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Title: SOLVING THE SHUGART QUEEN SAND PENASCO UNIT DECLINING PRODUCTION PROBLEM

Technical Report ·
DOI:https://doi.org/10.2172/827722· OSTI ID:827722

The Penasco Shugart Queen Sand Unit located in sections 8, 9, 16 & 17, T18S, 31E Eddy County New Mexico is operated by MNA Enterprises Ltd. Co. Hobbs, NM. The first well in the Unit was drilled in 1939 and since that time the Unit produced 535,000 bbl of oil on primary recovery and 375,000 bbl of oil during secondary recovery operations that commenced in 1973. The Unit secondary to primary ratio is 0.7, but other Queen waterfloods in the area had considerably larger S/P ratios. On June 25 1999 MNA was awarded a grant under the Department of Energy's ''Technology Development with Independents'' program. The grant was used to fund a reservoir study to determine if additional waterflood reserves could be developed. A total of 14 well bores that penetrate the Queen at 3150 ft are within the Unit boundaries. Eleven of these wells produced oil during the past 60 years. Production records were pieced together from various sources including the very early state production records. One very early well had a resistivity log, but nine of the wells had no logs, and four wells had gamma ray-neutron count-rate perforating logs. Fortunately, recent offset deep drilling in the area provided a source of modern logs through the Queen. The logs from these wells were used to analyze the four old gamma ray-neutron logs within the Unit. Additionally the offset well log database was sufficient to construct maps through the unit based on geostatistical interpolation methods. The maps were used to define the input parameters required to simulate the primary and secondary producing history. The history-matched simulator was then used to evaluate four production scenarios. The best scenario produces 51,000 bbl of additional oil over a 10-year period. If the injection rate is held to 300 BWPD the oil rate declines to a constant 15 BOPD after the first year. The projections are reasonable when viewed in the context of the historical performance ({approx}30 BOPD with a {approx}600 BWPD injection rate during 1980-1990). If an additional source of water is developed, increasing the injection rate to 600 BWPD will double the oil-producing rate. During the log evaluation work the presence of a possibly productive Penrose reservoir about 200 ft below the Queen was investigated. The Penrose zone exists throughout the Unit, but appears to be less permeable than the Queen. The maps suggest that either well 16D or 16C are suitable candidates for testing the Penrose zone.

Research Organization:
MNA Enterprises LTD. Co. (US)
Sponsoring Organization:
(US)
DOE Contract Number:
FG26-99BC15245
OSTI ID:
827722
Resource Relation:
Other Information: PBD: 25 Aug 2000
Country of Publication:
United States
Language:
English

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