1. Please....

2. Vagabond Ventures Oil Group Searches For Fossil Fuels Winter Session 2013

3. Week 1: Geology & History of Hydrocarbon s Week 1: Geology & History of Hydrocarbon s Week 2: Oil & Gas Exploration Week 2: Oil & Gas Exploration Week 3: Petroleum Engineering Week 3: Petroleum Engineering The Course Outline Week 4: ‘Vagabond Group’ proposes 2 prospects Week 4: ‘Vagabond Group’ proposes 2 prospects Week 5: ‘Vagabond Group’ plans production Week 5: ‘Vagabond Group’ plans production Week 6: the Payout?! Week 6: the Payout?! The Basics: The Adventure: A black-gold millionaire or dry hole hobo? Oil & Gas Exploration $1,000,000

4. Requirements for success - Requirements for success - Requirements for success - Exploration processes - Exploration processes 1) Source 2) Reservoir 3) Migration Path 4) Trap

5. - permeable Requirements for success source rock (shale) - organic rich - buried quickly - compressed/heated - porous Top of mature (generating) source rock where the organic material is ‘cooked’ where gas/oil are ‘stored’ migration pathsurface reservoir rock (sandstone)

6. Requirements for success source rock (shale) - organic rich - buried quickly - compressed/heated - porous - permeable where the organic material is ‘cooked’ where gas/oil are ‘stored’ migration path reservoir rock (sandstone)

7. Requirements for success source rock (shale) migration path the oil & gas escapes! without a TRAP... migration path reservoir rock (sandstone)

8. source rock (shale) migration path the oil & gas escapes! reservoir rock (sandstone) Requirements for success without a TRAP...- TRAPS TRAP = barrier to migration - anticline - thrust fault - normal fault - salt dome - facies change

9. Compressional forces can cause rock layers to BEND & FOLD.... Anticline Requirements for success - TRAPS sandstone shale impermeable possible oil/gas trap oil/gas

10. Thrust Fault Requirements for success - TRAPS Compressional forces can cause rock layers to FRACTURE.... possible oil/gas traps impermeable fault plane sandstone shale impermeable oil/gas NOT

11. Extensional forces can cause rock layers to STRETCH & FRACTURE.... Normal Fault Requirements for success - TRAPS possible oil/gas trap impermeable fault plane sandstone shale impermeable oil/gas

12. Possible oil/gas traps Requirements for success - TRAPS Intrusions into layered rocks... Salt Dome shale sandstone salt layer oil/gas

13. Requirements for success - TRAPS Rock Properties within a rock layer can be different.... Facies Change Imbedded in sedimentary rock layers possible oil/gas trap former river channel

14. Exploration processes Oil Exploration - Requirements for success - Requirements for success 1) Source 2) Reservoir 2) Reservoir 3) Migration Path 3) Migration Path 4) Trap - Exploration processes - Exploration processes - Geology - Geophysics - ‘Land’ work Exploration processes Exploration processes

15. Exploration processes GeophysicsGeology Land Work Engineering ? What’s the difference?

16. Exploration processes from last week... GeophysicsGeology What’s the difference?

17. ‘geo’ = earth ‘logy ’= study ‘geo’ = earth ‘physics’ Exploration processes Geophysics Geology... uses field work and rock analysis to study the composition, processes, & history of the earth close Brunton compass Geoscience... uses physics and mathematics to evaluate the internal structure of earth hand lens

18. THE SCIENTIFIC TOOLS - well logs - subsurface imaging - contour maps USE THE TOOLS TO FIND OIL & GAS - look for TRAPS - look for RESERVOIRS Exploration processes Scientific Tools

19. - well logs - subsurface imaging - contour maps next week Scientific Tools... Seismic Data

20. What is this wiggle trace? This is a ‘Seismic Section’, similar to a X-section Scientific Tools Subsurface Imaging

21. rock layers This is a ‘Seismic Section’, similar to a X-section Reflections from the top and bottom of rock layers How do we acquire these reflections? What is this wiggle trace?

22. The Seismic Method Travel time (sec)/2 X velocity (ft/sec) = DEPTH (ft) energy source receiver surface (land or water) rock layer reflection point Travel Time velocity depth ?

23. sourcereceiver surface rock layers Seismic Trace The Seismic Trace

24. the 2-D Seismic Line receivers energy source rock layers Depth (ft)

25. the 2-D Seismic Line How do we aquire these data?

26. listening devices... Acquisition – on Land cable truck geophones jug hustlers cables on the ground

27. cable truck geophones jug hustlers cables on the ground listening devices...What about an energy source?? Acquisition – on Land

28. What about an energy source??energy source - Vibroseis truck cable truck geophones jug hustlers cables on the ground Acquisition – on Land

29. energy source - Vibroseis truck Marine Acquisition sea floor sea surface

30. Acquisition on Land listening devices... Marine Acquisition cable with hydrophonesairgun energy source... Boat

31. Acquisition on Land listening devices... Marine Acquisition cable with hydrophonesairgun energy source... Boat

32. listening devices...energy source... Boat Acquisition on Land Marine Acquisition Seismic Survey Layout – 2D Boat

33. Seismic Survey Layout – 2D line spacing is usually ¼ - ½ mile apart

34. Seismic Survey Layout – 2D line spacing is usually ¼ - ½ mile apart Grid of 2-D Seismic Lines

35. each seismic line becomes part of the data grid using the grid we identify rock layers & make ‘contour’ plots of each layer Grid of 2-D Seismic Lines

36. each seismic line becomes part of the data grid using the grid we identify rock layers & make ‘contour’ plots of each layer Grid of 2-D Seismic Lines Contour Plot from a 2-D Survey

37. With large spaces between the lines, the contours could be wrong! We use these plots to find possible oil traps BUT..... The trap could be bigger What to do???... or smaller!!

38. Contour Plot from a 2-D Survey With large spaces between the lines, the contours could be wrong! We use these plots to find possible oil traps BUT..... The trap could be bigger... or smaller!! 3-D Seismic Surveys What to do???

39. 2-D Survey 3-D Seismic Surveys versus 3-D Survey

40. listening devices... 3-D Seismic Surveys Steering devices

41. listening devices...reels of hydrophone cables 3-D Seismic Surveys

42. listening devices...reels of hydrophone cables 3-D Seismic Surveys

43. listening devices... 3-D Seismic Surveys spread=1 mile cable length =7 mile boat energy source

44. spread=1 mile cable length =7 mile boat 3-D Seismic Surveys energy source: airgun array

45. energy source: airgun array 3-D Seismic Surveys... deploying an airgun

46. energy source: airgun array... deploying an airgun What do we get from a 3-D survey? 3-D Seismic Surveys

47. What do we get from a 3-D survey? 3-D Seismic Surveys Empty spaces Remember the 2-D Seismic Grid? Horizontal slices Vertical slices 3-D Seismic Cube It’s Now a 3-D Seismic Cube How does this help ?

48. water layer salt layer reservoir layer source rock layer possible oil/gas 3-D Seismic Cube It’s Now a 3-D Seismic Cube geoscience & engineering applications

49. 2-D vs 3-D seismic acquisition in the Gulf of Mexico No. traces 19831995

50. THE SCIENTIFIC TOOLS - well logs (next week) - subsurface imaging - contour maps USE THE TOOLS TO FIND OIL & GAS - look for TRAPS - look for RESERVOIRS - look for TRAPS: - anticlines - fault traps – normal & thrust - salt domes - change in rock type (facies) - look for RESERVOIRS: - attribute analysis Finding Oil and Gas Exploration Processes

51. Finding Oil and Gas - look for TRAPS: - anticlines - fault traps – normal & thrust - salt domes - change in rock type (facies)

52. Anticlines - tilted & folded rocks Anticline sandstone How does this look on seismic? Finding Oil and Gas shale Possible oil/gas trap

53. Vertical Slice from 3-D Cube Possible oil/gas traps Anticline - tilted & folded rocks Finding Oil and Gas

54. - looking for TRAPS: - anticlines - fault traps – normal & thrust - salt domes - change in rock type (facies) Finding Oil and Gas

55. FAULTS - Rock Layers that are broken a; normal fault sandstone How does this look on seismic? possible oil/gas trap Finding Oil and Gas shale

56. 2-D Seimic Line from shallow water Gulf of Mexico Normal Fault possible oil/gas traps Finding Oil and Gas

57. numerous faults possible oil/gas traps several anticlines numerous rock layers Finding Oil and Gas

58. - looking for TRAPS: - anticlines - fault traps – normal & thrust - salt domes - change in rock type (facies) Finding Oil and Gas

59. FAULTS - Rock Layers that are broken Thrust Fault Let’s look at an example... Possible oil/gas traps sandstone Finding Oil and Gas shale

60. Mounatins Foothills Finding Oil example of mountain thrust faulting.... How does this look on seismic?

61. Finding Oil http://www.efieldexploration.com/edsuploads/NonSeismicMethods/Non-Seismic.pdf possible oil/gas traps Thrust Fault

62. - looking for TRAPS: - anticlines - fault traps – normal & thrust - salt domes - change in rock type (facies) Finding Oil and Gas

63. Salt Dome - Intrusion into layered rocks Salt Dome Possible oil/gas traps sandstone How does this look on seismic? Finding Oil and Gas shale

64. 2-D Seismic Line from shallow water Gulf of Mexico Possible oil/gas traps Salt Dome Finding Oil and Gas

65. salt intrusion Some Faults Bright Spots? drill Location possible drill Location Finding Oil & Gas Salt Intrusion possible oil/gas traps

66. Vertical Slice from 3-D Cube In deep water Gulf of Mexico Oil well possible oil reservoir Finding Oil Salt Dome salt salt dome trap? oil in these layers

67. - looking for TRAPS: - anticlines - fault traps – normal & thrust - salt domes - change in rock type (facies change) Finding Oil and Gas

68. Change in rock type – River Channel Imbedded in sedimentary rock layers former river channel possible oil/gas trap How does this look on seismic? Finding Oil and Gas

69. 3-D horizontal slice from Sarawak, Malaysia From Rijks & Jauffred Possible oil/gas trap River Channel X X Finding Oil and Gas

70. - looking for TRAPS: - anticlines - fault traps – normal & thrust - salt domes - change in rock type (facies) Finding Oil and Gas - looking for RESERVOIRS: - brights spots - flat spots - frequency/phase/intensity changes

71. Bright Spot Bright Spot - high seismic response often high amplitudes are highlighted in color bright spot high amplitude zone gas/oil in rock pore spaces reflect more energy than water possible oil/gas Finding Oil and Gas

72. vertical slice from 3-D cube shallow water Gulf of Mexico Proposed wells Can we find the bright spots? possible oil/gas Finding Oil and Gas

73. - looking for RESERVOIRS: - brights spots - flat spots - frequency/phase/intensity changes

74. Flat Spot Flat Spot - sag under an anticline In the rock pore spaces, energy waves travel more slowly through oil than through water OIL Apparent sag on seismic flat spot possible oil/gas Finding Oil and Gas

75. expanded area from a vertical slice of a 3-D cube flat spot Can we find the flat spot? brightspot Do we also have a bright spot? possible oil/gas rock layer Finding Oil and Gas

76. - looking for RESERVOIRS: - brights spots - flat spots - frequency/phase/intensity changes

77. Finding Oil and Gas 3-D dataRiver Channels possible oil-filled river sands!

78. fault planes anticlines possibleoil/gas Finding Oil and Gas 3-D data

79. We analyze potential traps... We project well locations into the potential reservoir We discover a Salt dome... 3-D seismic cube With a 3-D seismic cube possible discovery!

80. Land-Lease

81. Land-Lease with proposed location from geoscientists... - develop a surface map - determine ownership of - surface land rights - sub-surface mineral rights - identify hazards - determine timing - negotiate contracts two important factors...

82. Land-Lease 1) location: off-shore or on-shore two important factors... 2) ownership: public or private example: West Africa

83. Most countries.... - protect their offshore territories

84. offshore Angola where Rocky & I worked Most countries.... - protect their offshore territories - subdivide them into ‘blocks’ - lease exploration rights in each block in each block

85. offshore Angola where Rocky & I worked Most countries.... - protect their offshore territories - subdivide them into ‘blocks’ - lease exploration rights in each block in each block

86. Offshore blocks are usually different shapes offshore Angola where Rocky & I worked OFFSHORE A N G O L A Block 17 started deep water exploration & drilling in Angola

87. A N G O L A offshore Angola where Rocky & I worked Block 17 started deep water exploration & drilling in Angola

88. Most countries have public auctions for exploration rights These are called ‘lease sales’ or ‘leasing rounds’ Blocks available in Angola’s 2008 Lease Round off-shore on-shore

89. Land-Lease 1) location: off-shore or on-shore two important factors... 2) ownership: public or private - Different individuals/groups may own the surface & subsurface rights - Timing & contracts are negotiated with all owner-parties difficult and time consuming! more about Land-Lease in Week 4

90. Oil Exploration - Requirements for success - Requirements for success - Source - Reservoir - Reservoir - Migration Path - Trap - Exploration processes - Exploration processes - Geology - Geophysics - ‘Land’ work

91. Oil Exploration - Requirements for success - Requirements for success - Source - Reservoir - Reservoir - Migration Path - Trap - Exploration processes - Exploration processes - Geology - Geophysics - ‘Land’ work Exploration processes GeophysicsGeology Land WorkEngineering

92. GeophysicsGeology Land WorkEngineering Drilling recommendations & detailed cost flow chart Petroleum Engineering Next week! Until then.... visit our website: www. vagabondgeology.com

93. REFERENCES Money in the Ground, John Orban III Petroleum Geology, Exploration, Drilling and Production, Norman Hyne Pitfalls in Seismic Intrepretation, Paul Tucker, Howard Yorston Halliburton/Aramco..... Mr. Frank Kelly, Mr. Mohamed Zeghlache Schlumberger…………... Mr. Shabbir Almed. Mr. Jack Caldwell Texaco ……………………... Ms Gail Kahle Butler, Mr. Tako Koning Tulow Oil ………………….. Mr. Jim Brandon, Mr. Tako Koning Western Geco Corp….. Mr. Robin Wrigley. Mr. Bruce Clulow Geology Rocks!

94. NOTES: OFFSHORE US GOM - Mineral Management Service (MMS) now Bureau of Ocean Energy Management, Regulation and Enforcement ( BOEMRE), is responsible for management of leasing and project oversight - state-federal offshore boundaries are 3 geographical miles, except Texas & Florida west coast which is 3 marine leagues from shore. - blocks are irregular but approximately 9 square miles each (3X3)