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Ninth Quarterly Report
March 1, 1998 to May 30, 1998

Fractured Reservoir Discrete Feature
Network Technologies

A Project of
Fundamental Geoscience
Research and Development
BDM-Oklahoma
U.S. Department of Energy
National Oil and Related Programs

Contract Number
#G4S51728

Prepared by:
William S. Dershowitz
Paul L. LaPointe
Thorsten Eiben
Golder Associates Inc.
Redmond, WA

June 5, 1998
963-1357.521
q9.doc


TABLE OF CONTENTS

EXECUTIVE SUMMARY

1. QUARTERLY PROGRESS OVERVIEW

1.1 Overview of Progress
1.2 Project Deliverables
1.3 Issues and Resolutions

2. TASK PROGRESS

2.1 Active Tasks
2.2 Task Progress

3. SCHEDULE, DELIVERABLES, AND MILESTONES

3.1 Schedule
3.2 Milestones and Deliverables

4. REFERENCES

LIST OF TABLES

Table 2-1 Dip statistics for three vertical and one horizontal well in the Tract 17 test area

Table 2-2 Conditioned DFN Model for TAGS Support Simulations (Tract 17)

Table 2-3 Reservoir Parameter Simulations

Table 2-4 Grid Block Conductivity Statistics

Table 2-5 Grid Block Anisotropy Statistics

Table 2-6 Grid Cell Fracture Porosity and Intensity

Table 2-7 Sigma Factor, Block Volume, and Z-Factor Statistics

Table 2-8 Compartmentalization Analysis Summary

Table 2-9 Tributary Drainage Volumes

Table 2-10 Permeability Thickness (m2/s) for 15 m Production Intervals

Table 2-11 Technology Transfer Workshop

Table 3-1 Milestones and Deliverables

LIST OF FIGURES

Figure 2-1 Tracer Test History

Figure 2-2 Fracture Intensity

Figure 2-3 South Sea Region

Figure 2-4 Water-Oil Contact

Figure 2-5 Gas-Oil Contact

Figure 2-6 Oil Column Thickness by Well

Figure 2-7 Histogram PDF of Matrix Porosity - Tract 17

Figure 2-8 Histogram PDF of Gamma Ray Density - Tract 17

Figure 2-9 Seven Rivers M Surface From Stratigraphic Model

Figure 2-10 Spectral Gamma Ray Minus Uranium - Tract 17

Figure 2-11 Dip Azimuth - Tract 17

Figure 2-12 Second Derivative (Slope) Azimuth - Tract 17

Figure 2-13 Cumulative Distribution of Matrix Porosity - Tract 17

Figure 2-14 Tract 17 and 49 Well Response

Figure 2-15 Cumulative Steam Injection

Figure 2-16 Tract 17 and 49 Production Data

Figure 2-17 Seven Rivers "M" Horizon

Figure 2-18 Relation Between Extension Joint and Fault Orientations

Figure 2-19 Stereoplot of Fractures in Tract 17 Wells 1711, 1755, 2511

Figure 2-20 Bedding Dip from FMI Data - Tract 17

Figure 2-21 Stereoplot of Fractures in Conditioned DFN Model

Figure 2-22a Tract 17 Conditional DFN Model

Figure 2-22b Cross Section Through Tract 17 Conditioned DFN Model 29

Figure 2-23 Boundary Conditions for Numeric Permeameter Simulations

Figure 2-24 Histogram of Grid Block Conductivity

Figure 2-25 Spatial Pattern of Permeability

Figure 2-26 Grid Block Intensity P32 vs. Fracture Porosity

Figure 2-27 Spatial Pattern of Fracture Porosity

Figure 2-28 Matrix Block Algorithm

Figure 2-29 Cumulative Distribution of Matrix Block Size

Figure 2-30 Cumulative Distribution of Sigma Factor

Figure 2-31 Cumulative Distribution of Z Factor

Figure 2-32 Tract 17 Compartmentalization

Figure 2-33 Typical Tract 17 Compartment

Figure 2-34 Tract 17 Compartment Formation

Figure 2-35 Projected Compartment Area

Figure 2-36 Compartment Volume

Figure 2-37 Compartment Contact Area

Figure 2-38 Tributary Drainage Volume Analysis

Figure 2-39 Tract 17 Tributary Drainage Volume

Figure 2-40 Tract 17 Tributary Volume Fluid Exchange Surface Area

Figure 2-41 Typical Tract 17 Drainage Volume

Figure 2-42 Permeability Thickness Kh


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EXECUTIVE SUMMARY

This report describes progress on the project, "Fractured Reservoir Discrete Feature Network Technologies" during the period March 1, 1998 through May 30, 1998. The report presents summaries of technology development for discrete feature modeling in support of the TAGS process. In addition, the report provides information on project status, publications submitted, data collection activities, and technology transfer through the world wide web (WWW).