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Vagabond Ventures Oil Group

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Winter Session 2013

Week 1: Week 1: Geology & History of HydrocarbonGeology & History of Hydrocarbonss Week 2: Oil & Gas Exploration Week 2: Oil & Gas Exploration Week 3: Petroleum EngineeringWeek 3: Petroleum Engineering

The Course OutlineThe Course Outline

Week 4: ‘Vagabond Group’ proposes 2 prospectsWeek 4: ‘Vagabond Group’ proposes 2 prospects Week 5: ‘Vagabond Group’ plans productionWeek 5: ‘Vagabond Group’ plans production Week 6: the Payout?!Week 6: the Payout?!

The Basics:The Basics:

The Adventure:The Adventure:

A black-gold millionaire or dry hole hobo?A black-gold millionaire or dry hole hobo?

Oil & Gas ExplorationOil & Gas Exploration

$1,000,000$1,000,000

Oil & Gas ExplorationOil & Gas Exploration Requirements for success

- Requirements for success- Requirements for success - Exploration processes- Exploration processes1) Source1) Source

2) Reservoir2) Reservoir3) Migration Path 3) Migration Path 4) Trap4) Trap

- 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 path

surfacesurface

reservoir rock (sandstone)

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)

Requirements for success

source rock (shale)

migration path

the oil & gas escapes!without a TRAP . . .

migration path

reservoir rock (sandstone)

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

Compressional forces can cause rock layers to BEND & FOLD . . . .

AnticlineAnticline

Requirements for success - TRAPS

sandstone

shale

impermeablepossible oil/gas trap

oil/gas

Thrust FaultThrust Fault

Requirements for success - TRAPSCompressional forces can cause rock layers to FRACTURE . . . .

possible oil/gas traps

impermeable fault plane

sandstoneshale

impermeableoil/gas

oil/gas

NOTNOT

Extensional forces can cause rock layers to STRETCH & FRACTURE . . . .

Normal FaultNormal Fault

Requirements for success - TRAPS

possible oil/gas trap

impermeable fault plane

sandstone

shale

impermeableoil/gas

Possible oil/gas traps

Requirements for success - TRAPSIntrusions into layered rocks . . .

Salt DomeSalt Dome

shale

sandstone

salt layer

oil/gas

Requirements for success - TRAPSRock Properties within a rock layer can be different . . . .

Facies ChangeFacies Change

Imbedded in sedimentary rock layers

possible oil/gas trap

former river channel

Exploration processesOil ExplorationOil Exploration - Requirements for success- Requirements for success

1) Source1) Source 2) Reservoir2) Reservoir

3) Migration Path 3) Migration Path 4) Trap4) Trap

- Exploration processes- Exploration processes- Geology- Geology- Geophysics- Geophysics- ‘Land’ work- ‘Land’ work

Exploration processesExploration processes

Exploration processes

GeophysicsGeology

Land Work Engineering

?What’s the difference?

Exploration processesfrom last week . . .

GeophysicsGeology

What’s the difference?

‘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

Brunton compass

GeoscienceGeoscience

. . . uses physics and mathematics to evaluate the internal structure of earth

hand lens

THE SCIENTIFIC TOOLS - well logs - subsurface imaging - contour maps USE THE TOOLS TO FIND OIL & GAS - look for TRAPS - look for RESERVOIRS

Exploration processesScientific ToolsScientific Tools

- well logs

- subsurface imaging - contour maps

next week

Scientific ToolsScientific Tools

. . . Seismic Data

What is this wiggle trace?What is this wiggle trace?

This is a ‘Seismic Section’, similar to a X-sectionScientific ToolsScientific ToolsSubsurface ImagingSubsurface Imaging

Subsurface ImagingSubsurface Imaging

rock layers

This is a ‘Seismic Section’, similar to a X-sectionReflections from the top and bottom of rock layersReflections from the top and bottom of rock layersHow do we acquire these How do we acquire these reflections?reflections?

What is this wiggle trace?What is this wiggle trace?

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

velocitydepth

?

source receiver

surface

rock layers

Seismic Trace

The Seismic Trace

The Seismic Tracethe 2-D Seismic Line

receivers energysource

rock layers

Dep

th

(ft)

the 2-D Seismic Line

How do we aquire these data?

How do we aquire these data?

listening devices . . .

Acquisition – on Land

cable truck

geophones

jug hustlers

cables on

the ground

cable truck

geophones

jug hustlers

cables on

the ground

listening devices . . .

What about an energy source??

Acquisition – on Land

What about an energy source??

energy source - Vibroseis truck

cable truck

geophones

jug hustlers

cables on

the ground

Acquisition – on Land

Acquisition – on Landenergy source - Vibroseis truck

Marine Acquisition

sea floor

sea surface

Acquisition on Landlistening

devices . . .

Marine Acquisition

cable with hydrophones airgun

energy source . . . Boat

Acquisition on Landlistening

devices . . .

Marine Acquisition

cable with hydrophones airgun

energy source . . . Boat

listening devices . . .

energy source . . . Boat

Acquisition on Land

Marine AcquisitionSeismic Survey Layout – 2D

BoatBoat

Boat

BoatBoat

Seismic Survey Layout – 2D

line spacing is usually ¼ - ½ mile apart

Seismic Survey Layout – 2D

line spacing is usually ¼ - ½ mile apart

Grid of 2-D Seismic Lines

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

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 LinesContour Plot from a 2-D Survey

Contour Plot from a 2-D Survey

With large spacesbetween 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???

What to do???

. . . or smaller!!

Contour Plot from a 2-D Survey

With large spacesbetween 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???

What to do???

2-D Survey

3-D Seismic Surveysversus 3-D Survey

listening devices . . .

3-D Seismic Surveys

Steering devices

listening devices . . .reels of hydrophone cables

3-D Seismic Surveys

listening devices . . .reels of hydrophone cables

3-D Seismic Surveys

listening devices . . .3-D Seismic Surveys

spread=1 mile

cable length =7 mile

boat energy source

spread=1 mile

cable length =7 mile

boat

3-D Seismic Surveys energy source: airgun array

energy source: airgun array3-D Seismic Surveys

. . . deploying an airgun

energy source: airgun array. . . deploying an airgun

What do we get from a 3-D survey?

What do we get from a 3-D survey?

3-D Seismic Surveys

What do we get from a 3-D survey?

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

It’s Now a 3-D Seismic Cube3-D Seismic Cube

How does this help

How does this help??

water layer

salt layer

reservoir layer

source rock layerpossible oil/gaspossible oil/gas

It’s Now a 3-D Seismic Cube3-D Seismic Cubegeoscience & engineering applications

2-D vs 3-D seismic acquisition in the Gulf of Mexico

No. traces

1983 1995

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 GasFinding Oil and Gas

Exploration Processes

Finding Oil and GasFinding Oil and Gas

- look for TRAPS:- anticlines

- fault traps – normal & thrust - salt domes - change in rock type (facies)

Anticlines - tilted & folded rocksAnticline

sandstone

How does this look on seismic?

Finding Oil and GasFinding Oil and Gas

shale

Possible oil/gas trap

Vertical Slice from 3-D Cube

Possible oil/gas

traps

Anticline - tilted & folded rocksFinding Oil and GasFinding Oil and Gas

- looking for TRAPS:- anticlines

- fault traps – normal & thrust - salt domes - change in rock type (facies)

Finding Oil and GasFinding Oil and Gas

FAULTS - Rock Layers that are broken

a;normal fault

sandstone

How does this look on seismic?

possible oil/gas trap

Finding Oil and GasFinding Oil and Gas

shale

2-D Seimic Linefrom shallow water

Gulf of Mexico

Normal Fault

possible oil/gas traps

Finding Oil and GasFinding Oil and Gas

numerous faults

possible oil/gas traps

possible oil/gas traps

several anticlines

numerous rock layers

Finding Oil and GasFinding Oil and Gas

- looking for TRAPS:- anticlines

- fault traps – normal & thrust - salt domes - change in rock type (facies)

Finding Oil and GasFinding Oil and Gas

FAULTS - Rock Layers that are broken

ThrustFault

Let’s look at an example . . .

Possible oil/gas traps

sandstone

Finding Oil and GasFinding Oil and Gas

shale

MounatinsFoothills

Finding OilFinding Oilexample of mountain thrust faulting. . . .

How does this look on seismic?

Finding OilFinding Oil

http://www.efieldexploration.com/edsuploads/NonSeismicMethods/Non-Seismic.pdf

possible oil/gas traps

possible oil/gas traps

Thrust Fault

- looking for TRAPS:- anticlines

- fault traps – normal & thrust - salt domes - change in rock type (facies)

Finding Oil and GasFinding Oil and Gas

Salt Dome - Intrusion into layered rocks

Salt Dome

Possible oil/gas traps

sandstone

How does this look on seismic?

Finding Oil and GasFinding Oil and Gas

shale

2-D Seismic Line from shallow water

Gulf of Mexico

Possible oil/gas traps

Salt DomeFinding Oil and GasFinding Oil and Gas

salt intrusion

salt intrusion

Some Faults Bright Spots?

possible drill Locationdrill Location

Finding Oil & GasFinding Oil & GasSalt Intrusion

possible oil/gas traps

Vertical Slice from 3-D Cube In deep water Gulf of Mexico

Oil well

possible oil reservoir

Finding OilFinding OilSalt Dome

salt

salt dome trap?

oil in these layers

- looking for TRAPS:- anticlines

- fault traps – normal & thrust - salt domes - change in rock type (facies change)

Finding Oil and GasFinding Oil and Gas

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 GasFinding Oil and Gas

3-D horizontal slicefrom Sarawak, Malaysia

From Rijks & Jauffred

Possible oil/gas

trap

River Channel

X X

Finding Oil and GasFinding Oil and Gas

- looking for TRAPS:- anticlines

- fault traps – normal & thrust - salt domes - change in rock type (facies)

Finding Oil and GasFinding Oil and Gas

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

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 GasFinding Oil and Gas

vertical slice from 3-D cubeshallow water Gulf of Mexico

Proposed wells

Can we find the bright spots?

possible oil/gas

Finding Oil and GasFinding Oil and Gas

Finding Oil and GasFinding Oil and Gas

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

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 GasFinding Oil and Gas

expanded area from a vertical slice of a 3-D cube

Can we find the flatflat spotspot?

Do we also have a brightbright spotspot?

possible oil/gas

rock layer

Finding Oil and GasFinding Oil and Gas

Finding Oil and GasFinding Oil and Gas

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

Finding Oil and GasFinding Oil and Gas3-D data River Channels

possible oil-filled river sands!

fault planes

anticlines

possible possible oil/gasoil/gas

Finding Oil and GasFinding Oil and Gas3-D data

We analyzepotential traps . . .

We project well locations into the

potential reservoir

We discover aSalt dome . . .

With a 3-D seismic cube3-D seismic cube

possible discovery!possible discovery!

Land-LeaseLand-Lease

Land-LeaseLand-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 . . . two important factors . . .

Land-LeaseLand-Lease

1) location: off-shore or on-shore1) location: off-shore or on-shoretwo important factors . . . two important factors . . .

2) ownership: public or private2) ownership: public or private

example: West Africa

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

offshore Angola offshore Angola where Rocky & I workedwhere Rocky & I worked

Most countries . . . . Most countries . . . . - protect their offshore territories - protect their offshore territories - subdivide them into ‘blocks’- subdivide them into ‘blocks’- lease exploration rightslease exploration rights in each blockin each block

offshore Angola offshore Angola where Rocky & I workedwhere Rocky & I worked

Most countries . . . . Most countries . . . . - protect their offshore territories - protect their offshore territories - subdivide them into ‘blocks’- subdivide them into ‘blocks’- lease exploration rightslease exploration rights in each blockin each block

Offshore blocks are usually different shapes

offshore Angola offshore Angola where Rocky & I workedwhere Rocky & I worked

OFFSHORE

A N G O L A

Block 17 started deep water

exploration & drilling in

Angola

A N G O L A

offshore Angola offshore Angola where Rocky & I workedwhere Rocky & I worked

Block 17 started deep water

exploration & drilling in

Angola

Most countries have public auctions for exploration rights

These are called ‘lease sales’ or

‘leasing rounds’Blocks available Blocks available in Angola’s in Angola’s

2008 Lease Round2008 Lease Round

off-shoreoff-shoreon-shore

Land-LeaseLand-Lease

1) location: off-shore or on-shore1) location: off-shore or on-shoretwo important factors . . . two important factors . . .

2) ownership: public or private2) 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!difficult and time consuming!

more about Land-Lease in

Week 4

Oil ExplorationOil Exploration - Requirements for success- Requirements for success

- - SourceSource - Reservoir- Reservoir

- Migration Path - Migration Path - Trap- Trap

- Exploration processes- Exploration processes- Geology- Geology- Geophysics- Geophysics- ‘Land’ work- ‘Land’ work

Oil ExplorationOil Exploration - Requirements for success- Requirements for success

- - SourceSource - Reservoir- Reservoir

- Migration Path - Migration Path - Trap- Trap

- Exploration processes- Exploration processes- Geology- Geology- Geophysics- Geophysics- ‘Land’ work- ‘Land’ work

Exploration processes

GeophysicsGeology

Land Work Engineering

GeophysicsGeology

Land Work Engineering

Drilling recommendations & detailed cost flow chart

Petroleum EngineeringPetroleum Engineering

Next week!Next week!

Until then . . . . visit our website:

www.vagabondgeology.com

REFERENCES

Money in the Ground, John Orban IIIPetroleum Geology, Exploration, Drilling and Production, Norman HynePitfalls in Seismic Intrepretation, Paul Tucker, Howard YorstonHalliburton/Aramco..... Mr. Frank Kelly, Mr. Mohamed ZeghlacheSchlumberger………….. . Mr. Shabbir Almed. Mr. Jack CaldwellTexaco ……………………. .. Ms Gail Kahle Butler, Mr. Tako KoningTulow Oil ………………….. Mr. Jim Brandon, Mr. Tako KoningWestern Geco Corp…. . Mr. Robin Wrigley. Mr. Bruce Clulow

Geology Rocks!Geology Rocks!