BC Well Testing & Reporting Requirements

Reservoir Engineering
BC Oil and Gas Commission March 2013

Presentation Outline

1) Drilling & Production Regulations

Pressure Testing Requirements Gas Well Flow Testing Requirements

3) Annual Pressure Surveys

Minimum Test Requirements Annual Pressure Survey Tips Application for Modification What Pools Require Testing This Year?

2) Well Testing & Reporting

Pressure Tests
Test Types PST Survey Report Form Common Questions Wellbore & Formation Gradients Data Quality Test Types Deliverability Test Report Common Questions Clean Up Flows & Underbalanced Drilling

4) Website Orientation
On-line Forms & Tables

Flow Tests

Drilling and Production Regulations

Pressure Test Regulations

4
Section 73 Reservoir Pressure Measurements:
73 (1) Subject to subsection (5), a well permit holder must ensure that the static bottom hole pressure of each completed zone of each of the permit holder's oil or gas wells is measured before initial oil or gas production.
(2) Subject to subsection (6), a well permit holder must ensure that the static bottom hole pressure of each of the permit holder's producing pools and observation wells is measured once every calendar year. (3) A well permit holder must report all static bottom hole pressures and the duration of the resulting shutin period to the commission within 60 days after the date on which the pressures were measured. (4) A well permit holder must ensure that, when static bottom hole pressures are measured, the surveyed wells remain shut-in until the reservoir pressure has been attained in the well bore or until sufficient data are available to permit the calculation of the reservoir pressure and, in the latter case, details of the reservoir pressure calculations are included in the report required under subsection (3). (5) Subsection (1) does not apply with respect to a well completed in an unconventional zone listed in Schedule 2 if the commission has released, under section 17 of the Oil and Gas Activities Act General Regulation, well reports and well data that include a static bottom hole pressure measurement from the same unconventional zone within a 4 km radius measured from the wellhead of the well. (6) Subsection (2) does not apply with respect to a well completed in an unconventional zone listed in Schedule 2.

Pressure Test Regulations Continued

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Schedule 2 Unconventional Zones:
Field
Horn River

Zone Name
Muskwa-Otter Park

Distance (m)
100

Horn River
Helmet Helmet Liard Basin Northern Montney Northern Montney Heritage Altares Town Deep Basin Deep Basin

Evie
Muskwa-Otter Park Evie Besa River Montney Doig Phosphate-Montney Montney Doig Phosphate-Montney Montney Cadomin Nikanassin

100
100 100 100 150 150 150 150 150 150 150

AOF Regulations

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Section 63 Gas Well Tests:
63 (1) Subject to subsection (3), before 6 months have elapsed after a permit holder has first placed a gas well on production, the permit holder must flow test the well and determine the absolute open flow potential if (a) the well is producing from a pool with suspected water drive, or (b) the well is classified as an exploratory outpost well or exploratory wildcat well. (2) A permit holder must submit to the commission, within 60 days of the date on which the operation concluded, a detailed report of (a) any gas well flow test, (b) any cleanup flow that results in burnable gas to the surface, and (c) any underbalanced drilling that results in burnable gas to the surface. (3) Subsection (1) does not apply with respect to a well completed in an unconventional zone listed in Schedule 2.

Well Testing and Reporting Pressure Tests

PST Test Types

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Static Gradient (SG)
requires sufficient shut-in time recommend leaving gauges on bottom stop for 30-60 minutes to verify stable pressure

Acoustic Well Sound (AWS)

used on oil wells may be single or multi shot (to confirm static conditions or as build-up)

Cullender & Smith (CS)

surface pressure measurements valid for dry gas wells not accepted for initial pressure

Diagnostic Fracture Fall-Off (DFFO)

performed under injection conditions often requires pressure transient analysis (PTA)

Pressure Gauge (PG)

bottom hole pressure measurements build-up or fall-off tests often requires pressure transient analysis (PTA)

Drill Stem Test (DST)

okay for initial pressure if valid

Reservoir Pressure Survey Test (PST) Report Form

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Each pressure test submitted requires a completed PST Report form
download form and instructions off the OGC website

A complete PST package should include: raw pressure data

PTA analysis (where reqd) details of all reservoir pressure calculations including extrapolations, assumptions, etc.

Common PST Questions/Errors

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Shut-in time must be reported! If SI time not listed on wireline report, please determine. N/A or EXT are not valid SI times! Only require one (complete) hardcopy of each PST package to be submitted to the Victoria office. If a SG immediately follows a build-up test, it is not necessary to submit two PST summary forms. All data can be included on one PST form. Its not necessary to extrapolate pressure data from recorder RD to MPP, but its ok if you do. For directional or horizontal wells, please report run depths in true vertical depth (TVD). Watch the depth units... TVD or MD depths are often misquoted on wireline reports. Please use the Comments box on the PST Summary Form to convey additional information which is useful in understanding the data.

The BC Way
OGC does not use a defined maximum rate of pressure increase (kPa/hr) in its determination of a stabilized pressure test. OGC does not define the required length of shut-in time for pressure tests.

Wellbore & Formation Gradients

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Typical Fluid Gradients Gas: Oil: Water: 0.02 2.5 kPa/m 5.2 8.5 kPa/m 9.8 12.5 kPa/m

6 5

** Please report gradients that are representative of the actual fluid!

Non-Representative Wellbore Gradients

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Example #1 - Gas reservoir with non-representative wellbore gradient: When a change in gradient data is seen on a SG test, it is often indicative of a liquid level encountered in the wellbore. However this gradient information may not be not be representative of the liquid, as in this example. In this case, use best judgement to determine the type of liquid (utilizing production data, test notes, history of well, etc) and report the appropriate gradient as the wellbore gradient on the PST summary form.

For example, water would be ~ 9.8 kPa/m and oil estimated with 7.5 kPa/m.
However, be careful of Bottom-Up static gradient tests as these can report odd gradient data on the bottom stop. Remember to re-calculate LL based on the appropriate gradients.

Uncertain Formation Gradients

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Example #1 - Gas reservoir but no gas gradient seen on SG test:

Formation gradients represent the primary produced fluid (gas, oil) from a zone. Although not directly measured, SG data collected within the wellbore can often be used to determine the formation gradient.

To estimate a formation gradient where wellbore gradient data is not representative of the formation fluid (as in this example):
1) Use previous well test data if available

2) Use offsetting well data from the same pool, or

3) For gas formations, use data from the Estimated Gas Gradients by Pressure Range Table (available on our website). For oil wells, assume 7.5kPa/m.

Data Quality

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Pressures are used for pool mapping, well classification, and reserves. The 2012 Regulation changes for the unconventional areas greatly reduces pressure testing requirements. Quality of testing is replacing quantity. Accurate testing and reporting is important. Collecting quality data is our goal.

Well Testing and Reporting Flow Tests

AOF Test Types

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Single Point (SP) Flow after Flow (FAF)

Multi Point (MP)

Clean Up (CU)*

4 Point Modified Isochronal (FMPI)

Under Balanced Drilling*

Well Deliverability Test Report Form

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Each stand-alone flow test
submitted requires a completed Well Deliverability Test Report form
download form and instructions off the OGC website

A complete package should

include:
complete set of field notes (or daily
production notes for in-line tests) AOF calculations (for exploratory and water drive wells only) Sandface & Wellhead Extended & Stabilized Rates gas analysis raw pressure data PTA analysis (where reqd) completed PST report form

Common AOF Questions/Errors

18

AOF tests are for gas wells only and only if the well is producing from a pool with suspected waterdrive or for wells classified as Exploratory Outpost or Exploratory Wildcat. An AOF test is required within six months of a well being placed on initial production. That does not (necessarily) mean within six producing months. Once a well reports initial production, the clock is running. In-line flow testing acceptable, avoids flaring. If submitting an in-line flow test, please report only recent cumulative production for zone. Please indicate if gas produced during test was flared or conserved by checking the appropriate box on the Deliverability form! Single point tests acceptable, prefer multi-point For low productivity zones, typically < 20 e3m3/d, then wellhead AOF only is sufficient. Remember to include a copy of the field notes (or corresponding production data for in-line flows) Must report all well deliverability tests.

Clean-Up Flows

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For stand-alone clean-up flows where gas flaring occurs,

report volumes and rates on Deliverability form, noting it as a CU TEST TYPE

If clean-up is immediately prior to and part of AOF test, do not

submit separate Deliverability form. Simply include clean up volumes and report rates as a CU RATE

Underbalanced Drilling

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For underbalanced drilling with significant gas flaring, please

submit a copy of the drilling field notes and a Deliverability Report Form indicating test type as UBD.

On the form note only the NET gas rates and volumes
produced during drilling.

Annual Pool Pressure Survey

Minimum Annual Pressure Test Requirements

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Minimum number of annual pressure tests for a(n):

Gas Pool =

25% of total wells in pool or, 50% of producing wells (whichever is less)

Oil Pool = 25% of producing wells in pool

*These percentages represent a policy guideline only. In some cases a lesser number of tests may be adequate, and staff may be consulted on individual cases.

*Unconventional wells in Schedule 2 areas do not require annual pressure testing.

*For all other pools, the OGC rounds up to the next whole number when calculating the minimum number of pressure tests required. This means that single well pools need to be tested annually unless otherwise approved.

Annual Pressure Survey Tips

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Select wells that offer good pool coverage. Plant shutdowns are an excellent time to collect annual pressure survey data, often facilitating adequate SI time and no lost production. Suspended wells are also good test candidates. Annual testing applies within the calendar year.

Initial pressure tests for development wells can be applied to the minimum annual pool testing requirements.
The OGC may order additional tests other than the outlined minimum.

Modification of Initial or Annual Pool Pressure Test Requirements

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Where adequate pressure history exists, wells have low productivity, and/or there are few remaining reserves in a pool, exemption from initial pressure testing or annual pressure testing of a pool may be granted. The assigned coordinating operator of a pool may apply to have the annual pressure testing requirement modified for that pool. A list of assigned coordinating operators is available on our website. A modified testing interval of two or more years, or a total exemption, may be granted. The operator must provide sufficient information to substantiate their request for modification. An application guideline is available on our website as a reference.

What Pools Require Testing This Year?

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Is the pool producing? no
Pressure survey NOT required.

yes
Is the pool listed in: Pools with Non-Annual Pressure Survey Approval (Table 1)*?
(* available from the OGC website)

no

yes
Table will specify either: a) the frequency of testing & which calendar year the next tests are due or, b) that the pool is exempt from annual pressure testing.

Annual pressure survey required.

Pools with Non-Annual Pressure Survey Approval (Table 1)

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This image is page 1 of 5. Please see our website for the complete table.

Coordinating Operators (Table 2)

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Coordinating Operators have been assigned to certain large multioperator pools for the purpose of assisting in the collection of annual pressure survey data. These operators draft the testing schedule for the pools but individual operators are still responsible for ensuring testing requirements are met. This table can be found on our website.

Website Orientation

http://www.bcogc.ca/

Questions?
Please contact: Melanie

McKinnon

Well Test Analyst

(250) 419-4433

melanie.mckinnon@bcogc.ca

or visit

www.bcogc.ca