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Gas and Oil Producing Shale
and Nonconventional OilOpportunity with Knowledge
and Technology
r. marc bustin
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DEFINITION OF
UNCONVENTIONAL RESOURCES
hydrocarbon distribution controlled not necessarily by
buoyancy no obvious reservoir seal Low Matrix Permeabilities (
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UNCONVENTIONAL GAS AND
RESOURCE PLAYS
TIGHT GAS SANDS
Continuous Deposition
Low Permeability
Both Traditional andBasin-Center Settings
COALBED METHANE
Self-Sourcing Reservoir
Gas Adsorbed in Coal
Requires Depressuring andUsually Dewatering
GAS and Oil Prod. SHALES
Self-Sourcing Plus TraditionalPorosity Reservoirs
Gas Adsorbed in Organic Matter
Requires Pervasive NaturalFract. Network or K pathways
RESOURCEPLAYS
Kuuskraa, 2006
METHANEHYDRATES
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UNCONVENTIONAL GAS AND
RESOURCE PLAYS
TIGHT GAS SANDS
Continuous Deposition
Low Permeability
Both Traditional andBasin-Center Settings
COALBED METHANE
Self-Sourcing Reservoir
Gas Adsorbed in Coal
Requires Depressuring andUsually Dewatering
GAS and Oil Prod. SHALES
Self-Sourcing Plus TraditionalPorosity Reservoirs
Gas Adsorbed in Organic Matter
Requires Pervasive NaturalFract. Network or K pathways
RESOURCEPLAYS
Kuuskraa, 2006
METHANEHYDRATES
opportunity
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unconventionalreservoir rock
conventionalreservoir rock
UNCONVENTIONAL OIL PLAYS
modified form Russum, 2010
Conventional Oil in Unconventional RocksUnconventional Oil in Conventional Rocks
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Russum, 2010
0
opportunity
opportunityopportunity
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opportunity - understanding andevaluating rock systems and application of
appropriate technologies can result in
commercial exploitation of hydrocarbon
resources previously considered sub
economic
assess to opportunity- network ofcontacts and companies who want to dobusiness and savvy to make it work
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East-West Competitive Advantage
experienced technical professionalsaccess to ideas, technology and innovation
strong committed board of directors
business savvy strong and very very aggressive financial
support
access to opportunity- strong land positionand access to much more
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GAS SHALES- source rocks with retained HCs
Cap Rock
Source Rock
Reservoir Rock
Gas
Oil
Gas and Oil
Burial ofOrganic Rocks
Kerogen
Biogenic Gas
ThermogenicGas and Oil
Wet Gas
Dry Gas
background
Oil & Gas Shales- source rocks with retained HCs
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GAS SHALES- source rocks with retained HCs
Cap Rock
Source Rock
Reservoir Rock
Gas
Oil
Gas and Oil
Burial ofOrganic Rocks
Kerogen
Biogenic Gas
ThermogenicGas and Oil
Wet Gas
Dry Gas
Antrim
Eagleford
Haynesv.
Oil & Gas Shales- source rocks with retained HCs
background
GreenRiver
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Conventional Oil in Unconventional RocksUnconventional Oil in Conventional Rocks
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Conventional Oil in Unconventional RocksUnconventional Oil in Conventional Rocks
heavy oilreservoir access
tight rock
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GAS SHALES- source rocks with retained HCs
Cap Rock
Source Rock
Reservoir Rock
Gas
Oil
Gas and Oil
Burial ofOrganic Rocks
Kerogen
Biogenic Gas
ThermogenicGas and Oil
Wet Gas
Dry Gas
Antrim
Eagleford
Haynesv.
0.38 nm
background
Oil & Gas Shales- source rocks with retained HCs
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Complexities and Predictions
ANTRIM SHALELEWIS SHALEOHIO SHALE
facies controlled permeability
fracture or fraced controlled permeability
haynesville barnett fayetville woodford ohio lewismontney eagle ford
background
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Definition: Gas/Oil Shale
Shale gas/oil is defined as a fine grained
reservoir in which gas/oil is self sourced andsome of the gas is stored in the sorbed state
Sorbed gas is predominately stored in theorganic fraction so organics present
Not just shaleBustin, 2005, AAPG
Background
Clay
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Classify Petroleum Systems as
Conventional
USGS 2003
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orContinuous
USGS 2003
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Characteristics of Continuous
Accumulations Regional in extent
Diffuse boundaries
Low matrix permeabilities
No obvious seals or traps No hydrocarbon/water contacts
Close to or are source rocks with non expelledhydrocarbons
Low recovery factors Includes tight sandstones, coalbed gas, oil andgas in shale and chalk
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NATURAL GAS PYRAMID
HighQuality
Medium Quality
Low Quality
Tight Gas Sands
CBM Gas Shale
Low Btu Gas Hydrates / Other
1000 md
100 md
1 md
0.00001 mdProduced
Reserves
Undiscovered ResourcesNew Fields CBM
Tight Gas Gas Shales Low Btu
Emerging / Future ResourcesSub-Volcanic New Gas Shale New Tight Gas
Deep CBM Basin-Center
Gas Hydrates / Other
technology price
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0.5 mm
Eagle Ford ShaleWet BarnettWet MarcellusDuvernay
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Implications of the New Gas Shale World
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What are the World Gas ShaleResources and Reserves?
estimates based on source rock studies withassumptions about how much gas retained in sourcerocks
-Rogner 1997 estimate Resource Endowment at 16,119TCF-US NPC estimates total unconventional at about 32 000TCF
-IEA World Energy Endowment assumes 40% ofendowment is recoverable 6350 TCF
-so we are pretty much making intelligent guesses.....
Estimates of World Wide Distribution of Unconventional Gas Resources
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US NPC SPE 68755
Region CoalbedMethane (TCF)
Shale Gas(TCF)
Tight Gas(TCF)
Total(TCF)
North America 3017 3842 1371 8228
Latin America 39 2117 1293 3448Western Europe 157 510 353 1019
Central and East
Europe
118 39 78 235
Former Soviet Union 3957 627 901 5485
Mid East & NorthAfrica
0 2548 823 3370
Sub-Saharan Africa 39 274 784 1097
Centrally planned Asia
and China
1215 3528 353 5094
Pacific (OECD) 471 2313 705 3487
Other Asia Pacific 0 314 549 862
South Asia 39 0 196 235
World 9051 16112 7406 32560
Estimates of World Wide Distribution of Unconventional Gas Resources
Source: "Tight Gas Sands", Journal of Petroleum Technology, June 2006, Page 86-93.Table 1 - Distribution of Worldwide Unconventional-gas resources (After Rogner 1996, Taken from Kawata and Fujita 2001)
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North American Gas Production Forcast
EnCana, 2010, IP
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Producing Shale
Plays
Horn River100-150 Bcf/sect.
Montney100 Bcf/sect.
Barnett140-160Bcf/sect.
Fayetteville25-65 Bcf/sect.
Haynesville150-200 Bcf/sect.
Marcellus
45 Bcf/sect.
Woodford
100 Bcf/sect.
Antrim6-15 Bcf/sect.
Utica45 Bcf/sect.
Lewis40 Bcf/sect.
Ohio5-10Bcf/sect.
New Albany7-10Bcf/sect.
Eagle Ford50-150 Bcf/sect.
Duvernay? Bcf/sect.
? Oil
green denotesliquids production
based mapmodified from
EnCana IP. 2009
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TransCanada Pipeline (June 2010, Investor Presentation)
Projected Gas SupplyTransCanada Pipeline
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EnCana Investor Presentation, 2010
Trend to fewer wells with longer lateral lengths
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Range Resources, April 2010
Trend to fewer wells with longer lateral lengthswith more frac stages
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Southwest Energy, March 2010
the learning curvecontinuesto flatten
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The costs of shale gas
Source: Chesapeake Energy:January 2010 Investor Presentation
Source: Vello Kuuskraa, President of ARI Inc, in presentation to the Copenhagen summit, 12December 2009
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Horsfield and Schulz, 2010 AAPG
unconventional opportunities exist where ever
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Conventional Gas Distribution
Source: Oil and Gas Journal
unconventional opportunities exist where everconventional production existsand many other areas
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Geological Characteristics Common to
Producing Gas and Oil Producing Shales
Organic rich
Marine to transitional marine
Interbedded source and seal Comparatively thick
Permeability enhanced by fracturing
or interbedded facies with higher
perm.
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What gas/oil shale properties are
important?
gas/liquid composition
gas and liquid capacity and content-sorbed and free gas
permeability- fracture or facies controlled
thickness
lateral extent ease of completion, reservoir access
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SOME EXAMPLES
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Ohio
Lewis
Background
New Albany
SOME EXAMPLES
Barnett
Antrim
Outcrop
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TEM
50 000 nm
SEM
Background
Shales are heterogeneous rocks
200 000 nm
Outcrop
HandSpec.
Light
FESEM
200 nm
http://ccm.geoscienceworld.org/content/vol52/issue5/images/large/08-08.jpeghttp://ccm.geoscienceworld.org/content/vol52/issue5/images/large/08-08.jpeghttp://ccm.geoscienceworld.org/content/vol52/issue5/images/large/08-08.jpeg7/31/2019 EWP Applied Technology
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4500
Background
Pressure and Temperature Space of
Producing Shales
0 20 40 60 80 140
0
1500
3000
Temperature C
Barnett
LewisOhio
New AlbanyAntrim
Pressur
e(PSIA) Woodford
CaneyFayetteville
Eagle Ford
Muskwa
Haynesville
UticaMarcellus
Maturity and Organic Matter Content
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Maturity and Organic Matter Content
Background
1.6
Antrim
New Albany
Barnett
BIOGENIC GAS
OIL WINDOWRomax(%)
0
0.4
0.8
1.2
TOC (%)0 4 8 12 16 20 24
THERMOGENIC GAS
WoodfordCaney
Fayetteville
Muskwa
2.0Haynes-
ville
Eagle FordUtica
Marcellus
Ohio
Lewis
C l iti d P di ti
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Complexities and Predictions
ANTRIM SHALE
LEWIS SHALEOHIO SHALE
facies controlled permeability
fracture or fraced controlled permeability
Muskwa/O
tterPark/Evie
Nordeg
g
Buckinghorse
Shaftsbury
Montne
y
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What We Know!
rocks referred to as gas/oil shales
range from true shales to tight sands
individual formations, members orunits within a shale unit may be
extremely heterogeneous in
mineralogy and fabric and hence poresystem and flow characteristics
Gas/Oil Shale Model
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Shale
Mapping TOC
ThicknessTOC
Geochemistry
Gas CapacitiesAdsorbed Gas
Free Gas Solution Gas
Producibility
Moisture
Maturity
Al2O3 fraction
Fracturing
Temperature
Pressure
Area
PorositySedimentology
Diagenesis Silica contentsCoarser horizons
Gas/Oil Shale Model
So, Sg, Sw,
Permeability
Wireline logs
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fabrics/
fracturesthickness
effective
stress
permeabilitydiffusivity
Reservoir exploration
anddevelopment
TOC
Porosity
gas in place
gas in place deliverability
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fabrics/
fractures
effective
stress
permeabilitydiffusivity
Reservoir exploration
anddevelopment
TOC
Porosity
thickness
gas in place
gas in place deliverability
Outline
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Factors Governing OOIP & GIP in Shale
Area
Thickness
Pressure
Temperature
Porosity
Gas Saturation
Area
Thickness
Pressure
Temperature
Total Organic
Content
Maturity
Free Gas in Poresand Fractures
Adsorbed Gas
Total Gas = Free Gas + Adsorbed Gas+Solution Gas
Solution Gas
Area
Thickness
Pressure
Temperature
Total Bitumen/
Liptinite content
Maturity
BACKGROUND
Isopach Net and Gross PayFrac barriers
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OGIP Workflow Frac barriers
Structure Map
Vertical Depth
Temperature Gradient
Pore pressure Gradient
Bulk density
AdsorbedGas
Free
Gas +Liquids
Solution
Gas
AdsorptionIsotherms onsamples ofvarying TOC
MeasurementTOC onrepresentativesamples
Calibrationwell logsto TOC
Interpolationadsorbed gasthrough payinterval viacalibrated logs
Measurementof pore
compressibility
Measurementtotal porosity,Sw, Sorepresentativesamples
Calibrationporosity, Sw
and So towell logs
Interpolationfree gas + HCliquids innet pay viacalibrated logs
Measurementor calculationgas solubilityreservoir P & T
& salinity
Measurementtotalmobile water
Interpolationof solution gasthrough payinterval viacalibrated logs
Calibrationporosity, Swand So towell logs
TOTAL OGIP = adsorbed + free + solution gas + liquid HCs
GasCompositio
n
Canister Desorptiongas sampling f(t)
Gas Chromatographyisotopic analyses
Accessible OGIP = Total OGIP/m3 Stimulated Reservoir Volume
sample basedlog based
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type curves are decline curves that are anticipated to (or do) reflect the
production profile of a well with a particular completion (ie laterallength, number of stages etc.) and represents the P50 case
at exploratory stage type curves of what are considered to be
analogous reservoir are used with early production IPs are
manipulated and later b
typically operational changes and more stages result in higher IPs with
typcally similar curve shapes
Applying Type Curves
number of stages
EnCana, 2009 IP
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fabrics/
fractures
effective
stress
permeability
diffusion
Reservoir exploration
and
development
TOC
Porosity
thickness
gas in place
gas in place deliverability
Geomechanics Rock Mechanics
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whether a rock is currently fractured and its ability to
be fractured are dependent on mechanical propertieswhich vary with mineralogy, fabric and diagenesis andhence stratigraphy
goal is to develop a geomechanical model of the
potential reservoir to assist in drilling, completions,and development
Geomechanics- Rock Mechanics
the future is mechanical stratigraphy
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required for:
predicting orientation of frac (SRV) density, width and orientation of natural fractures optimal direction for horizontal wells for stability
and for intersecting fractures that are open borehole stability change in reservoir permeability during production
requires knowledge of: in situ stress orientation and magnitude
pore pressure pre existing rock fabric and moduli thermal and chemical state of reservoir and fluid
system
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0000
appears most thermogenic gas and oil shales have FEW pre-existing fractures or those that exist are healed
object then is to shatter the rock during fracing to increase the
surface area available for drainage maximize the stimulated reservoir volume
not to connect to a pre-existing fracture network many shales do not have a pre-existing k network
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0000
appears most thermogenic gas shales have FEW pre-existingfractures or those that exist are healed
object then is to shatter the rock during fracing to increase the
surface area available for drainage maximize the stimulated reservoir volume
not to connect to a pre-existing fracture network many shales do not have a pre-existing k network
Strong correlation between SRV
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0
20
40
60
80
100
0 20 40 60 80 100 120 140 160Effective NormalStress (Residual), s , MPa
SheraStress,
t
,
MPa
Mohr's circle at 14 MPa Mohr's circle 31 MPa Coulomb failure Envelope
Friction Angle = 44.19
Linear Cohesion = 7 MPa
Stimulated Rock Volume (SRV) and shape ofSRV is a function of the in situ stress field,mechanical properties of the rocks and fracdesign and execution
Mayerhofer et al SPE 102103
gand production (excellentcorrelation between number ofstages at IP)
Hmin=Hmax
Hmin>>Hmax
SRV estimated from microseismic
SRV function of completion
completion function of in situstress, rock properties and designand implementation of frac
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Geomechanics and
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Diffusion/
MassFlow
MatrixBlock
Darcy Flow
Coals- fracture (cleat)spacing is so low thatmatrix perm/diffusion is
not considered ratelimiting
Shales- fracture spacingis commonly >5 cm andmatrix perm/diffusion
may be rate limiting
Geomechanics andPermeability/Diffusion Rate
P bilit /Diff i
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Permeability/Diffusion
reservoir perm requires well tests
matrix perm/diff can be measured inlab
Diffusion/Advection
5 nm
Desorption
controlling variables
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controlling variables
fracture permeability
fracture fabric
effective stress
rock mechanics
matrix permeability/diffusion
induced during fracs
existing fabric
depth
far field stressmoduli
mineralogyfabric
mineralog
yfabriceffectivestressrockmechanics
gascomposition
deliverabilitypressure/temperature/fluid properties
fracture spacing
I t t d O ti i ti
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Integrated OptimizationProcess
Quirk, 2010
Integration Optimization
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Integration Optimization
Process 1. It helps answer the questionsHow many
fracs do I need in my horizontal wellbore? How
big should my fracs be?
2. It integrates many types of data into onereservoir package, maximizing value for your
information.
3. It provides a way to model fractures in the
complex fracturing we find in shale gas
reservoirs (i.e. Horn River/Barnett).
The process can be used in any reservoir.
Quirk, 2010
I f ti th t C ll ti Mi i i D t t
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Information that Collecting a Microseismic Dataset
Provides
Fracture Azimuth Fracture Length
Fracture Height
Fracture Complexity Calculation of Stimulated Reservoir Volume
Evaluation of the effectiveness of the
completion system
Calibrated Fracture Modeling and Integration
of Microseismic into a Reservoir Simulator
Quirk, 2010
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Trican fracing shale well in north eastern British Columbia
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Horn River Basin
11 mapped slickwater stages
Generally complex fracturing
Long fracture half lengths
NE-SW fracture azimuth
Stimulated Reservoir Volume
(SRV) is crucial to production
Portions of the horizontal are
under-stimulated
Apache Website
Horn River Basin from
http://www.apachecorp.com/Resources/Upload/PrevArticleFiles/files/Apache_2008_Analyst_Review_08_Canada.pdf
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Conclusions
Low permeability reservoirs require large SRVs withsmall fracture spacing and adequate frac conductivity
Important to understand parameters in the reservoir that
will create complexity so fracture spacing in the SRV can
be understood Engineering measures to increase SRV and frac spacing
Length and orientation of horizontal well
Treatment size
Number of stages, number of perf clusters More stages and clusters in a cased/cemented completion
increased likelihood of dense fracturing
Zipper fracs, Simul-fracs
developing a strategy ranking
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developing a strategy, ranking
prospects.....where do you start?vast resources of gas in tight rock either sorbed or free state how do you explore?
screens:
1. thickness
2. lateral extent
3. toc
4. maturity
5. mineralogy6. reservoir accessibility
7. rock mechanics
8. frac barriers
9. fluid sensitivity
10. reservoir pressure
11. cost
12. Poissons Ratio13. Mud logs./shows
need to know at start ifthere is enough gas inplace to warrant the cost
of exploring andcompletion what is thesize of the prize)
development risk
max. SRV; optimization ofdrilling and completions
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AttributesLithology fine grained, will indurated
Thickness > 40 m
Current TOC >1% (min. not known)
Effective Porosity to Gas >2.5%Young Modulus > 4 mmpsia
Poisson's Ratio
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Matrixporosity
MatrixPerm.
Maturity In SituStress
Pressure E
PROSPECT WINDOW
Depth\Diagen
esis
summary
Matrix Matrix TotalRock
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Matrixporosity
MatrixPerm.
TotalGas
ocMechanics/Fractures
PROSPECT WINDOW
Depth\Diagen
esis
optimum zone
trade off betweenmany variables and
will be shalespecific
summary
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