Reducing Economic Risk in Areally Anisotropic Formations with Multiple-Lateral Horizontal Wells

Abstract

Abstract Well orientation is critical to horizontal well performance in areally anisotropic reservoirs. A horizontal well, drilled normal to the direction of maximum permeability, will have higher productivity than one drilled in any other arbitrary direction. Currently, horizontal permeability magnitudes and even indications of direction are rarely measured in the field. Based on well performance modeling and economic evaluation, this study attempts to determine the relative attractiveness of horizontal wells with multiple-laterals. The work exposes the economic risk in ignoring horizontal permeability magnitudes and directions and demonstrates the importance of adequate reservoir testing. A new rationalization for multiple-lateral horizontal wells is the reduction of the economic risk associated with poor reservoir characterization in areally anisotropic formations while increasing the incremental net present value (NPV) over single-horizontal wells.