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Well Spacing
A Theory of Well Spacing*
By W. P.
HASEMAN,
* For discussion by the author of his equation and its application, see his articles
including charts and tables, in Natl. Petro News (1929) 21, No. 19, 59, and No. 23,63.
t Consulting Engineer.
146
w.
P. HASEMAN
147
the net profit to be yielded from this 160-acre tract will increase to a
maximum at some critical number of wells. l
A spacing of wells on a given tract which efficiently utilizes the natural
potential energy in the fluids in the yield of oil is generally too wide
for the efficient utilization of the artificial energy of repressuring. Added
wells are essential, therefore, in most repressuring operations. These
added wells, however, should be drilled in the early development of the
tract and operated so as to secure added efficiency in the utilization of the
natural potential energy in the fluids. The early addition of these wells
up to a certain limit is more effective in securing an increased economical
yield of oil than is the repressuring operation.
The spacing of wells is truly a scientific problem. It has been formulated and a solution has been reported in a recent paper. 2 The principles which control well spacing and which are essential to a formulation
of the problem will be outlined and briefly discussed.
The yield of oil from a well is known to be affected by many and varied
factors. 3 This fact precludes the development of a practical well-spacing
formula which includes as many constants as there are factors. It is
possible and of interest to classify and list these factors in groups and to
analyze and formulate the well-spacing problem in terms of group factors.
As a basis for this discussion the factors will be listed in two groups:
Group i.-Fixed factors.
Group 2.-Variable factors.
Most of the fixed group factors define the conditions or characteristics
of the reservoir stratum and the confined fluids which affect the yield
of oil. The fixed group factors affect the potential oil of a pool that can
be yielded by wells and determine whether or not an oil pool will be
commercially profitable for any spacing of wells whatsoever. Among
thesEl factors are porosity, sand texture, cementation, specific gravity
of oil, viscosity of oil, natural gas-oil ratio, thickness of pay stratum,
saturation of pay stratum, etc. They affect the yield of the oil from a
well in a more or less uniform manner for the various spacings of wells.
The magnitudes and trends, if any, of their influences on the yield
of oil are considered to be fixed and not materially altered, at least, by
any spacing of wells such as would be used in the commercial operation
of a given tract in an oil pool. The variable group factors are largely
controllable factors and can be fixed at will. Among these factors are the
spacing of wells, the timing of completion of offset wells, the depth of
1 W. P. Haseman: Profits and Proper Spacing of Wells.
Oil & Gas Jnl. (Oct. 18,
1928) 27, No. 22, 53.
2 W. P. Haseman: A Formula Method for Well Spacing and Rate of Production.
Natl. Petro News (1929) 21, No. 19, 59.
3 Idem.
148
dn
= X(P o - P"
DISCUSSION
149
DISCUSSION
S. C. HEROLD, * Los Angeles, Calif. (written discussion).-If each of us was asked
to develop a formula pertaining to the spacing of wells in accordance with known and
most probable factors affecting production in any given field it is likely that no two
such formulas would be identical. Probably most, if not all, of them would be
adequate, but certainly some would be simpler than others, and therefore more convenient. Dr. lIaseman gives one which I am inclined to accept as adequate and
convenient because of its exponential form. If any difficulty is to be encountered
in the use of his formula it will be on account of uncertainties respecting the values of
quantities to be substituted.
I do not go as far as Dr. Haseman in supposing his equation to have a fundamental
scientific basis in well or reservoir performance. It is rather, I believe, merely an
approximation formula, an empirical formula, or a rule of thumb formula, the value
of which depends solely upon its efficacy in giving a solution reasonably accurate as
shown by later history in producing "from the field. A formula of exponential form
can be entirely adequate from a practical point of view while it is at the same time an
absurdity purely from the theoretical point of view. In order that we may obtain an
idea of the practical utility of his equation, Dr. Haseman has given us his Table 2.5
No better agreement between actual and computed values should be desired.
The spacing constant, designated by the Greek letter lambda, so necessary in the
use of this formula, is not fully explained. Seemingly it is the quantity wherein
factors of Groups 1 and 2 enter. After reading Dr. Haseman's present paper, and its
equivalent in the National Petroleum News of May 8, 1929, I feel that before pressing
too strongly for information concerning it, one should carefully ascertaiD from Dr.
Haseman an answer to the question, "Is the evaluation of lambda performed by a
process or by a formula retained in secrecy?"
We are told that when operating conditions deviate from assumed conditions, it
is necessary to evaluate the disturbing conditions, but if this is to be done by means of
special knowledge, I am naturally curious about that special knowledge. Perhaps
Dr. Haseman will favor us with a statement concerning its nature.
* Petroleum Geologist.
s Idem., 63.
150
MEMBER.-If you had three months production history on a well in that pool could
you get the formula by production and not by curves?
W. P. HAsEMAN.-I infer that you desire to know what spacing of the wells would
be best in the pool. The formula is applicable to commercial pools only. In case
the pool of which you speak is to be a commercial pool one can compute with considerable security the increased profits of one spacing over that of another spacing.
DISCUSSION
151
The computation can in general be made on the first three months production of the
discovery well.
MEMBER.-How much could you improve on that if you had production data?
W. P. HAsEMAN.-Additional production data, particularly production data of
individual wells, are most valuable in more definitely defining the maximum net
profit on the curve. Since in many commercial pools with a spacing of one well to
each 10 acres the wells yield around 60 per cent. of their ultimate production within
the first four months the flush' production data are important.
MEMBER.-You say that where operating conditions deviate from assumed conditions it is necessary to evaluate the disturbing conditions by means of special knowledge. Could you tell us about that special knowledge?
W. P. HAsEMAN.-In the practical application of the formula such disturbing
conditions as delayed completion of offset wells must be evaluated. This necessarily
rests upon knowledge secured by some theory of decline of well production. The
evaluation of such disturbing conditions can be made within economic security from
present known data. Added data are much needed to more definitely define the
limits of the constants in the formula. The details of this determination are too
lengthy to be given here.
MEMBER.-Dr. Herold's third question is: "Dr. Haseman's formula is, we learn,
equally applicable to proved but undeveloped properties. In this case how may one
evaluate the quantity Po, representing the quantity of active oil under a given tract?
W. P. HAsEMAN.-The quantity Po cannot be evaluated with numerical precision.
In the practical application of the formula, since the expense of drilling one well is
large, a considerable variation in the observed data may exist without seriously affecting the economics of the formula. The method of evaluating Po rests upon a theory
of decline of well production.
In applying the formula to a practical case the acre and not the well is the basis
upon which net profit is to be computed.
J. B. UMPLEBY, * Oklahoma City, Okla.-If you had the cost, and development
cost is a big item, what effect would the yield of the wells have on the lifting cost?
A 25 per cent. difference will make a big difference in the net profit. Are you figuring on the net profit?
W. P. HAsEMAN.-I am figuring on the net profit per acre. The lifting cost has
been considered in the net price per barrel of oil. The effect of this on the net profit
per acre can be seen in the case of the curves of chart 3. The maximum net profit per
acre shifts toward a wider spacing of wells with increased lifting costs, other factors
remaining c6nstant.
MEMBER.-You should consider the percentage per barrel of net production if
you are to have less cost per acre.
W. P. HAsEMAN.-The net profit is figured on the basis of the acre and not on the
well. The well cost is considered as an added investment in equipping the acre to
yield oil. The oil is contained beneath the acre and not in the well. Whenever a
given tract is proved with reasonable security to be commercially productive of oil
there exists a considerable investment per acre in the tract and the maximum profit per
acre of the tract can be secured by the added investment in the wells properly spaced.
* Geologist
152
* Director and Executive, Production Department, Humble Oil and Refining Co.
t President, ~nzac Oil Corpn.
153
DISCUSSION
I
I
I
lems of the Los Angeles Basin. This is
I
not due to the fact that we do not
i
understand the fundamentals of economic spacing, but because all of the
recent fields have had their "town-lot
areas" or portions which have been
FIG. 1.
previously subdivided for residential
purposes. This permits the entree of many unscrupulous operators. One or more
wells are drilled on lots of 50 by 150 ft. Naturally a large portion of the wells spaced
so closely cannot hope to payout, as the cost of drilling varies from about $60,000, in
Torrance, to $175,000 in Santa Fe Springs. Under such conditions there is no incentive for operators to give adequate protection to sands other than those they expect
to produce. Their only object is to reach the pay first and get the oil before their
neighbors do.
There are many examples of the evils of town-lot drilling. Anyone interested
need only investigate the Lomita Area in the Torrance field, the town-lot areas in
both the new and the old field at Huntington Beach, Alamitos Heights of the Seal
Beach field, Los Cerritos area of Long Beach, or Hell's Half Acre at Santa Fe Springs,
and compare these with the more orderly developed fields of Dominguez Hills, Inglewood or the easterly dome of Seal Beach field.
154
represent an 80-acre lease lying east and west. Due to a peculiar subdivision of
royalty interests it was necessary to drill six wells on what would be equivalent to the
west 40 acres, while the east 40 acres were drilled with the normal lO-acre spacing. I
want to draw a few comparisons between the recovery per acre of the six-well 40-acre
piece, the four-well 40-acre and also the offset 160-acre lease to the north.
The 160-acre lease was drilled with a normal lO-acre spacing except along the
south line, where the owners naturally offset with five wells. Thus the lease has
17 wells.
The recovery per acre as of Aug. 1, 1929 on the six-weIl40-acre was 57,500 bbl., on
the 17-well160-acre it was 45,750 bbl., while on the four-weIl40-acre it was 41,000 hbl.
even. The recovery per acre on the four-well 40 acres is very much in line with ot.her
offset leases drilled with 10-acre spacing. Probably a part of the higher per acre
yield on the 17-well160-acre piece is due to the additional well, although it may admit
of some argument.
For comparison, without using lambda or anything but ordinary eighth grade
arithmetic, I will attempt to prove that the 6%-aere spacing has been an advantage
by producing more oil. Let us assume that the six-well 40-acre had been drilled with
only four wells and that it was as productive as the 160 acres to the north, thus we
could expect to produce only 45,750 bbl. per acre. The difference between the actual
yield of 57,500 bbl. and the expected yield of 45,750 bbl. is 11,750 bbl. per acre.
Multiplying by 40, we have a total difference of 470,00 bbl. If this additional 470,000
bbl. of oil has been recovered by reason of the two extra wells, let us carry the demonstration a little further and see what the additional recovery has amounted to in dollars.
Deducting a one-eighth royalty of 58,750 bbl., we leave the producing company a net
production of 411,250 bbl. from the two extra wells. The cost of the two wells was
approximately $150,000. At $1 per harrel, net, for the oil, we have $411,250 minus
$150,000 or $261,250 additional net return from the two wells.
Now, the six-well 40 acres could be compared to the four-well 40 with a greater
difference in the figures. The west 27 acres of this 80-acre lease had four wells on it
and the recovery of this 27 acres has been practically 70,000 bbl. per acre, notwithstanding the fact that one of the wells was greatly delayed in drilling. A comparison
of these four wells with an average 40 acres of four wells having a recovery around
35,000 to 40,000 bbl. per acre is hardly justified, since it is too much like comparing
individual wells.
I have not been advocating wider spacing and would take exception to the statement that one well to 20 acres will make more profit. One well to every 8 acres would
have been an ideal spacing for the Seminole district. The best lease I know of in the
Seminole field has a recovery of approximately 50,000 bbl. per acre, which is slightly
higher than the per acres yield of this entire 80 acres we have been considering, but
since the two leases are widely separated I doubt if a comparison should be made.
W. P. HAsEMAN.-There is no doubt in my mind but that a closer spacing of wells
in most of the commercial oil pools in this country would have yielded a greater
profit per acre. There will be a quicker return of the well investment with closer
spacing. For example, in the instance of the yield of 342,000 bbl. per well from the
Bowlegs lease with the 10-acre spacing, there will be around 205,000 bbl. received
within the first 100 days. With a spacing of 2% acres per well there will be a yield
of 184,000 bbl. per well with around 110,000 bbl. received within 110 days.
M. G. CHENEY.-There must be other . factors than well spacing involved
to explain difference in yields. There is an extra 4500 bbl. per acre or a total
of 720,000 bbl. on the 160-acre tract compared to the 40 acres southeast of it. The
one extra well on the 160 acres can hardly account for the extra 720,000 bbl., hence
DISCUSSION
155
we must be dealing with some factors other than well spacing. As to extra yield due
to six wells on the 40 acres, this case might be held to prove merely that if one operator
completes six outlets to a high-pressure oil reservoir while practically all his neighbors
complete only four, for his additional 50 per cent. drilling he will recover an additional
23 to 30 per cent. per acre. This seems to offer scant evidence that had this pool
been drilled up with six wells to each 40 acres average yields would have been appreciably greater than under the customary plan of four wells per 40 acres.
R. M. CARR.-I believe I said something about the 17 wells on the 160 acres,
leaving an opportunity for discussion. Even if it is not logical to attribute the additional production to the extra well, I would have chosen that 160-acre lease, because
it shows the highest yield per acre outside this exceptional 40 acres I was demonstrating. I could have taken some other lease with a lower yield per acre and shown a
greater proportionate net recovery from closer spacing.
M. G. CHENEY.-If all surrounding 40's had the wells drilled at the same time and
spacing, how much would have been gained per acre?
* Petroleum Engineer,