Summary Multistage hydraulically fractured wells are applied widely to produce unconventional resource plays. In naturally fractured reservoirs, hydraulic-fracture treatments may induce complex-fracture geometries that one cannot model accurately and efficiently with Cartesian and corner-point grid systems or standard dual-porosity approaches. The interaction of hydraulic and naturally occurring fractures almost certainly plays a role in ultimate well and reservoir performance. Current simulation models are unable to capture the complexity of this interaction. Generally speaking, our ability to detect and characterize fracture systems is far beyond our capability of modeling complex natural-fracture systems. To evaluate production performance in these complex settings with numerical simulation, fracture networks require advanced meshing and domain-discretization techniques. This paper investigates these issues by developing natural-fracture networks with fractal-based techniques. After a fracture network is developed, we demonstrate the feasibility of gridding complex natural-fracture behavior with optimization-based unstructured meshing algorithms. Then we can demonstrate that one can simulate natural-fracture complexities such as variable aperture, spacing, length, and strike. This new approach is a significant step beyond the current method of dual-porosity simulation that essentially negates the sophisticated level of fracture characterization pursued by many operators. We use currently established code for fractal discrete-fracture-network (FDFN) models to build realizations of naturally fractured reservoirs in terms of stochastic fracture networks. From outcrop, image-log, and core analysis, it is possible to extract fracture fractal parameters pertaining to aperture, spacing, and length distribution, including center distribution as well as a fracture strike. Then these parameters are used as input variables for the FDFN code to generate multiple realizations of fracture networks mimicking fracture clustering and randomly distributed natural fractures. After incorporating hydraulic fractures, complex-fracture networks are obtained for further reservoir-domain discretization. To discretize the complex-fracture networks, a new mesh-generation approach is developed to conform to nonorthogonal and low-angle intersections of extensively clustered discrete-fracture networks with nonuniform aperture distribution. Optimization algorithms are adopted to reduce highly skewed cells, and to ensure good mesh quality around fracture tips, intersections, and regions of extensive fracture clustering. Moreover, local grid refinement is implemented with a predefined distance function to control cell sizes and shapes around and far away from fractures. Natural-fracture spacing, length, strike, and aperture distribution are explicitly gridded, thus introducing a new simulation approach that is far superior to dual-porosity simulation. Finally, initial sensitivity studies are performed to demonstrate both the capability of the optimization-based unstructured meshing algorithms, and the effect of aforementioned natural-fracture parameters on well performance. This study demonstrates how to incorporate a fractal-based characterization approach into the current work flow for simulating unconventional reservoirs, and most importantly solves several issues such as nonorthogonal intersections, extensive clustering, and nonuniform aperture distribution associated with domain discretization with unstructured grids for complex-fracture networks. The proposed meshing techniques for complex fracture networks can be easily implemented in existing preprocessing, unstructured mesh generators. The sensitivity study and the simulation runs demonstrate the importance of fracture characterization as well as uncertainties associated with naturally fractured reservoirs on well-production performance.
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