1. SAMPLE IMAGE Shale Gas Development: Integrated Approach Hemant Kumar Dixit Mumbai, India 18 January-2013

2. Introduction  Motivation: Use seismic data to improve economics in resource shale plays – Higher margins with less drilling and perforations/fracturing stages – Minimize environmental impact  Challenges: – Sweetspot identification – Optimize well location – Optimize completions Drilling Completion Installations

3. Motivation of Unconventional Resources Source: Halliburton 2011-03  23% US gas production is from unconventional reservoirs (2010)  Coal stores 6-7 times more gas than conventional reservoirs  4 trillion bbl of oil in Canada oil sands and Venezuela heavy oil  Environment – proppant, water, noise, contamination

4. Based on graphic by Al Granberg Fissure s The shale is fractured by the pressure induced in the well 10,000 ft 2,000 ft 8,000 ft 4,000 ft 6,000 ft 0 ft Fissure Sand keeps fissures open Mixture of water, sand and chemical agents Well Natural gas flows from fissures into well A mixture of water, sand and chemical agents is injected at high pressure in the well The challenge: prediction and control of fracturing What seismic brings:  Seismic Reservoir Characterization  Stress & Fracture modeling  Real-time Microseismic What seismic brings:  Seismic Reservoir Characterization  Stress & Fracture modeling  Real-time Microseismic Challenges in Shale Explortaion

5. CGGV North American Experience 2007 - 2011 5 Projects 726 sq km 2007 - 2011 5 Projects 726 sq km Marcellus 2008 - 2011 6 Projects 1405 sq km 2008 - 2011 6 Projects 1405 sq km Montney 2009 – 2 projects 178 Sq km + 2D Regional 2009 – 2 projects 178 Sq km + 2D Regional Utica 2009 - 2011 2 Projects 5607 sq km 2009 - 2011 2 Projects 5607 sq km Haynesville 2010 - 2011 13 Projects 6920 sq km 2010 - 2011 13 Projects 6920 sq km Woodford 2009 - 2011 8 Projects 1155 sq km 2009 - 2011 8 Projects 1155 sq km Horn River 2010 - 1 Project 340 sq km 2010 - 1 Project 340 sq km Eagle Ford 2009 - 3 Projects 457 sq km 2009 - 3 Projects 457 sq km Bakken 2006 - 2008 3 Projects +440 sq km 2006 - 2008 3 Projects +440 sq km Picenace / Uinta 2007 – 8 Projects +500 sq km 2007 – 8 Projects +500 sq km Barnett More than 40 projects and 18,000 km2

6. CGGV in Shale Resource Exploration  Integrated solutions for Unconventional Resources  Full suite of tools and technologies  From prediction to monitoring  Calibration & correlation with well data Data acquisitionProcessing & Imaging Fracture / stress characterization & rock properties Sweet spot prediction with well-calibrated attributes Microseismic fracture monitoring Feasibility study & survey design Calibration with well data – correlation with production data 6

7. Generating Geomechanical Properties and Sweet Spot Identification for optimum driling Tri-Parish Line Case Study

8. Shale Plays: Questions? Shale Type Ductile or Britle Gas Content TOC, Bulk Volume of Gas Fracture Fracture Type, Direction and Length Validation

9. Shale Plays: Seismic Driven Answers?

10. Shale Plays: Seismic Workflow

11. Haynesville Shale: Bulk Volume Gas Bulk Volume Gas = Total Porosity x (1–Water Saturation)

12. Stress Analysis Workflow Seismic AzAVO Terms E – Young’ s Modulus  – Poisson’s Ratio Z N – Normal Compliance Hooke’s Law / Linear Slip Theory hh HH HH hh VV VV Patent Pending

13. Differential Horizontal Stress Ratio (DHSR)  If  Hmax ≈  hmin (DHSR ≈ 0)  Tensile cracks any direction  || rock weakness  Fracture network  If  Hmax >>  hmin (DHSR > 3-5%)  Fractures ||  Hmax  Shear Fractures  Tensile Fractures  Connect to existing fracture network for production  Hmax Pressure  hmin = Closure Stress  hmin Patent Pending  H -  h  H DHSR

14. Cross-plot DHSR vs. Young’s Modulus Static Young’s Modulus Aligned Fractures will form (YELLOW) Fracture Swarms will occur (GREEN) Ductile (RED) Differential Horizontal Stress Ratio Ductile Brittle

15. DHSR platelets overlaying Young’s Modulus Plate orientation: direction of maximum horizontal stress Map colour: derived Young’s modulus DHSR BRITTLE  H -  h  H

16. Volumetric Interpretation 16 Aligned Fractures (YELLOW) Fracture Swarms (GREEN) Ductile (RED)

17. Probable Zones of Better Hydraulic Fractures Percentage of Hydraulic Fractures High Probability: Zones of better hydraulic fractures (random pattern) Low  H-  h  H Bottom of HVL

18. Multi-Attribute Analysis High Low Highlighting Potential Good Production Areas

19. Validation: Analysis of orientation of H Triaxial Measurements and Orientation H from oriented core samples from different depths in the Haynesville Shale Orientation H across the Haynesville Shale derived from seismic EASTWEST The direction of maximum horizontal stress predicted from the seismic observations matched the corresponding core stress measurements to within 5%. compared with

20. Conclusions  Fully Integrated workflow for shale plays – acquisition to interpretation  Flexible multi-attribute solution correlating seismic observations to production figures, using  Geomechanical rock properties  Stress – HTI  Applications for:  Sweet spot identification  Well location optimization  Completions optimization 20

21. Conclusions  Environment  Water access  Proppant access  Leakage prevention  Financial  Well costs reduced  Well performance enhanced  Return On Investment  SEISMIC can help! 21

22. 22 Thank You Reference: Gray et. al. Estimation of Stress and Geomechanical Properties using 3D Seismic Data, First Break, Volume 30,March 2012

23. Differential Horizontal Stress Ratio (DHSR)  If  Hmax ≈  hmin (DHSR ≈ 0)  Tensile cracks any direction  || rock weakness  Fracture network  If  Hmax >>  hmin (DHSR > 3- 5%)  Fractures ||  Hmax  Shear Fractures  Tensile Fractures  Connect to existing fracture network for production  Hmax  hmin  Hmax Pressure  hmin = Closure Stress  H -  h  H

24. E: Young’s Modulus DHSR E E DHSR and Young’s Modulus Crossplot