CONFIDENTIAL PROPERTY OF TALUS RESOURCES
Transcript of CONFIDENTIAL PROPERTY OF TALUS RESOURCES
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• The earth’s inner core produces an unlimited amount of
gamma radiation.
• Radioactive decay creates gamma radiation that rises to
the surface and produces the planet’s heat.
• TERA uses the earth’s natural core radiation to decode
patterns to identify commercial hydrocarbon deposits
from non-commercial deposits.
• Gamma radiation emanating from the earth’s core
behaves differently in oil and gas saturated rock than
non-saturated rock.
• The greater the degree of change, the greater the
hydrocarbon charge, and thus higher the rate of flow,
given adequate permeability.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• Radiation levels are not static or
constant, and frequently vary area
by area.
• Before surveying occurs, it is first
necessary to establish the
background radiation level. This is
best obtained by identifying the edges
in an existing field.
• The area immediately outside of
commercial production is
composed of rock with little or
no hydrocarbons, and is used to
determine background
radiation level.
• Once this benchmark is established
new areas of commercial production
can be identified.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
Although inferior to TERA - Radiometrics is well documented in
identifying hydrocarbon deposits by detecting changes in the
background radiation levels.
Radiometrics has the following primary drawbacks:
1. Lacks the detector capacity sensitivity necessary to differentiate
commercial from non-commercial deposits.
2. Used in airborne reconnaissance survey services, it flies too high
and fast to obtain a high level of detail. They also tend to fly wide
survey patterns in miles and not feet. Wide surveys that don’t
form a grid produce data inadequate for 3-D visualization
programs.
3. Airborne reconnaissance applications which combine
Radiometrics with Electromagnetics often compromise the quality
of a single survey method.
4. Only the biggest fields within unexplored basins can be detected.
However, most mature basins are dominated by structures that
have already been identified with seismic and drilled.
5. Cannot precisely determine field boundaries, depletion patterns,
and bypassed reserves in existing fields.
6. Lacks TERA’s proprietary software and 40 years experience. OIL FIELDS
RESERVOIR ROCK
SOURCE ROCK
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• Seismic imaging can identify structures which could contain commercial quantities of oil and gas, but cannot define
“what” they contain.
• However, TERA can not only tell where oil and gas is, but can determine its size, composition, and frequently the
reservoir’s rate of flow.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
9
OIL FIELDS
RESERVOIR ROCK
SOURCE ROCK
• Alterations in the
Gama emissions
patterns created by
the contact with
hydrocarbon deposits
is captured by TERA
• Flying low and slow in
established trends,
airborne TERA can
efficiently survey a
large area with a high
degree of precision.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
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COUNTS
• Precision GPS combined with a reading
every second produces detailed survey
lines.
• Ground TERA travels at approximately 2.2
meters per second therefore, each reading
can be accurate to less than 3 meters.
• The length and width of commercial
production (reserves) can be calculated
with a high degree of precision.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
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DISTANCE MILES
COUNTS
COUNTS FALL BY 500 OR
MORE INDICATES
COMMERCIAL PRODUCTION
• Water drives reservoirs behave very
differently than solution gas drive
reservoirs.
• In a water drive counts move opposite
from a solution gas drive reservoir.
• Assuming oil saturations are
comparable, counts would fall by 500
or more in a commercial oil field.
COUNTS
DRAMATICALLY RISE
INDICATES EDGE OF
COMMERCIAL
PRODUCTION
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
3400
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DISTANCE MILES
COUNTS
• Natural gas reservoirs behave
remarkably differently than either
solution gas drive or water reservoirs.
• When encountered, natural gas is
revealed when counts dramatically rise
above the background radiation level,
frequently 2200 counts higher. COUNTS
DRAMATICALLY RISE
INDICATES EDGE OF
COMMERCIAL
PRODUCTION
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
The survey grid below shows a series
of color coded survey lines over the
Calvert Oil Field. The areas of high
oil saturations are yellow to red, and
low saturations blue to green. The
real time mapping provides key
information how to prioritize addition
surveys.
Once a sufficient number of surveys
are obtained the data can be
imported into a 3-D mapping
program. Visualization in 3-D shows
the orientation of faults and the oil
that banks up against the faults
(traps). In existing fields, oil drainage
patterns and depletion can also be
determined.
Fault Blocks which contain free gas
can be distinguished from those that
contain solution gas drive oil.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• All published reports support the use of Radiometrics to identify hydrocarbon deposits.
• Despite its poor performance Radiometrics is still used as a commercial service.
• Radiometrics is inferior compared to TERA.
TERA Pros:
In Existing Fields
• Is highly accurate in finding: field
boundaries, oil/water contact, areas
of bypassed reserves, and depletion
patterns from reservoir drainage.
• Can locate low displacement faults
that trap oil.
• Frequently finds more than twice a
field’s estimated remaining
reserves, and provides operators
with invaluable details from which
intelligent financial decisions can be
made.
In New Fields
• Can determine commercial from
non-commercial production.
• Can accurately determine: field
size, reservoir drive mechanism,
and estimate oil and/or gas flow.
• Can make seismic imaging far more
valuable and less expensive by
limiting seismic surveys to targeted
smaller structures and only areas of
commercial production.
Radiometrics Pros:
• Can sometimes detect the
presence of oil and gas.
• Larger detector capacity currently
employed with some systems has
helped improve capability.
• Can sometimes determine low
displacement faults that trap oil.
Radiometrics Cons:
Lacks ability to:
• Accurately determine field
boundaries.
• Accurately differentiate oil from
gas.
• Accurately distinguish commercial
from non-commercial deposits.
• Accurately determine reservoir
drive mechanism.
• Determine bypassed reserves
• Produce accurate consistent
readings resulting in frequent false
positives.
False readings result in dry holes.
TERA Cons:
• Cannot be used: on cloudy days,
in high ground moisture, limited
to specific times of the day, and
areas where radioactive
potassium fertilizer is spread.
• Used alone, cannot determine
formation depth, unless
supported by geology and other
methods, combined with digitally
correlated TERA on nearby
fields.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• The present system is limited to
ground reconnaissance using a
single NaI (sodium iodide)
detector mounted on the back of
an SUV or pickup truck.
• With funding obtained, TERA is
designed to be used with multiple
(4) detectors from a helicopter, or
ROV.
• Both the current ground and near
term airborne systems can
determine field boundaries, size,
reservoir drive, and approximate
rate of flow (assuming good
permeability), but TERA
reconnaissance alone cannot
precisely determine depth.
• This limitation can be largely
overcome by working in
established trends where nearby
reservoirs can be compared with
TERA both digitally and
geologically.
• Other methods including stationery
TERA and Electromagnetics can
be employed to determine depth.
• After 40 years of service and
development Talus has learned
through extensive field
observations the best way to use
TERA in order to ensure data
accuracy.
• For example, it cannot be used
during certain times of the day.
• Also, ground moisture and
barometric pressure must be
within an acceptable range.
Knowledge essential to the use of
TERA can be obtained only from
years of working experience.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
In West Texas near Lubbock TERA surveys were later performed on an prospect developed
with Radiometrics that resulted in the drilling of three dry holes.
TERA showed that the dry holes were drilled in areas with very low oil saturations and that
Radiometrics had produced false and misleading information.
In this case, misleading Radiometrics survey data caused the loss of more than $9 million
invested over 10 year period.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• GERT conducted
a blind test on 12
oil and gas survey
technologies
covering 18
actual drilling
prospects from
Permian Basin
Companies.
• 1st generation
stationery analog
ERA technology
was the clear
winner.
ERA PREDICTED 15/18 (83%) OVERALL ACCURACY (CORRECT) AND 2/3 (67%) FOR OIL DISCOVERY AND 13/15 (87%) SUCCESS PREDICTING MARGINAL OR DRY WELLS.
GERT PROJECT RESULTS COUNTING MARGINAL WELLS AS DRY HOLES
WELL RESULT SOIL GAS
GAS
SENSING
RADAR
MICRO-
MAGNETICS
RESIDULA
MICRO-
MAGNETICS
SPECIAL
MAGNETIC
SUSEPTION
RADIUM
SULPHATEERA
GAMMA
RAY
AUIDIO
MAGNETO
-TELLUR.
LANDSET
IMAGERY
MN/K
RATIO
FLOURES
ENCE
ENSERCH DRY I I C C C C C C C C C C
GUNN DRY C C C C N I C C C I C C
HUNT 1 OIL I I C C N I C I N C C C
HUNT 2 OIL I I I I N N C I N C N N
IP-GCO 1 DRY I I C C C C C C C C C I
IP-GCO 2 DRY I I C C N C C C C C N N
IP-GCO 3 DRY I C C C N C C C C C N N
IP-GCO 4 DRY N C C I N C C C C C N N
LANDRETH 1 MARGINAL I C C I I C C C N C I I
LANDRETH 2 DRY I C C C N C C C C C I C
MAXUS DRY C I I C I I C C N C I C
MERIDIAN MARGINAL I I I I C C C C C I I C
MOBIL DRY I I I I I N C C C C N N
PRIMARY
FUELSMARGINAL C C C C N C C C C C C C
SANDIA DRY I C C C N C I I I C C I
UNION
TEXASDRY C C I I C C C I I I C C
HILLIN MARGINAL I I C C N C I C N I I C
YOUNG OIL I I I N I I I I N I C C
CORRECT/T
OTAL3/18 4/17 8/18 12/18 11/17 4/8 12/16 15/18 13/18 10/12 13/18 8/13 10/13
ACCURACY 16.7% 23.5% 44.4% 66.7% 64.7% 50.0% 75.0% 83.3% 72.2% 83.3% 72.2% 61.5% 76.9%
DRILL
SUCCESS3/18 0/10 0/7 1/5 1/6 0/3 0/2 2/4 0/2 0/2 2/6 2/6 2/5
ACCURACY 16.7% 0.0% 0.0% 20.0% 16.7% 0.0% 0.0% 50.0% 0.0% 0.0% 33.3% 33.3% 40.0%
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• TERA, Talus Resources proprietary survey technology, can provide detailed information in existing
fields and new undiscovered fields.
• Other survey systems including Radiometrics that use passive gamma radiation are inferior in
many ways and often cause the drilling of dry holes.
• TERA is the result of more than 40 years of investment proven through more than
35 years of service.
• The older analog ERA system proved 83% accurate in predicting commercial production in wildcat
drilling.
• TERA works best in existing fields to find bypassed reserves, low displacement faults that can trap
oil, and areas of high saturation (sweet spots). This information cannot be obtained with any other
known system.
• A detailed 3-D TERA survey combined with existing wells and structure will reveal extremely
valuable information enabling operating companies and lenders to fully understand the value of
their holdings.
CONFIDENTIAL PROPERTY OF TALUS RESOURCES
• Identification of Earth Material by Induced Gamma-Ray Spectral Analysis (SPE 1957).
• Radiometrics for the Petroleum Explorationist (AAPG Bulletin 1985).
• “How 12 geochemical methods fared in GERT project the Permian Basin”
(Gary G. Calhoun, Independent Geologist, Midland, Texas, Oil and Gas Journal, May 13, 1991)
Geochemical Evaluation Research Team, Dept. of Energy sponsored analysis.
• “Statistical, economic analysis given for surface exploration projects”
(Brian F. Towler, University of Wyoming, Laramie, Wyoming, Oil and Gas Journal, May 13, 1993) Critical and positive
review of the GERT project.
Numerous letters of endorsement to Energy Exploration, Inc. concerning success with the ERA tools, several of examples
of these follow:
• “I have come to one definite conclusion I would never drill a well that did not have a positive ERA indication”
Jack J. Reynolds, Petroleum Consultant
• “Since you were contracted full time with Amerada Hess, I could not avail Myself of your technology, but became very
impressed with the accuracy of your exploratory analysis of the areas you surveyed for them”.
Don H. Ford, Don H. Ford & Associates.