Reserves Determination Using Type Curve Matching and Extended Material Balance Methods in the Medicine Hat Shallow Gas Field

Tight shallow gas reservoirs in the Western Canada Basin present a number of unique challenges in accurately determining reserves. Traditional methods such as decline analysis and material balance are inaccurate due to the formations' low permeabilities and poor pressure data. The low permeabilities cause long transient periods not easily separable from production decline using conventional decline analysis. The result is lower confidence in selecting the appropriate decline characteristics (exponential or harmonic) which significantly impacts recovery factors and remaining reserves. Limited, poor quality pressure data and commingled production from the three producing zones results in non representative pressure data and hence inaccurate material balance analysis. This paper presents the merit of two new methods of reserve evaluation which address the problems described above for tight shallow gas in the Medicine Hat field. The first method applies type curve matching which combines the analytical pressure solutions of the diffusivity equation (transient) with the empirical decline equation. The second method is an extended material balance which incorporates the gas deliverability theory to allow the selection of appropriate p/z derivatives without relying on pressure data. Excellent results were obtained by applying these two methodologies to ten properties which gather gas from 2300 wells. The two independent techniques resulted in similar production forecasts and reserves, confirming their validity. They proved to be valuable, practical tools in overcoming the various challenges of tight shallow gas and in improving the accuracy in gas reserves determination in the Medicine Hat field.