OPTIMIZATION OF WELL

PERFORMANCE:
INTEGRATING VERTICAL, HORIZONTAL,
AND INJECTOR WELLS FOR ENHANCED
RESERVOIR RECOVERY

PETE 4102-GROUP 4
Asi, Daniela
Baculo, Jimuel
De Villa, Marc Justin
Hernandez, Delight Francine
Pontanoza, Donald
INTRODUCTION

In the dynamic and ever-evolving field of oil extraction, the relentless pursuit
of maximizing hydrocarbon recovery while maintaining operational efficiency
and safety has become more critical than ever. As the complexities of
reservoir management grow, a well-defined, systematic approach is necessary
—one that incorporates cutting-edge technologies, comprehensive data
analysis, and strategic planning at every stage. This document serves as an in-
depth guide to enhancing oil recovery by focusing on the core practices of
well construction and meticulous reservoir management, offering practical
solutions to the challenges faced by modern oil extraction operations.

The foremost goal of this guide is to outline a robust framework for optimizing
well placement and design, a crucial aspect of maximizing the reservoir’s
production potential. A key strategy is to target areas within the reservoir that
have the highest oil saturation, ensuring that the most productive zones are
fully tapped. This approach helps to significantly increase oil production while
minimizing the risk of bypassing valuable hydrocarbon reserves. The efficient
execution of horizontal and vertical well trajectories is paramount; horizontal
wells are designed to maximize contact with the reservoir’s productive layers,
while vertical wells are placed to access deeper, oil-rich zones that might
otherwise be missed. In tandem, the strategic placement of injectors in
regions where pressure support is needed plays a vital role in maintaining
balanced reservoir pressure, which is essential for improving fluid movement
and enhancing overall recovery.

Another critical element of successful reservoir management is the

integration of advanced simulation models into the decision-making process.
These models provide a powerful tool for engineers to visualize the complex
fluid dynamics and pressure distribution within the reservoir. By simulating
various drilling and production scenarios, engineers can make real-time
adjustments to key well parameters such as depth, angle, and completion
strategies, tailoring them to the unique characteristics of the reservoir. This
simulation capability also enables the identification and resolution of potential
issues before actual drilling begins, reducing the chances of costly errors in
well placement or design. As a result, the overall efficiency of production is
improved, and the risk of operational setbacks is minimized.
INTRODUCTION
Additionally, the interaction between oil and water volumes within the
reservoir is a crucial factor that profoundly influences production strategies.
Continuous monitoring of these volumes provides valuable insights into the
reservoir’s behavior over time, allowing for informed decision-making
regarding well placement and recovery techniques. As oil production naturally
declines due to the depletion of the reservoir’s resources, understanding
trends in water influx and management measures becomes increasingly
important. Effective water management strategies, such as water injection or
re-injection, can be employed to sustain production levels and extend the
productive life of the reservoir, ensuring that the remaining hydrocarbons are
recovered in a cost-effective manner.

This document also highlights the significant role that 2D and 3D modeling
techniques play in reservoir management. These visualization tools offer a
detailed representation of the reservoir’s geometry, fluid distribution, and
structural characteristics. By leveraging both 2D and 3D models, engineers
gain a comprehensive understanding of the spatial complexities of the
reservoir, allowing them to plan well trajectories with greater precision. This
detailed visualization aids in identifying the most promising areas for drilling
and provides a clearer picture of the interconnections between wells and the
surrounding reservoir layers. Ultimately, these models lead to more informed
and strategic management decisions, which are critical for optimizing the
extraction of hydrocarbons while minimizing risks and operational
inefficiencies.

Lastly the integration of advanced technologies, strategic planning, and

continuous monitoring forms the cornerstone of successful reservoir
management and oil recovery operations. By adopting a data-driven approach
that combines state-of-the-art simulation tools with real-time adjustments
and comprehensive reservoir modeling, industry professionals can enhance
production efficiency, reduce risks, and allocate resources more effectively.
This guide aims to equip those in the oil and gas industry with the knowledge,
techniques, and strategies necessary to navigate the complexities of modern
reservoir management. Through a commitment to innovation, excellence, and
sustainable practices, the full potential of oil reservoirs can be unlocked,
contributing to more efficient resource utilization and a more sustainable
energy future.
OBJECTIVES
The objectives present a systematic method for building wells and managing
the reservoir to enhance oil recovery while ensuring efficient and safe
operations.

Target regions with the highest oil saturation when

constructing horizontal and vertical wells to
1
maximize hydrocarbon extraction and minimize
bypassed reserves.

Plan and execute horizontal well trajectories that

optimize contact with the reservoir's most productive
2
layers, and strategically position vertical wells to
efficiently reach deeper oil-rich zones.

Strategically locate injectors in regions that require

pressure support and enhanced recovery to
3
maintain balanced reservoir pressure and improve
fluid movement.

Utilize simulation models to regulate reservoir

4
pressure and fluid flow, ensuring that both
horizontal and vertical wells and injectors function
together to keep the reservoir balanced and
optimize long-term oil recovery.
RESERVOIR
CHARACTERIZATION

Geometric and Structural Analysis:

2D and 3D Modeling: The reservoir is represented through
1
both 2D and 3D models, which provide a detailed
visualization of its geometry and structural characteristics.
The 2D model uses a color-coded grid to represent Oil in
Place (OIP) values, while the 3D model incorporates depth
(Z-axis) to illustrate the reservoir's complexity.
Well Trajectories: The models display well trajectories (H1-
H7 for horizontal wells and V1-V7 for vertical wells),
indicating the interaction between reservoir fluids and the
well network.

Fluid Distribution:
2 Oil and Water Dynamics: The data highlights a
stepwise improvement in oil production rates, with a
corresponding increase in water production as the
reservoir depletes. This reflects the typical behavior of
reservoirs where water often breaks through during
the final phases of depletion, .
OIP Values: The OIP values range from low (86.76 sm³)
to high (1081.64 sm³), indicating areas of varying oil
saturation within the reservoir. The color-coded
representation helps in identifying regions with the
highest potential for hydrocarbon extraction.
RESERVOIR
CHARACTERIZATION

Historical Production Data:

3 Monitoring Trends: Continuous monitoring of average
reservoir pressure and fluid volumes is essential. The data
shows a significant decline in average reservoir pressure over
time, necessitating ongoing assessment to manage reservoir
performance effectively,
Decision-Making: Historical production data informs decisions
on well placement and management strategies, optimizing oil
recovery while controlling water production

Simulation Models:
4
Pressure and Fluid Flow Regulation: Advanced simulation
models are employed to regulate reservoir pressure and fluid
flow, ensuring that both horizontal and vertical wells work in
harmony. This approach helps maintain balanced reservoir
pressure and enhances fluid movement.
Virtual Environment for Decision Making: The use of
simulation tools allows for the creation of virtual
environments that mimic actual drilling and production
scenarios, aiding in strategic planning and well positioning
RESERVOIR DESCRIPTION

Initial Condition:
1
The reservoir is characterized by its initial state before any
production activities. This includes the natural distribution of
fluids (oil, water, and gas) and the geological features that define
the reservoir's structure. The initial condition serves as a baseline
for monitoring changes over time due to production and
management strategies.

Initial Pressure:
2

The initial reservoir pressure is recorded at 254 bars as of January

11, 2019. This pressure level is critical for understanding the
reservoir's capacity to produce hydrocarbons and for planning
interventions to maintain optimal pressure levels throughout the
production lifecycle 9.

Water Saturation:
3

The initial water saturation level is a key parameter that indicates

the proportion of water present in the reservoir compared to the
total pore volume. This value is essential for assessing the
reservoir's potential for oil recovery and understanding the
dynamics of fluid movement within the reservoir. The data
suggests that water saturation may increase over time as oil is
produced and water influx occurs
RESERVOIR DESCRIPTION

Permeability:
4
Permeability is a measure of the reservoir's ability to transmit
fluids through its porous media. It is a critical factor influencing
fluid flow and recovery efficiency. The average permeability of
the reservoir is determined through core analysis and well
testing, providing insights into how easily oil and water can move
through the rock formations.

Porosity:
5

Porosity represents the volume of void spaces within the

reservoir rock that can hold fluids. It is expressed as a
percentage of the total rock volume. High porosity indicates a
greater capacity for fluid storage, which is essential for
maximizing hydrocarbon recovery. The initial porosity of the
reservoir is assessed through geological studies and well log
data.

Permeability along Y
6

The permeability along the Y direction is measured to

understand how fluids move laterally within the reservoir. This
directional permeability is crucial for planning horizontal well
trajectories and optimizing fluid extraction from the reservoir.
RESERVOIR DESCRIPTION

Permeability along Z:
7
The permeability along the Z direction indicates the vertical flow
capacity of the reservoir. This measurement is important for
assessing the potential for vertical fluid movement, which can
impact the effectiveness of water injection strategies and overall
reservoir management.
01

WHAT DID YOU LEARN FROM THE

ACTIVITY?

We learned several key aspects of well production design and reservoir

management from the activity. We observed a significant decline in average
reservoir pressure over time, highlighting the necessity of continuous
monitoring to manage reservoir performance effectively. Analyzing fluid
volumes allowed us to understand the dynamics between oil and water in the
reservoir, revealing the typical gradual decrease in oil volume due to depletion,
while water volumes increased as a result of influx or management strategies.
We also recognized the importance of historical production data in guiding our
decisions on well placement to optimize oil recovery and control water
production. The use of 2D and 3D models provided us with a comprehensive
view of the reservoir's geometry and fluid distribution, enhancing our ability to
visualize and strategize well trajectories.

This activity provided very significant insight into the close relationship
between well production design and reservoir management. Average reservoir
pressure was observed to be continuously falling substantially over time,
pointing to the need to continuously monitor and optimize performance in
reservoirs. Analysis of fluid volumes helped us understand much better the
dynamic interplay of oil and water in the reservoir. As expected, the oil volumes
did change with the development while water volumes increased exponentially
mainly due to influx or intervention in strategic management.

Historical production data are utilized to make decisions on well placements,

forming a necessary backbone to make necessary decisions based upon them.
This in itself turned out to be quite an essential guide to optimize oil recovery
and minimize water production. The 2D and 3D models of the reservoirs gave
the entire geometrical configuration and fluid distribution a whole
visualization. This facilitated the effective planning of correct trajectories so
that maximum recovery of oil and minimum potential risks can be achieved.
This exercise proved the significance of data analysis, monitoring, and
modeling in optimizing the efficiency of production and decision-making in the
lifetime cycle of the reservoir.
02
EVALUATE YOUR DECISION MAKING
PROCESS IN CHOOSING THE LOCATION
AND SETTINGS OF YOUR WELLS.
In reservoir drilling and well management, the decision making process is
based on the accuracy in place and systematic approach for a greater harvest
of the available resources. TNavigator enables the analysis of features through
the broad range and depth of layers and the fluid behavior that helps in
decision-making. Another benefit is that it can be used to build a virtual
environment that simulates actual well drilling and oil production scenarios.
This is useful for well positioning and strategy.

In actual drilling, well location heavily relies on geological geology, viscosity

properties of the fluids, and real-time operations at the drilling site. However, it
is helpful to simulate similar scenarios using the software beforehand so that
issues may be readily recognized and judgments can be made. It serves the
same function as the simulation in that it uses flow simulation to estimate fluid
transport and displays reservoir characteristics like "Oil in Place." The best
thing about this is that well designs can be changed, scenarios can be refined,
and techniques for how well drilling will be done even in advance may be
enhanced. By doing this, money will be saved from unnecessary losses brought
on by undesirable well placement or drilling errors.

In assessing how to select well locations and settings, the main objective is to
maximize production while reducing risks. The software shows a grid with
different colors denoting different concentrations of "Mobile Oil in Place,"
illustrating the distribution of oil. The process involves identifying the parts of
the reservoir with the highest oil saturation, shown as red zones on the grid.
These areas are chosen because they offer the greatest production potential.
Finding the optimal drilling locations is aided by the oil distribution
visualization. To guarantee that they reach the reservoir's most oil-rich areas, a
number of wells are pointed in the direction of the red zones. Every well's
trajectory is carefully designed to not only access these high-oil regions but
also to maximize the oil flow toward the well in the long run.

To avoid production issues, additional factors like fluid dynamics and pressure
distribution are also taken into account. Based on data, the decision-making
process simulates the oil flow from the red zones. This strategy minimizes
excessive drilling or placing wells too close to low-saturation zones,
guaranteeing efficient use of resources. Real-time adjustments are possible
due to the simulation, which makes it possible to optimize well parameters like
depth, angle, and completion strategy in accordance with anticipated fluid
movement towards the well.
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

Pressure
(2019-2021)
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

Pressure
(2023-2024)
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

Fluid in Place
(2019-2021)
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

Fluid in Place
(2023-2024)
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

Rates
(2019-2021)
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

Rates
(2023-2024)
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

3D MODEL
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

3D MODEL
03

SHOW THE PROGRESS AND

DEVELOPMENT OF YOUR
WELL SYSTEM.

2D MODEL
04

WHAT WERE YOUR FINDINGS AND

CONCLUSION FROM YOUR WELL
PRODUCTION DESIGN?
For the first part which is the pressure, the graph indicates pressure (average
and loaded pressure) vs time, showing a decrease in average reservoir
pressure from 254 bars on January 11, 2019 to 192.344 bars on January 6, 2023.
The pressure begins to recover in mid-2024, reaching 207.648 bars by
December 1, 2024, indicating the possibility of intervention, such as water or
gas injection. The Network Node Pressure and Loaded Pressure remain zero.
This data shows pressure depletion due to production, and followed by
potential recovery due to external actions. This consistent tracking could help
the operators to manage the reservoir more effectively by maintaining
pressures within operational limits.

For the second part which is the fluid-in-place, the graphs show the fluid
volumes in a reservoir over time, with a focus on oil and water in place. The
important data component is "Current Oil in Place," displayed in thousands of
standard cubic meters (th. sm³), indicating the volume of oil in the reservoir at
specified time periods. Similarly, "Current Water in Place" represents the
volume of water present in the reservoir at the time. sm³. Furthermore,
"Original Oil in Place" remains constant throughout the timeline, representing
the initial amount of oil in the reservoir at the start of the simulation, whereas
"Original Water in Place" remains constant, reflecting the reservoir's initial
volume.

Based on our observations, the blue line on the graph shows oil volumes,
whereas the red line represents water volumes. The data show a gradual
decrease in oil volume over time, which is typical of reservoir depletion as oil
production continues. On the other side, there is a noticeable rise in water
volume during some periods, which is most likely due to water influx or
management measures such as water injection to improve oil recovery. The
combination of this data provides critical insights into reservoir dynamics,
allowing engineers to improve production techniques throughout the
reservoir's lifecycle.
04

WHAT WERE YOUR FINDINGS AND

CONCLUSION FROM YOUR WELL
PRODUCTION DESIGN?
For the third part which is the rates, the red line indicates the Oil Rate,
measured in cubic meters per day (sm³/day), reflecting the amount of oil
produced at various points between January 2019 and January 2024. The blue
line, measured in sm³/day, depicts water production throughout the same
time period. The x-axis of the graph depicts the time scale, vividly displaying
changes in production rates throughout the specified years. In addition, the
graph shows calculated limits for oil and water production, which are
depicted by dotted lines. The Oil Rate Limit (red dashed line) represents the
system's maximum oil production capacity, whereas the Water Rate Limit
(blue dashed line) shows water production limits.

On January 6, 2023, the reported oil rate was 905.793 sm³/day, which
decreased to 718.918 sm³/day by January 12, 2024. Other parameters in the
table include Oil Rate (H), which appears to represent the greatest historical
oil rate, showing the reservoir's capacity, as well as values for Oil Rate Input
and Oil Rate Calc Limit, which serve as simulation benchmarks.

Key findings from this data include stepwise improvements in oil production
rates, which highlight the prospect of drilling new wells or using increased
recovery techniques. The tendency of diminishing oil production rates after a
peak is common due to the steady depletion of reservoir pressure over time.
Although the water production rate (shown by the blue line) is substantially
lower than the oil rate, there is a discernible rising trend, which is typical since
water frequently breaks through during the final phases of reservoir
depletion.
04

WHAT WERE YOUR FINDINGS AND

CONCLUSION FROM YOUR WELL
PRODUCTION DESIGN?
Lastly, the fourth part is the 2D and 3D model.The two-dimensional graphic
shows a two-dimensional representation of the reservoir with a color-coded
grid representing the oil in place (OIP) values in cubic meters (sm³). The color
bar on the left shows that the OIP values range from roughly 86.76 sm³ (low) to
1081.64 sm³ (high). places with low OIP are represented by blue in the color
scheme, while places with high OIP are represented by red. The well
trajectories are shown as red and black lines overlaid on this map. The
interaction between the reservoir fluids and the well network is depicted by
these lines, which demonstrate the flow of gas and oil around and through the
wells. Along with the X and Y axes, the second image provides a 3D depiction
of the reservoir by displaying its depth (Z-axis). The OIP is depicted using a
color-coded scale that spans from 0.52 sm³ to 184.56 sm³, just like the 2D map.
The wells are identified by labels that read H1 through H7 for horizontal wells
and vertical wells. The produced wells are vertical (5), horizontal (5), and
injector (7). The well routes are shown in this 3D model by the red lines.

The distribution of oil in place (OIP) throughout the reservoir, as shown by the
color legends in the 2D and 3D models, is one of the key data that was
collected from these images. The 2D model image displays the flow paths
surrounding the wells, and the 3D image classifies and identifies the wells,
making the well trajectories readily evident. Furthermore, the geometry of the
reservoir is illustrated; the three-dimensional representation offers valuable
information about the reservoir's structural intricacy and resource allocation.