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TECHNICAL PAPERS

The Role of Well Testing in Recognizing Deferred Production Revenue

[+] Author and Article Information
P. Mehdizadeh

Production Technology Inc.

D. T. Perry

Mustang Engineering, Inc.

J. Energy Resour. Technol 126(3), 177-183 (Oct 19, 2004) (7 pages) doi:10.1115/1.1789521 History: Received February 20, 2002; Revised January 06, 2004; Online October 19, 2004
Copyright © 2004 by ASME
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References

Neely, A. B., Bridges, G. L., and Ganus, P. G., 1980, “Improved Well Testing in Denver Unit,” Society of Petroleum Engineers, paper 9365.
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Christianson, B. A., and Burger, E. L., 1991, “San Ardor Field Production Testing System Upgrade,” Society of Petroleum Engineers, paper 21533.
Womack, J. T., 1973, “Uses of Short-Term Tests in Computer-Controlled Well Testing System,” Society of Petroleum Engineers, paper 4402.
Means,  S. R., and Mehdizadeh,  P., 2000, “New Technology Improves Well Testing Units,” Oil & Gas Journal, Oct. 30, pp. 36–38.
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Figures

Grahic Jump Location
General production profile used in the model. The relationship between “lost-production,” the time it takes to detect the problem, and the consequences of the remedial work to correct the problem.
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The confidence level for well test data from four wells in Gulf of Mexico used to calculate the optimum test intervals
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The confidence level for well test data from three wells in Permian Basin used to calculate the optimum test intervals
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Relationship between well test cost and the value of the deferred production for data shown in Table 2. The total cost (sum) can be reduced by testing the well at the optimum test interval.
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Effect of well testing system uncertainty (accuracy) and optimum test interval on reducing the cost of operation. The data from four wells in GOM is used in this graph. All wells are assumed to be testing at the optimum interval calculated from the model. The graphs are based on the average values of parameters for the 4 GOM wells shown in Table 2. A cost saving of $28,000/well is realized if these wells are tested every 6 days and the average accuracy of the testing system is increased to 40%.

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