The early stages of a coalbed methane (CBM) project development often require more extensive use of currently available technologies than can be economically justified when approached from a conventional oil and gas drilling focus. As a result, key evaluation tools and technologies are either omitted or not considered before significant decisions are made regarding viability of a CBM play. Understanding that the various lifecycle phases will each affect different objectives and decision points is important. Following site acquisition and estimating basic drilling costs, at least five lifecycle phases can be identified: (1) Regional Resource Reconnaissance, (2) Local Asset Evaluation, (3) Early Development, (4) Mature Development; and (5) Declining Production.

A systematic review of current and recently developed enabling technologies is presented in the context of their potential use and applicability. Environmental risk and other constraints that can impact development vary globally, as do economics and production forecasting. New and emerging chemical technologies, as well as hydraulic fracturing refinements, play key roles in various lifecycle phases and decision making to identify successful CBM development projects as early as possible. The paper presents strategies that can reduce development phase failure risk and help predict or rank production potential. Economic constraints usually become more restrictive as the lifecycle moves to Phase 4 and beyond, but key information needed to enter Phase 4 is often overlooked. Examples of this scenario are presented from a global perspective.

Globally, new and existing technologies combined with dynamic gas and electricity markets are changing the nature of CBM development opportunities. More accurate and timely go/no-go information needs to be used in the decision making process. Converting development opportunities to develop-ment successes involves integrating planning and evaluation methods, using targeted development technologies in the proper phase, and managing risk.

Keywords:
drillstem testing, permeability, completion effectiveness, upstream oil & gas, coal seam gas, hydraulic fracturing, complex reservoir, lifecycle phase, technical solution, mullen
Subjects:
Drilling Operations, Hydraulic Fracturing, Well & Reservoir Surveillance and Monitoring, Reservoir Characterization, Reservoir Fluid Dynamics, Reservoir Simulation, Formation Evaluation & Management, Reserves Evaluation, Unconventional and Complex Reservoirs, Environment
Copyright 2002, Society of Petroleum Engineers
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