Optimisation and economical evaluation of infill drilling in CSG reservoirs using a multi-objective genetic algorithm

Abstract

Water production in the early life of Coal Seam Gas (CSG) recovery makes these reservoirs different from conventional gas reservoirs. Normally, a large amount of water is produced during the early production period, while the gas-rate is negligible. It is essential to drill infill wells in optimum locations to reduce the water production and increase the gas recovery. To optimise infill locations in a CSG reservoir, an integrated framework is developed to couple the reservoir flow simulator (ECLIPSE) and the genetic algorithm (GA) optimisation toolbox of (MATLAB). In this study, the desired objective function is the NPV of the infill drilling. To obtain the economics of the infill drilling project, the objective function is split into two objectives. The first objective is the gas income; the second objective is the cost associated with water production. The optimisation problem is then solved using the multi-objective solver. The economics of the infill drilling program is investigated for a case study constructed based on the available data from the Tiffany unit in San Juan basin when gas price and water treatment cost are variable. Best obtained optimal locations of 20 new wells in the reservoir are attained using this optimisation framework to maximise the profit of this project. The results indicate that when the gas price is less than $2/Mscf, the infill plan, regardless of the cost of water treatment, is not economical and drilling additional wells cannot be economically justified. When the cost of water treatment and disposal increases from $0.01/STB to $4/STB, the optimisation framework intelligently distributes the infill wells across the reservoir in a way that the total water production of infill wells is reduced by 26%. Simulation results also indicate that when water treatment is an expensive operation, lower water production is attained by placing the infill wells in depleted sections of the coal bed, close to the existing wells. When water treatment cost is low, however, infill wells are freely allocated in virgin sections of the coal bed, where both coal gas content and reservoir pressure are high.