Optimization of Coalbed-Methane-Reservoir Exploration and Development Strategies Through Integration of Simulation and Economics

Abstract

Summary The unique properties and complex characteristics of coalbed methane (CBM) reservoirs, and their consequent operating strategies, call for an integrated approach to be used to explore for and develop coal plays and prospects economically. An integrated approach involves the use of sophisticated reservoir, wellbore, and facilities modeling combined with economics and decision-making criteria. A new CBM prospecting tool (CPT) was generated by combining single-well (multilayered) reservoir simulators with a gridded reservoir model, Monte Carlo (MC) simulation, and economic modules. The multilayered reservoir model is divided into pods, representing relatively uniform reservoir properties, and a "type well" is created for each pod. At every MC iteration, type-well forecasts are generated for the pods and are coupled with economic modules. A set of decision criteria contingent upon economic outcomes and reservoir characteristics is used to advance prospect exploration from the initial exploration well to the pilot and development stages. A novel approach has been used to determine the optimal well spacing should prospect development be contemplated. CPT model outcomes include a distribution of after-tax net present value (ATNPV), mean ATNPV (expected value), chance of economic success (Pe), distribution of type-well and pod gas and water production, reserves, peak gas volume, and capital. An example application of CPT to a hypothetical prospect is provided. An integrated approach also has been used to assist with production optimization of developed reservoirs. For example, an infill-well locating tool (ILT) has been constructed to provide a quick-look evaluation of infill locations in a developed reservoir. ILT, like CPT, is used for multiwell applications, combining the single-well simulator with a multilayered reservoir model and economics. An application of ILT to a CBM reservoir is provided, and the results are compared with the predictions of an Eclipse* reservoir simulation.