1. INSTRUCTOR © 2017, John R. Fanchi
All rights reserved. No part of this manual may be reproduced in any form without the express written permission of the author.
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

2. To the Instructor
The set of files here are designed to help you prepare lectures for your own course using the text Introduction to Petroleum Engineering, J.R. Fanchi and R.L. Christiansen (Wiley, 2017)
File format is kept simple so that you can customize the files with relative ease using your own style. You will need to supplement the files to complete the presentation topics.

3. DRILLING PROCESS © 2017, John R. Fanchi
All rights reserved. No part of this manual may be reproduced in any form without the express written permission of the author.
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

4. Outline
Drilling Process
Well Types
Well Spacing

5. DRILLING PROCESS
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

6. Geologists/Engineers Propose Well
Assemble geologic maps & reservoir engineering data
Gather offset (nearby) well data
Mud records, bit records, casing programs, directional info, well logs, etc.
Identify well site and target formations
Evaluate economics
Identify market
Prepare Authorization for Expenditure (AFE)

7. Typical Cost of U.S. Onshore Wells vs. depth
Average costs of oil and gas onshore wells drilled in the United States in 2004, from JAS (Joint Association Survey) data for listed depth intervals.
Drilling Interval Avg Depth Avg Cost
(ft) (ft) (Year 2004 US$ Million)
1,250–2, ,
2,500–3, ,
3,750–4, ,
5,000–7, ,
7,500–9, ,
10,000–12, ,
12,500–14, ,
15,000–17, ,
17,500–19, ,

8. Seek AFE Approval Management reviews AFE
Well authorized and funds allocated
Must match budget – amount and timing

9. Seek Stakeholder Approvals
Secure leases (if not secured already)
Main leases purchased with terms
Protection leases purchased
Deals made for farmouts (transfer of lease), trades, purchases
Identify partners
Partners sign Joint Operating Agreement (JOA)
Obtain permits
Work with government regulatory agencies

10. Select Vendors Bids taken on major costs
Well site equipment (e.g. bulldozer)
Drilling equipment (e.g. drilling rig, pipe, mud, cement, bits)
Completion equipment (e.g. casing, cement)
Other (e.g. logging, tool rentals)

11. Drilling Contractor Find Drilling Contractor
Drilling Contracts Vary by Risk
Turnkey
Fixed price for a specifically drilled & equipped well
All risk on drilling contractor
Footage
$/foot contract to TD
Risk shared by operator and contractor
Day rate
$/day to finish
Risk all on operator
Sign contract

12. Drilling Operations Personnel
Company Drilling Foreman (company or contract)
Company Drilling Engineer
Contractor Crew
Tool Pusher
Driller
Roughnecks (floorhands, derrick hand)
Service personnel (mud, bits, cement, casing, fishing, downhole tools, location/bulldozer, etc.)

13. Spud Meeting All parties involved with drilling meet
Review drilling plan, timing & costs
Discuss hazards & contingencies
Specify spud date
Date to start drilling

14. Clear Location and Move in Rig
Lease & surface owner obligations must be met
Logistics
Clear location
Have equipment ready when needed
Rig moves in and rigs up (MIRU)

15. Drill Well Adjust drilling plan from original plan if needed
Daily drilling report from field
Daily cost records maintained
Routine inventory of mud, bits, pipe, etc.
Evaluate well at target depth
Collect data for decisions – Logs, tests, etc.
Decisions: plug, deepen or complete

16. Wellbore

17. Well Completion Rig down and move out (RDMO) Complete well
Typically use different rig for completion operations
Complete well
Finalize wellhead
Move in service unit
Clean out well
Perforate and stimulate
Test and submit completion reports

18. Begin Production Build facilities (tank battery, separators, etc.)
Select equipment based on expected
Pressure
Rates of oil, gas, and water
Begin production
Commence well flow
Monitor for optimum production rate

19. WELL TYPES

20. Exploration Wildcat (aka controlled exploratory well) Rank wildcat
Test a trap that has never produced (new field wildcat)
Test a new reservoir in a known field
Extend known limits of producing reservoir
Rank wildcat
Well drilled at least 2 miles (3 kms) from known production
Discovery well
The wildcat discovers new field

21. Development Wells Wells for estimating field size Development well
Appraisal well
Delineation well
Step out well
Development well
Well drilled in known extent of field
Infill well
Well drilled between producing wells in established field

22. WELL SPACING

23. Rule of Capture Rule of Capture applies prior to 1930
Based on Old English Game Law (hunting)
Establishes ownership of captured natural resources
e.g. groundwater, oil, gas, and game animals
In general, ownership of resource goes to the first person to "capture" the resource

24. Spacing Spacing helps determine how fast we can produce oil and gas
How close can we space wells?

25. Spacing 640 ac 160 ac 40 ac 5280 ft 5280 ft 1 sq mi = 640 ac 2640 ft

26. QUESTIONS?
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.

27. SUPPLEMENT
© 2004 John R. Fanchi All rights reserved. Do not copy or distribute.