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The supply and demand situation is crucial for the oil and gas industry during the first half of the 21st century. For the future, we will see two trends going in opposite directions: a decline in discoveries of conventional oil and gas reservoirs and an increase in world energy demand. Therefore, the need to develop and produce unconventional oil and gas resources, which encompass coal-bed methane, gas-shale, tight sands and heavy oil, will be of utmost importance in the coming decades. In the past, large-scale production from tight gas reservoirs occurred only in the U.S. and was boosted by both price incentives and well stimulation technology. A conservative study from Rogner (1997) has shown that tight gas sandstone reservoirs would represent at least over 7,000 trillion cubic feet (Tcf) of natural gas in place worldwide. However, most of the studies such as the ones by the U.S. Geological Survey (U.S.G.S.) and Kuuskraa have focused on assessing the technically recoverable gas resources in the U.S. with numbers ranging between 177 Tcf and 379 Tcf. During the past few decades, gas production from tight sands field developments have taken place all around the world from South America (Argentina), Australia, Asia (China, Indonesia), the Russian Federation, Northern Europe (Germany, Norway) and the Middle East (Oman). However, the U.S. remains the region where the most extensive exploration and production for unconventional gas resources occur. In fact, unconventional gas formations accounted for 43% of natural gas production and tight gas sandstones represented 66% of the total of unconventional resources produced in the U.S. in 2006. As compared to a conventional gas well, a tight gas well will have a very low productivity index and a small drainage area. Therefore, to extract the same amount of natural gas out of the reservoir, many more wells will have to be drilled and stimulated to efficiently develop and produce these reservoirs. Thus, the risk involved is much higher than the development of conventional gas resources and the economics of developing most tight gas reservoirs borders on the margin of profitability. To develop tight gas reservoirs, engineers face complex problems because there is no typical tight gas field. In reality, a wide range of geological and reservoir differences exist for these formations. For instance, a tight gas sandstone reservoir can be shallow or deep, low or high pressure, low or high temperature, bearing continuous (blanket) or lenticular shaped bodies, being naturally fractured, single or multi-layered, and holding contaminants such as CO2 and H2S which all combined increase considerably the complexity of how to drill a well. Since the first tight gas wells were drilled in the 1940's in the U.S., a considerable amount of information has been collected and documented within the industry literature. The main objective of this research project is to develop a computer program dedicated to applying the drilling technologies and methods selection for drilling tight gas sandstone formations that have been documented as best practices in the petroleum literature.

Various models featuring horizontal wells with multiple induced fractures have been proposed to characterize flow behavior over time in tight gas and shale gas systems. Currently, there is little consensus regarding the effects of non-ideal fracture geometries and coupled primary-secondary fracture interactions on reservoir performance in these unconventional gas reservoirs. This thesis provides a grid construction tool to generate high-resolution unstructured meshes using Voronoi grids, which provides the flexibility required to accurately represent complex geologic domains and fractures in three dimensions. Using these Voronoi grids, the interaction between propped hydraulic fractures and secondary "stress-release" fractures were evaluated. Additionally, various primary fracture configurations were examined, where the fractures may be non-planar or non-orthogonal. For this study, a numerical model was developed to assess the potential performance of tight gas and shale gas reservoirs. These simulations utilized up to a half-million grid-blocks and consider a period of up to 3,000 years in some cases. The aim is to provide very high-definition reference numerical solutions that will exhibit virtually all flow regimes we can expect in these unconventional gas reservoirs. The simulation results are analyzed to identify production signatures and flow regimes using diagnostic plots, and these interpretations are confirmed using pressure maps where useful. The coupled primary-secondary fracture systems with the largest fracture surface areas are shown to give the highest production in the traditional "linear flow" regime (which occurs for very high conductivity vertical fracture cases). The non-ideal hydraulic fracture geometries are shown to yield progressively lower production as the angularity of these fractures increases. Hence, to design optimum fracture completions, we should endeavor to keep the fractures as orthogonal to the horizontal well as possible. This work expands the current understanding of flow behavior in fractured tight-gas and shale-gas systems and may be used to optimize fracture and completion design, to validate analytical models and to facilitate more accurate reserves estimation.

The Karoo Basin of South Africa holds an estimated 906 billion to 11 trillion cubic meters of unconventional shale gas within the shales of the Whitehill and Collingham formations of the Ecca Group. Evaluation of this potential resource has been limited due to the lack of exploration and a scarcity of existing drill core data. In order to circumnavigate this problem this study was undertaken to evaluate the potential target horizons exposed in outcrops along the southern portion of the Karoo Basin, north of Grahamstown in the Eastern Cape Province. Detailed field logging was done on the exposed Whitehill and Collingham formations as well as a possible conventional sandstone (turbidite) reservoir, the Ripon Formation, along road cuttings of the Ecca Pass. Palaeocurrent data, jointing directions and fossil material were also documented. Samples were analysed for mineralogy, porosity, permeability, and total organic carbon content (TOC). The extensively weathered black shales of the Whitehill Formation contain a maximum TOC value of 0.9% and the Collingham Formation shales contain a maximum TOC value of 0.6%. The organic lithic arkose sandstones of the Ripon Formation are classified as ‘tight rock’ with an average porosity of 1% and an average permeability of 0.05 mD. The Whitehill Formation in the southern portion of the Karoo Basin has experienced organic matter loss due to low grade metamorphism as well as burial to extreme depths, thus reducing shale gas potential. The Ripon Formation is an unsuitable conventional reservoir along the southern basin boundary due to extensive cementation and filling of pore spaces.