61

Spectrum’s new-look quarterly news round-up

2nd Quarter 2013

newsletterMULTI-CLIENT SEISMIC IMAGING

Seamless Seismic

Also in this edition...•Potiguar survey completed offshore Brazil•New Brazil/Uruguay Pelotas Basin surveys•Lebanon 3D seismic program extended

•South Africa seismic program complete•Record spending in Brazil license round•Spectrum moves Perth office

A new tool for exploration offshore Norway

Seamless Seismic:A Unique Norwegian 3D Seismic DatabaseIn February 2013 Spectrum launched the latest addition to its global seismic data library: Seamless Seismic. Seamless establishes a significant footprint for Spectrum on the Norwegian Continental Shelf adding 3D seismic data cubes covering approximately 125,000 square kilometers of the Norwegian Continental Shelf (NCS) and more than 80,000 kilometers of merged and matched 2D data in the Barents Sea. The launch of this product followed Spectrum’s acquisition of the Norwegian companies Carmot Seismic AS and Carmot Processing AS. Seamless Seismic is created through the utilisation of a high quality 3D merge process and applies this to the public domain 3D data. The process includes a careful evaluation of the quality of the input surveys and a comprehensive processing flow resulting in uniform and seamless 3D volumes. These cubes are offered for sale to oil and gas companies including updates as new surveys become available and a service for clients to merge their proprietary surveys. In benchmark tests oil companies prefer the quality of the data processed through this 2nd generation merge process developed by Carmot Seismic. “The vast amount of 3D data acquired by the industry on the NCS over the past 3 decades is one of the most valuable assets in the Petroleum National Data Set and

Example of 2D section through 6 merged 3D surveys.

Map of Seamless Seismic coverage including examples of the data

has contributed greatly to the exploration success in mature areas offshore Norway over the past few years.” commented Spectrum CEO Rune Eng, “Spectrum recognizes the high quality of the 3D cube compilations processed by Carmot and we are pleased to be able to offer these products and derivatives of it to the O&G companies through the Spectrum organization. The Carmot products will be a valuable tool/platform in Spectrum’s growth plan in Norway.” Following this acquisition Spectrum will offer 3D cubes covering approximately 60,000 sq. km in the North Sea, approximately 50,000 sq. km in Mid-Norway and approximately 17,000 sq. km in the Barents Sea. Velocity cubes covering these three areas are also available. The Seamless Seismic data is continually updated with newer released surveys. For a new survey to be merged it must either give new coverage or better quality. Experience has told us that newer surveys don’t always give better quality. Non-public 3D and 2D data may be included if the customer has the rights to use it. We have created a flexible process to merge additional seismic data. For more information on Seamless Seismic data or the merge process, please visit out dedicated web pages at: www.spectrumasa.com/seamless

KEYSpectrum 2D data librarySeamless Seismic 3D VolumeSeamless Seismic 2D Grid

+47 9018 3258seamless@spectrumasa.comwww.spectrumasa.com/seamless

New Surveys Offshore Uruguay and Brazil Increase Pelotas CoverageSpectrum has completed acquisition of 7,500 km of 2D seismic data in the Pelotas Basin, to complement our extensive 2D library in Uruguay. The Pelotas data has been acquired with 12,000 m offsets and 13 second records to provide an optimal image of the deep basement and source rock section.

The processing sequence will include both SRME and Radon demultiple steps prior to PSTM and PSDM. PSTM

stacks for Pelotas will be available in July, 2013 and PSDM stacks will be available in October, 2013.

Following the completion of this survey, Spectrum has now commenced a new MC 2D survey in the Pelotas basin in Uruguay. The survey is planned for 4,000 km, partly over held acreage and partly over open, ultra deep water acreage in the Oriental del Plata basin, in anticipation of the third licensing round in Uruguay, expected to be held in 2015. The survey is supported by industry funding. The seismic data is being acquired by the Seabird vessel Hawk Explorer and the data will be processed at Spectrum’s processing center in Houston, with the final products scheduled for delivery in late 2013.

Both surveys will tie existing seismic data held by Spectrum offshore Uruguay with full fold.

Spectrum announced today that it has completed the processing on the final phase of its Equatorial Margin long offset 2D campaign for Round 11 offshore Brazil. The data for the 4,133 kilometer Potiguar Basin survey is complete and available for immediate use to evaluate the six blocks being offered in the Potiguar Basin for Round 11. With the completion of the Potiguar Survey, Spectrum now has in excess of 38,000 kilometers of new long offset 2D data available to assist industry in evaluation of the blocks on offer for round 11 offshore Brazil.

Potiguar survey offshore Brazil completed

Example seismic section from the Potiguar survey

Example seismic section from the Potiguar survey

Spectrum Extends Lebanon 3D Multi-Client Seismic Coverage

Spectrum has announced the completion of another Multi-Client 3D survey in the Levantine Basin offshore Lebanon. This new survey covers 2,296 square kilometers and acquisition was performed by Polarcus using its 12-streamer vessel ‘Adira’. The survey covers both the northern part of the Levantine Basin and the basin margins and is located directly North of Spectrum’s recent 3,052 square kilometer Multi-Client 3D survey that was acquired last year. New survey lines fall within licensing blocks 1, 3, 5 and 6 of the first Lebanese offshore licensing round as announced by the Lebanese government in the official round opening on April 30. A fast-track product is currently being made available for delivery to clients by end of June 2013. The final

processed product will be available during August, well in time before the closing of the Lebanese 1st licensing round in November 2013. Successful interpretation of the existing 3D data acquired by Spectrum in 2012 has triggered the execution of this further acquisition to the north of the original survey. The 2012 data, now available to license, indicates that these areas offshore Lebanon have a high likelihood for generation and trapping of thermogenic hydrocarbons. It also indicates large, simple structures with a compelling reservoir case, suggesting that exploration drilling should provide good results.

Spectrum 3d data offshore LebanonLEB3D-12 3,052 sq km

• Acquired 2012 by Dolphin & Fugro• 12 / 8 streamers, length ~7km• 9.5 sec record length @ 2ms sample rate• Deliverables include stacks, gathers, near/mid/far angle stacks

and velocity cube

LEB3D-13 2,296 sq km

• Acquired 2013 by Polarcus• 12 streamers, cable length 7.5 km• 9.5 sec record length @ 2ms sample rate• Deliverables include stacks, gathers, near/mid/far angle stacks

and velocity cube

SyriaSyria

LebanonLebanon

CyprusCyprus

IsraelIsrael

JordanJordan

Al Biqa'Al Biqa'

HazafonHazafon

As Suwayda'As Suwayda'

SaydaSayda

Ash ShamalAsh Shamal

Jabal LubnanJabal Lubnan

LimassolLimassol

LarnacaLarnaca

FarmagustaFarmagusta

HefaHefa

An NabatiyahAn Nabatiyah

BayrutBayrut

DimashqDimashq

HimsHims

Block FTPAO

Block GTPAO

Block 02ENI SPA

Block 09ENI SPA

Block 03ENI SPA

Block ETPAO

Block 12NOBLE EN

Gal (202)RATIO

Block BTPAO

Lela (372)NAMMAX OG

Amit (350)NOBLE MD

Hanna (351)NOBLE MD

Alon A (364)NOBLE MD

Alon E (368)NOBLE MD

Alon B (365)NOBLE MD

Alon D (367)NOBLE MDAlon C (366)

NOBLE MD

Ruth A (358)NOBLE MD

David (352)NOBLE MD

Ruth D (361)NOBLE MD

Rachel (349)NOBLE MD

Ruth B (359)NOBLE MD

Ruth C (360)NOBLE MD

Ishai (370)NAMMAX OG

Yahav (373)NAMMAX OG

Aditya (371)NAMMAX OG

Block CTPAO

Yoad (374)NAMMAX OG

Alon F (369)NOBLE MD

Tamar I/12NOBLE MD

Dalit I/13NOBLE MD

Eran (353)NOBLE MD

Yam Hadera (383)MODIIN

Offshore Block I

Offshore Block II

Offshore Block III

37°0'0"E

37°0'0"E

36°0'0"E

36°0'0"E

35°0'0"E

35°0'0"E

34°0'0"E

34°0'0"E

33°0'0"E

33°0'0"E

35°0

'0"N

35°0

'0"N

34°0

'0"N

34°0

'0"N

33°0

'0"N

33°0

'0"N

Map showing Spectrum's 2D surveys offshore, Lebanon. Datum: WGS 84Projection: UTM 36NDate: 24 May 2013

±0 10 20 30 405

Km

1:606,453

Spectrum's 2D and 3D surveys offshore Lebanon

LEBANON

LegendSpectrum Lebanon 3D 2013 area (p698)

Spectrum's LEB3D-12 survey 3051.88sqkm

Leb02 Repro 2012 Approx 2,000 km

East Med 2000 PSTM Repro 2011

East Med 1975 reprocessed 1999

Syria 2D 2005 Repro 2011 Approx: 4,900 km

Lebanese Offshore Boundary

Licenced_AreasCategory:

Open / (other)

Contract

Spectrum 2d data offshore LebanonEMED-00 12,303 km

• Reprocessed in 2011 by Spectrum• 7.2 km cable length; 12 sec record length• Regional 2D survey, ties offshore Cyprus, Syria and Lebanon• Final PSTM stacks, offset stacks, PSTM gathers, angle stacks,

final migration velocities, PSDM (2007) stacks only

LEB-02 2,000 km

• Reprocessed in 2012 by Spectrum• 6 km cable length; 9 sec data length• 2D survey extending along the near-shore off Lebanon• Final PSTM stacks, offset stacks, PSTM gathers, angle stacks,

final migration velocities

Map of Spectrum’s 2D & 3D seismic offshore Lebanon

South Africa Survey Completed Following ExtensionSpectrum has completed the latest phase of its extensive 2D Multi-Client campaign in South West Africa over the South Africa Orange basin. Originally planned to cover 9,000 km, the survey was extended to 10,500 km following strong client demand for the additional coverage. The program ties in with seismic data held by Spectrum over the Namibia Orange Basin, acquired in 2012.

The seismic data is currently being processed at Spectrum’s seismic imaging center in the UK, with the final products scheduled for delivery at the end of mid-Q3 2013. The survey is supported by industry funding.

Many geological experts agree that there is a general underestimation of the oil and gas potential offshore South West Africa. This potential is now finally being revealed through the use of new exploration technologies which are rejuvenating this margin. Abundant oil seeps, basin model studies and high resolution 2013 seismic underpin excellent prospects for exploration drilling campaigns.

In neighbouring Namibia the first offshore exploration well, Kudu 9A-1, was drilled in the Orange Basin and discovered gas between 1.3 and 3.0 TCF in Lower Cretaceous sandstones intercalated with volcanic layers. The Orange basin hydrocarbon discoveries have primarily been gas, leading to the perception that the region is primarily gas prone. However previous studies have proposed an oil case for these basins. A number of oil shows/indications in wells imply there is a working oil prone hydrocarbon system present in the shallow water areas and can be extrapolated into the deepwater.

NamibiaNamibia

AngolaAngola

South AfricaSouth Africa

BotswanaBotswana

Northern CapeNorthern Cape

CuneneCunene

Western CapeWestern Cape

Cuando CubangoCuando Cubango

KgalagadiKgalagadi

OwamboOwambo

KaokolandKaokolandKavangoKavango

HuilaHuila

DamaralandDamaraland

Hereroland OosHereroland Oos

NgamilandNgamilandGrootfonteinGrootfontein

NamalandNamaland

BoesmanlandBoesmanland

Hereroland WesHereroland Wes

MoxicoMoxico

Eastern CapeEastern Cape

Block 5/6ANADARKO

060TCPNEW AGE

Block 1CAIRN IN

Block 3A/4A TCPPETROSA

Outeniqua South AreaTOTAL

Orange Deepwater AreaSHELL SAU Block 3A/4A

BHP GB

Block 3B/4BBHP GB

Block 07ANADARKO

Block 1810GRISHAM

Block 2213ECO OG

Block 2514LEKOIL

Block 2614UNIMAG

Central Orange BasinSUNGU PT

Block 2715AFRICAN IN

Block 2713KUNENE EN

Block 2613COWAN PET

Blocks 2013B, 2014B, 2114ECO OG

West BredasdorpEXXONMOBIL

Block 1711ENERGULF

Block 2913BGRISHAM

Blocks 2313A&B, 2413AMAUREL PR

Blocks 2312A/B, 2412A/BENIGMA OG

Blocks 2512A, 2513, 2612ASERICA EN

Blocks 2012B, 2112A, 2113BPCL

Block 1710ALPHAPETRO

Blocks 2913A, 2914BSIGNET PT

Blocks 2815, 2816 and 2915ORANGE PT

055TCPSILV WA EN

Blocks 1913B, 2013ACSG EN

Blocks 2011B, 2111AORANTO

Blocks 1910B, 2010AJUPITER PT

Blocks 2111B, 2211AECO OG

Blocks 2112B, 2212AHRT WA

Block 13ALROSA

Kudu IIITULLOW

Block 2CANADARKO

Block 2CFOREST INT

Blocks 1910A,1911A,1912B,2011AROPAT

Block 1811AENIGMA OG

Block 1811BKAYUCO

Blocks 1910A, 1911, 2011AREPSOL

Block 2012AECO OG

Block 2010BORANTO

Block 2113ANABIRM EN

Block 2BTHOMBO PT

Block 2212BMAUREL PR

Block 12ALROSA

Block 2813BREGALIS PT

Block 2714APETROBRAS

Block 2AFOREST INT

Block 2612AAMIS EN

Blocks 2412Ba , 2413BNAMCOR

OK Energy 1 TCPOK ENERGY

F-E Prospect AreaPETROSA

20°0'0"E

20°0'0"E

15°0'0"E

15°0'0"E

10°0'0"E

10°0'0"E

5°0'0"E

5°0'0"E

15°0

'0"S

20°0

'0"S

20°0

'0"S

25°0

'0"S 25

°0'0"

S

30°0

'0"S 30

°0'0"

S

35°0

'0"S

35°0

'0"S

A ma to show Spectrum's multi-client 2D seismic surveys offshore Namibia and South Africa. Datum: WGS 84UTM: 33SDate: 30 May 2013Map ID: SA3005

±0 90 180 270 36045

Km

1:3,500,000

Spectrum's multi-client 2D in Namibia and South Africa

Spectrum's multi-client 2D seismic surveys offshore Namibia and South Africa

LegendSouth Africa SPOB12 v23 10,490 km

Namibia 2012 reprocessing project Approx: 4,380km

Namibia EC 89 2D Approx: 4,100 km

Namibia GNA 97 Approx: 1,200 km

Namibia N2R93 Spectrum TGS/Shared Ownership

Namibia NAM 92 Approx: 2,600 km

Namibia RON 97 Approx: 2,900 km

Namibia SCLB 12 Approx: 5,400 km

Namibia SCNL12 Approx: 1,100 km

Namibia SCOB 12 Approx: 8,100 km

Namibia SN 96 Approx: 500 km

Namibia VERNLB 06 Approx: 6,300 km

Namibia VERNOB 03 Approx: 3,500 km

Namibia VERNWB 03 Approx: 1,100 km

Namibia SCSW12 Approx: 1,400 km

AA 0

AA 0

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1000.01500.02000.02500.03000.03500.04000.04500.05000.05500.06000.06500.07000.07500.08000.08500.09000.09500.0- provxy-agc-stk-13 -

10000.010500.011000.011500.012000.012500.013000.013500.014000.014500.015000.015500.016000.016500.017000.017500.0SP:

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Above: Spectrum’s Multi-Client seismic coverage offshore SW Africa

Below: Seismic example of Line 13 from the SPOB-12 South Africa survey

Record Spending at Brazil’s 11th Oil and Gas AuctionBrazil’s 11th oil and gas auction, held Tuesday 14th May in Rio de Janeiro, raised a record R$2.8 billion (US$1.37 billion), the industry’s regulatory agency said, with Petrobras winning the most blocks, and oil giants, BP, Total, Chevron and ExxonMobil also gaining rights to explore new areas.

The result exceeded the goal of R$2 billion (US$980 million) set by Brazil’s National Petroleum Agency (ANP) president, Magda Chambriard. “We are extremely pleased with the results, which surpassed all expectations,” Chambriard reportedly said. “142 of 289 blocks offered were auctioned, which will ensure minimal investments in the exploration phase of R$7 billion (US$3.43 billion) – in this case a premium of 628 percent over the minimum stipulated by the agency. All records of previous rounds were broken.”

The hotly anticipated bidding round – Brazil’s first for five years – offered blocks in Brazil’s equatorial margin. Although there is no guarantee that oil or gas will be produced from these blocks, there is excitement about the region, as it is geographically similar to equatorial areas of Africa that have proved fruitful.

Of the 289 blocks on offer, 142 were sold, or 100,300 km2 of 155,800 km2 offered, with oil companies offering as much as 40 times the minimum bid required.

A total of 39 companies from twelve countries participated, of which thirty won blocks. Out of these thirty winners, twelve were domestic companies and eighteen foreign, including two firms from the United States (Chevron and ExxonMobil), three British firms, four Canadian and one Norwegian. Petrobras bought, either on its own or in partnerships, rights to 34 of the 289 blocks in the Foz do Amazonas, Espírito Santo, Parnaíba and Barreirinhas Basins, for R$539.9 million (US$264.71 million).

BG Group paid R$415.5 million (US$203.72 million) for ten blocks and OGX, the oil and gas arm of Eike Batista’s EBX conglomerate, paid R$376 million (US$184.35 million) for thirteen. OGX’s substantial outlay was a surprise to many observers, as the company has been struggling financially since its only producing well, in the Turbarão Azul field in the Campos Basin, generated disappointing results last year. France’s Total won ten blocks for R$371.9 million (US$182.34 million), and BP committed R$261.3 million (US$128.11 million) for eight. The winners will have five to eight years to develop their projects and 30 years to explore their fields, according to ANP.

Brazil’s pre-salt region, which is thought to hold as much as 35 billion barrels of recoverable oil, will be auctioned in a separate November auction. A third bidding round will be held in December for unconventional gas deposits like shale.

Source: The Rio Times

New Perth Office for SpectrumOn 1st June Spectrum’s Australian division moved across town to new office facilities in the heart of Perth’s central business district. The contact details for this office, including a new switchboard phone number, can be found below:

105 St Georges TerracePerthWA 6000Australia

Tel: +61 8 9322 3700Email: mc-au@spectrumasa.com

United KingdomSpectrum Geo Ltd.+44 1483 730201 mc-uk@spectrumasa.com

United StatesSpectrum Geo Inc.+1 281 647 0602 mc-us@spectrumasa.com

SingaporeSpectrum (Singapore)+65 6827 9773mc-asia@spectrumasa.com

AustraliaSpectrum ASB Pty Ltd.+61 8 9322 3700mc-au@spectrumasa.com

www.spectrumasa.com

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