F3G WORKSHOP Findings, Results, and Codes from the RPSEA Project "Coupled Flow-Geomechanical-Geophysical-Geochemical (F3G) Analysis of Tight Gas Production" 24 March 2014 Texas A&M University, Petroleum Engineering Dept., Richardson Building, Rm. 309 NOTES (T.A. Blasingame — 24 March 2014)

Notes: RPSEA Meeting 24 March 2014

● Discussion of Results: — Stencil concept — where does it NOT apply? (e.g., inclined systems) — Combination of natural and induced fractures? (how to represent?) — What can we do with the horizontal fracture concept? (this is the combined vertical and horizontal fracture case — field observations of power-law rate slope trends on the order of 1/3 tend to confirm this observation) — Sensitivity analyses to identify most relevant parameters. Specifically, what can/does dominate flow behavior?

● Technology Needs: — (unrelated to this project) Tilt-meter results may help to identify/interpret horizontal fractures. — Description of fractures/placement of proppant — can we create better fracture models? (using coupled- geomechanical flow models?) — Use of Krauklis wave (slow propagation) for fracture detection. (Moridis to follow-up) — Need to characterize/qualify heterogeneity for gas shales/liquids-rich systems — how do we characterize the flow architecture? — How do we distinguish differential downhole performance with surface data? — How do we reconcile detail with reservoir scale in modeling unconventional systems? — Quantification of uncertainty needs to be a priority — model-based analysis. — Permanent monitoring — rates, temperatures, pressures, composition, etc. in unconventionals — not just mega-fields. — More efficient solutions/tools/machines for coupled flow geomechanics.

● Recommendations/Suggestions: — Some sort of constraint(s) on "random walk" fractures. — Integration of geology in the fracture propagation for MFHW cases. — Incorporation of capillary pressure concepts in reservoir modeling and interpretation. — Can we/should we model flowback performance as well as post-flowback performance? (modeling issues) — Questions about nano-volume PVT behavior — characterization and behavior. (defer to Crisman project) — Multiwell models for field development (spacing sensitivity). — Why are the flow regime signatures for "liquids-rich" cases compressed? How do we represent these phenomena in a meaningful way? — Is there a non-hydraulic fracturing solution for modifying permeability to mimic the performance of a multi-fracture horizontal well? — How do we pursue infill programs in shales? — How do we better integrate information in high density well patterns? Better methods of analysis/interpretation? Better data? Different data? F3G WORKSHOP Findings, Results, and Codes from the RPSEA Project "Coupled Flow-Geomechanical-Geophysical-Geochemical (F3G) Analysis of Tight Gas Production" 24 March 2014 Texas A&M University, Petroleum Engineering Dept., Richardson Building, Rm. 309 AGENDA Texas A&M University Component (Blasingame) 09:00 — 09:15 Flow Regimes in Multiply-Fractured Horizontal Wells in Tight Gas and Shale Gas Reservoir Systems (FREEMAN — Hilcorp) 09:15 — 09:30 Numerical Modeling of Fractured Shale-Gas and Tight-Gas Reservoirs using Unstructured Grids (OLORODE — Afren) 09:30 — 09:45 Numerical Simulation Study to Investigate Expected Productivity Improvement using The "Slot-Drill" Completion (ODUNOWO — DeGolyer and MacNaughton) 09:45 — 10:00 A Semi-Analytic Solution for Flow in Finite-Conductivity Vertical Fractures Using Fractal Theory (COSSIO — Pioneer Natural Resources) 10:00 — 10:15 Rate-Decline Relations for Unconventional Reservoirs and Development of Parametric Correlations for Estimation of Reservoir Properties (ASKABE — Oxy) 10:15 — 10:30 Analytical and Numerical Solutions for the Case of A Horizontal Well with a Radial Power-Law Permeability Distribution (BROUSSARD — Chevron)

10:30 — 10:45 Morning Coffee Break

10:45 — 11:00 An Integrated Well Performance Study for Shale Reservoir Systems — Application to the Marcellus Shale (RISER — Hunt Oil) 11:00 — 11:15 A Simulator with Numerical Upscaling for the Analysis of Coupled Multiphase Flow and Geomechanics in Heterogeneous and Deformable Porous and Fractured Media (YANG — Chevron) 11:15 — 11:30 Study of Multi-Scale Transport Phenomena in Tight Gas and Shale Gas Reservoir Systems (FREEMAN — Hilcorp) 11:30 — 11:45 Stochastic Modeling of a Micro-Fracture Network in a Hydraulically Fractured Shale-Gas Reservoir (MHIRI — TAMU)

11:45 — 13:00 Lunch Break Stanford University Component (Zoback) 13:00 — 13:25 Multi-Scale Investigation of Fluid Transport in Gas Shales (HELLER — BP) 13:25 — 13:50 Micro-Earthquake Studies During Stimulation of Low Permeability Gas Reservoirs (HURD — EOG)

13:50 — 14:00 Afternoon Coffee Break

Lawrence Berkeley National Laboratory (Moridis) 14:00 — 14:30 Laboratory and Field Studies of Shale Properties and Behavior, and of Novel Methods for Fracture Detection (KNEAFSEY) 14:30 — 15:15 The TOUGH+RealGasH2O and TOUGH+RealGasBrine Codes for the Simulation of Non-Isothermal Flow and Transport Processes in Tight/Shale Gas Reservoirs — Code Description and Applications (MORIDIS) 15:15 — 16:15 The ROCMECH Code for the Analysis of coupled Flow, Thermal, Geomechanical and Geophysical Processes — Code Description and Applications to Tight/Shale Gas Problems (KIM)

Summary, Discussions and Recommendations (Moderated by Moridis and Blasingame) 16:15 — 16:45 Closing Comments — Summary, Discussions, and Recommendations 16:45 Adjournment