Evaluation of gas production from multiple coal seams: A simulation study and economics

Abstract

Gas production from multiple coal seams has become common practice in many coal basins around the world. Although gas production rates are typically enhanced, the economic viability of such practice is not well studied. In order to investigate the technical and economic feasibility of multiple coal seams production, reservoir simulation integrated with economics modelling was performed to study the effect of important reservoir properties of the secondary coal seam on production and economic performance using both vertical and horizontal wells. The results demonstrated that multiple seam gas production of using both vertical and horizontal wells have competitive advantage over single layer production under most scenarios. Gas content and permeability of the secondary coal seam are the most important reservoir properties that have impact on the economic feasibility of multiple seam gas production. The comparison of vertical well and horizontal well performance showed that horizontal well is more economically attractive for both single well and gas field. Moreover, wellhead price is the most sensitive to the economic performance, followed by operating costs and government subsidy. Although the results of reservoir simulation combined with economic analysis are subject to assumptions, multiple seam gas production is more likely to maintain profitability compared with single layer production.