Preliminary Evaluation

Target Selection
The primary objectives of this phase are to estimate hydrocarbon volume, assess recoverable reserves, and prioritize development based upon the value of the various resource classes in the asset. First steps may be to delineate the extent of the reservoir, to estimate hydrocarbon volume considering the depth of the resource (or depths if there are multiple horizons), and to provide a preliminary analysis on the fluid characteristics. Identifying both the viscosity (cP/Pa.s) and gravity (API) provides important input for selection of production methodologies as well as hydrocarbon value.

Reservoir evaluation
Following the basic target selection processes, a more thorough reservoir evaluation is undertaken. The aim is to determine the potential recovery rate of a target reservoir. This involves a first, significant data acquisition to provide a preliminary economic valuation. The inputs would include more detailed rock and fluid property analysis and a geologic model. These can be integrated to provide a full reservoir model, from which possible recovery mechanisms are identified and predicted recovery rates determined.

Market Evaluation
To determine the value of the crude in the marketplace, downstream specialists are brought into the process. They use a full crude assay to better understand the processing needs, and they decide the options that would deliver the highest value per barrel. These would include selling the “raw” crude or upgraded crude, and the costs versus value associated with processing and transportation. Various economic and production variables and risks also need to be factored into the analysis.

Project Evaluation
At this point, a pilot is designed and executed to thoroughly test the selected production methodology from the sandface to the point of sale. This would include various components of the design, such as engineering, both well and facilities construction—according to the recovery method/s selected and the transportation requirements and limitations—as well as completions and artificial lift. There would also be some element included for production monitoring. This phase is lengthy, as concepts are being tested and proven or adjusted. The pilot well construction, operation, and evaluation phase can take up to 10 years in some cases, depending on the necessary infrastructure required, and it may continue to run concurrently with full-scale commercial operations.