GEO ExPro V7i2 Full PDF

VOL. 7, NO.
2 – 2010
GEOSCIENCE & TECHNOLOGY EXPLAINED
Finally - An answer for getting reservoir seismic
GEO EXPRO VOL. 7, NO. 2 – 2010

OVER THE RESERVOIR! geoexpro.com
Geotourism: Cornwall, UK
Bakken Shale:
Source Rock
Becomes Reservoir
Seismic foldout:
Australia’s Bight Basin
• 4C/4D Node Seismic
• ANGOLA
• GoM
• NIGERIA
“Coming Soon to an Oilfield Near You!”
sb_res_ad_210x280mm.indd 1 30/9/09 12:19:15
GEOLOGY GEOPHYSICS RESERVOIR MANAGEMENT

Previous issues: www.geoexpro.com
Illustration: IHS Energy

GEOSCIENCE & TECHNOLOGY EXPLAINED
columns
128
Eyre
Jerboa 1
5 Editorial
25
24
8 ExPro Update
New Insights into
128° 130° 132° Ceduna 134°
16 A Minute to Read
Apollo 1
S
AU
Madura Shelf

NT
POLDA BASIN
32 Recent Advances in Technology 20

Eyre Sub-basin Potoroo 1 WA
GeminiS
Jerboa 1 Columbia 1
25DR17
S09-1 S09-3 Mercury 1
WA
SA
24DR16
44 History of oil: Sarawak

Gnarlyknots 1A
Where well symbol info
S09-2 31 March 2009. Where
Duntroon Sub-basin
S09-4
The first regionalThe

seismicBakken Shaleto collect- data
Source Rock Becomes Reservoir
Rock
Courtesy: Geoscience Australia

S09-5
program designed through the crustal section in S09-6 Ceduna Sub-basin
50 Geotourism: Cornwall Underlying

the Ceduna Sub-basin of the Bight an
Basinarea approximately
is providing the
key information and the size of France, the Bakken
first seismic Formation NT
BIGHT BASIN
Platypus
Gre
images of untested petroleum systems.

56 Energy Statistics: Provided by Rystad Energy oil reservoir keeps expanding into what has become North America’s hottest
QLD
WA
SA Recherche Sub-basin
NSW
VIC 0 200 km
See full story starting on page 39.

onshore oil play.
TAS
58 Global Exploration Update

Where well symbol information is sourced from publicly available "open file" data, it has been provided by Geoscience Australia from Well Completion Reports. These symbols were generated from o
31 March 2009. Where well symbol information is not publicly available from titleholders' data, the information has been extracted from other public sources.
2009 Offshore Petroleum

Acreage Release Area
Madura Shelf Fi
Basement involved fault
Bight Basin
60 Q&A
Scheduled area boundary (OPGGSA 2006)
Polda Basin Limit of Coastal Waters
Petroleum exploration well - Dry hole
Ceduna Sub-basin Petroleum exploration well - Gas show
Potential source rocks
Illustration: ION
Recherche Sub-basin
62 Hot Spot
dredge sample location
Eyre and Duntroon
Sub-basins
Figure 2. Structural elements of the eastern Bight Basin showing 2009 Release Areas
64 Global Resource Management: Iraq

and wells. Locations of seismic lines used in figures are shown.
features
20 Sourcing an Oil Boom
26 Kurdistan: Safe and Secure, with Billion Barrel Prospects
36 SEISMIC FOLDOUT: Australia’s Bight Basin
39 Hidden assets in South Australia 36
Geoscience Explained: Seismic Fold-out

36 geo expro march 2010
A largely untested 15,000 m succession of Middle Jurassic to Upper Creta-
ceous sediments in the offshore Ceduna Sub-basin has turned the planned
offering of six exploration areas into a favoured frontier exploration area.
59
64
20 50
56
26
60
62
44
58
58
36
shooting seismic does not kill fish GEOSCIENCE & TECHNOLOGY EXPLAINED
www.geoexpro.com
“Sound waves from seismic data acquisition resulted in increased catches for some species and smaller catches
for others.” To me, that sounds a bit inconclusive, but it is still the main result from research done on an impor- GeoPublishing Ltd
15 Palace Place Mansion
tant fishing ground and a frontier exploration province offshore Norway during the summer of 2009.
Kensington Court
After having acquired seismic offshore Norway for almost 50 years (the very first survey was shot in 1962, London w8 5bb, u.k.
in Skagerrak), including major 2D surveys and huge 3D lay outs, a large research programme was conducted +44 20 7937 2224
last year aimed at improving the understanding of how seismic campaigns affect fish distribution and the com-
mercial fisheries. Managing Director
Net catches of Greenland halibut Tore Karlsson
(Reinhardtius hippoglossoides), a
deepwater fish found between Editor in Chief
200 and 1600 m in waters with Halfdan Carstens
temperatures from 1-4 °C, were
higher during and after seismic Contributing Editors
operations than they were before Thomas Smith
them. Line catches of Greenland [email protected]
halibut, however, declined dur-
ing seismic work, but increased Jane Whaley
afterwards. [email protected]
The research programme was undertaken in conjunction with the acquisition of a 3D survey within the highly Rasoul Sorkhabi
[email protected]
prospective Nordland VII (Vesterålen) area north of the Arctic Circle. The acquisition overlapped some of the
best traditional offshore fishing grounds in Norway.
Paul Wood
The Institute of Marine Research was given responsibility for carrying out the project, which was financed by [email protected]
the Norwegian Petroleum Directorate (NPD). According to NPD, it is one of the largest such research projects
ever conducted. Editorial enquiries
The project revealed that the sound of the air-guns affected the fisheries in the study area off Vesterålen “in GeoPublishing
7491 Trondheim, Norway
a number of ways”. These “ways” included both increased and reduced catches of individual fish species, made
+47 73 90 40 90 /+47 90 56 35 95
by different types of gear, and the fact that some species withdrew from the area, while others remained. [email protected]
The details we leave to those who are particularly interested. The overall conclusion, however, is that the www.geoexpro.com
research programme failed to prove that seismic acquisition has a devastating effect on fish and fishing, contrary
to statements often made by fishermen, and their allies in “environmentally friendly” organizations, whose main Marketing Manager
goal is to make oil and gas exploration more difficult. It is in fact no secret that the reason why Norwegian Kirsti Karlsson
+44 79 0991 5513
fishermen make a lot of noise (!) about seismic acquisition is to get compensation for reduced catchments.
[email protected]
The outcome of the USD 4 million research programme will not change this. Certainly not. Even though
the conclusions are not accepted by the fishermen. First, they ask for research, and when the results are not in Subscription
their favour, they are not willing to face the truth. GeoPublishing Ltd
+44 20 7937 2224
15 Palace Place Mansion
Kensington Court
London w8 5bb, u.k.
[email protected]
Halfdan Carstens geo expro is published bimonthly

Editor in Chief for a base subscription rate of gbp
50.- a year (6 issues).
We encourage readers to alert us to
news for possible publication and
VOL. 7, NO. 2 – 2010
THE BAKKEN SHALE to submit articles for publication.
GEOSCIENCE & T
ECHNOLOGY EXP
LAINED
It has been ten years since the Manitoba. The US Geological
reservoir seismic
first horizontal well was com- Survey (USGS) recently esti- Cover Illustration:
GEO EXPRO VOL. 7, NO.
geoexpro.com
R!
Geotourism: Cornwall, UK
Drilling for oil in the Bakken Shale.
pleted in the Bakken Forma- mated the mean undiscovered
2 – 2010
Photo courtesy: Williston Economic

Bakken Shale: tion at Montana’s Elm Coulee resources to exceed 3.8 Bbo. Development
Source Rock
Becomes Reservoir Field. Thanks to research, tech- Richard Findley, the Billings,
nological advancements, and Montana independent who Geotourism photo:
• 4C/4D Node Seismic
Seismic foldout:
Australia’s Bight Basin sound geological work, this oil originated the Bakken play, Jane Whaley
• ANGOLA
• GoM
• NIGERIA
play is reversing declining area greatly underestimated the size
Layout: Skipnes Kommunikasjon
to an Oilfield Near You!” production. Bakken explora- of the discovery field and now
Print: NXT Oslo Reklamebyrå
30/9/09 12:19:15
RESERVOIR MA
NAGEMENT
tion and production has now believes the USGS “assessment
expanded from Montana into is greatly understated”. The play
GEOPHYSICS
GEOLOGY
issn 1744-8743
North Dakota and the Canadian is evolving rapidly; the story
provinces of Saskatchewan and starts on page 20.
geo expro march 2010 5

Halfdan Carstens
ExPro Update
Huge Blocks Offered in the Baffin Bay ABBREVIATIONS
New data shows the existence of large sedimentary basins offshore West Numbers
(U.S. and scientific community)
Greenland. To exploit the potential, The Government of Greenland has
M: thousand = 1 x 103
made a plan for licensing. MM: million = 1 x 106
A licensing round is now carried Disko through Nuussuaq pen- B: billion = 1 x 109
out in the Baffin Bay followed by insula to the southern part of
T: trillion = 1 x 1012
licensing rounds in the Greenland Svartenhuk peninsula. In 1996,
Sea in 2012 and 2013. a Canadian company drilled an
The deadline for submission exploration well on Nuussuaq, Liquids
of applications for the Baffin Bay which showed the existence of barrel = bbl = 159 litre
licensing round is 1 May 2010. hydrocarbons.
boe: barrels of oil equivalent
Applicants may apply for licences In 2000, a group led by Statoil
in 14 predefined blocks varying drilled a dry exploration well, bopd: barrels (bbls) of oil per day
in size between 8,000 km² and Qulleq-1, offshore central West bcpd: bbls of condensate per day
15,000 km². The total licensing Greenland. bwpd: bbls of water per day
area in Baffin Bay covers approxi- New seismic data have revealed
mately 151,000 km², equivalent to the existence of large sedimen-
25 North Sea quadrants. tary basins offshore West Green-
Gas
Exploration for hydrocarbons land. An integrated evaluation MMscfg: million ft3 gas
offshore West Greenland was of seismic, gravity, magnetic and MMscmg: million m3 gas
initiated in the beginning of the satellite data – primarily collect- GEUS, TGS-Nopec and the Tcfg: trillion cubic feet of gas
1970s, and in the following years ed trough the latest five years – Bureau of Minerals and Petro-
five exploration wells were drilled, confirms the possible existence of leum has made a comprehensive Ma: Million years ago
of which only one showed traces a very large interconnected basin GIS compilation of information
of hydrocarbons. system with petroleum deposits from the Baffin Bay region. The
In 1992 The Geological Survey along the so-called Ungava Fault study has been carried out by
LNG
of Denmark and Greenland Zone. Thus, this basin system GEUS and is based on all TGS Liquified Natural Gas (LNG) is
(GEUS) registered oil seeps on links the petroleum deposits in data and on public domain data natural gas (primarily methane)
the Disko Island in Northwest the Labrador-sea south of 60°N, and includes seismic interpreta- cooled to a temperature of
Greenland. In the following years with the collected oil seeps on tion, mapping and evaluation of
approximately -260 C. o
the seeps were recorded over a wide Disko-Nuussuaq, all the way up prospectivity, petroleum systems
BB09-10775-PROCMIG, BB08-108-PROCMIG,
22248.19 BB09-10825-PROCMIG,
BB08-1082-PROCMIG,
23957.81 24046.77
23421.11 BB09-10875-PROCMIG,
BB08-1085-PROCMIG, 24069.71
BB08-109-PROCMIG,
24069.71 24296.36
BB09-10925-PROCMIG, 24634.05
area, extending from northern - BB09-50625-PROCMIGto 71°N. - and geohazards.
SP: 16000.0 17000.0 18000.0 19000.0 20000.0
NGL
Natural gas liquids (NGL) include
propane, butane, pentane, hexane
and heptane, but not methane and
1.000 1.000
ethane.
2.000 2.000
Reserves and resources

P1 reserves:
3.000 Quantity of hydrocarbons believed
3.000
recoverable with a 90% probability

4.000 4.000
P2 reserves:
Quantity of hydrocarbons believed
5.000 recoverable with a 50% probability
5.000
P3 reserves:
6.000
Quantity of hydrocarbons believed
6.000
Illustration: TGS
recoverable with a 10% probability

7.000
Oilfield glossary:
7.000
Line running northeast-southwest across the Melville Ridge and the Kivioq Basin.
www.glossary.oilfield.slb.com

Technology Update
The World’s Deepest Exploration Well

In 2009, BP drilled what they said was “one of the deepest wells ever drilled by the
oil and gas industry”.
The well, located in Keathley 10,658 meters total measured water-depth drilling record
Canyon, approximately 400 ki- depth. by spudding a well in 3,051
lometres south east of Houston, The “world record” now meter of water in the U.S. Gulf
GOM
KOLA
was in 1,259 meters of water. The belongs to the Al Shaheen Field of Mexico. It was the first time
well found oil in multiple Lower offshore Qatar. A 2008 well in the offshore drilling indus-
Tertiary reservoirs and is consid- reached a total length of 12,289 try’s history that a drilling rig
ered to be a giant discovery with meters, while the total step-out explored for oil and natural gas
possibly several billion barrels to distance from the surface in more than 10,000 feet (3,048
be recovered (see also Hot Spot, location was 10,902 meters. In meter) of water. 1000
page 62). The well was drilled to all, the well set 10 records in- The deepest drilling ever done
10,683 meters, meaning that it cluding the longest reservoir took place on the Kola Peninsula
drilled through 9424 meters of contact (10,804 m) and the in Russia, almost next to Nikel 2000
sedimentary rocks. longest open hole (slb.com). The and the Norwegian border.
The longest holes ever drilled well was drilled in 36 days from Drilling of the Kola Superdeep
by the petroleum industry, a jackup. The well surpasses by Borehole started in 1970 and had 3000
however, are horizontal, meaning approximately 600 m the prior reached a depth of 12,262 meters
that the lower part is drilled extended-reach record of 11,680 19 years (!) later. In comparison,
parallel to the sedimentary layers m measured depth with a land the thickness of the earth’s crust 4000
within a reservoir. rig drilling at Sakhalin Island, is some 40-50 km (compare
At Wytch Farm oil field in also in 2008. seismic section offshore Austra-
southern England, BP in 1997 In 2003, Transocean Inc. lia on pp. 36-38). This well, dif- 5000
pushed drilling technology to and ChevronTexaco with the ferent from oil exploration wells,
new limits when drilling a hori- Transocean drillship Discov- was done in crystalline rocks up
zontal departure that reached erer Deep Seas set a new world to 2.7 billion years old. ©Statoil
6000
7000
8000
9000
10000
11000
12000
meters
In 2006, Statoil drilled an extended reach well – up to 85° from the vertical – from the Gullfaks field into the com-
paratively small field Gulltopp some 9 km to the west with approximately 25 million barrels of oil in reserves. With a
total length of more than 10,000m (planned vertical depth was 2,450m), it was the longest “extended reach well”
ever drilled from a fixed production platform.

Technology Update
Training based on competency

We have read all too often in Numerous studies have sought it can be dramatically accelerated if a They continue to operate as inde-
recent years about the oil and gas to understand the return on in- coach is present to provide guidance pendent companies, but for large
industry’s skills shortage. Known vestment in training. Time and and a helping hand. workscopes they come together
so familiarly as the “great crew again, it has been shown that Given these truths, every under the banner Plato Alliance
change,” our expertise shortage training based on a competency company faces the challenge of to offer the industry’s first truly
today is due mainly to the in- model provides the surest route finding the right development comprehensive and integrated
dustry’s poor or non-existent to spending training money program to suit its needs. For portfolio of training products and
recruiting in industry-periodic wisely. Competency models example, competency models do services, together with 40 years’
downturns, particularly during provide a firm baseline for as- not necessarily translate from one worth of training and development
the late 1980s. sessing skill levels and ensuring company to another. Like every expertise to create specific, cus-
The age demographics of pet- training is fit for purpose. It has other component of the training tomized solutions for their clients.
ro-technical professionals in dif- been shown that training based program, they must be fine- The full portfolio of the three
ferent operating companies vary on a competency model shortens tuned to the specific company, its companies combined include:
enormously, but three factors are time to professionalism, or time culture, and its discipline needs. • Over 500 courses and
usually present. First, the mid- to autonomy, as it is also referred The fact is that no one-size fits all. programs in all the geosciences
career range tends to be depleted to, by at least two years. The question is “how to proceed?” and petroleum engineering
everywhere. Thus, companies are Studies also point to the ad- The traditional answer for some domains taught by more than
under huge pressure to develop vantage of using a mix of learning companies, particularly the larger 300 quality instructors;
their young people faster than methods rather than relying on just operators, has been to create their • Over 80 geoscience field
they are accustomed. Second, one method such as class-room own development culture and seminars in a wide variety of
companies have been very learning. The traditional class- internal training resources. Other geological environments;
actively recruiting in recent years, room environment has its place, companies, such as the indepen- • The industry’s largest e-learning
at least until the global recession but so does e-learning, on-the-job dents, rely on outsourcing training library, including 1000 hours of
and associated oil and gas price learning, case-study learning, and providers. That said, the pressure technical learning in all geosci-
fall, and therefore the number of for disciplines such as geoscience on petro-technical professional ences and engineering domains,
young recruits requiring profes- instructional seminars in the field. expertise guarantees that E&P an overview of the entire value
sional development is larger than Finding the right combination at training remains big business and it chain of oil and gas industry,
ever before. Third, companies the right time in the development continues to grow. Recently, three and key business essentials;
cannot ignore the development cycle is what counts. of the industry’s leading training • Management programs
of personnel of any age and ex- Finally, it is recognized that providers decided to pool their covering all aspects of the oil
perience as new technology con- coaching and mentoring remains an considerable resources and offer a and gas industry including
tinually comes into play and must essential requirement in any training truly comprehensive training and challenging digital business
be learned. program. Training must develop development offering to meet the games;
So how to get the most bang for both discipline knowledge and the industry’s current needs. • Competency management
our buck when it comes to profes- experience to apply that knowledge. The three companies are design, consultation and the
sional development? Gaining experience takes time, but IHRDC, Nautilus and NExT. CMS online system.
The full value of these Plato

Alliance offerings is only realized
when these products are integrated
in customized programs based on
a firm competency model and then
tailored specifically to client needs
using the right mix of classroom
training, field seminars, blended
learning programs, learning-by-
doing and technical coaching/
mentoring. Plato Alliance com-
panies work together to build such
programs by combining their vast
resources and unrivaled experi-
Photo: Nautilus
ence. It is truly the first one-stop

shop in E&P training.
Participants on a Nautilus field course identify flow units in a Jurassic sandstone with carbonate cemented zones, an Henry Edmundson
outcrop from a nearby producing oilfield in the UK. Founder, Plato Alliance

Technology Update Jane Whaley
Choice in E&P Data Provision

“We intend changing the E&P data and information business by providing the client with choice and
an excellent, accurate and timely product,” states Dr. Nick Robinson, CEO of the new kid on the data
block, DI International.
Image: DI International
Back in 1987, Nick was one of the new service needed to be fast reader can see it immediately.
the founders of UK-based data and immediate. “We realised that “From inception, DI Inter-
provider IEDS, which was even- in today’s market, rapid access to national has been client-driven,
tually acquired by IHS, as were a accurate data is key. Our database and we work closely with our
number of other data and informa- is instantly accessible on line - customers, to refine and develop
tion companies, including Petro- there is no need to install expen- our products,” Nick says. “For
leum Information, Erico and Pet- sive software or undergo training. example, they suggested that it
roconsultants. Nick continued to Just log on, and you have access would be good to be informed
work for IHS for a few years before to a variety of information on when something new had
leaving to follow other interests in your chosen country or region.” occurred in their area of interest,
the oil industry. “Whenever I met DI International’s WEB+ even if they were not close to their
my old clients, however, they would activity report spans the full range computer at that time. We have
talk about the lack of competition of E&P data, from overviews of therefore recently introduced our
in the data business,” Nick says. exploration history and contracts, DII Scout service, which delivers
“They were not complaining about to details of exploration and ap- a summary of new information Dr Nick Robinson, a founder
quality or service, but merely the praisal wells, rig movements, pro- direct to the client’s Blackberry member of IEDS and former
Head of International Opera-
lack of choice. I talked to them duction statistics and current and or similar hand-held device. From
tions with IHS, is CEO of new
about what they wanted from a future geophysical surveys. Infor- the initial discussions with clients E&P data company DI Interna-
data provider, and in June 2008 set mation is geographically linked to the launch of the service in tional.
up DI International. There were via colour-coded maps and data January this year took two weeks,
four of us then; just 18 months can be downloaded in MS office showing how much we value our
later the company has 31 employ- formats, as well as GIS shape client feedback.”
ees, offices in seven countries – and files. Records are continually But now matter how fast and national spent its first year ac-
is still growing.” updated with data not previously attractively packaged a database cumulating data and developing
Having spoken to potential available to the industry, and new is, its main value lies in the quality contacts, so that now it believes
clients, Nick was determined that information is highlighted so the of the data it contains. DI Inter- that it can provide the most
accurate and up to date informa-
tion available through a unique
network of in-country agents
and correspondents. “Our expert
regional managers all have many
years experience monitoring and
researching E&P activity in their
area, and can provide in-depth
analysis and opinion on any new
developments,” Nick explains.
“Harnessing this expertise, and
again following client sugges-
tions, the company will soon
launch a strategic upstream man-
agement analysis service, giving
an expert political and future in-
terpretation of trends and devel-
opments in each region.”
Image: DI International
“Feedback from our clients

has been excellent on all aspects
of our service, so we hope we are
achieving our main aim of trans-
forming the E&P data business,”
says Nick Robinson. A company
Downloads include regional powerpoint maps showing a summary of key regional activity, ready to be inserted into
the client’s own presentation. aiming high.

Calendar
major events geologic time scale
From Source to Sink Quaternary
Neogene
1.8
1.8
From Depositional Systems to Sedimentary Suces- Tertiary
Cenozoic
South Atlantic starts opening
2323
sions on the Norwegian Continental Shelf
Paleogene
The Norwegian Petroleum Society gian margin has it all, with a huge
*
6565
Norwegian-Greenland Sea starts opening

hosts a three day conference on the remaining potential and a high
Alpine orogeny
sequence stratigraphy of the Nor- quality database of seismic and Cretaceous
Laramide orogeny
wegian Margin to in Stavanger in well log information available.
May 2010. This meeting follows This range of depositional
on from previous successful NPF systems and tectonic settings
events on this subject, building provides an exciting challenge for
Pangaea breakup
further on advances in our under- petroleum geologists trying to un- 145
145
Mesozoic
standing of the role of climate and derstand and predict stratigraphy Jurassic
tectonics in controlling sediment and lithological properties. The
North Sea rifting

delivery from source to sink, and initial focus of sequence stratig-
its impact on stratigraphic archi- raphy on eustasy as the
Central Atlantic starts opening

tecture and petro- U E N C E key control on deposi-
SEQ *
199
199
*The Big Five Extinction Events

leum exploration A T IG R A HY architecture has
Ptional
ST R
offshore Norway. evolved to encompass Triassic
The Norwe- tectonic, climatic
gian Continental and geomorphologic
al SysU Es toNCE controls on sediment
251
251 *
Program
margin stretches for sitionE

From Depo Scce Q tem
Gulf of Mexico rifting
Sh elf RAPHY
s on the
y Su ssion
ca. 2500 km from No rweg ian STRATIG
Sedimentar nta l
delivery and pre- Permian
Phanerozoic
Co nti ne
Phanerozoic
0
m, 4th –6th May 201
Stavanger Foru
the North Sea in the served stratal ar-

south to the Barents chitecture. The de- 299
299
Sea in the north and velopment of this
Carboniferous
includes hydrocarbon understanding and FORMATION OF PANGAEA
plays ranging from its impact on our
Devonian to Pleisto- understanding of the Norwegian
cene in age. Reservoir types vary Continental shelf is the focus of
from alluvial fans to deepwater this meeting. Special attention 359
359 *
fans, in almost every climate will be given to the integration
Devonian
Paleozoic
type from arid through humid to of both analogue studies and Paleozoic
glacial, in tectonic settings ranging processed based models with
from intramontane through com- the insights gained from the
pressional/transpressional to ex- interpretation and visualization
Variscan orogeny
tensional/ transtensional basins, of high quality subsurface case 416

416
and passive margins. The Norwe- studies. Silurian
443
443 *
Caledonian orogeny
Ordovician
STAVANGER, MAY 4-6, 2010
488
488
Cambrian
Cambrian
The Great Unconformity 542

542
Photo: Halfdan Carstens
Neoproterozoic
Neoproterozoic
Precambrian
Precambrian
While in Stavanger, take advantage of the fabulous landscape close to the city.

A Minute to Read
Seismic off the U.S East Coast New software from

Upon receiving permit approv- also actively collect data during Blueback
als, Spectrum plans to actively the survey process to aid research
pursue a comprehensive program into marine mammal populations Bridge is a Petrel plug-in which course, makes it straight-forward
to acquire seismic and other and migration patterns. expands the exploration work- to get started using the software.
geophysical data over the U.S flows in Petrel developed by Blueback Reservoir’s goal is
© Spectrum
Atlantic offshore continental shelf Blueback Reservoir. This facili- to offer a complete workflow for
and deepwater areas focusing its tates unique integration of elec- geophysicists and exploration-
activities with the knowledge tromagnetics with seismic and ists to model, visualize, inter-
gained from the reprocessed data. other subsurface data. Bridge is pret and integrate electromag-
As Spectrum says they com- developed using the same stan- netic data. With the inclusion
mitted to preserving the environ- dards for the user interface as in of EM forward modeling, you
ment, three marine mammal ob- Petrel, and intuitive menus and it is possible to model the EM
servers would be on duty during buttons make it easy for Petrel response based on resistivity un-
the seismic survey process to users to learn to use the func- derstanding of the subsurface.
ensure that the vessel’s operations tionality. Tool-tip help systems The Bridge interpretation loop
conform to governmental regula- on all Bridge windows together then sets up a workflow for com-
tions. In addition to observing op- with the Bridge Getting Started paring modeled EM data and
erations, the three man team would manual and the Bridge training measured EM data.
RMS 2010 - new release Sysdrill - new release

Paradigm™ recently released of
Emerson Process Management to-use and has all the function- bining seismic interpretations
Paradigm™ Sysdrill® 2009.1, at
has launched RMS 2010, the ality needed for generating high with the advanced modeling the 2010 IADC/SPE Drilling
latest release of the reservoir quality models for any reservoir algorithms in RMS to achieve Conference and Exhibition in
modeling system RMS™ which - from the simplest to the most unique data-matched models. New Orleans.
comes with major improvements complicated. Roxar’s flagship reservoir “The Chinese and Russian
across the entire workflow. • The RMS 3D Gridder has been modeling solution, RMS com- energy markets are rapidly
Within the Roxar modeling made even more robust with prises 13 fully integrated software growing, both in size and im-
portance,” said Robert Innes,
suite, users can build models the result far closer to geologi- modules, including mapping, res- Paradigm director of well planning
for any reservoir. They can also cal reality than previous tech- ervoir modeling, well planning, and drilling. “Sysdrill 2009.1
estimate reserves, plan wells and niques have managed. reservoir simulation and uncer- effectively eliminates previous
simulate past and future produc- • The Property Modeling Tools in tainty modeling tools. RMS 2010 language-based usage limitations,
tion. In this way, they can do RMS have also been further will continue to operate on Linux providing Chinese- and Russian-
everything they need to produce extended in RMS 2010 to 64-bit, Windows XP and the speaking users with access to one
of the industry’s most advanced
maximum performance from include Multipoint Statistics Vista 32 and 64-bit platforms, as
well planning and drilling engi-
their reservoirs, regardless of and improved methods for com- well as Windows 7 64-bit. neering applications,” he claimed.
geology, location or complexity. The Sysdrill 2009.1 update
Key features of RMS 2010 extends the range and accessibil-
include: ity of the Sysdrill suite, which offers
• The New Well Correlation well planning, survey manage-
System makes well picking and ment, anti-collision, torque and
drag, hydraulics, casing design,
tracking the geology simpler,
cementing, and well control in a
faster and more adaptable, single application. Further integra-
thereby providing a smooth tion with Epos system offers Sysdrill
start to the modeling workflow. users quick and more reliable
• The Enhanced Structural access to E&P data for collabora-
Modeling Tool comes with an tive work on large multi-disciplin-
improved workflow for well ary projects. Epos 4, released in
2009, is an open data integration
correlation, isochore generation platform scalable from a laptop to
and horizon modeling. Struc- a full enterprise solution.
tural modeling in RMS is easy-
Arctic Energy, Tromsø, Norway, May 31-June 4, 2010

The Arctic Energy is a forum for presenting recent developments in the geological research,
exploration and exploitation of petroleum resources in the Arctic and for discussing future
challenges. The conference aims at participants from the petroleum industries, academia, govern-
mental institutions, consultants and service companies.

News around the world
Egypt - onshore seismic Closing Sale

Spectraseis has completed a Low largest equipment shipment for Petroleum Geo-Services has Geokinetics. The combination
Frequency (LF) seismic survey a single LF seismic survey by closed the sale of PGS’ Onshore of Geokinetics and the onshore
for Shell Egypt N.V in the North Spectraseis, and featured Spec- seismic data acquisition business business of PGS will create the
East Abu Gharadig (NEAG) traseis’ recently launched field and related MultiClient library to second largest onshore seismic
Basin, Western Desert, Egypt. acquisition system, Field Office Geokinetics. The consideration acquisition company in the
The survey objective was to 2.0 and its innovative numerical in the transaction consisted of world in terms of crew count and
introduce LF technology in the technique Time Reverse Imaging a combination of approximately the largest based in the Western
Western Desert of Egypt. The (TRI). TRI spatially localizes the USD 184 million in cash and Hemisphere. The company will
project is the largest ever LF source of hydrocarbon micro- 2.15 million shares of Geoki- have the assets and technical
seismic synchronous survey, with tremors, allowing operators to netics common stock. The 2.15 capabilities for up to 38 crews
million shares issued to PGS and carry in excess of 207,000
110 data points recorded over directly image hydrocarbon res-
represent approximately 12% of equipment channels, more than
four days. ervoirs at depth.
the current outstanding common 150 vibroseis units and possess
The project took place with The completion of this survey
shares of Geokinetics. Following in excess of 6,240 square miles
the logistical support of Ardiseis, represents a number of major
the closing of the transaction, of MultiClient library data upon
a regional joint venture between milestones for Spectraseis - it is PGS is expected to be the completion of current projects in
CGGVeritas and TAQA in the the first survey with Shell in the second largest shareholder of progress.
Middle East region, and covered North African region, it marks
a 60 square kilometer area in one our first collaboration through
week using a team of 17 crew Ardiseis, and it is the largest Sale of Nodal System
members. synchronous survey we have ever Fairfield Industries has sold their Hill currently is the principle
It also saw the mobilization completed, says Karim Lassel, Z Land® Nodal System to Long operator. Z Land nodes are es-
of 120 recording stations - the Spectraseis director. Beach, California-based Signal pecially suited for deployment in
Hill Petroleum, Inc. Z Land® both rugged terrain and densely-
nodal seismic data acquisition populated urban environments.
© Spectrum
system has been designed and Z Land is one of three entirely

manufactured by Fairfield Indus- cable-free nodal seismic data
tries. Signal Hill’s purchase of acquisition systems developed
the entirely cable-free Z Land by Fairfield. The three systems,
nodal system closely followed including two Z marine systems,
the company’s successful com- have attained a high-profile in
pletion of a 2-D seismic survey the industry where they are con-
using Z Land in the congested sidered to be at the forefront of
urban locale of the Long Beach/ nodal technology.
Signal Hill oilfield, where Signal
Offshore Gravity
© CGGVeritas
ARKeX has recently completed the recently announced 10th

a BlueQube Marine gravity Gabonese Licensing Round.
gradiometry survey on behalf of The BlueQube Marine data
CGGVeritas over 9,000 sq km was acquired to better constrain
of the Zone Sud area offshore the extent of individual salt
Gabon. The survey was per- bodies, improve the geologic
formed as part of a comprehen- modelling and identify pro-
sive work program undertaken spective areas where future 3D
by CGGVeritas to improve seismic acquisition should be
understanding of untapped po- performed. The 10th Gabonese Li-
censing Round opens in
tential in the pre-salt province For a detailed review of the May 2010 and covers
of Gabon to coincide with pre-salt potential, see GEO 42 blocks from two of the
ExPro No. 6, 2009, pp. 36-41. deepwater basins.
6, NO. 5 – 2009
VOL.
australia:
XPLAIN ED
new stu
LOGY E
TECHNO
ENCE &
GEOSCI
dy reveals
The seismic data base constitutes
open file 2D
huge pot
and 3D seismic data that
have recently been
reprocessed, together with
ential
the acquisition of
High Resolution Aeromagnetic
(HRAM) survey
and Synthetic Aperture Radar
geoexpro.com Geotourism: Great
Water (SAR) seep data. Examples of trap types
The 2D seismic reprocessing in the Ceduna Sub-basin.
includes special Early Cretaceous sands
Amplitude Variation with are orientated in tilted fault
Offset (AVO) products blocks and basement drapes
for more advanced analysis. along the basin mar-
Only two wells
GEO ExPro 2010

have been drilled. gin. The Upper Cretaceous
plays are largely con-
fined to the deeper water
area, in tilted fault blocks
Based on an entirely new and horsts where the
data set, including reprocessed Younger Turonian fan
sealing potential is highest.
an integrated geological seismic and remote sensing plays draped over the
thrust along the southern toe
data,
Image: FMCS and MCG
study clearly demonstrates as yet unrecognised play

margin represent a new,
ement:
Image: FMCS and MCG
and a multitude of play the presence of mature source in the basin. While the
Reservoir Manag
structuring is complex
models in the Ceduna Sub-basin rocks along this outer fold trend,
and may ultimately require
nce of See full story starting on offshore Southern Australia. 3D coverage, the thrust
deep seated and the inversion is
The Importa IOR

page 39. area closures.
has generated large
4D in
Section Width ~ 170
Submarine Channel kms
Turonian Source Rocks

Turonian Fan
Amplitude Anomaly
History of Oil/
Six editions.
logy:
ces in Techno
Recent Advan
Stor y
The Valhall
Six seismic foldouts.

LEGEND
Present Day
Top Paleocene
Top Santonian
Intra Coniacian
EMENT
ANAG
VOIR M
RESER Top Cenomanian
S
HYSIC Base Cenomanian
GEOP
GY
GEOLO Intra Aptian
17
36 geo expro october 2009
Basement
geo expro march 2010

Illustration: Fugro
Data courtesy of
and
geo expro october 2009

38
Gas Oil
T O P I C E X P L O R AT I O N
Jim Halverson, geologist with the Montana Board of Oil and Gas,
examines a very ‘oily’ Bakken Core.
Photo: Tom Smith

tom smith
Underlying an area approxi- While the recent U.S. Geological Survey’s 2008 assessment of the U.S. portion of the Wil-
liston Basin did not start this oil boom, they certainly added fuel to the fire. Their report
mately the size of France, estimated mean undiscovered resources of 3.844 Bbo and 3.705 Tcfg (0.68 BBoe) for the
Williston Basin Province. This estimate does not even account for a large portion of the
play that lies to the north in Canada.
the Bakken Formation oil While the Bakken has long been viewed as an excellent hydrocarbon source rock, it was
slow to become a legitimate drilling target. In the 1980s and 1990s, wells drilled into the
reservoir keeps expanding upper shale member produced some marginal results. The real breakthrough came ten years
ago, in May 2000, when a horizontal well was completed in Montana’s Elm Coulee Field,
into what has become North first discovered in 1996. The play has since been expanding rapidly into North Dakota,
Saskatchewan, and Manitoba as well as into the underlying and overlying formations.
America’s hottest onshore
how it all started
oil play. Prior to discovery of the Elm Coulee Field, the primary Bakken target was the upper
shale member of the Bakken Formation. Richard Findley, an independent geologist in
Billings, studied the Bakken Formation in detail. While many wells had penetrated the
formation, only minor amounts of oil had been produced. Reviewing the old drilling
records, Mr. Findley found that good porosity had developed in the middle member that
had largely been ignored by the oil industry. He found this porosity across a large area in
Richfield County, Montana, and concluded a sizeable field of high-quality crude resided
Sourcing an
Oil Boom
in this middle layer and started leasing. With the prospect simply too big for his one man
company, he had to seek out a partnership.
“I sold the original idea to Lyco as a completely defined development opportunity,” says
Richard Findley. “I mapped what I originally called Sleeping Giant (later named Elm
Coulee) as a possible continuous accumulation over 64 km long and 7 km wide. As it turns
out, I was actually conservative in my cutoffs as the field has expanded beyond my original
limits.”
“Originally, independent geologist Dick Findley came to Lyco Energy Corporation in
Dallas, Texas, selling an idea to reenter old plugged and abandoned Red River wells (the
Ordovician Red River Formation is one of the primary producing horizons in the Wil-
liston Basin) and proposed a simple frac job in the middle Bakken horizon. He estimated a
cost of about $85,000 per well and the company would benefit in new and relatively cheap

A geology graduate from Texas
Photo: Larry Mayer, reprinted with permission of The Billings Gazette

oil production,” recalls Bob Larson, formerly
A&M University, Richard Findley
with Lyco at the start of Bakken project, now started Prospector Oil, Inc. in
a Senior Geologic Engineer with Enerplus in 1983. His exploration focus
Denver, Colorado. has been in the Williston Basin.
“The reentries were an inexpensive and “I had to take off the blinders
prudent way to begin to prove my concept and expand my vision to iden-
tify a field as large as what I
of a very large oil field,” explains Mr. Findley. had mapped (Elm Coulee),”
“This was the beginning of the very long says Mr. Findley. “You need to
learning curve which we are still on today.” think big to see big.”
“We entered 9 wells. Three had junk in the
way, two came out pretty good, two were ok,
and two were not so good,” says Bob. “We
were not overwhelmed with the results and
felt the program was not working the way it
was designed to work. We knew there was oil challenging variability member thickens toward the basin center to
in the middle Bakken but the low rates were “The Bakken is the most complicated system over 22 m but is much more heterogeneous.
not economic at the time. We needed a way to I have encountered in my 42 years in this Scattered porous dolomite stringers and
extract this oil commercially.” business,” says Bob Larson. natural fractures hold a lot of reserves. The
“We made an agreement with Halliburton The Elm Coulee Field that started this challenge has been to connect these porosity
to support some of the costs and design a frac play may be an exception rather than the rule stringers. Operators in North Dakota are
program for a horizontal well in the middle for Bakken production. The producing field using advanced geosteering with the aid of
Bakken,” says Bob. “We all agreed that with is in a relatively confined area (800 to 1,300 structural maps to keep the well bore near the
Halliburton’s expertise in horizontal technol- km2) when compared to the formation’s areal top of the middle member. Some recent well
ogy, coupled with being able to frac more of extent in Montana and North Dakota of over production tests in North Dakota have shown
the reservoir, the program may become com- 65,000 km2. the Bakken to be as productive there as wells
mercial.” The Bakken Formation is fairly homo- drilled in the Elm Coulee Field.
Their first horizontal well, Burning Tree geneous across the field where the middle According to Scott Norrid, SAS Region
State well, spudded in March 2000, drilled member is a clean dolomite 1.5 to 5 m thick Asset Manager, Northern U.S. for Hallibur-
500 m laterally along the middle Bakken with an average porosity of about 8.5%. ton, “Each part of the basin is different but
member. Then the Halliburton trucks moved Down dip from the accumulation, the middle if the right technology is applied, commercial
in with sand, water, and a lot of diesel horse- member becomes thinner and matrix porosity completions can be achieved.”
power and the fracing process began. The is nearly absent. The accumulation is bound “The drilling, completing and stimulating of
well, which had an initial production of 196 up dip to the southwest where the formation wells is still evolving
bopd, 85 mcfpd gas, and only 7 bwpd, started pinches out against older strata.
a boom that is still going strong. Outside the Elm Coulee area, the middle the play continues in
canada
Further north in Saskatchewan, the Bakken
has been fueling an exploration boom since
Illustration: GeoPublishing
2005. Their first middle Bakken discovery was

in southeastern Saskatchewan in 1956. The
first modern commercially successful Bakken
wells were drilled by Bison Resources Ltd. at
the Viewfield in 2004.
According to Erik Nickel, the Senior
Research Petroleum Geologist with the Sas-
katchewan Ministry of Energy and Resourc-
es, “There are over 1,506 wells currently pro-
ducing from the Bakken, most drilled since
2005. Prior to 2005, there were between 10
and 50 Bakken wells active since 1956. Total
Bakken production through May, 2009, is
nearly 40 MMb. The boom has also affected
the sale of Crown Mineral Leases, jumping
The Williston nearly 3-fold in 2008 from the previous year
Basin covers
which also showed record sales.”
an area the
size of France Ed Dancsok, Director of the Geology and
in three west- Petroleum Lands Branch for the Saskatch-
ern states and ewan Ministry of Energy and Resources, says
two Canadian “there could be between 25 and 100 Bb of
provinces.
Bakken oil in place in the province.” Com-

Photo: Williston Economic Development
The Williston Basin landscape is flat and rolling.
panies there expect to achieve a 15 to 19% pressured, Bakken oil has travelled into both
recovery using infill drilling at eight wells per the underlying and overlying formations as Running out of ideas?
section. As much as 20 Bbo may be ultimately well as up dip out from the areas of oil genera- University of Tulsa Petroleum Geology
recovered and that is a lot of oil. tion. Erik Nickel and other Canadian geolo- Professor Parke A. Dickey possibly had
gists “believe that the oil in the Viewfield area the Bakken discovery in mind when,
other producing horizons migrated northward from the basin center in in September, 1958, he wrote “We
and plays North Dakota, a distance of at least 200 km.” usually find oil in a new place with old
While the Bakken continuous reservoir play The Devonian Three Forks/Sanish sand ideas. Sometimes, we find oil in an old
has spread from the Elm Coulee Field in that underlies the Bakken Formation is place with an old idea. Several times in
Montana east into North Dakota and north seeing plenty of action in North Dakota and the past we have thought that we were
running out of oil, when actually we
into Saskatchewan, new discoveries fueled Manitoba as well as the equivalent Torquay
were running out of ideas.”
by Bakken sourced oil are springing up in Formation in southeastern Saskatchewan.
adjacent horizons as well. According to Michelle Nicolas, a Petro-
Most researchers believe that the oil leum and Phanerozoic Geologist with the a big one, in Manitoba it is more of a Three
sourced from the Bakken Formation did not Manitoba Geological Survey, “While the Forks play. Located on the eastern edge of the
travel very far, at least vertically. Being over- Bakken play in the U.S. and Saskatchewan is Williston Basin, the lower Bakken Shale is
absent except for some local preservation in
salt collapse features. This leaves the middle
Photo: BJ Services Company
Bakken sand in direct contact with the un-

derlying Three Forks siltstones. Manitoba has
some production from the Bakken sand, most
modern production is from the commingled
middle Bakken and Three Forks formations.
The Three Forks is the dominant oil producer.”
“As a new exploration target discovered
in the Sinclair Field in 2004, future poten-
tial exists north and east of the field,” Nicolas
adds. “Over 1,050 wells in four fields are now
producing from the Three Forks. The largest,
the Sinclair Field, has proven and probable
reserves estimated at 6.8 MMm3 (43 MMb)
with the current production at 11,067 bopd or
about 48% of Manitoba’s total production.”
The Three Forks/Sanish sand play in North
A simultaneous frac of three wells in the Bakken Formation in Montana. The wells are separated by 400 Dakota could “eventually equal the Bakken,”
m and the horizontal bores are perpendicular to the section line road. The length of the view down the
road to the horizon is roughly half the distance traversed by the horizontal well bores. The 2,700 m according to Lynn Helms, Director of the
distance more than doubles the lateral lengths of the early wells. Stimulation size has increased as well, State Department of Mineral Resources.
from 136 metric tons of sand to as high as 635 metric tons. In North Dakota, near the basin center, the

Three Forks Formation is made up of sand

and porous dolomites that are conformably The Williston Basin - playground for stratigraphers
overlain by the Bakken. While still very early Developed on the North American Craton during the Ordovician, the Williston Basin
in this play, researchers are still trying to find is a roughly circular depression containing more than 4,800 m of sedimentary section.
out if the Three Forks is a separate oil-pro- The thickest section is near the center of the basin at Williston, North Dakota. Strata
ducing formation from the Bakken. Recent generally thin and become shallower toward the basin margins. The basin covers about
production show these producing horizons 780,000 km2 across North and South Dakota, Montana, and the Canadian provinces
can act as two separate reservoirs with Three of Manitoba and Saskatchewan.
Forks testing as good, or better, than some of After 23 serious attempts starting in 1924, the 1951 Clarence Iverson Farm well
the Bakken wells. struck oil. This would be the first major discovery in a new geologic basin in the conti-
nental U.S. since WWII. Now, the basin hosts what could become one of the largest
a real oil-finder onshore oil finds (Bakken Formation) in the continental U.S. The Department of Energy
Oil flowing from the Bakken Formation ranks the Elm Coulee Field as the 23rd largest in the entire U.S.
has reversed declining production from an The basin records a nearly continuous sedimentation separated by periods of erosion.
onshore basin that has seen exploration for Several cycles of marine transgressions that filled the basin are separated by marine
nearly 100 years and 60 years of production. regressions. In the 1940s, Northwestern University’s Lawrence Sloss used the Williston
To many explorationists, the basin had Basin as an example area when he first proposed his cratonic sequence concept dem-
been almost completely explored. At any rate, onstrating a series of rising and falling sea levels. This concept eventually grew into the
the area was one of the most heavily explored depositional sequences on seismic data that Vail, Mitchum, and Thompson proposed,
in the U. S. Then, through one person’s or better known as seismic stratigraphy, and is a major tool in hydrocarbon exploration.
ideas and the cooperation between a service Sloss divided the Phanerozoic strata into 6 sequences, the oldest being the Cambrian
company and an independent oil company, to Lower Ordovician Sauk Sequence. The Bakken Formation and the reservoirs associ-
the basin hosts the highest-producing (Elm ated with this source fall in the third sequence, the Devonian to Mississippian Kaskaskia
Coulee alone produced over 15 MMbo in Sequence.
2008) onshore field found in the lower 48 The Williston Basin tilted northward during the Devonian, the marine communication
states in the past 56 years, according to the from the Cordilleran shelf to the Elk Point Basin of western Canada. This shift caused
U.S. Energy Department. North Dakota’s more restricted conditions in the Williston Basin during the deposition of the organic-
oil production is now at the highest levels in rich Bakken shales. The shift also explains the connection and stratigraphic similarities
their history (62.8 MMbo in 2008 and over between the Bakken Formation and the Devonian rocks in Canada rather than the
Devonian rocks deposited on the Cordilleran shelf.
50 MMbo through August, 2009) due to the
The USGS contends that, of the three Bakken Formation members, the middle
success of the Bakken.
sandstone is a major contributor to the composite continuous reservoir. Since the
“The Bakken play is a great example of how,
discovery of the Elm Coulee Field, it has also been the most sought after drilling target
through research, technological advance-
in the basin. This member varies considerably across the basin in thickness, lithology,
ments, and sound geological work, reserves
and petrophyscial properties.
can be increased,” says Erik Nickel. “This
The structure of the basin is relatively simple and probably resulted from basin sub-
happened in an area thought to be ‘drilled
sidence initiated by two Archean shear systems. Folding and faulting are the main
out’. Many had written southeast Saskatch-
evidences of structural deformation. Some of these structures such as the Nesson, Cedar
ewan off as a mature Mississippian oil play
Creek, Little Knife, Antelope, and Billings anticlines produce oil.
before the Bakken was re-worked.”
“While I really appreciate the awards and
Courtesy: Bill Walker

recognition for the discovery of Elm Coulee,
it is important to note the team effort of the
scientists and engineers at Lyco and Halli-
burton that made the Bakken economic,” says
Richard Findley, the Billings, Montana inde-
pendent that started the Bakken play.
“More importantly, Elm Coulee appears to
be a sweet spot within a much larger continu-
ous oil accumulation that the USGS reevalu-
ated. Since that evaluation, frac technology
has advanced and, combined with the poten-
tial of the Three Forks Formation, I believe
their assessment is greatly understated.”
The Bakken Formation is divided into three informal members, a lower shale, middle sandstone,
“Now we need to look beyond the Wil- and upper shale. The shale members are excellent petroleum source rocks. All three Bakken mem-
liston Basin. Elm Coulee is a good analogy bers and the surrounding formations that are exploration targets (Sanish sand, Devonian Three
for other continuous oil plays throughout the Forks, and the Mississippian Lodgepole) make up the interval evaluated by the USGS referred to
world,” concludes Richard Findley, a true oil- as the “Bakken composite continuous reservoir.” The Bakken Formation conformably overlies the
finder. Three Forks in the basin center but unconformably overlies it elsewhere.

T O P I C G R E AT D I S C O V E R I E S
KURDISTAN:
Safe and Secure, with Billion
jane whaley
“Kurdistan is an exciting and very safe place

to explore,” exclaims Steve Curd, Chief Geo-
physicist with Heritage Oil, one of the first
foreign companies to move into this region of
Iraq after the second Gulf war, back in 2004.
“It is a beautiful country, and the scenery
is spectacular - from our Miran Block the
Zagros Mountains can be seen rising in the
distance, giving a wonderful backdrop. And
of course, it was the collision of the Arabian
and Asian plates in the Late Cretaceous and
Early Tertiary which formed not only these
mountains, but also the structural traps we are
exploring, which have the same north-west to
south-east trend as all the major accumula-
tions in the area.”
“Many of these structures can be seen at the
surface, which helps in the design and cost-ef-
fectiveness of our seismic work,” he continues.
“It also means we can look at our reservoirs
at outcrop, and come across oil seeps which
prove what promising acreage we hold.”
billion barrel prospects

According to CFO Paul Atherton, Heritage
Oil has been interested in Iraq for over a decade.
“We decided to concentrate on Kurdistan for
political and security reasons, but also for pro-
spectivity, as the undiscovered potential of the
region is estimated by the USGS to be about
40 Bbo and 60 Tcfg (11.4Bboe),” he explains.
Having built up an extensive database on
the area, and with the help of expert advisers,
the geologists at Heritage knew exactly the
area they wanted, and the company was one of
the first to be awarded a Production Sharing
Photo: Heritage Oil
Contract by the Kurdistan Regional Govern-

ment. “First mover advantage meant that we
were able to cherry-pick a prized block,” Paul
continues. “Our 1,015 km2 Miran block is just
55 km east of the giant Kirkuk field, which

Where in the world can you still find
undrilled billion barrel prospects?
Iraqi Kurdistan is one answer. But
Barrel Prospects what is it like to work in an area

thought by many to be a war zone?
The Miran West Field is 55 km east of the giant

Kirkuk field and is thought to have more than 1 Bbo
recoverable.

Image: Heritage Oil

The Kurdistan Region of Iraq is in the north-east
corner of the country and is bordered by Syria,
Iran and Turkey, all of which have indigenous
Kurdish populations
has remaining reserves in excess of 10 Bbo.

We were awarded it in October 2007 and
just 15 months later, in December 2008, we
spudded our first well.”
“Our initial seismic survey, conducted in the
second quarter of 2008 – the first ever on the
block – enabled us to identify two large and
very promising anticlinal structures, Miran
West and Miran East, together covering
330 km2,” explains Steve. “Initial estimates,
reinforced through an independent study by
RPS Energy, suggest that the block contains
in-place reserves of 3.4 billion barrels of oil.
Where else in the world nowadays have you a
chance of discovering giants like this?”
fractured limestone
reservoirs
As reported last year (GEO ExPro, vol. 6, no.
4, p.74), the first well, Miran West-1, drilled
to a depth of nearly 3,000m, found a gross
oil-bearing column of 710m with three Cre-
taceous reservoir zones. Estimates for the
field suggest that it has in excess of one billion
barrels recoverable, and although testing
was incomplete, Miran West-1 flowed at a
maximum rate of 3,640 bopd from a single
upper reservoir interval.
“As the seismic revealed structures with sub-
stantial vertical relief, possibly trapping a sig-
nificant column of hydrocarbons, and we had
no other knowledge of the prospect, standard Kurdistan – the other Iraq!
industry practice meant that we drilled with Nestling between with the Tigris and Euphrates Rivers, Kurdistan is known as the Cradle
high mud weights, in case we encountered a of Civilisation’, as it was here that agriculture, metal work, pottery and weaving all
high pressure gas column,” Steve explains. first appeared. In fact, the Citadel in Erbil dates from 6,000 BC and is said to be the
“However, we found oil, under much less longest continually inhabited city in the world.
pressure, so our high mud weights tended to Covering about 30,000 km2 of the north-east corner of Iraq, with a population of
invade and contaminate the reservoirs in the nearly 4 million, the Kurdistan Region of Iraq was initially established in 1970 to stop
vicinity of the well. This is not a major issue, continual fighting between Iraq and Kurdistan separatists. During the regime of Saddam
but it meant that we were not able to properly Hussein, however, much of Kurdish self-rule was lost, culminating in the chemical gas
test the lower horizons. The second well, Miran genocide of the 1980’s and oppression by Saddam’s forces after the Kurdish uprising
West-2, is being drilled with the knowledge of 1991, when hundreds of thousands of Iraqi Kurds were killed or displaced.
gained from the first well and therefore with The new post-Saddam constitution, which was ratified in 2005, established the
appropriate drilling parameters and equipment Kurdistan Region of Iraq as a federal entity recognized by Iraq and the United Nations –
to gain maximum information.” effectively an autonomous region within a federal state. It is ruled by the democratically
The main targets in this part of Iraq are elected Kurdistan National Assembly, which has the right to issue production sharing
all Cretaceous in age, although in northern contracts and exploration rights over new acreage, although not existing fields. Proceeds
Kurdistan the Triassic is also hydrocarbon from the sale of oil goes to the Iraqi government and then is redistributed, with 17% of
bearing, and in other parts the Jurassic may be the total Iraqi budget, the vast majority of which stems from oil sales, going to Kurdistan.
prospective. The principal reservoir horizons As a result of its relative stability, the Kurdistan Region of Iraq has the fastest growing
in this structure are the Late Cretaceous Shi- economy with the highest standard of living in Iraq, with many modern hotels and
ranish and Kometan Formations, and the offices in the capital, Erbil. As a more secular society, Kurdistan has managed to avoid
Early Cretaceous Qamchuqua. These are all much of the religious and sectarian violence that has affected other areas in the country.
carbonates, principally limestones, extensively

Heritage Oil
Tony Buckingham, CEO and founder of
Heritage Oil, has more than 30 years experi-
ence in the oil industry, but comes from a very
different background to that of most senior
managers in the business. He started out as a
deep sea diver, working on rigs in the North
Sea, before moving into the security business,
acting, among other things, as an adviser to
large independent companies like Premier Oil
and Ranger. Having worked for many years in
Africa, in 1992 he set up Heritage Oil, spe-
cifically to concentrate on exploration in Africa
Image: Heritage Oil
and the Middle East.

Heritage acquired pioneering assets in
the Albert Basin in Uganda in 1997 – the first
company to do so. After the initial seismic in
the area showed promise, it farmed out 50%
A seismic line across the Miran block clearly shows the two structures of Miran West and Miran East to Africa Energy, (later purchased by Tullow)
and together they went on to discover over
700 MMbo in the Albert Graben. Since then,
cracked as a result of folding and therefore coming and hospitable. It is also very interest-
Heritage has been awarded or acquired ex-
exhibiting excellent fracture porosities. “The ing historically, so there are plenty of places to ploration acreage in Mali, Tanzania, Pakistan,
highly fractured nature of the rock means explore in my time off.” the Democratic Republic of Congo and Malta,
that we expect recovery rates of between Heritage has a Chinese crew working on and producing fields in Russia and Oman.
50 and 70%,” says Steve. “Data gathered the drill site, but uses and trains local staff Since acquiring its first assets six explo-
from the initial test indicates that a produc- wherever possible. “Our drivers, security ration wells have been drilled on Heritage
tion rate of 10,000 bopd per well should be and labourers are all local, and we also have acreage, and all of them have found hydrocar-
achievable.” Kurdistan geoscientists, administrators and bons, a remarkable success rate. Late in 2009
logistics people,” says Paul. “This is a very im- the company decided to sell its Ugandan
secure and safe portant policy for us. We are also involved at assets, in order to concentrate resources on the
Miran West-2 was spudded in November the community level, working with schools development of Kurdistan, while diversifying
2009, about four kilometres north-west of and mosques in the Miran area. Heritage’s further elsewhere. In total Heritage spent about
the first well, and is expected to take four objective is to support development in local US$150 million in Uganda and is selling the
assets for about US$ 1.5 billion – not a bad
months to drill, so the field is already well communities. We recognise the importance of
return on investment, as Paul points out.
on the road to development, with first oil engaging with local stakeholders and believe
Interested in Iraq, the company strategically
expected as early as this summer. “Initially, that by working closely with host communi- chose to float on the Toronto Stock Exchange
we expect to produce about 5,000 bopd for ties we are better enabled to meet the chal- in 1999, taking advantage of Canada’s politi-
local consumption,” explains Paul. “We will lenges facing us.” cally neutral status. At the time it had a market
eventually export much larger quantities via “There are now about 25 international oil capitalisation of less than US$20 million. In
the Iraq-Turkey pipeline, which has a capacity companies working in the Kurdistan Region 2008 it moved to the London Stock Exchange,
of 1.6 MMbopd. At the moment the export of Iraq, and flights come to Erbil from all over where Heritage Oil is listed on the Main
payment mechanism via Iraq has not been the world,” adds Steve. “There are no issues – Board, is a member of the FTSE 250 group
clarified, but we are confident that this will be basically, it’s not the Iraq you hear about in the of companies and is now valued at US$ 2.2
resolved, as the money from exports from this news!” billion.
area will benefit the whole country, not just
Kurdistan. As soon as that happens, we will
look to begin exports from Miran.”
Which brings us to the inevitable question:
bearing in mind everything we read about
Iraq, what is it like to work in Iraqi Kurdis-
tan? “It’s great,” says Steve. “It’s very stable
and very safe. Since March 2003, there has
only been one bomb in the areas administered
by the Kurdistan Regional Government, no
foreigners have been kidnapped and not a
single coalition soldier has died. The local
Kurdistan security force is excellent and we
have very few fears for our safety. The main
towns have comfortable western-style hotels
Photo: Heritage Oil
and the locals throughout the State are wel-

recent
T O P I C Gadvances
E O S C I E N C EinE X
technology
PLAINED
Marine Seismic Sources

part ii: air-gun arrays for non experts
This second article on marine seismic sources summarises salient points on marine
air-gun arrays and their radiation characteristics.
In the first article in this series (GEO ExPro Vol. 7, No. The source signature from the array at 5 m depth is
“Every wave, 1), we showed that air-gun arrays produce high-energy, displayed in Figure 2b. Observe that the bubble oscil-
low-frequency sound in the form of sharp, short-du- lations are strongly damped. The primary-to-bubble
regardless of
ration pulses. Key parameters of source signatures are ratio is PBR=35.6. The amplitude spectrum is shown in
how high and peak-to-peak (P-P) pressure amplitude in bar-m and Figure 2c. The notches at frequencies 0, 150, 300 and
forceful it crests, peak-to-bubble ratio (PBR). The nominal output levels 450 Hz are caused by the source ghost. Note that the
of most seismic arrays tend to be 10-100 bar-m primary-to-bubble ratio is frequency dependent.
must eventually Figure 1 shows a seismic vessel with two air-gun
collapse within arrays towed 365 m behind (measured from the naviga- source directivity
tion reference point). An example of an air-gun array In seismic surveying, air-gun arrays are designed to
itself.”
configuration with 28 active guns in three strings is direct a large proportion of the sound energy down-
Stefan Zweig shown in plan view in Figure 2a. The individual gun wards. Despite this downward focusing effect of the
volumes in this example range from 20 in3 (0.3 l) to 250 array, relatively strong sound pulses will propagate in all
in3 (4.1 l ). The total volume is 3,090 in3 (50.7 l). The directions. The radiation from an array will depend on
array contains a number of ‘cluster guns’, where two guns the angle from the vertical, so that the radiated source
sit so close together that their air bubbles coalesce after signature is directional. This effect is called directivity.
the guns have fired. Each array has its own specific radiation pattern. This
Cluster guns produce sound more efficiently than a pattern, which will be different for different frequencies,
single large gun with the same volume as the cluster. varies relatively slowly from low to high frequencies. The
The source array dimension is 15 m (inline) x 20 m radiation pattern will also be different for different array
(cross-line). Inline and cross-line refer to the direction tow depths.
the ship sails and the perpendicular to the sail direction, For the gun array in Figure 2a, source directivity can
respectively. be modelled. Figure 3 shows the radiation pattern for
© Statoil
Lasse Amundsen is Chief
Scientist, Geophysics, at
Statoil.
Martin Landrø is professor

in Applied Geophysics
at NTNU, Trondheim,
Norway. Seismic vessel with two seismic sources (two air-gun arrays) and 12 hydrophone cables equipped for a 3D investigation.

Martin Landrø and Lasse Amundsen
In-line (upper panel) and
© PGS Geophysical
cross-line (lower panel)
directivity plots for the air-
gun array, at 60 m deep
point of observation.
Colors indicate different
energy levels in dB.
© PGS Geophysical
Configuration (top view) of an air-gun array of total chamber

volume 3090 in3 (50.7 l).
© PGS Geophysical
the effect of the water layer

and seabottom
Modeled farfield pressure signature of the sound pulse re- The seismic signal from the air-gun array will be affected
ferred to 1 m distance from the source centre. The source by the physical properties of the water layer and the sea
depth is 5 m. The gun pressure is 2000 psi. The strength bottom.
(peak-to-peak amplitude) is 135.6 bar-m. The primary-to-bub-
ble ratio (PBR) is 35.6. The water velocity Is 1506.9 m/s.
The sound travelling with small to moderate angles to
the vertical axis will reflect at and refract into the water
bottom. The reflection strength is given by the reflection
coefficient for the interface between the water layer and
the layered bottom. For small angles, the reflection coef-
ficient is small, typically 0.2, so that most (~80%) of the
sound enters the subsurface.
However, sound hitting the sea bottom at angles
larger than a critical angle to the vertical, determined
© PGS Geophysical
Graphic picture of sound

by the ratio of sound velocity in water and sea bottom, propagation in a water
will be reflected back into the water layer (Figure 4). layer over a layered sea
The water layer, bounded above by the sea surface and bottom. A large part of the
below by the water bottom, then forms an acoustic wave sound travels downwards.
Sound that hits the sea bot-
Frequency spectrum of the modeled farfield pressure signature. guide where the sound propagates with significantly less tom at an angle greater
attenuation than sound in an infinite water pool. The than the critical angle (θ)
transmission properties of this wave guide depend on will be totally reflected.
frequencies 0-150 Hz, in in-line (top) and cross-line the geology of the water bottom and variation of sound This sound is trapped with-
(bottom) directions. Vertical direction is 0 degrees. 90 velocity with depth and distance. in the sea layer that then
channels or guides the
degrees, at the edge of each circle, corresponds to hori- For a soft sea bottom, the critical angle is typically sound. This phenomenon
zontally propagating energy. Observe that the radiation 60-70 degrees; for a hard sea bottom the critical angle is known as waveguide or
pattern is concentrated downwards, and that the source can become 30 degrees. More sound enters the wave- normal-mode propagation.
pulse gets attenuated for angles that differ from the
vertical. The amplitude levels emitted horizontally tend
to be 18-29 dB lower than the vertical. Note that the
sound produced by the array is not distributed evenly
across the frequency spectrum.
The amplitude is largest in the 20-100 Hz interval
but some energy will be present up to 500-1000 Hz. The
high-frequency components are weak when compared
to the low-frequency components, but strong when
compared to ambient noise levels.

recent advances in technology
guide for hard sea bottoms than soft ones, producing a times of three ‘wavelets’ travelling with apparent veloci-
higher level of sound at large range from the source. ties c0=1687 m/s, c1=1480 m/s and c2=1330 m/s, respec-
tively. The low-amplitude, low-frequency wave starting
sound propagation with at T0=7.70 s is called the ground wave because it is closely
horizontal distance related to the sediment sound velocity. The lowest fre-
The signals from marine air-gun arrays can be detected quency component arrives first (at T0 with velocity c0),
in the water column many kilometres away from the followed by progressively higher frequency components
seismic vessel, sometimes 100 km and more. The sound travelling at progressively lower velocities. The highest
Seismic signal recorded in
levels from air-gun arrays at long horizontal distances frequency component of the ground wave arrives at time
the water layer a distance
13 km away from a source from the seismic vessel are determined not only by the T2 with velocity c2. The high-amplitude, high-frequency
vessel. The water depth is acoustic power output but equally important by the local wave which is superimposed on the ground wave at time
70 m. The initial source sound transmission conditions. T1=8.78 s is called the water wave because it is mainly a
signal some 10 millisec- In a later GEO ExPro article we will address this function of the water sound velocity. In the water wave,
onds long is much broad- effect in more detail. Here (Figure 5), we show the sound with duration T=1.2 s, higher frequencies travel fastest
ened in time since the sig-
nal frequencies travel with recorded 13 km away from an airgun array in water depth and arrive before lower frequencies. At time T2 the fre-
different velocities. See text of 70 m. The signal has three important features at times quencies of the ground wave and the water wave merge,
for more details. T0=7.70 s, T1=8.78 s and T2=9.77 s. These are the arrival at which point they form a single wave called the Airy
phase. At this abrupt end of the wave train, energy has
been transported in the water layer waveguide with the
minimum group velocity.
The onset of the water wave is sometimes used in
marine refraction work to determine the source-receiver
range (since the water speed is well known).
We conclude that with increasing horizontal distance
from air-guns, the signal decreases in strength but in-
creases in time duration during guiding of the sound.
The initially-short air-gun array signal, some 10 milli-
seconds in length, can become quite long. In the water
wave, higher frequencies arrive before lower frequencies.
This geometrical dispersion effect will be sensed as a fre-
quency modulated tone or ‘hooting’ by anyone listening
down there in the water column.
The decibel (dB) is a logarithmic unit of measurement that expresses the magnitude of a physical quantity
relative to a specified reference level. Decibel is most widely known as a measure of sound pressure level.
Decibels are measured on a base-10 logarithmic scale – an increase of 3 dB doubles the intensity of sound,
10 dB represents a ten-fold increase, 20 dB represents a one hundred-fold increase, and so on.
The seismic survey literature refers to peak-to-peak (P-P) pressure amplitude in bar-m. P-P can be converted
to source level Ls in dB re 1 μPa-m as follows: Ls (dB re 1 μPa-m) = 20 log10(P-P)+220.
Levels from continuous sources (like noise) are normally expressed on a ‘root-mean-square’ (rms) pressure
basis. For an ideal sinusoid, the rms level is 9 dB lower than the P-P value. It is difficult to compare levels from
air-guns with continuous sources, but a guide is to set the rms level 18 dB lower than the P-P value.
It is difficult to compare underwater sound to that in air because of pressure differences, but by subtracting
61.5 dB from the underwater measurement one roughly obtains the in-air equivalent of the sound intensity
measured in dB. In air, a short exposure to 140 dB is seen as the approximate threshold for permanent
hearing loss for humans.
References To set seismic signal levels in perspective, the pressure of low-level background noise from gentle wave
W J Richardson, C R Greene action/little wind is above 60 dB re 1 μPa (spectral level, 10-100 Hz). In bad weather, low-frequency back-
Jr, C I Malme and D H Thom-
ground noise increases to 90-100 dB re 1 μPa. Marine vessels generate significant noise. Supertankers may
son, 1995, Marine mam-
mals and noise: Academic have a source level of 170 dB re 1 μPa-m (spectral level); similarly the source level of active trawlers will be
Press. in the order of 150-160 dB re 1 μPa-m. Whales can generate signal levels exceeding 180 dB re 1 μPa at
I Gausland, 2000, Im- 1 meter.
pact of seismic surveys on Signals from air guns range from 240-260 dB re 1μPa-mP-P . Chemical explosives detonating in the sea
marine life: Leading Edge, will have peak pressure levels in excess of 270 dB re 1 μPa-m, for charge sizes of 1 kg. However, chemical
8, 903-905. explosives are not used in marine seismic operations today.
Landrø, 2007, Attenua-
The computed source level depends on the frequency range over which the acoustic pulse is measured.
tion of seismic water column
noise – tested on data from Seismic arrays are frequently measured over 0-125 Hz or 0-250 Hz. There may be a slight underestimation of
the Grane Field: Geophys- total energy by these bandwidths, but the error is small because output above 250 Hz is limited. It is known,
ics, 72, V87-V95. however, that the output from air-guns extends well into the kHz band but with much-reduced pressure level.

Eyre Sub-basin Potoroo 1
Gemini 1A
Jerboa 1 Columbia 1
25DR17
WA
34°
SA
24DR16
Gnarlyknots 1A
S09-2 Duntroon Sub-basin

S09-4
S09-5
New Insights into

128° 130° 132° Ceduna 134°
S09-6the 2009
The eastern Bight Basin showing
Ceduna Sub-basin
acreage Index map of the 315 km long foldout line shown in
Apollo 1
release area, sub-basins, wells, and 2007 dredge Platypus 1 red and the remainder of the 5,000 km regional data
SOUTH
AUSTRALIA sample locations. BIGHT BASIN
Greenly 1 acquired by ION Geophysical Corporation in 2009.
Madura Shelf

The program utilized 10 km offsets with a record
NT 36°
POLDA BASIN QLD length of 18 seconds to image the deep reaches of
Eyre Sub-basin Potoroo 1 WA
GeminiSA
1A
NSW
Recherche Sub-basin the basin.
Jerboa 1 Columbia 1
VIC 0 200 km
25DR17
WA
TAS 34°
SA
24DR16
10-4431-1
Gnarlyknots 1A
Where well symbol information is sourced from publicly available "open file" data, it has been provided by Geoscience Australia from Well Completion Reports. These symbols were generated from open file data as at
S09-2 31 March 2009. Where well symbol information is not publicly available from titleholders' data, the information has been extracted from other public sources.
Duntroon Sub-basin
S09-4

S09-5
The first regional seismic program designed to collect data through the crustal section in S09-6 Ceduna Sub-basin
Madura Shelf
Basement involved fault

Platypus 1 Bight Basin
the Ceduna Sub-basin of the Bight Basin is providing key information and the first seismic BIGHT BASIN
Greenly 1
NT 36°
images of untested petroleum systems.
Courtesy: ION
QLD Ceduna Sub-basin Petroleum exploration well - Gas show
WA
SA Recherche Sub-basin
NSW Potential source rocks
VIC 0 200 km Recherche Sub-basin dredge sample location
See full story starting on page 39. TAS Eyre and Duntroon
10-4431-1 Sub-basins
Where well symbol information is sourced from publicly available "open file" data, it has been provided by Geoscience Australia from Well Completion Reports. These symbols were generated from open file data as at
31 March 2009. Where well symbol information is not publicly available from titleholders' data, the information has been extracted from other public sources.

Madura Shelf Figure 2. Structural elements of the eastern Bight Basin showing 2009 Release Areas
Bight Basin
Basement involved fault and wells. Locations of seismic lines used in figures are shown.
Ceduna Sub-basin Petroleum exploration well - Gas show
Potential source rocks
Recherche Sub-basin dredge sample location
Eyre and Duntroon
Sub-basins
Figure 2. Structural elements of the eastern Bight Basin showing 2009 Release Areas
and wells. Locations of seismic lines used in figures are shown.
36 geo expro march 2010 geo expro march 2010 38

S09-3
34° S09-1
130° 131° 132° S09-2
t o p i c f r o n t i e r e x p l o r at i o n Potoroo 1 Gnarlyknots 1A
S09-4 S09-3
Hidden Assets:
S09-1 130° 131° Maturity map for 132°
typical continental margin growth fault system balanced by a

34°
35°
S09-2 Potoroo 1 Cenomanian-
Gnarlyknots 1A S09-5 Turonian marine toe thrust lies just above the yellow horizon.
South Australia
shale at the base Below the Southern Right supersequence, or prior to the
S09-6
S09-3
0 100 km of the Tiger Berriasian, is a section at least 5 km in thickness above basement
S09-1 Supersequence
S09-4
34° 09-3692-6
that developed during the early rifting phase between Antarcti-
Where well symbol information is sourced from publiclyS09-2 showing
available "open file" data, it has been provided mature
by Geoscience Australia from Well CompletionGnarlyknots 1A symbols were generated from open file
Reports. These ca and Australia. In previous datasets, this has only been poorly
35°
data as at 31 March 2009. Where well symbol information is not publicly available from source rocks
titleholders'
data, the information has been extracted from other public sources.
throughout most imaged if imaged at all.
A largely untested 15,000 m of syn-rift and post-rift succession of Middle Jurassic to S09-5
2009 Offshore Petroleum of the basin
S09-4
S09-6 Acreage Release Area depocenter. untested petroleum systems
Late Cretaceous sediments in the offshore Ceduna Sub-basin beckons exploration. 0 100 km
35°
Immature The petroleum system identified by Geoscience Australia from
NT S09-5 09-3692-6
QLD
Where well symbol information is sourced from publicly available "open file" data, it has been provided
Early Oil
seafloor dredge samples lies in the upper portions of line 1500.
by Geoscience Australia from Well Completion Reports. TheseWA symbols were generated from open file
S09-6
thomas smith 0
data as at 31 March 2009. Where well symbol information SA available
is not publicly
100 km from titleholders'
NSW The marine source rocks identified to be the best found to date
Main Oil
VIC
09-3692-6
Where well symbol information is sourced from publicly available "open file" data, it has been provided
lie below the bright green horizon (top Tiger supersequence or
This year the Australian Government is offering six exploration Gondwana. Prior to and following the commencement of seafloor 2009 Offshore Petroleum
by Geoscience Australia from Well Completion Reports. These symbols were generated from open file
TAS
Late Oil
data as at 31 March 2009. Where well symbol information is not publicly available from titleholders'
top Santonian) and above the red horizon (Blue Whale superse-
areas in the frontier Ceduna Sub-basin of the Bight Basin. Prior spreading between Australia and Antarctica, basin development quence). Potential hydrocarbon accumulations are predicted to
Immature Wet Gas
exploration focused mainly on the margins of the Ceduna Sub- evolved through a series of extensional and thermal subsidence NT
QLD
Acreage Release Area occur in the deltaic sandstones near the top of the Tiger super-
basin where nine unsuccessful wells were drilled. The only well episodes. The result is the east-southeast trending Ceduna Sub- WA
SA
Early Oil ImmatureDry Gas sequence. Reservoir sandstones are also found in the overlying
NT
that attempted to test the deep basin was drilled in 2003; the basin, the major depocenter in the Bight Basin. The Sub-basin NSW
VIC WA Main Oil
QLD Petroleum exploration well
Early Oil - Dry hole
Hammerhead supersequence located below the top Cretaceous
Gnarlyknots 1A well targeted an untested petroleum system but extends over an area of 126,000 km2 in water depths to 4,600 m. TAS
SA
NSW
Main Oil
pick (dark green horizon).
Late Oil VIC
failed to reach the planned horizons. “After the first round of exploration, one of our biggest TAS
The older rift section (between top Basement shown in pink
Late Oil
In 2007, after the first wave of unsuccessful exploration, and concerns about the Ceduna Sub-basin was the existence and foundWet
theGas
best source rocks to date, a suite of organic-rich, oil- and Southern Right shown in yellow on the time-depth line)
to address questions concerning the area’s petroleum prospectiv- extent of source rocks,” says Jennifer Totterdell, Project Leader prone Dry
shales
Gas
of Cenomanian-Turonian
Wet Gas
boundary age.” that is imaged on the inboard BightSPAN data is interpreted
ity, Geoscience Australia conducted a marine sampling survey. for the Southern Frontiers Project, Geoscience Australia. According to Geoscience
Petroleum exploration well
Australia,
Dry Gas subsequent petroleum to be equivalent to the fluvial-lacustrine Middle Jurassic-Early
This survey identified rich Late Cretaceous source rocks in the “Negative perceptions regarding the prospectivity of the Bight systems
- Drymodeling
hole showed that generation and expulsion
Petroleum exploration well
- Dry hole Cretaceous section intersected in the Eyre Sub-basin to the west
basin. A recently completed seismic survey, BightSPANTM, con- Basin followed the disappointment of Gnarlyknots 1A, and one from the Cenomanian–Turonian (Late Cretaceous) source (Sea Lion and Minke supersequences). It is overlain by an Early
ducted by ION Geophysical, was able to image an early rift of the perceived exploration risks in the basin continued to be rock occurred during the mid-Campanian to Recent, result- Cretaceous succession that is largely non-marine and which is
section much more clearly than previous datasets. The deep hydrocarbon charge.” ing in potentially significant accumulations of both liquid and interpreted to include thick lacustrine shales. In the Eyre Sub-
imaging, regional survey shows untested potential petroleum “Previous work based on wells that intersect the proximal gaseous hydrocarbons within overlying deltaic sandstones of the basin, the early rift succession is interpreted to contain lacustrine
systems to underlie most of the basin. basin margins identified a range of potential source rock inter- Turonian–Santonian Tiger and/or latest Santonian–Maastrich- source rocks that have sourced the breached oil accumulation at
vals across the basin, with the most prospective section predicted tian Hammerhead supersequences. Jerboa 1, the only well in the Eyre Sub-basin.
basin expectations to be the more distal, marine facies of the Albian-Santonian “New seismic data, including the BightSPAN survey and re-
A series of Mesozoic to Cenozoic depocenters developed along section,” says Jennifer. “In 2007, we successfully sampled more key survey processed data available from Geoscience Australia and Fugro
Australia’s southern margin during the breakup of eastern distal rocks along submarine canyons and fault exposures. We The BightSPAN program covers a portion of the Bight Basin MCS, provide clearer imaging of the Jurassic half graben along
and particularly the Ceduna Sub-basin where Australia is the eastern margin of the Ceduna Sub-basin and new insights
offering tracts for leasing. The acquisition is typical of other into the half graben play in this part of the basin,” says Jennifer
ION BasinSPAN (SPAN) programs. The seismic data are inter- Totterdell.
preted together with simultaneously collected gravity-magnetic “In the past 10 years, the vast amount of new, high quality
data to regionally map the crustal continent-ocean boundary geophysical data available to explorers and identification of oil-
(COB) and the top of the MOHO discontinuity. prone source rocks has vastly advanced our understanding of the
Line 1500 extends from the outer continental shelf from the prospectivity of the Bight Basin,” concludes Jennifer Totterdell.
Potoroo-1 well, across the COB, and out over the ocean crust. “Petroleum systems modeling suggest the basin has undergone
Oceanic crust (top shown in green) lies in about 5,000 m water multiple phases of generation and expulsion of oil and gas po-
depth, is characterized by about 6 or 7 km of crystalline crustal tentially resulting in major hydrocarbon accumulations.”
thickness and a MOHO at about 15 km depth. The COB lies near
the base of the continental slope, where MOHO begins to deepen
from the base of oceanic crust to beneath the continental shelf. BasinSPANS™
The placement of the continental basement (top shown in pink) ION’s seismic imaging subsidiary GX Technology group
and MOHO picks is crucial to understanding the petroleum (GXT), offers a new approach in basin evaluation by
systems of this margin as it controls not only the thickness of rift- acquiring and processing regional data designed to
related sedimentary rocks but also the age of the critical points in image down to the base of the earth’s crust. According
the petroleum history. The Potoroo well bottomed in basement to Bob Peebler, ION’s CEO, “SPAN originated from the
and helps anchor that pick. ION’s interpretation is further con- idea that you’re spanning a whole basin with data. …for
trolled by modeling of the gravity profile taken during acquisition explorationists to succeed, they must explore for hydrocar-
and verified by two seismic refraction experiments reported by bons and not just prospect.” These surveys are designed
Time-Depth Comparison: Hayes in the 1991 AGU Circum-Antarctic Atlas. for deep imaging typically using 18 second records and
The sections displayed above are taken from the boxed portion of the foldout line. These lines are the first to image the lower rift sequence below The sedimentary section of the line consists of a thin Tertiary 9,000 m cables. Each SPAN is custom designed to
the detachment zone. The lower line is a pre-stack depth migration (PSDM) of the time line shown. The PSDM greatly improved the structural fidel- provide critical insight into the geologic evolution, deep
section above a Cretaceous section that has been previously
ity of the seismic image. The time migration gives the impression that the section is much more faulted than in fact it is. Therefore, traps are not
imaged in seismic data, down to about the top of the Southern basin architecture, deposition, and structural history of
as serious a risk as was previously associated with this section. In addition, the improved imaging at depth adds new perspective on additional
targets. The depth migrated line also shows better resolution of layered packages possibly indicating pockets of reservoir sandstones along with Right supersequence (shown in yellow) which has, in some petroleum systems in a frontier basin.
seals and good source rocks. previous surveys, been interpreted as the basement. A rather
geo expro march 2010 39 40 geo expro march 2010

geocontroversy
T O P I C G E O S C I E N C Edebates
EXPLAINED
following on from the report on the peak oil debate held at the 7th petroleum geology conference last year,
Are NOCs the Future of the

National Oil Companies (NOCs) have become increasingly important in the oil industry. Back
in the 1970’s the major oil companies controlled around 80% of the world's oil supplies: that
figure is today much considerably with much of the remaining resource now in the hands of
the NOCs of the main petroleum-producing nations.
The protagonists of this debate were Marlan W. tation, refining, and marketing of nearly all 2008. “I believe that, regardless of how impor-
Downey, former AAPG president, who spoke the oil in the world, outside the USA. They tant petroleum is to the world economy, it is
for the motion, and Peter Gaffney, Founder of provided all the capital, the technology, the still a commodity, and as such will continue to
Gaffney Cline, who spoke against it. project management skills - and took most of oscillate in price through its foreseeable life.”
the oil. Now they control a mere 10%.” Gaffney agreed with Downey that the
down to 10% But as he pointed out, nearly 50 years have NOCs have matured and graduated into
Marlan Downey, who spent 30 years with passed since the halcyon days of the IOCs, and worthy competitors to the IOCs in their own
Shell before joining the Board of ARCO and more importantly, two generations of young right, but concludes that they are therefore
then moving into academia, viewed the topic people from these emerging states have ben- both equally vulnerable to market forces. He
very much from the historical standpoint, efitted from education and training to enable sees them more as interdependent, rather
comparing the past and present situations of them to take control of their own resources. The than independent of one another, emphasised
the NOCs and international oil companies modern NOC has well-qualified engineers, ge- by the fact that for the first time in several
(IOCs). “Once, the international oil companies, ologists, and geophysicists, as well as accoun- years the NOCs are looking for partners on a
and their clients, the great powers, imposed tants and managers – and they know where to broader front than previously, widening their
their will on the penniless, powerless countries look for both the capital and the technology to nets to become international competitors and
where oil was found. The great powers, eco- ensure their forthcoming prominence. looking to work with others to mitigate their
nomically allied with the IOCs, divided much own risks.
of the world up into ‘Spheres of Influence’ and iocs and nocs
agreed not to compete with one another,” he interdependent working with the nocs
said. He recalled the days when international In Peter Gaffney’s opinion, however, the future Both speakers said that they thought that many
oil companies boycotted oil producing coun- of the petroleum industry is simply a matter of larger companies are still worried about their
tries which asked to retain a share of their oil economics, as the market is a more powerful ability to work with the NOCs. “It is important
through production sharing contracts. influence than the National Oil Companies. that the NOCs are accepted as they are now, so
In those days “the international oil com- He cited the inability of the NOCs to stem the deals available today need to be structured
panies controlled the production, transpor- the recent price fall from the $150 heights of in today’s real world, not that of the 1950’s,”
said Gaffney. “But,” Downey added, “the ne-
gotiating power, the control of oil, belongs to
the national oil companies in oil producing
Photo: Guy Elliott/PESGB
countries.” Many IOCs are wary of negotiat-

ing with NOCs, worried that they are not on
a level playing field, with the NOCs of young
oil producing nations, supported by their gov-
ernments, likely to move the goal posts at will.
“Forget the myth of contractual third party ar-
bitration. Does anyone doubt that courts in the
Convener Julian Rush FSU will rule on petroleum contract disputes in
with Peter Gaffney, who a manner favourable to the FSU?”
co-founded Gaffney-cline In Marlon’s view, the IOCs have only them-
Associates in 1962 and selves to blame - when they cut their labora-
has worked as an advi- tories and research staffs in the 80’s and 90’s to
sor and senior manager
in most of the world’s pe- save a few dollars, they lost their dominance in
troleum provinces. technology. The NOCs continued developing
their expertise and now, as he said, “Petrobras

Jane Whaley
we now look at the second geocontroversy debate:
Petroleum Industry?
doesn’t need any help from Shell to develop in
Photo: Petrobras
the deep water, and Aramco doesn’t need any
help from Chevron to manage large oil field
projects in Saudi Arabia.” Unlike Gaffney, he
believes that the NOCs no longer need the
independents and major oil companies. “It is
their century!”
consumer v supplier
But Peter Gaffney thinks that this argument
ignores the realities of global economics. “The
National Oil Companies themselves can be
divided into two groups - producers and con-
sumers,” he explained. The exporting nations
are facing the same problems as the rest of the
industry, and can be seen to be curbing their
plans for new plants and reducing production
capacity. The NOCs of the consuming nations,
however, are busy trying to ensure their long
term supply from a range of countries, while
actively reducing their import costs.
President Lula of Brazil holds up the first sub salt oil produced by Petrobras, Brazil’s National Oil Com-
So which type of NOC has the upper
pany, which is the world’s eighth biggest global company in market value, according to Ernst & Young.
hand? Neither, in Gaffney’s opinion, as the
driving forces of today’s world economy are evolving as it has over the last decades, to meet
Guy Elliott/PESGB
not the oil companies but growing nations new global political realities as wealth, power
such as India and China – producers, but and influence ebb and flow across the planet.
more importantly, major consumers of energy Summing up, Julian said that both speakers
supplies. “As such, they have a capability to agreed that NOCs are now dominant. But will
influence the market from a very different they survive to be the future of the petroleum
perspective than that of exporting countries.” industry, when they are so tied to the politi-
Gaffney also pointed out that alternative cal ambitions of their countries, assuming that
hydrocarbons are set to have a major impact the politicians continue to see oil and gas as
on the future of the petroleum industry. “Who part of their plans for growth?
could have imagined 10 years ago the huge When it came to the vote, the attend-
new resources of natural gas that have become ing delegates chose strongly in favour of the
available in the United States through coal motion, declaring that NOCs are the future
bed methane and the very successful shale of the petroleum industry. But, as so often
gas developments?” he said. These are likely with this type of discussion, the title of the
to materially change the energy dynamics of debate actually masked some crucial under-
the whole world - another factor which is lying questions: will all oil companies, both
completely independent of the effects of the international and national, face extinction
National Oil Companies. before the first half of the 21st century is out
– and is the rise and dominance of the NOCs
what future? a threat or an opportunity? We leave it to you
Julian Rush, the Channel 4 Science corre- to decide.
spondent who acted as moderator for all the
geocontroversy debates, agreed that the whole
Marlan is former President of the AAPG, and has
geopolitical system will change as the econo- What do you think?
been honoured by the Houston Geological Society
as “A Living Legend in the Oil and Gas Business”. mies of China, India, Brazil and others grow Send your comments to
He was also knighted by President Biya of Camer- to equal and surpass the Western economies.
[email protected]
oon for his service to that country. He expects to see the oil and gas industry

history of oil
Miri 1910:
The Centenary of Oil Discovery
In 1910, now 100 years ago, the Shell/Royal Dutch Group drilled the first discovery well in Miri,
Sarawak. This oil discovery changed the face of Miri from a small fishery village into a mod-
ern city. But it took a lot more than luck to find and produce Sarawak’s only onshore oil field.
Photo: spOt_ON
Sibu is a riverine town in Sarawak, an important gateway to the interior.

Rasoul Sorkhabi
Sarawak is located on the northwest coast

of Borneo, the world’s third largest island. It
is rich in natural resources; indeed the word
“serawak” is a Malay word for the mineral
in Sarawak antimony. Paleolithic cavemen and hunter-

gatherer tribes first settled in Sarawak; the
oldest evidence includes a Homo sapiens skull
in the Niah Caves near Miri estimated to be
35,000 years old. Then about 4,500 years ago
waves of Austronesians, the ancestors of the
present Dayak peoples, came to this region.
Chinese and Malay traders visited Sarawak as
early as 900 A.D., brining Buddhist, Hindu
and Muslim traditions to Borneo. The Eu-
ropeans came in the 16th century. In 1512,
Antonio Pigafetta, an Italian companion
and chronicler of Ferdinand Magellan, wrote
an account of the region, or what he called
“Cerava.” In the 1820s, Dutch colonialists
began to exert their influence in Kalimantan,
the southern part of Borneo.
The modern history of Sarawak began in
1839 when James Brooke arrived in Sarawak.
Brooke was born in 1803 in India and was
an army officer of the British East India
Company. Upon his father’s death, James quit
his job and used his inheritance to purchase a
schooner, the Royalist, and sailed for Sarawak.
There he met with Rajah Muda Hashim,
who was governing the region on behalf of
his nephew, Sultan Omar Ali Saifuddin II
of Brunei. As Brooke’s party left Sarawak
for Singapore, Dayak pirates unsuccess-
fully attached his ship. In 1840, Rajah Muda
Hashim requested Brooke’s help to defeat a
Dayak revolt in Kuching, promising in return
to give him Kuching and enviros (later called
the First Division of Sarawak). Following this
success, Brooke was appointed the first White
Rajah of Sarawak in 1841 in exchange for a
small annual payment to the Sultan of Brunei.
Initially the British were not supportive of
Brooke, but after Brooke began to eradicate
piracy in South China Sea, and in 1846 the
Sultan of Brunei ceded the nearby island of
Labuan to the British Royal Navy as a base
for fighting the local pirates, relationships
between Brooke and Britain were cemented.
motivated by oil seeps

The first geological survey of Sarawak was
conducted by Hiram Williams in 1845.
Sarawak was also part of Alfred Russel Wal-
lace’s natural history exploration from 1854-
1862, which is recorded in his book The Malay
Archipelago (1869). Wallace refers to coal
mines in Sarawak: “These [coal mines] puzzle
the natives exceedingly, as they cannot under-
stand the extensive and costly preparations for
working coal, and cannot believe it is to be

history of oil
used only as fuel when wood is so abundant L 114°E 116°E
Illustration: Rasoul Sorkhabi)

A V
110°
THAILAND O IE
and so easily obtained.” The Italian biologist S
T
N 19th - early 20th century
CAMBODIA
Odoardo Beccari also explored Sarawak from
A
M ea PHILIPINES
Ch
inaS divisions of Borneo
1865-68, documented in his Nelle Foreste di h MINDANAO
ut
MALAY So Pacific
PENINSULA SABAH
Borneo (1902; Wanderings in the Great Forests

Ocean
SARAWAK Labuan SABAH
SULAWESI
SU
(BRITISH
of Borneo, 1904).
MA
KALIMANTAN
TR
NORTH
A
5°N
The Brooke administration was in business JAVA
BARAM
BORNEO)
engagements with companies in Scotland and Indian Ocean

SUMBAWA
DELTA
BRUNEI
TIMUR
Singapore. To better facilitate trade between Miri
Fifth
Sarawak and Britain, the Borneo Company South China Sea
Division
Limited was founded in London in 1856. In Batu Niah
Ba
ram
the following decades, surveyors working for Fourth Division KALIMANTAN
Riv
er
(DUTCH
this company carried out extensive mapping Bintulu BORNEO)
3°N 3°N
of Sarawak for its mineral and natural re- Tatau
Mukah
sources. (Henry Longhurst details this history
in his 1957 book, The Borneo Story: The First Third Division
Sibu
Hundred Years of the Borneo Company.) Rajang River
0 50 km
In 1864, Britain recognized Sarawak as an SARAWAK
Kuching
independent state. In 1868, James Brooke was
First Division Roads
succeeded by his nephew Charles Johnson Second Division
Boundaries
(later renamed Brooke), who ruled Sarawak 1°N
110°E 112°E 114°E 116°E
1°N
Rasoul Sorkhabi (2010)
until 1917 and, over time, extended his

domain to the present boundaries of Sarawak. A geographic map of Sarawak in Borneo showing the administrative divisions during the rule of the
White Rajahs of Sarawak (1841-1946).
In 1888, the White Rajah obtained British
protection for Sarawak. During Sir Charles
Brooke’ period surveys and exploration in
Photo: Rasoul Sorkhabi

Sarawak increased. Dr. T. Posewitz published
Borneo: Its Geology and Mineral Resources
(London, 1892), and Henry Ling North
produced a comprehensive description of The
Natives of Sarawak and British North Borneo
(London, 1896).
Like the other oil regions of the world, oil
seeps provided the first motivation for drilling
in Sarawak. Indeed, local inhabitants had ex-
tracted oil from hand-dug wells for centuries.
The 11th century Song Hui Yao, a historical
compilation of the Song Dynasty of China,
mentions imports of Borneo-camphor and
petroleum. In 1882, Claude Champion de
Crespigni, Resident (chief officer) of the
Fourth Division (Baram), listed in his report A view of Miri City from the Canada Hill.
to the Brooke Government 18 hand-dug oil
wells in the Miri area. Perhaps foreseeing the
value of what the locals called “minyak tanah”

or “earth oil,” De Crespigni recommended
in his 1884 journal that “the oil district near
the mouth of the Miri River should be thor-
oughly searched and reported on.” “Earth oil”
was used by local people for lighting lamps,
waterproofing boats, and medicinal purposes.
But De Crespigni’s words fell on deaf ears in
the Brooke government.
enter charles hose

Charles Hose was born in Hertfordshire,
England in 1863. He entered Jesus College,
Cambridge in 1884; but two years later
without completing his studies, the young
Hose (with help from his uncle, the Bishop of A view of Miri coastal town and South China Sea.

Dr. Charles Hose (1863-1929), a British colonial proceeding to Miri. Erb started an inde- year oil production reached 1315 bopd and
officer at the service (1884-1907) of pendent examination of the Miri further increased to 11,210 bopd in 1923.
Rajah Charles Brooke in Sarawak and area, mapping several anticlines In 1914, Sarawak Shell built the first
a pioneer explorer whose effort and
vision led to the discovery of the including his favorite “Miri refinery in Miri (it was relocated two years
Miri oil field in 1910. He was a Hill,” a northwest-dipping later to Lutong). Also in the same year, Shell
member of the Supreme Council asymmetrical anticline, laid a submarine pipeline from Tanjong
of Sarawak from 1904 and a with nearby oil seeps. In Lobang (south of Miri) to transport the crude
member of the Sarawak State July 1910, Erb reported to an offshore loading berth and tankers. The
Advisory Council (based in
Westminster, England) from
to the company his final sealine was about 2.5 miles long and six-
1919. A Fellow of the Royal geological map of the inches in diameter. During World War I
Geographical Society, the Miri area, and located (1914-18), the Miri field provided 5763 bopd
Zoological Society, and Je- the first exploratory well averaged over the year for the British Navy.
sus College, Hose authored at the crest of the Miri In May 1917, Sir Charles Brooke died
several important works on the
natural history and ethnology of
anticline about 150 m and his son Charles Vyner deWindt Brooke
Sarawak, including The Pagan above sea level. This sur- became the Third White Rajah of Sarawak
Tribes of Borneo (1912) and The prised people who had an- (he was knighted in 1927). Hose, who lived in
Field Book of a Jungle-Wallah (1929). ticipated the well to be drilled England, received a royalty on oil production
Illustration: Setsuko Yoshida
in an oil seep like all the previous from Miri, considerable revenue for the rest
hand-dug wells. Before the drilling of his life. He also gave lectures and published
could begin, Erb and Hose had to convince works about the natural history and culture in
Singapore) took up an administrative cadet- the local people that the well would not open Sarawak. (For his scholarly works, Cambridge
ship in Sarawak. Hose resided at Claudetown the underground cave that was, according to a awarded an honorary doctorate to Hose in
(today’s Marudi), and in 1888 he succeeded local legend, home for two evil tigers. 1900.) He died in 1929. Several species dis-
de Crespigny as Officer-in-Charge, and in The well was spudded in on 10 August 1910 covered from Borneo have been named after
1890 as Resident of Baram. using a rig composed of wooden derricks and him. As for Dr. Josef Erb: After the Miri field
Hose, a keen natural historian and explorer, the cable tool drilling (a technology that dates discovery, he continued his work for Shell in
picked up de Crespigny’s oil idea and began back to the Chinese in the fifth century for other parts of the world; he died in 1934 at
mapping of oil seeps in and around Miri. drilling for brine). The rig was engineered by the age of 60. Another Shell geologist who
He even offered awards to the locals who a Canadian, Mr. McAlpine; therefore, the hill made significant contributions in the late
would show him an oil seep. Hose reported has been historically called the “Canada Hill.” 1930s to the geology of the Miri field was P.
his findings to the Brooke government, but On 22 December 1910, the well struck light von Schumacher.
a consultant geologist from England gave a crude at 425 ft (130 m) depth. The reservoir Shell introduced rotary drilling in the Miri
negative opinion of oil exploration in Sarawak was Upper Miocene deltaic sandstone beds field in 1925. Peak production reached 15,211
because of poor logistic conditions. deposited by the ancestral Baram River. Initial bopd in 1929. By the end of 1940, the Miri
Hose kept the oil idea in the back of his production was only 83 barrels oil oil per day field had produced 7 million barrels of oil
mind. After serving as Resident of Sibu (the (bopd); after total production had reached and a total of 597 wells had been drilled in
Third Division of Sarawak) from 1904-07, 111,322 tons or 82,650 barrels, the well the field. And by then, Miri’s population had
he retired and returned to England, where was deepened to 1,096 ft (Miri-2 drilled in grown to 11,000, of whom nearly two-thirds
the aging Rajah Sir Charles Brooke was then 1911 was dry, but over time, numerous other were of Chinese ethnicity.
staying. Hose wrote to the Rajah seeking his wells (many deeper) produced from various In 1941, during the heyday of World War
permission to show his map of the oil seeps payzones in the field. II, the Brooke government obtained military
and the Miri oil samples to a petroleum The Sarawak Oilfield Ltd., a subsidiary of
company. After obtaining the Rajah’s per- the Shell/Royal Dutch Group, was established
mission, Hose went to London to discuss his to run the Miri operations (this company is
idea with the Anglo-Saxon Petroleum, a part now called Sarawak Shell Berhard, located in
of the Royal Dutch/Shell Group (formed Lutong, on the outskirts of Miri). Most of
in 1907). Mr. H.N. Benjamin and his col- the labor force to work in Miri came from
leagues at the company were interested in the Singapore.
idea, and the Rajah thus came to London to The 1910 discovery well was to change the
sign the first Sarawak Oil Mining Lease in face of Miri, or as Hose put it his 1927 book
1909. Fifty Years of Romance and Research or a Jungle-
Wallah at Large: “An area which was almost
shell and the discovery uninhabited was now a center of bustling life.”
well
Shell dispatched their senior geologist Dr. the rise, fall and rise of
Josef Theodor Erb (a Swiss geologist who the miri field
had joined the Royal Dutch in 1900) along Oil production from the Miri field rose from
with Hose to Miri. They traveled on the 5 bopd on average in 1911 to 523 bopd in
Trans-Siberian railway and by boat, arriving 1913 (from eight wells), when Shell also
in Kuching and calling on the Rajah, before began to export the Miri oil. The following Drilling Miri Well No. 1 in 1910.

history of oil

Map and Cross-section
of Miri, Sarawak
er
Miri Riv
A ield
il F
ri O
st
Mi
ru
Th
ill
daH
na
Ca
NW Miri River SE
Canada
ea A 607, 608, 573 249 490 590 Hill A'
aS
609 578 578 596 134
Miri Well
in iri No. 1 Top
h M A'
hC la
Loxostoma
a
ut Ku lt
So lF
au
san
d
ma pe
rC
Nor Up 1000
ll
Hi 0.5 d
ell san Top
Sh er C Setap Shale
Low and
.
ill F
Ts d
san 2000
ll H
t 456
us
d
san Th..
She
r 1 ang
Th No d
san aw
Illustration: Rasoul Sorkhabi
er K
ng 105 Inn
wa
d
t
1.0 san 3000
us
349
Ka
hr
t
rus
lT
rust
er
Hil
g Th
h t wan
gT Ou
and
da
7s r Ka
na
n No Oute
wa
Ca
4000
Ka
er zon
e
Inn 1.5 km ost
om
a1
Lox
Top 5000
(ft)
Oil accumulations
0 1km
0 1km Oil wells
A map and geologic cross-section of the Miri field,originally drawn by the Sarawak Shell geologist An outcrop of the Upper Miocene Miri Formation
P. von Schumacher in 1941 and revised by other geologists since then. in the town of Miri showing cross-bedding in the
deltaic sandstone.
help from Britain: Over 1,000 soldiers (the established in Kuching, and over the next 15
Thickness
Miri Field so-called 2/15th Punjab) under the command years its geologists produced valuable maps
(feet)
Stratigraphy Sandstone of Major C.M. Lane were stationed in Miri to and reports on various areas of Sarawak and
Payzones protect the oil field. Anticipating the Japanese Sabah. (This organization was the forerunner
invasion, they eventually shut in the Miri of the Minerals and Geoscience Department
Seria
Formation - wells and the Lutong refinery, and sent the of Malaysia).
Late Miocene equipment, skilled workers, and documents to Despite this progress, the Miri field
Singapore. This was part of the Allied forces’ remained unique because 46 onshore explor-
Top Nonion 3 Sand
Denial Scheme. On 19 December 1941 (only atory wells drilled in Sarawak Shell during the
980 nine days after the Perl Harbor attack), a 1910s-50s did not yield commercial accumu-
Pujut Shallow Sand ten-thousand-strong Japanese army occupied lations. (The sole exception was the Seria field
Sarawak following two days of fighting with a located in Brunei and discovered in 1929.)
500 small garrison of Dutch troops. This virtually In 1955 Sarawak Shell began marine
ended the Brooke dynasty’s hold on the region. seismic surveys. In 1957, the company relin-
Upper C Sand 660 Within two months of their occupation, the quished 75% of its land lease (about 36.650
Upper Miri Japanese were able to retrace the equipments square miles) in Sarawak, some eleven years
150
Formation -
Late Miocene and men in Singapore and bring them back to earlier than the concession deadline. The
Lower C Sand 630 Miri. Thus a new Japanese company, Nenryo company instead decided in 1960 to explore
300 Haikyu-sho (“Oil Supplying Services”), took offshore Sarawak. Initial drilling by the Orient
over the operations in Miri and produced Explorer (a jack-up drilling rig) in the Temana
T Sand 500 nearly 750,000 barrels of oil for the Japanese field hit oil in 1962 but not in commercial
100 army during World War II. (Of this volume, quantities (this was to be materialized in 1972
456 Sand 400 Miri Well No. 1 produced 4,371 barrels.) for Temana). In 1963, Shell put in place Sar-
100 When the war ended in September 1945, awak’s first floating rig Sidewinder, and then
No. 1 Sand 200 Miri had suffered severe damage and destruc- two semi-submersible mobile rigs, Alpha in
250 tion, mainly from the Allied forces’ bombings 1965 and Echo in 1968. Two wells drilled in
(part of the Denial Scheme). The Third White the offshore Baram field during 1963-64 were
Illustration: Rasoul Sorkhabi
105 Sand 500

Lower Miri
Rajah returned to Sarawak in 1946 but decided dry, but Baram-3 drilled by the Sidewinder hit
Formation - Miri Shale
to give the country to the British Crown. In oil in May 1964. Two years later, Alpha drilled
Late Miocene 1947, attempts were made to reconstruct and the first well in West Lutong; it struck oil too,
Setap Shale - reproduce oil from the Miri field. and the field came onstream in 1968. By the
Middle Miocene Setap Shale end of 1969, the Tukau, Bokor, Betty, Baronia,
1960s: offshore sarawak and Bakau oil and gas fields had joined
Stratigraphy of producing zones in the Miri oil and joining malaysia Sarawak Shell’s offshore portfolio.
field (modified from The Petroleum Geology and In 1949, the Geological Survey Depart- Meanwhile, the company had to live
Resources of Malaysia, Petronas, 1999) ment of British Territories in Borneo was with new political realities. In 1957, Malaya

An outcrop of the Upper Miocene Miri Formation in the town of Miri deposited by the paleo-Baram Delta. The human scale in the photo is the author
of this article.
obtained its independence from Britain, and

in August 1963, the then-British crown Bibliography
colonies of Sabah (British North Borneo) Three authors, Robert Payne (1960) Steven Runciman (1960), Cassandra Pybus (1996)
and Sarawak joined Malaya forming the have given the history of The White Rajahs of Sarawak, but none of these books
Federation of Malaysia. This took place just touches on the Miri oil discovery. James Jackson’s Sarawak (1968) provides some
four months after the death of the last (third) information on this subject. Sarawak Shell has published The Miri Story (Third edition,
White Rajah of Sarawak in London. 1990). In the past, Petronas and Sarawak Shell have organized several field trips and
guidebooks for Miri. The Petroleum Museum at Mir provides information to the visitors
the grand old lady if you happen to be in town. Two geologists Mario Wannier and Philip Lesslar have
On 31st October 1972, the Miri field was produced a wonderful DVD, Destination Miri: A Geological Tour (2006) available at
closed in. Since its beginning 61 years earlier, www.ecomedia-software.com
624 wells (a close spacing of 8.5-11 m) had
been drilled in the field and a total volume
80 million barrels of oil had been produced.

In 1972, only 90 wells were producing at
about 450 bopd. It was time for retirement.
Although there are still oil seeps in Miri, ur-
banization has discouraged further drilling.
Today, the 30-m high Miri Well No. 1
derrick, affectionately called the Grand Old
Lady, sits on top of the Canada Hill (renamed
Bukit Telaga Minyak in Malay in 2005), next
to the Petroleum Museum that was opened in
2005 and is funded by the Sarawak govern-
ment, Shell Malaysia, and Petronas.
An attraction site for tourists and school
students, the Grand Old Lady represents
an important monument in the history of
Sarawak as its first oil well that faithfully
produced 658,650 barrels of oil over a period
of six decades. (At the time of closing, it was
still pumping out 7 bopd). The Grand Old
Lady has also witnessed the growth of Miri
from a sleepy village in the 19th century to a
modern tourist city, with an airport, national A view of Miri Oil Well No. 1’s derrick, affectionately called the Grand Old Lady, now a historical
parks, beaches, and a population of 280,000. monument of Miri City, located near the Petroleum Museum.

geotourism
Cornwall’s
Geological Treasures
“Land’s End”: is there a more evocative place name in the world?
A visit to England’s furthest south-west corner reveals a land of extremes,
with a wildly beautiful coast, picturesque coves, bleak granite moorlands,
and some unusual and fascinating rocks.

Jane Whaley
Photo: Jane Whaley

The granite cliffs around Land’s End, England’s most westerly point, have many deep ravines
and caves carved by the sea along joints, faults and zones of mineralisation.

geotourism
The county of Cornwall, nearly 500km west

of London, is a holiday playground with a
stunning coastline, sandy beaches, picturesque
villages, wild high moors and hundreds of great
walks. For the geologist, however, south-west
Cornwall, in particular Land’s End and the
Lizard Peninsula, holds particular fascination.
The greatest influence on both the geology
and landscape of Cornwall was the Late Pa-
laeozoic Variscan orogeny, when a granite
batholith, which forms the deep core of the
Cornish peninsula, was emplaced, crucially
folding and metamorphosing the surround-
ing sediments. Almost simultaneously, a
tectonic front advancing from the south
produced the intriguingly named Lizard
Peninsula.
the lizard ophiolite

complex
Attractive though the idea is, the Lizard Pen- are rarely exposed, one of the only places in an ophiolite complex, but most do feature
insula is not named after some mythical giant where they can be clearly seen being at Lizard somewhere on the Lizard.
reptile, but is probably derived from a Cornish Point. The oldest rock in Cornwall is the 500
word for a high area or headland. Bounded to million year old Man of War gneiss, which ornamental serpentinite
the west, south and east by the sea and about forms small rock islets off Lizard Point. Much of the peninsula is dominated by origi-
15 km wide and 10 km deep, to the north the A classic ophiolite has at the base ultra- nally deeply buried mantle material such as
peninsula is almost separated from the rest of mafic rocks (those with little silica), repre- peridotite. This contains large amounts of
Cornwall by the Helford River. senting the mantle, overlain by layered intru- minerals like olivine and pyroxene, which have
The Lizard is geologically different from sive gabbros and volcanic dykes, with at the been altered to create the rock serpeninite – a
the rest of Cornwall because it is an ophio- top pillow lavas and sedimentary deposits rare example of metamorphism resulting from a
lite complex. A section of oceanic crust was formed on the ancient seafloor. The junction decrease, rather than an increase in temperature
thrust over continental crust after a collision between the gabbros and peridotite repre- and pressure. This rock, so named because it re-
between two continents, overlying metamor- sents the boundary between the mantle and sembles snake skin, is banded and streaked with
phosed mostly sedimentary rocks, originally oceanic crust, and is marked by a fundamental veins, and polishes to a very attractive red, green
slates, sandstones and volcanics, now changed change in seismic velocities due to the density and black rock. It was extremely popular for or-
into mica-schists and quartzite. These original contrast. Subsequent movement and faulting naments in Victorian times and is still quarried
rocks, known as the Old Lizard Head Series, means that these rocks are not always found in small quantities for tourist souvenirs.
Photo: Jane Whaley
Photo: Jane Whaley
Drowned river valleys like Helford are oases of wooded tranquillity and make a very pleasant change Lizard Point, where some of the oldest sediments
from the dramatic and windswept coast. in Cornwall are exposed, metamorphosed by the
overthrust Lizard ophiolite complex.

Photo: Jane Whaley
One of the best places to appreciate ser-
pentinite is Kynance Cove on the south-
west coast of the Lizard. A famous beauty
spot for centuries, it is approached down a
steep winding path which suddenly opens
onto the small bay, where the wet cliffs and
small shoreline rock islets shine red and green
where they have been polished by the sea.
One of the many ways in which geology
is responsible for the distinctive landscape of
the Lizard is the characteristic flora of slow
growing, low-lying heathland plants resulting
from the toxic nature of serpentinite to vegeta-
tion.
picturesque mullion cove

The Lizard actually comprises several fault
bounded slices of ophiolite. One large section
in the south-east, separated from the rest by a
major thrust fault, has the peridotite, gabbro
and igneous sections, although the transition
into pillow lavas and oceanic sediments is
missing. The contact between the mantle and
the oceanic crust is clearly seen over a 200m
stretch of beach at the village of Coverack,
where steeply dipping gabbro sheets, cut
through by basalt dykes, give way to ultra-
mafic rocks, having passed through a transi-
tion zone where the gabbro and mantle rocks
intermix.
Much of the rest of the peninsula to the
west of this thrust is dominated by peridotite
and serpentinite, but there are a number of
exposures of metamorphosed igneous basalt
or gabbro, called amphibolite or hornblende
schist. A faulted contact between hornblende
schist and serpentinite is visible at Mullion
Cove on the west coast of the Peninsula. This
pretty harbour, still used by local fishermen, has
an old lifeboat station – vital on a wild rocky
The clear turquoise waters at
coastline that has claimed thousands of lives
Photo: Jane Whaley

Kynance Cove on the Lizard
over the centuries. Peninsula are surrounded by
A short distance off Mullion Cove is cliffs and rock islands of beau-
Mullion Island, where there are excellent expo- tiful red and black serpentinite
sures of pillow lavas, formed when hot magma rock, the colours dependent
on the degree of magnetite re-
was extruded onto the ocean floor, as well as
leased during the alteration of
cherts and limestones, representing the top of the rock from the original olivine-
the ophiolite sequence. rich peridotite.
The contact between the Lizard ophiol-
ite complex and the surrounding material is
a fault zone running across the peninsula. It
is seen at Polurrian on the south-west coast,
where hornblende schists of the ophiolite
complex have been thrust against metamor-
phosed Devonian mudstones, and at Porthal-
low on the east coast, where serpentinised pe-
ridotite and a small section of the Old Lizard
Head schists are faulted over the Devonian Veins of granite intruding into
Meneage melange. metamorphosed schists at Cape
Cornwall

geotourism
granite at land’s end the transitional contact between the two can
The Tin Islands
Away from the Lizard Peninsula, the geology be clearly seen on the rocks of the small beach.
of south-west Cornwall is dominated by Another intriguing exposure of the Cornish granite contains high amounts
marine clastic rocks of the Middle Devonian granite contact is at Porthmeor Cove, 15 of tin, tungsten and copper, leached out
Gramscatho group, predominantly siltstones km north-east of Land’s End, which like from the cooling magma through fissures
and mudstones. The exact age of these rocks Cape Cornwall has been designated an SSSI in the granite and faults in the surround-
has been the subject of much debate, primar- (Site of Special Scientific Interest). On the ing country rock, eventually solidifying in
ily because they have undergone changes northern side of this beautiful remote bay the concentrated lodes of minerals. Metals,
both from tectonic pressure which induced roof of the granite intrusion is exposed at the principally copper, zinc and lead, were
folding and faulting, and as a result of massive surface, with veins of fine and coarse grained also leached from the surrounding rocks
and incorporated into the lode system.
granite intrusions near the end of the Variscan igneous rocks intruding into the surround-
As a result, metal mining was of great
orogeny, 300 Million years ago. ing rocks, which are extensively veined and
economic importance to this area, which
The granite was emplaced at great depth, altered.
due to its poor agricultural land and
but subsequent erosion has exposed the
distance from major population centres
granite in the form of large areas of relatively walking west cornwall was relatively impoverished until the influx
bleak uplands, seen in Cornwall at Bodmin If large quantities of Mesozoic and younger of tourism.
Moor, Land’s End, and the Isles of Scilly, as sediments ever overlaid the Cornish Penin- Cornish tin found in streams was first
well as smaller exposures such as St. Michael’s sula, there is little evidence of them now. The used in prehistoric times for the production
Mount. The granite is predominantly a coarse greatest changes made to the landscape in more of bronze – in fact, metal traders from the
crystalline rock, although there are occasional recent times have been as a result of changes Mediterranean called Britain the ‘Cassit-
intrusions of finer grained material, and there in sea level, with erosion platforms and raised erides’, or ‘Tin Islands’. In the 16th century
are also dykes and sills of igneous material beaches visible at several levels. This has also miners moved underground to seek out the
running into the surrounding rock. As the hot created another major feature of the Cornish source lodes, particularly in the Land’s End
magma intruded into this sedimentary rock, landscape, in the form of drowned river valleys granite area. Copper mining developed
the heat and pressure altered them signifi- or rias, such as the Fal estuary and the pictur- in the 18th century, and for a short while
cantly, creating a ring of transformed rocks, esque, tree-lined Helford River. in the 1830’s Cornwall dominated world
the ‘metamorphic aureole’, around the granite. By far the best way to appreciate the geology copper production, although tin remained
There are some excellent exposures of the of Cornwall is to walk the coast, and it is possible an important ore. Iron and silver were
contact between the granite and the metamor- to do just that using the South West Coast Path also mined in small quantities. Flooding
phosed sediments on the Land’s End Penin- National Trail, which stretches 1,000 km from of the mines by groundwater meant that
sula. Cape Cornwall, 7km north of Land’s Somerset to Dorset and includes the entire the invention of the steam driven beam
End, is composed of Devonian Mylor Slates, coast of Cornwall. Much of it passes along engine was a major factor in the devel-
opment of the industry, and at its height
but in a cove just to the south of the headland the top of the cliffs and it includes all the sites
there were more than 600 steam engines
these have been metamorphosed into hornfels discussed here, plus many more, with equally
operating in Cornwall. The last working
by contact with the solidifying magma, and gorgeous scenery and fascinating geology.
tin mine in Cornwall closed in 1998.
Photo: Jane Whaley
Photo: Jane Whaley
Porthmeor Cove is the only location in SW England where a fully exposed granite cupola can be seen. The Cornish countryside, particularly the bleak
Extensive veins and dykes intrude into the metamorphosed Devonian slates of the headland and the dark granite moorlands, is dotted with abandoned
metabasic rock immediately surrounding the granite. engine houses, remnants of the once thriving
mining industry.

THE HISTORY OF YOUR
INDUSTRY IS THE HISTORY
OF YOUR WORLD
Why, where and when?
The GEO ExPro “history of oil” archive tells the stories that will help you
continue your journey of curiosity as you continue to search for oil and gas.
Log on to www. geoexpro.com/history to learn more.

ENERGY STATISTICS
Jarand Rystad (M.Sc.)
Managing Partner Rystad Energy
Majors Catching Up in US Shale Gas

Shale gas is one way for 20% through some material ac- USD 280 million deal. This will
Photo: Tuhrfisch
the supermajors to avoid quisition. ExxonMobil’s USD 41 give ENI access to up to 10,000
the production decline billion acquisition of XTO is the boepd of gas production in 2010,
most prominent, immediately in- however with a quite flat produc-
experienced over the last creasing the company’s 2010 pro- tion profile going forward. And
5 years. duction by around 500,000 boepd, Total came in late in 2009 with its
33% of which is shale gas. The acquisition of 25% of Chesapeakes
The supermajors (ExxonMobil, growth potential from this port- Barnett shale portfolio for USD
Shell, BP, Chevron, ConocoPhil- folio is a further 30,000 boepd per 2.25 billion. This would immedi-
lips, Total and ENI) have not been year to 2020, and ExxonMobil ately give Total 25,000 boepd in
able to deliver production growth will then produce 800,000 boepd production, with the potential to
for the last five years. On average, from the XTO portfolio, of which grow towards 40,000 boepd in the
their production has declined 60% will come from shale gas. decade to come.
by 1.5% per year since 2005, an BP was, however, the first major ConocoPhillips has also taken
annual reduction of over 300,000 to move into shale gas, with two shale positions in the Eagle Ford
boepd as a group. deals in 2008 of in total USD 3.7 shale in southern Texas and Horn
Going forward, growth pros- billion, buying into Cheaspeake’s River shale in Canada. Only
pects for the supermajors seem interests in the Woodford (100%) Chevron among the supermajors
somewhat better, with deep water and Fayetteville (25%) shales. had been late to the party and has
Drilling for gas in the Marcellus
production as the main contribu- BP’s 2010, production from these currently no shale gas position in Shale.
tor, offering nearly 200,000 boepd shales are expected to be slightly US. However, they have been the
in yearly growth for the seven above 20,000 boepd in shale gas early movers into shale gas posi- particularly in the market or en-
majors to 2020. Oil sands produc- production, but it could grow tions in Canada and Poland. vironment. Of this, ExxonMobil
tion, where the same companies towards 45,000 boepd by 2020. In summary, the supermajors will have 60% of the supermajors’
have a 30% market share, has the Shell bought into 50% of have aggressively been building joint shale gas production. Thus,
potential to contribute another Encana’s portfolio in Haynesville up their share of the shale gas pro- we would not be surprised to see
100,000 boepd to them as a group in 2009, with a 2010 production duction over the last two years. In further acquisitions into shale gas
in the same period. In total, the potential at 50,000 boepd, and 2010 their share is expected to be plays by other majors. USD 60
growth from these two segments prospects to grow to 150,000 275-300,000 boepd, growing by billion in acquisitions are needed
should with some margin balance boepd by 2020. Eni got into 27.5% 500,000 boepd to 775,000 boepd to reach 30% market share. This
out the decline in the rest of the of Quicksilver’s Barnett shale pro- in 2020 if the expansion ambitions might be the most accessible way
portfolio. duction in May 2009 in a modest do not meet any major obstacles, to arrest portfolio decline.
However, with the recent
advances in shale gas in the
United States, the majors have
Illustration: Rystad Energy

an opportunity to see additional North American Shale gas production 2010 and 2020, as of March 2010
Kboe/d
development, making real growth
more likely in the decade to come. ExxonMobil
Our bottom-up assessment of
the potential of North American
Shell
shale gas in total is a yearly growth
of 400,000 boepd to 2020. If the
supermajors get a 30% market BP
share in this play as well, as they
have for oil sands, this would add Total
another 120,000 boepd in pro-
duction per year, or more than
the growth from oil sands in the ConocoPhillips
same period, and at a lower cost
per flowing barrel. ENI
However, to do this the su-
permajors need to catch up. Two Chevron
years ago, their market share in
Source: Rystad Energy
shale gas was close to zero, but
it has recently climbed to above

T O P I C G Eexploration
global O S C I E N C E E Xupdate
PLAINED
GHANA:
Tweneboa-2 Confirms Major Field
Ghana’s exciting story continues with the To add to the good news for this cash- situated in a water depth of 1,878 m, about
announcement in January 2010 that the strapped country, a further promising dis- 100km south of the port of Takoradi, and is
Tweneboa-2 appraisal well in the Deepwa- covery was made by Vanco, operator of the deepest water exploration well drilled to
ter Tano block has identified a significant the Cape Three Points Deep Block, which date in the Ghanaian Tano Basin. The dis-
hydrocarbon column, in communication confirmed at the end of February that the covery is in a Cenomanian/Albian faulted
with Tweneboa-1, 6.5 km to the north-west. Dzata-1 well found a 94m hydrocarbon anticlinal trap, at a depth of over 3,600m,
This confirms Tweneboa as major oil and column with stacked oil and gas zones, in- and appears to open a new prospective
gas-condensate field. The well found a gross cluding good quality light oil. Dzata-1 is trend in the eastern part of the prolific Tano
reservoir interval of 153m, including 32m Basin. Vanco have a 28.34% stake, shared
of net hydrocarbon pay, in stacked reservoir with Lukoil at 56.66% and GNPC, the state
Image: Lukoil
sandstones, part of an extensive turbidite fan oil company, which holds a 15% carried
system, confirming pre-drill expectations of interest.
a down-dip oil accumulation in an expanded Offshore Ghana has been the site of several
sand section. The field lies at a depth of major discoveries in recent years, including
3,850m in over 1,300m of water, 50km from the giant Jubilee Field, which has estimated
the coast and close to the border with Cote upside reserves of nearly two billion barrels.
D’Ivoire. Tullow operates the Deepwater The country is rapidly pushing towards its
Tano licence and is partnered by Kosmos first offshore oil production, anticipated
Energy, Anadarko, Sabre Oil & Gas, and the possibly later this year.
Ghana National Petroleum Corporation.
MOZAMBIQUE:
WINDJAM
MER DIS
Offshore COVERY
M
Image: Anadarko Petroleum Corp.

ozambiqu
e
1st Deepwater discovery

OFFSHORE
AREA 1
PROSPECT
In mid February, Anadarko announced the ing Windjammer the drillship, the 2010 EXPL
S
ORATION
DRLG
first deepwater discovery off the East African Belford Dolphin, will move to the
country of Mozambique. Although still Collier prospect, about 80 km to OF
OFFS
AP
APC
FSHO
Op
C Op
HORE
HO
pera
e
RE AR
RE
rator
era
AREA
tor
tor
(AP
(APC
(AP EA 11
drilling at over 4,200m, it was announced the south. C WI
WI 43
43%)%)
that the Windjammer new field wildcat in Anadarko, the operator, have 3D Outline
the frontier Rovuma Basin had encountered a 43% interest in the well, IA
ZAN
365 m of gross pay and 145m net of high while BPRL Ventures Mo- TAN UE
BIQ W
ZAM Win indj
d am
djja
ammmmer
MO er
quality, gas-bearing sands. Windjammer lies zambique has 11.7%, Cove Di
Disc
sc
scoov
over
ve yy
erry
in 1,460m of water, about 50 km east of the Energy Mozambique Rovuma

coast. Offshore, 10%, Mitsui E&P
Anadarko has acreage covering 10,500 km2 Mozambique Area 1, 23.5%
of the Rovuma Basin in north-east Mozam- and Videocon Mozambique
bique, both on and offshore. It has identified Rovuma 1, 11.75%. Co
C
Co llie
oll
llierr
ier
50 leads and prospects with seven different Although hydrocarbons 0

20
play types in the basin, but this is the first have been found in Mozam-
Kilometers
well it has drilled, having previously under- bique from the beginning
taken an extensive 3D seismic campaign, the of the 20th century, modern
biggest such project in the company’s history. exploration began after independence in
Anadarko believe that the Rovuma Basin is 1975, with the acquisition of new data in Onshore well Mocimboa , drilled in 1986,
one of the last under-explored Tertiary deltas 1981. The Rovuma Basin has long been also had promising shows. The Pande and
with a proven petroleum system and that the considered very prospective, and the Mnazy Temane gas fields were found in the 1960s
area has geological similarities to the Gulf Bay gas field was discovered in 1981 on the and briefly came on stream in 2004, but only
of Mexico. It will drill several more wells in Tanzania side of the basin, about 60 km a very small amount is being produced at the
the offshore basin this year. After complet- north-west of the Windjammer discovery. moment.

The worlds most significant discoveries brought to you by IHS and GEO ExPro Jane Whaley
FALKLANDS:
Trouble Brewing?
Oil exploration in the South Atlantic has been tested the same play concept, and a number of the drilling of this well so topical. Less than 30
hitting the headlines recently, but for all the promising play concepts and targets remain to years ago the two countries went to war over the
wrong reasons. On 22nd February 2010 Desire be tested in the basin. sovereignty of the Falklands - or the Malvinas,
Petroleum, a company set up in 1996 exclusively It is this potential for major discoveries in to the Argentines – and over 900 people lost
to explore for oil in the North Falklands Basin, waters which are already a point of dispute their lives in the process. Argentina has pro-
announced that it had spudded an exploration between Argentina and the UK which makes tested to the UK over the renewed drilling.
well, Liz 14 /19-A, in relatively shallow water
Photo: Allan White/Falkland Islands Tourist Board

about 100 km north of the Falkland Islands.
The well is being drilled to an estimated target
depth of 3,500 m and drilling operations are
expected to take approximately 30 days. Mean
recoverable reserves for the prospect are 281
MMbo.
The North Falkland Basin is thought to
contain a late Jurassic to early Cretaceous lacus-
trine source rock of world-class quality, which it
has been estimated may have expelled as much
as 100 Bbo into the surrounding sediments,
with hydrocarbons trapped in Cretaceous flu-
vio-lacustrine and lacustrine sands. Only six
wells have been drilled in the basin, all in 1998, Pebble Island, part of the West Falkland group of islands, is composed of Silurian to Devonian sandstone
five of which found hydrocarbons. All of these and mudstone.
RUSSIA: Remote Discovery

Russia’s largest oil producer, Rosneft, recently tion challenges before coming on stream. commercial production only started in 2008.
announced the discovery of a large new oil field Savostyanov is in the Mogdinsky and East This was from Verkhnechonskoye oil and con-
in East Siberia, one of the most remote areas in Sugdinsky license areas in Katangsky District densate field, 80km from Savostyanov, which
the world. The discovery, named Savostyanov, of Irkutsk Region, 4,000 km east of Moscow with reported recoverable reserves of almost
after a senior Russian geophysicist who died and over 1,000 km north of the regional capital, 1,5 Bboe. It is believed to be the largest field
last year, is reported to have recoverable reserves Irkutsk. East Siberia is reported to have an in Eastern Siberia. It has structurally complex
of close to 1,2 Bb of oil. As with other fields in available resource potential of over 18 Bboe. pre-Cambrian reservoirs overlain by significant
the area, the geology is structurally complicated Exploration in this area started in 1980, but due salt deposits, and only in recent years have the
and the field will present a number of produc- to its remoteness and lack of infrastructure, first engineering techniques required to develop the
field, such as high-angle and horizontal wells,
been available.
Image: BP

The new discovery will also benefit from
the construction of the East Siberia — Pacific
Ocean (ESPO) Oil Pipeline to export crude

oil from Russia to the Asian Pacific markets
of Japan, China and Korea. The first stage of

this line, which lies 150km from the field, was

completed in 2009.

To counteract the remote location and lack
of infrastructure, Russia has introduced fiscal

incentives to encourage oil companies to
explore in the area, including a zero export duty
for 13 East Siberian fields.

Rosneft’s new discovery lies 80 km from the BP/

TNK gas condensate field, Verkhnechonskoye.

Q&A Thomas Smith
Understanding Our Energy Future

Dr. Scott Tinker travels the world extensively, speaking on his favorite subjects; global energy, the
environment, the economy and education. Now, he is making a feature length documentary on
global energy with the working title “The Bridge” and was kind enough to give us a sneak preview.
What motivated you to produce a documentary
Photo: Allyson Tinker

on global energy? Scott W. Tinker was
When being interviewed for a PBS docu- born into the oil and
gas business in the
mentary a couple of years ago, the producer-
Illinois Basin and had a
director encouraged me to reach a broader 17-year industry career
audience and emphasized the need for a that included explora-
balanced documentary on energy. I have been tion, production and
speaking about energy issues for so many research. He joined
the University of Texas
years and this project is really a passion; my
at Austin in 2000
“book”, if you will. where he is the Direc-
tor of the Bureau of
What is the central purpose of this film? Economic Geology,
Educating the public about the realities State Geologist of
Texas, Allay Endowed
of energy so that they can participate in the
Chair in the Jackson
solution and make informed, wise energy School, and Director of
decisions about the way they live, the products the Advanced Energy
they buy, and the policies they vote for – which Consortium. Dr. Tinker
in turn will help enable a secure energy future is the past President
of the Association of
for all.
American State Geolo-
gists and the American
What is our energy bridge to the future? Association of Petro-
Economic prosperity allows for environ- leum Geologists.
mental investment. Both depend on secure
energy, which means available, affordable,
reliable and clean. Today, fossil fuels represent
87% of our energy consumption, and because
coal, natural gas and even oil are still relatively
abundant and offer high energy density, they How do you hope to convey this to the public? energy demand is unfathomable. To meet the
will be around for a while. They key is to stabil- The film will travel to the premiere energy demand it will take tremendous infrastructure,
ize the supply of fossil fuels and use it more production sites worldwide and take us materials and investment. The challenge is to
efficiently and cleanly as a stable foundation right inside the major facilities across all be able to move energy from the source of the
in the bridge to the alternative energy future. energy sectors. We have interviewed CEOs fuel to the end user.
This film and companion website will educate of leading energy companies, high ranking
the public about the transition from fossil government officials, academic leaders and Any big surprises?
fuels to alternatives: how long it will take; globally recognized energy experts. They will Geothermal surprised me; I see interest-
what it will look like; what choices will make be linked together with scenes that intro- ing potential here. I think the viewer will be
this transition a smooth and gradual success; duce energy issues relevant to every viewer, surprised by the magnitude of the natural gas
and which good intentions could have the made clear through unexpected visuals and resource, particularly unconventional and be
opposite effect. stories. amazed by the rapid growth in wind.
What will be our biggest challenge along in the Of the CEO’s, presidents, ministers, scientists, Just what does our energy future look like?
way? and engineers from all over the world, what I am very optimistic. We have vast, diverse
We use energy for transport, heating, and insights toward world energy have you learned energy resources available to us. We are facing
electricity. Transportation fuels are liquid from these interviews so far? increasing demand, mostly because there are
and come mostly from conventional oil. That Three things stand out. One is energy more people and developing nations using
lack of diversity offers the biggest challenge. efficiency. Everyone agrees we waste far more energy. Energy of the future can be
A great opportunity lies in the electricity too much of our resources. A second is that different from that of the past if we become
sector, which is a much more diverse portfolio nations and states are going to use the energy broadly educated; people are capable of
of fuels including coal, natural gas, nuclear, that they have, be it nuclear, wind, coal, remarkable invention and have a great ability
hydro, wind, solar, geothermal, waves, tides and beyond. For better or worse, this is still to adapt and change.
and more. Diversity is good; it is secure. driven largely economics. Finally, the scale of

HOT
T O P I C GSPOT
EOSCIENCE EXPLAINED Thomas Smith
GOM:
More Giant Oil Discoveries
Last year, the Keathley Canyon area yielded three of the world’s top oil finds, bringing in high
leasing bids and continued drilling activity.
What started in 2001 with the Baha #2 well larger than the 500 MMb Jack discovery BP is already the biggest producer in the
discovering oil in a thick Paleogene sub- they made in 2004. The Jack discovery is Gulf of Mexico and these latest discover-
marine turbidite sand sequence continues in the same trend, 70 km east of Buckskin. ies will help them boost output by 50% to
across the Gulf of Mexico (see GEO ExPro Chevron plans to drill several appraisal wells 600,000 boe a day by 2020. The Keathley
Vol. 4, No. 1 pp 30-33). The Lower Tertiary over the next two years to further evaluate Canyon discoveries will also keep the GOM
Wilcox stratigraphic trend in the deepwater the extent of the discovery. a leading oil producing area for the U.S. cur-
Gulf may exceed all expectations. Only a The second discovery was announced in rently at 25% of the total domestic produc-
couple of years ago, this petroleum system’s September 2009 by BP. According to a BP tion (as of March, 2009, 1.3 MMbopd).
potential was pegged at around 15 Bbo spokesman, the Tiber prospect on Block Within the next 10 years, Minerals Man-
(2.4 Bm³) recoverable. The recent Keathley 102 “will be bigger” than the 2006 Kaskida agement Service expects GOM production
Canyon discoveries could exceed the size of discovery which is estimated to hold 3 Bbo. to be between 1.6 and 1.9 MMbopd.
previously discovered fields in the trend. The Tiber well is the deepest oil discovery Finally, Anadarko (a 25% owner in the
well drilled to date at 10,685 m total depth. Kaskida discovery) confirmed its Lucius
Three significant discoveries With the Tiber discovery, BP is building prospect discovery with a sidetrack ap-
The first major oil discovery of 2009 for on their 2006 Kaskida discovery, the first praisal well located on Block 875. The
the Gulf of Mexico occurred on Keathley Lower Tertiary discovery in the Keathley sidetrack was drilled up dip and 975 m
Canyon Block 872 where the well drilled Canyon. The Kaskida discovery encoun- south of the discovery well and encoun-
on the Buckskin prospect hit over 92 m of tered 244 m of hydrocarbon-bearing sand. tered almost 183 m of high-quality oil pay
net pay in the Lower Tertiary. Repsol, with They recently announced that their ap- and additional gas-condensate pay, both in
a 12.5% working interest, is the current praisal well at Kaskida tested similar res- sub-salt Pliocene and Miocene sands. The
operator. Chevron, with a 55% working ervoirs 8,000 m west of the discovery well discovery, announced in December, 2009,
interest, will become operator for future op- which further confirms a wide reaching reportedly found over 61 m of net pay in a
erations. Lower Tertiary play. They are shooting wide three-way closure against salt. Anadarko is
Chevron claims that the recent Buckskin azimuth seismic over the discovery and will still conducting additional appraisal activity
discovery may be “very significant” and drill another test in 2011. but contends “this is a major discovery with
substantial resource potential.”
Renewed interest
The deep, pre-salt play off Brazil has been
receiving most of the exploration attention
over the past several years. These discover-
ies have served notice that the deepwater
Gulf of Mexico is still a very attractive play.
At the Western Gulf of Mexico Oil and
Gas Lease Sale 210 in August, 2009, BP
added additional emphasis to the region
with a high bid of almost USD 30 million
for Keathley Canyon, Block 96. The tract is
located in 1,504 m of water and received
three bids. Twenty-seven companies sub-
mitted bids for 162 tracts totalling over
$115 million. Both BP and Chevron are
continuing to expand their lease holdings
in the area obtaining 34 and 25 tracts re-
spectively in the sale. The next lease sale is
slated for the Central Gulf of Mexico off
Louisiana, Mississippi, and Alabama on
March 17, 2010.

GLOBAL RESOURCE MANAGEMENT
HOT SPOT Halfdan
Rasoul Sorkhabi
Carstens
Unable to Replace Production

Offshore Norway, more oil and gas is now being produced than found.
While many discoveries are being made, most of them are small.
The Norwegian Petroleum Directorate (NPD) and delivered. The deficit is a major concern
recently released their updated resource for the government and is the reason for the
account as of December 31st 2009. very favourable fiscal terms for companies not
While some 33 billion barrels (5.3 Bm3) having production.
of oil equivalents have been produced over So far, the success is not overwhelming.
almost 40 years (it all started with Ekofisk in While the authorities’ goal is to mature 5 Bbo
CONVERSION FACTORS 1971), as much 73 Bboe (11.7 Bm3) may still (800 Bm3) as reserves over the ten years prior
be left in the ground. Some of this, roughly to 2015, only 400 MMb (64 MMm3) of oil
30 Bboe (4.8 Bm3), is proven (“total remain- were entered as reserves in 2009. Accumulat-
Crude oil ing proven recoverable resources”) and will be ed gross oil reserve growth since 2005 is only
1 m3 = 6.29 barrels produced from existing fields and discoveries. 37 per cent of the authorities’ goal, which is
1 barrel = 0.159 m3 The rest has to be found through exploration under the linear trend to reach this target.
1 tonne = 7,49 barrels in mature and frontier regions. The resource estimates are based on reports
For that purpose, some 50+ oil companies submitted annually by the operating compa-
Natural gas are willing to invest. This includes some of the nies, NPD evaluations for fields and discov-
1 m = 35.3 ft3
3
supermajors, like BP and Shell, several majors eries and NPD estimates of undiscovered re-
1 ft = 0.028 m3
3
such as Statoil and Talisman, and a huge pack sources. In the figure below separate estimates
of smaller companies that are taking advantage are, for geological reasons, given for the North
Energy of the Norwegian tax system which favours Sea, the Norwegian Sea and the Barents Sea.
1000 m gas = 1 m3 o.e
3
companies not yet having producing assets. Many countries ought to look at NPD as a
1 tonne NGL = 1.9 m3 o.e. This year’s report shows that 28 discoveries role model. In putting together these numbers,
were made in 2009. The volumes in most of the government gets a superb overview of the
Numbers the new discoveries are, however, between 2 resource situation. And it can only be done
Million = 1 x 106 MMboe and 240 MMboe. The expected total by having detailed geological knowledge
Billion = 1 x 109 volume of the new discoveries is estimated at combined with a proper understanding of
Trillion = 1 x 1012 some 900 MMboe, of which the larger part is reservoir characteristics.
gas. This figure compares with 1.5 Bboe sold
Supergiant field Distribution of the total resources

12 11.7
Recoverable reserves > 5 billion (13.4 bill. Sm3 o.e.)
11
barrels (800 million Sm3) of oil 10
equivalents 9 Low estimate (P90) to the left,
mean value and high estimate (P10)
8 8.1 to the right
Giant field 7
6 6.1
24 %
40 %
Recoverable reserves > 500 million 5 5.3 5.4
4.6 5%
barrels (80 million Sm3) 4
2%
3.4
Remaining
3 %
of oil equivalents 2.6 5
2 2.1 24 %
Bill. Sm3 o.e.
1
Major field
Undiscovered resources
Produced
Recoverable reserves > 100 million -1 1.4 Contingent resources in discoveries

-2 Gas
barrels (16 million Sm3) Possible measures for increased recovery
Contingent resources in fields
-3
of oil equivalents -4
3.9 Reserves
Sold and delivered
Liquid*
-5 5.3
Total * Liquid includes oil, NGL and condensate
resources
This is the key figure in the resource assessment of the Norwegian continental shelf as presented
OD 1002012 by
Historic oil price the Norwegian Petroleum Directorate. While more than 30 Bboe may still be left in the ground to be
produced, the uncertainty should not be overlooked. The P90 and P10 estimates have a difference of
$2004/barrel 40 Bboe (6.4 Bm3). The high estimate of 73 Bboe (11.7 Bm3) is certainly an attractive proposition.
100
Proved reserves
50 ”The estimated quantities of oil which geological and engineering data demonstrate with reason-
able certainty to be recoverable in future years from known reservoirs under current economic and
operating conditions.”
0 BP Statistical Review of World Energy
1861 1900 1950 2000

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VOL. 7, NO.

GEOSCIENCE & TECHNOLOGY EXPLAINED

Finally - An answer for getting reservoir seismic

GEO EXPRO VOL. 7, NO. 2 – 2010

“Coming Soon to an Oilfield Near You!”

sb_res_ad_210x280mm.indd 1 30/9/09 12:19:15

GEOLOGY GEOPHYSICS RESERVOIR MANAGEMENT

Illustration: IHS Energy

Australia’s Bight Basin

32 Recent Advances in Technology 20

44 History of oil: Sarawak

The first regionalThe

Courtesy: Geoscience Australia

50 Geotourism: Cornwall Underlying

images of untested petroleum systems.

See full story starting on page 39.

58 Global Exploration Update

2009 Offshore Petroleum

64 Global Resource Management: Iraq

Geoscience Explained: Seismic Fold-out

Halfdan Carstens geo expro is published bimonthly

Photo courtesy: Williston Economic

geo expro march 2010 5

Huge Blocks Offered in the Baffin Bay ABBREVIATIONS

Reserves and resources

recoverable with a 90% probability

recoverable with a 10% probability

6 geo expro march 2010

The World’s Deepest Exploration Well

8 geo expro march 2010

Training based on competency

The full value of these Plato

ence. It is truly the first one-stop

10 geo expro march 2010

Choice in E&P Data Provision

“Feedback from our clients

12 geo expro march 2010

From Source to Sink Quaternary

Norwegian-Greenland Sea starts opening

North Sea rifting

Central Atlantic starts opening

*The Big Five Extinction Events

margin stretches for sitionE

the North Sea in the served stratal ar-

tensional/ transtensional basins, of high quality subsurface case 416

The Great Unconformity 542

14 geo expro march 2010

Seismic off the U.S East Coast New software from

RMS 2010 - new release Sysdrill - new release

Arctic Energy, Tromsø, Norway, May 31-June 4, 2010

16 geo expro march 2010

Egypt - onshore seismic Closing Sale

system has been designed and Z Land is one of three entirely

ARKeX has recently completed the recently announced 10th

GEO ExPro 2010

study clearly demonstrates as yet unrecognised play

The Importa IOR

Turonian Source Rocks

Six seismic foldouts.