1. Horizontal Drilling in Kansas Current Status and Case Histories Presentation to the Society of Petroleum Engineers Wichita Chapter January 12, 2000 by Paul Gerlach Research Scientist Petroleum Research Section Kansas Geological Survey

2. Horizontal Drilling in Kansas Current Status and Case Histories

3. Horizontal Drilling in Kansas Background History of Horizontal Drilling ?1891 - First Patent Issued > 1929 - First Horizontal Oil Well Drilled > 1950’s - Development of Hydraulic Fracturing suppressed need for Horizontal Wells > 1970’s – used long radius technology to develop fields w/o navigational technology > 1980’s – Advances in Directional Technology to Steer Offshore Wells > 1985 – First Austin Chalk Well > 1990 – approx. 1,500 Horizontal Wells Worldwide > 2000 – Est. 20,000 Horizontal Wells Worldwide

4. Horizontal Drilling in Kansas Background What is a Horizontal Well ? ? No API Definition > Any well put in a reservoir to expose as much permeability and porosity as possible > A Controlled Directional Completion Procedure Why Drill Horizontal Wells ? > Produce Reserves not Drained by Vertical Wells > Produce Reserves not Economic in Vertical Wells > A More Efficient Use of Reservoir Drive Energy > Provide better Rate of Return than Vertical Well

5. Horizontal Drilling in Kansas Current Status Current Status of Non-Vertical Wells (November, 1999) ? 68 Approved “Intent to Drill” Applications > 34 Horizontal Wells Confirmed > 1 Horizontal Well Reported (not confirmed) > 3 Deviated Wells Confirmed many more but unreported > 2 Slant (high angle) Wells Confirmed

6. Horizontal Drilling in Kansas Definitions & Terms Classification of Horizontal Wells Horizontal Well Radius Categories Traditionally Long - Medium - Short - Ultrashort No API Standard Currently Classified by Bend Rate of Curve 2 o -8 o / 100 Ft. – Long Radius 8 o -35 o / 100 Ft. – Medium Radius 1/2 o -2 o / Ft. – Short Radius Determines: Lateral Length Steering Method Completion Technique Treatment Methods

7. Horizontal Drilling in Kansas Definitions & Terms MWD - “Measurement While Drilling” Azimuth, Inclination, Measured Depth LWD - “Logging While Drilling” most standard vertical hole e-logs PIF - “Productivity Improvement Factor” multiplier of production increase over offset vertical wells Common Terms used to Describe Horizontal Wells

8. Horizontal Drilling in Kansas Definitions & Terms

9. Horizontal Drilling in Kansas Opening Remarks Caveat Contemplor Determining Success of a Horizontal Well Requires: Assessing if Basic Criteria was Accomplished > Where it is drilled…. geology - structure & stratigraphy > Why it is drilled…. reservoir & drive mechanism > What it is drilled for…. reservoir management > How it is drilled…. well design, drilling, & completion Operator Reporting Prevents Accurate Assessment > Inaccurate > Incomplete > Non-existent

10. Horizontal Drilling in Kansas Current Status General Characteristics of the 34 Horizontal Wells > 1st Horizontal Well in Kansas Mar-1988, Phillips Petroleum, Trego Co. 196 ft. Lateral in Marmaton Frmn. > Build Rate & Radius Ranges Shortest: 2.7 o /ft. / 33 ft. Longest: 1.4 o /100 ft. / 1087 ft. > Measured Depth / True Vertical Depth Shallowest: 250 ft. / 200 ft. Deepest: 7969 ft. / 6190 ft. > Horizontal Lateral Length Shortest: 40 ft. Longest: 1877 ft. > Most Frequently Drilled Formation Mississippian - Osage (7), St Louis (4), Spergen-Warsaw (3)

11. Horizontal Drilling in Kansas Spatial Distribution and Formation MarmMissArbkMcClthBevier Peru Chse Gas Stg

12. Horizontal Drilling in Kansas Current Status (December 2000)

13. Horizontal Drilling in Kansas Current Status Mississippian, et al

14. Horizontal Drilling in Kansas Current Status

15. Horizontal Drilling in Kansas Current Status

16. Horizontal Drilling in Kansas Current Status

17. Horizontal Drilling in Kansas Case Histories MarmMissArbkMcClthBevier Peru Chse Gas Stg Lost Springs Riffe Porter HugotonWieland W Oppy S Aldrich NE Shuck McClouth Field Muhlheim Coffeyville Stillwell Cunningham Gas Strg

18. Horizontal Drilling in Kansas Case Histories - Winfield Formation Toe Up

19. Horizontal Drilling in Kansas Case Histories - Winfield Formation PIF:.89

20. Horizontal Drilling in Kansas Case Histories - Osage Formation Toe Up

21. Horizontal Drilling in Kansas Case Histories - Osage Formation

22. Horizontal Drilling in Kansas Case Histories - Osage Formation PIF: 3.1

23. Horizontal Drilling in Kansas Case Histories - Osage Formation

24. Horizontal Drilling in Kansas Case Histories - Osage Formation PIF: 5.3

25. Horizontal Drilling in Kansas Case Histories - Spergen-Warsaw Formation

26. Horizontal Drilling in Kansas Case Histories - Spergen-Warsaw Formation PIF: 2.2

27. Horizontal Drilling in Kansas Case Histories - St. Louis Formation

28. Horizontal Drilling in Kansas Case Histories - St. Louis Formation

29. Horizontal Drilling in Kansas Case Histories - St. Louis Formation PIF: 3.1

30. Horizontal Drilling in Kansas Case Histories - McClouth Formation Toe Up

31. Horizontal Drilling in Kansas Case Histories - McClouth Formation PIF: 5.5

32. Horizontal Drilling in Kansas Case Histories - Bevier Coal Formation

33. Horizontal Drilling in Kansas Case Histories - Bevier Coal Formation PIF: 3.4

34. Horizontal Drilling in Kansas Case Histories - Peru Formation

35. Horizontal Drilling in Kansas Case Histories - Peru Formation PIF:.58

36. Horizontal Drilling in Kansas Case Histories - Arbuckle Formation

37. Horizontal Drilling in Kansas Case Histories - Arbuckle Formation

38. Horizontal Drilling in Kansas Case Histories - Marmaton Group

39. Horizontal Drilling in Kansas Case Histories - Viola Formation Toe Up

40. Horizontal Drilling in Kansas Conclusions Currently a Mixed Bag of Successes and Failures ? Best Performing Reservoirs Atokan Group - McClouthBest PIF: 5.5 Mississippian - OsageBest PIF: 5.3 to 3.1 Mississippian - St. LouisBest PIF: 3.1 Cherokee Group - Bevier CoalBest PIF: 3.4 Mississippian - Spergen-WarsawBest PIF: 2.2 ? Poorest Performing Reservoirs Marmaton Group - PeruBest PIF:.58 Chase GroupBest PIF:.89 ? Most Horizontal Candidates not Properly Screened All Reservoir’s w/ Low BHP & Kh Perform Poorly Chase Group, Marmaton, Peru, some Mississippian All Reservoir’s w/ High Rcrvy. Eff. Perform Poorly Arbuckle, some Mississippian

41. Horizontal Drilling in Kansas Conclusions Many Good Candidates not yet Tested ?Thin Beds in Lansing-Kansas City ?EOR in Multiple Reservoirs ?SAG-D Thermal in Cherokee Sands of SE Kansas ?Attic Oil in Large Structures (Ordv. and Miss.) ?High BHP, Low Kh of Fractured Miss of SC Kansas

42. Horizontal Drilling in Kansas Conculsions

43. Horizontal Drilling in Kansas Acknowledgements Petroleum Research Section Dr. Timothy Carr Kansas Corporation Commission Conservation Division Dave Williams Donna Dill