Reservoir Characterization and History Matching of the Horn River Shale: An Integrated Geoscience and Reservoir-Simulation Approach

Abstract

Summary: We present a systematic approach to integrate geoscience and dynamic reservoir modeling for two multiwell pads in the Horn River basin, Canada. The Horn River shale-gas play is a world-class unconventional gas resource and is being exploited by use of multistage hydraulic fracturing along horizontal wells. The two well pads, Pad-1 and Pad-2, selected for this study comprise eight and seven horizontal wells, respectively, with 1 to 7 years of production history. Numerical modelling of shale reservoirs has historically been a problematic low-confidence exercise because of the difficulties associated with inadequate characterization of the geologic framework of shale plays; the problems of estimating the properties of induced-fracture networks; and the complexities of capturing multiphase flow in fracture networks and wellbores during production, especially in the face of offset-well activity. This paper provides insights into these issues. The geoscience modelling activity begins with integrating information from cores, well logs, petrophysical analyses, and seismic data into a 3D geocellular model. At first, the model is built upon a simple lithostratigraphic concept, which is the basis of the numerical-flow-modelling exercise of Pad-1. The 3D geocellular model is thereafter thoroughly reworked to incorporate a sequence-stratigraphic perspective to the Horn River shale. This reworked geocellular model has a profound impact on the dynamic modelling of Pad-2. Also, hydraulic conductivity of induced and natural fractures is measured on Horn River core plugs at reservoir conditions to constrain conductivity values assigned to primary, secondary, and tertiary flow paths into dynamic reservoir modelling. As a result of the integrated work flow, we have achieved a history match allowing us to further understand the hydraulic-fracturing behaviour and its impact on producing shale reservoirs of the Horn River formation. On the basis of the findings, we recommend targeting the Evie and Otter Park shale reservoirs for landing horizontal wells and multistage fracturing when the Carbonate Fan is thin; this approach can produce all three compartmentalized shale reservoirs of the Horn River formation. Ultimately, the objective of any reservoir modelling project is to provide a range of reliable forecast of future performance that is grounded in representative geoscience interpretations and that takes operational constraints into account. The technical learnings described in this work will be helpful to further understand hydraulic-fracturing behaviour and its impact on producing shale reservoirs.