Lecture 15

Headlines:
Alpha Wildcat Finds Thick Oil Zone!
Block 7

Discovery Well

Salt Diapir

Bonanza Basin
Courtesy of ExxonMobil
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Block 8
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Our Exploration Flowchart

Identify Opportunities
Acquire Seismic Data Interpret Seismic Data Management Approved Wildcat Well

Capture Prime Areas

Process Seismic Data Assess Prospects

Wildcat Drilled

Success

Courtesy of of ExxonMobil ExxonMobil Courtesy

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Our Assessment Results

Alpha Prospect Main Compartment - Risked
1.0

100
0.8

Gas Only
Economic Minimum

62 % COS

0.6 0.4

Gas Cap & Oil Leg Oil Only

0.2

51 % Chance of Finding More Than the Economic 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
Courtesy of ExxonMobil
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Congratulations! A Huge Success

Alpha Prospect
Block 7

YOUR exploration well on the Alpha prospect discovered an estimated 325 MBO
Salt Diapir
1.0

Discovery Well

Alpha Prospect Main Compartment - Risked

100 Economic Minimum

Bonanza Basin

Block 8

0.8 0.6 0.4 0.2 0.0 0

Gas Only Gas Cap & Oil Leg Oil Only

62 % COS

100

200

300

400

500

Million Oil Equivalent Barrels

Courtesy of ExxonMobil

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Whats 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 Acquire Seismic Data

Capture Prime Areas Process Seismic Data

Drill Wildcats
Success

Interpret Seismic Data

Assess Prospects

Confirmation Well
Uneconomic Success

To Development Or Production Courtesy of ExxonMobil

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Delineation Well
Alpha Prospect
Block 7

6 Months later
Delineation Well

A delineation well is completed to the NE

An OWC is found at 4500 m the same depth as in the discovery well The porosity is slightly better 26% versus 23% in the discovery well

Discovery Well

Salt Diapir

Bonanza Basin

Block 8

The delineation well has confirmed enough oil to merit field development EUR now set at 348 MBO
Courtesy of ExxonMobil
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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?
Courtesy of ExxonMobil
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We Need More Detail

Reservoir Map at the end of Exploration

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Reservoir Map at the end of 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?

Courtesy of ExxonMobil

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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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Courtesy of ExxonMobil

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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.
Courtesy of ExxonMobil
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Reservoir Simulation
Geologic Model
Oil Production

HISTORY MATCH

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
Courtesy of ExxonMobil
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Lets Fast Forward a Number of Years

The Alpha field has been producing for 5 years We want to maximize production

Courtesy of ExxonMobil

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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
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Structural Interpretation
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A Geologic Model
1m

Each cell can be populated with rock & fluid Properties:

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Facies Porosity Permeability Fluid Saturation Etc.

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Using a Simulation
History History
Rate Oil Oil Rate
Actual Modeled

Prediction Prediction
Oil Rate
ng illi R Dr EO fill In se ng Ca illi se Dr B aR EO fill In se Ca

Oil Rate

Oil Rate

Time Time (yrs) Time

Oil Rate

How do we use this information?

Field development planning Field production optimization Reservoir surveillance
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se Ba

Time

Time (yrs) Time

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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

Courtesy of ExxonMobil

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