Directive 065: Resources Applications for Oil and Gas Reservoirs ...
Directive 065: Resources Applications for Oil and Gas Reservoirs ...
Directive 065: Resources Applications for Oil and Gas Reservoirs ...
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2.5 Application <strong>for</strong> Pool Delineation <strong>and</strong> Ultimate Reserves<br />
2.5.1 Background<br />
The ERCB establishes pool boundaries (vertically <strong>and</strong> horizontally) <strong>and</strong> assigns reserves to<br />
all oil <strong>and</strong> gas pools in Alberta. These are shown in Pool Orders (G Orders), annual reserve<br />
publications, <strong>and</strong> individual well <strong>and</strong> pool files. Well licensees of new oil wells outside of<br />
established G Orders must submit a completed application <strong>for</strong> a New Well Base Allowable or<br />
Base MRL (O-38 <strong>for</strong>m).<br />
The initial oil volume or gas volume in place <strong>for</strong> new pools is often based on simple buildingblock<br />
assignment areas <strong>and</strong> wellbore parameters. Initially, recovery factors <strong>for</strong> new pools<br />
may be based on analog pools in the area. Initial delineation reflects early geological <strong>and</strong><br />
pressure in<strong>for</strong>mation. As the pools are developed <strong>and</strong> further well data <strong>and</strong> per<strong>for</strong>mance data<br />
are available, delineation <strong>and</strong> reserves may be adjusted to reflect this new in<strong>for</strong>mation. Net<br />
pay isopach maps, material balance analyses, decline analyses, <strong>and</strong> analytical <strong>and</strong> numerical<br />
models may take the place of the simple building-block approach. Different pressure trends<br />
or new gas/oil or oil/water interface in<strong>for</strong>mation may alter pool boundaries.<br />
The interpretation of pool reserves <strong>and</strong> delineation can affect regulatory requirements related<br />
to the operation <strong>and</strong> development of oil <strong>and</strong> gas pools in Alberta, as well as equity-related<br />
issues between operators.<br />
2.5.2 When to Make This Application<br />
Following the initial well assignment <strong>and</strong> if additional in<strong>for</strong>mation becomes available that<br />
substantially changes current decisions, a well licensee may choose to, <strong>and</strong> in fact is<br />
encouraged to, make an application to change assigned reserves or vary pool delineation <strong>for</strong><br />
several reasons, including<br />
• conservation (For example, new evidence may permit a restricted gas well to produce if<br />
it is no longer within a gas cap or the second well in a DSU.)<br />
• equity (For example, new evidence supports delineation <strong>for</strong> a well to a pool with a higher<br />
MRL or GPP.)<br />
• future applications (For example, while reserves evaluations are required in many other<br />
applications in this directive, an applicant may choose to file a st<strong>and</strong>alone reserve<br />
application. Maintaining a common reservoir in<strong>for</strong>mation base or underst<strong>and</strong>ing<br />
differences may assist or accelerate processing future applications <strong>for</strong> matters addressed<br />
in this directive.)<br />
• provincial records (For example, pool boundaries <strong>and</strong> reserves are the foundation <strong>for</strong><br />
conservation <strong>and</strong> equity protection.)<br />
The ERCB monitors pool per<strong>for</strong>mance <strong>and</strong> interprets new well in<strong>for</strong>mation. As a result, the<br />
ERCB may also request well licensees to file reserve submissions to update reserves <strong>for</strong> pools<br />
of provincial significance.<br />
ERCB <strong>Directive</strong> <strong>065</strong>: <strong>Resources</strong> <strong>Applications</strong> / Pool Delineation <strong>and</strong> Ultimate Reserves (October 2011) • 2-27