BC Well Testing & Reporting Requirements. Reservoir Engineering

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BC Well Testing & Reporting Requirements Reservoir Engineering BC Oil and Gas Commission April 2015

Presentation Outline 1) Drilling & Production Regulations Pressure Testing Requirements Gas Well Flow Testing Requirements 2) Well Testing & Reporting Submission Requirements Pressure ASCII Standard (PAS) Test Types Common Error Messages Pressure Test Analysis Data Quality 3) Annual Pressure Surveys Minimum Test Requirements Annual Pressure Survey Tips Application for Exemption/Modification What Pools Require Testing This Year? 4) Website Orientation Guidelines and Additional Information

Drilling and Production Regulations

Note: Pressure tests, both initial and annual, are also required for disposal wells, as a condition of the approval Order. 4 Pressure Test Regulations Drilling and Production Regulation 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 shut-in 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.

5 Pressure Test Regulations Continued Schedule 2 Unconventional Zones: Field Zone Name Distance (m) Horn River Muskwa-Otter Park 100 Horn River Evie 100 Helmet Muskwa-Otter Park 100 Helmet Evie 100 Liard Basin Besa River 100 Northern Montney Montney 150 Northern Montney Doig Phosphate-Montney 150 Heritage Montney 150 Altares Doig Phosphate-Montney 150 Town Montney 150 Deep Basin Cadomin 150 Deep Basin Nikanassin 150

6 Flow Test Regulations Drilling and Production Regulation 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

Submit: 8 Submission Requirements All pressure and flow tests are required to be submitted to the Commission within 60 days of the date on which the operation concluded. Each test submission must include one (or more) PDF(s), and one PAS file. The PDF must include the raw data, and additional PDF s with analysis data will also be accepted. A separate submission is required for every PAS file. For tests with more than one PAS file, but only one PDF of the test data (ex. Pressure Build-Up followed by a Static Gradient), submit the PDF once with each PAS file. Submit to: one PDF and one PAS esubmission Portal Naming Convention: WANUM_TRG_YYYYMMMDD_OPTIONAL, or WANUM_TRGS_YYYYMMMDD_OPTIONAL, or WANUM_GRD_YYYYMMMDD_OPTIONAL, or WANUM_PRD_YYYYMMMDD_OPTIONAL Note: The Submission Portal User Guide provides step by step submission instructions.

9 Pressure ASCII Standard (PAS) Test Types TRG Absolute Open Flow / Pressure Transient Test Data (Bottom Hole Recorders) AOF Test Types Single-Point AOF Multi-Point AOF Pressure Transient Test Types Bottom Hole Build-Up Bottom Hole Fall-Off TRGS Pressure Transient Test Data (Surface Recorders) TRGS Test Types Diagnostic Fracture Injection Test (DFIT) Acoustic Well Sound Build-Up GRD Gradient Test Data GRD Test Types Static Gradient Acoustic Well Sound Single-Shot PRD Production/Flow Test Data PRD Test Types Clean-Up Flow Test Note: PAS file types are noted in the first row of the PAS file. If the PAS file indicates a TRG type and surface recorders were used, submit the file as a TRGS.

10 Common Error Messages If a PAS file is missing required information, the operator will receive an error message. FILE NAME ERROR Example 1 The date should read 2015MAR11, instead of 20150311. PAS FILE ERRORS Example 1 - The PAS file is missing the required well shut-in time and date (TISI.DAY/HR). Example 2 - The PAS file has an invalid value for the test purpose (PRPS). Valid values are (I)nitial, (A)nnual or (O)ther. Example 3 The PAS file requires a liquid level mcf LOG (LLVL.M) when the primary liquid gradient (PLGR.KPA/M) is water (W). As the well type indicator (WTYP) is horizontal (H), the PAS file also requires a liquid level mcf TVD (LLVT.m) in true vertical depth units.

11 Error Messages Tips If a TRGS (surface recorders) file is uploaded as a TRG (bottom hole recorders) file, it will result in multiple error messages. Double check which type of recorders were used, label accordingly, and try uploading again. The Pressure ASCII Standard (PAS) Reference Guide will assist the operator with PAS file errors. Open the reference guide and click on the tab associated with the file type you are working with (PRD, GRD, or TRG). Use the find function to search for the mnemonic name that came up in the error message. The table will provide descriptions and business rules required for the specific field. Open the PAS file and use the find function to search for the location of the mnemonic name. Make a manual change to the PAS file, and try uploading it again.

12 Pressure Test Analysis A pressure transient analysis may be required in order to obtain a valid reservoir pressure. Where an analysis is included, provide details of all reservoir pressure calculations including extrapolations, assumptions, etc. Submit the following to the esubmission Portal. PAS file PDF of raw pressure data PDF of analysis

13 Data Quality 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.

Annual Pool Pressure Survey

15 Minimum Annual Pressure Test Requirements 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.

16 Annual Pressure Survey Tips 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.

17 Modification of Initial or Annual Pool Pressure Test Requirements 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.

18 What Pools Require Testing This Year? Is the pool producing? no yes Pressure survey NOT required. Is the pool listed in: Pools with Non-Annual Pressure Survey Approval (Table 1)*? (* available from the OGC website) no yes Annual pressure survey required. 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.

19 Pools with Non-Annual Pressure Survey Approval (Table 1) This image is page 1 of 5. Please see our website for the complete table.

20 Coordinating Operators (Table 2) 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 de Boer Well Test Analyst (250) 419-4433 melanie.deboer@bcogc.ca or visit www.bcogc.ca