Lecture 15

Headlines:
Alpha Wildcat Finds Thick Oil Zone!
Block
7

Salt
Discovery Diapir
Well

Block
Bonanza Basin 8

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Our Exploration Flowchart

Management
Identify
Approved
Opportunities Capture Wildcat Well
Prime Areas
Acquire
Seismic Data Wildcat
Process Drilled
Seismic Data
Interpret
Seismic Data
Assess
Prospects
Success

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ExxonMobil L 15 – Next
L 15 – Beyond Steps
Exploration
Our Assessment Results

Alpha Prospect – Main Compartment - Risked

1.0
100
0.8
Gas Only
62 % COS
Economic Minimum

0.6 Gas Cap & Oil Leg

51 % Chance of
Finding More
0.4
Than the
Oil Only Economic
0.2 Minimum

0.0

0 100 200 300 400 500

Million Oil Equivalent Barrels

62% Chance to find any hydrocarbons

51% Chance to find 100 MBOE
5% Chance to find 400 MBOE
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Congratulations! A Huge Success

Alpha Prospect
YOUR exploration well
Block on the Alpha prospect
7
discovered an
estimated 325 MBO

Salt
Discovery Diapir Alpha Prospect – Main Compartment - Risked
Well
1.0
100
0.8
Block Gas Only
62 % COS
Bonanza Basin
Economic Minimum
8 0.6 Gas Cap & Oil Leg

0.4
Oil Only
0.2

0.0

0 100 200 300 400 500

Million Oil Equivalent Barrels

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What’s Next?
• Exploration would drill one or two confirmation wells to verify
there is enough HCs to make some money (Value > Costs)

• If results continue to be good, the FIELD would pass on to

Development or Production people

Identify
Opportunities Capture
Prime Areas
Acquire
Seismic Data Drill
Process Wildcats
Seismic Data
Interpret
Success
Seismic Data
Assess Confirmation
Prospects Well

Uneconomic Success

To Development
Or Production
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Delineation Well

Alpha Prospect 6 Months later…

Block A delineation well is
7
Delineation completed to the NE
Well
An OWC is found at
4500 m – the same
Salt depth as in the
Discovery Diapir discovery well
Well
The porosity is slightly
Block better – 26% versus
Bonanza Basin 8 23% in the discovery
well

The delineation well has confirmed enough oil to

merit field development – EUR now set at 348 MBO
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G&G in Development

• Exploration has drilled a discovery and a delineation well.

• The ultimate recover for Alpha is estimated to be 338 MBO,
which greatly exceeds the economic threshold of 100 MBO

Questions:
• Can we refine our picture of the distribution of oil at
Alpha?
• Is the reservoir a single unit, or is it segmented
(separate regions to drain)?
• How many wells and where should they be drilled?
• What sort of facilities (platform?) will we need?
• How can we speed-up time to first oil?
• What uncertainties remain?

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We Need More Detail

Reservoir Map Reservoir Map

at the end of at the end of
Exploration Development
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Some Questions …

#2

#3

Why did they drill well #3?

#4

#1 Why did they drill well #4?

Where would you place well #5?

Why?

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Data for Development
We may need better quality data to address development needs

Data Used for Exploration Data Reprocessed or

Reshot for Development
And Production
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G&G in Production

• Production has begun at Alpha.

• The initial production rates are as expected.

Questions:
• How should we manage the field so as to maximize
our investments?
• Can we monitor how oil is being swept out of the
reservoir?
• What about injection wells and enhanced recovery?
• Is there more oil in the vicinity – either at deeper
depths or in nearby traps?
• Can we build a computer model of the field that
matches existing production data? If so, we can test
future recovery with different drilling scenarios.
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Reservoir Simulation
Geologic Model
HISTORY
MATCH

Oil Production
Actual in Blue

Modeled in Red

Production
Time

Reservoir Simulation
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The Value of G&G to an Oil Company

• G&G work is done to add HC reserves

(volumes)
– New discoveries
– More from discovered producing zones
– Additional producing zones
• Get the most reserves at the lowest cost
– Invest in the right basins
– Drill in the optimum locations
– Correctly assess what can be recovered
– Avoid unnecessary wells

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Let’s Fast Forward a Number of Years

• The Alpha field has been producing for 5

years
• We want to maximize production

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A Geologic Model

An integration of all geologic, geophysical, petrophysical and

interpreted or conceptual information about a reservoir into
a single 3D numerical description of that reservoir

Geophysical Interpretation

Stratigraphic
Interpretation

Petrophysical Interpretation Structural Interpretation

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A Geologic Model

1m

Each cell can be populated

with rock & fluid Properties:
– Facies
– Porosity
– Permeability
– Fluid Saturation
– Etc.
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Using a Simulation

History
History Prediction
Prediction
Actual
Modeled
Rate

Oil Rate

In
fill

In
Oil Rate

Oil Rate

fill
Dr BOaRs
Oil Rate

Oil Rate

Dr
illi
Oil

illi
ng
Ba

ng
se

EO
Ca

R
Ca
se

se
Time
Time
(yrs)
Time
Time
Time (yrs)
Time

How do we use this information?

• Field development planning
• Field production optimization
• Reservoir surveillance
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In Summary

• The O&G Industry needs top-notch scientists

and engineers to work on a vast array of
problems
• The assignments are challenging, fast-paced,
and multi-disciplined
• Often your work is tested in the matter of
months
• Great Ideas + Good Science -> Success

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