The potential for severe formation damage around horizontal wells exists due to the increased time of formation exposure to the drilling fluids as compared to the time that a vertical well is exposed to these fluids. This paper explains that the combined effect of the formation damage and the presence of impermeable barriers and low permeability regions in the vicinity of some sections of the horizontal wellbore will manifest itself as skin factor in well test analysis if the total drilled length of the horizontal section is used in the calculations. The purpose of this paper is to present practical new equations, based on a recently introduced concept in well performance analysis, for evaluating the actual length of the horizontal well contributing to production. It is determined that the performance of a horizontal well with mechanical skin and of length Xf1 can be substituted by the performance of a horizontal well of length Xf2 with no skin. Xf2 is smaller than Xf1 for a damaged well and is greater than for a stimulated well. By combining the concepts of equivalent horizontal well length and equivalent wellbore radius, one will be able to evaluate the performance of a horizontal well in comparison to its expected performance and to subsequently relate it to an equivalent stimulated vertical well. The new equations and guidelines can be used to determine the magnitude of formation damage around horizontal wells and to evaluate the success of a stimulation treatment.

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