Applying Extended Reach Drilling to Optimize the Net Present Value of the Duvernay Field

Date
2015-08
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Abstract

Lateral length is a key well design parameter that impacts field planning, operations, hydrocarbon recovery, reserves booking and economics. Unconventional assets in North America are looking at long laterals as a potential to reduce Unit Development Costs (UDC) and maximize Net Present Value (NPV). This thesis provides a detailed account of the planning, execution, and appraisal of a 2500m long lateral pad in the Duvernay formation. It then describes a 3600m long lateral in the Montney formation, and captures the lessons learnt and how they could be applied to the Duvernay. The final stage of this thesis investigates the technical and design implications for drilling wells from 2000m up to 4500m and matches them with cost and production forecasts. Based on the economic results it is found that the most economical well for the Duvernay is in the range of 3000m to 3500m in lateral length.

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Keywords
Drilling, Horizontal, Floatation, Extended Reach, Rotary Steerabe, Economics
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