Post on 20-May-2018
Trap Oil Ltd
Relinquishment Report
for
Licence P.1556
Block 29/1c (Orchid)
Relinquishment date: 12 January 2015
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Contents
1. Header 2. Synopsis and introduction 3. Exploration activities
3.1 Seismic data 3.2 Wells
4. Prospectivity analysis 5. Clearance
List of Figures
1. Location map and seismic database 2. Seismic line illustrating well path and Top Ekofisk Fm. Depth Structure (pre-‐drill) 3. Well 29/1c-‐9Z petrophysical interpretation (Summit) 4. Well 29/1c-‐9Z FMI and MSIP analysis summary 5. Well 29/1c-‐9Z Composite Log illustrating hydrocarbon shows in secondary Palaeocene
target 6. Top Ekofisk Depth Structure pre and post drilling 7. Porosity volume comparison before and after drilling Orchid 8. Amplitude anomaly illustrating Eocene lead (Aris) 9. Fulmar Fm. depth structure map illustrating Metis, Zeus and SPL1 leads 10. Regional seismic line illustrating upside play concepts
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1. Header Licence number P1556 Licence round 25th Licence Effective date 12th February 2009 Licence type Traditional Block number 29/1c Operator Trap Oil Ltd Licensees Trap Oil Ltd -‐ 86% Atlantic Petroleum Ltd -‐ 14% Work programme Firm commitments
-‐ obtain 100 sq km 3D seismic data -‐ reprocess 200 sq km 3D seismic data to preSDM and drill, at the Minister’s discretion, one well either -‐ to 3650m (pre Cretaceous) or -‐ to 2530m or 200m into Chalk Group
All working obligations have been fulfilled.
2. Synopsis and introduction
Licence P.1556 Block 29/1c was awarded to Summit 95% (Operator) and Reach Exploration (5%) as a Seaward Production Licence in the 25th Licensing Round with the Initial Term commencing on 12th February 2009. Licence working obligations included obtaining and reprocessing 3D seismic, and a firm well drill to be drilled to 2,530 metres or 200 metres into the Chalk.
In 2010 Valiant farmed in to acquire 30% WI from Summit, Trapoil farmed in to acquire 10% WI from Summit and Atlantic Petroleum also farmed in to acquire 10% WI from Summit.
In 2011 Trapoil acquired Reach Oil & Gas and consequently an additional 5% carried equity in the licence resulting in the Licence Group composition as follows:
-‐ Summit 45% (operator) -‐ Valiant 30% -‐ Atlantic 10% -‐ Trapoil 15% (5% carried interest)
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During 2009-‐2010, Fugro TerraCube REGRID regional seismic data and Amerada Hess 1991 3D seismic data was acquired. The Amerada Hess data was reprocessed (preSDM) by Geokinetics in 2010. Ikon undertook inversion of the 3D data
In 2012 the Group drilled well 29/1c-‐9, 9Z. Ithaca acquired Valiant Petroleum and hence an additional 30% equity in the licence.
In 2013 Trapoil purchased Summit’s equity in the licence. A 50% end of Initial Term relinquishment was made effective 11.02.13.
In 2014 Ithaca withdrew from the licence with Trapoil (16%) and AP (4%) acquiring Ithaca’s equity on a prorated basis.
Attempts were made to farm out the licence with a view to appraising the Orchid discovery. The farm out effort was unsuccessful and the licence was surrendered effective 12.01.15.
3 Exploration Activities
3.1 Seismic Data
Fugro TerraCube REGRID regional seismic data and Amerada Hess 1991 3D seismic data were acquired. The Amerada Hess data were reprocessed (preSDM) by Geokinetics. Ikon undertook inversion of the 3D data.
Figure 1. Location map and seismic database
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3.2 Wells
The key well is as follows:
29/1c-‐9, 9Z Orchid discovery (Summit, 2011)
The well was drilled to test a robust four-‐way dip closure mapped at Palaeocene (Forties Fm.) and Chalk Group levels. A significant amplitude anomaly mapped at Ekofisk Formation level with high impedance values was interpreted to represent the development of significant porosity within structure. The closure is located in close proximity to producing fields Banff, Kyle, Bittern and the Gannet field’s complex, all sourced by the ubiquitous Kimmeridge Clay. It was anticipated the overlying Palaeocene shale would provide top seal.
Figure 2. Seismic line illustrating well path and Top Ekofisk Fm. Depth Structure (pre-‐drill) The well was drilled as a deviated well (to avoid shallow gas pockets) to a depth of 9,333 ft MD (8,609 ft SS). The Orchid discovery is a 4-‐way dip closure at the Ekofisk Fm. level. A total of 700ft TVD/MD of Chalk section was drilled to TD, the top 375ft of which having porosities in excess of 20% and two zones recording porosities in excess of 35%. Significant gas peaks were recorded while drilling between 8700-‐8780 ft MD with good to fair oil shows recorded within the high porosity zones (8725-‐8790 ft MD and 8900-‐8940 ft MD). Evidence exists of localised fracture networks within the Chalk reservoir interval.
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Figure 3. Well 29/1c-‐9Z petrophysical interpretation (Summit)
Figure 4. Well 29/1c-‐9Z FMI and MSIP analysis summary
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Overall the well results show good conformance with pre-‐drill Chalk prognosis and geological model. The Andrew Sandstone Member is very poorly developed in the well with fluorescence but no cut recorded. The section was drilled overbalanced with oil-‐based mud and this may have suppressed gas shows. Petrophysical evaluation revealed an absence of porosity or permeability and 100% water saturation is assumed.
Figure 5. Well 29/1c-‐9Z Composite Log illustrating hydrocarbon shows in secondary Palaeocene target
Figure 6. Top Ekofisk Depth Structure pre and post drilling
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Figure 7. Porosity volume comparison before and after drilling Orchid Post-‐well studies included the following: -‐ recalibration of the depth conversion (velocity model and depth maps) -‐ rock physics and petrophysics -‐ recalibration on inversion (petrophysics, inversion and porosity transform) -‐ petrophysics (Chalk reservoir characterisation, FMI, MSIP interpretation) -‐ update of geological model (petrel static model) and volumetrics
4 Prospectivity Analysis
4.1 Orchid The well records a 50ft oil column overlying a c. 235ft transition zone. An oil-‐water-‐contact can be interpreted between c. 8730 ft SS and 8770 ft SS (mapped spill).
With respect to evaluation of the Chalk interval penetrated, critical deficiencies exist in:
-‐ wireline log coverage -‐ pore pressures’ data -‐ reservoir cores -‐ reservoir fluids’ and flow-‐assurance data
These deficiencies cast serious uncertainty over the petrophysical evaluation of the interval and hence any estimation of recoverable oil volumes. This is exemplified by the fact that petrophysical interpretations undertaken by Summit, AGR Tracs, OPES and ERC Equipoise lack basic agreement in their Chalk interpretations.
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Well operator Summit conclude the STOIIP to be in the order of 35 MMboe. 4.2 Additional Prospectivity Limited additional prospectivity was recognised in the original block that guided the end of Initial term relinquishment with the retention of block 29/1c containing the Orchid discovery. In summary: Tertiary prospectivity
-‐ No valid leads or prospects identified -‐ Amplitude response at Tay Fm. level (Aris) interpreted as lithological -‐ Large Forties Fm. fairway on block but proven to be water bearing by well
29/1b-‐2 -‐ Maureen Fm. and Andrew Fm. sands are poorly imaged on seismic data
Figure 8. Amplitude anomaly illustrating Eocene lead (Aris) Deep prospectivity
-‐ No valid leads or prospects identified at Fulmar, Pentland or Skagerrak Formation levels. Two very small 4-‐way dip closures (Metis and Zeus) mapped at Late Jurassic Fulmar Sandstone member level and SP1 possible, small 4 way dip closure mapped at Triassic Skagerrak and Fulmar Sandstone member levels.
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-‐ Depths in excess of 16,000ft with development of significant overpressure
and high temperature anticipated
Figure 9. Fulmar Fm. depth structure map illustrating Metis, Zeus and SPL1 leads
Figure 10. Regional seismic line illustrating upside play concepts