Extreme's engineers excel at evaluating and optimizing coalbed methane
reservoirs. We believe strongly in the value of reservoir description.
Geological, and engineering data are integrated into a consistent
interpretation of the coal.
Key Benefits
Understanding structure is key to understanding well performance.
Coals are easily damaged by drilling and completions. Preventing this
damage increases reserves.
Optimizing surface facilities is extremely important in maximizing
production economics.
Capabilities
Reservoir Model Development
RockWorks is used to build three dimensional solid models of the
coal reservoirs using the available geological, and engineering data.
Three dimensional visualization is important to the development of
meaningful reservoir descriptions. Slope vectors are used to predict gas and
water flow potential. Structural derivatives are used to identify major
migration pathways.
Drilling and Completion Design
Experience is combined with theory to constantly identify potential
problems and develop improvements in procedures and designs to minimize
drilling and completion damage and maximize production and reserve recovery.
Permitting
Preparation of Applications for Permits to Drill and coordination with
the Oil and Gas Commission, State Land Board, Department of Environmental
Quality, State Engineer's Office and the Bureau of Land Management,
Completion Reports, Vacuum System Permitting, and Sundry Notices.
Flowline and Compression
The flowline designs are critical in CBM due to the low pressures and
low flow rates. Pressure drops are critical to production rates and reserve
recovery. Water buildup in flowlines is very detrimental to efficient
operation. Installation of vacuum recovery systems is essential to
maximizing reservoir recovery.
Property Valuation
Coalbed properties are frequently considered for acquisitions. Accurate
projections of production potential, operating costs, and cash flows are
essential to obtaining financing and closing an equitable deal. Both Proved
Undeveloped and Proved Developed Producing Reserves are calculated in
accordance with lending institution's requirements and industry-accepted
standards, providing cash flow projections monthly for the first year, and
annually after that, with estimations of net present value.
Example Projects
Production Performance Analysis
A statistical study of the ultimate reserves potential revealed
sensitivity of the well location relative to existing older wells, as well
as to under-ream diameter, and enhancement treatment parameters. These
factors limited recovery in many wells to less than 50% of the gas-in-place.
Recognition of the sensitivity allowed optimization of location selection,
and completion procedures to increase recovery to over 80%.
Property Evaluation
Projection of production rates and historical operating costs enabled
cash flow calculations. Recognition of water handling as a variable cost
enabled lower costs to be used in future operations as dewatering
progressed. This hastened the payouts of wells and enabled back-in revenue
to be realized earlier than expected, maximizing the property valuations.
Reserves Study and Location Selection
Undeveloped reserves are calculated volumetrically, assuming recovery
factors. The use of structural modeling enabled projection of dewatering,
and updip gas migration. Structural derivatives predicted the presence of
natural fracture systems that enhanced gas flow. The projection of these
factors enabled location evaluation and high-grading, eliminating
approximately one-third of the locations that were not expected to produce
economic quantities of gas, even though volumetric calculations looked good.
Vacuum Blower Protest
A study was performed to demonstrate to the Oil and Gas Conservation
Commission the damage that an offset operator's vacuum installation would
cause. The results of the study demonstrated the benefit of vacuum
installation and convinced the client to drop the protest and install his
own vacuum system. The system resulted in nearly 50% increase in recoverable
reserves.
Production Facilities Optimization
A study was performed on a network of gas flow lines going to a POD. It
indicated a high degree of water holdup causing nearly 15% decrease in
production rates.
Inc.
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