Model for economic evaluation of high energy gas fracturing

Technical Report · Tue May 01 00:00:00 EDT 1984

OSTI ID:6994100

Engi, D

The HEGF/NPV model has been developed and adapted for interactive microcomputer calculations of the economic consequences of reservoir stimulation by high energy gas fracturing (HEGF) in naturally fractured formations. This model makes use of three individual models: a model of the stimulated reservoir, a model of the gas flow in this reservoir, and a model of the discounted expected net cash flow (net present value, or NPV) associated with the enhanced gas production. Nominal values of the input parameters, based on observed data and reasonable estimates, are used to calculate the initial expected increase in the average daily rate of production resulting from the Meigs County HEGF stimulation experiment. Agreement with the observed initial increase in rate is good. On the basis of this calculation, production from the Meigs County Well is not expected to be profitable, but the HEGF/NPV model probably provides conservative results. Furthermore, analyses of the sensitivity of the expected NPV to variations in the values of certain reservoir parameters suggest that the use of HEGF stimulation in somewhat more favorable formations is potentially profitable. 6 references, 4 figures, 3 tables.

• Research Organization: Sandia National Labs., Albuquerque, NM (USA)
• DOE Contract Number: AC04-76DP00789
• OSTI ID: 6994100
• Report Number(s): SAND-84-0908; ON: DE84012826
• Resource Relation: Other Information: Portions are illegible in microfiche products. Original copy available until stock is exhausted
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
EXPLOSIVE FRACTURING
COMPUTERIZED SIMULATION
COST BENEFIT ANALYSIS
FRACTURED RESERVOIRS
NATURAL GAS DEPOSITS
ECONOMICS
GAS FLOW
OHIO
PROPELLANTS
COMMINUTION
FEDERAL REGION V
FLUID FLOW
FRACTURING
GEOLOGIC DEPOSITS
MINERAL RESOURCES
NORTH AMERICA
RESOURCES
SIMULATION
USA
030900* - Natural Gas- Artificial Stimulation
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