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WATER DRIVE WET GAS RESERVOIR Reservoir Properties Initial Pressure 3000 psia Temperature 120 oF A 4500 acres h 20 ft. Porosity 15 % Swi 25 % Depth 6000 ft. rw 6 in. Tubing ID 2.441 in. Aquifer Properties Size Infinite φ 20 % h 50 ft. ct 7.0E-06 1/psi μ 1 cp k 50 md α 360 O PRODUCTION FACILITIES SEPARATORS OPTIONS Option 1 High Pressure Low Pressure Storage Units Separator Separator Tank Pressure 650 100 15 psig Gas Rate 25000 2250 250 Mcfd Gas Gravity 0.6 0.67 0.85 Liquid Rate 1100 STB/D Liquid Gravity 49 o API Option 2 High Pressure Low Pressure Storage Units Separator Separator Tank Pressure 800 100 15 psig Gas Rate 24375 2500 625 Mcfd Gas Gravity 0.6 0.65 0.8 Liquid Rate 1100 STB/D Liquid Gravity 50 o API PRODUCTION DATA High Pressure Separator Production Rate 25 MMcfd Constant Separator Conditions Option 1 Reservoir Pressure after 182.5 days 2843.0 Psia Reservoir Pressure after 365 days 2720.0 Psia WELL TESTS Pre-Stimulation Time, hrs. Pressure, psia q, Mcfd 0 3000 0 0.02 2970 1000 0.04 2940 1000 0.06 2925 1000 0.08 2911 1000 0.1 2900 1000 0.2 2884 1000 0.5 2871 1000 1 2863 1000 2 2848 1000 3 2842 1000 4 2838 1000 5 2835 1000 6 2832 1000 8 2828 1000 10 2825 1000 12 2823 1000 18 2817 1000 24 2813 1000 48 3000 0 48.02 2950 2000 48.04 2900 2000 48.06 2849 2000 48.08 2825 2000 48.1 2799 2000 48.2 2770 2000 48.5 2735 2000 49 2715 2000 50 2679 2000 51 2668 2000 52 2659 2000 53 2653 2000 54 2648 2000 56 2639 2000 58 2633 2000 60 2628 2000 66 2616 2000 72 2608 2000 CONTRACT Option Rate MMcfd Duration Years 6 Rate MMcfd Duration Years 1 2 20 25 3 15 3 Line Pressure 600 psia ECONIMIC DATA Vertical Well Drilling $200,000 per well Esclates 10% per year Vertical Well Completion $50,000 per well Esclates 10% per year Stimulation Costs $150,000 Esclates 10% per year Horizontal Well Drilling - 3000' $600,000 per well Esclates 10% per year Horizontal Well Completion $75,000 per well Esclates 10% per year Gas Price $3,000.0 per MMcf Liquid Price $45.00 per STB Constant Taxes and Royalties 35% Constant Operating Expenses $300.00 per well/month Esclates 10% per year Annual Discount Rate 5.00% Compressor $500 per day for Bhp = 350 Esclates 10% per year $800 per day for Bhp = 700 Esclates 10% per year      OPTIONS CONTRACT OPTIONS: 1 AND 2 SEPARATOR OPTION: 1 AND 2 COMPRESSOR OPTIONS FOR LOW PRESSURE SEPARATOR GAS: YES, NO STIMULATION OPTION: ALL OR NONE WELL OPTION: VERTICAL VS. HORIZONTAL  CASES: 25 32 ECONOMIC ANALYSIS NET PRESENT VALUE C 1 1r t  number of years T  total number of years Ct NetCashFlowforyeart Io InitialInvestment r  Annual Discount Rate T NPV t tI 0 ECONOMIC CALCULATIONS GROSSANNUALREVENUE  q 365 $ qC 365 $   C MCFRSTBq     R o STBMCF qq  RqoSTBMCF  q gs  gsgT  NET ANNUAL REVENUE  REVENUE  1  TAX & ROYALTY RATE   ANNUAL OPEX DISCOUNTED NET ANNUAL REVENUE  NET ANNUAL REVENUE tav  t1  t2 10.05tav 2 ADJUSTEDCAPEXDrilling&CompletionCostsStimulationCosts CompressorRental InitialDrilling&CompletionCosts 6WellsAssumes0 New Wells Drilling & Completion Costs  Include Esclation and Discount NPV  T  ANNUAL DISCOUNTED REVENUE   ADJUSTED CAPEX 1 PROJECT REPORT  PREPARE A REPORT PROPOSING THE OPTIMUM DEVELOPMENT PLAN.  PROJECT REPORT OUTLINE & PREPARATION 1. 2. 3. COVER SHEET EXECUTIVE SUMMARY  BRIEF SUMMARY, MUST INCLUDE KEY INFORMATION, i.e. INITIAL GAS-IN- PLACE, NUMBER OF WELLS, NPV, etc. PROBLEM STATEMENT & OBJECTIVES  DESCRIBE THE PROBLEM THAT NEEDS TO BE SOLVED AND THE OBJECTIVES THAT NEED TO BE ACHIEVED. 4. DATA  LIST ALL THE AVAILABLE DATA THAT ARE USED IN THE PROJECT.  LIST ASSUMPTIONS REGARDING THE MISSING DATA. PROJECT REPORT OUTLINE & PREPARATION 5. METHODOLOGY  DESCRIBE THE SOLUTION METHOD. (NO CALCULATIONS HERE).  PROVIDE A FLOW CHART  LIST AND JUSTIFY ALL THE ASSUMPTIONS  DESCRIBE THE TOOLS USED 6. RESULTS  TABULATE THE KEY RESULTS IN THE BODY OF THE REPORT.  DETAILED CALCULATIONS AND INTERMEDIATE RESULTS SHOULD BE IN THE APPENDICES.  USE TABLES, MAPS, AND PLOTS TO DESCRIBE YOUR RESULTS. PROJECT REPORT OUTLINE & PREPARATION 7. DISCUSSIONS AND RECOMMENDATIONS  DISCUSS THE POTENTIAL PROBLEMS AND POTENTIAL ENHANCEMENTS.  LIST AND DISCUSS WHAT TYPE OF DATA THAT COULD BE USEFUL TO OBTAIN TO IMPROVE THE PREDICTIONS.  THIS IS THE MOST IMPORTANT SECTION. IT MUST REFLECT HOW MUCH YOU HAVE UNDERSTOOD THE PROBLEM AND HOW MUCH OF THOUGHT YOU HAVE GIVEN TO THE SOLUTION. 8. APPENDICES  ONE FOR EACH MEMBER OF THE GROUP.  SPECIFY YOUR TASK.  PROVIDE A SUMMARY OF THE RESULTS  DETAILED CALCULATIONS IN THE SPREADSHEET

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EXECUTIVE SUMMARY
This project involves natural gas production systems analysis and feasibility study. The most important objectives of production system analysis are: to decrease risk, to maximize recovery, to minimize capital expenditures, to minimize operating costs and to optimize profitability.
In this project a wet natural gas reservoir was evaluated to optimize the production system. For this wet gas reservoir, it is estimated the Original Gas in Place was 105373 by using material balance method.
The initial pressure of the reservoir is 3000Psia and well test data and production data for one year was provided by the client. The production requirement is based on two contract options and two production facility options are proposed by the client. In addition, compression option for low pressure gas separator and stimulation options were to be analyzed.
calculations are done on each 24 different cases considering simulation and historical data of the reservoir. It was determined that horizontal well with contract 2 is economically feasible under no simulation and no compressor for low pressure separator gas conditions. And also it is estimated that only one well need be drilled addition to existing 6 wells in the reservoir. Deliverability of first three years will be 25 MMcfd and 15 MMcfd for next 3 years at the pressure of 600 psia in sale point. Science the high production pressure of 800 psia , cost for hiring of compression will be minimized . Detailed calculations of each cases can be found in Appendix A.
In addition, it was founded that horizontal wells minimize number of wells and hence the minimize the cost of well drilling and completion.
1. PROBLEM STATEMENT & OBJECTIVES
The purpose of this project is to find optimized production system considering provided historical and measured parameters.
The well test data and production data for one year was provided by the client. The production rate requirement is based on the contract option and there were two contract options to be considered. Two production facility options with different high pressure and low pressure separators are proposed by the client and compression option for low pressure gas separator needed to be analyzed. Post stimulation test data was provided and economic feasibility should be analyzed considering all options.
Economic factors to be considered were the cost of drilling and completion of wells, oil and gas prices, stimulation cost, taxes and royalties, operating and maintenance costs and cost for hiring compressors. The results of the analysis need to be presented as the Net Present Value(NPV).
The report seeks to attain the following objectives;
• To predict the reservoir performance for next 6 years.
• To predict outflow and inflow performance for each case.
• To define a suitable well option for the system
• To define the suitability for low separator gas sending to the sale point.
• To size the reciprocating compressor for each case.
• To evaluate the economy feasibility of each case
2.DATA
This section provides details of the input parameters that are considered for the...

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