1. Status of Hydrocarbon Exploration
Iceland
Status of Hydrocarbon Exploration
2010
Kristinn Einarsson

2. Current activities Next Icelandic round to be held in Autumn of 2011
Preparations for the 2nd round
More data gathering – coring for analysis of petrochemistry and sedimentology
Terms under consideration
Standard JOA in preparation
Overall aim: Less uncertainty for applicants

3. Second Icelandic licensing round – northern Dreki Area
Jan Mayen Agreement Area
Set to open 1 August 2011
Deadline for applications 1 December 2011
Norway (Petoro) may participate as an active partner with up to 25% in any licence granted within the agreement area
Licensing system similar to other European countries – Hydrocarbons Act transposes EU Directive 94/22/EC into Icelandic law
-200 nautical mile limit
-The area covered by the Jan Mayen agreement of 1981 3 3

4. Why this area?
Oil shows
Oil and gas fields
Jan Mayen Ridge
Northern
Dreki area
Iceland GeoSurvey 2008
Jan Mayen Ridge microcontinent geologically similar to neighbouring hydrocarbon basins
Next door neighbours prior to the opening of the northeast Atlantic ocean basin
Figure 2. The northern Dreki area and hydrocarbon basins in East Greenland, the North Sea and offshore western Norway and Shetland.
The Jan Mayen Ridge, including the part covered by the northern Dreki area, is thought to have potential for hydrocarbon accumulations because of its geological similarity to hydrocarbon basins which were its next door neighbours prior to the opening of the northeast Atlantic ocean basin. The basins in question are the Jameson Land Basin onshore East Greenland, where oil is known to have been generated and preserved in sandstone bodies, and basins offshore western Norway, Shetland and in the North Sea , where oil and gas has been discovered in commercial quantities. 4

5. Iceland continental shelf portal
GIS based web portal online (Orkustofnun, Iceland GeoSurvey)

6. 2D-seismic surveys NPD-NEA survey in 1985 and 1988: 5500 km
High-quality re-processing by Spectrum in 2009
CGGVeritas spec-surveys in 2001 and 2008: 3650 km
TGS-NOPEC spec-survey in 2002: 800 km

7. Deep Sea Drilling Project
346
347
348
349
350
Iceland GeoSurvey
Deep Sea Drilling Project
Five shallow boreholes drilled in the area during DSDP Leg 38 in 1974 7

8. Multi-beam bottom mapping (2008) Data covering 10,500 sq
Multi-beam bottom mapping (2008) Data covering 10,500 sq.km available upon request
(Source: Marine Research Institute of Iceland)

9. Multi-client satellite seep study
Hydrocarbon Potential
 Several factors indicate that the northern Dreki area may have significant hydrocarbon potential:
1) Sedimentary rocks of sufficient thickness and age are present.
2) There are indications of the presence of sedimentary strata pre-dating the initial opening of the Norwegian-Greenland sea . Such sediments are likely to be analogous to those preserved in the Jameson Land Basin onshore East Greenland where source rocks are present and oil known to have been generated.
3) Reservoir rocks are also likely to be present. Among the candidates are submarine fans derived from East Greenland.
4) Structures and stratigraphic configurations with potential to act as hydrocarbon traps are clearly present.
5) Seismic reflection anomalies are observed which may indicate the presence of hydrocarbons.
The area is, however, in the initial stage of exploration. Sufficient seismic reflection data is available to do in-depth studies, but no exploration wells have been drilled in the area to date. Calibration of lithology, physical properties and age is therefore still lacking.
SAR seep study available from Fugro-NPA
Quadruple coverage
186 slicks mapped, including 8 higher confidence seepage slicks
Map Courtesy of Fugro-NPA 9

10. High Ridge – North Dreki area, below Top Paleocene strata,
Hydrocarbon Potential
 Several factors indicate that the northern Dreki area may have significant hydrocarbon potential:
1) Sedimentary rocks of sufficient thickness and age are present.
2) There are indications of the presence of sedimentary strata pre-dating the initial opening of the Norwegian-Greenland sea . Such sediments are likely to be analogous to those preserved in the Jameson Land Basin onshore East Greenland where source rocks are present and oil known to have been generated.
3) Reservoir rocks are also likely to be present. Among the candidates are submarine fans derived from East Greenland.
4) Structures and stratigraphic configurations with potential to act as hydrocarbon traps are clearly present.
5) Seismic reflection anomalies are observed which may indicate the presence of hydrocarbons.
The area is, however, in the initial stage of exploration. Sufficient seismic reflection data is available to do in-depth studies, but no exploration wells have been drilled in the area to date. Calibration of lithology, physical properties and age is therefore still lacking.
High Ridge – North Dreki area, below Top Paleocene strata,
key N-S correlation line 10

11. Unconformities become visible below the Top Paleocene
The yellow lines are only to show the different dipping patterns between the main horizons interpreted, see legend on the last slide.
Unconformities become visible below the Top Paleocene

12. Anticline structure above reverse fault
amplitude brightening due the unconformity, rock type, or possible formation fluids ???
Anticline structure above reverse fault

13. Anticline structure, fault and stratigraphic play type possibilities
The vertical green lines marked the area of the largest possible oil seep that was interpreted by Furgo-NPA, see reference map.
Anticline structure, fault and stratigraphic play type possibilities

14. Anticline structure, fault and stratigraphic play type possibilities
The vertical green lines marked the area of another oil seep that was interpreted by Furgo-NPA, see reference map.

15. Spectrum reprocessing of 1985 data

16. Survey in August/September 2010
Surface geochemistry sampling and bathymetric mapping
First part sampling/latter part mapping
Cooperation project with NPD
On research vessel of Icelandic Marine Research Institute
Equipped with multibeam bathymetric system and sub-bottom profiler
Samples collected by piston coring

17. Survey in August/September 2010
Selection of sampling sites based on all existing data
Features used to select sites
Faulting extending up to sea-floor, chimney like features
Possible gas indications, amplitude variations, BSR’s.

18. Survey in August/September 2010
Features used to select sites (cont’d)
Indications of deep pre-Tertiary sedimentary sequences, possible source rocks
Earlier positive indications of light hydrocarbon gases in cores collected in 1970’s
Satellite imaged surface slicks (SAR)
Sea-floor features revealed by recent multi-beam bathymetric maps, mostly possible pockmarks

19. Survey in August/September 2010
Features used to select sites (cont’d)
Attempt to attain distribution over most of the area, i.e. various sub-regions
Structural highs and lows
Volcanic regions
Suggested pre-Tertiary sedimentary regions
Use some combination of these features to decide on sampling spots, with 7 ship-days to collect samples

21. Survey in August/September 2010
Coring took place in August 2010
Samples collected in Icelandic and Norwegian EEZ
19 cores collected in Icelandic EEZ, thereof 16 longer than 2 m
Deepest part of cores subsampled for analyses in Norway at Fugro Geolab Nor
Results expected in approximately six weeks, will be available for purchase
Info on Norwegian part from NPD

22. Core locations and lengths
2.6 m
1.2 m
2.5 m
1.4 m
2.2 m
3.0 m
2.3 m
2.4 m
2.0 m
3.6 m
2.0 m
2.4 m
1.2 m
3.4 m
2.6 m
2.2 m
2.4 m
2.8 m
1.7 m
1.6 m
2.8 m

23. Thanks for your attention
Acknowledgements:
Thorarinn Arnarson, Inga Dóra Gudmundsdóttir, Lárus Ólafsson, Thorvaldur Bragason at NEA;
Karl Gunnarsson, Gunnlaugur M. Einarsson, Bjarni Richter, Steinar Thor Gudlaugsson at Iceland Geosurvey