Can a Cube Model Mitigate Parent-Child Effects and Improve Oil Recovery in the Permian Basin

Abstract

Abstract As the shale development activity in the Permian continues to be strong and oil prices recover, increasing numbers of infill child wells are being drilled as operators want to improve recovery from each section and continue to meet their production targets. However, production data suggests that both parent and child wells suffer from production losses if they are located too close to one another. The cube model concept, which is also referred to as supersize fracturing, was first introduced about two years ago and has been piloted in the Permian Basin. In a cube model, multiple wells, usually more than 30 horizontal wells with five to six wells in each different horizontal layer, are drilled and completed in the same section. Operators produce those wells simultaneously with the objective of mitigating the parent-child effect of unconventional reservoirs. Nevertheless, with all wells producing at the same time and competing for production from the first day, will this benefit ultimate recovery? This question was investigated through comprehensive fracture and reservoir modeling and simulation. A reservoir dataset for the Spraberry Formation in the Permian Basin was used to build a hydraulic fracture and reservoir simulation model. Different field development strategies were studied. Models representing a traditional parent-child scenario with five parent wells completed and produced one year before four infill child wells and a traditional parent-child scenario with five parent wells completed and produced five years before four infill child wells are compared. In these cases, a geomechanical finite-element model (FEM) was used to quantify the changes to the magnitude and azimuth of the in situ stresses from the various reservoir depletion scenarios. Next, a cube model with nine horizontal wells completed and produced simultaneously was analyzed. These three scenarios were expanded to include 19 horizontal wells with the same methodology. This study aims to help operators in the Permian Basin, as well as in other unconventional reservoirs to understand how different field development strategies affect ultimate hydrocarbon recovery and net present value.