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This report summarizes the work carried out during the period of September 29, 2000 to September 28, 2001 under DOE Research Contract No. DE-FC26-00BC15308. Our goal is to establish an integrated methodology of fractured reservoir characterization and show how that can be incorporated into fluid flow simulation. We have made progress in the characterization of mineral infilling of natural fractures. The main advancement in this regard was to recognize the strong interplay between diagenetic and mechanical processes. We accomplished several firsts in documenting and quantifying these processes, including documenting the range of emergent threshold in several formations and quantifying the internal structures of crack-seal bridges in fractures. These results will be the basis for an appreciation of fracture opening and filling rates that go well beyond our original goals. Looking at geochemical modeling of fracture infilling, our theoretical analysis addressed the problem of calcite precipitation in a fracture. We have built a model for the deposition of calcite within a fracture. The diagenetic processes of dissolution and partial cementation are key controls on the creation and distribution of natural fractures within hydrocarbon reservoirs. Even with extensive data collection, fracture permeability still creates uncertainty in reservoir description and the prediction of well performance. Data on the timing and stages of diagenetic events can provide explanation as to why, when and where natural fractures will be open and permeable. We have been pursuing the fracture mechanics testing of a wide range of rocks, particularly sandstone using a key rock property test that has hitherto not been widely applied to sedimentary rocks. A major accomplishment in this first year has been to identify sample suites available in the core repository at the University of Texas that represent a wide range of diagenetic alteration and to begin to test these samples. The basis for the fluid flow simulations to be carried out in this part of the project is the adequate spatial characterization of fracture networks. Our initial focus has been on the tendency of fracture sets to cluster into highly fracture zones that are often widely separated. Our preliminary modeling work shows the extent of this clustering to be controlled by the subcritical fracture index of the material. With continued progress, we move toward an integrated fracture characterization methodology that will ultimately be applied through detailed reservoir simulation

ADVANCED TECHNOLOGY FOR PREDICTING THE FLUID FLOW ATTRIBUTES OF NATURALLY FRACTURED RESERVOIRS FROM QUANTITATIVE GEOLOGIC DATA AND MODELING