Exploration

Exploration
Land Acquisition
The Petroleum Landman
Role and function
The private ownership of land is permitted in many countries of the world. Some countries (e.g., USA, UK and
Canada), allow the private ownership of oil and gas interests or rights. Typically, such rights predate an act of union
(e.g., USA) or act of parliament. Invariably, governments control the leasing of most oil and gas interests on the
continent (i.e. on-shore) and all of the interests off-shore. Therefore, an exploration company seeking both access to
land and the right to explore/produce oil and or gas must determine who holds the rights and the steps necessary to
acquire and maintain that lease. In North America, that person is the Landman. The role and function of the Landman
may vary from company to company; however, all successful Landmen share the same professional attributes, they are
knowledgeable and skillful negotiators.
The Petroleum Landman may be involved in any one or all of the following activities (Tinkler, 1992), the acquisition
of leases and drilling rights, the maintenance of leases, agreements, contracts and legal obligations, and ultimately the
disposition of leases and termination of contracts.

Acquisition
The acquisition of leases begins with the examination of public records to determine who holds oil and gas rights in a
given area of interest. A review of previous lease sales in the area or adjoining area will be under taken and perhaps
the past and present activity of other companies will be researched. The Landman must also determine the necessary
terms to obtain a lease if privately owned, or the value of the lease, if the lease is awarded on the basis of a sealed-bid.
If leases are awarded on a first-come-first-served basis, then appropriate steps must be undertaken.
Fundamentally, the Landman must obtain the rights to explore and produce oil/gas. In addition to the acquisition of the
oil and gas lease, there maybe permits to acquire and contracts (such as Farm-outs or Joint Operative Ventures) to
negotiate and asset trades to deal with.

Maintenance
Once a lease or an agreement has been attained there then follows a period of maintenance during which the
administration of the lease must be maintained. For example, during this time the processing of payments or royalties
must be maintained, land titles and leases may require curative work or maintenance and there will be a need to keep
track of all lease and contractual obligations. It may also be necessary to enter into contractual negotiations with
investors or outside parties who have an ongoing interest, or who have developed an interest, in the associated venture.
This may lead to farm-outs and farm-in agreements, seismic options, bottom-hole contributions, etc.

Disposition
Ultimately a decision will be made to trade, release or surrender the lease, and terminate contracts, or to permit them to
expire. Therefore, the Landman will be involved in the possible Farm-out, sale, or disposal of oil and gas interests.
Whatever transpires, company records must be maintained and the filing of all necessary documents with the
appropriate government department or agency should be done in a timely manner.
Farm-out and Farm-in: If an oil and gas company holding a lease (hence known as the Farmor) agrees to assign a portion of
that lease (called the farm-out-area) to another company (the Farmee), in consideration of the Farmee drilling a specified number
of wells on that Farmed-out-area, then the Farmor has made a Farm-out and Farmee has made a Farm-in.

Joint Operating Agreements (JOA): A JOA, or operating agreement, occurs when two or more companies who share a
working interest share the risk of drilling, developing and operating an oil or gas venture. Typically one of the companies acts as
the operator for all the companies bound by the JOA. The JOA also specifies how the costs and revenue will be shared and how
leases will be acquired, maintained and disposed of (Tinkler, 1992)

82

Exploration

Land description and Land Maps

Subdivision of land
Legal property descriptions and oil and gas maps are the means through which a well is physically located and the
subsurface geology portrayed. Geologists are familiar with various types of map, such as topographic maps, solidgeology maps, isopach maps, structural maps, etc, but land maps are planimetric maps that show the subdivision of
land without reference to variations in ground elevation.
Land maps consist of a grid system where land is divided into blocks that mat be subsequently subdivided into smaller
blocks. The grid systems of many Land maps are typically tied to the major trending lines of latitude and the longitude.
The legal description of property and well location is only one aspect of a Land map; land maps also typically include
(Tinkler, 1992):

The legal description of the well/property by township, range, section, block, survey or LSD1
The names of operators and / or leases
Surface land ownership, and
Mineral ownership (if different from the surface land owner)
Lease status
Pertinent well data, such as well name, well status, total depth
The names of significant land marks, such as roads, streams, lakes.

Legal property descriptions

The inaccurate description of property or a well is the most common reason why land titles fail. In the United States
the subdivision of land typically follows the Rectangular System of Surveys, or more commonly known as the Public
Lands Survey, which was adopted by the U.S. Government for Alabama, Florida, Mississippi, all lands west of the
Mississippi (except Texas) and all states north of the Ohio River (Figure 109). Those states not included in this system
use a sectionalized system developed within each state. Through a system of land subdivision based on east-west and
north-south lines, land subdivided according to the Public Lands Survey is divided into squares called townships,
ranges and sections. All surveys have a reference point or Point of Beginning. This reference point is the intersection of
an east-west baseline and a north-south meridian. For example, in Kansas this point is known as the Initial Point
for the Sixth Principal Meridian.
The Public Lands Survey divides the land into townships which are square parcels of land that are six miles on each
side. The location of a given Township is by reference to the number of townships north or south of the baseline, and
the number of Ranges, east or west of the reference meridian. Each township is further divided into 36 parts called

Figure 109. A representation of the Public Lands Survey system of land subdivision used by many states in the United States of
America. For example, the legal description for well Y shown in the 40-acre subdivision above (D) would be Township 2 North, Range 2
West, nth Principle Meridian (T-2-N, R-2W, nthPM), Section nineteen (19), southwest quarter (SW/4) of the northwest quarter (NW/4),
southeast corner (SE Cor.). Putting that together we would have: SE Cor., SW NW, Sec 19, T-2-N, R-2W,nthPM.

LSD: (Legal subdivision) a legally defined subdivision of land or territory: an area composed of subdivided lots

83

Exploration

sections. Each section contains 640 acres or one square mile. Because of the Earths curvature, corrections must be
made ever 30 miles, which is every 5th Township line.
The subdivision of land in the Provinces of Alberta, Manitoba and Saskatchewan within Canada is similar, in that it
uses imperial units of measurement, and is based upon a Township and Range planimetric grid system. However,
because this system is based on the Torren System, the numbering of sections differs from that used within the Public
Lands System of the USA, and note also that the subdivision of each section uses a grid of 16 40-acre blocks. The
subdivision of
land
is
represented in Figure 110.
Adjacent to the western side
of a meridian the subdivisions
are of standard proportions,
consisting of full quarters. To
compensate for the curvature
of the Earth, subdivisions are
often irregular, consisting of
partial or make-up quarters
close to Provincial borders
and along the eastern side of
each meridian. The minimum
spacing for a conventional
well is 40 acres, gas well = 80 Figure 110. A representation of the Torren Survey system of land subdivision used by some of
acres. Wells are located by the the Provinces of Canada. For example, the well in the 40-acre LSD above (indicated by a ) is in
further subdivision of each Township 2, Range 2West of the X Meridian, Section thirty (30), LSD 13. Putting this all together
we would have: 6-13, T2, R2WX.
LSD and then using Lat. and
Long.

Offshore descriptions and subdivision

In the United States, offshore areas that are subject to state
control use the same system that was devised for land.
However, areas of Federal interest utilize the Outer
Continental Shelf Leasing Maps designated by the Mineral
Management Services (1984). Such maps are subdivided
into blocks that are 5760-acre blocks, except offshore
Louisiana, which uses 5000-acre blocks.
On the East Coast of Canada, such as the Scotian Shelf, a
hierarchical system has been devised based upon regular
subdivisions of longitude and latitude.
The largest
subdivisions are Grids, which in turn are subdivided into
Sections and subsequently into Units (Figure 111). Further
refinement is possible by subdividing each Unit into four 200
m2 quadrants known as Targets.
111. The Grid, Section and Unit system that is utilized
The United Kingdom uses a well-registration numbering Figure
off shore Nova Scotia, Canada.
system that permits the identification of Country, the number,
or letter of the quadrant in which the well is drilled and
pertinent drilling information. UK quadrants are areas enclosed by one degree of latitude and longitude, and each UK
Quadrant is divided into 30 blocks measuring 12 minutes of longitude by 10 minutes of latitude (Figure 112). The
well-registration numbering system includes both Quadrant, the number of the block within the quadrant and a blocksuffix, if the block is subdivided.

84

Exploration

Figure 112. The Quadrant system of the United Kingdom (off-shore). The planimetric grid that
subdivides offshore England and Scotland into numbered Quadrants is based upon lines of longitude
and latitude. The inset diagram (blue border) illustrates the numbering and subdivision of each
Quadrant. England and Scotland are shown in solid grey (modified from the U.K. Department of Trade
and Industry, PON12, 2005; Crown copyright material is reproduced with the permission of the
Controller of HMSO and Queen's Printer for Scotland ).

85

Exploration

Surface prospecting and remote sensing

Seeps (oil and gas)
Introduction
A visible oil or gas seep may be an important phenomenon in oil exploration, their presence is an indication of
petroleum and or source rocks within the subsurface, since many seeps represent the tertiary migration of petroleum.
Many oil fields have been discovered through the associated presence of an oil seep, including Baku (Russia), many
fields within California, Oil creek (Pennsylvania), Golden lane, Mexico, Masjid-I-Sulaimin field, Iran and the Hombre
Pintado field Venezuela, to name but a few. However, the concept of using seeps and other remote sensing techniques,
as a prospecting tool, has fallen out of favor with many exploration companies, but not all! The existence of a surface
seep is hard to ignore. But rather than simply indicate the presence of hydrocarbons within the subsurface, the
presence of a surface seep may indicate something else, such as a deficient trap

Weathering and transformation of seeps

Hydrocarbons associated with seeps do not remain in pristine condition for long. A transformation readily occurs
depending upon: oxygen availability, temperature, the presence or absence of water and the presence or absence of
bacteria. Changes initially involve a lowering of API gravity followed by pronounced changes in molecular
composition, viscosity and solubility, the end product is a solid-like material known as pyrobitumen (Figure 113).

Figure 113. The sequential transformation of crude oil due to weathering. Physical and
chemical changes are summarized (above) and the end product, a sample of Pyrobitumen from
Western Canada, is shown right. The Pyrobitumen displays a characteristic optical texture
(indicated by the arrows) due to an increase in molecular order when examined in cross
polarized reflected white light. The image is approximately 150m across. (image courtesy of
L. Stasiuk).

Classification of seeps
Upon encountering a surface seep, the first step would be to characterize the seep material and determine if the seep is:
active (i.e., live), inactive (often manifest by the presence of solid bitumen impsonite or grahamite), or a false seep
such as those associated with landfill sites. Link (1952) offered a simple classification of seeps that was related to their
geological mode of occurrence. Most seeps occur at basin margins and in sediments that have been either folded or
faulted and eroded. The classification of Link (1952) is straightforward and relatively uncomplicated, consisting of:

1. Seeps emerging from homoclinal beds, the ends of which are exposed and the beds outcrop at the surface (e.g.,
Trenton Limestone, Canada).

2. Seeps associated with source rocks that have become fractured or exposed to the Earths surface (e.g., Green River
Fm, Uinta Basin, USA).

3. Seeps from large hydrocarbon accumulations that have been exposed by the erosion of faulted or folded reservoir
rock (e.g., Masjid-I-Sulaimin field, Iran, or the Hombre Pintado field, Venezuela).

4. Seeps along the outcropping of an unconformity (e.g., Athabasca oil sands, Canada).
5. Seeps associated with igneous intrusions, salt diapirs, or other local sources of extraneous heat that may mobilize
a small portion of a reservoir (e.g., Golden lane, Mexico).

Gas or condensate seeps and geochemical prospecting

Terrestrial seeps
Gas and condensate are difficult to detect as seeps, unless under water. Light hydrocarbons typically evaporate or are
easily dissipated at the Earths surface and, therefore, cannot be detected directly. However, gas and condensate seeps
have been detected, for example, in Louisiana, Texas and the Gulf of Mexico, indirectly through the occurrence and
86

Exploration

association of paraffin dirt. Paraffin dirt is typically yellow, behaves elastically and resembles natural gums and
resins in appearance. However, paraffin dirt does not contain hydrocarbons of thermogenic origin. It is composed
almost entirely of microbial cells and bacteria (including methane-, ethane-, propane-, and butane-metabolizing
bacteria), and metabolic by-products.

Underwater seeps
Live or active seeps have been found on the continental shelf off the coast of California, such as those associated with
the Ventura field, California. Underwater oil seeps have been identified visually, since gas bubbles are amenable to
visual detection. The unambiguous detection of a thermogenic gas seep requires the use of sophisticated gas sniffers.
Such devices are sensitive detectors with claimed detection limits of 0.5 ppb. However, like all techniques, the user
must be aware of certain limitations. It must be determined if the gas is biogenic or thermogenic, the latter implies the
presence of an active source rock and migration system. Whereas biogenic gas is the by-product of the microbial decay
of buried organic matter and may not be linked to an economic accumulation of petroleum! The presence of propane
and ethane (plus others) is often taken as an indicator of thermogenic gas, but should be confirmed by isotope analysis.
Offshore gas sniffing is also difficult to interpret in areas frequently used by shipping, or in coastal areas adjacent to
cities or industrial centers. Surface prospecting techniques, such as all exploration (i.e., prospecting) techniques may
or may not work with equal success in all areas. Each area must be evaluated on its own merit!

Geophysical exploration
Introduction
With costs rising, no one would seriously
consider drilling a well using any of the
reconnaissance techniques prevalent in the
nineteenth century.
Business decisions
require data and a detailed prognosis of the
play to be explored. Acquiring subsurface
data by drilling a borehole is expensive and
while it provides a great deal of geological
data, the reliability of that data, beyond the
confines of the borehole is unknown.
Fortunately, there are techniques that can be
used to provide information of an area of
interest and/or help relate one borehole to
another.

Video 7. Surface techniques, from The Making of Oil (copyright Schlumberger,

Ltd. Used with permission).

Analysis of outcrop and surface topography

give vital clues to the geological style of an
area or basin (Video 7) that can supplement
the information provided by geophysical
surveys (Video 8). Geophysical surveys
provide a cost-effect means of acquiring
geological information of an area of interest;
information that can help reduce exploration
risk. There are three types of geophysical
survey frequently used in the petroleum
industry:
magnetic anomaly surveys
gravity surveys

Video 8. Geophysical techniques, from The Making of Oil (copyright

Schlumberger, Ltd. Used with permission).

seismic surveying
Both magnetic and gravity survey techniques are reconnaissance type surveys, often conducted from the air to facilitate
speed and permit the surveying of large tracts of the Earths crust. In contrast, seismic surveys, provide a greater
degree of subsurface detail, but require physical contact with the ground.

87

Exploration

Magnetic anomaly surveys

Magnetic surveying investigates anomalies in the Earths magnetic field due to the magnetic properties of rocks within
the subsurface (Figure 114). Magnetic surveys can be conducted from the air, over land or water as an airborne survey.
Such surveys typically cost 40% less than ground-based surveys and can be conducted over relatively inaccessible
terrain. Aeromagnetic surveys usually have the sensor suspended or towed from an aircraft, whereas marine surveys
can be conducted from a sensor towed some distance behind a ship. Therefore, magnetic surveys are well suited as a
reconnaissance tool, providing geological information over a very large and extensive region, such as a continental
shelf (Keary and Brooks, 1991). In the absence of magnetic minerals within rocks of a sedimentary basin, a magnetic
survey can provide information on structures and the composition of the underlying crystalline basement. Magnetic
surveys provide an overall assessment or geological impression of basement topography, possibly indicating the basin
depocenter (Figure 114). In areas where it is believed that overlying sediments are controlled by the crystalline
basement, magnetic surveys can be used to help delineate areas of exploration potential. Therefore, a magnetic survey
is primarily regarded by the oil industry as a reconnaissance tool! However, they are incapable of locating small
structures, such as reefs. Many national geological surveys conduct magnetic surveys as a matter of course. However,
more companies are running their own high resolution magnetic surveys, recognizing that lineaments, faults and
basement highs typically leave a geological imprint on the overlying strata with the potential to influence migration
fairways and plays.

Figure 115. This illustration shows the

relative effect of a small body of high
mass and a larger body of lower mass
against corrected background gravity,
note that ground elevation has no effect
upon the gravity survey device.
Figure 114. Two imaginary transects, depicting a simplified geology and their respective
gravity (G) and magnetic (M) responses.

Gravity surveying
The gravity method is also used as a reconnaissance tool. However, gravity surveys are capable of suggesting the
presence of small scale structures, such as salt domes and reefs. Gravity surveys are feasible because global and
regional variations in gravity exist due to crustal heterogeneity and differences in rock density. The unit of gravity
measurement is the Gal, named in honor of Galileo, which is divisible into mGal and Gal. 1.0 Gal is equal to 1 cm
sec2. Generally gravity decreases with increasing distance from the center of the Earth; either as a function of the
Earths shape (as an oblate spheroid) or due to changes in elevation or with changes in mass! The presence of a rock
unit of differing density from the surrounding rocks will cause a local perturbation in the Earths gravitational field,
generating what is commonly known as a gravity anomaly. Once corrections for surface effects, latitude, elevation, tide
and instrument drift have been made, the presence of bodies of varying mass result in variations in gravity, or
anomalies (Figure 115). A gravity anomaly can be expressed by differences in rock density:
p
where,

P1 - P2

P1 is the density of a body of rock, surrounded by rock of density (P2) and

p represents the difference in density.

88

(8)

Exploration

If the density difference is negative then the gravity anomaly will

be negative. The principal reason for variations in rock density in
sedimentary rock is rock porosity; hence, densities increase
within rocks of low porosity or increasing depth. Some example
densities are given in Table 8 for common sedimentary rocks.
Gravity anomalies range from the small scale, such as a buried
valley or reef, to larger anomalies, such as a salt dome and
regionally extensive anomalies, typical of igneous plutons.
However, it is generally recognized that it is difficult to
distinguish between small bodies of high mass and large bodies
of low mass. Bouguer anomaly maps can help delineate areas of
differing density; low-density sediment appearing as negative
anomalies, and rocks of relatively higher density appear as
positive anomalies.

Table 8. Ranges in rock density for common

sedimentary rocks (after Keary and Brooks, 1991)
Density (Mg m-3)

Lithology
Clay
Shale
Sandstone (Cretaceous)
Sandstone (Tertiary)
Sandstone (Carboniferous)
Chalk
Limestone
Dolomite
Halite

1.63
2.06
2.05
2.25
2.35
1.90
2.60
2.28
2.10

2.60
2.66
2.35
2.30
2.55
2.90
2.88
2.90
2.40

Seismic surveying
Introduction
Seismic waves are parcels of elastic strain energy that propagate outwards
from a seismic source (e.g., explosion). The velocity of a seismic wave is
determined by the physical properties of the rock(s) transmitting the wave. If
the rock properties are homogeneous (i.e., isotropic) then the wave front
travels at the same speed in all directions and the locus of the wave front
would define a sphere, rather like ripples on water (Figure 116). Physical
properties, such as mineral composition, grain size, shape and sorting, porosity
and pore fluids type combine to determine the density and elastic modulus for
a given rock unit, and, therefore, seismic velocity. Compressional wave
velocities (Vp) vary from 0.5 to 1.0 km s-1 for dry sand up to 2.0 to 6.5 km s-1
for anhydrite (Table 9). In general Vp increases with depth of burial, due to the
combined effects of increased confining pressure, compaction and
cementation, although frequency decreases. The presence of gas also reduces
shear wave velocity (Vs) (Keary and Brooks, 1991).

Energy sources
Land:
Vibroseis or Vibrator truck has rapidly become the most common
non-explosive method utilized on land. These truck-mounted pad vibrators
(Figure 117; Video 9)) are capable of creating a sweep signal from 10 to 80 Hz
for extended periods of time. Vibroseis units can also be used as linked units
by phase-linking each unit, thereby permitting deep seismic penetration of the
crust. Because such units require good contact between pad and ground they
work best on firm ground, and unlike dynamite they are urban environment
friendly. Land-based recording devices are called geophones (Short, 1992).

Figure 116. The relationship between a

ray path to an associated wave front in an
homogeneous rock unit (after Keary &
Brooks, 1991).

Table 9. Compressional
wave velocities (Vp) for
selected geological materials.
Material

Vp (km s-1)

Sand (wet)
Clay
Sandstone
Tertiary
Carboniferous
Limestone
Cret. chalk

1.5
1.0

2.0
2.5

2.0
4.0

2.5
4.5

2.0

2.5

3.0
2.5
4.5
4.5

Carbonif. lms
Dolomite
Salt
Anhydrite

Figure 117. A seismic energy source; the

vibrator truck.

Video 9. A short movie featuring a Vibrator truck,

from The Making of Oil (Copyright Schlumberger,
Ltd. Used with permission).

89

4.0
6.0
5.0
6.5

Exploration

Marine: There are many seismic source options for use off-shore that are typically chosen for a specific depth of
penetration and resolution. The most commonly used include the air gun, water gun, sparkers, pingers and boomers.
Air guns (Video 10) are capable of deep penetration whereas water guns can achieve high resolution because there is
no bounce back, a phenomenon associated with pneumatic devices. Sparkers are electrical devices that can achieve
high resolution but are best suited to shallow depths. Marine recording devices (Video 11) are called hydrophones
(Dessler, 1992).

Video 11. An animation of the seismic wave propagation

process in a marine setting, from The Making of Oil
(Copyright Schlumberger, Ltd. Used with permission).

Video 10. Seismic and data acquisition, from The

Making of Oil (Copyright Schlumberger, Ltd. Used
with permission).

Seismic wave paths

As mentioned above, reflection seismic surveying utilizes the
reflection and refraction of compressional waves that travel from a
seismic source back to the surface (Video 11), permitting us to
interpret the subsurface. Since wave properties are predominantly a
function of the elastic modulus and density of the transmitting and
propagating media (i.e., rock plus pore fluids) when seismic waves
(wavelets) pass from one lithology to another, those wavelets
undergo a change in velocity, amplitude and direction. To help
explain the complex behavior of seismic waves it is useful to
introduce their behavior as analogous to light waves, because
compressional waves have amplitude, wavelength and frequency,
rather like light (Figure 118). The interface between two lithologies
of differing density is known as a velocity interface. The analogy of
the light ray is useful because it illustrates that the transmission of
seismic waves, through strata of differing density, results in both
reflection and refraction at each velocity interface, according to
Snells law2. Since we are primarily concerned with reflection
seismology, the arrival time of reflected wavelets to a given
geophone/hydrophone is given as a two-way travel time. However,
in reality seismic waves are not simple vectors, but travel as
spherical wave fronts (Figure 119) that radiate from the energy
source. Because multiple geophones are used during a seismic
survey (e.g., 12 to 1064 arranged as an array), two-way travel times
for reflected seismic waves increase with increasing distance from
the mid-point or source (Figure 120) which creates a velocity
hyperbola, known as diffraction. Raw, unprocessed seismic data is
of little use for geological interpretation. Processing raw data
involves a number of possible steps, such as, stepout correction,
stacking, seismic migration, convolution and deconvolution.
2

Figure 118. A seismic ray as analogous to a light ray. In

this example, the seismic wave travels through lithology 1
with uniform velocity, amplitude and frequency. When the
seismic wave encounters a change in lithology with
differing density, noted by the velocity interface, the
seismic wave is both reflected and refracted.
where:
v1 = velocity of lithology 1
v2 = velocity of lithology 2
v2 = velocity of lithology 2
and
(a) = Reflected wave
(b) = Refracted wave

Which relates the angle of incidence and refraction to the propagation velocity within the two media.

90

Exploration

Seismic data processing

Stepout and stacking
The horizontal distance from the seismic source to
receiver (e.g., geophone) is termed offset. When using
multiple geophones, two-way travel times between the
surface and a given velocity interface increase as the
distance between shot point and each geophone (i.e.,
offset) increases. This creates a delay, known as
moveout, in the arrival time of reflected waves creating a
velocity hyperbola (Figure 119). Stepout correction
involves correcting for seismic moveout (vertical wave
offset) otherwise planar surfaces will not appear planar.
Moveout correction for horizontal and planar surfaces is
known as normal moveout correction (NMO), dip
moveout correction (DMO) is a correction applied to
dipping reflectors (Keary and Brooks, 1991; Duncan
1992). When using multiple energy sources, and several
arrays of geophone/hydrophone, velocity hyperbola are
combined, or stacked to eliminate random background
noise and create continuous seismic sections; typically
represented as a wiggle trace in conventional seismic
sections.

Figure 119. A graphical representation of seismic wave offset, in

which a planar surface generates an apparent surface of
curvature (velocity hyperbola).

CMP, CDP and migration

The common midpoint (CMP) is the midpoint, at the Earths surface, between source and receiver (Figures 120a and
120b). If the reflector is a horizontal plane, the common midpoint lies vertically (Figure 120a) above the common
depth point (CDP), which is also the common reflection point (Keary and Brooks, 1991; Larner and Hale, 1992).
Common depth point profiling has become the standard method used in two-dimensional (2D) multi-channel seismic
surveying because traces from different source-receiver pairs that share a common midpoint can be corrected to
remove the effects of different source-receiver offsets, and stacked to improve the signal-to-noise ratio (Keary and
Brooks, 1991; Larner and Hale, 1992).
However, sediments and sedimentary rocks are not always horizontal layers. Dipping reflectors do not have a common
depth point because the reflection point for each successive source-receiver pair will be displaced updip (Figure 120b).
Migration is a form of seismic processing that repositions reflection events (e.g., the dipping surface in Figure 120b) to
their correct surface locations and at a corrected vertical reflection time (Keary and Brooks, 1991).

Figure 120. Common depth point (CDP) reflection profiling. (a) The seismic reflector is a horizontal surface. The common
midpoint (CMP) directly overlies a common depth point (CDP) which is common to all source-detector pairs. (S1 to S3; D1 to D3
respectively); (b) For a sloping reflector there is no common depth point and the reflection point differs for ray pairs S1-D1, S2-D2
and S3-D3 (after Duncan, 1992).

91

Exploration

If the survey line is at some angle to the dip of the reflector (e.g., along the strike) in a 2D-seismic survey, the
reflection point is displaced out of the plane of section, i.e., cross-dip (Keary and Brooks, 1991). Cross-dip cannot
easily be resolved with two-dimensional (2-D) seismic surveys and represents a problem and limitation regarding 2D
seismic data. However, the problem is easily resolved using three-dimensional (3-D) seismic surveys, since reflection
points can be migrated in any azimuthal direction.

Convolution and deconvolution

During the seismic reflection process, seismic energy is naturally filtered by the Earth. Wavelets change as they
propagate through layers of differing sediment. As stated above, the interface between two lithologies of differing
density is known as a velocity interface; as wavelets encounter a velocity interface, each reflecting velocity interface
reflects the whole wavelet but a reduced amount of the original energy. Convolution is a process of filtering the
propagation of seismic energy within the Earth is a natural filtering process. Convolution can be used to model the
filtering of seismic energy by the various rock layers in the Earth.
Deconvolution is used in seismic processing to counteract the adverse affects of filtering, or convolution that occurs
naturally as seismic energy is naturally filtered by the Earth, or the removal of the frequency-dependent response of the
seismic source and recording device and instrument (Duncan, 1992). Examples of seismic trace processing are given
in figures 121 and 122.

(a)

(b)

(c)

Figure 121. Example seismic traces showing the result of various types of seismic processing. (a) The shot-to-receiver offset is zero at the
center and increases to 2000 m at either end. Note the presence of offset related hyberbola due to normal moveout. (b) After the
application of normal moveout correction (NMO) the horizons are flat. (c) A seismic section is produced by combining and stacking six
adjacent shots (Duncan, 1992; images courtesy of Landmark Graphics Corporation).

Figure 122. Seismic data from the Santa Barbara Channel, offshore California, USA. (a) A CMP stacked data showing multiple
crossing reflections, (b) Correcting for the mispositioning of dipping reflectors and collapsing diffraction curves, migration reveals
a series of tightly folded anticlines and synclines (Larner and Hale, 1992).

92

Exploration

Bright spot seismicity

Bright spot seismicity is the recognition of hydrocarbon (i.e., gas)
charged reservoirs. This is due to significant changes in density
between water saturated rocks over- and under-lying a porous rock
(e.g., sandstone) that is relatively depleted in water due to the high
saturation of gas (e.g., Sw less than 20%). As seismic waves
encounter a velocity interface, reflection and refraction occurs, where
significant changes in density occur, reflectors will be prominent.
Therefore, the reflector associated with the gas-charged reservoir will
appear as a strong reflector on the wiggle trace, due to the enhanced
amplitude of each wiggle (Keary and Brooks, 1991). Notice in
Figure 123 that in this example the enhancement of amplitude is
greatest at the base of the gas-charged reservoir; this is due to the
migration of some gas into the overlying shale (or as an alternative
interpretation the downward migration of gas). As discussed above,
this will generate a bright spot on the seismic trace (Figure 123).

Figure 123. A seismic line for Shell's Mars play, Gulf

of Mexico, a "bright spot" play that became a 700
million barrel discovery (Forest, 2000).

3D and 4D Seismic
Geologists are comfortable working with cross sections and so are comfortable with 2-D seismic sections. However,
for reasons outlined above, 2-D seismic does have some limitations particularly relating to the optimal orientation of
the section and during signal processing (e.g., migration). Furthermore, since traps are three dimensional entities a two
dimensional seismic line may not present the optimal subsurface image (Hart, 2000). 3-D seismic surveying overcomes
many of those concerns. Marine 3-D seismic surveys utilize a series of closely spaced parallel lines (line shooting)
whereas on land receiver lines are arranged parallel to one another with the shot points positioned in a perpendicular
direction (swath shooting) (Yilmaz, 1992; Hart, 2000). The distance between lines in 3-D seismic surveying is
typically 50 m or less, compared to 2-D seismic surveying which may be 1 km or more. As a consequence hundreds of
thousand to hundreds of millions of traces are collected during a 3-D seismic survey, generating gigabytes and
terabytes of data. 3-D seismic data is available as vertical sections along the in-line or cross-line orientation (Figure
124a) and as horizontal sections (time slices) (Figure 124b). Multilayer time slices permit the generation of contour
maps (e.g., isochron) or the identification of subtle types of trap, such as a meandering stream that otherwise would be
problematic with a 2-D survey (Brown, 1988).
Time lapse seismic surveying (Video 12), often referred to as 4D seismic, is the sequential surveying of a producing
reservoir over a set period of time. Time lapse seismic surveying seeks to ascertain changes within a reservoir due to
the withdrawal of petroleum, in which areas within the reservoir containing untapped oil will show little to no change.
Time lapse seismic surveying has been used with great success in many producing fields in the North Sea.

Figure 124. Examples of 3-D seismic showing (a) data volume around a salt diapir depicting vertical sections in both in-line and
cross-line orientation, and as time slices (image courtesy of Hunt Oil Company); (b) a time slice showing a meandering stream (used
by permission of Sunoco, Inc.).

93

Exploration

Video 12. An animation showing the

use and possible sequence of events
when conducting time-lapse seismic,
from The Making of Oil
(Copyright Schlumberger, Ltd.
Used with permission)

Cross-sections and subsurface maps

Introduction
Geological maps and cross sections are created to help resolve complexities in subsurface data, to provide a visual
synthesis of geological features and to communicate our geological interpretations to others. They are both versatile
and an indispensable tool.
Even with the increased usage of 3-D seismic, the geologist still has need for cross-sections. For example, they permit
the geologist to extrapolate stratigraphic equivalence between units, using seismic data, wire-line data and or
lithostratigraphic information between wells or proposed wells. Cross-sections also permit a synthesis of structural
attitudes of strata in relation to sea level or some other datum with data derived from seismic, or borehole data.
The petroleum geologist will also construct many different types of map, including maps of the subsurface,
topographic location maps, land usage maps (Weissenburger, 1992). For a given area and or zone of interest, it maybe
necessary to construct a suite of maps. In this section, our examination of maps will be restricted to subsurface maps,
in particular maps that contour a subsurface feature (e.g., isopach, isochore, isochron, net pay) or depict relationships,
e.g., fault planes, facies change, or changes in porosity (Figures 125 and 126).

Figure 125. Example subsurface map

(after Weissenburger, 1992).

Figure 126. Isopach map of the South Glenrock oil field, USA, showing an
ancient (i.e. buried) meander belt (Curry and Curry, 1994).

94

Exploration

Cross-sections
Cross-sections are graphical representations of slices through the earths crust that are commonly used by the
petroleum geologist to clarify or help interpret geological relationships (Boak, 1992). There are three basic type of
cross section: correlation, structural, and stratigraphic cross-sections.

Correlation cross-sections
Such cross sections may be the first to be drawn and are often based upon seismic data. Such sections also evolve,
modified, updated and refined as data becomes available. Correlation cross-sections are often large scale and do not
permit the extrapolation of high-resolution stratigraphic equivalence between wells or proposed wells. Although, it was
in dealing with seismic data and the construction of cross-sections that prompted Vail et al., (1977) to devise the
concept of sequence stratigraphy.

Structural cross-sections
The structural attitude of strata, or any
geological feature of interest, is typically drawn
from seismic, or using seismic and borehole
data (Figure 127). Such cross-sections are
drawn in relation to sea level, or some other
datum. Structural cross-sections are particularly
effective when interpreting the location and
nature of faults.

Stratigraphic cross-sections
The detailed correlation of strata between wells
is typically performed via the construction of
stratigraphic cross-sections in which a given
stratum is selected as the datum horizon, and all
others 'hung' from that horizon. The data is
often derived from wire-line data or from a
composite log consisting of wire-line data and
drill cuttings, core or paleontological data.
Such sections may reveal features or used to
identify subsurface sequence boundaries (Vail
et al., 1977); typically deduced from wireline
log responses, supplemented by core and/or
drill cuttings. Cross-sections are a powerful
visual, interpretative, tool; even more so if
combined with a base map as a fence diagram
(Figure 128). A fence diagram or panel diagram
accommodates a number of interlinked crosssections within a single three-dimensional
diagram. Using a perspective view, each panel
or fence is projected below a surface grid (the
datum) and linked to one another. They can be
an effective means of deriving a solution when
data is limited.

Figure 127. A simplified structural cross-section through Hibernia, East coast

Canada (Arthur et. al., 1992).

Figure 128. A partially completed fence diagram (panel diagram) with a

'base-map' projection.

Maps
Basic requirements of a map
What ever map is used it must be as accurate as possible. Errors and inaccuracy on subsurface a map may be more
misleading, since the map represents a visual summation of data and is mostly responsible for molding our
interpretations of a given data set or subsurface feature and the basis upon which exploration decisions hinge
(Weissenburger, 1992). There is also trade-off between the inclusion of complex data and simplicity, and because each
of us has individual thresholds of comprehension and confusion, the usefulness of a map should be gauged by the ease
by which others can comprehend the data, or interpretation. Furthermore, all maps for a given basin, field or play
should conform to one another; not only in scale, but also in style, concept and possibly interpretation. This is often
95

Exploration

difficult, or impossible when a basin straddles a political boundary where differences in nomenclature, units or
geological resolution may occur. However, resolving differences or anomalies may yield insight.

Contouring
There is an increasing reliance upon computers to construct a subsurface map. However, it should always be
remembered that subsurface maps, more than topographic maps, require interpretative skills and that an interpretation
is controlled by a variety of factors of which the relative abundance of data and well control is perhaps the most
critical. The creation of bulls eye contouring by computer should always be questioned, since mapping software still
lacks the ability to apply geological intuition. When dealing with a limited data set, contour in keeping with the
structural style of the region; for example, don't invoke block faulting if simple folding is thought to dominate the
structural style of a region. With a limited data set, remember a number of interpretations are possible, increasing the
data set will eventually narrow the options and number of interpretations.

Isopach maps
Isopach maps record the thickness of a given formation. Such maps
can be local or regional. Note that with such maps, formation
thickness does not always coincide with basin subsidence: carbonates
or sand bodies are often thickest on the margins of basins, and local or
regional truncation may result in formation thickness! An Isochore
map is a specific type of isopach, depicting the thickness of an interval
between the oil-water contact and the cap rock. Similarly, net pay can
be depicted using a ratio of gross pay to net pay within a reservoir.

Structural contour maps

This type of map is often the simplest and perhaps the most important
subsurface map (Figure 129). This map is a representation of contours
for any subsurface horizon with respect to some stated datum, which
could be sea level, RKB3 or some other subsurface horizon.
Subsurface structural maps can also be local or regional. The
information used could be based upon seismic, well control, or
preferentially both. Structural maps delineate traps and are essential
for reserve calculations. Most structural maps utilize sea level with all
deep horizons below sea level, and larger contour values are negative
and therefore represent greater depths. The contour intervals should be
clear, the map must have a scale and legend, and faults clearly marked.

Figure 129.
1994).

Structural contour map (Jorgensen,

Reserve Calculations
Estimates
Estimates of recoverable reserves must be made when conducting an appraisal of a reservoir, pool or field and updated
whenever new data or information becomes available. There are several parameters that should be known, calculated or
estimated including, for example, reservoir volume, reservoir porosity, water saturation (Sw), a recovery factor, and an
estimation of the formation volume factor (i.e., stock-tank shrinkage). The estimation of reserves may also include
other assumptions; such as, the presence/absence of a gas cap, the geometry of the oil/water interface and that the
reservoir is regular and divisible into units to facilitate volumetric calculations. Calculated figures should never be
regarded as absolute; they are estimations because our knowledge of the reservoir is not perfect and is always subject
to change or revision. However, even as estimations, those calculations should be as accurate as possible since they
form the basis for a number of business decisions regarding the possible outcome of a reservoir, pool or field.

Rough estimate:
where:

Roil

Vb f

Roil
Vb
f

=
=
=

the amount of recoverable oil (in bbl or m3)

bulk volume of the reservoir rock
recoverable oil

(9)

RKB: the rotary kelly bushing, depth measurements are commonly referenced to the kelly bushing.

96

Exploration

This method has some assumptions, the method uses typical

recovery values and porosity estimates (e.g., 30% for
sandstone, 10 to 20% for carbonates).

Reservoir volume
There are various other formulae by which it is possible to
estimate recoverable reserves using actual data. Most
however, utilize a formula that calculates a tabular volume,
such as the area of a pyramid or a hemisphere (Dahlberg,
1979).
An isopach map is often the starting point for most reservoir
volumetric calculations (Figure 130). The basal area for each
contour interval is then derived using a planimeter, or by
dividing the area into a square grid or by using some other
means of measuring area.
The cumulative area occupied by the reservoir is derived using
the contour interval (h) plus values for the base of each area,
using the following formula (Dahlberg, 1979):

Figure 130. A simplified isopach map and cross-section

illustrating the basis for estimating volume

V = (A0+A1) + (A1+A2)...+ residual above the last plane

(10)

Or
(11)

where:

V
h
A0
A1
A2
An etc

=
=
=
=
=
=

rock unit volume

the contour interval of the isopach map (i.e. height)
the basal area above the oil/water contact
the basal area of the first contour
the basal area of the second contour
the basal area of the nth contour

Recoverable oil
Only a small volume of the area calculated is actual pore volume, therefore, V must be reduced to accurately represent
the pore volume of the reservoir. This is achieved by multiplying the calculated volume by a porosity value in decimal
form (e.g., 0.17). Porosity is typically derived from core analysis or estimated from petrophysical logs. Furthermore,
the volume of the reservoir that holds oil or gas must be further reduced because of varying amounts of water and oil.
The amount of water present within a reservoir is expressed as the water saturation (Sw) and, therefore, must be
factored into such calculations, e.g., V = [1.0 - Sw]. Furthermore, the amount of hydrocarbon that can be produced
from a reservoir maybe less than 100% due to the volumetric shrinkage of oil, because dissolved gas will come out of
solution, leading to an effective volumetric shrinkage in oil. The shrinkage factor is calculated from the temperature,
pressure and GOR (gas-to-oil ratio) of the oil and can be as much as 10 to 30 percent. Therefore, the formation volume
factor (FVF) will range from 1.1 for gas-free oil to 2.0 for a high gas-oil. Hence, the equation for estimating
recoverable oil is (Dahlberg, 1979):
Recoverable oil

V (1 - Sw) R
FVF

where:

Sw
R
FVF

=
=
=
=
=

reservoir volume (in cubic meters, barrels or cubic feet)

average porosity (as a decimal)
average water saturation
estimated recovery factor, as a decimal equivalent
formation volume factor

97

(12)

Exploration

If it is required to express the results as barrels of oil, the reserves should be converted from cubic meters by
dividing V by 0.159, or dividing V by 5.615 when working in cubic feet.
Utilizing the pore volume equation
(STB)
where:

V
N/G
6.29

Shc
R
FVF
STB

= V N/G Shc R 6.29

FVF
= reservoir volume
= net or gross ratio of the reservoir rock body making up V
= oil field conversion factor (m3 to bbl)
= average porosity
= average hydrocarbon sat.
= estimated recovery factor
= formation volume factor
= Stock tank barrels, bbl. of oil at 60 deg F and 14.7 psi.

(13)

Short-cuts
Spherical or ellipsoidal reservoir
Many short-cuts and quick-look methods exist, depending upon the approximate geometry of the trap; we will
examine one method that assumes a hemispherical (dome) shape. The volume of the top of a sphere can be
approximated by the following quick method.
area of the base max. thickness (i.e., height of reservoir)

(14)

For a hemispherical or near hemispherical reservoir this 'approximation' will be within 6%. The error will increase, as
the shape becomes more ellipsoidal, such as a fault-bounded trap. The volume can be approximated by determining the
area corresponding to the mid-distance between the reservoir base and top.

Reference
Arthur, K. R., D. R. Cole, G. G. L. Henderson, and D.W. Kushnir, 1982, Geology of the Hibernia discovery, in: The
deliberate search for the subtle trap (M.T. Halbouty, Ed.) AAPG Memoir 32, American Association of Petroleum
Geologists, Tulsa, p.p.181-195.
Brown, A. R., 1988, Interpretation of three-dimensional seismic data, Second edition, AAPG Memoir 42, American
Association of Petroleum Geologists, Tulsa, 253p.
Boak, J. M., 1992, Geological cross sections: in: Development Geology Reference Manual (Morton-Thompson, M and
A.M. Woods, Eds.), AAPG Methods in Exploration Series, No. 10, American Association of Petroleum
Geologists, Tulsa, p.p. 300-302.
Dahlberg, E.C., 1979, Geological Note: Hydrocarbon reserves estimation from contour maps: A do-it-yourself
exercise, Bull Can Petrol Geol, v. 27 no 1, March, p.p. 94-99.
Curry, W. H. and A. H. Curry III, 1972, South Glenrock oil field, Wyoming: prediscovery thinking and postdiscovery
description, in: Stratigraphic oil and gas fields-classification, exploration methods and case histories (King, R.E.,
Ed.) AAPG Memoir 16, American Association of Petroleum Geologists, Tulsa, p.p. 415-427.
Department of Trade and Industry, 2005, Department of Trade and Industry well numbering system, Petroleum
Operational Notice 12, Department of Trade and Industry, HM Government, UK,
http://www.og.dti.gov.uk/regulation/pons/pon_12.htm
Dessler, J. F., 1992, Marine seismic data acquisition, in: Development Geology Reference Manual (Morton-Thompson,
M and A.M. Woods, Eds.), AAPG Methods in Exploration Series, No. 10, American Association of Petroleum
Geologists, Tulsa, p.p. 361-363.
Duncan, P. M., 1992, Basic seismic processing, in: Development Geology Reference Manual (Morton-Thompson, M
and A. M. Woods, Eds.), AAPG Methods in Exploration Series, No. 10, American Association of Petroleum
Geologists, Tulsa, p.p.364-371.
98

Exploration

Forest, M. (2000), Bright investment pays off, AAPG Explorer, July, American Association of Petroleum Geologists,
Tulsa, p.p.13-14.
Hart, B., 2000, 3-D Seismic interpretations: a primer for geologists, SEPM Short course No. 48, Society for
Sedimentary Geology, Tulsa, 123p.
Jorgensen, L. N., 1992, Dan Field-Denmark, in: Structural Traps VI, Treatise of petroleum geology, atlas of oil and gas
fields, (Foster, N. H. and E. A. Beaumont, Eds.), AAPG Treatise of petroleum geology, American Association of
Petroleum Geologists, Tulsa, p.p.199-218.
Keary, P, and M. Brooks, 1991, An introduction to geophysical exploration, 2nd Edition, Blackwell Science Ltd,
Oxford, 254p.
Larner, K. and D. Hale, 1992, Seismic migration, in: Development geology reference manual (Morton-Thompson, M
and A.M. Woods, Eds.), AAPG Methods in Exploration Series, No. 10, American Association of Petroleum
Geologists, Tulsa, p.p. 372-376.
Link, W. K., 1952, Significance of oil and gas seeps in world oil exploration. AAPG Bulletin., v. 36, p.p.1505-1540
Mineral Management Services, 1984, Oil and gas leasing procedures guidelines, Gulf of Mexico Region:MMS,
Department of the Interior, US Government, 188p.
North, F. K., 1985, Petroleum Geology, Chapman and Hall, London, p.p. 405-506.
Price, L. C., 1976, Aqueous solubility of petroleum as applied to its origins and primary migration: AAPG Bulletin,
v.60, p.p. 231-244.
Schlumberger, 1996, The Making of Oil, Schlumberger Wireline and Testing, Sugarland, Texas.
Schlumberger, 2006, On-line Glossary: http://www.glossary.oilfield.slb.com/
Short, D. M. 1992, Seismic data acquisition on land, in: Development Geology Reference Manual (Morton-Thompson,
M and A.M. Woods, Eds.), AAPG Methods in Exploration Series, No. 10, American Association of Petroleum
Geologists, Tulsa, p.p. 358-360.
Tinkler, J. C., 1992, Part1. Land and Leasing, in: Development Geology Reference Manual (Morton-Thompson, M and
A.M. Woods Eds.), AAPG Methods in Exploration Series, No. 10, American Association of Petroleum Geologists,
Tulsa, p.p. 1-20.
Vail, P. R., R. M. Mitchum, Jr, R. G. Todd, J. M. Widmier, S. Thompson, J. B. Sangree, J. N. Bubb, and W. G.
Hatlelid, 1977, Seismic stratigraphy and global changes of sea level, in: Seismic Stratigraphy-Applications to
Hydrocarbon Exploration, (Payton, C. E., Ed.), Memoir 26, American Association of Petroleum Geologists, Tulsa,
p.p. 49-205.
Weissenburger, K. W., 1992, Subsurface maps: in: Development Geology Reference Manual (Morton-Thompson, M
and A.M. Woods, Eds.), AAPG Methods in Exploration Series, No. 10, American Association of Petroleum
Geologists, Tulsa, p.p. 294-299.
Yilmaz, z. 1992, Three-dimensional seismic method, in: Development Geology Reference Manual (MortonThompson, M and A.M. Woods, Eds.), AAPG Methods in Exploration Series, No. 10, American Association of
Petroleum Geologists, Tulsa, p.p. 385-387.

99