The lower rate of penetration (ROP) is one of the key technical difficulties during drilling of shale reservoirs. Percussive-rotary drilling (PRD) is crucial for increasing ROP. One of the core problems of ROP optimization for PRD are the dynamic damage characteristics of rock fragmentation. By considering the dynamic drilling parameters, a new model for estimating the PRD with a full-scale polycrystalline diamond compact (PDC) bit is established. The mechanical parameters of shale are measured by a wave velocity method. Rock damage characteristics are simulated by using the finite element method. The numerical simulation model is verified by the actual drilling case in LMX shale reservoir in Sichuan (China). The results indicate that rock element damage occurs along the direction of maximum principal stress. The order of decreasing rock damage rate is impact-static load, static load and impact load. When the impact load has the same peak value, and the rock elements in contact with the cutters obtain more energy with load frequency increasing. The rock fragmentation efficiency under a sine wave is higher than rectangular and pulse waves. The rock can obtain more energy to be broken with the increasing impact load duration and peak values. When the impact-static load goes over the rock damage threshold value, the higher the peak value of the impact load is, the more energy the rock will obtain. The higher the lateral vibration amplitude of the drill bit, the lower the efficiency of rock fragmentation. Repetitions of drill bit axial vibration at one indentation point will reduce the ROP, and the axial vibration energy of the drill bit is consumed. Therefore, a small lateral movement and reasonable axial vibration frequency increase the rock breaking efficiency. The ROP was increased through the suppression of drill string and the application of vibration. The study results can be used in the optimization designs of bit trajectory and ROP for PRD tools.Energies 2018, 11, 1326 2 of 23 percussive drilling, and PRD [4,5]. PRD is developed from rotary drilling and percussive drilling. Significant results in understanding the percussive fragmentation mechanism have also been achieved in the laboratory. The rock fragmentation efficiency is not a linear relationship with the drilling parameters, such as weight on bit (WOB), torque on bit (TOB), and rotations per minute (RPM). Experiments examining rock breakage under dynamic and static loads were carried out. PRD is one of the best ways to improve the drilling efficiency of hard formation. The fragmentation investigation of granite is studied by the use of the dynamic and static rock-breaking test device, reasonable load of single cutter cutting rock under the impact-static action was proposed [6][7][8].Energies 2018, 11, x FOR PEER REVIEW 2 of 23 mechanisms. One of the earliest reports of percussion drilling technique occurred in 1940s [3]. Since then different terms have been used, such as downhole hammer, percussion hammer, down-the-hole hammer, percussive drilling, an...