Multiple operators have been developing unconventional reservoirs on University Lands (UL) Acreage in Andrews and Martin Counties, Northern Midland Basin (NMB) since 2010. Different operators have employed different field development plans (FDPs), including well spacings, well placement locations, and completion designs. While some operators employ the cube/tank multi-reservoir co-development strategy, others develop reservoir-by-reservoir and/or with a stagnant development strategy. The resulting well performance and operators' economics differ.
In order to maximize asset value, we have been routinely and systematically evaluating the FDPs and outcomes to identify the optimal FDPs on the acreage. This paper is to summarize our FDP lookback review method, discuss our results, and recommend the optimal FDPs for the reservoirs in the area.
We first collected well data, including wellbore path, completion, and production. We then plugged the wellbores into a geological model to verify the wellbore locations in the reservoirs and evaluated the executed well completion data; methodically performed individual well production analysis, investigated possible correlations among reservoir properties, completion designs, and well performance, and built Type Curves for each reservoir/section in the leasing section; systematically forecast the reservoir-section production and performed economic analysis with the real cost and oil price. Finally, compared the resource recovery and economic outcomes of field development and recommended optimal FDPs for the leasing sections. A multidisciplinary approach has been applied in the entire process.
The detailed evaluation results will be presented and discussed on multiple FDPs in those 31 sections developed by 3 operators on University Lands Acreage in NMB, including Net Present Value (NPV), Investment Rate of Return (IRR), Estimated EUR, and well count per section. Furthermore, optimal FDPs will be suggested for the reservoirs in the area to maximize the asset values.
In addition to our systematical evaluation methodology, an operator may use our recommended FDPs to direct its future field development activities, including well placement, well spacing, and well completion designs.