Post on 07-Jan-2016
description
ARKeX gradiometry system – a key to future exploration success
Kitty HallChief Executive, ARKeX Ltd
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Contents
• Introduction to ARKeX
• Introduction to Gravity Gradient Imaging
• Gradiometry technology
• Funding ARKeX
• Funding challenges
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Introduction to ARKeX
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Introduction to ARKeX
• Airborne geophysical services for exploration – mining and oil
• Two challenges:
• MARKET development• TECHNOLOGY development
• There is always a third challenge!
• RAISE DEVELOPMENT CAPITAL
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Introduction to ARKeX
• Developing the market – survey services provided using technology adapted from the defence sector
• Have grown from 1 to 3 systems• Requires capital
• Developing proprietary technology to be 10x more sensitive
• This will expand the market significantly• Requires capital
• Development capital has been raised
• c. £30m to date• From Venture Capital funds
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What does ARKeX do?
• BlueQube is a unique proprietary offering from ARKeX:
• Gravity Gradient Imaging (GGI)
• Magnetic Gradient Imaging
• High Grade LiDAR
• Specialist processing
• Integrated interpretation
• The key element of BlueQube is Gravity Gradient Imaging
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Introduction to Gravity Gradient Imaging
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Introduction to Gravity Gradient Imaging
• The Earth’s gravity field is not uniform and varies with changes in the underlying geology
• Measuring the Earth’s gravity field allows the explorationist to image the sub-surface geology
• To do this from the air provides cost effective coverage of wide areas
• Traditional Gravimeters measure the total gravity field
• Gravity Gradiometers measure the rate of change (gradient) of the gravity field
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Basic facts – gravity, gravity gradiometry
• Gravity measurement cannot distinguish between acceleration (motion of plane) and changes in gravity.
• Error in gravimetry therefore related to how well the motion of plane can be measured independently.
• This leads to “GPS limit” and this is what fundamentally limits distance over which airborne gravimetry gives good results
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Gravity vs GradiometryIdeal World
Gravity Profile (Gz)
Gravity Meter
Accelerometer detects changes in gravity due to the variations in the subsurface
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Measured Gravity Profile
Gravity Meter
Equivalence PrincipleNo gravimeter can distinguish between gravity and linear acceleration.
Airborne gravity uses GPS to measure linear accelerations to correct “measured” gravity.
Filtered Gravity Profile
Gravity vs GradiometryReal World Gravity
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Gravity Gradient Profile (Gzz)
Gravity Gradient MeterEach accelerometer measures same plane
acceleration
The difference in outputs is independent of plane motion
Gradiometry is the ideal choice for a moving platform
Ideal World (Gzz) Filtered Gravity Profile
Gravity vs GradiometryReal World Gradiometry
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World’s First Gravity Gradiometers
• US tax dollars drove the development of the world’s first true dynamic gravity gradiometer in the 1970s
• A gradiometer system was developed for use on submarines for defence purposes
• This technology was eventually de-classified and applied to exploration from 1997 onwards
• This technology, produced by Lockheed Martin in the USA, remains tightly controlled by the US Government because of its military origins
• The cost?c.$250m
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Gradiometry Technology
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Lockheed technology
• There are two members of the Lockheed family of gradiometers –
• FTG (Full Tensor Gradiometer)• ARKeX has 3 FTGeX systems, our own proprietary adaptation of the
Lockheed FTG
• ‘Falcon’ system• A collaborative development between Lockheed and mining giant BHP
Billiton
16Lockheed Martin Full Tensor Gradiometer - FTG
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ARKeX Fleet: 2 Cessna Caravans, 1 Twin Otter
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Advantages of BlueQube
• Quick and cost effective
• Airborne survey covers terrain too difficult or too expensive for other methods
• Compliments other datasets (EM and Seismic)
• Environmentally friendly – passive measurements only & footprint is minimal
• Oil and Mining
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Technology needs
• Current systems measure 7-10 E/ rt Hz
• However, mining requirements are very exacting
• To resolve smaller ore bodies a system with enhanced resolution is required measuring at 1 E/ rt Hz
“E/ rt Hz” is the measure of resolution of a gravity gradiometer
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Kimberlite pipe example
• The following examples are based on some modelling for a diamond exploration company
• They provided the dimensions, density contrasts and an areal layout of ‘kimberlite pipes’ to be modelled
• The first example shows how the pipes would look with in an ideal world with an instrument with no noise
• The second shows the resolution with a 10E/rtHZ tool
• The third shows the resolution with a 3E/rtHz tool
• The fourth shows the resolution with a 1E/rtHz tool
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Gradient response in an ideal world – no noise
12.6, 7.1, 3.1, 0.8 Ha pipesCrater length = 50mDiatreme length = 850mCrater density contrast = -0.27 g/ccDiatreme density contrast = -0.17 g/cc
Survey line spacing :100 x 120 mImage is inverted for clarity
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Gradient response from 10E/rt Hz instrument
Only largest kimberlites can be seen
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Gradient response from 3E/rt Hz instrument
Large and medium kimberlites can be seen
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Gradient response from 1E/rt Hz instrument
All kimberlites can be seen
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The solution?
• ARKeX’s EGG has a target resolution of 1E/ rt hz
• This sensitivity is achieved through using superconducting circuitry
• EGG sensor operates at -269 deg Celsius (4 deg Kelvin)
26Exploration Gravity Gradiometer - EGG
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Funding ARKeX
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ARKeX Milestones
• 2004 Company launched - £4m
• 2005 First FTGeX system2nd funding round - £5.5m
• 2007 Second FTGeX systemVenture loan - $10mPurchase of ARK Geophysics
• 2008 Third FTGeX systemFirst EGG in flight trials3rd funding round - £15.4m($30m)
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Funds raised
• 83% equity• 17% debt
• Specialist energy funds: 53%• General funds: 40%• Other:7%
• UK: 47%• Europe 53% Source of Equity Funds
Founders & Management
UK funds
European funds
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Current plans
• Commercial deployment of EGG technology
• Build and deploy EGG systems worldwide
• Further development of GGI market in oil and mining
• Potential also in defence/ security sector
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Funding Challenges : What next?
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London: Oil & Gas Equipment & Services
• FTSE 350: 22 companies
• AIM: 12 companies
• Geophysical companies: 2
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Alternatives to London AIM
• Oslo AXXESS
• Axxess market established May 2007• Less stringent listing requirements than a full stock exchange market• “Welcomes younger, smaller and less widely held companies”• Identical market monitoring and continuing obligations to the full Bors
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Oslo: Oil & Gas Equipment & Services
• Bors: 45 companies
• AXXESS: 7 companies
• Geophysical companies: 8
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Conclusion
• ARKeX has the most advanced technology in gravity gradiometry for exploration
• Access to capital has been from Europe rather than UK
• Future IPO – London or look elsewhere?
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Gravity Gradient Imaging : Completing the picture