PNG 420 Final Project Presentation

Team 6

Team Members

Qassim Alhashim

David Verm

Prateeksha Mazumder

Andre Ibuaka

Reservoir Properties Initial Reservoir Pressure, pi 6000 psia

Area of the reservoir, acres 206.6 acres

Height of the formation, h 150 ft

Volume formation factor, Bo 1.1 RB/STB

Rock compressibility, cf 5*10-6 psi-1

Fluid compressibility, c0 5*10-6 psi-1

Maximum Injection pressure 7000 psia

Reservoir Temperature, T 1500F

Average water saturation, Sw 0.22

API gravity of the fluid 10 API

Irreducible water saturation, Swirr 0.18

Task 1 – Maximizing NPV• Position of injector

• Injector was positioned down-dip

• Maximized the production of oil since the water pushed the oil from underneath

• Trial and error was used to obtain optimum position of injector and maximize NPV

• Final position of injector – Well block 7, 28

• Maximum water injection rate is 5000 STB/D

NPV TableYear Date

Oil Production Rate(STB/day)

Additional Costs($) Revenue Adjusted Revenue

Discounted cash flows

0      ($7,000,000.0

0) ($7,000,000.00) ($7,000,000.00)

1 1/1/2014 1768.29863 ($1,312,168.95)$51,634,320.

00 $50,322,151.05 $44,930,492.01

2 1/1/2015 1611.70137 -496201.55$47,061,680.

00 $46,565,478.45 $37,121,714.33

3 1/1/2016 1809.342466 -526262.9$52,832,800.

00 $52,306,537.10 $37,230,759.94

4 1/1/2017 1942.410959 -551614.25$56,718,400.

00 $56,166,785.75 $35,695,007.75

5 1/1/2018 2052.356164 -577835.9$59,928,800.

00 $59,350,964.10 $33,677,330.94

6 1/1/2019 2157.671233 -604259.3$63,004,000.

00 $62,399,740.70 $31,613,650.59

7 1/1/2020 1976.794521 -710264.15$57,722,400.

00 $57,012,135.85 $25,789,394.92

8 1/1/2021 1449.863014 -976042.5$42,336,000.

00 $41,359,957.50 $16,704,593.14

9 1/1/2022 1192.575342 -1182362.5$34,823,200.

00 $33,640,837.50 $12,131,223.25

10 1/1/2023 1030.164384 -1354923$30,080,800.

00 $28,725,877.00 $9,248,963.59

NPV=$277,100,000

Pressure surface maps

01/01/2014 01/01/2019

01/01/2024

Water Saturation Profiles

01/01/2014 01/01/2019

01/01/2024

Oil and water flow rates

Breakthrough point (3/1/2020)

Injection/ Production

Voidage Rate vs Time

Recovery factor

0 500 1000 1500 2000 2500 3000 3500 40000

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

RF vs time

Time (days)

RF

NPV vs skin factor

-4 -3.5 -3 -2.5 -2 -1.5 -1 -0.5 00

50000000

100000000

150000000

200000000

250000000

221800000

45860000

44360000 42990000 41720000

NPV vs Skin Factor

Skin Factor

NP

V (

$)

Pressure surface maps (with aquifer)

01/01/2014 01/01/2019

01/01/2024

Oil Saturation Profiles (with aquifer)

01/01/2014 01/01/2019

01/01/2024

Oil and Water Production Rates (with aquifer)

Well-1 modified case 2.irf

Oil Rate SC Water Rate SC

Time (Date)

Oil R

ate

SC

(bb

l/day)

2015 2016 2017 2018 2019 2020 2021 2022 2023 20240

400

800

1,200

1,600

2,000

2,400

2,800

3,200

3,600

4,000

4,400

4,800

Breakthrough point

Injection/Production Rates (with aquifer)

NPV vs max injection rate

0 1000 2000 3000 4000 5000 60000

50000000

100000000

150000000

200000000

250000000

300000000

277100000

47650000

4642000041530000

49940003197000

NPV vs Max Injection Rate

Max Injection rate (STB/D)

NPV

($)

NPV vs injection temperature

100 150 200 250 300 350 400 450 50053000000

53500000

54000000

54500000

55000000

55500000

56000000

56500000

57000000

54230611

54860000

54780000

56520000

NPV Vs Injection Temperature

T (F)

NP

V (

$)

NPV tables for 150°FDate Oil Production Rate(STB/day) Additional Costs($) Revenue Adjusted Revenue Discounted cash flows

      $-7,000,000.00 $-7,000,000.00 $-7,000,000.00

1/1/2014 219.9155 ($1,016,201.72) $6,421,532.60 $5,405,330.89 $5,405,330.89

1/1/2015 211.4213333 -30159.68025 $6,173,502.93 $6,143,343.25 $6,143,343.25

1/1/2016 218.3870833 -45254.07296 $6,376,902.83 $6,331,648.76 $6,331,648.76

1/1/2017 223.4795833 -60356.98656 $6,525,603.83 $6,465,246.85 $6,465,246.85

1/1/2018 227.5619167 -75885.68577 $6,644,807.97 $6,568,922.28 $6,568,922.28

1/1/2019 230.09475 -91677.27276 $6,718,766.70 $6,627,089.43 $6,627,089.43

1/1/2020 226.982 -108375.6738 $6,627,874.40 $6,519,498.73 $6,519,498.73

1/1/2021 215.2826667 -127424.1566 $6,286,253.87 $6,158,829.71 $6,158,829.71

1/1/2022 200.8245833 -149709.7652 $5,864,077.83 $5,714,368.07 $5,714,368.07

1/1/2023 187.3816667 -175211.5259 $5,471,544.67 $5,296,333.14 $5,296,333.14

NPV= $54,230,611

NPV tables for 250°F

NPV=$ 54,860,000

DateOil Production Rate(STB/day)

Additional Costs($) Revenue

Adjusted Revenue

Discounted cash flows

     ($7,000,000.

00) ($7,000,000.00) ($7,000,000.00)

1/1/2014 245.7917808 -139784.65$7,177,120.

00 $7,037,335.35 $7,037,335.35

1/1/2015 196.2136986 -187660.82$5,729,440.

00 $5,541,779.18 $5,541,779.18

1/1/2016 221.7945205 -189495.025$6,476,400.

00 $6,286,904.98 $6,286,904.98

1/1/2017 226.4027397 -191558.725$6,610,960.

00 $6,419,401.28 $6,419,401.28

1/1/2018 257.2465753 -193375.375$7,511,600.

00 $7,318,224.63 $7,318,224.63

1/1/2019 206.0958904 -195582.325$6,018,000.

00 $5,822,417.68 $5,822,417.68

1/1/2020 228.7452055 -199004.625$6,679,360.

00 $6,480,355.38 $6,480,355.38

1/1/2021 197.3150685 -205716.625$5,761,600.

00 $5,555,883.38 $5,555,883.38

1/1/2022 201.2520548 -216968.175$5,876,560.

00 $5,659,591.83 $5,659,591.83

1/1/2023 203.1315068 -190122.475$5,931,440.

00 $5,741,317.53 $5,741,317.53

NPV tables for 325°FDate

Oil Production Rate(STB/day)

Additional Costs($) Revenue Adjusted Revenue

Discounted cash flows

     ($7,000,000.0

) ($7,000,000.00) ($7,000,000.00)

1/1/2014 229.4882466 -1184344.5$6,701,056.8

0 $5,516,712.30 $5,516,712.30

1/1/2015 218.4084932 -185967.7559$6,377,528.0

0 $6,191,560.24 $6,191,560.24

1/1/2016 226.2515616 -187890.2958$6,606,545.6

0 $6,418,655.30 $6,418,655.30

1/1/2017 231.0295342 -189824.3742$6,746,062.4

0 $6,556,238.03 $6,556,238.03

1/1/2018 235.4088219 -191966.9852$6,873,937.6

0 $6,681,970.61 $6,681,970.61

1/1/2019 237.6450959 -194124.7956$6,939,236.8

0 $6,745,112.00 $6,745,112.00

1/1/2020 232.5441096 -197844.1775$6,790,288.0

0 $6,592,443.82 $6,592,443.82

1/1/2021 217.3744932 -205308.7279$6,347,335.2

0 $6,142,026.47 $6,142,026.47

1/1/2022 201.6905753 -217644.8128$5,889,364.8

0 $5,671,719.99 $5,671,719.99

1/1/2023 188.4179726 -234818.6547$5,501,804.8

0 $5,266,986.15 $5,266,986.15 NPV=$ 54,780,000

NPV tables for 450°FDate

Oil Production Rate(STB/day)

Additional Costs($) Revenue

Adjusted Revenue

Discounted cash flows

     ($7,000,000.0

0) ($7,000,000.00) ($7,000,000.00)

1/1/2014 223.1567123 -256823.55$6,516,176.0

0 $6,259,352.45 $6,259,352.45

1/1/2015 222.4953425 -187735.875$6,496,864.0

0 $6,309,128.13 $6,309,128.13

1/1/2016 230.7808219 -189640.275$6,738,800.0

0 $6,549,159.73 $6,549,159.73

1/1/2017 241.3890411 -191565.375$7,048,560.0

0 $6,856,994.63 $6,856,994.63

1/1/2018 260.6054795 -193686.275$7,609,680.0

0 $7,415,993.73 $7,415,993.73

1/1/2019 214.9972603 -195845.625$6,277,920.0

0 $6,082,074.38 $6,082,074.38

1/1/2020 254.6849315 -200278.825$7,436,800.0

0 $7,236,521.18 $7,236,521.18

1/1/2021 218 -208670.675$6,365,600.0

0 $6,156,929.33 $6,156,929.33

1/1/2022 185.4739726 -221751.275$5,415,840.0

0 $5,194,088.73 $5,194,088.73

1/1/2023 195.0657534 -240686.875$5,695,920.0

0 $5,455,233.13 $5,455,233.13 NPV=$ 56,652,000

We vs time

NPV vs Temperature (with aquifer)

140 160 180 200 220 240 26096000000

97000000

98000000

99000000

100000000

101000000

102000000

103000000

98460838.756

102027744.45

NPV Vs T

Temperature (°F)

NP

V (

$)

RF vs Time (with and without an aquifer)

0 2 4 6 8 10 120

0.05

0.1

0.15

0.2

0.25

0.3

RF Vs Time

RF with an aquiferRF without an aquifer

time (years)

RF

Conclusion • NPV=$277,100,000 (without aquifer)• NPV=$3,038,124,019 (with aquifer)• After a certain point, skin factor has little effect

• NPV & Production increases as injection temperature increases

• Increasing injection rate increases NPV