean – 345 MYA
Deep Subduction zone forms
Land mass approaches from SE, volcanoes
Basin Fills
Mountains in East Texas!! – 300 MYA
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y Mississippian Deposition – 345 MYA
From Ron Blakely Paleogography of North America 2005
http://jan.ucc.nau.edu/~rcb7/nam.html
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y Early Mississippian – FW Basin
Deep
basin
From Ron Blakely Paleogography of North America 2005
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ySubduction Zone
Northwest
Texas is under water!
Southeast
The Gulf is not the same!
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yLate Mississippian 325 MYA
From Ron Blakely Paleogography of North America 2005
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yEarly Pennsylvanian - 315
From Ron Blakely Paleogography of North America 2005
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yLate Pennsylvanian – 300 MY
From Ron Blakely Paleogography of North America 2005
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yAAPL June 2007
Play Overview
Geological history of the Fort Worth Basin
Horizontal Drilling• Why does horizontal drilling work in the Barnett
• A geologists view of “how they do that!”
The other tools used to make the play economic• Seismic
• Induced Frac technology
Conclusions
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yAAPL June 2007
Horizontal Drill is Effective in the Barnett
Geological reasons• Exposes the wellbore to more surface area
• Barnett thickness is about right ~350’ thick
• Intercepts natural fractures? – Austin Chalk Model
• Intercepts artificially induced fractures and hopefully reopens natural healed system
• Avoids karst and faults…not always true.
Cultural reasons• Allows for drilling under city, lakes, parks, schools . . .
• Multiple wells off of one pad – competition with developers is tough!
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yApplications Of Directional
DrillingDefinition of Directional Drilling:
Directional drilling is the science of directing a wellbore along a predetermined trajectory to intersect a designated sub-surface target
But How do they do it?
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yIt is not new!
Long Beach CA., Shoreline Drilling (1930’s)
First Openhole Single Shot Survey, Long Beach, CA.
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yReference Systems and
CoordinatesHow do you know where the wellbore is?Depth Reference
• Measured Depth• True Vertical Depth
Inclination Reference• Vertical Reference
Direction Measurement• Azimuth Reference• Quadrant Bearings
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Fixed Angle Build Motor
The right BHA is Important
Drill string
Collars
Mud motor – determines build rate
Bit
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Azimuth (Hole Direction)– The azimuth - the direction of the
borehole on the horizontal plane, measured as a clockwise angle (0°- 360°) from the North reference.
– All magnetic tools give readings referenced to Magnetic North; however, the final calculated coordinates are referenced to either True North or Grid North.
Azimuth - Degrees from North to High Side (Horizontal Plane)
N
S Azimuth
W E
Reference Systems and Coordinates
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Directional Control Methods Oriented Mode – Sliding
Inclination – magnetic tools in BHA
Wellpath
– Controlled curvature
– Controlled direction
– No drill string rotation
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Directional Control Methods Rotary Mode - Rotating
Wellpath
– Behavior same as a rotary drilling assembly
– Hole slightly over size
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Intercepts natural fractures Pilot hole Opposing laterals
Applications of Directional Drilling
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Shoreline drilling
Applications of Directional Drilling
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Re-entry/Multi-lateral wells – our future??
Applications of Directional Drilling
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yAAPL June 2007
Horizontal Urban Drilling Multiple wells off of one pad
• Reduces foot print
• Reduces influence on neighbors
• Centralizes facilities
• Centralizes pipeline access and reduces number of ROW
Complications
• Creates shallow drilling hazards
• Many landowners do not own minerals
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Inaccessible locations
Applications Of Directional Drilling
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yCity Limits and the Core
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yCurrent Pad – 4 wells
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yCurrent wells – 3 wells & 1 infill
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y40 acre infill – 6 wells
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y20 acre development – 10 wells
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Let’s Look inside a Horizontal Wellbore
AAPL June 2007
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HEALED FRACTUREOPEN FRACTURE
BARNETT SHALENEWARK EAST FIELD
PARKER CO., TX
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HEALED FRACTUREOPEN FRACTURE
BARNETT SHALENEWARK EAST FIELD
PARKER CO., TX
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yPlay Overview
The tools used to make the play economic
Horizontal Drilling
Frac technology gets the gas out
Seismic identifies geohazards
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Barnett Shale – New Technology Horizontal Drill & Frac
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Wellbore azimuth 0Longitudinal fractures
Surface
Reservoir
Vertical Stress
Transverse fracturesWellbore azimuth
Longitudinal fractures
Surface
Reservoir
Minimum horizontal stress
Vertical Stress
Maximum horizontal stress
Wellbore azimuth 90Transverse fractures
Wellbore azimuth 0Longitudinal fractures
Surface
Reservoir
Vertical Stress
Transverse fracturesWellbore azimuth
Longitudinal fractures
Surface
Reservoir
Minimum horizontal stress
Vertical Stress
Maximum horizontal stress
Wellbore azimuth 90Transverse fractures
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yBarnett Wellbore Schematic
Stage 4
Stage 5
3 – 5 Stages of fracs starting at “toe”Typical frac: 18,000 BW & 400,000 lbs. sand per stage
Stage 3
Stage 2
Stage 1
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yPlay Overview
The tools used to make the play economic
Horizontal Drilling
Frac technology gets the gas out
Seismic identifies geohazards• Faults
• Karsts
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THE EXPLOSIVES PRODUCE THE SOUND WAVES,WHICH THEN BOUNCE BACK FROM THE LAYERS
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y It’s not my fault that the rock is broken.
It’s a Fault!High & thick!
Gone!
Low?
Low and Thin?!?
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yVR Crossline 106
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yVR Crossline 106
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0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
PetraSeis <Arb-Line 0> Survey: Cleburne_3d Volume: TMIG 05/22/07 21:04:27
Normal Polarity Gain 60 7.50 IPS 24.00 TPI
10911571
11111572
11311573
11511574
11711574
11911575
12111576
12311577
12511578
12711579
12911580
13111580
13311581
13511582
13711583
13911584
14111585
14311585
14511586
400’ fault
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y Karst, fancy “geo-term” for Sink Hole
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0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
1.5
SWJ_BBRNT
SWJ_MRBL
PetraSeis <Arb-Line 0> Survey: Cleburne_3d Volume: TMIG 05/24/07 17:08:08
Normal Polarity Gain 60 7.50 IPS 24.00 TPI
10881785
11081784
11281784
11481783
11681783
11881782
12081781
12281781
12481780
12681780
12881779
13081778
13281778
13481777
13681777
13881776
14081775
14281775
14481774
14681774
1800’
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yPlay Summary
Industry is still on the learning curve
The play is evolving technically and economically
Horizontal drilling and improved frac techniques are expanding the play to the south and west
XTO leasing strategy based on geology and maturation
XTO drilling is based on geology and seismic
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yConclusions I
“The only true wisdom is in knowing you know nothing.” –
Socrates
. . . Feeling fairly wise!
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yConclusion II
. . . “Without the whole group, we know even less.” AFG
• Businesses/Ranchers/Landowners
• Commercial/Residential Developers
• Cities and Municipalities
• Landmen and Brokers
• Geologists
• Engineers
• Geophysics
• So many others!
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•The Barnett is complex
•Frac technology moves the gas
•Seismic helps steer away from Karsts and Faults
•Horizontal drilling
•Allows for better well placement in the section
•More exposure to rock
•Avoid culture
•The play is logistically intensive – a Real Group effort!!
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yAAPL June 2007
Many Thanks to:
XTO Energy
• Mark Pospisil – VP Geology & Geophysics
• Operational Group
− Jacky Brown, Jimmy Hasley & Terry Henderson
LEAM Drilling Systems
• Matt Anding & Dan Fox
AAPL – for allowing me to give my two cents worth – or less!
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