DE-FE0010667

Goal
The overall goal of the project is to provide reservoir-specific geological and engineering analyses of the emerging Green River Formation (GRF) tight oil plays in the Uinta Basin, and the established, yet understudied Cane Creek shale (and possibly other shale units) of the Paradox Formation in the Paradox Basin.

Performers
Utah Geological Survey, Salt Lake City, Utah
Energy and Geoscience Institute, University of Utah, Salt Lake City, Utah
Eby Petrology and Consulting, Denver, Colorado

Collaborators
Uinta Basin Petroleum Companies: Anadarko Petroleum Corp., Berry Petroleum Co., Bill Barrett Corp., Newfield Exploration Co., QEP Resources, Inc.
Paradox Basin Petroleum Companies: Anadarko Petroleum Corp., Fidelity Exploration & Production, SM Energy Co., Southwestern Energy, Patara Oil & Gas LLC, Stone Energy Corp.

Background
The high price of crude oil, coupled with lower natural gas prices, have generated renewed interest in exploration and development of liquid hydrocarbon reserves. Petroleum companies are following the success of the recent shale gas boom and employing many of the same well completion techniques to explore for liquid petroleum in shale formations. In fact, many shale formations targeted for natural gas include areas in which the shale is more prone to liquid production. In Utah, organic-rich shales in the Uinta and Paradox Basins have been a source of significant hydrocarbon generation, with companies traditionally targeting the interbedded sands or carbonates for their conventional resource recovery. Operators in these basins are exploiting advances in horizontal drilling and hydraulic fracturing techniques to explore the petroleum production potential of the shale units themselves.

The GRF in the Uinta Basin has been studied for over 50 years since hydrocarbons were first discovered. However, those studies focused on the many conventional sandstone reservoirs currently producing oil and gas. Very little information exists on the more unconventional crude oil production potential of thinner shale/carbonate units such as the Uteland Butte member, Black Shale facies, deep Mahogany zone, and other deep Parachute Creek Member high-organic units. Some operators have recently conducted geochemical and geomechanical characterization, natural fracture analysis, and thickness mapping in these prospective GRF units, but this work has been completed for only limited geographic areas, usually where the operators have leases, and the results are often confidential.

Impacts
The specific objectives of the project’s research are to (1) characterize geologic, geochemical, and geomechanical rock properties of target zones in the two designated basins by compiling data and analyzing available cores, cuttings, and well logs; (2) describe outcrop reservoir analogs of GRF plays (Cane Creek shale is not exposed) and compare them to subsurface data; (3) map major regional trends for targeted intervals and identify “sweet spots” that have the greatest oil potential; (4) reduce exploration costs and drilling risks, especially in environmentally sensitive areas; (5) improve drilling and fracturing effectiveness by determining optimal well completion design; and (6) reduce field development costs, maximize oil recovery, and increase reserves. The project will therefore develop and make available geologic and engineering analyses, techniques, and methods for exploration and production from the GRF tight oil zones and the Paradox Formation shales where operations encounter technical, economic, and environmental challenges.

The detailed reservoir characterization and rock mechanics analyses will provide the basis for identification of “sweet spots” and improve well completion strategies for these undeveloped and under-developed reservoirs. The project will provide (1) improved and detailed reservoir characterization of the GRF tight oil plays in the Uinta Basin and the Paradox Formation shale oil plays (in particular the Cane Creek shale) in the Paradox Basin, targeting specific, brittle, high potential intervals, and (2) improved methods for identification of “sweet spots” using methods such as epifluorescence analysis of regional well core and cuttings. The reservoir characterization and analysis will be based on newly acquired and donated core, well logs, and well cuttings, which will be used to improve well placement and establish a relationship between natural fractures and productivity; thus reducing the number of wells and the environmental impact of drilling. Analysis of in situ stress, using geophysical and other geomechanical data, will be used to improve hydraulic fracture design for development of new fields or expanding established fields. The project will provide operators with the information they need to reduce exploration and development costs and drilling risks while maximizing oil recovery and increasing reserves.

Accomplishments

• Created project website: http://geology.utah.gov/emp/shale_oil [external site]
• An abstract on the Uteland Butte member of the GRF was accepted for the annual AAPG meeting to be held in Pittsburgh, PA, May 2013

Current Status (January 2013)
Members of the research team have recently started compiling lists of available cores and cuttings and conducting literature reviews. A bibliography of published stratigraphic, petrologic, and geochemical analyses of the Uinta and Paradox Basins will be compiled and published to the project website. Researchers will identify the best cores and cuttings for use in the project tasks.

In addition, several technology transfer opportunities will take place in January 2013:

• Presentation introducing the project to the UGS board (January 10)
• Presentation on Utah’s shale oil resources at the annual Utah Governor’s Energy Summit (January 10)
• Presentation introducing the project at the quarterly Uinta Basin Oil and Gas Collaborative Group Meeting in Vernal, UT (attended by several state and federal agencies, oil and gas companies, and the general public), (January 17)

Project Start: October 1, 2012 (award finalized on November 21, 2012)
Project End: September 30, 2015

DOE Contribution: $737,390
Performer Contribution, including subcontractor cost-share: $184,348

Contact Information:
NETL – Sandra McSurdy (Sandra.McSurdy@netl.doe.gov or 412-386-4533)
Utah Geological Survey - Michael Vanden Berg (michaelvandenberg@utah.gov or 801-538-5419)