Exploration Opportunities in Ireland AAPG, Paris 11-14 September 2005 Exploration Opportunities in Ireland Noel Murphy, Peter Croker, Michael Hanrahan & Clare Morgan Petroleum Affairs Division, Department of Communications, Marine & Natural Resources, Dublin

TOPICS INTRODUCTION > OVERVIEW EXPLORATION & PRODUCTION STATUS > SEISMIC, WELLS & LICENCES > PRODUCTION & DEVELOPMENT 3. FACTORS EFFECTING E&P > ACCESS TO DATA & INFORMATION > DEMAND FOR OIL & GAS > INFRASTURCTURE > LICENSING TERMS > PROSPECTIVITY > ACCESS TO ACREAGE 4. INITIATIVES TO PROMOTE THE SECTOR 5. SUMMARY

DOOISH BENBECULA LAGGAN CORRIB 35/8-2 35/8-1 CONNEMARA ROSEBANK - LOCHNAGAR Kinsale Area Fields IRELAND

‘Discoveries’

50 100 Kilometers

Celtic Sea & Fastnet Basins Kish & CIS Basins 50 100 Kilometers Celtic Sea & Fastnet Basins Kish & CIS Basins

Donegal Basin Hatton Basin Erris Basin Rockall Basin Slyne Basin Porcupine Basin Goban Spur Basin Celtic Sea & Fastnet Basins Hatton Basin Kish & CIS Basins 50 100 Kilometers

2 1 3 4 26 Offshore Ireland 121 Exploration Wells (1971 – 2005) Rockall Basin Donegal Basin Erris Basin Slyne Basin Porcupine Basin Goban Spur Basin 1 3 4 26 2 Offshore Ireland 121 Exploration Wells (1971 – 2005) West of Ireland 37 Exploration (1977 - 2003)

FRONTIER ROUNDS Oil Price Rockall N. Porcupine Slyne/Erris/Rockall S. Porcupine Porcupine Oil Price

Exploration wells drilled West of Ireland (1977 – 2004) 1 : 9 1 : 4.5

Dooish Corrib Exploration Wells (1994 – 2005)

TOPICS INTRODUCTION > OVERVIEW EXPLORATION & PRODUCTION STATUS > SEISMIC, WELLS & LICENCES > PRODUCTION & DEVELOPMENT 3. FACTORS EFFECTING E&P > ACCESS TO DATA & INFORMATION > DEMAND FOR OIL & GAS > INFRASTURCTURE > LICENSING TERMS > PROSPECTIVITY > ACCESS TO ACREAGE 4. INITIATIVES TO PROMOTE THE SECTOR 5. SUMMARY

SEISMIC Seismic Acquired: 1965 - 2004

WELLS Wells Drilled: 1971 - 2005

Exploration Licences: 1970 – 2005 (end June – end December each year)

Production Forecast: P50 (Proven & Probable) Case GAS PRODUCTION RESERVES: 950 Bcf Approx. Production Forecast: P50 (Proven & Probable) Case

Concession Map with Gas Fields   Concession Map with Gas Fields Corrib Field Kinsale Area & Seven Heads Fields

TOPICS INTRODUCTION > OVERVIEW EXPLORATION & PRODUCTION STATUS > SEISMIC, WELLS & LICENCES > PRODUCTION & DEVELOPMENT 3. FACTORS EFFECTING E&P > ACCESS TO DATA & INFORMATION > DEMAND FOR OIL & GAS > INFRASTURCTURE > LICENSING TERMS > PROSPECTIVITY > ACCESS TO ACREAGE 4. INITIATIVES TO PROMOTE THE SECTOR 5. SUMMARY

Projected gas demand based on Gas 2025 Project, CW case. Gas Supply vs Demand Projected gas demand* Projected gas demand based on Gas 2025 Project, CW case.

Infrastructure - onshore

Infrastructure - offshore CORK Inch Terminal

Infrastructure - offshore CORK Inch Terminal Bellinaboy Terminal Corrib Gas Field

Ireland’s Licensing & Fiscal Terms no state participation or royalties 25 % corporation tax generous write-off provisions Frontier Exploration License Fiscal Terms Comparison, 2004; updated Sept 2005 Oil Fields Gas Fields

Prospect Inventory Status: June, 2005

2005 NE Rockall Basin Licensing Round Announced: 27 July 2004   Acreage on Offer: 65 full & 12 part-blocks Area: approx. 15, 800 sq km Licence Duration: 16 years Terms: 1992 Licensing Terms Closing Date: 31 May 2005 The hydrocarbon potential of this area has been illustrated by the Dooish discovery which encountered a significant column of hydrocarbons. 2005 NE Rockall Basin Licensing Round 2005 NE Rockall Round FEL 2/05: Shell (50%), Eni (40%) & OMV (10%) FEL 3/05: Island (100%) DOOISH 2/05 3/05

A. Walsh et al. Statoil (1999) NW SE Rockall Basin Erris Basin

2D seismic line from NE Rockall Basin Seismic courtesy of PGS SRT-03 Dip Line Tertiary Cretaceous Pre-Cretaceous NW SE

2006 Slyne / Erris / Donegal Licensing Round Announced: 25 January 2005   Acreage on Offer: Blocks to be announced Area: approx. 25,000 sq km (gross) Licence Duration: 15 years Terms: 1992 Licensing Terms Closing Date: 15 March 2006 The hydrocarbon potential of the area is illustrated by Corrib gas field. The infrastructure for the field could significantly reduce development costs for future diiscoveries. 2006 Slyne/Erris/Donegal Round

Corrib Gas Field Base Chalk Tertiary Volcanics Bajocian Lst Sherwood 18/20-3 Appriasal Well Base Chalk Tertiary Volcanics Bajocian Lst Sherwood

MIDDLE JURASSIC OIL SHOWS LOWER TRIASSIC GAS DISCOVERY

Inishbeg Prospect Corrib Analogue Donegal Basin Corrib Development (1 tcf) SE NW Inishbeg Prospect Corrib Analogue Inishbeg Prospect E W S. Boldy 2004

TOPICS INTRODUCTION > OVERVIEW EXPLORATION & PRODUCTION STATUS > SEISMIC, WELLS & LICENCES > PRODUCTION & DEVELOPMENT 3. FACTORS EFFECTING E&P > ACCESS TO DATA & INFORMATION > DEMAND FOR OIL & GAS > INFRASTURCTURE > LICENSING TERMS > PROSPECTIVITY > ACCESS TO ACREAGE 4. INITIATIVES TO PROMOTE THE SECTOR 5. SUMMARY

E&P PROMOTION   Early in 2004, Ireland embarked on a concerted campaign to promote the E&P sector. This has involved… Consultation with the Industry Scheduling of Licensing Rounds Participation in Conferences, Exhibitions and Workshops, and the putting in place and execution of a ‘business plan’ to address geotechnical and other factors likely to act as barriers to entry, perceived or otherwise, during 2005

‘Business Plan for Irish Oil & Gas Industry’   The ‘business plan’ includes the following: geotechnical studies to determine the yet-to-find hydrocarbon resources of Atlantic Ireland basins, 2) licensing, fiscal & commercial analyses to demonstrate that potential discoveries can be economically developed, and 3) marketing of Ireland as a prime place to explore for oil and gas to the benefit of both exploration companies and the host country ... goal is to help Ireland become self-sufficient in natural gas (and oil) by 2015/2020 !

‘Business Plan for Irish Oil & Gas Industry’   Present status: Petroleum systems analysis completed for Slyne, Erris, Donegal basins by PGS and ACECA. Substantial Yet-To-Find resource potential has been established. A new assessment of seismic data quality west of Ireland shows that while variable, very significant uplifts can be achieved Licensing and Regulatory frameworks have been reviewed mapped out; ways to streamline are identified; and an open and developing gas market is available. NEXT STEP: beginning a regional resource evaluation of the other major Atlantic Ireland basins in October…

‘Business Plan for Irish Oil & Gas Industry’ Triassic Palaeogeography   ‘Business Plan for Irish Oil & Gas Industry’ Triassic Palaeogeography N. Meadows, 2004

Welcome to… What Ireland has to offer: - Accessible data - Growing local energy demand - Developing infrastructure - Favourable terms - Acreage with good prospectivity - An easy place to operate, and - An exciting future… Welcome to…

Welcome to…