Horizontal to Vertical Ratio Model (H2VR)
The Horizontal to Vertical Ratio Model (H2VR) is an innovation designed to generate an economic comparison between the installation of horizontal wells and an equivalent array of vertical wells. This is an economic comparison, but it is just one parameter, albeit the most important one, in a series of decision-making steps. Other variables outside the scope of the economics model are more qualitative matters such a) whether or not information as useful as examining the horizontal plane can be achieved and b) the standard issues revolving around access as in – can vertical wells even be installed.
Dr. Richard Laton, of our Scientific Advisory Board, has contributed greatly to this project as has Timothy Havranek of Optima Analytics, an independent consultant in Pittsburgh. In essence, the model delves into the specifics of making the economic comparison. The model is used by EN Rx staff to run specific cases for our clients as a service free of charge.
These are the steps the model follows guided by the two questionnaires provided in the links provided. Questionnaire 1 addresses vertical well design criteria and Questionnaire 2 addresses parameters of importance for a horizontal well design.
First it is important to define client preferences for the nature of the vertical well. Questionnaire 1 provides this in asking about parameters such as well width, presence of pumps, length of the screened interval, and so forth. Then a Zip Code based data base will make cost estimates and this will include cost of drilling as well as the physical well costs.
EN Rx will then apply an equivalent horizontal well design. This, of course, will involve inputs for that aspect of the analysis such as depth to groundwater, the treatment interval, transmissivity and so forth. Determining the ratio of horizontal to vertical coverage involves using a series of equations derived by others and published in the peer reviewed literature. The output then is a ratio such as “One 100 foot section of horizontal well will replace 7.3 vertical wells, a number that of course has to be rounded up or down.
The final step is the generation of a Monte Carlo cost distribution for horizontal installation versus the ratio to vertical wells as determined by the model. Examples of the Monte Carlo analysis can be found in several places.
Please contact Alyssa Wharton, our staff engineer who specializes in this analysis as follows:
Questionnaire for H2VR Model: Vertical Wells
Questionnaire for H2VR Model: Site Conditions
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