A - EIA - ARI - 2013 World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and
Shale Oil Resource Assessment

Technically Recoverable Shale Gas and Shale Oil Resources:
An Assessment of 137 Shale Formations in 41 Countries
Outside the United States

Prepared for:
U.S. Energy Information Administration
U.S. Department of Energy

Prepared by:
Advanced Resources International, Inc.
4501 Fairfax Drive, Suite 910, Arlington, VA 22203 USA
P: 703.528.8420 | W: www.adv-res.com

June 2013
EIA/ARI World Shale Gas and Shale Oil Resource Assessment
June, 2013 i
Table of Contents
EXECUTIVE SUMMARY AND STUDY RESULTS .................................................................................................... 1-1
STUDY METHODOLOGY .......................................................................................................................................... 2-1
I. CANADA ....................................................................................................................................................... I-1
II. MEXICO ....................................................................................................................................................... II-1
III. AUSTRALIA ................................................................................................................................................ III-1
IV. N. SOUTH AMERICA ................................................................................................................................ IV-1
V. ARGENTINA ................................................................................................................................................ V-1
VI. BRAZIL ....................................................................................................................................................... VI-1
VII. OTHER S. SOUTH AMERICA ................................................................................................................... VII-1
VIII. POLAND (Including Lithuania and Kaliningrad) ........................................................................................ VIII-1
IX. RUSSIA ...................................................................................................................................................... IX-1
X. EASTERN EUROPE (Bulgaria, Romania, Ukraine)..................................................................................... X-1
XI. UNITED KINGDOM .................................................................................................................................... XI-1
XII. SPAIN ........................................................................................................................................................ XII-1
XIII. NORTHERN AND WESTERN EUROPE .................................................................................................. XIII-1
XIV. MOROCCO (Including Western Sahara and Mauritania) ........................................................................ XIV-1
XV. ALGERIA ................................................................................................................................................... XV-1
XVI. TUNISIA .................................................................................................................................................... XVI-1
XVII. LIBYA....................................................................................................................................................... XVII-1
XVIII. EGYPT.................................................................................................................................................... XVIII-1
XIX. SOUTH AFRICA ....................................................................................................................................... XIX-1
XX. CHINA........................................................................................................................................................ XX-1
XXI. MONGOLIA .............................................................................................................................................. XXI-1
XXII. THAILAND ............................................................................................................................................... XXII-1
XXIII. INDONESIA ............................................................................................................................................ XXIII-1
XXIV. INDIA/PAKISTAN .................................................................................................................................. XXIV-1
XXV. JORDAN ................................................................................................................................................. XXV-1
XXVI. TURKEY ................................................................................................................................................ XXVI-1

June, 2013 1
EXECUTIVE SUMMARY AND STUDY RESULTS
The World Shale Gas and Shale Oil Resource Assessment, conducted by Advanced
Resources International, Inc. (ARI) for the U.S. DOEs Energy Information Administration (EIA),
evaluates the shale gas and shale oil resource in 26 regions, containing 41 individual countries,
Figure 1. The assessment did not include the United States, but for completeness we have
included in the Executive Summary our internal estimates of shale gas and shale oil resources
for the U.S., extracted from ARIs proprietary shale resource data base.
The information provided in this report should be viewed as the second step on a
continuing pathway toward a more rigorous understanding and a more comprehensive
assessment of the shale gas and shale oil resources of the world. This report captures our
latest view of the in-place and technically recoverable shale gas and shale oil in the 95 shale
basins and 137 shale formations addressed by the study.
Figure 1. Assessed Shale Gas and Shale Oil Basins of the World
June, 2013 2
The twenty-six chapters of the report discuss our current understanding of the quantity
and quality of shale gas and shale oil resources in the 41 assessed countries, Table 1. Initial
shale exploration is underway in many of these countries. New geologic and reservoir data
collected by these industry and research drilling programs will enable future assessments of
shale gas and shale oil resources to progressively become more rigorous.
Table 1. Scope of EIA/ARI World Shale Gas and Shale Oil Resource Assessment
Conti nent Regi on
Number of
Countri es
Number of
Basi ns
Number of
Shal e
Formati ons
I. Canada 1 12 13
II. Mexico 1 5 8
Subtotal 2 17 21
Australia III. Australia 1 6 11
IV. N. South America 2 3 3
V. Argentina 1 4 6
VI. Brazil 1 3 3
VII. Other S. South America 4 3 4
Subtotal 8 13 16
VIII. Poland* 3 5 5
IX. Russia 1 1 2
X. Other Eastern Europe 3 3 4
Subtotal 7 9 11
XI. UK 1 2 2
XII. Spain 1 1 1
XIII. Other Western Europe 5 5 10
Subtotal 7 8 13
Europe Total 14 17 24
XIV. Morocco** 3 2 2
XV. Algeria 1 7 11
XVI. Tunisia 1 1 2
XVII. Libya 1 3 5
XVIII. Egypt 1 4 4
XIX. South Africa 1 1 3
Subtotal 8 18 27
XX. China 1 7 18
XXI. Mongolia 1 2 2
XXII. Thailand 1 1 1
XXIII. Indonesia 1 5 7
XXIV. India/Pakistan 2 5 6
XXV. Jordan 1 2 2
XXVI. Turkey 1 2 2
Subtotal 8 24 38
41 95 137
*Includes Lithuania and Kaliningrad. **Includes Western Sahara & Mauritania
Total
North
America
South
America
Eastern
Europe
Western
Europe
Africa
Asia
June, 2013 3
When reviewing the shale gas and shale oil resource assessments presented in this
report, it is important to consider these three points:
First, the resource assessments in the individual regional and country chapters are
only for the higher quality, prospective areas of each shale gas and shale oil basin.
The lower quality and less defined areas in these basins, which likely hold additional
shale resources, are not included in the quantitatively assessed and reported values.
Second, the in-place and technically recoverable resource values for each shale gas
and shale oil basin have been risked to incorporate: (1) the probability that the shale
play will (or will not) have sufficiently attractive flow rates to become developed; and
(2) an expectation of how much of the prospective area set forth for each shale basin
and formation will eventually be developed. (Attachment C provides a listing of the
risk factors used in this shale resource assessment study.)
We benefited greatly from the major new efforts on assessing and pursuing shale
gas and shale oil resources, stimulated in part by the 2011 EIA/ARI study in
countries such as Algeria, Argentina and Mexico, among many others.
No doubt, future exploration will lead to changes in our understanding and assessments
of the ultimate size and recoverability of international shale gas and shale oil resources. We
would encourage the U.S. Energy Information Administration, which commissioned this unique,
cutting edge shale gas and shale oil resource assessment, to incorporate the new exploration
and resource information that will become available during the coming years, helping keep this
world shale resource assessment evergreen.
STUDY AUTHORS
Three individuals, each a long-term member of Advanced Resources International, Inc.,
are the authors of this International Shale Gas Resource Assessment, namely: Vello A.
Kuuskraa, President; Scott H. Stevens, Sr. Vice President; and Keith Moodhe, Sr. Consultant.
Messrs. Kuuskraa, Stevens and Moodhe (plus Tyler Van Leeuwen) were the primary authors of
the previous (April, 2011) version of the world shale gas resource assessment. Attachment A
provides brief background information on each of the study authors.
June, 2013 4
In addition, Mr. Aloulou Fawzi, EIAs Project Manager for this study, provided highly
valuable review and comments, as did numerous EIA, DOE, DOI, USGS and State Department
officials. We are appreciative of their thoughtful input.
SUMMARY OF STUDY FINDINGS
Although the exact in-place and technically recovered resource numbers will change
with time, our work to date shows that the world shale gas and shale oil resource is vast.
Shale Gas Resources. Overall, for the 41 countries assessed in the EIA/ARI study,
we identified a total risked shale gas in-place of 31,138 Tcf. Of this total,
approximately 6,634 Tcf is considered the risked, technically recoverable shale gas
resource, not including the U.S., Table 2A. Adding the U.S. shale gas resource
increases the assessed shale gas in-place and technically recoverable shale gas
resources of the world to 35,782 Tcf and 7,795 Tcf, respectively.
Shale Oil Resources. The previous EIA/ARI study did not assess shale oil
resources, thus the 2013 report represents a major new expansion of scope. In this
EIA/ARI assessment, we identified a total risked shale oil in-place of 5,799 billion
barrels, with 286.9 billion barrels as the risked, technically recoverable shale oil
resource, not including the U.S., Table 2B. Adding the U.S. shale oil resource
increases the assessed shale oil in-place and technically recoverable shale oil
resources of the world to 6,753 billion barrels and 335 billion barrels, respectively.
Two-thirds of the assessed, technically recoverable shale gas resource is concentrated
in six countries - - U.S., China, Argentina, Algeria, Canada and Mexico. As shown on Figure 2,
the top ten countries account for over 80% of the currently assessed, technically recoverable
shale gas resources of the world.
Similarly, two-thirds of the assessed, technically recoverable shale oil resource is
concentrated in six countries - - Russia, U.S., China, Argentina, Libya and Venezuela. The top
ten countries, listed on Figure 2, account for about three-quarters of the currently assessed,
technically recoverable shale oil resources of the world.
Importantly, much of this shale resource exists in countries with limited endowments of
conventional oil and gas supplies such as South Africa, Jordan and Chile or resides in countries
where conventional hydrocarbon resources have largely been depleted, such as Europe.
June, 2013 5
Table 2A. Risked Shale Gas In-Place and Technically Recoverable: Seven Continents
Conti nent
Ri sked
Gas In-Pl ace
(Tcf)
Ri sked Techni cal l y
Recoverabl e
(Tcf)
North America (Ex. U.S.) 4,647 1,118
Australia 2,046 437
South America 6,390 1,431
Europe 4,895 883
Africa 6,664 1,361
Asia 6,495 1,403
Sub-Total 31,138 6,634
U.S. 4,644 1,161
TOTAL 35,782 7,795

Table 2B. Risked Shale Oil In-Place and Technically Recoverable: Seven Continents

Conti nent
Ri sked
Oi l In-Pl ace
(B bbl )
Ri sked Techni cal l y
Recoverabl e
(B bbl )
North America (Ex. U.S.) 437 21.9
Australia 403 17.5
South America 1,152 59.7
Europe 1,551 88.6
Africa 882 38.1
Asia 1,375 61.1
Sub-Total 5,799 286.9
U.S. 954 47.7
TOTAL 6,753 334.6

The tabulation of shale resources at the country-level (excluding the U.S.) is provided in
Table 3. More detailed information on the size of the shale gas and shale oil resource, at the
basin- and formation-level, is provided in Attachment B.
Significant additional shale gas and shale oil resources exist in the Middle East, Central
Africa and other countries not yet included in our study. Hopefully, future editions of this report
will address these important potential shale resource areas.
June, 2013 6
Figure 2. Assessed World Shale Gas and Shale Oil Resources (42 Countries, including U.S.)
1. U.S. 1,161 1. Russia 75
2. China 1,115 2. U.S. 48
3. Argentina 802 3. China 32
4. Algeria 707 4. Argentina 27
5. Canada 573 5. Libya 26
6. Mexico 545 6. Australia 18
7. Australia 437 7. Venezuela 13
8. South Africa 390 8. Mexico 13
9. Russia 285 9. Pakistan 9
10. Brazil 245 10. Canada 9
11. Others 1,535 11. Others 65
TOTAL 7,795 TOTAL 335
Shale Gas Resources
(Tcf) (Billion Barrels)
Technically Recoverable Technically Recoverable
Shale Oil Resources
June, 2013 7
Table 3. Risked Shale Gas and Shale Oil Resources In-Place and Technically Recoverable,
41 Countries Assessed in the EIA/ARI Study
Conti nent Regi on Country
Ri sked Gas
In-Pl ace
(Tcf)
Techni cal l y
Recoverabl e
(Tcf)
Ri sked Oi l
In-Pl ace
(Bi l l i on bbl )
Techni cal l y
Recoverabl e
(Bi l l i on bbl )
2,413 573 162 8.8
2,233 545 275 13.1
4,647 1,118 437 21.9
Australia 2,046 437 403 17.5
Colombia 308 55 120 6.8
Venezuela 815 167 269 13.4
1,123 222 389 20.2
3,244 802 480 27.0
1,279 245 134 5.3
Bolivia 154 36 11 0.6
Chile 228 48 47 2.3
Paraguay 350 75 77 3.7
Uruguay 13 2 14 0.6
744 162 150 7.2
6,390 1,431 1,152 59.7
Poland 763 148 65 3.3
Lithuania 4 0 5 0.3
Kaliningrad 20 2 24 1.2
1,921 285 1,243 74.6
Bulgaria 66 17 4 0.2
Romania 233 51 6 0.3
Ukraine 572 128 23 1.1
872 195 33 1.6
134 26 17 0.7
42 8 3 0.1
France 727 137 118 4.7
Germany 80 17 14 0.7
Netherlands 151 26 59 2.9
Denmark 159 32 0 0.0
Sweden 49 10 0 0.0
1,165 221 190 8.3
Europe 4,895 883 1,551 88.6
95 20 5 0.2
3,419 707 121 5.7
114 23 29 1.5
942 122 613 26.1
535 100 114 4.6
1,559 390 0 0.0
6,664 1,361 882 38.1
4,746 1,115 644 32.2
55 4 85 3.4
22 5 0 0.0
303 46 234 7.9
India 584 96 87 3.8
Pakistan 586 105 227 9.1
35 7 4 0.1
163 24 94 4.7
6,495 1,403 1,375 61.1
31,138 6,634 5,799 286.9
*Includes Western Sahara & Mauritania
Grand Total
Asia
XX. China
XXI. Mongolia
XXII. Thailand
XXIII. Indonesia
XXIV. India/Pakistan
XXV. Jordan
XXVI. Turkey
Total
XII. Spain
XIII. Other Western Europe
Subtotal
Africa
XIV. Morocco*
XV. Algeria
XVI. Tunisia
XVII. Libya
XVIII. Egypt
XIX. South Africa
Total
Total
Western
Europe
XI. UK
VII. Other S. South America
Subtotal
Total
Eastern
Europe
VIII. Poland
IX. Russia
X. Other Eastern Europe
Subtotal
South
America
IV. N. South America
Subtotal
V. Argentina
VI. Brazil
North
America
I. Canada
II. Mexico
Total
III. Australia
June, 2013 8
COMPARISON OF STUDY FINDINGS
Since the publication of the first EIA/ARI shale gas resource assessment in 2011,
considerable new information has become available, helping provide a more rigorous resource
assessment. New basins and countries have been added to the list. Data from more recently
drilled exploration wells have helped constrain the resource size and quality - - sometimes
increasing and sometimes reducing the resource estimates. With new information, some areas
of prospective shale basins previously placed in the gas window are now classified as wet
gas/condensate. In addition, associated gas from shale oil plays has been incorporated into the
shale gas resource estimate.
Table 4 provides a comparison of the world shale gas resources included in the current
(year 2013) EIA/ARI assessment with the initial EIA/ARI shale gas resource assessment
published in 2011.
Table 5 provides a more detailed comparison and discussion of the differences between
the 2011 and the current (2013) EIA/ARI estimates of risked, technically recoverable shale gas
resources for 16 selected countries.
Table 4. Comparison of 2011 EIA/ARI Study and
Current EIA/ARI Study of Assessed World Shale Gas Resources

2011 2013
Ri sked Ri sked
Conti nent Recoverabl e Recoverabl e
(Tcf) (Tcf)
North America (Ex. U.S.) 1,069 1,118
Australia 396 437
South America 1,225 1,431
Europe 624 883
Africa 1,042 1,361
Asia 1,404 1,403
Total 5,760 6,634

June, 2013 9
Table 5. Selected Comparison of 2011 and Current EIA/ARI Estimates
of World Shale Gas Resources

Risked, Technically Recoverable
Shale Gas Resources (Tcf)
Discussion
April 2011 Report May 2013 Report
1. North America
Canada 388 573 7 basins vs. 12 basins.
Mexico 681 545 Better data on areal extent.
2. South America
Argentina 774 802
Improved dry and wet gas areal
definitions.
Brazil 226 245 New dedicated chapter.
Venezuela 11 167
Included associated gas; better
data.
3. Europe
Poland 187 148
Higher TOC criterion, better data
on Ro.
France 180 137 Better data on SE Basin in France.
Norway 83 0
Eliminated speculative area for
Alum Shale.
Ukraine 42 128 Added major basin in Ukraine.
Russia
-
285
New dedicated chapter.
4. Africa
Algeria 230 707 1 basin vs. 7 basins.
Libya 290 122
Higher TOC criterion; moved area
to oil.
South Africa 485 390
Reduced area due to igneous
intrusions.
Egypt
-
100
New dedicated chapter.
5. Asia
China 1,225 1,115 Better data; higher TOC criterion.
India/Pakistan 114 201
Expanded assessment for
Pakistan.
June, 2013 10
Beyond the resource numbers, the current EIA/ARI World Shale Gas and Shale Oil
Resource Assessment represents a major step-forward in terms of the depth and hard data of
the resource information assembled for 137 distinct shale formations and 95 shale basins in 41
countries. In Table 6, we strive to more fully convey the magnitude of differences in these two
shale resource assessments.
Table 6. Comparison of Scope and Coverage,
EIA/ARI 2011 and 2013 World Shale Gas Resource Assessments

EIA/ARI 2011 Report EIA/ARI 2013 Report
No. of Regions (Chapters) 14 26
No. of Countries 32 41
No. of Basins 48 95
No. of Formations 69 137
Resource Coverage

Shale Gas
Shale Oil Not requested
No. of Pages 355 ~700
No. of Original Maps ~70 ~200
June, 2013
Attachment A
Authors of World Shale Gas and Shale Oil Resource Assessment
Vello A. Kuuskraa, President of Advanced Resources International, Inc. (ARI), has over 40
years of experience assessing unconventional oil and gas resources. Mr. Kuuskraa headed
the team that prepared the 1978, three volume report entitled Enhanced Recovery of
Unconventional Gas for the U.S. Department of Energy (DOE) that helped guide
unconventional gas R&D and technology development efforts during the formative period
1978-2000. He is a member of the Potential Gas Committee and has authored over 100
technical papers on energy resources. Mr. Kuuskraa is a 2001 recipient of the Ellis Island
Medal of Honor that recognizes individuals for exceptional professional contributions by
America's diverse cultural ancestry. He currently serves on the Board of Directors of
Southwestern Energy Company (SWN), on the Board of Directors for Research Partnership to
Secure Energy for America (RPSEA) and on the National Petroleum Council. Mr. Kuuskraa
holds a M.B.A., Highest Distinction from The Wharton Graduate School and a B.S., Applied
Mathematics/ Economics; from North Carolina State University.

Scott H. Stevens, Sr. Vice President of Advanced Resources International, Inc. (ARI), has 30
years of experience in unconventional gas and oil resources. Mr. Stevens advises Major oil
companies, governments, and financial industry clients on shale gas/oil and coalbed methane
investments in North America and abroad. After starting his career with Getty and Texaco in
1983 working the liquids-rich Monterey shale deposit in California, Stevens joined ARI in 1991.
He has initiated or evaluated hundreds of unconventional oil & gas drilling projects in the USA,
Australia, Chile, China, Indonesia, Poland, and other countries. Mr. Stevens holds a B.A. in
Geology (Distinction) from Pomona College, an M.S. in Geological Science from Scripps
Institution of Oceanography, and an A.M. in Regional Studies East Asia (Economics and
Chinese) from Harvard University.

Keith Moodhe, Sr. Consultant with Advanced Resources International, Inc. (ARI ), has eight
years of experience with unconventional resources in the U.S. and globally. He is an expert in
geographic information system (GIS) mapping and analysis of shale gas/oil and coalbed
methane geologic and reservoir properties. During his career he has constructed a geologic
data base of shale properties in China; assessed the shale and CBM resource potential of
major basins in Southeast Asia, Indonesia, Australia, and South America; and conducted
geologic and GIS analysis of domestic and global shale resources for the U.S. Energy
Information Administration (EIA) and various industry and investment firms. Mr. Moodhe holds
a B.S. in Geology with a minor in Economics from the College of William & Mary.

June, 2013

Attachment B
Estimates of U.S. Shale Gas and Shale Oil Resources Extracted from
Advanced Resources Internationals Proprietary Shale Resource Data Base
June, 2013

Estimates of U.S. Shale Gas and Shale Oil Resources Extracted from
Advanced Resources Internationals Proprietary Shale Resource Data Base
BACKGROUND
While not within the scope of work of the EIA/ARI study of world shale gas and shale oil
resources, for purposes of completeness we have provided information from Advanced
Resources Internationals (ARI) proprietary shale resource data base on U.S. shale gas and
shale oil resources.
The overall estimate of 1,161 Tcf of risked, technically recoverable wet and dry shale
gas for the U.S. represents an aggregation of information from 15 shale basins and 70 distinct
and individually addressed plays, Table B-1. For example, the resource estimate for the major
Marcellus Shale play in the Appalachian Basin is the sum of eight individually assessed plays,
where each play has been partitioned to capture differences in geologic and reservoir conditions
and in projected well performance across this vast basin. (We used an average shale gas
recovery factor of 25% to estimate the U.S. shale gas resource in-place.)
The overall estimate of 47.7 billion barrels of risked, technically recoverable shale oil and
condensate for the U.S. represents an aggregation of information from 8 shale basins and 35
distinct and individually assessed plays, Table B-1. (We used an average shale oil recovery
factor of 5% to estimate the U.S. shale oil resource in-place.)
For completeness, the U.S. has already produced 37 Tcf of shale gas plus modest
volumes of shale oil/condensate, from major shale plays such as the Barnett, Fayetteville and
Bakken, among others. These volumes of past shale gas and shale oil production are not
included in the above remaining reserve and undeveloped shale resource values.
Advanced Resources has plans for performing a major update of its shale gas and shale
oil resource base this year, incorporating emerging shale resource plays such as the
Tuscaloosa Marine Shale in Louisiana, the Eaglebrine (Woodbine/Eagle Ford) in East Texas,
and the Mancos Shale in the San Juan Basin.
June, 2013
Table B-1. U.S. Remaining Shale Gas Reserves and Undeveloped Resources

Remai ni ng Remai ni ng
Reserves and Reserves and
Di sti nct Undevel oped Di sti nct Undevel oped
Pl ays Resources Pl ays Resources
(#) (Tcf) (#) (Billion Barrels)
1. Northeast
Marcellus 8 369 2 0.8
Utica 3 111 2 2.5
Other 3 29 - -
2. Southeast
Haynesville 4 161 - -
Bossier 2 57 - -
Fayetteville 4 48 - -
3. Mi d-Conti nent
Woodford* 9 77 5 1.9
Antrim 1 5 - -
New Albany 1 2 - -
4. Texas
Eagle Ford 6 119 4 13.6
Barnett** 5 72 2 0.4
Permian*** 9 34 9 9.7
5. Rocki es/Great Pl ai ns
Niobrara**** 8 57 6 4.1
Lewis 1 1 - -
Bakken/Three Forks 6 19 5 14.7
TOTAL 70 1161 35 47.7
Resources Resources
Shal e Gas Shal e Oi l
*Woodford includes Ardmore, Arkoma and Anadarko (Cana) basins.

**Barnett includes the Barnett Combo.
***Permian includes Avalon, Cline and Wolfcamp shales in the Delaware and Midland sub-basins.
****Niobrara Shale play includes Denver, Piceance and Powder River basins.

June, 2013

Attachment C
Size of Assessed Shale Gas and Shale Oil Resources,
at Basin- and Formation-Levels

Attachment C
Size of Assessed Shale Gas and Shale Oil Resources, at Basin- and Formation-Levels
June, 2013 Attachment C-1

Conti nent Regi on Basi n Formati on
Ri sked Gas
In-Pl ace
(Tcf)
Techni cal l y
Recoverabl e
(Tcf)
Ri sked Oi l
In-Pl ace
(Bi l l i on bbl )
Techni cal l y
Recoverabl e
(Bi l l i on bbl )
Muskwa/Otter Park 376 94 0 0.0
Evie/Klua 154 39 0 0.0
Cordova Muskwa/Otter Park 81 20 0 0.0
Liard Lower Besa River 526 158 0 0.0
Deep Basin Doig Phosphate 101 25 0 0.0
Alberta Basin Banff/Exshaw 5 0 11 0.3
East and West Shale Basin Duvernay 483 113 67 4.0
Deep Basin North Nordegg 72 13 20 0.8
NW Alberta Area Muskwa 142 31 42 2.1
Southern Alberta Basin Colorado Group 286 43 0 0.0
Williston Basin Bakken 16 2 22 1.6
Appalachian Fold Belt Utica 155 31 0 0.0
Windsor Basin Horton Bluff 17 3 0 0.0
Eagle Ford Shale 1,222 343 106 6.3
Tithonian Shales 202 50 0 0.0
Eagle Ford Shale 501 100 0 0.0
Tithonian La Casita 118 24 0 0.0
Tampico Pimienta 151 23 138 5.5
Tamaulipas 9 1 13 0.5
Pimienta 10 1 12 0.5
Veracruz Maltrata 21 3 7 0.3
Roseneath-Epsilon-Murteree (Nappamerri) 307 89 17 1.0
Roseneath-Epsilon-Murteree (Patchawarra) 17 4 9 0.4
Roseneath-Epsilon-Murteree (Tenappera) 1 0 3 0.1
Maryborough Goodwood/Cherwell Mudstone 64 19 0 0.0
Carynginia 124 25 0 0.0
Kockatea 44 8 14 0.5
Canning Goldwyer 1,227 235 244 9.7
L. Arthur Shale (Dulcie Trough) 41 8 3 0.1
L. Arthur Shale (Toko Trough) 27 5 22 0.9
M. Velkerri Shale 94 22 28 1.4
L. Kyalla Shale 100 22 65 3.3
Australia Australia
Cooper
Perth
Georgina
Beetaloo
North America
Canada
Mexico
Horn River
Burgos
Sabinas
Tuxpan

Attachment C

Ri sked Gas
In-Pl ace
(Tcf)
Techni cal l y
Recoverabl e
(Tcf)
Ri sked Oi l
In-Pl ace
(Bi l l i on bbl )
Techni cal l y
Recoverabl e
(Bi l l i on bbl )
Middle Magdalena Valley La Luna/Tablazo 135 18 79 4.8
Llanos Gacheta 18 2 13 0.6
Colombia/Venezuela Maracaibo Basin La Luna/Capacho 970 202 297 14.8
Los Molles 982 275 61 3.7
Vaca Muerta 1,202 308 270 16.2
Aguada Bandera 254 51 0 0.0
Pozo D-129 184 35 17 0.5
Austral-Magallanes Basin L. Inoceramus-Magnas Verdes 605 129 131 6.6
Parana Basin Ponta Grossa 16 3 0 0.0
Parana Basin Ponta Grossa 450 80 107 4.3
Solimoes Basin Jandiatuba 323 65 7 0.3
Amazonas Basin Barreirinha 507 100 19 0.8
Paraguay Ponta Grossa 46 8 14 0.5
Uruguay Cordobes 13 2 14 0.6
Paraguay/Bolivia Chaco Basin Los Monos 457 103 75 3.8
Chile Austral-Magallanes Basin Estratos con Favrella 228 48 47 2.3
Baltic Basin/Warsaw Trough Llandovery 532 105 25 1.2
Lublin Llandovery 46 9 0 0.0
Podlasie Llandovery 54 10 12 0.6
Fore Sudetic Carboniferous 107 21 0 0.0
Lithuania/Kaliningrad Baltic Basin Llandovery 24 2 29 1.4
West Siberian Central Bazhenov Central 1,196 144 965 57.9
West Siberian North Bazhenov North 725 141 278 16.7
Carpathian Foreland Basin L. Silurian 362 72 0 0.0
Dniepr-Donets L. Carboniferous 312 76 23 1.1
Ukraine/Romania L. Silurian 48 10 2 0.1
Romania/Bulgaria Etropole 148 37 8 0.4
N. UK Carboniferous Shale Region Carboniferous Shale 126 25 0 0.0
S. UK Jurassic Shale Region Lias Shale 8 1 17 0.7
Spain Cantabrian Jurassic 42 8 3 0.1
Lias Shale 24 2 38 1.5
Permian-Carboniferous 666 127 79 3.2
Southeast Basin Lias Shale 37 7 0 0.0
Posidonia 78 17 11 0.5
Wealden 2 0 3 0.1
Epen 94 15 47 2.4
Geverik Member 51 10 6 0.3
Posidonia 7 1 5 0.3
Sweden Alum Shale - Sweden 49 10 0 0.0
Denmark Alum Shale - Denmark 159 32 0 0.0
Paris Basin
Lower Saxony
West Netherlands Basin
Scandinavia Region
Western Europe
UK
France
Germany
Netherlands
Eastern Europe
Poland
Russia
Ukraine
Moesian Platform
South America
Colombia
Argentina
Brazil
Neuquen
San Jorge Basin
Parana Basin

Attachment C

Ri sked Gas
In-Pl ace
(Tcf)
Techni cal l y
Recoverabl e
(Tcf)
Ri sked Oi l
In-Pl ace
(Bi l l i on bbl )
Techni cal l y
Recoverabl e
(Bi l l i on bbl )
Tindouf L. Silurian 75 17 5 0.2
Tadla L. Silurian 20 3 0 0.0
Frasnian 496 106 78 3.9
Tannezuft 731 176 9 0.5
Illizi Tannezuft 304 56 13 0.5
Mouydir Tannezuft 48 10 0 0.0
Frasnian 50 9 5 0.2
Tannezuft 256 51 0 0.0
Frasnian 467 93 0 0.0
Frasnian 94 16 6 0.2
Tannezuft 542 105 8 0.3
Tindouf Tannezuft 135 26 2 0.1
Frasnian 69 12 28 1.4
Tannezuft 240 42 104 5.2
Frasnian 36 5 26 1.3
Sirte/Rachmat Fms 350 28 406 16.2
Etel Fm 298 45 51 2.0
Murzuq Tannezuft 19 2 27 1.3
Shoushan/Matruh Khatatba 151 30 17 0.7
Abu Gharadig Khatatba 326 65 47 1.9
Alamein Khatatba 17 1 14 0.6
Natrun Khatatba 42 3 36 1.4
Prince Albert 385 96 0 0.0
Whitehill 845 211 0 0.0
Collingham 328 82 0 0.0
Ghadames
Sirte
Karoo Basin
Ghadames/Berkine
Ahnet
Timimoun
Reggane
Ghadames
Africa
Morocco
Algeria
Tunisia
Libya
Egypt
South Africa

Attachment C

Ri sked Gas
In-Pl ace
(Tcf)
Techni cal l y
Recoverabl e
(Tcf)
Ri sked Oi l
In-Pl ace
(Bi l l i on bbl )
Techni cal l y
Recoverabl e
(Bi l l i on bbl )
Qiongzhusi 500 125 0 0.0
Longmaxi 1,146 287 0 0.0
Permian 715 215 0 0.0
L. Cambrian 181 45 0 0.0
L. Silurian 415 104 0 0.0
Niutitang/Shuijintuo 46 11 0 0.0
Longmaxi 28 7 1 0.0
Qixia/Maokou 40 10 5 0.2
Mufushan 29 7 0 0.0
Wufeng/Gaobiajian 144 36 5 0.2
U. Permian 8 2 1 0.1
L. Cambrian 176 44 0 0.0
L. Ordovician 377 94 0 0.0
M.-U. Ordovician 265 61 31 1.6
Ketuer 161 16 129 6.5
Pingdiquan/Lucaogou 172 17 109 5.4
Triassic 187 19 134 6.7
Songliao Basin Qingshankou 155 16 229 11.5
East Gobi Tsagaantsav 29 2 43 1.7
Tamtsag Tsagaantsav 26 2 43 1.7
Thailand Khorat Basin Nam Duk Fm 22 5 0 0.0
C. Sumatra Brown Shale 41 3 69 2.8
S. Sumatra Talang Akar 68 4 136 4.1
Naintupo 34 5 0 0.0
Meliat 25 4 1 0.0
Tabul 4 0 11 0.3
Kutei Balikpapan 16 1 17 0.7
Bintuni Aifam Group 114 29 0 0.0
Cambay Basin Cambay Shale 146 30 54 2.7
Krishna-Godavari Permian-Triassic 381 57 20 0.6
Cauvery Basin Sattapadi-Andimadam 30 5 8 0.2
Damodar Valley Barren Measure 27 5 5 0.2
Sembar 531 101 145 5.8
Ranikot 55 4 82 3.3
Hamad Batra 33 7 0 0.0
Wadi Sirhan Batra 2 0 4 0.1
SE Anatolian Dadas 130 17 91 4.6
Thrace Hamitabat 34 6 2 0.1
Total 31,138 6,634 5,799 286.9
Turkey
Tarakan
Lower Indus
Asia
China
Sichuan Basin
Yangtze Platform
Jianghan Basin
Greater Subei
Tarim Basin
Junggar Basin
Mongolia
Indonesia
India
Pakistan
Jordan
June, 2013

Attachment D
Risk Factors Used for Shale Gas and Shale Oil Formations
in the EIA/ARI Resource Assessment

Attachment D
Risk Factors Used for Shale Gas and Shale Oil Formations in the EIA/ARI Resource Assessment
June, 2013 Attachment D-1
Pl ay
Success
Factor
Prospecti ve
Area Success
Factor
Composi te
Success
Factor
Muskwa/Otter Park 100% 75% 75%
Evie/Klua 100% 75% 75%
Cordova Muskwa/Otter Park 100% 60% 60%
Liard Lower Besa River 100% 50% 50%
Deep Basin Doig Phosphate 100% 50% 50%
Alberta Basin Banff/Exshaw 100% 40% 40%
East and West Shale Basin Duvernay 100% 70% 70%
Deep Basin North Nordegg 100% 50% 50%
NW Alberta Area Muskwa 100% 50% 50%
Southern Alberta Basin Colorado Group 80% 35% 28%
Williston Basin Bakken 100% 60% 60%
Appalachian Fold Belt Utica 100% 40% 40%
Windsor Basin Horton Bluff 100% 40% 40%
Eagle Ford Shale 100% 60% 60%
Tithonian Shales 60% 50% 30%
Eagle Ford Shale 80% 50% 40%
Tithonian La Casita 60% 30% 18%
Tampico Pimienta 70% 50% 35%
Tamaulipas 70% 50% 35%
Pimienta 70% 50% 35%
Veracruz Maltrata 70% 75% 53%
Roseneath-Epsilon-Murteree (Nappamerri) 100% 75% 75%
Roseneath-Epsilon-Murteree (Patchawarra) 100% 60% 60%
Roseneath-Epsilon-Murteree (Tenappera) 100% 60% 60%
Maryborough Goodwood/Cherwell Mudstone 75% 50% 38%
Carynginia 100% 60% 60%
Kockatea 100% 60% 60%
Canning Goldwyer 75% 40% 30%
L. Arthur Shale (Dulcie Trough) 75% 50% 38%
L. Arthur Shale (Toko Trough) 75% 50% 38%
M. Velkerri Shale 100% 50% 50%
L. Kyalla Shale 100% 50% 50%
Australia Australia
Cooper
Perth
Georgina
Beetaloo
North America
Canada
Horn River
Mexico
Burgos
Sabinas
Tuxpan
Attachment D
Pl ay
Success
Factor
Prospecti ve
Area Success
Factor
Composi te
Success
Factor
Middle Magdalena Valley La Luna/Tablazo 80% 70% 56%
Llanos Gacheta 55% 45% 25%
Colombia/Venezuela Maracaibo Basin La Luna/Capacho 70% 50% 35%
Los Molles 100% 50% 50%
Vaca Muerta 100% 60% 60%
Aguada Bandera 50% 40% 20%
Pozo D-129 60% 40% 24%
Austral-Magallanes Basin L. Inoceramus-Magnas Verdes 75% 60% 45%
Parana Basin Ponta Grossa 40% 30% 12%
Parana Basin Ponta Grossa 40% 30% 12%
Solimoes Basin Jandiatuba 50% 30% 15%
Amazonas Basin Barreirinha 50% 30% 15%
Paraguay Ponta Grossa 40% 30% 12%
Uruguay Cordobes 40% 40% 16%
Paraguay/Bolivia Chaco Basin Los Monos 50% 30% 15%
Chile Austral-Magallanes Basin Estratos con Favrella 75% 60% 45%
Baltic Basin/Warsaw Trough Llandovery 100% 40% 40%
Lublin Llandovery 60% 35% 21%
Podlasie Llandovery 60% 40% 24%
Fore Sudetic Carboniferous 50% 35% 18%
Lithuania/Kaliningrad Baltic Basin Llandovery 80% 40% 32%
West Siberian Central Bazhenov Central 100% 45% 45%
West Siberian North Bazhenov North 75% 35% 26%
Carpathian Foreland Basin L. Silurian 50% 40% 20%
Dniepr-Donets L. Carboniferous 50% 40% 20%
Ukraine/Romania L. Silurian 55% 40% 22%
Romania/Bulgaria Etropole 50% 35% 18%
N. UK Carboniferous Shale Region Carboniferous Shale 60% 35% 21%
S. UK Jurassic Shale Region Lias Shale 80% 40% 32%
Spain Cantabrian Jurassic 80% 50% 40%
Lias Shale 100% 50% 50%
Permian-Carboniferous 80% 40% 32%
Southeast Basin Lias Shale 60% 30% 18%
Posidonia 100% 60% 60%
Wealden 75% 60% 45%
Epen 75% 60% 45%
Geverik Member 75% 60% 45%
Posidonia 75% 60% 45%
Sweden Alum Shale - Sweden 60% 50% 30%
Denmark Alum Shale - Denmark 60% 40% 24%
Lower Saxony
Netherlands West Netherlands Basin
Scandinavia Region
Western Europe
UK
France
Paris Basin
Germany
Eastern Europe
Poland
Russia
Ukraine
Moesian Platform
South America
Colombia
Argentina
Neuquen
San Jorge Basin
Brazil
Parana Basin
Attachment D
Pl ay
Success
Factor
Prospecti ve
Area Success
Factor
Composi te
Success
Factor
Tindouf L. Silurian 50% 40% 20%
Tadla L. Silurian 50% 50% 25%
Frasnian 100% 50% 50%
Tannezuft 100% 50% 50%
Illizi Tannezuft 50% 40% 20%
Mouydir Tannezuft 50% 40% 20%
Frasnian 50% 40% 20%
Tindouf Tannezuft 50% 40% 20%
Frasnian 100% 65% 65%
Frasnian 100% 50% 50%
Sirte/Rachmat Fms 80% 50% 40%
Etel Fm 80% 50% 40%
Murzuq Tannezuft 100% 50% 50%
Shoushan/Matruh Khatatba 80% 60% 48%
Abu Gharadig Khatatba 80% 60% 48%
Alamein Khatatba 70% 35% 25%
Natrun Khatatba 70% 35% 25%
Prince Albert 50% 30% 15%
Whitehill 60% 40% 24%
Collingham 50% 30% 15%
Egypt
South Africa Karoo Basin
Tunisia Ghadames
Libya
Ghadames
Sirte
Africa
Morocco
Algeria
Ghadames/Berkine
Ahnet
Timimoun
Reggane
Attachment D
Pl ay
Success
Factor
Prospecti ve
Area Success
Factor
Composi te
Success
Factor
Qiongzhusi 100% 70% 70%
Longmaxi 100% 70% 70%
Permian 60% 50% 30%
L. Cambrian 80% 70% 56%
L. Silurian 80% 70% 56%
Niutitang/Shuijintuo 60% 40% 24%
Longmaxi 60% 40% 24%
Qixia/Maokou 50% 40% 20%
Mufushan 40% 30% 12%
Wufeng/Gaobiajian 40% 30% 12%
U. Permian 40% 30% 12%
L. Cambrian 50% 70% 35%
L. Ordovician 50% 65% 33%
M.-U. Ordovician 50% 50% 25%
Ketuer 50% 50% 25%
Pingdiquan/Lucaogou 60% 60% 36%
Triassic 60% 60% 36%
Songliao Basin Qingshankou 100% 50% 50%
East Gobi Tsagaantsav 40% 50% 20%
Tamtsag Tsagaantsav 40% 50% 20%
Thailand Khorat Basin Nam Duk Fm 50% 30% 15%
C. Sumatra Brown Shale 75% 60% 45%
S. Sumatra Talang Akar 50% 35% 18%
Naintupo 40% 50% 20%
Meliat 40% 50% 20%
Tabul 40% 50% 20%
Kutei Balikpapan 40% 40% 16%
Bintuni Aifam Group 40% 40% 16%
Cambay Basin Cambay Shale 100% 60% 60%
Krishna-Godavari Permian-Triassic 75% 60% 45%
Cauvery Basin Sattapadi-Andimadam 50% 50% 25%
Damodar Valley Barren Measure 80% 50% 40%
Sembar 40% 30% 12%
Ranikot 40% 30% 12%
Hamad Batra 100% 40% 40%
Wadi Sirhan Batra 100% 40% 40%
SE Anatolian Dadas 100% 60% 60%
Thrace Hamitabat 60% 60% 36%
India
Pakistan Lower Indus
Asia
China
Sichuan Basin
Yangtze Platform
Jianghan Basin
Greater Subei
Tarim Basin
Jordan
Turkey
Junggar Basin
Mongolia
Indonesia Tarakan
June, 2013 1
SHALE GAS AND SHALE OIL RESOURCE
ASSESSMENT METHODOLOGY
INTRODUCTION
This report sets forth Advanced Resources methodology for assessing the in-place and
recoverable shale gas and shale oil resources for the EIA/ARI World Shale Gas and Shale Oil
Resource Assessment. The methodology relies on geological information and reservoir
properties assembled from the technical literature and data from publically available company
reports and presentations. This publically available information is augmented by internal (non-
confidential) proprietary prior work on U.S. and international shale gas and shale oil resources
by Advanced Resources International.
The report should be viewed as an initial step toward future, more comprehensive
assessments of shale gas and shale oil resources. As additional exploration data are gathered,
evaluated and incorporated, the assessments of shale oil and gas resources will become more
rigorous.
RESOURCE ASSESSMENT METHODOLOGY
The methodology for conducting the basin- and formation-level assessments of shale
gas and shale oil resources includes the following five topics:
1. Conducting preliminary geologic and reservoir characterization of shale basins and
formation(s).
2. Establishing the areal extent of the major shale gas and shale oil formations.
3. Defining the prospective area for each shale gas and shale oil formation.
4. Estimating the risked shale gas and shale oil in-place.
5. Calculating the technically recoverable shale gas and shale oil resource.
Each of these five shale gas and shale oil resource assessment steps is further
discussed below. The shale gas and shale oil resource assessment for Argentinas Neuquen
Basin is used to illustrate certain of these resource assessment steps.
June, 2013 2
1. Conducting Preliminary Geologic and Reservoir Characterization of Shale
Basins and Formation(s).
The resource assessment begins with the compilation of data from multiple public and
private proprietary sources to define the shale gas and shale oil basins and to select the major
shale gas and shale oil formations to be assessed. The stratigraphic columns and well logs,
showing the geologic age, the source rocks and other data, are used to select the major shale
formations for further study, as illustrated in Figures 1 and 2 for the Neuquen Basin of
Argentina.
Preliminary geological and reservoir data are assembled for each major shale basin and
formation, including the following key items:
Depositional environment of shale (marine vs non-marine)
Depth (to top and base of shale interval)
Structure, including major faults
Gross shale interval
Organically-rich gross and net shale thickness
Total organic content (TOC, by wt.)
Thermal maturity (Ro)
These geologic and reservoir properties are used to provide a first order overview of the
geologic characteristics of the major shale gas and shale oil formations and to help select the
shale gas and shale oil basins and formations deemed worthy of more intensive assessment.
June, 2013 3
Figure 1: Prospective Shale Basins of Argentina

June, 2013 4
Figure 2. Neuquen Basin Stratigraphy
The Vaca Muerta and Los Molles are Jurassic-age shale formations.
Modified from Howell, J., et al., 2005
LOS MOLLES FM
VACA MUERTA FM
June, 2013 5
2. Establishing the Areal Extent of Major Shale Gas and Shale Oil Formations.
Having identified the major shale gas and shale oil formations, the next step is to
undertake more intensive study to define the areal extent for each of these formations. For this,
the study team searches the technical literature for regional as well as detailed, local cross-
sections identifying the shale oil and gas formations of interest, as illustrated by Figure 3 for the
Vaca Muerta and Los Molles shale gas and shale oil formations in the Neuquen Basin. In
addition, the study team draws on proprietary cross-sections previously prepared by Advanced
Resources and, where necessary, assembles well data to construct new cross-sections.
The regional cross-sections are used to define the lateral extent of the shale formation in
the basin and/or to identify the regional depth and gross interval of the shale formation.
Figure 3: Neuquen Basin SW-NE Cross Section
(Structural settings for the two shale gas and shale oil formations, Vaca Muerta and Los Molles)
Mosqueraet al., 2009
LOS MOLLES FM
VACA MUERTA FM
PALEOZOIC BASMENT
A A
SW NE
FRONTAL
SYNCLINE
HUINCUL
ARCH
Los Molles Gas
Los Molles Oil
Vaca Muerta Oil
Vaca Muerta Gas
Vaca Muerta Hydrocarbon Migration Pathways
Los Molles Hydrocarbon Migration Pathways
LOS MOLLES FM
VACA MUERTA FM
PALEOZOIC BASMENT
A A
SW NE
FRONTAL
SYNCLINE
HUINCUL
ARCH
Los Molles Gas
Los Molles Oil
Vaca Muerta Oil
Vaca Muerta Gas
Vaca Muerta Hydrocarbon Migration Pathways
Los Molles Hydrocarbon Migration Pathways
June, 2013 6
3. Defining the Prospective Area for Each Shale Gas and Shale Oil Formation.
An important and challenging resource assessment step is to establish the portions of
the basin that, in our view, are deemed to be prospective for development of shale gas and
shale oil. The criteria used for establishing the prospective area include:
Depositional Environment. An important criterion is the depositional environment of
the shale, particularly whether it is marine or non-marine. Marine-deposited shales
tend to have lower clay content and tend to be high in brittle minerals such as quartz,
feldspar and carbonates. Brittle shales respond favorably to hydraulic stimulation.
Shales deposited in non-marine settings (lacustrine, fluvial) tend to be higher in clay,
more ductile and less responsive to hydraulic stimulation.
Figure 4 provides an illustrative ternary diagram useful for classifying the mineral
content of the shale for the Marcellus Shale in Lincoln Co., West Virginia
Figure 4. Ternary Diagramof Shale Mineralogy (Marcellus Shale).
Source: Modified from AAPG Bull. 4/2007, p. 494 & 495
JAF028263.PPT
Calcite (C) Clay (Cly)
Quartz (Q)
June, 2013 7
Depth. The depth criterion for the prospective area is greater than 1,000 meters but
less than 5,000 meters (3,300 feet to 16,500 feet). Areas shallower than 1,000
meters have lower reservoir pressure and thus lower driving forces for oil and gas
recovery. In addition, shallow shale formations have risks of higher water content in
their natural fracture systems. Areas deeper than 5,000 meters have risks of
reduced permeability and much higher drilling and development costs.
Total Organic Content (TOC). In general, the average TOC of the prospective area
needs to be greater than 2%. Figure 5 provides an example of using a gamma ray
log to identify the TOC content for the Marcellus Shale in the New York (Chenango
Co.) portion of the Appalachian Basin.
Organic materials such as microorganism fossils and plant matter provide the
requisite carbon, oxygen and hydrogen atoms needed to create natural gas and oil.
As such TOC and carbon type (Types I and II) are important measures of the oil
generation potential of a shale formation.
Figure 5. Relationship of Gamma Ray and Total Organic Carbon
Source: J. Reed, 2008
Beaver Meadow#1Well,
Chenango County, NewYork
High TOC in Marcellus concentrates
potassium-40 isotope, visible as high
radioactivity (100 to 300 units) on
gamma ray log.
Gamma ray count correlates
reasonably with TOC.
The Beaver Meadow #1 well has
approximately 150 feet of organically
rich (TOC >3% by wt.) shale.
Top Marcellus ~1,300
Organically
Rich
Marcellus
~200
JAF028263.PPT
June, 2013 8
Thermal Maturity. Thermal maturity measures the degree to which a formation has
been exposed to high heat needed to break down organic matter into hydrocarbons.
The reflectance of certain types of minerals (Ro%) is used as an indication of
Thermal Maturity, Figure 6. The thermal maturity of the oil prone prospective area
has a Ro greater than 0.7% but less than 1.0%. The wet gas and condensate
prospective area has a Ro between 1.0% and 1.3%. Dry gas areas typically have
an Ro greater than 1.3%. Where possible, we have identified these three
hydrocarbon windows.
Figure 6. Thermal Maturation Scale
Geographic Location. The prospective area is limited to the onshore portion of the
shale gas and shale oil basin.
The prospective area, in general, covers less than half of the overall basin area.
Typically, the prospective area will contain a series of higher quality shale gas and shale oil
areas, including a geologically favorable, high resource concentration core area and a series
of lower quality and lower resource concentration extension areas. However, this more detailed
delineation of the prospective area is beyond the scope of this initial resource assessment.
June, 2013 9
Finally, shale gas and shale oil basins and formations that have very high clay content
and/or have very high geologic complexity (e.g., thrusted and high stress) are assigned a high
prospective area risk factor or are excluded from the resource assessment. Subsequent, more
intensive and smaller-scale (rather than regional-scale) resource assessments may identify the
more favorable areas of a basin, enabling portions of the basin currently deemed non-
prospective to be added to the shale gas and shale oil resource assessment. Similarly,
advances in well completion practices may enable more of the very high clay content shale
formations to be efficiently stimulated, also enabling these basins and formations to be added in
future years to the resource assessment.
The Neuquen Basins Vaca Muerta Shale illustrates the presence of three prospective
areas - - oil, wet gas/condensate and dry gas, Figure 7.
Figure 7. Vaca Muerta Shale Gas and Shale Oil Prospective Areas, Neuquen Basin

June, 2013 10
A more detailed resource assessment, including in-depth appraisal of newly drilled
exploration wells, with modern logs and rigorous core analyses, will be required to define the
next levels of resource quality and concentration for the major international shale plays.
4. Estimating the Risked Shale Gas and Shale Oil In-Place (OIP/GIP).
Detailed geologic and reservoir data are assembled to establish the oil and gas in-place
(OIP/GIP) for the prospective area.
a. Oil In-Place. The calculation of oil in-place for a given areal extent (acre, square
mile) is governed, to a large extent, by two key characteristics of the shale formation - - net
organically-rich shale thickness and oil-filled porosity. In addition, pressure and temperature
govern the volume of gas in solution with the reservoir oil, defined by the reservoirs formation
volume factor.
Net Organically-Rich Shale Thickness. The overall geologic interval that contains
the organically-rich shale is obtained from prior stratigraphic studies of the formations
in the basin being appraised. The gross organically-rich thickness of the shale
interval is established from log data and cross-sections, where available. A net to
gross ratio is used to account for the organically barren rock within the gross
organically-rich shale interval and to estimate the net organically-rich thickness of the
shale.
Oil- and Gas-Filled Porosity. The study assembles porosity data from core and/or
log analyses available in the public literature. When porosity data are not available,
emphasis is placed on identifying the mineralogy of the shale and its maturity for
estimating porosity values from analogous U.S shale basins. Unless other evidence
is available, the study assumes the pores are filled with oil, including solution gas,
free gas and residual water.
Pressure. The study methodology places particular emphasis on identifying over-
pressured areas. Over-pressured conditions enable a higher portion of the oil to be
produced before the reservoir reaches its bubble point where the gas dissolved in
the oil begins to be released. A conservative hydrostatic gradient of 0.433 psi per
foot of depth is used when actual pressure data is unavailable because water salinity
data are usually not available.
June, 2013 11
Temperature. The study assembles data on the temperature of the shale formation.
A standard temperature gradient of 1.25
o
F per 100 feet of depth and a surface
temperature of 60
o
F are used when actual temperature data are unavailable.
The above data are combined using established reservoir engineering equations and
conversion factors to calculate OIP per square mile.
OIP =

A is area, in acres (with the conversion factors of 7,758 barrels per acre foot).
h is net organically-rich shale thickness, in feet.
is porosity, a dimensionless fraction (the values for porosity are obtained from
log or core information published in the technical literature or assigned by
analogy from U.S. shale oil basins; the thermal maturity of the shale and its
depth of burial can influence the porosity value used for the shale).
(S
o
) is the fraction of the porosity filled by oil (So) instead of water (Sw) or gas
(S
g
), a dimensionless fraction (the established value for porosity () is
multiplied by the term (So) to establish oil-filled porosity; the value Sw defines
the fraction of the pore space that is filled with water, often the residual or
irreducible reservoir water saturation in the natural fracture and matrix
porosity of the shale; shales may also contain free gas (Sg) in the pore
space, further reducing oil-filled porosity.
B
oi
is the oil formation gas volume factor that is used to adjust the oil volume in
the reservoirs, typically swollen with gas in solution, to oil volume in stock-
tank barrels; reservoir pressure, temperature and thermal maturity (Ro)
values are used to estimate the B
oi
value. The procedures for calculating B
oi

are provided in standard reservoir engineering text.
1
,
2
In addition, B
oi
can be
estimated from correlations (Copyright 1947 Chevron Oil Field Research)
printed with permission in McCain, W.D., The Properties of Petroleum Fluids,
Second Edition (1990), p. 320.

1
Ramey, H.J., Rapid Methods of Estimating Reservoir Compressibilities, J ournal of PetroleumTechnology, April, 1964, pp.
447-454.
2
Vasquez, M., and Beggs, H.D., Correlations for Fluid Physical Property Predictions, J ournal of PetroleumTechnology, June
1980, pp. 968-970.
77S8 (A b) (So)
Boi

June, 2013 12
In general, the shale oil in the reservoir contains solution or associated gas. A series of
engineering calculations, involving reservoir pressure, temperature and analog data from U.S.
shale oil formations are used to estimate the volume of associated gas in-place and produced
along with the shale oil. As the pressure in the shale oil reservoir drops below the bubble point,
a portion of the solution gas separates from the oil creating a free gas phase in the reservoir. At
this point, both oil (with remaining gas in solution) and free gas are produced.
b. Free Gas In-Place. The calculation of free gas in-place for a given areal extent
(acre, square mile) is governed, to a large extent, by four characteristics of the shale formation
- - pressure, temperature, gas-filled porosity and net organically-rich shale thickness.
Pressure. The study methodology places particular emphasis on identifying areas
with overpressure, which enables a higher concentration of gas to be contained
within a fixed reservoir volume. A conservative hydrostatic gradient of 0.433 psi per
foot of depth is used when actual pressure data is unavailable.
Temperature. The study assembles data on the temperature of the shale formation,
giving particular emphasis on identifying areas with higher than average temperature
gradients and surface temperatures. A temperature gradient of 1.25
o
F per 100 feet
of depth plus a surface temperature of 60
o
F are used when actual temperature data
is unavailable.
Gas-Filled Porosity. The study assembles the porosity data from core or log
analyses available in the public literature. When porosity data are not available,
emphasis is placed on identifying the mineralogy of the shale and its maturity for
estimating porosity values from analogous U.S shale basins. Unless other evidence
is available, the study assumes the pores are filled with gas and residual water.
Net Organically-Rich Shale Thickness. The overall geologic interval that contains
the organically-rich shale is obtained from prior stratigraphic studies of the formations
in the basin being appraised. The gross organically-rich thickness of the shale
interval is established from log data and cross-sections, where available. A net to
gross ratio is used to account for the organically barren rock within the gross
organically-rich shale interval and to estimate the net organically-rich thickness of the
shale.
June, 2013 13
P
0.02829zT
The above data are combined using established PVT reservoir engineering equations
and conversion factors to calculate free GIP per acre. The calculation of free GIP uses the
following standard reservoir engineering equation:

GIP =
Where:B
g
=

A is area, in acres (with the conversion factors of 43,560 square feet per acre
and 640 acres per square mile).
h is net organically-rich shale thickness, in feet.
is porosity, a dimensionless fraction (the values for porosity are obtained from
log or core information published in the technical literature or assigned by
analogy from U.S. shale gas basins; the thermal maturity of the shale and its
depth of burial can influence the porosity value used for the shale).
(S
g
) is the fraction of the porosity filled by gas (Sg) instead of water (S
W
) or oil
(S
o
), a dimensionless fraction (the established value for porosity () is
multiplied by the term (S
g
) to establish gas-filled porosity; the value Sw
defines the fraction of the pore space that is filled with water, often the
residual or irreducible reservoir water saturation in the natural fracture and
matrix porosity of the shale; liquids-rich shales may also contain condensate
and/or oil (So) in the pore space, further reducing gas-filled porosity.
P is pressure, in psi (pressure data is obtained from well test information
published in the literature, inferred from mud weights used to drill through the
shale sequence, or assigned by analog from U.S. shale gas basins; basins
with normal reservoir pressure are assigned a conservative hydrostatic
gradient of 0.433 psi per foot of depth; basins with indicated overpressure are
assigned pressure gradients of 0.5 to 0.6 psi per foot of depth; basins with
indicated underpressure are assigned pressure gradients of 0.35 to 0.4 psi
per foot of depth).
T is temperature, in degrees Rankin (temperature data is obtained from well
test information published in the literature or from regional temperature
versus depth gradients; the factor 460
o
F is added to the reservoir
temperature (in
o
F) to provide the input value for the gas volume factor (B
g
)
equation).
g
g
B
S h ) ( A * 560 , 43
June, 2013 14
B
g
is the gas volume factor, in cubic feet per standard cubic feet and includes
the gas deviation factor (z), a dimensionless fraction. (The gas deviation
factor (z) adjusts the ideal compressibility (PVT) factor to account for non-
ideal PVT behavior of the gas; gas deviation factors, complex functions of
pressure, temperature and gas composition, are published in standard
reservoir engineering text.)
c. Adsorbed Gas In-Place. In addition to free gas, shales can hold significant
quantities of gas adsorbed on the surface of the organics (and clays) in the shale formation.
A Langmuir isotherm is established for the prospective area of the basin using available
data on TOC and on thermal maturity to establish the Langmuir volume (V
L
) and the Langmuir
pressure (P
L
).
Adsorbed gas in-place is then calculated using the formula below (where P is original
reservoir pressure).
G
C
=(V
L
*P)/(P
L
+P)
The above gas content (G
C
) (typically measured as cubic feet of gas per ton of net
shale) is converted to gas concentration (adsorbed GIP per square mile) using actual or typical
values for shale density. (Density values for shale are typically in the range of 2.65 gm/cc and
depend on the mineralogy and organic content of the shale.)
The estimates of the Langmuir value (V
L
) and pressure (P
L
) for adsorbed gas in-place
calculations are based on either publically available data in the technical literature or internal
(proprietary) data developed by Advanced Resources from prior work on various U.S. and
international shale basins.
In general, the Langmuir volume (V
L
) is a function of the organic richness and thermal
maturity of the shale, as illustrated in Figure 8. The Langmuir pressure (P
L
) is a function of how
readily the adsorbed gas on the organics in the shale matrix is released as a function of a finite
decrease in pressure.
The free gas in-place (GIP) and adsorbed GIP are combined to estimate the resource
concentration (Bcf/mi
2
) for the prospective area of the shale gas basin. Figure 9 illustrates the
relative contributions of free (porosity) gas and adsorbed (sorbed) gas to total gas in-place, as a
function of pressure.
June, 2013 15

Figure 8. Marcellus Shale Adsorbed Gas Content
Adsorbed Gas Content: Lower TOC
(Gas Content in scf/ton vspressure)
Adsorbed Gas Content: Higher TOC
(Gas Content in scf/ton vspressure)
JAF028263.PPT

Figure 9. Combining Free and Adsorbed Gas for Total Gas In-Place
Adsorption Isotherm(Gas Content vs. Pressure)
Shallow Gas Shales Deep Gas Shales
Total
Porosity
Sorbed
JAF028263.PPT
June, 2013 16
b. Establishing the Success/Risk Factors. Two judgmentally established
success/risk factors are used to estimate risked OIP and GIP within the prospective area of the
shale oil and gas formation. These two factors are as follows:
Play Success Probability Factor. The shale gas and shale oil play success
probability factor captures the likelihood that at least some significant portion of the
shale formation will provide oil and/or gas at attractive flow rates and become
developed. Certain shale oil formations, such as the Duvernay Shale in Alberta,
Canada, are already under development and thus would have a play probability
factor of 100%. More speculative shale oil formations with limited geologic and
reservoir data may only have a play success probability factor of 30% to 40%. As
exploration wells are drilled, tested and produced and information on the viability of
the shale gas and shale oil play is established, the play success probability factor will
change.
Prospective Area Success (Risk) Factor: The prospective area success (risk) factor
combines a series of concerns that could relegate a portion of the prospective area
to be unsuccessful or unproductive for shale gas and shale oil production. These
concerns include areas with high structural complexity (e.g., deep faults, upthrust
fault blocks); areas with lower thermal maturity (Ro between 0.7% to 0.8%); the outer
edge areas of the prospective area with lower net organic thickness; and other
information appropriate to include in the success (risk) factor.
The prospective area success (risk) factor also captures the amount of available
geologic/reservoir data and the extent of exploration that has occurred in the
prospective area of the basin to determine what portion of the prospective area has
been sufficiently de-risked. As exploration and delineation proceed, providing a
more rigorous definition of the prospective area, the prospective area success (risk)
factor will change.
These two success/risk factors are combined to derive a single composite success
factor with which to risk the OIP and GIP for the prospective area.
June, 2013 17
The history of shale gas and shale oil exploration has shown that with time the
success/risk factors improve, particularly the prospective area success factor. As exploration
wells are drilled and the favorable shale oil reservoir settings and prospective areas are more
fully established, it is likely that the assessments of the size of the shale gas and shale oil in-
place will change.
6. Estimating the Technically Recoverable Resource.
The technically recoverable resource is established by multiplying the risked OIP and
GIP by a shale oil and gas recovery efficiency factor, which incorporates a number of geological
inputs and analogs appropriate to each shale gas and shale oil basin and formation. The
recovery efficiency factor uses information on the mineralogy of the shale to determine its
favorability for applying hydraulic fracturing to shatter the shale matrix and also considers
other information that would impact shale well productivity, such as: presence of favorable
micro-scale natural fractures; the absence of unfavorable deep cutting faults; the state of stress
(compressibility) for the shale formations in the prospective area; and the extent of reservoir
overpressure as well as the pressure differential between the reservoir original rock pressure
and the reservoir bubble point pressure.
Three basic shale oil recovery efficiency factors, incorporating shale mineralogy,
reservoir properties and geologic complexity, are used in the resource assessment.
Favorable Oil Recovery. A 6% recovery efficiency factor of the oil in-place is used
for shale oil basins and formations that have low clay content, low to moderate
geologic complexity and favorable reservoir properties such as an over-pressured
shale formation and high oil-filled porosity.
Average Oil Recovery. A 4% to 5% recovery efficiency factor of the oil in-place is
used for shale gas basins and formations that have a medium clay content,
moderate geologic complexity and average reservoir pressure and other properties.
Less Favorable Gas Recovery. A 3% recovery efficiency factor of the oil in-place is
used for shale gas basins and formations that have medium to high clay content,
moderate to high geologic complexity and below average reservoir pressure and
other properties.

June, 2013 18
A recovery efficiency factor of up to 8% may be applied in a few exceptional cases for
shale areas with reservoir properties or established high rates of well performance. A recovery
efficiency factor of 2% is applied in cases of severe under-pressure and reservoir complexity.
Attachment A provides information on oil recovery efficiency factors assembled for a
series of U.S. shale oil basins that provide input for the oil recovery factors presented above.
Three basic shale gas recovery efficiency factors, incorporating shale mineralogy,
reservoir properties and geologic complexity, are used in the resource assessment.
Favorable Gas Recovery. A 25% recovery efficiency factor of the gas in-place is
used for shale gas basins and formations that have low clay content, low to
moderate geologic complexity and favorable reservoir properties such as an
overpressured shale formation and high gas-filled porosity.
Average Gas Recovery. A 20% recovery efficiency factor of the gas in-place is used
for shale gas basins and formations that have a medium clay content, moderate
geologic complexity and average reservoir pressure and properties.
Less Favorable Gas Recovery. A 15% recovery efficiency factor of the gas in-place
is used for shale gas basins and formations that have medium to high clay content,
moderate to high geologic complexity and below average reservoir properties.
A recovery efficiency factor of 30% may be applied in exceptional cases for shale areas
with exceptional reservoir performance or established rates of well performance. A recovery
efficiency factor of 10% is applied in cases of severe under-pressure and reservoir complexity.
The recovery efficiency factors for associated (solution) gas are scaled to the oil recovery
factors, discussed above.
a. Two Key Oil Recovery Technologies. Because the native permeability of the shale
gas reservoir is extremely low, on the order of a few hundred nano-darcies (0.0001 md) to a few
milli-darcies (0.001 md), efficient recovery of the oil held in the shale matrix requires two key
well drilling and completion techniques, as illustrate by Figure 10:
June, 2013 19
Figure 10. Lower Damage, More Effective Horizontal Well Completions Provide Higher Reserves Per Well
(1,500 foot horizontal well with 5 stage frac)
Init ial Barnett Shale Well Completions
Lat est Barnett Shale Well Completions
JAF028263.PPT
(3,000 foot horizontal well with 12 stage frac)
Long Horizontal Wells. Long horizontal wells (laterals) are designed to place the oil
production well in contact with as much of the shale matrix as technically and
economically feasible.
Intensive Well Stimulation. Large volume hydraulic stimulations, conducted in
multiple, closely spaced stages (up to 20), are used to shatter the shale matrix and
create a permeable reservoir. This intensive set of induced and propped hydraulic
fractures provides the critical flow paths from the shale matrix to the horizontal well.
Existing, small scale natural fractures (micro-fractures) will, if open, contribute
additional flow paths from the shale matrix to the wellbore.
The efficiency of the hydraulic well stimulation depends greatly on the mineralogy of the
shale, as further discussed below.
June, 2013 20
b. Importance of Mineralogy on Recoverable Resources. The mineralogy of the
shale, particularly its relative quartz, carbonate and clay content, significantly determines how
efficiently the induced hydraulic fracture will stimulate the shale, as illustrated by Figure 11:
Shales with a high percentage of quartz and carbonate tend to be brittle and will
shatter, leading to a vast array of small-scale induced fractures providing numerous
flow paths from the matrix to the wellbore, when hydraulic pressure and energy are
injected into the shale matrix, Figure 11A.
Shales with a high clay content tend to be ductile and to deform instead of shattering,
leading to relatively few induced fractures (providing only limited flow paths from the
matrix to the well) when hydraulic pressure and energy are injected into the shale
matrix, Figure 11B.
Figure 11. The Properties of the Reservoir Rock Greatly Influence the Effectiveness of Hydraulic
Stimulations.
June, 2013 21
c. Significance of Geologic Complexity. A variety of complex geologic features can
reduce the shale gas and shale oil recovery efficiency from a shale basin and formation:
Extensive Fault Systems. Areas with extensive faults can hinder recovery by limiting
the productive length of the horizontal well, as illustrated by Figure 12.
Deep Seated Fault System. Vertically extensive faults that cut through organically
rich shale intervals can introduce water into the shale matrix, reducing relative
permeability and flow capacity.
Thrust Faults and Other High Stress Geological Features. Compressional tectonic
features, such as thrust faults and up-thrusted fault blocks, are an indication of basin
areas with high lateral reservoir stress, reducing the permeability of the shale matrix
and its flow capacity.
Figure 12. 3D Seismic Helps Design Extended vs. Limited Length Lateral Wells
Source: Newfield Exploration Company
640 Acre Secti on
Well #1 Well #2
Well #1
Extended Lateral
Well #2
Standard Lateral
1 Mile
1

M
i
l
e
L
a
t
e
r
a
l
L
a
t
e
r
a
l
8
0
F
a
u
l
t
2
6
0
F
a
u
l
t
8
0
F
a
u
lt
2
6
0
F
a
u
l
t
D
U
D
U
D
U
160
160
N
S
U
D
JAF028263.PPT
June, 2013 22
SUMMARY
The step-by-step application of the above shale gas and shale oil resource assessment
methodology leads to three key assessment values for each major shale oil and gas formation:
Shale Gas and Shale Oil In-place Concentration, reported in terms of billion cubic
feet of shale gas per square mile or millions of barrels of shale oil per square mile.
This key resource assessment value defines the richness of the shale gas and shale
oil resource and its relative attractiveness compared to other gas and oil
development options.
Risked Shale Gas and Shale Oil In-Place, reported in trillion cubic feet (Tcf) of shale
gas and billion barrels (Bbbl) of shale oil for each major shale formation.
Risked Recoverable Gas and Oil, reported in trillion cubic feet (Tcf) of shale gas and
billion barrels (Bbbl) of shale oil for each major shale formation.
The risked recoverable shale gas and shale oil provide the important bottom line value
that helps the reader understand how large is the prospective shale gas and shale oil resource
and what impact this resource may have on the gas and oil options available in each region and
country.
Tables 1 and 2, for the Neuquen Basin and its Vaca Muerta Shale formation, provides a
summary of the resource assessment conducted for one basin and one shale formation in
Argentina including the risked, technically recoverable shale gas and shale oil, as follows:
308 Tcf of risked, technically recoverable shale gas resource, including 194 Tcf of
dry gas, 91 Tcf of wet gas and 23 Tcf of associated gas, Table 1.
16.2 billion barrels of technically recoverable shale oil resource, including 2.6 billion
barrels of condensate and 13.6 billion barrels of volatile/black oil, Table 2.
June, 2013 23
Table 1. Shale Gas Reservoir Properties and Resources of Argentina
4,840 3,270 3,550
Organically Rich 500 500 500
Net 325 325 325
Interval 3,000 - 9,000 4,500 - 9,000 5,500 - 10,000
Average 5,000 6,500 8,000
Highly
Overpress.
Highly
Overpress.
Highly
Overpress.
5.0% 5.0% 5.0%
0.85% 1.15% 1.50%
Low/Medium Low/Medium Low/Medium
Assoc. Gas Wet Gas Dry Gas
66.1 185.9 302.9
192.0 364.8 645.1
23.0 91.2 193.5
B
a
s
i
c
D
a
t
aBasin/Gross Area
Neuquen
(66,900mi
2
)
ShaleFormation VacaMuerta
Geologic Age U. Jurassic - L. Cretaceous
Depositional Environment Marine
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Thermal Maturity (%Ro)
Clay Content
R
e
s
o
u
r
c
e
Gas Phase
GIP Concentration (Bcf/mi
2
)
Risked GIP (Tcf)
Risked Recoverable(Tcf)

Table-2. Shale Oil Reservoir Properties and Resources of Argentina
4,840 3,270
Organically Rich 500 500
Net 325 325
Interval 3,000 - 9,000 4,500 - 9,000
Average 5,000 6,500
Highly
Overpress.
Highly
Overpress.
5.0% 5.0%
0.85% 1.15%
Low/Medium Low/Medium
Oil Condensate
77.9 22.5
226.2 44.2
13.57 2.65
B
a
s
i
c
D
a
t
aBasin/Gross Area
Neuquen
(66,900mi
2
)
Shale Formation Vaca Muerta
Geologic Age U. Jurassic - L. Cretaceous
Depositional Environment Marine
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea (mi
2
)
Thickness (ft)
Depth (ft)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir Pressure
AverageTOC (wt. %)
Clay Content
R
e
s
o
u
r
c
e
Oil Phase
OIP Concentration (MMbbl/mi
2
)
Risked OIP (B bbl)
Risked Recoverable(B bbl)

June, 2013 24
ATTACHMENT A

ESTABLISHING OIL RECOVERY EFFICIENCY FACTORS FOR THE
INTERNATIONAL TIGHT OIL STUDY
INTRODUCTION
The information assembled in Attachment A provides support for the oil recovery
efficiency factors to be used by the International Tight Oil Resource Study being conducted for
the U.S. Energy Information Administration by Advanced Resources International, Inc.
DATA BASE
The Advanced Resources proprietary data base used to establish analog values for the
oil recovery efficiency factor in the International Tight Oil Resource Study consists of 28 tight
oil plays in seven U.S. shale and tight sand/lime basins.
Table A-1 provides a listing of the 28 U.S. tight oil plays included in the analysis as well
as key geological and reservoir properties that influence oil recovery efficiency, such as: (1)
reservoir pressure; (2) thermal maturity; and (3) the formation volume factor.
In addition, Table A-1 provides information on the geologic age of the tight oil formation
which influences its depositional style. In general, the 28 U.S. tight oil plays have deep marine
depositions with low to moderate clay content.
ANALYTIC RESULTS
Table A-2 provides the oil recovery efficiency factor estimated for each of the 28 U.S.
tight oil plays in the data base.
The oil in-place, shown in thousand barrels per square mile, is calculated from the
data on Table A-1 as well as from data in Advanced Resources proprietary
unconventional gas data base.
The oil recovery, also shown in thousand barrels per square mile, is from type
curves based calculations of oil recovery per well times the number of wells
expected to be drilled per square mile.
June, 2013 25
The oil recovery efficiency, shown as a percent, is calculated by dividing oil recovery
by oil in-place.
FINDINGS AND OBSERVATIONS
A closer look at the oil recovery efficiency data on Table A-2 leads to the following
findings and observations:
The oil recovery efficiency values range from about 1% to 9%, with an un-weighted
average of about 3.5%.
Taking out five of the extremely low oil recovery efficiency plays (which we would
classify as non-productive) - - Mississippi Lime (Eastern Oklahoma Ext.), Mississippi
Lime (Kansas Ext.), Delaware Wolfcamp (Texas Ext.), D-J Niobrara (North Ext. #2),
and D-J Niobrara (East Ext.), raises the average oil recovery efficiency to 4.1%.
Six of the U.S. tight oil plays have oil recovery factors that range from about 8% to
about 9%.
Four of the U.S. tight oil plays have oil recovery factors that range from about 4% to
about 6%.
Twelve of the U.S. tight oil plays have oil recovery factors that range from about 2%
to about 3%.
A number of actions could change these initial estimates of oil recovery efficiency in
future years, including: (1) use of closer well spacing; (2) continued improvements in oil
recovery technology, including use of longer laterals and more frac stages; (3) completion of
more of the vertical net pay encountered by the wellbore; and (4) development of the lower
productivity portions of each play area.
June, 2013 26
Table A-1. Tight Oil Data Base Used for Establishing Oil Recovery Efficiency Factors
Basin Formation/Play Age ReservoirPressure
Thermal
Maturity
(%R
o
)
Formation
VolumeFactor
(B
oi
)
BakkenNDCore MississippianDevonian Overpressured 0.80% 1.35
BakkenNDExt. MississippianDevonian Overpressured 0.80% 1.58
BakkenMT MississippianDevonian Overpressured 0.75% 1.26
ThreeForksND Devonian Overpressured 0.85% 1.47
ThreeForksMT Devonian Overpressured 0.85% 1.27
EagleFordPlay#3A LateCretaceous Overpressured 0.90% 1.75
EagleFordPlay#3B LateCretaceous Overpressured 0.85% 2.01
EagleFordPlay#4A LateCretaceous Overpressured 0.75% 1.57
EagleFordPlay#4B LateCretaceous Overpressured 0.70% 1.33
BarnettComboCore Mississippian SlightlyOverpressured 0.90% 1.53
BarnettComboExt. Mississippian SlightlyOverpressured 0.80% 1.41
Del.Avalon/BS(NM) Permian SlightlyOverpressured 0.90% 1.70
Del.Avalon/BS(TX) Permian SlightlyOverpressured 0.90% 1.74
Del.Wolfcamp(TXCore) PermianPennsylvanian SlightlyOverpressured 0.92% 1.96
Del.Wolfcamp(TXExt.) PermianPennsylvanian SlightlyOverpressured 0.92% 1.79
Del.Wolfcamp(NMExt.) PermianPennsylvanian SlightlyOverpressured 0.92% 1.85
Midl.WolfcampCore PermianPennsylvanian Overpressured 0.90% 1.67
Midl.WolfcampExt. PermianPennsylvanian Overpressured 0.90% 1.66
Midl.ClineShale Pennsylvanian Overpressured 0.90% 1.82
CanaWoodfordOil UpperDevonian Overpressured 0.80% 1.76
Miss.LimeCentralOKCore Mississippian Normal 0.90% 1.29
Miss.LimeEasternOKExt. Mississippian Normal 0.90% 1.20
Miss.LimeKSExt. Mississippian Normal 0.90% 1.29
Appalachian UticaShaleOil Ordovician SlightlyOverpressured 0.80% 1.46
DJNiobraraCore LateCretaceous Normal 1.00% 1.57
DJNiobraraEastExt. LateCretaceous Normal 0.70% 1.26
DJNiobraraNorthExt.#1 LateCretaceous Normal 0.70% 1.37
DJNiobraraNorthExt.#2 LateCretaceous Normal 0.65% 1.28
DJ
Williston
Maverick
Ft.Worth
Permian
Anadarko
June, 2013 27
Table A-2. Oil Recovery Efficiency for 28 U.S. Tight Oil Plays
(Black Oil, Volatile Oil and Condensates)
Basin Formation/Play Age
OilInPlace
(MBbls/Mi
2
)
Oil
Recovery
(MBbls/Mi
2
)
Oil
Recovery
Efficiency
(%)
BakkenNDCore MississippianDevonian 12,245 1,025 8.4%
BakkenNDExt. MississippianDevonian 9,599 736 7.7%
BakkenMT MississippianDevonian 10,958 422 3.9%
ThreeForksND Devonian 9,859 810 8.2%
ThreeForksMT Devonian 10,415 376 3.6%
EagleFordPlay#3A LateCretaceous 22,455 1,827 8.1%
EagleFordPlay#3B LateCretaceous 25,738 2,328 9.0%
EagleFordPlay#4A LateCretaceous 45,350 1,895 4.2%
EagleFordPlay#4B LateCretaceous 34,505 2,007 5.8%
BarnettComboCore Mississippian 25,262 377 1.5%
BarnettComboExt. Mississippian 13,750 251 1.8%
Del.Avalon/BS(NM) Permian 34,976 648 1.9%
Del.Avalon/BS(TX) Permian 27,354 580 2.1%
Del.Wolfcamp(TXCore) PermianPennsylvanian 35,390 1,193 3.4%
Del.Wolfcamp(TXExt.) PermianPennsylvanian 27,683 372 1.3%
Del.Wolfcamp(NMExt.) PermianPennsylvanian 21,485 506 2.4%
Midl.WolfcampCore PermianPennsylvanian 53,304 1,012 1.9%
Midl.WolfcampExt. PermianPennsylvanian 46,767 756 1.6%
Midl.ClineShale Pennsylvanian 32,148 892 2.8%
CanaWoodfordOil UpperDevonian 11,413 964 8.4%
Miss.LimeCentralOKCore Mississippian 28,364 885 3.1%
Miss.LimeEasternOKExt. Mississippian 30,441 189 0.6%
Miss.LimeKSExt. Mississippian 21,881 294 1.3%
Appalachian UticaShaleOil Ordovician 42,408 906 2.1%
DJNiobraraCore LateCretaceous 33,061 703 2.1%
DJNiobraraEastExt. LateCretaceous 30,676 363 1.2%
DJNiobraraNorthExt.#1 LateCretaceous 28,722 1,326 4.6%
DJNiobraraNorthExt.#2 LateCretaceous 16,469 143 0.9%
DJ
Williston
Maverick
Ft.Worth
Permian
Anadarko
I. Canada

June, 2013

I. C
SUMMA
C
assessed
oil basins
CANAD
ARY
Canada has
d by this res
s in Western
F
Source
DA
a series of l
source study
n Canada.
Figure I-1. Sele
e: ARI, 2012.
I-
arge hydroc
y. Figure I-1
ected Shale Ga
EIA/ARI W
-1
carbon basin
illustrates c
as and Oil Bas
World Shale Ga
ns with thick
certain of th
sins of Weste
s and Shale Oil
, organic-ric
e major sha
ern Canada
Resource Asses

ch shales tha
ale gas and s

ssment
at are
shale
I. Canada

June, 2013

T
(1) the H
Columbia
Columbia
Alberta, s
Group; (3
Shale in
W
Resource
siltstone
included
of additio
quantitat
in Alberta
W
risked, te
place fo
recovera
Canadas
A
emerging
recovera

The full set o
Horn River
a and the No
a and Alber
such as the
3) the Willist
Quebec and
Western Can
e Plays (in b
reservoirs.
in this shale
onal hydroc
ive portion o
a) or becaus
We estimate
echnically re
r Canada o
ble shale o
s shale gas
As new drill
g shale pla
bility will und
of Canadian
Basin, the
orthwest Te
rta); (2) the
Banff/Exsh
ton Basins B
d the Horton
nada also c
both British
As thus,
e gas and sh
arbon-bearin
of this resou
se of limited
risked sha
ecoverable s
of 162 billio
oil resource.
and oil reso
ing occurs
ays, the es
doubtedly ch
I-
shale gas a
Cordova Em
rritories) plu
e numerous
aw, the Duv
Bakken Sha
Bluff Shale
contains the
Columbia a
these two
hale oil reso
ng siltstone
urce study e
information
le gas in-pla
shale gas res
on barrels,
. Table I-1
urces.
and more
stimates of
hange.
EIA/ARI W
-2
and shale o
mbayment a
us the Doig P
shale gas
vernay, the N
le in Saskat
in Nova Sco
e prolific and
and Alberta)
important u
ource assess
and shale
either becaus
(Frederick B
ace for Can
source. In a
with 8.8 bi
provides a
detailed in
the size
World Shale Ga
il basins ass
and the Lia
Phosphate S
and shale
Nordegg, th
tchewan and
otia.
d areally ex
categorized
unconventio
sment. In ad
formations
se of low or
Brook Shale
nada of 2,4
addition, we
illion barrels
a more in-d
formation is
of their in-
s and Shale Oil
sessed in th
ard Basin (lo
Shale (locate
oil formatio
e Muskwa a
d Manitoba;
xtensive Mo
d primarily a
onal gas re
ddition, Can
that are no
rganic conte
in New Bru
13 Tcf, with
e estimate ris
s as the ris
depth, regio
s obtained
-place reso
Resource Asses

his study inc
ocated in B
ed in both B
ons and pla
and the Colo
and (4) the
ontney and
as tight sand
sources are
nada has a s
t included i
ent (Wilrich S
nswick).
h 573 Tcf a
sked shale o
sked, techn
nal tabulatio
on these l
urces and
ssment
clude:
British
British
ys in
orado
Utica
Doig
d and
e not
series
n the
Shale
s the
oil in-
nically
on of
arge,
their
I. Canada

June, 2013

Saskat
Man
Qu
Nova
*Less than
Bri ti sh C
Northwes
Al
Re
H
H
C
L
D
S
A
E
D
N
S
S
tchewan /
ni toba
W
uebec A
a Scoti a W
T
0.5 Tcf
Col umbi a /
st Terri tori es
berta
egi on
Table I-
Horn River (Musk
Horn River (Evie /
Cordova (Muskwa
Liard (Lower Bes
Deep (Doig Phos
Sub-Total
Alberta (Banff / E
E/W Shale (Duve
Deep Basin (Nord
N.W. Alberta (Mu
S. Alberta (Color
Sub-Total
Williston (Bakken
App. Fold Belt (U
Windsor (Horton
Total
Basi n / F
I-
-1. Shale Gas
kwa / Otter Park
/ Klua)
a / Otter Park)
sa River)
sphate)
Exshaw)
ernay)
degg)
uskwa)
rado)
n)
Utica)
Bluff)
Formati on
EIA/ARI W
-3
and Oil Resou
Oi l /Conden
(Mi l l i on b
) -
-
-
-
-
-
10,500
66,800
19,800
42,400
-
139,50
22,500
-
-
162,00
Reso
World Shale Ga
urces of Cana
nsate
bbl )
Natural
(Tcf)
375.7
154.2
81.0
526.3
100.7
1,237
0 5.1
0 482.6
0 72.0
0 141.7
285.6
0 987.1
0 16.0
155.3
17.0
0 2,413
Ri sked
urce In-Pl ace
s and Shale Oil
ada
Gas
)
Oi l /Cond
(Mi l l i on
7 -
2 -
0 -
3 -
7 -
.8 -
320
6 4,01
0 790
7 2,12
6 -
1 7,24
0 1,60
3 -
0 -
.2 8,84
Ri sk
Recov
Resource Asses

ensate
n bbl )
Natura
(Tc
93
38
20
157
25
335
0 0.
10 113
0 13
20 31
42
40 200
00 2.
31
3.
40 572
ked Techni cal l y
verabl e Resour
ssment

al Gas
cf)
3.9
8.5
0.3
7.9
5.2
5.8
3
3.0
3.3
.1
2.8
0.5
.2
.1
.4
2.9
y
rce
I. Canada

June, 2013

BRITIS
B
shale ba
the organ
In additio
sand and
content
included
T
and rese
shale ba
extensive
industry.
gas and
shale oil
with 336
B
a
s
i
c
D
a
t
a
R
e
s
o
u
r
c
e
G
G
R
R
P
h
y
s
i
c
a
l
E
x
t
e
n
t
P
Th
De
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Re
Av
Th
C
SH COLU
British Colum
sins, the Ho
nic-rich Doig
on to these
d siltstone
formations,
in this shale
This resource
ervoir charac
asins and fo
e well drillin
These two
oil resource
and gas ba
Tcf as the r
Table I-2.
Org
Net
Inte
Ave
Basin/Gros
ShaleForm
Geologic
Depositional En
as Phase
IP Concentration
isked GIP (Tcf)
isked Recoverabl
rospectiveArea (
hickness (ft)
epth (ft)
eservoir Pressure
verageTOC (wt. %
hermal Maturity (
lay Content
MBIA/NO
mbia (BC) a
orn River Ba
g Phosphate
shale resou
Montney Re
classified a
e gas and oil
e assessme
cterization w
ormations of
ng and well
o information
es of British
asins assess
isked, techn
Shale Gas Re
M
ganically Rich
t
erval
erage
M
ss Area
mation
c Age
nvironment
(Bcf/mi
2
)
le(Tcf)
mi
2
)
e
%)
%Ro)
I-
ORTHWES
and the Nor
asin, the Cor
Shale exist
urces, Britis
esource an
as tight san
l resource as
ent study ha
work support
f British Col
l performan
n sources se
h Columbia
sed by this s
nically recove
eservoir Prope
uskwa/Otter Park
Devonian
Marine
3,320
420
380
6,300 - 10,200
8,000
Mod. Overpress.
3.5%
3.50%
Low
Dry Gas
150.9
375.7
93.9
Horn R
(7,100
EIA/ARI W
-4
ST TERR
rthwest Terr
rdova Emba
ts on each s
sh Columbia
nd Doig Re
nds by Can
ssessment.
as benefitted
ted by the B
umbia.
1
,
2
In
ce informat
erve as foun
and the No
study contain
erable shale
erties and Res
k Evie/Klua
Devonian
Marine
3,320
160
144
6,800 - 10,700
8,500
Mod.
Overpress.
4.5%
3.80%
Low
Dry Gas
61.9
154.2
38.5
River
mi
2
)
World Shale Ga
RITORIES
ritories (NW
ayment and
ide of the ce
a also has p
esource play
nadas Natio
d greatly fro
BC Ministry
n addition, t
ion provided
ndations for
orthwest Ter
n 1,238 Tcf
e gas resourc
sources of Bri
Cordova
(4,290mi
2
)
Muskwa/Otter P
Devonian
Marine
2,000
230
207
5,500 - 6,200
6,000
Mod. Overpres
2.0%
2.50%
Low
Dry Gas
67.5
81.0
20.3
s and Shale Oil
WT) hold thr
the Liard Ba
entral Alberta
portions of t
ys. These
onal Energy
om the exte
of Energy a
his study ha
d by Canad
the assessm
rritories. Th
of risked sh
ce, Table I-2
itish Columbia
Liard
(4,300m
Park Lower Besa
Devonia
Marine
3,300
500
400
0 6,600 - 13,
10,000
ss. Highly Overp
3.5%
3.80%
Low
Dry Gas
319.0
526.3
157.9
Resource Asses

ree world-s
asin. In add
a and BC bo
the massive
two low org
y Board, are
ensive geolo
and Mines o
as drawn o
das oil and
ment of the s
he four BC/
hale gas in-p
2.
a/NWT
i
2
)
Deep Ba
(24,800
River Doig Phos
an Triass
e Marin
3,00
165
150
000 6,800 - 1
0 9,25
press. Mod. Over
5.0%
1.10%
Low
s Dry G
67.1
100.
25.2
ssment
scale
dition,
order.
tight
ganic
e not
ogical
n the
n the
d gas
shale
/NWT
place,
asin
mi
2
)
sphate
sic
ne
0
5
0
0,900
0
rpress.
%
%
w
Gas
1
7
2
I. Canada

June, 2013

1. H
1.1 G
T
Northwes
which se
Territorie
by the pi
and the t
area for t
T
age Mus
mapped
resource
included
Mississip
Simpson
1.2 R
T
in the qu
M
interval w
Drilling d
averagin
over-pres
feet, the
prospect
is high, a
high ther
The M
HORN RIVE
Geologic Se
The Horn Riv
st Territories
eparates the
es, is defined
inch-out of t
thinning of t
the Horn Riv
The Horn Riv
kwa/Otter P
in the Horn
e concentrati
in the study
ppian Banff/
Shale.
Reservoir P
Two major sh
antitative po
Muskwa/Otte
within the H
depth to the
g 8,000 fee
ssured in th
Muskwa/Ot
ive area ave
averaging ab
rmal maturity
Muskwa/Otte
ER BASIN
etting
ver Basin co
s, Figure I-2
Horn River
d by the thin
he shale. It
he shale de
ver Shale in
ver Basin co
Park and Evie
n River Basi
on favorable
y) include th
/Exshaw Sh
Properties
hale gas form
ortion of our
er Park. The
Horn River G
e top of the
et for the pr
he center of
tter Park ha
erages 3.5%
bout 3.5% an
y in the pros
r Park
I-
overs an are
2. The bas
r Basin from
ning of the s
ts eastern b
eposit. We h
the west-ce
ntains a seri
e/Klua most
n to establis
e for shale g
he high orga
hale and th
(Prospecti
mations, the
resource as
e Middle De
Group, is th
Muskwa/Ot
rospective a
the basin.
as a net pa
% for the net
nd placing th
spective area
Shale ha
EIA/ARI W
-5
ea of 7,100 m
sins western
m the Liard B
shale sectio
border is def
have defined
ntral portion
ies of organ
t prominent,
sh a prospe
gas developm
anic-content,
he thick, low
ive Area)
Muskwa/Ot
ssessment.
evonian Mus
he main sha
tter Park Sh
rea. The M
With an or
ay of 380 fe
shale thickn
his shale gas
a, the in-pla
as high
World Shale Ga
mi
2
in northe
n border is
Basin. Its n
n, and its so
fined by the
d a higher q
n of the basin
ic-rich shale
Figure I-4.
3
ective area w
ment. Other
, lower therm
w organic-c
tter Park and
skwa/Otter P
ale gas targ
hale ranges
Muskwa/Otte
rganic-rich g
eet. Total or
ness investig
s in the dry g
ce shale gas
quartz a
s and Shale Oil
ern British C
defined by
orthern bord
outhern bord
Slave Point
quality, 3,320
n, Figure I-3
es, with the M
These two
with sufficie
r shales in th
mal maturity
content Late
d the Evie/K
Park Shale,
get in the H
s from 6,300
er Park Sha
gross shale
rganic conte
gated. Ther
gas window
s has a CO
2
and low
Resource Asses

Columbia an
the Bovie F
der, in North
der is constra
t/Keg River
0-mi
2
prospe
.
Middle Devo
shale units
ent thickness
his basin (bu
y, poorly de
e Devonian
Klua, are incl
the upper s
orn River B
0 to 10,200
ale is moder
thickness of
ent (TOC) in
rmal maturity
. Because o
2
content of
clay con
ssment
d the
Fault,
hwest
ained
Uplift
ective
onian-
were
s and
ut not
efined
Fort
luded
shale
Basin.
feet,
rately
f 420
n the
y (R
o
)
of the
11%.
ntent.
I

J

F
S
. Canada

June, 2013
Figure I-2. Horn R
Source: ARI, 2013.
River Basin (Musk kwa/Otter Park Sha ale) Outline and D
I-6
Depth Figure I
Source: AR
EIA/ARI W

I-3. Horn River Ba
I, 2013.
World Shale Gas and
asin (Muskwa/Otte
Prospective Are
d Shale Oil Resource
er Park Shale) Iso
ea
e Assessment
opach and
I. Canada

June, 2013

E
Horn Riv
the Evie/
separate
average
maturity
content i
favorable
O
Devonian
The Ban
massivel
lean (TO
Sourc
Figure
Evie/Klua. T
ver Group, p
/Klua Shale
ed by an or
TOC of 4.5
(R
o
) is high
s estimated
e for hydraul
Other Shales
n/Lower Mis
nff/Exshaw S
y thick Fort
OC <1%). B
ce: D. J. K. Ross a
e I-4. NE Briti
The Middle
provides a se
is approxim
rganically-lea
%, has a th
h at about 3
at 13%. Th
ic stimulatio
s. The Horn
sissippian B
Shale, while
Simpson S
ecause of th
nd R. M. Bustin, A
Mi
Lo
I-
sh Columbia,
Devonian E
econdary sh
mately 500 fe
an rock inte
hickness of a
3.8%, placing
he Evie/Klua
on.
n River Basi
Banff/Exshaw
e rich in TO
hale, with a
hese less fa
AAPG Bulletin, v. 92
ddle
ower
EIA/ARI W
-7
Devonian and
Evie/Klua Sh
hale gas targ
eet below th
erval. The
about 160 fe
g this shale
a Shale has
in also conta
w Shale and
OC (~5%) i
gross interv
avorable res
2, no. 1 (January 2
World Shale Ga
d Mississippia
hale, the low
get in the H
he top of the
organic-ric
eet (gross) a
e gas in the
a low clay c
ains two sh
the Late De
is relatively
val of 2,000
ervoir prope
2008), pp. 87125
s and Shale Oil
an Stratigraph
wer shale in
Horn River B
e Muskwa/O
ch Evie/Klua
and 144 fee
dry gas wi
content mak
allower sha
evonian Fort
thin (10 to
0 to 3,000 fe
erties and lim
Resource Asses

hy
nterval withi
asin. The t
Otter Park S
a Shale, wit
et (net). The
ndow. The
ing the form
les - - the U
t Simpson S
o 30 feet).
eet, is organ
mitations of
JAF21300.A
ssment

n the
top of
Shale,
th an
ermal
e CO
2

mation
Upper
Shale.
The
nically
data,
AI
I. Canada

June, 2013

these two
shale res
1.3 R
T
Evie/Klua
W
resource
Based on
recovera
T
risked ga
resource
1.4 C
In
marketab
basin.
4

National
River Ba
resource
W
the two s
resource
BC Oil a
Basin.
6
T
marketab
place. (
from mar

o shale units
source asses
Resource A
The prospec
a Shale is ap
Within this p
e concentrati
n favorable
ble shale ga
The thinner E
as in-place,
e for the Evie
Comparison
n mid-2010,
ble (recover
Subsequen
Energy Boa
asin that ide
e of 78 Tcf.
5

We estimate
shale units
e in-place. O
and Gas Co
The BC ME
ble (recovera
(The BC ME
rketable sha
s have not b
ssment.
Assessmen
ctive area f
pproximately
prospective
on of about
reservoir mi
as resource
Evie/Klua Sh
excluding C
e/Klua Shale
n with Oth
the Canadi
able after e
tly, in 2011
ard (NEB) pu
entified 448

a larger ris
assessed b
Our recovery
ommission i
EM/NEB Ho
able) shale g
EM/NEB ass
ale gas.)
I-
been include
nt
for both the
y 3,320 mi
2
.
area, the H
151 Bcf/mi
2
neralogy an
of 94 Tcf for
hale has a r
CO
2
. We es
e of 39 Tcf, T
er Resourc
an Society f
extraction of
, the BC M
ublished an
Tcf of gas
ked, technic
by this study
y factor is c
n their 201
orn River B
gas resource
sessment ex
EIA/ARI W
-8
ed in the qua
e Horn Riv

Horn River
and a risked
nd other prop
r the Muskwa
resource con
stimate a ris
Table I-2.
ce Assess
for Unconve
CO
2
and a
Ministry of E
assessment
in-place, w
cally recove
y, using a re
onsistent wi
1 hydrocarb
Basin asses
e, implies a
xcluded CO
2
World Shale Ga
antitative po
ver Muskwa
Muskwa/Ot
d gas in-plac
perties, we e
a/Otter Park
ncentration o
sked, techn
sments
entional Gas
ny NGLs) s
Energy and
t for the sha
with an expe
rable shale
ecovery fact
ith the 25%
bon reserve
sment repo
lower recove
content and
s and Shale Oil
rtion of the H
a/Otter Park
tter Park S
ce is 376 Tc
estimate a r
k Shale, Tab
of 62 Bcf/m
ically recove
s estimated
shale gas fo
Mines (BC
ale gas resou
ected marke
gas resourc
tor of 25%
recovery fa
es report for
ort, with a
ery factor of
d produced
Resource Asses

Horn River B
k Shale and
Shale has a
cf, excluding
isked, techn
ble I-2.
i
2
and 154 T
erable shale
75 to 170 T
or the Horn
C MEM) and
urces of the
etable shale
ce of 133 T
of the shale
actor used b
r the Horn
lower 78 T
f 17.4% of ga
gas used as
ssment
Basin
d the
a rich
CO
2
.
nically
Tcf of
e gas
Tcf of
River
d the
Horn
e gas
cf for
e gas
by the
River
Tcf of
as in-
s fuel
I. Canada

June, 2013

C
anticipate
well com
well com
increase
1.5 R
A
including
others.
A
shale ga
net prod
gas reso
E
gas lease
risking it
Tcfe of n
recovera
initial set
acre leas
Nexen, w
resource
T
productiv
estimated
recovery
recovera

Consistent w
es progress
mpletion and
mpletion meth
EURs in the
Recent Act
A number of
g Apache Ca

Apache Cana
s in the bas
uction of 90
urce of 9.2 T
EnCana, with
es in the Ho
s 170,000 n
net risked res
ble resource
t of shale ga
se position,
with 90,000
es from its lea
Total natural
ve wells in
d 10 Tcf of i
factor.
8
I
ble raw gas
with the exp
ively increas
production
hods in the
e Horn River
ivity
major and in
anada, EnCa
ada, the Ho
sin, has full-
0 million cub
Tcf from its s
h 68 long ho
orn River Bas
net acre lea
source. EO
es, has drill
as wells has
18 shale ga
acres, has
ase area.
8

gas produ
2011. In th
initial raw ga
n their 201
reserves to

I-
perience of
sed efficienc
practices. O
Horn River
r Basin shale
ndependent
ana, EOG R
orn River Ba
scale develo
bic feet per d
shale leases
rizontal well
sin. Devon,
ase position,
OG, with a 15
led 35 shale
s met or exc
as wells and
drilled 42 h
uction from
heir 2010 re
as reserves
1 report, th
11.5 Tcf.
EIA/ARI W
-9
shale gas
cies for shal
One examp
Basin. The
es from 11 B
companies
Resources,
asins most
opment und
day (MMcfd
s in the Horn
s, produced
with 22 sha
, which the
57,000 net a
e gas wells
eeded expe
d a projecte
horizontal we
the Horn R
eport, the B
from 40 Tcf
he BCOGC
World Shale Ga
s developme
e gas recov
le is Nexen
ese advanc
Bcf/well to 16
are active i
Nexen, Dev
active oper
erway in the
d). Apache
n River Basin
d a net 95 M
le gas wells
company e
acre lease p
and claims
ectations. Q
ed recoverab
ells and est
River Basin
BC Oil and
f of original g
increased t
s and Shale Oil
ent in the
very as indu
s testing of
ed methods
6 Bcf/well.
n the Horn R
von Canada
rator with 72
e Two Island
estimates a
n.
7

MMcfed in 20
s, is in the ea
estimates co
osition and
s that the pe
Quicksilver ha
ble resource
timates 6 Tc
was 382 M
Gas Comm
gas in-place
the Horn R
Resource Asses

U.S., this s
stry optimize
f advanced s
s are design
River Shale
, Quicksilve
2 wells targ
d Lake area
a net recove
011 from its s
arly stages o
ontains near
9 Tcf of pote
erformance
as a 130,00
e of over 10
cf of recove
MMcfd from
mission (BCO
e, equal to a
River Shale
ssment
study
es its
shale
ed to
play,
r and
geting
a with
erable
shale
of de-
rly 10
ential
of its
00 net
0 Tcf.
erable
m 159
OGC)
25%
initial
I. Canada

June, 2013

T
expande
infrastruc
facilities.
LNG exp
Figure I-
tons of L
T
with an in
to the Pa
date is 2
GasLink
export fa
The gas pro
d to provide
cture is bein
A 287-mile
port plant (d
5. The Kit
NG per year
Figu
TransCanada
nitial capacit
acific Northw
018. Earlier
Project, link
cility near K
ocessing an
e improved
ng expanded
e (480-km) P
due on line
timat LNG te
r (MTPA), ex
ure I-5. Weste
a is proposi
ty of 2 Bcfd
west LNG ex
r, TransCana
king Horn R
itimat estima
I-
nd transport
market acce
d to bring t
Pacific Trail P
in 2017) wi
erminal has
xpanding to
ern Canadas L
ng to build
(expandable
xport termin
ada was sel
River (and M
ated to be in
EIA/ARI W
10
tation capac
ess for its g
he gas sou
Pipeline is u
ith Spectra
an announc
10 MTPA w
LNG Export P
the 470-mil
e to 3.6 Bcfd
al near Prin
ected by Sh
Montney) ga
n-service tow
World Shale Ga
city in the
growing sha
th to a seri
under constr
Energys W
ced initial se
with a second
ipelines and I
e Prince Ru
d) to move M
nce Rupert,
hell Canada
as with Shel
ward the end
s and Shale Oil
Horn River
ale gas prod
es of propo
ruction to co
West Coast P
end-out cap
d train.
nfrastructure
upert Gas T
Montney and
BC. The pl
to build the
lls planned
d of the dec
Resource Asses

r Basin is b
duction. Pip
osed LNG e
nnect the K
Pipeline Sys
pacity of 5 m

Transmission
d Horn Rive
lanned in-se
1.7 Bcfd Co
12 MTPA
cade.
9

ssment
being
peline
export
itimat
stem,
million
n line
er gas
ervice
oastal
LNG
I. Canada

June, 2013

2. C
2.1 G
T
corner of
Embaym
The Emb
its easte
formation
area, Fig
2.2 R
O
of our res
M
gas targe
prospect
moderate
207 feet
thickness
window.
hydraulic
O
Park by
Banff/Exs
shales ha
assessm

CORDOVA
Geologic Se
The Cordova
f British Col
ment is sepa
bayments no
ern boundary
n, the Musk
gure I-7.
Reservoir P
One shale ga
source asse
Muskwa/Otte
et in the Cor
ive area ra
ely over-pres
t. Total org
s investigate
The Musk
c stimulation
Other Shales
the Slave
shaw and F
ave not bee
ment.
EMBAYME
etting
a Embayme
lumbia, exte
rated from t
orthern and
y is the Bri
kwa/Otter Pa
Properties
as formation
essment.
er Park. The
rdova Embay
nges from
ssured. The
ganic conte
ed. Therma
wa/Otter Pa
.
s. The deep
Point and
ort Simpson
en included i
I-
ENT
ent covers a
ending into t
the Horn Riv
southern bo
itish Columb
ark Shale, w
(Prospecti
n, the Muskw
e Middle De
yment. The
5,500 to 6,
e organic-ric
nt (TOC) in
al maturity a
ark Shale ha
per Evie/Klua
Sulfur Poin
n shales are
in the quant
EIA/ARI W
11
an area of 4
the Northwe
ver Basin on
oundaries ar
bia and Alb
was mapped
ive Area)
wa/Otter Par
evonian Mus
e drilling dep
200 feet, a
ch gross thic
n the prosp
averages 2.0
as a moder
a Shale, sep
nt Formation
shallower, t
titative portio
World Shale Ga
4,290 mi
2
i
est Territorie
n the west b
re defined b
berta border
d to establis
rk, is include
skwa/Otter P
pth to the top
averaging 6,
kness is 230
pective area
0% Ro, plac
rately high q
parated from
ns, is thin,
thin and/or l
on of the Co
s and Shale Oil
n the extre
es, Figure I-
by the Slave
y a thinning
r. The dom
sh the 2,000
ed in the qu
Park Shale i
p of the Mus
,000 feet.
0 feet, with a
a is 2.5% fo
cing the sha
quartz conte
m the overlyi
Figure I-8.
ow in organ
ordova Emb
Resource Asses

me northea
6. The Cor
e Point Plat
of the shale
minant shale
0-mi
2
prospe
uantitative po
s the main s
skwa Shale i
The reserv
a net thickne
or the net s
le in the dry
ent, favorab
ng Muskwa/
The ove
ics. These
ayment reso
ssment
astern
rdova
tform.
e and
e gas
ective
ortion
shale
in the
oir is
ess of
shale
y gas
le for
/Otter
rlying
other
ource
I

J

S
. Canada

June, 2013
Figure I-6. Cordo
Source: ARI, 2013.
va Embayment (M
De
Muskwa/Otter Park
epth
k Shale) Outline an
I-12
nd Figu
Source: ARI, 2
EIA/ARI W

ure I-7. Cordova E
an
2013.
World Shale Gas and
Embayment - Mus
nd Prospective Ar
skwa/Otter Park S
rea
e Assessment
hale Isopach

I. Canada

June, 2013

2.3 R
T
approxim
concentr
mineralo
resource
2.4 C
I
shale ga
Embaym
Cordova
Resource A
The prospec
mately 2,000
ration of 68
gy and oth
e of 20 Tcf fo
Comparison
n mid-2010,
as in-place a
ment.
4
In ear
Embaymen
Figure I-8.
Assessmen
ctive area o
0 mi
2
. With
Bcf/mi
2
and
her propertie
or the Muskw
n with Oth
the Canadi
and 30 to 6
rly 2012, the
t, a number
I-
. Cordova Em
nt
of the Cord
hin this pros
d a risked ga
es, we estim
wa/Otter Par
er Resourc
an Society o
68 Tcf of m
e BC Ministry
which appe
EIA/ARI W
13
mbayment Stra
dova Emba
spective are
as in-place o
mate a risk
k Shale in th
ce Assess
of Unconven
arketable (r
y of Energy
ears to have
World Shale Ga
atigraphic Col
ayments M
ea, the shale
of 81 Tcf. B
ked, technic
he Cordova
sments
ntional Gas (
recoverable)
reported 20
been based
s and Shale Oil
umn
uskwa/Otter
e has a mo
Based on fa
cally recove
Embayment
(CSUG) esti
) shale gas
00 Tcf of ga
d on the CSU
Resource Asses

r Park Sha
oderate reso
vorable rese
erable shale
t, Table I-2.
mated 200 T
for the Cor
s in-place fo
UG study.
4

ssment
ale is
ource
ervoir
e gas

Tcf of
rdova
or the
I. Canada

June, 2013

2.5 R
N
drilled tw
continge
have for
resource

Recent Act
Nexen has a
wo vertical
nt resource
rmed a joint
es on their 17
ivity
acquired an
and two h
of up to 5 T
t venture to
70,000-acre

I-
82,000-acre
horizontal sh
Tcf for its lea
o develop th
(gross) leas
EIA/ARI W
14
e lease posit
hale gas e
ase position.
he estimated
se area.
11

World Shale Ga
tion in the C
exploration w
10
PennWes
d 5 to 7 Tc
s and Shale Oil
Cordova Emb
wells. Nex
st Exploratio
cf of recove
Resource Asses

bayment and
xen estimat
on and Mitsu
erable shale
ssment
d has
tes a
ubishi
e gas
I. Canada

June, 2013

3. L
3.1 G
T
9.
3
Its e
Horn Riv
and the
defined b

T
Besa Riv
Basin. A
Devonian
equivalen
11.
13
Ba
mapped
LIARD BAS
Geologic Se
The Liard Ba
astern borde
ver Basin, Fi
Yukon/Nort
by structural
Figur
Source: Modif
The dominan
ver Shale, eq
Additional, le
n- and Miss
nt) and the
sed on still
for the Lowe
SIN
etting
asin covers a
er is defined
gure I-8. Its
thwest Terri
folding and
re I-9. Liard B
fied from Ross a
nt shale gas
quivalent to
ess organica
issippian-ag
Upper Besa
limited data
er Besa Rive
I-
an area of 4
d by the Bov
s northern bo
itories borde
shale depos
Basin (Lower B
and Bustin, 2008
formation in
the Muskwa
ally rich and
ge shales, su
a River Sha
a on this sha
er Shale in th
EIA/ARI W
15
4,300 mi
2
in
vie Fault, w
oundary is c
er, and its
sition.
Besa River Sh
.
n the Liard B
a/Otter Park
d less prosp
uch as the M
ale (Exshaw
ale play, a p
he central po
World Shale Ga
northwester
hich separa
currently def
western an
hale) Outline a
Basin is the
k and Evie/K
ective shale
Middle Besa
w/Banff equiv
prospective a
ortion of the
s and Shale Oil
rn British Co
ates the Liar
fined by the
nd southern
and Depth Map
Middle Dev
Klua shales i
es exist in th
a River Sha
valent), Figu
area of 3,3
e basin, Figu
Resource Asses

olumbia, Fig
rd Basin from
British Colu
boundaries
p

vonian-age L
in the Horn
he basins U
le (Fort Sim
ures I-10
12
a
300 mi
2
has
re I-12.
3

ssment
ure I-
m the
umbia
s are
Lower
River
Upper
mpson
and I-
been
I. Canada

June, 2013

Source: Lev

Figu
vson et al., Britis
ure I-10. Liard
h Columbia Min
Figure I-
I-
d Basin Locatio
istry of Energy,
-11. Liard Bas
EIA/ARI W
16
on, Cross-Sec
Mines, and Petr
sin Stratigraph
World Shale Ga
ction and Pros
roleum Resource
hic Cross-Sec
s and Shale Oil
spective Area
es, 2009.
ction

Resource Asses

a
ssment

I. Canada

June, 2013

3.2 R
T
Drilling d
feet, ave
thickness
prospect
thermal m
high ther
geology
River Sh
clay.

Figure I-1
Source: M
Reservoir P
The Lower Be
depths to the
eraging abou
s of 750 fee
ive area, loc
maturity of t
rmal maturit
of the Besa
hale is quart
12. Liard Basi
Modified from Ros
Properties
esa River or
e top of the
ut 10,000 fe
et and a ne
cally up to 5
the prospect
ty, we estim
River Shale
tz-rich, with

I-
in (Lower Bes
ss and Bustin, 2
(Prospecti
rganic-rich s
formation i
eet. The o
et thickness
5%, average
tive area is
mate the in-
e is complex
episodic int
EIA/ARI W
17
sa River Shale
006.
ive Area).
shale is the m
n the prosp
rganic-rich L
s of 600 fee
es 3.5% for t
high, with a
place shale
x with numer
tervals of do
World Shale Ga
e) Isopach and

main shale g
ective area
Lower Besa
et. Total or
the net shal
an average R
gas has a
rous faults a
olomite and
s and Shale Oil
d Prospective
gas target in
range from
a River sect
rganic conte
le interval in
Ro of 3.8%.
CO
2
conte
and thrusts.
more perva
Resource Asses

Area

n the Liard B
6,600 to 13
tion has a g
ent (TOC) in
nvestigated.
Because o
nt of 13%.
The Lower
asive interva
ssment
Basin.
3,000
gross
n the
The
of the
The
Besa
als of
I. Canada

June, 2013

3.3 R
T
Bcf/mi
2
.
526 Tcf.
estimate
Table I-2
3.4 R
A
area, est
marketab
foot later
recovery
N
Tcf of p
Questerr
in the Be

Resource A
The Liard Ba
Within the p
Based on
a risked, te
2.
Recent Act
Apache has a
timating 210
ble gas). Ap
ral and 6 fr
of 3.1 Bcf.
Nexen has a
prospective
re Energy Co
esa River and
Assessmen
asins Lower
prospective a
n favorable
echnically re
ivity
a 430,000 a
0 Tcf of ne
paches D-3
rac stages,
The well ha
cquired a 12
recoverable
orp., two sm
d Mattson sh

I-
nt
r Besa Rive
area of 3,30
reservoir m
ecoverable s
acre lease po
t gas in-pla
34-K well, dr
had a 30-d
s a currently
28,000-acre
resource t
mall Canadia
hale/siltston
EIA/ARI W
18
er Shale has
0 mi
2
, the ris
mineralogy b
shale gas re
osition in the
ace and 54
rilled to a ve
day IP of 21
y projected E
(net) land p
to its lease
n operators,
e intervals a
World Shale Ga
s a high res
sked shale g
but significa
esource of
e center of t
Tcf of reco
ertical depth
1.3 MMcfd a
EUR of near
position in th
area.
10
Tr
, have comp
at the Beave
s and Shale Oil
source conc
gas in-place
nt structura
158 Tcf for
the Liard Ba
overable raw
h of 12,600 f
and a 12 m
rly 18 Bcf.
7

his basin, as
ranseuro En
pleted three
er River Field
Resource Asses

centration of
is approxim
l complexity
the Liard B
asins prospe
w gas (48 T
feet with a 2
month cumu
ssigning up
nergy Corp.
exploration
d.
14

ssment
f 319
mately
y, we
Basin,
ective
Tcf of
2,900
lative
to 24
. and
wells
I. Canada

June, 2013

4. D
4.1 G
T
The Mid
predomin
Phospha
the west-
Fig

4.2 R
T
along the
Drilling d
Shales
M
o
n
t
n
e
y
M
DOIG PHOS
Geologic Se
The Doig Pho
dle Triassic
nantly siltsto
ate Formatio
-central port
gure I-13. Dep
Reservoir P
The Middle T
e western e
depth to the
thickness ra
JAF02054.CDR
F
o
o
t
h
ills
M
o
n
t
n
e
y
Lower Montney
Upper Montney
DoigPhosphate
Doig
Halfway
Belloy
Blac
W
odified fromTristoneSh
SPHATE S
etting
osphate Sha
Doig Phos
one and sa
n, a high or
ion of the De
position and S
Properties
Triassic Doi
edge of the
top of the
anges from
S
w
a
n
Advanced Montney
Well Completion
ck Marine Shale
hale Gas Report Octobe
I-
HALE/DEE
ale is located
sphate Form
and conten
rganic-conte
eep Basin.
Stratigraphy of
(Prospecti
ig Phosphat
e Deep Bas
shale avera
130 to 20
a
n
L
a
k
e
D
S
er 2008
EIA/ARI W
19
EP BASIN
d in the Dee
mation serve
nt Doig Res
nt shale, ha
f Doig Phosph
ive Area)
te Shale ha
in that form
ages 9,250
00 feet, wit
D
a
w
s
o
n
Siltstone, Sands
and Shales
World Shale Ga
ep Basin of A
es as the ba
source Play
as a prospec
hate and Mont
as a thick s
ms the prosp
feet. The o
th a net th
Conv
s and Shale Oil
Alberta and
ase for the
y, Figure I-
ctive area of
tney/Doig Res
section of o
pective area
organic-rich
ickness of
ventional Sands
Resource Asses

British Colum
more exten
-13. The
f 3,000 mi
2
a
source Plays

rganic-rich s
a, Figure I-
Doig Phosp
150 feet in
Post-Triassic
Unconformity
E
JAF028245.PPT
ssment
mbia.
nsive,
Doig
along
shale
14.
15
,
8

phate
n the
I. Canada

June, 2013

prospect
gas/cond
X-ray dif
quartz w
making t

ive area. T
densate wind
ffraction of c
ith minor to
he formation
Figure
The average
dow. The to
cores taken
moderate le
n favorable f
e I-14. Prospe
Modified from W

I-
e thermal m
otal organic
from the Do
evels of clay
for hydraulic
ective Area for
Walsh, 2006.
EIA/ARI W
20
maturity (Ro
content (TO
oig Phospha
y and trace t
fracturing.
r the Doig Pho
World Shale Ga
o of 1.1%) p
OC) is mode
ate Formatio
to minor amo
osphate Shale
s and Shale Oil
places the s
erate to high
on show sig
ounts of pyr
e (Deep Basin)
Resource Asses

shale in the
h, averaging
gnificant leve
rite and dolo
)

ssment
e wet
g 5%.
els of
omite,
I. Canada

June, 2013

4.3 R
T
the west
east and
of 67 Bc
mineralo
Doig Pho
4.4 C
In
4.5 R
T
much of
the Mont
tested th
The com

Resource A
The prospect
by the Pha
south. Wit
cf per mi
2
of
gy, we estim
osphate Sha
Comparison
n 2006, Wals
Recent Act
The Doig Ph
the activity
tney and Do
e larger Doi
pany plans t
Assessmen
tive area of
nerozoic De
hin the pros
f wet gas an
mate a riske
ale.
n with Oth
sh estimated
ivity
hosphate Sh
and apprais
oig Resource
ig interval w
to target the

I-
nt
the Doig Ph
eformation F
spective area
nd a risked
ed, technical
er Resourc
d a gas in-p
hale reservo
sal of the Do
e plays. Pe
with a vertica
e Doig with a
EIA/ARI W
21
hosphate Sh
ault and by
a, the shale
resource in
ly recoverab
ce Assess
place for the
oir overlies t
oig Phospha
engrowth En
al well in 201
a horizontal w
World Shale Ga
hale is estim
the pinch-o
has a mode
n-place of 10
ble shale ga
sments
Doig Phosp
the Montney
ate is report
nergy Corp,
11 with a rep
well in 2012
s and Shale Oil
mated at 3,00
ut of the sha
erate resour
01 Tcf. Bas
as resource
phate Unit of
y Resource
ted as part o
a small Can
ported test r
.
8

Resource Asses

00 mi
2
, limite
ales to the n
rce concentr
sed on favo
of 25 Tcf fo
f ~70 Tcf.
15

Play. As s
of exploratio
nadian prod
rate of 750 M
ssment
ed on
north,
ration
orable
or the

such,
on for
ducer,
Mcfd.
I. Canada

June, 2013

5. M
T
These ar
of dry an
T
as tight g
Area Atla
oil/conde
from the
assessm
BC alon
confirmin
shale oil
T
plays of B
of the Mo
6. C
T
Norman
been dri
Northwes
H
wells on
MGM En
during th
drill a ho
the prosp
this shale

MONTNEY A
The Deep Ba
re multi-depo
d wet gas in
The Canadia
gas sands. W
as NEBC,
16

ensate, Figu
e shale res
ment, we spe
g the north
ng this specu
and gas ass
To put the p
British Colum
ontney and D
CANOL SHA
The Canol Sh
Wells, North
lled to explo
st Territories
Husky Oil, ha
its 300,000
nergy Corp,
he current wi
rizontal well
pectivity of th
e play in the
AND DOIG
asin of Britis
ositional, Tri
n-place in co
n National E
Work by the
shows that o
re I-15. As
source asse
culated that
hwestern ed
ulation, we h
sessment.)
otential volu
mbia into pe
Doig Resour
ALE
hale is an em
hwest Territo
ore this sha
s Geoscienc
aving spent
0-net acre le
with 470,00
inter explora
in 2012 to t
he Canol Sh
assessmen

I-
G RESOUR
sh Columbia
iassic-age h
onventional,
Energy Board
e BC Oil and
only a very s
such, we ha
essment of
t a shale-rich
dge of the
have exclud
ume of tight
rspective, th
rce plays at
merging sha
ories. To da
ale oil play.
ce Office to b
$376 millio
ease area a
0-net acres
ation season
est the prod
hale is gaine
nt of Canada
EIA/ARI W
22
CE PLAYS
a contains t
ydrocarbon
tight sand a
d categorize
Gas Comm
small portion
ave excluded
Canada.
h Montney a
Deep Basin
ed this area
t gas resour
he BC MEM
450 Tcf and
ale play loca
ate, only seis
Work is u
better define
n at the 20
nd is planni
in this reso
n. MGM (wit
ductivity of th
ed from the a
as shale gas
World Shale Ga
S (BRITISH
the Montney
accumulatio
nd shale for
es the Montn
mission, in th
n of the Mon
d the Montn
(In our pre
area with hig
n. Howeve
a and resour
rce in the M
reports a ga
d 200 Tcf res
ted in the ce
smic and a h
underway o
e this resourc
11 land auc
ing on comp
ource play, p
th Shell as i
he Canol Sha
above wells,
s and oil reso
s and Shale Oil
H COLUMB
y and Doig
ons containin
rmations.
ney and Doig
heir Montne
ntney Resou
ney and Doig
evious shal
gher TOC va
er, because
rce volumes
Montney and
as in-place f
spectively.
8

entral Macke
handful of ve
n a multi-ye
ce.
ction, has dr
pleting three
plans to drill
ts partner) w
ale play.
18
A
, it would be
ources.
Resource Asses

IA)
Resource p
ng large volu
g Resource
y Formation
rce play con
g Resource
le gas reso
alues may ex
of lack of
from our cu
d Doig Reso
for the BC po

enzie Valley
ertical wells
ear study by
rilled two ve
e wells in 20
one vertica
withdrew pla
As informatio
timely to inc
ssment
plays.
umes
plays
n Play
ntains
plays
ource
xist in
data
urrent
ource
ortion
y near
have
y the
ertical
013.
17

al well
ans to
on on
clude
I. Canada

June, 2013

Fig
Source: B
gure I-15. Mon
C Oil and Gas C

I-
ntney Trend
Commission Mon
EIA/ARI W
23
Identified Ga
ntney Formation
World Shale Ga
as Liquids/Oil
Play Atlas NEB
s and Shale Oil
Distribution

BC October 2012
Resource Asses

2.
ssment
I. Canada

June, 2013

ALBER
A
including
East and
west-cen
formation
portion o
T
in the E
Hydrocar
the oil, w
provided
T
minimum
criterion
study.
independ
gradients
reservoir
pressure
each the
T
place, wi
five basin
the risked

RTA
Alberta holds
g: (1) the Ba
d West Shale
ntral Alberta
ns of the Co
of the Doig P
The study ha
ERCB/AGS
rbon Resou
wet gas/con
valuable da
To maintain c
m criterion of
of >1.3% R
Our study
dently derive
s, gas-oil ra
r properties
ed gradients
rmal maturit
The five Albe
ith 200 Tcf a
ns also cont
d, technicall
s a series o
anff and Exs
e Basin of w
a; (4) the M
olorado Grou
Phosphate Sh
as benefitted
report ent
rce Potentia
ndensate an
ata on key re
consistency
f 0.8% R
o
fo
R
o
for the dry
also expan
ed estimates
atios (as fu
to each sha
in their Albe
ty (R
o
) value
erta basins a
as the risked
tain 140 billi
y recoverab

I-
of significant
shaw Shale
west-central A
Muskwa Sha
up in southe
hale play, di
d greatly from
titled, Sum
al.
19
This E
nd dry gas
eservoir prop
with the ER
or the volati
y gas windo
ded on the
s of prospec
unctions of
ale play. (T
erta resourc
, independe
assessed by
d, technically
on barrels o
le shale oil r
EIA/ARI W
24
t, organic-ri
in the Alber
Alberta; (3)
ale in north
ern Alberta.
scussed pre
m the in-dep
mmary of A
ERCB/AGS
play areas
perties such
RCB/AGS stu
ile/black oil
ow, compare
e analytical
ctive areas a
reservoir p
The ERCB/A
ce assessme
ent of reservo
y this study
y recoverabl
of risked sha
resource, Ta
World Shale Ga
ch shale ga
rta Basin; (2
the Nordegg
hwest Alber
(In additio
eviously.)
pth and rigor
Albertas Sh
report helpe
used by th
as porosity
udy for Alber
window. H
ed to the >1
data in ER
as well as o
pressure an
AGS assum
ent and linke
oir pressure
contain 987
e shale gas
ale oil in-plac
able I-4.
s and Shale Oil
as and shal
2) the Duver
g Shale in th
rta; and (5
on, Alberta h
rous siltston
hale- and
ed define th
his study.
and net pay
rta, our stud
However, ou
1.35% R
o
in
RCB/AGSs
our assignm
nd temperat
ed normal r
ed a consta
and depth.)
7 Tcf of risk
s resource, T
ce, with 7.2
Resource Asses

le oil format
rnay Shale i
he Deep Bas
) the shale
holds the ea
e and shale
Siltstone-Ho
e boundarie
This report
y.
dy used the s
r study use
n the ERCB/
report with
ments of pres
ture), and
rather than
nt oil-gas ra
)
ked shale ga
Table 1-3. T
billion barre
ssment
tions,
n the
sin of
e gas
astern
e data
osted
es for
also
same
d the
/AGS
h our
ssure
other
over-
atio to
as in-
These
els as
I. Canada

June, 2013

R
e
s
o
u
r
c
e
Gas Pha
GIP Con
RiskedG
RiskedR
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospec
Thicknes
Depth(ft
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservo
Average
Thermal
ClayCon
S
B
a
s
i
c
D
a
t
aB
Depo
B
a
s
i
c
D
a
t
a
OIP
Ris
Ris
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pro
Thi
Dep
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Res
Ave
The
Cla
R
e
s
o
u
r
c
e
Oil
Ta
Ta
L
OrganicallyRich
Net
Interval
Average
ase
ncentration(Bcf/mi
2
)
GIP (Tcf)
Recoverable(Tcf)
ctiveArea(mi
2
)
ss (ft)
t)
irPressure
TOC (wt. %)
Maturity(%Ro)
ntent
ShaleFormation
Geologic Age
Basin/Gross Area
sitional Environment
Organi
Net
Interva
Averag
Basin/Gross Ar
ShaleFormatio
Geologic Age
Depositional Enviro
P Concentration (MM
ked OIP (B bbl)
ked Recoverable(B
ospectiveArea(mi
2
)
ckness (ft)
pth (ft)
servoir Pressure
erageTOC (wt. %)
ermal Maturity (%R
y Content
Phase
able I-3. Shale
able I-4. Shale

AlbertaBasin
(28,700mi
2
)
Banff/Exshaw
L. Mississippian
Marine
10,500 13,00
65 45
15 41
3,900- 6,200 7,500- 10
4,800 9,000
Normal
Highly
Overpre
3.2% 3.4%
0.90% 0.90%
Medium Low
Assoc. Gas Assoc. G
1.2 12.0
5.1 109.1
0.3 13.1
Alberta
(28,70
Banff/E
L. Missi
Ma
10,
cally Rich 6
1
l 3,900
e 4,8
No
3.2
0.9
Med
O
2
10
0.
rea
on
e
onment
Mbbl/mi
2
)
B bbl)
)
Ro)
I-
Gas Reservoi
e Oil Reservoir
0 7,350
60
54
0,500 10,500- 13,800 13,8
0 11,880
y
ess.
Highly
Overpress. O
% 3.4%
% 1.15%
Low
Gas Wet Gas
47.4
1 244.1
61.0
EastandWestShaleBasi
(50,500mi
2
)
Duvernay
U. Devonian
Marine
aBasin
00mi
2
)
Exshaw
issippian
arine
,500 13,00
65 45
15 41
- 6,200 7,500 - 1
800 9,00
rmal
High
Overpre
2% 3.4%
90% 0.90%
dium Low
Oil Oil
2.5 7.1
0.5 64.2
.32 3.85
Eastan
EIA/ARI W
25
ir Properties a
r Properties a

2,900 6,900
70 82
63 37
800- 16,400 5,200- 8,200
15,000 6,724
Highly
Overpress.
Mod.
Overpress.
3.4% 11.0%
1.50% 0.90%
Low Low/Med.
Dry Gas Assoc. Gas
63.8 4.7
129.5 16.2
38.8 1.3
n
00 7,350
60
54
0,500 10,500 - 13,8
00 11,880
ly
ess.
Highly
Overpress
% 3.4%
% 1.15%
w Low
Condensat
0.5
2 2.6
5 0.16
nd WestShaleBasin
(50,500mi
2
)
Duvernay
U. Devonian
Marine
World Shale Ga
and Resource
and Resources
4,000 1,5
72 6
31 2
0 8,200- 11,500 11,500
10,168 12,
Mod.
Overpress.
Mo
Overp
11.0% 11.
1.15% 1.3
Low/Med. Low/
Wet Gas Dry
19.6 22
39.2 16
7.8 4
DeepBasin
(26,200mi
2
)
NorthNordegg
L. Jurassic
Marine
6,900
82
37
800 5,200 - 8,200
6,724
s.
Mod.
Overpress.
11.0%
0.90%
Low/Med.
te Oil
5.5
19.0
0.76
n Deep
(26,20
North N
L. Jur
Mar
s and Shale Oil
es of Alberta
s of Alberta
500 12,500
69 70
29 25
- 14,800 3,300- 8,200 3,
464 6,100
od.
press.
Mod.
Overpress. O
.0% 3.2%
35% 0.90%
/Med. Low
Gas Assoc. Gas
2.1 4.6
6.6 29.0
4.1 2.9
NWAlberta
(33,000m
Muskw
U. Devon
Marine
4,000
72
31
8,200 - 11,500 3,3
10,168
Mod.
Overpress. O
11.0%
1.15%
Low/Med.
Condensate
0.4
0.8
0.03
Basin
0mi
2
)
Nordegg
rassic
rine
Resource Asses

SouthernAlb
(124,000
Colorado
Cretace
Marin
6,600 48,75
112 523
78 105
,900- 8,200 5,000- 1
4,602 6,90
Mod.
Overpress.
Underp
3.2% 2.4%
1.10% 0.60
Low Low/M
Wet Gas Dry G
34.2 20.9
112.7 285.
28.2 42.8
aArea
mi
2
)
wa
nian
e
12,500 6,6
70 1
25 7
300 - 8,200 3,900
6,100 4,6
Mod.
Overpress.
Mo
Overp
3.2% 3.
0.90% 1.1
Low Lo
Oil Cond
6.4 0
40.0 2
2.00 0
NWAlbertaArea
(33,000mi
2
)
Muskwa
U. Devonian
Marine
ssment

bertaBasin
0mi
2
)
Group
eous
ne
50
3
5
10,000
00
ress.
%
%
Med.
Gas
9
.6
8
600
12
78
- 8,200
602
od.
press.
2%
10%
ow
ensate
0.7
2.4
.12
a
I. Canada

June, 2013

1. B
1.1 G
T
portion o
constrain
erosiona
boundary
the Basa
I-17.
19
(T
west cros
Shale sh
I-18.
19

1.2 R
S
units. Th
a variety
limestone
upper an
prospect
in the we
permeab
In
on the ea
feet thick
organic-r
BASAL BAN
Geologic Se
The basal Ba
of the Alber
ned by the
l edge. Its e
y is the U.S.
al Banff/Exsh
The small d
ss-section (E
ows its strat
Reservoir P
Similar to the
he upper and
y of litholog
e. The prim
nd lower or
ive area of t
est) rather th
bility and solu
n the prospe
ast to about
k and the lo
rich shale pa
NFF AND E
etting
anff/Exshaw
rta Basin, F
Deformed
eastern bou
and Canad
haw Shale h
dry gas and
E-E) for the
tigraphic equ
Properties
e Bakken Sh
d lower units
ies including
ary reservoi
rganic-rich s
the basal Ba
han over-pre
ution gas.
ective area,
6,600 feet o
ower shale
ay averaging
I-
EXSHAW S
Shale asses
Figure I-16.
1
Belt and it
ndary is the
a border. W
has a prospe
wet gas are
e Lower Miss
uivalence to
(Prospecti
hale, the ba
s are domina
g calcareou
r is the more
shales units
anff/Exshaw
essured, and
the drilling d
on the west,
unit has a
g 15 feet.
EIA/ARI W
26
SHALE/ AL
ssed by this
9
The wes
ts northern
Alberta and
Within the lar
ective area o
eas were no
sissippian an
the Bakken
ive Area)
asal Banff/Ex
ated by orga
us sandstone
e porous an
s. However
Shale is no
d its middle
depth to the
averaging 4
gross thickn
World Shale Ga
LBERTA BA
s study is loc
stern bound
boundary
d Saskatche
rger 15,360-
of 10,500 mi
ot considere
nd Upper De
n Formation
xshaw Shale
anic-rich sha
e and siltst
d permeable
r, compared
ormally press
unit appears
top of the s
4,800 feet. T
ness of 10
s and Shale Oil
ASIN
cated in the
ary of this
is defined
ewan border
-mi
2
area of
i
2
for volatile
ed prospect
evonian Bas
in the Willist
e consists o
ale. The mid
tone, dolom
e middle uni
d to the Ba
sured (with
s to have co
shale ranges
The upper s
to 40 feet,
Resource Asses

southern Al
shale depo
by the sub
r and its sou
shale depos
e/black oil, F
ive.) The ea
sal Banff/Ex
ton Basin, F
of three rese
ddle unit con
itic siltstone
it, sourced b
akken Shale
higher press
onsiderably
s from 3,300
hale unit is 3
providing a
ssment
lberta
osit is
b-crop
thern
sition,
Figure
ast to
xshaw
Figure
ervoir
ntains
e and
by the
e, the
sures
lower
0 feet
3 to 5
a net,
I. Canada

June, 2013

Figure
Source:
Figure
Source:
e I-16. Outline
Modified from E
e I-17. Prospe
Modified from E
I-
e and Depth o
ERCB/AGS Open
ective Area for
ERCB/AGS Ope
EIA/ARI W
27
of Basal Banff
n File Report 20

r Basal Banff
en File Report 20
World Shale Ga
and ExshawS
12-06, October 2
and ExshawS
012-06, October
s and Shale Oil
Shale (Alberta
2012.
Shale (Alberta
2012.
Resource Asses

a)

a).

ssment
I. Canada

June, 2013

Sour

T
lean to n
middle u
progress
west. Ho
thin and
Shale ha
larger pla
1.3 R
T
depth an
mi
2
prosp
million ba
Figure I-18
rce: ERCB/AGS
The total orga
nearly 17%.
nit has muc
sive increase
owever, in th
thus has be
as a prospec
ay area.
Resource A
The prospect
nd thermal m
pective area
arrels of oil p
8. Stratigraph
S Open File Rep
anic content
The upper
h lower TOC
e from immat
he western a
een excluded
ctive area for
Assessmen
tive area for
maturity on th
a for oil, the
per mi
2
plus
I-
hic Cross Sect
port 2012-06, Oc
t (TOC) in th
and lower s
C (lean to 3%
ture (below
area where
d from the p
r oil of 10,50
nt
the Basal B
he east and
basal Banff
s moderate v
EIA/ARI W
28

tion E-E of th
ctober 2012.
he prospectiv
shale units h
%). The the
0.8% R
o
) in
the thermal
prospective
00 mi
2
(0.8%
Banff/Exshaw
by shale thi
f/Exshaw Sh
volumes of a
World Shale Ga
he Basal Banff
ve area ave
have high T
ermal matur
the east to d
maturity ex
area. As su
% to 1.0% R
o
w Shale in th
ickness on t
hale has a re
associated g
s and Shale Oil
f and Exshaw
rages 3.2%
OC values (
rity (R
o
) of th
dry gas (ove
xceeds 1.0%
uch, the bas
o
) located in
he Alberta B
the west. W
esource con
as.
Resource Asses

Shale
and ranges
(3% to 17%
he shale sho
er 1.3% R
o
) i
% R
o
, the sha
sal Banff/Ex
the center o
Basin is limite
Within the 10
ncentration o
ssment
s from
), the
ows a
in the
ale is
xshaw
of the
ed by
0,500-
of 2.5
I. Canada

June, 2013

T
of oil plu
reservoir
Basin, w
and 0.3 T
1.4 C
T
26,300 m
Shale.
19

prospect
1.5 R
C
southern
Murphy O
far, of th
over 100
C
plans to
area. W
#15-21 w
use of lo
this shale

The risked re
us 5 Tcf of
r properties
we estimate a
Tcf of assoc
Comparison
The ERCB/A
million barre
The ERC
ive area and
Recent Act
Considerable
Alberta sha
Oil, have dri
he 22 wells w
B/D; the rem
Crescent Poi
drill addition
While its early
well targeting
nger laterals
e play.
21

esource in-pl
associated
that appear
a risked, tec
iated shale g
n With Oth
GS resource
els and an u
B/AGS stud
d did not est
ivity
e leasing occ
ale play. Si
lled explorat
with reporte
mainder hav
int drilled tw
nal wells in t
y exploration
g the Exsha
s, enhanced

I-
lace for the o
natural gas
to be less f
chnically rec
gas.
her Resour
e study, disc
unrisked ga
dy did not
imate a riske
curred for th
nce then, a
tion wells to
ed productio
ve rates of le
wo exploratio
he area.
20
M
n for this sh
w Shale had
stimulation
EIA/ARI W
29
oil prospecti
s. Based o
favorable tha
coverable re
rce Assess
cussed abov
s in-place o
use depth,
ed recovera
he basal Ba
number of
test the res
n, only three
ess than 50 B
on wells into
Murphy Oil h
hale play has
d an IP of 3
and lower c
World Shale Ga
ive area is e
on recent w
an for the B
esource of 0
sments
ve, calculate
of 39.8 Tcf
net pay o
ble resource
nff/Exshaw
producers,
source poten
e wells hav
B/D.
o the Exsha
has assembl
s shown mix
350 BOPD.
costs to impr
s and Shale Oil
estimated at
well perform
Bakken Shal
0.3 billion ba
ed an unrisk
for the bas
r other crit
e.
Shale in 20
such as Cre
ntial in this s
ve current pr
aw Shale in
led a 150,00
xed results,
Murphy Oil
rove the eco
Resource Asses

10 billion ba
ance as we
e in the Wil
arrels of sha
ked oil in-pla
sal Banff/Ex
eria to defi
010, sparking
escent Poin
shale oil play
roducing rat
n early 2012
00 net acre
Murphys re
is examinin
onomic viabi
ssment
arrels
ell as
liston
ale oil
ace of
xshaw
ine a
g this
t and
y. So
tes of
2 with
lease
ecent
g the
lity of
I. Canada

June, 2013

2. D
2.1 G
T
contains
deposit i
southern
Platform.
Shale is
T
Muskwa
the Duve
Duvernay
organic-r
2.2 R
In
7,500 fee
area rang
area, 54
prospect
T
organica
maturity
the east
oil prosp
smaller d
.
DUVERNAY
Geologic Se
The East and
the organic
s defined by
boundary b
. Within thi
23,450 mi
2
,
The Upper a
Shale in no
ernay Shale
y Shale grad
rich shale in
Reservoir P
n the prospe
et in the eas
ges from 30
net feet in
ive area.
The total org
lly lean roc
(R
o
) of the s
to dry gas (1
pective area
dry gas pros
Y SHALE/E
etting
d West Shal
ally rich Duv
y the Deform
by the Leduc
is larger are
primarily in
and Middle
orthwest Alb
e is primari
des from a
the west, Fi
Properties
ective area,
st to 16,400
0 feet to ove
the wet gas
ganic carbon
k using the
shale increa
1.3% to 2%
in the east
pective area
I-
EAST AND
e Basin, cov
vernay Shale
med Belt, th
c Shelf, and
ea of shale
the central a
Devonian D
berta and no
ly an organ
carbonate-ri
igure I-21.
19

(Prospecti
the drilling d
feet in the w
r 200 feet, w
s/condensat
n (TOC) in t
e net to gro
ases as the
R
o
) in the w
t, a wet gas
a in the west
EIA/ARI W
30
WEST SHA
vering an ar
e, Figure I-1
he northern
d the eastern
deposition,
and western
Duvernay S
ortheast Briti
nic-rich lime
ich mudston

ive Area)
depth to the
west. The g
with an aver
te prospectiv
the prospec
ss ratio, the
shales deep
west. As suc
s/condensate
t.
World Shale Ga
ALE BASIN
rea of over 5
9.
19
The we
boundary by
n boundary
the prospe
portions of
Shale is stra
ish Columbi
estone. In
ne in the eas
top of the D
gross shale
rage of 41 n
ve area, an
ctive area re
e average T
pen, from im
ch, the Duve
e prospectiv
s and Shale Oil
N
50,000 mi
2
in
estern bound
y the Peace
by the Gros
ective area f
this basin, F
atigraphic e
a. In the E
the West S
st to an incr
Duvernay Sh
thickness in
net feet in th
d 63 net fee
eaches 11%
TOC is 3.4%
mmature (be
ernay Shale
ve area in th
Resource Asses

n central Alb
dary of this s
e River Arch
smont Carbo
for the Duve
Figure I-20.
19
equivalent to
East Shale B
Shale Basin
reasingly po
hale ranges
n the prospe
he oil prospe
et in the dry
%. Excluding
%. The the
low 0.8% R
has an exte
he center, a
ssment
berta,
shale
h, the
onate
ernay
9

o the
Basin,
n, the
orous,
from
ective
ective
y gas
g the
ermal
o) on
nsive
and a
I. Canada

June, 2013

Source
Source:
Figure I-19.
e: Modified from
Figure I-20.
Modified from E
I-
Outline and
m ERCB/AGS Op
Prospective
ERCB/AGS Open
EIA/ARI W
31
Depth of Duve
pen File Report 2
Area for Duve
n File Report 20
World Shale Ga
ernay Shale (A
2012-06, Octobe
ernay Shale (A
12-06, October 2
s and Shale Oil
Alberta)
er 2012.
Alberta)
2012.
Resource Asses

ssment
I. Canada

June, 2013

2.3 R
T
23,250 m
for oil, th
associate
Shale ha
per mi
2
.
concentr
T
estimated
favorable
we estim
oil/conde

Figur
Source: E
Resources
The prospect
mi
2
, limited o
he Duvernay
ed gas. W
as resource
Within the
ration of 64 B
The risked r
d at 67 billi
e reservoir p
mate risked
ensate and 1
re I-21. Stratig
ERCB/AGS Open
Assessme
tive area of
on the east b
y Shale has
Within the 7,
concentratio
2,900-mi
2
d
Bcf/mi
2
.
resource in
on barrels o
properties an
d, technica
33 Tcf of dr

I-
graphic Cross
n File Report 20
ent
the Duvern
by low therm
s a resource
350-mi
2
we
ons of 0.5 m
dry gas pros
-place in t
of shale oil/
nd analog in
lly recovera
ry and wet sh
EIA/ARI W
32
s Section B-B
12-06, October
ay Shale in
mal maturity.
e concentrat
et gas/conde
million barrel
spective are
he prospec
/condensate
formation fro
able resour
hale gas.
World Shale Ga
of the Duvern
2012.
the East an
Within the
tion of 7.1
ensate pros
s of conden
ea, the Duve
ctive areas
e and 483 T
om U.S. sha
rces of 4.
s and Shale Oil
nay Formation
nd West Sh
13,000-mi
2

million barre
spective are
nsate and 4
ernay Shale
of the Duv
Tcf of shale
ales such as
0 billion b
Resource Asses

n

ale Basin co
prospective
els of oi/mi
2
a, the Duve
47 Bcf of we
e has a reso
vernay Sha
gas. Base
s the Eagle
barrels of s
ssment
overs
area
2
plus
ernay
et gas
ource
ale is
ed on
Ford,
shale
I. Canada

June, 2013

2.4 R
T
billion sp
by Canad
the domi
each hold
M
Hz wells
operators
vertical)

In
are most
and Verm

Recent Act
The Duverna
pent (in 2010
dian Natura
nant land po
d over 100 m
Much of the c
plus one v
s. Since the
have been d
EnCana r
barrels pe
Celtics be
condensa
n the Pembin
t active. In t
million are dr
ivity
ay Shale is
0 and 2011)
l Resources
ositions. Tw
mi
2
of leases
current activ
vertical well
e first Celtic
drilled or are
reports that i
er day of con
est Duverna
ate.
na area, En
he Edson A
rilling Duvern

I-
the current
in auctions
s (600+ mi
2
),
welve additio
s.
vity is in the
and Celtic w
well in the D
being drilled
its Duvernay
ndensate.
ay well tested
Cana with fo
rea, where a
nay Shale e
EIA/ARI W
33
hot shale
for leases.
, EnCana (5
onal compan
Kaybob we
with 7 Hz a
Duvernay S
d (mid-2012
y well tested
d at 5.8 Mcfd
our Hz wells
active leasin
xplorations w
World Shale Ga
e play in We
Athabasca
580+ mi
2
) an
nies, ranging
et gas/conde
and 5 vertica
hale in 2010
2).
at 2.3 MMc
d of wet gas
s and Conoc
ng is still und
wells.
s and Shale Oil
estern Cana
Oil (with 1,0
nd Talisman
g from Chev
ensate area.
al wells are
0, a total of
cfd of wet ga
s plus 638 ba
coPhillips wi
derway, Ang
Resource Asses

ada with ove
000 mi
2
) follo
(560+ mi
2
)
vron to Ener
. EnCana w
e the most a
45 wells (Hz
as and 1,632
arrels per da
th three Hz
le Energy, C
ssment
er $2
owed
have
rplus,
with 8
active
z and
2
ay of
wells
CNRL
I. Canada

June, 2013

3. N
3.1 G
T
Figure I-2
Formatio
carbonat
area, wh
Nordegg
carbonat
served a
of the De

NORDEGG
Geologic Se
The Nordegg
22.
19
The L
on, shown b
te-rich depo
here the sh
Shale is an
tes as well a
s a prolific s
eep Basin.
Source: M
SHALE/DE
etting.
g Shale asse
ower Jurass
by the cros
sition on the
hale interval
n organic-ric
as siltstones
source rock f
Figure I-22.
Modified from ER
I-
EEP BASIN
essed in this
sic Nordegg
s-section o
e south into
l is sometim
ch mudstone
s and some
for shallowe
Outline and
RCB/AGS Open
EIA/ARI W
34
N.
s study is lo
Shale Mem
n Figure I-2
o a fine-grai
mes referred
e (shale) wh
sandstone,
r convention
Depth of Nord
File Report 2012
World Shale Ga
ocated within
mber is locat
23.
19
The
ned rock on
d to as the
ich also inc
Figure 1-24
nal hydrocar
degg Shale (A
2-06, October 2
s and Shale Oil
n the Deep
ted at the ba
Nordegg tra
n the north.
e Gordonda
ludes cherty
4.
19
The No
rbon reservo
Alberta).
012.
Resource Asses

Basin of Alb
ase of the F
ansitions fro
In the nor
ale Member
y and phosp
ordegg Shale
oirs in this po

ssment
berta,
Fernie
om a
rthern
r, the
phoric
e has
ortion
I. Canada

June, 2013

Source:
Fig
Source: ERC
Figure I-23.
Modified from E
ure I-24. Stra
B/AGS Open Fil
I-
. Prospective
ERCB/AGS Open
atigraphic Cros
le Report 2012-0
EIA/ARI W
35
e Area for Nord
n File Report 20

ss Section F-F
06, October 201
World Shale Ga
degg Shale (A
12-06, October 2
F of the Nord
2.
s and Shale Oil
Alberta)
2012.
egg Member
Resource Asses

ssment
I. Canada

June, 2013

3.2 R
In
from 3,3
prospect
gas/cond
The shal
high net
T
82 samp
line with
(R
o
of 0.8
and a dr
suggests
3.3 R
W
concentr
gas and
million ba
area, the
C
estimated
reservoir
recovera
Nordegg

Reservoir P
n the Nordeg
300 feet in
ive area of
densate pros
le thickness
to gross rati
The total org
les from 16
increasing d
8% to 1.0%)
ry gas area
s that the No
Resource A
Within the 6
ration of 5.6
condensate
arrels of oil
e Nordegg S
Combined, th
d at 20 billio
r properties
ble resource
Shale.
Properties
gg Shale pro
the north-e
12,400 mi
2
spective are
in the overa
o of about 0
anic carbon
wells. The
depth. The
) on the nort
(R
o
>1.3) o
ordegg Shale
Assessmen
6,900-mi
2
o
million barre
prospective
and 20 Bcf
hale has a r
he risked res
on barrels of
and analog
es of 0.8 bil

I-
(Prospecti
ospective ar
east to abo
2
, the volatil
ea is 4,000 m
all prospect
0.8.
(TOC) in th
thermal mat
overall Nor
h, a wet gas
on the south
e is over-pre
nt.
oil prospect
els of oil per
e area, the N
f of wet gas
esource con
source in-pla
f oil/condens
information
lion barrels
EIA/ARI W
36
ive Area).
rea, the drill
out 15,000
e/black oil
mi
2
, and the
ive area ran
he prospecti
turity (R
o
) of
rdegg Shale
s/condensate
h. While th
essured.
tive area,
r mi
2
plus as
Nordegg Sha
per mi
2
. W
ncentration o
ace for the p
sate and 72
n from U.S.
of oil/conde
World Shale Ga

ing depth to
feet in the
prospective
e dry gas pr
nges from 50
ive area is h
f the shale in
prospective
e area in the
he data are
the Nordeg
ssociated ga
ale has a re
Within the 1,
of 22 Bcf/mi
2
prospective a
Tcf of natur
shales, we
ensate and
s and Shale Oil
o the top of
south. W
area is 6,9
rospective a
0 feet to 15
high, at ove
ncreases to
e area has a
e center (R
o

sparse, ind
gg Shale h
as. Within t
esource conc
500-mi
2
dry
2
.
area of the N
ral gas. Bas
estimate ri
13 Tcf of na
Resource Asses

the shale ra
Within the ov
900 mi
2
, the
rea is 1,500
0 feet and h
r 11%, base
the southwe
an oil prone
of 1.0% to 1
ustry inform
has a reso
he 4,000-mi
centrations o
y gas prospe
Nordegg Sh
sed on mod
sked, techn
atural gas fo
ssment
anges
verall
e wet
0 mi
2
.
has a
ed on
est in
area
1.3%)
mation
ource
i
2
wet
of 0.4
ective
ale is
derate
nically
or the
I. Canada

June, 2013

3.4 C
T
place of
Shale.
19

ERCB/AG
we judge
moderate
volatile/b
3.5 R
O
Recently
test wel
moderate
large lan
active in
produced
well that

Comparison
The ERCB/A
40,645 milli
The in-plac
GS study du
e this resou
ely over-pres
black oil pros
Recent Act
Only a mode
y, Anglo Can
l (Sturgeon
ely heavy, 2
d position, w
the Nordegg
d 500 BOED
had a 30-da
n with Oth
AGS resourc
on barrels a
ce resource
ue to the foll
rce area to
ssured; and
spective reso
ivity
st number o
nadian drille
n Lake 05-
25
o
API oil.
with 272 mi
2
g oil fairway
D, with 80%
ay initial prod

I-
er Resourc
ce study, dis
and an unris
e values in
owing: (1) g
be only 50
(3) we have
ource area t
of exploration
ed a horizon
-10-68-22W5
Tallgrass E
2
in the Nord
has comple
oil (42
o
API
duction rate
EIA/ARI W
37
ce Assess
scussed abo
sked mean g
our study a
iven the still
0% de-risked
e a significan
han used in
n wells have
tal test well
5) which p
Energy has
degg Shale.
2
eted one Nor
), during its
of 78 barrels
World Shale Ga
sments
ove, calculat
gas in-place
are different
l emerging n
d; (2) we fin
ntly lower as
the ERCB/A
e been comp
(Shane 07-
produced n
since acqui
22
The litera
rdegg Hz we
initial flow t
s of 32
o
API
s and Shale Oil
ted an unris
e of 164 Tcf
t than those
nature of the
nd the Nord
ssociated ga
AGS study.
pleted in the
-11-77-03W
non-commerc
ired Anglo C
ature reports
ell with a mu
test and com
oil.
23

Resource Asses

sked mean o
f for the Nor
e reported in
e Nordegg S
egg Shale t
as-oil ratio fo
e Nordegg S
W6) and a ve
cial volume
Canadian an
s that a com
ulti-stage frac
mpleted a se
ssment
oil in-
rdegg
n the
Shale,
to be
or the
Shale.
ertical
es of
nd its
mpany
c that
econd
I. Canada

June, 2013

4. M
4.1 G
T
Duvernay
northeas
Alberta a
north, the
Within th
primarily
T
Beaverhi
limestone
MUSKWA S
Geologic Se
The Muskwa
y Shale in c
st British Co
are the Albe
e Peace Riv
his larger de
in the weste
The Muskwa
ill Lake Fo
e deposited
Source:
SHALE/NO
etting
Shale depo
central Alber
lumbia, Figu
erta/British C
ver Arch on
epositional a
ern portion o
a Shale is o
rmation, Fig
in a deep-w
Figure I-25.
ERCB/AGS Ope
I-
RTHWEST
osition in no
rta and the e
ure I-25.
19
T
Columbia bo
the south, a
area, the Mu
of the larger
overlain by
gure I-27.
19
water marine
. Outline and
en File Report 2
EIA/ARI W
38
T ALBERTA
orthwest Alb
eastern cont
The bounda
order on the
and the Gro
uskwa Shale
Muskwa Sh
the Ft. Sim
The Musk
setting.
Depth of Mus
012-06, Octobe
World Shale Ga
A
berta is the
tinuation of
aries of the
e west, the
osmont Carb
e has a pros
ale depositio
mpson Shal
kwa Shale
skwa Shale (A
r 2012.
s and Shale Oil
northern co
Muskwa/Ott
Muskwa Sh
Alberta/NW
bonate Platf
spective are
onal area, F
le and is d
is primarily
lberta).
Resource Asses

ontinuation o
ter Park Sha
hale in north
WT border o
form on the
ea of 19,100
Figure I-26.
19
deposited on
an organic

ssment
of the
ale in
hwest
n the
east.
0 mi
2
,
n the
c-rich
I. Canada

June, 2013

Source:
Figu
Sou
Figure I-26.
ERCB/AGS Ope
ure I-27. Strati
rce: ERCB/AGS
I-
Prospective
en File Report 2
igraphic Cross
S Open File Rep
EIA/ARI W
39
e Area for Mus
012-06, Octobe
s Section C-C
port 2012-06, Oc
World Shale Ga
skwa Shale (A
r 2012.
C of the Muskw
ctober 2012.
s and Shale Oil
Alberta).
wa Formation
Resource Asses

n

ssment
I. Canada

June, 2013

4.2 R
In
3,300 fee
from 33 f
T
TOC pay
of 47 TO
maturity
thermally
thermal m
a wet gas
4.3 R
T
approxim
a resourc
gas/cond
of 1 millio
T
Tcf of sh
River and
of 2.1 bil
4.4 C
T
place of
Shale stu
reported
Muskwa
the Mus
associate
Reservoir P
n the prospe
et in the no
feet to nearly
The total org
y excluded b
OC measure
(R
o
) of the s
y mature for
maturity, the
s/condensat
Resources
The overall o
mately 19,10
ce concentra
densate pros
on barrels of
The risked re
hale gas. G
d Cordova E
lion barrels o
Comparison
The ERCB/A
115,903 mil
udy area in
in the ERC
Shale in NW
kwa Shale
ed gas-oil ra
Properties
ective area,
rtheast to 8
y 200 feet, w
ganic conten
by the net to
ments from
shale increas
r wet gas a
e Muskwa S
te area on th
Assessme
oil and gas
0 mi
2
. Withi
ation of 6 m
spective are
f oil/condens
esource in-p
Given favora
Embayment
of shale oil/c
n with Oth
AGS resourc
llion barrels
NW Alberta
CB/AGS stud
W Alberta, w
in this area
atio for the sh
I-4
(Prospecti
the drilling
,200 feet in
with a high n
nt (TOC) ran
o gross pay
5 wells prov
ses with dep
nd condens
hale has an
he northwest
ent
prospective
in the oil pro
million barrels
a of 6,600 m
sate per mi
2
place is estim
able reservo
shales, we
condensate
er Resourc
ce study, dis
and an unri
a.
19
The in-
dy due to th
we judge this
a to be mod
hale.
EIA/ARI W
40
ive Area)
depth to the
the southw
et to gross p
nges from le
ratio. Exclu
vided an ave
pth, ranging f
sate (R
o
of 1
oil-prone ar
t.
area of the
ospective are
s of oil per m
mi
2
, the Mus
and 34 Bcf
mate at 42 b
ir properties
estimate a
and 31 Tcf o
ce Assess
scussed abo
isked mean
-place value
e following:
resource ar
derately ove
World Shale Ga
e top of the
west. The g
pay ratio.
ess than 1 t
uding the lea
erage TOC
from immatu
1.0% to 1.2
rea with ass
e Muskwa S
ea of 12,500
mi
2
plus ass
kwa Shale h
of wet gas p
billion barrel
s and analo
risked, tech
of shale gas
sments
ove, calculat
gas in-plac
es in our stu
(1) given th
rea to be on
er-pressured
s and Shale Oil
Muskwa Sh
ross shale t
to over 10%
an TOC seg
value of 3.2
ure (R
o
< 0.8
2%) on the w
sociated gas
Shale in nort
0 mi
2
, the Mu
sociated gas
has a resour
per mi
2
.
ls of oil/cond
g informatio
hnically reco
s.
ted an unris
e of 413 Tc
udy are diff
he limited ex
ly 50% de-r
d; and (3) w
Resource Asses

hale ranges
thickness ra
%, with the le
gments, a sa
2%. The the
8%) in the ea
west. Base
s on the eas
thwest Albe
uskwa Shale
s. Within the
rce concentr
densate and
on from the
verable reso
sked mean o
f for the Mu
ferent than t
xploration fo
isked; (2) we
we have a
ssment
from
anges
eaner
ample
ermal
ast to
ed on
st and
erta is
e has
e wet
ration
d 142
Horn
ource
oil in-
skwa
those
or the
e find
lower
I. Canada

June, 2013

4.5 R
H
concentr
Shale we
refining it
the deve
A
Muskwa
over-pres

Recent Act
Husky Oil Ca
rated 400,00
ells in 2012,
ts well comp
lopment of t
A smaller Ca
Shale in ea
ssured and f
ivity
anada, curre
00-net acre
, completing
pletion pract
his shale oil
nadian E&P
arly 2009 (W
flowed 56
o
A

I-4
ently the mos
land positio
g 4 wells, wi
tices. Husky
play
17
.
P company, M
Well #06-34-
API condens
EIA/ARI W
41
st active exp
on in the Ra
ith the goal
y is currently
Mooncor Oil
-94-12W6).
sate plus wet
World Shale Ga
plorer in Alb
ainbow area
of de-riskin
y looking for
and Gas, d
The Muskw
t gas.
24

s and Shale Oil
bertas Musk
a. Husky dr
g its large l
r a JV partne
drilled a pilot
wa zone wa
Resource Asses

kwa Shale, h
rilled 14 Mu
and position
er to help fin
t test well int
as reported
ssment
has a
skwa
n and
nance
to the
to be
I. Canada

June, 2013

5. C
5.1 G
T
southeas
Rockies
and loss
encompa
sequence
Colorado
Group, F
48,750-m
5.2 R
In
Scale sh
west. Th
the top o
1,000 fee
gross rat
appears
carbon (T
maturity
appears
to be low
5.3 R
T
southwes
concentr
estimated
favorable
risked tec
COLORADO
Geologic Se
The Colorado
stern Saskat
Overthrust.
of net pay.
asses a thic
e are two sh
o Group an
Figure I-28
mi
2
prospect
Reservoir P
n the prospe
ales ranges
he Fish Scal
of the 2WS to
et in the wes
tio of 20%,
to be under
TOC) conten
of the shal
to have pro
w to moderat
Resource A
The 48,750-
stern Albert
ration of 21
d at 286 T
e reservoir p
chnically rec
O GROUP/
etting
o Group Sha
tchewan. T
The northe
The southe
k, Cretaceou
hale formatio
d the Seco
.
25
We selec
tive area, Fig
Properties
ective area,
s from 5,000
e Shale is g
o the base o
st, with an a
we estimate
r-pressured,
nt of the sha
e is low (R
ovided adequ
e in clay (31
Assessmen
-mi
2
prospe
ta. Within
Bcf/mi
2
. Th
Tcf. Base
properties su
coverable sh
I-4
SOUTHER
ale covers a
The western
ern and east
ern boundar
us-age sequ
ons of intere
ond White S
cted the 5,0
gure I-29.
(Prospecti
the depth t
feet near M
enerally abo
of the Fish S
average gros
e a net pay
with a pres
ale ranges fr
o
of 0.5% t
uate volume
1%) and thus
nt
ctive area
this prosp
he risked sh
d on mode
uch as low p
hale gas reso
EIA/ARI W
42
RN ALBERT
massive, 1
boundary o
tern bounda
ry is the U.S
uence of san
est - - the F
Speckled Sh
000 to 10,00
ive Area)
to the Secon
Medicine Hat
out 200 feet
Scales Shale
ss pay of 52
y of 105 fee
ssure gradie
rom 2% to 3
o 0.6%). H
es of gas ge
s favorable f
of the Co
ective area
hale gas in-
erately favor
ressure and
ource of 43 T
World Shale Ga
TA
24,000-mi
2
a
of the Color
aries are def
S./Canada b
nds, mudsto
Fish Scale S
hale Format
00 foot dep
nd White Sp
t (on the eas
deeper than
e ranges from
23 feet. Ass
et. Much of
ent of about
3%. In the p
However, th
eneration. T
for hydraulic
lorado Gro
a, the shale
-place for th
rable shale
d an uncertai
Tcf for the C
s and Shale Oil
area in sout
rado Group
fined by sha
border. The
ones and sh
hale Format
tion in the
pth contours
peckled (2W
st) to over 1
n the 2WS.
m 300 feet in
suming a co
f the Colora
0.3 psi/ft. T
prospective a
e presence
The rock min
c fracturing.
up Shale c
e has a re
he Colorado
mineralogy
in gas charg
Colorado Gro
Resource Asses

thern Alberta
is the Cana
allow shale d
Colorado G
ales. Within
tion in the L
Upper Colo
s for defining
WS) and the
10,000 feet i
The interval
n the east to
onservative n
ado Group S
The total org
area, the the
of biogenic
neralogy app

covers muc
elatively low
o Group Sha
y, but other
ge, we estim
oup Shale.
ssment
a and
adian
depth
Group
n this
Lower
orado
g the
e Fish
in the
from
o over
net to
Shale
ganic
ermal
c gas
pears
ch of
w gas
ale is
r less
mate a
I

J

S
. Canada

June, 2013
Figure
Source: Leckie, D.A.,

Period
C
r
e
t
a
c
e
o
u
s
e I-28. Colorado G
, 1994.
d Epoch
U
p
p
e
r
L
o
w
e
r
Ce
Pla
Be
Ri
Man
Gr
L
o
w
e
r
Fish
Seco
W
C
o
l
o
r
a
d
o

G
r
o
u
p
U
p
p
e
r
Group Stratigraphi
ntral
ains
Sou
Pla
elly
iver
Belly
River
M
C
o
l
o
r
a
d
o

Viking
B
Joli Fou
nville
oup
Man
Gr

G
r
o
u
p
Scales Shale
ond WhiteSpeckled S
WhiteSpeckled Shale
Basal
Colorado

G
r
o
u
p
c Column
uthern
ains
MedicineHat
Barons Ss
Joli Fou
BowIsland
nnville
roup
hale
JAF02061.CDR
I-43
Source: AR
EIA/ARI W

Figure I-29. C
I, 2013.
World Shale Gas and
Colorado Group, P
Prospective Area
e Assessment
I. Canada

June, 2013

5.4 C
In
place and
5.5 R
T
primarily

Comparison
n mid-2010,
d 4 to 14 Tc
Recent Act
To date, the
in the shallo
n with Oth
the Canadia
f of marketa
ivity
Colorado G
ower eastern

I-4
er Resourc
an Society fo
able (recover
roup Shale
n portion of t
EIA/ARI W
44
ce Assess
or Unconven
rable) shale
has seen on
the play area
World Shale Ga
sments
ntional Gas
gas for the
nly limited e
a.
s and Shale Oil
estimated 1
Colorado Sh
exploration a
Resource Asses

100 Tcf of ga
hale.
4

and developm
ssment
as in-
ment,
I. Canada

June, 2013

6. M
T
Resource
massive
W
assessm
tight and
Resource
Montney
cut-off va
gas reso
inclusion
Figur

MONTNEY A
The Deep Ba
e plays. Th
volumes of
We have exc
ment because
convention
e plays is lo
Formation
alues for TO
ources) is 2
in net, orga
re I-30. Histog
Source: ERC
AND DOIG
asin of Cana
hese multi-d
dry, wet and
cluded the Al
e the reservo
al sands an
w, averaging
wells have
OC in our stu
%, with indi
anic-rich pay
gramof Total O
B/AGS Open Fil

I-4
G RESOUR
ada also co
depositional
d associated
lberta portio
oirs in the A
d because t
g about 0.8%
TOC values
udy (for cons
ividual reser
y.
Organic Carbo
le Report 2012-0
EIA/ARI W
45
CE PLAYS
ntains the A
Triassic-ag
d gas as well
n of the Mon
lberta portio
the organic-
%. Essentia
s less than 1
sistency with
rvoir rock in
on (TOC) of 17
06, October 201
World Shale Ga
S (ALBERT
Alberta portio
ge hydrocar
l as oil/cond
ntney and D
on of the bas
-content (TO
ally all of the
1.5%, Figure
h the USGS
tervals havi
70 Samples fro
2.
s and Shale Oil
TA)
on of the M
rbon accum
ensate.
Doig Resourc
sin are gene
OC) of the M
e 170 sampl
e I-30.
19
Th
S evaluations
ng to have
omthe Montn
Resource Asses

ontney and
mulations co
ce Plays from
rally classifie
Montney and
es taken fro
he basin ave
s of shale oi
at least 1.5%
ney Formation
ssment
Doig
ontain
m our
ed as
Doig
om 43
erage
il and
% for
n.
I. Canada

June, 2013

SASKA
1. W
1.1 G
T
southern
Bakken S
shale oi
resource
risked, te
Ta

W
8,700 mi
Bakken
Saskatch
interval c

ATCHEW
WILLISTON
Geologic Se
The Williston
Saskatchew
Shale play,
l in-place, w
e. The basin
echnically re
able I-5. Shale
Within the lar
2
where the
Shale drilli
hewan and
contour and
WAN/MAN
N BASIN/BA
etting
n Basin of C
wan and so
Figure I-31.
with 1.6 bil
n also conta
coverable sh
e Gas and Oil
rger Bakken
shale appe
ing has oc
Manitoba is
on the south

I-4
ITOBA
AKKEN SH
Canada exte
uthwestern
.
26
We estim
llion barrels
ains 16 Tcf
hale gas res
Reservoir Pro
Shale depo
ars to have
ccurred. T
s bounded o
h by the U.S
EIA/ARI W
46
HALE
ends northw
Manitoba an
mate this ba
s as the ris
of associate
source, Table
operties and R
ositional area
more favora
The prospe
on the nort
./Canada bo
World Shale Ga
ward from th
nd contains
asin contain
sked, techn
ed shale gas
e I-5.
Resources of
a, we have d
able reservo
ective area
h, east and
order, Figure
s and Shale Oil
he U.S./Can
the Canadi
s 22 billion
nically recov
s in-place, w
Saskatchewa
defined a pro
oir properties
for the B
d west by th
e I-32.
27

Resource Asses

nada border
an portion o
barrels of r
verable sha
with 2 Tcf a
n/Manitoba
ospective ar
s and where
akken Sha
he 30-foot s
ssment
r into
of the
risked
le oil
as the

rea of
e past
le in
shale
I. Canada

June, 2013

Figure I-31. O
Source: Mo
Figure I-32. P
Source: AA
Outline and De
odified from Sask
Prospective Ar
APG Flannery &
I-4
epth of Willisto
katchewan Minis
rea for Willisto
& Kraus, 2006.
EIA/ARI W
47
on Basin Bakk
stry of Energy Re

on Basin Bakk
World Shale Ga
ken Shale (Sa
esources, 2010.
ken Shale (Sas
s and Shale Oil
askatchewan/M
.
skatchewan/M
Resource Asses

Manitoba)

Manitoba)

ssment
I. Canada

June, 2013

F
for oil to
the oil in
more ma
considera
thermally
1.2 R
S
Bakken S
organic-r
sandston
is the m
shales. T
or this shale
below our g
n-place in th
ature Bakke
able portion
y less mature
Reservoir P
Similar to th
Shale consi
rich shale.
ne and siltsto
ore porous
The Bakken
e play, we h
eneral cut-o
is part of th
en Shale in
n of the suc
e area of the
Properties
e basal Ba
sts of three
The middl
one, dolomit
and permea
Shale is ov
Figure I-33
Source
I-4
have expand
off of 0.7% th
e Bakken S
the center
ccessful Bak
e northern W
(Prospecti
anff/Exshaw
reservoir u
le unit cont
tic siltstone
able middle
er-pressured
3. Bakken Sh
: Saskatchewan
EIA/ARI W
48
ded our crite
hermal matu
Shale play is
of the Will
kken Shale
Williston Basi
ive Area).
Shale, the
nits. The u
tains a vari
and limesto
unit, source
d in much of
ale Stratigrap
Ministry of Ene
World Shale Ga
eria for estab
urity (Ro) for
s oil that ha
iston Basin
well drilling
in.

Late Devo
upper and lo
iety of litho
one, Figure I
ed by the u
f its prospec
phy (Saskatche
rgy Resources,
s and Shale Oil
blishing the
r two reason
s migrated f
to the sou
in Canada
onian to Ea
ower units a
ologies inclu
I-33.
26
The
upper and lo
ctive area.
ewan)
2010.
Resource Asses

prospective
ns. First, mu
from the de
uth.
28
Secon
has been in
rly Mississip
are dominate
uding calcar
primary rese
ower organic
ssment
area
uch of
eeper,
nd, a
n this
ppian
ed by
reous
ervoir
c-rich
I. Canada

June, 2013

T
5,500 fee
area. Th
with an
organic c
lower un
1.3 R
W
a resour
gas.
T
plus 16
propertie
2 Tcf of a
1.4 R
T
and abou
active in

The drilling d
et on the nor
he Bakken S
average ne
content (TO
its. The Bak
Resource A
Within the 8,7
ce concentr
The risked oi
Tcf of ass
es, we estim
associated g
Recent Act
The Bakken S
ut 75,000 b
the play hav
depth to the
rth to about
Shale gross
t pay of ab
OC) in the p
kken Shale i
Assessmen
700-mi
2
pros
ration of 4 m
l resource in
ociated nat
ate risked, t
gas.
ivity
Shale in Ca
arrels per d
ve publically

I-4
top of the
8,800 feet o
interval ran
out 20 feet
prospective
s prospectiv
nt
spective are
million barre
n-place for th
ural gas.
technically re
nada is an a
day of oil pr
y reported 22
EIA/ARI W
49
Bakken Sha
on the south
ges from 30
, with favora
area averag
ve for oil plus
ea for oil and
els/mi
2
for oi
he prospecti
Based on r
ecoverable r
active shale
oduction, as
25 million ba
World Shale Ga
ale in the pr
, averaging
0 to over 60
rable porosit
ges 11% in
s associated
d associated
il plus mode
ive area is e
recent well
resources o
oil play with
s of mid-201
arrels of prov
s and Shale Oil
rospective a
6,600 feet in
feet in the
ty of about
the organic
d gas.
d gas, the B
erate volum
estimated at
performanc
f 1.6 billion
h over 2,000
11. The va
ved and prob
Resource Asses

area ranges
n the prospe
prospective
10%. The
c-rich upper
akken Shale
es of assoc
22 billion ba
ce and rese
barrels of oi
0 producing
arious compa
bable reserv
ssment
from
ective
area
total
r and
e has
ciated
arrels
ervoir
il and
wells
anies
ves.
29

I. Canada

June, 2013

EASTE
C
Lawrence
Windsor
Basin of
are in an
offered fo
Lorraine
T
Tcf of ris
Table I-6

ERN CAN
Canada has
e Lowlands
Basin of no
the Maritime
n early explo
or the Utica
and Frederi
The two asse
ked gas in-p
6.
Table I-
B
a
s
i
c
D
a
t
a
P
h
y
s
i
c
a
l
E
x
t
e
n
t
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
R
e
s
o
u
r
c
e
NADA
four potenti
of the App
orthern Nova
es Basin in N
oration stage
a and Horton
ck Brook sh
essed Easte
place, with 3
-6. Shale Gas

Basin
Shale
Geo
Depositio
Prospective A
Thickness (ft
Depth (ft)
Reservoir Pr
Average TOC
Thermal Mat
Clay Content
Gas Phase
GIP Concent
Risked GIP (
Risked Recov
I-
al shale gas
palachian Fo
a Scotia, an
New Brunsw
e. Therefore
n Bluff shale
ales.
rn Canada s
34 Tcf as the
s Reservoir Pr
Organically
Net
Interval
Average
n/Gross Area
e Formation
ologic Age
onal Environme
Area (mi
2
)
t)
ressure
C (wt. %)
turity (% Ro)
t
tration (Bcf/mi
2
Tcf)
verable (Tcf)
EIA/ARI W
50
s plays - - t
old Belt of
nd the Frede
wick. These
e, only prelim
es. Insuffici
shale gas ba
e risked, tec
operties and R

Appalac
(3
O
y Rich
4,00
Mod.
D
ent
2
)
World Shale Ga
the Utica an
Quebec, th
erick Brook
shale oil an
minary shale
ient informat
asins assess
hnically reco
Resources of
chian Fold Belt
3,500mi
2
)
Utica
Ordovician
Marine
2,900
1,000
400
00 - 11,000
8,000
. Overpress.
2.0%
2.00%
Low
Dry Gas
133.9
155.3
31.1
s and Shale Oil
nd Lorraine
e Horton B
Shale in th
nd gas forma
e resource a
tion exists f
sed by this s
overable sha
Eastern Cana
t Windsor
(650mi
2
)
Horton Blu
Mississippi
Marine
520
500
300
3,000 - 5,00
4,000
Normal
5.0%
2.00%
Unknown
Dry Gas
81.7
17.0
3.4
Resource Asses

shales in th
luff Shale in
he Moncton
ations and b
assessment
for assessin
study contain
ale gas reso
ada

r
)
uff
ian
00
n
ssment
he St.
n the
Sub-
asins
ts are
g the
n 172
ource,
I. Canada

June, 2013

1. A
1.1 In
T
Belt in Q
above th
thicker b
Brook an
Quebec.

S

APPALACH
ntroduction
The Utica Sh
Quebec, Can
he conventio
ut lower TO
nd Logans L

F
Source: ARI, 20
HIAN FOLD
n and Geo
hale is locat
nada, Figure
onal Trenton
C Lorraine S
Line - - form
Figure I-34. U
13.

I-
D BELT (QU
logic Setti
ted within th
e I-34. The
n-Black Rive
Shale overlie
m structural b
Utica Shale Ou
EIA/ARI W
51
UEBEC)/UT
ng
he St. Lawre
e Utica is a
er Formation
es the Utica
boundaries a
utline and Pros
World Shale Ga
TICA SHAL
ence Lowlan
an Upper Or
n, Figure I-3
. Three ma
and partition
spective Area
s and Shale Oil
LE
nds of the A
rdovician-ag
35. A seco
ajor faults - -
ns for the Ut
(Quebec)
Resource Asses

Appalachian
ge shale, loc
nd, less def
Yamaska, T
tica Shale p
ssment
Fold
cated
fined,
Tracy
lay in
I. Canada

June, 2013

1.2 R
T
exploratio
ranges f
boundari
1,000 fee
The tota
concentr
from an
Data on q

Reservoir P
The extensiv
on and com
from 3,000 t
es and dee
et. With a ne
al organic c
rated in the
R
o
of 1.1% t
quartz and c
Figur
Properties
ve faulting
mpletion risk
to over 11,0
per along th
et to gross r
content (TO
Upper Utica
to 4% and a
clay contents
Source: L
I-
re I-35. Utica S
(Prospecti
and thrust
k. The dep
000 feet, sh
he eastern b
ratio of 40%
OC) ranges
a Shale. Th
averages 2%
s are not pu
. SmithAAPG, AAPGBulleti
EIA/ARI W
52
Shale Stratigra
ive Area)
ting in the
th to the to
hallower alo
boundary. T
, the net org
from 1.5%
he thermal m
%, placing th
blicly availab
in, v. 90, no. 11 (November 2
World Shale Ga
aphy (Quebec

Utica Sha
op of the sh
ong the sout
The Utica S
ganic-rich sh
to 3%, w
maturity of t
he shale prim
ble.
2006), pp. 16911718
JAF2
s and Shale Oil
c)
ale introduc
hale in the
thwestern a
Shale has a
hale is estim
with the high
the prospec
marily in the
1299.AI
Resource Asses

ces conside
prospective
and northwe
gross interv
mated at 400
her TOC va
ctive area ra
dry gas win
ssment
erable
area
estern
val of
0 feet.
alues
anges
ndow.
I. Canada

June, 2013

1.3 R
T
prospect
shale gas
within the
31 Tcf fo
1.4 C
In
of 181 Tc
shale gas
1.5 E
T
as Ques
Approxim
provided
markets
awaiting
Resource A
The prospect
ive area, the
s in-place is
e prospectiv
or the Utica S
Comparison
n mid-2010,
cf (unrisked)
s resources.
Exploration
Two large op
sterre, June
mately 25 ex
by the Mar
in Quebec
further envir
Assessmen
tive area of t
e shale has a
s 155 Tcf. A
ve area, we e
Shale.
n with Oth
the Canadia
) for the Utic
.
30

n Activity
perators, Tal
ex, Gastem
xploration we
ritimes and
City and M
ronmental st
I-
nt
the Utica Sh
a gas in-plac
Assuming low
estimate a r
er Resourc
an Society fo
ca Shale in C
lisman and
and Molop
ells have be
Northeaster
Montreal. C
tudies.
EIA/ARI W
53
hale in Queb
ce concentra
w clay conte
isked, techn
ce Assess
or Unconven
Canada with
Forest Oil, p
po, hold lea
een drilled w
rn pipeline a
Currently sh
World Shale Ga
bec is estima
ation of 134
ent, but cons
nically recove
sments
ntional Gas
h 7 to 12 Tcf
plus numero
ases in the
with moderat
as well as th
hale gas dri
s and Shale Oil
ated at 2,900
Bcf/mi
2
. As
siderable geo
erable shale
(CSUG) cite
f of marketa
ous smaller
e Utica Sha
te results. M
he TransCa
lling in Que
Resource Asses

0 mi
2
. Withi
s such, the r
ologic comp
e gas resour
es a gas in-
ble (recover
companies
ales of Que
Market acce
anada Pipeli
ebec is on
ssment
n this
risked
plexity
rce of
place
rable)
such
ebec.
ess is
ne to
hold,
I. Canada

June, 2013

2. W
2.1 In
T
(Early M
Shale re
experien
Horton B
2.2 R
T
prospect
area has
the prosp
gross pa
thermal m
2.5% in t
in the dry
Windsor
2.3 R
T
and east
resource
shale gas
technical
2.4 R
T
have beg
WINDSOR B
ntroduction
The Horton B
ississippian
ests directly
ced high he
Bluff Shale ge
Reservoir P
The regional
ive area bou
s been estim
pective area
y and 300 fe
maturity of t
the northeas
y gas window
Basin, provi
Resource A
The 520-mi
2

tern portions
e concentrat
s in-place. G
lly recoverab
Recent Act
Two small op
gun to explo
BASIN (NO
n and Geo
Bluff Shale
) shale with
on the pre
eat flow and
eology is co
Properties
extent of th
undaries are
mated for the
ranges from
eet of organ
he prospect
stern portion
w. Data from
ided valuabl
Assessmen
prospective
s of the play
ion of 82 B
Given the ge
ble shale ga
ivity.
perators, Tria
re the Horto
I-
OVA SCOT
logic Setti
is located in
hin the Hort
e-Carbonife
d has a hig
mplex, conta
(Prospecti
he Horton S
e highly unce
e Horton Bluf
m 3,000 to 5
nically rich n
tive area ran
of the prosp
m the Kenne
e data on re
nt
area of the
y area. With
Bcf/mi
2
. Our
eologic comp
s resource o
angle Petrol
n Bluff Shale
EIA/ARI W
54
IA)/HORTO
ng
n north-cent
ton Group,
rous igneou
gh thermal m
aining nume
ive Area)
Shale play is
ertain. A pre
ff Shale play
,000 feet. T
et pay. The
nges from a
pective area
etcook #1, dr
eservoir prop
Horton Bluf
hin this pros
r preliminary
plexity in the
of 3 Tcf for th
leum and Fo
e.
World Shale Ga
ON BLUFF
tral Nova S
Figure I-36.
us and met
maturity in
erous faults.
s only partly
eliminary out
y, Figure I-3
The shale int
e TOC is 4%
R
o
of 1.2%
a, placing the
rilled to test
perties.
ff Shale in N
spective are
y resource e
e prospective
he Horton B
orent Energy
s and Shale Oil
SHALE
cotia. It is
. Because
tamorphic b
northern No
y defined a
tline and 520
37. The dep
terval is thic
% to 5% (loca
% in the sout
e Horton Blu
the Horton B
Nova Scotia
ea, the shale
estimate is
e area, we e
luff Shale.
y, have acq
Resource Asses

a Carbonife
the Horton
basement, it
ova Scotia.
as the basin
0-mi
2
prospe
pth of the sha
k with 500 fe
ally higher).
h to a R
o
of
uff Shale prim
Bluff Shale i
is in the nor
e has an in-
17 Tcf of r
estimate a ris
uired leases
ssment
erous
Bluff
t has
The
n and
ective
ale in
eet of
The
f over
marily
in the
rthern
place
risked
sked,
s and
I

J

. Canada

June, 2013
Figure I-36. Horto
Source: Mukhop
on and Frederick
Stratigrap
adhyay, 2009
Brook Shale (Hor
phy
JAF
rton Group)
Sou
F21298.AI
I-55
Figure I-37. Outlin
urce: ARI, 2013.
EIA/ARI W
ne and Prospectiv
World Shale Gas and
ve Area for Horton
n Bluff Shale (Nov
e Assessment

va Scotia)
I. Canada

June, 2013

3. M
T
Basin of
Horton G
Uplift, on
39. Beca
has yet t
T
extensive
eastern e
(1% to
mineralo
portions
the basin
M
Su
Source:
MONCTON
The Frederic
f New Bruns
Group in Nov
n the west by
ause of limit
to be establi
F
The Frederic
e faulting an
edges to 15
10%), but t
gy of the sh
of the basin
n.
Moncton
ub-Basin
Geological Survey of
SUB-BASI
k Brook Sha
swick, Figu
va Scotia. T
y the Kingsto
ted data, the
ished.
igure I-38. Lo
ck Brook Sh
nd deformat
,000 feet in
typically ran
hale. The th
n to highly m
MA
f Canada, 2009 CSPG
I-
IN (NEW B
ale is locate
re I-38. Th
he Moncton
on Uplift, an
e definition o
ocation of Mon
hale in the
ion. Its dep
the north.
nges from 3
hermal matu
mature (R
o
>
ARITIMES
G CSEG CWLS Conv
EIA/ARI W
56
BRUNSWIC
d in the Mo
his Mississip
Sub-Basin
nd on the no
of the prospe
ncton Sub-Bas
Moncton S
pth ranges f
The total or
3% to 5%.
urity ranges f
> 2%) in the
vention, Canada
World Shale Ga
CK)/FREDE
ncton Sub-B
ppian-age s
is bounded
rth by the W
ective area o
sin and Mariti
Sub-Basin is
from about
rganic conte
No public
from immatu
e deeper we
s and Shale Oil
ERICK BRO
Basin of the
shale is cor
on the east
Westmorelan
of the Frede
mes Basin
s structurall
3,000 feet a
ent of the sh
c data are a
ure R
o
< 1%
estern and s
Resource Asses

OOK SHAL
larger Marit
rrelative with
by the Caled
d Uplift, Fig
erick Brook S
ly complex,
along the ba
ale varies w
available on
% in the shal
southern are
JAF21297.
ssment
LE
times
h the
donia
ure I-
Shale

with
asins
widely
n the
lower
eas of
.AI
I. Canada

June, 2013

M
the McC
handful o
may also

REFERE

1
Gas Shale
2
Shale Unit
Petroleum G
3
Ross, D.J.
Western Ca
2008), pp. 8
4
An Overv
5
Ultimate P
Ministry of E
6
Hydrocarb
Source: P
Much of the
Cully gas fie
of vertical ex
o be prospec
Figure I-3
ENCES

e Potential of De
ts of the Horn Ri
Geology Open F
K., and Bustin, R
anada sedimenta
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P.K. Mukhopadhyay, Sea
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eld along th
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s 2011-1 - May 2
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s and Shale Oil
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Brunswick) Ca
gy Special Pape
rtheastern Britis
nianMississippi
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al Gas (CSUG) M
rn River Basin, B
2011
on, 2010
Resource Asses

ook Shale is
asin and fro
asin, Figure
red or asses
anada
er 2005-1.
h Columbia,
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May 2010.
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JAF21296.A
ssment
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, The Bakken Re
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, April 10-12, 20
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tial of the Triass
Oil and Gas Div
las NEBC Octob
2012.
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nd siltstone-hos
port 2012-06.

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ccessed 1/31/20
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p of the Western
a, J. Bloch, C.F.
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tchewan Ministry
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Gas,
II. Mexico EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 II-1
II. MEXICO
SUMMARY
Mexico has excellent potential for developing its shale gas and oil resources stored in
marine-deposited, source-rock shales distributed along the onshore Gulf of Mexico region.
Figure II-1. Onshore Shale Gas and Shale Oil Basins of Eastern Mexicos Gulf of Mexico Basins.
Source: ARI, 2013.


June, 2013 II-2
Technically recoverable shale resources, estimated at 545 Tcf of natural gas and 13.1
billion barrels of oil and condensate, are potentially larger than the countrys proven
conventional reserves, Table II-1. The best documented play is the Eagle Ford Shale of the
Burgos Basin, where oil- and gas-prone windows extending south from Texas into northern
Mexico have an estimated 343 Tcf and 6.3 billion barrels of risked, technically recoverable shale
gas and shale oil resource potential, Table II-2.
Further to the south and east within Mexico, the shale geology of the onshore Gulf of
Mexico Basin becomes structurally more complex and the shale development potential is less
certain. The Sabinas Basin has an estimated 124 Tcf of risked, technically recoverable shale
gas resources within the Eagle Ford and La Casita shales, but the basin is faulted and folded.
The structurally more favorable Tampico, Tuxpan, and Veracruz basins add another 28 Tcf and
6.8 billion barrels of risked, technically recoverable shale gas and shale oil potential from
Cretaceous and Jurassic marine shales. These shales are prolific source rocks for Mexicos
conventional onshore and offshore fields in this area. Shale drilling has not yet occurred in
these southern basins.
PEMEX envisions commercial shale gas production being initiated in 2015 and
increasing to around 2 Bcfd by 2025, with the company potentially investing $1 billion to drill 750
wells. However, PEMEXs initial shale exploration wells have been costly ($20 to $25 million
per well) and have provided only modest initial gas flow rates (~3 million ft
3
/d per well with steep
decline). Mexicos potential development of its shale gas and shale oil resources could be
constrained by several factors, including potential limits on upstream investment, the nascent
capabilities of the local shale service sector, and public security concerns in many shale areas.


June, 2013 II-3
Table II-1. Shale Gas Reservoir Properties and Resources of Mexico

Tithonian Shales EagleFord Shale Tithonian LaCasita
U. Jurassic M. - U. Cretaceous U. Jurassic
Marine Marine Marine
600 10,000 6,700 6,700 9,500 9,500
Organically Rich 200 200 300 500 500 800
Net 160 160 210 200 400 240
Interval 3,300 - 4,000 4,000 - 16,400 6,500 - 16,400 7,500 - 16,400 5,000 - 12,500 9,800 - 13,100
Average 3,500 7,500 10,500 11,500 9,000 11,500
Highly
Overpress.
Highly
Overpress.
Highly
Overpress.
Highly Overpress. Underpress. Underpress.
5.0% 5.0% 5.0% 3.0% 4.0% 2.0%
0.85% 1.15% 1.60% 1.70% 1.50% 2.50%
Low Low Low Low Low Low
Assoc. Gas Wet Gas Dry Gas Dry Gas Dry Gas Dry Gas
21.7 74.4 190.9 100.3 131.9 69.1
7.8 446.4 767.5 201.6 501.0 118.1
0.9 111.6 230.2 50.4 100.2 23.6
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
Burgos
(24,200mi
2
)
EagleFord Shale
M. - U. Cretaceous
Marine
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
Depositional Environment
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
Sabinas
(35,700mi
2
)

Tamaulipas Pimienta
L. - M. Cretaceous Jurassic
Marine Marine
9,000 3,050 1,550 1,000 1,000 560 400
Organically Rich 500 500 500 300 500 300 300
Net 200 200 200 210 200 150 150
Interval 3,300 - 8,500 4,000 - 8,500 7,000 - 9,000 6,000 - 9,500 6,600 - 10,000 9,800 - 12,000 10,000 - 12,500
Average 5,500 6,200 8,000 7,900 8,500 11,000 11,500
Normal Normal Normal Normal Normal Normal Normal
3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
0.85% 1.15% 1.40% 0.85% 0.90% 0.85% 1.40%
Low Low Low Low Low Low/Medium Low/Medium
Assoc. Gas Wet Gas Dry Gas Assoc. Gas Assoc. Gas Assoc. Gas Dry Gas
18.6 44.7 83.0 25.5 27.2 22.4 70.0
58.5 47.7 45.0 8.9 9.5 6.6 14.7
4.7 9.5 9.0 0.7 0.8 0.5 2.9
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
Marine
Tampico
(26,900mi
2
)
Tuxpan
(2,810mi
2
)
Veracruz
(9,030mi
2
)
Pimienta
Jurassic
Maltrata
U. Cretaceous
Marine


June, 2013 II-4
Table II-2. Shale Oil Reservoir Properties and Resources of Mexico

Veracruz
(9,030mi
2
)
Tamaulipas Pimienta Maltrata
L. - M. Cretaceous Jurassic U. Cretaceous
600 10,000 9,000 3,050 1,000 1,000 560
OrganicallyRich 200 200 500 500 300 500 300
Net 160 160 200 200 210 200 150
Interval 3,300 - 4,000 4,000 - 16,400 3,300 - 8,500 4,000 - 8,500 6,000 - 9,500 6,600 - 10,000 9,800 - 12,000
Average 3,500 7,500 5,500 6,200 7,900 8,500 11,000
Highly Overpress. Highly Overpress. Normal Normal Normal Normal Normal
5.0% 5.0% 3.0% 3.0% 3.0% 3.0% 3.0%
0.85% 1.15% 0.85% 1.15% 0.85% 0.90% 0.85%
Low Low Low Low Low Low Low/Medium
Oil Condensate Oil Condensate Oil Oil Oil
43.9 15.0 37.9 17.3 36.4 33.0 23.5
15.8 89.8 119.4 18.5 12.7 11.5 6.9
0.95 5.39 4.78 0.74 0.51 0.46 0.28
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir Pressure
AverageTOC (wt. %)
Clay Content
Burgos
(24,200mi
2
)
EagleFord Shale
M. - U. Cretaceous
Marine
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
Tampico
(26,900mi
2
)
Pimienta
Jurassic
Marine
Tuxpan
(2,810mi
2
)

INTRODUCTION
Mexico has large, geologically prospective shale gas and shale oil resources in the
northeastern part of the country within the onshore portion of the greater Gulf of Mexico Basin,
Figure II-1. These thick, organic-rich shales of marine origin correlate with productive Jurassic
and Cretaceous shale deposits in the southern United States, notably the Eagle Ford and
Haynesville shales, Figure II-2.
1
To date, Mexicos national oil company PEMEX has drilled at
least six shale gas/oil exploration wells with modest results. The company plans to accelerate
shale activity during the next few years, budgeting 6.8 billion pesos (575 million USD) in 2014.
Whereas Mexicos marine-deposited shales appear to have good rock quality, the
geologic structure of its sedimentary basins often is considerably more complex than in the
USA. Compared with the broad and gently dipping shale belts of Texas and Louisiana,
Mexicos coastal shale zone is narrower, less continuous and structurally more disrupted.
Regional compression and thrust faulting related to the formation of the Sierra Madre Ranges
have squeezed Mexicos coastal plain, creating a series of discontinuous sub-basins.
2
Many of
Mexicos largest conventional oil and gas fields also occur in this area, producing from
conventional sandstone reservoirs of Miocene and Pliocene age that were sourced by deep,
organic-rich and thermally mature Jurassic and Cretaceous-age shales. These deep source
rocks are the principal targets for shale gas/oil exploration in Mexico.

June, 2013 II-5
Figure II-2. Cross-Section of Shale Targets in Eastern Mexico.
Source: Escalera Alcocer, 2012.

Improved geologic data coverage collected since ARIs initial 2011 estimate indicates
that Mexicos prospective areas for shale gas -- particularly in the structurally more complex
basins are slightly smaller than previously mapped. Furthermore, several of the previously
mapped dry gas areas are now known to be within the wet gas to oil thermal maturity windows.
On the other hand, geologic risk factors have been reduced due to the demonstration of the
presence of productive hydrocarbons and improved geologic control. On an overall energy-
equivalent basis, our updated estimate of Mexicos shale resources is about 10% lower than our
earlier 2011 estimate (624 Tcfe in this study vs 681 Tcf previously).
PEMEX has identified some 200 shale gas resource opportunities in five geologic
provinces in eastern Mexico, Figure II-3. According to the company, prospective regions
include 1) Paleozoic shale gas in Chihuahua region; 2) Cretaceous shale gas in the Sabinas-
Burro-Picachos region; 3) Cretaceous shale gas in the Burgos Basin; 4) Jurassic shale gas in
Tampico-Misantla; and 5) unspecified shale gas potential in Veracruz.

June, 2013 II-6
Figure II-3. PEMEX Map Identifying Mexicos Shale Gas Potential (November 2012)
Source: PEMEX, 2012b.

PEMEXs initial internal evaluation estimated 150 Tcf (P90) to 459 Tcf (P10) of
recoverable shale gas resources, with a median estimate of 297 Tcf. In 2012 PEMEX updated
its shale gas and shale oil resource assessment to 141.5 Tcf of shale gas (comprising 104.7 Tcf
dry and 36.8 Tcf wet) and 31.9 billion barrels of shale oil and condensate.
Initial shale gas and shale oil exploration began in Mexico in late 2011. PEMEX has
drilled at least six wells in the Eagle Ford Shale play in northern Mexico to date, but the
southern shale basins have not yet been tested. Despite some areas with favorable shale
geology, Mexico faces significant obstacles to shale development. The countrys upstream oil
industry is largely closed to foreign investment. None of the shale-discovering independent
E&Ps, which unlocked the North American shale plays, are active in Mexico. And, well services
for shale development are costlier than in the U.S. and Canada.


June, 2013 II-7
Onshore eastern Mexico contains a series of medium-sized basins and structural highs
(platforms) within the larger western Gulf of Mexico Basin.
3
These structural features contain
organic-rich marine shales of Jurassic and Cretaceous age that appear to be the most
prospective for shale gas and oil development. The arcuate coastal shale belt includes the
Burgos, Sabinas, Tampico, Tuxpan Platform, and Veracruz basins and uplifts. Because
detailed geologic maps of these areas generally are not readily available, ARI constructed the
general pattern of shale depth and thickness from a wide range of published local-scale maps
and structural cross-sections.
Many of Mexicos shale basins are too deep in their center for shale gas and shale oil
development (>5 km), while their western portions tend to be overthrusted and structurally
complex. However, the less deformed eastern portions of these basins and adjacent shallower
platforms are structurally more simple. Here, the most prospective areas for shale gas and
shale oil development are buried at suitable depths of 1 km to 5 km over large areas.
Pyrolysis geochemistry, carbon isotope studies, and biomarker analysis of oil and gas
fields identify three major Mesozoic hydrocarbon source rocks in Mexicos Gulf Coast Basin: the
Upper Cretaceous (Turonian to Santorian), Lower-Mid Cretaceous (Albian-Cenomanian), and --
most importantly Upper Jurassic (Tithonian), the latter having sourced an estimated 80% of
the conventional oil and gas discovered in this region.
4
These targets, particularly the Tithonian,
also appear to have the greatest potential for shale gas development, Figure II-4.
The following sections discuss the shale gas and shale oil geology of the individual sub-
basins and platforms along eastern Mexicos onshore Gulf of Mexico Basin. The basins
discussed start in northern Mexico near the Texas border moving to the south and southeastern
regions close to the Yucatan Peninsula.

June, 2013 II-8

Figure II-4. Stratigraphy of Jurassic and Cretaceous rocks in the Gulf of Mexico Basin, Mexico and USA.
Shale gas targets are highlighted.
Modified from Salvador and Quezada-Muneton, 1989.


June, 2013 II-9
1. BURGOS BASIN (Eagle Ford and Tithonian Shales)

1.1 Geologic Setting
Located in northeastern Mexicos Coahuila state, directly south of the Rio Grande River,
the Burgos Basin covers an onshore area of approximately 24,200 mi
2
, excluding its extension
onto the continental shelf of the Gulf of Mexico, Figure II-5. The Burgos Basin is the southern
extension of the Maverick Basin in Texas, the latter hosting the productive Eagle Ford and
Pearsall shale plays.
The Burgos Basin expanded during the Early Jurassic and developed into a restricted
carbonate platform, with thick salt accumulations that later formed a regional structural
detachment as well as isolated diapirs. Structural deformation took place during the late
Cretaceous Laramide Orogeny, resulting in some degree of faulting and tilting within the Burgos
Basin. However, this tectonic event was focused more on the Sabinas Basin and Sierra Madre
Oriental, while the Burgos remains structurally relatively simple and favorable for shale
development.
5
Thick Tertiary-age clastic non-marine deposits overlie the Jurassic and
Carbonate marine sequences, reflecting later alternating transgressions and regressions of sea
level in northeastern Mexico.
6

The two most prospective shale targets in Mexico are present in the Burgos Basin: the
Cretaceous (mainly Turonian) Eagle Ford Shale play and the Jurassic (mainly Tithonian) La
Casita and Pimienta formations, Figure II-6. The Eagle Ford Shale in Mexico is the direct
extension of its commercially productive Texas equivalent, whereas the La Casita and Pimienta
formations correlate with the productive Haynesville Shale of the East Texas Basin. The La
Casita is believed to be the main source rock for conventional Tertiary clastic reservoirs
(Oligocene Frio and Vicksburg) in the southeastern Burgos Basin, with oil transported via deep-
seated normal faults.
7

1.2 Reservoir Properties (Prospective Area)
Eagle Ford Shale. Based on analogy with the Eagle Ford Shale in Texas, industry and
ARI considers the Eagle Ford Shale in the Burgos Basin to be Mexicos top-ranked shale
prospect. The Eagle Ford Shale is continuous across the western margin of the Burgos Basin,
where the overall formation interval ranges from 100 to 300 m thick (average 200 m).
8

Recognizing the sparse regional depth and thickness control on the Eagle Ford Shale in the

June, 2013 II-10
Burgos Basin,
9
we relied on a recent PEMEX shale map to estimate a prospective area of
17,300 mi
2
, slightly less than our previous estimate of 18,100 mi
2
, comprising three distinct
areas where the shale lies within the 1 km to 5 km depth window, Figure II-5. The eastern
onshore portion of the Burgos Basin is excluded as the shale is deeper than 5 km.
Figure II-5. Burgos Basin Outline and Shale Gas and Shale Oil Prospective Areas.

Source: ARI, 2013.

June, 2013 II-11
Figure II-6. Stratigraphic Cross-Section Along the Western Margin of the Burgos Basin.
Section is flattened on top Cretaceous.
The Eagle Ford Shale (EF) here ranges from about 100 to 300 m thick (average 200 m).
A A

Modified from Horbury et al., 2003.
Net organically-rich shale thickness within the prospective area ranges from 200 to 300
ft. Total organic content (TOC) is estimated to average 5%. Vitrinite reflectance (R
o
) ranges
from 0.85% to 1.6% depending on depth. Over-pressured reservoir conditions are common in
this basin and a pressure gradient of 0.65 psi/ft was assumed. The surface temperature in this
region averages approximately 20C, while the geothermal gradient typically is 23C/km.
Porosity is not known but assumed to be comparable to the Texas Eagle Ford Shale play at
about 10%.
La Casita and Pimienta (Tithonian) Shales. Several thousand feet deeper than the
Eagle Ford Shale, the La Casita and Pimienta shales (Upper Jurassic Tithonian) are considered
the principal source rocks in the western Burgos Basin. Extrapolating from the structure of the
younger Eagle Ford, the average depth of the Tithonian Shale is 11,500 ft, with a prospective
range of 5,000 to 16,400 ft. Gross formation thicknesses can be up to 1,400 ft, with an
organically rich net pay of about 200 ft. TOC of 2.6% to 4.0%, averaging 3.0%, consists mainly
of Type II kerogen that appears to be entirely within the dry gas window (1.30% R
o
) with little to
no liquids potential.
10
Reservoir pressure and temperature conditions are similar to those in the
Eagle Ford Shale play.

June, 2013 II-12
1.3 Resource Assessment

Eagle Ford Shale. Within its 17,300-mi
2
prospective area, the Eagle Ford Shale
exhibits a high resource concentration of up to 191 Bcf/mi
2
. Risked shale gas in-place (OGIP)
totals 1,222 Tcf with risked shale oil in-place (OOIP) of 106 billion barrels. Risked, technically
recoverable resources are estimated to be 343 Tcf of shale gas and 6.3 billion barrels of shale
oil and condensate.
Tithonian Shale. Within the high-graded prospective area of 6,700 mi
2
, the Tithonian
La Casita and Pimienta shales are estimated to have approximately 50 Tcf of risked, technically
recoverable dry gas resources from 202 Tcf of risked gas in-place. Resource concentration is
about 100 Bcf/mi
2
.
1.4 Recent Activity
PEMEX initiated conventional exploration in the Burgos Basin in 1942, discovering some
227 mostly natural gas fields in this basin to date. Currently, there are about 3,500 active
natural gas wells producing in the Burgos Basin. These conventional reservoirs typically have
low permeability with rapidly declining gas production. Due to restrictions on upstream oil and
gas investment in Mexico, PEMEX is the only company that has conducted shale exploration
activity in the Burgos Basin to date.
PEMEX made its first shale discovery in the Burgos Basin during late 2010 and early
2011, drilling the Emergente-1 shale gas well located a few kilometers south at the
Texas/Coahuila border on a continuation of the Eagle Ford Shale trend from Texas. This initial
horizontal well was drilled to a vertical depth of about 2,500 m and employed a 2,550-m lateral
(although another source reported 1,364-m). Following a 17-stage fracture stimulation, the $20-
25 million well tested at a modest initial rate of 2.8 million ft
3
/day (time interval not reported),
which would not be economic at current gas prices.
11

As of its last report (November 2012), PEMEX had drilled four shale gas exploration
wells in the Eagle Ford play of the Burgos Basin with one shale exploration well in the Sabinas
basin, reporting initial production for three wells. These wells include the Nmada-1 well
situated in the oil window, the Habano-1 well (IP 2.771 million ft
3
/day gas with 27 bbl/day crude)
and the Montas-1 well in the wet gas window of the Burgos Basin. The dry gas window in the
Burgos Basin was tested by the Emergente-1. The Percutor-1 (IP 2.17 million ft
3
/day) tested the

June, 2013 II-13
dry gas window in the Sabinas Basin. PEMEX has announced also drilled and produced gas
from the Arbolero-1 well (3.2 million ft
3
/day), the first test of the Jurassic shale in this basin.
12

PEMEX plans to drill up to 75 shale exploration wells in the Burgos Basin through 2015.
2. SABINAS BASIN (Eagle Ford and Tithonian Shales)
The Sabinas is one of Mexicos largest onshore marine shale basins, extending over a
total area of 35,700 mi
2
in the northeast part of the country, Figure II-7. The basin initially
expanded during Jurassic time with a northeast-southwest trending structural fabric and was
later strongly affected by the Late Cretaceous Laramide Orogeny. Structurally complex, the
Sabinas Basin has been deformed into a series of tight, NW-SE trending, evaporate-cored folds
of Laramide origin called the Sabinas Foldbelt. Dissolution of Lower Jurassic salt during early
Tertiary time introduced a further overprint of complex salt-withdrawal tectonics.
13
Much of the
Sabinas Basin is too structurally deformed for shale gas development, but a small area on the
northeast side of the basin is more gently folded and may be prospective.
Petroleum source rocks in the Sabinas Basin include the Cretaceous Olmos
(Maastrichtian) and Eagle Ford Shale (Turonian) formations and the Late Jurassic (Tithonian)
La Casita Formation. The latter two units contain marine shales with good petrophysical
characteristics for shale development.
14
In contrast, the Olmos Formation is primarily a non-
marine coaly unit that, while a good source rock for natural gas
15
as well as a coalbed methane
exploration target in its own right,
16
appears to be too ductile for shale development.
Eagle Ford Shale. The Eagle Ford Shale is distributed across the NW, NE, and central
portions of the Sabinas Basin. The target is the 300-m thick sequence of black shales
rhythmically interbedded with sandy limestone and carbonate-cemented sandstone. We
estimated a 500-ft thick organic-rich interval with 400 feet of net pay. We considered the Eagle
Ford Shale in the Maverick Basin of South Texas as the analog for reservoir properties, using a
TOC of 4% and a thermal maturity of 1.50% (R
o
). Our estimate of porosity was increased to 5%
based on the rock fabric and correlation with the Texas Eagle Ford Shale analog. The average
depth for the prospective Eagle Ford is approximately 9,000 feet. Based on reported data,
mostly from coal mining areas, we use a slightly under-pressured gradient of 0.35 psi/ft for the
Sabinas Basin.

June, 2013 II-14
Figure II-7. Sabinas Basin Outline and Shale Gas Prospective Area.
Source: ARI, 2013.

June, 2013 II-15
La Casita Formation. This Tithonian-age unit, regarded as the primary hydrocarbon

source rock in the Sabinas Basin, consists of organic-rich shales deposited in a deepwater
marine environment. The La Popa sub-basin is one of numerous sub-basins within the Sabinas
Basin, Figure II-8.
17,18
The La Popa is a rifted pull-apart basin that contains thick source rock
shales. Up to 370 m of black carbonaceous limestone is present overlying several km of
evaporitic gypsum and halite. Total shale thickness in the La Casita ranges from 60 m to 800
m. Thick (300 m) and prospective La Casita Fm shales have been mapped at depths of 2,000
to 3,000 m in the central Sabinas Basin. Nearby, a thicker sequence (400-700 m) was mapped
at greater depth (3,000 to 4,000 m).
The high-graded prospective area for the La Casita Formation averages 11,500 ft deep,
about 2,500 ft deeper than the Eagle Ford Shale. The La Casita Formation averages about 240
ft of net pay thickness within an 800-ft thick organic-rich interval and has 2.0% average TOC
that is gas prone (2.5% R
o
). Our estimate of porosity in the La Casita was increased to 5%
based on the rock fabric and correlation with the deep Texas and Louisiana Haynesville Shale
analog.
Eagle Ford Shale. The Eagle Ford Shale unit is the larger shale gas target in the
Sabinas Basin, with an estimated 100 Tcf of technically recoverable shale gas resource out of
501 Tcf of risked shale gas in-place within the 9,500-mi
2
prospective area. The average
resource concentration is high at 132 Bcf/mi
2
.
La Casita Formation. The secondary target in the Sabinas Basin, the underlying La
Casita Formation, has an estimated 24 Tcf of technically recoverable shale gas out of 118 Tcf of
risked shale gas in-place. Its resource concentration is estimated at 69 Bcf/mi
2
.
2.4 Recent Activity
PEMEX has drilled one shale gas exploration well in the Sabinas Basin, confirming the
continuation of the Eagle Ford Shale play. The Percutor-1 horizontal well, completed in March
2012, produced dry gas from a sub-surface depth of 3,330-3,390 m. The wells initial production
rate was a modest 2.17 million ft
3
/day (measurement time interval not specified), with production
reportedly declining rapidly.

June, 2013 II-16
Figure II-8. Geologic Map of the La Popa Sub-Basin, Southeastern Portion of the Sabinas Basin.
Note the numerous detachment and salt-controlled folds.
Source: Hudson and Hanson, 2010.


June, 2013 II-17
3. TAMPICO BASIN (Pimienta Shale)

Bounded on the west by the fold-and-thrust belt of the Sierra Madre Oriental (Laramide)
and on the east by the Tuxpan platform, the Tampico-Mizatlan Basin extends north from the
Santa Ana uplift to the Tamaulipas arch north of Tampico, Figure II-9. At the northern margin of
the basin is an arch, limited by a series of faults extending south from the Tamaulipas arch.
Figure II-9. Prospective Pimienta Formation (Tithonian) Shale, Tampico Basin.

Source: ARI, 2013.

June, 2013 II-18
The principal source rock in the Tampico Basin is the Upper Jurassic (Tithonian)
Pimienta Shale, Figure II-10. Although quite deep over much of the basin, the Pimienta reaches
shale-prospective depths of 1,400 to 3,000 m in the south where three uplifted structures occur.
The 40-km long, NE-SW trending Piedra de Cal anticline in the southwest Bejuco area has
Pimienta Shale cresting at 1,600-m depth. The 20-km long, SW-NE trending Jabonera syncline
in southeast Bejuco has maximum shale depth of 3,000 m in the east and minimum depth of
about 2,400 m in the west. A system of faults defines the Bejuco field in the center of the area.
Two large areas (Llano de Bustos and La Aguada) lack upper Tithonian shale deposits.
Figure II-10. Structural Cross-Section of the Tampico Basin

3.2 Reservoir Properties
Near the city of Tampico, some 50 conventional wells have penetrated organic-rich
shales of the Pimienta Formation at depths of about 1,000 to 3,000 m. Three distinct thermal
maturity windows (dry gas, wet gas, and oil) occur from west to east, reflecting the gentle
structural dip angle in this basin. Average shale depth ranges from 5,500 to 8,000 ft. Excluding
the paleo highs, the prospective area of the Pimienta Shale totals approximately 13,600 mi
2
.
Detailed shale thickness data are not available, but the Pimienta Fm here generally ranges from
200 m thick to as little as 10 m thick on paleo highs. We estimate an average net shale
thickness of about 200 ft, out of the total organically rich interval of 500 ft within the prospective
area. Average net shale TOC is estimated at 3%, with average thermal maturity ranging from
0.85% to 1.4% R
o
.

June, 2013 II-19

The Pimienta Shale in the Tampico Basin holds an estimated 23 Tcf and 5.5 billion
barrels of risked, technically recoverable shale gas and shale oil resources, out of risked OOIP
and OGIP of 151 Tcf and 138 billion barrels, respectively. The shale gas resource
concentration averages 19 to 83 Bcf/mi
2
while the shale oil concentration averages 17 to 38
million bbl/mi
2
.
3.4 Recent Activity
PEMEX reported that it is evaluating the shale geology of the Tampico Basin and plans
to drill up to 80 shale exploration wells through 2015.
19

4. TUXPAN PLATFORM (Pimienta and Tamaulipas Shales)
The Tuxpan Platform, located southeast of the Tampico Basin, is a subtle basement
high that is capped with a well-developed Early Cretaceous carbonate platform.
20
A particularly
prospective and relatively well defined shale gas deposit is located in the southern Tuxpan
Platform. Approximately 50 km south of the city of Tuxpan, near Poza Rica, a dozen or so
conventional petroleum development wells in the La Mesa Syncline area penetrated thick
organic-rich shales of the Pimienta (Tithonian) and Tamaulipus (Lower Cretaceous)
Formations.
21

A detailed cross-section of the Tuxpan Platform shows thick Lower Cretaceous and
Upper Jurassic source rocks dipping into the Gulf of Mexico Basin, Figure II-11. These source
rocks reach prospective depths of 2,500 m. Thermal maturity ranges from oil- to gas-prone.
Pimienta Fm. The organically rich portion of the Jurassic Pimienta Shale averages
about 500 ft thick in the high-graded area, with net thickness estimated at 200 ft. However,
southeast of Poza Rica some areas the shale is thin or absent, probably due to submarine
erosion or lack of deposition, Figure 12. The gamma ray log response in the organic-rich
Pimienta Shale indicates moderate TOC of 3.0%, which is in the oil to wet gas window (average
R
o
of 0.9%). Depth ranges from 6,600 to 10,000 ft, averaging about 8,500 ft.

June, 2013 II-20
Tamaulipas Fm. The Lower Cretaceous Tamaulipas Fm spans a depth range of 6,000
to 9,500, averaging about 7,900 ft. The organic-rich interval averages 300 ft thick, with net pay
estimated at about 210 ft. TOC is estimated to be 3.0%. The average thermal maturity is
slightly lower than for the deeper Pimienta, at 0.85% R
o
.
Figure II-11. Cross-Section of the Tuxpan Platform.
B B

Modified from Salvador, 1991c.

Modified from
Salvador, 1991c

June, 2013 II-21
Figure II-12. Potentially Prospective Shale Gas and Shale Oil Areas of the Tuxpan Platform.
Source: ARI, 2013.


June, 2013 II-22

Pimienta Fm. In the Tuxpan Platform, the prospective area of the Pimienta Fm shale is
estimated to be approximately 1,000 mi
2
. Risked, technically recoverable resources are
estimated to be about 1 Tcf of shale gas and 0.5 billion barrels of shale oil and condensate.
Risked shale resource in-place is estimated at 10 Tcf and 12 billion barrels.
Tamaulipas Fm. Due to limited data on the younger Tamaulipas Fm the same
prospective area of the Pimienta Shale was assumed (1,000 mi
2
). The Tamaulipas Shale is
estimated to have risked technically recoverable resources of about 1 Tcf of shale gas and 0.5
billion barrels of shale oil and condensate, out of risked shale resources in-place of 9 Tcf and 13
billion barrels.
4.4 Recent Activity
No shale gas or oil exploration activity has been reported on the Tuxpan Platform.


June, 2013 II-23
5. VERACRUZ BASIN (Maltrata Shale)

The Veracruz Basin extends over an onshore area of 9,030 mi
2
, near its namesake city.
The basins western margin is defined by thrusted Mesozoic carbonates (early Tertiary
Laramide Orogeny) of the Cordoba Platform and Sierra Madre Oriental, Figure II-13. The basin
is asymmetric in cross section, with gravity showing the deepest part along the western margin,
Figure II-14.
22
The basin comprises several major structural elements, from west to east: the
Buried Tectonic Front, Homoclinal Trend, Loma Bonita Anticline, Tlacotalpan Syncline, Anton
Lizardo Trend, and the highly deformed Coatzacoalcos Reentrant in the south.
23

A recent shale exploration map released by PEMEX indicates the prospective area of
the Veracruz Basin is much smaller than previously assumed in the 2011 EIA/ARI study. This is
because the shale is shown to be dipping at a steeper angle than previously mapped. In
addition, both shale gas and oil thermal maturity windows are present.
Maltrata Fm. The Upper Cretaceous (Turonian) Maltrata Formation is a significant
source rock in the Veracruz Basin, containing an estimated 300 ft of organic-rich, shaly marine
limestone. TOC ranges from 0.5% to 8%, averaging approximately 3%, and consists of Type II
kerogen. Thermal maturity ranges from oil-prone (R
o
averaging 0.85%) within the oil window at
depths of less than 11,000 ft, to gas-prone (R
o
averaging 1.4%) within the gas window at
average depths below 11,500 ft.
Maltrata Fm. Whereas we previously had assumed that 90% of the Veracruz Basin
(8,150 mi
2
) is in a favorable depth range, based on available cross-sectional data, the new
PEMEX map indicates that the true prospective area in the Veracruz Basin could be much
smaller, perhaps only 960 mi
2
. This yields a reduced estimate of 3 Tcf and 0.3 billion barrels of
risked technically recoverable shale gas and shale oil resources for the Maltrata Formation in
the Veracruz Basin, out of 21 Tcf and 7 billion barrels of risked shale gas and shale oil in-place.

June, 2013 II-24
5.4 Recent Activity

PEMEX plans to drill up to 10 shale exploration wells in the Veracruz Basin in the next
three years.
Figure II-13. Veracruz Basin Outline and Shale Gas and Shale Oil Prospective Area.

Source: ARI, 2013.
Figure II-14. Veracruz Basin Cross Section Showing the Maltrata Shale


June, 2013 II-25
REFERENCES
1
Salvador, A. and Quezada-Muneton, J.M., 1989. Stratigraphic Correlation Chart, Gulf of Mexico Basin. In The Geology of
North America, Vol. J, The Gulf of Mexico Basin. The Geological Society of America, 1991, p. 131-180.
2
Mello, U.T. and Karner, G.D., 1996. Development of Sediment Overpressure and Its Effect on Thermal Maturation:
Application to the Gulf of Mexico Basin. American Association of Petroleum Geologists, vol. 80, no. 9, p. 1367-1396.
3
Salvador, A., 1991a. Plate 3 : Structure at Base and Subcrop Below Mesozoic Marine Sections, The Gulf of Mexico Basin.
The Geology of North America, Vol. J, The Gulf of Mexico Basin. The Geological Society of America.
4
Guzman-Vega, M.A., Castro Ortiz, L., Roman-Ramos, J.R., Medrano-Morales, L., Valdez, L.C., Vazquez-Covarrrubias, E., and
Ziga-Rodriguez, G., 2001. Classification and Origin of Petroleum in the Mexican Gulf Coast Basin: an Overview. In Bartolini,
C., Buffler, R.T., Cant-Chapa, A. (Eds.), The Western Gulf of Mexico Basin: Tectonics, Sedimentary Basins and Petroleum
Systems. American Association of Petroleum Geologists, Memoir 75, pp. 127-142.
5
Hernandez-Mendoza, J.J., DeAngelo, M.V., Wawrzyniec, T.F., and Hentz, T.F., 2008. Major Structural Elements of the
Miocene Section, Burgos Basin, Northeastern Mexico. American Association of Petroleum Geologists, Bulletin, v. 92, p.
1479-1499.
6
Hernandez-Mendoza, J.J., Hentz, T.F., DeAngelo, M.V., Wawrzyniec, T.F., Sakurai, S., Talukdar, S.C., and Holtz, M.H., 2008.
Miocene Chronostratigraphy, Paleogeography, and Play Framework of the Burgos Basin, Southern Gulf of Mexico.
American Association of Petroleum Geologists, Bulletin, v. 92, p. 1501-1535.
7
Cuevas Leree, A., Muoz-Cisneros, R., Silva-Saldivar, P., De la Rosa, V.H., Rivas, E.O., Gonzlez, J., and Fernndez-Turner,
R., 2004. A New Upper Oligocene Oil Play in Southern Burgos Basin, Mxico. Search and Discovery Article #10075,
Adapted from extended abstract prepared for presentation at AAPG Annual convention, April 18-21, 2004.
8
Horbury, A. D., Hall, S., Gonzalez, F., Rodrguez, D., Reyes, A., Ortiz, P., Martnez, M., and Quintanilla, G., 2003. Tectonic
Sequence Stratigraphy of the Western Margin of the Gulf of Mexico in the Late Mesozoic and Cenozoic: Less Passive than
Previously Imagined. in C. Bartolini, R. T. Buffler, and J. Blickwede, eds., The Circum-Gulf of Mexico and the Caribbean:
Hydrocarbon Habitats, Basin Formation, and Plate Tectonics. American Association of Petroleum Geologists, Memoir 79, p.
184245.
9
Perez Cruz, G.A., 1993. Geologic Evolution of the Burgos Basin, Northeastern Mexico. Ph.D. thesis, Rice University, 577 p.
10
Ambrose, W. A., et al., 2005. Neogene Tectonic, Stratigraphic, and Play Framework of the Southern Laguna Madre-Tuxpan
Continental Shelf, Gulf of Mexico. American Association of Petroleum Geologists, Bulletin, v. 89, p. 725751.
11
Estrada, J., 2012. Gas de Lutita en Mxico: Planes, Potencial y Regulaciones. Analytica Energetica, S.P., August, 56 p.
12
PEMEX, Form 6-K, U.S. Securities and Exchange Commission, November 2012, p. 7.
13
Soegaard, K., Ye, H., Halik, N., Daniels, A.T., Arney, J., and Garrick, S., 2003. Stratigraphic Evolution of Latest Cretaceous
to Early Tertiary Difunta Foreland Basin in Northeast Mexico: Influence of Salt Withdrawal on Tectonically Induced Subsidence
by the Sierra Madre Oriental Fold and Thrust Belt. in C. Bartolini, R. T. Buffler, and J. Blickwede, eds., The Circum-Gulf of
Mexico and the Caribbean: Hydrocarbon Habitats, Basin Formation, and Plate Tectonics, American Association of Petroleum
Geologists, Memoir 79, p. 364394.
14
Eguiluz de Antuano, S., 2001. Geologic Evolution and Gas Resources of the Sabinas in Northeastern Mexico. In: Bartolini,
C., Buffler, R.T., Cant-Chapa, A. (Eds.), The Western Gulf of Mexico Basin: Tectonics, Sedimentary Basins and Petroleum
Systems. American Association of Petroleum Geologists, Memoir 75, pp. 241270.

June, 2013 II-26
15
Alsaab, D., Suarez-Ruiz, I., Elie, M., Izart, A., and Martinez, L., 2006. Comparison of Generative Capacities for Bitumen and
Gas Between Carboniferous Coals from Donets Basin (Ukraine) and a Cretaceous Coal from SabinasPiedras Negras Basin
(Mexico) During Artificial Maturation in Confined Pyrolysis System. International Journal of Coal Geology, vol. 71, p. 85-102.
16
Eguiluz, de Antunano, S., and Amezcua, N.T., 2003. Coalbed Methane Resources of the Sabinas Basin, Coahuila, Mexico.
in C. Bartolini, R. T., Buffler, and J. Blickwede, eds., The Circum-Gulf of Mexico and the Caribbean: Hydrocarbon habitats,
basin formation, and plate tectonics. American Association of Petroleum Geologists, Memoir 79, p. 395402.
17
Lawton, T.F., Vega,, F.J., Giles, K.A., and Rosales-Dominguez, C., 2001. Stratigraphy and Origin of the La Popa Basin,
Nuevo Leon and Coahuila, Mexico. In C. Bartolini, R.T. Buffler, and A. Cantu-Chapa, eds., The Western Gulf of Mexico
Basin: Tectonics, Sedimentary Basins, and Petroleum Systems. American Association of Petroleum Geologists, Memoir 75,
p. 219-240.
18
Hudson, S.M. and Hanson, A.D., 2010. Thermal Maturation and Hydrocarbon Migration Within La Popa Basin, Northeastern
Mexico, with Implications for Other Salt Structures. American Association of Petroleum Geologists, Bulletin, vol. 94, p. 273-
291.
19
PEMEX, Investor Presentation, November 2012, 43 p.
20
Salvador, A., 1991c. Plate 6 : Cross Sections of the Gulf of Mexico Basin. The Geology of North America, Vol. J, The Gulf
of Mexico Basin. The Geological Society of America.
21
Cantu-Chapa, A., 2003. Subsurface Mapping and Structural Elements of the Top Jurassic in Eastern Mexico (Poza Rica and
Tampico Districts). In C. Bartolini, R.T. Buffler, and J. Blickwede, eds. The Circum-Gulf of Mexico and the Caribbean:
Hydrocarbon Habitats, Basin Formation, and Plate Tectonics. American Association of Petroleum Geologists, Memoir 79, p.
51-54.
22
Escalera Alcocer, J.A., 2012. Potencial de Recursos no Convencionales Asociado a Plays de Aceite y Gas de Lutitas en
Mxico. ExpoForu PEMEX, August 1, 37 p. (in Spanish).
23
Prost, G. and Aranda, M., 2001. Tectonics and Hydrocarbon Systems of the Veracruz Basin, Mexico. In C. Bartolini, R.T.
Buffler, and A. Cantu-Chapa, eds., The Western Gulf of Mexico Basin: Tectonics, Sedimentary Basins, and Petroleum
Systems. American Association of Petroleum Geologists, Memoir 75, p. 271-291.
III. Australia
June, 2013
III.

SUMMA
W
Australia
and shal
geologica
Internatio
independ
Australia
Source: AR
a
AUSTR
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With geologi
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Figure I
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c and indu
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are now ent
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II-1. Australia
ustry conditi
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the US, sm
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s Assessed P
EIA/ARI W
III-1
ions resemb
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all independ
potential sh
plays by for
the table.
evelopment
Prospective S
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tries with co
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III. Australia
June, 2013
T
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II. Australia
June, 2013
Gas Resources

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Orga
Net
Inter
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Reservoir Pressure
AverageTOC (wt. %)
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Clay Content
Gas Phase
GIP Concentration (
Risked GIP (Tcf)
Risked Recoverable
ProspectiveArea (m
Thickness (ft)
Depth (ft)
Basin/Gross
ShaleForma
Geologic A
Depositional Env
Table III-1A. Austra
62
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mi
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vironment

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50 500
50 300
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00 8,000
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5% 1.15%
w Low
c. Gas Wet Gas
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1 36.5
7 9.1
neath-Epsilon-Murtere
Permian
Lacustrine
III-3
eservoir Propertie

3,525
500
300
0 7,000 - 13,000 7
10,000
Mod.
Overpress.
2.6%
2.00%
Low
Dry Gas A
100.1
264.7
79.4
ee (Nappamerri) R
EIA/ARI W
es and Resources
1,010 1,15
125 10
75 60
,000 - 9,200 8,000 - 1
8,000 9,00
Normal Norm
2.6% 2.6
0.85% 1.15
Low Low
Assoc. Gas Wet G
7.3 15.
4.4 10.
0.4 2.7
Cooper
(46,900mi
2
)
Roseneath-Epsilon-Mu
Perm
Lacus
World Shale Gas and
s (Page 1 of 3)
50 170
0 100
0 60
10,000 8,000 - 13,000
00 10,500
mal Normal
% 2.6%
5% 1.30%
w Low
Gas Dry Gas
.6 18.6
.8 1.9
7 0.5
urteree(Patchawarra)
mian
strine
Roseneath-Epsilon
Murteree(Tenappe
Permian
Lacustrine
200
225
135
0 5,000 - 6,500
5,500
Normal
2.6%
0.85%
Low
Assoc. Gas
10.1
1.2
0.1
e Assessment

n-
ra)
I

J

G

II. Australia
June, 2013

Gas Resources

R
e
s
e
r
v
o
i
r
R
e
s
o
u
r
c
e
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
Table
s

O
N
In
A
P
r
o
p
e
r
t
i
e
s
Reservoir Pressu
AverageTOC (wt
Thermal Maturity
Clay Content
R
e
s
o
u
r
c
e
Gas Phase
GIP Concentratio
Risked GIP (Tcf)
Risked Recovera
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
a
Basin/Gro
ShaleFo
Geolog
Depositional
e III-1B. Australian
M
Good
C
Organically Rich
Net
nterval 5
Average
Mo ure
t. %)
y (%Ro)
on (Bcf/mi
2
)
able(Tcf)
a(mi
2
)
oss Area
ormation
gic Age
Environment

n Shale Gas Rese
Maryborough
(4,290mi
2
)
dwood/Cherwell
Mudstone
Ca
Cretaceous U
Marine
1,540
1,250
250
,000 - 16,500 3,30
9,500
d. Overpress.
2.0%
1.50%
Low
Dry Gas D
110.7
63.9
19.2
III-4
rvoir Properties a

arynginia
. Permian
Marine
2,200 860
950 300
250 160
00 - 16,500 3,300 - 1
10,000 9,20
Normal Norm
4.0% 5.6%
1.40% 0.85%
Low Low
Dry Gas Assoc.
94.0 14.0
124.1 7.2
24.8 0.6
Perth
(20,000m
EIA/ARI W
and Resources (Co
0 1,030
0 300
0 160
5,100 9,200 - 16,500 3
0 11,000
al Normal
% 5.6%
% 1.15%
w Low
Gas Wet Gas A
0 58.9
36.4
7.3
i
2
)
Kockatea
L. Triassic
Marine
World Shale Gas and
ont) (Page 2 of 3)
14,900 19,620
1,000 1,300
250 250
3,300 - 7,200 7,200 - 10
5,200 8,800
Normal Norma
3.0% 3.0%
0.85% 1.15%
Low Low
Assoc. Gas Wet Ga
18.7 67.1
83.5 395.0
6.7 79.0
Canni
(181,000
Goldw
M. Ordo
Marin
)

0 22,860
0 1,300
250
0,500 10,500 - 16,500
0 13,500
al Normal
3.0%
% 1.40%
Low
as Dry Gas
109.2
0 748.7
149.7
ing
0mi
2
)
wyer
vician
ne
e Assessment

I

J

G

II. Australia
June, 2013

Gas Resources
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pre
AverageTOC
Thermal Matu
Clay Content
R
e
s
o
u
r
c
e
Gas Phase
GIP Concentr
Risked GIP (T
Risked Recov
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveA
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
a
Basin/
Shale
Geo
Deposition
Table
s

Organically Rich
Net
Interval 7,2
Average
L. A
essure
(wt. %)
urity (%Ro)
ration (Bcf/mi
2
)
Tcf)
verable(Tcf)
Area(mi
2
)
)
/Gross Area
eFormation
logic Age
nal Environment
e III-1C. Australian
2,260 1,950
115 115
85 85
200 - 10,500 2,300 - 3,
8,800 3,000
Normal Norma
3.0% 5.5%
1.15% 1.50%
Low Low
Wet Gas Dry Ga
22.8 29.1
19.3 21.3
3.9 4.3
Arthur Shale(DulcieTro
M. Cambrian
Marine

n Shale Gas Rese
0 3,220
65
50
,300 3,300 - 4,000 4,00
0 3,600
al Normal N
5.5%
% 0.85% 1
Low
as Assoc. Gas W
4.5
5.5
0.4
Georgina
(125,000mi
2
)
ough) L. Arthur Sha
M. C
M
III-5
rvoir Properties a

2,010 790
65 65
50 50
00 - 5,000 5,000 - 6,500
4,500 5,700
Normal Normal
5.5% 5.5%
1.15% 1.50%
Low Low
Wet Gas Dry Gas
17.5 26.7
13.2 7.9
2.6 1.6
ale(Toko Trough)
Cambrian
Marine
EIA/ARI W
and Resources (Co
2,650 2,130
450 450
100 100
3,300 - 5,000 5,000 - 7
4,200 6,000
Mod.
Overpress.
Mod
Overpre
4.0% 4.0%
0.85% 1.15%
Low Low
Assoc. Gas Wet G
7.2 30.7
9.6 32.7
1.0 8.2
M. Velkerr
Precamb
Marin
World Shale Gas and
ont) (Page 3 of 3)
0 2,480
0 450
0 100
7,000 7,000 - 8,700 3
0 7,500
.
ess.
Mod.
Overpress. O
% 4.0%
% 1.60%
w Low
Gas Dry Gas A
7 42.0
7 52.0
13.0
Beetalo
(14,000m
ri Shale
brian
ne
)
4,010 2,400
520 520
130 130
3,300 - 5,000 5,000 - 6,0
4,200 5,500
Mod.
Overpress.
Mod.
Overpres
2.5% 2.5%
0.85% 1.15%
Low Low
Assoc. Gas Wet Gas
11.7 37.1
23.5 44.5
2.3 11.1
oo
mi
2
)
L. KyallaS
Precambr
Marine
e Assessment

1,310
520
130
000 6,000 - 8,000
6,500
ss.
Mod.
Overpress.
2.5%
1.60%
Low
s Dry Gas
49.6
32.5
8.1
hale
rian
I

J
O

II. Australia
June, 2013
Oil Resources

R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir P
AverageTO
Thermal Ma
Clay Conten
R
e
s
o
u
r
c
e
Oil Phase
OIP Concen
Risked OIP
Risked Reco
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospective
Thickness (
Depth (ft)
B
a
s
i
c
D
a
t
a
Bas
Sha
Ge
Depositi
Table

Organically Rich
Net
Interval
Average
Pressure
OC (wt. %)
aturity (%Ro)
nt
ntration (MMbbl/mi
2
)
(B bbl)
overable(B bbl)
eArea(mi
2
)
(ft)
in/Gross Area
aleFormation
eologic Age
onal Environment
e III-2A. Australia
625 55
250 50
150 30
5,000 - 7,000 6,000 -
6,000 8,00
Mod.
Overpress.
Mo
Overp
2.6% 2.6
0.85% 1.15
Low Low
Oil Conde
22.5 14.
10.5 6.0
0.63 0.3
Permian
Lacustrine
Roseneath-Epsilo
Murteree(Nappame

an Shale Oil Reser
55 1,010
00 125
00 75
10,000 7,000 - 9,200
00 8,000
d.
ress.
Normal
% 2.6%
5% 0.85%
w Low
nsate Oil
.5 11.1
0 6.7
36 0.34
Perm
Lacus
on-
erri)
Roseneath-Eps
(Patcha
Coo
(46,90
III-6
rvoir Properties an

Rosen
1,150
100
60
8,000 - 10,000
9,000
Normal
2.6%
1.15%
Low
Condensate
3.0
2.1
0.10
mian
strine
silon-Murteree
awarra)
oper
00mi
2
)
EIA/ARI W
nd Resources (Co
neath-Epsilon-Murteree
(Tenappera)
Permian
Lacustrine
200
225
135
5,000 - 6,500
5,500
Normal
2.6%
0.85%
Low
Oil
21.9
2.6
0.13
World Shale Gas and
ont) (Page 1 of 2)
e
860 1
300
160
3,300 - 15,100 9,200
9,200 1
Normal N
5.6% 5
0.85% 1
Low
Oil Con
18.9
9.8
0.39
Kockatea
L. Triassic
Marine
Perth
(20,000mi
2
)

1,030 14,900
300 1,000
160 250
0 - 16,500 3,300 - 7,200
1,000 5,200
ormal Normal
5.6% 3.0%
.15% 0.85%
Low Low
ndensate Oil
6.1 41.1
3.8 183.7
0.15 7.35
M. Or
M
Go
)
Ca
(181,0
e Assessment

19,620
1,300
250
0 7,200 - 10,500
8,800
Normal
3.0%
1.15%
Low
Condensate
10.2
60.0
2.40
rdovician
Marine
ldwyer
anning
000mi
2
)
I

J

O

II. Australia
June, 2013

Oil Resources
Reservoir
Average T
Thermal M
Clay Cont
Oil Phase
OIP Conce
Risked OI
Risked Re
Prospectiv
Thickness
Depth (ft)
Ba
Sh
G
Deposi
Table
Organically R
Net
Interval
Average
Pressure
TOC (wt. %)
Maturity (%Ro)
ent
entration (MMbbl/m
P (B bbl)
ecoverable (B bbl)
ve Area (mi
2
)
s (ft)
asin/Gross Area
hale Formation
Geologic Age
itional Environment
e III-2B. Australia
L. Arthur Sha
(Dulcie Troug
M. Cambrian
Marine
2,260
Rich 115
85
7,200 - 10,50
8,800
Normal
3.0%
1.15%
Low
Condensate
3.5
2.9
0.12
mi
2
)
t

an Shale Oil Reser
ale
gh)
n
3,220
65
50
00 3,300 - 4,000
3,600
Normal
5.5%
0.85%
Low
e Oil
14.7
17.7
0.71
L. Arthur Shal
M. C
M
Georgina
(125,000mi
2
)
III-7
rvoir Properties an

2,010
65
50
4,000 - 5,000
4,500
Normal
5.5%
1.15%
Low
Condensate
5.2
3.9
0.16
le (Toko Trough)
ambrian
arine
EIA/ARI W
nd Resources (Co
2,650
450
100
3,300 - 5,000 5,0
4,200
Mod.
Overpress. Ov
4.0%
0.85%
Low
Oil Co
16.7
22.1
1.11
M. Velkerri S
Precambria
Marine
World Shale Gas and
ont) (Page 2 of 2)
2,130 4,0
450 5
100 1
000 - 7,000 3,300
6,000 4,2
Mod.
verpress.
Mo
Overp
4.0% 2.5
1.15% 0.8
Low Lo
ondensate O
5.3 27
5.7 54
0.28 2.
Shale
an
Beetaloo
(14,000mi
2
)

010 2,400
20 520
30 130
- 5,000 5,000 - 6,0
200 5,500
od.
press.
Mod.
Overpres
5% 2.5%
85% 1.15%
ow Low
Oil Condensa
7.1 8.9
4.4 10.7
.72 0.54
Precambrian
Marine
L. Kyalla Shale
e Assessment

000
ss.
ate
III. Australia

June, 2013

1. C
1.1 In
S
Australia
basin, th
prospect
hydraulic
H
key risk
Lacustrin
respond
shales. In
1.2 G
T
Carbonife
Following
continued
km of Ju
conventio
E
major de
(including
faulted s
Figure III
T
overpres
basin to
Patchaw
for shale
structura
a
COOPER B
ntroduction
Straddling th
s main ons
he Nappam
ive depth. T
c fracturing t
However, wh
remains in
ne shales o
to hydrauli
n addition, h
Geologic Se
The Cooper
erous to M
g an episod
d to gently s
urassic to T
onal sandsto
Extending ov
eep troughs
g the Arrabu
structural hig
I-3.
3
,
4

The prospect
sured. Dept
13,000 fee
arra troughs
e developme
l deformatio
ASIN
n
e South Au
shore oil an
merri Trough
The Cooper
hat could be
hile overall t
that the sha
often have h
c stimulatio
high CO
2
volu
etting
Basin is a
Middle Trias
e of regiona
subside. Th
ertiary delta
one reservoi
ver a total a
s with shale
ury Trough)
ghs from w
tive areas wi
th to the Per
et in the ce
s, as well as
ent. Furthe
on is confined
ustralia and
d gas supp
h contains
Basin alrea
e used to dev
the Cooper
ales were d
higher clay
on treatment
umes have b
a Gondwan
ssic strata,
al uplift and
e Paleozoic
aic deposits
irs.
2

area of abo
e gas and
and Tenapp
hich Permia
ithin the Coo
rmian horizo
enter. Near
s the Tenapp
ermore, rela
d largely to u
EIA/ARI W
III-8
Queenslan
ly region fo
thick, over
ady has serv
velop the pr
Basin appe
deposited in
contents w
ts, in comp
been noted
a intracrato
which incl
erosion dur
c sequence w
of the Erom
out 130,000
shale oil p
pera, Figure
an shale-bea
oper Basins
on ranges fro
rly the entir
pera Trough
tively little f
uplifted ridge
World Shale Ga
nd border, t
r the past s
rpressured
vice industry
rospective sh
ears favorab
a lacustrine
with uncertai
parison with
in the deepe
onic basin c
ude prospe
ring the late
was unconfo
manga Basi
km
2
, the C
potential -
e III-2. Thes
aring strata
s troughs are
om 5,000 fe
re areal ext
h in the sout
faulting occ
es, Figure II
s and Shale Oil
he Cooper
several deca
and organi
y capacity fo
hale reservo
ble for shale
e (not marin
inty on how
lower clay
er troughs in
containing n
ective Perm
e Triassic, th
ormably ove
in which co
Cooper Basi
- Nappame
se troughs a
have large
e large, therm
et at the sou
tent of the
th, appear d
urs within t
I-3.
Resource Asses
Basin has
ades.
1
Withi
c-rich shale
r well drilling
oirs in this ba
e developme
ne) environm
w the shales
y content m
n this basin.
non-marine
mian-age sh
he Cooper B
rlain by up t
ntain the ba
n contains
erri, Patchaw
are separate
ely been ero
mally mature
uthern end o
Nappamerri
depth-prospe
hese trough
ssment

been
n the
es at
g and
asin.
ent, a
ment.
s will
marine
Late
hales.
Basin
to 1.3
asins
three
warra
ed by
oded,
e and
of the
i and
ective
hs as
III. Australia

June, 2013

a
Figure III-2: Majo or Structural E
EIA/ARI W
III-9
Elements of th
World Shale Ga
e Southern Co
s and Shale Oil
ooper Basin.
Resource Assesssment

III. Australia

June, 2013

T
sandston
interbedd
Carbonife
Nappame
rocks, th
Group lik
Nappame
T
drilling a
shows a
termed R
1.3 R
T
Cooper B
of dark o
TOC of t
T
averages
Epsilon
carbonac
deposited
a
The stratigra
ne oil and g
ded with coa
erous to La
erri Group,
e Gidgealpa
kely came fr
erri Group a
The most pro
nd higher T
a stratigraph
REM) sequen
Reservoir P
The Murteree
Basin, becom
organic-rich s
he Murteree
The Rosenea
s 120 feet t
Fm consists
ceous shale
d in a fluvial
Figure III-3
phy of the C
gas reservo
al deposits.
ate Permian
both of whi
a Group is m
rom its multi
are low in TO
ospective sh
OCs, are th
hic cross-se
nce in the N
Properties
e Shale is a
ming as thic
shale, siltsto
e Shale aver
ath Shale, l
hick, reachi
s primarily o
and coal.
-deltaic envi
3. Seismic Sec
Cooper Bas
oirs are foun
These form
n Gidgealpa
ch were de
more prospec
ple, thin and
OC.
hales in the
e Early Perm
ection of th
appamerri T
(Prospecti
widespread
k as 250 fee
one and fine
ages 2.5% b
less widesp
ng 330 feet
of low-perm
The Epsilon
ironment.
6

EIA/ARI W
III-10
ction Across th
in is shown
nd in the P
mations were
Group and
posited in n
ctive. Most
d discontinu
e Gidgealpa
mian Rosen
e Roseneat
Trough.
ive Area)
, shaley form
et in the Nap
e-grained san
based on da
pread than t
t thick in the
meability (0.1
n, averaging
World Shale Ga
he Merrimelia
in Figure I
Patchawarra
e sourced by
d the Late
non-marine s
of the gas g
ous coal se
Group, wit
neath and M
th, Epsilon,
mation typica
ppamerri Tro
ndstone, be
ata from seve
the Murteree
e Nappame
1 to 10 mD
g about 175
s and Shale Oil
a Ridge
II-4. Conve
and Toolac
y two compl
Permian to
settings. O
generated by
eams, since
h oil and ga
Murteree sha
and Murte
ally 150 feet
ough. The M
coming san
en wells.
e due to er
erri Trough.
D) quartzose
feet thick in
Resource Asses
entional and
chee format
lexes - - the
o Middle Tri
Of the two so
y the Nappa
the shales i
as shows d
ales.
5
Figure
eree (collec
t thick acros
Murteree con
dier to the s
rosion on u
The interve
e sandstone
n drill cores,
ssment

tight
tions,
e Late
iassic
ource
amerri
in the
during
e III-5
ctively
ss the
nsists
south.
plifts,
ening
e with
, was
III. Australia

June, 2013

a
Fi
Source: So
igure III-4. Stra
outh Australia D
atigraphy of th
MER, 2010
EIA/ARI W
III-11
he Cooper Ba
World Shale Ga
asin Permian-A
s and Shale Oil
Age Shales

Resource Asses
ssment

III. Australia

June, 2013

Source: Me

T
averages
150 feet
the Patch
prospect
the Tena
T
light grav
mainly o
content is
this lithol
a
npes, 2012
The organic-
s about 500
in the oil pr
hawarra Tro
ive area, wit
appera Troug
The REM sou
vity oil, rich
of quartz an
s relatively l
ogy appears
Figure III-5. S
-rich gross
feet, with a
rospective a
ough, averag
th a modera
gh averages
urce rocks a
in paraffin
nd feldspar
ow (20%; pr
s brittle and
Stratigraphic
thickness o
net pay of 3
rea.
7
The g
ging 100 fee
ate net to gro
s 225 feet.
re primarily
. Initial min
(50%) and
redominately
could respo
EIA/ARI W
III-12
Cross-Section
of the REM
300 feet in th
ross organic
et in the gas
oss ratio. T
Type III kero
neralogical
carbonate
y illite).
8
In s
ond well to hy
World Shale Ga
n in the Coope
M sequence
he gas prosp
c-rich REM
prospective
The gross or
ogens. The
data indicat
(30%; main
spite of the l
ydraulic frac
s and Shale Oil
er Basin
in the Nap
pective area
sequence is
e area and 1
rganic-rich R
y have gene
te that thes
nly iron-rich
acustrine de
cturing.
Resource Asses
ppamerri Tr
and a net p
s much thinn
125 feet in th
REM sequen
erated mediu
e shales co
h siderite).
epositional o
ssment

rough
pay of
ner in
he oil
nce in
um to
onsist
Clay
origin,
III. Australia

June, 2013

T
Bottomho
is even h
basemen
lower but
T
Nappame
1.0% are
Trough,
gas/cond
Nappame
R
However
with pres
levels of
Formatio
from 8%
1.4 R
T
by the in
thermal m
the REM
between
C
Rosenea
concentr
thickness
the shal
Patchaw
prospect
a
Temperature
ole temperat
hotter, with a
nt. The Patc
t still elevate
The thermal
erri and Pa
e observed a
suggesting
densate pro
erri and Patc
Regional hyd
r, the Nappa
ssure gradie
carbon diox
on (the centr
to 24% (ave
Resource A
The prospect
ntersection o
maturity mod
M section of
0.7% and 1
Completable
ath, Epsilon
rations of 8
s, moderate
e gas reso
arra Trough
ive area of t
gradients
ture at depth
a temperatu
chawarra Tr
ed 2.02 F/10
maturity o
atchawarra tr
at the shallo
that the RE
ospective ar
chawarra tro
drostatic pre
amerri Troug
ents of up to
xide are also
ral portion o
erage 15%).
Assessmen
tive areas fo
of a minimu
deling), vitrin
f 50 feet. T
.0% and a m
shale interv
, and Murte
8 to 100 B
TOC and ov
ource conce
are much le
he Tenappa
in the Coop
hs of 9,000 f
re gradient
rough, which
00 ft temper
of the Perm
roughs is ga
ower, southe
EM section
rea exists b
oughs.
essure grad
gh becomes
0.7 psi/ft re
o common in
of the REM s
10

nt
or shale gas
um depth of
nite reflectan
The prospec
minimum thic
vals in the
eree (REM)
Bcf/mi
2
in th
verpressurin
entrations in
ess, from 16
ara Trough is
EIA/ARI W
III-13
per Basin a
feet average
of up to 3.4
h has a sed
rature gradie
mian REM s
as prone (R
o
ern ends of
is oil prone
between the
ients are th
s overpressu
ecorded in th
n the Cooper
sequence) c
developme
6,500 feet
nce greater
ctive areas f
ckness of th
dry and we
) formations
he Nappame
ng, but reduc
n the dry a
6 to 19 Bcf/m
s 22 million b
World Shale Ga
are quite hi
e about 300
42F/100 ft, d
imentary-me
ent.
section in t
o
>1.3%). R
each trough
e in these
e oil prone
he norm in
ured at dep
he deepest p
r Basin. Ga
contains ele
ent in the Co
(top of the
than 1.0%,
for shale o
e REM sect
et gas prosp
s have est
erri Trough
ced by 15%
and wet gas
mi
2
.

The reso
barrels/mi
2
.
s and Shale Oil
igh, averagi
F. The Na
due to its ra
etamorphic
the deeper
R
o
values be
h and also i
areas. A m
and dry g
most of the
pths of 9,000
portions of t
as produced
evated CO
2
,
ooper Basin
gas window
and a minim
il are define
ion of 50 fee
pective area
imated sha
, benefitting
for CO
2
con
s prospectiv
ource conce
Resource Asses
ing 2.55F/1
appamerri Tr
adioactive gr
basement, h
portions o
etween 0.7%
n the Tenap
modest size
as areas in
e Cooper B
0 to 12,000
he trough.
9

from the Ep
typically ran
area are de
w, as define
mum thickne
ed by R
o
va
et, Figure III-
as containing
le gas reso
g from favo
ntent. In con
ve areas o
entration in t
ssment

100ft.
rough
ranite
has a
of the
% and
ppera
e wet
n the
Basin.
feet,
High
psilon
nging
efined
ed by
ess of
alues
-6.
g the
ource
orable
ntrast,
of the
he oil
III. Australia

June, 2013

T
estimated
troughs i
is 325 T
associate
Cooper B
bbls, Tab

a
Figure II
The total sha
d at 7,235 m
n the Coope
Tcf, with a
ed gas in the
Basin is 29
ble III-2A.
I-6. Southern
ale gas and
mi
2
, covering
er Basin. N
risked, tech
e shale oil p
billion barre

Cooper Basin
d shale oil
major portio
et of 15% C
hnically reco
prospective a
els, with a ris
EIA/ARI W
III-14
n Prospective
prospective
ons of the N
CO
2
content,
overable sh
area, Table I
sked, techni
World Shale Ga
Shale Gas an
area for th
Nappamerri,
the estimat
hale gas res
III-A. The ri
ically recove
s and Shale Oil
nd Shale Oil A
he Permian
Patchawarra
ted risked sh
source of 9
sked shale o
erable resou
Resource Asses
reas
REM secti
a and Tenap
hale gas in-
93 Tcf, inclu
oil in-place i
urce of 1.6 b
ssment

on is
ppera
place
uding
in the
billion
III. Australia

June, 2013

1.5 R
T
Energy,
evaluatio
B
Trough.
Encounte
depth of
shows.
more pla
for placin
S
of the N
planning
has unde

a
Recent Act
The Cooper
Senex, Drill
on programs
Beach has d
These we
er-1, though
11,850 feet
Beach drille
anned for the
ng two horizo
Senex has dr
Nappamerri
a 12 well dr
ertaken deta
ivity
Basin is Au
Search Ene
underway.
rilled two ve
ells each te
t to be Aust
and penetra
ed an additio
e rest of the
ontal wells to
rilled five ve
Trough with
rilling progra
ailed shale co

stralias larg
ergy and Sa
ertical test w
sted at abo
tralias first c
ated 1,290 f
onal three v
year. The te
o be drilled i
ertical test w
h reports of
am for 2012/
ore studies a
EIA/ARI W
III-15
gest onshore
ntos have a
wells in the d
out 2 MMcf
commercially
feet of the R
ertical test w
est wells wil
n late 2012.
wells in the T
f liquid hydr
/13. DrillSea
along with a
World Shale Ga
e oil and ga
active shale
deep, centra
fd gas after
y viable sha
REM sequen
wells in the
l be studied
.
Tenappera T
rocarbon pr
arch Energy
cquiring 425
s and Shale Oil
as productio
gas and oi
al portion of
r hydraulic
ale well, was
ce, reporting
first half of
to identify t
Trough to the
roduction.
y, in a JV wit
5 mi
2
of 3D s
Resource Asses
n region. B
l exploration
f the Nappa
stimulation.
s drilled to a
g continuous
2012, with
he best loca
e south and
The compa
th the BG G
seismic.
ssment

Beach
n and
amerri
The
a total
s gas
three
ations
d east
any is
roup,
III. Australia

June, 2013

2. M
2.1 In
T
two pote
highly un
large ant
without c
2.2 G
T
covers a
significan
setting o
Basin, Fi
marine s
is the G
strata, in
2.3 R
T
unit in th
basin.
conglome
sub-units
Figure III
minor sh
silty. Ca
interval i
15,000 fe
window
black sh
projected
mature (R
a
MARYBORO
ntroduction
This small ba
ential gas sh
nexplored wi
ticlines occu
conventional
Geologic Se
The Marybor
an onshore
nt erosion,
of the basin.
igure III-8.
12

ediments, is
rahams Cre
cluding the m
Reservoir P
The Marybor
e Maryborou
The unit c
erate, limes
s are the Go
I-9. These s
hales and sil
alcite veins
is approxima
eet in the tr
(R
o
> 1.5%)
ale about 5
d 17,000 fee
R
o
>1.5%).
OUGH BAS
n
asin in coas
hale targets
th only five
ur within the
discoveries
etting
ough Basin
area of 4,3
occurred d
. Two main
The Duckin
s not conside
eek Formati
marine-depo
Properties
rough Forma
ugh Basin.
consists pr
tone and co
oodwood Mu
sub-units ha
ltstones. Th
are commo
ately 2,000
roughs. TO
). The und
00 feet thic
et deep in t
The net org
SIN
stal Queensl
within the C
conventiona
onshore po
s.
11

is a half-gra
300-mi
2
, Fig
uring the C
n deposition
nwilla Group
ered prospe
on which c
osited Maryb
(Prospecti
ation (Neoco
Up to 8,500
imarily of
oal. Within
udstone, the
ave been de
e mudstone
on in the lo
feet thick (
OC averages
derlying Che
ck (gross) an
the troughs.
anic-rich pay
EIA/ARI W
III-16
land, locate
Cretaceous
al oil and gas
ortion of the
aben bound
gure III-7.
Cretaceous-P
nal sequenc
p, which con
ective for sha
contains Late
borough For
ive Area)
omian-Aptian
0 feet thick,
mudstones,
the Marybo
e Woodgate
escribed as a
es are light t
ower section
(gross) with
s 2.0% and
erwell Mudst
nd ranges f
. TOC ave
y in the two
World Shale Ga
d about 250
Maryboroug
s exploration
basin, all of
ded on the w
Major foldi
Palaeogene
ces were ex
ntains Late T
ale oil or ga
e Jurassic
rmation.
n) appears
it is the only
siltstone a
orough Form
e Siltstone, a
a monotono
to dark grey
n.
13
The G
a depth of
the shale is
tone (Shale
from 8,000 f
erages 2.0%
shale interv
s and Shale Oil
0 km north
gh Formatio
n wells drille
f which have
west by the
ng and fau
e establishin
xamined in t
Triassic to m
s. Overlying
to Cretaceo
to be the p
y definitely m
and sandst
mation, the m
and the Che
ous series of
y, slightly ca
oodwood M
f 5,000 feet
s within the
) interval co
feet deep o
% and the s
vals is estima
Resource Asses
of Brisbane
on. The bas
ed to date. T
e been drille
Electra Fau
ulting, along
ng the struc
the Marybor
mid-Jurassic
g the Duckin
ous (Neocom
rimary shale
marine unit i
tone with m
most prospe
erwell Muds
f mudstones
alcitic, pyritic
Mudstone (S
t on anticlin
dry gas ma
onsists main
on anticlines
hale is ther
ated at 250 f
ssment

e, has
sin is
Three
ed but
ult. It
with
ctural
rough
non-
nwilla
mian)
e gas
in the
minor
ective
stone,
s with
c and
Shale)
es to
aturity
nly of
s to a
rmally
feet.
III. Australia

June, 2013

a
Figure III-7. M Maryborough
EIA/ARI W
III-17
Basin Prospe
World Shale Ga
ective Shale G
s and Shale Oil
Gas Area
Resource Asses

ssment

III. Australia

June, 2013

Figu
a
re III-9. Cross
Figure I
-Section of th
III-8. Stratigrap
e Maryboroug
EIA/ARI W
III-18
phy of the Ma
gh Basin and t
World Shale Ga
ryborough Ba
the Cretaceou
s and Shale Oil
asin
us Maryboroug
Resource Asses
gh Formation
ssment

.
III. Australia

June, 2013

2.4 R
A
exist. W
Additiona
sufficient
T
an estim
in the M
gas reso
is dry-ga
2.5 R
B
permits i
potential
well drilli

a
Resource A
ARI evaluate
We estimate
al areas in th
t data for a r
The basal sh
ated gas in-
aryborough
urce of 19 T
s prone and
Recent Act
Blue Energy
in the north
of shale ga
ng location.
1
Assessmen
d only the n
that a 1,54
he poorly co
rigorous reso
ales of the M
-place conce
Basin is es
Tcf, Table III
thus not pro
ivity
Ltd., in a J
ern portion
as in this ba
14

nt
northern por
40-mi
2
area
nstrained so
ource assess
Maryboroug
entration of
stimated at 6
-1B. With its
ospective fo
JV with Bea
of the Mary
sin target w
EIA/ARI W
III-19
tion of the M
could be p
outhern half
sment.
h Formation
111 Bcf/mi
2
64 Tcf, with
s high therm
r shale oil.
ach Energy,
yborough Ba
with a view to
World Shale Ga
Maryborough
prospective
of the basin
n (Cherwell a
. The risked
a risked, te
mal maturity,
is awaiting
asin. The co
oward deter
s and Shale Oil
h Basin whe
for shale g
may be pro
and Goodwo
d gas in-pla
echnically re
the Marybo
g award of t
ompanies a
rmining a po
Resource Asses
ere geologic
as developm
ospective bu
ood shales)
ce for the s
ecoverable s
orough Form
three explor
re assessin
ossible shale
ssment

c data
ment.
t lack
have
hales
shale
mation
ration
g the
e test
III. Australia

June, 2013

3. P
3.1 In
T
southwes
Permian
3.2 G
T
that appe
covering
large, de
Harvey R
T
thickest a
wide, the
sediment
northern
window.
11.
16

A
of the Pe
within the
of associ
Formatio
Mondarra
maturity
isolated r

a
PERTH BAS
ntroduction
The Perth Ba
st of Wester
Carynginia
Geologic Se
The Perth Ba
ear favorabl
an area of
eep sedimen
Ridge structu
The Dandara
and most pr
e Dandarag
tary rocks.
area and th
The area is
Approximatel
erth Basin, r
e Dandaraga
iated oil in c
on). Natura
a, Yardarino
and higher
readings of 4
SIN (WEST
n
asin, an activ
rn Australia.
and the Tria
etting
asin is a nort
e for shale
approximate
ntary sub-ba
ural high, Fig
agan Trough
rospective s
gan Trough
Much of the
he adjoining
s not structu
y 100 petro
resulting in
an Trough.
conventional
al gas reco
o, Woodada
proportions
4.1% in the W
TERN AUST
ve petroleum
The basin c
assic Kockat
th-northwest
oil and gas
ely 20,000 m
asins, the Da
gure III-10.
15
, a large syn
hale gas for
holds as m
e Dandaraga
Beagle Rid
rally comple
leum explor
the discove
Proved rese
reservoirs (
overed from
and Whiche
of gas-pron
Woodada-1
EIA/ARI W
III-20
TRALIA)
m producing
contains two
ea.
t trending ha
s developme
mi
2
. The on
andaragan a

ncline in nor
rmations. S
much as 9
an Trough is
dge appear t
ex but does h
ration wells h
ry of six con
erves to date
Upper Perm
the deepe
er Range) te
ne organic m
well and 3.9
World Shale Ga
g region, ext
o main organ
alf-graben w
ent. About h
nshore portio
and Bunbur
rthern Perth
Some 300 m
miles of S
s too deep fo
to be within
have some s
have been d
nventional n
e total about
mian Dongar
er Permo-Tr
ends to be d
matter. CO
2
9% in the Mo
s and Shale Oil
ends on- an
nic-rich shal
with relatively
half of the b
on of the ba
ry troughs, s
Basin, conta
miles long an
Silurian to e
or shale dev
the prospec
significant fa
drilled in the
natural gas f
t 600 Bcf wit
ra Sandstone
riassic rese
dry, reflectin
2
is generally
ondarra-1 w
Resource Asses
nd offshore i
e formations
y simple stru
basin is ons
asin contains
separated b
ains the dee
nd up to 30
early Cretac
velopment, b
ctive shale d
aulting, Figu
e onshore po
fields, all loc
th small amo
e and Beeke
ervoirs (Don
ng higher the
y low, apart
well.
ssment

n the
s, the
ucture
shore,
s two
by the
epest,
miles
ceous
but its
depth
re III-
ortion
cated
ounts
eeper
gara,
ermal
from
I

J

S
II. Australia
June, 2013
Source: ARI, 2013.
Figure III-10. P

I
Perth Basin Prosp

III-21
pective Shale Gas
Source: ARI, 20
EIA/ARI W
s and Shale Oil Are
013.
World Shale Gas and

eas
d Shale Oil Resourcee Assessment

III. Australia

June, 2013

T
formation
coals, wh
enter the
T
Permian
Shale); b
Triassic
prospect
O
include t
(Yarraga
South Pe
a
Fig
Tight sandsto
ns. These re
hich modelin
e gas window
The sedimen
largely argil
b) Upper Pe
to Lower
ive Kockatea
Other marine
he Triassic W
dee) Forma
erth Formatio
gure III-11. The
one reservo
eservoirs we
ng indicates
w toward the
ntary sequen
llaceous gla
ermian nonm
Cretaceous
a Shale) dep
e shales in t
Woodada a
ation (lacust
on (immatur
e Woodada-1 D
oirs in the P
ere sourced
are within th
e southeast.
nce in the P
ciomarine to
marine and
s nonmarine
posited in a
the Perth Ba
nd Jurassic
trine origin,
re, offshore o
EIA/ARI W
III-22
Deep Well Tes
Perth Basin
by the Trias
he oil window
Perth Basin
o deltaic roc
shoreline s
e to shallo
predominan
asin that we
Cadda form
located onl
only).
World Shale Ga
sted the Caryn
include the
ssic and Per
w in the far
comprises t
cks (including
siliciclastics
ow marine
ntly regressiv
ere evaluate
mations (too
y in the off
s and Shale Oil
nginia Shale
e Eneabba
mian source
north of the
three succe
g the prospe
to shelf car
siliciclastics
ve phase, Fi
ed but reject
lean), the J
fshore), and

Resource Asses
and Yarrag
e rock shales
e Perth Basin
ssions: a) L
ective Caryn
rbonates; an
s (including
igure III-12.
1
ted as pros
Jurassic Par
d the Cretac
ssment

gadee
s and
n and
Lower
nginia
nd c)
g the
7

pects
melia
ceous
III. Australia

June, 2013

Figure III-

a
-12. Stratigrap phy of the Pert

th Basin Show
Cary
EIA/ARI W
III-23
wing the Prosp
ynginia Shales
World Shale Ga
pective Lower
s
s and Shale Oil
r Triassic Koc
Resource Asses
ckatea and Per

ssment

rmian
III. Australia

June, 2013

3.3 R
T
the main
sandston
Basin, re
most org
Figure II

C
petroleum
distinct o
beds. T
environm
sampled
(Type III)
a
Reservoir P
The Lower Tr
hydrocarbo
ne and limes
eaching a m
anic-rich po
II-13. Structura
Core samples
m exploratio
organic-rich
These sedim
ment during
from this we
) kerogen.
20

Properties
riassic Kock
on seal in the
stone. The
maximum thic
rtion of this
al Cross-Sect
Caryngini
s of the Hov
on well, prov
zone of foss
ents were d
the earliest
ell ranged fr
(Prospecti
katea Shale
e basin. It co
Kockatea S
ckness of 3
unit (Hovea
ion of the Pert
a Shales at Pr
vea Member
vide data on
siliferous da
deposited at
stage of a
rom 2.31% t
EIA/ARI W
III-24
ive Area)
is considere
onsists of da
Shale interva
3,500 ft in th
Member) ha
th Basin Show
rospective 5,0
r of the Kock
reservoir qu
ark grey mud
t a relatively
marine trans
o 7.65% (av
World Shale Ga
ed the prima
ark shale, m
al thickens t
he Woolmull
as recorded
wing 2,300 ft t
000 9,200 ft D
katea Shale
uality.
19
The
dstone, sand
y low paleo-
sgression.
verage 5.6%
s and Shale Oil
ary oil source
micaceous sil
to the south
la-1 well, Fi
TOC values
thick Kockatea
Depth
e, obtained f
e base of thi
dy siltstone
-latitude in a
TOC of the
%), consisting
Resource Asses
e-rock as we
ltstone and m
within the
gure III-13.
s up to 8%.
18
a and 820 ft T
from the Hov
is unit conta
and shelly s
a shallow m
e Kockatea S
g of inertinite
ssment

ell as
minor
Perth
The
8

hick
vea-3
ains a
storm
marine
Shale
e-rich
III. Australia

June, 2013

T
ranged f
Hovea M
but repor
Dongara
of the Be
4,750 ft d
T
northern
Limited r
unit. A d
thin inter
O
conventio
Woodada
2.5%) fro
W
averages
prone, th
rocks are
shale is p
G
5.5C/10
2.5C/10
scatter p
3.4 R
T
northern
thick, dee

a
The clay con
from 24% to
Member of th
rted discour
Trough, bu
eagle Ridge
deep Kockat
The Permian
Perth Basin
recently repo
deeper-wate
rbeds of silts
Overlying the
onal gas res
a field, seal
om a 8,000 f
While TOC va
s 4%. The k
he Caryngin
e less matu
partly replac
Geothermal
0 m, but t
0 m). Vitrin
robably caus
Resource A
The prospect
portion of th
ep and therm
ntent of the
o 42% (aver
he Kockatea
agingly high
t less matur
e. CO
2
and
tea Shale zo
n Carynginia
n. The Cary
orted encour
er shale me
stone, sands
e Carynginia
servoirs. Co
ed by the o
ft Caryngia F
alues of up t
kerogen is T
ia Shale is
re on the D
ced by shallo
gradients in
the thermal
nite reflectan
sed by sube
Assessmen
tive areas o
he Perth Bas
mally mature
e Hovea Me
rage 33%).
a Shale in th
h clay conten
re and possi
N
2
content
one in the Do
a Shale, a s
ynginia Shal
raging organ
mber occurs
tone, and lim
a Shale is a
onventional
overlying Koc
Fm zone in t
to 11.4% ha
Type III, dom
in the dry g
Dongara Sad
ow-water, lim
n the Perth
gradient in
nce data sh
ertinite and b
nt
f the Beagle
sin, where th
e, Figure III-1
EIA/ARI W
III-25
ember of the
Separately
he conventio
nt. The Koc
ibly oil-prone
s tested low
ongara-24 w
shallow -ma
le conforma
nic-shale cha
s near the b
mestone.
a shallow-w
gas is prod
ckatea Shal
he Elegans-
ave been rec
minated by i
gas window
ddle and the
mestone facie
h Basin can
n the Dand
ow poor rel
bitumen supp
e Ridge and
he Caryngin
10.
World Shale Ga
e Kockatea
y, AWE core
onal Redbac
ckatea is the
e on the Do
w (0.5% and
well.
21

arine deposi
ably underlie
aracteristics
base of the
water, shelf
duced from t
le. CO
2
and
-1 well.
corded, the T
nertinite der
over most
e flanks of th
es.
n be elevat
daragan Tro
ationship w
pression.
d Dandaraga
nia and Kock
s and Shale Oil
Shale in th
ed a high-T
ck-2 explorat
ermally matu
ongara Sadd
d 0.4%, resp
it present o
es the Kocka
s for this 800
Carynginia
limestone u
the Caryngi
d N
2
tested
TOC in the C
rived from la
of the Perth
he Beagle R
ted, ranging
ough is les
ith depth, w
an Trough a
katea Shale
Resource Asses
he Hovea-3
TOC, 160 ft
tion well in 2
ure for gas i
dle and the f
pectively) fr
over much o
atea Shale.
0 to 1,100 ft
Shale, inclu
unit that con
nia Limesto
fairly low (a
Carynginia S
and plants.
h Basin. So
Ridge, wher
g from 2.0
ss extreme
with extreme
are located i
source rock
ssment

3 well
thick
2010,
n the
flanks
om a
of the
AWE
thick
uding
ntains
ne at
about
Shale
Gas-
ource
re the
C to
(2to
data
n the
ks are
III. Australia

June, 2013

A
Kockatea
vitrinite r
prospect
ft, appea
dry gas
Basin ma
T
2,200-mi
technical
T
mi
2
wet g
in-place
1B. Sh
barrels/m
area. Ri
technical
3.5 R
In
exploratio
have hig
clay (val
7,780 an
fractured
estimated
Shale.
22

a
An estimated
a Shale, de
reflectance (
ive area, de
ars prospecti
prospective
ay be prospe
The Permian
2
dry gas p
lly recoverab
The Triassic
gas prospec
of 36 Tcf, w
hale oil reso
mi
2
in the oil
isked shale
lly recoverab
Recent Act
n April 2010
on well in n
h clay conte
ue not repo
nd 7,960 ft.
d in August 2
d a total 13
d 1,030-mi
2

efined using
(R
o
of 1.0%
efined by R
o

ve for shale
area of 2,2
ective but ins
n Carynginia
rospective a
ble shale ga
Kockatea Sh
ctive area. I
with a risked
ource conce
prospective
oil in-place
ble shale oil/
ivity
, AWE Limit
northern Per
ent. Howeve
orted), 1 to 4
Zones in th
2012, with g
to 20 Tcf of

area is pro
minimum a
% to 1.3%).
values betw
oil in the Ko
200 mi
2
. Ad
sufficient da
a Shale has
area. It hol
s resource o
hale has a r
Including as
, technically
entrations in
e area and
in the two p
/condensate
ted cut five c
rth Basin. T
er, the middle
4% TOC an
he Upper an
gas being p
gas in-place
EIA/ARI W
III-26
ospective for
and maximu
A smaller
ween 0.7% a
ockatea Sha
ditional port
ata were ava
s a resource
ds a risked
of 25 Tcf, Ta
esource con
ssociated ga
y recoverable
n the Kocka
6 million ba
prospective a
e resource of
cores in the
The compan
e zone was
nd estimated
d Middle Ca
roduced dur
e on its perm
World Shale Ga
r wet shale
um depth cr
860-mi
2
are
and 1.0% an
ales. The de
tions of the
ilable for a q
e concentra
gas in-plac
able III-1B.
ncentration o
as, the Kock
e shale gas
atea Shale
arrels/mi
2
in
areas is 14
f 0.5 billion b
e Carynginia
ny found the
considered
d 3 to 6% p
arynginia we
ring well flow
mit for the m
s and Shale Oil
gas and co
riteria (3,30
ea, up-dip fr
nd a minimum
eeper Caryng
e southern
quantitative a
ation of 94 B
ce of 124 Tc
of 59 Bcf/mi
2
katea Shale
resource of
are estimat
the conden
billion barre
barrels, Tab
Shale in its
e upper and
more prospe
porosity at a
ere successf
w-back and
middle zone o
Resource Asses
ondensate i
0-16,500 ft)
rom the we
m depth of 3
ginia Shale h
half of the
assessment
Bcf/mi
2
with
cf, with a ris
2
within its 1
has a risked
f 7 Tcf, Tab
ted at 19 m
nsate prospe
els, with a ris
le III-2A.
s Woodada
d lower zon
ective, with
a depth betw
fully hydraul
clean-up.
of the Caryn
ssment

n the
) and
t gas
3,300
has a
Perth
t.
hin its
sked,
,030-
d gas
ble III-
million
ective
sked,
Deep
es to
lower
ween
lically
AWE
nginia
III. Australia

June, 2013

A
fields in
miles nor
an intere
up to A$
well in Ju
flowback
oil and ga
a
Australian ind
the Perth B
rth of the Wo
est in EP413
$15 million f
une 2011 an
k reported ga
as flows from
dependent,
Basin, is eva
oodada Dee
to an Indian
for shale ex
nd fractured f
as flows from
m the Kocka
Norwest En
aluating the
ep well. Norw
n firm, Bhara
xploration an
five stages i
m all zones i
atea Shale.
EIA/ARI W
III-27
ergy which
shale poten
west is partn
at PetroReso
nd drilling. T
n shale and
including the
World Shale Ga
produces oi
ntial on its E
nered with AW
ources. The
The consorti
d tight sand i
e Upper and
s and Shale Oil
il and gas fr
EP413 perm
AWE and has
e companies
ium drilled t
ntervals. Init
d Middle Car

Resource Asses
rom convent
it area, abo
s also farme
s have comm
the Arrowsm
tial results d
rynginia and
ssment

tional
ut 20
ed-out
mitted
mith-2
during
d both
III. Australia

June, 2013

4 C
4.1 In
T
organic-r
Goldwye
Source: AR
a
CANNING B
ntroduction
The large, lig
rich shales,
r Shale, Fig
Figu
I, 2013.
BASIN (WE
n
ghtly explor
including
ure III-14.
re III-14. Cann
ESTERN AU
red Canning
the Laurel

ning Basin Pro
EIA/ARI W
III-28
USTRALIA
g Basin in n
and Lower
ospective Sha
World Shale Ga
A)
northwestern
r Anderson
ale Gas and Sh
s and Shale Oil
n Australia
shales and
hale Oil Areas
Resource Asses
contains se
d the signif
s
ssment

everal
ficant
III. Australia

June, 2013

4.2 G
T
sediment
Ordovicia
Basin to
within the
C
petroleum
the princ
terraces
discoveri
basin are
F
the basi
Formatio
shales in
4.3 R
T
intertidal
basinal a
averages
well in th
T
compone
black, ind
T
Gloeocap
Amadeus
platforms
in the adj
a
Geologic Se
The 234,000
tary basin.
an- to Creta
the east by
e basin, suc
Conventional
m occurs in
cipal source
between th
ies on the Le
eas south of
igure III-15
n is the or
on could not
n the Cannin
Reservoir P
The Middle O
conditions.
areas to lime
s about 1,30
e Willara su
The Goldwye
ents varying
dicating ano
The Goldwye
psomorpha
s, Baltic, an
s and terrace
jacent deep
etting
-mi
2
Cannin
A broad in
aceous-age s
a Precambr
h as the Fitz
exploration
the Hoya an
rocks in the
he deeper t
ennard She
the Fitzroy T
shows the s
rganic-rich
t be rigorou
g Basin, suc
Properties
Ordovician G
Highly fo
estone-domi
00 feet thick
b-basin.
25

er Shale is
widely acro
xic reducing
er Shale co
prisca, cons
nd Williston
es as shown
troughs.
ng Basin (18
ntracratonic
sedimentary
rian arch. A
zroy Trough,
in the Cann
nd Anderson
e basin, and
roughs. Sou
lf are source
Trough, the
stratigraphy
Ordovician
usly assesse
ch as the Ca
(Prospecti
Goldwyer F
ssiliferous,
inated in pla
k, reaching a
dominated
oss the basin
g conditions.
ontains horiz
sidered to h
basins.
26

n by shallow
EIA/ARI W
III-29
81,000 mi
2
rift basin, th
y rocks. The
A series of no
, may hold d
ning Basin h
n formations
most of the
urce rock d
ed from Carb
oil shows ar
of the Cann
Goldwyer F
ed due to i
alytrix Forma
ive Area)
ormation wa
the formatio
atform and t
a maximum
by mudston
n. The colo

zons with h
have excelle
The Goldw
er exploratio
World Shale Ga
onshore) is
he Canning
e basin is s
orthwest-tre
deep shale re
has focused
s. Only abo
e wells have
data in the
boniferous a
re sourced f
ning Basin.
Formation.
insufficient d
ation, appea
as deposite
on varies fr
terrace area
thickness o
ne and carb
r of the shal
high concen
ent source-r
wyer Shale
on wells, but

s and Shale Oil
Western A
contains u
separated fro
nding, fault-
esource pote
on the Lenn
out 60 wells
been locate
basin is lim
and Devonia
from Ordovic
The primar
The Carb
data contro
r to be too le
d mainly in
rom mudsto
as. The Gol
of 2,414 fee
bonate, with
le ranges fro
ntrations of
rock potenti
is oil prone
t likely matu
Resource Asses
Australias la
p to 11 mil
om the Ama
bounded tro
ential.
23

nard Shelf, w
have interse
ed on the up
mited, but th
an formation
cian formatio
ry shale targ
oniferous L
l. Other m
ean.
open mari
one-dominate
dwyer Form
t in the Will
h ratios of t
om grey-gre
the marine
al, similar to
e on the up
re and gas p
ssment

argest
es of
adeus
oughs
where
ected
plifted
he oil
ns. In
ons
24
.
get in
Laurel
marine
ne to
ed in
mation
ara-1
these
een to
alga
o the
plifted
prone
III. Australia

June, 2013

a
Figure III-15. Canning
EIA/ARI W
III-30
g Basin Strati
World Shale Ga
igraphic Colum
s and Shale Oil
mn
Resource Assesssment

III. Australia

June, 2013

T
feet in th
and Jurg
sub-basi
T
values in
particula
the oil w
Kidson S
1.3%). In
wet gas
depths o
4.4 R
A
Canning
mature.
second 1
appears
trough ar
In
concentr
Goldwye
technical
the Gold
barrels/m
Goldwye
technical
a
The depth of
e southern K
gurra Terrac
n, the Goldw
TOC in the G
n excess o
rly rich, with
window over
Sub-basin, w
n general, th
and conden
ver 10,500 f
Resource A
ARI identified
Basin. He
An estimat
19,620-mi
2
a
prospective
reas were ex
n the dry
rations of 10
r Shale in th
lly recoverab
dwyer Shale
mi
2
, respect
r Shale, ha
lly recoverab
the Goldwy
Kidson sub-
ces, Figure
wyer is at de
Goldwyer S
of 10%, Fig
h TOC up to
r much of th
where the G
he Goldwyer
nsate window
feet.
28

Assessmen
d a prospect
ere, the Gold
ted 22,860-m
area prospe
e for shale o
xtrapolated f
and wet g
09 Bcf/mi
2

he Canning
ble shale ga
e have reso
ively. Inclu
as risked sh
ble shale oil/
yer Shale in
basin to less
III-16. In the
pths greater
hale genera
ure III-17.
27
6.40%. Ro
he southern
Goldwyer dee
r Shale is in
w between 7
nt
tive area in
dwyer Shale
mi
2
area ma
ctive for we
oil. The bou
from informa
gas prospec
and 67 Bcf
Basin has a
as of 235 Tc
ource conce
uding both
ale oil/cond
/condensate
EIA/ARI W
III-31
the Canning
s than 3,000
e northern,
r than 16,50
ally ranges f
The upp
ck-Eval pyro
n Canning B
epens to 5,0
the oil wind
7,200 and 10
the Kidson
e is thick, d
ay be prosp
et gas and c
undaries an
ation at adjo
ctive areas
f/mi
2
, respe
a risked sha
cf. The pros
entrations of
the oil an
densate in-p
e resources o
World Shale Ga
g Basin vari
0 ft on the up
very deep
0 ft.
from 1% to
er member
olysis indica
Basin and th
000 m, is in
dow at depth
0,500 feet a
sub-basin in
deep (7,200-
pective for d
condensate.
d depth con
ining uplifts.
s, the Gold
ectively. Inc
le gas in-pla
spective area
f 41 million
nd condens
place of 244
of 9.8 billion
s and Shale Oil
ies from gre
plifted block
Fitzroy Trou
5% (mean
r of the Go
ates this sou
he mid-basi
n the dry ga
hs less than
and in the dr
n the southe
-16,500 fee
dry gas dev
A smaller
ntours for th
.
dwyer Shale
cluding asso
ace of 1,227
as for oil an
n barrels/mi
2
ate prospec
4 billion bar
barrels.
Resource Asses
eater than 16
s of the Bar
ugh and Gre
3%), with s
oldwyer Sha
rce rock is w
n platform.
as window (
7,200 feet, i
ry gas windo
ern portion o
t), and ther
velopment w
14,900-mi
2
he undrilled
e has reso
ociated gas
7 Tcf, with ris
d condensa
2
and 10 m
ctive areas
rels, with ris
ssment

6,500
bwire
egory
some
ale is
within
The
(Ro >
in the
ow at
of the
rmally
with a
area
deep
ource
s, the
sked,
te for
million
, the
sked,
I

J

S
II. Australia
June, 2013
Source: Haines, 2004 4
Figure I

I
II-16. North-South
III-32
h Cross Section of
EIA/ARI W
f the Canning Bas
World Shale Gas and

sin
III. Australia

June, 2013

Source: Gho

4.5 R
B
Canning
conventio
fund an A
permits.
basin.
N
exploratio
Septemb
the Goldw
four year
will have
The first
drilled to

a
F
ori and Haines, 2
Recent Act
Buru Energy
Basin. Bu
onal explora
A$152.4 mil
The two co
New Standar
on licenses
ber 2011, NS
wyer Shale.
rs for up to
a detailed p
well in the p
a target dep
Figure III-17. T
2007
ivity
, an Austral
uru reported
ation well dr
lion explorat
ompanies ha
rd Energy (N
covering 1
SE formed a
ConocoPhi
$US119 mil
program of m
program, the
pth of 11,300

TOC Values in
ian E&P co
d gas-mature
rilled in 1967
tion and dev
ave plans to
NSE), the o
7,300 mi
2

a joint ventu
llips has ann
llion. Three
mud logging
e Nicolay #1,
0 feet.
29

EIA/ARI W
III-33
the Ordovicia
ompany, hold
e, organic-r
7 on permit
velopment p
o evaluate t
ther principa
in the north
ure with Con
nounced tha
wells will be
, full coring
, was spud o
World Shale Ga
an Goldwyer F
ds significan
rich shale fr
EP-391. In
program to e
the Goldwye
al operator
hern edge o
nocoPhillips
at it will fund
e drilled ver
and wireline
on August 8
s and Shale Oil
Formation
nt exploratio
rom cores i
n 2010, Mits
earn a 50%
er Shale in
in the Cann
of the Kidso
to accelera
an explorat
rtically and n
e logs over t
, 2012 and i
Resource Asses
on permits i
n the Yulle
subishi agre
interest in B
the Kidson
ning Basin,
on sub-basi
ate explorati
ion program
not fractured
he shale sec
s proposed
ssment

n the
roo-1
ed to
Burus
sub-
holds
in. In
on of
m over
d, but
ction.
to be
III. Australia

June, 2013

5. G
5.1 In
T
Australia
been dri
depositio
Source: AR

a
GEORGINA
ntroduction
The Georgin
straddling
lled, all in
onal centers,
I, 2013.
A BASIN
n
na Basin is
the Norther
the souther
, the Toko an
Figu

a large, 1
rn Territory/Q
rn third of t
nd Dulcie Sy
ure III-18. Geo
EIA/ARI W
III-34
125,000-mi
2
Queensland
the basin in
ynclines, Fig
orgina Basin L
World Shale Ga
mainly une
border.
30
T
n the vicinit
gure III-18.
Location Map
s and Shale Oil
explored ba
Twenty-nine
ty of the ba

Resource Asses
asin in Nor
e test wells
asins two m
ssment

rthern
have
major
III. Australia

June, 2013

5.2 G
T
environm
depocen
basin co
shallows
than 3,00

a
Geologic Se
The Georgia
ment which s
ters consist
ontain up to
northwards
00 feet along
Sou
etting
an Basin is
supports the
ing of down
7,200 feet
s with the de
g its northea
Figure III-19.
rce: Ambrose an

s filled with
e accumulati
nfaulted bloc
of Cambria
epth to top o
astern borde
. Southern Ge
nd Putnam, 2007
EIA/ARI W
III-35
h sediments
ion and pres
cks and half-
an to Devo
of the Camb
r.
orgina Basin
7, modified after
World Shale Ga
s deposited
servation of
f-grabens on
nian section
brian Arthur
Stratigraphic
r Ambrose et al 2
s and Shale Oil
d in a rest
f organic ma
n the southe
n, Figure III
Creek Shal
Column
2001
Resource Asses
tricted anae
atter. Two m
ern margin o
I-19.
31
The
le becoming
ssment

erobic
major
of the
basin
g less
III. Australia

June, 2013

T
Arthur C
electric lo
thickens
clastic an
5.3 R
T
sands/sil
over the
stringers
contains
saturatio
G
Basin, m
to 16%,
prone Ty
5.4 R
T
by a min
and by a
south-ea
data, Fig
O
covering
Syncline
and inclu
gas reso
at 25 bill
1.0 billion
a
The lower se
Creek hot b
ogs. The thic
from west t
nd carbonate
Reservoir P
The Arthur
ts, shales, d
vertical se
, averaging
a high pro
ns of less th
Geoscience A
ainly from th
with an ave
ype I and II k
Resource A
The prospect
imum shale
a vitrinite (R
o
stern bound
ure III-22.
Oil and gas
the Dulcie
and surroun
uding associ
urce of 13 T
ion barrels,
n barrels, Ta
ection of the
black shale,
ckness of th
to east, Figu
e intervals, s
Properties
Creek Shal
dolomites an
ction of the
10% over
oportion of c
han 25% and
Australia stu
he Lower Ar
erage TOC o
kerogen.
Assessmen
tive oil and g
thickness o
o
) value of 0
dary of the T
resources w
Syncline an
nding area.
ated gas) is
Tcf, Table III-
with a riske
able III-2B.
e Cambrian
so called b
he hot shal
ure III-20. Th
somewhat co
(Prospecti
le is a Mid
nd a basal b
e hot shale
the whole
carbonates
d intervals w
udied thirtee
rthur Creek S
of 5.5%.
34
T
nt
gas shale ar
of 30 feet on
0.7% on the
Toko Synclin
were estima
nd surround
Total riske
estimated a
-1C. Total r
d, technicall

EIA/ARI W
III-36
sediments
because of
e, derived fr
he shale sec
omparable to
ive Area)
ddle Cambr
black anoxic
e show log
section. T
and has low
with natural fr
en samples
Shale. The
The organic
reas for the
the souther
northern sid
ne prospecti
ated for two
ing area, an
ed wet and d
at 67 Tcf, wit
isked shale
ly recoverab
World Shale Ga
in the sout
its high gam
rom seismic
ction is inter
o the Bakke
rian sequen
hot shale.
porosities
The larger A
w clay cont
ractures and
of core from
TOC of thes
matter is co
Lower Arthu
rn side of th
de of these
ive area is u
o prospectiv
nd a wester
dry shale ga
th a risked, t
oil and cond
ble shale oil
s and Shale Oil
thern synclin
mma ray re
c interpretatio
rbedded wit
en Shale in th
nce compris
32
,
33
Modern
up to 22%
Arthur Cree
tent. Logs a
d small faults
m four wells
se samples
omposed of
ur Hot Shal
he Dulcie an
two deposit
uncertain be
ve areas: an
rn region co
as in-place (
technically r
densate in-p
and conden
Resource Asses
nes contain
esponse see
on and well
h higher po
he U.S.
sed of dolo
n electric log
for the silt/
ek Shale int
also show w
s.
s in the Geo
ranged from
f oil and we
e were con
d Toko sync
ional center
ecause of la
n eastern re
overing the
(in both sync
ecoverable s
place is estim
nsate resour
ssment

s the
en on
data,
rosity
omitic
gs run
/sand
terval
water
orgina
m 2%
et gas
nfined
clines
r. The
ack of
egion
Toko
clines
shale
mated
rce of
I

J

S

II. Australia
June, 2013
Source: Ambrose and d Putnam, 2007
Figure III-20.

I
. East-West Cross
III-37
s-Section of the S
EIA/ARI W
Southern Georgina
World Shale Gas and

a Basin

III. Australia

June, 2013

Source: AR

a
I 2012
Figure III-2 21. Log Respo
EIA/ARI W
III-38
nse of Lower
World Shale Ga
r Arthur Hot S
s and Shale Oil
Shale

Resource Asses

ssment

III. Australia

June, 2013

Source: AR

5.5 R
P
southern
with both
horizonta
first half
Trough. A
oil-prone
section o
was cut f
retrieval
hydrocar
a
Figur
I, 2013.
Recent Act
PetroFrontier
portion of th
h companie
al exploration
of 2012. The
A third well,
e area of the
of the Owen
from the ho
and had ex
rbon bearing
re III-22. Georg
tivity
r Corporation
he Georgina
es committin
n wells testin
e Baldwin-2
the Owen-3
e Arthur Cre
-3 was drille
ot shale and
xtensive flore
g formation.
3
gina Basin Pro
n, a Canadia
a Basin. A fa
ng to spend
ng the Lowe
Hst1 and th
3 well is cur
eek hot sh
ed to a meas
d deeper Tho
escence thro
35

EIA/ARI W
III-39
ospective Sha
an company
arm-in with S
ding $25 m
er Arthur Cre
e MacIntyre
rrently (Augu
ale on the
sured depth
orntonia Car
oughout. W
World Shale Ga
ale Gas and S
, holds seve
Statoil Austr
million on an
eek hot sha
e-2H were dr
ust 2012) dr
flank of the
h of 3,870 fe
rbonate sect
Wireline loggi
s and Shale Oil
Shale Oil Areas
eral explorati
ralia was est
n exploratio
le section w
rilled in the g
rilling its hor
e Toko Trou
eet and over
tion. The co
ng indicated
Resource Asses
s
ion permits i
tablished in
n program.
were drilled i
gas-prone D
rizontal leg i
ugh. The ve
r 100 feet of
ore seeped o
d over 80 fe
ssment

in the
2012
Two
in the
Dulcie
n the
ertical
f core
oil on
eet of
III. Australia

June, 2013

6. B
6.1 In
T
approxim
Walton H
east. Its

a
BEETALOO
ntroduction
The Beetalo
mately 400 m
High to the
western ma
Source:
O BASIN (N
n
o Basin is
miles southe
north, the H
argin is proje
Fig
ARI, 2013
NORTHERN
a 14,000-
ast of Darw
Helen Spring
ected to exte
ure III-23. Bee
EIA/ARI W
III-40
N TERRITO
-mi
2
rift bas
in, Figure II
gs High in th
end to the Da
etaloo Basin L
World Shale Ga
ORY)
sin located
I-23. The ba
he south, a
aly Waters A
Location Map

s and Shale Oil
in the No
asin outline
nd the Batte
Arch.
36

Resource Asses
orthern Terr
is defined b
en Trough i
ssment

ritory,
by the
n the
III. Australia

June, 2013

W
vintage,
Group, F
Basin. O
with sho
prospect
with sour

a
Well tests an
have identi
Figure III-24
Oil and gas s
ows in adjoi
ive, would b
rce rocks fou
nd cores fr
fied oil and
. The Roper
shows have
ning conven
be some of t
und in Oman
Figure
Source: Silver
om twelve
d gas bearin
r Group is u
been obser
ntional sand
he oldest pr
n and Siberia
III-24. Beetalo
rman et al, 2005
EIA/ARI W
III-41
exploratory
ng organic-r
up to 9,000
rved in the K
dstone form
roducing sou
a.
oo Basin Strati
5
World Shale Ga
wells, of la
rich shales
feet thick in
Kyalla and M
mations. The
urce-rock for
igraphic Colu
s and Shale Oil
ate 1980s a
in the Pre-
n the center
Middle Velke
ese two sha
rmations in t
mn
Resource Asses
and early 1
Cambrian R
r of the Bee
erri shales, a
ale formatio
the world, o
ssment

990s
Roper
etaloo
along
ns, if
n par
III. Australia

June, 2013

6.2 G
T
and mag
Latest in
and unco
faults, ob
25. A 11
Arch, is a
Source: Am
T
based pr
Shale an
2,130 mi
2,650 mi

a
Geologic Se
The structura
gnetic data,
nterpretations
onformably
bserved in th
0 mile long
a thrust belt
brose and Silve
The Velkerri
rimarily on fo
nd 1,310 mi
2
for the Ve
2
for the Vel
etting
al characteri
along with
s classify th
overlying th
he McArthur
regional gra
with over 3,
Figure III-25.
rman, 2006
38

and the Kya
ormation de
2
for the Ky
elkerri Shale
kerri Shale a

stics of the
recent repr
he basin as
e western p
r Basin, are t
avity high bo
000 feet of r
East-West C
alla shales h
pth. The dr
yalla Shale.
and 2,400
and 4,010 m
EIA/ARI W
III-42
Beetaloo Ba
rocessing an
a rift basin
3
portion of th
thought to e
ounding the
relief.
Cross-Section
have dry gas
ry gas prosp
The wet g
mi
2
Kyalla S
mi
2
for the Ky
World Shale Ga
asin have b
nd reinterpr
37
, formed d
e McArthur
extend into th
west side o
of the Beetalo
s, wet gas/c
pective area
gas/condens
Shale. The
yalla Shale, F
s and Shale Oil
een determ
retation of 2
uring the la
Basin. Nort
he Beetaloo
of the basin,
oo Basin
condensate
a is 2,480 m
ate prospec
shale oil pro
Figures III-2
Resource Asses
ined from g
2D seismic
ate Pre-Cam
th-south tren
o Basin Figu
the Daly W
and oil wind
i
2
for the Ve
ctive area co
ospective ar
6 and III-27
ssment

ravity
lines.
mbrian
nding
re III-
Waters
dows,
elkerri
overs
rea is
.
III. Australia

June, 2013

Source: AR

a
Figure III
I, 2013.
-26. Beetaloo

Basin Prospe
EIA/ARI W
III-43
ective Velkerri
World Shale Ga
i Shale Gas an
s and Shale Oil
nd Shale Oil A
Resource Asses
Areas
ssment

III. Australia

June, 2013

Source: AR

a
Figure III-27
I, 2013.
7. Beetaloo Ba

asin Prospecti
EIA/ARI W
III-44
ive Lower Kya
World Shale Ga
alla Shale Gas
s and Shale Oil
s and Shale Oi
Resource Asses
il Areas

ssment

III. Australia

June, 2013

6.3 R
T
organic-l
Shale, a
prospect
of Middle
The orga
T
averagin
and Low
resource
T
Kyalla Sa
considera
assessm
to the 8,0
dependin
TOC in th
T
well logs
projected
5,000 ft
gas/cond
7,000 fee
T
gas/cond
The area
were der
emphasis
a
Reservoir P
The Velkerri F
ean shales a
marine sha
ive based o
e Velkerri Sh
anic-rich net
The Middle
g 4%. The o
wer Velkerri s
e assessmen
The Kyalla F
andstone. T
ably from we
ment. Shale
000 ft in the
ng on depth
he basin cen
The prospect
, thermal ma
d to be in th
. At depth
densate win
et, the Velke
The Lower K
densate wind
as are cons
rived. Pay th
s on the mos
Properties
Formation is
and interbed
ale deposite
n exploratio
hale ranges
pay of the M
Velkerri ha
organic matt
shales, with
nt.
Formation ha
he combine
est to east.
depth in the
e basin cente
h. While so
nter, the TOC
tive areas in
aturity mode
e oil window
hs greater
ndow with R
o
erri Shale en
Kyalla Shale
dow below 5
trained by t
hickness an
st recently d
(Prospecti
s composed
dded with thi
ed in shallo
n wells drille
from 3,300 f
Middle Velke
s a maxim
ter is compo
TOC conte
as an upper
d section is
Only the Lo
e prospective
er. The Kya
ome organic-
C of the sha
n the Velkerr
els and seism
w (with R
o
b
than 5,000
o
between 1
ters the dry
e is in the
5,000 feet, a
the extent o
nd reservoir
drilled Shena
EIA/ARI W
III-45
ive Area)
of black org
in siltstone a
w to moder
ed in the bas
ft on the Wa
erri Shale ave
um total or
osed of oil p
ents of less t
r and a low
600 to 2,50
ower Kyalla S
e area rang
lla Shale is
-rich section
ale averages
ri and Kyalla
mic data, Fig
etween 0.7%
0 ft the M
.0% and 1.3
gas window
oil window
and reaches
of the seism
properties w
andoah-1A w
World Shale Ga
ganic-rich sh
and sandsto
rate depth e
sin.
39
The d
alton High to
erages 100
rganic carb
rone Type I
than 2%, ha
wer shale se
00 ft thick, w
Shale has b
es from 3,30
mature with
ns of the Lo
s 2.5%.
a shales wer
gure III-28.
% and

1.0%
Middle Velke
3%. As the
w with R
o
> 1
from 3,300
s the dry ga
mic data from
were estima
well.
s and Shale Oil
hales layered
ne units. Th
environment
depth of the
o 8,700 ft in
feet across
on (TOC) c
and II kero
ave not bee
ection, separ
with the Uppe
been include
00 feet in th
h Ro values
ower Kyalla
re estimated
The Middle
%) from a de
erri Shale
formation d
.3%.
0-5,000 feet
as window b
m which dep
ated from we
Resource Asses
d with gray-g
he Middle Ve
ts, is consid
prospective
the basin ce
the basin.
content of
gens. The U
n included i
rated by the
er Kyalla thin
d in the reso
he north and
of 0.7% to
shale reach
d using data
Velkerri Sh
pth of 3,300
enters the
deepens to b
, enters the
below 6,000
pths to form
ell log data,
ssment

green
elkerri
dered
area
enter.
12%,
Upper
n the
e thin
nning
ource
d east
1.6%
h 9%
from
ale is
0 ft to
wet
below
e wet
feet.
mation
, with
III. Australia

June, 2013

6.4 R
T
Tcf, with
risked sh
risked, te
T
in-place o
1C. Th
resource
Table III-

a
Source: Silver
Resource A
The risked dr
a risked, t
hale oil/cond
echnically re
The Lower K
of 100 Tcf, w
he risked sh
e from the Lo
-2B.
Figure III-2
rman and Ahlbra
Assessmen
ry, wet and a
echnically re
densate in-p
coverable sh
Kyalla Shale
with a risked
hale oil and
ower Kyalla

28. Thermal Ma
andt, 2011
nt
associated s
ecoverable
place for the
hale oil/cond
is calculate
d, technically
d condensat
Shale are 6
EIA/ARI W
III-46
aturity Model
shale gas in-
shale gas r
e Middle Ve
densate reso
d to have ris
y recoverable
te in-place
65 billion ba
World Shale Ga
for Jamison #
-place for the
resource of
elkerri Shale
ource of 1.4
sked dry, w
e shale gas
and the ris
rrels and 3.3
s and Shale Oil
#1 Well
e Middle Ve
22 Tcf, Ta
e is 28 billio
billion barre
wet and asso
resource of
ked, technic
3 billion bar
Resource Asses

elkerri Shale
ble III-1C.
n barrels, w
els, Table III-
ociated shale
f 22 Tcf, Tab
cally recove
rrels respect
ssment

is 94
The
with a
-2B.
e gas
ble III-
erable
tively,
III. Australia

June, 2013

6.5 R
F
Basin. In
center of
5,084 ft a
the Lowe
each form
condensa
F
in the ex
seismic.
the end o
62.5% in
explore t
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asin, Australia. T
: Proterozoic Oil
n Basins Sympos
al Survey.
Australia: The Wo
very Article #102
erritory Geologic
erri Formation,
Australia: The Wo
very Article #102
20, 2012
ssment

orgina
0125,
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IV. Northern South America EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 IV-1
IV. NORTHERN SOUTH AMERICA
SUMMARY
Northern South America has prospective shale gas and shale oil potential within marine-
deposited Cretaceous shale formations in three main basins: the Middle Magdalena Valley and
Llanos basins of Colombia, and the Maracaibo/Catatumbo basins of Venezuela and Colombia,
Figure IV-1. The organic-rich Cretaceous shales (La Luna, Capacho, and Gacheta) sourced
much of the conventional gas and oil produced in Colombia and western Venezuela, and are
similar in age to the Eagle Ford and Niobrara shale plays in the USA. Ecopetrol,
ConocoPhillips, ExxonMobil, Shell, and others have initiated shale exploration in Colombia.
Colombias petroleum fiscal regime is considered attractive to foreign investment.
Figure IV-1: Prospective Shale Basins of Northern South America
Source: ARI 2013

June, 2013 IV-2
For the current EIA/ARI assessment, the Maracaibo-Catatumbo Basin was re-evaluated
while new shale resource assessments were undertaken on the Middle Magdalena Valley and
Llanos basins. Technically recoverable resources (TRR) of shale gas and shale oil in northern
South America are estimated at approximately 222 Tcf and 20.2 billion bbl, Tables IV-1 and IV-
2. Colombia accounts for 6.8 billion barrels and 55 Tcf of risked TRR, while western Venezuela
has 13.4 billion barrels and 167 Tcf. Eastern Venezuela may have additional potential but was
not assessed due to lack of data.
Colombias first publicly disclosed shale well logged 230 ft of over-pressured La Luna
shale with average 14% porosity. More typically, the black shales within the La Luna and
Capacho formations total about 500 ft thick, 10,000 ft deep, calcareous, and average 2-5%
TOC. Thermal maturity comprises oil, wet-gas, and dry-gas windows (R
o
0.7-1.5%). Shale
formations in the Llanos and Maracaibo/Catatumbo basins have not yet been tested but also
have good shale oil and gas potential.
INTRODUCTION
As first highlighted in EIA/ARIs 2011 assessment, Colombia and Venezuela both have
excellent potential for shale oil and gas.. In particular, Colombias shale potential appears
considerably brighter today based on the results of initial shale drilling as well as the entry of
major oil companies (ConocoPhillips, ExxonMobil, and Shell) as well as several smaller
companies.
Colombias Agencia Nacional de Hidrocarburos (ANH) regulates oil and gas exploration
and development. The countrys model contract for unconventional gas includes 8-year
exploration and 24-year production terms. Preferential terms are in place for shale gas
investment, including a 40% reduction in royalties and higher oil prices. In 2011 the National
University of Colombia conducted a shale gas resource evaluation for ANH, estimating a total
33 Tcf of potential in the Eastern Cordillera, Eastern Llanos and Caguan-Putumayo regions.
The study and methodology have not been disclosed; apparently shale oil resources were not
assessed. ANH conducted Colombias first auction of shale gas blocks in 2012.


June, 2013 IV-3
Table IV-1: Northern South America Shale Gas Reservoir Properties and Resources.
Llanos
(84,000mi
2
)
Gacheta
U. Cretaceous
Marine
2,390 200 1,820 7,280 4,290 5,840
Organically Rich 1,000 1,000 600 1,000 1,000 1,000
Net 300 300 210 500 500 500
Interval 3,300 - 16,400 3,300 - 10,000 13,000 - 16,400 5,000 - 15,000 5,500 - 15,000 6,000 - 15,000
Average 10,000 8,000 14,500 10,000 11,000 12,000
Highly
Overpress.
Highly
Overpress.
Mod. Overpress. Normal Normal Normal
5.0% 5.0% 2.0% 5.0% 5.0% 5.0%
0.85% 1.15% 0.85% 0.85% 1.15% 1.60%
Low Low Low Low Low Low
Assoc. Gas Wet Gas Assoc. Gas Assoc. Gas Wet Gas Dry Gas
88.0 150.3 40.4 71.8 176.1 255.7
117.8 16.8 18.2 183.0 264.4 522.6
14.1 4.2 1.8 18.3 52.9 130.7
MiddleMagdalenaValley
(13,000mi
2
)
Maracaibo/Catatumbo
(23,000mi
2
)
LaLuna/Tablazo
U. Cretaceous
Marine
LaLuna/Capacho
U. Cretaceous
Marine
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age

Table IV-2: Northern South America Shale Oil Reservoir Properties and Resources.
Llanos
(84,000mi
2
)
Gacheta
U. Cretaceous
Marine
2,390 200 1,820 7,280 4,290
Organically Rich 1,000 1,000 600 1,000 1,000
Net 300 300 210 500 500
Interval 3,300 - 16,400 3,300 - 10,000 13,000 - 16,400 5,000 - 15,000 5,500 - 15,000
Average 10,000 8,000 14,500 10,000 11,000
Highly
Overpress.
Highly
Overpress.
Mod. Overpress. Normal Normal
5.0% 5.0% 2.0% 5.0% 5.0%
0.85% 1.15% 0.85% 0.85% 1.15%
Low Low Low Low Low
Oil Condensate Oil Oil Condensate
57.0 26.1 28.0 92.3 41.0
76.3 2.9 12.6 235.1 61.6
4.58 0.18 0.63 11.75 3.08
Maracaibo/Catatumbo
(23,000mi
2
)
La Luna/Capacho
U. Cretaceous
Marine
Middle Magdalena Valley
(13,000mi
2
)
La Luna/Tablazo
U. Cretaceous
Marine
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir Pressure
Average TOC (wt. %)
Clay Content
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
Risked Recoverable (B bbl)
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospective Area (mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
Shale Formation
Geologic Age


June, 2013 IV-4
Venezuelas government and oil companies have not disclosed shale oil or shale gas
exploration activities, although the potential in western Venezuela appears to be large and of
high quality. Overall, three main basins are present in northern South America that contain
prospective marine-deposited shales and were assessed in this report, Figure IV-2. These
basins include:
Middle Magdalena Valley Basin (Colombia): The focus of shale exploration leasing
and drilling activity in the region thus far, the MMVB near Bogota also is Colombias
main conventional onshore production area. It contains thick deposits of the organic-rich
Cretaceous La Luna Formation, mostly in the oil to wet gas windows.
Llanos Basin (Colombia): This large basin in eastern Colombia has prospective
Gacheta Formation source rock shales of Cretaceous age that are equivalent to the La
Luna Fm. TOC and R
o
generally appear low, but the western foothills region may be
richer and more thermally mature.
Maracaibo/Catatumbo Basin (Venezuela and Colombia): One of South Americas
richest petroleum basins, the Maracaibo (Venezuela) and Catatumbo (Colombia) basins
have extensive oil and gas potential in thick, widespread Cretaceous La Luna Shale.
A fourth basin, the Putamayo Basin in southern Colombia, also may contain shale
potential but was not assessed due to lack of data. The Putamayo contains organic-rich
Cretaceous shales in the Macarena Group.
1
While relatively shallow (3,000 ft) in this up-
thrusted basin-edge location, the Macarena shales deepen towards the center of the
basin where they may become less faulted. Hydraulic fracturing already is being used in
the Putamayo Basin for conventional reservoirs.
2


June, 2013 IV-5

Figure IV-2: Stratigraphic Chart Showing Source Rocks And Conventional Reservoirs In Northern
South America.
ERA PERIOD EPOCH
QUATERNARY Pleistocene
Pliocene
Gacheta
La Luna
Capacho
Rosablanca
Source Rock
Giron
Conventional Reservoir
F O R M A T I O N
Mito Juan
Colon
Aguardiente
Apon
Rio Negro
Cumbre
Arcabuco/
Giron
MARACAIBO-CATATUMBO
Alluvium
Guayabo
Leon
Carbonera
Mirador
Los Cuervos
Barco
Umir
La Luna
Simiti
Tablazo
Paja
MID MAGDALENA VALLEY
Alluvium
Mesa
Real
Colorado
Miocene Leon
Esmeraldas
La Paz
Lisama
C
E
N
O
Z
O
I
C
Catatumbo
Absent/Unknown
Carbonera
Upper
Lower
Mirador
Los Cuervos
Guadalupe
M
E
S
O
Z
O
I
C
CRETACEOUS
JURASSIC
TRIASSIC
Oligocene
Eocene
Paleocene
COLOMBI A & VENEZUELA BASI NS
BASIN LLANOS
Barco
Une
Mugrosa
TERTIARY
Necesidad
Guayabo
Source: ARI 2013

June, 2013 IV-6
1. MIDDLE MAGDALENA VALLEY BASIN (COLOMBIA)
1.1 Introduction and Geologic Setting
The 13,000-mi
2
Middle Magdalena Valley Basin (MMVB) is a north-south trending inter-
montane basin in central Colombia, situated between the Eastern and Central cordilleras and
located 150 miles north of Bogota, Figure IV-3. The MMVB is Colombias most explored
conventional oil and gas producing basin, with over 40 discovered oil fields that produce mainly
from Tertiary sandstone reservoirs. Although within the Andes Mountains region, with its
complex tectonics including numerous thrust and extensional faults, the interior of the MMVB
has simpler structure with relatively flat surface topography, Figure IV-4.
3
The western side of
the basin is structurally more complex and overthrusted, Figure IV-5.
4

Figure IV-3: Middle Magdalena Valley Basin, Shale-Prospective Areas and Shale Exploration

Source: ARI 2013

June, 2013 IV-7

Figure IV-4: Schematic Cross-Section of the Middle Magdalena Valley Basin Showing U. Cretaceous Umir
and La Luna And L. Cretaceous Simiti Shales Totaling 750-1,000 Ft Thick (Correlate With Eagle Ford Shale).
Source: Sintana Energy, Q3 2012

Figure IV-5: Schematic Cross-Section of Western Margin of the Middle Magdalena Valley Basin in Central
Colombia, Showing Thrusted Fault Blocks with La Luna Shale.
Source: Platino Energy, 2013

The Cretaceous La Luna Formation is the principal source rock in the MMVB. A marine-
deposited black shale, the organic-rich La Luna was formed in a widespread epicontinental sea
and is time-equivalent (Santonian) with the Niobrara Shale in the USA.
5
However,
sedimentation and facies distribution of the La Luna Fm were strongly controlled by the paleo-
topography, while post-depositional tectonics caused erosional events that truncated its
thickness in places. For example, much of the Campanian and lower Maastrichtian sections
were eroded in the southern Upper Magdalena Valley and Putumayo Basins.
6

The La Luna Formation comprises three members: the Salada, Pujamana, and
Galembo.
7
The most organic-rich (3-12% TOC) is the 150-m thick Salada Member, which
consists of hard, black, thinly bedded and finely laminated limy shales (40% CaCO
3
), along with
thin interbeds of black fine-grained limestone. Pyrite veins and concretions are common, as are

June, 2013 IV-8
planktonic (but not benthonic) foraminifera and radiolaria. The lower-TOC Pujamana Member
consists of gray to black, thinly bedded and calcareous shale (43% CaCO
3
). The 220-m thick
Galembo Member has moderate TOC (1-4%) and also consists of black, thinly bedded,
calcareous shale, but with only thin argillaceous limestone interbeds. The Galembo also has
abundant blue to black chert beds.
8
The underlying Cretaceous Tablazo/Rosablanca Fm,
about 480-920 ft thick, also contains high TOC (2-8%) that is in the oil to wet gas windows (R
o

0.6% to 1.2%).
The 1,000-ft thick Cretaceous La Luna Formation ranges from 3,000 ft to slightly over
15,000 ft deep across the Middle Magdalena Valley Basin. However, the La Luna is truncated
in places by an erosional unconformity, which juxtaposes Paleogene La Paz Fm on top, Figure
IV-6. The La Luna shale is organic rich (average 5%) with mainly Type II kerogen.
9
We
mapped a larger (2,390-mi
2
) oil-prone prospective window for the La Luna shale, with a much
smaller (200 mi
2
) wet gas window to the south (R
o
0.7% to 1.2%).
Calgary-based Canacol Energy Ltd. has noted that the La Luna and Tablazo/
Rosablanca shales are 4,000 to 12,000 ft deep across its blocks in the MMVB . The La Luna
ranges from 1,200 to 1,800 ft thick while the underlying Tablazo/Rosablanca is 480 to 920 ft
thick. TOC of the two units ranges from 2% to 8% and is mostly at oil-prone thermal maturity
(R
o
0.6% to 1.2%). Shale porosity is estimated by Canacol to be 3% to 14%.
10
In 2012 Canacol
drilled the Mono Arana-1 well on its VMM 2 block, where it is partnered with ExxonMobil. The
well tested shallow conventional targets as well as deeper shale and carbonate potential in the
La Luna and Tablazo oil source rocks. Heavy mud, up to 16.5 pounds per gallon, was required
to safely drill across these over-pressured shales, indicating they are at nearly twice the normal
hydrostatic pressure. The well encountered the top of the La Luna Formation at a depth of
9,180 ft and penetrated 760 ft into the formation, logging oil and gas shows across the entire
shale interval. Logs run across the La Luna reportedly indicated 230 ft of potential high-quality
net oil pay with 14% average porosity.

June, 2013 IV-9

Figure IV-6: Seismic Line in the Middle Magdalena Valley Basin Showing Cretaceous La Luna and Simiti
Shales Truncated by Erosional Unconformity.
Source: Sintana Energy, Q3 2012

According to Texas-based Sintana Energy the La Luna Formation averages about 1,500
ft thick (gross), has 950-1,900 ft of net pay, 5-10% TOC, 15% effective porosity, and favorably
low 17% clay content (should be quite brittle) on the companys blocks in the western MMVB.
The underlying Tablazo Formation averages about 600 ft thick (gross), has 150-450 ft of net
pay, 5.5-7.0% TOC, 8% effective porosity, and higher 30% clay content. The La Luna in
Sintanas area is in the oil window (R
o
0.7-1.0%), while the Tablazo is in the oil to wet gas
windows (R
o
1.1%). The pressure gradient ranges from 0.55-0.80 psi/ft in the La Luna to 0.65
psi/ft in the Tablazo.
11

The risked, technically recoverable shale gas and shale oil resources in the combined
Cretaceous La Luna and Tablazo shales of the Middle Magdalena Valley Basin are estimated to
be 18 Tcf and 4.6 billion barrels, out of risked shale gas and shale oil in-place of 135 Tcf and 79
billion barrels. By comparison Ecopetrol has estimated the MMV Basin has 29 Tcf of shale gas
potential (methodology not disclosed, nor was oil potential noted).

June, 2013 IV-10
1.4 Recent Activity
A number of companies -- including Ecopetrol, ConocoPhillips, ExxonMobil, Nexen, and
Shell -- have initiated shale oil and gas exploration programs at existing conventional oil and
gas lease positions in Colombia during the past two years. Activity has been concentrated in
the Middle Magdalena Valley Basin, close to the Bogota market. More than 12 vertical and
horizontal shale exploration wells were planned for 2012, including several re-entries.
State-owned Ecopetrol S.A., which controls about one-third of the oil and gas licenses in
Colombia, first announced its shale exploration program in early 2011 and drilled the La Luna-1
stratigraphic test in the MMVB later that year (results not disclosed). Ecopetrol already has
been drilling horizontal wells in the MMVB for non-shale targets during the past several years,
providing a good foundation for future horizontal shale development in the basin.
12

Canacol holds three conventional exploration licenses in Colombia, which the company
estimates have a total 260,000 gross acres with shale oil potential. The company has disclosed
a Mean Estimate of 2.9 billion barrels of recoverable resource potential within their lease
position. In recent months Canacol has signed separate joint-venture agreements with
ConocoPhillips, ExxonMobil, and Shell to conduct shale exploration within Canacols acreage.
These companies plan to drill a total of 19 shale exploration wells at an estimated cost of $123
million. ConocoPhillips expects to drill its first exploration well to test the La Luna Shale in the
second quarter of 2013.
13
Canacol continues to review the shale potential of two of its other
blocks.
Nexen was one of the first companies to report exploring for shale gas in Colombia. The
company reports it holds several shale blocks in Colombia for a total 1.5 million acres with shale
gas potential.
14
In late 2011 Nexen began drilling the first of four planned shale gas wells.
These wells, located in Sueva and Chiquinquira blocks in the Sabana de Bogota high savannah
plateau of the Eastern Cordillera mountain range, reportedly target the La Luna Formation. No
further details are available.
Sintana Energy has reported that its third-party consultant estimated 210 million bbl of
prospective recoverable resources in shale formations at the companys VMM-37 block in the
MMVB, which cover 44,000 acres (Mean Estimate). Sintana estimated initial horizontal well
costs at about $13 million.

June, 2013 IV-11
2. LLANOS BASIN (COLOMBIA)
The large (84,000-mi
2
) Llanos Basin, located in eastern Colombia, has only recently
become a focus of shale exploration and thus is less well understood than the Middle
Magdalena Valley Basin, Figure IV-7. The Gacheta Fm shale source rocks are equivalent to
the La Luna Fm in the MMV and Maracaibo/Catatumbo basins. The northeast-trending Llanos
Basin represents the northern extent of the Sub-Andean Mountain Belt. Figure IV-8 shows the
generally simple geologic structure in the interior of the Llanos Basin, as well as the
overthrusting on the western margin.
Figure IV-7: Llanos Basin Showing Shale-Prospective Area.

Source: ARI 2013

June, 2013 IV-12

Figure IV-8: Schematic Cross Section of the Llanos Basin in Colombia
Source : ANH, 2007

Up to 30,000 ft of Cambrian to Ordovician strata are unconformably overlain by thick
Cretaceous marine shale deposits. These in turn were partially eroded by uplift during the early
Tertiary. Other potential source rocks in the Llanos Basin include the Cretaceous Los Cuervos
Fm and Tertiary shales (Carbonera and Leon formations).
15
Conventional reservoirs are found
in the Paleogene Carbonera and Mirador sandstones as well as Cretaceous sandstones.
The Cretaceous Gacheta Fm, time-equivalent to the La Luna Fm and averaging 600 ft
thick, is the principal source rock in the Llanos Basin. The Gacheta reaches a depth of more
than 15,000 ft along the basins western margin, shoaling to only 2,000 feet in the east. The
central axis has the Gacheta shale ranging from 4,000 to over 10,000 ft deep.
The 1,820-mi
2
depth-prospective area is entirely in the oil window. The effective source
rock thickness of the Gacheta shale ranges from 150 to 300 ft (average 210 ft net), with TOC of
1% to 3% consisting of Type II and III kerogen.
16
Thermal maturity of the Gacheta ranges from
the oil to wet gas windows, with R
o
ranging from 0.3% in the shallow east to 1.1% in the deeper
western foothills region where the shale oil potential is greatest.
17
Porosity is uncertain but
assumed to be relatively high (7%) based on initial data on the correlative La Luna Shale in the
MMVB. The basin is slightly over-pressured, averaging about 0.5 psi/ft gradient.

June, 2013 IV-13
Risked, technically recoverable shale gas and shale oil resources in the Llanos Basin
are estimated to be 2 Tcf of associated shale gas and 0.6 billion barrels of shale oil and
condensate, out of risked shale gas and shale oil in-place of about 18 Tcf and 13 billion barrels,
Tables IV-1 and IV-2. Within the prospective area, the play has a moderate resource
concentrations of about 40 Bcf/mi
2
and 28 million bbl/mi
2
.
2.4 Recent Activity
No shale exploration leasing or drilling has been reported in the Llanos Basin. Sintana
Energy previously mentioned the shale potential of its leases in the Llanos Basin in the
companys 2011 investor presentation.
3. MARACAIBO-CATATUMBO BASIN (VENEZUELA, COLOMBIA)
The Maracaibo Basin extends over 23,000 mi
2
in western Venezuela and eastern
Colombia, the latter area known locally as the Catatumbo Sub-basin, Figure IV-9.
18
The
Maracaibo/Catatumbo Basin contains a rich sequence of organic-rich marine-deposited
Cretaceous shales that are the principal source rocks for prolific conventional fields.
19
These
Cretaceous shales, especially the La Luna and Gapacho, appear to be prospective targets for
shale oil and gas exploration.
Depth to the Precambrian-Jurassic basement in the Maracaibo Basin reaches over
20,000 feet in southern Lake Maracaibo and its onshore eastern edge, Figure IV-10. On the
west side of the basin, basement and Cretaceous shale deposits become shallower again,
Figure IV-11. Depth to the La Luna Fm ranges from less than 5,000 to over 15,000 feet,
generally deepening from northeast to southwest. The eastern edge of the shale play is limited
by maximum 15,000-ft depth, inferred from the structure of the Late Jurassic basement.
20

The Catatumbo Sub-basin, located on the rugged east flank of the Andes in eastern
Colombia, has similar shale targets but is structurally more complex than the rest of the
Maracaibo Basin, with thrust faulting in the west and less severe wrench-faulting in the east,
Figure IV-12.
21
Much like the northern Maracaibo Basin, the Catatumbo Sub-basin has
numerous conventional oil fields.

June, 2013 IV-14

Figure IV-9: Prospective Area for Shale Exploration in the Maracaibo/Catatumbo Basin.

Source : ARI, 2013

June, 2013 IV-15

Figure IV-10: Seismic Time Section of the Maracaibo Basin in Western Venezuela.
Modified from Escalona and Mann, 2006
Source : ARI, 2013


June, 2013 IV-16

Figure IV-10: Schematic Cross-Section Showing Depth to Cretaceous Source Rocks in the Maracaibo Basin,
Western Venezuela.
Modified from Escalona and Mann, 2006

Figure IV-12: Schematic Cross-Section of the Catatumbo Sub-Basin in Eastern Colombia.
Modified from Yurewicz et al., 1998


June, 2013 IV-17
La Luna Formation. The Maracaibo-Catatumbo Basin hosts some of the worlds
richest source rocks and conventional oil and gas reservoirs. The Late Cretaceous
(Cenomanian-Santonian) shale of the La Luna Formation, the primary source rock in the basin
22

and time-equivalent with the Eagle Ford Shale in Texas, appears to be the most prospective
target for shale oil and gas exploration. The black calcareous La Luna Shale ranges from 100
to over 400 feet thick across the basin, thinning towards the south and east.
23,24

Total organic carbon (TOC) varies across the basin, with values ranging from 3.7% to
5.7% in the northwest to 1.7% to 2% in the south and east. Maximum TOC values can reach
16.7%. A large portion of this shale-gas-prospective area includes part of Lake Maracaibo itself.
ARI chose to include this submerged area because water depths are shallow (less than 100
feet) and there are numerous conventional production platforms that could provide access to
shale drilling and development.
Thermal maturity of the La Luna Fm increases with burial depth from west to east across
the Maracaibo Basin, from less than 0.7% R
o
to over 1.7% R
o
southeast of Lake Maracaibo.
25

Vitrinite reflectance data indicate the unit is mainly in the oil generation window, with a narrow
sliver of dry-gas maturity in the east. Note that no significant free gas accumulations have been
discovered in the Maracaibo Basin; all natural gas production has been associated gas.
In the much smaller Catatumbo Sub-Basin of Colombia, the La Luna Fm is about 200 ft
thick, comprising dark-gray, laminated, limey mudstones and shales with high TOC averaging
4.5% (maximum 11%), mainly Type II with some Type III kerogen.
26
Total organic carbon in
core samples reaches a maximum of 11.2% in the La Luna, but more typically averages a still
rich 4 to 5% TOC. Figure IV-13 shows a slight increase in TOC concentration towards the base
of the La Luna Fm in the Cerrito 1 well, southeastern Catatumbo Sub-basin.
The La Luna is at relatively shallow depth in the Catatumbo Sub-basin, ranging from
6,000 to 7,600 feet.
27
Based on available vitrinite samples, thermal maturity ranges from 0.85
to 1.21% R
o
, with generally higher reflectance in the central and northern areas of the basin.
Samples from the Cerro Gordo 3 well in the southeast portion of the Catatumbo Sub-basin
averaged 0.85% R
o
, indicating that this area is oil prone.

June, 2013 IV-18

Figure IV-13: Calculated TOC Profile fromWell Log in the Catatumbo Sub-Basin.
Modified from Yurewicz et al., 1998


June, 2013 IV-19
Capacho Formation. The Capacho Formation (Cenomanian-Coniacian) is a distinct
unit from the overlying La Luna, although its upper portion is fairly similar. In the Maracaibo
basin the Capacho Fm consists of dark-gray to black shales and limestones and is much thicker
than the La Luna, ranging from 590 to nearly 1,400 feet in total thickness. However, less data
are available on the Capacho. Thus, for this assessment we combined the 200-ft thick, TOC-
rich upper portion of the Capacho with the stratigraphically adjacent La Luna for analysis.
Depth to the Capacho ranges from 6,500 feet to 8,500 feet in the Catatumbo Sub-basin,
with greater measured depth in the north and east at 8,275 feet in the Socuavo 1 well. TOC
reaches 5% in the Socuavo 1 well, northeastern Catatumbo Sub-basin, but more typically is
about 1.5%. Kerogen is Type II and III. Vitrinite reflectance ranges from 0.96% R
o
in the
northern Rio de Oro 14 well to 1.22-1.24% R
o
in southeastern well samples.
Three thermal maturity windows were mapped in the Maracaibo/ Catatumbo Basin: dry-
gas, wet-gas, and oil. Geologic modeling shows that the present-day temperature gradient in
the area ranges from 1.7 and 2.0 F per 100 feet of depth.
Dry Gas Window. Within the 5,840-mi
2
depth-screened, dry-gas thermal maturity
window (average 1.6% R
o
) of the Maracaibo/Catatumbo Basin, the Cretaceous La Luna Fm and
the adjoining upper portion of the Capacho Fm averages about 500 ft thick net, about 12,000 ft
deep, and is estimated to have average 5% TOC. Reservoir pressure is uncertain thus
assumed to be normal (hydrostatic).
Wet Gas Window. Within the 4,290-mi
2
depth-screened, wet-gas thermal maturity
window (average 1.15% R
o
), the La Luna and upper Capacho formations average about 11,000
ft deep. Other parameters are similar to the dry gas window.
Oil Window. The La Luna and upper Capacho shales in the thermally less mature
portion of the Maracaibo/Catatumbo basin are oil-prone, with average 0.85% R
o
. The oil window
extends over an area of about 7,280 mi
2
and averages about 10,000 ft deep.

June, 2013 IV-20
Total risked, technically recoverable shale gas and shale oil resources in the La Luna
and Capacho formations of the Maracaibo and Catatumbo basins are estimated to be 202 Tcf
and 14.8 billion barrels, out of risked shale gas and shale oil in-place of 970 Tcf and 297 billion
barrels, Tables IV-1 and IV-2. The play has high a resource concentration of up to 256 Bcf/mi
2

within the dry gas prospective area.
Dry Gas Window. Risked, technically recoverable shale gas resources in the dry-gas
window of the Maracaibo/Catatumbo Basin are estimated at 131 Tcf, from a risked shale gas in-
place of 523 Tcf. Resource concentration is high (average 256 Bcf/mi
2
) due in part to favorable
shale thickness and porosity.
Wet Gas Window. The slightly shallower and less thermally mature wet gas window of
the Maracaibo/Catatumbo Basin has risked, technically recoverable resources of approximately
53 Tcf of shale gas and 3.1 billion barrels of shale condensate. Risked in-place resources are
estimated at 264 Tcf of wet shale gas and 62 billion barrels of shale condensate.
Oil Window. The still shallower and oil-prone window of the La Luna formation and
upper Capacho formation in the Maracaibo/Catatumbo basins has an estimated risked,
technically recoverable resource of 11.8 billion barrels of shale oil and 18 Tcf of associated
shale gas. Risked in-place shale resources are about 235 billion barrels of shale oil and 183 Tcf
of shale gas.
3.4 Recent Activity
Junior Canadian E&P Alange Energy Corporation is evaluating the prospectivity of the
eastern area of the Catatumbo Sub-basin. However, this exploration activity appears to be
focused on conventional reservoirs within the La Luna Shale interval. No shale exploration
leasing or drilling has been reported in the Maracaibo Basin.

June, 2013 IV-21
REFERENCES

1
PetroNova, Inc., Investor Presentation, November 2012, 26 p.
2
Torres, F., Reinoso, W., Chapman, M., Han, X., and Campo, P., 2012. Field Application of New Proppant Detection
Technology - A Case History of the Putumayo Basin of Colombia. Society of Petroleum Engineers, SPE Paper #152251,
Latin America and Caribbean Petroleum Engineering Conference, 16-18 April 2012, Mexico City, Mexico.
3
Cooper, M.A., Addison, F.T., Alvarez, R., Coral, M., Graham, R.H., Hayward, A.B., Howe, S., Martinez, J., Naar, J., Peas, R.,
Pulham, A.J., and Taborda, A., 1995. Basin Development and Tectonic History of the Llanos Basin, Eastern Cordillera, and
Middle Magdalena Valley, Colombia. American Association of Petroleum Geologists, vol. 79, no. 10, p. 1421-1443.
4
Platino Energy, Investor Presentation, March 2013, 22 p.
5
Mann, U. and Stein, R., 1997. Organic Facies Variations, Source Rock Potential, and Sea Level Changes in Cretaceous Black
Shales of the Quebrada Ocal, Upper Magdalena Valley, Colombia. American Association of Petroleum Geologists, Bulletin,
vol. 81, p. 556-576.
6
Mora, A., Mantilla, M., and de Freitas, M., 2010. Cretaceous Paleogeography and Sedimentation in the Upper Magdalena and
Putumayo Basins, Southwestern Colombia. American Association of Petroleum Geologists, Search and Discovery Article
#50246.
7
Torres, E., Slatt, R.M., OBrien, N., Phip, R.P., and Rodrigues, H.L., 2012. Characterization of the Cretaceous La Luna
Formation as a Shale Gas System, Middle Magdalena Basin, Colombia. Houston Geological Society Conference on
Unconventional Resource Shales, poster.
8 Ramon, J.C. and Dzou, L.I., 1999. Petroleum Geochemistry of Middle Magdalena Valley, Colombia. Organic Geochemistry,
vol. 30, p. 249-266.
9 Agencia Nacional de Hidrocarburos, Republic of Colombia, 2005. Middle Magdalena Valley, MMV Basin. 8 p.
10 Canacol Energy Ltd., Investor Presentation, March 2013, 22 p.
11 Sintana Energy, Investor Presentation, Q1 2013, 35 p.
12 Ecopetrol S.A., Investor Presentation, March 2013, 72 p.
13 ConocoPhillips, News Release, April 25, 2013, 5 p.
14 Nexen Energy, Colombia: Nexen Explores for Shale Gas in Colombia. June 2012, 4 p.
15 Moretti, I, Mora, C., Zamora, W., Valendia, M., Rodriguez, G., and Mayorga, M., 2009. Llanos N-S Petroleum System
Variation (Columbia). American Association of Petroleum Geologists, Search and Discovery Article #10208.
16 Agencia Nacional de Hidrocarburos (ANH), 2007. Colombian Sedimentary Basins: Nomenclature, Boundaries, and
Petroleum Geology, a New Proposal. Bogota, Colombia, 91 p.
17 Bachu, S., Ramon, J.C., Villegas, M.E., and Underschultz, J.R., 1995. Geothermal Regime and Thermal History of the
Llanos Basin, Colombia. American Association of Petroleum Geologists, Bulletin, vol. 79, p. 116-129.
18 Escalona, A. and Mann, P., 2006. An Overview of the Petroleum System Of Maracaibo Basin. American Association of
Petroleum Geologists, vol. 90, p. 657-678.
19 Erlich, R. N., Macostay, O., Nederbragt, A.J., and Lorente, M.A., 1999. Palaeoecology, Palaeogeography and Depositional
Environments Of Upper Cretaceous Rocks Of Western Venezuela. Palaeogeography, Palaeoclimatology, Palaeoecology,
vol. 153, p. 203-238.
20 Castillo, M.V. and Mann, P., 2006. Deeply Buried, Early Cretaceous Paleokarst Terrane, Southern Maracaibo Basin,
Venezuela. American Association of Petroleum Geologists, vol. 90, no. 4, p. 567-579.
21 Rangel, A. and Hernandez, R., 2007. Thermal Maturity History and Implications for Hydrocarbon Exploration in the
Catatumbo Basin, Colombia. Ecopetrol, CT&F Ciencia, Tecnologia y Futuro, vol. 3, p. 7-24.

June, 2013 IV-22

22 Goddard, D.A. and Talukdar, S.C., 2002. Cretaceous Fine-Grained Mudstones Of The Maracaibo Basin, Venezuela. Gulf
Coast Association of Geological Societies Transactions, Volume 52, p. 1093-1101.
23 Goddard, D.A., 2006. Venezuela Sedimentary Basins: Principal Reservoirs & Completion Practices. Venezuela Society of
Petroleum Engineers, 60 pages.
24 Lugo, J. and Mann, P., 1995. Jurassic-Eocene Tectonic Evolution of Maracaibo Basin, Venezuela. in A.J. Tankard, R. S.
Soruco, and H.J. Welsink, eds., Petroleum Basins of South America. American Association of Petroleum Geologists, Memoir
62, p. 699725.
25 Blaser, R. and White, C., 1984. Source-Rock and Carbonization Study, Maracaibo Basin, Venezuela. in American
Association of Petroleum Geologists Memoir 35, p. 229-252.
26 Yurewicz, D.A., Advocate, D.M., Lo, H. B., and Hernandez, E.A., 1998. Source Rocks and Oil Families, Southwest
Maracaibo Basin (Catatumbo Subbasin), Colombia. American Association of Petroleum Geologists, Bulletin, vol. 82, p. 1329-
1352.
27 Yurewicz, D.A. et al.,1998.
V. Argentin

June, 2013

V. A
SUMMA
A
prospect
resource
a
ARGEN
ARY
Argentina ha
ive outside
e potential ex
Source
TINA
as world-cla
of North Am
xists in three
Figure V
e: ARI, 2013.
V
ass shale g
merica pri
e other untes
V-1. Prospect
EIA/ARI W
V-1
gas and sh
marily within
sted sedimen
tive Shale Bas
World Shale Ga
hale oil pot
n the Neuqu
ntary basins
sins of Argent

s and Shale Oil
tential po
uen Basin.
s, Figure V-1
tina
Resource Asses

ossibly the
Additional s
.

ssment
most
shale
V. Argentin

June, 2013

S
the Neuq
Thick, o
formation
Vertical s
fracture s
uniformly
C
have go
deposits.
area of n
out of 3,
risked sh
shale oil

Th
De
R
e
s
o
u
r
c
e
Ga
GI
Ri
Ri
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRe
Av
Th
Cl
B
a
s
i
c
D
a
t
a
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pr
a
Significant ex
quen Basin
organic-rich,
ns have be
shale wells a
stimulation.
y encouragin
Cretaceous s
od potentia
. Marine-de
northeast Ar
,244 Tcf of
hale oil resou
may be tech
Table
Orga
Net
Inter
Aver
hickness (ft)
epth (ft)
as Phase
IP Concentration (
sked GIP (Tcf)
sked Recoverable
eservoir Pressure
verageTOC (wt. %
hermal Maturity (%
ay Content
Basin/Gross
ShaleForm
Geologic A
Depositional Env
rospectiveArea(m
xploration pr
by Apache
marine-dep
en tested b
are producin
Horizontal w
ng.
shales in the
al, although
posited Dev
rgentina. Ar
risked, tech
urces are es
hnically reco
e V-1A. Shale

anically Rich
rval 6,5
rage
O
Lo
As
(Bcf/mi
2
)
e(Tcf)
%)
%Ro)
s Area
ation
Age
vironment
mi
2
)
V
ograms and
e, EOG, Ex
posited blac
by approxim
ng at initial ra
wells also ar
e Golfo San
higher clay
vonian shale
rgentina has
hnically reco
stimated at 4
overable, Tab
Gas Reservoi
2,750
800
300
500 - 9,500 9,50
8,000 1
Highly
verpress.
H
Ov
2.0%
0.85%
w/Medium Low
ssoc. Gas W
49.3
67.8
8.1
Los
M.
M
EIA/ARI W
V-2
early-stage
xxonMobil, T
ck shales
mately 50 w
ates of 180 t
re being test
Jorge and A
y content m
es in the Par
s an estimate
overable sha
480 billion ba
ble V-2.
ir Properties a
2,380 8
800
300
00 - 13,000 13,000
11,500 14
Highly
erpress.
H
Ove
2.0% 2
1.15% 2
w/Medium Low/
Wet Gas Dry
118.0 1
140.4 7
35.1 2
s Molles
Jurassic
Marine
World Shale Ga
e commercia
TOTAL, YP
in the Los
wells to date
to 600 bbl/d
ted although
Austral basin
may pose a
rana Basin a
ed 802 Tcf
ale gas reso
arrels, of wh
and Resource
8,140 4,
800 5
300 3
0 - 16,400 3,000
4,500 5,
Highly
erpress.
Hig
Over
2.0% 5.
.20% 0.8
/Medium Low/M
ry Gas Asso
90.1 6
773.8 19
232.1 2
Neuquen
(66,900mi
2
)
s and Shale Oil
al production
PF, and sm
Molles an
e, with mos
ay following
h initial resul
ns in souther
a risk in th
are prospect
of risked, sh
ources, Tab
ich about 27
s of Argentina
840 3,2
500 50
325 32
- 9,000 4,500 -
000 6,5
ghly
rpress.
Hig
Overp
0% 5.0
85% 1.1
Medium Low/M
c. Gas Wet
6.1 185
92.0 364
3.0 91
VacaM
U. Jurassic - L
Mar
Resource Asses

n are underw
aller compa
nd Vaca M
tly good re
typically 5-s
lts have not
rn Argentina
ese lake-fo
ive over a lim
hale gas in-
ble V-1. In-
7 billion barre
a
270 3,55
00 50
25 32
- 9,000 5,500 -
500 8,00
hly
press.
High
Overpr
0% 5.0%
5% 1.50
Medium Low/Me
Gas Dry G
5.9 302
4.8 645
1.2 193
Muerta
L. Cretaceous
rine
ssment
way in
anies.
uerta
sults.
stage
been
a also
ormed
mited
place
place
els of

50
0
5
10,000
00
hly
ress.
%
0%
edium
Gas
2.9
5.1
3.5
V. Argentin

June, 2013

R
R
e
s
e
r
v
o
i
r
B
i
D
t
P
h
i
l
E
t
t
R
e
s
o
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R
e
s
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v
o
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r
P
r
o
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r
t
i
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s
B
a
s
i
c
D
a
t
a
P
h
y
s
i
c
a
l
E
x
t
e
n
t
a
Table
Table
Thickness
Depth (ft)
R
e
s
o
u
r
c
e
Gas Phas
GIP Conc
Risked GI
Risked Re
P
r
o
p
e
r
t
i
e
s
Reservoir
AverageT
Thermal M
Clay Cont
B
a
s
i
c
D
a
t
aBa
Sh
G
Deposi
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospectiv
Thickness (ft)
Depth (ft)
Gas Phase
GIP Concentra
Risked GIP (Tc
Risked Recove
Reservoir Pres
AverageTOC (
Thermal Matur
Clay Content
Basin/G
Shale
Geolo
Depositiona
ProspectiveAr
e V-2B. Shale
e V-3C. Shale

Organicall
Net
Interval
Average
s (ft)
e
entration (Bcf/m
P (Tcf)
ecoverable (Tcf)
Pressure
TOC (wt. %)
Maturity (%Ro)
tent
asin/Gross Area
haleFormation
Geologic Age
itional Environm
veArea (mi
2
)
Organically Ric
Net
Interval
Average
ation (Bcf/mi
2
)
cf)
erable(Tcf)
ssure
(wt. %)
rity (%Ro)
Gross Area
Formation
ogic Age
al Environment
rea (mi
2
)
V
Gas Reservoi
Gas Reservoi
Agu
U. Juras
ly Rich
6,
i
2
)
ment
4,620
ch 800
400
6,600 - 11,00
8,000
Slightly
Overpress.
3.5%
0.85%
Low/Medium
Assoc. Gas
32.5
67.5
6.8
L. I
EIA/ARI W
V-3
ir Properties a

ir Properties a
uada Bandera
ssic - L. Cretaceo
Lacustrine
8,380
1,600
400
,500 - 16,000
13,000
Normal
2.2%
3.00%
Med./High
Dry Gas
151.7
254.2
50.8
4,600
800
400
0 9,000 - 14,5
11,500
Slightly
Overpress
3.5%
1.15%
m Low/Mediu
Wet Gas
113.8
235.6
47.1
Inoceramus-Magn
L. Cretaceo
Marine
Austral-Magall
(65,000mi
World Shale Ga
and Resource
and Resource
ous
920
1,200
420
6,600 - 8,000
7,300
Normal
2.0%
0.85%
Med./High
Assoc. Gas
41.2
9.1
0.5
San Jorge
(46,000mi
4,310
800
400
500 11,500 - 16
13,500
s.
Slightly
Overpres
3.5%
1.60%
um Low/Med
Dry Gas
155.9
302.4
75.6
nas Verdes
us
lanes
2
)
s and Shale Oil
s of Argentina
s of Argentina
540
1,200
420
0 8,000 - 10,000
9,000
Normal
2.0%
1.15%
Med./High
Wet Gas
103.4
13.4
2.0
Pozo D-129
L. Cretaceous
Lacustrine
e
2
)
270
400
200
6,400 9,000 - 10,
0 9,500
y
ss.
Normal
2.0%
1.15%
ium Low/Medi
s Wet Gas
34.9
1.1
0.2
Po
(7
Resource Asses

a
a
4,120
1,200
420
10,000 - 16,400
12,000
Normal
2.0%
2.00%
Med./High
Dry Gas
163.3
161.5
32.3
s
2,230
400
200
000 10,000 - 11,5
10,500
Normal
2.0%
1.40%
um Low/Mediu
s Dry Gas
56.9
15.2
3.0
ontaGrossa
Devonian
Marine
Parana
747,000mi
2
)
ssment

500
m
V. Argentin

June, 2013

R
e
s
o
u
r
c
e
R
e
s
e
r
v
o
i
r
B
a
s
i
c
D
a
t
a
P
h
y
s
i
c
a
l
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x
t
e
n
t
R
e
s
o
u
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e
R
e
s
e
r
v
o
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r
P
r
o
p
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r
t
i
e
s
B
a
s
i
c
D
a
t
a
P
h
y
s
i
c
a
l
E
x
t
e
n
t
a
Table
Table
Depth (ft)
R
e
s
o
u
r
c
e
Oil Phase
OIP Conc
Risked OI
Risked Re
P
r
o
p
e
r
t
i
e
s
Reservoir
Average T
Thermal M
Clay Cont
B
a
s
i
c
D
a
t
aBa
Sh
Depos
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospecti
Thickness
Depth (ft)
Oil Phase
OIP Concentr
Risked OIP (B
Risked Recov
p
Reservoir Pre
Average TOC
Thermal Matu
Clay Content
Basin
Shale
Geo
Deposition
ProspectiveA
Thickness (ft)
e VI-2A. Shale
e VI-2B. Shale

Organica
Net
Interval
Average
e
centration (MMb
IP (B bbl)
ecoverable (B b
r Pressure
TOC (wt. %)
Maturity (%Ro)
tent
asin/Gross Area
hale Formation
Geologic Age
itional Environ
ve Area (mi
2
)
s (ft)
Organically R
Net
Interval
Average
ration (MMbbl/m
B bbl)
verable(B bbl)
essure
C (wt. %)
urity (%Ro)
/Gross Area
e Formation
ologic Age
nal Environment
Area (mi
2
)
)
V
e Oil Reservoi
e Oil Reservoi
2
ally Rich
6,500
8
H
Ove
2
0
Low/
3
5
3
bbl/mi
2
)
bbl)
)
a
n
nment
920
Rich 1,200
420
6,600 - 8,000
7,300
Normal
2.0%
0.85%
Med./High
Oil
63.7
14.1
0.42
Poz
L. Cre
Lac
i
2
)
San
(46,0
t
EIA/ARI W
V-4
r Properties a

r Properties a
2,750
800
300
0 - 9,500 9,50
8,000
Highly
erpress. Ov
2.0%
0.85%
/Medium Low
Oil Co
36.4
50.0
3.00
Los Molles
M. Jurassic
Marine
540
1,200
420
0 8,000 - 10,000
9,000
Normal
2.0%
1.15%
Med./High
Condensate
20.3
2.6
0.08
o D-129
etaceous
custrine
n Jorge
000mi
2
)
World Shale Ga
and Resources
and Resources
2,380
800
300
00 - 13,000 3
11,500
Highly
verpress. O
2.0%
1.15%
w/Medium L
ondensate
9.2
11.0
0.66
s
c
Neuque
(66,900m
4,620
800
400
6,600 - 11,000
8,000
Slightly
Overpress.
3.5%
0.85%
Low/Medium
Oil
48.4
100.6
5.03
L. Inoceramus-
L. Creta
Mar
Austral-M
(65,00
s and Shale Oil
s of Argentina
s of Argentina
4,840
500
325
3,000 - 9,000
5,000
Highly
Overpress.
5.0%
0.85%
Low/Medium
Oil
77.9
226.2
13.57
Vaca M
U. Jurassic - L.
Marin
en
mi
2
)
4,600
800
400
9,000 - 14,500
11,500
Slightly
Overpress.
3.5%
1.15%
Low/Medium
Condensate
14.8
30.6
1.53
Magnas Verdes
aceous
rine
agallanes
0mi
2
)
Resource Asses

a
a
3,270
500
325
4,500 - 9,000
6,500
Highly
Overpress.
5.0%
1.15%
Low/Medium
Condensate
22.5
44.2
2.65
Muerta
. Cretaceous
ne
Parana
(747,000mi
2
)
Ponta Grossa
Devonian
Marine
270
400
200
9,000 - 10,000
9,500
Normal
2.0%
1.20%
Low/Medium
Condensate
8.1
0.3
0.01
ssment

)
a
0
V. Argentin

June, 2013

INTROD
A
sediment
N
ve
d
G
Ju
re
A
A
m
P
a
s
le
1 N
1.1 In
L
Cenozoic
of 66,900
southeas
sequence
siliclastic
deep an
conventio
and shale

a
DUCTION
Argentina has
tary basins,
Neuquen Ba
ertical wells
eposited Los
Golfo San Jo
urassic to C
esources in a
Austral Basi
Argentina con
major source
Paran Basi
rea of the P
imple but th
ess prevalen
NEUQUEN
ntroduction
ocated in w
c strata that
0 mi
2
, the ba
st by the Co
e exceeds
c rocks.
2
Co
nd structural
onal and tig
e oil develop
s large and
Figure V-1.
asin: The m
s drilled sin
s Molles and
orge Basin:
Cretaceous a
a structurally
in: Known a
ntains marin
rock in the
n: Although
Paran Basin
he basin is p
nt in Argentin
BASIN
n and Geo
west-central
were depos
asin is borde
olorado Basi
22,000 ft
ompared with
lly less def
ght sandston
pment area o

V
potentially h
Basins ass
main focus o
nce 2010 in
d especially
: Containing
age, this bas
y simple set
as the Maga
ne-deposited
basin.
more exten
n with Devo
partly obscu
na than in Br
logic Setti
Argentina, t
sited in a ba
ered on the
n and North
in thicknes
h the thruste
ormed. Alr
nes, the Neu
of South Am
EIA/ARI W
V-5
high-quality s
sessed in thi
of shale exp
ndicate goo
Vaca Muert
mostly non
sin has untes
ting.
llanes Basin
d black shale
nsive in Braz
nian black s
ured on surf
razil.
ng
the Neuque
ck-arc tecto
west by the
h Patagonian
ss, comprisi
ed western p
ready a ma
uquen Basin
merica.
World Shale Ga
shale gas a
is chapter in
ploration in
od productio
ta shales of J
n-marine lacu
sted but pro
n in Chile, th
e in the Low
zil and Para
shale potent
face by flood
n Basin con
onic setting.
1
e Andes Mo
n Massif, Fi
ing carbona
part of the b
ajor oil and
n is emergin
s and Shale Oil
nd oil resou
nclude:
Argentina,
on potential
Jurassic age
ustrine shale
ospective, pr
he Austral B
wer Cretaceo
aguay, Argen
tial. The str
d basalts, a
ntains Late
Extending
untains and
igure V-2.
ate, evapor
basin, the ce
d gas produ
ng as the pr
Resource Asses

rces in four
some 50 m
l in the ma
e.
e source roc
rimarily shale
Basin of sou
ous, conside
ntina has a
ructural sett
although the
Triassic to
over a total
d on the eas
The sedime
rite, and m
entral Neuqu
uction area
remier shale
ssment
main
mostly
arine-
cks of
e gas
thern
red a
small
ing is
y are

Early
area
st and
entary
marine
uen is
from
e gas
V. Argentin

June, 2013

a
Source: AR
Fig
RI, 2013.
V
ure V-2. Neuq
EIA/ARI W
V-6
quen Basin St
World Shale Ga
tructure Map

s and Shale Oil Resource Asses

ssment
V. Argentin

June, 2013

T
interest a
Vaca Mu
and gas
a
The stratigrap
are the shal
uerta formati
fields in the
Source
Modifie
phy of the N
les of the M
ons. These
basin and a
Fig
e: Howell et al., 2
ed from Howell, J.,
V
Neuquen Bas
Middle Jurass
e two thick d
are considere
gure V-3: Neu
2005.
et al., 2005
LO
VA
EIA/ARI W
V-7
sin is shown
sic Los Mol
eepwater m
ed the prima
quen Basin St
OS MOLLES FM
ACA MUERTA FM
World Shale Ga
n in Figure V
les and Lat
arine seque
ary targets fo
tratigraphy.
M
s and Shale Oil
V-3. Of part
e Jurassic-E
ences source
or shale gas
Resource Asses

icular explor
Early Cretac
ed most of th
developme

ssment
ration
ceous
he oil
nt.
V. Argentin

June, 2013

1.2 R
L
considere
Basin. T
Molles at
The ove
system, r
T
than 3,30
the east
deposit p
500 feet
Source: Mos

a
Reservoir P
Los Molles S
ed an impo
Thermal mat
t 50 to 150
rlying Late
resulting in o
The Los Moll
00 ft thick in
.
4
A southe
particularly t
thick.
5

squera et al., 20
Properties
Shale. The
ortant source
turity modeli
Ma, with the
Jurassic Aq
overpressuri
les shale is
n the central
east-northwe
hick in the b
Figure V-4:
009.
V
(Prospecti
e Middle Jur
e rock for c
ing indicates
e shallower
quilco Form
ing (0.60 psi
distributed a
l depocente
est regional
basin trough
Neuquen Bas
EIA/ARI W
V-8
ive Area)
rassic (Toar
conventiona
s that hydroc
Lajas Form
mation evapo
i/ft) in parts o
across muc
r. Available
cross-secti
hs. Well logs
sin SW-NE Reg
World Shale Ga
rcian-Aalenia
l oil and ga
carbon gene
mation tight s
orites effect
of the basin.
h of the Ne
e data show
ion, Figure
s reveal a b
gional Cross S
s and Shale Oil
an) Los Mo
as deposits
eration took
sands servin
tively seal t
.
uquen Basin
ws the shale
V-4, shows
basal Los Mo
Section
Resource Asses

lles Formati
in the Neu
place in the
ng as reserv
this hydroca
n, reaching
thinning tow
s the Los M
olles shale a
ssment
ion is
uquen
e Los
voirs.
3

arbon
more
wards
Molles
about
V. Argentin

June, 2013

O
with max
depths o
shale-pro
T
across th
showed a
shallowe
Formatio
nearly 4.
data wer
potential
thick inte
T
highly im
eastern
center.
8,9
located
Formatio
T
cutoff in
Arch in th
area of 2
A
most of t
the footh
region, th

a
On average,
ximum depth
of 7,000 feet
ospective de
Total organic
he Neuquen
average TO
er depths of
on, sampled
0%. The lo
re available
appears hig
ervals of Los
The thermal
mmature (R
o

and southe
9
The lower
north of the
on.
The prospect
the north, th
he south. T
2,750 mi
2
; the
ARI extended
the conventio
hills of the A
he thermal m
the prospec
h surpassing
t or shallowe
epth across m
c carbon for
n Basin. Sa
OC ranging fr
7,000 feet a
from depths
owermost 80
e for the ce
ghest. One
Molles shal
maturity of
= 0.3%) in t
rn parts of
r portion of t
e Huincul A
tive area of t
hinning in th
The oil-prone
e wet gas w
d the wester
onal oil and
Andes Moun
maturity is fa

V
ctive Los M
g 16,000 ft in
er within the
much of the
r the Los M
mples from
rom 0.55 to
at one locatio
s of 10,500 t
00-ft section
entral and n
well in the
le, with aver
the Los Mo
the shallow
the basin,
the Los Mol
Arch. Gas
the Los Moll
he east, and
e thermal ma
indow 2,380
rn play edge
gas fields a
ntains. Whi
vorable.
EIA/ARI W
V-9
olles shale
n the basin c
e uplifted Hu
Neuquen Ba
olles shale
five outcrop
5.01%.
6
In
on. Further
o 13,700 fee
here record
northern reg
basins cen
age 2% and
olles shale v
Huincul Arc
to fully dry
lles is in the
shows are
es, Figure V
d complex fa
aturity windo
0 mi
2
; and th
e beyond the
are located, i
le there is s
World Shale Ga
occurs at d
center. In th
uincul Arch.
asin.
was determ
ps in the so
the southea
r east, anoth
et, yielded T
ded a mean
gions, where
nter penetrat
d 3% TOC, re
varies acros
ch region, to
y-gas mature
e wet gas w
e prevalent
V-5, is define
aulting and s
ow within the
e dry gas w
e main prod
into the Agri
some geolo
s and Shale Oil
depths of 8,0
he south, the
The Los M
mined from v
uthwestern
ast, TOC av
her interval o
TOCs in the
n TOC of ab
e shale is
ted two seve
espectively.
ss the Neug
o oil-prone (R
e (R
o
> 2.0
window (R
o
>
throughout
ed by low vit
shallow dep
e prospectiv
indow 8,140
uctive Neuq
io Fold and T
ogic risk ass
Resource Asses

000 to 14,5
e shale occu
Molles shale
various loca
part of the
veraged 1.25
of the Los M
range of 0.5
bout 2%. Lim
deeper and
eral-hundred
7

guen Basin,
R
o
= 0.7%) i
0%) in the
> 1.0%) in a
the Los M
trinite reflect
pth at the Hu
e area cove
0 mi
2
.
quen area, w
Thrust Belt a
sociated with
ssment
00 ft,
urs at
e is at
ations
basin
5% at
Molles
5% to
mited
d gas
d-foot
from
in the
basin
a well
Molles
tance
uincul
ers an
where
along
h this
V. Argentin

June, 2013

Fig

V
of the V
productio
dark gre
organic-r
kerogen.
higher TO
a
gure V-5: Pros
Source: A
Vaca Muerta
Vaca Muerta
on in the Ne
ey shale and
rich marine
Although
OC and is m
spective Shale
ARI, 2013.
a Shale. The
a Formation
uquen Basin
d lithograph
shale was d
somewhat
more widespr
V-
e Gas and Sha
e Late Juras
is conside
n. The Vaca
hic lime-mud
deposited in
thinner than
read across
EIA/ARI W
-10
ale Oil Areas, L
ssic to Early
red the prim
a Muerta sh
dstone that
reduced ox
n the Los M
the basin.
World Shale Ga
Los Molles Fo
Cretaceous
mary source
hale consists
totals 200
xygen enviro
Molles Fm,
s and Shale Oil
ormation, Neu
s (Tithonian-
e rocks for
s of finely-str
to 1,700 fe
onment and
the Vaca M
Resource Asses

quen Basin.

-Berriasian) s
convention
ratified black
eet thick.
10
contains Ty
Muerta shale
ssment
shale
al oil
k and
The
ype II
e has
V. Argentin

June, 2013

T
west, ran
outcrop n
T
Sparse a
the north
maximum
6.5% is r
W
thermal m
Vaca Mu
from less
northwes
in the oil
T
Neuquen
oil-prone
4,840 mi
1.3 R
R
within the
and 3.7 b
in-place
moderate
bbl/mi
2
fo
T
resource
billion ba
very high
for shale
a
The Vaca M
nging from
near the bas
The Vaca Mu
available TO
h.
13
These
m of 14.2%.
reported in th
While the Va
maturity cha
uerta illustra
s than 0.7%
st trough.
14

window.
The Vaca Mu
n Basin, as s
e thermal ma
2
; the wet ga
Resource A
Risked, tech
e Los Molle
billion barrel
shale gas a
e to high res
or shale oil, d
The Vaca Mu
es of 308 Tcf
arrels of riske
h resource c
oil, depend
uerta Forma
absent to o
sin edges to
uerta Forma
OC data were
asphaltites
In the sou
he lower bitu
aca Muerta
anges, incre
ting the oil a
% R
o
along
Northeast o
uerta Forma
shown on th
aturity windo
as window c
Assessmen
nically reco
es Formation
s of shale o
and shale o
source conc
depending o
uerta Forma
f of gas and
ed, in-place
oncentration
ing on therm
V-
ation thicken
over 700 fee
over 9,000 f
ation genera
e derived fro
s are very r
uth, mapped
uminous sha
Formation i
asing from e
and gas reg
the eastern
f the Huincu
tion has thre
he thermal m
ow within the
overs 3,270
nt
verable sha
n of the Neu
oil and conde
il resources
entrations o
on the therm
tion has risk
16 billion ba
shale gas a
ns of 66 to 3
mal maturity w
EIA/ARI W
-11
ns from the
et thick in t
feet deep in
lly is richer
om wells an
rich in orga
d TOC data
ale units of th
is present a
east to west
gions of this
border of t
ul Arch, R
o
o
ee distinct p
maturity and
e prospectiv
mi
2
; and the
ale gas and
uquen Basin
ensate, from
s, Tables 1
f 49 to 190
al maturity w
ked, technic
arrels of oil a
nd shale oil
303 Bcf/mi
2
f
window.
World Shale Ga
south and
the basin ce
the central s
in TOC tha
nd bitumen v
anic carbon,
ranges from
he Vaca Mu
across much
t. Figure V
s formation.
the basin

to
of 0.8% was
prospective a
prospective
ve area cove
e dry gas wi
d shale oil
n are estima
m 982 Tcf an
and 2. The
Bcf/mi
2
for s
window.
cally recover
and condens
resources. T
for shale gas
s and Shale Oil
east toward
enter.
11
De
syncline.
12

n the Los M
veins sample
, increasing
m 2.9 to 4.0%
erta.
h of the Ne
V-4 is a cros
Thermal m
o over 1.5%
measured,
areas of hyd
e area map,
ers an area
ndow covers
resources f
ated at 275
nd 61 billion
e Los Molle
shale gas an
rable shale g
sate, from 1
The Vaca M
s and 23 to
Resource Asses

ds the north
epth ranges

Molles Forma
ed from min
northward
%. TOC of
euquen Basi
ss-section fo
maturity incre
% R
o
in the
placing this
drocarbons i
Figure V-6.
of approxim
s 3,550 mi
2
.
from black s
Tcf of shale
barrels of ris
es Formation
nd 9 to 36 m
gas and sha
,202 Tcf and
Muerta has hi
78 million bb

ssment
h and
from
ation.
nes in
to a
up to
n, its
or the
eases
deep
area
in the
The
mately
shale
e gas
sked,
n has
million
ale oil
d 270
igh to
bl/mi
2

V. Argentin

June, 2013

Fig

1.4 R
E
Vaca Mu
million ne
and othe
wells, YP
a
ure V-6. Prosp
Source: A
Recent Act
Early drilling
uerta Format
et acres in t
er companie
PF has drille
pective Shale
RI, 2013.
ivity
and product
tion mostly
the basin an
s to jointly d
ed 37 Vaca M
V-
Gas and Shal
tion testing a
at depths of
nd is negotia
develop its s
Muerta wells
EIA/ARI W
-12
e Oil Areas, V
are underwa
f 6,000 to 1
ating with C
shale resou
s through 20
World Shale Ga
Vaca Muerta F
ay in the Ne
1,000 ft. Y
Chevron, TO
rces. Includ
012.
15
Chev
s and Shale Oil
ormation, Neu
euquen Basi
PF reported
TAL, Statoil
ding earlier
ron has repo
Resource Asses

uquen Basin.

in, evaluatin
d it holds ab
l, Dow Chem
Repsol ope
ortedly agre
ssment
g the
bout 3
mical,
erated
eed to
V. Argentin

June, 2013

invest up
final app
130 wells
R
vertical w
to 600 bb
of 92 Tcf
A
potential
its net re
horizonta
stimulatio
horizonta
MMcfd fr
to invest
and Rio N
E
Neuquen
well in th
evaluatin
C
acres in
test the V
partner E
Vaca Mu
vertical s
Formatio
gas with

a
p to $1 billion
roval. CNO
s in the basi
Repsol, which
wells targetin
bl/day on res
f and 7.0 bill
Apache has
, of which th
ecoverable p
al well durin
on, describe
al, drilled int
rom a 2100
$200 MM d
Negro block
EOG Resour
n Basin. Th
he Vaca Mu
ng the results
Calgary-base
the Neuque
Vaca Muerta
ExxonMobil,
uerta Forma
shale well,
on at depths
9 to 18 bbl/d
n to drill 100
OOC signed
n.
h previously
ng the Vaca
stricted 4-m
ion barrels o
1.3 million
he company
potential at 0
ng 2012, a r
ed by Apach
to the dry ga
lateral that
uring 2013 t
s.
18

rces estimat
e company
erta Format
s of the two
ed Americas
en Basin. T
a Formation
IPd at 309
ation followi
drilled on t
s of 2,570-2,
day of conde

V-
0 wells with Y
a joint ventu
y operated Y
Muerta Sha
m choke. In
of contingent
net acres
estimates 5
0.8 billion ba
relatively sh
he as very
as thermal
was stimula
to drill 16 ne
tes it holds a
reported low
tion, with pro
wells and pl
s Petrogas o
To date the
. Its LTE.x1
9 boe/day (3
ing a 5-stag
the Los To
,929 m. Th
ensate follow
EIA/ARI W
-13
YPF in the N
ure deal wit
YPFs positio
ale that prod
n 2012, Rep
t and prospe
in the Neu
586,000 net
rrels. The c
ort 1,900-ft
encouraging
maturity win
ated by a 9-
et wells focu
about 100,0
wer-than-exp
oduction sim
lans to proce
operates 15
company ha
1 vertical we
30-day avera
ge hydraulic
oldos I bloc
is well prod
wing a 4-stag
World Shale Ga
Neuquen Ba
h YPF to inv
on in the Neu
duced at en
psol estimate
ective shale
uquen Basi
acres is liq
company com
lateral treat
g.
17
The co
ndow at a d
-stage fractu
using on the
000 net acre
pected resu
milar to its n
eed cautious
5 blocks cov
as drilled fo
ell on the Lo
age rate; 82
c stimulatio
ck, intersect
duced up to
ge fracture s
s and Shale Oil
sin, althoug
vest up to $
uquen Basin
couraging in
ed that its le
gas and oil
in with Vac
uids-rich. A
mpleted its f
ted with a 7
ompanys e
epth of 4,40
ure treatmen
Vaca Muert
es with shale
lts from its f
nearby vertic
sly during 20
vering nearl
ur shale exp
s Toldos II b
2% oil) from
n. The co
ed 562 m
3.2 million
stimulation.
2
Resource Asses

h the deal a
$1.5 billion to
n, drilled som
nitial rates o
eases held a
resources.
16
ca Muerta S
Apache estim
first Vaca M
7-stage hyd
arlier Los M
00 m, IPd a
nt. Apache
te within the
e potential i
first horizont
cal well. EO
013.
19

y 1.4 million
ploration we
block, drilled
m the 343-m
ompanys se
of Vaca M
ft
3
/day of na
0

ssment
awaits
o drill
me 20
of 180
a total
6

Shale
mates
uerta
raulic
Molles
at 4.5
plans
e TDF
n the
tal oil
OG is
n net
ells to
d with
thick
econd
uerta
atural
V. Argentin

June, 2013

2 G
2.1 In
L
one-quar
basin, th
on the w
extent, th
T
Somuncu
structure
are wide
basin is l
E
day loca
Gondwan
Middle J
The regi
formed, i
Bandera
2.2 R
A
Formatio
black sha
is lacust
sources
platform

a
GOLFO SAN
ntroduction
ocated in ce
rter of Argen
e San Jorge
west to the o
he onshore G
The basin is
ura Massif
es of the San
espread in th
ess faulted.
2
Extensional e
ation of the
na supercon
urassic, as
ion subside
including the
Formation.
Reservoir P
Aguada Ban
on comprise
ales and mu
rine in origi
in particula
depositiona
N JORGE
n and Geo
entral Patag
ntinas conve
e extends ac
offshore Atla
Golfo San Jo
s bordered
to the nort
n Bernardo
he northeas
23

events mark
Golfo San
ntinent bega
the Lonco
d by the en
e thick black
Properties
ndera Sha
s fine gray
udstones inc
n, although
ar beds.
26
T
l environmen

V-
BASIN
logic Setti
onia, the 67
entional oil
cross the wid
antic contine
orge Basin c
by the De
th, and the
Fold Belt tra
stern and so
ed by the fo
Jorge Basi
n to break u
Trapial Volc
nd of the J
k shale and
(Prospecti
le. The L
sandstones
creasing tow
foraminifera
Towards the
nt were obse
EIA/ARI W
-14
ng
7,000-mi
2
Go
and gas pro
dth of south
ental shelf in
covers appro
eseado Grab
e Andes Mo
ansect the w
outhern flan
ormation of g
in began in
up.
24
A sepa
canics were
Jurassic and
mudstone s
ive Area)
Late Jurass
s that grade
wards its bas
a found in w
e north, oth
erved in wel
World Shale Ga
olfo San Jor
oduction.
21
A
hern Argentin
n the east.
oximately 46
ben and M
ountains in
west-central
ks, while th
grabens and
n the Triass
arate period
deposited
d extensive
source rock
sic-Early Cr
e upward in
se, Figure V
western are
her biota ind
l samples ne
s and Shale Oil
rge Basin ac
An intra-cra
na, from the
Excluding i
6,000 mi
2
.
Massif to the
the west.
region.
22
E
he northwes
d half-graben
sic to Early
d of extensio
via northwe
, mainly lac
ks of the Neo
retaceous A
to a tufface
V-7.
25
Much
eas suggest
dicative of
ear Lago Co
Resource Asses

ccounts for a
tonic extens
e Andean foo
ts small offs
e south, by
Compress
Extensional f
tern edge o
ns in the pre
Jurassic as
on followed i
est-striking fa
custrine dep
ocomian Ag
Aguada Ban
eous matrix,
h of the form
possible m
an outer m
olhue Huapi.
ssment
about
sional
othills
shore
y the
sional
faults
of the
esent-
s the
n the
faults.
posits
guada
ndera
, with
mation
marine
marine
.
27

V. Argentin

June, 2013

Source: Sylw

T
and occa
thick in th
variation
north. T
probably
D
underlyin
along the
basin typ
a
wan, 2001.
The Aguada
asional lime
he southwes
also is see
he Aguada
only a fract
Depth to the
ng Middle Ju
e onshore c
pically avera
Figure
Bandera Fo
stone. Tota
st to 0-2,000
n in the wes
Bandara Fo
ion of which
top of the A
urassic Lonc
oast in the c
age a more p
V-
e V-7: Golfo S
ormation is a
al formation
0 ft thick abo
st. Limited
ormation gen
is high-qua
guada Band
col Trapial vo
center of the
prospective
EIA/ARI W
-15
San Jorge Bas
a heterogen
thickness v
out 60 miles
data is pres
nerally is 1,0
lity organic s
dera Formati
olcanics. Bu
e basin. De
10,000 to 1
World Shale Ga
in Stratigraph
neous unit c
varies widel
offshore in t
sent south o
000 to 5,000
shale.
ion was map
urial depth re
epocenters i
2,000 ft dee
s and Shale Oil
hy
comprising s
y, from mor
the east. A
of Lago Colh
0 ft thick in t
pped based
eaches a ma
in the weste
ep. The Ag
Resource Asses

shale, sands
re than 15,0
similar thick
hue Huapi t
the central b
on the top o
aximum 20,0
ern portion o
guada Bande
ssment
stone,
000 ft
kness
to the
basin,
of the
000 ft
of the
era is
V. Argentin

June, 2013

much sh
coastal o
and 20,0
L
considera
available
ranged fr
intervals
R
o
.
P
to 1.3%)
Aguada
Figure V
to exceed
U
prospect
Golfo Sa
region (<
P
range of
considere
laminatio
to favora
were dep
T
maxima e
ft thick.
about 1,0
a
allower, 2,0
onshore port
00 ft deep.
imited geoc
ably deeper
e wells have
rom 1.44%
reached 4.1
Petroleum ba
) is typically
Bandera Fo
V-8. The un
d 4%.
Using depth
ive area for
an Jorge Ba
<6,000 ft dee
Pozo D-129
lithologies, w
ed most pr
ons, and the
bly anoxic d
posited in the
The Pozo D-1
exceeding 4
A locally th
000 ft thick to
00 to 8,000
tion of the ba
chemical dat
r than the
TOC and R
to 3.01% at
19% TOC. V
asin modelin
y achieved a
rmation app
it is likely to
distribution
the Aguada
asin. The c
ep) were exc
Shale. Th
with the dee
rospective f
absence of
depositional
e shallower
129 Shale is
4,500 ft thick
hick deposit
o absent.
V-
ft deep, alo
asin, the Ag
ta were ava
conventiona
R
o
data, both
depths of 1
Vitrinite refle
g indicates t
across the
pears to be m
be over ma
n and appro
a Bandera S
central coas
cluded as no
e Early Cre
ep lacustrine
for hydrocar
f fossil burro
conditions.
30
water enviro
s consistentl
k. Along the
occurs in th
EIA/ARI W
-16
ong the north
uada Bande
ailable for an
al reservoirs
h located in t
12,160 ft and
ectance indic
that the mini
basin at de
mature for g
ature in the d
opriate mini
hale covers
tal basin (>
ot prospectiv
etaceous Po
sediments -
rbon genera
ows in the m
0
Siltstones
onments of t
y thicker tha
northern fla
he western
World Shale Ga
hern and we
era Shale is
nalyzing the
s and thus
the basins w
d 11,440 ft,
cated a dry-g
imum gas ge
epths below
gas generatio
deep basin
mum and m
approximat
>16,000 ft de
ve.
ozo D-129 F
-- organic bl
ation.
29
Th
marine shale
, sandstones
the Pozo D-1
an 3,000 ft in
ank the interv
part of the
s and Shale Oil
estern flanks
about 1,500
e Aguada B
rarely sam
western area
respectively
gas thermal
eneration th
w about 6,60
on across m
center, whe
maximum R
tely 8,380 m
eep) and th
Formation c
ack shales a
he presence
portions of
s, and oolitic
129.
n the central
val is typical
basin, but t
Resource Asses

s. In the ea
0 to 2,500 ft
andera, whi
mpled. Only
a. Average
y.
28
Organic
maturity of
reshold (R
o
00 ft. Thus
most of the b
ere R
o
is mod
R
o
cutoffs, A
mi
2
of the ons
he northern
omprises a
and mudston
e of pyrite,
this unit all
c limestones
l basin, with
lly 1,000 to 2
hins rapidly
ssment
astern
thick
ich is
y two
TOC
c-rich
2.4%
= 1.0
s, the
basin,
deled
ARIs
shore
Lake
wide
nes
dark
point
s also
local
2,000
from
V. Argentin

June, 2013

Sourc

N
2,800 ft d
To the so
129 deep
Comodor
A
correspo
recorded
the east,
is corres
levels, 0
resource
a
Figure
ce: ARI, 2013.
Northeast of
deep. Just s
outh, depths
pens along
ro Rivadavia
Available dat
onding early
d, with slight
organic car
spondingly h
.83% R
o
wi
e assessmen
e V-8: Aguada
Lago Colhu
southwest of
s range from
the eastern
a.
a indicates o
gas maturity
ly higher 0.5
rbon (TOC) r
high, 2.49 to
th a

measu
nt.
V-
a Bandera Fm
ue Huapi, the
f the lake, de
m 5,000 to 6,
n coastal fla
organic richn
y of 1.06% R
5% R
o
near
rises to arou
o 3.15% R
o
.
ured TOC h
EIA/ARI W
-17
Prospective A
e Pozo D-12
epth increas
400 ft, with
nk of the ba
ness in the s
R
o
. In the no
Lago Colhu
und 1.22%.
In the sou
ere of abou
World Shale Ga
Area, Golfo Sa
29 shoals ra
ses from abo
similar dept
asin to near
southwest, 1
orth-central r
ue Huapi.
31

The therma
uth, therma
ut 0.84%, e
s and Shale Oil
an Jorge Basi
apidly from
out 5,000 ft t
hs in the we
rly 15,900 ft
1.42% to 2.4
region a low
Towards th
l maturity in
l maturity d
excluding thi
Resource Asses

in
6,000 ft to a
to nearly 9,5
est. The Poz
t near the c
45% TOC, w
0.32% TOC
e basin cen
this deep se
rops to oil-p
is area from
ssment

about
500 ft.
zo D-
city of
with a
C was
ter in
etting
prone
m the
V. Argentin

June, 2013

A
on depth
prospect
the dry g
areas.
Figu
Source: AR

2.3 R
A
the Agua
gas, from
resource
a
ARI defined t
h and avail
ive area for
gas window
ure V-9: Pozo
I, 2013.
Resource A
Aguada Ban
ada Bandera
m risked sha
e concentrati
the shale pr
able (but in
the Pozo D
(4,120 mi
2
)
D-129 Fm, TO
Assessmen
ndera Forma
a Formation
ale gas in-p
on of 152 Bc
V-
rospective a
ncomplete)
D-129 Shale
, with much
OC, Thermal M
nt
ation. Risk
in the Golfo
place of 254
cf/mi
2
.
EIA/ARI W
-18
reas for the
vitrinite refl
e is estimate
h smaller we
Maturity, and P
ked, technica
o San Jorge
4 Tcf, Table
World Shale Ga
e Pozo D-12
lectance da
ed at approx
et gas (540
Prospective Ar
ally recovera
Basin are e
e 1. The p
s and Shale Oil
29 Formation
ata, Figure
ximately 5,58
mi
2
) and oil
rea, Golfo San
able shale g
estimated at
play has a h

Resource Asses

n based prim
V-9. The
80 mi
2
, main
l-prone (920
n Jorge Basin
gas resource
51 Tcf of na
high net ave
ssment
marily
total
nly in
0 mi
2
)

es for
atural
erage
V. Argentin

June, 2013

P
shale re
condensa
resource
of 41 to
dependin
2.4 R
N
3 A
3.1 In
L
but untes
usually c
Tierra de
produced
Springhil
T
region a
Cretaceo
deformed
3,000 to
and Low
10,000 f
mainly de
oil potent
T
marine c
sequence
condition
Barrosa
a
Pozo D-129
sources est
ate, from 18
es, Tables 1
163 Bcf/mi
ng on the the
Recent Act
No shale acti
AUSTRAL B
ntroduction
ocated in so
sted shale g
called the Au
el Fuego reg
d in the bas
l Formation
The Austral
nd a thrust
ous and Tert
d metamorp
6,000 ft alon
wer Cretaceo
ft across lar
eepwater tu
tial.
33

The organic-
conditions w
e consists
ns within sma
formations w
Formation.
timated at 3
84 Tcf and
and 2. The
2
of shale g
ermal maturi
ivity
vity has bee
BASIN
n and Geo
outhern Pata
gas potentia
ustral Basin.
gion, where i
sin for decad
at depths of
Basin comp
t faulted we
tiary sedime
phic baseme
ng the easte
ous petroleu
rge areas,
rbidite clasti
-rich shales
within a Neo
of Jurassic
all half-grabe
were depos
V-
The Pozo D
35 Tcf of s
17 billion b
e Pozo D-12
gas and 20
ity window.
en reported i
logic Setti
agonia, the 6
al, Figure V
A small so
it is referred
des from de
f about 6,000
prises two
estern area.
entary and v
ent of Paleo
ern coast to
um source r
Figure V-11
ic deposits u
of Jurassic
ocomian sa
c source ro
ens. Interbe
sited in a sh
EIA/ARI W
-19
D-129 Form
shale gas a
barrels of ri
9 has mode
to 64 millio
n the Golfo S
ng
65,000-mi
2
A
V-10. Most o
outhernmost
to as the M
eltaic to fluv
0 ft.
main struct
The basi
volcaniclastic
ozoic age.
a maximum
rocks are p
1.
32
The o
up to 4 km th
c and Early
g on the e
ocks that ac
edded shale
hallow-water
World Shale Ga
mation has ris
and 0.5 billio
sked, in-pla
erate to high
on bbl/mi
2
o
San Jorge B
Austral-Mag
of the basin
portion of th
Magallanes B
vial sandston
ural regions
n contains
c rocks whic
Total sedim
25,000 ft al
present at m
overlying Cre
hick which a
Cretaceous
dge of the
ccumulated
and sandst
r marine env
s and Shale Oil
sked, techni
on barrels
ace shale ga
net resourc
of shale oil a
Basin.
gallanes Bas
n is in Argen
he basin is l
Basin. Oil a
nes in the E
s: a normal
a thick seq
ch unconform
ment thickne
long the bas
moderate de
etaceous se
appear to lac
s age forme
Andes mar
under rest
tone of the Z
vironment.
34
Resource Asses

cally recove
of shale oil
as and sha
ce concentra
and conden
sin has prom
ntina, where
located in C
nd gas has
Early Cretac
l faulted ea
quence of U
mably overli
ess ranges
sin axis. Jur
epths of 6,00
ection comp
ck shale gas
ed under a
rgin. The
tricted lacus
Zapata and P
4
The mid-
ssment
erable
l and
ale oil
ations
nsate,
mising
e it is
Chiles
been
ceous
astern
Upper
e the
from
rassic
00 to
prises
s and
noxic
basal
strine
Punta
lower
V. Argentin

June, 2013

Jurassic
consistin
insufficie

a
Tobifera F
g of Types
ently brittle fo
Figure V
Formation c
I to III kerog
or shale expl
V-10: Stratigra
Source: Rosse
V-
contains 1%
gen. Howev
loration.
phy of the Au
ello et al., 2008
EIA/ARI W
-20
% to 3% TO
ver, carbon
stral-Magallan
World Shale Ga
OC (maxim
in this unit i
nes Basin, Arg
s and Shale Oil
mum 10% in
is mainly co
gentina and C

Resource Asses

n coaly sha
oaly and pro
Chile
ssment
ales),
bably
V. Argentin

June, 2013

Fig

O
Cretaceo
Chile).
Inoceram
a
gure V-11: Ino
Source: ARI,
Overlying th
ous Lower In
The Tobife
mus Formatio
ceramus Shal
, 2013.
e Tobifera
noceramus o
era was dep
on is 50 to 4
V-
le, Depth, TOC
Formation
or Palermo A
posited und
400 m thick.
EIA/ARI W
-21
C, and Therma
are more
Aike formati
er shallow
In the Arge
World Shale Ga
al Maturity, A
prospectiv
ions (Estrato
water mari
entina portion
s and Shale Oil
Austral / Magal
ve shales w
os con Favr
ine conditio
n of the bas
Resource Asses

llanes Basin

within the
rella Formati
ns. The L
in, the total s
ssment
Early
ion in
Lower
shale
V. Argentin

June, 2013

thickness
4,000 ft
environm
1.0% to 2
conducte
contains
near its b
F
con Favr
estimated
Thermal
(R
o
0.8%
depth of
Source: Met

a
s (including
thick in the
ment.
35

Tot
2.0%, with h
ed by Ches
marine-dep
base.
37

igure V-12,
rella Format
d porosity o
maturity inc
%) to dry gas
about 3,600
F
thanex, Septem
the Magna
e south, rep
al organic c
hydrogen ind
apeake Ene
osited shale
a seismic t
ion dipping
of 6% to 1
creases grad
s prone (R
o
2
0 m in this ba
igure V-12: Se
ber 27, 2012.

V-
s Verdes F
resenting ne
content of th
dex of 150 to
ergy, the Lo
e with consis
time section
gently west
2%, but we
dually with d
2.0%). The
asin.
38

eismic Time S
EIA/ARI W
-22
ormation) ra
eritic facies
hese two ma
o 550 mg/g.
3
ower Cretac
stently good
n across the
in a relative
e assumed
depth in a ha
transition fro
Section in the
World Shale Ga
anges from
deposited
ain source r
36
Based on
ceous Estra
to excellent
e basin, show
ely simple s
a more co
alf-moon pa
om wet to d
Magallanes B
s and Shale Oil
800 ft thick
in a low-en
rocks gener
n analysis in
atos con Fa
t (up to 6%)
ws the 180-
structural set
onservative
attern, rangin
ry gas (R
o
1
Basin, Chile
Resource Asses

k in the nor
nergy and a
rally ranges
n Chile repor
avrella Form
TOC, partic
-m thick Est
tting. ENAP
estimate of
ng from oil-p
1.3%) occurs
ssment
rth to
noxic
from
rtedly
mation
ularly
tratos
P has
f 6%.
prone
s at a
V. Argentin

June, 2013

3.2 R
A
with org
approxim
maturity
thick (org
maturity
about 5%
0.46 psi
Formatio
3.3 R
R
formation
and 6.6 b
oil in-pla
resource
oil and co
3.4 R
N
Methane
basin an
recently
Louisiana
U
Chile, wh
previous
eight wel

a
Reservoir P
Argentinas p
anic-rich sh
mately 4,620
window; an
ganic-rich), 8
(R
o
) ranges
%. The Estan
i/ft pressure
on, immediat
Resource A
Risked, techn
ns in the Arg
billion barrel
ace is estima
e concentrati
ondensate, d
Recent Act
No shale leas
x had partn
nd also had
the compa
a, USA.
40

UK-based Ge
hich the com
ly have prod
lls on the Fe
Properties
portion of the
hale in Low
0 mi
2
is in th
d 4,310 mi
2

8,000 to 13,
s from 0.7%
ncia Los Lag
e gradient
tely underlyin
Assessmen
nically recov
gentina port
ls of shale o
ated at 606
ions of 33 to
depending o
ivity
sing or explo
ered with E
expressed
ny decided
eoPark hold
mpany notes
duced oil. In
ell Block to d

V-
(Prospecti
e Austral Ba
wer Cretace
he oil windo
is in the dr
500 ft deep
to 2.0% de
gunas gas c
with elevat
ng the Lowe
nt
verable shale
tion of the A
oil and cond
6 Tcf and 13
o 156 Bcf/m
on the therm
oration activ
NAP in con
interest in
to relocate
ds conventio
s contains s
n 2012, GeoP
etermine res
EIA/ARI W
-23
ive Area)
asin has an
eous format
ow; 4,600 m
ry gas windo
, and have e
epending ma
condensate
ted tempera
er Inoceramu
e gas and o
Austral Basin
ensate, Tab
31 billion ba
i
2
of shale g
al maturity w
ity has been
ventional oi
shale gas
e about hal
onal petrole
hales in the
Park conduc
servoir prope
World Shale Ga
estimated
tions. Of t
i
2
is in the w
ow. These
estimated 3
ainly on dep
field in sout
ature gradie
us equivalen
oil resources
n are estima
bles V-1 and
arrels. The
gas and 15 t
window.
n reported in
l and gas ex
exploration
lf of its me
eum leases
e Estratos co
cted diagnos
erties of the
s and Shale Oil
13,530-mi
2

this total p
wet gas/con
shales aver
.5% average
pth. Porosity
theast Argen
ents in the
nt.
39

s from the Lo
ated at 130
d V-2. Riske
e play has m
to 48 million
n the Austral
xploration in
during 201
ethanol capa
in the Mag
on Favrella
stic fracture
e shale.
41

Resource Asses

prospective
prospective
ndensate the
rage about 8
e TOC. The
y is estimat
ntina measu
e Serie Tob
ower Cretac
Tcf of shale
ed shale gas
moderate to
n bbl/mi
2
of s
l Basin. In C
n the Magal
1-12. How
acity in Ch
allanes Bas
Formation w
injection tes
ssment
area
area,
ermal
800 ft
ermal
ted at
red a
bifera
ceous
e gas
s and
high
shale
Chile,
lanes
wever,
ile to
sin of
which
sts on
V. Argentin

June, 2013

4 P
4.1 In
T
Brazil, Pa
The basi
range fro
Asuncion
tectonic
obscuring
Argentina
Source: AR
a
PARAN BA
ntroduction
The Paran
araguay, an
n contains u
om Late Or
n Arch, relat
margin.
42
M
g the unde
a portion is l
Fig
I, 2013.
ASIN
n and Geo
Basin is a
d Uruguay,
up to 5 km (l
rdovician to
ted to Ande
Much of the B
rlying geolo
argely free o
gure V-13: Pro
V-
logic Setti
large (747,0
as well as a
locally 7 km
Cretaceous
ean thrusting
Brazilian po
ogy from se
of basalt.
ospective Sha
EIA/ARI W
-24
ng
000 mi
2
) de
a small area
) of Paleozo
s. The bas
g, while the
rtion of the
eismic and
ale Area in the
World Shale Ga
epositional f
of northeas
oic and Meso
sins wester
east is trun
basin is cov
increasing t
e Parana Basin
s and Shale Oil
feature that
stern Argenti
ozoic sedim
rn border is
ncated by th
vered by floo
the cost of
n, Argentina
Resource Asses

covers are
ina, Figure V
mentary rocks
s defined by
he South At
od basalts, p
drilling, bu
ssment
as of
V-13.
s that
y the
tlantic
partly
ut the

V. Argentin

June, 2013

T
black sha
the cente
to 4.6%
that migr
F
Devonian
well log i
sandston
to 160 m
consistin
0.6%), A
about 3,2
T
Consequ
Cretaceo
there are
portion o
4.2 R
D
constrain
Argentina
maturity
basin).
deep, an
dependin
F
TOC and
estimated

a
The main pet
ale of the P
er of the bas
but more ty
rated into co
igure V-14,
n source roc
n the Parag
nes with oil a
m thick, incl
g mainly of
ANCAP has
200 m.
46

The Paran
uently, the b
ous igneous
e sizeable co
of the basin.
Reservoir P
Depth and th
ned by data
a is estimat
window, an
Devonian P
d has estima
ng mainly on
or example
d is oil-prone
d at about 4
troleum sour
onta Grossa
sin, averagin
ypically is 1.
nventional s
a cross-sec
cks that pass
uay portion
and gas sho
uding up to
Type II mar
estimated t
Basin has
bulk of ther
episode. M
oncentric win
Properties
hermal matu
in the Argen
ted at 2,500
nd 2,230 mi
2
onta Grossa
ated 2.0% a
n depth.
, Amerisur
e (R
o
0.87%)
% and the p

V-
rce rock in th
a Formation
ng about 300
5% to 2.5%
sandstone re
ction of the P
s through th
of the basin
ows.
45
In ou
o 60 m of o
rine kerogen
he boundary
remained
rmal matura
Most of the
ndows of oil
(Prospecti
urity of the D
ntina portion
0 mi
2
, of wh
2
is in the d
a shale ave
average TOC
reported tha
) at their con
pressure gra
EIA/ARI W
-25
he Paran B
. The entire
0 m thick. T
%. The most
eservoirs.
43

Paran Basi
he oil window
penetrated
tcrop, the D
organic-rich
n. Based on
y between d
at moderat
ation took p
basin rema
-, wet-gas-,
ive Area)
Devonian P
n of the Para
hich 270 mi
2
dry gas wind
rages about
C. Thermal m
at the Devo
nventional ex
dient is assu
World Shale Ga
Basin is the
e formation
TOC of the P
tly Type II k
n, illustrates
w into the ga
Devonian s
Devonian Co
shale. TOC
n the low the
dry and wet
te burial de
place during
ains thermall
and dry-gas
Ponta Grossa
an Basin. T
2
is in the w
dow (the oil
t 300 m thic
maturity (R
o
onian Lima
xploration bl
umed to be h
s and Shale Oil
Devonian (E
ranges up t
Ponta Grossa
kerogen sou
s the thick an
as window.
44
ource rocks
rdobes Form
C ranges fr
ermal matur
t gas to occ
epth throug
g the late J
ly immature
s maturity in
a Formation
The total pro
wet gas/con
window is
ck (net), 11
) ranges from
Formation h
lock in Parag
hydrostatic.
Resource Asses

Emsian/Fras
to 600 m th
a Fm reache
urced natura
nd gently dip
4
A convent
and interbe
mation range
om 0.7 to 3
ity at outcro
cur at a dep
ghout its his
Jurassic to
e (R
o
<0.5%
the central
n are moder
ospective ar
ndensate the
negligible in
,000 to 14,0
m 0.85% to
has good (2
guay. Poros
ssment
snian)
ick in
es up
al gas
pping
tional
edded
es up
3.6%,
op (R
o

pth of
story.
early
), but
deep
rately
rea in
ermal
n this
000 ft
1.5%
2-3%)
sity is
V. Argentin

June, 2013

Figure V

Source: Cha

4.3 R
R
Devonian
3.2 Tcf o
and V-2.
The play
8 million
4.4 R
N
Paran B
exploratio
a
V-14: Cross-Se
aco Resources P
Resource A
Risked, techn
n Ponta Gro
of natural ga
Risked sha
y has low to
bbl/mi
2
of sh
Recent Act
No shale leas
Basin. In U
on licenses
ection of the P
Source Roc
PLC, 2004.
Assessmen
nically recov
ssa Formati
as and minim
ale gas and
moderate n
hale oil and
ivity
sing or explo
Uruguay TOT
with Devoni
V-
Paran Basin o
cks Passing T
nt
verable shale
on in the Arg
mal (0.01 bi
shale oil in
et resource
condensate
oration activ
TAL, YPF, a
an shale pot
EIA/ARI W
-26
of Paraguay, S
Through the O
e gas and sh
gentina port
illion barrels
-place is est
concentratio
, depending
vity has been
and small A
tential but ha
World Shale Ga
Showing Thick
il and Gas Wi
hale oil reso
tion of the Pa
s) shale oil a
timated at 1
ons of 35 to
on the therm
n reported in
Australia-bas
ave not drille
s and Shale Oil
k and Gently D
ndows.
urces from b
aran Basin
and conden
6 Tcf and 0
57 Bcf/mi
2

mal maturity
n the Argent
sed Petrel E
ed.
Resource Asses

Dipping Devo
black shale i
n are estimat
sate, Tables
0.3 billion ba
of shale gas
y window.
ina portion o
Energy hold
ssment
nian
in the
ted at
s V-1
arrels.
s and
of the
large
V. Argentin

June, 2013

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tice of
of the
VI. Brazil

June, 2013

VI. B
SUMMA
W
undevelo
basins --
significan
basins al
Source: AR
BRAZIL
ARY
While Brazils
oped and lig
- the Paran
nt conventio
lso have suf
I, 2013
L
s most prol
ghtly explore
in the so
onal oil and
fficient geolo
Figure
V
ific petroleu
ed sediment
uth and the
gas from
ogic data to b
e VI-1: Prospe
EIA/ARI W
I-1

um basins l
tary basins
e Solimes
demonstrate
be assessed
ective Shale B
World Shale Ga
ie offshore,
onshore, F
and Amazo
ed source r
d for shale g
Basins of Braz
s and Shale Oil
the country
igure VI-1.
onas in the
rock system
as and shale
zil
Resource Asses

y has 18 m
Three of t
north pro
ms. These
e oil potentia
ssment
mostly
these
oduce
three
al.

VI. Brazil

June, 2013

T
extensive
2.5%). S
source ro
B
Solimes
and VI-2
billion ba
to date in
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRe
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a
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c
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a
t
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t
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e
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o
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c
e
Ga
GIP
Ris
Ris
The main s
ely develope
Several othe
ock systems
Brazils risked
s and Amaz
. Risked, in
arrels of shal
n Brazil.
Ta
Ta
Organic
Net
Interval
Average
eservoir Pressure
verageTOC (wt. %)
ermal Maturity(%Ro
ayContent
Basin/Gross Are
ShaleFormatio
Geologic Age
Depositional Enviro
ospectiveArea(mi
2
)
ickness (ft)
epth(ft)
as Phase
P Concentration(Bcf/
skedGIP (Tcf)
skedRecoverable(Tc
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRese
Aver
Ther
Clay
B
a
s
i
c
D
a
t
a
D
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pros
Thic
Dept
R
e
s
o
u
r
c
e
Oil P
OIP
Risk
Risk
hale target
ed in the thr
er basins in
s, are therma
d, technicall
zonas basins
n-place shale
le oil. No sh
able VI-1. Shal
able VI-2. Sha
25,600
callyRich 1,000
300
9,500 - 13,0
e 11,000
Normal
2.0%
0.85%
Low/Mediu
Assoc. Ga
25.5
78.5
6.3
o)
ea
on
nment
f/mi
2
)
cf)
Organicall
Net
Interval
Average
ervoir Pressure
rageTOC (wt. %)
rmal Maturity(%Ro)
yContent
Basin/Gross Area
ShaleFormation
Geologic Age
Depositional Environm
spectiveArea(mi
2
)
ckness (ft)
th(ft)
Phase
Concentration(MMbb
kedOIP (B bbl)
kedRecoverable(B bb
V
is the De
ee structura
n Brazil may
ally immature
y recoverab
s are estima
e resources
hale-focused
e Gas Reserv
le Oil Reservo
18,050
1,000
300
000 10,000 - 14,000
12,000
Normal
2.0%
1.15%
um Low/Medium
as Wet Gas
55.7
120.7
24.1
Parana
(747,000mi
2
)
PontaGrossa
Devonian
Marine
25,600
yRich 1,000
300
9,500 - 13,00
11,000
Normal
2.0%
0.85%
Low/Medium
Oil
26.8
82.4
3.30
(74
ment
bl/mi
2
)
bl)
Po
EIA/ARI W
I-2
evonian (Fra
ally simple b
y have shale
e, and/or lac
ble shale gas
ated at 245
are estimate
d exploration
oir Properties
oir Properties
22,840 8
1,000
300
12,000 - 16,400 3,300
14,000 7
Normal No
2.0% 2
1.50% 1
Low/Medium Me
Dry Gas We
91.3 2
250.4 2
50.1
18,050
1,000
300
00 10,000 - 14,000
12,000
Normal
2.0%
1.15%
m Low/Medium
Condensate
11.4
24.7
0.99
Parana
47,000mi
2
)
ontaGrossa
Devonian
Marine
World Shale Ga
asnian) ma
asins but ha
e gas and o
ck sufficient
s and shale
Tcf and 5.4
ed to be 1,2
n leasing or
s and Resourc
and Resource
8,560 54,750
160 160
120 120
0 - 10,000 10,000 - 16
7,500 12,000
ormal Normal
2.2% 2.2%
.15% 1.60%
edium Medium
et Gas Dry Gas
20.1 36.1
25.8 296.8
5.2 59.4
Solimoes
(350,000mi
2
)
Jandiatuba
Devonian
Marine
Solimoes
(350,000mi
2
)
Jandiatuba
Devonian
Marine
8,560
160
120
3,300 - 10,000 6
7,500
Normal
2.2%
1.15%
Medium
Condensate
5.5
7.1
0.28
s and Shale Oil
arine black
as relatively
oil potential
public data f
oil resource
4 billion bar
279 Tcf of sh
drilling has
ces of Brazil
es of Brazil
5,520
260
195
,400 6,500 - 13,000 8
9,500
Normal
2.5%
0.85%
m Medium
s Assoc. Gas
15.2
12.6
1.0
(
5,520 3,2
260 30
195 22
,500 - 13,000 8,000 -
9,500 11,
Normal Nor
2.5% 2.5
0.85% 1.1
Medium Med
Oil Conde
18.3 8
15.1 4
0.61 0.
Amazonas
(230,000mi
2
)
Barreirinha
Devonian
Marine
Resource Asses

shale, whic
modest TO
but lack pr
for assessm
es in the Pa
rrels, Tables
hale gas and
been annou

3,260 44,8
300 30
225 22
8,000 - 14,000 3,300 -
11,500 12,0
Normal Nor
2.5% 2.5
1.15% 1.60
Medium Med
Wet Gas Dry
45.4 70
22.2 472
4.4 94
Amazonas
(230,000mi
2
)
Barreirinha
Devonian
Marine
260
00
25
- 14,000
500
rmal
5%
5%
dium
ensate
.7
.3
17
ssment
ch is
OC (2-
roven
ment.
aran,
s VI-1
d 134
unced

890
00
25
16,400
000
mal
5%
0%
dium
Gas
0.2
2.4
4.5
VI. Brazil

June, 2013

INTROD
B
source ro
resource
significan
wells hav
drilling ha
relatively
B
gravity a
Parnaiba
Tcf of s
(Parnaiba
Petrobra
not anno
E
(Paran,
commerc
data for
shale po
available
assessed
Sao Fran
1. P
1.1 In
L
large (1.5
area in P
region in
DUCTION A
Brazil has 18
ocks. Howe
es, while the
nt oil and ga
ve been dri
as not yet o
y scant.
Brazils Natio
and magneti
a, and part o
hale gas re
a, Parecis,
s, the nation
ounced plans
EIA/ARI has
Solimes,
cially produc
resource an
otential, but
e geologic d
d in this stud
ncisco, Taub
PARAN BA
ntroduction
ocated in Br
5 million km
Paraguay, U
cludes the B
AND GEOL
8 onshore s
ever, since t
e onshore ba
as output (Am
lled to the d
occurred. As
onal Oil and
cs with min
of the Sao F
esources, ba
Recncavo
nal oil comp
s for shale d
assessed th
and Amazo
ctive conven
nalysis. In a
their sourc
data. Thes
dy -- include
bat, and Ch
ASIN
n and Geo
razils econo
2
) deposition
Uruguay, and
Brazil-Bolivia
V
LOGIC OVE
sedimentary
the 1980s B
asins have
mazonas an
deep source
s a result, ge
Gas Agenc
nimal drilling
Francisco.
1

ased on a
) with the B
pany, recent
rilling in Bra
he shale res
onas). The
ntional oil an
addition, Bra
ce rock sys
se six other
e the Potigua
haco- Paran
logic Setti
omically mos
nal feature t
d northern A
a and Urugua
EIA/ARI W
I-3
ERVIEW
y basins, of
razil has foc
seen less a
nd Paran).
e rock interv
eologic data
y (ANP) has
g, on four o
Recently A
rough anal
Barnett Sha
tly drilled its
zil.
source pote
ese basins
nd gas fields
azil has a h
stems are le
r basins --
ar, Parnaiba
.
ng
st developed
that covers 7
Argentina, F
aiana-Porto
World Shale Ga
which 14 b
cused mainl
activity. On
Relatively f
vals in these
a on the sha
s conducted
nshore basi
NP estimate
logy of thre
ale in the F
s first shale
ntial of thre
have prosp
s as well as
alf-dozen ot
ess proven
which were
a, Parecis, R
d southern r
747,000 mi
2
Figure VI-2.
Alegre pipe
s and Shale Oil
basins may
ly on its offs
nly two onsh
few convent
e basins. S
ale source ro
d exploration
ins: the Am
ed that Braz
ee onshore
Fort Worth B
oil well in A
e of Brazils
pective shal
sufficient a
ther basins
and/or the
e reviewed
Recncavo, S
region, the P
within Braz
Major infr
elines.
Resource Asses

have petro
shore oil and
hore basins
tional oil and
Shale explor
ocks in Braz
n surveys, m
mazonas, Pa
zil may have
Brazilian b
Basin of Te
Argentina bu
s onshore b
les that sou
available geo
which may
ey lack suff
but not for
Sergipe-Alag
Paran Basin
zil, with addit
rastructure i
ssment
oleum
d gas
have
d gas
ration
zil are
mostly
arana,
e 208
asins
exas.
2

ut has
asins
urced
ologic
have
ficient
rmally
goas,
n is a
tional
n the

VI. Brazil

June, 2013

Source: A

C
the first (
Bonita g
wells hav
per 10,0
fraction o
T
sediment
by the A
Atlantic t
thirds of
seismic a
Figure
ARI, 2013
Conventional
(and thus fa
as field of l
ve been drill
00 km
2
. In
of this data s
The Paran
tary rocks th
Asuncion Arc
tectonic mar
the basin i
and increasi
e VI-2: Prospec
petroleum
r only) comm
imited outpu
led in the Br
addition, s
set has been
Basin cont
hat range fro
ch, related t
rgin.
5
On th
s covered b
ng the cost o
V
ctive Shale Ga
exploration
mercial disco
ut (36 Bcf to
razil portion
some 30,000
n published a
tains up to
om Late Ordo
to Andean t
he north the
by flood bas
of drilling.
EIA/ARI W
I-4
as and Shale O
began in th
overy came
otal through
of the Para
0 km of 2D
and made av
5 km (loca
ovician to C
thrusting, w
e basin onla
salts, partly
World Shale Ga
Oil Areas in th
he Paran B
in 1996, wit
h 2009).
3
A
an Basin, a
seismic ha
vailable for o
ally 7 km) o
retaceous.
while the eas
ps Precamb
obscuring t
s and Shale Oil
he Paran Bas
Basin during
th the low-pe
Approximatel
low drilling
ave been ac
our study.
of Paleozoi
Its western
st is truncat
brian basem
the underlyi
Resource Asses

sin
g the 1890s
ermeability B
y 124 petro
density of 1
cquired.
4
O
c and Mes
border is de
ted by the S
ment. Some
ng geology
ssment

s, but
Barra
oleum
1 well
Only a
ozoic
efined
South
e two-
from
VI. Brazil

June, 2013

T
available
VI-3. F
(aulocog
igneous
Cretaceo
numerou
T
Ponta Gr
thick in t
reaches
natural g
Early Per
T
Consequ
Cretaceo
there are
basin are
A
Formatio
sandston
Irati Form
with peak
is mining
pyrolysis
Paran B

The structure
e data, consi
aults, predo
ens) which s
sills and d
ous, intrude
us smaller fa
The main pet
rossa Forma
the center o
up to 4.6%
gas that mig
rmian Itarar
The Paran
uently, the b
ous igneous
e sizeable co
ea.
A second le
on. This no
nes (tar sand
mation is wid
ks to 24%, b
g Irati oil sh
. Although
Basin,
8
its Br
e of the Para
isting of a ge
ominately no
separate lar
dikes, relat
the sedimen
ults, Figures
troleum sour
ation (Emsia
of the basin,
but more ty
grated into c
Group.
6

Basin has
bulk of ther
episode. M
oncentric win
ss prolific s
n-marine bit
ds) of the Pe
despread an
but the shale
hale from the
the Irati Fm
razil extensio

V
an Basin a
entle synclin
ormal in ori
rge undeform
ed to emp
ntary sequen
s VI-4 and V
rce rock in t
an/Frasnian)
averaging
ypically is 1
conventional
remained
rmal matura
Most of the
ndows of oil
source rock
tuminous un
ermian and T
nd can be or
es are quite
e surface at
m may be the
on was not a
EIA/ARI W
I-5
appears to b
ne with mino
ientation, ar
med tracts of
placement o
nce. More d
VI-5.
the Paran B
), Figure VI
about 300 m
.5% to 2.5%
sandstone
at moderat
ation took p
basin rema
-, wet-gas-,
k in the Pa
nit sourced o
Triassic Rio
ganic-rich, a
thin and the
t So Mateu
ermally matu
assessed du
World Shale Ga
be moderate
or faulting an
re controlled
f the basin i
of the flood
detailed seis
Basin is the
I-6. This fo
m thick. TO
%. The mos
reservoirs o
te burial de
place during
ains thermall
and dry-gas
aran Basin
oil trapped
o Bonito and
averaging 8-
ermally imm
us do Sul a
ure in the d
ue to low the
s and Shale Oil
ely simple, a
nd secondar
d by older
nterior. How
d basalts d
smic reveals
Devonian b
rmation rang
OC of the P
stly Type II
of the Late
epth throug
g the late J
ly immature
s maturity in
is the Per
in biodegrad
Pirambia f
-13% TOC o
ature (R
o
<0
and process
eep Paragu
ermal maturit
Resource Asses

at least base
ry folding, Fi
basement f
wever, nume
during the
s the presen
black shale o
ges up to 6
Ponta Grossa
kerogen sou
Carbonifero
ghout its his
Jurassic to
e (R
o
<0.5%
the deep ce
rmo-Triassic
ded convent
formations.
7
of Type I ker
0.5%). Petro
sing it using
uay portion o
ty.
ssment
ed on
igure
faults
erous
Early
nce of
of the
00 m
a Fm
urced
ous to
story.
early
), but
entral
c Irati
tional
The
rogen
obras
rock
of the
VI. Brazil

June, 2013

Source: AN

Figure V
Source: Pet

P, 2012
VI-4: Seismic T
tersohn, 2003
Figure VI
Time Section

V
I-3. Cross-Sec
Showing Reg
EIA/ARI W
I-6

ction of the Pa

ional Moderat
World Shale Ga
aran Basin, B
te Block Fault
s and Shale Oil
Brazil
ting of the Par
Resource Asses

ran Basin, Br
ssment
razil
VI. Brazil

June, 2013

Source: Pet

Figure VI
Source: Pet
Figure V
tersohn, 2003
I-6: Stratigrap
tersohn, 2003
VI-5: Seismic
hy of Paran B
V
Time Section
Basin Showin
EIA/ARI W
I-7
of the Paran
ng Source Roc
World Shale Ga
Basin Showi
ck Shales, Dev
s and Shale Oil
ing Small Fau
vonian Ponta
Resource Asses

ults.
Grossa Forma
ssment
ation
VI. Brazil

June, 2013

1.2 R
T
the Para
window;
the dry g
deep, an
dependin
assumed
1.3 R
R
Grossa (
billion ba
in-place
concentr
dependin
1.4 R
N
Basin, al
the Parag

Reservoir P
The prospect
an Basin is
18,050 mi
2

gas window.
d has estima
ng mainly on
d to be hydro
Resource A
Risked, techn
Frasnian) bl
arrels of shal
is estimated
rations of 26
ng on therma
Recent Act
No shale gas
though Ame
guay portion
Properties
tive area of
s estimated
is in the wet
The Devon
ated 2.0% a
n depth. P
ostatic.
Assessmen
nically recov
lack shale in
le oil and co
d at 450 Tcf
6 to 91 Bcf
al maturity w
ivity
s/oil explorat
erisur Energy
n of the basin

V
(Prospecti
organic-rich
at approxim
t gas/conden
nian shale av
average TOC
orosity is es
nt
verable shale
n the Paran
ndensate, T
f and 107 b
f/mi
2
for sha
window.
ion activity h
y has discus
n.
EIA/ARI W
I-8
ive Area)
h shale in th
mately 66,50
nsate therm
verages abo
C. Thermal m
stimated at
e gas and s
Basin are e
Tables VI-1 a
illion barrels
ale gas and
has been rep
ssed the sha
World Shale Ga
he Devonian
00 mi
2
, of w
mal maturity w
out 300 m th
maturity (R
o
about 4% a
shale oil reso
estimated at
and VI-2. Ri
s. The play
d 11 to 27
ported in the
ale potential
s and Shale Oil
n Ponta Gros
hich 25,600
window; and
hick (net), 11
) ranges from
and the pres
ources from
t 81 Tcf of s
isked shale
y has moder
million bbl/
e Brazil porti
of the Creta
Resource Asses

ssa Formati
0 mi
2
is in th
d 22,840 mi
2
1,000 to 14,0
m 0.85% to
ssure gradie
Devonian P
shale gas an
gas and sha
rate net reso
/mi
2
for sha
ion of the Pa
aceous Irati F
ssment
on of
he oil
2
is in
000 ft
1.5%
ent is
Ponta
nd 4.3
ale oil
ource
ale oil
aran
Fm in
VI. Brazil

June, 2013

2. S
2.1 In
L
jungle, F
most pro
natural g
Source: AR
T
source r
Jandiatu
TOC ran
is mostly
prone (R
SOLIMES
ntroduction
ocated in n
igure VI-7.
oductive ons
as from the
Figure V
RI, 2013
These conve
rocks within
ba Fm (Fras
ging from 1
y in the dry g
R
o
1.0% to 1.
S BASIN
n and Geo
orthern Bra
While less p
shore basin,
Carbonifero
VI-7: Prospect
entional rese
the Devon
snian) conta
% to 4% (av
gas window
3%).
10

V
logic Setti
zil, the Soli
prolific than
with output
ous Juru Fo
tive Shale Gas
ervoirs direc
nian Jandiat
ains a 50-m
verage 2.2%
(R
o
>1.35%
EIA/ARI W
I-9
ng
mes Basin
Brazils offs
t of about 50
ormation san
s and Shale O
ctly overlie a
tuba (mostly
thick sectio
%; maximum
), apart from
World Shale Ga
n extends ov
hore fields, t
0,000 bbl/d
ndstone.
9

Oil Areas in the
and were so
y), Jaraqui
n of radioac
8.25%), Fig
m a small are
s and Shale Oil
ver 350,000
the Solime
of oil and 1
e Solimes Ba
ourced by m
and Uer f
ctive (hot)
gure VI-8.
ea in the eas
Resource Asses

0 mi
2
of Am
es is the cou
2 million m
3
asin
marine-depo
formations.
black shale
Thermal ma
st that is we
ssment
mazon
ntrys
3
/d of
osited
The
, with
aturity
et-gas
VI. Brazil

June, 2013

Figure V
Source: Cla

F
mostly fla
dip-orien
basins.
for most
Paleozoi
proximity

VI-8: Black Sha
ark, 2003
igure VI-9,
at-lying but s
ted cross-se
The easter
of the con
c sequence
y to igneous
ale in the Devo
a regional c
still moderat
ection would
rnmost Juru
nventional oi
e of South
intrusions ra

VI
onian Jandiat
with 1%to 4%
cross-sectio
tely faulted
d reveal the
Sub-basin
il and gas f
America. T
ather than si
EIA/ARI W
-10
tuba Formatio
%TOC at this
n oriented in
Devonian sh
steeper dip
n, with up to
found in the
The shales
imple burial
World Shale Ga
on of the Solim
Location
n the basin
hale at dept
ps. Structura
o 3.8 km of s
e Solimes
thermal hi
depth.
s and Shale Oil
mes Basin is
s strike dire
hs of 2 to 3
al uplifts de
sedimentary
Basin, inde
story is con
Resource Asses

about 40 mT
ection, show
km. Note t
fine several
y rocks, acco
eed in the e
ntrolled mor
ssment
hick
ws the
that a
sub-
ounts
entire
re by
VI. Brazil

June, 2013

Figure
Source: Cla

2.2 R
T
Formatio
thermal
averages
TOC. Po
2.3 R
R
Jandiatu
billion ba
barrels, T
Bcf/mi
2
fo
2.4 R
N

VI-9: Cross-S
ark, 2003
Reservoir P
The total est
on of the Sol
maturity win
s about 120
orosity is est
Resource A
Risked, tech
ba black sh
arrels of shal
Tables VI-1
or shale gas
Recent Act
No shale gas
Section (Strike
Faulted D
Properties
imated pros
imes Basin
ndow and 5
0 ft thick (ne
timated at 4%
Assessmen
hnically reco
hale in the S
le oil, out of
and VI-2. T
s and 5.5 mil
ivity
s/oil explorat

VI
e Direction) of
Devonian Shale
(Prospecti
spective area
n is estimate
54,750 mi
2

et), 7,500 to
% and the p
nt
overable sh
Solimes Ba
risked shale
The play has
lion bbl/mi
2
f
ion activity h
EIA/ARI W
-11
the Solimes
e (Green) at D
ive Area)
a of organic
ed at 63,000
is in the dr
o 12,000 ft d
ressure grad
ale gas an
asin are est
e gas and sh
s a moderate
for shale

oil.
has been rep
World Shale Ga
s Basin, Show
Depths of 2 to
c-rich shale
mi
2
, of whic
ry gas wind
deep, and h
dient is assu
nd shale oi
timated at 6
hale oil in-pla
e net resour
ported in the
s and Shale Oil
wing Flat-lying
3 km.
in the Devo
ch 8,560 mi
2
dow. The J
has estimate
umed to be h
l resources
65 Tcf of sh
ace of 323 T
rce concentr
e Solimes B
Resource Asses

g but Moderate
onian Jandia
2
is in the we
Jandiatuba s
ed 2.2% ave
hydrostatic.
s from Devo
hale gas and
Tcf and 7.1 b
ration of 20
Basin.
ssment
ely
atuba
et gas
shale
erage
onian
d 0.3
billion
to 36
VI. Brazil

June, 2013

3. A
3.1 In
E
Amazona
arches, F
commerc
was com
nearby S
Source: AR

AMAZONA
ntroduction
Extending ov
as Basin is a
Figure VI-1
cialized start
mmissioned.
Solimes Bas
Figure VI
I, 2013
AS BASIN
n and Geo
ver more tha
an ENE-WS
0. The firs
ting in 2009
By late 201
sin, along w
I-10: Prospect

VI
logic Setti
an 230,000 m
W trending
st conventio
9, when the
0, this pipel
ith smaller v
tive Shale Gas
EIA/ARI W
-12
ng
mi
2
of Amaz
structural tro
nal petroleu
Urucu-Coar
ine was tran
volumes from
s and Shale O
World Shale Ga
zon forest in
ough bound
um fields we
ri-Manaus ga
nsporting abo
m the Amazo
Oil Areas in the
s and Shale Oil
n remote no
ed by the P
ere discove
as and LPG
out 0.2 Bcfd
onas Basin.
e Amazonas B
Resource Asses

rthern Brazi
urus and Ga
red in 1999
G pipeline sy
d, mainly from
Basin
ssment
il, the
arupa
9 and
ystem
m the

VI. Brazil

June, 2013

T
covered
Amazona
particula
deformat
VI-12 illu
Figure VI
Source: Dig

Figure VI-
Source: Dig

The Amazona
by Mesozoi
as Basin w
rly in the e
tion that inc
strates the r
I-11: Devonian
Fault
nart and Vieira,
12: Seismic T
nart and Vieira,
as Basin con
ic and Ceno
was extensiv
eastern hal
luded exten
relatively sim
n (Frasnian) M
ts Appear to b
2007
ime Section in
2007
VI
ntains up to
ozoic strata,
vely intrude
f of the ba
sional block
mple local str
Marine Black S
be Widely Spac
n the Amazon
B
EIA/ARI W
-13
5 km of mo
Figure VI-
ed by igneo
asin. This
k and strike-
ructure in on
Shale Ranges
ced but Igneo
as Basin Show
lack Shale.
World Shale Ga
ostly Paleozo
11. While n
ous activity
was follow
-slip faulting
ne portion of
from2 to 4 Km
ous Intrusions
wing Simple S
s and Shale Oil
oic sediment
not structura
during the
wed by Cen
g and salt te
f the basin.
mDeep in the
s are Common
Structure of th
Resource Asses

tary rock tha
ally complex
e Early Jura
nozoic struc
ectonics. Fi
e Amazonas B
n.
he Devonian M
ssment
at are
x, the
assic,
ctural
igure
asin.
Marine
VI. Brazil

June, 2013

T
Basin. U
the Devo
sandston
Devonian
immature
prone in
marine b
TOC and
3.2 R
B
estimated
estimated
gas and
averages
Porosity
3.3 R
R
Barreirin
shale ga
oil in-plac
resource
bbl/mi
2
fo
3.4 R
N
Amazona

The petroleum
Up to 160 m
onian Barre
nes of the o
n shale has
e (R
o
< 0.5%
the deeper
black shales
d thus were n
Reservoir P
Based on th
d prospectiv
d at about 5
condensate
s 195-225 ft
is estimated
Resource A
Risked, techn
ha Formatio
s and 0.8 bi
ce of 507 Tc
e concentrat
or shale oil.
Recent Act
No shale ga
as Basin.
m system in
(average 80
irinha Form
overlying No
2% to 5% T
%) in the sh
r center and
s occur in th
not assesse
Properties
he limited g
ve area of
54,000 mi
2
,
e window; a
t thick (net),
d at 4% and
Assessmen
nically recov
on (Frasnian)
illion barrels
cf and 19 bil
ions of app
ivity
as/oil explo

VI
n the Amazo
0 m) of lami
ation (Frasn
ova Olinda
TOC that con
allow and w
d dry gas pr
he Silurian P
d.
(Prospecti
geologic con
organic-rich
of which 5,5
nd 44,890 m
9,500-12,00
the pressure
nt
verable sha
) black shale
s of shale oil
lion barrels,
roximately 1
ration leasi
EIA/ARI W
-14
onas Basin i
inated marin
nian), which
Formation.
1
nsists of Typ
western port
rone in the
Pitinga Form
ive Area)
ntrol availab
h shale in t
520 mi
2
is in
mi
2
is in the
00 ft deep,
e gradient is
le gas and
e in the Ama
and conden
Tables VI-1
15 to 70 Bc
ng or drilli
World Shale Ga
s broadly si
ne-deposited
h was the s
1
Ranging
pe II kerogen
ions of the
more heavi
mation, but
ble for the
the Devonia
n the oil win
e dry gas wi
and has es
s assumed to
shale oil re
azonas Basi
nsate, out o
and VI-2. T
cf/mi
2
for sh
ng activity
s and Shale Oil
milar to that
d black shale
source rock
from 2 to
n. The Devo
basin, incre
ily intruded
these conta
Amazonas
an Barreirin
dow; 3,260
indow. The
timated 2.5%
o be hydrost
esources fro
n are estima
of risked sha
The play ha
hale gas and
has been
Resource Asses

t in the Solim
es are prese
for convent
4 km deep
onian is ther
asing to we
east. Addit
ain less than
Basin, the
nha Formatio
mi
2
is in the
e Devonian s
% average T
tatic.
om the Devo
ated at 100 T
ale gas and s
s a moderat
d 9 to 18 m
reported in
ssment
mes
ent in
tional
p, the
rmally
et gas
tional
n 2%
total
on is
e wet
shale
TOC.
onian
Tcf of
shale
te net
million
n the
VI. Brazil

June, 2013

4. O
M
commerc
maturatio
currently
basins c
geologic

Figure
Source: AN

OTHER BAS
More than a
cial oil and
on systems.
sufficient fo
could be pro
data becom
Potiguar
onshore a
portion of
comprises
southwes
the Potigu
Basin. Th
oil and 0.5

e VI-13: Cross
P, 2003

SINS
dozen othe
d gas prod
Some of t
or detailed c
ospective fo
me available.
Basin. Th
area of abou
f the basin c
s a number
st, Figure VI
uar Basin Br
he 5,000 mo
5 Tcf of natu
-Section of th

VI
er sedimenta
uction and
these basins
characteriza
or shale exp
Six of the m
is Neocomia
ut 33,000 km
contains up
of smaller fa
-13. Oil pro
razils secon
ostly onshore
ural gas.
12

e Potiguar Ba
EIA/ARI W
-15
ary basins o
some lack
s may have
ation and as
ploration an
more promis
an rift basin
m
2
plus a m
to 4 km of
ault blocks, w
oduction curr
nd largest pro
e wells have
asin, Showing
World Shale Ga
occur in ons
k identified
e shale pote
ssessment b
d should be
sing basins i
n in northeas
much larger
mostly Creta
with major s
rently averag
oduction are
e recovered a
the Pendnci
s and Shale Oil
shore Brazil
petroleum
ential but pu
by EIA/ARI.
e assessed
nclude:
stern Brazil
area offshor
aceous dep
structures tre
ges 125,000
ea after the o
a total of 0.5
ia and Alagam
Resource Asses

l. Most hav
generation
blic data ar
However, t
once addit
extends ove
re. The ons
osits. The
ending north
0 bbl/day, ma
offshore Cam
5 billion barre
mar Formation
ssment
ve no
and
re not
these
tional
er an
shore
basin
heast-
aking
mpos
els of
ns.
VI. Brazil

June, 2013

The Upp
sequence
containing
to 6% TO
However,
apparent
depth, thi
Parnaiba
basin con
heavily in
marine b
operator
drilling thr
Figure V
of the Pim
basin. O
2,200 m.
~0.5%) a
eventually
estimated
Barnett S
However,
immature
window a
immature
Note also
data ava
Parnaiba
Parecis B
has noted
grabens.
petroleum
recoverab
EIA/ARI w
which doe

er Cretaceo
e, is conside
g about 4%
OC of Type
shale reso
structural co
ckness, and
a Basin. Also
ntains up to
ntruded -- st
lack shale
MPX Energ
rough a 23-m
I-14 shows
menteiras at
rganic-rich s
The TOC r
t this locatio
y gas-prone
d 64 Tcf of
hale play in
as just no
(R
o
0.5%)
at 2,500 m.
, apart from
o that the ba
ilable for th
Basin.
Basin. A fro
d that radioa
As much a
m well. AN
ble based o
were not su
es not produ

VI
ous (Barrem
ered the m
TOC of Typ
es I and II k
ources were
omplexity an
d thermal ma
o located in
3.5 km of s
ructural sett
up to 300
gia S.A. has
m thick natu
the distribut
a conventio
shale in this
ranges up to
on. ANP ha
levels in the
recoverable
the Fort Wo
oted availab
at a depth
Other res
m local con
asin lacks co
his study, E
ontier non-pr
active dark s
as 106 m w
NP recently
on the Barne
ufficient for a
uce oil and g
EIA/ARI W
-16
menian) to P
ain petroleu
pe I kerogen
kerogen, bu
e not asses
nd the lack
aturity.
northeastern
sedimentary
ting. The De
m thick wit
s reported
urally fractur
tion of thickn
onal explorat
s well totals
o 4%, averag
as projected
e deeper pa
e shale gas
orth Basin.
15
le data sug
of 2,200 m
searchers h
tact zones
ommercial o
EIA/ARI did
roductive se
shale avera
was logged a
y estimated
ett Shale co
assessing th
as.
World Shale Ga
Paleocene P
um source
n. The Alag
ut is shallow
ssed in the
of available
n Brazil, this
rocks within
evonian Pim
th 2.0-2.5%
the compan
red Devonia
ness, depth
tion well in a
about 50 m
ging 2.5%, b
d that therm
arts of the ba
resources,

ggests the P
m and may o
have reporte
near the a
oil and gas p
not assess
dimentary b
ges some 5
at a depth o
that 124
omparison.
he shale po
s and Shale Oil
Pendncia
rock in the
gamar Forma
w (<1 km) i
e Potiguar B
data contro
s large (600,
n a relatively
menteiras Fo
% TOC. Lo
ny logged g
an shale inte
, TOC, and
an undisclos
m thick at a d
but is therma
mal maturity
asin (1,600
based on a
Pimenteiras
only just be
ed this unit
bundant ign
production. G
s the shale
basin in north
50 m thick in
of 4 km in o
Tcf of sha
However, d
tential of th
Resource Asses

Formation,
Potiguar B
ation contain
n the onsho
Basin due t
ol on source
000-km
2
) cir
y simple -- a
ormation con
ocal indepen
gas shows
erval.
14

thermal ma
sed portion o
depth of 2,0
ally immatur
reaches oil-
to 2,500 m)
analogy wit
Fm is ther
e entering th
to be ther
neous intrus
Given the sp
potential o
hern Brazil.
n the deep
one convent
ale gas ma
data availab
e Parecis B
ssment
a rift
Basin,
ns up
ore.
13

to its
e rock
rcular
albeit
ntains
ndent
while
aturity
of the
00 to
re (R
o

- and
), and
h the
rmally
he oil
rmally
sions.
parse
of the
ANP
basin
tional
ay be
ble to
Basin,
VI. Brazil

June, 2013

Figure

e VI-14: Sourc
Recnca
Basin wa
drilled, of
Gomo M
lacustrine
Although
mostly ra
shale gas
EIA/ARIs
TOC cuto
ce Rock Thick
Source: AN
vo Basin.
as the count
which some
ember of t
e environme
quite thick
nging from
s resources
s screening c
off and its sh
VI
kness, Depth, T
Par
NP, 2003
One of man
trys first pro
e 1,800 exte
the Lower
ent during e
(200-1,000
1% to 2%,
in the Rec
criteria, the G
ale potentia
EIA/ARI W
-17
TOC, and The
rnaiba Basin
ny failed rift
oductive pe
ent producin
Cretaceous
early rifting,
0 m), the G
Figure VI-1
cncavo Bas
Gomo Memb
l was not as
World Shale Ga
ermal Maturity
basins in ea
etroleum bas
g wells mak
Candeias
is consider
Gomo Memb
5. ANP rec
sin to be 2
ber appears
ssessed.
s and Shale Oil
y of the Pimien
astern Brazi
sin. Over 6
ke 50,000 bb
Formation,
red the mai
ber has rela
cently estim
0 Tcf. How
s to be below
Resource Asses

nta Shale in th
l, the Recn
6,000 wells
bl/day of oil.
deposited
in source ro
atively low T
ated recove
wever, base
w the 2% ave
ssment
he
ncavo
have
The
in a
ock.
16

TOC,
erable
ed on
erage
VI. Brazil

June, 2013

Figure VI
Source: AN

I-15: The Gom
be Thick (>
P, 2003
Sergipe-A
Sergipe-A
considera
isolated a
Figure V
discovere
portion of
Pilar Field
mo Member of
1 km) but is L
Alagoas Ba
Alagoas Bas
ably larger a
and tilted fa
VI-16.
17
To
ed in the ba
f the basin.
d, showing th
VI
the Lower Cre
Lowin TOC (<2
asin. Anoth
sin extends
rea offshore
ult blocks, w
o date some
asin, with n
Figure VI-1
he numerou
EIA/ARI W
-18
etaceous Can
2%) and Most
her Neocom
over an ons
e. The basin
with major s
e 57 conve
early 5,000
17 shows a
s closely sp
World Shale Ga
deias Formati
ly Thermally I
ian rift basi
shore area
n comprises
structures tr
entional oil
0 wells drille
detailed cro
aced faults.
s and Shale Oil
ion in the Rec
Immature (R
o

n in northea
of 12,600 k
a number o
rending nort
and gas fi
ed, primarily
oss-section o
Resource Asses

cncavo Basin
<0.6%)

astern Brazi
km
2
as well
of relatively s
heast-south
ields have
y in the ons
of the Camp
ssment
n can
l, the
as a
small,
west,
been
shore
po de

VI. Brazil

June, 2013

The Cret
Sergipe-A
and calci
exhibit du
shales w
average 3
assessed
So Fran
frontier b
productio
productive
faulted st
Brazilian
although
rather tha
the lack
available
Taubat
southwes
Oligocene
were dep
is a 50-m
this depo
shale gas
Chaco-Pa
Paran B
northern
within sou
to Devoni
Cretaceou
(Cabure F
up to 2.3
The Chac
control wi
taceous Ma
Alagoas Bas
lutites that w
uctile behavi
ithin the Ma
3.5% TOC (m
d due to its s
ncisco Bas
asin in Mina
n.
19
Potent
e shales of N
ructural sett
exploration
this effort ap
an shale.
20

of an esta
geologic da
Basin. Lo
st trending tr
e Trememb
osited within
thick sectio
sit is therma
s and oil exp
aran Basi
asin is a larg
Argentina, P
uthern Brazi
ian) sedimen
us basalt flo
Formation) a
km of Perm
co-Paran B
ithin Brazil.

VI
acei Forma
sin. The Ma
were depos
ior during hy
acei Fm av
maximum 12
tructural com
sin. Very l
as Gerais a
tial source r
North Ameri
ing at depth
well for u
ppears to be
The So Fra
ablished hyd
ta.
ocated in so
rough relate
Formation
n a non-mari
on of laminat
ally immatur
ploration.
n. Not to
ge (500,000
Paraguay an
l. The basin
ntary and ign
ows. About
and black sh
m-Carbonife
Basin was no
EIA/ARI W
-19
ation (Neoap
acei Fm co
sited in a lac
ydraulic stim
verage abou
2%; Type II k
mplexity and
ittle conven
and there is
rocks are of
ca, which ar
hs of 2 to 5 k
unconvention
e targeting tig
ancisco bas
drocarbon g
outheast Bra
ed to the At
contains up
ine lacustrin
ted black sh
re oil shale
2
be confuse
-km
2
) elliptic
nd Uruguay
n contains u
neous rocks
t 1.2 km of
hales (Rinco
erous sandst
ot assessed
World Shale Ga
ptian) is th
ontains orga
custrine, no
mulation. Th
ut 200 m th
kerogen).
18

d lack of ava
ntional explo
s no signific
f Proterozoi
re about 400
km. Shell re
nal gas in
ght sandsto
sin was not a
generation s
azil, the Tau
tlantic Ocea
p to 500 m
ne environme
ale with ave
22
and is no
ed with the
cal-shaped d
. However,
p to 5 km of
s, overlain in
Devonian m
n Fm) is pre
tones and b
due to its s
s and Shale Oil
e main sou
anic-rich bla
on-marine se
he higher-qu
hick (maxim
However, th
ailable geolog
oration has
cant comme
c age, muc
0 m thick wit
eportedly pla
the So F
ne and carb
assessed by
system and
ubat Basin
n continenta
of organic-r
ent. Within t
erage 10% T
ot considered
Paran Ba
depositional
, only a very
f early Paleo
n the northea
marine-depos
esent. Thes
black shales
small extent
Resource Asses

urce rock in
ack shales, m
etting which
uality source
mum 700 m)
his basin wa
gic data.
occurred in
rcial oil and
ch older tha
thin a moder
ans to drill its
Francisco B
bonate forma
y EIA/ARI d
d the pauci
n is a north
al breakup.
rich deposits
this interval
TOC.
21
How
d prospectiv
asin, the Ch
feature mai
y small area
ozoic (Ordov
ast particula
sited sandst
se are overla
s (Sachayoj
and lack of
ssment
n the
marls
may
e rock
) and
as not
n this
d gas
n the
rately
s first
Basin,
ations
ue to
ity of
heast-
The
s that
there
wever,
ve for
haco-
nly in
a lies
vician
rly by
tones
ain by
Fm).
f data
VI. Brazil

June, 2013

Figure V
Source: AN

Figure
Source: AN

REFERE

1
Neves, A
Discove
Geologis
p.
VI-16: Cross-s
P, 2007 (no vert
VI-17: Detailed
P, 2007
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d Cross-sectio

D., and Ego
10237, Adap
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VI
Alagoas Sub-
Ro
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Numerous C
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EIA/ARI W
-20

basin, Showin
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mpo de Pilar Fi
Closely Spaced
0. Frontier
al presentatio
bition, Rio de
World Shale Ga
ng Faulted Pe
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Basins Onsh
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endncia and A
rgipe-Alagoas
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Alagamar Sou
s Basin, Show
AAPG Searc
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er 15-18, 200
ssment
urce
wing
ch and
oleum
09, 16
VI. Brazil

June, 2013

2
National
No Con
3
Amerisu
4
Petersoh
5
Milani, E
Interior B
6
Vesely,
Reservo
p. 151-1
7
Arajo,
An Inte
of the B
8
Amerisu
9
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Clark, J
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52 p.
12
Lovatin
Data in t
13
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14
MPX En
15
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De Tars
17
Fontes,
18
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a Wholly
19
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P), Reserva
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s Brasileiras
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se Drillers this
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VII. Other South America EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 VII-1
VII. OTHER SOUTH AMERICA
SUMMARY
Four other countries in South America (Bolivia, Chile, Paraguay, and Uruguay) have
prospective shale gas and shale oil potential within marine-deposited Cretaceous and Devonian
shale formations in three large basins: the Paran Basin of Paraguay and Uruguay; the Chaco
Basin of Bolivia and Paraguay; and the Magallanes Basin of Chile, Figure VII-1. (Extensions of
these basins within neighboring Argentina and Brazil were assessed in separate chapters.)
Figure VII-1: Prospective Shale Gas and Shale Oil Resources in Bolivia, Chile, Paraguay, and Uruguay.

Source: ARI, 2013

June, 2013 VII-2
Risked, technically recoverable shale gas and shale oil resources in these four other
South American countries are estimated at 162 Tcf and 7.2 billion barrels, Tables VII-1 and VII-
2. The geologic setting of this region generally is favorably simple, with mostly gentle structural
dip and relatively few faults or igneous intrusions (apart from surface basalt flows). Technically
recoverable shale resources by country are: Bolivia (36 Tcf; 0.6 billion barrels); Chile (49 Tcf;
2.4 billion barrels); Paraguay (75 Tcf; 3.7 billion barrels); and Uruguay (2 Tcf; 0.6 billion barrels).
Initial shale-related leasing and evaluation has been reported in Paraguay and Uruguay within
existing conventional petroleum license areas.

Table VII-1A. Shale Gas Reservoir Properties and Resources of Bolivia, Chile, Paraguay, and Uruguay.
3,830 3,260 2,350 2,690 1,230
OrganicallyRich 800 800 800 800 800
Net 240 240 240 240 240
Interval 10,000 - 11,000 11,000 - 12,000 12,000 - 13,000 3,300 - 5,000 5,000 - 7,000
Average 10,500 11,500 12,500 4,000 6,000
Normal Normal Normal Normal Normal
2.0% 2.0% 2.0% 3.6% 3.6%
0.85% 1.15% 1.50% 0.85% 1.15%
Low/Medium Low/Medium Low/Medium Low/Medium Low/Medium
Assoc. Gas Wet Gas Dry Gas Assoc. Gas Wet Gas
19.9 44.1 71.2 9.7 46.3
9.1 17.3 20.1 4.2 9.1
0.7 3.5 4.0 0.3 1.8
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
Parana
(747,000mi
2
)
PontaGrossa
Devonian
Marine
Cordobes
Devonian
Marine
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Thermal Maturity(%Ro)
ClayContent
R
e
s
o
u
r
c
e
Gas Phase
GIP Concentration(Bcf/mi
2
)
RiskedGIP (Tcf)
RiskedRecoverable(Tcf)

Table VII-1B. Shale Gas Reservoir Properties and Resources of Bolivia, Chile, Paraguay, and Uruguay.
6,870 9,890 14,210 1,580 1,920 1,500
OrganicallyRich 1,500 1,500 1,500 800 800 800
Net 450 450 450 400 400 400
Interval 3,300 - 9,000 7,000 - 12,000 10,000 - 16,400 6,600 - 10,000 10,000 - 14,500 11,500 - 16,400
Average 7,000 10,000 13,000 8,000 12,000 13,500
Normal Normal Normal
Slightly
Overpress.
Slightly
Overpress.
Slightly
Overpress.
2.5% 2.5% 2.5% 3.5% 3.5% 3.5%
0.85% 1.15% 1.50% 0.85% 1.15% 1.60%
Low Low Low Low/Medium Low/Medium Low/Medium
Assoc. Gas Wet Gas Dry Gas Assoc. Gas Wet Gas Dry Gas
27.8 86.8 140.5 32.5 114.8 155.9
28.7 128.7 299.5 23.1 99.2 105.2
2.9 25.7 74.9 2.3 19.8 26.3
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth(ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
ClayContent
R
e
s
o
u
r
c
e
Gas Phase
2
)
RiskedGIP (Tcf)
Chaco
(157,000mi
2
)
Austral-Magallanes
(65,000mi
2
)
Los Monos
Devonian
Marine
Estratos con Favrella
L. Cretaceous
Marine


June, 2013 VII-3
Table VII-2A. Shale Oil Reservoir Properties and Resources of Bolivia, Chile, Paraguay, and Uruguay.
3,830 3,260 2,690 1,230
Organically Rich 800 800 800 800
Net 240 240 240 240
Interval 10,000 - 11,000 11,000 - 12,000 3,300 - 5,000 5,000 - 7,000
Average 10,500 11,500 4,000 6,000
Normal Normal Normal Normal
2.0% 2.0% 3.6% 3.6%
0.85% 1.15% 0.85% 1.15%
Low/Medium Low/Medium Low/Medium Low/Medium
Oil Condensate Oil Condensate
21.8 9.3 27.7 12.0
10.0 3.6 11.9 2.4
0.40 0.15 0.48 0.09
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
Parana
(747,000mi
2
)
PontaGrossa Cordobes
Devonian
Marine
Devonian
Marine
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)

Table VII-2B. Shale Oil Reservoir Properties and Resources of Bolivia, Chile, Paraguay, and Uruguay.
6,870 9,890 1,580 1,920
Organically Rich 1,500 1,500 800 800
Net 450 450 400 400
Interval 3,300 - 9,000 7,000 - 12,000 6,600 - 10,000 10,000 - 14,500
Average 7,000 10,000 8,000 12,000
Normal Normal
Slightly
Overpress.
Slightly
Overpress.
2.5% 2.5% 3.5% 3.5%
0.85% 1.15% 0.85% 1.15%
Low Low Low/Medium Low/Medium
Oil Condensate Oil Condensate
46.0 18.7 48.4 14.5
47.4 27.7 34.4 12.6
2.37 1.39 1.72 0.63
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
Austral-Magallanes
(65,000mi
2
)
Chaco
(157,000mi
2
)
Los Monos
Devonian
Marine
Estratos con Favrella
L. Cretaceous
Marine


June, 2013 VII-4
INTRODUCTION
This chapter discusses the shale potential of the other countries in South America
(Argentina, Brazil, and Colombia-Venezuela are assessed in separate chapters). As first
highlighted in EIA/ARIs 2011 assessment, these other South American countries (Bolivia, Chile,
Paraguay, and Uruguay) have significant shale gas and oil resource potential in favorable
structural settings. Exploration shale drilling has not yet begun in the region although initial
shale leasing and evaluation are underway.
Bolivia. A significant natural gas exporter to Argentina and Brazil, Bolivia produces
natural gas from conventional reservoirs, mainly in the Chaco Basin in the southeast part of the
country. Following 2006 nationalization, YPFB administers investment and production in
Bolivia's oil and gas sector, while the Ministry of Hydrocarbons and Energy (MHE) and the
National Hydrocarbons Agency establish overall policy. Shale exploration or leasing have not
been reported in Bolivia.
Chile. ENAP, the national oil company of Chile, produces about 5,000 bbl/day mainly
from conventional reservoirs in the Magallanes basin.
1
In March 2011 ENAP announced that it
will require companies bidding for conventional oil and gas exploration blocks to also explore for
shale gas. While exploration is underway for tight gas sandstone reservoirs in the basin, no
shale-specific exploration has been reported in Chile.
Paraguay. Paraguay does not produce oil and gas, although extensions of its
sedimentary basins are productive in both Argentina and Bolivia. Only two conventional
petroleum wells have been drilled in Paraguay during the past 25 years. Shale drilling has not
occurred in the country but President Energy is investigating the shale potential at its
conventional petroleum licenses in the Chaco Basin.
Uruguay. Uruguay also does not produce oil and gas, although extensions of its
sedimentary basins are productive in neighboring Brazil and Argentina. ANCAP (Administracin
Nacional de Combustibles, Alcoholes y Portland), the state-owned oil company in Uruguay,
administers the countrys petroleum licensing. TOTAL, YPF, and others hold leases in the
onshore Paran Basin and are evaluating the shale potential.

June, 2013 VII-5
Three major sedimentary basins with prospective organic-rich and marine-deposited
black shales are present in Bolivia, Chile, Paraguay, and Uruguay, Figure VII-1. These basins,
which were assessed in this chapter, are:
Paran Basin (Paraguay, Uruguay): The Paran Basin contains black shale within the
Devonian Ponta Grossa Formation. The structural setting is simple but the basin is
partly obscured at surface by flood basalts, although this igneous cap is less prevalent
here than in the Brazil portion of the basin.
Chaco Basin (Paraguay, Bolivia): Black shale in the Devonian Los Monos Formation is
present within a relatively simple structural setting in northwest Paraguay. The shale
becomes increasingly deep and thrust faulted in southeast Bolivia, where they source
that countrys prolific conventional reservoirs.
Magallanes Basin (Chile): Known as the Austral Basin in Argentina, the Magallanes
Basin of southern Chile contains marine-deposited black shale in the Lower Cretaceous
Estratos con Favrella Formation, considered a major source rock in the basin.

1 PARAN BASIN (PARAGUAY, URUGUAY)
The Paran Basin is a large depositional feature in south-central South America. Most
of the basin is located in southern Brazil, but there are significant extensions into Paraguay,
Uruguay, and northern Argentina, Figure VII-2. This section focuses on the Paraguay and
Uruguay portions of the basin. The Paran Basin contains up to 5 km (locally 7 km) of
Paleozoic and Mesozoic sedimentary rocks that range from Late Ordovician to Cretaceous. Its
western border is defined by the Asuncion Arch, related to Andean thrusting, while the east is
truncated by the South Atlantic tectonic margin.
2
Much of the Brazilian portion of the basin is
covered by flood basalts, partly obscuring the underlying geology from seismic and increasing
the cost of drilling, but the Paraguay portion is largely free of basalt.
The main petroleum source rock in the Paran Basin is the Devonian (Emsian/Frasnian)
black shale of the Ponta Grossa Formation. The entire formation ranges up to 600 m thick in
the center of the basin, averaging about 300 m thick. TOC of the Ponta Grossa Fm reaches up
to 4.6% but more typically is 1.5% to 2.5%. The mostly Type II kerogen sourced natural gas
that migrated into conventional sandstone reservoirs.
3


June, 2013 VII-6
Figure VII-2: Prospective Shale Gas and Shale Oil Areas in the Paran Basin of Paraguay and Uruguay

Figure VII-3, a cross-section of the Paran Basin, illustrates the thick and gently dipping
Devonian source rocks that pass through the oil window into the gas window.
4
Figure VII-4, a
conventional well log in the Paraguay portion of the basin, shows Devonian source rocks and
interbedded sandstones with oil and gas shows.
5
In outcrop, the Devonian Cordobes Formation
ranges up to 160 m thick, including up to 60 m of organic-rich shale. TOC ranges from 0.7 to
3.6%, consisting mainly of Type II marine kerogen. Based on the low thermal maturity at
outcrop (R
o
0.6%), ANCAP has estimated the boundary between dry and wet gas to occur at a
depth of about 3,200 m.
6


June, 2013 VII-7

Figure VII-3: Cross-Section of the Paran Basin of Paraguay, Showing Thick and Gently Dipping Devonian
Source Rocks Passing Through the Oil and Gas Windows.
Source: Chaco Resources PLC, 2004

Figure VII-4: Asuncion-1 Well Log fromthe Paran Basin of Paraguay, Showing Devonian Source Rocks and
Interbedded Sandstones with Oil and Gas Shows.
Source: Guapex S.A., 2012

June, 2013 VII-8
The Paran Basin has remained at moderate burial depth throughout its history.
Consequently, the bulk of thermal maturation took place during the late Jurassic to early
Cretaceous igneous episode. Most of the basin remains thermally immature (R
o
<0.5%), but
there are sizeable concentric windows of oil-, wet-gas-, and dry-gas maturity in the deep central
portion of the basin.
Depth and thermal maturity of the Devonian Ponta Grossa Formation are relatively well
constrained in the Paraguay portion of the Paran Basin. The prospective area in Paraguay is
estimated at 9,440 mi
2
, of which 3,830 mi
2
is in the oil window; 3,260 mi
2
is in the wet
gas/condensate thermal maturity window; and 2,350 mi
2
is in the dry gas window.
However, Devonian depth and thermal maturity are much less certain in Uruguay.
Uruguays shale-prospective area is estimated at 3,920 mi
2
, of which 2,690 mi
2
is in the oil
window and 1,230 mi
2
is in the wet gas/condensate thermal maturity window (no evidence the
Devonian attains dry-gas thermal maturity in Uruguay). The Ponta Grossa shale averages
about 240 m thick (net), 10,500 to 12,500 ft deep in Paraguay but only 4,000 to 6,000 ft deep in
Uruguay, and averages 2.0% to 3.6% TOC.
Thermal maturity (R
o
) ranges from 0.85% to 1.5% depending mainly on depth. For
example, Amerisur reported that the Devonian Lima Fm has good (2-3%) TOC and is oil-prone
(R
o
0.87%) at their conventional exploration block. Porosity is estimated at about 4% and the
pressure gradient is assumed to be hydrostatic.
Risked, technically recoverable shale gas and oil resources from the Devonian Ponta
Grossa Shale in the Paraguay portion of the Paran Basin are estimated at 8 Tcf of shale gas
and 0.6 billion barrels of shale oil and condensate, Tables VII-1 and VII-2. Uruguay has further
estimated resources of 2 Tcf of shale gas and 0.6 billion barrels of shale oil and condensate in
this play. Risked shale gas and shale oil in-place in Paraguay and Uruguay are estimated at 60
Tcf and 28 billion barrels. The play has low-moderate net resource concentrations of 10 to 71
Bcf/mi
2
for shale gas and 9 to 28 million bbl/mi
2
for shale oil, depending on thermal maturity
window.

June, 2013 VII-9
The USGS recently estimated that Uruguays portion of the Paran Basin (Norte Basin)
has 13.4 Tcf of shale gas and 0.5 billion barrels of shale oil resources in the Devonian Cordobes
Formation. They noted that the sub-basalt extent of inferred deep grabens for their study was
imaged by ANCAP using geophysical methods, with no well control.
7
Petrel Energy recently
noted that new data indicates the Devonian is less thermally mature than mapped by the
USGS.
8
The EIA/ARI thermal windows were adjusted accordingly.
1.4 Recent Activity
TOTAL, YPF, and small Australia-based Petrel Energy hold large exploration licenses
with Devonian shale potential in the Uruguay portion of the Paran Basin (Norte Basin). No
shale-focused drilling has occurred in Uruguay, nor has shale leasing or drilling activity been
reported in the Paraguay portion of the Paran Basin.

2 CHACO BASIN (BOLIVIA, PARAGUAY)
The large (157,000-mi
2
)

Chaco Basin is an intra-cratonic foreland basin broadly similar in
origin to the Neuquen and other South American basins east of the Andes Mountains, Figure
VII-5. The Chaco Basin extends across southeast Bolivia and northwest Paraguay, as well as
southern Brazil and northern Argentina (please see separate chapters for these countries).
Structural highs (Ascuncion Arch) separate the Chaco Basin from the Parana Basin to the
southeast. Structure is relatively simple, with scattered mainly vertical normal faults and none of
the thrusting typical of Andean tectonics further to the west.
Sub-basins include the Pirity, Carandayty, and Curupayty troughs. Oil and gas
production occurs in Bolivia and Argentina but not in Paraguay, which has experienced much
less drilling. Fewer than 10 petroleum wells have been drilled in the Pirity Sub-basin of
Paraguay, all pre-1987, where no commercial production has occurred. However, the Argentina
portion of the Basin (Olmedo Sub-basin) has produced over 110 million bbls of oil from the
Upper Cretaceous Yacoraite and Palmer Largo formations and that basin continues to be
productive.
9
Apart from the international border, no geologic discontinuity separates the two
sub-basins.

June, 2013 VII-10
Figure VII-5: Prospective Area of the Devonian Los Monos Formation, Chaco Basin, Paraguay and Bolivia

The main source rocks include the Silurian Kirusillas Formation and the Devonian Los
Monos and Icla formations.
10
The Devonian, considered the main source rock for the world-
class conventional gas fields in the Tarija Basin foothills of southeast Bolivia, appears to have
shale gas potential in northwest Paraguay where structure is considerably simpler, Figure VII-6.
The gas window in this basin reportedly is at about 2 km depth.
Significant shale gas potential exists within the 8,000- to 12,000-foot thick Devonian Los
Monos Formation in the Carandaity and Curupaity sub-basins of Paraguay. The Devonian is
exceptionally thick in southern Bolivia but consists mainly of coarse-grained sandstones there.
The Devonian is also deeper and structurally more complex in much of Bolivia, Figure VII-7.
Within the Los Monos, the San Alfredo Shales appear to be most prospective, comprising a
lower sandy unit and an upper thick, monotonous black shale that formed under shallow marine
conditions.
11
The thickest Devonian section (8,339 feet) penetrated in the Chaco Basin was in
the Pure Oil Co. Mendoza-1 well. The Los Monos marine shale accounted for about 8,200 feet
of this section.
12


June, 2013 VII-11
Figure VII-6: Regional Seismic Time Section Across the Chaco Basin of Bolivia and Paraguay, Showing
Thick and Mostly Flat-Lying Silurian and Devonian Source Rocks.

Source: Wade, 2009

Figure VII-7: Regional Cross-Section Across the Chaco Basin of Bolivia and Paraguay, Showing Thick and
Mostly Flat-Lying Silurian and Devonian Source Rocks.
Source: CDS Oil and Gas Group, PLC, 2006
Scarce geochemical data suggest 2.5% overall average TOC for the entire Los Monos,
but richer zones are likely to be present within this thick and poorly documented unit. An
exploration well in the Curupaity sub-basin measured up to 2.1% TOC in the Los Monos.
Independent E&P Amerisur reports TOC of 1.44% to 1.86% in the Devonian Los Monos Fm in
the Curupaity sub-basin.
13
Depth to the Los Monos Shale can exceed 10,000 feet (3,000 m) in
deep synclines such as the San Pedro Trough.
14,15
Structural uplifts within the Chaco Basin
have high geothermal gradients and are gas-prone.
Another potential source rock is the Puesto Guardian Member in the lower portion of the
U. Cretaceous Yacoraite Formation. The Puesto Guardian reportedly contains about 78 m of
black shale within a 6,000-km
2
area of the Pirity Sub-basin of the Cretaceous Basin.
16
TOC is
up to 12%, consisting of Type II / III amorphous and algal kerogen that was deposited in

June, 2013 VII-12
lacustrine to restricted marine environments. Peak hydrocarbon maturation and charge is
estimated to have occurred 34-40 million years ago, with current maturity in the oil window.
However, the potential of the Cretaceous shale was not assessed due to insufficient geologic
control.
The Devonian Los Monos Formation is exceptionally thick (as much as 12,000 feet) in
the Chaco Basin, of which 2,000 feet (San Alfredo Shales) was conservatively assumed to be
organic-rich. Faulting is not extensive, thus relatively little area is sterilized due to structural
complexity.
The shale matrix reportedly consists primarily of brittle minerals such as calcite,
dolomite, albite feldspar, ankerite, quartz as well as significant rutile and pyrite. Some clay is
present -- mainly illite, kaolinite and chlorite but is considered less common.
17
Temperature
gradients range from elevated 1.9F/100 feet on structural highs to 1.0F/100 feet in the
Carandaity sub-basin.
Depth and thermal maturity of the Devonian Los Monos Formation are relatively well
constrained in the Paraguay portion of the Chaco Basin. The prospective area in Paraguay is
2
, of which 6,200 mi
2
2
is in the wet
2
is in the dry gas window. An additional
8,760 mi
2
is prospective in Bolivia, of which 670 mi
2
2
is in the wet
2
is in the dry gas window.
Risked, technically recoverable shale gas and shale oil resources from the Devonian Los
Monos black shale in the Paraguay portion of the Chaco Basin are estimated at 67 Tcf of shale
gas and 3.2 billion barrels of shale oil and condensate, Tables VII-1 and VII-2. Bolivia has
further estimated resources of 37 Tcf of shale gas and 0.6 billion barrels of shale oil and
condensate. Risked shale gas and shale oil in-place are estimated at 457 Tcf of shale gas and
75 billion barrels of shale oil for the two countries. The play has moderate to high net resource
concentrations of 28 to 141 Bcf/mi
2
2
for shale oil,
depending on thermal maturity window.

June, 2013 VII-13
2.4 Recent Activity
Initial shale evaluation is occurring on existing conventional petroleum exploration leases
in the Chaco Basin, but no shale-specific drilling or testing has occurred yet. President Energy
PLC (UK) holds eight conventional petroleum exploration licenses which it considers to have
shale gas/oil potential.

3 MAGALLANES BASIN (CHILE)
Located in southern Patagonia, the 65,000-mi
2
Austral-Magallanes Basin has promising
but untested shale gas potential, Figure VII-8. While most of the basin is in Argentina, where it
is called the Austral Basin, a portion of the basin is located in Chiles Tierra del Fuego region,
where it is referred to as the Magallanes Basin. The Chile portion of the basin, which started
producing conventional natural gas over 60 years ago, currently accounts for most of that
countrys oil and gas output, produced primarily from deltaic to fluvial sandstones in the Early
Cretaceous Springhill Formation at depths of about 6,000 feet.
The Magallanes Basin comprises two main structural regions: a normal faulted eastern
region and a thrust faulted western area. The basin contains a thick sequence of Upper
Cretaceous and Tertiary sedimentary and volcaniclastic rocks which unconformably overlie
deformed metamorphic basement of Paleozoic age. Total sediment thickness ranges from
3,000 to 6,000 feet along the eastern coast to a maximum 25,000 feet along the basin axis.
Jurassic and Lower Cretaceous petroleum source rocks are present at moderate depths of
6,000 to 10,000 feet across large areas.
18
The overlying Cretaceous section comprises mainly
deepwater turbidite clastic deposits up to 4 km thick, which appear to lack shale gas and oil
potential.
19


June, 2013 VII-14
Figure VII-8: Prospective Area of the L. Cretaceous Estratos con Favrella Formation, Magallanes Basin, Chile


June, 2013 VII-15
The organic-rich shales of Jurassic and Early Cretaceous age formed under anoxic
marine conditions within a Neocomian sag on the edge of the Andes margin, Figure VII-9. The
basal sequence consists of Jurassic source rocks that accumulated under restricted lacustrine
conditions within small half-grabens. Interbedded shale and sandstone of the Zapata and Punta
Barrosa formations were deposited in a shallow-water marine environment.
20
The mid-lower
Jurassic Tobifera Formation contains 1% to 3% TOC (maximum 10% in coaly shales),
consisting of Types I to III kerogen. However, this unit is mainly coaly and probably
insufficiently brittle for shale exploration.

Figure VII-9: Stratigraphy of the Austral-Magallanes Basin, Argentina and Chile
MARGAS
VERDES FM
LOWER
INOCERAMUS
FM
Source: Rossello et al., 2008


June, 2013 VII-16
Overlying the Tobifera Fm are more prospective shales within the Early Cretaceous
Estratos con Favrella Formation (or Lower Inoceramus or Palermo Aike in Argentina), deposited
under shallow water marine conditions. The Lower Inoceramus Formation is 50 to 400 m thick.
In the Argentina portion of the basin, the total shale thickness (including the Magnas Verdes
Formation) ranges from 800 feet thick in the north to 4,000 feet thick in the south, representing
neritic facies deposited in a low-energy and anoxic environment.
21
Total organic content of
these two main source rocks have been reported to range from 1.0% to 2.0%, with hydrogen
index of 150 to 550 mg/g.
22
More recent analysis conducted by Chesapeake Energy of the
Lower Cretaceous Estratos con Favrella Formation in Chile indicates this unit contains marine-
deposited shale with consistently good to excellent (up to 6%) TOC, particularly near its base.
23

Figure VII-10, a seismic time section across the basin, shows the 180-m thick Estratos
con Favrella Formation dipping gently west in a relatively simple structural setting. Net organic-
rich shale thickness was estimated by ENAP to be only 40 to 120 ft, although this appears
conservative and we assumed 280 net ft. ENAP also estimated porosity of 6% to 12%, but we
assumed a more conservative estimate of 6%. Thermal maturity increases gradually with depth
in a half-moon pattern, ranging from oil-prone (R
o
0.8%) to dry gas prone (R
o
2.0%). The
transition from wet to dry gas (R
o
1.3%) occurs at a depth of about 3,600 m in this basin.
24

Chiles portion of the Magallanes Basin has an estimated 5,000-mi
2
prospective area
with organic-rich shale in the Estratos con Favrella and adjoining Lower Cretaceous formations.
Of this total prospective area, about 1,580 mi
2
2
is in the wet
2
is in the dry gas window. The Estratos
con Favrella and adjoining shales average about 800 ft thick (organic-rich), 8,000 to 13,500 ft
deep, and have estimated 3.5% average TOC. Thermal maturity (R
o
) ranges from 0.7% to 2.0%
depending mainly on depth. Porosity is estimated at about 5%. The Estancia Los Lagunas gas
condensate field in southeast Argentina measured a 0.46 psi/ft pressure gradient with elevated
temperature gradients in the Serie Tobifera Fm, immediately underlying the Lower Inoceramus
equivalent.
25


June, 2013 VII-17

Figure VII- 10: Seismic Time Section Across the Magallanes Basin, Showing Marine Source Rock Shales in
the 180-mThick L. Cretaceous Estratos con Favrella Formation within a Relatively Simple Structural Setting.
Source: Methanex, September 27, 2012

Risked, technically recoverable shale gas and oil resources from the Estratos con
Favrella and adjoining Lower Cretaceous formations in the Chile portion of the Magallanes
Basin are estimated at 48 Tcf of shale gas and 2.4 billion barrels of shale oil and condensate,
Tables VII-1 and VII-2. Risked shale gas and shale oil in-place are estimated at 228 Tcf and 47
billion barrels, respectively. The play has moderate to high net resource concentrations of 33 to
156 Bcf/mi
2
2
for shale oil, depending on thermal
maturity window.
3.4 Recent Activity
No shale leasing or exploration activity has been reported in the Magallanes Basin.
Methanex operates a methanol manufacturing plant in the basin which is running at about 10%
of its 2 million t/year capacity due to local shortages of natural gas supply.
26
During 2011-2,
Methanex had partnered with ENAP on conventional oil and gas exploration in the Magallanes
Basin and also had expressed interest in shale gas exploration. However, recently the
company decided to relocate about half of its methanol production capacity in Chile to
Louisiana, USA.
27


June, 2013 VII-18
UK-based GeoPark holds conventional petroleum leases in the Magallanes Basin of
Chile, which the company notes contains shales in the Estratos con Favrella Formation which
previously have produced oil. In 2012 GeoPark conducted diagnostic fracture injection tests on
eight wells on the Fell Block to determine reservoir properties of the shale.
28

REFERENCES

1
ENAP (Empresa Nacional del Petrleo), 4Q 2012 Results, April 2013, Santiago, Chile, 28 p.
2
Milani, E.J. and Zaln, P.V., 1999. An Outline of the Geology and Petroleum Systems of the Paleozoic
Interior Basins of South America. Episodes, vol. 22, p. 199-205.
3
Vesely, F.F., Rostirolla, S.P., Appi, C.J., Kraft, E.P., 2007. Late Paleozoic Glacially Related Sandstone
Reservoirs in the Parana Basin, Brazil. American Association of Petroleum Geologists, Bulletin, vol. 91,
p. 151-160.
4
Chaco Resources PLC, 2004. Proposed Acquisition of Amerisur S.A. and Bohemia S.A., Notice of
Extraordinary General Meeting. 83 p.
5
Guapex S.A., 2012. Unconventional Gas in Paraguay. 21 p.
6
US Geological Survey, 2011. Assessment of Potential Shale Gas and Shale Oil Resources of the
Norte Basin, Uruguay, 2011. 2 p.
7
US Geological Survey, 2011. Assessment of Potential Shale Gas and Shale Oil Resources of the
Norte Basin, Uruguay, 2011. 2 p.
8
Petrel Energy Limited, Investor Presentation, November 2012, 22 p.
9
President Energy PLC, Resource Evaluation prepared by DeGoyler and MacNaughton, December 15,
2012, 27 p.
10
Wade, J., 2009. Nonproducing Paraguays Potential Conventional and Unconventional. Oil and Gas
Journal, April 6, p. 39-42.
11
Petzet, A., 1997. Nonproducing Paraguay to get Rare Wildcats. Oil and Gas Journal, April 21.
12
Wiens, F., 1995. Phanerozoic Tectonics and Sedimentation in the Chaco Basin of Paraguay, with
Comments on Hydrocarbon Potential. ln A. J. Tankard, R. Suarez S., and H. J. Welsink, eds.,
Petroleum Basins of South America. American Association of Petroleum Geologists Memoir 62, p. 185-
205.
13
Amerisur Resources PLC, 2009. Interim Results Presentation, December, 36 p.
14
Kuhn, C.A.C., 1991. The Geological Evolution of the Paraguayan Chaco. Ph.D. dissertation, Texas
Tech.
15
Grupo Montecristo, 2012. Unconventional Gas in Paraguay. 21 p.
16
President Energy PLC, Investor Presentation, January 2013, 32 p.
17
Kern, M., Machado, G., Franco, N., Mexias, A., Vargas T., Costa, J., and Kalkreuth, W. 2004. Source
Rock Characterization of Paran Basin, Brazil: Sem and XRD Study of Irati and Ponta Grossa
Formations Samples. 3 Congresso Brasileiro de P&D em Petrleo e Gs, 2 a 5 de outubro de 2005,
Salvador, Brasil.
18
Rodriquez, J. and Cagnolatti, M.J., 2008. Source Rocks and Paleogeography, Austral Basin,
Argentina. American Association of Petroleum Geologists, Search and Discovery Article #10173, 24 p.

June, 2013 VII-19

19
Romans, B.W., Fildani, A., Hubbard, S.M., Covault, J.A., Fosdick, J.C., and Graham, S.A., 2011.
Evolution of Deep-water Stratigraphic Architecture, Magallanes Basin, Chile. Marine and Petroleum
Geology, vol. 28, p. 612-628.
20
Fildani, A. and Hessler, A.M., 2005. Stratigraphic Record Across a Retroarc Basin Inversion: Rocas
VerdesMagallanes Basin, Patagonian Andes, Chile. Geological Society of America, vol. 117, p.
1596-1614.
21
Ramos, V.A., 1989. Andean Foothills Structures in Northern Magallanes Basin, Argentina. American
Association of Petroleum Geologists, Bulletin, vol. 73, no. 7, p. 887-903.
22
Pittion, J.L. and Arbe, H.A., 1999. Sistemes Petroleros de la Cuenca Austral. IV Congreso
Exploracion y Desarrollo de Hidrocarburos, Mar del Plata, Argentina, Actas I, p. 239-262.
23
Methanex, Investor Presentation, September 27, 2012, 129 p.
24
Legarreta, L. and Villar, H.J., 2011. Geological and Geochemical Keys of the Potential Shale
Resources, Argentina Basins. American Association of Petroleum Geologists, Search and Discovery
Article, Adapted from AAPG Geoscience Technology Workshop, Unconventional Resources: Basics,
Challenges, and Opportunities for New Frontier Plays, Buenos Aires, Argentina, June 26-28, 2011.
25
Venara, L., Chambi, G.B., Cremonini, A., Limeres, M., and Dos Lagunas, E., 2009. Producing Gas
And Condensate From a Volcanic Rock In The Argentinean Austral Basin. 24
th
World Gas Congress,
5-9 October, Buenos Aires, Argentina.
26
Methanex, Investor Presentation, March 2013, 37 p.
27
Methanex, news release, April 2013.
28
GeoPark Holdings Limited, Second Quarter 2012 Operations Update, July 23, 2012, 6 p.
VIII. Poland

June, 2013

VIII. P
SUMMA
P
developm
relatively
structura
area, the
coaly sha
Source

POLAN
ARY
Poland has s
ment. The B
y simple stru
lly complex,
e Fore-Sude
ale potential
e: Modified from
D (INCLU
some of Euro
Baltic Basin
uctural settin
with closely
etic Monoclin
similar to A
Figure VIII-1
m San Leon Ener
VI
UDING LIT
opes most f
in northern
ng. The Pod
y spaced fau
ne in southw
Australias Co
: Location of
rgy, 2012
EIA/ARI W
II-1
THUANIA A
favorable inf
Poland rem
dlasie and L
ults which m
west Poland
ooper Basin.
Assessed Sh
World Shale Ga
AND KAL
frastructure
mains the mo
Lublin basins
ay limit horiz
, is less rec
.
ale Basins in
s and Shale Oil
LININGRA
and public
ost prospect
s also have
zontal shale
cognized but
Poland.
Resource Asses

D)
support for s
tive region w
potential bu
drilling. A f
t has non-m
ssment
shale
with a
ut are
fourth
marine
VIII. Poland

June, 2013

P
shale ga
Lithuania
shale oil
technical
confirme
challengi
assessm
an energ
Source: ARI, 2
D
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pros
Thic
Dept
B
a
s
i
c
D
a
t
a
R
e
s
o
u
r
c
e
Gas
GIP
Risk
Risk
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRese
Aver
Ther
Clay

Polands risk
s and 1.8 b
a adds 0.4 T
resources,
lly recoverab
d the shale
ing than orig
ment resulted
gy-equivalen
Tab
2013
Organica
Net
Interval
Average
Depositional Environ
spectiveArea(mi
2
)
ckness (ft)
th (ft)
Basin/Gross Are
ShaleFormation
Geologic Age
Phase
Concentration(Bcf/m
kedGIP (Tcf)
kedRecoverable(Tcf
ervoir Pressure
rageTOC (wt. %)
rmal Maturity(%Ro)
yContent
ked, technica
billion barrels
Tcf and 0.3
Table VIII-
ble shale ga
e resource
ginally antici
d in a 20% r
t basis.
le VIII-1: Shale
830
allyRich 820
451
6,500 - 9,8
8,200
Mod.
Overpres
3.9%
0.85%
Medium
Assoc. Ga
36.6
12.1
1.2
nment
a
Ba
n
L. S
mi
2
)
f)
)
VI
ally recover
s of shale o
billion barre
3. Kalining
as and shale
potential b
pated by ind
reduction in
e Gas Reservo
2,070 5
820 8
451 4
800 7 - 13,000 9 -
10,000 12
ss.
Mod.
Overpress
M
Ove
3.9% 3
1.15% 1
m Medium Me
as Wet Gas Dr
131.0 1
108.5 4
21.7 8
Marine
altic/WarsawTrough
(16,200mi
2
)
Llandovery
il - Ord. - U. Cambrian
EIA/ARI W
II-2
rable shale
il in four ass
els of risked
grad adds 2
e oil resourc
but suggest
dustry. New
EIA/ARIs e
oir Properties
Lubl
(4,980
Llando
L.Sil-Ord-U.C
Marin
5,680 2,39
820 415
451 228
16,000 7,000 - 1
2,500 11,00
Mod.
erpress.
Slightly Ove
3.9% 3.0%
.80% 1.35
edium Mediu
ry Gas Dry G
81.1 91.2
411.5 45.8
82.3 9.2
n
World Shale Ga
resources a
sessed basi
d, technically
.0 Tcf and
ces, Table V
ts that rese
w data collec
estimate of P
and Resourc
in
mi
2
)
overy
Cambrian
ne
90 1,000
5 540
8 297
16,000 6 - 9,000
00 7,500
erpress.
Slightly
Overpres
% 3.0%
5% 0.85%
um Medium
Gas Assoc. Ga
2 27.4
8 6.6
2 0.7
L.
s and Shale Oil
are estimate
ins, Tables
y recoverabl
1.2 billion b
VIII-3. Initia
ervoir cond
cted since ou
Polands sha
ces of Poland.
1,100
540
297
0 6,500 - 11,500 1
9,500

s.
Slightly
Overpress. O
3.0%
1.15%
m Medium
as Wet Gas
82.3
21.7
4.3
Sil - Ord. - U. Cambri
Marine
Podlasie
(6,600mi
2
)
Llandovery
Resource Asses

ed at 146 T
VIII-1 and V
le shale gas
barrels of ris
al exploration
ditions are
ur 2011 reso
ale resource

ForeS
(19,70
Carbon
Carbon
Lacus
860 9,0
540 33
297 18
0- 16,000 8 - 16
12,500 12,0
Slightly
Overpress
Slig
Overp
3.0% 3.0
1.80% 1.6
Medium Med
Dry Gas Dry
122.4 67
25.3 106
5.1 21
ian
ssment
Tcf of
VIII-2.
s and
sked,
n has
more
ource
es, on

Sudetic
00mi
2
)
niferous
niferous
strine
070
30
82
6,000
000
htly
press.
0%
0%
dium
Gas
7.2
6.7
.3
VIII. Poland

June, 2013

Tabl

P
vertical e
been dril
Last yea

Tab
Source: ARI, 2
e VIII-3: Shale
Polands sha
exploration w
lled to date.
r, ExxonMo
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pr
Th
De
B
a
s
i
c
D
a
t
a
R
e
s
o
u
r
c
e
Oi
OI
Ri
Ri
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRe
Av
Th
Cl
ble VIII-2: Shal
2013.
e Gas and Sha
le industry i
wells and a h
. However,
bil abandon
Orga
Net
Inte
Ave
rospectiveArea(m
hickness (ft)
epth (ft)
Basin/Gross
ShaleForm
Geologic A
Depositional Env
il Phase
IP Concentration
isked OIP (B bbl)
isked Recoverable
eservoir Pressure
verageTOC (wt. %
hermal Maturity (%
lay Content
VI
le Oil Reservo
ale Oil Reservo
s still at an
half-dozen v
early result
ed the fault
anically Rich
rval 6,5
rage
O
mi
2
)
s Area
mation
Age
vironment
(MMbbl/mi
2
)
e(B bbl)
%)
%Ro)
L
EIA/ARI W
II-3
oir Properties

oir Properties
early explor
vertical and t
ts have not
-prone Lubl
830
820
451
500 - 9,800 7,000
8,200 1
Mod.
Overpress. Ove
3.9%
0.85% 1
Medium M
Oil Con
42.2
14.0
0.70
Baltic/WarsawTr
(16,200mi
2
)
Llandovery
L. Sil - Ord. - U. Ca
Marine
World Shale Ga
and Resource
and Resourc
ratory, pre-c
two horizont
met industr
in and Podl
2,070 1,
820 5
451 2
0 - 13,000 6,000
10,000 7,
Mod.
erpress.
Sli
Over
3.9% 3.
1.15% 0.8
Medium Me
ndensate O
12.8 3
10.6 8
0.53 0
rough
)
y
ambrian L. S
s and Shale Oil
es of Poland.
ces of Lithuan
commercial p
tal productio
rys high init
asie basins
,000 1,10
540 54
297 29
0 - 9,000 6,500 -
,500 9,50
ghtly
rpress.
Sligh
Overp
.0% 3.0
85% 1.15
edium Med
Oil Conde
36.2 11.
8.7 2.9
0.43 0.1
Podlasie
(6,600mi
2
)
Llandovery
Sil - Ord. - U. Camb
Marine
Resource Asses

ia/Kaliningrad
phase. Abo
on test wells
tial expectat
after drilling
00
40
97
11,500
00
htly
ress.
0%
5%
ium
ensate
.1
9
15
brian
ssment
d

out 30
have
tions.
g two
VIII. Poland

June, 2013

vertical t
initial tes
favorable
with rese
Meanwh
introduci
Y
North Am
requires
over 100
largest s
well and
a key ch
achieving
fold highe
INTROD
W
recent ex
developin
2007 wh
developm
T
block siz
back-in r
contract
30-year p
licenses
countrys

test wells.
st wells in t
e Baltic Basi
ervoir qualit
ile, the gove
ng higher ta
Yet, it is too s
merica typic
many hundr
0 geologically
hale lease p
recently dril
allenge, inc
g better exe
er well cost
DUCTION
With an esta
xperience w
ng a viable
hen the Min
ment, includi
The current i
ze, minimal
rights, and r
comprises a
production p
have been
s area.
ConocoPhil
the Baltic a
n, Marathon
ty and bein
ernment deb
xes and ma
soon to dism
ally requires
reds more.
y diverse lic
position, rep
lled a horizo
luding locati
ecution of hy
differential c
ablished ons
ith coalbed
shale gas/o
istry of Env
ng a simple
nvestment te
signature f
educed prod
an initial 5-y
period. Indus
awarded, c

VI
lips and Ch
nd Lublin b
n and Talism
ng not part
bates rolling
ndating gove
miss Polands
s drilling ab
E&P compa
censes. Sta
ported test g
ontal offset w
ing the best
ydraulic frac
compared w
shore conve
methane ex
il industry.
vironment im
tax and roy
erms for sha
fees of 50 E
duction roya
year explora
strys respon
covering mo
EIA/ARI W
II-4
hevron are
basins, respe
man recently
ticularly ent
g back some
ernment bac
s extensive
out 100 we
anies continu
te oil compa
gas productio
well. Determ
t completion
ture stimula
ith North Am
entional oil a
xploration, P
Shale leasin
mplemented
alty fiscal sy
ale gas deve
Euros/block,
alties of $0.0
ation period,
nse has bee
ore than 35,
World Shale Ga
moving cau
ectively. A
exited after
thused by r
e favorable
ck-in rights.
shale poten
lls, while ac
ue to explor
any PGNiG,
on from its f
mining best-p
n zones with
ations, and r
merica.
and gas pro
oland offers
ng and deve
highly favo
ystem.
elopment inc
, freedom f
06/Mcf and $
, which can
en strong: ov
000 km
2
, n
s and Shale Oil
utiously towa
And even in
expressing
results we'v
shale inves
tial. Deriski
chieving eco
re Polands s
which contr
first stimulat
practices op
in the thick
reducing the
oduction ind
s Europes b
elopment in
orable policie
clude a 1,20
from manda
$1.60/bbl. T
be extende
ver 100 shale
o less than
Resource Asses

ards drilling
the geolog
disappointm
ve had to d
stment term
ng shale pla
onomies of
shale potent
rols the cou
ted vertical s
perations rem
shale seque
e current sev
dustry as we
best prospec
Poland beg
es for shale
00-km
2
maxi
atory govern
The typical s
ed, followed
e gas explor
one-third o
ssment
their
gically
ment
date.
ms, by
ays in
scale
tial in
ntrys
shale
mains
ence,
veral-
ell as
cts for
gan in
e gas
imum
nment
shale
by a
ration
of the
VIII. Poland

June, 2013

H
terms w
establish
developm
investme
T
successf
with one
fracturing
as explo
service c
stimulatio
GEOLO
P
activity is
Baltic Ba
Basin in
Carpathia
shales, b
T
shale de
to 5,000
areas oc
kerogen.
to extens
and gas
H
combinat
understo
porosity.

However, mo
hich may i
hing a gove
ment project
ent in shale e
The initial res
ful than hope
e operator te
g operations
ration contin
companies a
on technolog
OGIC OVER
Poland has f
s taking plac
asin and Wa
east Polan
an Foreland
but this area
The Paleozo
posits which
m. Most ar
ccurring in t
Abundant
sive study a
fields. Basic
However, th
tion of high
ood. Severa
And where
ore recently
ncrease pro
ernment-ow
ts. These
exploration a
sults from so
ed. Product
esting ~4%
s to stimulate
nues, opera
are likely to
gy.
RVIEW
four main ba
ce, Figure V
arsaw Troug
d, and the
d belt of sou
is structural
oic sedimen
h in places a
reas are in t
the north a
geologic dat
as they are c
c shale expl
he distributi
h porosity a
al of the ea
eas quartz c
VI
the governm
ofit taxes o
ned entity
changes, if
at a time of d
ome 30 vert
tion rates an
porosity an
e production
ators may su
o improve th
asins where
VIII-1. Discu
gh in northe
Fore-Sudeti
utheastern P
lly complex a
tary sequen
are thick, org
the gas-pron
nd east. O
ta exists on
considered t
oration map
on of favo
and brittle m
arly shale e
ontent in se
EIA/ARI W
II-5
ment is disc
on shale ga
to gain a
f implement
disillusionme
tical and two
nd reservoir
nd ~40% cla
n from the sh
uccessfully i
heir impleme
e Paleozoic
ussed separ
rn Poland, t
c Monocline
Poland, cou
and has not
nce in Pola
ganic-rich an
ne thermal m
Organic mat
these Paleo
the main so
ps can be ac
orable shal
mineralogy w
exploration
elected areas
World Shale Ga
cussing mod
as productio
minority e
ted, could s
ent with early
o horizontal
quality have
ay content
hale also ha
identify the
entation of
shales are
rately in Sec
the Podlasie
e in the sou
ld be prosp
yet been ta
and contain
nd buried at
maturity wind
tter general
ozoic shales
ource rocks f
curately con
e rock pro
with low cla
wells have
s can be fav
s and Shale Oil
difications to
on to 40%
equity stake
significantly
y well result
l shale wells
e been lowe
in several w
ave been su
geologic sw
North Amer
prospective
ctions 1-4, t
e Depressio
uthwest.
1
A
pective for o
rgeted for sh
ns several m
prospective
dow, with sm
lly is domin
s. They have
for Polands
nstructed in m
operties --
ay content
tested low
vorably high
Resource Asses

o the shale
or more,
e in shale
reduce ind
ts.
s have been
er than expe
wells. Hyd
b-par. How
weet spots,
rican drilling
e and explor
these includ
on and the L
A fifth region
oil-prone Jur
hale leasing
marine-depo
e depths of 1
maller liquids
nated by Ty
e been subje
s convention
most regions
particularly
-- is still p
er-than-expe
(40-80%), s
ssment
fiscal
while
gas
dustry
n less
ected,
raulic
wever,
while
g and
ration
e the
Lublin
n, the
rassic
.
osited
1,000
s-rich
ype II
ected
nal oil
s.
y the
poorly
ected
some
VIII. Poland

June, 2013

recent sh
fracture s
the exten
completio
needed t
T
Silurian
Cambria
also have
L
ex
th
b
re
of
u
g
P
a
O
d
D
d
C
C
ex
C
th
w
te
T
th
se
o
q

hale drilling
stimulation.
nt and precis
on. Conse
to define pot
The main str
and Ordovi
n shale is e
e potential.
Lower Silur
xploration ta
housand me
ottom of the
esistivity, hig
f dark gray
sually filled
enerally ave
Podlasie Bas
s well. The
Ordovician.
eposit exte
Dictyonema
eposits.
Cambrian.
Cambrian al
xploration.
Cambrian. U
hin shales n
which repres
errigenous s
The Lower C
he relatively
equence co
nly in the no
uite thin (sev
has tested h
In addition,
se location o
equently, co
tential sweet
ratigraphic t
cian marine
merging as
rian (Llando
arget in Pola
eters of sha
e section. T
gh-TOC sec
to black, de
with calcit
erages 1.5%
sin averages
Wenlock is
Marine-dep
nding from
Shale, whic
Although n
so contains
PGNiG an
Up to 700 m
near the top
sent the tran
edimentary
Cambrian is d
y thin Mid-C
ntaining hig
orthern part
veral to 50 m
VI
high clay co
, the local st
of problema
onsiderable
t spots.
targets for s
e-deposited
a secondar
overy-Wenlo
and. The Si
ale and silts
The most p
ction in the L
ense siltston
te, although
% to 2.5% TO
s 6% TOC a
richest in the
posited grap
Scandinav
ch comprise
ot evaluate
s organic-ric
nd Lane En
of Cambrian
. Cambrian
nsition from
environmen
dominated b
Cambrian A
h TOC.
3
Th
of the Baltic
m).
EIA/ARI W
II-6
ntent (30-40
tructural geo
atic faults wh
exploration
shale gas/o
shales. T
ry objective,
ock) graptol
lurian sectio
stone, with
rospective p
Llandovery,
nes and sha
h the matrix
OC but is ric
and TOC ca
e eastern Ba
ptolitic black
via to Russ
es fine-grai
d in the pr
ch shale th
ergy have
n section is
n units includ
continental
ts.
by quartz sa
Alum Shale
he Upper C
c Basin, con
World Shale Ga
0%), which i
ology often i
hich may int
drilling an
oil exploratio
The thinner
while non-m
itic black s
on comprises
TOC gener
portion is ap
Wenlock an
les. Natura
x is non-ca
cher in the c
an be high in
altic and sou
shales in P
sia.
2
These
ned, non-m
revious 201
hat increas
reported te
present, mo
de the Zarn
alluvial fan
ndstones in
e is a trans
Cambrian to
ntains high a
s and Shale Oil
s less cond
is poorly kno
erfere with s
d seismic s
on in Poland
but therma
marine Carb
shale is the
s several hu
rally increas
pproximately
nd lowest Lu
al fractures a
alcareous.
central Baltic
n the northw
utheastern L
Poland are p
e include E
metamorphos
1 EIA/ARI
ingly is be
est gas prod
ostly tight sa
nowiec and
deposits to
terbedded w
sgressive, s
Tremadocia
average TOC
Resource Asses

ucive to effe
own, in part
shale drilling
surveys are
d are the L
ally more m
boniferous s
e primary s
undred to se
sing towards
y 500 m of
udlow, cons
are common
The Llando
c Basin, whil
west Lublin B
Lublin basins
part of a reg
Early Ordov
sed, organic
assessment
ing targeted
duction from
andstone but
Upper Vend
o shallow m
with shales,
sediment-sta
an shale, pre
C of 3-12% b
ssment
ective
icular
g and
e still
Lower
mature
hales
shale
everal
s the
high-
isting
n and
overy
le the
Basin
s.
gional
vician
c-rich
t, the
d for
m the
t with
dians,
marine
while
arved
esent
but is
VIII. Poland

June, 2013

C
se
u
d
m
b
C
te
In
organic-r
apparent
U
P
se
b
d
H
o
p
K
M
o
n
M
h
a
T
Ju
co
p
co

Carboniferou
equences o
nits, such a
eposits. Alt
methane exp
rittle enough
Cooper Basi
esting the Ca
n addition t
rich shale c
tly less prosp
Upper Perm
Permian Ro
equence, th
asins as we
eposited un
However, the
ccur in high
roduction.
Kupferschiefe
Mesozoic an
ccur in the
on-marine a
Miocene Men
igh-quality s
ddition, up t
TOC is prese
urassic orga
onsidered w
resent in the
omplex to be
us Coaly S
of Carbonife
s the Anthra
though cons
ploration targ
h for effectiv
n of Austra
arboniferous
to these fou
candidates e
pective shal
mian Kupfer
tliegendes
e Kupfershie
ell as in othe
nder anoxic
e economica
concentrati
None of
er.
nd Tertiary
Carpathian
and mostly
nilite black s
source rock f
to 200 m of
ent in the Jur
anic-rich Mik
world-class s
e subthrust o
e prospectiv

VI
Shales. Non
rous age a
acosia Shale
sidered goo
gets in their
ve shale de
alia recently
s shales in s
ur main str
exist in Po
es include:
rschiefer S
tight sands
efer Shale is
r areas of P
c marine co
ally importan
ons in this s
the Poland
Shales. Nu
Foredeep B
thermally i
shale, with 4
for conventio
f organic-ric
rassic (Bath
kulov marls
source rocks
of the Polish
ve for shale d
EIA/ARI W
II-7
n-marine, la
re widely p
es, are asso
d source ro
r own right,
evelopment.
have produ
outhwest Po
ratigraphic t
land but we
hale. Strat
stone and
s present in
oland. The
onditions, ty
nt metal sulf
shale may in
d shale op
umerous you
Basin of sou
mmature.
6

4-8% TOC (m
onal oil and
h sandy mu
onian-Aalen
, about 140
s in the near
h Carpathian
developmen
World Shale Ga
acustrine-de
present in P
ociated with
ocks for natu
these coal-
However,
uced shale
olands Fore
targets that
ere exclude
tigraphically
the U. Pe
n the Fore-S
Kupferschie
ypically con
fides (pyrite
nterfere with
perators ha
unger, organ
utheast Pola
For examp
mainly Type
gas fields in
udstone and
nia) foreland
00-m thick w
rby Vienna B
ns but appea
nt.
s and Shale Oil
posited carb
Poland.
4
Th
economical
ural gas, as
shale packa
comparable
gas. San
e-Sudetic Mo
were asse
ed from this
y positioned
ermian Zec
Sudetic Mono
efer is a blac
ntaining 7%
, spalerite, g
fracture stim
ave reporte
nically rich b
and, but the
ple, the Oli
e II kerogen)
n the Carpat
d claystone w
platform. F
with 0.2% to
Basin.
7
The
ars too deep
Resource Asses

bonaceous s
hese organic
lly important
well as coa
ages may n
e deposits i
Leon Ener
onocline.
essed, addit
s study. T
between th
hstein evap
ocline and L
ck shale tha
to 16% T
galena) that
mulation and
ed targeting
black shales
ese generally
igocene to
), is conside
thian fold be
with average
Finally, the U
o 10% TOC
e Mikulov ma
p and struct
ssment
shale
c-rich
t coal
albed
ot be
n the
rgy is
tional
These
he L.
porite
Lublin
t was
TOC.
5

t also
d gas
g the
s also
y are
early
red a
elt. In
e 4%
Upper
C, are
ay be
urally
VIII. Poland

June, 2013

PGI AND
In
collabora
released
oil resou
PGI stud
and colle
gas logs,
measure
P
Podlasie
1.956 bil
estimate
PGIs est
T
current e
Tables V
while PG
gas drilli
research
differenc
M
a
s
th
s
E
m
E
p
A

D USGS A
n 2012 the
ated on a pr
separate in
rces within L
dy drew heav
eagues at P
, core, and s
d from shale
PGI estimate
-Lublin regio
lion barrels
was about
timate.
10

The PGI and
estimate of
VIII-1 and VI
GI and USGS
ng and gas
ers followe
es among th
Methodology
ssessing sh
hale produc
here are no
hale plays a
EURs on the
methodology
EIA/ARI follo
lace and th
American sha
SSESSME
Polish Geol
reliminary sh
dependent a
Lower Paleo
vily on earlie
GI.
8
Both th
seismic data
e industry ex
ed technica
on to be 230
of oil (their
1.345 Tcf
d USGS re
146 Tcf and
II-2. Part o
S both exclu
s production
d a differe
he PGI, USG
y. PGI and
hale gas an
ction data ar
empirical sh
as analogs f
e lower end
for its Polan
wed a diffe
hen estimatin
ale plays.
VI
NTS OF PO
ogical Instit
hale gas and
assessment
ozoic format
er detailed s
he PGI and
a collected d
xploration pr
ally recovera
0.5 to 619.4
higher prob
and 0.168
esource esti
d 1.8 billion
f the differe
ded the For
are underw
nt methodo
GS, and EIA/
d the USGS
d shale oil
re analyzed
hale producti
for Poland,
d of 26 sha
nd assessme
rent (volume
ng likely rec
EIA/ARI W
II-8
OLAND SH
ute (PGI) a
d shale oil a
s of the tech
tions in the B
shale mappi
USGS stud
uring the 19
rograms in P
able shale
4 billion m
3
(
bability range
billion barre
mates both
barrels for
nce arises b
re-Sudetic M
way. But m
ology and u
/ARI studies
S followed th
resources i
to estimate
ion data. PG
instead sele
ale gas play
ent has not b
etric) approa
covery facto
World Shale Ga
HALE GAS
nd the U.S.
assessment
hnically reco
Baltic, Podla
ing and ana
dies were ba
970-80s. Ne
Poland.
gas resour
(8 to 22 Tcf)
e estimate)
els (mean e
are consid
Paleozoic s
because PG
Monocline, tw
most of the
used differe
s are as follo
he methodo
in the Unite
per-well rec
GI considere
ecting for its
ys evaluated
been publish
ach: calcula
ors based o
s and Shale Oil
S RESOURC
. Geological
t of Poland.
overable sha
asie, and Lu
alysis conduc
ased on con
either study
rces in the
), with an ad
.
9
The corre
stimate), or
derably less
shale gas a
GI excluded
wo large reg
difference is
ent assumpt
ows:
ology used b
ed States, w
coveries.
11

ed but reject
s mean esti
d by the US
hed but appe
ating the pro
on multiple
Resource Asses

CES
l Survey (US
PGI and U
ale gas and s
ublin basins.
cted by Pop
nventional oi
cited recent
onshore B
dditional 1.5
esponding U
r roughly 10
s than EIA/A
nd oil in Po
the Lublin B
ions where s
s because t
tions. The
by the USG
wherein emp
In Polands
ted individua
imate a ran
GS. The U
ears similar.
ospective ga
analogous N
ssment
SGS)
USGS
shale
The
prawa
il and
t data
Baltic-
569 to
USGS
0% of
ARIs
oland,
Basin,
shale
these
e key
GS for
pirical
case
al US
ge of
USGS
.
as in-
North
VIII. Poland

June, 2013

P
b
P
3
fo
of
H
s
m
w
n
U
2
w
re
th
H
co
b
b
p
in
fo
T
e
re
B
is
p
s
B
L
o
re
U
cu
in

Per-Well Rec
e lower tha
Poland, the U
4,000 bbl/w
or Poland on
f 0.04 Bcf/w
However, imp
hale plays in
much better t
wells have no
ew developm
Using produc
011 USGS
within their m
ecovery on t
he Marcellus
However, M
ompletion te
etween 5 an
y 10 large M
lay, has rise
n per-well re
or continuou
The EIA/ARI
stimate rec
ecoveries of
Bcf/well. This
s still in the
otential, bas
hale resourc
Basins Asse
ublin Basin
ther compan
ecently drille
USGS Poland
urrent EIA/A
ncludes the F
covery. PG
n those cal
USGS estim
ell on 160-a
n implied 150
ell.
proved techn
n recent yea
than the wel
ot been emp
ment has be
ction data av
Marcellus st
main Interior
the tighter 1
s today.
Marcellus op
echnology h
nd 11 Bcf/w
Marcellus op
en to 7.1 Bcf
ecovery in re
s appraisal o
study does
covery effici
10% to 20%
s has not ye
e early expl
sed in part
ce estimate i
essed. The
was exclude
nies are con
ed the first h
d map indica
ARI assessm
Fore-Sudetic
VI
GI and USGS
culated by
mated avera
acre spacing
0-acre well s
nology has s
ars. For exa
ls initially dr
ployed for M
een entirely b
vailable at th
tudy estimat
Marcellus p
07-acre wel
perators rec
as steadily
well at prese
perators, wh
f/well, Table
ecent years d
of even prov
not explicit
iency. Ass
%, our equiva
et been confi
loration pha
on more cu
is so much l
PGI assess
ed due to lo
ntinuing to ex
horizontal we
ates they as
ment covers
c Monocline
EIA/ARI W
II-9
S estimated
the USGS f
ge shale ga
g. PGI estim
spacing, with
significantly
ample, rece
rilled in this p
Marcellus dev
based on ho
e time, whic
ted a mean
play.
12
This
l spacing (6
cently are
boosted the
nt. Indeed,
hich accoun
VIII-4.
13
Ot
due to impro
ven shale pla
ly estimate
suming 80-
alent per-we
irmed by we
ase. Our a
rrent US da
arger than th
ment is limit
w TOC. Ho
xplore for sh
ell there and
ssessed the
s the Baltic
, where sha
World Shale Ga
that per-we
for many sh
as and oil E
mated an av
h maximum
increased p
nt Marcellus
play during 2
velopment s
orizontal wel
ch included m
1.15 Bcf ga
equates to
wells per m
reporting t
eir average
the averag
nt for most o
her US shal
oved techno
ays.
per-well rec
-acre spaci
ell recoveries
ell testing in P
assumption
ata, is a ma
he PGI and
ted to the Ba
owever, PGN
hale gas in t
d is preparin
Baltic, Podla
, Podlasie,
le gas leasin
s and Shale Oil
ll recoveries
hale plays i
EURs of 0.2
verage 0.4 B
of 1.0 Bcf/w
per-well reco
s Shale well
2007-10. In
since about 2
ls.
many early v
as recovery
approximat
mi
2
) that is co
that improv
horizontal w
e per-well re
of the gas p
e plays have
ology, under
covery for Po
ng and rel
s in Poland r
Poland but t
of higher p
ajor reason w
USGS estim
altic and Pod
NiG, Chevro
the Lublin B
ng to fracture
asie, and Lu
and Lublin
ng and drillin
Resource Asses

s in Poland w
n the USA.
245 Bcf/wel
Bcf/well reco
well and mini
overy in mos
ls are perfor
addition, ve
2009, after w
vertical wells
per 149-acre
tely 0.82 Bc
ommonly us
ved drilling
well recoveri
ecovery rep
production in
e seen incre
rscoring the
oland, but w
latively low
range from 1
the industry
per-well reco
why the EIA
mates.
dlasie basins
on, Marathon
asin. PKN O
e stimulate.
ublin basins.
basins but
ng are under
ssment
would
For
l and
overy
imum
st US
rming
ertical
which
s, the
e cell
cf/well
sed in
and
es to
ported
n this
eases
need
we do
w gas
1 to 4
there
overy
A/ARI
s; the
n and
Orlen
The
The
also
rway.
VIII. Poland

June, 2013

T
T
s
e
to
a
p
In
includes
recent sh
considera

Ra
Con
Chev
Ta
U
A
C
Ch
Sout
Na
Ope
M
USGS
Equiv
PG
Shal
USG
Shal

Table VIII-4 : C
TOC. PGI s
ignificant sh
valuation pr
o 50-year-old
nd publishe
ortions of th
n summary,
two addition
hale industry
ably less tha
Source
Chesapeake
angeResources
Shell
Statoil
ExxonMobil
EQTCorp.
sol/NobleEnergy
vronAtlasRelianc
alismanEnergy
ltraPetroleum
AnadarkoCorp.
abotOil&Gas
hevronChiefOil
BGExcoJV
thwesternEnergy
ationalFuelGas
eratorMarcellus
MeanorTotal
InteriorMarcell
v107AcMeanE
GIPolandMean
leGas150AcEst
GSPolandMean
leGas160AcEst
Comparison of
screened ou
ale layers th
ocess was
d core and lo
ed source ro
e deep Lubl
the EIA/ARI
nal shale pla
y data, and
an) actual M

Bcf/well
5.2
8.5
7.3
y 5.9
ce
5.0
6.0
8.0
11.0
y 8.0
6.0
7.1
us
Est 0.82
t 0.40
t 0.25
MeanEstim
RecoveryBcf
VII
f Marcellus an
ut the Lublin
hicker than 1
not easy an
og data. EIA
ock studies,
in Basin still
I shale gas/o
ays (Podlas
assumes hi
arcellus Sha
Source
Chesapeake
Range
EQT
Consol
Talisman
Ultra
Anadarko
Cabot
Southwestern
NFG
Operators
USGS
PGI
USGS
matedUltimate
f/107acreWell
EIA/ARI W
I-10
nd Poland Sha

n Basin bec
15 m with TO
nd straightfo
A/ARI, relyin
developed
l may have p
oil resource
sie and Fore
gher recove
ale well perfo
CurrentNet
Production
Millionft
3
/d
800
600
295
451
800
280
158
450
194
330
930
140
300
194
5,922
0
0
World Shale Ga
ale Gas Per-W
cause their
OC above 2
orward due
ng on more r
a more op
prospective
estimate fo
e-Sudetic Mo
ery factors m
ormance.
Tcf Sour
39.0 Chesap
30.0 Rang
24.1 ARIe
18.9 Stat
17.6 ARIe
15.0 EQT
14.8 Nob
13.0 Atla
8.0 Talism
7.4 Ultr
6.0 Anada
5.3 ARIe
5.0 Chevr
4.8 Exc
4.7 ARIe
4.1 ARIe
218
81.4
8to22
1.3
ProvedReserv
+RiskedResour
s and Shale Oil
Well Recovery
log analysis
%. Howeve
to the poor
recent shale
ptimistic view
shale target
or Poland is
onocline), in
more consist
Report
rce Date
peake 2/21/2013
ge 3/4/2013
est 5/28/2010
oil 2/28/2013
est 8/23/2012
QT 2/5/2013
ble 2/7/2013
as 5/6/2010
man 2/13/2013
ra 3/4/2013
arko 2/20/2013
est 2/28/2013
ron 5/4/2011
co 5/10/2010
est 3/1/2013
est 2/7/2013
11/23/2011
3/1/2012
7/1/2012
ves
rces
Resource Asses

Estimates
s did not ide
er, they note
quality of th
e exploration
w that shal
ts.
larger becau
ncorporates
tent with (bu
Location
inplay
PA&WV
NEPA
PA&WV
PA&WV
PA&WV
PA&WV
PA&WV
SWPA
NEPA
NEPA
NEPA
NEPA
SWPA
CentralPA
NEPA
CentralPA
PA&WV
PA&WV
BalticPodlasie
BalticPodlasie
ssment

entify
ed the
e 40-
n data
lower
use it
more
ut still
VIII. Poland

June, 2013

1. B
1.1 In
T
Europe),
Mesozoic
gas and
unconfor
basin ext
F
principal
window.
Faulting
dip gentl
appear to
most like
rapid dep
T
Paleozoi
boundary
a deform
extends t

BALTIC BA
ntroduction
The 16,200-m
relatively
c deposits, i
oil develop
rmities relate
tends into Li
igure VIII-2
targets for e
The basin
does occur
y in this bas
o be intact a
ely related to
position duri
The Baltic B
c post-rift d
y is defined
med fault zon
to the north
ASIN
n and Geo
mi
2
Baltic Ba
tectonically
ncluding Low
ment.
14
The
ed to Caled
thuania and
illustrates t
exploration i
s structure
but it is mo
sin, Figure V
and free of
o uplift durin
ng the late P
Basin forme
downwarpin
by the north
ne, while the
into the Balt
VII
logic Setti
asin in north
quiescent
wer Paleozo
ese mostly
onian, Varis
d the Kalining
the depth to
in the Baltic
is much sim
re widely sp
VIII-3. Detaile
faulting in p
ng the Devo
Paleozoic an
ed as a res
g of the E
hwest-southe
Mazury-Be
tic Sea.
EIA/ARI W
I-11
ng
ern Poland,
area that
oic organic-r
marine-depo
scan, and A
grad Oblast.
o the Lower
Basin, high
mpler than m
paced and le
ed seismic s
places, Figur
onian (Caled
nd Mesozoic
sult of late
East Europe
east trendin
larus High d
World Shale Ga
Lithuania a
contains a
rich shales t
osited shale
Alpine tecton
.
r Silurian Ll
hlighting the
most other a
ess severe.
sections iden
re VIII-4. F
donian Orog
c.
Precambria
ean Platform
g Trans-Eur
defines the e
s and Shale Oil
and Kalining
sequence
hat are pros
es are separ
nics. A sma
andovery S
1 to 5 km p
areas in Pola
In addition
ntify fairly br
Faulting in th
geny), couple
an rifting fo
m. The ba
ropean Sutu
eastern boun
Resource Asses

grad is a rare
of Paleozo
spective for s
rated by reg
all portion o
Shale, one o
prospective d
and and Eu
, the shale s
road areas w
he Baltic Bas
ed with rela
ollowed by
asins south
ure Zone (TE
ndary. The
ssment
e (for
oic to
shale
gional
of the
of the
depth
rope.
strata
which
sin is
atively
early
hwest
ESZ),
basin
VIII. Poland

June, 2013

Figure VII
Source: Mo

Figure VIII
Source: M
I-3: Structural
odified from San
-2: Baltic Bas
Modified from Po
l Cross-Sectio
Leon Energy, 2
VII
in Map Showi
olish Geological
on in North Po
Widely
012
EIA/ARI W
I-12
ng Depth To L
Institute, 2012

oland Baltic Ba
y Spaced Fault

World Shale Ga
Lower Silurian
asin Showing
ts.
s and Shale Oil
n Llandovery
g Relatively Sim
Resource Asses

Shale.
mple Structur
ssment
re and

VIII. Poland

June, 2013

Source: LNG

O
in TOC, t
for shale
the Lowe
conventio
thick, wit
form a p
contain m
C
Z
a
O
ra
a
o
S
so

Fig
G Energy Ltd.
Organic-rich
thermally ma
developme
er Silurian, O
onal well, n
th good corr
package of
marine (type
Cambrian.
Zarnowiec an
lluvial fan de
Ordovician.
anging from
re predomin
verlying Upp
Silurian. Th
outhwest ne
gure VIII-4: De
Sho
shales of Pa
ature in the
nt. Figure V
Ordovician,
orthern Balt
relation of ga
quite thick,
II/III) keroge
Up to 700 m
nd other Upp
eposits to sh
Deposited
80 to 200 m
nately marly
per and Midd
he overlying
ear the TESZ
VII
etailed Seismi
owing Simple
aleozoic age
gas to oil w
VIII-5 exhibits
and Cambr
tic Basin, sh
amma ray lo
laterally ex
en. The ma
m of Cambr
per Vendian
hallow marin
under deep
m. The Lowe
y limestone
dle Caradoc
g Silurian s
Z, but more
EIA/ARI W
I-13

c Section in N
Structure and
e within the
windows, and
s organic-ric
rian strata.
hows severa
og and core
tensive, dar
in shale targ
rian sandsto
units. Thes
e terrigenou
water mari
er Ordovicia
e interbedde
c Formation c
equence is
typically 1
World Shale Ga
North Poland B
d FewFaults.
Baltic Basin
d among the
ch shales tha
TOC distrib
al high TOC
data. Thes
rk grey to b
gets in the B
one and sha
se represent
us sedimenta
ne condition
an Arenig an
ed with clay
consists of g
extremely
km thick in
s and Shale Oil
Baltic Basin
n are relative
e most prosp
at are typica
bution in the
C zones tota
se Lower Pa
black organi
Baltic Basin i
ale is prese
t a transition
ary environm
ns, the Ordo
nd Lower Ca
ystone and
graptolite-ric
thick at up
the shale e
Resource Asses

ely flat lying,
pective in Eu
ally present w
e Zarnowiec
aling about
aleozoic dep
ic-rich rocks
nclude:
ent, including
n from contin
ments.
ovician is thi
aradoc forma
siltstone.
ch black shal
to 3 km in
exploration a
ssment
, high
urope
within
IG-1
75 m
posits
s that
g the
nental
inner,
ations
The
le.
n the
areas.
VIII. Poland

June, 2013

T
S
b
T
halite (sa
younger
overlying
gravel. A
Cretaceo
Mesozoic
depths o
Figure V
Shows Se
Source: Po

The Silurian
Silurian Wen
lack organic
The Ordovici
alt) of the P
overlying s
g Mesozoic s
Additional p
ous in the B
c shales loc
f 1.5 to 3.2 k
VIII-5: TOC Di
everal High TO
oprawy, 2010
shale is lo
nlock and th
c shale that c
an and Silu
Permian Zec
section from
sandstones
potential sou
Baltic Basin
ally have TO
km.
15

stribution in L
OC Zones Tot

VII
cally interbe
hin Lower S
commonly ex
rian shales
chstein Form
m the Paleoz
and claysto
urce rock sh
but were n
OC >1.5% b
L. Paleozoic, Z
taling About 7
C
EIA/ARI W
I-14
edded with
ilurian Lland
xhibits stron
are overlain
mation, a we
zoic strata.
one is cappe
hales are pr
not assesse
ut are therm
Zarnowiec IG-
75 mThick. No
Core Data.
World Shale Ga
dolomitic lim
dovery form
ng gas show
n by more t
eak zone th
Finally a
ed by a thin
resent in the
ed due to lo
mally immatu
1 Convention
ote Good Cor
s and Shale Oil
mestone. T
mations cont
ws in explorat
han 200 m
hat frequent
1,200-m th
veneer of T
e Upper Jur
ow thermal
ure (R
o
0.5%
al Well, North
rrelation of Ga
Resource Asses

The thick m
tain dark gr
tion wells.
of anhydrite
ly decouple
hick sequenc
Tertiary sand
rassic and L
maturity. T
% to 0.7%) a
ern Baltic Bas
amma Ray Log
ssment
middle
ey to
e and
s the
ce of
d and
Lower
These
t well
sin,
g and
VIII. Poland

June, 2013

1.2 R
T
totals fro
estimated
TOC ave
relatively
content (
T
depth in
ranges fr
the oil w
slightly o
appear lo
Sour

Reservoir P
The combine
om 1,000 to
d to averag
erages abou
y high (40-8
(33-44%) ha
Thermal mat
the basin a
rom 8,200 ft
indow. Poro
over-pressure
ow in most o
Figure VIII-6:
rce: Krzemiski
Properties
ed Lower S
3,500 feet t
ge 820 ft th
t 3.9%. Sili
0%), Figure
s been repo
urity ranges
as illustrated
t in the oil w
osity is estim
ed with an e
of the basin.
Silica Conten
is Relatively H
ego & Poprawy,

VII
(Prospecti
ilurian, Ordo
hick. The o
ick, of whic
ca content f
e VIII-6, indi
orted from tw
s from oil- to
d in the Gd
window, to 1
mated at 4%
estimated 0.5
nt in the Lowe
High (40-80%)
, 2006 in Popraw
EIA/ARI W
I-15
ive Area)
ovician, and
organic-rich s
ch approxima
from two old
icating brittl
wo of BNKs
o gas-prone
ansk IG-1 w
0,000 ft in t
% based on
50 psi/ft grad
r Paleozoic Fr
), Indicating B
wy, 2010
World Shale Ga
d Cambrian
shale interva
ately 55% i
der western
e rock cond
recent shale
e, Figure VI
well, Figure
he wet gas
recent explo
dient. Gas
romTwo Wes
rittle Rock Co
s and Shale Oil
section in
al for the Lo
is considere
Baltic Basin
ditions. How
e exploration
II-7, increas
VIII-8. The
window are
oration resu
impurities su
stern Baltic Ba
onditions.
Resource Asses

the Baltic B
ower Paleoz
ed net thick
n wells meas
wever, high
n wells.
sing steadily
e average d
ea, to 12,500
lts. The ba
uch as CO
2
asin Wells
ssment
Basin
oic is
ness.
sured
h clay
y with
depth
0 ft in
sin is
or N
2

VIII. Poland

June, 2013

Figure VI
Sour

II-7: Baltic Ba
rce: Contours m
Figure VIII-
Central Ba
sin Map Show
modified from Sa
8: Thermal Ma
altic Basin, Re
Source: Popra
VII
wing Thermal M
Llandove
an Leon Energy,
aturity Increas
eaching Oil- a
awa, 2010
EIA/ARI W
I-16
Maturity Wind
ery Shale, Pol
2012 and Polish

ses Steadily w
and Then Gas-
World Shale Ga
dows and Pros
land
h Geological Ins
with Depth in t
-Prone Maturit
s and Shale Oil
spective Area
stitute, 2012
the Gdansk IG
ty in the Paleo

Resource Asses

for Lower Sil

G-1 Well
ozoic.
ssment
urian
VIII. Poland

June, 2013

1.3 R
T
Basin an
oil and co
D
Baltic Ba
Ordovicia
Bcf/mi
2
.
risked sh
W
technical
shale co
resource
O
area cov
0.7 billio
risked in-
1.4 E
P
seismic t
targeting
general
Paleozoi
thick ove
acquired
problema
S
in the Ba
recently
these po

Resource A
Total risked,
nd Warsaw T
ondensate.
Dry Gas Win
asin is estim
an, and Ca
Risked, tec
hale gas in-p
Wet Gas Wi
lly recoverab
ndensate fro
es.
Oil Window.
ers about 83
n barrels of
-place shale
Exploration
Poland, and
to guide sh
convention
information
c shales ca
erlying Zech
by shale op
atic faults.
Since 2010 th
altic Basin, in
large oil co
sitions or ac
Assessmen
technically
Trough are e

ndow. The
mated at 5,6
ambrian) ha
chnically rec
place of 412
indow. The
ble resource
om 109 Tcf
The much
30 mi
2
. Risk
f shale oil a
e oil and con
n Activity
in particular
ale explorat
al oil and ga
on thicknes
an be difficu
stein salt.
perators ove
he smaller i
ncluding Lan
mpanies (C
cquired their
VII
nt
recoverable
estimated at
mapped pr
680 mi
2
. L
as a favora
overable sh
Tcf.
e wet gas p
es are estima
and 14 billio
smaller oil
ked technica
and condens
densate res
r the Baltic B
tion. Over
as plays in
ss, depth, T
lt to image
Regional m
r their licens
ndependent
ne Energy, B
ConocoPhillip
own blocks
EIA/ARI W
I-17
shale resou
105 Tcf of s
rospective a
Lower Paleo
ble resourc
ale gas reso
prospective
ated at 22 T
on barrels of
window with
ally recovera
sate and 1.2
ource of 14
Basin, has a
200 petrole
Poland, pen
TOC and the
due to acou
odern 2D a
ses to aid in
t E&P comp
BNK Petroleu
ps, Marathon
. PGNiG is
World Shale Ga
urces in the
shale gas an
area for Pola
ozoic shale
ce concentra
ources are e
area covers
Tcf of shale
f risked, in-p
hin the north
able resource
2 Tcf of ass
billion barre
a large exist
eum explora
netrating sha
ermal matur
ustic interfe
nd localized
siting well lo
anies have
um, San Leo
n, Talisman
active but h
s and Shale Oil
e Poland por
nd 1.2 billion
ands dry ga
(comprising
ation of ap
estimated at
s about 2,0
gas and 0.5
place shale g
hern Baltic B
es are estim
sociated sha
els.
ing data set
tion wells h
ale formatio
rity. Seism
rence cause
d 3D seismi
ocations, pa
pioneering s
on Energy, a
n) have farm
has focused
Resource Asses

rtion of the B
n barrels of s
as window i
g the L. Silu
pproximately
t 82 Tcf, out
70 mi
2
. Ris
5 billion barre
gas and sha
Basin prospe
mated to be a
ale gas, out
t of well logs
have been d
ns and prov
ically, the L
ed by the 2
c data are b
rticularly to a
shale explor
and others.
med into som
mainly outsi
ssment
Baltic
shale
n the
urian,
y 181
t of a
sked,
els of
ale oil
ective
about
t of a
s and
drilled
viding
Lower
200-m
being
avoid
ration
More
me of
ide of
VIII. Poland

June, 2013

the Balti
modest g
which to
programs
A
limited pu
P
lic
d
s
C
th
n
2
C
R
g
re
th
L
L
tr
T
st
in
m
L
C
st
M
w
d
te

c Basin. T
gas flow rat
o position t
s.
A brief summ
ublic geolog
PGNiG, the
censes. La
evelopment
hale gas ex
Cambrian in t
he Ordovicia
earby (Lubo
016.
16

ConocoPhill
Resources P
as rates (90
ecently beca
he north. Th
E-1, in an ar
anes Lebie
reatment, pro
The well was
timulated w
nitial 2.2 MM
making it the
anes Warb
Cambrian sh
tage gel frac
Marathon an
well in the Ba
disappointme
ests to deter
Thus far the
tes. Key ch
the lateral,
mary of opera
ic and reser
national oil
ast year the
with severa
xploration we
two vertical
an and L. S
ocino-2H) a
ips has fa
LC) shale b
0 and 500 M
ame the ope
he company
rea with 3D
en LE-2H w
oduced an a
s re-entered
ith a large
Mcfd, stabiliz
highest prod
blino LE-1H
ale. The w
c, testing 18
nd partner N
altic Basin.
18
ent with the
rmine whethe

VII
e Poland sh
hallenges se
as well as
ator activities
rvoir results
and gas co
e company
al Polish sta
ells to date
wells from d
Silurian. Th
nd targets c
armed into
blocks in the
cfd) from tw
erator of thes
recently spu
seismic cov
well, a vert
average 27
in 2011 and
13-stage fra
zing at abo
duction for a
well enco
ell was re-d
to 90 Mcfd o
Nexen have
8
Marathons
e reservoir q
er to procee
EIA/ARI W
I-18
hale test pro
eem to be
s successfu
s in the Balt
released to d
ompany of P
reported pla
te-owned pa
in the Balt
depths of ab
he company
commercial
three of
western Ba
wo stimulated
se blocks, sh
ud its first Po
erage.
17

tical well s
Mcf from th
d a 1-km lat
ac treatmen
out 500 Mcfd
a shale well
untered ho
drilled with a
on lift assist
acquired ne
s most rece
quality. Curr
ed with hydra
World Shale Ga
ograms hav
locating the
ully impleme
tic Basin is p
date:
Poland, hold
ans to inve
artners. PG
ic Basin, pr
bout 3,000 m
y recently d
production
Lane Ener
altic Basin.
d horizontal
hifting focus
oland shale
stimulated w
e Upper Ord
teral was dr
t. This hor
d on nitroge
in Poland to
le instability
a 500-m late
.
ew seismic a
ent remarks (
rently, Mara
aulic stimula
s and Shale Oil
ve had limit
e best stratig
enting hydr
provided bel
ds 15 shale
est $0.5 billi
GNiG has dr
roducing sha
m, while logg
rilled its firs
in the Balt
rgys (subs
Lane Energ
shale wells
s to the liquid
well, the ve
with a singl
dovician dur
rilled into the
rizontal well
en lift durin
o date.
y while dril
eral and stim
and drilled a
(May 2012)
thon is cond
tion.

Resource Asses

ted success
graphic zon
raulic stimu
ow, includin
e gas explor
ion in shale
rilled at leas
ale gas from
ging gas sho
st horizontal
tic Basin sta
sidiary of 3
gy has tested
. ConocoPh
ds-rich wind
rtical Strzes
le-stage fra
ring a 5-day
e Ordovician
produced a
g a 17-day
ling into th
mulated with
at least one s
on Poland n
ducting injec
ssment
s with
es in
lation
ng the
ration
e gas
t four
m the
ows in
l well
arting
3Legs
d low
hillips
ow in
zewo
acture
y test.
n and
at an
test,
he U.
h a 7-
shale
noted
ctivity
VIII. Poland

June, 2013

T
B
S
2
T
b
B
P
co
to
(t
st
1.5 L
F
billion ba
(Figure V
risked, te
1.6 R
F
estimate
prospect
gas as th

Talisman an
Basin, loggin
Silurian secti
Q-2013, wit
Talismans m
y results we
BNK Petrole
Porosity (3-4
ontent was f
o 135 Bcf/m
total 110 m t
timulation w
Lithuania
or the north
arrels of sha
VIII-9), with
echnically re
Russia (Kal
or the north
a risked 23
ive area (Fig
he risked, tec
nd San Leo
g gas and s
on. San Le
h a planned
most recent r
e've had to d
eum has dril
4%) was low
fairly high (3
i
2
, including
thick). The
as unsucces
eastern exte
ale oil and 4
0.3 billion b
coverable sh
liningrad O
heastern ext
billion barre
gure VIII-9),
chnically rec

VII
on Energy h
some liquids
eon reported
d 1,000+ m l
remarks (Oc
ate. It's a di
led five verti
wer than ex
30-40%). Th
86 Bcf/mi
2

Lebork S-1
ssful due to
ension of the
4 Tcf of ass
barrels of sh
hale resourc
Oblast)
ension of th
els of shale o
with 1.2 bill
coverable sh
EIA/ARI W
I-19
have drilled
s shows thro
d that it may
lateral comp
ctober 2012
ifficult thing.
ical shale we
xpected in o
he company
in the target
well flared g
high stress a
e Baltic Bas
sociated sha
hale oil and
ces.
he Baltic Bas
oil and 20 Tc
ion barrels o
hale resource
World Shale Ga
three vertic
roughout the
y drill its first
pleted with a
2) noted we
19

ells in the B
over-pressur
y estimated t
t Ordovician
gas from sev
and inadequ
sin into Lithu
ale gas in-pl
0.4 Tcf of a
sin into Rus
cf of associa
of shale oil a
es.
s and Shale Oil
cal shale w
e Cambrian,
t horizontal s
a multi-stage
e're not parti
Baltic Basin (
red L. Paleo
total GIP co
n and L. Silu
veral interva
uate pump c
uania, we es
lace in the
associated s
ssias Kalinin
ated shale ga
and 2 Tcf of
Resource Asses

wells in the B
Ordovician
shale well d
e frac. How
icularly enth
($12 million/
ozoic shale;
ncentration
urian shale z
als, but a fra
capacity.
stimate a risk
prospective
shale gas a
ngrad Oblas
as in-place i
associated s
ssment
Baltic
, and
during
wever,
hused
/well).
; clay
of up
zones
acture
ked 6
area
as the
st, we
in the
shale
VIII. Poland

June, 2013

Figure V

VIII-9. Baltic B Basin Map Sho
VII
owing Therma
Shale, Lithu
EIA/ARI W
I-20
al Maturity Win
uania and Kali
World Shale Ga
ndows and Pr
ningrad
s and Shale Oil
rospective Are
Resource Asses

ea for Llandov
ssment
very
VIII. Poland

June, 2013

2. L
2.1 In
T
Basin, w
However
sections
while sha
A
somewha
shale we
planned
F
Lower P
Devonian
basin inc
Holy Cro
S
such as
Source r
the Devo
contains
to the so
2.2 R
T
totals fro
estimated
the Lopie
with TOC

LUBLIN BA
ntroduction
The 5,000-m
with which it
r, the Lublin
showing nu
ale TOC app
Although the
at less prosp
ells have be
to be stimula
igure VIII-1
Paleozoic in
n strata, inc
clude the no
ss faults. C
Several smal
the Ciecier
rocks include
onian Bycha
significant c
utheast into
Reservoir P
The combine
om 330 to 1
d to average
ennik IG-1 w
C of 0.2% to
ASIN
n and Geo
i
2
Lublin Bas
shares gen
n Basins s
umerous clo
pears to be r
Lublin Basi
pective and w
een drilled,
ated soon. P
1 illustrates
the Lublin
cluding close
orthwest-sou
Clearly, the L
l convention
rzyn-Megiew
e Silurian an
awa Format
coal and coa
the Lvov-Vo
Properties
ed Lower Si
,100 feet th
e 415 ft thick
well, Figure
1.4%.
24

VII
logic Setti
sin may be
nerally simil
tructural ge
osely spaced
relatively low
in is experie
was assesse
while the fi
PGNiG, Che
the extent
Basin.
20

ely spaced f
theast trend
ublin Basin
nal natural g
w Field whi
nd Ordovicia
ion are con
albed metha
olhynia Basi
(Prospecti
ilurian, Ordo
ick. The or
k, of which a
VIII-13, sho
EIA/ARI W
I-21
ng
considered
ar shale str
eology is sig
d faults. In
w.
encing early-
ed separate
rst horizont
evron, Marat
of faulting a
Figure VIII-
faults and s
ding Kock, Iz
is structurall
gas fields ha
ch produce
an shales, b
nsidered mo
ane deposits
n of Ukraine
ive Area)
ovician, and
rganic-rich s
about 55% is
owing about
World Shale Ga
the southea
ratigraphy a
gnificantly m
addition, th
-stage shale
ely from the B
tal well was
thon, and ot
and sub-sal
12 shows h
steep dips.
21
zbeca-Zamo
ly more com
ave been dis
s from Dev
but marine li
ore significan
s in Carbonif
e.
23

d Cambrian
shale interva
s considered
t 150 m of g
s and Shale Oil
astern exten
and lithology
more compl
he basin is
e gas explor
Baltic Basin.
s drilled in l
her compan
lt tectonic d
hydrological
Major fau
osc, Ursynow
mplex than th
scovered in
vonian carbo
imestones a
nt.
22
The L
ferous strata
section in
al for the Lo
d net pay. A
gas-bearing
Resource Asses

sion of the B
y, Figure VI
ex, with se
mostly too
ration, it app
. Several ve
ate 2012 a
ies are activ
decoupling o
l flow within
lt systems i
w-Kazimierz
he Baltic Bas
the Lublin B
onate reserv
and clayston
Lublin Basin
a, which con
the Lublin B
ower Paleoz
good exam
Paleozoic s
ssment
Baltic
II-10.
eismic
deep
pears
ertical
nd is
ve.
of the
n the
n the
z, and
sin.
Basin,
voirs.
nes of
also
ntinue
Basin
oic is
ple is
shale
VIII. Poland

June, 2013

Figu
Source: Mo

Figure VII
Source: Zyw

ure VIII-10: Lub
odified from Polis
I-11: Seismic
wiecki and Lewi
blin and Podla
sh Geological In
Section in Lu
as Well as
s, 2011
VII
asie Basin Ma
stitute, 2012
blin Basin Sho
s Poor Image Q
EIA/ARI W
I-22
p Showing De

owing Relativ
Quality in Dee
World Shale Ga
epth to Lower
vely Complex
ep Lower Pale
s and Shale Oil
r Silurian Lland
Structure and
ozoic.
Resource Asses

dovery Shale.

d Numerous F
ssment
.
Faults,
VIII. Poland

June, 2013

Figu
Source:
Figure
w
Source
ure VIII-12: Hy
Zawisza, 2006
VIII-13: Well L
with TOC of 0
e: Zywiecki and
VII
drological Cro

Log Showing A
.2 to 1.4%in t
Lewis, 2011
EIA/ARI W
I-23
oss-Section in

Approximately
he Lopiennik

World Shale Ga
n the Lublin B
y 150 mof Ga
IG-1 Well, Lub
s and Shale Oil
Basin, Poland.
as-Bearing Sh
blin Basin
Resource Asses

ale

ssment
VIII. Poland

June, 2013

H
averagin
window t
VIII-14.
5%. The
above th
2.3 R
T
thermal m
has a m
recovera
Fi

However, TO
g about 3%
to overmatur
Depth to th
e pressure
e hydrostatic
Resource A
The 2,390-mi
maturity win
moderate re
ble shale ga
igure VIII-14: T
in the Pol
Source: Po
OC often is
in the Lublin
re, increasin
e shale ave
gradient in
c gradient.
25
Assessmen
i
2
prospectiv
ndow. The
esource con
as is estimat
Thermal Matur
lik IG-1 Well, L
oprawy, 2010
VII
s higher in
n Basin. Th
ng steadily w
erages appro
the Devonia
5
Gas impur
nt
ve area map
Lower Paleo
centration o
ted at 9 Tcf,
rity In The Pal
Lublin Basin, R
EIA/ARI W
I-24
core analy
he thermal m
with depth as
oximately 11
an section i
rities such as
pped in the L
ozoic shale
of approxim
out of risked
leozoic Increa
Reaching Gas

World Shale Ga
yses than c
maturity of th
s illustrated
1,000 ft. Po
is slightly ov
s CO
2
or N
2
Lublin Basin
(L. Silurian,
mately 91 B
d, shale gas
ases Abruptly
s-Prone and T
s and Shale Oil
calculated f
he Paleozoic
in the Polik
orosity is es
ver-pressure
appear to b
is entirely w
, Ordovician
Bcf/mi
2
. Ris
s in-place of
Belowthe Un
Then Over-Mat
Resource Asses

from older
c is in the dry
IG-1 well, F
stimated at a
ed, about 2
e negligible.
within the dry
n, and Camb
sked, techn
46 Tcf.
nconformity
turity.

ssment
logs,
y gas
Figure
about
-10%
.
y gas
brian)
nically
VIII. Poland

June, 2013

2.4 E
P
shale ga
Krlews
using a 2
targets L
In
Poland.
one well
efforts in
In
Podlasie
km
2
(incl
the first h
In
totaling 4
a 12-mon
exploratio
Frampol
M
acquired
Lublin B
license d
mixed r

Exploration
PGNiG, Exxo
as exploratio
ka well in th
2000-HP Dri
Lower Paleoz
n 2009 Exxo
The compan
in each ba
mid-2012 a
n late 2012
Basin) to P
uding the tw
horizontal we
n 2009 Che
4,433 km
2
in
nth 2-D seis
on drilling c
licenses dur
Marathon Oil
seismic da
asin and dr
during 2010.
results.
n Activity
onMobil, Ch
on in the Lub
he Tomaszw
illmec 2000
zoic shales a
onMobil lea
ny drilled tw
asin. Howe
after failing to
ExxonMobil
PKN Orlen.
wo former Ex
ell in the Lub
evron acqui
the Lublin B
smic acquisi
campaign.
ring Q1 2012
also holds s
ta but has n
rilled the ve
. The well w

VII
hevron, Mar
blin basin.
w Lubelski l
Walking Rig
at depths of
ased six lice
o vertical sh
ever, Exxon
o demonstra
sold two of
PKN Orlen
xxonMobil b
blin Basin, w
red and cu
Basin of sou
ition program
The compa
2; results ha
shale explor
not reported
ertical Marko
was fracture
EIA/ARI W
I-25
rathon and
In March 20
icense. The
g, currently P
2,300 to 4,3
enses in the
hale gas test
Mobil termin
ate sustaine
f the license
n holds 10 s
blocks). In l
which it plans
rrently oper
theast Polan
m across th
any complete
ave not been
ration blocks
d testing res
owola-1 sh
e stimulated
World Shale Ga
other comp
012 PGNiG
e vertical we
Polands mo
300 m.
26

e Lublin and
t wells (Krup
nated its Po
ed commerci
es (Wodynie
shale gas lic
ate October
s to hydrauli
rates four s
nd. In Octob
e four licens
ed its first w
n disclosed.
s in the Lub
sults. PGNiG
ale well in
by Hallibur
s and Shale Oil
panies have
G began drill
ell is planned
ost advance
d Podlasie b
pe 1 and Sie
oland shale
ial hydrocarb
e-Lukow and
censes tota
r 2012, PKN
cally stimula
hale gas ex
ber 2011 Ch
ses to help
wells in the
lin Basin. T
G also hold
the in the
rton and rep
Resource Asses

e been purs
ing the Lub
d for 4,300-m
d drilling rig
basins of ea
nnica 1), loc
e gas explor
bon flow rate
d Wolomin i
ling nearly 9
N reported d
ate.
xploration b
hevron comp
plan a mult
e Grabowiec
The company
s licenses i
Pionki-Kazim
portedly ach
ssment
suing
bycza
m TD
, and
astern
cating
ration
es.
27

n the
9,000
rilling
blocks
pleted
ti-well
c and
y has
n the
mierz
ieved
VIII. Poland

June, 2013

3. P
3.1 In
L
southeas
stratigrap
the Baltic
key olde
IG 1 bor
shale de
have not
3.2 R
T
average
thermal m
basin, to
to 12,500
estimated
of the ba
3.3 R
D
Podlasie
Cambria
recovera
W
Risked te
billion ba
barrels, r

PODLASIE
ntroduction
ike the Lubl
stern extens
phy and litho
c Basin, it is
r convention
rehole (TD 2
eposits.
28
O
ed that fresh
Reservoir P
The combine
540 ft thick
maturity of t
wet gas an
0 ft. Porosi
d 0.50 psi/ft
sin.
Resource A
Dry Gas Win
Basin is es
n) has a m
ble shale ga
Wet Gas Wi
echnically re
arrels of sha
respectively.
BASIN
n and Geo
in Basin, th
sion of the
ology. How
less comple
nal explorati
2388 m) wh
Organic matt
h shale core
Properties
ed organic-r
k, of which a
he Lower Pa
d eventually
ty is estima
t gradient. G
Assessmen
ndow. The
stimated at
moderate re
as is estimat
indow. The
ecoverable
le condensa
.

VII
logic Setti
e 6,600-mi
2
Baltic Bas
wever, where
ex than the L
on wells hav
ich penetrat
er measure
samples yie
(Prospecti
rich shale in
about 55% i
aleozoic sha
y oil at shallo
ated at abou
Gas impuritie
nt
e mapped p
860 mi
2
. L
esource co
ted at 5 Tcf,
e wet gas w
shale resou
ate from risk
EIA/ARI W
I-26
ng
Podlasie D
sin, with wh
eas the Pod
Lublin Basin
ve been dril
ted organic-
ments in old
eld higher va
ive Area)
nterval withi
is considere
ale ranges fr
ower levels.
ut 5%. The
es such as C
prospective
Lower Paleo
ncentration
out of risked
window is p
urces are es
ked, in-place
World Shale Ga
Depression (
hich it sha
dlasie is stru
n and thus is
lled in the b
-rich Silurian
der core we
alues.
n the Lowe
ed net. TOC
rom dry gas
Depth to sh
basin is slig
CO
2
or N
2
a
area within
ozoic shale (
of 122 Bc
d shale gas
rospective w
stimated at
e resources o
s and Shale Oil
Basin) may
ares genera
ucturally mo
s separately
asin, includi
n, Ordovician
ere low, but
er Paleozoic
C averages
s in the deep
hale averag
ghtly over-p
appear to be
the dry ga
(L. Silurian,
cf/mi
2
. Ris
in-place of a
within an ar
4 Tcf of sh
of 22 Tcf an
Resource Asses

be conside
lly similar s
ore complex
assessed.
ing the Wys
n, and Cam
t some oper
c is estimate
about 3%.
per portion o
es about 7,5
ressured wi
e minimal in
as window o
Ordovician
sked, techn
about 25 Tcf
rea of 1,100
hale gas and
nd nearly 3 b
ssment
red a
shale
than
Eight
szkw
mbrian
rators
ed to
The
of the
500 ft
th an
most
of the
, and
nically
f.
0 mi
2
.
d 0.2
billion
VIII. Poland

June, 2013

O
within an
estimated
shale gas
3.4 E
S
Marathon

Oil Window.
n area of app
d at 0.4 bill
s, from an in
Exploration
Several oper
n drilled one
. The oil w
proximately
ion barrels
n-place riske
n Activity
rators hold
e vertical sha

VII
window, map
1,000 mi
2
.
of shale oil
ed shale oil r
shale gas
ale exploratio
EIA/ARI W
I-27
pped in the
Risked, tech
and conde
resource of n
exploration
on well in the
World Shale Ga
eastern Po
hnically reco
ensate along
nearly 9 billio
licenses in
e basin but h
s and Shale Oil
odlasie Basi
overable sha
g with 0.7 T
on barrels.
n the Podla
has not relea
Resource Asses

n, is prospe
ale resource
Tcf of assoc
asie Depres
ased results
ssment
ective
es are
ciated
ssion.
s.
VIII. Poland

June, 2013

4. F
4.1 In
U
being pu
marine-d
overlying
exploratio
PGNiG)
T
the Mid-P
of about
gas prod
southwes
although
poor qua
recently a
Figu

FORE-SUDE
ntroduction
Unconvention
rsued in the
deposited Lo
g Carbonifer
on is less a
have reporte
The nearly 20
Polish Troug
2 to 5 km.
2
duction in th
st-northeast
additional f
ality seismic
acquired fou
ure VIII-15: For
Source:
ETIC MON
n and Geo
nal gas plays
e Fore-Sudet
ower Paleoz
rous non-ma
ctive here th
ed leasing a
0,000-mi
2
Fo
gh, where P
9
The Lowe
is province
cross-secti
faults are like
available in
ur 3D seismi
re-Sudetic Mo
ARI, 2013.
VII
OCLINE
logic Setti
s, mainly tig
tic Monoclin
zoic shales
arine shales
han in the B
nd drilling.
ore-Sudetic
Paleozoic an
er Permian
for several
on, indicate
ely to be pre
this region m
c surveys to
onocline of So
EIA/ARI W
I-28
ng
ht sandston
e of southwe
are too dee
s may be p
Baltic Basin,
Monocline i
nd younger s
Rotliegend s
decades, Fi
es that the
esent. Indee
masks the tr
otaling 650 k
uthwestern P

World Shale Ga
e but potent
estern Polan
ep to be pro
resent at de
but at least
is considere
strata shoal
sandstone h
igure VIII-16
structural g
ed, San Leo
rue geologic
km
2
and over
oland, Showin
s and Shale Oil
tially includin
nd, Figure V
ospective in
epths of 2
t two compa
ed a souther
to shale-pro
has been de
6. Figure V
geology is r
on Energy ha
c structure, th
r 1,000 km o
ng Shale Pros
Resource Asses

ng shale gas
VIII-15. Whil
n this region
to 5 km. S
anies (San L
rn continuati
ospective de
eveloped for
VIII-17, a reg
relatively sim
as noted tha
hus the com
of 2D seismi
spective Area.

ssment
s, are
le the
n, the
Shale
Leon,
on of
epths
r tight
gional
mple,
at the
mpany
c.
.
VIII. Poland

June, 2013

Figure V

Figure V
Sh
Source: San

VIII-16: Stratig
S
VIII-17: Structu
howing Relativ
n Leon Energy, N
graphy of the C
Source: San Le
ural Cross-Sec
vely Simple S
November 2012
VII
Carboniferous
eon Energy, 2012
ction In The F
Structure And W

EIA/ARI W
I-29
s and Younge
2
Fore-Sudetic M
Widely Space
World Shale Ga
r Formations
Monocline Of S
ed Faults (vert
s and Shale Oil
in the Fore-Su

Southwest Po
tical exaggera
Resource Asses

udetic Monoc
oland Baltic Ba
ation =10x).
ssment
line.
asin
VIII. Poland

June, 2013

A
targets o
underlies
averages
the Carb
the Coop
Energy,
scant dat
S
the Pre-S
that the
setting a
Paleozoi
Carbonife
assessed
4.2 R
S
contains
contains
interval t
12,000 ft
Significa
composit
4.3 R
T
Monoclin
The Ca
approxim
of risked

A thick non-
of tight sand
s the Rotlieg
s about 80%
oniferous ap
per Basin of
FX Energy,
ta have bee
San Leon En
Sudetic Mon
organic-rich
and are ass
c marine-de
erous in thi
d.
Reservoir P
San Leon E
1% to 5% T
20% to 60%
to be 330 ft
t, ranging fro
nt levels o
tion of produ
Resource A
The large but
ne based on
arboniferous
mately 67 Bc
shale gas in
-marine, co
dstone, deep
gend sandst
% methane a
ppears broad
Australia, w
PGNiG and
n released.
nergy disclos
nocline, whic
h shales in
sociated wit
eposited roc
is region, b
Properties
nergy estim
TOC, is in t
% silica with
t thick, with
om 8,000 to
of nitrogen
uced gas fro
Assessmen
t poorly cons
n depth appe
shale is
f/mi
2
. Riske
n-place of 10

VII
al-bearing C
p coal seam
one and sou
nd 20% carb
dly similar to
where initial
d other comp
sed that it is
ch reportedl
the Pre-Su
th coal dep
cks, similar
but are likely
(Prospecti
mates the C
he dry gas t
2% to 8% t
h about half
16,000 ft.
contaminat
m the overly
nt
strained 9,07
ears to be e
estimated
ed technically
07 Tcf.
EIA/ARI W
I-30
Carboniferou
ms, and car
urced it with
bon dioxide.
o that of the
shale gas p
panies are a
evaluating t
y is structur
udetic Mono
posits, thus
to those pr
y too deep
ive Area)
arboniferous
thermal mat
total porosit
considered
The basin is
tion (20%)
ying Rotliege
70-mi
2
prosp
entirely withi
to have
y recoverab
World Shale Ga
us sequenc
rbonaceous
h natural gas
.
30
The over
REM shale-
roduction ha
actively expl
the Carboni
rally simple
ocline were
may be cla
resent in th
to be pros
s shale in t
turity window
ty. ARI estim
d as net pay
s reported to
are expec
end sandsto
pective area
in the dry g
moderate
le resources
s and Shale Oil
ce is prese
shales. Th
s, which FX
rall stratigra
-sandstone-
as been rep
loring for sh
ferous shale
and over-pr
deposited
ay-rich and
e Baltic Ba
spective and
the Fore-Su
w (R
o
of 1.3
mated the o
y (165 ft).
o be slightly
cted, based
ne.
a mapped in
as thermal
resource c
s are estima
Resource Asses

nt, with mu
he Carbonife
Energy rep
phic sequen
coal sequen
orted. San
hale gas her
e gas potent
ressured.
31

in a non-m
ductile. L
sin, underlie
d thus were
udetic Mono
3% to 2.0%)
organic-rich s
Depth aver
y over-press
on the ty
the Fore-Su
maturity win
concentratio
ted at 21 Tc
ssment
ultiple
erous
ported
nce in
nce in
Leon
re but
tial of
Note
marine
Lower
e the
e not
ocline
), and
shale
rages
sured.
ypical
udetic
ndow.
on of
cf, out
VIII. Poland

June, 2013

4.4 E
T
vertical w
continuo
intervals
core. Th
place at
report, th
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, Houston, Texa
rocarbon Migrat
gnificance of the
Geologica Poloni
Pomeranian Seg
, p. 139150.
2012, 64 p.
World Shale Ga

eum (February 2
ebruary 7, 2013)
6, 2013), South
Late Vendian
sis. Tectonophy
Generating Pote
ts in the Polish
Volume, Session
n Technique: A P
ays. American
urian Deposition
ce Pulse in the L
ologica Polonica
n the Devonian
.
aralic Deposits i
gnition of Oil & G
56, posted Sept
as, USA, April 10
tion and Accumu
e Nowa Supia G
ica, vol. 58, p. 43
gment of the Mid
s and Shale Oil

20, 2013), Cabo
, EQT Corporati
hwestern Energy
Early Palaeozoi
ysics, vol. 314, p
ential and their
Lowlands. 7th
n 7: Organic Ge
Probabilistic App
Association of
nal Region with
Lublin Basin (SE
a, vol. 58, p. 287-
Carbonates of
n the Lublin Bas
Gas Potential in
tember 19, 2011
0-13.
ulation in the Lu
Group (Upper Si
3-74.
d-Polish Trough
Resource Asses

ot Oil & Gas (Fe
ion (February 5,
y (February 21,
c Tectonic Evolu
p. 219-239.
Migration Vers
International Co
eochemistry J
proach for Deter
Petroleum Geo
Focus on Sha
E Poland): Sedim
-301.
f the Lublin Bas
sin (SE Poland).
Poland. Ameri
, adapted from o
blin Basin. Soc
ilurian) of the y
Basement Te
ssment

ebruary
2013),
2013),
ution of
sus the
ongress
urassic
rmining
logists,
ale Gas
mentary
sin (SE
. Acta
can
oral
ciety of
ysogry
ctonics
IX. Russia

June, 2013

IX. R
SUMMA
O
Jurassic
siliceous
West Sib
able to a
Source: A

RUSSIA
ARY
Our shale ga
Bazhenov
shale is the
berian Basin
ssemble suf
Fig
ARI, 2013
A
as and shal
Shale in th
e principle s
. We also e
fficient, publ
gure IX-1. Pro

IX
le oil resou
he West Si
source rock
examined oth
icly available
ospective Sha
EIA/ARI W
X-1
rces assess
berian Basi
for the conv
her shale ba
e data for a
ale Gas and Sh
World Shale Ga
sment for R
in, Figure I
ventional ga
asins (e.g., T
quantitative
hale Oil Basin
s and Shale Oil
Russia addre
X-1. This
as and oil pr
Timan-Pecho
resource as
ns of Russia
Resource Asses

esses the U
organically
roduced from
ora) but wer
ssessment.
ssment
Upper
rich,
m the
re not

IX. Russia

June, 2013

F
with 74.6
addition,
technical
Sour
or the Bazh
6 billion barr
we estima
lly recoverab
Ta
Source: ARI, 20

Tab
rce: ARI, 2013
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservo
Average
Therma
Clay Co
B
a
s
i
c
D
a
t
a
Depo
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospec
Thickne
Depth (f
R
e
s
o
u
r
c
e
Gas Ph
GIP Co
Risked
Risked
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sR
A
T
C
B
a
s
i
c
D
a
t
a
P
h
y
s
i
c
a
l
E
x
t
e
n
t
P
T
D
R
e
s
o
u
r
c
e
O
O
R
R
henov Shale
els as the ri
ate 1,920 Tc
ble shale ga
able IX-1. Shal
013
ble IX-2. Shale
Organical
Net
Interval
Average
oir Pressure
eTOC (wt. %)
al Maturity (%Ro)
ontent
Basin/Gross Area
ShaleFormation
Geologic Age
ositional Environm
ctiveArea(mi
2
)
ess (ft)
ft)
ase
ncentration (Bcf/m
GIP (Tcf)
Recoverable(Tcf)
Org
Net
Int
Av
Reservoir Pressur
AverageTOC (wt. %
Thermal Maturity (
Clay Content
Basin/Gros
ShaleForm
Geologic
Depositional En
ProspectiveArea(
Thickness (ft)
Depth (ft)
Oil Phase
OIP Concentration
Risked OIP (B bbl)
Risked Recoverab
IX
e, we estima
sked, techn
cf of risked
s resource,
e Oil Reservo
e Gas Reservo
Bazh
U. Jurass
ly Rich
6,5
Highl
A
ment
mi
2
)
U
ganically Rich
t
erval
erage
e
%)
(%Ro)
ss Area
mation
c Age
nvironment
(mi
2
)
n (MMbbl/mi
2
)
)
le(B bbl)
EIA/ARI W
X-2
ate 1,243 bi
ically recove
d shale gas
Table IX-2.
oir Properties a
oir Properties

henov Central
sic - L. Cretaceous
Marine
116,200
100
85
500 - 12,000
8,200
ly Overpress.
10.0%
0.85%
Low
ssoc. Gas
22.9
1,196.0
143.5
Bazhenov Cen
U. Jurassic - L. Cre
Marine
116,200
100
85
6,500 - 12,00
8,200
Highly Overpre
10.0%
0.85%
Low
Oil
18.5
964.8
57.89
World Shale Ga
llion barrels
erable shale
in-place, w

and Resource
and Resource
74,400
100
85
6,500 - 13,000
9,800
Highly
Overpress.
5.0%
0.85%
Low
Assoc. Gas
19.4
378.9
45.5
B
U. Jura
WestSiberian
(1,350,000mi
2
)
tral
taceous
74,4
10
85
00 6,500 -
9,8
ess.
Hig
Overp
5.0
0.85
Lo
O
13
261
15.
U. Jur
West Siberian
(1,350,000mi
2
)
s and Shale Oil
s of risked s
e oil resource
with 285 Tc
es of Russia
es of Russia
14,800
100
85
8,500 - 15,000 10,
12,000
Highly
Overpress. O
5.0%
1.15%
Low
Wet Gas
42.0
163.0
40.8
Bazhenov North
assic - L. Cretaceou
Marine
400 14,80
00 100
5 85
13,000 6,500 - 13
800 12,00
hly
press.
Highl
Overpre
0% 5.0%
5% 1.15%
ow Low
Oil Conden
3.4 4.3
1.5 16.8
69 1.01
Bazhenov North
rassic - L. Cretaceo
Marine
)
Resource Asses

shale oil in-p
e, Table IX-
cf as the ris

10,540
100
85
,000 - 16,000
13,500
Highly
Overpress.
5.0%
1.45%
Low
Dry Gas
66.0
182.5
54.8
us
00
3,000
00
y
ess.
%
%
w
sate
8
ous
ssment
place,
1. In
sked,
IX. Russia

June, 2013

1. W
1.1 In
T
basin lie
extending
Figure IX
C
reservoir
mainly in
north. Th
Samotlor
region an
Basin sti
1980s. D
productio
T
source ro
the prima
shows an
O
Jurassic
Formatio
to be at
Formatio
formation

WEST SIBE
ntroduction
The 850,000-
s between t
g north offsh
X-1.
Conventional
rs found pre
n the southe
he West Si
r oil field (28
nd the 350-T
ill delivers o
Declining co
on from unco
The Upper Ju
ock for the W
ary shale ad
nd variable q
Other format
Tyumen a
on is not con
depths grea
on is not su
ns were excl
ERIAN BAS
n and Geo
-mi
2
West S
the Ural Mo
hore under t
oil and gas
edominately
ern and cen
berian Basi
8 billion barr
Tcf Urengoy
over 60% of
onventional
onventional
urassic Bazh
Western Sib
dressed in t
quantities of
tions that m
nd Lower C
nsidered pro
ater than 16
ufficient for
luded from o

IX
SIN
logic Setti
Siberian Bas
ountains to
he Kara Sea
s production
y in Cretace
tral regions
in contains
rels of origin
gas field no
f Russias a
production
resources.
henov Shale
erian Basin
this resource
f oil productio
may contain
Cretaceous
spective in t
,400 ft (5,00
a quantita
our shale ga
EIA/ARI W
X-3
ng
sin is the lar
the west an
a and reach
has taken p
eous sandst
of the basi
tens of gia
nal oil reserv
orth of the A
annual oil pr
is stimulati
e, a marine s
s conventio
e assessmen
on.
shales with
Achimov fo
the northern
00 m). The
ative resourc
s and shale
World Shale Ga
rgest petrole
nd the Yenis
ing south to
place in the
tone format
n, with gas
ant and sup
ves) in the c
Arctic Circle.
roduction, it
ng interest
shale rich in
nal oil reser
nt, has been
h gas and
ormations,
n areas of th
publicly av
ce assessm
oil assessm
s and Shale Oil
eum basin in
sey River to
the border w
basin since
tions. Oil pr
fields more
per-giant fie
central Midd
Although th
ts output pe
in finding n
TOC, is con
rvoirs. The
n selectively
oil potentia
Figure IX-2
he basin whe
ailable data
ment. As s
ment.
Resource Asses

n the world
1
o the east,
with Kazakh
e the 1960s
roduction oc
e prevalent i
elds such as
dle Ob petro
he West Sib
eaked in the
new oil and
nsidered the
Bazhenov S
drilled, prov
al are the L
2. The Tyu
ere it is proje
for the Ach
such, these
ssment
. The
while
hstan,
, with
ccurs
n the
s the
oleum
berian
e late
d gas
main
Shale,
viding
Lower
umen
ected
himov
e two
IX. Russia

June, 2013

Source: Mod

ified from Ulmishe
Figure IX-2: S
ek, 2003
IX
Stratigraphic
EIA/ARI W
X-4
Column of the
World Shale Ga
e West Siberia
s and Shale Oil
an Basin
Resource Asses

ssment

IX. Russia

June, 2013

T
ft) of Mes
prior to
responsi
predomin
synclines
Triassic
wide.
2

T
anticlinal
present,
Lower-M
Source: Ulmi

The West Sib
sozoic and C
the Triass
ble for the
nantly north-
s that forme
Koltogor-Ure
The majority
uplifted st
have a disp
iddle Jurass
F
shek, USGS 2003
berian Basin
Cenozoic se
sic period,
formation o
-south alignm
ed in the lat
engoy grabe
y of discove
ructural trap
placement o
sic Tyumen F
Figure IX-3. C
(See F
3.

IX
n is an intra-
diments. Ba
with subse
of the basin
ment, influen
te Mesozoic
en, which ex
ered conven
ps, located
of only a few
Formation.
ross-Section A
Figure 4 for loca
(Layer J3 is
EIA/ARI W
X-5
-cratonic sag
asement roc
equent early
. Major Tri
ncing the str
c. The cent
xtends 1800
ntional oil a
on regiona
w tens of m
Across Centra
ation; vertical exa
s the Bazhenov S
World Shale Ga
g basin cont
cks of Paleoz
y Triassic
iassic rifts a
ructural align
tral tectonic
0 km north-t
and gas res
al arches, F
meters and s
al West Siberi
aggeration 100x
Shale)
s and Shale Oil
taining over
zoic age we
continental
and faults a
nment of larg
element of
to-south and
serves are
Figure IX-3.
seldom pen
ian Basin.
x)
Resource Asses

4,000 m (13
re deeply er
rifting prim
are oriented
ge anticlines
the basin i
d is 10 to 8
found in g
Faults, w
etrate above
ssment
3,000
roded
marily
in a
s and
s the
80 km
gentle
where
e the

IX. Russia

June, 2013

W
based o
North, w
gas/cond
high ave

We have par
n TOC and
with a prospe
densate and
rage TOC of
Figure IX
Source: A
rtitioned the
d thermal m
ective area
dry gas. B
f 10%, is the
X-4. West Sibe
ARI, 2013.
IX
Bazhenov S
maturity: Baz
of 99,740 m
Bazhenov Ce
ermally matu
erian Basin, Pr
EIA/ARI W
X-6
Shale in the
zhenov Nort
mi
2
and an
entral, with a
ure for shale
rospective Are
World Shale Ga
e Western S
th and Bazh
average TO
a prospectiv
e oil, Figure I
eas for Shale
s and Shale Oil
Siberian Bas
henov Cent
OC of 5%,
ve area of 11
IX-4.
3
,
4

Gas and Shal
Resource Asses

in into two a
tral.,. Bazh
contains oil
16,200 mi
2
a
e Oil

ssment
areas
henov
, wet
and a
IX. Russia

June, 2013

1.2 R
T
outcropp
northern
can reac
T
compose
contents
Figure IX
the TOC
Bazheno
S

Reservoir P
The Upper Ju
ping at the b
region. The
h up to 200
The Bazheno
ed primarily
are genera
X-5.
6
TOC v
C typically ra
ov Central.
5

Figure I
Source: Lopatin et
Properties
urassic Bazh
basin edges
e shales gro
ft (60 m) in l
ov Shale w
of siliceous
ally highest
values decre
anges from
IX-5. Reservoi
t al., 2003.

IX
(Prospecti
henov Shale
and reachin
oss thicknes
localized are
was deposite
s argillites,
in the cent
ease toward
2 to 7%. T
ir Properties o
EIA/ARI W
X-7
ive Area)
e is present a
ng depths of
s typically ra
eas.
ed in a dee
rich in plan
tral region o
s the periph
TOC averag
of the Bazheno
World Shale Ga
across much
f over 16,40
anges from 6
ep marine,
nktonic Typ
of the Basi
hery of the b
ges 5% in B
ov Shale from
s and Shale Oil
h of the Wes
00 ft (5,000
65 to 160 ft
anoxic env
pe II organic
n, typically
basin and to
Bazhenov N
mMaslikhov W
Resource Asses

st Siberian B
m) in the ce
(20 to 50 m
vironment a
c matter.
5

exceeding
o the north w
orth and 10
Well.

ssment
Basin,
entral
), but
nd is
TOC
15%,
where
0% in
IX. Russia

June, 2013

T
generatio
bottom-h
high, up
Clay con
T
carbonat
layers pr
play of N
rich/satu
B
area pro
between
ft. The 1
by R
o
va
by R
o
va
constrain
marine s
B
maturity
averagin
marine s
The literatur
on and expu
hole pressure
to 70% ab
tent is usua
The Bazheno
te/dolomite l
roviding add
North Dakot
rated shales
Bazhenov No
spective for
0.7% and 1
14,800-mi
2
a
lues betwee
lues greater
ned on the e
hale to shall
Bazhenov C
(R
o
) of 0.7
g 10%. Sim
hale to clast
re describes
ulsion as th
es in the Sa
bove normal
lly reported
ov reservoir
ayers.
8
The
itional reserv
ta, which co
s.
orth is prosp
r shale oil in
.0%, TOC c
area prospec
en 1.0% and
r than 1.3%,
east side of
low clastic d
entral conta
to 1.0%.
milarly, the B
tic sediment
IX
s the Bazh
he shales p
alym oil field
hydrostatic
as less than
structure co
e shales are
voir capacity
omprises a
pective for oi
n Bazhenov
content grea
ctive for wet
d 1.3%. The
Figure IX-6
f the basin,
deposit, Figu
ains a 116,
The TOC c
Bazhenov Ce
s facies cha
EIA/ARI W
X-8
henov as
assed throu
region are r
c pressure.
7
n 20%.
onsists of lay
e the source
y. This is so
carbonate r
l, wet gas/co
North is de
ater than 2%
t gas and co
e 10,540-mi
2
6A. The Baz
where the
re IX-6B.
,200-mi
2
pro
content of t
entral prosp
ange.
World Shale Ga
being over
ugh the oil
reported in s
Temperatu
yers of high-
e of the oil,
omewhat ana
reservoir sa
ondensate a
efined by vitr
%, and reserv
ondensate in
2
area prosp
zhenov Nort
Bazhenov S
ospective a
the shale is
pective area
s and Shale Oil
r-pressured,
window. M
some wells
ure gradient
-TOC shale
with the frac
alogous to t
andwiched
and dry gas.
rinite reflecta
voir depth gr
n Bazhenov
pective for d
th prospectiv
Shale chang
area for oil,
s high in Ba
is limited on
Resource Asses

caused b
Measured sh
to be abnor
ts are also
interbedded
ctured carbo
he Bakken S
between tw
. The 74,40
ance (R
o
) va
reater than 3
v North is de
dry gas is de
ve area is fu
ges from a
with a the
azhenov Ce
n the east b
ssment
by oil
hut-in
rmally
high.
d with
onate
Shale
wo oil
0-mi
2

alues
3,300
efined
efined
urther
deep
ermal
entral,
by the
I

J

S
X. Russia

June, 2013
Figure IX
Source: ARI, 2013.
X-6A. West Siberia an Basin - Vitrinite

e Reflectance
IX-9

Source: AR
EIA/ARI W
Figure IX-6B. W
I, 2013.
World Shale Gas and
West Siberian Basin
n - Lithofacies Ma
e Assessment

ap

IX. Russia

June, 2013

1.3 R
T
concentr
concentr
resource
prospect
associate
F
risked sh
recovera
risked sh
gas reso
In
recovera
1.4 R
T
in the W
Plateau,
Timan-Pe
T
even with
conventio
region. A
technique
Russias
of using
and shale

Resource A
The shale o
ration of 13
rations of 4 m
e concentrati
ive area ha
ed gas in the
or the total B
hale oil in-pla
ble shale oi
hale gas in-p
urce, Table
n its 2011 A
ble oil resou
Recent Act
The majority
West Siberia
with the re
echora Basi
The oldest fi
h the new te
onal oil and
As such, Ru
es used in
national oil
horizontal d
e oil resourc
Assessmen
oil in the Ba
3 million ba
million barre
on of 66 Bcf
as an estim
e oil window
Bazhenov sh
ace of 1,243
l resource, T
place of 1,92
IX-2.
Annual Repo
urces from th
ivity
of Russias
an Basin, lo
emaining oil
n, the north
elds have p
echnical focu
gas is in the
ussian oil co
the U.S. to
company, h
drilling and l
ces of Russia

IX
nt
azhenov No
arrels/mi
2
p
els/mi
2
and 4
f/mi
2
in the d
mated resou
w.
hale prospec
3 billion barre
Table IX-1.
20 Tcf, with
ort, Rosneft
he Bazhenov
current oil p
ocated betwe
l production
Caucasus R
produced sin
us on secon
e more remo
ompanies are
develop the
has signed a
arge scale s
a.
EIA/ARI W
-10
orth prospec
lus associa
42 Bcf/mi
2
in
dry gas wind
urce conce
ctive area in
els, with 74.6
In addition,
285 Tcf as t
t estimated
v suite on i
production (n
een the Ura
n coming m
Region, and
nce the 194
ndary recove
ote East Sib
e becoming
eir unconve
agreements w
stimulation t
World Shale Ga
ctive area
ated gas in
n the wet gas
dow. The sh
ntration of
n the West S
6 billion barr
for this pros
the risked, t
the compan
its license a
nearly two th
al Mountain
mainly from
the Sakhelin
40s and pro
ery and hydr
berian Basin
interested i
entional oil a
with ExxonM
techniques t
s and Shale Oil
has an est
n the oil w
s/condensat
hale in the B
18 million
Siberian Bas
rels as the r
spective are
technically re
ny had 4.4
reas in Wes
hirds) comes
ns and the
the Volga-U
n Basin.
oduction rate
ro-fracturing
and in the h
in the drilling
and gas res
Mobil and St
to unlock th
Resource Asses

timated reso
window; reso
te window; a
Bazhenov Ce
barrels/mi
2
in, we estim
isked, techn
ea, we estim
ecoverable s
billion barre
stern Siberia
s from large
Central Sib
Urals region
es are decl
g. Exploratio
higher cost A
g and produ
sources. Ros
tatoil with the
e vast shale
ssment
ource
ource
and a
entral
plus
mate a
nically
mate a
shale
els of
.
9

fields
berian
n, the
ining,
on for
Arctic
uction
sneft,
e aim
e gas
IX. Russia

June, 2013

T
Shale in
West Sib
field, whi
the Bazh
D
which is
on a pro
permeab
reservoir

To date, Ros
2013, after
beria JV, pro
ich has a his
henov reserv
Development
geared towa
oposal to c
bility of less
rs would be i
neft and Exx
completion o
oposed to st
story of Baz
voir in two ar
t of the Baz
ards conven
hange the
than 2 mi
incorporated
IX
xon Mobil ha
of their geolo
art drilling th
henov Shale
rea of West S
zhenov Sha
ntional reserv
mineral ext
llidarcies (m
d into the pro

EIA/ARI W
-11
ave announ
ogic study.
he Bazhenov
e oil product
Siberia.
10

ale is compl
voirs. The R
traction tax
mD).
11

It is
oposed chan
World Shale Ga
ced plans to
Gazprom N
v Shale in e
tion. Lukoil
licated by R
Russian gov
(MET) for
possible th
nge in the M
s and Shale Oil
o begin drilli
Neft and She
early 2014 ne
has announ
Russias cur
vernment is c
tight oil r
hat shale ga
MET.
Resource Asses

ng the Bazh
ell, as part of
ear the Saly
nced plans to
rrent tax reg
currently wo
reservoirs w
as and sha
ssment
henov
f their
ym oil
o test
gime,
orking
with a
le oil
IX. Russia

June, 2013

2. T
T
Circle of
Devonian
T
marls, we
kerogen
These so
Pechora
these so
favorable
W
to 1,000
and pres
in Weste
A
prepare
Timan-Pe
excluded
in this ba
shales in

TIMAN-PEC
The Timan-P
f northern R
n (Frasnian)
These source
ere deposite
with total o
ource rocks
Basin exce
urce rocks a
e, with low (<
While the gro
ft), publicly
ssure. The D
ern Canada S
At current tim
a quantitativ
echora Basi
d from the a
asin have hig
n this basin a
CHORA BA
Pechora Bas
Russia, Figu
organic-rich
e rocks, com
ed in a deep
organic cont
are present,
ept for the s
are primarily
<10%) clay.
1
oss thicknes
available in
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me, the pub
ve shale oil
in. Other so
ssessment.
gh TOC but
appear to ha

IX
ASIN
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re IX-1. Th
h shale in the
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14

s of the Dom
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13

blicly availab
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ource rocks
The Late J
are reported
ave low TOC
EIA/ARI W
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n onshore a
he principle
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thin-bedded
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ate thicknes
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, dark silice
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s and Shale Oil
ut 122,000 m
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eous shales
e rocks cont
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mi
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ale appears
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n, but have
meridgian) s
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13
.
iman-
1.0%,
to be
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rosity
Shale
ent to
n the
been
hales
vician
IX. Russia

June, 2013

REFERE

1
Ulmishek,
Bulletin 2
2
Littke, R.,
Accumula
3
Peters, K
Systems
4
Lopatin, N
Accumula
System.
5
Gavshin a
Abstract.
6
Grace, J.
Abstract,
7
Limberger
May 20, v
8
Nemova, V
Engineers
9
Rosneft O
10
http://www
11
Rodova,
from http:
12
Lindquist
System.
13
Abrams, M
Bulletin, v
14
Fossum,
Provinces

ENCES

G.F., 2003.
201-G, U.S. Ge
Cramer, B., Ger
ation in the West
.E., Ramos, L.S
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N.V., Zubairaev
ations in the Up
Journal of Petro
and Zakharov, 1
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D., and Walch,
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r, Y. et al., 2000
vol. 98, Issue 21
V.D., 2012. Ba
s Moscow sectio
il Company, 201
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N., 2012. Will
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, S.J., 1999. T
U.S. Geologica
M.A. et al. 1999.
vol. 83, no. 4, Ap
B.J. et al., 200
s of the Twenty-

Petroluem Geo
ological Survey,
rling,P., Lopatin,
t Siberian Basin
S., Zumberge, J
Decision-tree C
, S.L., Kos, I.M
pper Jurassic B
oleum Geology,
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D.B., 1996.
0. SW Siberias
.
zhenov Formatio
on meeting, Nov
11. Annual Repo
Russia Replicat
m/newsfeature/2
The Timan-Pech
al Survey Open-F
. Oil Families a
pril, p. 553-577.
01. New Fron
First Century: A
IX
logy and Resou
Reston, Virginia
, N.V., Poelchau
. AAPG Bulletin
.E., Valin, Z.C.,
Chemometrics. A
M., Emets, T.P.,
Bazhenov Black
vol. 26, p. 225-2
mistry of the Upp
122-133
The Bazhenov-
s Jurassic, Bazh
on: Structure, Pr
v 13, 2012. Retrie
ort.
e US Success i
012/oi/russianoi
ora Basin Provi
File Report 995
and Their Potent
tiers for Hydroc
AAPG Memoir 74
EIA/ARI W
-13
urces of the We
a.
u, H.S., Schaefer
n, vol. 83, no. 10
, Scotese, C.R.,
AAPG Bulletin, V
Romanov, E.A
k Shale Formati
244.
per Jurassic-Low
-Noecomian Pe
henov May Cont
roperties and Me
eved from http://
n Tight Oil Deve
l/index 01/10/13
nce of Northwes
50G, 40 p.
tial Sources in th
carbon Producti
4, Chapter 13, p
World Shale Ga
est Siberian Ba
r, R.G., and We
0, p. 1642-1665.
, and Gautier, D
V. 91, No. 6 (Jun
A. And Malchikh
ion, West Siber
wer Cretaceous
etroleum System
tain Much Large
ethods of Labora
/www.spe-mosc
elopment? Plat
3.
st Arctic Russia
he Northeastern
on in the Tima
. 259-279.
s and Shale Oil
asin, Russia. U
elte, D.H., 1999.

D.L., 2007. Ci
ne 2007), pp. 87
hina, O.V., 2003
rian Basin: A S
s Bazhenov Form
m of West Sibe
er Oil Reserves.
atory Research.
cow.org/meetings
tts Online, Augu
a: DomanikPale
Timan Pechora
n-Pechora Basi
Resource Asses

U.S. Geological
. Gas Generati
rcum-Arctic Pet
77-913.
3. Unconventio
Self-Sourced Re
mation, West S
ria. AAPG Bu
Oil and Gas J
Society of Pet
s/ 01/09/13.
ust 23, 2012. Re
eozoic Total Pet
Basin, Russia.
in, Russia. Pet
ssment
Survey
ion and
troleum
onal Oil
eservoir
iberia -
ulletin -
Journal,
troleum
etrieved
troleum
AAPG
troleum
X. Eastern E

June, 2013

X. E
SUMMA
E
and oil
Foreland
Ukraine a
Source: AR

Europe (Bulgaria

EASTER
ARY
Eastern Euro
resources i
d Basin, and
and Romani
I, 2013.
a, Romania, Ukr
RN EUR
ope (ex. Pola
in three se
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Figure X-1

raine)
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m, Figure X
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June, 2013

T
estimated
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drilling, a
Source: AR

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The total risk
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Table X
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ckness (ft)
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X. Eastern E

June, 2013

T
Lower C
Silurian o
deposits
Ukraine
(17 Tcf a
Europe is
S
Bulgaria
exploratio
occurred
Donets B
been neg
previous
INTROD
S
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potential
shale ex
are takin
investme
after initia
U
has anno
the basis
resource
coordina
Ukraines
up to 45
for the ge
Europe (Bulgaria

The main sha
arboniferous
of the Carpa
of the Moes
(128 Tcf and
and 0.2 billio
s more comp
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but no offic
on core we
. In Ukrain
Basin, comm
gotiating for
ly awarded s
DUCTION
Since EIA/AR
European c
. Internatio
ploration lice
ng various
ent. On the
ally proceed
Ukraine. Th
ounced shal
s for this e
es. The new
te shale ga
s current Pro
years for de
eologic infor
a, Romania, Ukr
ale targets i
s of the Dn
athian Forela
sian Platform
d 1.2 billion
on barrels).
plex, althoug
rce assessm
ial assessm
ell has been
ne, Shell rec
mitting at lea
a block in th
shale blocks
RIs initial s
ountries hav
nal oil and
enses in Bu
approaches
other hand,
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e Ukraine S
e gas resou
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wly created G
as studies
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rmation pack
raine)
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barrels); Ro
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ments are re
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cently signe
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s not been
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in Ukraine,
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kage.
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omania (51 T
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appears less
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the region
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a and Bulgar
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nd Romania

e of Geology
country of 7
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be underway
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ction Sharing
ploration, w
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ria have bee
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e their shale
ng Chevron
oland. The
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y and Minera
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3
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and the figu
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nitoring wat
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est: $60,000
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osited black
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and Jurass
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y in Ukraine
date only on
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e potential
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n and Shell,
countries of
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ed shale exp
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ure includes
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ter quality i
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shales withi
llion barrels)
sic Etropole s
the estimate
els); and Bul
eology of Ea
parts of Eur
e, Romania
ne shale-foc
ction testing
nt in the Dn
n reportedly
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ld.
in 2011, se
hale oil reso
have negot
f Eastern Eu
welcomes s
ploration on
s (Gosgeon
7 Tcf.
1
How
some tight
Poltava pla
in drilling a
ration period
nder and $10
ssment
n the
); the
shale
es are
lgaria
astern
rope.
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cused
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vrons
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tiated
urope
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t gas
ans to
areas.
d and
0,000
X. Eastern E

June, 2013

O
and dev
respectiv
In Janua
Economi
Dniepr-D
depth of
recovery
C
western
holds sha
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conventio
years, wi
tax. The
could be
released
Bulgaria
organic-r
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dramatic
effective
governm
exploratio
the shale
and gove
R
although
May 201
on shale
health, sa
Europe (Bulgaria

On February
velopment in
vely. Shell,
ary 2013, U
c Forum in D
Donets Basin
10 km, incl
and a 16.5%
Chevron has
Ukraine. Th
ale licenses.
Bulgaria. W
onal oil and
ith royalties
e Economy
e in the ran
. The Shale
s Institutes
rich shale de
However, dur
ally in Bulga
counter-ba
ent, such as
on and prod
e industry in
ernment poli
Romania.
some local
2 the newly
e gas explo
afety, and e
a, Romania, Ukr
23, 2012 the
n the Oles
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kraine awar
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n covers an a
uding tight a
% governme
been in neg
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d gas produ
ranging from
and Energy
ge of 0.3 to
e Gas Rese
of Geology
eposits in Bu
ring the past
aria. This o
lancing info
s exists in P
duction, whe
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cies in Rom
Romania a
observers
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oration activ
nvironmenta
raine)
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e Ukraine go
ka and Yu
l, Chevron,
rded the firs
zerland. Sh
area of 7,88
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ent revenue
gotiations w
along strike
and terms lik
country lack
ction terms
m 2.5% to 30
y Minister h
o 1.0 Tm
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arch Group,
y and Orga
ulgaria.
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t year public
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ether or not
d the UK is e
ania and Bu
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st shale gas
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2
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entered gas
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kely would be
ks a shale-
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, a newly for
nic Chemis
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mpaign offe
January 201
it involves h
expected to
ulgaria.
3

y banned s
ban would b
vernment beg
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announced a
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e similar to t
-specific inv
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ted that Bul
Tcf), but no
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influence th
shale gas e
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come of Eur
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a tender for s
stern and e
ally responde
ning with Sh
mit at Yuzovs
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tract allows
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asin, where
those grante
vestment re
ction license
with a 10% c
garias shal
supporting
rtium of Sof
ducting long
s developme
nmental org
e petroleum
rnment bann
cturing. The
he future pol
exploration
reverse tha
rmal (i.e., no
ropean-leve
t.
Resource Asses

shale explor
eastern Ukr
ed to the te
hell at the W
ska in the ea
s to all strata
for 70% inv
he Oleska fie
Chevron alr
ed to Shell.
egime, Bulga
es extend fo
corporate inc
e gas resou
study has
fia University
g-term studie
ent has incre
ganizers, wit
industry o
ned all shale
e performan
litical accept
and produc
an Bulgarias
ot legislated
el studies on
ssment
ration
raine,
ender.
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astern
a to a
vestor
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ready
arias
or 35
come
urces
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y and
es of
eased
th no
r the
e gas
nce of
tance
ction,
s. In
) ban
n the
X. Eastern E

June, 2013

R
fall unde
Resource
shale ga
universiti
M
Romania
totaling 9
MOL wa
Curtici).
Craiova l
it discove
that it ha
these pro

GEOLO
E
potential
Carbonife
most pro
these ten
C
U
s
so
P
D
so
M
B
p
Europe (Bulgaria

Romania lack
r the country
es, which re
as deposits,
ies (Buchare
More than a
a. Beginning
9,000 km
2
, t
as awarded
Sterling Res
license of so
ered shale g
d applied hy
ojects are on
OGIC OVER
Eastern Euro
in Paleozoi
erous and S
ospective for
nd to be less
Carpathian
Ukraine is sim
hale belt b
outhwestern
Paleozoic be
Dniepr-Done
outhern Bela
Moesian Pla
Bulgaria. No
revious two
a, Romania, Ukr
ks specific r
ys conventi
egulates petr
in cooperat
est, Iasi and
a dozen com
g in March 2
hree blocks
three shale
sources and
outhwest Ro
gas resource
ydraulic frac
n hold due to
RVIEW
ope has th
c and Meso
Silurian black
r oil and gas
s widespread
Foreland B
milar to the
ecomes str
n Ukraine an
lt north of th
ets Basin.
arus contain
tform. Silur
ote that the
plays and m
raine)
X
regulations f
onal petrole
roleum oper
tion with the
Cluj). No fu
mpanies hav
2012 Chevro
located in D
e gas perm
d partner Tra
omania. Fin
es in 5 out o
turing techn
o Romanias
ree distinct
zoice marin
k shales are
within the M
d and/or are
Basin. The
Lublin Basin
ructurally sim
nd northern
e Carpathia
This well-de
ns prospectiv
rian and Jur
Moesian P
may be cons
EIA/ARI W
X-5
for shale ga
eum terms.
rations in Ro
e national re
urther details
ve expresse
on was awa
Dobruja and
mits in north
ansAtlantic P
ally, state-o
of 20 of its e
ology in Rom
s shale ban.
shale-pros
e-deposited
most prospe
Mesozoic. O
thermally le
moderately
n in southea
mpler as it
Romania un
n Foldbelt is
efined Late
ve organic-ri
rassic black
Platform sha
iderably larg
World Shale Ga
as developm
In 2011 the
omania, initia
esearch inst
s are availab
ed interest
rded four sh
d one in the
hwestern Ro
Petroleum jo
owned energ
exploration w
mania as ea
spective are
black shale
ective, while
Other organic
ess mature, a
y complex L
ast Poland.
trends tow
ntil it reache
s called the C
Paleozoic b
ch L. Carbo
shales are p
ale plays are
ger than asse
s and Shale Oil
ment, thus s
National Ag
ated a study
titute GeoEc
ble.
in shale ga
hale gas exp
Moldova re
omania (Voi
ointly hold th
gy firm Romg
wells in Tra
arly as the m
eas with sh
es. Within th
e the mid-Ju
c-rich shales
and thus we
Lviv-Volyn B
However, t
wards the s
es the Black
Carpathian F
basin in east
niferous bla
present acro
e less well
essed here.
Resource Asses

hale applica
gency for Mi
y of the cou
coMar and
as exploratio
ploration lice
egion. Hung
ivozi, Adea,
he 5,800-km
2
gaz reported
nsylvania, n
mid-1990s.
ale gas an
he Paleozoic
rassic shale
s exist locall
ere not asses
Basin of we
the Silurian
southeast ac
Sea. This
Foreland Ba
tern Ukraine
ck shales.
oss Romania
defined tha

ssment
ations
ineral
ntrys
three
on in
enses
garys
, and
2
Sud
d that
noting
All of
nd oil
c, the
es are
ly but
ssed.
estern
black
cross
deep
asin.
e and
a and
n the
X. Eastern E

June, 2013

O
deemed
Romania
which ap
appear m

1. C
1.1 In

to 200- k
Silurian
Basin, w
Basin ap
H
to the s
tectonic
Scythian
the Crim
separate
assessed
have nam
T
black sha
the sout
Further t
marine s
12% TOC
Oligo-Mio
is intense

Europe (Bulgaria

Other basins
to be less
a, Serbia and
ppears too d
much too stru
CARPATHIA
ntroduction
Prosp
km wide Pale
deposits of
here 62 con
ppears to be
However, the
outheast ac
disturbance
Platform be
ean Peninsu
es this belt fr
d. We refer
med it the Lv
The Carpath
ales. As the
hwest and
to the south
ource rocks
C, the 200-m
ocene Lowe
ely faulted w
a, Romania, Ukr
in Eastern
s prospectiv
d Monteneg
eep for shal
ucturally com
AN FOREL
n and Geo
pective marin
eozoic belt,
southeast
nventional oi
too deep an
e Silurian be
cross weste
, the Siluria
efore headin
ula near Od
om the Silur
to the Siluri
viv-Moldava
ian Foreland
e foreland b
is characte
h, the struc
. These inc
m thick L. Cr
er Menilite F
with complex

raine)
X
Europe con
ve. The la
ro, Slovenia
e developm
mplex to be
LAND BAS
logic Setti
ne black sha
from Poland
Polands Lu
il and gas fie
nd faulted fo
lt becomes
ern Ukraine
n belt re-en
g out into th
dessa before
rian of the M
an belt as th
Slope.
5

d Basin has
basin to the
rized by mo
cturally comp
clude the 50
retaceous S
ormation wit
x nappe tecto
EIA/ARI W
X-6
tain organic
arge Panno
a, and Bosni
ent. The C
prospective.
IN (UKRAI
ng
ales of Siluri
d all the way
ublin Basin
elds have b
r shale deve
wider and s
and northe
nters southe
e Black Sea
e continuing
Moesian Platf
he Carpathia
s good shale
Carpathian
ostly simple
plex Carpat
0-m thick Ju
pas and Shy
th up to 20%
onics, Figure
World Shale Ga
c-rich source
onian-Transy
ia and Herzo
Carpathian, B
.
NE-ROMA
ian age exte
y to the Blac
continue in
een develop
elopment.
tructurally s
ern Romania
rn Ukraine a
a. It then bri
offshore. T
form to the s
an Foreland
e gas deve
thrust belt,
e structure w
thian region
urassic Kokh
ypot formati
% TOC. How
e X-4,
6
,
7
and
s and Shale Oil
e rock shale
ylvanian ba
ogovina has
Balkan, and
ANIA-MOLD
end continuo
ck Sea. In w
nto the adjo
ped. Much
impler as it
a, Figure X
and eastern
efly re-emer
The North D
south
4
, whic
Basin, but o
lopment pot
this shale b
with few fa
n also conta
hanivka Form
ons with 2-7
wever, the C
was not ass
Resource Asses

s but these
asin of Hun
s Paleozoic s
related fold
DOVA)
ously within
western Ukr
oining Lviv-V
of the Lviv-V
continues fu
X-2. After s
n Romania i
rges onto lan
Dobrogea Or
h was separ
other researc
tential in Sil
belt dips gen
ults, Figure
ains multiple
mation with
7% TOC, an
Carpathian re
sessed.
ssment
were
ngary,
shale
belts
a 50-
raine,
Volyn
Volyn
urther
some
n the
nd on
rogen
rately
chers
lurian
ntly to
X-3.
e rich
up to
nd the
egion
X. Eastern E

June, 2013

Figure
S
Europe (Bulgaria

Figure
Source: ARI
e X-3: Cross-S
Source: Sachsen
a, Romania, Ukr
e X-2: Carpath
2013
Section of Lviv
nhofer et al., 201
raine)
X
hian Foreland
v Slope Portio
12
EIA/ARI W
X-7
Basin Showin
on of the Carp
World Shale Ga
ng Shale-Pros
pathian Forela
s and Shale Oil
spective Areas
nd Basin in W
Resource Asses

s.
Western Ukrain
ssment
ne
X. Eastern E

June, 2013

T
Carpathia
the Silur
Silurian s
Ludlow m
from 400
S
well data
in this we
alteration
exists in
indicates
spurious
occurred
investiga
refine the
Europe (Bulgaria

Figure
Source: Koltun
The Silurian
an Foreland
ian shale in
shale is pre
member of th
0 to 600 m th
Silurian shale
a point availa
ell were less
n. Given th
n places. T
s the Silurian
) over-matu
prior to t
ations are n
e maturity pa
a, Romania, Ukr
X-4: Cross-Se
et al., 1998
is the main
d Basin, Figu
n western U
esent, transi
he Silurian is
hick and occ
e TOC may
able (IS-1).
s than 1%.
he depositio
Thermal ma
n is entirely
re values of
the Mesozo
eeded to in
atterns in Lo
raine)
X
ection of a Nap
petroleum s
ure X-5. Co
kraine are l
itioning east
s considered
urs at depth
be lower in
Most TOC m
However, th
onal environ
aturity mapp
in the dry g
f 5% R
o
als
oic. As Sac
nvestigate la
ower Paleozo
EIA/ARI W
X-8
ppe Structure
source rock
ompared with
ess certain.
tward into t
d the most p
s of 2 to 3 k
Ukraine than
measuremen
he original T
mental of th
ping, calcul
as window (
so were mea
chsenhofer
ateral and v
oic rocks.
World Shale Ga
e in the Carpat
and shale g
h Poland, th
. About 40
hinner, shal
prospective
km in wester
n in Poland,
nts at a dep
TOC is estim
he Silurian,
ated from
(R
o
of 1.3%
asured. Ma
and Koltun
vertical varia
s and Shale Oil
thian Thrust B
gas explorat
he reservoir
0 to 1,000
llow-water c
interval. Th
n Ukraine.
, at least bas
th range of
mated at 3%
it is likely
conodant a
to 3.5%). S
aturation is
n (2012) n
ations of TO
Resource Asses

Belt

ion targets i
characterist
m of deep-w
carbonates.
he Ludlow ra
sed on the s
1,400 to 1,5
% prior to the
that higher
alternation in
Several (pos
believed to
oted: addit
OC contents
ssment
n the
ics of
water
The
anges
single
592 m
ermal
TOC
ndex,
ssibly
have
tional
s and
X. Eastern E

June, 2013

Figure
Jura
Source: Sac

T
western
structura
Slope. T
been ero
1.2 R
B
prospect
of which
the 500-m
10,000 ft
Europe (Bulgaria

X-5: Stratigra
assic-Age (left
chsenhofer et al
The Kovel-1
Volynia, no
lly complex
The Kovel-1
oded in this u
Reservoir P
Based on ge
ive area in t
11,520 mi
2

m thick Ludl
t deep within
a, Romania, Ukr
phy of Carpat
t). L. Cretaceo
., 2012
petroleum w
rthwestern U
Lublin-Lviv
well cored
uplifted locat
Properties
eologic contr
the Carpathi
is in Ukrain
low Member
n the prospe
raine)
X
thian Foreland
ous and Paleo
well is a ke
Ukraine. Th
basins on th
Ordovician
tion.
8

(Prospecti
rol from reg
an Foreland
e and 4,560
r of the Silur
ective region
EIA/ARI W
X-9
d Basin Show
ogene Source

ey stratigrap
he well is lo
he west and
at a depth o
ive Area)
gional cross-
d Basin is es
0 mi
2
in Rom
rian is estim
n, and have
World Shale Ga
ing Thick Blac
e Rocks Occur
hic test drill
ocated along
the less de
of about 250
-sections, th
stimated to b
mania. The
ated to aver
4% porosity
s and Shale Oil
ck Shales of S
r in the Carpat
led during t
g the transit
eformed Voly
0 m; Silurian
he total estim
be approxim
target organ
rage 1,000 f
y. TOC aver
Resource Asses

Silurian and M
thians (right).
he late 198
tion betwee
ynia region o
n apparently
mated shale
mately 16,080
nic-rich porti
ft thick gross
rages a rela
ssment
Mid-

80s in
n the
of the
y had
e gas
0 mi
2
,
ion of
s and
atively
X. Eastern E

June, 2013

low 2.0%
be hydro
1.3 R
R
Foreland
risked sh
concentr
that is pr
U
gas licen
gas reso
specified
A
the Carp
of 279 T
assumpt

1.4 R
C
in the O
deadline
Barlad sh
is unclea
In
gas licen
gas pote
spend ab

Europe (Bulgaria

% and is in th
static (0.43
Resource A
Risked, techn
d Basin are e
hale gas in-
ration of abo
resent.
Ukraines Sta
nse area in t
ources. Wh
d.
An independe
athian Forel
Tcf of gas
ions (thickne
Recent Act
Chevron repo
leska block
of May 201
hale gas pe
ar following t
n 2012 ENI
nses totaling
ential. The c
bout $55 mil
a, Romania, Ukr
he dry gas w
psi/ft).
Assessmen
nically recov
estimated to
-place of 36
out 113 Bcf/m
ate Commiss
the Lviv-Voly
hether this
ent assessm
land Basin a
in-place.

T
ess, porosity
ivity
ortedly is in n
of western
13 for comp
rmit in north
he shale ban
acquired ha
g 3,800-km
2

company an
lion explorin
raine)
X-
window (R
o
a
nt
verable reso
o be 73 Tcf (
63 Tcf, Tabl
mi
2
, reflectin
sion on Mine
yn Basin ha
estimate re
ment of Silur
arrived at a M
This estima
y, risk) were
negotiations
Ukraine. T
pleting this d
heastern Rom
n in Romani
alf of LLC W
in the Lviv
d its partner
ng for shale g
EIA/ARI W
-10
verage 2.5%
ources from
(52 Tcf in U
e X-1. The
ng the signif
eral Resourc
as about 0.8
eflects in-pla
rian shale ga
Mean Estima
te utilized
not specifie
s with the go
The governm
deal. Chevr
mania close
a.
WestGasInve
Basin of we
rs, including
gas in the Lv
World Shale Ga
%). The pres
m Silurian bla
Ukraine and
e play has
ficant thickne
ces has esti
to 1.5 trillio
ace or reco
as resources
ate of 5.6 Tc
EIA/ARIs 2
ed, nor was U
overnment to
ment recent
ron also init
e to Moldova
est, which c
estern Ukrain
g UK-based
viv basin fro
s and Shale Oil
ssure gradie
ack shale in
21 Tcf in Ro
a moderate
ess of the o
imated that
on m
3
(28 to
overable res
s in the Rom
cf technically
2011 metho
Ukraine eval
o develop a s
tly removed
tially acquire
a, but the sta
controls nine
ne, which m
Cadogan Pe
m 2012 thro
Resource Asses

ent is assum
n the Carpa
omania), ou
ely high reso
organic-rich s
the Oleska s
o 53 Tcf) of s
sources was
manian porti
y recoverabl
odology, but
luated.
9

shale gas pr
its self-imp
ed the 6,257
atus of this
e unconvent
may include s
etroleum, pl
ough 2015.
ssment
med to
athian
t of a
ource
shale
shale
shale
s not
on of
le out
t key
roject
posed
7-km
2

block
tional
shale
an to
X. Eastern E

June, 2013

2. D
2.1 In

failed rift
sequence
developm
Moscovia
shale tar
T
compara
depths o
rocks, w
mainly st
Belarus,
southeas
R
northwes
faults (h=
although
Devonian
(Frasnian
showing
L
the overl
entire Ca
its base
continent
is typical
Europe (Bulgaria

DNIEPR-DO
ntroduction
The D
t basin on
e of Lower
ment. Econ
an overlie th
rget.
The DDB a
tively well u
of over 5 km
hile overlyin
tructural trap
which appe
st the basin c
Roughly sym
st-southeast
= 100 m to 2
numerous s
n and youn
n) salt depos
depth to the
. Carbonifer
ying coal se
arboniferous
along the
tal in origin,
ly 50 m thick
a, Romania, Ukr
ONETS BAS
n and Geo
Dniepr-Done
the Eastern
r Carbonifer
nomically im
hese shales,
accounts fo
nderstood, w
m. Lower Ca
ng clastic Ca
ps. To the n
ears to be
continues in
mmetrical, th
.
11
It comp
2 km). The
smaller fault
nger sedime
sited under r
e L. Carbonif
rous black s
eams source
section ran
basin axis.
but transitio
k and contai
raine)
X-
SIN (EAST
logic Setti
ets Basin (D
n European
rous black s
mportant Ca
,
10
but this co
or most of
with several
arboniferous
arboniferous
northwest the
too shallow
to the Donb
e DDB is a
rises a seri
e individual b
ts are locally
entary rocks
restricted rift
ferous (L. Vi
shale overlie
ed most of th
ges up to 11
In the no
ons into part
ns an organ
EIA/ARI W
-11
T UKRAINE
ng
DDB) in east
Craton, Fig
shale which
arboniferous
oaly sequen
Ukraines
thousand o
s black shale
s sandstones
e DDB conti
and low in
as Foldbelt
about 700 k
es of half g
blocks are q
y present. T
s, which inc
ft conditions.
sian) black s
es the Devo
he conventio
1 km thick in
orthwest por
ly shallow m
nic-rich shallo
World Shale Ga
E)
tern Ukraine
gure X-6.
h may be p
coal depos
nce does no
onshore p
oil and gas w
es and coal
s provide co
nues into th
n TOC for s
of southwes
km long, 40
grabens bou
quite sizeabl
The basin co
cludes 1 to
. Figure X-7
shale as we
nian salt int
onal oil and
n the DDB a
rtion of the
marine depos
ow marine s
s and Shale Oil
e is a Mid-t
The basin
prospective
sits and tig
t appear to
petroleum r
wells, some o
seams are
onventional
e Pripyat Tr
shale develo
stern Russia
to 70 km w
unded by lar
e (50-100 k
ontains as m
2 km of m
7 is a structu
ll as salt flow
terval. This
gas fields in
and is up to
e DDB the
sitional cycle
shale layer.
Resource Asses

to Late-Devo
contains a
for oil and
ght sands o
be a prospe
reserves an
of which rea
the main so
reservoirs w
rough of sou
opment. To
.
wide, and tr
rge-displace
km by 20-40
much as 15 k
mostly Devo
ural cross-se
ws in the bas
black shale
n the basin.
15 km deep
Carbonifero
es, each of w
ssment
onian
thick
d gas
of the
ective
nd is
ached
ource
within
thern
o the
rends
ement
km),
km of
onian
ection
sin.
12

e and
The
near
us is
which
X. Eastern E

June, 2013

Source: AR

Figure X
Source: Sto

Europe (Bulgaria

Fig
I, 2013
-7: Cross-Sec
ovba et al., 1996
a, Romania, Ukr
gure X-6: Dnie
ction of Dneipr

raine)
X-
epr-Donets Ba
r-Donets Basi
EIA/ARI W
-12
asin Showing
n Showing De
Shale
World Shale Ga
Shale-Prospe
epth to the L.
s and Shale Oil
ective Areas
Carboniferous
Resource Asses

s (L. Visian) B
ssment
Black
X. Eastern E

June, 2013

S
Upper V
These b
develope
prone. T
lower pa
the Rudo
kerogen.
rocks occ
black sha
Figure
Source: mod

T
window (
1.3-3.0%
penetrate
km, Figu
0.8-1.0%
Europe (Bulgaria

Several black
isean Rudov
lack shales
ed in the Sre
The Rudov B
rt of the form
ov Beds ha
Additional
cur in the Up
ales with up
X-8: Stratigra
dified from Sach
Thermal matu
(R
o
0.8-1.0%
%) in the sou
ed a nearly
ure X-9. TO
%). The oil w
a, Romania, Ukr
k shale targe
v Beds are
are up to
ebnen and Z
Beds are rich
mation is hig
s 3.0% to 1
l slightly lea
pper Visean
to 5% TOC
phy of Dniepr
hsenhofer et al.,
urity of the R
%) in the cen
theast. For
1-km thick C
OC of up to
window in th
raine)
X-
ets occur wit
considered
70 m thick,
Zhdanivske d
h in siliceous
gh in calcite
10.7% TOC
aner (TOC o
above the R
.
r-Donets Basin
2010
Rudov Beds
ntral and no
example, th
Carboniferou
4% in this in
his basin ap
EIA/ARI W
-13
thin the L. C
the best qu
but more
depressions
s radiolaria,
as well as c
(average 5
of 3.0% to 3
Rudov Beds
n. Black shale
Visean.
s and the ov
orthwestern
he Rud-2 pe
us Upper Vi
nterval is wi
ppears to be
World Shale Ga
Carboniferou
uality source
typically 30
s where they
making them
clay. The o
5%), mostly
3.5%) but s
s, while the l
es Occur in L
verlying Upp
DDB, increa
etroleum wel
isean shale
ithin the oil
e normally to
s and Shale Oil
s sequence
e rock and s
-40 m, and
y are quite d
m potentially
organic-rich m
Type III wi
still quite pro
lower Serpu
. Carboniferou
er Visean is
asing to dry
ll in the Dnie
interval at a
thermal mat
o under-pres
Resource Asses

, Figure 8.
13
shale gas ta
particularly
deep and dry
y brittle, whil
middle secti
ith some Ty
ospective so
khovian con
us Rudov and

s mainly in th
gas maturit
epr-Donets B
a depth of 4
turity window
ssured, whil
ssment
The
arget.
y well
y gas
le the
ion of
ype II
ource
ntains
d U.
he oil
ty (R
o

Basin
4 to 5
w (R
o

e the
X. Eastern E

June, 2013

dry gas w
data con
Figure X
Source: Sac

T
dip slope
axis. Th
The nort
Lacking a
using ba
prospect
potential
2.2 R
L
Serpukho
of the Dn
relatively
Europe (Bulgaria

window is lik
trol is poor.
1
X-9: Rud-2 Wel
chsenhofer et al
The southwe
e, where thi
e L. Carbon
heast flank
a detailed de
asement con
ive area. N
along variou
Reservoir P
ower Carb
ovian) are p
neipr-Donets
y deep (3-5
a, Romania, Ukr
kely to be ov
4

ll in the Dniep
with TOC
., 2012
st flank of th
ck L. Carbo
niferous is at
of the DDB
epth map on
ntours and m
Note that sa
us parts of th
Properties
boniferous
rospective w
s Basin. The
km). They
raine)
X-
ver-pressure
r-Donets Basi
C up to 4%in t
he Dneipr-Do
oniferous bla
t ideal depth
has thinner
n the Carbon
multiple pub
alt intrusion
he slope.
(Prospecti
black shale
within a 10,1
ese shales a
y largely co
EIA/ARI W
-14
d due to ong
in, Showing th
the Oil Window
onets Basin
ack shale tilt
h for shale d
r L. Carbonif
niferous, we
blished cross
s up to 15
ive Area)
es (Rudov
150-mi
2
dept
are estimated
onsist of sili
World Shale Ga
going gas ge
he Carbonifer
w(Ro 0.8 to 1
is characte
ts gently to
developmen
ferous that i
e constrained
s-sections, y
km thick m
Beds, Lo
th-controlled
d to total ab
iceous or c
s and Shale Oil
eneration, a
rous Upper Vis
.0%).
rized by a s
the NNE to
t (1-5 km) o
is structurall
d the depth-
yielding goo
may negative
ower Visea
d belt that su
out 1 km in t
calcareous li
Resource Asses

although pres
sean Shale (C
tructurally s
owards the
over a broad
y more com
-prospective
od control o
ely impact s
an, and L
urrounds the
thickness bu
ithologies ri
ssment
ssure
C1v2)
imple
basin
d belt.
mplex.
area
n the
shale
Lower
e axis
ut are
ch in
X. Eastern E

June, 2013

radiolaria
should b
averagin
intrusions
2.3 R
D
southeas
(compris
resource
resource
W
mi
2
. Ris
billion ba
billion ba
O
prospect
be about
risked in-
U
shale gas
tight gas
specified
2.4 R
In
7,800-km
stage inv
Petroleum
may inclu

Europe (Bulgaria

an and thus
e favorable
g about 4.5%
s may sterili
Resource A
Dry Gas Wi
stern Dniepr
ing the Rudo
e concentrati
es are estima
Wet Gas Win
sked, technic
arrels of con
arrels.
Oil Window.
ive area of a
t 0.7 billion b
-place shale
Ukraines Sta
s license in t
resources.
d.
Recent Act
n early 2013
m
2
Yuzovska
vestment co
m portions o
ude shale po
a, Romania, Ukr
are expecte
(30%) due t
%. Thermal
ze some of t
Assessmen
indow. The
r-Donets Ba
ov Beds and
on of approx
ated to be 59
ndow. The
cally recove
ndensate fro
The smalle
about 1,460
barrels of sha
e oil resource
ate Commis
the eastern
Whether th
ivity
3 Shell was a
a PSA locate
mmitment is
of the Zagory
otential.
raine)
X-
ed to be britt
to the inferre
l maturity ra
the mapped
nt
e mapped p
asin is estim
d portions of
ximately 195
9 Tcf, out of
wet gas pro
erable resou
m in-place s
er oil window
mi
2
. Risked
ale oil and c
es of 13 billio
ssion on Min
Dniepr-Done
his estimate
awarded Ukr
ed on the so
s $200 millio
yanska and
EIA/ARI W
-15
tle with high
ed frackabilit
anges from o
prospective
prospective
mated at 6
f the overlyin
5 Bcf/mi
2
. R
a risked sha
ospective are
rces are es
shale gas a
w in the nort
d technically
condensate a
on barrels.
neral Resou
ets Basin ha
e reflects in-
raines first f
outh flank of
on. Previous
Pokroskoe
World Shale Ga
porosity (6%
ty of the sha
oil to dry gas
e area (10%
area for th
,010 mi
2
.
ng Upper Vi
Risked, techn
ale gas in-pl
ea of the DD
stimated at 1
nd shale oil
thwestern D
y recoverable
and 1 Tcf of
urces has e
as 2-3 Tm
3
(
place or rec
formal shale
f the Dniepr
sly in 2011,
conventiona
s and Shale Oil
%). Gas rec
ale. TOC ap
s. On the n
).
he dry shale
Lower Carb
isean) has a
nically recov
ace of 235 T
DB extends
16 Tcf of sh
resources o
niepr-Donet
e resources
f associated
estimated th
71-107 Tcf)
coverable re
e gas explor
r-Donets Ba
ENI acquire
al licenses in
Resource Asses

covery rates
ppears favor
egative side
e gas windo
boniferous s
a highly favo
verable shale
Tcf.
over about 2
hale gas an
of 63 Tcf an
ts Basin cov
are estimat
shale gas, o
at the Yuzo
of shale gas
esources wa
ation license
sin. Shells
ed from Cad
n the DDB, w
ssment
s also
rable,
e, salt
ow in
shale
orable
e gas
2,680
d 0.5
nd 10
vers a
ted to
out of
ovska
s and
as not
e, the
s first-
dogan
which
X. Eastern E

June, 2013

3. M
3.1 In
T
stretches
overthrus
the north
Moesian
North Do
Carpathia
considere
Source: AR
Europe (Bulgaria

MOESIAN P
ntroduction
The Moesian
s across sou
sted by the B
hern bounda
Platform is
obrogea Oro
ans, contain
ed less pros
Figur
I 2013
a, Romania, Ukr
PLATFORM
n and Geo
n Platform
uthern Rom
Balkan thrus
ry; both are
s separated
ogen. The
ns similar so
spective.
re X-10: Moesi
raine)
X-
M (ROMAN
logic Setti
is a compa
ania and no
st system to
Cenozoic fe
from the C
adjacent G
urce rocks b
an PlatformR
EIA/ARI W
-16
IA, BULGA
ng
aratively sim
orth-central
the south, w
eatures relat
arpathian F
Getic Basin
but is more d
Region Showin
World Shale Ga
ARIA)
mple (for E
Bulgaria, Fi
while the Ca
ted to Alpine
Foreland Bas
of Romania
deformed by
ng Shale-Pros
s and Shale Oil
Europe) fore
igure X-10.
arpathian thr
e tectonics.
sin and on
a, the forela
y Tertiary tec
spective Areas
Resource Asses

eland basin
The Platfo
ust system f
To the eas
the north b
and of the S
ctonic events
s.
ssment
that
rm is
forms
st, the
y the
South
s and
X. Eastern E

June, 2013

U
rocks are
gas field
and occa
T
prospect
Carbonife
Etropole
shales (B
shale and
T
and the
Silurian r
Block in
4,200 m
eastern B
of 1 to 5
T
the main
lower po
interbeds
the Uppe
predomin
pressure
maturity
Balkan th
O
within the
unstimula
Mid-Trias
Europe (Bulgaria

Up to 12 km
e present on
s that have
asionally from
The Moesian
ive for shale
erous Tanda
Shale; the
Badenian to
d Jurassic E
The Silurian
Carpathian
ranges from
southwest
deep, and
Bulgaria, thic
km, but data
The other ma
petroleum s
rtion, the St
s of marl an
er Jurassic H
nating.
20
The
ed in much o
falls in the o
hrust belt (R
Oil and gas h
e Etropole F
ated rate of
ssic Dolni Da
a, Romania, Ukr
m of mostly f
n the Moesia
been discov
m basal Jura
n Platform
e gas devel
arei, Vlasin,
Bathonian (
o Sarmatian)
Etropole Sha
shale in the
Foreland B
2 to over 5
Romania, th
has about
ck (650-m),
a were not s
ain target in t
source rock
tefanetz Me
nd limestone
Haynesville S
e Etropole S
of the regio
oil window in
o
1.0% to 1.5
has been pr
Formation, su
530,000 ft
3
/
abnik fields
raine)
X-
flat-lying, ca
an Platform,
vered in this
assic sandst
contains m
opment, Fig
and Calaras
(Dogger) sh
). The main
ale.
e Moesian P
Basin furthe
5 km deep a
he Silurian L
3% TOC, F
organic-rich
ufficient to m
the Moesian
in northwes
mber, conta
e that was d
Shale.
18
TO
Shale gener
on, with an e
n the north,
5%).
22

roduced from
uch as the P
/d. In additio
has been ch
EIA/ARI W
-17
arbonate-rich
Figure X-11
s region pro
tone.
15,16

multiple orga
gure X-12.
si formations
ales (Bals F
n targets fo
Platform is b
r to the nor
across the M
Llandovery
Figures X-13
Silurian sha
map this port
n Platform is
st Bulgaria, F
ains thick, ca
eposited in
OC ranges fro
rally ranges
elevated pre
increasing t
m conventio
Peshtene R-
on, oil produ
hemically link
World Shale Ga
h Paleozoic
. The relativ
oduce mainly
anic-rich so
These inclu
s, including
Formation);
r shale gas
roadly simila
rth. Region
Moesian Plat
Shale is at
3 and X-14.
ales reported
rtion of the p
the Jurassic
Figure X-15.
arbonate-ric
a marine e
om 1.0% to
from 2.5 to
essure grad
to wet and d
nal silty, san
-5 well which
uced from th
ked back to
s and Shale Oil
c and Mesoz
vely few con
y from mid-T
ource rock
ude the Ord
Silurian sha
and Mid-Mio
exploration
ar to that ta
nal cross-se
tform. At th
least 160 m
.
17
At the B
dly are at pr
play.
c Etropole S
In particula
ch (40-50%)
nvironment,
4.6%,
19
with
o >5 km dee
dient of 0.78
dry gas in th
ndy, and ca
h reportedly
he Jurassic D
the Etropole
Resource Asses

zoic sedime
nventional o
Triassic dolo
shales that
ovician to U
ales; the Jur
ocene marls
n are the Sil
argeted in Po
ections show
he South Cra
m thick, 4,0
Bulgarian Ar
rospective de
Shale, consid
ar its organic
black shale
not dissimi
h Type II ker
ep
21
and is
8 psi/ft. The
he south nea
arbonate inte
flowed gas
Dolni Lukovi
e Shale.
ssment
entary
il and
omite
t are
Upper
rassic
s and
lurian
oland
w the
aiova
50 to
rch in
epths
dered
c-rich
e with
lar to
rogen
over-
ermal
ar the
ervals
at an
it and
X. Eastern E

June, 2013

Figur
Source: Vel

Figu
Europe (Bulgaria

re X-11: Regio
Paleoz
iciu and Popesc
ure X-12: Strat
Sourc
a, Romania, Ukr
nal Cross-Sec
oic Shale at M
cu, 2012
tigraphic Colu
ce: Sterling Reso
raine)
X-
ctions in of th
Mostly Modera
umn Showing
ources, 2013
EIA/ARI W
-18
e Moesian Pla
ate Depth with

L. Silurian Lla
World Shale Ga
atformIn Rom
h Relatively S
andovery Sha
s and Shale Oil
mania Showing
imple Structu
les in Southw
Resource Asses

g Jurassic an
re.
west Romania.

ssment
d

X. Eastern E

June, 2013

Figure
Source: Ste

Figure
Shales
Sou

Europe (Bulgaria

X-13: Well Lo
erling Resources
X-14: SW-NE
at the South C
urce: Sterling Re
a, Romania, Ukr
gs Showing P
Craio
, 2013
Trending Seis
Craiova Block
esources, 2013
raine)
X-
Paleozoic Sect
ova Block (EII
smic Line Sho
k in Southwes
EIA/ARI W
-19
tion Including
I-7) in Southw

owing Paleozo
st Romania. S
Present.
World Shale Ga
g L. Silurian Ll
west Romania.
oic Section Inc
Structure is Re
s and Shale Oil
landovery Sha
.
cluding L. Silu
elatively Simp
Resource Asses

ales at the Sou
urian Llandove
le But Faults a
ssment
uth
ery
are
X. Eastern E

June, 2013

A
TransAtla
deep acr
Shale is
dips cut b
assumed
T
rigorousl
eastern o
into the B
blocks of
sequence
a shale g

Europe (Bulgaria

Fig
Source: Tra
At the Sud
antic, the Et
ross the blo
about 3,800
by several fa
d to have rela
The eastern
y mapped.
onshore Bulg
Black Sea, F
f Proterozoic
e. On the o
gas license
a, Romania, Ukr
gure X-15: We
ansAtlantic Petro
Craiova l
tropole Sha
ock, Figure X
0 m deep, Fi
aults. Other
atively simila
continuation
Two time-
garia at two-
Figure X-18.
c basement
ther hand, t
holds pres

raine)
X-
ll log across t
oleum Ltd, Febru
icense in
le ranges fr
X-16. At th
gure X-17.
r portions of
ar structure.
n of the Jur
-structure tr
-way seismi
The Centra
blocks north
he North Bu
erved Juras
EIA/ARI W
-20
the Jurassic E
uary 2011
southwest
om 115 to o
he Lovech b
Structure is
the Moesian
rassic Etrop
ransects sug
c times of 0
al Dobrogea
h of the Pala
ulgarian Arch
sic to Tertia
World Shale Ga
Etropole Shale
Romania,
over 700 m
block in nort
fairly simple
n Platform la
pole Shale i
ggest the E
.5 to 3.0 sec
a Green Sch
azu Fault, h
h -- where C
ry sedimenta
s and Shale Oil
e in Bulgaria
operated b
thick and 3
thwest Bulga
e in this regi
acking data c
s unclear a
Etropole ma
conds, deep
hist Zone, co
as only a th
Chevron initia
ary sequenc
Resource Asses

by Sterling
3,700 to 4,5
aria the Etro
ion, with flat
control also
and could no
ay be prese
pening to the
omprising up
hin or no Jur
ally was awa
ces.
23

ssment
and
00 m
opole
lying
were
ot be
ent in
e east
plifted
rassic
arded
X. Eastern E

June, 2013

Figure X
Craiov
Source: Ste

Figu

Source: Tra

Europe (Bulgaria

X-16: Regiona
va Block in So
erling Resources
ure X-17: Juras
ansAtlantic Petro
a, Romania, Ukr
al Seismic Sec
uthwest Roma
, 2013
ssic Etropole
Petrole
oleum, 2011
raine)
X-
ction Showing
ania. The Stru
Shale is abou
eums Lovech
EIA/ARI W
-21
g Jurassic and
uctural Dip is
Present.

ut 3,800 mDee
Block in Nort
World Shale Ga
d L. Silurian L
Relatively Ge
ep with 1.0%t
thwest Bulgar
s and Shale Oil
landovery Sha
entle but Nume
to 1.3%Ro at
ria.
Resource Asses

ales at the So
erous Faults a
TransAtlantic
ssment
outh
are
c
X. Eastern E

June, 2013

Figure X
Source: Tar

3.2 R
L
1,600 mi
due to da
Depth ra
maturity
J
prospect
and sout
(gross) a
Gas reco
moderate
(R
o
1.0%
3.3 R
R
Romania
condensa
respectiv
share is e
Europe (Bulgaria

X-18: Regional
ri et al., 2011
Reservoir P
L. Silurian S
i
2
, all of whi
ata limitation
anges from 2
ranges from
Jurassic Etr
ive within an
thwest Roma
at moderate
overy rates a
e, averaging
% to 1.3%). T
Resource A
Risked, tech
a and Bulgar
ate, out of a
vely. Roma
estimated at
a, Romania, Ukr
Cross-Sectio
Bulgaria W
Properties
Shale. The m
ch is locate
ns, although
2 to 5 km. O
m wet to dry g
ropole Sha
n estimated
ania. The m
depth of abo
also could be
g about 3%
The pressure
Assessmen
nically reco
ria are estim
a risked sha
nias share
t 16 Tcf and
raine)
X-
on Showing Th
Which Thin Ma
(Prospecti
mapped pros
ed in Roman
there could
Organic-rich
gas. TOC is
ale. Black
7,940-mi
2
a
most organic
out 10,000 f
e favorable
in the more
e gradient is
nt
overable sha
mated to be
ale gas and
is approxim
0.2 billion b
EIA/ARI W
-22
hick Jurassic
rkedly to the N
ive Area)
spective are
nia. No pro
be prospec
h thickness a
s estimated a
shales in
area of the M
-rich shales
ft. Porosity
based on th
prospective
s estimated a
ale resource
47 Tcf of sh
shale oil in-
ately 30 Tcf
barrels.
World Shale Ga
Lias and Dog
North into Ro
a for black s
spective are
ctive Silurian
averages ab
at 3%, poros
the Mid-Ju
Moesian Pla
are estimat
is assumed
e inferred b
e intervals.
at 0.7 psi/ft.
es in the M
hale gas an
-place of 19
f and 0.3 bi
s and Shale Oil
ger Shale Dep
mania.
shales in the
ea was iden
n areas in no
bout 600 ft (
sity at about
urassic Etro
atform, in no
ted to total a
to be mode
rittle litholog
Thermal ma
Moesian Pla
nd 0.5 billion
96 Tcf and 1
illion barrels
Resource Asses

posits in North
e L. Silurian t
ntified in Bul
ortheast Bulg
(gross). The
t 4%.
opole Shale
orthwest Bul
about 250 m
erately high
gy. TOC app
aturity is we
atform regio
n barrels of s
10 billion ba
s while Bulga
ssment
hern
totals
lgaria
garia.
ermal
e are
lgaria
thick
(5%).
pears
et gas
on of
shale
arrels,
arias
X. Eastern E

June, 2013

S
Silurian s
of a riske
J
Jurassic
be 37 Tc
estimated
S
Pazar blo
Silurian s
to 2,800
was not p
A
have es
approxim
estimated
prospect
In
resource
26 Tcf, o
Silurian p
3.4 R
S
well has
the 4,400
January
fracturing

Europe (Bulgaria

Silurian Llan
shale of the
ed shale gas
Jurassic Etr
Etropole Sh
cf out of a ris
d at 0.4 billio
Separately, in
ock has 0.3
silty shale. T
m deep, an
possible to m
At the 1,500-
stimated tha
mately 3 Tc
d its blocks
ive resource
ndependent
es in the Silu
out of 1,295 T
potential in B
Recent Act
Several comp
been drilled
0-km
2
Novi
2012 Chev
g.
a, Romania, Ukr
ndovery Sha
Moesian Pla
s in-place of
ropole Sha
hale within th
sked shale g
on barrels of
n northeaste
to 1.0 Tm
3

The Devonia
nd have 3.5%
map this play
-mi
2
Sud Cra
at the Silur
cf (Best Es
s hold a to
es (gross; Be
researchers
urian shale o
Tcf of OGIP
Bulgaria.
26

ivity
panies have
. In June 20
Pazar bloc
vron can on

raine)
X-
ale. Risked
atform of Ro
48 Tcf.
ale. Riske
he Moesian
as in-place o
f condensate
ern Bulgaria
(11 to 35 T
an-Silurian w
% sapropelic
y due to lack
aiova license
rian shale
stimate). Inc
otal of 0.3 T
est Estimate
s in Roman
of the southe
(Mean Estim
e pursued sh
011, Chevro
k of northea
nly pursue c
EIA/ARI W
-23
, technically
mania and B
d, technica
Platform of
of 148 Tcf, w
e out of 7.9 b
, the govern
cf) of shale
was reported
c organic ma
k of data.
e in southwe
has gross
cluding the
Tm
3
(11 Tc
e).
25

nia recently
ern Romania
mate). The
hale gas lea
on received a
astern Bulga
conventional
World Shale Ga
recoverable
Bulgaria are
lly recovera
Romania a
while shale o
billion barrel
nment has e
gas resourc
d in the stud
atter with TA
est Romania
recoverable
Jurassic E
cf) of unrisk
y estimated
an portion of
Jurassic wa
asing in Bulg
a 5-year sha
aria. Howe
l targets in
s and Shale Oil
e shale gas
estimated t
able shale
nd Bulgaria
oil/condensa
ls of risked o
estimated th
ce potential
dy to be up to
AI from 2 to
a, Sterling a
e prospectiv
Etropole, T
ked, recove
the technic
f the Moesia
as not asses
garia but on
ale gas explo
ever, since t
the block w
Resource Asses

resources in
to be 10 Tcf,
resource in
are estimat
ate resource
oil in-place.
e 4,400-mi
2
in the Devo
o 2 km thick
o 5.
24
Howev
and TransAt
ve resource
ransAtlantic
erable shale
cally recove
an Platform
ssed, nor wa
ly one shale
oration perm
the shale ba
without hyd
ssment
n the
, out
n the
ted to
es are
Novi
onian-
k, 800
ver, it
tlantic
es of
c has
e gas
erable
to be
as the
e test
mit for
an of
raulic
X. Eastern E

June, 2013

U
holds a s
Moesian
was also
In
3,190-m
Jurassic
located n
in the Ju
gas show
described
fracture
Shale els
C
Dobruja
shale ga
January
Bulgarga
REFERE

1
Rudko, G.
Instrumen
February
2
Shale Ga
Overview.
3
Daborows
Status, an
4
Seghedi,
Sciences,
5
Sachsenho
125-136.
6
Koltun, Y.,
External C
7
Ionescu,
Hydrocar
Europe (Bulgaria

US-based Tr
shale gas e
Platform no
o awarded th
n November
deep Golja
Etropole Sh
near the Pes
urassic Etrop
ws (C1-C3)
d rock prope
stimulated a
sewhere on
Canadas Pa
province (bl
as at the No
2012 when
az has not di
ENCES

. and Lovyniuko
nt of Investment
14, 32 p.
s Research Gro
. Sofia, Bulgari
ki, T. and Grosz
nd Outlook. Ce
A., 2012. Pala
vol. 21, p. 669-
ofer, R.F. and K
, Espitalie, J., Ko
Carpathians and
L., Ionescu, B.
rbons Prospectin
a, Romania, Ukr
ransAtlantic
exploration li
orth of the B
e adjacent 6
r 2011 Tran
amo Peshten
hale. The R
shtene R-5 w
pole. The R
and cored 2
erties as sim
as Bulgaria
the Lovech
ark Place E
ocks Vranin
ovi Pazar fie
n the shale
sclosed any

v, V.I., 2013. S
t Proposals on
oup, 2011. Hy
a, 26 January, 4
zkowski, J., 2012
ntre for Eastern
aeozoic Format
721.
Koltun, Y.V., 201
otarba, M., Rou
the Adjacent Fo
, Marinescu, D
ng Using Integra
raine)
X-
Petroleum,
icense at th
Balkan forel
648-km
2
Koy
nsAtlantic an
ne R-11 exp
R-11 well wa
well, which h
R-11 well pe
289 m of th
milar to thos
has a ban
block where
nergy recei
no 1 to 11).
eld, also loc
e gas ban c
y shale-relate
State Classificat
Energy Resou
ydrocarbon Pote
41 p.
2. Shale Gas in
Studies, Warsaw
tions from Dobro
2. Black Shale
re, F., Ellouz, N
oreland. Journa
D., Nedelcu, M.I
ated Geophysica
EIA/ARI W
-24
through its
e 2,300-km
2
ands in nor
ynare block.
nd Canada-
ploration we
as drilled in
had flowed 5
enetrated 35
he Jurassic
se of produc
in place. T
e it is about 3
ved an exp
In June 20
cated in Do
came into
ed activity.
tion of Mineral R
rces. Black S
ential and Prosp
n Bulgaria, the C
w, Poland, 30 p.
ogea and Pre-D
es in Ukraine A
., and Kosakows
al of Petroleum G
., Balint, I., Liv
al Methods (Mag
World Shale Ga
s subsidiary
2
Lovech blo
rthwest Bulg

-based part
ell at Lovec
n 56 days an
530,000 ft
3
/d
54 m of Etro
Etropole an
ctive US sha
TransAtlanti
3,800-m dee
ploration pe
11 Chevron
obruja, but t
effect. Bul

Resources and
Sea and Caspia
pects of NE Bu
Czech Republic
.
Dobrogea An
A Review. Mari
ski, P., 1998. P
Geology, vol. 21
vanov, O., Pom
gnetotelluric Sou
s and Shale Oil
y Direct Pet
ock, located
garia. Trans
ner LNG E
h to core a
nd cost $7.5
d from a con
opole argillit
nd Ozirovo f
ale plays. T
c plans to t
ep.
27

rmit in nort
n won a tend
the permit w
lgarias stat
Reserves of Uk
an Sea Energy
ulgaria and Offs
and Romania: P
Overview. Tu
ine and Petroleu
Petroleum Gene
, p. 265-288.
marjanschi, D., a
undings, Gravity
Resource Asses

troleum Bulg
d in the sou
sAtlantic rec
nergy drilled
and test the
5 million. It
ventional int
e with nume
formations.
The well wa
test the Etro
thwest Bulga
der to explor
was cancell
te gas com
raine as an Eva
Conference, L
shore Black Sea
Political Context
urkish Journal o
um Geology, vol
eration in the Uk
and Pomarjans
y and Magnetics
ssment
garia,
uthern
cently
d the
Mid-
t was
terval
erous
LNG
as not
opole
arias
re for
ed in
mpany
aluation
London,
a An
t, Legal
f Earth
. 31, p.
krainian
chi, O.
) in the
X. Eastern E

June, 2013

External F
American
8
Saadre, T
Volynia R
9
Veliciu, S.
Assessing
10
Izart, A., B
Moscovia
11
Stephens
the Dniep
12
Stovba, S
from Regi
13
Sachsenh
Source Ro
14
Law, B.E
Evaluated
15
Barbulice
Framewor
American
16
Tari, G.,
Moesian P
Region An
17
Sterling R
18
TransAtla
19
Shale Ga
20
TransAtla
21
Zilinski, R
Petroleum
Associatio
22
LNG Ene
23
Georgiev
21, p. 723
24
Shale Ga
25
TransAtla
26
Veliciu an
27
TransAtla
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6 p.
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vol. 51, p. 47-69.
ional Gas in Ro
aphy and Seque
anerozoic Europ
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0311, Adapted
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Unconventiona
ry Article 90109
ne, October 17-1
Turkish Journal
Resource Asses

ticle 90109 (Ab
ctober 17-19.
(Volkhov-Haljala
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a Complex Geo
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1. Play Types
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al Plays in the E
9 (Abstract), Am
9.
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ssment

bstract),
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y of the
BE and
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leozoic
ed Gas
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of the
ropean
Etropole
merican
es, vol.
XI. United K

June, 2013

XI. U
SUMMA
T
resource
northern,
Kingdom
UNITED
ARY
The United K
es within Ca
, central and
Source:
D KINGD
Kingdom ha
arboniferous-
d southern p
Figure
ARI 2013.
X
DOM
as substantia
- and Juras
ortions of th
XI-1 : Shale B
EIA/ARI W
I-1
al volumes
sic-age sha
e country.
Basins in the U
World Shale Gas
of prospect
ale formation
United Kingdo
s and Shale Oil
tive shale g
ns distribute
om
Resource Asses

as and sha
ed broadly i

ssment
ale oil
n the
XI. United K

June, 2013

T
of shale
XI-1 and
place (13
estimates
intervals.

Kingdom
The risked, te
gas and 0.7
XI-2. This
34 Tcf, risk
s reflect on
.
Table XI-1
So
Table XI-2
R
e
s
e
r
v
o
i
r
echnically re
7 billion barre
is based on
ed) and 54
nly the hig
. Shale Gas R
ource: ARI, 2013
2. Shale Oil R
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R
e
s
e
r
v
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i
r
P
r
o
p
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r
t
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AverageTOC
Thermal Matu
ClayContent
R
e
s
o
u
r
c
e
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GIP Concentra
RiskedGIP (T
RiskedRecove
P
h
y
s
i
c
a
l
E
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t
e
n
t
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a
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c
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a
t
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r
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t
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ecoverable s
els of shale
n the much la
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Reservoir Prop
ARI, 2013
C
OrganicallyRich
Net
Interval
Average
ssure
(wt. %)
rity(%Ro)
ation (Bcf/mi
2
)
Tcf)
erable(Tcf)
Area(mi
2
)
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logic Age
nal Environment
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Net
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Ave
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Clay Content
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OIP Concentration
Risked OIP (B bbl)
Risked Recoverabl
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Thickness (ft)
Depth (ft)
Basin/Gros
ShaleForm
Geologic
Depositional En
EIA/ARI W
I-2
shale resour
oil and cond
arger unrisk
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ortions of t
perties and Re
perties and Re
NorthUK
Carboniferous Shale
(10,200mi
2
)
Carboniferous Sh
Carboniferous
Marine
5,100
820
410
5,000 - 13,000
8,500
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3.0%
1.30%
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117.3
125.6
25.1
Ju
ganically Rich
t
erval
erage
e
%)
(%Ro)
n (MMbbl/mi
2
)
)
le(B bbl)
(mi
2
)
ss Area
mation
c Age
nvironment
World Shale Gas
rces of the U
densate in tw
ked estimate
ace (17 bill
the Carbon
esources of th
esources of th
Region
So
Jurassic
(3,
hale Li
L.
0 4,0
N
M
As
South UK
urassic ShaleRegi
(3,470mi
2
)
Lias Shale
L. Jurassic
Marine
1,735
165
149
4,000 - 6,000
5,000
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3.0%
0.85%
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Oil
30.9
17.1
0.69
s and Shale Oil
U.K. are est
wo assessed
es of 623 Tc
lion barrels,
iferous and
he United Kin

he United King

outh UK
c ShaleRegion
,470mi
2
)
as Shale
Jurassic
Marine
1,735
165
149
00 - 6,000
5,000
Normal
3.0%
0.85%
Medium
soc. Gas
14.5
8.0
0.6
on
Resource Asses

timated at 2
d regions, Ta
cf of shale ga
risked). T
d Jurassic s
gdom
gdom
ssment
6 Tcf
ables
as in-
These
shale
XI. United K

June, 2013

In
in the B
However
EIA/ARIs
2011 ass
C
complex,
Pennine
wells wh
of the N
southern
S
drilling h
hydraulic
Following
shale ex
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Cuadrilla
INTROD
W
and sha
industry,
gas pric
condition
shale we
commerc
P
than in F
shale pro
vertical w
shale de
fracturing
Kingdom
nitial explora
owland Sub
r, production
s current es
sessment, w
Compared w
, while drilli
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ich cored th
North UK Ca
England in
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have not ev
cally stimula
g an 18-mon
xploration a
er 2012, al
a Resources
DUCTION
Within Europ
le oil poten
the UK has
es are high
ns are much
ells are more
cial levels of
Political oppo
France or G
oduction tes
wellbore was
posits in the
g for a period
ation drilling
b-basin in th
n testing has
stimate of the
while new sha
with North A
ing and com
of the coun
he Carbonife
arboniferous
the Wessex
g is still at a
en been at
ated triggere
nth moratori
are small a
beit with st
, IGAS, Dart
pe, the Unite
ntial. Howe
s limited do
h (~$9/MMB
h more comp
e costly to d
f shale produ
osition to sh
Germany. H
st well trigge
s deformed.
e UK (and ge
d of eighteen
X
has confirme
he west po
s not yet occ
e UKs shale
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America, the
mpletion co
ntrys most p
erous Bowla
s Shale reg
x and Weald
an early ph
ttempted. I
ed a series
ium, the gov
nd manage
tricter moni
t Energy, an
ed Kingdom
ever, with a
mestic serv
Btu) in the
plex. Faults
drill. While
uction are ye
hale develop
Hydraulic fra
ered small lo
This is per
enerally in E
n months to
EIA/ARI W
I-3
ed the prese
rtion of the
curred and t
e gas resou
tial has bee
e shale geo
sts for shal
prospective a
nd Shale. O
gion and the
basins, Figu
ase in the
n a tempor
of minor e
vernment co
eable. Sha
toring contr
d others.
stands nex
small exis
vice sector c
UK compa
s are numer
the UKs sh
et to be esta
pment is gre
cturing got
ocal earthqu
rhaps unsurp
Europe). The
better evalu
World Shale Gas
ence of thick
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the other sh
rces is abou
n added.
ology of the
le wells are
areas, has b
Other prosp
e liquids-ric
ure XI-1.
UK flow t
rary setback
earthquakes
oncluded tha
ale drilling w
rols. Curre
xt after Pola
sting onshor
capability for
ared with N
rous, geolog
hale resourc
ablished.
eater in the
off to an ab
akes during
prising given
e governme
uate the risks
s and Shale Oil
k, gas-bearin
Basin of nor
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ut 10% high
e UK is co
e substantia
been tested
ective areas
ch Jurassic
testing and
k, the first s
s related to
at the enviro
was allowe
ent shale o
nd in pursu
re conventio
r shale expl
North Americ
gic data con
ce base app
UK than in
bysmal start
g fracture sti
n the highly
nt banned o
s.
Resource Asses

ng shale dep
rthwest Eng
remain und
er than our
onsiderably
ally higher.
with five ve
s include the
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horizontal s
shale well t
o a nearby
onmental ris
ed to resum
operators in
ing its shale
onal oil and
loration. Na
ca, but geo
trol is weak
pears substa
Poland but
t. The UKs
mulation an
faulted natu
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ssment
posits
gland.
rilled.
initial
more
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ertical
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shale
to be
fault.
sks of
me in
clude
e gas
d gas
atural
ologic
k, and
antial,
t less
s first
d the
ure of
raulic
XI. United K

June, 2013

In
to groun
Preese H
mining.
time they
approval
delayed
C
(PEDL) b
types of
developm
Currently
potential
date of w
A
two have
Resource
drilling a
the pres
encounte
nearby,
attempte
Energie,
but have

Kingdom
n January 20
dwater and
Hall-1 well w
What's more
y reach the s
for shale
its plan to re
Companies w
by the UK go
f petroleum
ment is sub
y there are a
. Proprietar
well completi
At least six o
e actually d
es, partly (4
nd coring fo
ence of up
ered active
coring the 1
d in the UK
Dart Energ
nt yet drilled
012 the Briti
earthquake
were comp
e, they origi
surface.
1
In
exploration,
esume fractu
which have b
overnment a
m resources
bject to nec
about 334 o
ry shale dat
on.
il and gas co
drilled shale
43%) owned
our shale ex
to 2-km of
faults and h
1,600-ft thic
K, nor have
y, and Eden
d.

X
sh Geologic
es had been
parable in s
nate much d
n December
, albeit with
ure stimulatio
been granted
are permitted
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cessary nati
onshore PED
ta typically a
ompanies ar
e wells. A
d by Austral
xploration we
f gas-bearin
high-stress
ck Bowland
flow tests b
n Energy als
EIA/ARI W
I-4
cal Survey n
n exaggerat
size to the f
deeper in th
2012 the U
h strict mon
on until 2014
d a Petroleu
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onal, coalbe
onal and lo
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re targeting
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ian drilling c
ells in the W
ng organic-ri
conditions.
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been reporte
so are evalu
World Shale Gas
oted that the
ted. Minor
frequent min
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K governme
nitoring con
4 at the earli
um Explorati
and develo
ed methane
ocal consen
ch several d
nfidential for
shale gas e
ve been ve
company AJ
West Bowlan
ich shale.
IGAS Ene
orizontal sha
ed. Coasta
uating their
s and Shale Oil
e risks of sh
earthquake
nor quakes
have all but d
ent finally gra
nditions. C
iest.
on and Dev
p shale gas
e, tight ga
nt and plan
ozen have r
r a four-year
exploration in
ertical. UK-
J Lucas, is
nd Sub-basi
However, a
rgy has dril
ale wells ha
al Oil and G
UK shale re
Resource Asses

hale develop
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caused by
dissipated b
anted condit
Cuadrilla rec
elopment lic
, as well as
as, etc.).
ning permis
recognized s
r period from
n the UK but
-based Cua
the most a
in that confi
at least one
lled a shale
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as Ltd., Ce
esource pote
ssment
pment
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coal
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tional
cently
cense
other
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ssion.
shale
m the
t only
adrilla
ctive,
irmed
e well
e well
been
ltique
ential
XI. United K

June, 2013

GEOLO
A
main stra
of Carbo
Geologic
presente
fields an
reservoir
outcrops
B
conducte
estimate
DECC, p
in 2013,
T
conventio
resource
shale exp
N
b
c
B
B
G
a
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e
p
la

Kingdom
OGIC OVER
As early as t
atigraphic ta
oniferous and
cal Survey (
ed an integra
nd source ro
r.
4
In 2010 B
and conven
BGS publish
ed on behalf
was 5.3 Tc
plans to relea
followed eve
The main on
onal or sha
e assessmen
ploration reg
North UK Ca
basins and t
contain pros
Bowland Sh
Bowland, C
Gainsboroug
area to unde
South UK Ju
extend offsho
prone. Whi
argest onsho
RVIEW
the late 198
rgets for sha
d Jurassic a
BGS) and p
ated review
ock shales,
BGS publish
ntional petro
ed its preli
f of the Dep
cf (150 Bcm)
ase an upda
entually by a
nshore sedim
ale exploratio
nt groups th
gions:
arboniferou
troughs is pr
spective org
ale. Within
leveland, C
gh, Midland
ergo shale ex
urassic Sha
ore into the
ile no shale
ore oil field a

X
80s research
ale gas explo
age.
2
,
3
More
published by
w of the geo
although it
hed a compi
leum wells.
5
minary eval
partment of
) of recovera
ated evaluati
a more comp
mentary bas
on potential
hese numer
us Shale Re
resent acros
ganic-rich sh
n the greate
Cheshire, W
Valley, as w
xploration dr
ale Region.
English Cha
e drilling ha
and appears
EIA/ARI W
I-5
hers at Impe
oration in the
e recently in
y the UK D
ology of Brit
was not as
ilation of sha
5

luation of U
Energy and
able shale g
ion of shale
plete nationa
sins in the
l are shown
rous, typica
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ss northern
hales of Ca
r Pennine B
West Lancas
well as othe
rilling to date
In southern
annel. They
s occurred
s highly pros
World Shale Gas
erial College
e UK, the m
n 2003, a stu
Department o
tains onsho
sked to con
ale-specific
UK shale ga
Climate Ch
gas resource
gas potentia
al estimate.
7
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n in Figure
lly fault-bou
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England and
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here yet, t
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roduce oil a
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unded basin
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age, includ
idual sub-ba
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shale oil dev
Resource Asses

had identifie
sited black s
ted by the B
nd Industry
onal oil and
as a produ
ata collected
es later in 2
CC).
6
BGS
n association
est England
and gas or
current EIA
ns into two
solated struc
Scotland. T
ding notably
asins include
East Midla
-basin is the
and Weald b
hales that ar
ncludes Bri
velopment.
ssment
d the
hales
British
(DTI)
d gas
uctive
from
2010,
initial
n with
d later
have
A/ARI
main
ctural
These
y the
e the
ands,
e only
asins
re oil-
tains
XI. United K

June, 2013

It
structure
series of
Wessex
Carbonife
significan
structura
the UK (
slow the

Source: Brit

T
Mississip
organic-r
Cambria
study du
complexi
were exc
sufficient
shale for
Kingdom
is importan
es, such as f
f small fault-
Basin in
erous-Namu
ntly faulted,
l complexity
(particularly
pace of sha
Figure XI-2
H
tish Geological S
The main str
ppian (Lower
rich, marine-
n and the U
ue to their
ity. In parti
cluded beca
tly brittle. H
rmations to b
nt to note th
found in ma
-bounded su
the south
urian and Ju
to an exte
y, coupled w
in the troug
ale exploratio
: Regional Cr
ighlighting Ca
Survey, 2012
ratigraphic t
r Namurian)
-deposited s
. Jurassic O
low therma
icular, organ
ause these
However, fu
be prospectiv
X
hat the UK
ny North Am
ub-basins. F
to the Bo
rassic shale
nt generally
with the relat
ghs), makes
on, de-risking
oss-Section fr
arboniferous-N
targets for s
8
and the Lo
shales, Figur
Oxford and K
al maturity,
nic-rich shal
non-marine
urther data c
ve in places
EIA/ARI W
I-6
shale basin
merica shale
Figure XI-2 s
owland Sub
e targets. Ev
y not display
ively small d
s resource a
g, and comm
romWessex B
Namurian and

shale explor
ower Jurass
re XI-3. Oth
Kimmeridge C
lower orga
les found w
shales are
collection an
.
World Shale Gas
ns generally
e regions, bu
shows a reg
b-basin in
ven the inter
yed on sche
data base o
assessment
mercial deve
Basin Through
d Jurassic Sha
ration in the
ic Lias forma
her potential
Clays, but th
anic content
within the Ca
coaly, high
nd mapping
s and Shale Oil
y are not si
ut rather typ
gional cross-
the north,
rior of the su
ematic cros
f onshore pe
more difficu
elopment in t
h Bowland Su
ale Targets
e UK are th
ations, both
l shale targe
hese were e
t, and/or ex
arboniferous
h in clay, an
g may revea
Resource Asses

imple contin
ically compr
-section from
highlighting
ub-basins ma
ss-sections.
etroleum we
ult. It also
the UK.
ub-basin
he Carbonife
of which co
ets include th
excluded from
xtreme struc
s Coal Meas
nd unlikely t
al these or
ssment
nuous
rise a
m the
g the
ay be
The
ells in
could
erous
ontain
he U.
m our
ctural
sures
to be
other
XI. United K

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Fig

T
North Am
and degr
has not
assessed

Kingdom
gure XI-3: Stra
The Low
The BGS has
merican geo
ree of struct
been succe
d in the EIA/
atigraphic Col
wer Jurassic L
Source: Smit
s cited the M
logic analog
ural complex
essful to da
/ARI study d

X
lumn Showing
Lias And Carb
th et al., 2010
Middle Cam
g for Cambri
xity. Howev
ate. The C
ue to their s
EIA/ARI W
I-7
g UK Formatio
boniferous Sha

mbrian Conas
an shale de
ver, shale ga
Cambrian-ag
structural com
World Shale Gas
ons That Cont
ales Appear M
sauga Shale
eposits in the
as developm
ge shale de
mplexity and
s and Shale Oil
tain Organic-R
Most Prospect

e in Alabam
e UK, given
ment in the C
eposits in th
d lack of geo
Resource Asses

Rich Shales.
tive.
ma as the clo
their simila
Conasauga S
he UK were
ologic data.
ssment
osest
r age
Shale
e not
XI. United K

June, 2013

SEISMIC
T
fracturing
However
North Am
suspecte
In
Preese H
fracture
downhole
continued
relatively
was repo
months t
A
and the f
fault plan
seismic,
running
several h
T
data, wa
Bowland
American
unclear w
C
the hydra
fault to s
caused t
earthqua
considere
Kingdom
C HAZARD
The UK shale
g operation o
r, it is notew
merica durin
ed seismic ev
n August 20
Hall-1 vertica
stimulated d
e injection z
d for severa
y small, mea
orted. How
o determine
An evaluation
fault geomet
ne. The su
Figure XI-4
casing in th
hundred feet
The maximu
as determine
Shale -- ab
n shale play
whether the
Cuadrillas co
aulic stimula
slip and gen
the wells ca
ake in the B
ed too small
DS
e industry e
of a shale w
orthy that no
g the past d
vents are un
10 Cuadrilla
al well in the
during early
zone. The t
al hours afte
suring magn
wever, the U
e the cause o
n of seismic
try of the ba
spected fau
4.
9
Separat
he well -- in
t of the 5.5-in
m horizonta
ed to be re
out 4,000 ps
ys, which typ
high stress d
onsultants c
ation overca
nerate small
asing string
owland Sub
l to cause si
X
experienced
well unexpec
one of the a
decade have
nder review.
a drilled the
e Bowland S
2011, induc
timing of the
er injection c
nitudes of 2.
UK governm
of the seism
ity from thes
asin indicated
ult was locat
tely, beddin
nduced well
nch casing.
al stress gra
elatively high
si -- was fou
pically have
differential is
oncluded th
ame the roc
earthquake
to deform.
b-basin was
gnificant dam
EIA/ARI W
I-8
a serious s
ctedly genera
approximatel
e generated

UKs first s
Sub-basin ne
cing severa
e earthquake
ceased. Fo
3 and 1.5 on
ent shut do
ic events an
se earthquak
d that move
ted on the w
g plane slip
bore damag
adient, base
h at 1.25 p
und to be an
stress differ
s local or wid
at excess fl
ck friction co
es. Simultan
Based on
estimated t
mage to surf
World Shale Gas
etback in 20
ated a serie
y 50,000 ho
significant e
shale gas ex
ear Blackpoo
l dozen sma
es correspo
ortunately, th
n the Richte
own shale te
nd to develop
kes generat
ment was st
wells image
p -- already
ge, with ova
ed on mini-
psi/ft. The s
order of ma
rentials of on
dely prevale
uid pressure
ontaining thi
neously, bed
fault size a
to be appro
rface structu
s and Shale Oil
011, when t
es of very sm
orizontal sha
earthquakes
xploration w
ol, Lancashi
all earthqua
nded with fl
he largest e
er scale. No
esting in th
p mitigation
ted by the P
trike-slip alo
e log as we
y noted in c
al deformati
-frac and bo
stress differ
agnitude hig
nly several h
ent across th
e exerted on
s stress, wh
dding plane
and geometr
oximately ma
res in this re
Resource Asses

the first hyd
mall earthqua
ale wells drill
s, although a
well, spuddin
re. The wel
akes close t
luid injection
arthquakes
o surface dam
e country fo
rules.
Preese Hall-1
ong a sub-ve
ell as on det
core cut pri
on noted ac
orehole brea
rential within
her than in N
hundred psi.
he UK.
n the fault d
hich enable
e slip up the
ry, the maxi
agnitude 3.0
egion.
ssment
raulic
akes.
led in
a few
g the
l was
o the
n and
were
mage
or 18
1 well
ertical
tailed
ior to
cross
akout
n the
North
. It is
during
d the
e hole
imum
0, still
XI. United K

June, 2013

Source: de

T
induced f
the thick
report re
seismicit
A
May 201
conducte
health an
G
g
to
s
a
Kingdom
Figu
Pater and Baisc
The consulta
fracture syst
k and imperm
commended
y.
10

As a result o
11 until Dec
ed a review
nd safety du
Groundwate
roundwater
o identify pos
hould be mo
quifers.
ure XI-4: Seism
Near The
ch, 2011
ants also infe
tem and did
meable Bow
d monitoring
of the earthq
cember 201
of the risks
ring shale de
er Monitorin
ahead of sh
ssible natura
onitored and
X
mic Reflection
Preese Hall-1
erred that th
not leak into
wland Shale
g during hyd
quakes the g
12. The R
, recommen
evelopment:
ng. The BGS
hale develop
al methane c
remediated
EIA/ARI W
I-9
n Line Showing
Well In The B

he injected f
o the shallow
and overly
raulic fractu
government
oyal Societ
nding the fol
:
11

S should con
ment, while
concentratio
d to prevent f
World Shale Gas
g Suspected
Bowland Sub-b
frac fluid re
w freshwate
ing Permian
uring operati
halted shal
ty and Roya
llowing three
nduct region
operators co
ons in ground
fracture fluid
s and Shale Oil
Active Faults
basin
mained con
er aquifer sys
n anhydrites
ons to help
e operations
al Academy
e primary st
nal baseline
onduct site-s
dwater. Aba
ds from ente
Resource Asses

ntained withi
stem, becau
s. A subseq
mitigate ind
s in the UK
y of Engine
teps for ens
surveys of
specific surv
andoned we
ering freshwa
ssment
n the
use of
quent
duced
from
eering
suring
veys
lls
ater
XI. United K

June, 2013

W
m
fr
M
st
s
st
A
shale de
potential
individua
earthqua
should s
time to d
the new
would be

1. N
1.1 In
N
isolated b
These sh
deposited
BGS, the
T
far, is on
Basin. F
Southern
Northum
troughs c
single reg
T
Kingdom
Well Integrity
multiple layer
reshwater aq
Mitigating Se
tresses, and
ite-specific s
timulation, w
After conside
evelopment
seismic haz
al well site
akes due to
ignificant ea
drill shale we
shale rules
e delayed un
NORTH UK
ntroduction
Northern Eng
basins and t
hale-prospec
d or has be
ese troughs c
The Bowland
ne such trou
Further to th
n North Se
berland, Eas
containing C
gion for sha
The western
y. Well des
rs of steel an
quifers.
eismicity. T
d seismic haz
surveys. Se
which should
ering these a
starting De
zards posed
area, and
hydraulic fra
arthquake ris
ells in the U
. Hydraulic
ntil 2014 at th
CARBONI
n and Geo
gland and so
troughs whic
ctive lows a
en eroded.
cover a tota
d Sub-basin
ugh, represe
he east the
ea gas ba
st Midlands,
Carboniferou
le resource
portion of
XI
ign, construc
nd cement a
The BGS sh
zards ahead
ismicity sho
d be shut dow
and other vie
ecember 20
d by hydraul
propose m
acturing. A
sks arise. T
K. Cuadrilla
c stimulation
he soonest -
IFEROUS S
logic Setti
outhern Scot
ch contain th
are separate
Based on
l area of app
of Lancashi
enting the o
Cleveland
asin. In
, Pennine, G
us-age shale
assessment
the Bowlan
EIA/ARI W
-10
ction, and in
re present to
ould survey
d of shale de
uld be monit
wn if seismic
ews, DECC
012. The r
lic fracturing
mitigation ste
real-time trig
These rules a
as Annas R
of this wel
-- would requ
SHALE RE
ng
tland are cha
hick, organic
ed by structu
mapping of
proximately
re, where sh
onshore ma
Basin is co
between l
Gainsboroug
es. Our stud
t.
nd Sub-bas
World Shale Gas
ntegrity testin
o preclude le
the regiona
evelopment,
tored before
c risks beco
put in place
regime requ
g, implement
eps to mini
gger is to be
are expecte
Road-1 well
l -- which C
uire further s
EGION
aracterized
c-rich Carbo
ural highs w
Carbonifero
10,000 mi
2
.
hale drilling
argin of the
onsidered th
lay the Ch
gh, Midland V
dy grouped
sin has bee
s and Shale Oil
ng should en
eakage of flu
al distribution
while opera
e, during, an
me unaccep
e a new regu
uires opera
t seismic mo
imize the c
e installed to
d to add sig
is the first t
Cuadrilla rec
specific appr
by a comple
oniferous sha
where Carbo
ous basins c
has been c
petroliferou
he onshore
heshire, W
Valley, and
these isolat
en the site
Resource Asses

nsure that
uids into
n of faults,
ators conduc
d after hydra
ptable.
ulatory regim
tors to eva
onitoring of
chance of f
o cut off inje
gnificant cos
to be spud u
cently annou
rovals.
ex assembla
ales, Figure
niferous wa
conducted b
concentrated
s East Irish
extension o
West Lancas
other basins
ted basins i
of all UK s
ssment
ct
aulic
me for
aluate
each
future
ection
st and
under
unced
age of
XI-1.
as not
by the
d thus
h Sea
of the
shire,
s and
nto a
shale
XI. United K

June, 2013

exploratio
about 2.0
XI-6. Cu
Bowland
shale, Fig
as well a
organic-r
Note, ho
tends to
T
control th
basins, F
gamma s
Bowland
E
fields in
overall a
organic-r
mudston
T
The Crav
over 5 k
turbidite
Namuria
of the Pe
Namuria

Kingdom
on drilling to
0 to 2.5 km
uadrillas Pr
Shale at a
gure XI-7. T
as its organ
rich shale ra
owever, that
be thinner th
The eastern B
han the wes
Figure XI-9.
shales range
and Holywe
Elsewhere in
the souther
verage TOC
rich portion.
es in the UK
The Pennine
ven Group (
km thick in
and hemip
n shale units
ennine Basi
n marine sha
o date. The
deep acros
reese Hall-1
measured d
The BGS ha
ic-rich (high
anges up to
petroleum w
han in the tro
Bowland Sh
st. Here the
Dart Energ
es up to 110
ell shales wit
the region,
rn East Irish
C of 2.1% (r
Clay conte
K generally a
Basin has r
(Mississippia
the Widmer
elagic envir
s (local nam
n have high
ales genera

XI
Carbonifero
ss the mode
1 well encou
depth of 6,8
s mapped th
h-gamma) se
120 m thick
wells are pr
oughs.
ale play exte
e shale rang
gy reported
0 m thick. I
th TOC up to
the Namur
h Sea as w
range 0.7%
nt is uncerta
average arou
relatively goo
an) ranges f
rpool Gulf.
ronments in
mes Bowland
h TOC and
lly have rich
EIA/ARI W
-11
ous Bowland
rately faulte
untered the
854 ft and pe
he thickness
ection, acro
k but more ty
referentially
ension in the
ges up to 3
that the mo
n the Chesh
o 5% occur a
ian Holywell
well as the F
to 5%) and
ain, although
und 25% Al
2
od geologic
from about 1
These mud
relatively n
d, Edale, Ho
are known
TOC in exc
World Shale Gas
d Shale is th
ed Bowland
top of the
enetrated a
s of the Uppe
ss northern
ypically is re
drilled on s
e Gainsboro
00 m thick
ost organic-r
hire Basin th
at depths of
l Shale, sou
Formby oil f
averages 3
h public data
2
O
3
(range 1
control from
1.5 km thick
dstones we
narrow, dee
olywell shale
to have sou
cess of 4%.
s and Shale Oil
he main targ
Sub-basin,
target Lowe
total 2,411
er Bowland S
England, F
ecorded as 2
structural hig
ough Basin h
in the Dinan
rich portion
he Carbonife
f 1 to 5 km, F
urce rock for
field, is repo
3.0% TOC in
a indicate th
2-38%), mo
m past petrol
k in the Cra
ere deposite
ep depocen
es, top part o
urced hydro
Resource Asses

get, ranging
Figures XI-5
er Carbonife
ft of organic
Shale Forma
Figure XI-8.
20 to 40 m
ghs, where s
has less geo
ntian half-gr
defined by
erous (Namu
Figure XI-10
r convention
orted to hav
n its lower,
hat Carbonife
stly from cla
leum explora
ven sub-bas
d in distal s
nters. The
of Craven G
ocarbons. T
ssment
from
5 and
erous
c-rich
ation,
The
thick.
shale
ologic
raben
high-
urian)
0.
nal oil
ve an
more
erous
ay.
ation.
sin to
slope
early
roup)
These
XI. United K

June, 2013

Source: Sou
Figure
B
Source: IGA

Kingdom
Figure XI-5:
Showi
urce: IGAS Ene
e XI-6: Structu
Bowland Shale
Sug
AS Energy, 2012
Structural Cr
ng Numerous
rgy, 2012
ural Cross-Sec
e At 2 To 3 Km
ggest That Ma
2; modified from

XI
oss-Section in
s Faults Acros
ction In The B
mDepth. Addi
any Additiona
m BGS Map 96_L
EIA/ARI W
-12

n the Bowland
ss the Cuadrill

Bowland Sub-b
itional Faults P
l Faults Are P

Liverpool
World Shale Gas
d Sub-basin R
la and IGas En
basin Region
Penetrated By
Present But Un
s and Shale Oil
Region, Northw
nergy License
Showing The
y The Ince Ma
nrecognized.
Resource Asses

west UK
es.
Highly Faulte
rshes Well
ssment
ed
X

J

XI. United Kingdom

June, 2013
Figure XI-7: Str
Pr
Source:
atigraphic Column
reese Hall-1 well in
de Pater and Baisch
n and Composite
n the Bowland Su
h, 2011

Log for the Cuadr
b-Basin
XI-13
rilla Figu
Northe
Petroleu
Source: S

EIA/ARI W
re XI-8: Thickness
ern England, as W
umWells Tend to b
May be T
Smith et al., 2010
World Shale Gas and
s of the Upper Bo
Well as the High-Ga
be Drilled on Stru
Thinner Than in th
owland Shale Form
amma Thickness.
uctural Highs Whe
he Troughs.
e Assessment

mation in
Note That
ere the Shale
XI. United K

June, 2013

Figure X
Source: Dar

Figure XI-
(
Kingdom
XI-9: Schemat
rt Energy, 2013
-10: Geologic
(Namurian) Bo
tic Cross-Sect
Additional F
Map and Gen
owland and Ho
Sou
XI
tion Across Th
Faults Are Lik
neralized Struc
olywell Shales
urce: DECC, 20
EIA/ARI W
-14
he Gainsboro
kely To Be Pre

ctural Cross-S
s with TOC Up
12
World Shale Ga
ough Trough S
esent But Not S
Section of the
p to 5%Occur
s and Shale Oil
Showing Thick
Shown.
Cheshire Bas
r at Depths of
Resource Asses

k Bowland Sha
sin. Carbonife
1 to 5 km.
ssment
ale.
erous
XI. United K

June, 2013

T
example
gamma s
3.63% TO
known to
present l
N
borehole
Paleozoi
considera
T
stretches
northwes
series o
evaluatin
igneous
T
thick, Fig
depositio
comprisin
sandston
Oil shale
clastic re

Kingdom
The North U
, the Norma
sections wit
OC with 1.2
o be within
ocally but co
No porosity d
es drilled by
c shales r
ably lower (p
The Midland
s across so
st and the S
f small fau
ng shale ga
intrusion dur
The MVB con
gure XI-11.
1
onal sequen
ng upward
ne.
14
Lower
e, buried dee
eservoirs of s
UK Carbonif
anby-1 and G
thin the Bow
6% R
o
at a
the dry gas
ould not be d
data are av
the BGS in
retained hig
perhaps 3-5
Valley Basi
outhern Sco
Southern Up
ulted sub-ba
as resources
ring late Car
ntains a rela
3
Namurian
nce reflects
-coarsening
Carbonifero
eply in the M
similar age in

XI
ferous Shal
Grove-3 con
wland Shale
depth of 2,2
s window. O
defined with
ailable for N
the souther
gh porositie
%) at typica
in (MVB), a
otland, is b
pland Fault
asins, such
s. This str
rboniferous t
atively comp
n strata ran
s mixed m
g cycles o
ous (Dinanti
Midlothian-Le
n the adjace
EIA/ARI W
-15
e region is
nventional pe
, while the
246 m.
12
In
Oil and wet
the limited d
Namurian sh
rn Midlands
es (5-10%).
l target shale
large east-
bounded by
to the south
as the Kin
ructural com
to early Perm
lete sequenc
ge from 45
marine shelf
of marine
an) oil-shale
even Synclin
ent anticlines
World Shale Ga
s mainly in
etroleum we
Scaftworth-
addition, mo
gas therma
data availab
hales in the
, relatively s
However
e depth of 2
northeast tr
the Highla
heast. The
nkardine Ba
mplexity was
mian time.
ce of Carbo
0 m to 1,40
f carbonate
limestone,
e source roc
e generated
s.
s and Shale Oil
the dry ga
ells reported
B2 well mea
ost of the Cl
al maturity w
ble.
e Pennine B
shallow (900
r, porosity
2-4 km.
rending grab
and Bounda
MVB comp
asin where
s over-print
oniferous dep
00 m thick
e and delta
mudstone
cks, such as
d waxy crude
Resource Asses

as window.
ly recorded
asured 2.07
leveland Ba
windows ma
Basin. Base
0 m deep) U
is likely to
ben complex
ary Fault to
prises a com
Dart Energ
ted by exte
posits up to
at outcrop.
aic success
, siltstone
s the Mid-Lo
e oil that sou
ssment
For
high-
7% to
sin is
ay be
ed on
Upper
o be
x that
o the
mplex
gy is
nsive
6 km
The
sions,
and
othian
urced
XI. United K

June, 2013

1.2 R
T
is approx
only half
unfaulted
(and loca
region, w
much low
the dry g
Kingdom
Figure XI-1
Sh
Source: Under
Reservoir P
The total map
ximately 10,2
f of the total
d (4,635 mi
2
)
al equivalent
with 3.0% av
wer than the
as window (
11: Geologic M
hales Crop Ou
rhill et al., 2009
Properties
pped deep C
200 mi
2
. Be
l area was a
). The targe
ts) averages
verage TOC.
e 5-10% me
(R
o
1.3%), a
XI
Map of the Mid
ut at the Surfa
(Prospecti
Carboniferou
ecause of str
assumed to
et lower orga
s about 300
Porosity is
easured at s
lthough less
EIA/ARI W
-16
dland Valley B
ace but May Re

ive Area)
us area in th
ructural com
be in the p
anic-rich por
ft thick and
s estimated t
hallow <1 k
s mature poc
World Shale Ga
Basin. Carbon
each Prospec
he North UK
mplexity and
prospective
rtion of the B
8,000 ft dee
to be about
km depth. T
ckets in the w
s and Shale Oil
niferous (Nam
ctive Depth.
K Carbonifero
poor depth c
depth windo
Bowland and
ep in the Bo
4% at targe
Thermal mat
wet gas wind
Resource Asses

murian)
ous Shale re
control was
ow and rela
d Holywell s
owland Sub-
et depths of 3
turity is main
dow may ex
ssment
egion
poor,
atively
hales
basin
3 km,
nly in
xist.
XI. United K

June, 2013

1.3 R
R
Shale reg
1. The
significan
F
in-place
core from
total sha
Cuadrilla
estimate
organic-r
S
area with
eight con
shale ap
licenses
D
32.46 Tc
as well
recovery
reported
on a th
estimated
Broxburn
1.4 R
T
shale exp
totaling 1
(11 licens
Kingdom
Resource A
Risked, tech
gion are est
play has a
nt thickness
or comparis
within its Bo
m two shale
ale gas reso
as estimate
is based on
rich section a
Separately, I
hin an avera
nventional p
praisal well
to be about
Dart Energys
cf of GIP in u
as 30.55 Tc
estimate w
that the com
ird-party co
d at 115 B
n Shale (Bes
Recent Act
The Bowland
ploration we
1185 km
2
; 4
ses; 1041 km
Assessmen
nically reco
imated to be
favorable n
of organic-r
son, in Septe
owland Sub-
and three co
ource-in-plac
is that 10%
n the entire
as the prosp
GAS Energ
age 250-m th
petroleum w
last year, IG
9.2 Tcf.
s third-party
unspecified s
cf of shale
was reported
mpanys PED
onsultant re
cf in the C
st Estimates;
ivity
d Sub-basin
ells drilled to
wells), IGA
m
2
).
XI
nt
verable sha
e 25 Tcf, out
net resource
ich shale.
ember 2011
-basin licens
onventional
ce concentr
or about 20
shale sectio
pective interv
ys indepen
hick organic
wells that pe
GAS estimat
consultant
shale forma
gas GIP in
d.
16
Finally
DL 133 licen
eport. Rec
arboniferous
; net to Dart)
, the only a
o date. The
AS Resource
EIA/ARI W
-17
ale gas reso
t of a risked
e concentrat
Cuadrilla R
ses to be ap
petroleum w
ration at its
Tcf may be
on, whereas
val.
ndent consu
c-rich interva
enetrated the
ted the shale
NSAI has es
tions in the
n the Chesh
, in Scotlan
nse has an e
coverable p
s Black Me
).
active shale
main operat
es (14 licens
World Shale Ga
ources in th
shale gas i
tion of abou
Resources e
pproximately
wells.
15
The
Preese Ha
e recoverable
EIA/ARI co
ltant identifi
al, constrain
e Bowland
e gas in-pla
stimated tha
Gainsborou
hire Basin (
nds Midland
estimated 2.5
rospective
etal Shale a
drilling reg
tors are Cua
ses; 1363 km
s and Shale Oil
he North U
n-place of 1
ut 117 Bcf/m
estimated th
y 200 Tcf, ba
e company h
all-1 well to
e. It appear
onsiders only
ed a 1,195-
ed by geoph
Shale. Afte
ce (GIP) res
at Darts lice
gh Trough o
(gross, Best
d Valley Bas
5 Tcf of shal
shale gas
and 255 Bcf
ion in the U
adrilla Reso
m
2
; 1 well),
Resource Asses

K Carbonife
26 Tcf, Tab
mi
2
, reflecting
e total shale
ased on logs
has estimate
be 539 Bc
rs that Cuad
y the lower,
-km
2
prospe
hysical logs
er drilling its
sources with
enses have s
of East Midla
t Estimate).
sin, Dart En
le gas GIP b
resources
f in the Lot
UK, has had
urces (4 lice
and Dart En
ssment
erous
le XI-
g the
e gas
s and
ed the
cf/mi
2
.
rillas
most
ective
from
s first
hin its
some
ands,
No
nergy
based
were
thian-
d five
enses
nergy
XI. United K

June, 2013

In
the Pree
of the ta
6,854 ft.
Bowland
A
stimulate
attempt t
the well
with no g
In
Worston
zones, o
separate
sand pro
typical st
10% of th
C
2010 the
depth int
well logg
C
abandon
in Janua
depth of
IG
and gas
portfolio
Point of
thickness
Kingdom
n August 20
ese Hall-1 ve
arget Lower
The well
is within the
After drilling
ed the well in
to produce s
by the hydra
gas productio
n completing
Shale, and
out of 12 o
ed by bridge
oppant, was
timulation of
he sand volu
Cuadrilla dril
e nearby Gra
terval of 1,2
ed shale fro
Cuadrillas m
ed at a dept
ry 2013 and
about 3100
GAS Energy
fields, is ev
of UK coalb
Ayr acreag
s of more th
10 Cuadrilla
ertical well i
Carbonifero
penetrated
e dry gas the
was compl
n early 2011
shale gas. A
aulic fractur
on reported.
g the well, C
Hodder Mu
originally pla
e plugs. The
relatively lar
f a horizonta
ume).
led and cor
ange Hill-1 v
00 m to 3,3
om depths of
most recent s
th of 2,000 f
d completed
m.
y Plc, 24.5%
valuating the
bed methan
ge has shal
an 800 ft. I
XI
a drilled the
n the Bowla
ous Bowland
a total 2,41
ermal maturi
eted on the
1. This oper
As previous
e stimulation

Cuadrilla per
udstone at d
anned, were
e total stimu
rge for a vert
al shale well
red two othe
vertical well
300 m, the t
f 2,450 m to
shale well in
ft due to drill
in about fou
% owned by
e shale gas
ne licenses
e extending
GAS Energy
EIA/ARI W
-18
first shale g
and Sub-bas
d Shale was
1 ft of orga
ity window.
e Preese H
ration repres
ly discussed
n. Operatio
rforated sha
depths rang
e individuall
ulation size,
tical shale w
in North Am
er vertical w
logged over
total depth o
3,100 m, the
n the Bowlan
ing problem
ur weeks, wi
Nexen and
potential of
in March 20
g over the e
y noted that
World Shale Ga
gas explorat
sin near Blac
s encounter
anic-rich sha

all-1, Cuadr
sented the U
d, small eart
ons at the w
le formation
ging from 7,
y stimulated
, over 50,00
well but still c
merica (abou
wells in the
r 2 km of Ca
of the well.
e total depth
nd Sub-bas
ms. The well
ith the top B
the UKs la
its blocks.
011. The c
entire block
a significan
s and Shale Oil
ion well in t
ckpool, Lanc
red at a me
ale. Natura
rilla comple
UKs first an
thquakes we
well were hal
ns within the
670 to 8,94
d with a sa
00 bbl of wa
considerably
ut half the w
Bowland Ba
arboniferous
In 2011 the
h of the well.
in, the Anna
l was expect
Bowland Sha
rgest onsho
IGAS had a
company rep
k with an ex
nt proportion
Resource Asses

he UK, spud
cashire. Th
easured dep
ally fractured
eted and fra
nd only conc
ere induced
lted in May
e Bowland S
49 ft. Five s
and/water s
ater and 400
y smaller tha
water volume
asin. Durin
shale acros
e Becconsh
.
as Road-1,
ted to be re-
ale predicted
ore operator
acquired Ne
ported that
xpected ave
of its acrea
ssment
dding
e top
pth of
d, the
acture
certed
near
2011
Shale,
shale
slurry,
0 t of
an the
e and
ng 2H
ss the
hall-1
, was
-spud
d at a
of oil
xens
at its
erage
age in
XI. United K

June, 2013

the north
the east
In
Bowland
deepene
5,200 ft.
ranging f
window (
D
UK, inclu
the coun
operators
consultan
which ap

Region.
km
2
. NS
Estimate
horizonta
388 km
2

D
announc
Lothian S
M
Gas Ltd
Bristol, a
party con
includes
However

Kingdom
hwest Englan
within PEDL
n 2011-12 I
Sub-basin.
ed and enco
The Bowla
from 1.2% t
(R
o
1.0-1.1%
Dart Energy
uding the we
try. Darts
s Composite
nt NSAI has
pproximately
No sh
Dart Energy
SAI has est
). Houston
al well by 20
of shale-pro
Dart Energy,
ed firm plan
Shale interva
Much further
. jointly cont
and Kent. Pr
nsultant to
806 km
2
w
r, this region
ndfrom El
L 193is co
GAS drilled
Originally
ountered the
and Shale, e
o 6.9% (ave
%).
17

, based in A
estern Penni
14 PEDLs w
e and Green
s estimated
30.5 Tcf is
hale drilling
y holds the l
timated that
-based eCO
014 to farm
ospective are
, the only
ns for shale
al in this reg
to the south
trol 2100 km
rospective re
be 18.3 Tcf
within 7 PED
was not ass

XI
lesmere Po
nsidered to
the Ince M
y intended a
e upper two-
estimated at
erage 2.7%)
Australia and
ine Basin, b
with shale p
npark Energ
these block
located in th
has occurr
argest land
Darts bloc
ORP Interna
into one of
ea in 9 licens
active shale
e drilling. B
ion.
h, Australia-b
m
2
of shale g
ecoverable s
f out of a to
DLs in South
sessed by E
EIA/ARI W
-19
rt in the wes
have shale
Marshes-1 w
as a shallow
-thirds of the
t 1,600-ft to
). Thermal
d Singapore,
ut has not y
potential, par
y, total abo
ks hold app
he western P
ed yet on t
position, a t
cks hold abo
ational, LLC
Darts block
ses in this re
e operator
G Group re
based Eden
gas and coa
shale gas re
otal 49.8 Tc
h Wales wit
EIA/ARI beca
World Shale Ga
st in PEDL 1
potential.
well to a to
w coalbed
e Bowland
otal thicknes
maturity ap
, holds a sig
yet drilled for
rt of its acqu
ut 3,700 km
roximately 6
Pennine Bas
the eastern
total of 13 lic
out 47.6 Tc
has comm
ks. Separat
egion.
in the Midl
emains a joi
Energy and
albed metha
esources we
cf of GIP (g
th potential
ause of limite
s and Shale Oil
190 to the T
otal depth o
methane te
Shale at de
ss, had gas
peared to b
gnificant sha
r shale there
uisitions of c
m
2
in gross a
65 Tcf of to
sin (gross, Be
side of the
censes cove
cf of shale G
itted to drill
tely, IGAS e
land Valley
nt-venture p
d UK-based
ne potential
re estimated
gross; Best
in the Nam
ed publicly a
Resource Asses

Trafford Cen
of 5,714 ft in
st, the well
epths of 4,2
shows and
be in the we
ale position i
e or elsewhe
coalbed met
area. Third-
tal shale GI
est Estimate
e Bowland S
ering about 1
GIP (gross,
ing and cor
estimates it
Basin, has
partner on D
Coastal Oi
in South W
d by Edens
Estimate).
murian Meas
available dat
ssment
tre in
n the
was
00 to
TOC
et gas
in the
ere in
thane
-party
IP, of
e).
Shale
1,235
Best
ring a
holds
s not
Darts
l and
Wales,
third-
This
sures.
ta.
XI. United K

June, 2013

2. S
2.1 In
T
oil-produ
and Trias
The Wes
onshore
T
and intra
offshore
Sussex,
boundary
depositio
sandston
Cretaceo
F
Jurassic
Wessex
assessed
T
other UK
plays. W
separate
grabens

sediment
depths o
spaced a
strata dip

Kingdom
SOUTH UK
ntroduction
The Wessex
cing area.
ssic clastic
ssex Basin h
field, wherea
The Wessex
a-basinal hig
areas. The
Surrey, and
y is indistin
on. They
nes, and lim
ous Wealden
or the purpo
oil-prone sh
Basin may
d.
18

The structura
K shale regi
While not inte
ed by norma
(Pewsey, M
Figure XI-12
tary rocks is
f about 7,00
about 5 to 1
p quite gently
JURASSIC
n and Geo
and Weald
Both basins
and carbon
hosts the 50
as the Weal
Basin comp
ghs, located
Weald Bas
d Kent. The
nct and the
contain rep
estones wh
n Group.
ose of this
hale resourc
exist further
al geology of
ons, althoug
ensively def
al faults. F
ere-Portsdo
2 shows th
s present in
00 ft or more
0 km apart,
y, only a few

XI
C SHALE R
logic Setti
basins regio
s produce oi
ate reservoi
00 million bb
d Basin has
prises a serie
mainly in H
in is a bette
e basins are
e two basin
peating cyc
ich are over
study, the W
ce region.
r to the wes
f the Wesse
gh still more
formed, thes
For example
own, Dorset a
at roughly
n the Weald
e along the b
and seemin
w degrees.
EIA/ARI W
-20
REGION
ng
on of southe
il and some
irs which we
bl Wytch Fa
s several mu
es of post-Va
Hampshire a
r defined an
e separated
s were inte
les of Jura
rlain by larg
Wessex and
Additional J
st (e.g., Bris
x and Weald
e complex a
se basins co
e, the Wess
and Channe
10,000-ft th
d Basin. Lo
basin axis. I
ngly allow a
World Shale Ga
rn England
e natural gas
ere sourced
arm oil field,
ch smaller o
ariscan exte
and Dorset
nd structurall
by the Ham
ermittently c
assic shallo
gely non-ma
d Weald bas
Jurassic sha
stol Channe
d basins is s
and faulted
omprise a se
sex Basin c
el).
ick of Lowe
ower Jurass
nterior faults
mple room
s and Shale Oil
is the UKs p
s from conv
d by Jurassi
, by far the
oil fields.
ensional sed
and extend
ly simpler sy
mpshire-Diep
connected d
ow-water m
rine sedime
sins are con
ale areas w
l Basin), bu
somewhat s
than North
eries of indiv
comprises fo
er Carbonife
sic organic-r
s appear to
for shale de
Resource Asses

principal ons
entional Jur
c marine sh
countrys la
dimentary tro
ing into adja
yncline locat
ppe High, bu
during Mes
arine mudr
ents of the L
nsidered a s
with affinity to
t these wer
simpler than
American s
vidual sub-b
our smaller
erous to Te
ich shales r
be relatively
evelopment.
ssment
shore
rassic
hales.
argest
oughs
acent
ted in
ut the
ozoic
rocks,
Lower
single
o the
re not
most
shale
asins
half-
ertiary
reach
y few,
The
XI. United K

June, 2013

Source: DT

H
detailed
wells, sh
offshore
located in
T
carbonat
this regio
settings
of northe
Kingdom
Figure
Weal
TI, 2003
However, clo
cross-sectio
ows a serie
setting sout
n a separate
The Jurassic
tes with subo
on are seve
(immature e
ern England
XI-12: Geolog
ld Basin. Low
se-spaced d
on of the so
es of closely
th of Wytch
e fault block.
section com
ordinate san
eral Jurassic
elsewhere),
and Scotlan
XI
gic Map and G
wer Jurassic S
drilling often
outhern port
spaced fau
oil field ran
Further dri
mprises an a
ndstones. T
c-age shale
in contrast w
nd.
EIA/ARI W
-21
Generalized St
Shales Occur a
reveals the
tion of the W
lts, Figure X
nges from 4,
lling is likely
alternating s
The main sou
e formations
with the mos
World Shale Ga
tructural Cros
at a Depth of a
presence o
Wessex Ba
XI-13. The d
,000 to 5,00
y to discover
sequence of
urce rocks a
, which are
stly dry-gas
s and Shale Oil
ss-Section of t
about 7,000 ft
of additional
asin, constra
depth to the
00 ft. Note
r additional f
organic-rich
and potentia
e mainly oil-
prone Carb
Resource Asses

the
.
faults. Inde
ained by mu
e Lias (JB) in
how each w
faults.
h mudstones
al shale targe
-prone in de
boniferous s
ssment
eed, a
ultiple
n this
well is
s and
ets in
eeper
hales
XI. United K

June, 2013

Figure XI
South o
Well i
Source: Un

T
plant), a
depende
increases
rank for s
T
as the m
limestone
isotopic c
of the Lo
sapropel
considera
T
recorded
was note
the Lias
marginal
Kingdom
-13: Structura
of Wytch Oil Fi
s Located in a
nderhill and Pate
The Lias, Kim
nd II/III (mi
ent upon the
s towards th
shale oil exp
The Lower Li
main shale
es. Lower
character of
ower Liassic
ic oil-prone
able, the eas
The Arreton
d oil-prone th
ed at Pensh
is within the
ly gas-prone
al Cross-Secti
ield, Showing
a Separate Fa
erson, 1998
mmeridge, an
xed or deg
e complex s
he centers o
ploration.
as Clays (L
target, con
Lias shales
conventiona
c, indicating
kerogen de
stern Weald
2 well, a k
hermal matu
urst in the c
e oil window
e in the Pew
XI
on of a 9-Mile
Depth to the
ult Block and
nd Oxford cl
raded) kero
tructural evo
of the Wess
. Jurassic), t
nsists of int
s contain 0.
al oils in the
close sour
erived from
d Basin appe
key data po
urity of 0.8%
central Wea
across muc
wsey Sub-Ba
EIA/ARI W
-22
Long Portion
Lias (JB) Ran
Further Drillin
ays contain
ogen source
olution of th
sex and We
the most im
terbedded s
5% to 2.1%
Weald Basi
ce rock gen
marine plan
ears to have
oint located
% to 0.9% R
ld Basin. T
ch of the We
sin.
World Shale Ga
n of the Wesse
nging from4,0
ng is Likely to
Types II (al
es. Thermal
he basins.
eald basins,
portant sour
shales, mud
% TOC, rea
in (35-42 A
nesis. Orga
nkton.
19
Wh
lower TOC.
south of th
R
o
in the Lias
Thermal mat
essex-Chann
s and Shale Oil
ex Basin, Loca
000 to 5,000 ft
o Discover Ad
gal saprope
maturity is
In general,
where it re
rce rock in th
dstones, ma
ching as hi
API gravity) m
anic matter
hile vertical
.
he Isle of W
s. Similar o
turity modeli
nel Basin, pe
Resource Asses

ated Offshore
t. Note HowE
ditional Faults
elic), III (terre
s highly var
thermal ma
eaches adeq
he region as
arls and m
gh as 7%.
matches with
is predomin
TOC variati
Wight mono
oil-prone ma
ng indicates
erhaps beco
ssment
e Just
Each
s.
estrial
iable,
aturity
quate
s well
micritic
The
h that
nantly
ion is
cline,
aturity
s that
oming
XI. United K

June, 2013

S
20% TOC
shales (i
sandston
occasion
produced
Clay is c
northernm
organic-r
Kimmerid
P
Carbonife
mudston
30-40%.
porosity,
2.2 R
T
Organic-
in the P
reaches
zone is e
is likely
measure
33C/km
A
the Wess
coccolith
Bakken S

Kingdom
Secondary po
C) in the Up
ncluding oil
nes and silt
nally even 20
d 1,000 ft
3
/d
considered t
most axial p
rich, reachin
dge and Oxf
Porosity and
erous beca
es encounte
However,
perhaps 7%
Reservoir P
The Lias sha
rich thicknes
aris Basin,
20
6,000 ft in t
estimated to
to be highe
d at shallow
.
Although not
sex and We
ic carbonate
Shale in Nor
otential exis
pper Jurassic
shales), ca
tstones. Th
0%. Britain
from an uns
thermally im
part of the
ng 10% TO
ford clays we
permeabilit
ause they h
ered in shall
Jurassic sh
%.
Properties
ales averag
ss of the mo
0
is estimat
the Weald B
average 3%
er than olde
w locations
assessed, t
ald basins, i
es which ar
rth Dakota.

XI
ts in the Ox
c. The Upp
alcareous m
he TOC of
s first natur
stimulated K
mmature in t
Wessex-Ch
OC, but like
ere excluded
ty of the Ju
have not b
ow (<30 m)
ales buried
(Prospecti
e about 60
ost oil-satura
ted at appro
Basin, avera
% but could
er Carbonife
near outcro
the Jurassic
is notable fo
re somewha
EIA/ARI W
-23
xford (up to 1
per Jurassic
udstones, in
some thin
ral gas well,
Kimmeridge
the Wessex
annel Basin
ewise is the
d from our e
urassic shal
een subjec
engineering
at depths o
ive Area)
0 thick (gro
ated and brit
oximately 16
aging about
be consider
erous shales
op.
21
The c
c Kimmeridg
or containing
at similar to
World Shale Ga
12% TOC) a
Kimmeridge
nterbedded
black shale
drilled in 18
Clay section
x-Weald reg
n. The Upp
ermally imm
evaluation.
les are like
ct to as m
g boreholes
of 1-5 km ar
oss) in the
ttle zones, b
65 ft, Figure
5,000 ft dee
rably higher
s, but lowe
current aver
ge Clay, ano
g thin limesto
the lithology
s and Shale Oil
and Kimmer
e Clay consi
micritic lime
es frequentl
895 at Heat
n. However
ion, apart p
per Jurassic
mature. Co
ely to be hig
uch compa
have poros
re likely to h
Wessex an
based on an
e XI-14. D
ep. TOC of
. Porosity,
er than the
rage geothe
other potenti
one stringers
y of the car
Resource Asses

ridge clays (
ists of altern
estones, and
ly reaches
thfield in Su
, the Kimme
possibly from
c Oxford Cl
onsequently
gher than in
action. Jur
sities in the r
have much
d Weald ba
alysis of the
Depth to the
f the prospe
estimated a
30-40% po
ermal gradie
al source ro
s. These inc
rbonate-rich
ssment
(up to
nating
d thin
10%,
ssex,
eridge
m the
lay is
y, the
n the
rassic
range
lower
asins.
e Lias
Lias
ective
t 7%,
rosity
ent is
ock in
clude
Mid-
XI. United K

June, 2013

Source: M.

2.3 R
T
The pros
excluded
issues. O
risked, te
0.6 Tcf o
C
ranges f
estimated
125 millio

Kingdom
Fig
Mullen, Realm E
Resource A
The Wessex
spective area
d due to po
Out of a risk
echnically re
of associated
Celtique Ene
from 9,000
d that the L
on barrels of
ure XI-14: Log
as a Proxy
Energy, 2011
Assessmen
and Weald b
a was estim
otential fault
ked shale oi
ecoverable re
d shale gas,
ergie has re
to 13,000
Liassic could
f oil and 10 T

XI
g Suite Showi
y for the Wess
nt
basins exten
ated to be h
ting, shallow
l in-place of
esources ar
Tables XI-1
eported that
ft deep wit
d have mean
Tcf of shale
EIA/ARI W
-24

ng the Jurass
ex-Weald Sha

nd over an o
half of total a
w depth, ero
f 17 Bbbl an
re estimated
and XI-2.
t the Liassic
thin a 467-
n recoverab
gas.
World Shale Ga
sic Lias In the
ale Region in t
onshore area
area (1,740 m
osion of the
nd risked sha
to be 0.7 b
c Shale at
-km
2
prospe
ble shale oil
s and Shale Oil
Paris Basin,
the UK
a of approxim
mi
2
), with th
e Lias, and
ale gas in-pl
billion barrels
their Weald
ective area.
and shale g
Resource Asses

mately 3,500
e remaining
d surface ac
lace of 8 Tc
s of shale oi
d Basin lice
The com
gas resourc
ssment
0 mi
2
.
area
ccess
cf, the
il and
enses
mpany
ces of
XI. United K

June, 2013

2.4 R
P
Basin, Ea
licenses
potential
shale dri
REFERE

1
New Scien
2
Selley, R.C
3
Selley, R.C
4
UK Depart
British Ge
5
Smith, N.,
S.C., eds.
Geologica
6
UK Depart
Britains O
7
Stephenso
8
Waters, C
Successio
9
De Pater,
for Cuadri
10
Green, C
Mitigation
11
The Roy
Fracturing
12
Dart Ener
13
Underhill
Petroleum
14
Waters, C
15
AJ Lucas
16
Dart Ener
17
IGas Ene
18
Underhill,
Key Struc
Kingdom
Recent Act
Privately held
ast Midlands
covering 1
in the Jura
lling has bee
ENCES

ntist Fracking R
C., 1987. Britis
C., 2012. UK S
tment of Trade a
eological Survey,
Turner, P., and
., Petroleum Geo
al Society of Lon
tment of Climate
Onshore Basins
on, M., Geologic
C.N., Browne, M
ons of Great Brit
D.J. and Baisch
illa Resources, L
C.A. and Styles,
. Report for Cu
yal Society and
g. June, 76 p.
rgy, Corporate P
l, J.R., Monagh
m Prospectivity in
C.N., Browne, M
Group Limited,
rgy, Quarterly Re
rgy, Corporate P
, J.R. and Pater
ctures along the
ivity
d Celtique E
s, and the W
,000 sq km
assic Liassic
en reported.

isk is Exaggerat
h Shale Gas Pot
Shale Gas The
and Industry, 200
, 93 p.
d Williams, G.. 2
ology: From Mat
don, p. 1087-10
e Change (DECC
Shale Gas. R
al Society, Lond
M.A.E., Dean,
tain (Onshore).
, S., 2011. Geo
Ltd., November 2
P., 2011. Pr
uadrilla Resource
Royal Academy
Presentation, Ma
han, A.A., and
n the Midland Va
.A.E., Jones, N.S
News Release,
eport, June 30, 2
Presentation, Jun
rson, S., 1998.
PurbeckIsle of
XI
Energie hol
Weald Basin
m. The com
c shales, as
ted. 11 January
tential Scrutinize
Story So Far.
03. The Hydroc
2010. UK Data
ture Basins to N
098.
C), December 2
Report prepared
don, Presentation
M.T., and Pow
British Geologic
omechanical Stu
2, 71 p.
reese Hall Shale
es Ltd., April 201
y of Engineerin
rch 1, 2013.
Browne, M.A.E
alley of Scotland
S., and Somervi
September 22, 2
2012, 18 p.
ne 2012, 22 p.
Genesis of Tec
Wight Disturban
EIA/ARI W
-25
ds licenses
. In the We
mpany claim
well as con
y 2012.
ed. Oil and Gas
Marine and Petr
carbon Prospect
a and Analysis fo
ew Frontiers. P
2010; updated 20
by the British G
n on Shale Gas,
ell, J.H., 2007.
cal Survey, Rese
udy of Bowland S
e Gas Fracturin
12, 26 p.
g, 2012. Shal
E., 2008. Con
. Marine and P
lle, I.D., 2012.
2011.
ctonic Inversion
nce. Journal of
World Shale Ga
in three are
eald Basin, C
s to have
nventional p
s Journal, June
roleum Geology
tivity of Britains
or Shale Gas Pr
Proceedings of th
012. The Unco
Geological Surve
, 60 minutes.
Lithostratigra
earch Report RR
Shale Seismicity
ng Review & Re
le Gas Extractio
ntrols on Struct
Petroleum Geolo
Midland Valley o
Structures: Seis
the Geological S
s and Shale Oil
eas of the U
Celtique has
unconventio
potential in t
15, p. 62-64.
, vol. 31, p. 100-
Onshore Basins
rospectivity. In:
he 7th Petroleum
onventional Hydr
y, 40 p.
aphical Framew
R/07/01, 60 p.
y: Synthesis Rep
ecommendation
on in the UK: a
tural Styles, Ba
ogy, vol. 25, p. 10
of Scotland. Ch
smic Evidence f
Society, London
Resource Asses

UK: the Che
s a 50% sha
onal oil and
the Triassic
-109.
s. Report prepa
Vining, B.A. Pic
m Geology Confe
rocarbon Resou
work for Carbon
port. Report pr
s for Induced S
a Review of Hy
asin Developme
000-1022.
hapter 14, 10 p.
for the Developm
n, vol. 155, p. 97
ssment
eshire
are in
d gas
. No
ared by
ckering,
erence,
urces of
niferous
repared
Seismic
ydraulic
ent and

ment of
5-992.
XI. United K

June, 2013

19
Stoneley,
Ussher So
20
Mullen, M
21
Smith et a
Kingdom

R. 1992. Revi
ociety, vol. 8, p.
M., Realm Energy
al., 2010.

ew of the Habita
1-6.
y, 2011. Shale
XI

at of Petroleum i
Oil The Next B
EIA/ARI W
-26

n the Wessex B
Big Play for Tigh
World Shale Ga

Basin: Implication
ht Oil? January
s and Shale Oil

ns for Exploratio
y 30, 27 p.
Resource Asses

n. Proceedings
ssment

s of the
XII. Spain

June, 2013

XII. S
SUMMA
T
rich Jura
Ebro (So
have loca
the 2% c
Sou

SPAIN
ARY
The Basque-
ssic-age sha
olsona) Basi
al potential f
cut-off used i
urce: ARI, 2013
-Cantabrian
ales with po
n, located to
for shale gas
n this study
Figure XII-

XI
Basin, locat
tential for we
o the south a
s and oil. H
and thus wa
-1. Selected S
EIA/ARI W
II-1
ted in northe
et gas and c
and east of
owever, the
as not quant
Shale Gas and
World Shale Ga
ern Spain, c
condensate,
the Basque
e shale in the
titatively ass
d Oil Basins of
s and Shale Oil
contains a s
Figure XII-1
-Cantabrian
e Ebro Basin
sessed.
f Spain
Resource Asses

series of org
1. In addition
Basin, may
n has TOC b
ssment
ganic-
n, the
y also
below
XII. Spain

June, 2013

T
estimated
technical
contains
as the ris
Table XI
Source: AR

INTROD
T
western
and rese
matter w
T
and Plie
extension
Bakken S
oil and ga
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sR
A
T
C
R
e
s
o
u
r
c
e
G
G
R
R
P
h
y
s
i
c
a
l
E
x
t
e
n
t
P
T
D
B
a
s
i
c
D
a
t
a

The Jurassic
d 42 Tcf o
lly recoverab
nearly 3 bil
sked, technic
II-1. Shale Ga
Resour
I, 2013
DUCTION
The Jurassic
portion of th
ervoir proper
ith TOC valu
The shales in
ensbachian-a
n. The sha
Shale of the
as expulsed
Or
Ne
Int
Av
Reservoir Pressur
AverageTOC (wt.
Thermal Maturity
Clay Content
Gas Phase
GIP Concentration
Risked GIP (Tcf)
Risked Recoverab
ProspectiveArea
Thickness (ft)
Depth (ft)
Basin/Gro
ShaleFor
Geologic
Depositional E
c-age (Liass
of risked sh
ble shale ga
llion barrels
cally recover
as Reservoir P
rces of Spain
c-age rocks
he basin, pr
rties of thes
ues (in imma
n the Lower
age) were
ales are inte
Williston Ba
from the ma
B
rganically Rich
et
terval
verage
S re
%)
(%Ro)
n (Bcf/mi
2
)
ble(Tcf)
(mi
2
)
oss Area
rmation
c Age
Environment
XI
ic) marine s
hale gas res
as resource
of risked oi
rable shale o
Properties and
of the Basq
roviding acc
e shales. A
ature sample
r Jurassic C
deposited
erbedded wi
asin (USA),
aturing shale
Basque-Cantabrian
(6,620mi
2
)
Jurassic
L. - M. Jurassic
Marine
2,100
600
150
8,000 - 14,500
11,000
Slightly Overpress
3.0%
1.15%
Medium
Wet Gas
49.8
41.8
8.4
EIA/ARI W
II-2
shale in the
source in-p
, Table XII-
il/condensat
oil resource,
d Table
Source: A
que-Cantabr
cess to valua
Analysis of r
es) of up to 2
Comino and
under deep
thin limesto
may provide
es.
1
,
2

n
.
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
R
e
s
o
u
r
c
e
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
World Shale Ga
e Basque-Ca
lace, with a
-1. In addit
te in-place, w
, Table XII-2
e XII-2. Shale
Reso
RI, 2013
rian Basin c
able informa
rock sample
25%.
1

Castillo Pe
p marine c
ones and ma
e additional f
Reservoir Pres
AverageTOC (
Thermal Matur
Clay Content
Oil Phase
OIP Concentra
Risked OIP (B
Risked Recove
ProspectiveAr
Thickness (ft)
Depth (ft)
Basin/G
ShaleF
Geolo
Depositiona
s and Shale Oil
antabrian Ba
about 8 Tc
ion, the Jur
with about 0
2.
Oil Reservoir
ources of Spa
crop out in
ation on the
es indicates
edroso forma
conditions fo
arls which,
flow and sto
Organically Rich
Net
Interval
Average
ssure
(wt. %)
rity (%Ro)
ation (MMbbl/mi
2
)
bbl)
erable(B bbl)
rea(mi
2
)
Gross Area
Formation
ogic Age
al Environment
Resource Asses

asin contain
cf as the ris
rassic Lias S
0.1 billion ba
r Properties an
ain
the eastern
e geologic se
Type I/II org
ations (Toar
ollowing tec
much like i
orage capaci
Basque-Cantab
(6,620mi
2
)
Jurassic
L. - M. Jurass
Marine
2,100
h 600
150
8,000 - 14,50
11,000
Slightly Overpre
3.0%
1.15%
Medium
Condensate
3.4
2.9
0.14
)
ssment
ns an
sked,
Shale
arrels
nd
n and
etting
ganic
rcian-
ctonic
n the
ity for
brian
sic
00
ess.
e
XII. Spain

June, 2013

1. B
T
of Spain
Cantabria
that hold
Jurassic
1.1 G
J
significan
Jurassic.
western
Lias Sha
prospect
So

BASQUE-C
The Basque-
. The basin
an Sea on th
organic-rich
(Liassic) sha
Geologic Se
Jurassic Sh
nt, thick blac
. We have m
portion of th
ale on the n
ive area, Fig
Figure
ource: ARI, 2013
ANTABRIA
Cantabrian
n is bounded
he north. Th
h shales of S
ales appear
etting
hales. The
ck shales of
mapped a 2,
his geologica
north and s
gure XII-2.
3

XII-2. Prospe
3
XI
AN BASIN
Basin cover
d by faults a
he Basque-C
Silurian-Ordo
to offer the
e Basque-C
Jurassic-ag
100-mi
2
high
ally complex
south and th
ective Area of
EIA/ARI W
II-3
rs a large 6
and thrusts o
Cantabrian B
ovician, Jura
most potent
Cantabrian B
e, including
her quality p
x basin. We
he 400-m g
f Jurassic Sha
World Shale Ga
,620-mi
2
are
on the east
Basin contai
assic and Cr
tial.
Basin conta
the Lias Sh
prospective a
e used inform
gross Jurass
ale, Basque-C
s and Shale Oil
ea along the
, west and s
ins a sequen
retaceous ag
ains a seri
hale at the b
area for the
mation on th
sic interval
Cantabrian Bas
Resource Asses

e northern b
south and b
nce of forma
ge. Of these
es of regio
ase of the L
Lias Shale i
he erosion o
to establish
sin
ssment
order
by the
ations
e, the
onally
Lower
in the
of the
h our
XII. Spain

June, 2013

A
Figure X
of Jurass
provides
south-we
Sourc

A series of in
II-3 provides
sic black sh
the location
estern end o
Figure XII-3
ce: Quesada, S.,
nterbedded b
s two region
ales in the
n of these tw
f cross-secti
3. Cross-Sect
, 2005.

XI
black shales
nal cross-sec
prospective
wo cross-sec
ion B to B.
tions Through
EIA/ARI W
II-4
s and carbo
ctions, A to
area of the
ctions and id
h Prospective A
World Shale Ga
nates exists
A and B to
e basin. Fig
dentifies the
Area of Basqu
s and Shale Oil
s within the
B, identifyi
gure XII-2, s
key Cadials
ue-Cantabrian
Resource Asses

Jurassic inte
ng the sequ
hown previo
so-1 well nea
n Basin
ssment
erval.
uence
ously,
ar the
XII. Spain

June, 2013

1.2 R
J
to 12,000
gross thi
thermal m
9,500 ft
Jurassic
F
values fo
area nea

Reservoir P
Jurassic (Lia
0 ft, provide
ckness of 2
maturity (R
o
with a gross
Shale has a
igures XII-4
or the Juras
ar the Polient
Figu
Properties
assic) Shale
ed valuable
280 ft with a
o
) of 1.2%.
s thickness
a TOC of abo
and XII-5 p
ssic (Pliensb
te-Tudanca
ure XII-4. TOC

XI
(Prospecti
es. The Ca
information
a net thickne
The well al
of 400 ft an
out 2% and
provide addi
bachian) Lia
Trough.
4
,
5
,
6
C Values in th
EIA/ARI W
II-5
ive Area)
adialos-1 we
on the org
ess of 30 to
so intersect
nd a net thi
a thermal m
tional inform
as Shale in
e Pliensbachi
World Shale Ga
ll (shown on
ganic-rich Lia
o 50 ft, TOC
ted a shallow
ckness of a
maturity (R
o
) o
mation on th
the norther
ian Interval of
s and Shale Oil
n Cross-Sec
as Shale. T
C values of
wer Jurassic
about 100 ft
of 1.1%.
e TOC and
rn portion of
f the Jurassic
Resource Asses

ction B-B), d
The shale h
2% to 4% a
c Shale at a
. This shal
thermal ma
f the prospe
ssment
drilled
has a
and a
about
lower
aturity
ective
XII. Spain

June, 2013

1.3 R
T
prospect
Bcf/mi
2
o
T
shale ga
we estim
shale gas

Figu
Resource A
The entire pa
ive area of
of wet shale
The risked re
s and 3 billi
mate risked, t
s and 0.1 bil
ure XII-5. TOC
Assessmen
ackage of J
the Basque
gas and 3 m
esource in-p
ion barrels o
technically re
llion barrels
XI
C Values in th
nt
Jurassic sha
e-Cantabrian
million barrels
place within
of shale con
ecoverable r
of shale con
EIA/ARI W
II-6
e Pliensbachi
ales, includin
n Basin has
s/mi
2
of shal
the prospec
ndensate. B
resources fr
ndensate.
World Shale Ga
ian Interval of
ng the Lias
s a resource
le condensa
ctive area is
Based on mo
rom these Ju
s and Shale Oil
f the Jurassic

Shale, with
e concentra
ate.
s estimated
oderate rese
urassic shale
Resource Asses

hin the 2,10
ation of abou
at 42 Tcf o
ervoir prope
es of 8 Tcf o
ssment
0-mi
2

ut 50
of wet
erties,
of wet
XII. Spain

June, 2013

1.4 R
S
Basque-C
oil and g
basin. In
Leon and
H
a USD $
activities

Recent Act
Several com
Cantabrian B
as concessi
n addition, B
d hopes to s
HEYCO Ener
$138 million
or results o
ivity
panies hold
Basin. For e
ons in Spain
BNK Petrole
pud an expl
rgy and Cam
exploration
f this explora
XI
leases and
example, Sa
n) has two c
um has a 38
oration well
mbria Europe
program in
ation progra
EIA/ARI W
II-7
d are active
an Leon Ene
concession a
80,000-acre
in this area
e, along with
n 2011.
8
No
m.
World Shale Ga
ely exploring
ergy (who ac
areas, totalin
e Jurassic Sh
during 1Q 2
h the Basqu
o further info
s and Shale Oil
g the Jurass
cquired Real
ng over 210
hale conces
2013, pendin
ue Energy B
formation is
Resource Asses

sic Shales i
m Energy a
,000 acres i
ssion in Cas
ng approval.
7
oard, annou
available o
ssment
n the
nd its
in the
tillo y
7

unced
n the
XII. Spain

June, 2013

2. O
O
interval,
Spain in
total of 2
Sueve F
Asturias
N
recorded
Based o
Paleozoi
gas and
C
Formatio
based on
program
this initia
Valmase
averages
3. E
T
Basin in
based on
identified
thermal m
However
the Ebro

OTHER SHA
Ordovician a
a major sou
outcrops an
24 new sam
Formation w
and Leon du
Nineteen of
d a TOC ab
on the result
c (Ordovicia
oil. As such
Cretaceous
on contains t
n a study of
has been pr
al shale ga
da Formatio
s only about
EBRO BAS
The Ebro (S
the northea
n 30 older pe
d a shale se
maturity rang
r, because t
Basin were
ALES OF T
and Silurian
urce rock in
nd borehole
mples of the
was gathered
uring May 20
the twenty-f
bove 2%. In
ts of this g
an and Siluri
h, these shal
Shales.
the Enara S
13 wells in t
roposed.
10
H
as assessm
on and the
1%. As suc
IN
olson) Basi
ast portion o
etroleum we
equence at 1
ging from 1%
he TOC of t
excluded fro

XI
THE BASQ
n Shales.
the Middle
s. To furthe
e Lower Silu
d from twel
010.
9

four sample
n addition,
eochemical
an) shales i
les were exc
The thick
Shale, which
the Gran En
However, no
ment. San
Enara Shale
ch, these sh
n is located
of Spain. Th
ells, twelve o
1,650 to 4,00
% to 2% R
o
,
these shale
om further a
EIA/ARI W
II-8
QUE-CANTA
The presen
East and No
er assess th
urian Formig
ve different
es had TOC
the remainin
work, the i
n this part o
cluded from
Cretaceous
h hold an es
nara field in
o details in th
Leon Ener
e indicates t
ales were ex
d to the sou
he shale po
of which pene
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s averages
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4
World Shale Ga
ABRIAN BA
ce of the O
orth Africa, h
he resource
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t outcrop lo
C values les
ng kerogen
investigators
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stimated 185
northern Sp
he TOC or o
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that the TO
xcluded from
uth and eas
tential in thi
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4

s and Shale Oil
ASIN
Ordovician an
has been w
potential of
ation and M
ocations in t
ss than 1%
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s concluded
have poor p
essment.
9

an-Cenoman
5 Bm
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Resource Asses

nd Silurian s
ell establish
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the province
and no sa
mostly inert
d that the L
potential for s
nian) Valma
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ties accompa
terization o
p to 3.6% lo
sessment.
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s been evalu
ection. The
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es of
ample
inite.
9

Lower
shale
aseda
e gas
ration
anied
f the
ocally,
abrian
uated
wells
and a
ndow.
les in
XII. Spain

June, 2013

A
These m
low-poro
less than
REFERE

1
Gibbons, W
2
Surez-Ru
and Petro
387-393.
3
Quesada,
Liassic Ba
London, v
4
San Leon
5
Fraguasa
Crepidolit
vol. 77, Is
6
Quesada,
of the Ay
Spain).
7
BNK Petro
8
Oil & Gas
9
Maio, F., A
Asturias a
from post
10
Platts, 20
www.plat

A series of yo
mostly Middle
sity sandsto
n 1%, therefo
ENCES

W. and Moreno,
uiz, I. and Prad
oleum Potential.

S., Robles, S.
ackstepping Car
vol. 162.
Energy, Investo
, A, and Erbab,
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ssues 34, Dece
S., Robles, S. a
yoluengo Field
Geogaceta, vol.
oleum Investors
Journal, 2011.
Aramburu, C. an
and Leon Provin
ter presentation
011. Spanish B
ts.com accessed
ounger Eoce
e Eocene s
ones. Again
ore these sh

T., 2002. The
do, J.G., 1995.
Composition, G
and Rosales,
rbonate Ramps
r Presentation, 2
E., 2010. Biom
hian, Lower Jura
ember, p. 12513
and Dorronsoro,
on the Basis o
20 (1), p. 176-1
presentation, 20
Thick Shale Ga
nd Underwood,
nces, Northwest
at AAPG Interna
Basque Region R
d March 7, 2013
XI
ene-age rese
hales are de
n, however,
hales were e
Geology of Spa
Characterizatio
Geochemistry an
I., 2005. De
in the BasqueC
2012.
metric Analyses a
assic) in the Ba
36.
C. 1996. Char
of Gas Chromat
79, ISSN: 02136
011.
as Play Emergin
J., 2011. Geo
t. AAPG Search
ational Conferen
Reports 185 Bcm
3.
EIA/ARI W
II-9
ervoir interva
eposited as
the TOC va
xcluded from
ain. The Geolog
on of Jurassic Bl
nd Conversion o
positional Archit
Cantabrian Basin
as a Tool for the
sque-Cantabrian
acterization of th
tography and C
683X.
ng in Spains Can
chemistry of Ord
h and Discovery
nce and Exhibitio
m of Shale Gas
World Shale Ga
als also cont
s thin layers
alues in the
m further ass
gical Society of L
lack Shales from
of Oil Shales, NA
tecture and Tra
n, Northern Spa
Differentiation o
n Basin (Northe
he Liassic Sourc
Carbon Isotope
ntabrian Basin,
dovician and Si
y Article #50529
on, Milan, Italy, O
Finds in Alava.
s and Shale Oil
tain thermal
of shale in
se Eocene
sessment.
4

London, ISBN 1-
m Asturias (Nort
ATO ASI Series
ansgressiveReg
ain. Journal of t
of Two Coccolith
ern Spain). Mar
ce Rock and Its
Analyses (Basq
May 12.
lurian Black Sha
, posted Decem
October 23-26, 2
. 17Oct2011/91
Resource Asses

ly mature sh
terbedded w
shales aver
-86239-110-6.
thern Spain): Ev
Volume 455, 19
gressive Cycles
the Geological S
h Species of the
rine Micropaleon
Correlation with
que-Cantabrian
ales, Cantabrian
mber 19, 2011, a
2011.
9 am EDT/1319
ssment
hales.
within
raged
volution
995, pp
s within
Society,
Genus
ntology,
the Oil
Basin,
n Zone,
adapted
9 GMT,
XIII. Northern and Western Europe EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 XIII-1
XIII. NORTHERN AND WESTERN EUROPE
SUMMARY
Numerous shale gas basins and formations exist in Northern and Western Europe. This
Chapter discusses five of the more prominent of these shale basins and formations, namely: the
Paris and South-East basins of France, the Lower Saxony Basin of Germany, the West
Netherland Basin of the Netherlands, and the Alum Shales underlying Scandinavia, Figure XIII-
1. Please see individual Chapters for United Kingdom (Chapter XI) and Spain (Chapter VII) for
discussion of the other shale basins of Northern and Western Europe.
Figure XIII-1. Prospective Shale Basins of Northern and Western Europe

Source: ARI, 2013.

June, 2013 XIII-2
We estimate risked shale gas in-place for the five Northern and Western European shale
basins addressed by this study of 1,165 Tcf, with 221 Tcf as the risked, technically recoverable
shale gas resource. In addition, we estimate that these five shale basins contain 190 billion
barrels of risked shale oil in-place, with 8.3 billion barrels as the risked, technically recoverable
shale oil resource, Table XIII-1.
Table XIII-1. Shale Gas and Shale Oil Resources of Northern and Western Europe
Techni cal l y Techni cal l y
In-Pl ace Recoverabl e In-Pl ace Recoverabl e
(Tcf) (Tcf) (B bbl ) (B bbl )
1. Pari s Basi n (France)
L. Jurassic Lias 23.8 1.9 38.0 1.52
Permian-Carboniferous 666.1 127.3 79.5 3.18
Total 689.9 129.3 117.5 4.70
2. South-East Basi n (France)
L. Jurassic Lias 37.0 7.4 0.0 0.00
Total 37.0 7.4 0.0 0.00
3. Lower Saxony Basi n (Germany)
Toarcian Posidonia 77.7 16.9 10.6 0.53
Wealden 1.8 0.1 3.2 0.13
Total 79.5 17.0 13.8 0.66
4. West Netherl ands Basi n (Netherl ands)
Namurian Epen 93.7 14.8 47.1 2.35
Namurian Geverik 50.6 10.1 6.3 0.32
Toarcian Posidonia 6.8 1.0 5.4 0.27
Total 151.1 25.9 58.8 2.94
5. Al um Shal e
Denmark 158.6 31.7 0.0 0.00
Sweden 48.9 9.8 0.0 0.00
Total 207.5 41.5 0.0 0.00
Total 1,165.1 221.0 190.0 8.29
Ri sked Ri sked
Shal e Gas Resources Shal e Oi l Resources
Basi n/Formati on


June, 2013 XIII-3
1. PARIS BASIN
1.1 Introduction
The Paris Basin of France is a large 65,000-mi
2
intra-cratonic basin that encompasses
most of the northern half of the country, Figure XIII-2. The basin is bounded on the east by the
Vosges Mountains, on the south by the Central Massif, on the west by the Armorican Massif
and, for the purposes of this study, by the English Channel on the north. The Paris Basin is
filled mostly with Mesozoic and Paleozoic rocks which reach 10,000 feet of thickness in the
center of the basin but are exposed along its margins.
Figure XIII-2. Outline and Structure of Paris Basin
Source: ARI, 2013

June, 2013 XIII-4
The Paris Basin and its two distinct shale gas and oil formations - - the Lias Shale and
the Permian-Carboniferous Shale - - hold 690 Tcf of risked shale gas in-place, with 129 Tcf as
the risked, technically recoverable shale gas resource, Table XIII-2. In addition, the Paris Basin
and its two shale formations hold 118 billion barrels of risked shale oil in-place, with 4.7 billion
barrels as the risked, technically recoverable shale oil resource, Table XIII-3.
Table XIII-2. Shale Gas Reservoir Properties and Resources of the Paris Basin
Lias Shale
L. Jurassic
Marine
5,670 11,960 17,940 17,940
Net 105 160 83 100
Interval 4,000 - 10,000 6,000 - 8,000 9,000 - 11,000 12,000 - 16,400
Average 7,000 7,000 10,000 14,000
4.5% 9.0% 9.0% 9.0%
0.85% 0.85% 1.15% 1.60%
Medium Medium Medium Medium
Assoc. Gas Assoc. Gas Wet Gas Dry Gas
8.4 12.8 46.2 61.3
23.8 48.9 265.1 352.0
1.9 3.9 53.0 70.4
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
Permian-Carboniferous
Lacustrine
Paris
(61,000mi
2
)
Table XIII-3. Shale Oil Reservoir Properties and Resources of the Paris Basin
Lias Shale
L. Jurassic
Marine
5,670 11,960 17,940
Net 105 160 83
Interval 4,000 - 10,000 6,000 - 8,000 9,000 - 11,000
Average 7,000 7,000 10,000
4.5% 9.0% 9.0%
0.85% 0.85% 1.15%
Medium Medium Medium
Oil Oil Condensate
13.4 20.4 0.2
38.0 78.3 1.2
1.52 3.13 0.05
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir Pressure
AverageTOC (wt. %)
Clay Content
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
Lacustrine
Paris
(61,000mi
2
)

June, 2013 XIII-5
The Paris Basin contains two shale plays addressed by this resource study - - the Lower
Jurassic Lias Shale and the Permian-Carboniferous Shale, Figure XIII-3
1
. The Jurassic Lias
Shale is composed of three distinct organic-rich black shales - - the Hettangian-Sinemurian
(Lower Lias) Shale, the Pliensbachian (Middle Lias) Shale, and the younger Toarcian (Schistes
Carton) Shale which is equivalent to the Posidonia Shale in Germany and the Netherlands.
Together these three shales are as much as 650 feet thick in the central part of the Paris Basin.
2

For the purpose of this shale resource assessment, we have grouped these three shales into a
single shale assessment interval called the Lias (Liassic) Shale.
Figure XIII-4 provides an east to west cross-section for the Lias Shale across the Paris
Basin.
2
(The location of the cross-section is provided on Figure XIII-2). Basin modeling of the
Lias Shale, in a smaller 3,640-mi
2
study area of the Paris Basin, indicated that this composite
shale interval, primarily the Toarcian (Schistes Carton) Shale, has generated 81 billion barrels
of hydrocarbons.
3
Extrapolating the smaller basin modeling study area to the full Lias Shale
prospective area in the Paris Basin of 5,670 mi
2
and assuming that 30% of the generated
hydrocarbon still remains in the source rock, we estimate that 38 billion barrels of hydrocarbons
remain in the Lias Shale.
The deeper Permian-Carboniferous unconventional gas play is located in the eastern
and southern portions of the Paris Basin, particularly in the Lorraine Sub-basin. This area
contains a thick package of tight sands, shales and methane-charged coals. This resource
assessment will address the organic-rich shales of the Permian-Carboniferous interval,
including the Lower Permian Autunian Unit, the Upper Carboniferous (Late Mississippian and
Early Pennsylvanian) Namurian Unit, as well as the Upper Carboniferous (Middle and
Pennsylvanian) inter-bedded bituminous shales in the Stephanian and Westphalian sections.
Figure XIII-5 provides an east to west cross-section across the Paris Basin, identifying
the Permian-Carboniferous Shale in the eastern portion of the basin.
1
The shales have fluvial
and lacustrine deposition raising concern with respect to higher clay content and less brittle
reservoir rock. The kerogen in the shales is a mixed Type II/III.


June, 2013 XIII-6
Figure XIII-3. East Paris Basin Stratigraphic Column
Source: Chungkham, 2009

Permian
Carboniferous
Shales
LiasShales

June, 2013 XIII-7
Figure XIII-4. East-West Cross-Section of Paris Basin Highlighting Lias (Liassic) Shales

Figure XIII-5. East-West Cross-Section of Paris Basin Highlighting Permian-Carboniferous Shales

Source: Chungkham, 2009

June, 2013 XIII-8
We have concentrated our assessment on the Lower Permian Autunian and Upper
Carboniferous Namurian shales. The substantial presence of less brittle coals in the Upper
Carboniferous Westphalian and Stephanian may hinder successful application of hydraulic
stimulation in these shales. In addition, the organic content (TOC) of the inter-bedded shales in
the Westphalian and Stephanian is reported to range from 0.5 to 1.4%, below the minimum
TOC criterion used in this study.
4

Based on information in the technical literature, we have used depth as a proxy for
thermal maturity (R
o
) for establishing the dry, wet gas/condensate and oil windows for this shale
play. The dry gas window is represented by burial depth between 3,350 m and 4,750 m; the
wet gas/condensate window is represented by burial depth between 2,450 m and 3,350 m, and
the oil window is represented by burial depth between 1,200 m and 2,450 m, Figure XIII-6.
5

Figure XIII-6. Relationship of Thermal Maturity and Burial Depth, Paris Basin
Source: Elixir, 2011


June, 2013 XIII-9
Lias Shale. We have mapped a 5,670-mi
2
oil prospective area for the Lias Shale based
on the 435
o
C Tmax contour area for the higher organic content Toarcian (Schistes Carton)
Shale. The 435
o
C Tmax contour (oil window) for the deeper Hettangian-Sinemurian Shale
underlies the 435
o
C Tmax contour of the Toarcian (Schistes Carton) Shale, Figure XIII-7.
The depth of the Lias Shale ranges from 4,000 feet to 10,000 feet in the basin center,
averaging 7,000 feet. The gross thickness of the shale ranges from 300 to 400 feet, with 105
feet of net organic-rich shale over the prospective area. The thermal maturity of the shale in the
prospective area (bounded by the 435
o
C Tmax contour) ranges from 0.7% to 1.0%, placing the
Lias Shale in the oil window.
1
The TOC of the shale, while highest in the Toarcian and lowest in
the Sinemurian, averages 4.5%.
The shales are assumed to be normally pressured, given the presence of vertical
fractures (and higher vertical permeability). The shale appears to be medium in clay content,
lower in calcite (10% to 30%) and quartz (5% to 20%).
Permian-Carboniferous Shale. We have mapped a 17,940-mi
2
prospective area for
dry gas and wet gas/condensate for the Permian-Carboniferous Shale and a more limited
11,960-mi
2
prospective area for oil. For this, we used the 200 m gross isopach on the north and
west and the boundaries of the Paris Basin on the south and east, Figure XIII-8.
1

Approximately 50 wells provide control for this gross isopach. We assumed that the shallower
oil interval extended across two-thirds of the larger prospective area.
Until recently, information on the Permian Carboniferous Shale was limited. Fortunately,
Elixir Petroleum has undertaken an exploration program on their Moselle Permit in the Paris
Basin and has provided information on their program. We have combined this data with
information from the technical literature for the reservoir properties of the Permian-
Carboniferous Shales.
The depth of the Permian Carboniferous Shale ranges from 6,000 feet to 16,400 feet,
averaging 7,000 feet in the oil window, 10,000 feet in the wet gas/condensate window, and
14,200 feet in the dry gas window. A significant portion of the Upper Carboniferous Namurian
section is at depths below 5,000 m and thus excluded from this resource assessment.

June, 2013 XIII-10
Figure XIII-7. Prospective Area for Lower Jurassic Lias Shale, Paris Basin
Source: ARI, 2013

Figure XIII-8. Prospective Area for Permian-Carboniferous Shale, Paris Basin
Source: ARI, 2013


June, 2013 XIII-11
While the gross interval in the prospective area is quite thick, much of this interval
contains lower TOC rocks. We estimate an average organic-rich net shale pay for the Permian
Carboniferous Shale of 83 to 160 feet, using low to moderate net to gross ratios. The TOC of
the shales ranges from 2% to 15%, averaging 9%. The reservoir is normally pressured.
Lias Shale. The Lias Shale of the Paris Basin contains a resource concentration of 13
million barrels/mi
2
of oil plus associated gas. We estimate risked oil in-place for the Lias Shale
of 38 billion barrels, with 1.9 billion barrels as the risked, technically recoverable shale oil
resource. In addition, we estimate risked associated shale gas in-place of 24 Tcf, with 2 Tcf as
the risked, technically recoverable shale gas resource, Tables XIII-2 and XIII-3.
Permian-Carboniferous Shale. Given the limited data on the extent and distribution of
the individual shale units within the prospective area, we view the resource assessment of the
Permian-Carboniferous Shale as preliminary. The Permian-Carboniferous Shale of the Paris
Basin contains resource concentrations of 61 Bcf/mi
2
in the dry gas window, 46 Bcf/mi
2
in the
wet gas/condensate window, and 20 million barrels/mi
2
in the oil window. We estimate risked
gas in-place for the Permian-Carboniferous Shale of 666 Tcf, with a risked, technically
recoverable shale gas resource of 127 Tcf (including associated gas). In addition, we estimate
risked shale oil/condensate in-place of 80 billion barrels, with 3.2 billion barrels as the risked,
technically recoverable shale oil resource, Tables XIII-2 and XIII-3.
1.5 Recent Activity
Most of the past exploration in the Paris Basin has targeted the Jurassic-age Lias Shale
oil play. However, some firms are beginning to acquire acreage in the eastern portions of the
Paris Basin where the Permian-Carboniferous Shale formation is the target. The 2,070 mi
2

Moselle Permit and its Permian-Carboniferous resource interval, first granted to East Paris
Petroleum Development Corp, has been acquired by Elixir Petroleum. While the terms of the
lease do not require the company to drill any wells, Elixir has publically stated that it intends to
investigate the unconventional gas potential (tight gas, CBM and shale gas) on its lease.
5


June, 2013 XIII-12
2. SOUTH-EAST BASIN
2.1 Introduction
The South-East Basin is the thickest sedimentary basin in France, containing up to 10
km of Mesozoic to Cenozoic sediments. The basin is bounded on the east and south by the
Alpine thrust belt and on the west by the Massif Central, an uplifted section of the Paleozoic
basement, Figure XIII-9. Local oil and gas seeps discovered in the 1940s encouraged
hydrocarbon exploration in the South-East Basin. However, despite the drilling of 150 wells in
the onshore and offshore portions of the basin, no significant oil and gas deposits have been
found. Recent re-evaluations of the basins potential have stimulated a further look at this
complex basin and its shale formations.
Figure XIII-9. Outline of South-East Basin of France
Source: ARI, 2013

June, 2013 XIII-13
We estimate that the South-East Basin contains 37 Tcf of risked shale gas in-place, with
7 Tcf as the risked, technically recoverable shale gas resource, Table XIII-4. We have limited
our shale resource assessment to the western portion of the basin and its deep dry gas
potential area. In addition, given considerable uncertainty as to the location of the higher TOC
(>2%) portions of the basin, we have assumed that only 30% of the overall dry gas prospective
area will meet the 2% TOC criterion used by the study.
Table XIII-4. Shale Gas Reservoir Properties and Resources for the South-East Basin
South-East
(17,800mi
2
)
Lias Shale
L. Jurassic
Marine
3,780
Organically Rich 525
Net 158
Interval 8,200 - 16,400
Average 12,300
Normal
2.0%
1.50%
Medium
Dry Gas
54.4
37.0
7.4
P
h
y
s
i
c
a
l
E
x
t
e
n
t
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
Shale Formation
Geologic Age
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir Pressure
Average TOC (wt. %)
Clay Content

This study examined the shale gas potential of two formations in the South-East Basin,
the Upper Jurassic Terres Niores black shale, and the Lower Jurassic Liassic black shale,
Figure XIII-10. These shales are composed of Type II marine organic matter and were
deposited during a time of subsidence and rifting, when the Liguro-Piemontais ocean covered
portions of what is now southern France
6
. However, the Upper Jurassic Terres Niores black
shale has low TOC, not exceeding 1%.
6
As such, this shale was excluded from further
assessment. The Lower Jurassic Lias Shale, while thermally mature and present in much of the
South-East Basin contains a wide spectrum of TOC values, ranging from 0.4% to 4.1%, Figure
XIII-11.
7
Because of the presence of some higher TOC values, we have included the Lias Shale
in our resource assessment but have highly risked this shale play.

June, 2013 XIII-14
Figure XIII-10. South-East Basin Stratigraphic Column
Source: Vially, R., 2010.


June, 2013 XIII-15
Figure XIII-11. Generalized South-East Basin Cross Section
.
We have mapped an unrisked, 4,000-mi
2
area prospective for shale gas in the eastern
portion of the South-East Basin, Figure XIII-12. The prospective area is bounded on the west
by the dry gas maturity limit, on the south by the onshore portion of basin, and on the east by
the available data on the TOC of the Lias Shale.
Uplifting along the western margin of the South-East Basin has brought the Lias Shale to
a more favorable depth for exploration. Depth to the Lias Shale ranges from 3,300 feet to
16,300 feet deep over the basin, with most of the shale in the prospective area at an average
depth of 12,300 feet, Figure XIII-12. The organic-rich gross interval of the shale is estimated at
525 feet with 158 feet of net shale. Total organic content (TOC) in the risked prospective area
averages 2%. Thermal maturity in the Lias Shale increases with depth, ranging from 1.3% R
o
in
the shallower western areas to over 1.7% R
o
in the deeper central area. Average vitrinite
reflectance (R
o
) over the prospective area is 1.5%.


June, 2013 XIII-16
Figure XIII-12. Prospective Area for the Lias Shale, South-East Basin of France
Source: ARI, 2013

We estimate a moderate resource concentration in the dry gas prospective area of the
Lias Shale, South-East Basin of 54 Bcf/mi
2
. The risked shale gas in-place is estimated at 37
Tcf, with 7 Tcf as the risked, technically recoverable shale gas resource.
2.5 Recent Activity
A number of firms are beginning to examine the shale gas potential of the South-East
Basin; the initial permit award deadline was delayed due to the large numbers of applications.
The French Ministry of Energy and the Environment awarded several exploration permits,
covering over 4,000 mi
2
, to companies interested in investing in the drilling and exploration of
shale formations in the South-East Basin of France.

June, 2013 XIII-17
3. LOWER SAXONY BASIN: GERMANY
3.1 Introduction
The Lower Saxony Basin, covering an area of 10,000 mi
2
and located in northwestern
Germany, is filled with Jurassic- to Cretaceous-age marine and lacustrine rocks, Figure XIII-13.
The basin contains two petroleum systems, the Jurassic and its Posidonia (Toarcian) Shale
source rock and the Lower Cretaceous and its Wealden (Berriasian) Shale source rock. The
Posidonia Shale is present throughout the Lower Saxony Basin while the Wealden Shale exists
primarily in its western portion of the basin.
Figure XIII-13. Outline Map for Lower Saxony Basin, Germany.
Source: ARI, 2013

June, 2013 XIII-18
For the Lower Saxony Basin of Germany, we estimate risked in-place shale gas of 80
Tcf, with 17 Tcf as the risked, technically recoverable shale gas resource, Table XIII-5. In
addition, we estimate risked in-place shale oil of 14 billion barrels, with 0.7 billion barrels as the
risked, technically recoverable shale oil resource, Table XIII-6.
Table XIII-5. Shale Gas Reservoir Properties and Resources of the Saxony Basin, Germany
Wealden
L. Cretaceous
Lacustrine
1,590 770 1,390 720
Net 90 90 90 75
Interval 6,000 - 10,000 10,000 - 13,000 13,000 - 16,400 3,300 - 10,000
Average 8,000 11,500 14,500 6,000
Mod.
Overpress.
Mod.
Overpress.
Mod.
Overpress.
Slightly
Overpress.
8.0% 8.0% 8.0% 4.5%
0.85% 1.15% 2.00% 0.85%
Low/Medium Low/Medium Low/Medium Medium
Assoc. Gas Wet Gas Dry Gas Assoc. Gas
10.8 44.0 56.5 5.5
10.3 20.3 47.1 1.8
1.0 4.1 11.8 0.1
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
Lower Saxony
(10,000mi
2
)
Posidonia
L. Jurassic
Marine
Table XIII-6. Shale Oil Reservoir Properties and Resources of the Saxony Basin, Germany
Wealden
L. Cretaceous
Lacustrine
1,590 770 720
Net 90 90 75
Interval 6,000 - 10,000 10,000 - 13,000 3,300 - 10,000
Average 8,000 11,500 6,000
Mod.
Overpress.
Mod.
Overpress.
Slightly
Overpress.
8.0% 8.0% 4.5%
0.85% 1.15% 0.85%
Low/Medium Low/Medium Medium
Oil Condensate Oil
12.7 4.2 9.9
9.1 1.5 3.2
0.46 0.07 0.13
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
Posidonia
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
L. Jurassic
Marine
Lower Saxony
(10,000mi
2
)


June, 2013 XIII-19
The Lower Saxony Basin is a distinct sub-basin within the greater North Sea-German
Basin. The Lower Saxony Basin is a graben that subsided and filled during Late Jurassic and
Early Cretaceous. The graben is bounded on the south by the Hanz Mountains, on the north by
the Pompecky Block, on the west by the Central Netherland High and on the east by Hercynian
Uplifts. During the Late Cretaceous, the Lower Saxony Basin was subject to complex tectonics
that transformed the basins normal boundary faults into reverse or overthrust faults. These
events facilitated volcanic intrusions causing intense metamorphism of the organics.
The Lower Saxony Basin contains two organic-rich shale source rocks - - the restricted
marine Lower Toarcian (Jurassic) Posidonia Shale that underlies most of the basin, and the
Early Cretaceous (Berriasian) lacustrine-deltaic Wealden Shale that underlies the western part
of the basin (west of the Weser River). The generalized stratigraphic column for the Triassic to
Tertiary interval in the Lower Saxony Basin is provided on Figure XIII-14.
8

We mapped a 3,750-mi
2
prospective area for the Posidonia Shale in the Lower Saxony
Basin, containing: (1) a 1,590-mi
2
oil prospective area (R
o
of 0.7% to 1%) along the north
eastern border of the basin; (2) an adjoining 770-mi
2
wet gas/condensate prospective area (R
o

1% to 1.3%); and (3) a 1,390-mi
2
dry gas prospective area (R
o
>1.3%) in the deeper
southwestern portion of the basin, Figure XIII-15. We also mapped a smaller 720-mi
2
oil
prospective area for the shallower Wealden Shale in the Lower Saxony Basin, Figure XIII-16.
In addition to the two shale formations addressed in this resource assessment, a series
of other shale gas formations exist in Germany, particularly the Lower Carboniferous Visean
and Westphalian coaly shales. However, these shales, while thick, thermally mature for gas
and buried at acceptable depths of 1,000 to 5,000 m, have TOC values of less than 2%.
9
Thus,
these shale formations have not been included in our resource assessment.
In addition, organic-rich mudstones occur in the Upper Permian Stassfurth Carbonate
Formation in the eastern part of the North Sea-German Basin in southern Brandenburg. The
Ca2 shale interval in this formation occurs at a depth of 3,800 to 4,000 m, has a thermal
maturity of over 2% R
o
, and contains a mixed Type II/III kerogen. However the shale formation
is thin (6m) and has a low TOC content of 0.2% to 0.8%.
9
As such, this shale has also not been
included in our resource assessment.

June, 2013 XIII-20
Figure XIII-14. Generalized Stratigraphic Column for the Lower Saxony Basin.
Source: Kockel, 1994.


June, 2013 XIII-21
Figure XIII-15. Prospective Area of the Posidonia Shale, Lower Saxony Basin, Germany.
Source: ARI, 2013.
Figure XIII-16. Prospective Area of the Wealden Shale, Lower Saxony Basin, Germany.
Source: ARI, 2013.


June, 2013 XIII-22
Jurassic (Toarcian) Posidonia Shale. The depth to the Posidonia Shale ranges from
3,300 feet to 16,400 feet, with an average depth in the oil prospective area of 8,000 feet, an
average depth in the wet gas/condensate prospective area of 11,500 feet, and an average
depth in the dry gas prospective area of 14,500 feet. Figure XIII-17 provides a north to south
cross-section through the center of the Lower Saxony Basin, illustrating the sequence of
complex faults and the thrust features common to the Posidonia Shale. (The location of the
north to south cross-section, A to A, is provided in Figure XIII-10.) The shale interval in the
prospective area is moderate in thickness, with an organic-rich gross thickness of 100 feet and
a net shale thickness of 90 feet. Organic matter in the Posidonia Shale is Type II marine
kerogen with a TOC that averages 8%, Figure XIII-18. The outer portion of the basin area is in
the oil window, with the central, deeper areas of the Posidonia Shale in the wet gas/ condensate
and dry gas windows, Figure XIII-15.
Figure XIII-17. Lower Saxony Basin North to South Cross Section, A to A
Source: Kockel, 1994.
Cretaceous (Berriasian) Wealden Shale. The prospective area for the Wealden Shale
is thermally mature for oil generation. The prospective area was defined by the depositional
and depth limits of the Wealden Shale within the Lower Saxony Basin. In the prospective area,
the depth of the Wealden Shale ranges from 3,300 feet to 10,000 feet, averaging 6,000 feet.
The Wealden Shale has a gross organic-rich shale interval of 112 feet and 75 feet of net shale
thickness
8
. The TOC in the Wealden Shale is highly variable, ranging from 1% to 14%,
averaging 4.5% in the prospective area, Figure XIII-18. Thermal maturity ranges from 0.7% to
1.0% Ro, placing the Wealden Shale in the oil window.
8


June, 2013 XIII-23
Figure XIII-18. Total Organic Content, Posidonia and Wealden Shales, Lower Saxony Basin

Jurassic Posidonia Shale. We calculate that the prospective area of the Posidonia
Shale in the Lower Saxony Basin has resource concentrations of 56 Bcf/mi
2
in the dry gas
window, 44 Bcf/mi
2
of wet gas and 4 million barrels/mi
2
of condensate in the wet gas and
condensate window, and 13 million barrels/mi
2
of oil in the oil window. Within the prospective
area, the Posidonia Shale contains 78 Tcf of risked gas in-place, with 17 Tcf as the risked,
technically recoverable shale gas resource (including associated gas), Table XIII-5. In addition,
the Posidonia Shale contains 11 billion barrels of risked shale oil in-place, with 0.5 billion barrels
as the risked, technically recoverable shale oil resource, Table XIII-6.
Cretaceous Wealden Shale. The 720-mi
2
prospective area of the Wealden Shale in the
Lower Saxony Basin has an oil resource concentration of 10 million barrels/mi
2
. The risked oil
in-place is 3 billion barrels, with 0.1 billion barrels as the risked, technically recoverable shale oil
resource, Table XIII-6. The oil prospective area of the Wealden Shale also contains in-place
and risked, technically recoverable associated shale gas of 2 Tcf and 0.1 Tcf respectively.

June, 2013 XIII-24
3.5 Recent Activity
ExxonMobil has been the lead company active in the Lower Saxony Basin of Germany.
The company has drilled a series of test wells on its exploration leases, at least three of which
are reported to be testing shale gas potential. Starting in 2008, the company drilled the
Damme 2/2A and Damme 3 test wells on its Munsterland concession and the Oppenwehe 1
exploration well on its Minden concession. In late 2010, the company spudded the
Niederzwehren test well on its Schaumberg permit. After drilling these test wells, ExxonMobil
halted operations in the province following the passage of a moratorium on hydraulic fracturing.
Realm Energy obtained a small, 25-square mile shale gas exploration

permit in West
Germany. The company plans to explore the oil and gas potential in the Posidonia and
Wealden shales underneath its acreage. Realms concession is valid for three years and does
not require well drilling, but does provide the company with data from the 21 wells drilled on its
acreage in past years.
BNK Petroleum has leased approximately 3,745 square miles for shale, CBM and tight
gas sand exploration in West and Central Germany. The company has yet to drill on any of its
properties, but reports targeting shale formations, most likely the Posidonia and Wealden
shales. Most of its concessions are not near areas with previously defined shale gas potential,
suggesting the company is pursuing a wildcatting approach in Germany. To date, the company
has not provided details of its drilling plans.
After a lengthy period of study, the German government issued, in late February 2013,
draft legislation what would allow the development of shale and the use of hydraulic stimulation
(fracturing) under environmental safeguards.

June, 2013 XIII-25
4. WEST NETHERLAND BASIN: NETHERLANDS
4.1 Introduction
The West Netherland Basin (WNB) is located in the southwestern portion of the
Netherlands, extending into the offshore, Figure XIII-19. The basin is bounded in the south by
the London-Brabant Massif and on the north by the Zandvoort Ridge. In the south-east, the
WNB merges with the Ruhr Valley Graben. The West Netherlands Basin is part of a series of
Late Jurassic to Early Cretaceous trans-tensional basins of Western Europe.
Figure XIII-19. Outline and Depth Map for West Netherland Basin, Netherlands
Source: ARI, 2013

June, 2013 XIII-26
For the West Netherland Basin, we estimate risked in-place shale gas of 151 Tcf, with
26 Tcf as the risked, technically recoverable shale gas resource, Table XIII-7. In addition, we
estimate risked in-place shale oil of 59 billion barrels, with 2.9 billion barrels as the risked,
technically recoverable shale oil resource, Table XIII-8.
Table XIII-7. Shale Gas Reservoir Properties and Resources of West Netherland Basin, Netherlands
GeverikMember
U. Carboniferous
Marine
1,460 860 2,320 850 170
Organically Rich 1,500 1,500 225 100 100
Net 450 450 135 90 90
Interval 3,300 - 10,000 10,000 - 15,500 5,000 - 16,400 3,300 - 9,000 9,000 - 12,500
Average 8,500 12,500 11,000 6,500 10,500
Mod. Overpress. Mod. Overpress. Mod. Overpress. Mod. Overpress. Mod. Overpress.
2.4% 2.4% 4.0% 6.0% 6.0%
0.85% 1.15% 1.15% 0.85% 1.15%
Medium Medium Low/Medium Low/Medium Low/Medium
Assoc. Gas Wet Gas Wet Gas Assoc. Gas Wet Gas
60.6 139.2 48.5 10.2 38.5
39.8 53.9 50.6 3.9 2.9
4.0 10.8 10.1 0.4 0.6
Posidonia
L. Jurassic
Marine
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
Epen
U. Carboniferous
Lacustrine
WestNetherlands
(2,750mi
2
)
Table XIII-8. Shale Oil Reservoir Properties and Resources of West Netherland Basin, Netherlands
Geverik Member
U. Carboniferous
Marine
1,460 860 2,320 850 170
Organically Rich 1,500 1,500 225 100 100
Net 450 450 135 90 90
Interval 3,300 - 10,000 10,000 - 15,500 5,000 - 16,400 3,300 - 9,000 9,000 - 12,500
Average 8,500 12,500 11,000 6,500 10,500
Mod. Overpress. Mod. Overpress. Mod. Overpress. Mod. Overpress. Mod. Overpress.
2.4% 2.4% 4.0% 6.0% 6.0%
0.85% 1.15% 1.15% 0.85% 1.15%
Medium Medium Low/Medium Low/Medium Low/Medium
Oil Condensate Condensate Oil Condensate
60.4 19.0 6.1 13.2 4.1
39.7 7.4 6.3 5.0 0.3
1.98 0.37 0.32 0.25 0.02
Epen
U. Carboniferous
Lacustrine
WestNetherlands
(2,750mi
2
)
Posidonia
L. Jurassic
Marine
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age

June, 2013 XIII-27
The West Netherland Basin (WNB), while commonly described as a single structural
entity, contains a series of smaller structural elements bounded by long, northwest-trending
faults. The complex tectonic features present in this basin are illustrated by the northeast to
southwest cross-section (A-A) located on the far western portion of the basin, Figure XIII-20.
10

(The location of the cross-section is shown on Figure XIII-19.)
Figure XIII-20. Cross-Section A to A, Western Portion of West Netherland Basin.

Source: van Balen, R.T. et al., 2000.
The WNB contains a series of prospective shale formations, including two Carboniferous
(Namurian) shale formations, the Epen Formation and the Geverik Member, plus the Lower
Jurassic (Toarcian) Posidonia Shale, Figure XIII-21.
10
Based on analysis of core and cutting
samples from the deep Geverik-1 exploration well, located in the southeastern part of the basin,
the Epen Shale contains Type III kerogen, with lacustrine-deltaic deposition, while the Geverik
Shale contains Type II kerogen, with open-marine deposition. The Posidonia Shale contains
Type II marine kerogen.
Additional shale source rocks exist in the WNB, particularly in Late Jurassic and Late
Carboniferous intervals. However, these shales are considered of minor importance or contain
significant inter-beds of coal.
10
Thus, these shales have been excluded from the quantitative
resource assessment. An excellent, comprehensive review of the shale formations of the
Netherlands is provided in the TNO report entitled, Inventory Non-Conventional Gas by A.G.
Muntendam-Bos et al., 2009.
11


June, 2013 XIII-28
Figure XIII-21. Stratigraphic Section for West Netherland Basin.

Numerical ages in the Namurian and Jurassic to Tertiary are after Harland et al. (1990), in the Triassic and Permian after
Menning (1995), and in the Westphalian and Stephanian after Lippolt et al. (1984).
Source: van Balen, R.T. et al., 2000.


June, 2013 XIII-29
For the Epen Shale, we have mapped a 1,460-mi
2
area prospective for oil and associated
gas and a smaller 860-mi
2
area prospective for wet gas and condensate, Figure XIII-22. For the
Geverik Shale, we have mapped a 2,320-mi
2
area prospective for wet gas and condensate,
Figure XIII-23. For the Posidonia Shale, we have mapped a 850-mi
2
area prospective for oil
and a smaller 170-mi
2
area prospective for wet gas and condensate, Figure XIII-24.
Carboniferous (Namurian) Epen and Geverik Shales. As discussed above, the
Carboniferous (Namurian) sequence in the Netherlands contains two prospective shale
formations, the Epen and Geverik. The key technical paper by R. T. van Balen, et al. (2000)
10

and data provided in the more recent TNO report (Muntendam-Bos, A.G., et al., 2009)
11
were
used to establish prospective areas including information on depth, thermal maturity and
thickness for these two shale gas formations.
Depth to the Epen Shale ranges from 3,300 feet to 16,400 feet, averaging 8,500 feet in
the oil prospective area and averaging 12,500 feet in the wet gas/condensate prospective area.
In the west-central portion of the WNB, the depth of the Epen Shale is below 5,000 m. As such,
this portion of the basin has been excluded from the prospective area. The Epen Shales oil
prospective area has a thermal maturity of 0.7% to 1.0% R
o
in the southern portion of the basin
and along the shallower basin edges. In the center of the basin, the thermal maturity of the
shale ranges from 1.0% to 1.3% Ro, placing the shale in the wet gas/condensate window. The
Epen Shale is very thick, with a gross organic-rich thickness of 1,500 feet and a net thickness of
450 feet, based on an estimated 30% net to gross ratio. Total organic content ranges from 1%
to 15%, averaging 2.4%. The shale is over-pressured and because of its lacustrine deposition
has medium assumed clay content.
Depth to the underlying Geverik Shale ranges from 5,000 feet to 16,400 feet, averaging
11,000 feet in the wet gas/condensate prospective area. As for the Epen Shale, the deep west-
central portion of the basin below 5,000 m has been excluded. The Geverik Shale has an
organic-rich gross interval of 225 feet, with an estimated 135 feet of net pay, based on an
estimated 60% net to gross ratio. The thermal maturity of this deeper shale ranges from 1.0%
to 1.3%, placing the Geverik Shale in the wet gas and condensate window. Total organic
content of the shale ranges from 2% to 7%, averaging 4%. The shale is over-pressured and
due to its marine deposition has low to medium assumed clay content.

June, 2013 XIII-30
Figure XIII-22. Prospective Areas for Epen Shale, West Netherland Basin.
Source: ARI, 2013
Figure XIII-23. Prospective Areas for Geverik Shale, West Netherland Basin.
Source: ARI, 2013


June, 2013 XIII-31
Figure XIII-24. Prospective Area for Posidonia Shale, West Netherland Basin.
Source: ARI, 2013

Jurassic (Toarcian) Posidonia Shale. The shallower Posidonia Shale overlies the
Carboniferous Epen and Geverik shales in the West Netherland Basin. The shale has reservoir
properties similar to the Posidonia Shale in the Lower Saxony Basin of Germany, discussed
previously. A total of 140 wells have been drilled through the Posidonia Shale, providing
valuable data and control for this resource assessment.
The depth of the Posidonia Shale ranges from 3,300 feet on the margins of the
prospective area to 12,500 feet in the basin center, averaging 6,500 feet in the oil prospective
area and 10,500 feet in the wet gas/condensate prospective area. In the shallower portions of
the prospective area, the Posidonia Shale has a thermal maturity of 0.7% to 1.0% R
o
(oil
window). In the deeper basin center, Posidonia Shale has a thermal maturity of 1.0% to 1.3%
R
o
(wet gas/condensate window). The gross organic-rich shale interval is 100 feet, with 90 feet
of net pay. The shale contains Type II marine kerogen with a TOC that ranges from less than
1% to a maximum of 16%, averaging 6%. The formation is slightly over-pressured with low to
medium clay content.

June, 2013 XIII-32
Carboniferous (Namurian) Epen Shale. We estimate that the prospective area of the
Epen Shale in the West Netherland Basin contains risked shale gas in-place of 94 Tcf, with 15
Tcf as the risked, technically recoverable shale gas resource (including both wet shale gas and
associated shale gas). In addition, we estimate that the Epen Shale in this basin has risked in-
place shale oil/condensate of 47 billion barrels, with 2.4 billion barrels as the risked, technically
recoverable shale oil resource.
Carboniferous (Namurian) Geverik Shale. We estimate that the prospective area of
the Geverik Shale in the West Netherland Basin contains risked shale gas in-place of 51 Tcf,
with 10 Tcf as the risked, technically recoverable shale gas resource. In addition, we estimate
that the Geverik Shale in this basin has risked in-place shale oil/condensate of 6 billion barrels,
with 0.3 billion barrels as the risked, technically recoverable shale oil resource.
Jurassic (Toarcian) Posidonia Shale. We estimate that the prospective area of the
Posidonia Shale in the West Netherland Basin contains risked shale gas in-place of 7 Tcf, with 1
Tcf as the risked, technically recoverable shale gas resource (including both wet shale gas and
associated shale gas). In addition, we estimate that the Posidonia Shale in this basin has risked
in-place shale oil/condensate of 5 billion barrels, with 0.3 billion barrels as the risked, technically
recoverable shale oil resource.
4.5 Recent Activity
Three companies have acquired shale gas and oil leases in the Netherlands. Cuadrilla
Resources and DSM Energie have leases in the West Netherland Basin while Queensland Gas
Company (now part of BG Group) has leases in north-central Netherlands. Beyond the earlier
exploratory wells that helped define the shale resources in the West Netherland Basin, we are
not aware of any recent shale gas or oil development in the Netherlands.

June, 2013 XIII-33
5. SCANDINAVIA
5.1 Introduction
The Cambrian-Ordovician (Lower Paleozoic) Alum Shale underlies significant portions of
Scandinavia, including Sweden, Denmark and potentially Norway, Figure XIII-25. However, in
much of this area the Alum Shale is shallow, thin and immature. The outline of the Alum Shale
depositional area examined by this shale resource assessment is bounded on the west by the
Caledonia Deformation Front and outcrops of the Alum Shale. The basin is bounded on the
east by the inferred depositional limits of the Lower Paleozoic and on the south by the 2.7% (R
o
)
thermal maturity contour.
Figure XIII-25. Outline Map for AlumShale of Scandinavia
Source: ARI, 2013

June, 2013 XIII-34
For the Alum Shale in Sweden, we estimate risked in-place shale gas of 49 Tcf, with 10
Tcf as the risked, technically recoverable shale gas resource. For the Alum Shale in Denmark,
we estimate risked in-place shale gas of 159 Tcf, with 32 Tcf as the risked, technically
recoverable shale gas resource, Table XIII-9. A modest volume of shale gas may exist in the
Oslo Graben of Norway. However, there is not sufficient data to reliably estimate the size of
Norways shale resource. Our shale gas resource estimates are preliminary and have been
highly risked, awaiting more definite information from industrys planned exploration efforts,
particularly in Denmark.
Table XIII-9. Shale Gas Reservoir Properties and Resources of Scandinavia

The depositional setting of the Cambrian-Ordovician Alum Shale in southern Sweden
and northern Denmark has been mapped in the technical literature. Outcrops of the Alum Shale
exist along the Caledonian Mountain belt along the Sweden-Norway border and in southern
Sweden. Figure XIII-26 provides the stratigraphic position of the Alum Shale in Sweden. Figure
XIII-27, compiled from a variety of sources, indicates the presence of the Alum Shale in the Oslo
Graben of Norway and on Gotland in Sweden. While the stratigraphy of the Alum Shale has
only moderate variation in central Sweden, the structural setting becomes complex along the
Caledonian Front in Norway, western Sweden and northern Denmark.

June, 2013 XIII-35
Figure XIII-26. Stratigraphic Column for Cambrian Through Permian, Sweden

Source: Thickpenny, A, 1984.
Figure XIII-27. Generalized Lower Paleozoic Stratigraphy for the Scandinavia-Baltic Region.
Modified from Bjrlykke (1974), Vlierboom et al. (1986), Thickpenny and Leggett (1987), Brangulis et al. (1993), Zdanaviciute
and Bojesen-Kofoed (1997), Bondar et al. (1998), Sivhed et al. (2004).
Source: Pedersen, J.H., 2007

June, 2013 XIII-36
The Alum Shale contains a series of distinct lithotypes, as shown by the cross-section of
data from selected outcrop areas in southern Sweden and the Caledonian Front, Figure XIII-28.
Two of these lithotypes are important shale source rocks. The first is the black organic-rich
mudstone with TOC of 5% to 7% in the Middle Cambrian, reaching up to 20% in the Upper
Cambrian.
12
This interval contains 30% to 40% illite clay, and +25% quartz, plus pyrite and K-
feldspar. The second is the black and gray (dark brown) inter-bedded mudstone, with TOC of
about 5%. Grey mudstone, bituminous limestone and thin sandstone, siltstone lamina
constitute the remaining lithotypes. The Alum Shale was deposited in a relatively shallow,
anoxic marine environment.
Figure XIII-28. Comparative Middle and Upper Cambrian Stratigraphic Columns for Selected Outcrop Areas
in Scandinavia

Source: Thickpenny, 1984

June, 2013 XIII-37
Except for outcroppings and data from shallower wells, rigorous data on the properties of
the Alum Shale are scarce. ARI has identified an 8,100-mi
2
prospective area where the shale is
deposited below 3,300 feet at depth and where the thermal maturity data indicate the shale is
inside the gas window, Figure XIII-29. The bulk of the Alum Shale prospective area is in
northern Denmark, encompassing 5,680 mi
2
. The remaining 2,120-mi
2
prospective area for the
Alum Shale is in southern Sweden.
Figure XIII-29. Prospective Areas for AlumShale in Denmark and Sweden.

Source: ARI, 2013.
The outlines of the Alum Shale prospective area are based on thermal maturity of 2.7%
R
o
on the south and the 3,300-foot depth limit (plus outcrops of the shale in the Skane area) on
the north. Data from well drilling by Shell provided information on the depth of the Alum Shale
in southern Sweden.

June, 2013 XIII-38
The depth of the Alum Shale ranges from 3,300 feet in southern Sweden to 15,000 feet
in northern Denmark. We have assumed a depth of 5,000 feet for the dry gas prospective area
in Sweden and a depth of 13,500 feet for the two dry gas prospective areas in Denmark.
The thickness of the Alum Shale generally ranges from 20 to 60 m, but can reach 80 to
100 m in the Skane area and 200 m or more in repeated sequences due to multiple thrust faults
along the Caledonian Front.
13,14
The Alum Shale gross thickness is relatively constant, ranging
from 250 to 300 feet in the prospective area, Figure XIII-29. We have assumed a relatively high
net to gross ratio of 80%, giving a net shale thickness of 200 feet. Since we include both the
high TOC black shale and the lower TOC dark brown shale in our net pay, we use an average
TOC of 7.5%. The Alum Shale formation is normally pressured, has moderately high clay
content and is structurally complex, making the shale a high risk play.
For the Alum Shale in Sweden, we calculate a resource concentration of 77 Bcf/mi
2
.
Based on this and a 2,120-mi
2
prospective area, we estimate risked shale gas in-place of 49
Tcf, with 10 Tcf as the risked, technically recoverable shale gas resource, Table XIII-9.
For the Alum Shale in Denmark, we calculate a resource concentration of 110 Bcf/mi
2
.
Based on this and a 5,980-mi
2
prospective area, we estimate risked shale gas in-place of 159
Tcf, with 32 Tcf as the risked, technically recoverable shale gas resource, Table XIII-9.
Additional investigation and data are required to establish the shale resources of
Norway, particularly in the deeper Oslo Graben.
5.5 Recent Activity
The Alum Shale has a rich exploration history that dates back to the 1600s with the
extraction of alum salt. Subsequently, the Alum Shale was mined for oil shale in 1930 to 1950
and later as a source for uranium.
15

Of the numerous companies that have applied for exploration licenses in Sweden, Shell
Oil has been the most active. Shell drilled three wells on their 400-mi
2
lease area in the Skane
Region of Southern Sweden between 2008 to 2011, Figure XIII-30. However, according to
information from the Geologic Survey of Denmark and Greenland, They drilled three wells, but

June, 2013 XIII-39
found it uneconomic.
15
Other companies with Alum Shale exploration licenses in Sweden are
Gripen Gas and Energigas, with twelve licenses in south-central Sweden. However, Gripen
Gas is pursuing biogenic source gas with a series of exploration wells in the shallow portion of
the Alum Shale.
In Denmark, Total E&P Denmark B.V. is exploring for deep shale gas in two license
areas in northern Denmark. Total submitted the work program for the first exploration well,
Vendsyssel-1, in late 2012 and plans a six year exploration program to determine whether their
lease areas contain sufficient shale gas resources to warrant further development.
Figure XIII-30. Shell Oil License Areas, AlumShale, Sweden

Source: ARI, 2013.


June, 2013 XIII-40
REFERENCES
1
Chungkham, P., 2009. Paris Basin offers opportunities for unconventional hydrocarbon resources. first break 27 (January
2009).
2
Perrodon, A., and J. Zabeki, 1991. Paris Basin. In Interior Cratonic Basins, AAPG Memoir 51, pp. 633-639.
3
Monticone, B., 2012. Shale Oil Potential of the Paris Basin, France. Search and Discovery Article #10384 (2012) Posted
January 9, 2012, Adapted from oral presentation at AAPG International Conference and Exhibition, Milan, Italy, October 23-
26, 2011.
4
Delmas, J., Houel, P. and Vially, R., 2002. Paris Basin Petroleum Potential. IFP Regional Report. Institut Franais du Ptrole,
Rueil Malmaison
5
Elixir Petroleum
6
Mascle, Alain, and Roland Vially, 1999. The petroleum systems of the Southeast Basin and Gulf of Lion (France). Geological
Society, London, Special Publications 156, no. 1 (January 1, 1999): 121-140.
7
Vially, R., 2010. Shale Gas in the South-East Basin presented at the Global Shale Gas Summit, Warsaw, Poland, July 2010.
8
Kockel, Franz, Hermann Wehner, and Peter Gerling, 1994. Petroleum Systsms of the Lower Saxony Basin, Germany. In The
Petroleum System-from Source to Trap, 573-586. AAPG Memoir 60, 1994.
9
Hartwig, Alexander, Sven Knitzer, Bettina Boucsein, Brian Horsfield, and Hans-Martin Schulz, 2010. Applying classical shale
gas evaluation concepts to Germany--Part II: Carboniferous in Northeast Germany. Chemie der Erde - Geochemistry 70, no.
Supplement 3 (August 2010): 93-106.
10
van Balen, R.T. et al., 2000. Modelling the hydrocarbon generation and migration in the West Netherlands Basin, the
Netherlands. Geologie en Mijnbouw / Netherlands Journal of Geosciences 79 (1): 29-44 (2000)
11
Muntendam-Bos, A.G., et al., 2009. Inventory Non-Conventional Gas. TNO report TNO-034-UT-2009-00774/B, 03
September.
12
Armands, G., 1972. Geochemical Studies of Uranium, Molybdenum, and Vanadium in a Swedish Alum Shale. Stockholm
Contr. Geology 27, pp. 1-148.
13
Dahl, J., et al., 1989. Alum Shale Bitumen Maturation and Migration: Implications for Gotlands Oil, Journal of Petroleum
Geology, 12 (4), October, pp. 465-476.
14
Buchardt, B., 1990. Reflectance of Vitrinite-Like Macerals as a Thermal Maturity Index for Cambrian-Ordovician Alum Shale,
Southern Scandinavia. The American Association of Petroleum Geologists Bulletin, vol. 74, no. 4. April, p. 394-406.
15
Schovsbo, N. 2011. Article entitled Deep History: Scandinavia's Alum Shale on presentation provided to delegates at Shale
Gas Results in Europe 2011 in Warsaw, Poland, www.naturalgaseurope.com, June 29th, 2011.
XIV. Morocc

June, 2013
XIV. M
SUMMA
In
depths s
Western
potential
of these
shale de
Source: AR
co (Including We

MOROC
ARY
n addition to
uitable for s
Sahara, als
in the Tindo
shales is c
posits have
Figure
I, 2013.
estern Sahara an
CCO (INC
o large accu
surface minin
so possess o
ouf and Tadl
challenging
led to their d
XIV-1. Shale G
nd Mauritania)
CLUDING W
umulations o
ng
1
, Morocc
organic-rich
la basins, Fi
because reg
discontinuou
Gas Basins of

EIA/ARI W
XIV-1
WESTERN
of Late-Creta
o and its tw
Silurian- an
gure XIV-1.
gional defor
us and comp
f Morocco, We

World Shale Ga
N SAHARA
aceous imm
wo neighborin
nd Devonian
Mapping a
rmation, ero
plex present
estern Sahara
s and Shale Oil
A AND MAU
mature oil sh
ng countries
-age shale g
and resource
osion and su
day distribu
a and Mauritan
Resource Asses
URITANIA)
hale (keroge
s, Mauritania
gas and sha
e characteriz
ubsidence o
ution.
nia
ssment

en) at
a and
ale oil
zation
of the
XIV. Morocc

June, 2013
A
Tcf, with
these two
barrels o
Table
Tabl
co (Including We

ARI estimate
20 Tcf of ris
o basins con
of risked, tec
e XIV-1. Rese
le XIV-2. Res
R
e
s
o
u
r
c
e
Gas P
GIP C
Riske
Riske
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pros
Thick
Depth
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRese
Avera
Therm
Clay
B
a
s
i
c
D
a
t
a
De
estern Sahara an
s that the Ti
sked, technic
ntain risked
hnically reco
ervoir Proper
ervoir Prope
Organic
Net
Interval
Average
Phase
Concentration (Bcf
ed GIP (Tcf)
ed Recoverable(Tc
pectiveArea(mi
2
)
kness (ft)
h (ft)
ervoir Pressure
ageTOC (wt. %)
mal Maturity (%Ro
Content
Basin/Gross Ar
ShaleFormatio
Geologic Age
epositional Enviro
R
e
s
o
u
r
c
e
Oil P
OIP C
Riske
Riske
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prosp
Thick
Depth
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReser
Avera
Therm
Clay
B
a
s
i
c
D
a
t
a
De
nd Mauritania)
indouf and T
cally recove
shale oil/co
overable sha
rties and Sha
M
erties and Sh
M
2,0
cally Rich 6
5
l 6,600 -
e 9,0
Mo
Overp
4.0
0.8
Med
Assoc
6
2
0
f/mi
2
)
cf)
o)
rea
on
e
onment
Organic
Net
Interval
Average
hase
Concentration (MM
ed OIP (B bbl)
ed Recoverable(B
pectiveArea(mi
2
)
kness (ft)
h (ft)
rvoir Pressure
ageTOC (wt. %)
mal Maturity (%Ro
Content
Basin/Gross Are
ShaleFormatio
Geologic Age
epositional Enviro
EIA/ARI W
XIV-2
Tadla basins
rable shale g
ndensate in-
ale oil/conde
ale Gas Reso
Mauritania
ale Oil Resou
Mauritania
020 4,6
60 6
54 5
- 11,000 6,600 -
000 10,0
od.
press.
Mod. Ov
0% 4.0
85% 1.15
dium Med
c. Gas Wet
6.8 18
2.7 17
0.3 3.
Tin
(77,00
L. Si
L. S
Ma
2,0
cally Rich 6
5
6,600 -
e 9,0
Mo
Overp
4.0
0.8
Med
O
7
3
0.
Mbbl/mi
2
)
bbl)
o)
ea
on
e
onment
World Shale Ga
s contain ris
gas resourc
-place of 5 b
ensate resou
ources of Mo
urces of Mor
670 12,
0 6
4 5
13,000 6,600 -
000 11,
erpress. Mod. Ov
0% 4.0
5% 2.8
dium Med
Gas Dry
8.9 22
7.7 54
.5 13
douf
00mi
2
)
lurian
ilurian
arine
020 4,6
60 6
54 5
11,000 6,600 -
000 10,
od.
press.
Mod. Ov
0% 4.
85% 1.1
dium Med
Oil Cond
.9 1
.2 1
16 0.
Tindouf
(77,000mi
2
)
L. Silurian
L. Silurian
Marine
s and Shale Oil
sked shale g
ces, Table X
billion barrel
urces, Table
orocco, Sahar
rocco, Sahar
Ta
(2,80
L. Si
L. S
Ma
380 1,
60 3
54 1
- 14,000 3,280
000 6,
verpress. Unde
0% 2.
80% 2.2
dium Me
Gas Dry
2.0 49
4.5 20
3.6 3
670
60
54
- 13,000
,000
verpress.
0%
15%
dium
ensate
.7
.6
.08
Resource Asses
gas in-place
IV-1. In add
ls, with 0.2 b
XIV-2.
ra Desert and
ra Desert and
adla
00mi
2
)
ilurian
ilurian
arine
670
328
97
- 9,840
560
rpress.
0%
25%
dium
y Gas
9.0
0.5
3.1
ssment

of 95
dition,
billion
d
d
XIV. Morocc

June, 2013
INTROD
T
Silurian
deposited
presence
establish
T
basins, d
highs du
A
such geo
available
confident
oil resou
T
gas and
Morocco
Tadla Ba

co (Including We

DUCTION
The primary
Hot Shale,
d during a re
e of organic
hed boundar
The presenc
does not gu
ring the earl
Accurately id
ologically co
e in Morocco
tiality. As th
rce assessm
This report as
oil resource
(extending
asin.
estern Sahara an
shale resou
which cons
egional anox
c-rich Siluri
ies of hydroc
ce of a thic
uarantee the
y Silurian m
entifying pro
omplex area
o and its ne
his data beco
ment of Moro
ssesses the
s based on
into Algeria
nd Mauritania)
urce on Mor
sists of thin b
xic event. D
an shales,
carbon basin
k Silurian s
e presence
ay not have
omising sha
as requires
eighboring c
omes more
occo may be
two basins
publically av
a, Western S
EIA/ARI W
XIV-3
rocco, Mauri
but very orga
Data from we
although n
ns.
section, obs
of organic-r
received or
ale basins an
significant a
countries be
publically av
e possible.
which appe
vailable data
Sahara, and
World Shale Ga
itania and W
anic-rich lay
ells drilled ac
not always
served in m
rich shale, a
rganic-rich s
nd estimatin
amounts of
ecause of li
vailable, a m
ar to have th
a: the Tindou
d Mauritania
s and Shale Oil
Western Sah
yers of marin
cross the co
within the
many Morocc
as areas th
ediments, F
ng their reso
data, which
imited well
more rigorou
he highest p
uf (Zag) Bas
a), and the c
Resource Asses
hara is the
ne organic m
ountry confirm
current for
can hydroca
at were reg
igure XIV-2.
ource potent
h are not w
drilling and
us shale gas
potential for s
sin in the sou
central Moro
ssment

lower
matter
m the
rmally
arbon
gional
.
2

tial in
widely
data
s and
shale
uth of
occan
XIV. Morocc

June, 2013
co (Including We

Figure XIV-2.
estern Sahara an
. Sedimentary

nd Mauritania)
y Depositional
EIA/ARI W
XIV-4
Environment
World Shale Ga
t in Morocco,
s and Shale Oil
Ordovician-De
Resource Asses
evonian
2

ssment

XIV. Morocc

June, 2013
1. T
1.1 G
T
covering
by the A
Although
Paleozoi
depressio
northern
T
Carbonife
and Carb
the Herc
heat flow
Carbonife
as the s
Hercynia
T
and high
depth an
Mauritan
prospect
basin, Fi
eastern b
W
per 5,00
througho
internatio
not yet in
co (Including We

TINDOUF B
Geologic Se
The Tindouf
a 31,660-m
Atlas Mounta
h once cover
c now crop
on with a br
margin.
The Tindouf
erous time,
boniferous (
cynian defor
w through th
erous. Uplif
hales were
an orogeny.
This report fo
her confidenc
nd thermal m
ia and Wes
ive area is
igure XIV-4.
boundary is
While the dril
00 mi
2
, the
out the basi
onal compan
n the public d
estern Sahara an
BASIN
etting
Basin is th
mi
2
area in Mo
ains and Oug
red unconfor
ps out over
road gentle s
f Basin wa
accumulatin
Visean) sha
rmation and
e basin cau
ft and erosio
not buried
ocuses on th
ce of remain
maturity, we
stern Sahara
the 1,000-m
.
4
The sou
the Algeria B
lling density
data sugg
in.
2
Additio
nies in partn
domain.

nd Mauritania)
he westernm
orocco, Wes
garta Arch t
rmably by a
much of t
southern fla
as a large
ng multiple
ales, Figure
d the prospe
sed the Tind
on of these s
deep enoug
he Lower Silu
ning gas sa
have identi
a portion of
meter depth
thern bound
Border.
in the basin
gest that or
onal well a
ership with
EIA/ARI W
XIV-5
most of the
stern Sahara
to the north
blanket of M
he region.
nk and a ste
sediment
layers of org
XIV-3.
3
Ho
ectivity of the
douf Basin s
shales may h
gh to replen
urian Hot S
turation in t
fied a 19,07
f the Tindou
contour on
dary is the
n is extreme
rganic-rich,
nd seismic
Moroccan o
World Shale Ga
major Nort
a and Mauri
and the Re
Mesozoic to
The Tindo
eeply dippin
depocenter
ganic-rich S
owever, thes
ese shale fo
shales to re
have caused
nish hydroca
hale, which
this shale in
70-mi
2
prosp
uf Basin. Th
n the upthru
0.7% R
o
the
ely low, with
basal Silur
data have
il company,
s and Shale Oil
th African P
tania. The b
eguibate Ma
early Tertiar
ouf Basin is
ng, more stru
r from late
Silurian, Dev
se deposits
ormations is
each high ma
d significant
arbons dissi
h has greate
nterval. Thro
pective area
he northern
sted northe
ermal matu
an average
rian shales
been colle
ONHYM, bu
Resource Asses
Paleozoic ba
basin is bou
ssif in the s
ry sediments
s an asymm
ucturally com
e Ordovicia
vonian (Fras
were affecte
uncertain.
aturity durin
underpressu
pated during
er data availa
ough mappi
a in the Moro
boundary o
rn portion o
rity contour.
e of only one
were depo
ected by va
ut these dat
ssment

asins,
unded
south.
s, the
metric
mplex
an to
snian)
ed by
High
g the
uring,
g the
ability
ng of
occo,
of the
of the
. The
e well
osited
arious
ta are
X

J
S
2
XIV. Morocco (Includ
June, 2013
Figure XIV-3. T
Source: Longreach P
2010
ing Western Sahara
Tindouf Basin Str
Column
Petroleum Corporate
and Mauritania)
ratigraphic
Presentation,
So

X
ource: Boote, 2002.
A
XIV-6
Figure X
Silurian
HotShale
EIA/AR
XIV-4. Tindouf Ba

RI World Shale Gas a

asin Cross Sectio
nd Shale Oil Resourc
on
ce Assessment
A
XIV. Morocc

June, 2013
1.2 R
W
from 6,6
averagin
generatio
north acr
estimated
Source: AR
co (Including We

Reservoir P
Within the Tin
600 to 14,00
g 4%. It is
on, due to th
ross the bas
d at 54 ft, ba
Figure XIV-5.
I, 2013
estern Sahara an
Properties
ndouf Basin
00 ft, Figure
s likely that
he basins v
sin, ranging
ased on data
. Tindouf Basi

nd Mauritania)
(Prospecti
s prospectiv
e XIV-5. P
the TOC c
very high the
from 0.7% t
a from a wel
in Prospective
EIA/ARI W
XIV-7
ive Area)
ve area, the
Present day
content was
ermal matur
to over 3%
l drilled in th
e Area, Moroc
World Shale Ga
depth to the
TOC conte
higher duri
rity.
5
Therm
R
o
.
4
Organ
he southern f
cco, Western S
s and Shale Oil
e Silurian H
ent ranges
ing the time
mal maturity
ic-rich net s
flank of the
Sahara and Ma
Resource Asses
Hot Shale ra
from 1% to
e of hydroca
increases t
shale thickne
basin.
6

auritania
ssment

anges
o 7%,
arbon
to the
ess is
XIV. Morocc

June, 2013
1.3 R
W
Morocco
concentr
resource
organic-r
W
Tindouf B
for wet s
risked sh
technical
billion ba
recovera
1.4 R
T
countrys
the drillin
San Leo
license.
7

co (Including We

Resource A
We estimate
, Mauritania
ration of 19
e concentrati
rich, it is thin
Within the ov
Basin contai
shale gas an
hale gas in-p
lly recoverab
arrels of sha
ble shale oil
Recent Act
The Morocca
s shale gas
ng of a shale
on Energy (

estern Sahara an
Assessmen
that the wet
a and Wes
to 22 Bcf/m
on of 8 millio
n, limiting its
verall 19,02
ins a 12,380
nd shale con
place for the
ble shale ga
ale oil/conde
l resource.
ivity
an national
potential sin
e gas explor
(Ireland) an

nd Mauritania)
nt
t and dry ga
stern Sahara
mi
2
. The oil
on barrels/m
resource co
0-mi
2
prosp
0-mi
2
area p
ndensate, a
Tindouf Ba
as resource.
nsate in-pla
oil and ga
nce mid-201
ration well. T
d Longreac
EIA/ARI W
XIV-8
as prospectiv
a portions
prospective
mi
2
plus asso
oncentration.
pective area
rospective fo
nd a 2,020-
sin is estima
In addition
ace, with 0.2
as compan
0. It has p
The well is p
ch Oil and
World Shale Ga
ve area of th
of the Tind
e area of the
ociated gas.
.
, the Lower
or dry gas, a
-mi
2
area pr
ated at 75 T
n, the Tindo
2 billion barre
y, ONHYM
plans to colle
proposed to
Gas (Canad
s and Shale Oil
he Silurian
douf Basin
e Silurian H
While the s
r Silurian H
a 4,670-mi
2

rospective fo
Tcf, with 17 T
uf Basin has
els as the ri
, has been
ect seismic
be drilled in
da) on the
Resource Asses
Hot Shale i
has a reso
Hot Shale h
shale format
Hot Shale i
area prospe
or shale oil.
Tcf as the ris
s an estima
isked, techn
n evaluating
data followe
n partnership
Zag explor
ssment

in the
ource
has a
ion is
n the
ective
The
sked,
ated 5
nically
g the
ed by
p with
ration
XIV. Morocc

June, 2013
2. T
2.1 G
T
Morocca
sediment
in areas
the Cent
and the
southeas
a northw
A
exposed
generate
the basin
shales ge
underpre
T
contour,
available
apparent
2.2 R
T
Fkih Ben
shallowe
been ero
rich shal
content r
values cl
values of

co (Including We

TADLA BAS
Geologic Se
The Talda Ba
n Mesta.
tary strata, F
where uplift
ral Massif in
Rehamna M
st section, ch
est section,
As in the Ti
the Silurian
e hydrocarbo
n by approxi
enerated ad
essuring, alth
The 1,670-m
various faul
e in the sou
t lack of orga
Reservoir P
The Lower S
n Salah Fa
er. Average
oded, the Sil
e, of which
reaches 10-
oser to 2%.
f 1.5% to 3%
estern Sahara an
SIN
etting
asin is a 2,8
The basin
Figure XIV-6
t has cause
n the north, t
Massif in th
haracterized
with thick ca
indouf Basin
n, Devonian
ons. While t
mately 6,50
dditional hyd
hough data a
i
2
prospectiv
lts and the A
thern portio
anic-rich Silu
Properties
ilurian Hot
ult, ranging
depth in th
lurian sectio
200 ft is n
12%,
10
but d
The Siluria
% place the s
nd Mauritania)
00-mi
2
intra-
contains ne
6. Paleozoic
d their eros
the Atlas Mo
he west. T
d by complex
arboniferous
n, regional
and Ordov
these shales
00 ft of Creta
rocarbons a
are not avail
ve area of t
Atlas Mount
n of the ba
urian strata.
(Prospecti
Shale in th
from 3,280
he prospectiv
on can reach
net shale.
9

deep well da
an shale is th
shale in the d
EIA/ARI W
XIV-9
-cratonic bas
early 16,500
c rocks dom
ion, Figure
ountains in t
he Fkih Be
x tectonics i
s strata and
uplifting du
vician shales
s were subs
aceous and
after reburial
lable to conf
the Tadla B
tain range to
sin where t
ive Area)
he Tadla Bas
0 to 9,840
ve area is e
h up to 800 f
TOC data f
ata from ins
hermally hig
dry gas wind
World Shale Ga
sin located i
0 feet of P
inate the se
XIV-7. The
the east, the
n Salah Fa
including he
minor, infreq
uring the He
s after they
sequently bu
Tertiary sed
l.
8
As such,
firm this ass
Basin is bou
o the east, F
he prospect
sin reaches
ft.
8
To the
estimated at
feet thick, w
from outcro
side the pros
hly mature o
dow.
8

s and Shale Oil
in central Mo
Paleozoic th
ediments in t
e Talda Bas
e Jebiliet Ma
ault divides
eavy folding
quent faultin
ercynian an
had mature
uried on the
diments, it is
, this basin
umption.
unded by the
Figure XIV-8
tive area is
maximum d
e east, the
t 6,560 ft. W
with over 300
ps suggest
spective are
over the pros
Resource Asses
orocco withi
hrough Cen
this basin, ex
in is bounde
assif in the s
the basin in
and faulting
ng.
8

nd Alpine ev
ed and beg
western ed
s unlikely tha
is at high ris
e 1,000-m d
8. Little dat
bounded b
depth west o
shale beco
Where it ha
0 feet of org
that the org
ea indicates
spective are
ssment

in the
ozoic
xcept
ed by
south,
nto a
g, and
vents
un to
ge of
at the
sk for
depth
a are
y the
of the
omes
as not
ganic-
ganic
TOC
ea; R
o

X

J
XIV. Morocco (Includ
June, 2013
Figu
ing Western Sahara

ure XIV-6. Tadla B
Lower
Silurian
and Mauritania)
Basin Stratigraph

X
hic Column
8

XIV-10
Fig
EIA/ARI W
ure XIV-7. Tadla
World Shale Gas and

a Basin Cross Se
ections
8

e Assessment
XIV. Morocc

June, 2013
Source: AR
2.3 R
T
49-Bcf/m
shale gas
2.4 R
N
co (Including We
I, 2013
Resource A
The Silurian
mi
2
dry gas r
s in-place, w
Recent Act
No shale gas
estern Sahara an
Figure X
Assessmen
Hot Shale
resource con
with 3 Tcf as
ivity
s exploration

nd Mauritania)
IV-8. Tadla Ba
nt
in the Tadla
ncentration.
the risked, t
activity has
EIA/ARI W
XIV-11
asin Prospecti
a Basins 1,6
The basin
technically r
been report
World Shale Ga
ive Area, Moro
670-mi
2
pros
contains an
recoverable
ted in the Ta
s and Shale Oil
occo
pective area
n estimated
shale gas re
adla Basin o
Resource Asses
a has a mod
20 Tcf of r
esource.
of Morocco.
ssment

erate
risked
XIV. Morocc

June, 2013
3. S
3.1 M
M
dry gas
has 56 T
gas reso
3.2 W
T
area, a

prospect
risked d
recovera
shale oil
shale oil
3.3 M
M
Basin co
REFERE
1
Kolonic, S
T., 2002.
Relationsh
Petroleum
2
Lning, S.
Regional
3
Longreach
4
Boote, D.
Society, L
5
Zag-Bas
HYDROC
age/en-US
6
Lning, S.
Black Sha
311.
co (Including We
SHALE RES
Morocco
Morocco has
prospective
Tcf of risked
urce.
Western Sa
The Western
4,670-mi
2
w
ive area. W
ry, wet and
ble shale g
/condensate
resource.
Mauritania
Mauritania ha
ntaining only
ENCES
S., Sinninghe Da
Geochemical
hips Between P
m Geology, vol. 2
., Craig, J., Loyd
Distribution and
h Petroleum Cor
.R.D., Clark-Low
London, Special
Draa Basin. O
CARBURES/Pros
S/Default.aspx?C
, Loydell, D.K., S
ales in Morocco:
estern Sahara an
SOURCES
a 1,670-mi
2
area in the
shale gas in
ahara
Sahara po
wet shale g
Within these
d associate
as resource
e in-place, w
as a small 50
y minor shal
amste, J.S., Bott

Characterizatio
Paleoenvironmen
25, no. 3, p. 325-
dell, D.K., Storch
Depositional Mo
porate Presenta
wes, D.D., and
Publications 132
Opportunities for
spectivit%C3%A
Cat=27.
Sutcliffe, O., Ait
Which are the
nd Mauritania)
BY COUN
2
dry gas pr
Tindouf Ba
n-place, with
rtion of the
gas/condens
prospective
d shale ga
e. In additio
with 0.2 bill
0-mi
2
wet sh
le gas and o
tcher, M.E., Kuy
on of Cenoman
ntal Conditions a
-350.
h, P., and Fitche
odel. Earth-Sci
ation, 2010.
Traut, M.W., 1
2, no. 1, p. 7-68.
r Hydrocarbon
A9sdesBassins/E
Salem, A., Zane
Organically Rich
EIA/ARI W
XIV-12
TRY
ospective ar
asin. Within
h 12 Tcf as t
Tindouf Bas
sate prospe
areas, Wes
as in-place,
on, Western
ion barrels
hale gas/con
oil resources
ypers, M.M.M., K
ian/Turonian Bla
and Early Sulph
es, B., 2000. L
ence Reviews, v
998. Palaeoz
.
E & P in Mo
ExplorationR%C3
ella, E., Craig, J.
hest Horizons?
World Shale Ga
rea in the Ta
n these two
the risked, t
sin has a 4,
ective area,
stern Sahara
with 8 Tcf
n Sahara ha
as the risk
ndensate pro
s.
Kuhnt, W., Beck
ack Shales Fro
hurization of Sed
Lower Silurian `H
vol. 49, no. 1-4,
zoic Petroleum
orocco. ONHYM
3%A9gionale/On
and Harpel, D.A
Journal of Petr
s and Shale Oil
adla Basin a
prospective
technically re
,380-mi
2
dry
and a 2,0
a has an est
f as the ris
as 5 billion
ed, technic
ospective ar
mann, B., Sche
om the Tarfaya
dimentary Organ
Hot Shales' in N
p. 121-200.
Systems of No
M, 2010. http
nshore/BasDraa
A.T., 2008. Silu
roleum Geology
Resource Asses
and an 8,00
e areas, Mor
ecoverable s
y gas prospe
020-mi
2
sha
timated 39 T
sked, techn
barrels of r
cally recove
rea in the Tin
eder, G., and W
Basin (SW Mo
nic Matter. Jou
orth Africa and A
rth Africa. Geo
://www.onhym.c
aBasin/tabid/353
urian - Lower De
, vol. 23, no. 3,
ssment

00-mi
2

rocco
shale
ective
le oil
Tcf of
nically
risked
erable
ndouf
Wagner,
orocco):
urnal of
Arabia:
ological
com/en/
3/langu
evonian
p. 293-
XIV. Morocc

June, 2013
7
San Leon
8
Jabour, H
Associatio
9
Al Moundi
London, S
10
Tadla-H
www.onhym
US/Default.a
co (Including We
Energy, Corpora
H. and Nakayam
on of Petroleum
r, M., Bouchta, R
Special Publicatio
Haouz Basin.
m.comHYDROCARB
aspx?Cat=27.
estern Sahara an
ate Presentation
ma, K., 1988.
Geologists, vol.
R., and Jabour,
ons 132, no. 1, p
. Opportunitie
URES/Prospectivit%
nd Mauritania)

n, 2010.
Basin Modelin
72, no. 9, p. 105
H., 1998. An O
p. 283-296.
es for Hydro
%C3%A9sdesBassin
EIA/ARI W
XIV-13
g of Tadla Bas
59-1073.
Overview of the
ocarbon E
s/ExplorationR%C3
World Shale Ga

sin, Morocco, fo
Petroleum Syst
& P in
3%A9gionale/Onshor
s and Shale Oil
or Hydrocarbon
tems of Morocco
Morocco. ONH
re/HaouzTadlaBasin
Resource Asses
Potential. Am
o. Geological S
HYM, 2010.http:/
n/tabid/347/language
ssment

merican
Society,
// /en/
e/en-
XV. Algeria

June, 2013

XV. A
SUMMA
A
Silurian T
these sh
Algeria;
Tindouf b
Source: AR

ALGER
ARY
Algerias hyd
Tannezuft S
hale gas an
the Timimo
basins in sou
I, 2013.
IA
rocarbon ba
Shale and th
d shale oil
un, Ahnet a
uthwestern A
Figure XV
XV
asins hold tw
he Devonia
basins: the
and Mouydi
Algeria, Figu
V-1. Shale Gas
EIA/ARI W
V-1
wo significan
n Frasnian
e Ghadames
r basins in
ure XV-1.
s and Shale O
World Shale Gas
nt shale gas
Shale. Th
s (Berkine)
central Alg
Oil Basins of A
and Shale Oil R
and shale o
is study exa
and Illizi b
eria; and th
Algeria
Resource Assess

oil formations
amines seve
basins in ea
he Reggane
sment
s, the
en of
astern
e and
XV. Algeria

June, 2013

O
shale gas
XV-1A, 1
and cond
resource
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Res
Ave
The
Cla
R
e
s
o
u
r
c
e
Gas
GIP
Ris
Ris
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pro
Thi
Dep
B
a
s
i
c
D
a
t
a
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRe
Av
Th
Cl
R
e
s
o
u
r
c
e
Ga
GI
Ri
Ri
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pr
Th
De
B
a
s
i
c
D
a
t
a

Our assessm
s in-place, w
1B and 1C.
densate in-p
e, Table XV-2
Table
Table
Organi
Net
Interva
Averag
servoir Pressure
erageTOC (wt. %)
ermal Maturity (%R
ay Content
s Phase
P Concentration (Bc
sked GIP (Tcf)
sked Recoverable(T
ospectiveArea(mi
2
)
ckness (ft)
pth (ft)
Basin/Gross Ar
ShaleFormatio
Geologic Age
Depositional Enviro
Orga
Net
Inter
Aver
eservoir Pressure
verageTOC (wt. %
hermal Maturity (%
ay Content
as Phase
P Concentration (
sked GIP (Tcf)
sked Recoverable
rospectiveArea(m
hickness (ft)
epth (ft)
Basin/Gross
ShaleForma
Geologic A
Depositional Env
ment is that
with 707 Tcf
In addition
place, with 5
2.
e XV-1A. Sha
e XV-1B. Sha
2,7
cally Rich 27
24
al 8,000 -
ge 8,5
Mo
Overp
6.0
0.85
Med
Assoc
35
48
4.
Ro)
cf/mi
2
)
Tcf)
)
rea
on
e
onment
U
anically Rich
rval 3,
rage
Mod
%)
%Ro)
(Bcf/mi
2
)
e(Tcf)
mi
2
)
s Area
ation
Age
vironment
XV
these seven
as the riske
, six of thes
5.7 billion ba
le Gas Reserv
le Gas Reserv
20 3,840
75 275
48 248
10,500 9,000 - 10,
00 9,500
d.
ress.
Mod.
Overpres
0% 6.0%
5% 1.15%
ium Medium
c. Gas Wet Gas
.4 111.4
.2 213.8
8 42.8
Frasnian
U. Devoni
Marine
Frasnian
U. Devonian
Marine
32,040
200
180
300 - 9,000 5,
6,000
d. Overpress. Mod
4.0%
1.70%
Medium
Dry Gas
72.9
467.1
93.4
Timimou
(43,700mi
EIA/ARI W
V-2
n basins co
d, technicall
se basins ho
arrels as the
voir Properties
voir Properties
3,490
275
248
000 10,000 - 16,000
13,000
ss.
Mod.
Overpress.
6.0%
1.70%
m Medium
s Dry Gas
133.9
233.7
58.4
Ghadames/Berk
(117,000mi
2
)
n
ian
Tannezuft
Silurian
Marine
41,670
100
90
000 - 15,000 3,
10,000
d. Overpress.
O
2.8%
2.00%
Medium
Dry Gas
35.5
295.5
59.1
n
i
2
)
World Shale Gas
ntain approx
ly recoverab
old 121 billio
risked, tech
s and Resourc
s and Resourc
6,050
115
104
0 10,000 - 14,500 1
10,500
Mod.
Overpress.
5.7%
1.15%
Medium
Wet Gas
42.9
129.9
26.0
ine
Tannez
Siluria
Marin
1,650
275
248
,300 - 6,600 5,00
5,000
Mod.
Overpress. Ov
4.0%
1.15%
Medium M
Wet Gas D
77.6
25.6
3.8
A
(20
Frasnian
U. Devonian
Marine
and Shale Oil R
ximately 3,4
ble shale gas
on barrels o
hnically reco
ces of Algeria
ces of Algeria
22,080
115
104
1,000 - 16,000 3,3
13,000
Mod.
Overpress. Ov
5.7%
1.90%
Medium M
Dry Gas W
54.5
601.3
150.3
zuft
an
ne
Tan
Sil
M
5,740 11
60 3
54 2
00 - 9,500 6,000
7,000 8
Mod.
verpress.
M
Ove
3.0% 2
1.70% 2.
Medium Me
Dry Gas Dry
21.6 1
24.8 2
5.0 5
Ahnet
,200mi
2
)
n
Resource Assess

419 Tcf of r
s resource, T
of risked sha
overable sha
a.
a.
9,840 16,
180 18
162 16
300 - 8,000 3,300
5,000 5,0
Mod.
verpress.
Mo
Overp
5.7% 5.7
1.15% 1.7
Medium Med
Wet Gas Dry
50.9 60
100.1 20
15.0 40
Illizi
(44,900mi
2
)
Tannezuft
Silurian
Marine
Mouy
(22,300
nnezuft Tann
lurian Silur
arine Mar
1,730 12,8
330 60
297 54
- 10,500 5,000 -
,000 6,5
Mod.
rpress.
Mo
Overp
2.8% 3.0
00% 2.20
edium Med
y Gas Dry G
09.0 18
55.7 47
51.1 9.
sment
risked
Table
ale oil
ale oil

760
80
62
- 8,000
000
od.
press.
7%
70%
dium
Gas
0.7
03.6
0.7
ydir
0mi
2
)
ezuft
rian
rine
840
0
4
10,000
500
od.
press.
0%
0%
dium
Gas
.5
.6
5
XV. Algeria

June, 2013

R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRe
Av
Th
Cl
R
e
s
o
u
r
c
e
Ga
GI
Ri
Ri
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pr
Th
De
B
a
s
i
c
D
a
t
a
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRese
Avera
Therm
Clay
R
e
s
o
u
r
c
e
Oil P
OIP C
Riske
Riske
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pros
Thick
Dept
B
a
s
i
c
D
a
t
a
De

Table
Tab
Org
Net
Inte
Ave
eservoir Pressure
verageTOC (wt. %
hermal Maturity (%
lay Content
as Phase
IP Concentration
isked GIP (Tcf)
isked Recoverable
rospectiveArea(m
hickness (ft)
epth (ft)
Basin/Gross
ShaleForm
Geologic
Depositional En
Organicall
Net
Interval
Average
ervoir Pressure
ageTOC (wt. %)
mal Maturity(%Ro)
Content
Phase
Concentration(MMbb
edOIP (B bbl)
edRecoverable(B bb
pectiveArea(mi
2
)
kness (ft)
h(ft)
Basin/Gross Area
ShaleFormation
Geologic Age
epositional Environm
e XV-1C. Sha
ble XV-2. Shal

anically Rich

erval 5,5
erage
O
e
%)
%Ro)
(Bcf/mi
2
)
e(Tcf)
mi
2
)
s Area
mation
Age
vironment
2,720
yRich 275
248
8,000 - 10,500
8,500
Mod.
Overpress.
6.0%
0.85%
Medium
Oil
43.7
59.4
2.97
Fra
U. D
M
bl/mi
2
)
bl)
ment
XV
le Gas Reserv
le Oil Reservo
2,570
330
297
500 - 14,500 6,6
10,000
Mod.
Overpress. O
3.0%
1.15%
Medium
Wet Gas
103.9
53.4
8.0
Frasnian
U. Devonia
Marine
3,840
275
248
0 9,000 - 10,000 10
9,500
Mod.
Overpress. O
6.0%
1.15%
Medium
Condensate C
9.7
18.7
0.93
Ghadames/Berkine
(117,000mi
2
)
asnian
Devonian
Marine
EIA/ARI W
V-3
voir Properties
oir Properties
2,110
260
234
600 - 16,000 5,00
11,000
Mod.
verpress. Ov
3.0%
1.70%
Medium M
Dry Gas W
97.3
41.0
8.2
n
an
Reggane
(40,000mi
2
)
Illi
(44,900
Tannezuft Tanne
Silurian Silur
Marine Mar
6,050 9,8
115 18
104 16
,000 - 14,500 3,300 -
10,500 5,0
Mod.
Overpress.
Mo
Overp
5.7% 5.7
1.15% 1.15
Medium Med
Condensate Conde
3.1 6.
9.5 12
0.47 0.5
World Shale Gas
s and Resourc
and Resource
10,150 2
130
117
00 - 9,500 7,500
8,000 1
Mod.
verpress.
M
Ove
4.0% 4
1.15% 1
Medium M
Wet Gas Dr
38.3
77.8 4
11.7
)
Tannezuft
Silurian
Marine
zi
0mi
2
)
Ahnet
(20,200mi
2
)
ezuft Frasnian
rian U. Devonian
rine Marine
840 1,650
80 275
62 248
- 8,000 3,300 - 6,600
000 5,000
od.
press.
Mod.
Overpress.
7% 4.0%
5% 1.15%
ium Medium
ensate Condensate
5 14.4
.8 4.8
51 0.19
and Shale Oil R
ces of Algeria
es of Algeria.
24,600 5,
230 6
207 5
0 - 16,000 6,600
2,000 10
Mod.
erpress.
M
Over
4.0% 4.
.80% 1.1
edium Me
ry Gas Wet
94.4 1
464.5 2
92.9 3
)
Frasnian
n U. Devonian
Marine
2,570
330
297
0 5,500 - 14,500
10,000
Mod.
Overpress.
3.0%
1.15%
Medium
e Condensate
11.4
5.9
0.24
Reggan
(40,000m
Resource Assess

a.
340 23,8
60 60
54 54
- 13,000 6,600 -
,000 11,0
od.
rpress.
Mo
Overp
.0% 4.0
15% 2.50
dium Med
t Gas Dry G
8.9 24
0.2 115
3.0 23
Tindouf
(77,000mi
2
)
Tannezuft
Silurian
Marine
Tin
(77,0
Tannezuft Tan
Silurian Sil
Marine Ma
10,150 5
130
117
5,000 - 9,500 6,600
8,000 10
Mod.
Overpress.
M
Ove
4.0% 4
1.15% 1.
Medium Me
Condensate Cond
3.9
8.0
0.32 0
ne
mi
2
)
sment

800
0
4
14,000
000
d.
ress.
0%
0%
ium
Gas
.2
5.2
.0
ndouf
000mi
2
)
nnezuft
lurian
arine
,340
60
54
- 13,000
0,000
Mod.
rpress.
4.0%
15%
edium
densate
1.7
1.8
0.07
XV. Algeria

June, 2013

INTROD
F
depositio
Hercynia
day Alge
Devonian
rocks in t
These ev
that toda
T
identifyin
mudston
to date in
the Devo
G
of gas (in
in the sh
ranges fr
half due
Frasnian
T
depositio
Figure XV

DUCTION
or most of
onal basin.
1

an event) est
eria.
2
Two
n, provided t
these basins
vents, plus a
y define and
The stratigra
ng the Siluri
e that are th
n Algeria. T
onian section
Geochemical
ncluding sec
hales. The
rom 2% to 4
to the ther
Shale range
The following
onal and str
V-1(provided
Paleozoic
The separa
tablished the
major tran
the depositio
s. Subsequ
additional co
d characteriz
phic column
an Tannezu
he principal
The stratigra
n, which has
modeling in
condary crac
present day
4%. Howeve
rmal matura
es more wid
g series of th
ructural sett
d previously

XV
time, North
ation and su
e seven indi
sgressions,
on of the org
ent transpre
ompression a
ze these bas
n for the sh
uft black mu
shale sourc
phy of the S
s been influe
ndicates tha
cking of gene
y total orga
er, the TOC
tion process
dely, from 1%
hree regiona
ing for six
y) shows the
EIA/ARI W
V-4
h Africa (inc
ubsequent c
ividual basin
first in the
ganically rich
essional mov
and movem
sins.
3

hale basins
udstone inte
ce rocks for
Silurian secti
enced by mo
t these shal
erated oil), w
nic content
of the shale
s.
6
The pre
% to 8%, dec
l cross-secti
of these ba
location of t
World Shale Gas
cluding Alge
collision of L
n outlines an
e Silurian a
h marine (ge
vements rea
ent, caused
of Algeria i
erval and the
the convent
ion is gener
ore localized
es may hav
with some po
(TOC) of th
e has been r
esent day T
creasing wes
ions provide
asins, Figure
these three
and Shale Oil R
eria) was a
Laurasia and
nd uplift stru
nd the sec
enerally Type
activated the
d the local up
is provided
e Upper De
tional oil and
rally more co
deposition
5
.
ve generated
ortion of this
he Silurian
reduced by
TOC of the
stward acros
es a useful p
es XV-3,
4
X
cross-sectio
Resource Assess

a single ma
d Gondwana
ctures of pre
cond in the
e I and II) so
e older struct
plifts and ero
in Figure X
evonian Fras
d gas discov
ontinuous th
.
d over 26,00
s gas still reta
Tannezuft S
as much as
Upper Devo
ss the region
perspective o
XV-4
4
and X
ons.
sment
assive
a (the
esent
Late
ource
tures.
osion
XV-2,
4

snian
vered
han of
00 Tcf
ained
Shale
one-
onian
n.
of the
XV-5.
1

XV. Algeria

June, 2013

Figu
Source: Kle

ure XV-2. Stra
(Ma
tt, 2000A.
atigraphic Co
ajor reservoir r
XV
olumn and Nom
rocks are sho
EIA/ARI W
V-5
menclature fo
own in yellow a
World Shale Gas
or Illizi and Gh
and source ro
and Shale Oil R
hadames (Ber
ocks in gray.)
Resource Assess

kine) Basins.

sment

XV. Algeria

June, 2013

Source: Kle

Source: Kle

Figu
tt, 2000A.
Fi
tt, 2000A.
ure XV-3. Cros
igure XV-4. C
XV
ss Section A-A
Cross Section
EIA/ARI W
V-6
A: Ghadames
B-B: Ahnet, M
World Shale Gas
s (Berkline) an
Mouydir and I
and Shale Oil R
nd Illizi Basins
Illizi Basins
Resource Assess

s
sment
XV. Algeria

June, 2013

Source: Kle

Fig
tt, 2000B.
gure XV-5. C

XV
ross-Section
EIA/ARI W
V-7
C-C: Timimo
World Shale Gas
oun and Regg
and Shale Oil R
gane Basins

Resource Assess

sment
XV. Algeria

June, 2013

1. G
1.1 G
T
southern
structura
The cent
Ordovicia
Tannezu
Figures X
two shale
In
an organ
mapped
western
erosiona
prospect
T
Basin, co
portion o
area in th
D
Upper D
area for
southern
maturity
Algeria b
area in th
between
is in the
condensa

GHADAMES
Geologic Se
The Ghadam
Tunisia an
l traps for c
tral, deep po
an.
7
The G
ft and the
XV-6 and XV
e formations
n Algerias p
nic-rich mar
a 28,130-m
and norther
l limits of th
ive area is d
The central,
overing 21,4
of the prosp
he wet gas a
Deposited ab
evonian Fra
the Frasnia
boundaries
criterion of 0
border. The
he Ghadam
0.7% and 1
dry gas wind
ate window
S (BERKIN
etting
es (Berkine)
d western L
conventional
ortion of the
Ghadames
Upper Devo
V-7 provide
s.
portion of the
ine shale th
i
2
higher qua
rn boundarie
he Silurian a
defined by th
dry gas port
420 mi
2
, ha
ective area
and condens
bove the Ta
asnian Shale
an Shale in
s of the Fras
0.7% R
o
. T
northern, ea
es Basin, en
1.0%. The c
dow, with R
for the Frasn
XV
NE) BASIN
) Basin is a
Libya. The b
oil and gas
basin contai
Basin and
onian Frasn
the basin o
e Ghadame
hat increase
ality prospec
es of the Ta
and by mini
he Tunisia an
tion of the T
as thermal m
of 6,710 m
sate window
annezuft is t
e. We hav
the Ghadam
snian Shale
he eastern b
astern and s
ncompassin
central 5,010
o
of 1.3% to
nian Shale, w
EIA/ARI W
V-8
large intra-c
basin contai
s sourced fr
ins uplifted f
its two sig
ian, are loc
utline and s
es Basin, the
es in maturit
ctive area fo
annezuft Sha
mum therm
nd Algerian
Tannezuft S
maturity (R
o
i
2
has an R
.
the areally m
ve mapped a
mes Basin
e prospective
boundary of
outhern oute
g an area o
0-mi
2

portion
o over 2%. I
with R
o
betw
World Shale Gas
cratonic basi
ins a series
rom Devonia
fault blocks f
gnificant sha
cated in the
hale therma
e Silurian Ta
ty toward th
or the Tanne
ale prospec
mal maturity.
border.
hale prospe
) of 1.3% to
R
o
between 1
more limited
a 10,040-m
of Algeria.
e area are s
f the prospe
er ring of the
of 2,720 mi
2
,
n of the Fras
In between i
ween 1.0% a
and Shale Oil R
n underlying
s of reverse
an- and Silu
formed durin
ale formatio
e eastern po
al maturity co
annezuft Fo
he basin ce
zuft Shale in
ctive area ar
The easte
ective area i
o over 2%.
1.0% and 1
d and therm
i
2
higher qu
The weste
set by the m
ctive area is
e Frasnian S
, is in the oi
snian Shale
is the 2,310
and 1.3%.
Resource Assess

g eastern Alg
faults, prov
urian-age sh
ng the Camb
ons, the Sil
ortion of Alg
ontours for t
ormation con
nter. We
n this basin.
re defined b
ern border o
n the Ghada
The rema
.3%, placing
mally less m
uality prospe
ern, northern
minimum the
s the Tunisia
Shale prospe
il window wi
prospective
-mi
2
wet gas
sment
geria,
viding
hales.
brian-
lurian
geria.
these
ntains
have
The
by the
of the
ames
aining
g this
mature
ective
n and
ermal
a and
ective
ith R
o

area
s and
XV. Algeria

June, 2013

Fig

Figure XV-6.
Source: ARI, 2

gure XV-7. Gh
Source: ARI, 2
Ghadames B
2013.
hadames Basi
2013.
XV
Basin Silurian
n Upper Devo
EIA/ARI W
V-9
Tannezuft Sh
onian Frasnian
World Shale Gas
hale Outline a
n Shale Outlin
and Shale Oil R
and Thermal M
ne and Therm
Resource Assess

Maturity

mal Maturity

sment
XV. Algeria

June, 2013

1.2 R
S
Tannezu
northern
the wet
thickness
thickness
formation
U
overlying
in the oil-
The Fras
thickness
average
1.3 R
S
condensa
million b
Tannezu
the 28,13
731 Tcf o
but othe
resource
U
44 million
111 Bcf/m
in the 3,
prospect
risked, re

Reservoir P
Silurian Tan
ft Shale in t
and eastern
gas prospe
s of the Tan
s of 104 ft. T
n is particula
Upper Devo
g Upper Dev
-prone area,
snian Shale
s of 248 ft.
of 6%.
10

Resource A
Silurian Tan
ate prospec
arrels/mi
2
of
ft Shale has
30-mi
2
wet g
of wet and d
erwise favor
e of 176 Tcf o
Upper Devon
n barrels/mi
2
mi
2
of wet ga
490-mi
2
dry
ive area is
ecoverable o
Properties
nnezuft Form
the Ghadam
n edge of th
ective area
nnezuft Sha
The TOC of
arly organic-r
onian Frasn
vonian Frasn
, 9,500 ft in
has a gros
The Frasni
Assessmen
nnezuft Sha
ctive area, h
f condensat
s a resource
gas/condens
dry gas and
able reserv
of wet/dry sh
nian Frasni
2
for oil in the
as in the 3,8
y gas window
496 Tcf of
of 106 Tcf fo
XV
(Prospecti
mation. The
mes (Berkine
he basin to 1
and 13,000
ale ranges fr
f the Tannez
rich, with TO
nian Forma
nian Shale r
the wet gas/
ss thickness
ian Shale h
nts
ale. The Ta
has resourc
te. Within i
e concentrat
sate and dr
d 10 billion b
oir propertie
hale gas and
ian Shale.
e 2,720-mi
2
840-mi
2
wet
w. The risk
shale gas a
r shale gas
EIA/ARI W
V-10
ive Area)
e depth of t
e) Basin of A
16,000 ft in
0 ft in the
rom 30 to 2
zuft Shale a
OC values of
ation. The
ranges from
/condensate
s of 50 to 5
as TOC va
annezuft Sh
ce concentra
ts larger 22
tion of 55 B
ry gas prosp
barrels of co
es, we esti
d 0.5 billion b
The Frasnia
oil window;
gas/conden
ked resourc
and 78 billio
and 3.9 billio
World Shale Gas
the gas pros
Algeria rang
the basin ce
dry gas pro
200 ft, with
averages 5.7
f up to 15%.
depth of t
8,000 ft to
e area, and 1
500 ft, with
lues ranging
hale, within
ations of 43
2,080-mi
2
dr
cf/mi
2
. The
pective area
ondensate.
mate a risk
barrels of sh
an Shale has
10 million b
sate window
e in-place w
on barrels o
on barrels fo
and Shale Oil R
spective are
ges from 10
enter, avera
ospective a
an organic-
7%. The low
8

the prospec
16,000 ft, av
13,000 ft in
an average
g from 3%
its 6,050-m
3 Bcf/mi
2
of
ry gas prosp
risked reso
as of the Ta
Based on p
ked, technic
hale condens
s resource c
arrels/mi
2
of
w; and 134 B
within the ov
of shale oil/c
or shale oil.
Resource Assess

ea of the Sil
,000 ft alon
aging 10,500
rea. The g
-rich averag
wer portion o
ctive area o
veraging 8,5
the dry gas
organic-ric
to 10%, wit
mi
2
wet gas
f wet gas a
pective area
ource in-plac
annezuft Sha
presence of
cally recove
sate.
concentratio
f condensate
Bcf/mi
2
of dry
verall 10,05
condensate,
sment
lurian
g the
0 ft in
gross
e net
of the
of the
500 ft
area.
h net
th an
s and
and 3
a, the
ce for
ale is
clays
erable
ons of
e and
y gas
50-mi
2

, with

XV. Algeria

June, 2013

2. IL
2.1 G
T
line in the
generatio
bounded
on the w
the Mouy
shale for
overall sh
2.2 R
O
Upper D
thickness
8,000 ft,
of the Ta
this Type
has a the
and cond
the shale
2.3 R
W
Shale of
barrels/m
shale has
T
wet/dry s
gas and
recovera

LLIZI BASI
Geologic Se
The Illizi Bas
e slope of th
on, migratio
on the east
west by the A
ydir Basin, F
rmations are
hale gas and
Reservoir P
Only the Silu
evonian Fra
s and low th
averaging 5
annezuft Sha
e II kerogen
ermal matur
densate wind
e in the deep
Resource A
Within its 9,84
the Illizi Bas
mi
2
of shale o
s a resource
The risked re
shale gas plu
0.5 billion
ble resource
N
etting
in is located
he basemen
on and accu
t by the Tihe
Amguid-Has
Figure XV-8
e shallower
d oil prospec
Properties
urian Tannez
asnian Shale
hermal matu
5,000 ft in th
ale ranges fr
marine shal
rity (R
o
) of 1
dow (R
o
of 1
per surround
Assessmen
40-mi
2
prosp
sin has reso
oil and cond
e concentrat
esource in-p
us 13 billion
barrels of
e.
XV
d south of th
t rocks. Thi
umulation h
emboka (Ga
ssi Touareg
8.
4
The Illizi
than in the
ctive area of
(Prospecti
zuft Shale is
e in the Illiz
urity.) The
he northern
rom 30 to 33
le ranges fro
% to over 2
1% to 1.3%)
ding area of t
nt
pective area
urce concen
densate. Wi
ion of 61 Bc
place in the
barrels of s
shale oil/co
EIA/ARI W
V-11
e Ghadame
s hinge line
istories of t
aroaf) Arch,
structural ax
i Basin is lo
Ghadames
f 26,600 mi
2
ive Area)
s assessed
zi Basin has
depth of the
prospective
30 ft, with an
om 2% to 10
%. This pla
) in the north
the Illizi Bas
a for wet gas
ntrations of 5
ithin its 16,7
cf/mi
2
.
e total prosp
hale oil/cond
ndensate a

World Shale Gas
es (Berkine)
controls mu
these two b
on the sout
xis which se
ocated on a
(Berkline) B
for the Illizi
as prospec
s been exclu
e Tannezuft
area of the
n average ne
0%, with an
aces the Tan
h-central po
sin in the dry
s and conde
51 Bcf/mi
2
o
760-mi
2
pros
pective area
densate. Of
re estimate
and Shale Oil R
Basin, sepa
uch of the di
basins.
4
Th
h by the Ho
eparates the
basement h
Basin. We h
Basin.
ctive in the I
uded becau
Shale rang
basin. The
et pay of 16
average of 5
nnezuft Sha
rtion of the b
y gas window
nsate, the S
of wet shale
spective area
a is estimate
f this, 56 Tcf
ed as the ris
Resource Assess

arated by a h
ffering petro
he Illizi Bas
oggar Massif
e Illizi Basin
high and thu
have mappe
Illizi Basin.
se of insuff
es from 3,0
e gross thick
2 ft. The TO
5.7%. The
ale in the we
basin and p
w.
Silurian Tann
gas and 6 m
a for dry gas
ed at 304 T
f of wet/dry s
sked, techn
sment
hinge
oleum
sin is
f, and
from
us its
ed an
(The
ficient
00 to
kness
OC of
basin
et gas
laces
nezuft
million
s, the
Tcf of
shale
nically
XV. Algeria

June, 2013

Source: AR

Figure XV
I, 2013.
V-8. Illizi Bas

XV
in Silurian Ta
EIA/ARI W
V-12
nnezuft Shale

World Shale Gas
e, Outline and
and Shale Oil R
d Thermal Mat
Resource Assess

urity
sment
XV. Algeria

June, 2013

3. T
3.1 G
T
structura
that sepa
Timimou
The Pale
east. Th
Upper De
W
essential
the basin
Frasnian
excluding
3.2 R
S
Tannezu
15,000 ft
100 ft, w
the prosp
U
the Uppe
basin ed
shale int
averages

TIMIMOUN
Geologic Se
The Timimou
l uplifts, on
arates the T
n Basin var
eozoic sectio
he major sh
evonian Fras
We mapped
lly all of the
n where the
Shale dry
g the low (<2
Reservoir P
Silurian Tan
ft Shale in th
t in the basi
with a net org
pective area
Upper Devon
er Devonian
ge to about
erval is 200
s 4% in the p
BASIN
etting
un Basin, lo
the west by
Timimoun B
ies greatly d
on is thickes
hale source
snian Shale
a 41,670-m
Timimoun B
e Silurian is
gas prosp
2%) TOC are
Properties
nnezuft For
he Timimoun
n center, av
ganic-rich pa
.
nian Frasni
Frasnian Sh
9,000 ft in t
0 ft, with a n
prospective

XV
cated in cen
the Beni Ab
asin from th
due to erosi
st in the cent
rocks in th
.
i
2
dry gas pr
Basin, exclud
s absent, Fig
ective area
ea along the
(Prospecti
rmation. T
n Basin rang
veraging 10,
ay of 90 ft.
ian Formati
hale in the T
he basin ce
net organic-r
area.
EIA/ARI W
V-13
ntral Algeria
bbes Saddle
he Ahnet Ba
on along th
ter of the Tim
is basin are
rospective a
ding a small
gure XV-9.
that cover
e western po
ive Area).
The depth o
ges from 5,0
000 ft. The
The TOC of
tion. The d
Timimoun Ba
nter, averag
rich pay of 1
World Shale Gas
a, is bounde
e, and on the
asin. The d
e structural
mimoun Bas
e the Siluria
area for the
l area along
In addition
rs the easte
ortion of the
of the dry g
000 ft on the
e thickness o
f the Tanne
epth of the
asin ranges f
ging 6,000 ft
180 ft. The
and Shale Oil R
ed on the no
e south by t
depth and d
highs durin
sin, thinning
an Tannezuf
Tannezuft S
the north-w
n, we mapp
ern two-third
basin, Figur
gas prospec
e edges of th
of the gross
zuft Shale a
dry gas pro
from about 3
t. The thickn
TOC of the
Resource Assess

orth and ea
the Djoua Sa
deposition o
g the Hercy
g to the north
ft Shale and
Shale that co
western porti
ped a 32,04
ds of the b
re XV-10.
ctive area o
he basin to n
s shale inter
averages 2.8
ospective ar
3,300 ft alon
ness of the g
e Frasnian S
sment
ast by
addle
of the
ynian.
h and
d the
overs
ion of
0-mi
2

basin,
of the
nearly
rval is
8% in
rea of
ng the
gross
Shale
XV. Algeria

June, 2013

Fig

Figure XV-9
Source: ARI, 2
ure XV-10. Ti
Source: ARI, 2
9. Timimoun B
2013.
mimoun Basin
2013.
XV
Basin Silurian
n Upper Devo
EIA/ARI W
V-14
Tannezuft Sh
nian Frasnian
World Shale Gas
hale, Outline a
n Shale, Outli
and Shale Oil R
and Thermal M
ne and Therm
Resource Assess

Maturity
mal Maturity

sment
XV. Algeria

June, 2013

3.3 R
S
prospect
shale ga
technical
U
prospect
shale ga
technical

Resource A
Silurian Tan
ive area of t
as resource
lly recoverab
Upper Devon
ive area of t
as resource
lly recoverab
Assessmen
nnezuft Sh
the Timimou
in-place in
ble shale ga
nian Frasni
the Timimou
in-place in
ble shale ga
XV
nt
ale. The
n Basin, has
the prospe
s resource.
ian Shale.
n Basin, has
the prospe
s resource.
EIA/ARI W
V-15
Tannezuft
s a resource
ective area
The Frasnia
s a resource
ective area
World Shale Gas
Shale, with
e concentrat
is 296 Tcf,
an Shale, w
e concentrat
is 467 Tcf,
and Shale Oil R
hin the 41,6
ion of 36 Bc
with 59 Tc
within the 32
ion of 73 Bc
with 93 Tc

Resource Assess

670-mi
2
dry
cf/mi
2
. The r
cf as the ris
2,040-mi
2
dry
cf/mi
2
. The r
cf as the ris
sment
y gas
risked
sked,
y gas
risked
sked,
XV. Algeria

June, 2013

4. A
4.1 G
T
Basin, w
south tre
rich Silur
anticlines
south cro
Source: Log

T
formation
section w
remain in
the Silur
portion o

AHNET BAS
Geologic Se
The Ahnet Ba
est of the M
ending basin
rian and Dev
s and dome
oss-section,
Fig
gan, P. and Dudd
The Ahnet
ns and their
was eroded
ntact in the
ian Tannezu
of the Ahnet
SIN
etting
asin is locat
Mouydir Basi
that contain
vonian shale
es formed a
Figure XV-1
gure XV-11. S
dy, I., 1998.
Basin conta
organic-rich
during Herc
center of the
uft Shale an
Basin, Figur
XV
ted in the Sa
n, and north
ns thick (ove
es. The stru
s a result o
11.
9

Schematic Cro
ains the S
h shale inter
cynian deform
e basin.
9
W
nd 7,390 mi
res XV-12 an
EIA/ARI W
V-16
ahara Deser
h of the Hog
er 3,000 ft) o
uctures in th
of tectonic c
oss Section of
ilurian Tann
rvals. In so
mation. How
We have defi
i
2
for the De
nd XV-13.
World Shale Gas
rt Platform,
gar Shield.
of Paleozoic
he basin take
compression
f the Ahnet Ba
nezuft and
ome portions
wever, up to
ned prospec
evonian Fra
and Shale Oil R
south of the
The Ahnet
sediments in
e the form o
n, as shown
asin, Algeria
Upper De
s of the bas
o 4 km of Pa
ctive areas
asnian Shale
Resource Assess

e large Timim
Basin is a n
ncluding org
of large, elon
n on the nor
vonian Fras
in, the Pale
aleozoic dep
of 11,730 m
e in the nor
sment
moun
north-
ganic-
ngate
rth to
snian
ozoic
posits
mi
2
for
rthern
XV. Algeria

June, 2013

F

Figure XV-
Source: AR
Figure XV-13.
Source: ARI,
12. Ahnet Bas
RI, 2013.
Ahnet Basin U
, 2013.
XV
sin Silurian Ta
Upper Devoni
EIA/ARI W
V-17
annezuft Shal

an Frasnian S
World Shale Gas
e, Outline an
Shale, Outline
and Shale Oil R
d Thermal Ma
e and Thermal
Resource Assess

aturity

l Maturity

sment
XV. Algeria

June, 2013

4.2 R
S
area of th
shale ran
shale ran
places th
(R
o
> 1.3
D
area of t
gas/cond
ranges fr
the wet g
kerogen.
gas/cond
Shale ind
Ahnet Ba
4.3 R
S
Tannezu
shale gas
the risked
D
Shale in
gas/cond
barrels/m
T
area is 5
shale oil
with 0.2 b

Reservoir P
Silurian Tan
he Ahnet Ba
nges from 15
nges from 1
he prospecti
3%).
Devonian Fr
the Ahnet B
densate area
rom 60 to 27
gas/condens
The therm
densate and
dicate poros
asin.
Resource A
Silurian Tan
ft Shale in t
s resource i
d, technicall
Devonian Fr
the Ahnet B
densate pros
mi
2
of shale o
The risked sh
50 Tcf, with 9
resource in
billion barrel
Properties
nnezuft Form
asin ranges f
50 to 500 ft,
.5% to 4% a
ve area of t
rasnian For
asin ranges
a shallower
75 ft, with a
sate area. T
mal maturity
dry gas win
sity of 6% a
Assessmen
nnezuft Sh
the Ahnet B
n-place in th
y recoverab
rasnian Sha
Basin has a
spective are
oil/condensa
hale gas res
9 Tcf as the
-place in the
s as the risk
XV
(Prospecti
mation. The
from 6,000 t
averaging 3
and contains
the Tannezu
rmation. T
s from about
and the dry
net pay of a
The TOC ran
y of the pro
ndows (R
o
>
nd low wate
nts (Prospe
ale. Withi
Basin has a
he dry gas p
le shale gas
ale. Within i
resource co
a, the Frasn
ate and 78 B
source in-pla
e risked tech
e 1,650-mi
2
ked, technica

EIA/ARI W
V-18
ive Area).
e depth of t
o 10,500 ft,
330 ft with a
s Type III ga
uft Shale of
he depth of
t 3,300 to 9
gas area de
approximate
nges from 3%
spective are
> 1.0%). Pe
er saturation
ective Area
in its 11,73
resource co
prospective a
s resource.
its 5,740-mi
2
oncentration
nian Shale h
Bcf/mi
2
of wet
ace in the ov
hnically reco
oil/condens
ally recovera
World Shale Gas

the Tannez
averaging 8
a high net to
as-prone ker
the Ahnet B
f the Frasni
,500 ft, ave
eeper. The
ely 54 ft in th
% to 4% and
ea of the F
etrophysical
n in the dee
a).
30-mi
2
dry
oncentration
area is 256 T
2
dry gas pro
n of 22 Bcf/m
has resource
t shale gas.
verall 7,390
verable sha
sate prospec
able shale o
and Shale Oil R
uft Shale in
8,000 ft. The
gross ratio.
rogen. The
Basin in the
an Shale in
raging 6,000
gross thickn
he dry gas a
d is mostly T
Frasnian Sha
evaluations
eper, prospe
gas prospe
n of 109 Bcf
Tcf, with 51
ospective ar
mi
2
. Within
e concentrat

-mi
2
wet/dry
ale gas resou
ctive area is
il resource.
Resource Assess

n the prospe
e thickness o
The TOC o
thermal ma
e dry gas wi
n the prospe
0 ft, with the
ness of the s
area and 248
Type III gas-p
ale is in the
s of the Fras
ective area o
ective area
f/mi
2
. The r
Tcf estimate
rea, the Fras
its 1,650-mi
ions of 15 m
y gas prospe
urce. The r
5 billion ba
sment
ective
of the
of the
aturity
ndow
ective
e wet
shale
8 ft in
prone
e wet
snian
of the
, the
risked
ed as
snian
i
2
wet
million
ective
risked
arrels,
XV. Algeria

June, 2013

5. M
5.1 G
T
Timimou
The Pale
Shale an
and crop
W
limited on
Source

MOUYDIR B
Geologic Se
The Mouydir
n and Ahne
eozoic Siluria
nd the Upper
p out in the s
We have ma
n the south b
Figure XV-14
e: ARI, 2013.
BASIN
etting.
Basin is loc
et basins. A
an and Devo
r Devonian F
outhern port
pped a pros
by the depth
4. Mouydir Ba

XV
cated in cen
A variety of
onian sedim
Frasnian Sh
tion of the ba
spective area
h of the shale
asin Silurian T
EIA/ARI W
V-19
ntral Algeria
upthrusted s
ents, which
hale, are dee
asin.
a of 12,840
e, Figure XV
Tannezuft Sha

World Shale Gas
, west of the
structural rid
include the
epest in the
mi
2
in the n
V-14.
ale, Outline an
and Shale Oil R
e Illizi Basin
dges separa
important S
northern po
northern por
nd Thermal M
Resource Assess

n and east o
ate these ba
Silurian Tann
rtion of the
rtion of the b
Maturity
sment
of the
asins.
nezuft
basin
basin,
XV. Algeria

June, 2013

5.2 R
O
(The Dev
than 3,30
ranges fr
of the sh
Tannezu
above 1.
5.3 R
W
Mouydir
dry gas
recovera

Reservoir P
Only the Silu
vonian Fras
00 ft, exclud
rom 5,000 to
hale ranges
ft Shale in t
3% R
o
, plac
Resource A
Within its 12
Basin has a
prospective
ble shale ga
Properties
urian Tanne
nian Shale,
ding the shal
o 10,000 ft, a
s from 20 to
he Mouydir
ing the shale
Assessmen
2,840-mi
2
dr
a resource c
e area is e
as resource.

XV
(Prospecti
ezuft Shale
although th
le from furth
averaging 6
o 120 ft, av
Basin has T
e in the dry g
nt.
ry gas pros
concentration
estimated a
EIA/ARI W
V-20
ive Area).
is assessed
hick and org
her assessm
,500 ft in the
eraging 60
TOC ranging
gas window
pective area
n of 19 Bcf/m
t 48 Tcf, w
World Shale Gas

d as prospe
anically rich
ment.) The d
e prospectiv
ft with a hi
g from 2% to
.
a, the Silur
mi
2
. The ris
with 10 Tcf
and Shale Oil R
ective in the
h, is mostly
depth of the
ve area. The
igh net to g
o 4%, with a
rian Tannez
sked resourc
f as the ris
Resource Assess

e Mouydir B
too shallow,
Tannezuft S
e gross thick
gross ratio.
thermal ma
zuft Shale o
ce in-place i
sked, techn
sment
Basin.
, less
Shale
kness
The
aturity
of the
in the
nically
XV. Algeria

June, 2013

6. R
6.1 G
T
from the
on the no
15.
9
Thi
northern
Formatio
W
4,680 mi
Figures X
6.2 R
S
Tannezu
ft. The w
dry gas
prospect
favorable
Tannezu
south an
south cro
U
Frasnian
ft in the
somewha
330 ft, w
thermal m
dry gas w
with low
adjoining

REGGANE
Geologic Se
The Reggane
Timimoun B
orth by a se
s basin may
portion of th
on which is re
We have ma
2
for the Upp
XV-16 and X
Reservoir P
Silurian Tan
ft Shale ran
wet gas/con
prospective
ive area ran
e, ranging fr
ft Shale into
d into the dr
oss-section o
Upper Devo
Shale in the
prospective
at deeper.
9

with a high n
maturity plac
windows (R
o
water satu
g Ahnet Basi
BASIN
etting.
e Basin, loca
Basin by the
eries of rese
y contain ov
he basin is
eported to re
pped prospe
per Devonia
XV-17.
Properties
nnezuft For
nges from 16
densate pro
area is de
nges from a
rom 3% to 5
o the wet ga
ry gas windo
on Figure XV
nian Frasni
e Reggane
e area, with
The thickne
net to gross
ces the pros
o
> 1%). Th
ration, base
n.
10
,
11

XV
ated in the S
Ougarta Rid
rve faults an
ver 800 m o
limited. The
each a maxi
ective areas
an Frasnian
(Prospecti
rmation. T
6,000 ft on t
ospective are
eper.
9
The
about 130 t
5%. The th
as and cond
ow (R
o
> 1.3
V-17.
10

ian Format
Basin range
the wet gas
ess of the o
s ratio.
9
The
spective are
he Frasnian
ed on petro
EIA/ARI W
V-21
Sahara Dese
dge. The ba
nd on the so
f Silurian se
e basin also
mum thickne
s of 34,750 m
Shale in the
ive Areas).
The depth o
the north to
ea is slightly
gross thick
to 230 ft, w
hermal matu
ensate wind
3%) in the de
tion. The d
es from 5,500
s/condensat
organic-rich
e TOC of th
ea of the Fra
Shale is jud
ophysical ev
World Shale Gas
ert portion of
asin is an as
outh by sha
ection, altho
o contains th
ess of 400 m
mi
2
for the S
e eastern po
.
of the prosp
5,000 ft on
y shallower
kness of the
with a high n
urity places
dow (R
o
of 1
eeper north,
depth of the
0 ft to 16,00
te area shal
portion of th
he shale ran
asnian Shale
dged to have
valuations of
and Shale Oil R
f central Alge
symmetric sy
llowing outc
ough well co
he Upper De
m.
Silurian Tann
rtions of the
pective area
the south, a
than this av
e organic-ric
net to gross
the prospec
1.0 to 1.3%)
as illustrate
e shallower
00 ft, averag
llower and t
he shale ran
nges from 2
e in the wet
e good poro
f the Frasn
Resource Assess

eria, is sepa
yncline, bou
crops, Figure
ontrol in the
evonian Fras
nezuft Shale
e Reggane B
a for the Sil
averaging 10
verage, whil
ch section i
s ratio.
9
TO
ctive area o
) in the shal
ed by the no
Upper Devo
ing about 10
the dry gas
nges from 2
2% to 4%.
10
t/condensate
osity of abou
ian Shale in
sment
arated
unded
e XV-
deep
snian
e and
Basin,
lurian
0,000
e the
n the
OC is
of the
lower
orth to
onian
0,500
area
60 to
The
e and
ut 6%
n the
XV. Algeria

June, 2013

Fig

Figure XV-15
Source:
gure XV-16. R
Source:
5. Reggane B
ARI, 2013.
Reggane Basin
ARI, 2013.
XV
asin Silurian T
n Upper Devon
EIA/ARI W
V-22
Tannezuft Sha

nian Frasnian

World Shale Gas
ale, Outline a
n Shale, Outlin
and Shale Oil R
and Thermal M
ne and Therm
Resource Assess

Maturity

al Maturity

sment
XV. Algeria

June, 2013

6.3 R
S
Tannezu
10,150-m
38 Bcf/m
T
prospect
shale oil
oil/conde

Figur
So
Resource A
Silurian Tan
ft Shale in t
mi
2
wet gas a
mi
2
of wet gas
The risked
ive area in t
/condensate
ensate are es
re XV-17. Sch
ource: Logan, P.
Assessmen
nnezuft Sh
the Reggane
and condens
s and 4 millio
resource in
the Reggane
e. Of this,
stimated as

XV
hematic Cross
and Duddy, I., 1
nt
hale. Withi
e Basin has
sate prospec
on barrels/m
n-place for
e Basin is 5
105 Tcf of
the risked, t
EIA/ARI W
V-23
s Section of th
1998.
in its 24,60
s a resource
ctive area, t
mi
2
of oil/cond
the overall
542 Tcf of w
wet/dry sha
technically re
World Shale Gas
he Reggane B
00-mi
2
dry
e concentrat
the shale ha
densate.
34,750-mi
2
wet/dry shale
ale gas plus
ecoverable r
and Shale Oil R
Basin, Algeria
gas prospe
tion of 94 Bc
as resource c
2
Silurian T
e gas plus 8
s 0.3 billion
resource.
Resource Assess

ective area
cf/mi
2
. With
concentratio
Tannezuft S
billion barre
barrels of s
sment
, the
hin its
ons of
Shale
els of
shale
XV. Algeria

June, 2013

D
Shale in
wet gas a
of wet ga
T
prospect
barrels o
shale oil/

Devonian Fr
the Reggan
and condens
as and 11 m
The risked
ive area in t
of shale oil/c
/condensate
rasnian Sha
ne Basin ha
sate prospec
illion barrels
resource in
the Reggane
condensate.
e are estimat

XV
ale. Within i
as a resourc
ctive area, t
s/mi
2
of oil an
n-place for
e Basin is es
Of this, 16
ted as the ris
EIA/ARI W
V-24
its 2,110-mi
2
ce concentra
he shale has
nd condensa
the overall
stimated at 9
6 Tcf of wet/
sked, techni
World Shale Gas
2
dry gas pro
ation of 97 B
s resource c
ate.
l 4,680-mi
2
94 Tcf of we
/dry shale g
cally recove
and Shale Oil R
ospective ar
Bcf/mi
2
. Wit
concentratio
Devonian
et/dry shale
gas plus 0.2
erable resour
Resource Assess

rea, the Fras
thin its 2,57
ns of 104 Bc
Frasnian S
gas plus 6 b
billion barre
rce.
sment
snian
70-mi
2

cf/mi
2

Shale
billion
els of
XV. Algeria

June, 2013

7. T
7.1 G
T
west by
the Saha
B
and oil p
Frasnian
shale un
Tannezu
prospect
Tindouf B
S

TINDOUF B
Geological
The Tindouf
Morocco an
ara Desert P
Because of li
potential of
Shale is rel
nit has been
ft Shale ap
ive area of
Basin where
Figure XV-1
Source: ARI, 201
BASIN
Setting.
Basin is loca
d on the sou
latform, cov
imited well p
the Tindouf
latively thin
n excluded
ppears to be
29,140 mi
2

e the TOC is
18. Tindouf B
13.
XV
ated in the f
uth by Maur
ers an area
penetrations
Basin. Ba
(average of
from furthe
e more prom
for the Silu
2% or highe
Basin Silurian
EIA/ARI W
V-25
far southwes
ritania. This
of over 45,0
s, considera
ased on rece
10 m) with a
r quantitativ
mising. We
rian Tannez
er, Figure XV
Tannezuft Sh
World Shale Gas
stern portion
s large basin
000 mi
2
just w
ble uncertai
ent data fro
a TOC of on
ve assessm
e have esta
zuft Shale in
V-18.
ale Outline an
and Shale Oil R
n of Algeria,
n, the least e
within the Al
inty surroun
om Sonatrac
nly about 1%
ment. Howe
ablished a d
n the northe
nd Thermal Ma
Resource Assess

bordered o
explored bas
lgeria.
ds the shale
ch, the Devo
%.
10
As such
ever, the Sil
dry and wet
ern portion o
aturity
sment
on the
sin in
e gas
onian
h, this
lurian
t gas
of the
XV. Algeria

June, 2013

7.2 R
T
14,000 ft
thousand
of only 5
both the
kerogen.
Source: Boo

7.3 R
W
Tindouf
condensa
million ba

Reservoir P
The depth of
t, averaging
d feet thick,
54 ft where t
wet gas/con
10
,
12
Figure X
ote, 1998.
Resource A
Within its 23
Basin has a
ate area, th
arrels/mi
2
for
Properties
the Silurian
g about 10,5
the organic-
the TOC ex
ndensate an
XV-19 provid
Figu
Assessmen
3,800-mi
2
dr
a resource c
he shale ha
r oil/condens

XV
(Prospecti
n Tannezuft
500 ft. Wh
-rich portion
xceeds 2%.
nd the dry ga
des a cross-
ure XV-19. Tin
nt.
ry gas pros
concentratio
s resource
sate.
EIA/ARI W
V-26
ive Area).
Shale in the
ile the total
of the Siluri
In the pros
as windows
section for t
ndouf Basin C
pective area
n of 24 Bcf
concentratio
World Shale Gas

e prospectiv
Upper Silu
ian Tannezu
spective are
(R
o
> 1.0%)
this frontier h
Cross Section
a, the Silur
f/mi
2
. Withi
ons of 19 B
and Shale Oil R
ve area rang
urian section
uft Shale has
ea, the Tann
) and has ga
hydrocarbon

rian Tannez
n its 5,340-
Bcf/mi
2
for w
Resource Assess

ges from 6,6
n can be se
s a net thick
nezuft Shale
as-prone Ty
n basin.
13

zuft Shale in
mi
2
wet gas
wet gas and
sment
600 to
everal
kness
e is in
ype III
n the
s and
d 1.7
XV. Algeria

June, 2013

W
Tannezu
barrels o
shale oil/
ACTIVIT
A
effort to
has esta
informati
drill a se
formation
pilot well
Berkine
basins.
10

and rese
O
the hyd
hydrocar
Sonatrac
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1
Klett, T.R.
Tanezzuft
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2
Peterson,
Open-File
3
Aliev, M.
Rotopress
4
Klett, T.R.
Bulletin 22
5
Boudjema
lUniversit

Within its ov
ft Shale in t
of shale oil/c
/condensate
TY
Algerias natu
define the s
ablished a da
on from new
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l within this
(Ghadames
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s, S.A., 265 p.
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a, A., 1987. Ev
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the Tindouf
condensate.
e are estimat
ural gas and
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ata base of
w shale well
t wells to te
TOC (>2%)
comprehen
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XV
0-mi
2
prosp
Basin is est
Of this, 26
ted as the ris
d gas comp
ality of its sh
older cores
logs in the
est the prod
and thick p
sive shale r
owed by te
ompanies, S
udies of Alg
eria has pas
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zzuft-Mouydir, T
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V-27
pective area
imated at 13
6 Tcf of wet/
sked, techni
pany, Sonat
hale gas (an
s, logs and
main shale
ductivity of t
ay (>20m) a
resource as
st wells in t
Statoil and R
erias shales
ssed amend
stment clim
However, th
n this sector
Erg/Ahnet Prov
Tanezzuft-Benou
es of North-Cent
imation of Oil a
Province, Algeria
Petrolier Trias
World Shale Gas
a, the risked
35 Tcf of we
t/dry shale g
cally recove
rach, has u
d oil) resou
other data a
basins of A
the high pri
at moderate
sessment p
the Illizi, Tim
Repsol, have
s.
11

dments to its
mate in ant
he position o
r.
vince, Algeria an
ud, and Tanezz
tral and Northea
and Gas in the
a and LibyaTa
ique du Sahar
and Shale Oil R
d resource
et/dry shale
gas and 0.1
erable resour
undertaken a
rces. To da
and comple
Algeria. Next
ority basins
depths (<3,0
program is s
mimoun, Ah
e also under
s federal leg
ticipation o
of its stated-
d MoroccoThe
zuft-Bchar/Aba
astern Africa. U
Sahara in Alge
anezzuft-Illizi. U
ra Nord Orienta
Resource Assess

in-place fo
gas and 2 b
billion barre
rce.
a comprehe
ate, the com
emented this
t in the plan
s, targeting s
000 m). The
scheduled fo
net and Mo
rtaken geolo
gislation cov
of an expa
-owned com
e Tanezzuft-Tim
dla. U.S. Geo
U.S. Geological
eria: Spain. Al
U.S. Geological
l (Algerie). T
sment
or the
billion
els of
nsive
mpany
s with
n is to
shale
e first
or the
ouydir
ogical
vering
anded
mpany
mimoun,
ological
Survey
tamira-
Survey
hse a
XV. Algeria

June, 2013

6
Daniels, R
Where, an
dActivits
7
Yahi, N., S
American
8
Acheche,
Reapprais
no. 5, p. 7
9
Logan, P.
the Conse
D.D. (eds
10
Rahmani
Gas Union
11
Kaddour
February,
12
Belhame
EXPLORA
Geologists
13
Boote, D
Society, L

R.P., and Emme
nd How? Proce
s Petrolieres Me
Schaefer, R.G., a
Association of P
M.H., MRabet,
sal of Triassic R
765-780.
and Duddy, I., 1
equences for H
.), 1998, Petrole
, A., Kaced, M.
n Shale Gas Wo
, A. 2012. Sha
Oran.
eche, F. and S
ATION, Boumer
s, European Reg
. R. D., Clark-L
London, Special

, J.J., 1995. P
eedings of the S
moir 9, p. 1011
and Littke, R., 20
Petroleum Geolo
A., Ghariani, H.
eservoirs and F
998. An Invest
ydrocarbon Gen
eum, Geology of
and Arab, M., 2
orkshop, Oran, A
ale Gas Develop
Saadallah, N.,
rdes, Algeria, A
gion Conference
owes, D.D., and
Publications 132
XV

etroleum System
Seminar on Sour
124.
001. Petroleum
ogists, Bulletin, v
., Ouahchi, A., a
uture Prospectiv
tigation of the Th
neration and Ac
North Africa. G
2012. The Pot
Algeria, February
pment in Algeria
2007. Hydro
AAPG Search a
e, Athens, Greec
d Traut, M.W.,
2, no. 1, p. 7-68.
EIA/ARI W
V-28

m Model, Easter
rce Rocks and H
m Generation and
vol. 85, no. 8, p.
and Montgomery
vity. American
hermal History o
ccumulation. In
eological Societ
tential of Shale
y.
: Possible Syne
carbons Potent
and Discovery A
ce.
1998. Palaeoz
.
World Shale Gas

rn Algeria, from
Hydrocarbon Ha
d Accumulation
1439-1467.
y, S.L., 2001. G
Association of P
of the Ahnet and
n: Macgregor, D
ty, London, Spec
Gas Plays in A
rgy with Conven
tial of the Tind
Article #90072,
zoic Petroleum
and Shale Oil R

Source Rock to
abitat in Tunisia;
in the Berkine B
Ghadames Basi
Petroleum Geolo
Reggane Basin
D.S., Moody, R.
cial Publication N
Algeria. Sonatra
ntionals. Shale
douf Basin (Al
American Ass
Systems of Nor
Resource Assess

o Accumulation;
Entreprise Tun
Basin, Eastern A
n, Southern Tun
ogists, Bulletin, v
ns, Central Alger
T.J. and Clark-
No. 132, 131-15
ch Amont/Intern
Gas Workshop
geria). SONAT
sociation of Pet
rth Africa. Geo
sment

When,
isienne
Algeria.
nisia: A
vol. 85,
ria, and
Lowes,
55.
national
27- 28
TRACH
troleum
ological
XVI. Tunisia

June, 2013

XVI. T
SUMMA
T
Silurian
formation
oil poten
Pelagian
a

TUNISIA
ARY
Tunisia has t
Tannezuft
ns are in the
ntial may ex
Basin of ea
S
A
two significa
Hot Shale
e Ghadames
xist in the
astern Tunisi
Figure XV
ource: ARI, 201
XV
ant formation
and the
s Basin, loca
Jurassic-Cr
ia, as discus
VI-1. Tunisias
3.
EIA/ARI W
VI-1
ns with pote
Upper Dev
ated in south
retaceous a
ssed further
s Shale Gas an
World Shale Ga
ential for sha
vonian Fras
hern Tunisia
and Tertiary
in this Chap
nd Shale Oil B
s and Shale Oil
ale gas and
snian Shale
a. Addition
y petroleum
pter, Figure X
Basins

Resource Asses

d shale oil -
e. These s
nal shale gas
systems in
XVI-1.
ssment
- the
shale
s and
n the
XVI. Tunisia

June, 2013

O
Basin co
recovera
29 billion
recovera
R
e
s
o
u
r
c
e
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
a

Our assessm
ontain 114 T
ble shale ga
n barrels of
ble shale oil
Tabl
Tab
Gas Phase
GIP Concentra
Risked GIP (Tc
Risked Recove
P
r
o
p
e
r
t
i
e
sReservoir Pres
AverageTOC (w
Thermal Matur
Clay Content
ProspectiveAr
Basin/G
ShaleF
Geolo
Depositiona
Thickness (ft)
Depth (ft)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
R
e
s
o
u
r
c
e
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
ment is that t
Tcf of riske
as resource
risked shale
l resource, T
e XVI-1. Shale
le XVI-2. Sha
Organically Rich
Net
Interval
Average
ation (Bcf/mi
2
)
cf)
erable(Tcf)
ssure
wt. %)
rity (%Ro)
rea(mi
2
)
Gross Area
Formation
ogic Age
al Environment
O
N
I
A
Reservoir Press
AverageTOC (w
Thermal Maturit
Clay Content
Oil Phase
OIP Concentrati
Risked OIP (B b
Risked Recovera
Geolog
Depositional
ProspectiveAre
Thickness (ft)
Depth (ft)
Basin/Gr
ShaleFo
XV
the Tannezu
ed shale ga
, Table XVI-
e oil in-plac
Table XVI-2.
e Gas Reservo
le Oil Reservo
410
115
104
10,000 - 11,000
10,500
Mod. Overpress.
5.7%
1.15%
Medium
Wet Gas
42.9
11.4
2.3
Tan
Sil
Ma
Organically Rich
Net
nterval
Average
ure
wt. %)
ty (%Ro)
on (MMbbl/mi
2
)
bl)
able(B bbl)
gic Age
Environment
a(mi
2
)
ross Area
ormation
EIA/ARI W
VI-2
uft and Fras
as in-place,
-1. In addit
ce, with 1.5
oir Properties

oir Properties
940
115
104
11,000 - 14,500
13,000
Mod. Overpress
5.7%
1.60%
Medium
Dry Gas
54.5
33.3
8.3
nezuft
urian
arine
Tannezuft
Silurian
Marine
410
115
104
10,000 - 11,000
10,500
Mod. Overpress.
5.7%
1.15%
Medium
Condensate
3.1
0.8
0.04
World Shale Ga
snian shale f
with 23 Tc
tion, these t
billion barre
s and Resourc
and Resource
1,210
197
177
8,000 - 10,000
8,500
. Mod. Overpress
6.0%
0.85%
Medium
Assoc. Gas
25.4
20.0
2.0
Ghadames
(117,000mi
2
)
1,210
197
177
8,000 - 10,000
8,500
Mod. Overpress
6.0%
0.85%
Medium
Oil
31.3
24.6
1.23
Ghadames
(117,000mi
2
)
Fr
U. D
M
s and Shale Oil
formations i
cf as the ris
two shale fo
els as the ri
ces of Tunisia.
es of Tunisia.
850
197
177
9,000 - 10,000
9,500
s. Mod. Overpress
6.0%
1.15%
Medium
Wet Gas
79.8
44.1
8.8
Frasnian
U. Devonian
Marine
850
197
177
9,000 - 10,00
9,500
s. Mod. Overpres
6.0%
1.15%
Medium
Condensate
7.0
3.9
0.19
rasnian
Devonian
Marine
Resource Asses

n the Ghada
sked, techn
ormations co
sked, techn
.

80
197
177
10,000 - 11,000
10,500
s. Mod. Overpress
6.0%
1.35%
Medium
Dry Gas
100.7
5.2
1.3
00
ss.
e
ssment
ames
nically
ontain
nically

0
s.
XVI. Tunisia

June, 2013

1. G
1.1 In
T
content;
East. Th
oil and g
the deep
and Trias

a

GHADAMES
ntroduction
The Silurian-
gamma-ray
his organic-r
gas fields in
per Tannezu
ssic convent
S BASIN
n and Geo
-age Tanne
values >15
rich shale ha
the region.
ft Shale. It
tional reserv
Figure X
Source: Ac
XV
logic Setti
ezuft Hot S
50 API units)
as served a
The Uppe
has also se
voirs in the re
XVI-2. Ghadam
cheche, M.H, 200
EIA/ARI W
VI-3
ng
Shale (calle
) is present
s a major so
r Devonian-
erved as an
egion, Figure
mes Basin Stra
01.
World Shale Ga
ed hot be
in much of
ource rock f
-age Frasnia
important s
e XVI-2.
1

atigraphic Col
s and Shale Oil
ecause of i
North Africa
for many of
an Shale is
source rock
lumn
Resource Asses

ts high ura
a and the M
the convent
deposited a
for the Devo
ssment
anium
Middle
tional
above
onian
XVI. Tunisia

June, 2013

P
(2000),
3
a
Tunisia
4
,
5
of the sh
T
portion o
depth co
In
organic-r
We have
the Ghad
mineralo
defined b
clay mine
Tunisia a
T
has ther
window.
greater th
D
We have
Ghadam
minimum
Tunisia
prospect

a

Prior geologi
as well as m
5
,
6
,
7

have pro
ale formatio
The Ghadam
of Tunisia. F
ntours for th
n Tunisias
rich marine s
e mapped a
dames Bas
gy of the s
by a change
eralogy. Th
and Libya bo
The northern
mal maturity
The rema
han 1.3%, is
Deposited ab
e mapped a 2
es Basin.
m oil maturity
and Algeria
ive area is th
cal and sou
more recent
ovided valua
ns of Tunisia
es Basin an
Figures XVI
he Silurian T
portion of
shale that g
1,350-mi
2
h
in giving co
hale. The
e in shale de
e eastern a
order.
portion of t
y of 1.0% t
ining prospe
s in the dry g
bove the Tan
2,140-mi
2
pr
The northe
y criterion of
a border. T
he Tunisia a
XV
urce rock st
information
able informat
a.
nd its two sig
-3 and XVI-
annezuft Ho
the Ghada
rades from
higher qualit
onsiderable
western and
eposition fro
nd southern
the Tannezu
o 1.3% R
o
,
ective area
gas window,
nnezuft Hot
rospective a
ern boundar
f 0.7% R
o
. T
The eastern
and Libya bo
EIA/ARI W
VI-4
tudies by Ac
from oil and
tion on the g
gnificant sha
-4 provide th
ot Shale
1
an
mes Basin,
immature on
y prospectiv
emphasis t
d northern b
om higher qu
n borders of
uft Hot Shal
placing this
of 940 mi
2
Figure XVI-
Shale is th
rea for the F
ry of the F
The western
n and sout
order.
World Shale Ga
cheche (200
d gas produc
geologic set
le formation
he Ghadame
nd the Uppe
, the Tanne
n the north t
ve area for t
to the recen
boundaries
uartz, lower
the prospec
le prospect
s area in th
for the Tan
-5.
he thermally
Frasnian Sha
rasnian Sha
n boundary o
thern bound
s and Shale Oil
01),
1
Yahi (2
ction compa
tting and res
ns are locate
es Basins s
er Devonian
ezuft Forma
to post-matu
the Tannezu
ntly assemb
of the pros
r clay to low
ctive area ar
tive area cov
he wet gas
nnezuft Hot
less mature
ale in Tunisi
ale prospec
of the prospe
dary of the
Resource Asses

2001),
2
and
anies operati
servoir prope
ed in the sou
shale outline
Frasnian Sh
ation contai
ure on the s
uft Hot Sha
bled data on
pective area
wer quartz, h
re defined b
vers 410 mi
2
and conden
t Shale, wit
e Frasnian S
ias portion o
ctive area is
ective area i
Frasnian S
ssment
Klett
ing in
erties
thern
e and
hale.
ins a
south.
ale in
n the
a are
higher
by the
2
and
nsate
th R
o

Shale.
of the
s the
is the
Shale
X

J

S

XVI. Tunisia

June, 2013
Figure XVI-3.
Source: ARI, 2013.
. Ghadames Basi
and Dep
n Silurian Tannez
pth Contours
X
zuft Shale Outline
XVI-5
Figu
Source: AR

EIA/ARI W

re XVI-4. Ghadam
Outl
I, 2013.
World Shale Gas and
mes Basin Upper D
line and Depth Co
Devonian Frasnian
ontours
e Assessment
n Shale
XVI. Tunisia

June, 2013

T
the oil wi
area is in
small 80
dry gas w
1.2 R
S
prospect
in the ba
Figure X
average
Llandove
potential
T
formation
the Tann
the prosp
Ghadam
U
Shale in
prone are
XVI-3. Th
177 ft. Th
The ther
north to o
gas wind
a

The 1,210-m
indow, with
n the wet ga
-mi
2
area in
window, with
Reservoir P
Silurian Tan
ive area ran
asin center,
XVI-3. The g
net thickne
erian Hot S
ly gas-charg
The TOC of
n is particula
nezuft Hot S
pective area
es Basin, Fi
Upper Devon
the prospec
ea, 9,500 ft
he Frasnian
he Frasnian
rmal maturity
over 1.3% R
dows, Figure
i
2
northern a
R
o
between
as and cond
the southw
h R
o
above 1
Properties
nnezuft Sha
nges from 10
averaging 1
gross thickne
ess of 104
Shales with
ged silty san
f the Tanne
arly organic-
Shale range
to dry gas (
gure XVI-5.
nian Frasni
ctive area ra
in the wet g
Shale has a
Shale has T
y in the Fra
R
o
in the sou
e XVI-5.
XV
and eastern
0.7% and 1
densate wind
western porti
.3%, Figure
(Prospecti
ale. The de
0,000 ft alon
0,500 ft in t
ess of the T
ft. (A thick
hin the Silu
ds are not in
ezuft Hot S
-rich, with T
es from wet
(R
o
>1.3%) i
an Shale. T
anges from
gas/condens
a gross thic
TOC values
asnian Shale
thwest, plac
EIA/ARI W
VI-6
portion of th
.0%. The 8
dow, with R
on of the Fr
e XVI-6.
ive Area)
epth of the
ng the north
the wet gas
Tannezuft H
k package o
urian Tanne
ncluded in ou
Shale aver
TOC values
gas (R
o
of
n the southe
The depth of
8,000 ft to
sate area, a
kness of 19
that range f
e in the pro
cing the shal
World Shale Ga
he Frasnian
850-mi
2
cent
R
o
between 1
rasnian Sha
Silurian Ta
ern and eas
area and 1
Hot Shale is
of Wenlocki
ezuft Format
ur shale gas
rages 5.7%
of up to 15%
1.0% to 1.3
ern portion o
f the overlyin
11,000 ft, a
and 10,500 f
7 ft with an
from 1% to 1
ospective are
le in the oil,
s and Shale Oil
Shale prosp
tral portion o
1.0% and 1.
ale prospecti
annezuft Ho
stern basin e
3,000 ft in t
s 115 ft, with
ian silty sa
tion. Thes
s resource a
. The lowe
%.
4
The the
%) in the no
of the prospe
ng Upper De
averaging 8,
ft in the dry
organic-rich
10% with an
ea ranges f
wet gas/con
Resource Asses

pective area
of the prospe
.3%. A rela
ive area is i
ot Shale in
edge to 14,5
the dry gas
h an organic
nds overlies
se high por
ssessment.)
er portion o
ermal matur
orthern porti
ective area i
evonian Fras
,500 ft in th
gas area, F
h net thickne
n average of
from 0.7% i
ndensate an
ssment
a is in
ective
atively
n the
n the
500 ft
area,
c-rich
s the
rosity,
)
of the
rity of
on of
in the
snian
e oil-
Figure
ess of
f 6%.
3

n the
nd dry
X

J

S

XVI. Tunisia

June, 2013
Figure XVI-5
Source: ARI, 2013.
5. Ghadames Bas
Prospe
sin Silurian Tannez
ective Area
X
zuft Hot Shale
XVI-7
Figu
Source: AR

EIA/ARI W

re XVI-6. Ghadam
I, 2013.
World Shale Gas and
mes Basin Upper D
Prospective Are
Devonian Frasnian
ea
e Assessment
n Shale

XVI. Tunisia

June, 2013

1.3 R
S
condensa
million ba
Hot Sha
T
prospect
reservoir
technical
less than
U
prospect
gas) in th
the 850-
window.
T
shale ga
estimate
gas and
1.4 R
C
activity s
permits i
involves
conducte
Shale at
on test re
C
totaling 1
a

Resource A
Silurian Tan
ate prospec
arrels/mi
2
of
ale has a res
The risked re
ive area is 4
r properties
lly recoverab
n 0.1 billion b
Upper Devo
ive area ha
he 1,210-mi
2
mi
2
wet gas

The risked re
as and 28.5
risked, tech
1.4 billion ba
Recent Act
Considerable
still devoted
n the Ghad
200 km of
ed a hydrau
a depth of 1
esults. Cyga
Chinook Ene
1.3 million ne
Assessmen
nnezuft Sha
ctive area, h
f condensat
source conc
esource in-p
45 Tcf of sh
, particularl
ble resource
barrels of sh
onian Frasn
s resource
2
oil window,
s/condensat
esource in-p
billion barre
hnically reco
arrels of sha
ivity
e exploration
to conventio
ames Basin
f 3D seismic
lic stimulatio
13,000 ft in t
am is seekin
ergy Inc. ha
et acres. Th
XV
nt
ale. The Tan
has resource
e. Within it
centration of
place for the
ale gas and
ly the med
es from the
ale oil, Table
nian Shale.
concentratio
, 7 million ba
te window, a
place within
els of shale
overable res
ale oil, Table
n activity is u
onal oil and
n totaling 1.6
c and two
on in March
heir Sud Toz
ng a JV partn
s acquired
he large Sud
EIA/ARI W
VI-8
nnezuft Hot
e concentra
ts 940-mi
2
d
54 Bcf/mi
2
.
overall 1,35
0.8 billion b
dium level
Tannezuft
es XVI-1 and
The Frasn
ons of 31 m
arrels/mi
2
of
and 101 Bc
the overall
e oil. Based
sources from
es XVI-1 and
underway in
d gas resour
6 million ne
deep explo
h 2010 on W
zeur permit
ner to furthe
a series of
d Remada b
World Shale Ga
t Shale, wit
ations of 43
dry gas pros

50-mi
2
wet g
barrels of sh
of clay co
Hot Shale
d XVI-2.
nian Shale,
million barrel
condensate
cf/mi
2
of dry
2,140-mi
2
p
d on moder
m the Frasni
d XVI-2.
the Ghadam
rces. Cyga
et acres.
4
C
ration wells
Well No. 1,
area. No in
r develop its
lease bloc
block totals
s and Shale Oil
thin its 410-
Bcf/mi
2
of w
spective are
gas/condens
hale oil. Bas
ontent, we
of 11 Tcf o
within its o
s/mi
2
of oil
e and 80 Bcf/
y gas in the
prospective a
rate reservo
ian Shale of
mes Basin,
m Energy h
Cygams exp
s. The com
completed
formation ha
s four Tunisia
ks in the G
1.2 million a
Resource Asses

-mi
2
wet gas
wet gas and
ea, the Tann
sate and dry
sed on mod
estimate ris
of shale gas
overall 2,14
(plus assoc
/mi
2
of wet g
e 80-mi
2
dry
area is 69 T
oir properties
f 12 Tcf of s
with much o
has acquired
ploration pro
mpany repor
in the Tann
as been prov
a permit are
Ghadames B
acres and ta
ssment
s and
d 3.1
nezuft
y gas
erate
sked,
s and
40-mi
2

ciated
gas in
y gas
Tcf of
s, we
shale
of the
d four
ogram
rtedly
nezuft
vided
eas.
Basin,
argets
XVI. Tunisia

June, 2013

the Tann
exploratio
and Silur
showed h
In
Silurian w
not relea
productio
any shal
sponsore
Tunisia.
of ETAP
2. O
In
have sha
of the co
T
rocks. T
particula
contains
(Cenoma
portion o
late matu
from thes
T
Systems
contains
of the sh
18
o
to 53

a

nezuft Shale
on well in th
rian resourc
hydrocarbon
n early 2010
well (Well #5
ased data o
on in Tunisia
le gas. Win
ed an evalua
Winstar has
(the state co
OTHER BAS
n addition to
ale resource
untry and ex
The Pelagia
The first is
rly the Juras
Type II and
anian to Turo
of the basin.
ure with TO
se Jurassic-
The second
and its Ea
Type I and
ale ranges f
3
o
API.
e as well as
he Sud Rem
ces. Previou
n potential in
0, Perenco
5) to test the
on the wells
a was all fro
star Resour
ation of the
s acquired a
ompany), ha
SINS
o the shale g
e potential in
xtending into
n Basin con
the Jurassi
ssic Nara Fo
d III kerogen
onian) Bahlo
The therm
Cs that rang
Cretaceous
hydrocarbo
arly Eocene
II kerogen w
from early m

XV
convention
ada lease b
s drilling int
n the Silurian
Tunisia rep
e shale gas
s performan
om conventio
rces, a sma
Silurian Ta
a series of c
as committed
gas and oil
n the less de
o the offshor
ntains two h
ic-Cretaceou
ormation and
n. The third
oul Formatio
mal maturity
ge from 0.5
source rock
on system
e Bou Dabb
with TOC th
mature to ma
EIA/ARI W
VI-9
al formation
block during
to the deepe
n Tannezuft
portedly drille
potential in
ce. In late
onal reservo
all Canadian
annezuft Sha
concession a
d to drilling a
potential in
efined Pelag
re.
hydrocarbon
us Petroleum
d the Early C
potential sh
on containing
of these so
% to 14%, g
ks is general
in the Pela
bous Forma
at ranges fro
ture, providi
World Shale Ga
ns.
5
The co
2013, targe
er, oil bearin
Formation.
ed and hyd
their El Fran
2012, Pere
oirs and the
n E&P com
ale in the G
areas in the
a deep, test
the Ghadam
ian Basin, lo
systems w
m System a
Cretaceous
hale source
g Type II ker
ource rocks
generally 1%
ly light, aver
agian Basin
ation shale.
om 0.4% to
ing a variety
s and Shale Oil
ompany plan
eting conven
ng TT Ord
draulically st
nig Field. T
enco reporte
company w
pany active
Ghadames B
basin and,
well (Sabria
mes Basin, T
ocated in the
ith establish
and its sha
(Albian) Fa
rock is the
rogen that u
ranges from
% to 3%. T
raging 33
o
A
n is the Te
The Bou
4%. The th
y of oil gravit
Resource Asses

ns to drill a
tional Ordov
dovician rese
timulated a
The company
ed that thei
was not prod
e in Tunisia
Basin of sou
with particip
a 12) in 2013
Tunisia may
e eastern po
hed shale so
ale source r
hdene Form
Late Cretac
nderlies a lim
m early matu
The oil gene
API.
ertiary Petro
Dabbous S
hermal matu
ties, ranging
ssment
deep
vician
ervoir
deep
y has
r gas
ucing
, has
thern
pation
3.
y also
ortion
ource
rocks,
mation
ceous
mited
ure to
erated
oleum
Shale
urities
from
XVI. Tunisia

June, 2013

A
a small
Hydrocar
reservoir
unconve
S
$150 mil
shale oil
REFERE

1
Acheche,
Reapprais
no. 5, p. 7
2
Yahi, N., S
American
3
Klett, T.R.
Mya, Tann
4
Cygam En
5
Chinook E
6
Perenco T
7
Winstar Re
8
Stafford, J
a

A number of
Canadian-lis
rbons has a
r. While th
ntional shale
Shell Oil acq
llion explora
potential on
ENCES

M.H., MRabet,
sal of Triassic R
765-780.
Schaefer, R.G., a
Association of P
, 2000. Total P
nezuft-Melhir, an
nergy, Incorporat
Energy, Incorpora
Tunisia, 2012.
esources, 2012
., 2013. Is Tun
companies
sted compa
a minority int
he company
e play, it plan
quired a larg
ation progra
its lease ac

A., Ghariani, H.
eservoirs and F
and Littke, R., 20
Petroleum Geolo
Petroleum Syste
nd Tannezuft-Gh
ted, 2012.
ated, 2012.
isia the New Ho
XV
have begun
ny, African
terest in the
y acknowled
ns to target
ge lease pos
m to target
creage.
., Ouahchi, A., a
uture Prospectiv
001. Petroleum
ogists, Bulletin, v
ms of the Trias/
hadames. U.S
ot Spot for Energ
EIA/ARI W
VI-10
n exploration
Hydrocarbo
e 130,000-ac
dges that i
the low han
sition in the
convention
and Montgomery
vity. American
m Generation and
vol. 85, no. 8, p.
Ghadames Prov
. Geological Sur
gy Investors? w
World Shale Ga
n efforts in t
ons and sup
cre Bouhajla
its lease ac
nging fruit fi
e Pelagian B
al reservoirs
y, S.L., 2001 . G
Association of P
d Accumulation
1439-1467.
vince, Algeria, T
rvey, Bulletin 22
www.rigzone.com
s and Shale Oil
he Pelagian
per-major S
a and Ktititir
creage man
rst.
8

Basin and h
s as well a
Ghadames Basi
Petroleum Geolo
in the Berkine B
unisia, and Liby
02-C, 118 p.
m accessed Apri
Resource Asses

n Basin, inclu
hell Oil. Af
r carbonate-
ny also hol
has announc
s shale gas
n, Southern Tun
ogists, Bulletin, v
Basin, Eastern A
a-The Tannezuf
l 10, 2013.
ssment
uding
frican
chalk
d an
ced a
s and
nisia: A
vol. 85,
Algeria.
ft-Oued
XVII. Libya

June, 2013
XVII.
SUMMA
T
hydrocar
and the M
Kufra Ba
speculati
Source: AR

3
LIB
ARY
This shale g
rbon basins:
Murzuq Bas
asin in the
ive and limite
I, 2013.
BYA
as and sha
the Ghada
in in the sou
southeast,
ed nature of
Figure XV

XV
ale oil resou
mes (Berkin
uthwest of th
is discusse
f the availab
VII-1. Shale G
EIA/ARI W
VII-1
urce assessm
ne) Basin in
he country, F
ed but is n
le data.
as and Shale
World Shale Ga
ment addre
the west, th
Figure XVII-
not quantitat
Oil Basins of
s and Shale Oil
sses three
he Sirte Bas
-1. One add
tively asses
Libya
Resource Asses

of Libyas m
sin in the ce
ditional basin
ssed due to
ssment
major
enter,
n, the
o the
XVII. Libya

June, 2013
W
place, w
and 1B.
risked sh
recovera
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
R
e
s
o
u
r
c
e
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
3
We estimate
ith 122 Tcf
In addition,
hale oil and
ble shale oil
Table
Table
O
N
In
A
Reservoir Pressu
AverageTOC (wt.
Thermal Maturity
Clay Content
Gas Phase
GIP Concentratio
Risked GIP (Tcf)
Risked Recovera
ProspectiveArea
Thickness (ft)
Depth (ft)
Basin/Gro
ShaleFo
Geolog
Depositional E
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
R
e
s
o
u
r
c
e
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
that these
as the riske
the shale fo
d condensat
l resource, T
e XVII-1A. Sh
e XVII-1B. Sh
Organically Rich
et
nterval 10
Average
ure
. %)
y (%Ro)
on (Bcf/mi
2
)
ble(Tcf)
a(mi
2
)
oss Area
rmation
ic Age
Environment
O
N
In
A
Reservoir Pressu
AverageTOC (wt
Thermal Maturity
Clay Content
Gas Phase
GIP Concentratio
Risked GIP (Tcf)
Risked Recovera
ProspectiveArea
Thickness (ft)
Depth (ft)
Basin/Gro
ShaleFo
Geolog
Depositional E
XV
three basin
ed, technical
ormations in
te in-place,
Tables XVII-2
ale Gas Reser
ale Gas Reser
16,440
115
104
0,000 - 11,000 10,5
10,500
Mod.
Overpress. O
5.7%
0.85%
Medium
Assoc. Gas W
11.8
96.9
9.7
T
L
Organically Rich
Net
nterval
Average
ure
. %)
y (%Ro)
on (Bcf/mi
2
)
able(Tcf)
a(mi
2
)
oss Area
ormation
ic Age
Environment
EIA/ARI W
VII-2
ns in Libya c
lly recovera
these three
with 26.1 b
2A and 2B.
rvoir Propertie
rvoir Propertie
3,350 2
115
104
500 - 11,500 11,00
11,000 1
Mod.
Overpress.
M
Ove
5.7% 5
1.15% 1
Medium M
Wet Gas Dr
43.4
72.7
14.5
Tannezuft
L. Silurian
Marine
Sirte/Rachmat
U. Cretaceous
Marine
35,240
2,000
200
10,000 - 12,000
11,000
Normal
2.8%
0.85%
Medium
Assoc. Gas
24.8
349.8
28.0
S
(172,0
World Shale Ga
contain 942
ble shale ga
basins also
billion barre
es and Resou
es and Resou
2,580 1,5
115 19
104 17
00 - 14,500 8,000 -
3,000 8,5
Mod.
erpress.
Mo
Overp
5.7% 6.0
.60% 0.8
Medium Med
ry Gas Assoc
54.5 25
70.3 19
17.6 2
Ghadames
(117,000mi
2
)
Etel Fm
U. Cretaceou
Marine
19,920
600
120
11,000 - 16,40
13,500
Normal
3.6%
1.15%
Medium
Wet Gas
37.4
297.9
44.7
Sirte
000mi
2
)
s and Shale Oil
2 Tcf of risk
as resource
contain 613
ls as the ri
urces of Libya
urces of Libya
570 370
97 197
77 177
- 10,000 9,000 - 1
500 9,50
od.
press.
Mod
Overpre
0% 6.0%
85% 1.15%
dium Mediu
c. Gas Wet G
5.4 79.8
9.9 14.8
2.0 3.0
Frasni
U. Devo
Marin
Murzuq
(97,000mi
Tannezuf
us L. Silurian
Marine
5,670
67
60
00 3,300 - 10,0
6,500
Mod. Overpr
7.0%
0.90%
Medium
Assoc. Ga
6.5
18.6
1.9
Resource Asses

ed shale ga
, Tables XV
3 billion barre
sked, techn
.
.

0 30
7 197
7 177
0,000 11,000 - 12
0 11,500
d.
ess.
Mod.
Overpres
% 6.0%
% 1.35%
um Medium
Gas Dry Gas
8 93.1
8 1.4
0.3
ian
onian
ne
i
2
)
ft
n
000
ress.
as
ssment
as in-
VII-1A
els of
nically

,000
ss.
m
s
XVII. Libya

June, 2013

3
Tab
Tab
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Rese
Avera
Therm
Clay
R
e
s
o
u
r
c
e
Oil P
OIP C
Riske
Riske
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pros
Thick
Depth
B
a
s
i
c
D
a
t
a
De
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Res
Ave
The
Clay
R
e
s
o
u
r
c
e
Oil
OIP
Ris
Ris
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pro
Thi
Dep
B
a
s
i
c
D
a
t
a
D
le XVII-2A. Sh
le XVII-2B. Sh

Organ
Net
Interv
Avera
ervoir Pressure
ageTOC (wt. %)
mal Maturity (%
Content
Phase
Concentration (M
ed OIP (B bbl)
ed Recoverable(
pective Area (mi
kness (ft)
h (ft)
Basin/Gross A
ShaleFormat
Geologic Ag
epositional Envi
Or
Ne
Int
Av
servoir Pressur
erage TOC (wt.
ermal Maturity
y Content
Phase
P Concentration
ked OIP (B bbl
ked Recoverab
ospective Area
ckness (ft)
pth (ft)
Basin/Gros
Shale Form
Geologic
Depositional E
XV
hale Oil Reser
hale Oil Reser
nically Rich
val 10,0
age
Ov
M
Ro)
MMbbl/mi
2
)
(B bbl)
2
)
Area
tion
ge
ronment
rganically Rich
et
terval
verage
re
%)
(%Ro)
n (MMbbl/mi
2
)
)
ble (B bbl)
(mi
2
)
ss Area
mation
c Age
nvironment
EIA/ARI W
VII-3
rvoir Propertie
rvoir Propertie
16,440
115
104
000 - 11,000 10,5
10,500
Mod.
verpress. Ov
5.7%
0.85%
Medium M
Oil Co
12.0
98.8
4.94
Tannezuft
L. Silurian
Marine
Sirte/Rachm
U. Cretaceo
Marine
35,240
2,000
200
10,000 - 12,
11,000
Normal
2.8%
0.85%
Medium
Oil
28.8
405.9
16.24
(17
World Shale Ga
es and Resour
es and Resour
3,350
115
104
500 - 11,500 8,00
11,000
Mod.
verpress. Ov
5.7%
1.15%
Medium M
ondensate
3.1
5.1
0.26
Ghadames
(117,000mi
t
n
mat Etel
ous U. Cret
Ma
19,
60
12
,000 11,000
13,
Nor
3.6
1.1
m Med
Conde
6
50
2.
Sirte
72,000mi
2
)
s and Shale Oil
rces of Libya.
rces of Libya.
1,570
197
177
00 - 10,000 9,00
8,500
Mod.
verpress. Ov
6.0%
0.85%
Medium M
Oil Con
31.3
24.6
1.23
s
2
)
Frasnian
U. Devonian
Marine
Mu
(97,0
l Fm Tan
taceous L. S
rine M
920 5
00
20
- 16,400 3,300
500 6
rmal
M
Ove
6% 7
5% 0.
dium Me
ensate
.3
0.5 2
02 1
Resource Asses

370
197
177
00 - 10,000
9,500
Mod.
verpress.
6.0%
1.15%
Medium
ndensate
7.0
1.3
0.06
n
urzuq
000mi
2
)
nnezuft
Silurian
Marine
5,670
67
60
0 - 10,000
6,500
Mod.
erpress.
7.0%
.90%
edium
Oil
9.5
26.9
1.34
ssment
XVII. Libya

June, 2013
INTROD
L
successf
of Libya
the Herc
filled with
defining
assessed
T
Devonian
Cretaceo
assessm
the main
W
basins an
resource

3
DUCTION
ibya is one
ful history of
s sedimenta
ynian that s
h Cambrian
and limiting
d basins of L
The regionall
n Frasnian
ous shales
ment in the S
shale forma
While our sh
nd their shal
es in other ba
of the impo
f oil and gas
ary basins is
eparated th
though Oli
the shale g
Libya.
ly dominant
Shale are a
-- Sirte/Ra
irte Basin. T
ation assess
hale resourc
le source roc
asins and fo

XV
ortant hydro
exploration
s complex, h
e area into
igocene sed
gas and oil
Lower Silu
assessed in
achmat and
The basal h
sed in the Mu
ce assessme
cks, it is like
rmations.
EIA/ARI W
VII-4
ocarbon prod
, particularly
having been
a series of h
diments. Th
prospective
rian Tannez
the Ghada
Etel -- ar
hot shale w
urzuq Basin.
ent has targ
ely that future
World Shale Ga
ducing coun
y in the Sirte
n formed by
horsts and g
his tectonic
e areas, as
zuft basal o
mes (Berkin
re the subj
within the Silu
.
geted three
e exploration
s and Shale Oil
ntries of Nor
e Basin. The
y a series of
grabens (up
overprint is
discussed f
r hot shale
ne) Basin. T
ject of our
urian Tanne
of Libyas m
n will identify
Resource Asses

rth Africa, w
e geologic se
f tectonic ev
lifts and trou
s a key fact
for each of t
e and the U
Two distinct
shale reso
ezuft Format
most prospe
y additional s
ssment
with a
etting
vents,
ughs)
tor in
these
Upper
Late
ource
ion is
ective
shale
XVII. Libya

June, 2013
1. G
1.1 In
T
and sout
significan
Figure XV
In
basal org
We have
comprisin
northern
the erosi
data for t
as the e
Libya, Tu
T
Ghadam
gas/cond
remainde
Figure XV
T
Frasnian
mi
2
highe
eastern,
are set b
prospect

3
GHADAMES
ntroduction
The Ghadam
thern Tunisia
nt shale form
VII-2.
1

n Libyas po
ganic-rich m
e mapped a
ng separate
and eastern
ional limits o
the eastern
astern boun
unisia and A
The central,
es Basin h
densate pros
er of the pro
VII-3.
The Upper D
Shale is mo
er quality pro
northern an
by the minim
ive area is th
S (BERKIN
n and Geo
mes (Berkine
a. It encomp
mations, the
rtion of the
arine shale
22,370-mi
2

e dry gas,
n boundaries
of the Siluri
portion of th
ndary.) The
Algerian bord
dry-gas por
has a therm
spective are
ospective are
evonian Fra
ore limited in
ospective are
d southern b
mum therma
he Tunisia, A

XV
NE) BASIN
logic Setti
) Basin is a
passes an 8
e Lower Silu
Ghadames
(hot shale
higher qua
wet gas/co
s of the Tan
an, and by
he prospectiv
western bo
der.
rtion of the
mal maturity
a covers 3,3
ea of 16,440
asnian Shale
n area and is
ea for the Fr
boundaries
al maturity c
Algeria, and
EIA/ARI W
VII-5
ng
large intra-c
84,000-mi
2
a
urian Tannez
Basin, the S
) that increa
lity area for
ondensate, a
nezuft Shale
thermal ma
ve area, we
oundaries of
2,580-mi
2
T
(R
o
) rangin
350 mi
2
and
0 mi
2
is in the
e is deposite
s thermally l
rasnian Sha
of the Frasn
criterion of 0
Libyan bord
World Shale Ga
cratonic bas
area in northw
zuft and the
Silurian Tan
ases in matu
the Tannez
and oil-pron
e prospectiv
aturity. (Due
relied on th
f the prospe
Tannezuft Sh
ng from 1.3
has a R
o
be
e oil window
ed above the
less mature
ale in the Gh
nian Shale p
0.7% R
o
. T
der.
s and Shale Oil
in underlying
western Liby
e Upper De
nnezuft Form
urity toward
zuft hot sha
ne windows
ve area are d
e to limited
e ring of dis
ective area i
hale prospe
3% to over
etween 1.0%
w, with a R
o

e Tannezuft
. We have m
adames Bas
prospective a
The western
Resource Asses

g eastern Al
ya and host
vonian Fras
mation conta
the basin ce
ale in this b
s. The sout
defined by u
thermal ma
scovered oil
is defined b
ctive area i
r 2%. The
% and 1.3%.
of 0.7% to 1
t Formation.
mapped a 1
sin of Libya.
area in this
boundary o
ssment
lgeria
s two
snian,
ains a
enter.
basin,
thern,
plifts,
aturity
fields
by the
n the
e wet
The
1.3%,
The
,970-
The
basin
of the
XVII. Libya

June, 2013

3
Source: Se
Figure XV
eddiq Hussein, 2

XV
VII-2. Ghadam
2004.
EIA/ARI W
VII-6
mes Basin Stra
World Shale Ga
atigraphic Colu
s and Shale Oil
umn
Resource Asses

ssment
XVII. Libya

June, 2013
T
the Ghad
0.7% and
is in the
condensa
1.2 R
S
Tannezu
northern
13,000 ft
lower or
Tannezu
U
overlying
from 8,0
gas/cond
Shale ha
3% to 10
1.3 R
S
area, ha
condensa
resource
resource
T
billion ba
with pres
technical
and dry s

3
The northern
dames Basin
d 1.0%. The
dry gas win
ate area for
Reservoir P
Silurian Tan
ft Shale in
and eastern
t in the dry g
rganic-rich b
ft Shale ave
Upper Devo
g Upper Dev
000 to 12,0
densate area
as an averag
0%, with an a
Resource A
Silurian Tan
s a resourc
ate prospec
e concentrati
e concentrati
The risked re
arrels of sha
sence of cl
lly recoverab
shale gas.
, eastern an
n, encompas
e central, qu
ndow, with R
the Frasnian
Properties
nnezuft Form
the Ghadam
n edge of th
gas area, 11
basal shale
erages 5.7%
onian Frasn
vonian Fras
000 ft, ave
a; and 11,50
ge net thickn
average of 6
Assessmen
nezuft Shal
ce concentra
ctive area,
ions of 43 B
on in the 16
esource in-p
ale oil/conde
ays but oth
ble shale oi
XV
nd southern
ssing an are
uite small 30
R
o
of 1.3% to
n Shale, with
(Prospecti
mation. The
mes (Berkin
he basin to
1,000 ft in th
unit has a
.
2

nian Forma
nian Shale
raging 8,50
00 ft in the dr
ness of 177 f
6%.
3

nts
le. The Tann
ation of 54
the Tannez
Bcf/mi
2
of we
,440 mi
2
oil
place for the
ensate and 2
herwise favo
il/condensat
EIA/ARI W
VII-7
outer ring of
ea of 1,570 m
0-mi
2

portion
o over 2%.
h R
o
betwee
ive Area)
e depth of t
e) Basin of
14,500 ft to
he wet gas a
a net thickn
ation. The
in the Ghad
00 ft in the
ry gas area.
ft. The Frasn
nezuft Shale
Bcf/mi
2
. W
zuft Shale o
et gas and 3
prospective
e prospectiv
240 Tcf of w
orable reser
e resource
World Shale Ga
f the Frasnia
mi
2
, is in the
n of the Fras
In between
en 1.0% and
the gas pros
Libya rang
oward the ba
area, and 1
ess of 104
depth of t
dames (Ber
e oil-prone
The organic
nian Shale h
e, within its 2
Within its lar
of the Ghad
3 million bar
area is 12 m
ve areas of
wet and dry
rvoir proper
of 5.2 billio
s and Shale Oil
an Shale pro
e oil window
snian Shale
n is the 370-
1.3%, Figur
spective are
es from 10,
asin center,
0,500 ft in t
4 ft. The TO
the prospec
rkine) Basin
area; 9,50
c-rich portio
has TOC val
2,580-mi
2
dry
rger 3,350-m
dames (Ber
rrels/mi
2
of c
million barre
the Tannez
shale gas.
rties, we es
n barrels an
Resource Asses

ospective ar
with R
o
betw
prospective
-mi
2
wet gas
re XVII-4.
ea of the Sil
,000 ft along
averaging a
the oil area.
OC of the
ctive area o
of Libya ra
0 ft in the
n of the Fras
ues ranging
y gas prospe
mi
2
wet gas
rkine) Basin
condensate.
ls/mi
2
.
zuft Shale is
Given conc
stimate a ris
nd 42 Tcf o
ssment
rea in
ween
area
s and
lurian
g the
about
The
basal
of the
anges
e wet
snian
from
ective
s and
n has
The
s 104
cerns
sked,
of wet
XVII. Libya

June, 2013
Fig
3
Figure XVII-3
Source: A
ure XVII-4. G
Source: ARI,
. Ghadames B
RI, 2013
hadames Bas
, 2013
XV
Basin Silurian
in Upper Devo
EIA/ARI W
VII-8
n Tannezuft Sh

onian Frasnia
World Shale Ga
hale Outline a
an Shale Outli
s and Shale Oil
and Thermal M
ine and Therm
Resource Asses

Maturity

mal Maturity

ssment
XVII. Libya

June, 2013
U
31 millio
barrels/m
and 93 B
T
oil/conde
barrels a
3
Upper Devon
on barrels/m
mi
2
of conden
Bcf/mi
2
of dry
The risked
ensate and 3
nd 4 Tcf of w
nian Frasni
mi
2
for oil (p
nsate and 8
y gas in the 3
resource in
33 Tcf of we
wet/dry shal
XV
ian Shale.
plus associ
Bcf/mi
2
of w
30-mi
2
dry g
n-place for
et/dry shale
e gas.
EIA/ARI W
VII-9
The Frasnia
ated gas) i
wet gas in th
as window.
the prospe
gas, with ris
World Shale Ga
an Shale has
in the 1,57
he 370-mi
2
w

ective area
sked, recove
s and Shale Oil
s resource c
0-mi
2
oil w
wet gas/con
as is 23 b
erable shale

Resource Asses

concentratio
window, 7 m
densate win
billion barre
e oil of 1.2 b
ssment
ons of
million
ndow,
els of
billion
XVII. Libya

June, 2013
2. S
Introduc
T
hydrocar
(defined
Basin ha
2013). T
these hy
resource
So

3
SIRTE BAS
ction and G
The Sirte Ba
rbon basin i
as fields co
as yielded 45
The Upper C
drocarbon d
e study, Figu
ource: Seddiq H
IN
Geologic S
asin, coverin
n North Afr
ontaining mo
5 billion bar
Cretaceous S
discoveries a
re XVII-5.
1

Figure
ussein, 2004
XVI
Setting
g an area o
ica. The S
ore than 500
rels of oil an
Sirte/Rachm
and are the
XVII-5. Sirte
EIA/ARI W
II-10
of 172,000 m
irte Basin c
0 million barr
nd 33 Tcf of
at and Etel
two organic-
Basin Stratigr
World Shale Ga
mi
2
in centr
contains sixt
rels of oil eq
f natural ga
shales are t
-rich shale f
raphic Colum
s and Shale Oil
ral Libya, is
teen giant o
quivalent. T
s discoverie
the principal
formations a
n
Resource Asses

the most p
oil and gas
To date, the
es (SEPM S
source rock
addressed by
ssment
rolific
fields
Sirte
Strata,
ks for
y this
XVII. Libya

June, 2013
2.1 G
T
southeas
XVII-6.
Upper C
have ma
five troug
more lim
Source: A

3
Geologic Se
The Sirte Bas
st including
These troug
retaceous S
apped an oil-
ghs, similarl
ited Etel Sha
Figur
ARI, 2013
etting
sin consists
the Hameim
ghs contain
Sirte/Rachma
-prospective
y, we have
ale in these
re XVII-6. Sirt

XVI
of a series o
mat, Agedab
the two ma
at Shale and
e area totalin
mapped a 1
five troughs
e Basin Net S
EIA/ARI W
II-11
of horst and
bia, Wadaya
ain shale for
d the underl
ng 35,240 m
19,920-mi
2
w
s.
hale Isopach
World Shale Ga
d graben stru
at, Hagfa an
rmations eva
ying Upper
mi
2
for the S
wet gas/con
for the Sirte/R
s and Shale Oil
uctures trend
nd Zella, as
aluated by t
Cretaceous
Sirte/Rachma
ndensate are
Rachmat Shale
Resource Asses

ding northwe
shown in F
this study -
s Etel Shale.
at Shale in t
ea for the a
e
ssment
est to
Figure
- the
. We
these
really
XVII. Libya

June, 2013
2.2 R
S
Sirte/Rac
11,000 ft
with a n
averages
Source: A

E
Shale at
is about
is high a
gas/cond
3
Reservoir P
Sirte/Rachm
chmat Shale
t, Figure VX
et organic-r
s 2.8% and t
F
ARI, 2013
Etel Shale.
depths of 1
600 ft thick,
at 3.6%. Th
densate wind
Properties
mat Shale.
e is present i
XII-7. The to
rich shale se
the shale is
Figure XVII-7.
The Etel Sh
1,000 to 16,
of which 12
he thermal m
dow.
XVI
(Prospecti
Within th
n a series o
otal Sirte/Ra
ection of 20
in the oil win
Sirte Basin, S
hales 19,92
,400 ft, aver
0 net ft is or
maturity (R
o
)
EIA/ARI W
II-12
ive Area)
he oil-prosp
of troughs at
achmat Form
00 ft. The
ndow (R
o
of
Sirte/Rachmat
0-mi
2
prosp
raging 13,50
rganic-rich s
) of 1.0% to

World Shale Ga
pective area
depths of 10
mation has a
TOC of the
0.7% to 1.0%
Shale Prospe
ective area
00 ft, Figure
shale. The T
o 1.3% place
s and Shale Oil
a of the S
0,000 to 12,
a gross thick
e organicric
%).
ective Area
underlies th
XVIII-8. Th
TOC of the o
es the Etel
Resource Asses

Sirte Basin,
000 ft, avera
kness of 2,0
ch shale int
he Sirte/Rac
he Etel Form
organic-rich s
Shale in the
ssment
, the
aging
000 ft
terval
chmat
mation
shale
e wet
XVII. Libya

June, 2013
Source:

2.3 R
S
mi
2
prosp
gas. The
risked, te
of 350 Tc
E
wet gas
and 37 B
oil/conde
resource
3
ARI, 2013
Resource A
Sirte/Rachm
pective area
e risked sha
echnically re
cf, with 28 T
Etel Shale.
and conden
Bcf of wet g
ensate and 2
es are estima
Figure XV
Assessmen
mat Shale. T
a for oil, has
ale oil in-plac
ecoverable.
cf as the risk
The Upper C
sate. The E
as per squa
298 Tcf of w
ated at 2.0 b
XVI
VII-8. Sirte Ba
nt
The Upper C
s an oil conc
ce is estima
In addition,
ked, technic
Cretaceous
Etel Shale ha
are mile. W
wet gas, the
billion barrels
EIA/ARI W
II-13
asin, Etel Shal
Cretaceous
centration o
ted at 406 b
we estimate
cally recovera
Etel Shale h
as resource
With risked re
e risked, tec
s of shale oil
World Shale Ga
e Prospective
Sirte/Rachm
of 29 million
billion barrels
e a risked a
able shale g
has a prosp
e concentrati
esources in-
chnically rec
l/condensate
s and Shale Oil
e Area
mat Shale, w
barrels/mi
2
,
s, with 16.2
ssociated sh
gas resource
ective area
ions of 6 mil
-place of 51
coverable s
e and 45 Tcf
Resource Asses

within its 35
, plus assoc
billion barre
hale gas in-
e.
of 19,920 m
llion barrels
billion barre
shale oil and
f of shale ga
ssment
5,240-
ciated
els as
place
mi
2
for
of oil
els of
d gas
as.
XVII. Libya

June, 2013
3. M
Introduc
T
Libya (ex
the Murz
Since th
fields, ac
as recove
Figur
Source: AR

3
MURZUQ B
ction
The Murzuq
xtending sou
zuq Basin r
en, four larg
ccount for 5.4
erable.
re XVII-9. Bas
I, 2013
BASIN
Basin exten
uthward into
remained un
ge discover
4 billion barr
sin Outline and

XVI
nds over a la
the Republ
ndiscovered
ries, includin
rels of disco
d Structural C
EIA/ARI W
II-14
arge 97,000
ic of Chad),
and unpro
ng the giant
overed oil in-
Contour Map (G
World Shale Ga
-mi
2
area in
Figure XVII
oven for hyd
t Elephant f
-place, with
Granitic Basem
s and Shale Oil
n the southw
I-9. With its
drocarbons
field plus n
1.75 billion b
ment) for the
Resource Asses

western porti
s remote loca
until the 19
umerous sm
barrels estim
Murzuq Basin
ssment
on of
ation,
980s.
maller
mated
n
XVII. Libya

June, 2013
T
Lower Si
Figure XV
data and
the deep

3.1 G
T
Tihemba
Arch (wh
borders.
Murzuq B
3
The primary
lurian Tanne
VII-10.
4
Ano
concern wit
p center of th
F
Source:
Geologic Se
The Murzuq
da Arch (wh
hich separate
Figure XVI
Basin.
shale sour
ezuft Format
other potent
th respect to
he basin.
Figure XVII-10
Belaid at al., 20
etting
Basin is bo
hich separat
es it from th
I-11
4
provide
XVI
ce rock add
tion, notably
ial source ro
o thermal ma
0. Subsurface
010
ounded on
tes it from th
he Ghadame
es a general
EIA/ARI W
II-15
dressed in t
y the hot sh
ock in this ba
aturity, is the
Stratigraphy
the east by
he Illizi Basin
es Basin), a
ized cross-s
World Shale Ga
he Murzuq
ale interval
asin, not fur
e Middle Dev
for the Murzu
y the Tibist
n in Algeria)
and on the s
section acros
s and Shale Oil
Basin resou
at the base
rther assess
vonian Away
uq Basin.
ti Arch, on
), on the no
south by the
ss the northe
Resource Asses

urce study i
of the forma
sed due to la
ynat Format

the west by
rth by the Q
Libya and
ern portion o
ssment
s the
ation,
ack of
ion in
y the
Qurcal
Chad
of the
XVII. Libya

June, 2013
So

T
the basin
Trough i
have bee
this troug
primary h
this shale
location p
3.2 R
L
Llandove
grained s

3
ource: Belaid at
The intra-cra
ns depositio
n the cente
en drilled th
gh, the Silu
hydrocarbon
e interval is
provided on
Reservoir P
Lower Silur
erian) consis
sandstone d
Figure
al., 2010
tonic Murzu
on and hyd
r of the bas
at provide a
rian Tannez
n source roc
illustrated b
Figure XVII-
Properties
rian Tanne
sts of dark g
eposited in a

XVI
e XVII-11. Cro
uq Basin con
drocarbon po
sin where a
a most valua
zuft Formatio
ck for the oil
by the cross
-13.
4

(Prospecti
ezuft Shal
ray to black
a marine en
EIA/ARI W
II-16
oss-Section fo
ntains a ser
otential. O
series of co
able data se
on, particula
discoveries
s-section on
ive Area).
le. The
graptolitic s
vironment.
5
World Shale Ga
or Murzuq Bas
ries of troug
f particular
ored wells (
et for this re
arly its lowe
s in the Murz
n Figure XV
Silurian T
shales with in
s and Shale Oil
sin
hs and uplif
significance
F3-NC174 a
esource asse
er hot shale
zuq Basin.
II-12,
4
with t
annezuft F
ntervals of s
Resource Asses

fts that dom
e is the Aw
and H29-NC
essment. W
e interval, i
The presen
the cross-se
Formation (
siltstone and
ssment
minate
wabari
C115)
Within
s the
nce of
ection
(early
d fine-
XVII. Libya

June, 2013

Figur
Sou

3
re XVII-12. Ge
urce: Belaid et a
eneral Stratigr
(See Fig
al., 2010
XVI
raphy and Cro
gure XVIII-13
EIA/ARI W
II-17
oss Section (A
for Cross-Sec
World Shale Ga
A-A) for Four M
ction Location
s and Shale Oil
Murzuq Basin
ns)
Resource Asses

n Study Wells
ssment

X

J

XVII. Libya
June, 2013
Source
Fig
e: Belaid at al., 2010
XV
gure XVII-13. Awa
VII-18
bari Trough of the
EIA/ARI W
e Murzuq Basin
World Shale Gas andd Shale Oil Resource

e Assessment
XVII. Libya

June, 2013
W
Figure X
Basin ra
outcrops
informati
can be u
ft has be
Source: AR

In
p
se
lic
w
3
We have ma
XVII-14. The
nges from 3
of the Ta
on on forma
p to 1,000 ft
en included
I, 2013
n the NC-11
enetrated th
eal as well a
cense area.
width, ranging
apped a 5,67
e depth of th
3,300 ft on
annezuft Fo
ation thickne
t thick, only
in our resou
Figure XVII-1
15 license
he Tannezuf
as the sourc
In this are
g in thicknes
XVI
70-mi
2
oil-pr
he Tannezuf
the flanks t
rmation in
ess and othe
the basal h
urce assessm
14. Shale Pros
area, 146 m
ft Formation
ce rock for th
ea, the hot
ss up to 35 m
EIA/ARI W
II-19
rospective a
ft hot shale
to 10,000 ft
the uplifts
er properties
ot shale un
ment.
spective Area
m of core w
. Here the
he productive
t shale exis
m, with the t
World Shale Ga
area in the c
e in the pro
t in the cen
surrounding
. While the
nit, with thick
a of the Murzu
was taken f
basal Tanne
e Mamuniya
sts as a nor
hickest deve
s and Shale Oil
center of th
spective are
tral part of
g the basin
overall Tan
kness rangin
q Basin.
from 22 we
ezuft shale
at sandstone
rth to south
elopment in
Resource Asses

e Murzuq B
ea of the Mu
the basin.
6
n provide u
nezuft Form
ng from 30 to
ells, all of w
serves as b
e formation i
belt with lim
the southea
ssment
Basin,
urzuq
The
useful
mation
o 100
which
both a
in the
mited
astern
XVII. Libya

June, 2013
p
(a
N
b
C
3
A
th
p
ex
a
U
performe
Tannezu
source ro
section.
separate
Upper Si
T
some co
sources,
maturity
middle o
as poor t
depositio
W
m thick,
sufficient
D
Formatio
limited in
establish
3
ortion of the
average 9.9%
NC115, placi
elieved to in
Core analysis
.7% to 4.7%
A detailed an
he properties
resence of T
xisted over
bove and be
Upper Silur
ed recently
ft Formation
ock quality o
(Geochem
e Jordan cha
lurian in add
The rock sam
ontribution o
Figure XVII
with Tmax
il window (R
to fair, with T
onal environm
While the ove
it appears t
tly organic-ri
Devonian A
on is also co
nformation ex
hed as an eff
e prospective
%) and the
ng the shal
ncrease towa
s from a se
% (average 4
nalysis of the
s of Tannez
Type II (oil p
an interval f
elow the hot
rian Tanne
on a serie
n of the Mu
of the exten
mical analysi
apter, indica
dition to the
mples from th
of mixed Ty
I-16.
5
The
values of 4
R
o
of 0.6% to
TOC values
ment.
erall Tannez
hat only the
ch to be inc
waynat Wa
nsidered a p
xists for this
fective petro
XVI
e area. The
shale has a
e in the late
ard the south
econd well, F
.0%), with th
e E1-NC174
uft hot shal
prone) kerog
from 7,244 t
t shale inte
ezuft Shale
es of repres
urzuq Basin.
nsive Siluria
s of the Up
ated the pot
organic-rich
his upper int
pe II and I
rock sampl
435 to 445
o 0.9%) The
ranging from
zuft Shale Fo
e basal (hot
luded in our
anin Forma
potential sha
unit. To da
oleum system
EIA/ARI W
II-20
e TOC of the
a thermal ma
e oil maturity
hern portion
F3-NC174,
hermal matu
well, drilled
e in the Aw
gen with TO
to 7,267 ft, w
rval, Figure
e. An in-
sentative sh
.
5
The purp
n Tannezuft
pper Siluria
tential for p
shale in the
terval were m
II kerogen (
es showed a
C, indicatin
e organic co
m 0.4% to 1.
ormation in t
t shale) uni
r shale resou
ation. The
ale source ro
ate, only the
m.
8

World Shale Ga
e hot shale
aturity of R
o
y window.
of the prosp
recorded TO
urity of 0.7 R
d in 1997, pr
wabari Troug
OC values of
with leaner b
XVII-15.
7

-depth geoc
hale sample
pose of this
t cool shale
n Shale in
rospective o
e Lower Silu
mainly Type
(gas/oil pron
an early to in
ng the sour
ontent of the
.28%, indica
the Murzuq
it of the Silu
urce assessm
Middle-Late
ock in the M
Silurian Tan
s and Shale Oil
ranges from
0.83% to 0
The maturit
pective area
OC values t
R
o
.
4

rovides furth
gh. The core
f up to 13%.
but still orga
chemical in
es from the
s study was
es at the to
Jordan, as
organic-rich
rian.)
e III kerogen
ne) from m
ntermediate
rce rock wa
e samples w
ating a mixed
Basin is on
urian Tannez
ment.
e Devonian
Murzuq Basin
nnezuft-Mam

Resource Asses

m 3.2% to 2
0.95% in we
ty of the sha
a.
4

that ranged
er informatio
e data show
The hot s
anic-rich inte
nvestigation
e Upper Sil
to establis
op of the Sil
reported in
shale withi
(gas prone)
arine/terrige
stage of the
s in the ea
was characte
d oxic to sub
n the order o
zuft Formati
Awaynat W
n. However
muniyat has
ssment
23.1%
ll A1-
ale is
from
on on
ws the
shale
ervals
was
lurian
h the
lurian
n our
n the
) with
enous
ermal
rly to
erized
b-oxic
of 300
ion is
Wanin
, only
been
XVII. Libya

June, 2013

3
So
Figure XV
ource: Butcher, 2
XVI
VII-15. TOC Va
Modified from
2013.
EIA/ARI W
II-21
lues within th
m Luning et al

World Shale Ga
e E1-NC174 C
l. 2003.
s and Shale Oil
Core.

Resource Asses

ssment
XVII. Libya

June, 2013
Figure XV
So

3.3 R
T
has a re
shale oil
shale ga
technical

3
VII-16. Cross P
ource: Hodairi,
Resource A
The Tannezu
source conc
resource in-
s, with 1.3 b
lly recoverab
Plot Between
Mo
T. and Philp, P.,
Assessmen
uft hot shale
centration o
-place is est
billion barrel
ble resource

XVI
S2 mg HC/g R
Mur
dified from GeoM
, 2011.
nt
e, within th
f 10 million
timated at 27
ls of shale o
e.
EIA/ARI W
II-22
Rock and %TO
rzuq Basin.
Mark Research,
e 5,670-mi
2
barrels/mi
2
7 billion barr
oil and 2 Tc
World Shale Ga
OC for Tannez
LTD (2009).
2
prospective
of oil plus
rels of shale
cf of associa
s and Shale Oil
zuft Formation
e area of th
associated
e oil plus 19 T
ated shale g
Resource Asses

n, Field A, NC-
he Murzuq B
gas. The r
Tcf of assoc
as as the ris
ssment
-115,
Basin,
risked
ciated
sked,
XVII. Libya

June, 2013
4. K
Introduc
T
southeas
to that of
uncertain
T
the basin
containin
the north
In
having b
northern
absence
B1-NC43
Silurian,
where th
additiona
in the Ku
L
Basin.
11

basal ho
which the

3
KUFRA BAS
ction
The Kufra B
stern Libya.
f the Murzuq
nty as to the
The Lower S
n margins,
ng the Siluria
hern and eas
n addition, t
been replace
part of the
of lower Si
3 - - suggest
representin
he Tannezu
al exploration
ufra Basin.
ower Siluria
However, th
ot shale occ
e basal hot
SIN
asin is a la
The Paleoz
q Basin, dis
presence of
ilurian Tann
Figure XVII-
an hot shale
stern margin
the hot sha
ed by siltsto
e basin by A
lurian shale
ts that this a
g the westw
uft basal ho
n well drilled
an, organic-
he areal dist
currences de
shale is ab

XVI
arge 400,00
zoic structura
scussed earl
f sufficiently
ezuft Forma
-17.
9
Howe
e in the Mu
s of the bas
ale unit was
nes and sa
AGIP in the
s in these tw
area may hav
ward continu
ot shale is
d in 1997 has
rich shales
tribution of th
eposited as
sent.
10

EIA/ARI W
II-23
00-km
2
, rem
al and depos
lier in this c
organic-rich
ation is desc
ever, the ba
rzuq Basin a
in.
10

s absent in
ndstones in
late 1970s
wo Kufra Ba
ve been dep
uation of the
s also abse
s noted the
may be pre
his shale un
linear featur
World Shale Ga
mote intra-cra
sition history
chapter. How
h source roc
ribed as up
sal section
appears to b
three explo
n two dry ex
s and early
asin explora
posited as a
e sandy low
nt, Figure X
absence of
esent in the
nit is laterally
res and patc
s and Shale Oil
atonic sag
y of the Kufr
wever, there
cks in this ba
to 130 m th
of the Tann
be missing i
oration wells
xploration we
1980s (Bel
ation wells -
a sandy delta
wer Silurian i
XVII-18.
10

the lower Si
e western p
y highly varia
ches, surrou
Resource Asses

basin locate
ra Basin is s
e is conside
asin.
ick in outcro
nezuft Form
n outcrops a
s drilled to
ells drilled i
lini, 1991).
- A1-NC-43
a during the
in western E
Since then,
ilurian hot s
part of the
able with Sil
nded by are
ssment
ed in
imilar
erable
ops at
mation
along
date,
n the
The
3 and
early
Egypt
, one
shale
Kufra
lurian
eas in
XVII. Libya

June, 2013

3
Figure XV

XVI
II-17. Stratigr
EIA/ARI W
II-24
aphic Column

World Shale Ga
n of the Kufra
s and Shale Oil
Basin
Resource Asses

ssment
XVII. Libya

June, 2013

3
Fig
Based on Keele
Source: Lu
gure XVII-18.
ey, 1989; Semtne
uning et al. 1999

XVI
Early Silurian
er et al., 1997; S
9
EIA/ARI W
II-25
n Paleogeogra
Selley, 1997b; Ke
World Shale Ga
aphy of the K
eeley & Masoud
s and Shale Oil
ufra Basin
d, 1998 and Luni
Resource Asses

ing, 1999.

ssment
XVII. Libya

June, 2013
RECENT
L
resource
Gaddafi.
Berruien
and gas
unconve
unconve
REFERE

1
Hussein S
2
Acheche,
Reapprais
no. 5, p. 7
3
Rahmani,
Union Sh
4
Belaid, A.
Murzuq Bas
5
Hodairi, T
Discovery
and Exhibi
6
Aziz, A., 2
SW Libya.
7
Butcher, A
Murzuq Ba
8
Hallet, D.,
9
Grignani,
Basin, Liby
10
Lning, S
Rock Barri
11
Klitzsch,
Exploration
12
Bauerova
2012.
3
T ACTIVITY
ibyas oil a
es came to
However,
, announced
resources.
ntional reso
ntional resou
ENCES

eddiq, 2004. L
M.H., MRabet,
sal of Triassic R
765-780.
A., Kaced, M. a
ale Gas Worksh
et al., 2010.
sin, SW Libya. E
. and Philp, P., 2
Article #10344,
tion, Houston, T
000. Stratigrap
in Geological E
A., 2013. Chitin
asin, SW Libya.
2000. Petroleu
D., E. Lanzoni a
ya. Proceeding
S. et al. 1999.
er Fall? Marine
E.H., 2000.
n. in Geologica
a, L., 2012. L
Y
nd gas exp
a halt durin
in late 201
d that the co
One option
ources and
urce explora

ibya Exploration
A., Ghariani, H.
eservoirs and F
nd Arab, M., 201
hop, Oran, Alger
Thermal Histor
Elsevier Marine a
2011. Geoche
posted August
Texas, USA, Apr
phy and Hydroca
Exploration in Mu
nozoans from the
Elsevier Review
um Geology of L
and Elatrash, H
s of the 3rd Sym
Re-evaluation o
e and Petroleum
The Structural
al Exploration in
Libya Renews F
XVI
ploration, in
ng the upris
12, the Cha
ompany is ex
n discussed
d then brin
ation and dev
n Overview and F
., Ouahchi, A., a
uture Prospectiv
12. The Potent
ia, February.
ry and Source R
and Petroleum G
mical Investigati
t 8, 2011, adapte
il 10-13, 2011.
arbon Potential o
urzuq Basin, Cha
e Middle Rhudda
w of Palaeobotan
Libya. Elsevier,
H., 1992. Palae
mposium on the
of the Petroleum
m Geology, vol. 1
development o
Murzuq Basin, C
Focus on Natura
EIA/ARI W
II-26
cluding the
sing that ov
airman of L
xamining op
by Chairma
ng in intern
velopment.
12
Future Opportun
and Montgomery
vity. American
tial of Shale Gas
Rock Characteri
Geology, vol. 27
ion of Tanezzuft
ed from expand
of the Lower Pal
apter 16, Elsevie
anian (Lower Lla
ny and Palynolo
Amsterdam, the
eozoic and Meso
Geology of Libya
Potential of the
6, p. 693-718.
of the Murzuq
Chapter 7, Elsev
al Gas, Plans to
World Shale Ga
assessmen
verthrew the
Libyas Natio
ptions for ex
an Berruien
national co
2

nities National O
y, S.L., 2001. G
Association of P
s Plays in Algeria
ization of a Pale
, p. 612632.
t Formation, Mu
ed abstract pres
leozoic Success
er Science B.V.,
andovery, Siluria
gy xxx (2013).
e Netherlands, p
ozoic Subsurfac
a (Tripoli 1987),
e Kufra Basin (S
and Kufra Bas
vier Science B.V
Explore Shale.
s and Shale Oil
nt of its sh
e governme
onal Oil Co
xploring its u
is to intern
mpanies w
Oil Corporation,
Ghadames Basi
Petroleum Geolo
a. Sonatrach A
eozoic Section
urzuq Basin, Liby
sentation at AAP
sion of License N
, p. 349-368.
an) Hot Shale i
p. 508.
ce Palynostratig
p. 1159-1227.
SE Libya, NE Ch
sins Significance
V., p. 143-150.
www.Bloomb
Resource Asses

hale oil and
ent of Muam
mpany, Mr.
nconvention
nally evaluat
with expertis
April.
n, Southern Tun
ogists, Bulletin, v
mont/Internation
in the Awbari T
ya. AAPG Sear
PG Annual Conv
NC-115, Murzuq
in the E1-NC174
raphy in the Al
had): Does the
e for Oil and M
erg.com, Novem
ssment
d gas
mmar
Nuri
nal oil
e the
se in
nisia: A
vol. 85,
nal Gas
Trough,
rch and
vention
Basin,
4 Core,
Kufrah
Source
Mineral
mber 7,
XVIII. Egypt

June, 2013

XVIII.
SUMMA
E
Abu Gha
the organ
the large
Source: AR
t
. EGY
ARY
Egypt has fou
aradig, Alam
nic-rich Khat
er Middle Jur
Fi
I, 2013.
YPT
ur basins in
mein, Natrun
tatba Shale,
rassic Khata
igure XVIII-1.
XV
the Western
and Shous
sometimes
tba Formatio
Hydrocarbon
EIA/ARI W
VIII-1
n Desert with
shan-Matruh
referred to a
on.
n Basins of th

World Shale Ga
h potential fo
h, Figure XV
as the Kabri
e Western De
s and Shale Oil
for shale gas
VIII-1.
1
The
it Shale or S
sert, Egypt
Resource Asses

s and shale
target horiz
Safa Shale, w
ssment
oil - -
zon is
within

XVIII. Egypt

June, 2013

O
shale ga
XVIII-1.
risked sh
resource

R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
R
e
s
o
u
r
c
e
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
R
e
s
e
r
v
o
i
r
R
e
s
o
u
r
c
e
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
t
Our assessm
as in-place, w
In addition,
hale oil in-p
es, Table XV
Tab
Tab
P
r
o
p
e
r
t
i
e
sReservoir Pres
AverageTOC (
Thermal Matur
Clay Content
Gas Phase
GIP Concentra
Risked GIP (Tc
Risked Recove
ProspectiveAr
Thickness (ft)
Depth (ft)
Basin/G
Shale
Geolo
Depositiona
P
r
o
p
e
r
t
i
e
sReservoir Pre
AverageTOC
Thermal Matu
Clay Content
R
e
s
o
u
r
c
e
Oil Phase
OIP Concentra
Risked OIP (B
Risked Recov
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveA
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/
Shale
Geo
Deposition
ment is that
with 100 Tc
we estimat
place, with
III-2.
le XVIII-1. Sha
ble XVIII-2. Sh

Organically Rich
Net
Interval
Average
ssure
(wt. %)
rity (%Ro)
ation (Bcf/mi
2
)
cf)
erable(Tcf)
rea(mi
2
)
Gross Area
Formation
ogic Age
al Environment
Organically Rich
Net
Interval
Average
essure
(wt. %)
urity (%Ro)
ation (MMbbl/mi
2
)
B bbl)
verable(B bbl)
Area(mi
2
)
/Gross Area
Formation
logic Age
nal Environment
XV
the Khatatb
cf of risked,
te that the K
4.6 billion b
ale Gas Reser
hale Oil Reserv
Abu Gharadig
(7,670mi
2
)
Khatatba
M. Jurassic
Marine
6,840
1,500
300
11,000 - 13,000
12,000
Normal
4.0%
1.15%
Low/Medium
Wet Gas
99.2
325.7
65.1
Abu Gharadig
(7,670mi
2
)
Khatatba
M. Jurassic
Marine
6,840
1,500
300
11,000 - 13,000
12,000
Normal
4.0%
1.15%
Low/Medium
Condensate
14.3
47.1
1.88
EIA/ARI W
VIII-2
ba Shale co
technically r
Khatatba Sh
barrels of ri
rvoir Propertie
voir Propertie
Alamei
(2,340m
Khatatb
M. Jurass
Marine
2,340
1,000
200
0 13,000 - 15
14,000
Normal
4.0%
0.85%
Low/Med
Assoc. G
29.1
16.7
1.3
g Alamein
(2,340m
Khatatb
M. Jurass
Marine
2,340
1,000
200
0 13,000 - 15
14,000
Normal
4.0%
0.85%
Low/Medi
Oil
25.1
14.4
0.58
World Shale Ga
ontains appr
recoverable
ale contains
isked, techn
es and Resou
es and Resour
n
mi
2
)
Na
(4,86
ba Kha
sic M. Ju
e Ma
4,
1,
2
5,000 13,000
0 14
l No
4.
0.8
ium Low/M
Gas Asso
3
4
3
n
i
2
)
Nat
(4,86
ba Kha
sic M. Ju
Ma
4,8
1,2
24
5,000 13,000
14,
l Nor
4.
0.8
ium Low/M
O
30
35
1.
s and Shale Oil
roximately 5
shale gas
s about 114
nically recov
rces of Egypt
rces of Egypt
atrun
60mi
2
)
Sh
atatba
urassic
arine
860
200
240
- 15,000 1
,000
rmal
.0%
85%
Medium
oc. Gas
5.0
1.6
3.3
trun
0mi
2
)
Sho
atatba
urassic
arine
860
200
40
- 15,000 10
000
rmal
0%
85%
Medium L
Oil
0.1
5.9
.43
Resource Asses

535 Tcf of r
resources, T
billion barre
verable sha

houshan-Matruh
(7,080mi
2
)
Khatatba
M. Jurassic
Marine
4,420
1,000
200
10,000 - 15,000
13,000
Normal
4.0%
1.15%
Low/Medium
Wet Gas
71.3
151.2
30.2
oushan-Matruh
(7,080mi
2
)
Khatatba
M. Jurassic
Marine
4,420
1,000
200
0,000 - 15,000
13,000
Normal
4.0%
1.15%
Low/Medium
Condensate
7.9
16.8
0.67
ssment
risked
Table
els of
ale oil

XVIII. Egypt

June, 2013

INTROD
T
underlain
hydrocar
Desert in
the locat
discovere
and Sham
T
strata tha
conventio
still only
T
Khatatba

t
DUCTION
The northern
n by organ
rbons produ
nclude Abu G
tion of man
ed, large Jur
ms (discove
The basins h
at exceed 15
onal oil and
lightly explo
The focus of
a Formation,
n portion of
nic-rich sha
ction from t
Gharadig, A
ny of the m
rassic fields
red in 1997)
have a thick
5,000 feet, F
gas deposi
red, particul
our shale re
also called
XV
f the Weste
ales that h
hese basins
Alamein, Nat
ajor oil and
of Kanayes
).
2

k sedimentar
Figure XVIII
its, the large
arly for their
esource stud
the Kabrit S
EIA/ARI W
VIII-3
ern Desert
have provid
s. The prim
trun and Sho
d gas fields
(discovered
ry sequence
-2.
3
Despite
e Western D
r deeper form
dy is the Kh
Shale and the
World Shale Ga
of Egypt c
ded the so
mary hydroca
oushan-Mat
of Egypt,
d in 1992), O
e comprising
e many year
Desert hydro
mations.
hatatba Sha
e Safa Shale
s and Shale Oil
contains a s
ource for t
arbon basins
truh. The W
including th
Obayeid (dis
g Paleozoic
rs of succes
ocarbon bas
le within the
e, Figure XV
Resource Asses

series of b
he convent
s in the We
Western Des
he more rec
scovered in 1
through Te
ssful discove
sins of Egyp
e Middle Jur
VIII-3.
4

ssment
asins
tional
estern
sert is
cently
1993)
ertiary
ery of
pt are
rassic
XVIII. Egypt

June, 2013

t
Figure XVIII I-2. Generaliz
Source: Youne

XV
ed Lithostrati
es, 2012 (Modifie
EIA/ARI W
VIII-4
graphic Colum
ed after Abdou,1
World Shale Ga
mn of the Wes
998).
s and Shale Oil
stern Desert o
Resource Asses

of Egypt.
ssment
XVIII. Egypt

June, 2013

Figure

t
e XVIII-3. Kha
Source: D
atatba Formati
olson, 2000.

XV
ion and Kabrit
EIA/ARI W
VIII-5
t (Safa) Shale,

World Shale Ga
, Shoushan-M
s and Shale Oil
Matruh Basin, W
Resource Asses

Western Dese
ssment
ert.
XVIII. Egypt

June, 2013

E
beyond t
that is int
As such,
before es
S
Basur-1
sandston
wells.
6
T
deposits
lacks a S
and eros
C
Roash fo
classified
values g
thermally
favorable
source ro
J
Western
provided
The Khat
oil and ga
T
Western
Formatio
net pay o

t
Egypts geolo
the scope o
tended to he
, the study e
stablishing th
Silurian. A t
and Kohka-
nes and silts
The sandsto
without any
Silurian Tan
sion of Siluria
Cretaceous.
ormations ex
d as margin
enerally rep
y immature i
e reservoir p
ocks in our s
Jurassic. D
Desert. T
the setting
tatba Shale
as found in t
The larger K
Desert. T
on ranges in
of 200 to 300
ogic history
of this resou
elp place the
examined th
he Middle Ju
thick sequen
-1 wells, exis
stones thin t
one and silts
y evidence
nezuft (Hot
an sediment
Cretaceou
xist across m
nal to moder
ported at les
in significant
properties a
shale oil and
During the la
These rift ba
for the impo
(also called
the Western
Khatatba For
he type sec
thickness fr
0 feet, XVIII-

XV
is complex
rce assessm
e shale oil an
hree major s
urassic Khat
nce of Siluria
sts in the no
to the south
stone units
of Silurian o
t Shale) sou
ts.
7

us-age shale
much of the W
rate source
ss than 2%.
t portions of
and limited d
d gas resourc
ate Triassic
asins and t
ortant Khata
the Safa Sh
n Desert.
2
,
3

rmation rang
ction of the
rom 0 to ove
-Figure 4.
3
,
9
,
2
EIA/ARI W
VIII-6
and a full d
ment. Howe
nd gas resou
shale source
tatba Shale a
an siltstone,
orthwestern
h and east a
appear to re
organic-rich
urce rock eq
e source ro
Western De
rock quality
In addition
f the Wester
data, we ha
ce assessme
and Jurass
heir subseq
atba Formati
hale) has se
ges from 1,0
Kabrit (Sa
er 600 feet in
2
,
10

World Shale Ga
iscussion of
ever, this ch
urces of the
e rocks in th
as the prima
estimated a
portion of t
as shown by
est directly
shales.
8
Th
quivalent du
ocks within t
esert. Howe
y for oil and
n, the Creta
rn Basin stu
ave not incl
ent.
sic, a series
quent exten
ion and its t
erved as the
000 feet to
fa) Shale M
n the Weste
s and Shale Oil
f its geology
hapter provi
Western De
he Western
ary target.
at about 200
the Western
y the Foram
on Upper O
he Western
ue to a pale
the Alam E
ever, these s
d gas gene
ceous-age s
udy area.
8
D
uded these
of rift basin
sion during
thick, black s
e source roc
over 2,000
Member with
ern Desert, w
Resource Asses

y and tecton
des an ove
esert into con
Desert of E
0 to 300 m i
n Desert.
5
T
m-1 and She
Ordovician g
Desert of E
o-basement
l-Bueib and
shales have
ration, with
source rock
Due to these
Cretaceous
ns formed i
the Cretac
shale depos
k for much o
feet thick i
hin the Kha
with an estim
ssment
ics is
rview
ntext.
Egypt
in the
These
eiba-1
lacial
Egypt
t high
d Abu
been
TOC
ks are
e less
s-age
n the
ceous
sition.
of the
n the
atatba
mated
XVIII. Egypt

June, 2013

Source: AR
D
southern
of the K
reflectan
window,
plants an
combinat
the wet g
pore spa

t
Fig
I, 2013.
Detailed sou
portion of t
Khatatba Sh
ce (R
o
) of 1
Figure XVII
nd algae, im
tion of maxi
gas/condens
ce.
gure XVIII-4.
rce rock ev
he Abu Gha
ale. The T
1.0% to 1.3%
I-5.
3
The sh
mplying a mix
mum tempe
sate and vol
XV
Middle Jurass
valuations o
aradig Basin
TOC of the
%, placing t
hale contains
xture of mar
erature and k
atile oil wind
EIA/ARI W
VIII-7
sic Khatatba F
of core sam
provided im
e shale vari
the shale pr
s mixed vitri
rginal marin
kerogen type
dows with si
World Shale Ga
Formation Gro
mples from t
mportant dat
ed from 3.6
rimarily in th
inite-inertinit
e and contin
e places the
ignificant as
s and Shale Oil
oss Isopach
the Shusha
ta on the res
6% to 4.2%
he wet gas
te kerogen d
nental organ
e Khatatba S
sociated plu
Resource Asses

n-1X well in
servoir prope
% with a vit
and conden
derived from
nic matter.
11
Shale prima
us free gas i
ssment

n the
erties
trinite
nsate
m land
The
rily in
in the
XVIII. Egypt

June, 2013

Figure XV
Source: You

ABU GH
G
graben w
by the Q
is consid
prospect
Middle Ju
R
depth of
averagin
2,000 fee
estimated
south ce
t
VIII-5. TOC an
unes, 2012
HARADIG BA
Geologic Se
with a depth
attara Ridge
dered the ma
ive area in
urassic depo
Reservoir Pr
the Khatatb
g 12,000 fee
et, averaging
d at 300 fee
ntral portion
nd Maturity Da
ASIN
etting. The
to basemen
e and on the
ajor hydroca
this basin
osits, Figure
roperties (P
ba Shale in
et. The gros
g about 1,50
et. Based on
of the basin
XV
ata, Jurassic-
e 7,670-mi
2
nt that excee
e south by th
arbon source
after exclud
XVIII-4.
Prospective
the Abu G
ss interval of
00 feet thick
n grain and
n, the porosi
EIA/ARI W
VIII-8
and Cretaceo
Abu Gharad
eds 30,000 f
he Sitra Plat
e rock in this
ding the we
e Area). Wi
Gharadig Bas
f the Khatatb
k. The net s
bulk density
ty ranges fro
World Shale Ga
us-Age Sourc
dig Basin is
feet. The ba
tform. The J
s basin.
2
We
estern portio
thin the 6,84
sin ranges
ba Formatio
shale, using
y data from t
om 2.4% to
s and Shale Oil
ce Rocks, Wes
s an east-w
asin is boun
Jurassic-age
e have iden
on of the ba
40-mi
2
pros
from 11,000
on ranges fro
a net to gro
the Betty-1 w
8.4%, avera
Resource Asses

stern Desert, E
west trending
nded on the
e Khatatba S
tified a 6,84
asin which
pective area
0 to 13,000
om near 0 to
oss ratio of 0
well, drilled i
aging 5.7% fo
ssment
Egypt
g half
north
Shale
40-mi
2

lacks
a, the
feet,
o over
0.2, is
in the
or six
XVIII. Egypt

June, 2013

core sam
to 4.2%,
R
Basin, th
barrels o
area is e
resource
is estima
shale oil
ALAMEI
G
portion o
portion o
Qattara R
appears
appears
R
depth of
14,000 fe
5.7%. O
thermal m
R
the Khat
mi
2
plus a
is estima
resource
place, wi

t
mples. The T
averaging 4
Resource As
he Khatatba
of oil/conden
estimated a
e, Table XVII
ated at 47 b
resource, Ta
N BASIN
Geologic Se
of the Weste
of the basin i
Ridge. The
to be the m
to be prospe
Reservoir Pr
the Khatatb
eet. The gro
Organic cont
maturity wind
Resource As
atba Shale
associated g
ated at 14 b
e, Table XVI
th about 1 T
TOC of the
4%, with ther
ssessment.
Shale has
nsate per mi
at 326 Tcf,
II-1. The ris
billion barrel
able XVIII-2
etting. The
rn Desert w
is bounded o
Jurassic-age
main shale o
ective for the
roperties (P
ba Shale in t
oss interval o
tent ranges
dow (R
o
of 0
ssessment.
has a resou
gas. The ris
billion barrels
II-2. The b
Tcf as risked

XV
shale, using
rmal maturity
. Within the
a resource
i
2
. The riske
with 65 Tcf
ked resourc
s with 1.9 b
.
Alamein Ba
hich was fur
on the north
e Khatatba S
oil and gas
e Khatatba S
Prospective
he Alamein
of the Khata
up to 10%,
0.8% to 1.0%
. Within the
urce concen
sked resourc
s, with 0.6 b
asin also ha
technically
EIA/ARI W
VIII-9
g data from
y (Ro) value
e 6,840-mi
2
concentrati
ed resource
f as the ris
ce in-place fo
billion barrel
sin is a larg
rther extend
h by the Med
Shale, which
target in th
Shale.
e Area). Wi
Basin range
tba Formatio
with an ave
%).
12

2,340-mi
2

ntration of 25
ce in-place fo
billion barrel
as associate
recoverable
World Shale Ga
the Shusha
es of 1.0% to
prospective
on of 99 Bc
e in-place fo
sked, technic
or oil/conden
ls of the ris
ge Jurassic r
ed during th
diterranean
h contains m
is basin. R
thin the 2,34
es from 13,0
on averages
erage of 4%
prospective
5.1 million b
or oil/conden
ls as the ris
ed gas estim
e, Table XVII
s and Shale Oil
n-1X well, ra
o 1.3%.
e area of th
cf of wet ga
or wet gas in
cally recove
nsate in the
sked, technic
rift basin in
he Cretaceou
Sea and on
mixed Type I
Remarkably,
40-mi
2
pros
000 to 15,00
s 1,000 feet
%, and the s
area of the
barrels of oi
nsate in the
sked, technic
mated at 17
II-1.
Resource Asses

anges from
he Abu Gha
as and 14 m
n the prospe
erable shale
prospective
cally recove
the northwe
us. The ons
the south b
I and III kero
the entire
pective area
0 feet, avera
with a poros
shale is in th
e Alamein B
l/condensate
prospective
cally recove
Tcf of riske
ssment
3.6%
aradig
million
ective
e gas
e area
erable
estern
shore
by the
ogen,
basin
a, the
aging
sity of
he oil
Basin,
e per
e area
erable
ed in-
XVIII. Egypt

June, 2013

NATRUN
G
basin loc
The basi
Horst. T
rock, res
considere
prospect
R
depth of
14,000 ft
averagin
240 ft, w
of 0.7%
reflectan
basinal s
R
Khatatba
The riske
barrels, w
The basi
technical
SHOUSH
G
northwes
Cretaceo
the Qatta
resource
basin

aft
depositio
t
N BASIN
Geologic Se
cated betwee
n is bounde
The Natrun B
servoir-seal,
ed the majo
ive for the M
Reservoir Pr
the Khatatb
t. The gros
g about 1,20
ith a porosity
to 1.0%, p
ce values i
sediments sh
Resource As
a Shale has
ed resource
with 1.4 bill
in also has
lly recoverab
HAN-MATRU
Geologic Se
stern portion
ous. The ba
ara Ridge.
e assessmen
ter deleting
on, Figure XV
etting. The N
en the majo
d on the nor
Basin appea
and timing
or hydrocarb
Middle Jurass
roperties (P
ba Shale in
ss interval of
00 ft thick.
y averaging
placing the
indicated ov
howed a the
ssessment.
a resource
in-place for
ion barrels
associated
ble resource
UH BASIN
etting. The
n of the W
asin is bound
The Jurass
nt in this bas
the wester
VIII-6.
3
,
14
,
1
,
9
,
2
,
XVI
Natrun Basi
or oil and ga
rth by the M
ars to hold a
g of therma
bon source r
sic Khatatba
Prospective
the Natrun
f the Khatat
The net sha
5.7%. The
shale in th
ver-mature
rmal maturit
Within the
concentratio
oil/condens
as the riske
gas estimat
es, Table XV
e Shoushan-
Western Des
ded on the n
sic-age Kha
sin. We ha
rn portion o
10

EIA/ARI W
II-10
n, covering
as fields of t
editerranean
favorable c
al maturity.
rock in this
a Shale, Figu
e Area). Wi
Basin rang
tba Formatio
ale, using a
TOC averag
e oil windo
Jurassic so
ty in the oil w
4,860-mi
2
p
on of 30.1 m
sate in the pr
ed, technica
ed at 42 Tc
VIII-1.
-Matruh Bas
sert which
north by the
atatba Shale
ve identified
of the basin
World Shale Ga
an area of 4
the Nile Delt
n Sea and o
conventional
The Juras
basin.
2
The
ure XVIII-4.
thin the 4,8
ges from 13
on ranges fr
net to gross
ges 4% with
ow. (Althoug
ource rocks
window).Erro
prospective a
million barre
rospective a
lly recovera
cf of risked i
sin is a larg
also was f
Mediterrane
e is the focu
d a prospect
n beyond th
s and Shale Oil
4,860 mi
2
, is
ta and the W
on the south
petroleum s
ssic-age Kh
e entire bas
60-mi
2
pros
,000 to 15,0
rom near 0
s ratio of 0.2
thermal ma
gh thermal
, borehole
or! Bookma
area of the N
els of oil/con
area is estim
able resourc
in-place, wit
ge Jurassic
further exten
ean Sea and
us of our s
tive area of
he limits of
Resource Asses

s a poorly de
Western Des
by the Katta
system of so
hatatba Sha
in appears
pective area
000 ft, avera
to over 2,0
2, is estimat
aturity (R
o
) va
modeled vit
data from
ark not defin
Natrun Basin
ndensate pe
mated at 36 b
ce, Table XV
th 3 Tcf of r
rift basin in
nded during
d on the sou
hale oil and
4,420 mi
2
in
Middle Jur
ssment
efined
sert.
13

aniya
ource
ale is
to be
a, the
aging
00 ft,
ted at
alues
trinite
intra-
ned.
n, the
r mi
2
.
billion
VIII-2.
risked
n the
g the
uth by
d gas
n this
rassic
XVIII. Egypt

June, 2013

Source: AR
R
depth of
averagin
over 1,50
a therma
Core ana
R
Basin, th
barrels o
area is e
XVIII-1.
17 billion
XVIII-2.
t
Figure XVI
I, 2013.
Reservoir Pr
the Khatatb
g 13,000 ft.
00 ft averagi
al maturity o
alysis indicat
Resource As
he Khatatba
of oil/conden
estimated at
The risked
n barrels, wi
III-6. Shousha
roperties (P
ba Shale in
The gross
ing 1,000 ft.
of R
o
1.0% t
tes a porosit
ssessment.
Shale has
nsate per mi
151 Tcf, wi
resource in-
th 0.7 billion
XVI
an-Matruh Bas
Prospective
the Shoush
s interval of
The Khatat
to 1.3%, pla
ty of about 5
Within the 4
a resource
i
2
. The riske
th 30 Tcf as
-place for oil
n barrels as
EIA/ARI W
II-11
sin, Khatatba
e Area). Wi
han-Matruh
f the Khatatb
tba Shale ha
acing the sh
5.7%.
4,420-mi
2
pr
concentratio
ed resource
s the risked
l/condensate
the risked,
World Shale Ga
Shales Depth
thin the 4,42
Basin range
ba Formatio
as an organ
hale in the w
rospective a
on of 71 Bc
e in-place fo
technically
e in the pros
technically
s and Shale Oil
and Gross Is
20-mi
2
pros
es from 10,0
on ranges fr
ic content a
wet gas/cond
area of the S
cf of wet gas
or wet gas in
recoverable
spective are
recoverable
Resource Asses

opach
pective area
000 to 15,0
rom near ze
veraging 4%
densate win
Shoushan-M
s and 7.9 m
n the prospe
e resource, T
ea is estimat
e resource, T
ssment

a, the
00 ft,
ero to
% and
ndow.
atruh
million
ective
Table
ted at
Table
XVIII. Egypt

June, 2013

RECENT
M
and shal
deeper J
Desert.
Bahariya
that, We
informati
these sha
REFERE

1
Wescott,
Discovery
and Exhib
2
Dolson, J
Petroleum
3
Younes, M
Prof. Moh
4
Dolson, J.
on Petrole
5
Keeley, M
6
El Hawat,
Basins. S
7
Luning, S.
Earth-Sci
8
Moretti, I.,
9
Abdou, A.
Basin and
1206-122
10
Ibraham,
Jurassic-
153-172.
11
Peters, K
System fr
12
Younes,
Egypt. O
13
Pigott, J.D
Nile, Egy
Novembe
t
T ACTIVITY
Much of the p
lower sedim
Jurassic sed
In 2010, A
a Field holds
e have two
on is public
ales.
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W.A. et al., 20
y Article #10379
bition, Milan, Ital
J. C. et al., 200
m Provinces of th
M.A., 2012. Hy
hamed Younes (
C. et al., 2000.
eum Provinces o
.L., 1989. The
A.S., 1997. S
Sedimentary Bas
et al., 2000. L
ence Reviews, v
2010. South A
.A. et al., 2009.
d Shoushan Sub
22.
M.I.A. et al., 199
Lower Cretaceo

. and Cassa, M.
rom Source to T
M., 2002. Alam
Oil Gas-Europea
D. and Ali Sade
pt. AAPG Sear
er.
past explora
ments. Rece
diments, suc
Apache ann
s between 7
wells planne
cally availabl

11. Jurassic
9, posted Decem
y, October 23-2
01. The Petrol
he Twenty-First
ydrocarbon Pote
(Ed.), ISBN: 978
The Petroleum
of the 21st Centu
Palaeozoic Histo
Sedimentary Bas
sins of the World
Lower Silurian H
vol. 49, p. 1212
Alamein Petroleu
Petrography
b-basin, North W
97. Paleoecolo
ous Sequence in
., 1994. Applied
rap. AAPG Mem
mein Basin Hydr
an Magazine, vol
ek, 2006. Geov
rch and Discove
XVI
ation drilling
ently, howev
ch as the Sa
nounced tha
700 million
ed to test th
le as to act
Rift Architecture
mber 19, 2011,
6, 2011.
eum Potential o
Century: AAPG
ntials in the Nor
-953-51-0379-0
m Potential of Eg
ury, San Diego,
ory of the Weste
sins of Egypt: An
d, 3. Elsevier, Am
Hot Shales in No
200.
um System (Wes
and Probable R
Western Desert,
ogy, Palynofacie
n the Subsurface
d Source Rock G
moir 60, p. 93-11
rocarbon Potent
l. 28, p. 22-28.
validating Basin
ery #90061, AAP
EIA/ARI W
II-12
in the West
ver, Apache
afa Sandsto
at an uniden
and 2.2 billi
he idea here
ivity or resu
e in the Northe
adapted from p
of Egypt. in M.
Memoir 74, p. 4
rthern Western D
, InTech
gypt. Presented
California, Janu
ern Desert of Egy
n Overview of D
msterdam, pp. 3
orth Africa and A
stern Desert, Egy
Reservoir Potent
Egypt. Austra
es, Thermal Matu
e of the North E
Geochemistry.
17.
tial of the Jurass
Models of Yo-Y
PG International
World Shale Ga
tern Desert h
e has begun
one in the F
ntified shale
ion barrels o
e later this y
ults involving
astern Western
poster presentati
.W. Downey, J.
453482.
Desert of Egypt
to the Second W
uary 12-15.
ypt. Basin Res
Dynamic Stratigr
3985.
Arabia: Regiona
ypt). Petroleum
tiality of Subsurf
alian Journal of B
uration and Hyd
Eastern Desert,
In Magoon, L.B
sic-Cretaceous
Yo Tectonics E
Conference and
s and Shale Oil
has targeted
n to success
Faghur Basin
e formation
of oil. The
year.
15
How
g the explor
n Desert, Egypt.
ion at AAPG Int
C. Threet, and
. Crude Oil Ex
Wallace E. Pratt
search, vol. 2, p.
raphy. In: Selle
al Distribution an
m Geoscience, v
rface Jurassic R
Basic and Appli
rocarbon Source
Egypt. Qatar U
. and Dow, W.G
Source Rocks,
Example: Wadi
d Exhibition, Per
Resource Asses

d the Cretac
sfully explor
n of the We
below the
company s
wever, no fu
ration for oil
. AAPG Searc
ternational Conf
d W. A. Morgan
xploration in the
t Memorial Conf
3548.
ey, R.C., Ed..,
nd Depositional M
v. 16, p. 121-132
Rocks at Abu Gh
ed Sciences, vo
e-Rock Potentia
Univ. Sci. J. vo
G., eds., The Pet
North Western D
El-Natrun Basin
rth, West Austra
ssment
ceous
re the
estern
East
stated
urther
from
ch and
ference
n, eds.,
World,
ference
African
Model.
2.
haradiq
ol. 3, p.
al of the
l. 17,p.
troleum
Desert,
n, West
alia 5-8,
XVIII. Egypt

June, 2013

14
Shalaby,
Rocks in
15
Dezembe
http://onli
t

M.R. et al., 20
the Shoushan B
er, Ryan, 2013
ne.wsj.com acce

011. Geochem
Basin, North Wes
. "Apache Pu
essed 2 Februar
XVI

mical Characteris
stern Desert, Eg
rsuing Shale-O
ry.
EIA/ARI W
II-13

stics and Hydro
ypt. Marine an
il Drilling in Eg
World Shale Ga

ocarbon Genera
nd Petroleum Ge
gypt." Business
s and Shale Oil

tion Modeling o
eology, vol. 28, p
Wall Street Jo
Resource Asses

of the Jurassic
p. 16111624.
ournal, 17 May
ssment

Source
y 2011.
XIX. South Africa EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 XIX-1
XIX. SOUTH AFRICA
SUMMARY
South Africa has one major sedimentary basin that contains thick, organic-rich shales - -
the Karoo Basin in central and southern South Africa, Figure XIX-1.
1,2,3
The Karoo Basin is
large (236,400 mi
2
), extending across nearly two-thirds of the country, with the southern portion
of the basin potentially favorable for shale gas. However, the basin contains significant areas of
igneous (sill) intrusions that may impact the quality of the shale resources, limit the use of
seismic imaging, and increase the risks of shale exploration.
Figure XIX -1: Outline of Karoo Basin and Prospective Shale Gas Area of South Africa
Source: ARI, 2013.


June, 2013 XIX-2
The Permian-age Ecca Group, with its organic-rich source rocks in the Lower Ecca
Formation, is the primary shale formation addressed by this assessment. Of particular interest
is the organic-rich, thermally mature black shale unit in the Whitehill Formation of the Lower
Ecca. This shale unit is regionally persistent in composition and thickness and can be traced
across most of the southern portion of the Karoo Basin.
4

We estimate that the Lower Permian Ecca Group shales in this basin contain 1,559 Tcf
of risked shale gas in-place, with 370 Tcf as the risked, technically recoverable shale gas
resource, Table XIX-1. We have excluded the Upper Ecca shales in this basin from quantitative
assessment because their TOC content is reported to be below the 2% TOC standard used by
this resource assessment study.
Table XIX-1: Shale Gas Reservoir Properties and Resources of the Karoo Basin
Prince Albert Whitehill Collingham
L. Permian L. Permian L. Permian
60,180 60,180 60,180
Net 120 100 80
Interval 6,000 - 10,500 5,500 - 10,000 5,200 - 9,700
Average 8,500 8,000 7,800
Mod. Overpress. Mod. Overpress. Mod. Overpress.
2.5% 6.0% 4.0%
3.00% 3.00% 3.00%
Low Low Low
Dry Gas Dry Gas Dry Gas
42.7 58.5 36.3
385.3 845.4 327.9
96.3 211.3 82.0
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
Risked Recoverable (Tcf)
Karoo
(236,400mi
2
)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir Pressure
Average TOC (wt. %)
Clay Content
B
a
s
i
c
D
a
t
aBasin/Gross Area
Shale Formation
Geologic Age
P
h
y
s
i
c
a
l
E
x
t
e
n
t
2
)
Thickness (ft)
Depth (ft)

June, 2013 XIX-3
INTRODUCTION
South Africa is a net natural gas importer, primarily from neighboring Mozambique and
Namibia. As such, South Africa has given priority to exploration for domestic gas and oil.
Shale exploration is initiated via a Technical Cooperation Permit (TCP), which may lead to an
Exploration Permit (EP) and eventually to a production contract. The country has a corporation
tax of 28% and royalty of 7%, terms that are favorable for gas and oil development.
A number of major and independent companies have signed Technical Cooperation
Permits (TCPs) to pursue shale gas in the Karoo Basin, including Royal Dutch Shell, the Falcon
Oil & Gas/Chevron joint venture, the Sasol/Chesapeake/Statoil joint venture, Sunset Energy Ltd.
of Australia and Anglo Coal of South Africa.
1. KAROO BASIN
1.1 Introduction
The Karoo foreland basin is filled with over 5 km of Carboniferous to Early Jurassic
sedimentary strata. The Early Permian-age Ecca Group underlies much of the Karoo Basin,
cropping out along the southern and western basin margins, Figure XIX-1. The Ecca Group
contains a sequence of organic-rich mudstone, siltstone, sandstone and minor conglomerates.
5

The larger Ecca Group, encompassing an interval up to 10,000 ft thick in the southern
portion of the basin, is further divided into the Upper Ecca (containing the Fort Brown and
Waterford Formations) and the Lower Ecca (containing the Prince Albert, Whitehill and
Collingham Formations), Figure XIX-2. The three Lower Ecca formations are the subject of this
shale resource assessment.
The regional southwest to northeast cross-section illustrates the structure of the Cape
Fold Belt of the Ecca Group on the south and the thermal maturity for the Ecca Group on the
north, Figure XIX-3.
6


June, 2013 XIX-4
Figure XIX-2. Stratigraphic Column of the Karoo Basin of South Africa
Source: Catuneanu, O. et al., 2005.


June, 2013 XIX-5
Figure XIX-3. Schematic Cross-Section of Southern Karoo Basin and Ecca Group Shales
Source: McLachlan, I. and Davis, A., 2006.

Major portions of the Karoo Basin have igneous (sill) intrusions and complex geology,
with the most extensive and thickest sills concentrated within the Upper Ecca and Balfour
formations.
7
This unusual condition creates significant exploration risk in pursuing the shale
resources in the Karoo Basin, Figure XIX-4.
8
(Note that this map reflects the maximum extent of
intrusions, which are expected to be less within the target shale formations.) Local mapping
indicates that contact metamorphism is restricted to quite close to the intrusions. As such, we
removed 15% of the prospective area to account for the potential impact of igneous intrusions
and significantly risked the remaining resource.
The prospective area for the Lower Ecca Group shales is estimated at 60,180 mi
2
,
Figure XIX-5. The boundaries of the prospective area are defined by the outcrop of the Upper
Ecca Group on the east, south and west/northwest and the pinch-out of the Lower Ecca Group
shales on the northeast, Figure XIX-1. The dry gas window is south of the approximately 29
o

latitude line. Given the thermal maturity information and the depositional limits of the Lower
Ecca shales, the prospective area of the Lower Ecca shales is primarily in the dry gas window.

June, 2013 XIX-6
Figure XIX-4. Igneous Intrusions in the Karoo Basin, South Africa
Source: Svensen, H. et al., 2007.

Figure XIX-5. Lower Ecca Group Structure Map, Karoo Basin, South Africa

Source: ARI, 2013.

June, 2013 XIX-7
Lower Ecca Shales. The Lower Ecca shales include the thick basal Prince Albert
Formation, overlain by the thinner Whitehill and Collingham Formations. Each of these
sedimentary units has been individually assessed and is discussed below.
Prince Albert Shale. The Lower Permian Prince Albert Formation has a thick, thermally
mature area for shale gas in the Karoo Basin. Depth to the Prince Albert Shale ranges from
6,000 to over 10,000 ft, averaging about 8,500 ft in the deeper prospective area in the south.
The Prince Albert Shale has a gross thickness that ranges from 200 to 800 ft, averaging 400 ft,
with a net organic-rich thickness of about 120 ft.
The total organic content (TOC) of the Prince Albert Shale within its organic-rich net pay
interval ranges from 1.5 to 5.5%, averaging 2.5%, Figure XIX-6.
8
Local TOC values of up to
12% have been recorded.
9
However, in areas near igneous intrusions much of the organic
content may have been lost or converted to graphite.
Figure XIX-6. Total Organic Content of Prince Albert and Whitehill Formations
Source: Svensen, H. et al., 2007.


June, 2013 XIX-8
Because of the presence of igneous intrusions, the thermal maturity of the Prince Albert
Shale is high, estimated at 2% to 4% R
o
, placing the shale well into the dry gas window. In
areas near igneous intrusions, the formation is over-mature, with vitrinite reflectance (R
o
) values
reaching 8%, indicating that the organic content has been transformed into graphite and CO
2
,
Figure XIX-7. The Prince Albert Shale was deposited as a deep marine sediment and is
inferred to have mineralogy favorable for shale formation stimulation.
Figure XIX-7. Carbon Loss in Lower Ecca Group Metamorphic Shale
Based on limited well data, primarily from the Cranemere CR 1/68 well completed in the
Upper Ecca interval, the Prince Albert Shale appears to be overpressured and has a high
thermal gradient.
Whitehill Shale. The organic-rich Lower Permian Whitehill Formation contains one of
the main shale gas targets in the Karoo Basin of South Africa. The depth to the Whitehill Shale
ranges from 5,500 to 10,000 ft, averaging 8,000 ft in the prospective area. The Whitehill Shale
has an estimated gross organic thickness of 100 to 300 ft,
10
with an average net thickness of
100 ft within the prospective area, as shown by the isopach map on Figure XIX-8.
11


June, 2013 XIX-9
Figure XIX-8. Isopach Map of the Whitehill Formation

Source: ARI, 2013.
The total organic content (TOC) for the Whitehill Shale in the prospective area ranges
from 3% to 14%, averaging 6%. Local areas have TOC contents up to 15%.
4
In areas near
igneous intrusions, portions of the organic content may have been converted to graphite. The
main minerals in the Whitehill Formation are quartz, pyrite, calcite and chlorite, making the shale
favorable for hydraulic stimulation. The Whitehill Shale is assumed to be overpressured. The
thermal maturity (R
o
) of the Whitehill Shale in the prospective area ranges from 2% to 4%,
placing the shale into the dry gas window.
The hydrogen and oxygen indexes of the Whitehill Formation indicate a mixture of Type I
and Type II kerogen.
9
The Whitehill Shales was deposited in deep marine, anoxic setting and
contains minor sandy interbeds from distal turbidites and storm deposits.
12,13

June, 2013 XIX-10
Collingham Shale. The Lower Permian Collingham Formation (often grouped with the
Whitehill Formation) contains the third shale formation addressed by this resource study. The
Collingham Formation has an upward transition from deep-water submarine to shallow-water
deltaic deposits.
9
The depth to the Collingham Shale averages 7,800 ft within the prospective
area. Except for total organic content, the shale has reservoir properties similar to the Whitehill
Shale. It has an estimated gross organic thickness of 200 ft, a net thickness of 80 ft, and TOC
of 2% to 8%, averaging 4%. Thermal maturity is high, estimated at 3% R
o
, influenced by
igneous intrusions. The shale is assumed to be overpressured based on data from the Upper
Ecca Group.
Upper Ecca Shales. The Upper Ecca Formation extends over a particularly thick, 1,500
m (~5,000 ft) vertical interval in the central and northern Karoo Basin. The Upper Ecca contains
two shale sequences of interest - - the Waterford and the Fort Brown. The Fort Brown
Formation accounts for the great bulk of the vertical interval of the Upper Ecca. These shales
are interpreted by some investigators to have been deposited in a shallow marine environment,
2
although others categorize them as lacustrine.
14

The organic content and thermal maturity of the Upper Ecca shales are considerably
less than for the Lower Ecca shales. The total organic content (TOC) is reported to range from
about 1% to 2%. With a thermal maturity ranging from 0.9% to 1.1% R
o
, the Upper Ecca shales
area is in the oil to wet gas window.
15

In the materials below, we provide a qualitative description for the Upper Ecca shales.
However, because their average TOC is below the 2% criterion set for the study, these shales
have been excluded from our quantitative assessment.
The boundaries of the prospective area for the Upper Ecca shales are defined by the
outcrop of the Upper Ecca on the east, south and west and the shallowing of the Lower Ecca
shales on the northeast. The shale oil window is north of the approximately 29
o
latitude line. A
significant basalt intrusion area of about 10,000 mi
2
in the center of the prospective area has
been excluded. Major portions of the prospective area have igneous intrusions that have locally
destroyed portions of the organics, creating significant exploration risk.
Fort Brown Shale. The Fort Brown Shale, as described in the Cranemere CR 1/68
well, is a dark gray to black shale with occasional siltstone stringers. In this well, the Fort Brown
Shale exists over a gross interval of nearly 5,000 ft (1,500 m) from 7,012-11,997 ft. Sunset

June, 2013 XIX-11
Energy, the current permit holder in the area surrounding the Cranemere CR 1/68 well, reports
that 24-hour DST testing in one interval of the Fort Brown shale, from 8,154-8,312 ft, had a flow
rate of 1.84 MMcfd. The well is reported to have blown out at a depth of about 8,300 ft (2,500
m), requiring 10.5 pound per gallon mud to bring the well under control.
The prospective area for the Upper Ecca Fort Brown Shale is estimated at 31,700 mi
2
.
The Fort Brown Shale in the prospective area has an average depth of 6,000 ft and ranges from
3,000 to 9,000 ft. The shale has an estimated 600 ft of net organic rich thickness, based on
using a net to gross ratio of 20% and an average gross thickness of 3,000 ft. The shale has a
total organic content (TOC) that ranges from 1 to 2% and an estimated average thermal
maturity of 1.1% R
o
(based on limited data).
Waterford Shale. The prospective area for the Upper Ecca Waterford Shale is
2
. The Waterford Shale in the prospective area has an average depth of
4,500 ft, ranging from 3,000 to 6,000 ft. The shale has an estimated 100 ft of net organic rich
thickness within an average gross thickness of 500 ft. Total organic content ranges from 1 to
2%, with average thermal maturity, based on very limited data, of 0.9% R
o
.
Prince Albert Shale. Within its 60,180-mi
2
dry gas prospective area, the Prince Albert
Shale has a resource concentration of about 43 Bcf/mi
2
. Given limited exploration data, the
risked shale gas in-place is estimated at 385 Tcf. Based on favorable TOC and reservoir
mineralogy, balanced by complex geology and volcanic intrusions in the prospective area, ARI
estimates a risked, technically recoverable shale gas resource of 77 Tcf for the Prince Albert
Shale in the Karoo Basin.
Whitehill Shale. Within its 60,180-mi
2
dry gas prospective area, the Whitehill Shale has
a resource concentration of about 59 Bcf/mi
2
. While somewhat more defined than the Prince
Albert Shale, the exploration risk for the Whitehill Shale is still substantial, leading to a risked
shale gas in-place of 845 Tcf. Based on favorable reservoir mineralogy but complex geology,
ARI estimates a risked, technically recoverable shale gas resource of 211 Tcf for the Whitehill
Shale in the Karoo Basin.

June, 2013 XIX-12
Collingham Shale. With a prospective area of 60,180 mi
2
and with a resource
concentration of 36 Bcf/mi
2
, the risked gas in-place for the Collingham Shale is estimated at 328
Tcf, with a risked, technically recoverable shale gas resource of 82 Tcf.
Considerable uncertainty surrounds the characterization and assessment of the shale oil
resources of South Africa, particularly for the net organic-rich thickness and the vertical and
areal distribution of thermal maturity. Shale exploration is just starting in the Karoo Basin and
few data points exist, particularly for the Upper Ecca group of formations.
1.4 Recent Activity
Falcon Oil & Gas Ltd., an early entrant into the shale gas play of South Africa, obtained
an 11,600-mi
2
TCP along the southern edge of the Karoo Basin. Shell obtained a larger
71,400-mi
2
TCP surrounding the Falcon area. Sunset Energy holds a 1,780-mi
2
TCP to the
west of Falcon. The Sasol/Chesapeake/Statoil JV TCP area of 34,000 mi
2
and the Anglo Coal
TCP application area of 19,300 mi
2
are to the north and east of Shells TPC, Figure XIX-9.
16

Figure XIX-9. Map Showing Operator Permits in the Karoo Basin, South Africa
Source: ARI, 2013.


June, 2013 XIX-13
Recently, Chevron announced that it would partner with Falcon Oil & Gas to pursue the
shale resources of the Karoo Basin, starting with seismic studies.
17

Five older (pre-1970) wells have penetrated the Ecca Shale interval. Each of the wells
had gas shows, while one of the wells - - the Cranemere CR 1/68 well - - flowed 1.84 MMcfd
from a test zone at 8,154 to 8,312 ft. The gas production, considered to be from fractured
shale, depleted relatively rapidly during the 24-hour test. The CR 1/68 well was drilled to 15,282
ft into the underlying Table Mountain quartzite and had gas shows from six intervals, starting at
6,700 ft and ending at 14,650 ft, indicating that the shales in this area are gas saturated.
REFERENCES
1
McLachlan, I. and Davis, A., Petroleum Exploration In The Karoo Basins, South Africa. Petroleum
Agency SA, 2006.
2
Catuneanu, O. et al., 2005. The Karoo Basins of South-Central Africa. Journal of African Earth
Sciences, vol. 43, p. 211-253.
3
U.S. Geological Survey Digital Data Series 60, World Petroleum Assessment 2000,
http://pubs.usgs.gov/dds/dds-060/.
4
Branch, T. et al., 2007. The Whitehill Formation A High Conductivity Marker Horizon in the Karoo
Basin. South African Journal of Geology, vol. 110, p. 465-476.
5
Johnson, M.R. et al., 1997. The Foreland Karoo Basin, South Africa. In: Selley, R.C., (ed.), African
Basins Sedimentary Basins of the World, Elsevier, Amsterdam.
6
McLachlan, I. and Davis, A., 2006.
7
Chevallier, L. and Woodford, A.C., 1999. Morpho-Tectonics and Mechanisms of Emplacement of the
Dolerite Rings and Sills of the Western Karoo, South Africa. South African Journal of Geology, vol.
102, p. 43-54.
8
Svensen, H. et al., 2007. Hydrothermal Venting of Greenhouse Gases Triggering Early Jurassic Global
Warming. Earth and Planetary Science Letters, vol. 256, p. 554-566.
9
Faure, K. and Cole, D.,1999. Geochemical Evidence for Lacustrine Microbial Blooms in the Vast
Permian Main Karoo, Parana, Falkland Islands and Haub Basins of Southwestern Gondwana.
Palaeogeography and Palaeoclimatology, vol. 152, p. 189-213.
10
Visser, J.N.J., 1992. Deposition of the Early to Late Permian Whitehill Formation During Sea-Level
Highstand in a Juvenile Foreland Basin. South African Journal of Geology, vol. 95, p. 181-193.
11
Visser, J.N.J, 1994. A Permian Argillaceous Syn- to Post-Glacial Foreland Sequence in the Karoo
Basin, South Africa. In: Deynoux, M., Miller, J.M.G., Domack, E.W., Eyles, N., Fairchild, I.J., and
Young G.M. (eds.), Earths Glacial Record: International Geological Correlation Project 260. Cambridge
University Press, Cambridge, p. 193-203.
12
Smith, R.M.H., 1990. A Review of the Stratigraphy and Sedimentary Environments of the Karoo Basin
of South Africa. Journal of African Earth Science, vol.10, p. 117-137.
13
Cole, D.I. and McLachlan, I.R., 1994. Oil Shale Potential and Depositional Environment of the
Whitehill Formation in the Main Karoo Basin. Council for Geoscience (South Africa) Report, vol. 1994-
0213.

June, 2013 XIX-14
14
Horsfeld, B. et al., 2009. Shale Gas: An Unconventional Resource in South Africa? Some Preliminary
Observations. 11
th
SAGA Biennial Technical Meeting and Exhibition, Swaziland, 16-18 September, p.
546.
15
Raseroka, A.L., 2009. Natural Gas and Conventional Oil Potential in South Africas Karoo Basin.
AAPG International Conference and Exhibition, 15-18 November, Rio de Janeiro, Brazil.
16
Petroleum Exploration and Production Activities in South Africa, Petroleum Agency South Africa,
September 2010, http://www.petroleumagencysa.com/files/Hubmap_09-10.pdf.
17
Maylie, D., 2012. Chevron Joins Shale Hunt in South Africa. Wall Street Journal, December 14,
www.wsj.com accessed March 29, 2013.
XX. China

June, 2013

XX. C

SUMMA
C
Sichuan,
Source: AR

CHINA
ARY
China has a
Tarim, Jung
Figure XX-1
Jiangh
I, 2013.
bundant sh
ggar, Songli
. Chinas Sev
han, Junggar,

XX
ale gas and
ao, the Yang
ven Most Pros
Sichuan, Son
EIA/ARI W
X-1
d shale oil
gtze Platform
spective Shale
ngliao, Subei, T
World Shale Ga
potential in
m, Jianghan
e Gas and Sha
Tarim, and Ya
s and Shale Oil
n seven pro
and Subei,
ale Oil Basins
angtze Platfor
Resource Asses

ospective ba
Figure XX-1
are the
m.
ssment
asins:
1.
XX. China

June, 2013

C
marine- a
Junggar
gas reso
Jianghan
tables XX
C
Risked, t
are estim
place), T
are store
hydraulic
T
from our
incorpora
extracted
recent dr
S
Sichuan
governm
5.8 to 9.7

China has an
and lacustrin
(36 Tcf), an
urces totalin
n and Subei
X-1A through
Chinas also
technically r
mated at 32.
Table XX-2A
ed mostly in
c stimulation
The shale ga
prior year 2
ates a signif
d from abou
rilling data.
Shale gas lea
Basin and Y
ent has set
7 Bcfd by 20
n estimated
ne-deposited
d Songliao (
ng 222 Tcf e
basins. Th
h XX-1E.
has consid
ecoverable
2 billion bar
through XX
lacustrine-d
.
as and shale
2011 EIA/AR
ficant new i
ut 600 publi
asing and ex
Yangtze Plat
an ambitiou
020.
XX
1,115 Tcf of
d source roc
(16 Tcf) bas
exist in the s
e risked sha
derable sha
shale oil res
rrels, out of
X-2C. Howev
deposited sh
oil resource
RI shale gas
information
shed techni
xploration dr
tform areas
us but proba
EIA/ARI W
X-2
f risked, tech
ck shales of
sins. Additio
maller, struc
ale gas in-pl
le oil poten
sources in th
643 billion b
ver, Chinas
hales, which
e assessme
s assessmen
from ARIs
ical articles
rilling alread
and led by
ably unachie
World Shale Ga
hnically reco
f the Sichuan
onal risked, t
cturally more
lace for Chin
ntial which i
he Junggar,
barrels of ris
shale oil res
may be cla
nt for China
nt. Importan
proprietary
(mostly Ch
dy are under
PetroChina
evable targe
s and Shale Oil
overable sha
n (626 Tcf),
technically re
e complex Y
na is estima
is geologica
Tarim, and
sked, prospe
sources tend
ay-rich and l
represents
ntly, this upd
data base
hinese langu
rway in Chin
, Sinopec, a
t for shale g
Resource Asses

ale gas, mai
Tarim (216
ecoverable s
Yangtze Plat
ated at 4,746
ally less def
Songliao b
ective shale
d to be waxy
ess favorab
a major upg
date assess
of geologic
uage) as we
na, focused i
and Shell an
gas producti
ssment
nly in
Tcf),
shale
tform,
6 Tcf,
fined.
asins
oil in
y and
ble for
grade
sment
data
ell as
in the
d the
on of
XX. China

June, 2013

P
h
y
s
i
c
a
l
E
x
t
e
n
t
T
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e
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o
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r
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sRe
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Th
Cl
Ta
Ta
GIP Concentrat
Risked GIP (Tc
Risked Recove
Gas Phase
Depth (ft)
Prospective Ar
Thickness (ft)
Basin/G
Shale F
Geolo
Depositiona
Reservoir Pres
Average TOC (w
Thermal Maturi
Clay Content
Org
Net
Inte
Ave
IP Concentration
isked GIP (Tcf)
isked Recoverable
as Phase
epth (ft)
rospectiveArea(m
hickness (ft)
Basin/Gross
ShaleForm
Geologic
Depositional En
eservoir Pressure
verageTOC (wt. %
hermal Maturity (%
lay Content
ble XX-1A. Ch
ble XX-1B. Ch

Organically Ri
Net
Interval
Average
tion (Bcf/mi
2
)
cf)
rable (Tcf)
rea (mi
2
)
Gross Area
Formation
ogic Age
al Environment
sure
wt. %)
ity (%Ro)
Niu
ganically Rich

erval
erage
(Bcf/mi
2
)
e(Tcf)
mi
2
)
s Area
mation
Age
nvironment
e
%)
%Ro)
XX
hina Shale Ga
hina Shale Ga
Qiongzhu
L. Cambria
Marine
6,500
ch 500
275
10,000 - 16,
13,200
Mod.
Overpres
3.0%
3.20%
Low
Dry Gas
109.8
499.6
124.9
utitang/Shuijintuo
L. Cambrian
Marine
1,280
533
267
9,840 - 16,400
13,120
Normal
6.6%
2.25%
Low
Dry Gas
148.9
45.7
11.4
EIA/ARI W
X-3

as Resources

as Resources

usi Longma
an L. Siluria
Marine
10,070
1,000
400
,400 9,000 - 15,
11,500
s.
Mod.
Overpres
3.2%
2.90%
Low
s Dry Gas
162.6
1,146.1
286.5
Sichuan
(74,500m
o
670
394
197
8,200 - 12,000 1
10,000
Normal
2.0%
1.15%
Low
Wet Gas
51.0
8.2
1.6
Longm
L. Silu
Mar
World Shale Ga
and Geologic
and Geologic
axi Permia
an Permia
e Marine
0 20,900
314
251
,500 3,280 - 16
0 9,700
ss.
Mod.
Overpre
4.0%
2.50%
Low
s Dry Ga
114.1
1 715.2
214.5
n
mi
2
)
1,230
394
197
10,000 - 14,760 3,
12,380
Normal
2.0%
2.00%
Low
Dry Gas A
67.1
19.8
4.9
Jianghan
(14,440mi
2
)
maxi
urian
rine
s and Shale Oil
c Properties.
c Properties.
an L. Camb
an L. Camb
e Marin
0 3,25
500
275
6,400 10,000 - 1
0 13,20

ss.
Norm
3.0%
% 3.20%
Low
as Dry G
99.4
2 181.
5 45.2
Yan
(
650 1
700 7
175 1
300 - 7,000 7,000
5,500 8
Normal No
2.0% 2
0.85% 1.
Low L
Assoc. Gas We
14.1 4
1.8 1
0.2
Qixia
P
M
Resource Asses

brian L. Silu
brian L. Silu
ne Mari
50 5,03
0 1,00
5 400
16,400 9,000 - 1
00 11,5
mal Norm
% 3.2%
% 2.90
w Low
Gas Dry G
4 147
0 414
2 103
ngtze Platform
(611,000mi
2
)
,100 2,0
700 70
175 17
- 10,000 10,000 -
,500 11,5
ormal Norm
2.0% 2.0
15% 1.80
Low Lo
et Gas Dry G
48.3 66.
10.6 27.
2.7 6.
a/Maokou
Permian
Marine
ssment

urian
urian
ne
35
00
0
15,500
500
mal
%
0%
w
Gas
.1
.7
.7
80
00
75
13,120
500
mal
0%
0%
w
Gas
.6
.7
9
XX. China

June, 2013

P
h
y
s
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c
a
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v
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P
r
o
p
e
r
t
i
e
s
Ta
Ta
GIP Concentr
Risked GIP (T
Risked Recov
Gas Phase
Depth (ft)
Prospective A
Thickness (ft)
Basin
Shale
Geo
Deposition
Reservoir Pre
Average TOC
Thermal Matu
Clay Content
GIP Concentra
Risked GIP (Tc
Risked Recove
Gas Phase
Depth (ft)
Prospective Ar
Thickness (ft)
Basin/G
Shale F
Geolo
Depositiona
Reservoir Pres
Average TOC (w
Thermal Matur
Clay Content
ble XX-1C. Ch
ble XX-1D. Ch
Organically R
Net
Interval
Average
ration (Bcf/mi
2
)
Tcf)
verable (Tcf)
Area (mi
2
)
)
n/Gross Area
e Formation
ologic Age
nal Environmen
essure
C (wt. %)
urity (%Ro)
Organically R
Net
Interval
Average
ation (Bcf/mi
2
)
cf)
erable (Tcf)
rea (mi
2
)
Gross Area
Formation
ogic Age
al Environment
ssure
wt. %)
rity (%Ro)
XX
hina Shale Ga
hina Shale Ga
Mufush
L. Camb
Marine
2,040
Rich 400
300
13,000 - 16
14,700
Norma
2.1%
1.20%
Low
Dry Ga
118.6
29.0
7.3
nt
L. Cambr
L. Cambr
Marine
6,520
Rich 380
240
11,000 - 16
14,620
Normal
2.0%
2.0%
Low
Dry Gas
77.1
175.9
44.0
t
EIA/ARI W
X-4
as Resources

as Resources

an
rian
e
0 5,37
820
246
6,400 11,500 - 1
0 12,50
al Norm
1.1%
% 1.15%
Low
as Wet G
6 66.0
42.5
10.6
U. Ord
Wuf
rian L. Ordov
rian L. Ordov
e Marin
19,42
300
170
6,400 10,000 - 1
0 13,69
l Norm
2.4%
1.80%
Low
s Dry G
59.8
377.5
94.4
World Shale Ga
and Geologic
and Geologic
0 9,62
0 820
6 246
13,500 13,500 -
00 14,5
al Norm
% 1.1%
% 1.45
w Low
Gas Dry G
0 87.
5 101
6 25.
dovician-L. Silur
Marine
Greater Su
(55,000m
feng/Gaobiajian
vician
vician
ne
20 10,45
300
160
16,400 8,610 - 1
90 10,79
al Norm
% 2.1%
% 0.90
w Low
as Assoc.
8 12.6
5 32.8
4 3.3
Tarim
(234,200
M.
M
s and Shale Oil
c Properties.
c Properties.
20 1,35
0 500
6 150
16,400 3,300 - 8
500 5,80
mal Norm
% 2.0%
5% 1.15
w Low
Gas Wet G
8 35.8
.4 5.8
4 1.5
rian
ubei
mi
2
)
n
50 10,9
0 390
0 240
12,670 9,840 - 1
90 12,1
mal Norm
% 2.5%
0% 2.00
w Low
Gas Dry G
6 85.
8 232
3 58.
m
mi
2
)
.-U. Ordovician
.-U. Ordovician
Marine
Resource Asses

50 290
0 500
0 150
8,200 8,000 - 1,
00 9,000
mal Norma
% 2.0%
% 1.35%
w Low
Gas Dry Ga
8 55.4
8 1.9
5 0.5
U. Permian
U. Permian
Marine
Ketu
L. Tria
Lacus
30 15,9
0 400
0 200
16,400 9,500 - 1
80 13,0
mal Norm
% 3.0%
0% 0.90
w Low
Gas Assoc.
0 40.
.3 161
1 16.
n
ssment

000
al
%
as
uer
assic
trine
20
0
0
16,400
00
mal
%
0%
w
. Gas
5
.2
1
XX. China

June, 2013

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Averag
Therma
Clay Co
Or
Ne
Int
Av
Risked Recoverab
Oil Phase
Reservoir Pressur
AverageTOC (wt.
Thermal Maturity
Clay Content
OIP Concentration
Shale For
Geologic
Risked OIP (B bbl
Prospective Area
Thickness (ft)
Depth (ft)
Basin/Gro
Depositional E
able XX-1E. Ch
able XX-2A. C

Organ
Net
Interv
Avera
oncentration (B
GIP (Tcf)
Recoverable (
hase
(ft)
ective Area (mi
ess (ft)
Basin/Gross A
Shale Format
Geologic Ag
positional Envi
voir Pressure
ge TOC (wt. %)
al Maturity (%
ontent
rganically Rich
et
terval
verage
ble(B bbl)
re
%)
(%Ro)
n (MMbbl/mi
2
)
rmation
c Age
l)
(mi
2
)
ss Area
Environment
XX
hina Shale Ga
China Shale Oi
P
nically Rich
val
age
Bcf/mi
2
)
(Tcf)
2
)
Area
tion
ge
ronment
Ro)
Longmaxi
L. Silurian
Marine
670
394
197
8,200 - 12,000
10,000
Normal
2.0%
1.15%
Low
Condensate
5.0
0.8
0.04
EIA/ARI W
X-5
as Resources

il Resources a
ingdiquan/Luc
Permian
Lacustrine
7,400
820
410
6,600 - 16,4
11,500
Highly Overpr
5.0%
0.85%
Medium
Assoc. Ga
64.7
172.4
17.2
J
(62
650
700
175
3,300 - 7,000 7
5,500
Normal
2.0%
0.85%
Low
Oil C
28.5
3.7
0.18
Jianghan
(14,440mi
2
)
Qixia/Ma
Perm
Marin
World Shale Ga
and Geologic
and Geologic
caogou Tri
Tri
e Lac
8
8
4
400 5,000
10
ress.
H
Ove
4
0.
Me
as Asso
6
1
1
Junggar
2,100mi
2
)
W
U.
1,100
700
175
,000 - 10,000
8,500
Normal
2.0%
1.15%
Low
Condensate
5.7
1.3
0.06
aokou
ian
ne
s and Shale Oil
c Properties.
Properties.
(10
iassic Qi
iassic C
custrine L
8,600
820
410
0 - 16,400 3,
0,000
ighly
erpress.
Mod
4.0%
.85%
edium
oc. Gas A
60.5
87.5
18.7
Wufeng/Gaobiajia
Ordovician-L. Silu
Marine
5,370
820
246
11,500 - 13,500
12,500
Normal
1.1%
1.15%
Low
Condensate
7.0
4.5
0.23
Great
(55,0
Resource Asses

Songliao
08,000mi
2
)
ngshankou
Cretaceous
Lacustrine
6,900
1,000
500
300 - 8,200
5,500
d. Overpress.
4.0%
0.90%
Medium
Assoc. Gas
45.0
155.4
15.5
an U. Perm
urian U. Perm
Marine
1,350
500
150
3,300 - 8
5,800
Norma
2.0%
1.15%
Low
Condens
6.2
1.0
0.05
ter Subei
000mi
2
)
ssment

mian
mian
e
0
8,200
0
al
%
%
sate
5
XX. China

June, 2013

In
commerc
high tecto
of in-cou
1. S
P
C
S
su
fo
in
st
a
S
m
fa
N
Ri
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
R
e
s
o
u
r
c
e
Oi
Re
Av
Th
Cl
OI
Ri
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pr
Th
De
B
a
s
i
c
D
a
t
a
Ta
nitial drilling
cialization m
onic stress),
ntry horizon
South China
Platform. T
Cambrian and
Sichuan Basi
urface wate
ocusing on t
n H
2
S. Th
tructurally co
nd still cons
Shale targets
mature, but lo
aulted. Petro
North Americ
Org
Net
Inte
Ave
isked Recoverable
il Phase
eservoir Pressure
verageTOC (wt. %
hermal Maturity (%
lay Content
IP Concentration
ShaleForm
Geologic
isked OIP (B bbl)
rospectiveArea(m
hickness (ft)
epth (ft)
Basin/Gross
Depositional En
able XX-2B. C
g confirms
may be challe
, restricted a
tal drilling an
a Shale C
These areas
d Silurian ag
in -- Chinas
er supplies,
he southwes
e adjacent
omplex with
idered prosp
s in the sou
ower in TOC
oChinas firs
ca). The in
M.-
M.-
anically Rich

erval 8
erage
e(B bbl)
e
%)
%Ro)
(MMbbl/mi
2
)
mation
Age
mi
2
)
s Area
vironment
XX
China Shale Oi
Chinas sh
enging due
access to ge
nd fracturing
Corridor : S
s have clas
ge that are ro
s premier sha
and close
st quadrant
Yangtze P
poor data c
pective.
thwestern p
C (~2%) tha
st horizontal
nduced fract
-U. Ordovician
-U. Ordovician
Marine
10,450
300
160
8,610 - 12,670
10,790
Normal
2.1%
0.90%
Low
Oil
11.9
31.1
1.55
Tarim
(234,200
EIA/ARI W
X-6
il Resources a
hale gas a
to the typica
eologic data,
g services.
Sichuan, Ji
ssic marine-
oughly comp
ale gas area
proximity to
of the basin
Platform and
control, but a
portion of the
an North Am
shale well r
tures grew p
Ketuer P
L. Triassic
Lacustrine
15,920
400
200
9,500 - 16,400
13,000
Normal
3.0%
0.90%
Low
Oil
32.5
129.5
6.47
m
mi
2
)
World Shale Ga
and Geologic
and oil res
ally complex
and the hig
ianghan, S
-deposited,
parable to N
a -- has exis
o major cit
n, which is re
d the Jiang
also located
e Sichuan B
merican shale
required 11 m
planar due
Pingdiquan/Lucao
Permian
Lacustrine
7,400
820
410
6,600 - 16,400
11,500
Highly Overpres
5.0%
0.85%
Medium
Oil
40.9
108.9
5.44
Ju
(62,
s and Shale Oil
Properties.
source pote
x geologic st
gh cost and r
Subei Basin
quartz-rich,
North Americ
sting gas pip
ies. Curre
elatively less
ghan and S
close to ma
Basin are br
es and furth
months to dr
to high stre
ogou Triassi
Triassic
Lacustrin
8,600
820
410
0 5,000 - 16
10,000
ss. Highly Overp
4.0%
0.85%
Medium
Oil
43.3
134.1
6.70
unggar
100mi
2
)
Resource Asses

ential, but
tructure (fau
rudimentary
ns and Yan
black shale
can analogs.
pelines, abun
nt exploratio
s faulted an
Subei basins
ajor cities ce
rittle and dry
ermore still
rill (vs 2 wee
ess and this
Songli
(108,000
c Qingsha
c Cretace
ne Lacustr
6,900
1,000
500
,400 3,300 - 8
0 5,500
press. Mod. Over
4.0%
% 0.90%
m Mediu
Oil
66.4
229.2
11.46
ssment

rapid
ulting,
state
ngtze
es of
The
ndant
on is
d low
s are
enters
y-gas
quite
eks in
s well
iao
mi
2
)
ankou
eous
rine
0
0
0
8,200
0
rpress.
%
%
um
4
2
6
XX. China

June, 2013

p
ve
n
ex
is
ca
2. T
s
N
re
a
te
a
m
p
d
3. J
g
T
a
th
co
B
co
o
4. S
C
s
a
is
co
roduced a d
ertical well,
earby. Sino
xpressed in
ssues can b
apable of pr
The Tarim B
hales of Ca
No shale lea
emoteness a
re mostly too
ends to be lo
lso are iss
mudstone ha
roduction in
evelopment
unggar Bas
eology. Per
TOC; 20% m
ppear prosp
hermal matu
ontinuous s
Basin is the
oncomitant i
il prospects
Songliao Ba
Cretaceous s
hales are la
dvantages o
solated half-
onsiders the
disappointing
but noted ho
opec, BP, C
nterest in th
be solved, t
roviding seve
Basin has r
mbrian and
asing or dr
and extreme
o deep, reac
ow (1-2%).
sues. Sha
ave potentia
the Tarim B
.
sin, while no
rmian source
maximum) a
pective. Th
urity ranges
hale oil and
lacustrine
issues of bri
in the simila
asin, China
source rock
acustrine in
of being over
grabens at
e Songliao B
XX
g initial rate
ole instability
Chevron, Co
he region.
the Sichuan
eral Bcfd of s
relatively de
Ordovician
rilling have
e depth of the
ching prospe
Nitrogen co
llower, lowe
l. Horizonta
Basin, provid
ot the larges
e rocks are e
nd over-pre
he structura
s from oil t
d wet gas le
rather than
ttleness and
ar, smaller S
s largest o
shales in th
origin and
r-pressured
depths of 3
Basin to be
EIA/ARI W
X-7
of 560 Mcfd
y and out-of-
onocoPhillips
Assuming i
n may beco
supply within
eep shale g
age that are
been repor
e shale. Str
ective depth
ontamination
er-rank Ord
al wells alre
ding a good
st shale reso
extremely th
ssured. Tri
al geology o
to wet gas
eads were id
n marine de
d frack-abilit
antanghu Ba
il-producing
he oil to wet
unfavorably
and naturall
300 to 2,500
prospective
World Shale Ga
d. Shell tes
f-zone devia
s, Statoil, TO
its significan
ome Chinas
n 20 years.
gas potentia
e rich in car
rted, probab
ructure is rel
only on upl
n (~20%) an
dovician sha
eady accoun
foundation f
ource in Ch
hick (averag
iassic sourc
of the basin
within the
dentified. T
epositional o
ty. Shell an
asin just eas
region, the
gas window
y rich in cl
ly fractured.
0 m but fau
e for shale
s and Shale Oil
ted 2.1 milli
tion while dr
OTAL and o
nt geologic
s premier s
al in marine
rbonate and
bly because
latively simp
ifts where T
nd karstic co
ale and Tr
nt for half of
for applicatio
ina, may ha
e 1,000 ft), r
ce rocks are
n is favorab
prospectiv
The main ris
origin of the
nd Hess are
st of the Jun
e Songliao
ws. While th
ay minerals
Prospectiv
lting is inten
exploration
Resource Asses

on ft
3
/day fr
rilling horizo
others also
and operat
shale gas b
-deposited
often grapt
e of this ba
ple but the s
OC unfortun
ollapse struc
riassic lacus
f convention
on in future s
ave its best s
rich (4% ave
e leaner but
bly simple,
e area. L
k in the Jun
e shale and
evaluating s
nggar Basin.
has thick L
hese organic
s, they have
ve shales occ
nse. PetroC
and has alr
ssment
rom a
ntally
have
tional
basin,
black
tolitic.
asins
hales
nately
ctures
strine
nal oil
shale
shale
erage
t also
while
Large,
nggar
d the
shale
Lower
c-rich
e the
cur in
China
ready
XX. China

June, 2013

n
co
d
re
re
5. O
co
T
s
Q
co
b
lo
co
INTROD
C
of deline
legal, tec
petition f
from con
March 2
commerc
support s
H
industry
challenge
America.
faults -- s
have slo
resource
oted comm
onducted a
rilled and h
eservoir. Th
eservoirs in t
Other Basin
ould not be
Turpan-Hami
hales that a
Qaidam Basi
ontaining Up
ut are very
ow TOC and
oaly and duc
DUCTION
China has ab
ation, evalua
chnological,
rom the Min
ventional re
012 the Tw
cial develop
shale investm
However, the
conditions a
es seem cer
. In particu
some seism
owed China
e. CBM outp
mercial shale
study of sh
hydraulically
heir 1,200-m
the Songliao
ns. Several
e quantified
Basin, eas
are lacustrine
in, southeas
pper Triassic
deep. The
d high clay c
ctile. No sha
bundant sha
ation, and te
and comme
istry of Land
esources, alt
welfth Five-Y
ment of Ch
ment are un
e prevailing
are consider
rtain to com
ular, most C
ically active
s production
put is still und
XX
e oil produ
ale/tight oil
y fractured d
m lateral, 11-
o Basin.
l other sedi
due to low
st of the lar
e in origin, o
st of the Ta
c mudstone
Ordos Basi
content (80%
ale drilling h
le gas and s
esting. Chin
ercial fronts.
d and Resou
hough the o
Year Plan fo
inas shale
der conside
industry vie
rably less fav
plicate and
Chinese sha
-- which is n
n of coalbed
der 0.5 Bcfd
EIA/ARI W
X-8
uction here.
potential at
deep horizo
-stage frac t
mentary ba
geologic q
rger Jungga
oil- to wet ga
arim, compri
source rock
in has simp
%), while Car
as been rep
shale oil res
nas governm
. In Decem
urces (MLR
ownership of
or Shale Ga
resources,
ration.
ew, which i
vorable in C
slow comme
ale basins a
not conduciv
d methane,
following 20
World Shale Ga
Hess an
giant Daqin
ontal wells
technology c
asins in Chin
quality or ins
ar, has equi
as-prone, an
ses isolated
ks with high
le structure
rboniferous
ported in thes
source poten
ment is prior
mber 2011 th
) to separate
f shale oil re
as Developm
while fiscal
is shared b
China than in
ercial develo
are tectonica
ve to shale d
a distantly
0 years of co
s and Shale Oil
nd PetroCh
ng oil field.
into a tight
could be ap
na have sh
sufficient da
ivalent Perm
nd appear p
d fault-boun
TOC; these
but its Tria
and Permia
se less pros
ntial that is a
ritizing shale
he State Co
e the owner
esources rem
ment envisio
incentives
y ARI, is th
n North Ame
opment com
ally complex
developmen
related unc
ommercial d
Resource Asses

hina have j
Jilin Oilfield
t sandstone
pplied to sha
ale potentia
ata control.
mian organic
prospective.
ded depres
appear oil p
ssic shales
n mudstone
spective area
at the early s
e developme
uncil approv
ship of shale
mains unclea
oned large-
and subsidi
hat geologic
erica. Nume
mpared with N
x with nume
nt. Similar is
conventiona
development
ssment
ointly
d has
e gas
ale oil
al but
The
c-rich
The
sions
prone
have
es are
as.
stage
ent on
ved a
e gas
ar. In
scale
es to
c and
erous
North
erous
ssues
al gas
t.
XX. China

June, 2013

F
for large-
a small n
low but a
years in
the serv
horizonta
product t
In
best are
complexi
developm
commerc
shale gas
A
common
evaluatio
ARI has
approxim
our China
F
Figure XX
S
T
A
gas/oil po

urthermore,
-scale horizo
number of h
at least mea
the future.
vice sectors
al shale we
to market.
ndustry is ca
ea, PetroCh
ity, with ext
ment.
1
And
cialize its sh
s output targ
Another issu
ly is publicl
on -- is cons
drawn on
mately 400 te
a maps prov
our main on
X-1. These
South China
The Tarim, Ju
Additional ba
otential (e.g.
Chinas ser
ontal drilling
horizontal sh
aningful prod
Considerab
s capacity
ells, and ins
autious rega
hina engine
tensive fold
d a BP offic
ale resource
get of 7.7 Bc
ue is data a
y available
sidered by C
its extensiv
echnical pap
vide an indic
nshore regio
include:
Shale Corrid
unggar, and
asins exist b
., Ordos, Qa

XX
rvice sector
combined w
hale gas and
duction rates
ble work is n
to effective
stall the ext
rding China
ers observe
ding and fa
cial recently
es in a large
cfd by 2020 a
availability.
in other co
China to be
ve proprietar
pers publish
cation of geo
ons assesse
dor (Sichuan
Songliao ba
but may lack
aidam, Turpa
EIA/ARI W
X-9
is just begin
with massive
d oil wells ha
s. Significan
needed to de
ely and eco
tensive surf
s likely pace
ed: the Si
ulting, appe
y noted: It w
e way.
2
The
appears am
Much of t
ountries an
state secret
ry China sh
ed in Chine
ologic contro
ed by this s
n, Jianghan,
asins in nort
k data contr
an-Hami).
World Shale Ga
nning to acq
e multi-stage
ave been te
nt commerc
efine the ge
onomically
face infrastr
e of shale g
ichuan Bas
ears to be
will be a lo
e National E
bitious in thi
the basic g
nd essentia
ts. To over
hale geology
ese language
ol (or lack the
study have
Subei basin
hern China.
rol or do not
s and Shale Oil
uire the nec
e hydraulic s
ested thus fa
ial productio
eologic swee
drill and st
ructure need
as developm
sins conside
a significan
ng time bef
Energy Admi
is context.
geologic and
al for resour
rcome these
y data base
e. Data loc
ereof).
shale gas a
ns and Yang
t appear to
Resource Asses

cessary capa
stimulation.
ar, with gene
on appears s
et spots, dev
timulate mo
ded to tran
ment. Even
erable struc
nt risk for s
fore China c
nistrations m
d well data
rce and pros
e data limitat
e, compiled
cations plotte
and oil pote
gtze Platform
have large s
ssment
ability
Only
erally
some
velop
odern
nsport
in its
ctural
shale
could
mean
a that
spect
tions,
from
ed on
ential,
m).
shale
XX. China

June, 2013

1. S
Y
1.1 In
O
area of s
and adjo
provinces
broad re
Chinas m
region ap
Barnett),
high ther
T
and inclu
Cambria
XX-2 illu
potential
P
sequence
carbon- a
dry-gas t
primarily
probably
informati
Silurian,
adjoining

SOUTH CHI
YANGTZE P
ntroduction
Organic-rich
south-centra
oining Yang
s, as well as
egion, Paleo
most prospe
ppears favor
significant e
rmal maturity
The overall s
udes multiple
n, Ordovicia
ustrates the
ly prospectiv
Paleozoic sh
e and the clo
and quartz-r
to over-matu
within fresh
more duct
on by Petro
and Upper
g regions offe
INA SHALE
PLATFORM
and Geolo
marine shal
al and easte
tze Platform
s the smalle
ozoic shales
ective shale
rable and no
exploration c
y and -- mos
edimentary
e organic-ric
an, Silurian,
stratigraph
ve L. Cambr
hales in the
osest in cha
rich, of mar
ure windows
hwater lacust
tile, and thu
oChina, She
r Permian m
er some of C
XX
E CORRID
M
gic Setting
les, mostly g
ern China. T
m in Sichua
r Jianghan a
s in the Sic
gas potentia
ot dissimilar
challenges s
st concerning
sequence in
ch shales of
Devonian,
hy of the S
rian, L. Siluri
South Chin
aracter to pro
ine depositi
s. In contra
trine (rather
us less pro
ell, and oth
marine shal
Chinas best
EIA/ARI W
X-10
OR : SICH
gas-prone to
This Shale
an, Yunnan,
and Subei ba
chuan Basin
al. Howeve
with certain
still exist. Th
g intense f
n the South
marine and
Permian, Tr
Sichuan Bas
an, and U. P
na Shale C
oductive Nor
onal origin,
ast, the Trias
than marine
ospective.
hers -- indic
es in the S
promise for
World Shale Ga
UAN, JIAN
o thermally
Corridor co
, Guizhou,
asins in sou
n and Yang
er, while the
North Amer
hese include
faulting and
China Shale
non-marine
riassic, and
sin and Ya
Permian sou
Corridor -- th
rth American
and mostly
ssic and Eo
e) environme
Our work -
cates that th
Sichuan Ba
r shale gas d
s and Shale Oil
NGHAN, SU
over-mature
omprises th
Hubei, and
utheastern C
gtze Platform
essential ro
rican shales
e locally exce
structural co
e Corridor is
e origin with
Eocene for
ngtze Platfo
urce rocks.
he most pro
n shales -- ty
thermally m
ocene shales
ents and ten
-- consisten
he Lower C
asin, Yangtz
developmen
Resource Asses

UBEI BASI
e, underlie a
e Sichuan B
western H
China. Within
m offer som
ock quality in
s (e.g., Marc
essive depth
omplexity.
s 6 to 12 km
in Pre-Camb
rmations. F
orm, highlig
ospective o
ypically are
mature withi
s were depo
nd to be clay
t with publ
Cambrian, L
ze Platform,
t.
ssment
NS,
a vast
Basin
Hunan
n this
me of
n this
ellus,
h and
thick
brian,
Figure
ghting
f this
thick,
n the
osited
y-rich,
ished
Lower
, and
XX. China

June, 2013

T
structura
discontin
of natura
reservoir
structura
limited vo
Figure XX
Potentia
Source:
The Sichuan
lly more c
nuous area to
al gas from
rs occur mai
l-stratigraph
olume of oil
ERA
Q
C
CA
O
So
P
A
L
E
O
Z
O
I
C
M
E
S
O
Z
O
I
C
X-2. Stratigrap
ally Prospectiv
ARI, 2013.
n Basin cov
complex an
o the south a
convention
inly in the T
hic traps (ma
also is prod
PERIOD
QUATERNARY
CRETACEOUS
RBONIFEROUS
ORDOVICIAN
PRE-SINIAN
ource Rock
SINIAN
TERTIARY
JURASSIC
SILURIAN
PERMIAN
CAMBRIAN
TRIASSIC
XX
phy of the Sich
ve L. Cambrian
vers a large
nd sparsely
and east. T
nal and low-
Triassic Xujia
ainly faulted
duced from o
EPOCH
Upper
Lower
Upper
Middle-Lowe
Upper
Middle
S Mississippia
Upper
Lower
Upper
Middle
Lower
Lower
k
SICH
Upper
Lower
Middle
Upper
Lower
EIA/ARI W
X-11
huan Basin an
n, L. Silurian,

e 74,500-mi
2
drilled Ya
The Sichuan
-permeability
ahe and Fei
anticlines) t
overlying Ju
FORMATIO
Penglaizhe
Suining
Shaximiao
er Ziliujing
Xuj i ahe
Leikoupo
Jialingjian
Fei xi angu
Changxi
Longta
Maokou
Qixia-Liangs
an Huanglon
Longma
Xixiangch
Yuxians
Qiongzh
Dengying
Doushant
Conventi o
HUAN BASIN
World Shale Ga
nd Yangtze Pla
and U. Permia
2
area in so
angtze Plat
Basin curre
ty sandstone
ixianguan fo
that are dist
rassic sands
ON AGE (Ma
0 - 3
3 - 25
25 - 80
80 - 140
en
o
g
e 195 - 205
o
ng
uan
ing
an
u
shan
ng 270 - 320
axi
hi
si
usi
g
uo
850
onal Reservoi r
N
570 - 850
140 - 195
205 - 230
230 - 270
320 - 570
s and Shale Oil
atform, Highli
an Source Ro
outh-central
tform cover
ently produce
es and carb
ormations, s
tributed acro
stones. The
a) THICKNESS
0 - 380
0 - 300
0 - 800
0 - 2000
650 - 1400
340 - 500
600 - 2800
200 - 900
5 250 - 300
0 0 - 500
0 - 600
0 - 400
0 - 2500
200 - 110
0 - 1500
900 - 170
200 - 500
200 - 500
0
5
0
0
0
Resource Asses

ghting
ocks.

China, while
rs a larger
es about 1.5
bonates. T
tored in com
oss the basi
e convention
S (m)
0
0
0
0
00
0
00
0
00
0
0
ssment
e the
r but
5 Bcfd
These
mplex
in. A
nal oil
XX. China

June, 2013

and gas
the main
have bee
(up to 18
of these
A
Chinese
ARI extra
Chinese
well/outc
control o
provide s
mapped
Figure XX

Source: A
fields are un
n target of c
en discovere
8%) occur in
contaminant
A number of
and English
acted a sub
and 20 E
crop location
f shale thick
selected ex
and charact
X-3. Structural
Shale Data
ARI, 2013.
nderlain and
current shale
ed more rece
sour gas fie
ts are much
technical jou
h, with the v
bstantial dat
English lang
ns, and 1,46
kness, depth
amples of s
terized the th
l Elements of
Locations and
XX
d were sourc
e gas explo
ently. Extre
elds such as
lower in the
urnal articles
volume and
ta base on
guage techn
62 total sam
h, structural g
specific geo
hree distinct
Sichuan Basi
d High-Graded
EIA/ARI W
X-12
ced by deep
ration. Pro
emely high H
s Puguang in
e south but c
s have been
quality of p
Sichuan Ba
nical article
mples, Figur
geology, the
ologic data t
Paleozoic s
n and Adjoini
d Areas for Ca
World Shale Ga
er organic-r
terozoic to
H
2
S concent
n the northe
can still be lo
n published o
ublic reports
asin source
es, comprisi
re XX-3. T
ermal maturi
to illustrate
shale leads d
ng Yangtze Pl
ambrian, Silur
s and Shale Oil
ich Paleozo
L. Paleozoi
rations (up t
east part of t
ocally signific
on the Sichu
s increasing
rock shale
ng 23 cros
This data se
ity, and orga
our conclu
discussed be
latformShow
rian, Permian
Resource Asses

ic marine sh
c gas fields
to 50%) and
he basin. L
cant.
3

uan Basin in
g in recent y
geology fro
ss-sections,
et provides
anic content
sions. We
elow.
ing ARI-Propr
Shales.
ssment
hales,
s also
d CO
2

evels
n both
years.
m 47
714
good
. We
then
rietary
XX. China

June, 2013

T
Sinian (P
Mesozoic
regional
structura
compres
T
Depressi
by relativ
region fo
Basin are
with larg
example
condition
eastern f
more str
developm
Figure XX

Source: Z
The Sichuan
Precambrian
c to Cenozo
extension d
l transitiona
sion during t
The modern
ion, Central
vely simple
or shale gas
e structurally
e offset; the
, a cross-se
ns in the C
fold belt, Fig
ucturally co
ment.
X-4. Northwes
Simple Struc
Zou et al., 201
n Basin / Ya
n) to Mesoz
oic. Three
during the Ca
al phase d
the late Yan
n-day Sichu
Uplift, and t
structure an
s developme
y more comp
ese areas ar
ction throug
Central Uplift
gure XX-4.
5

mplex, but l
st-Southeast S
cture in Centra
1.
XX
angtze Platf
oic time, tra
major tecto
aledonian a
during the
nshanian to H
uan basin
he East and
nd compara
ent. In cont
plex, charac
re not consi
gh the northe
t transitionin
The adjoin
lacks data c
Structural Cro
al Uplift Trans
EIA/ARI W
X-13
form region
ansitioning i
onic events
nd Hercynia
Indosinian
Himalayan o
comprises
d South Fold
tively few fa
rast, the Ea
cterized by n
dered prosp
ern Sichuan
ng abruptly
ing Yangtze
control and
oss-section of
itioning into H
World Shale Ga
n behaved a
into a forela
punctuated
an orogenies
to early Y
orogenies (C
four tecto
d Belts. The
aults, appea
ast and Sout
numerous clo
pective for s
Basin show
into the h
e Platform to
is quite cha
f Northern Sic
Highly Faulted
s and Shale Oil
as a passiv
and basin s
this time in
s (Ordovicia
Yanshanian
Cretaceous to
onic zones:
e Central Up
ars to be the
th Fold Belt
osely spaced
shale gas de
ws relatively
ighly faulted
o the south
allenging to
chuan Basin, S
d Fold Belt in t
Resource Asses

ve margin d
etting during
nterval, inclu
an to Permia
orogenies,
o Neogene)
the North
lift, characte
e most attra
ts of the Sic
d folds and f
evelopment.
simple struc
d and defo
and east is
assess for s
Showing Relat
the East.
ssment
during
g the
uding
an), a
and
.
4

hwest
erized
active
chuan
faults
For
ctural
ormed
even
shale
tively
XX. China

June, 2013

T
Basin me
and dept
prospect
EIA/ARI
shale lea
geology,
and acce
O
elevated
occurred
region ha
addition,
extremel
thermoch
processin
Luojiazai
northeas
T
Qiongzhu
and their
the Sichu
1,000 ft o
mostly lo
illustrates
4%.
7
T
overmatu
was ove
Longmax
Sichuan

The new geo
eets the sta
th, dry to we
ive area we
study. This
asing and dr
good acces
ess to major
Other parts o
H
2
S contam
along activ
as shale po
the conven
y high hydr
hemical sulfa
ng costs, it is
i gas field,
st Sichuan Ba
The four ma
usi, L. Siluria
r equivalents
uan Basin.
of organical
ow to mode
s TOC distr
hermal mat
ure (R
o
2.4%
r 4% but th
xi has exhib
Basin.
9

ologic data
andard explo
et gas therm
e mapped w
s emerging
rilling activit
ss with flat s
urban gas m
of the Sichua
mination. T
ve strike-slip
otential but
ntional rese
rogen sulfide
ate reduction
s a dangero
killing 233
asin (~8%).
ain organic-r
an Longmax
s, Figure XX
Most import
ly rich, black
erate at up
ribution in a
turity is high
% to 3.6%).
is paramete
bited gas sh
XX
indicate tha
oration criter
al maturity,
with new da
sweet spot
y, as it app
surface cond
markets.
an Basin are
The 2008 Si
p faults in t
was screen
ervoirs in th
e content, fr
n (TSR).
6
N
ous safety ha
villagers.
Consequen
rich shale ta
xi, the L. Per
X-2. These u
tant is the L
k, graptolitic
to 4%, con
deep conve
h and incre
Porosity me
er is difficult
hows in at
EIA/ARI W
X-14
at only the
ria for shale
and absenc
ata is consid
in the south
ears to offe
ditions, exis
e structurally
chuan earth
the northwe
ed out due
e northern
requently in
Not only does
azard as wel
Carbon dio
ntly, northea
argets in th
rmian Qixia,
units source
. Silurian Lo
c-bearing, si
nsisting ma
entional pet
eases with
easured from
t to measure
least 15 de
World Shale Ga
southweste
e developme
ce of extrem
derably sma
hwest Sichu
r Chinas be
ting pipeline
y and/or topo
hquake, cen
est portion o
to excessiv
portion of t
excess of
s H
2
S reduc
ll: in 2003 a
oxide conten
ast Sichuan w
he Sichuan
and the U.
ed many of th
ongmaxi Fm
liceous to c
inly of Type
roleum well
depth, rang
m the Wei-2
e and frequ
eep conven
s and Shale Oil
ern quadrant
ent: suitable
e structural
aller than in
uan Basin do
est combina
es, abundan
ographically
ntered in We
of the Sichu
ve structura
the Central
10% by vol
ce gas reserv
sour gas we
nt also can
was screene
Basin are t
Permian Lo
he conventio
m, which con
herty shale.
e II keroge
, ranging fro
ging from d
01 and Ning
uently under
tional wells
Resource Asses

t of the Sic
e shale thick
complexity.
n the initial
ominates Ch
ation of favo
nt water sup
complex or
enchuan Co
uan Basin.
al complexity
Uplift can
lume, cause
ves and incr
ell blew out i
n be high in
ed out as we
the L. Cam
ongtan forma
onal reservo
tains an ave
TOC conte
n. Figure
om 0.4% to
ry gas pron
g-201 shale
restimated.
8
in the sou
ssment
chuan
kness
The
2011
hinas
orable
plies,
have
ounty,
This
y. In
have
ed by
rease
in the
n the
ell.
mbrian
ations
oirs in
erage
ent is
XX-5
over
ne to
wells
The
thern
XX. China

June, 2013

T
Formatio
cutoff, th
potential
has an o
ray black
T
field in th
of 230 to
Fig
Petr
The second
on. Althoug
he Qiongzhu
. The forma
overall thickn
k shale, whic
The Qiongzh
he southern
o 400 m of to
gure XX-5. TO
roleumExplor
Sourc
shale gas
h deeper th
usi contains
ation was de
ness of 250 t
ch has about
usi black sh
Sichuan Bas
otal formatio
XX
OC Distributio
ration Well, Si
e: Liu et al., 2
target in
han the Long
high-quality
eposited und
to 600 m. O
t 3.0% TOC
hale is consid
sin, where th
on thickness
EIA/ARI W
X-15
n of L. Siluria
chuan Basin,

2011
the Sichua
gmaxi and m
y source roc
der shallow
Of particular
(sapropelic)
dered the pr
he organical
. Mineralog
World Shale Ga
an Longmaxi F
Showing 0.4%
an Basin is
mostly scree
cks that pro
marine con
note is the
) that is dry-
rincipal sour
lly rich hot s
y appears fa
s and Shale Oil
Fmin a Deep
%to Over 4%.
the Camb
ened out by
ovide furthe
ntinental she
60 to 300 m
-gas-prone (a
rce rock for
hale is abou
avorably brit
Resource Asses

brian Qiong
y the 5-km d
r shale reso
elf conditions
m of high-gam
about 3.0%
the Weiyuan
ut 120 m thic
ttle, being hi
ssment
zhusi
depth
ource
s and
mma-
R
o
).
n gas
ck out
igh in
XX. China

June, 2013

quartz an
well flow
at a dep
Qiongzhu
T
only scan
has bee
deposits
to high g
interest
developm
O
such as t
example
Cambria
here tota
Liuchapo
outcrop p
the units
T
in the ce
Wuhan.
Cretaceo
Asia. So
shale so
thickness
km) and
Basin, a
Cambria
nd other brit
wed nearly 1
pth of 2,800
usi at Weiyu
The Yangtze
nt well contr
n tectonical
as they are
grade with c
in the regio
ment areas.
1
Our analysis
the Cambria
, Figure XX
n Xiaoyanxi
als nearly 10
o Formation
photo of L.
s strong bedd
The Jiangha
entral Yang
Jianghan
ous to Tertia
omewhat ov
ource rocks
s, depth, TO
significantly
long with A
n, Silurian, a
tle minerals
million ft
3
/d
m. PetroC
uan field (see
e Platform a
rol, very little
ly deformed
e in the Sich
current data
on, while res
1

of the Yang
an correlatio
X-7 shows T
Formation
0 m thick wi
consists ma
Cambrian b
ding and brit
an Basin is a
tze Platform
is a rift ba
ary time, indu
verlooked fo
-- similar to
OC, and R
o
,
y faulted. F
ARI-proprieta
and Permian
XX
(65%) and
ay from an
China recent
e Activity be
area is struc
e of which h
d and partly
uan Basin b
a availability
searchers h
gtze Platform
n shown in
TOC vs dep
in the Yanw
ith exception
ainly of che
black chert n
ttle characte
a convention
m of Jiangx
asin that de
uced by tran
or shale exp
o those in S
although ev
Figure XX-9
ary shale ga
n shale leads
EIA/ARI W
X-16
fairly low in
unstimulate
tly tested th
low).
10

cturally more
has been pu
y eroded.
but rather iso
. Neverthe
have begun
m depends h
Figure XX-6
pth distributio
wutan-Lijiatuo
nally rich ave
rt with avera
north of Gui
er.
13

nal petroleu
i and Hube
eveloped on
nspressional
ploration, the
Sichuan and
ven in high-g
illustrates t
as data loc
s.
World Shale Ga
clay (30%).
ed organic-ric
he first horiz
e complex t
ublished. Th
Indeed, the
olated remn
less, Chevr
to map out
heavily on o
6; subsurface
on for a 10
o area, Yang
erage 7.5%
age 2.3% T
yang city, G
m producing
ei provinces
n the Centr
tectonics re
e Jianghan
d the Yangt
graded area
the structura
ations and
s and Shale Oil
In 1966 a
ch Qiongzhu
zontal well c
han the Sic
he Paleozoi
e shales are
ant basins w
ron and BP
t potentially
outcrop and
e control rem
00-m thick o
gtze Platform
TOC. The u
TOC. Figure
Guizhou Pro
g region cov
, close to t
ral Yangtze
elated to Ind
Basin has
tze Platform
as they are m
al elements
the high-gr
Resource Asses

conventiona
usi shale int
completed i
huan Basin,
c sequence
e not contin
which are di
have expre
y favorable s
road cut stu
mains weak
outcrop of th
m.
12
Black s
underlying S
e XX-8 show
ovince, displa
vering 14,50
the major c
Platform d
dias collision
Lower Pale
m -- with su
mostly deep
of the Jian
raded locatio
ssment
al gas
terval
n the
, with
here
nuous
fficult
essed
shale
udies,
. For
he L.
shale
Sinian
ws an
aying
0-mi
2

ity of
during
n with
ozoic
itable
p (4-5
nghan
on of
XX. China

June, 2013

Figu
Source: G

Figure X
Platform
ure XX-6. Out
Guo et al., 200
XX-7. TOC vs
. Black Shale
tcrop Litholog
06.
Depth Distrib
e Totals Nearly
XX
gy of the Camb
ution at Outcr
y 100 mThick
Fmis Mainly
Source: Guo
EIA/ARI W
X-17
brian Sequenc
rop of the L. C
with Average
Chert with 2.3
et al., 2007.
World Shale Ga
ce Across the
Cambrian Xiao
e 7.5%TOC. T
3%TOC.
s and Shale Oil
e Western Yan
oyanxi FmBla
The Underlying
Resource Asses

ngtze Platform
ack Shale, Yan
g Sinian Liuch
ssment
m
ngtze
hapo
XX. China

June, 2013

Figure

Source: A
Figure X
Guiz
S

XX-9. Struct
Locations a
ARI, 2013.
XX-8. Outcrop
zhou Province
Source: Yang
tural Elements
and Relative S
XX
p Photo of L. C
e. Note Beddi
g et al., 2011.
s Map of the J
ize of the Pros
EIA/ARI W
X-18
Cambrian Blac
ing and Brittle

ianghan Basi
spective Area
World Shale Ga
ck Chert North
e Character. P
n Showing AR
as for Silurian
s and Shale Oil
h of Guiyang C
Pen for Scale.

RI-Proprietary
and Permian
Resource Asses

City,

y Shale Gas Da
Shales.
ssment
ata
XX. China

June, 2013

T
so than t
depressio
subsiden
which or
deformat
and final
that cont
T
sediment
rocks pr
formation
self-sour
cap rocks
T
Cambria
analysis
120 m (
ranging f
(R
o
1.5%
3.5% to
0.4%), lik
The Jiangha
the Yangtze
ons. Quat
nce. Its struc
iginally form
tion, then N
lly Late Neo
inue to be a
The Jiangha
ts overlying
esent in Si
ns. The Eo
rced by inter
s of interbed
The most pr
n and Silur
noted the a
390 ft).
16
M
from 5.35 to
% to 2.5%) i
5%).
18
In c
kely clay-rich
n Basin is s
Platform. J
ternary alluv
ctural history
med the grab
Neogene ext
ogene comp
ctive today.
1
n Basin con
U. Paleozo
nian, L. Ca
ocene Qianj
rbedded lac
dded gypsum
rospective s
ian units, a
average thic
Measured T
o 7.78%.
17
T
n most of th
contrast, Eoc
h, and not co
XX
tructurally m
Jianghan com
vium covers
y records La
ben structure
tension (NE-
pression (NE
14

ntains up to
oic marine
ambrian, U.
iang Forma
ustrine shal
m-rich evapo
source rock
along with li
kness of org
TOC from th
Thermal mat
he basin, be
cene lacustr
onsidered pr
EIA/ARI W
X-19
more comple
mprises a nu
s most of t
ate Cretaceo
es, Late Pale
-SW and N
E-SW) which
o 10 km of
source rock
Ordovician
tion is the
es and trap
orites.
15

ks for shale
quids-rich P
ganically ric
he L. Camb
turity data a
ecoming the
rine shales i
rospective fo
World Shale Ga
ex than the S
umber of sm
the basin s
ous to Paleo
eogence co
W-SE) whic
h activated
Cretaceous
ks, Figure X
, L. Silurian
main conve
ped within f
e gas deve
Permian sha
ch L. Silurian
brian Shuijin
are scarce b
ermally over
in the Jiang
or shale.
s and Shale Oil
Sichuan Bas
mall fault-bou
surface, ref
gene extens
mpression (
ch rejuvenat
right-lateral
s to Quater
XX-10, with
n, Jurassic,
entional sand
faulted antic
elopment ar
ale potentia
n Longmaxi
ntuo Format
ut indicate g
rmature in th
han Basin a
Resource Asses

sin, although
unded uplifts
flecting Neo
sion (ENE-W
(EW) and gr
ted the grab
strike-slip f
rnary non-m
potential so
and Paleo
dstone rese
clines overla
re dry-gas-p
l. Recent s
Formation
tion is favor
gas-prone s
he northwes
are immatur
ssment
h less
s and
ogene
WSW)
raben
bens,
faults
marine
ource
ogene
ervoir,
ain by
prone
shale
to be
rable,
hales
st (R
o

re (R
o

XX. China

June, 2013

Fig

C
western d
in the ea
prospect
faulting h
cross-sec
about 50
gure XX-10. S
L. Camb
Cambrian an
depressions
ast and nor
ive depth (3
here may ne
ction of the
00-m thick (u
ERA
C
E
N
O
Z
O
I
C
P
A
L
E
O
Z
O
I
C
M
E
S
O
Z
O
I
C
Stratigraphy o
rian, U. Ordov
Sourc
d Silurian sh
s of the Jiang
rtheast. Fo
-4 km) at the
egatively im
Mianyang D
up to 1 km t
A PERIO
QUATER
NEOGE
DEVON
Source
SINIA
PERM
CAMBR
TRIAS
CRETAC
JURAS
PALEOG
CARBONIF
ORDOV
SILUR
XX
of the Jianghan
vician, L. Silur
e: ARI, 2013.
hales occur
ghan Basin,
or example,
e Yuekou, L
pact shale d
Depression in
thick elsewh
OD
RNARY P
ENE
NIAN
Rock
AN
MIAN
RIAN
SIC
CEOUS
SSIC
JIANG
GENE
FEROUS
ICIAN
RIAN
P
EIA/ARI W
X-20
n Basin, Highl
rian, Jurassic,

.
at non-pros
but are sha
a regional
Longsaihu, Y
developmen
n the eastern
here), faulte
EPOCH
Pleistocene
Miocene
Oligocene
Lower
Lower
Middle
Lower
Middle
Middle
Upper
Middle
Lower
Upper
Lower
Upper
GHAN BASI
Upper
Lower
Upper
Middle
Lower
Eocene
Paleocene
Upper
Lower
Upper
Lower
World Shale Ga
lighting Poten
, and Paleoge
spective dep
allower and m
cross-secti
Yajiao-Xingo
nt, Figure XX
n Jianghan B
d, and 4 to
FORMA
Pingy
Guang
Jinghe
Qianj
Jins
Xingo
Sha
Paom
Hongh
Luojin
Xiaxi
Naijia
Tongz
Wanglo
Jiuig
Bad
Jialing
Da
Dalo
Wiko
Mao
Qix
Chuan
Huan
Sha
Luore
Long
Wuf
Lingx
Bao
Mia
Guni
Daw
Honghu
Fenx
Nanjin
Shanyo
Qinjia
Shilon
Tianh
Shi
Shuij
Deng
Duosh
Nan
Conventi ona
N
s and Shale Oil
ntially Prospec
ne Source Ro
ths of 5 to o
may be pros
ion shows S
ou uplifts, alt
X-11.
19
Sim
Basin shows
5 km deep,
ATION
yuan
ghusai
ezhen
jiang
sha
ouzhui
ashi
agang
huntao
ngtan
miao
ashan
huyian
ongtan
gang
dong
gjiang
aye
ong
aping
okou
xia
nshan
glong
mao
eping
gmaxi
feng
xiang
ota
opo
iutan
wan
uayuan
xiang
nguan
oudong
amiao
ngdong
heban
ipai
intuo
gyin
hantuo
ntuo
al Reservoi r
Resource Asses

ctive Sinian,
ocks.

over 10 km i
spective on u
Silurian sha
though signif
milarly, a det
s L. Silurian
, Figure XX-
ssment
in the
uplifts
ale at
ficant
tailed
to be
-12.
20

XX. China

June, 2013

The unde
in the so
source-ro
below).
Figure XX
Impa

Source: Z

Figure XX
S

Source: C
erlying Cam
outheastern
ock shale le
X-11. Regiona
act Shale Dev
Pros
Zhang et al., 2
X-12. Detailed
Silurian Sectio
Chen et al., 20
brian sectio
Jianghan B
eads in the
al Cross Secti
velopment. Ca
spective in the
2010.
d Cross-sectio
on Here (S)
005.
XX
n is about 1
Basin, Figur
Jianghan B
ion of the Cen
ambrian and S
e Troughs, but
on fromMianya
is about 500-m
EIA/ARI W
X-21
km thick, fa
re XX-13.
21
Basin (L. Ca

ntral Jianghan
Silurian Shales
t may be Suita

ang Depressio
mThick, 4 to 5

World Shale Ga
aulted, and
We identif
ambrian, L.
Basin Shows
s are too Deep
ably Shallowo
on in the East
5 kmDeep, an
s and Shale Oil
uplifted to a
fied three m
Silurian, an
s Significant F
p (>5 km) to b
on the Uplifts.
tern Jianghan
nd Significantl
Resource Asses

about 2-km d
marine Pale
nd Permian
Faulting Which
be Considered
.
Basin. The L
ly Faulted.
ssment
depth
ozoic
; see
h May

Lower
XX. China

June, 2013

Source: L

S
documen
covers a
north of
Sinopec
enticingly
structura
surface.
Shangha
structure
S
potential
age, Fig
Taizhou
rocks the
Figure
Li et al., 2007.
Subei Basin
nted basin,
14,000-mi
2
Shanghai.
s structurall
y close to p
lly complex
Figure XX-
ai, shows m
e is likely to b
Sedimentary
ly prospectiv
ure XX-16.
2
Group are t
emselves.
XX-13. Localiz
The Cambria

n. With onl
mappable g
portion of t
Small conve
y complex
prosperous
x and quite
15, a struct
major faults
be even mor
rocks in th
ve marine s
23
Conglom
the conventi
XX
zed Cross Sec
an Section Her
y 13 Chine
geologic dat
the lower Ya
entional oil f
Jiangsu fiel
East China
deep, with
tural cross-s
and the de
re complex t
he Subei Ba
shale source
merates and
onal petrole
EIA/ARI W
X-22
ctions in the S
re is Faulted a

se and 7 E
ta are relati
angtze Platf
fields have b
d near the
markets, in
Paleozoic
section thro
epth to Pale
han indicate
asin range f
e rocks of L.
mudstones
eum targets
World Shale Ga
Southeastern
and about 1 km
English artic
vely sparse
form near th
been discov
center of th
ncluding Sh
shales mos
ough the ba
eozoic sour
ed here.
from L. Cam
. Cambrian,
of the U. C
in the basin
s and Shale Oil
Jianghan Bas
mThick.
cles availabl
e, Figure XX
he coast in J
vered, the la
he basin. A
hanghai, the
stly 3.5 to
asin and adj
rce rock sha
mbrian to E
L. Silurian,
Cretaceous
n, as well as
Resource Asses

sin.
e for this p
X-14. The
Jiangsu Pro
argest of wh
Although situ
e Subei Bas
5 km below
joining regio
ales.
22
Det
Eocene, inclu
and U. Per
to L. Paleo
s possible so
ssment
poorly
basin
vince
ich is
uated
sin is
w the
on to
tailed
uding
rmian
ocene
ource
XX. China

June, 2013

Figur

Source: A

F
Source: M
e XX-14. Stru
Locations a
ARI, 2013.
Figure XX-15.
Sh
Moore et al., 1
uctural Eleme
and Prospectiv
Structural C
howing Major
986.
XX
nts Map of the
ve Areas for L
ross-section o
Faults and De
EIA/ARI W
X-23
e Subei Basin
L. Cambrian, L
of Subei Basin
epth to Paleoz

World Shale Ga
Showing ARI
L. Silurian, and
n and Adjoinin
zoic Source Ro
s and Shale Oil
I-proprietary S
d U. Permian
ng Region to
ock Shales.
Resource Asses

Shale Gas Dat
Shales.
Shanghai,
ssment
ta
XX. China

June, 2013

T
Its lower
rock thic
(1.1 to 3.
4 to 5 km
Basin an

Figure XX
Potentia
Mo
The L. Camb
portion (2 t
kness is 40
.1% TOC, av
m. Unfortun
d 7 to > 9 km
ERA PER
DEVO
Sourc
CAM
SILU
ORDO
P
A
L
E
O
Z
O
I
C
PER
CARBON
X-16. Stratigra
ally Prospectiv
odified from Q
brian Mufush
to 363 m thi
to 250 m th
verage 2.1%
nately, the C
m deep to th

RIOD EPOC
ONIAN
Upp
Low
Upper/M
Low
ce Rock
Low
BRIAN
URIAN
OVICIAN
Upp
Upp
Low
RMIAN
Upp
Low
NIFEROUS
XX
aphy of the Pa
ve L. Cambrian
Qi & Zhu, 200
han Formati
ick) contains
hick, averagi
%).
24
This un
Cambrian is
he south and
CH MEMBER
P
3
c
P
3
l
P
2
g
P
2
q
P
1
c
C
2
h
C
2
l
C
1
g
D
3
w
er S
3
m/S
2
f
wer S
1
g
O
3
w
Middle 1
l, 2
p
wer
1
mu
wer
er
er
wer
per
wer
EIA/ARI W
X-24
aleozoic Strata
n, L. Silurian,

02.
on is 91 to
s dark grey
ng 120 m th
nit appears t
s deeper tha
d west of Sha
Hunghuayuan Fm
Lunshan Fm
Loushanguan,
Paotaishan Fms
Mufushan Fm
Wutong Fm
Maoshan/Fentou F
Gaojiabian Fm
Wufeng Fm
Tangtou Fm
Tangshan Fm
Dawan Fm
Huanglung Fm
Laohudong Fm
Hezhou Fm
Gaolishan Fm
Kinling Fm
Laokan Fm
Changxing/Talung F
Longtan Fm
Kuhfeng Fm
Chihsia Fm
Chuanshan Fm
FORMATION
World Shale Ga
a in the Subei
and U. Permia
758 m thick
to black mu
hick, with low
to be gas-pr
an 5 km ac
anghai.
LITHO
Limestone
Sandstones, m
Siltstones, s
Dark grey
Ligh
Light gre
Light-
Limesto
Mudstone,
Dark grey lim
Grey-green m
argi
Grey-white
conglo
Quartz sandst
S
Siliceou
Argillaceo
Argillaceous
Siliceou
G
Grey do
Grey and wh
dark grey
Black carbon
grey thin-b
m
m
Fm
m
Fm
s and Shale Oil
Basin, Highlig
an Source Ro
k (gross) in
udstones an
w-moderate
rone at pros
ross nearly
LOGY / COMMENT
es/siliceous shale, c
limestone
mudstones, limeston
siliceous shale, and
y limestones with ch
ht grey limestone.
ey limestone/ dolom
-dark grey dolomite.
ones, marls, dolomit
siltstone, fine sands
mestones with sand
mudstones and sand
llaceous dolomite.
e quartzose sandsto
omeratic sandstones
tone, siltite mudston
Shale, siltstone.
us shales, mudstone
ous limestone and s
s limestone and mud
s limestone and sha
Grey limestone.
olomite and limeston
hite thick-bedded do
thick-bedded limest
naceous shale (uppe
bedded limestone (lo
Resource Asses

ghting
ocks.

the Subei B
d shale. So
organic rich
pective dept
the entire S
TS
chert,
nes, coal.
d chert.
hert.
ite.
.
es.
stone.
dstone.
dstones,
ones,
s.
ne, shale.
es.
hale.
dstone.
ale.
ne.
olomite,
tone.
er); dark
ower).
ssment
Basin.
ource
hness
ths of
Subei
XX. China

June, 2013

T
and mud
prospect
grey and
thick (gr
sandston
TOC is a
T
and mud
Finally, b
interbeds
fields; the
1.2 R
H
precedin
prospect
S
distributio
contains
TOC con
Qiongzhu
where it
T
central a
TOC ran
averages
to 3.0% (
S
the close
the Marc
The U. Ordov
dstone with
ive depths o
d black silice
ross) and c
nes. The co
about 1.3%,
The 1-km thi
dstone of un
black mudst
s that forme
ese mudston
Reservoir Pr
Having discu
g section,
ive areas in
Sichuan Bas
on is locate
about 1,000
ntent is app
usi Fm ave
is in the dry
The Upper Pe
nd southeas
ging from 2
s 9,700 ft. T
(average 2.5
Shale targets
est North Am
cellus Shale
vician Wufen
low organic
of 3.5 to 5 k
eous shales
contains dar
ombined sou
lower than in
ick U. Perm
ncertain TOC
tones of the
ed in a deep
nes are imm
roperties (P
ussed the r
we now de
each basin.
sin. The 10
d in the sou
0 ft of organ
proximately 3
rages 500 f
gas thermal
ermian Long
st Sichuan B
-6% (averag
These shales
5%).
s in the Sich
merican anal
play.
XX
ng and L. Si
c richness (
km. The W
& mudston
rk grey sha
urce rock thi
n the Cambr
mian Changx
C that are g
e U. Paleoc
p lake settin
mature to liqu
Prospective
regional geo
escribe the

,070-mi
2
hig
uthwestern S
nically rich,
3% and dry
ft thick, with
l maturity wi
gtan and Low
Basin, conta
ge 4%). De
s are dry-ga
huan Basin
log may be t
EIA/ARI W
X-25
ilurian Gaoji
0.6 to 1.3%
Wufeng Fm is
e. The L. S
ale with an
ckness rang
rian source r
xing/Talung
gas-prone at
ene to M. E
ng and sourc
uids-prone (R
Area)
ology of th
reservoir p
gh-graded ar
Sichuan bas
black, grapt
y gas prone
h 3.0% TOC
ndow (3.2%
wer Permian
in an averag
pth to shale
as prone, wit
are quite dif
the relatively
World Shale Ga
abian forma
% TOC). Th
s 4 to 214 m
Silurian Gao
upper laye
ges from 75
rocks.
formations
t relatively s
Eocene Fun
ced the bas
Ro 0.4% to
e South C
properties s
rea defined
sin. Here t
tolitic-bearin
e (R
o
2.9%).
C within its
% R
o
).
n Qixia forma
ge total 314
e within the
th vitrinite re
fferent from
y faulted ce
s and Shale Oil
ations contai
hese units a
m thick (gro
ojiabian Fm
er of interb
to 450 m, a
also contain
shallow dept
ning Group
sins conven
o 0.9%).
25

hina Shale
specific to
by prospect
he L. Siluria
ng, siliceous
. In additio
6,500-mi
2
p
ations, best
ft of organi
prospective
eflectance ra
North Ame
ntral Pennsy
Resource Asses

in siliceous s
are gas-pron
ss) and con
is 25 to 1,7
bedded silty
averaging 25
n siliceous s
ths (1 2.5
contain oil s
ntional sands
Corridor in
the high-gr
tive depth an
an Longmax
s to cherty s
on, the Cam
prospective
developed i
c-rich shale
area (1 to 5
anging from
erican shales
ylvania porti
ssment
shale
ne at
ntains
20 m
y fine
50 m.
shale
km).
shale
stone
n the
raded
nd R
o

xi Fm
shale.
mbrian
area,
in the
, with
5 km)
2.0%
s, but
ion of
XX. China

June, 2013

Y
structura
area sug
L. Camb
the Sich
prospect
A
American
Quebec
J
has the
(average
organic r
depth (av
has lowe
depth (av
that of th
T
analog fo
S
Formatio
depths o
formation
1.1% TO
Changxin
to be 2%
T
analog fo

Yangtze Pla
l complexity
ggests there
rian and L. S
huan Basin.
ive Sichuan
Again, the sh
n shale ana
is the closes
ianghan Ba
best organ
e 13,000 ft).
richness (TO
verage 11,5
er organic ri
verage 9,000
e Sichuan B
The relatively
or the Jiangh
Subei Basin
on average 1
of 4 to 5 km.
ns total an a
OC; these al
ng/Talung fo
%) that is gas
The relatively
or the Subei
atform. A
y and the pa
may be pot
Silurian form
We assu
Basin areas
hale targets
logs. Perha
st North Ame
asin. The L
ic richness
The L. Silu
OC of 2.0%)
00 ft). Fina
chness (2.0
0 ft). The ge
Basin.
26

y faulted Ma
han Basin, a
n. Marine-d
120 m thick,
Source roc
average 250
lso are gas-
ormations co
s-prone at re
y faulted Ma
Basin, altho

XX
specific pro
aucity of dat
tential, perha
mations in th
umed that p
s for each of
s in the Yan
aps the struc
erican appro
L. Cambrian
(6.6%), is
rian Longma
), also is dr
lly, the Perm
0%), is still d
eothermal g
arcellus Sha
although Jian
deposited s
with 2.1%
cks in the th
0 m thick, co
-prone at pr
ontain siliceo
latively shal
arcellus Sha
ough Subei i
EIA/ARI W
X-26
ospective ar
a. Howeve
aps in local
he Yangtze P
prospective
f the L. Cam
ngtze Platfo
cturally com
oximation.
n Niutitang F
dry-gas pro
axi Formatio
ry-gas prone
mian Qixia/M
dry-gas pron
radient in th
ale play in
nghan is stru
source rock
average TO
he U. Ordov
onsisting of
rospective d
ous shale an
low depths (
ale play in
s structurally
World Shale Ga
rea could no
r, activity by
synclinal are
Platform gen
areas coul
mbrian and L
orm do not
mplex, dry-ga
Formation (
one (R
o
~2.
on (1,960-mi
e (R
o
~2.0%
Maokou Fm (
ne (R
o
~1.5
he Jianghan
central Pen
ucturally muc
shales in
OC. These a
vician Wufen
siliceous sh
epths of 3.5
nd mudstone
(1 to 2.5 km
central Pen
y much more
s and Shale Oil
ot be mapp
y major oil c
eas. Reser
nerally are s
ld be perha
. Silurian for
closely rese
as prone Ut
(1,280-mi
2
h
25%) but a
i
2
high-grade
%), and is fo
(2,150-mi
2
h
5%) and occ
Basin is mo
nnsylvania m
ch more com
the L. Cam
are gas-pron
ng and L. Si
hale and mu
5 to 5 km.
e of uncertain
).
nnsylvania m
e complex.
Resource Asses

ped here du
companies in
rvoir properti
similar to tho
aps 20% o
rmations.
emble any N
ica Shale pl
high-graded
also the dee
ed lead) has
und at mod
high-graded
curs at shal
oderate, simi
may be a d
mplex.
mbrian Mufu
ne at prospe
lurian Gaojia
udstone with
The U. Per
n TOC (assu
may be a d
ssment
ue to
n this
ies of
ose in
of the
North
lay in
lead)
epest
s less
erate
lead)
lower
ilar to
istant
ushan
ective
abian
h low
rmian
umed
istant
XX. China

June, 2013

1.3 R
H
South C
resource
S
with H
2
S
the basin
area, the
recovera
Qiongzhu
500 Tcf o
recovera
place.
B
region, w
considere
exclude
and struc
map thes
Sichuan
Y
prospect
Yangtze
resource
J
recovera
place. T
an estim
R
o
-scree
depth (9
maturity
Resource As
Having defin
China Shale
es and origin
Sichuan Bas
and thus w
n has marine
e Silurian
ble shale ga
usi Formatio
of risked, sh
ble shale ga
Based on the
with an estim
ed risked, t
the majority
ctural comp
se paramete
Basin.
Yangtze Pla
ive area 20
Platform ar
es out of 596
ianghan Ba
ble shale ga
The L. Siluria
ated 7 Tcf o
ned 28 Tcf o
,000 ft ave
windows, w
ssessment
ed the rese
e Corridor,
al shale gas
sin. Much o
was screened
e Paleozoic s
Longmaxi F
as resources
on has 125 T
hale gas in-p
as resources
ese data and
mated 2,361 T
technically r
y of the basi
lexity issues
ers and refin
atform. U
0% as large
re estimated
6 Tcf of riske
asin. The
as resources
an Longmax
of risked, te
of risked sha
rage). ARI
with an est
XX
ervoir prope
we now es
s and shale o
of the Sichua
d out as non
shales that a
Formation h
s out of 1,14
Tcf of risked
place. Perm
s out of a de
d assumptio
Tcf of risked
recoverable
n area, whi
s. Further m
ne the still po
sing Sichua
as Sichuan
d to have 14
d shale gas
L. Cambria
s, out of a de
xi Fm is pros
echnically re
ale gas in-pl
mapped a
timated 10
EIA/ARI W
X-27
erties of the
stimate the
oil in place fo
an Basin is s
n-prospectiv
are prospect
has an est
46 Tcf of ris
d, technically
mian formatio
pth- and R
o
-
ons, the Sich
d, prospectiv
shale gas
ch was scre
more detaile
oorly unders
an Basin r
ns, the L. C
49 Tcf of ris
in-place.
an has an e
epth- and R
o
spective with
coverable s
ace. The P
3,830-mi
2

Tcf of risk
World Shale Ga
e high-grade
risked, tec
or each bas
structurally c
ve. Howeve
tive. Within
timated 287
sked, shale g
y recoverab
ons have an
-screened 7
huan Basin
ve shale gas
resources,
eened out d
ed study is r
stood shale g
reservoir pr
Cambrian a
sked, techn
estimated 1
o
-screened 4
hin a 1,960-m
hale gas re
ermian Qixia
high-graded
ked, technic
s and Shale Oil
ed prospect
chnically re
in.
complex and
er, the south
our high-gra
7 Tcf of ris
gas in-place
ble shale gas
estimated 2
15 Tcf of ris
is Chinas l
s in-place, of
Table XX-1
ue to exces
recommend
gas resourc
roperties an
nd L. Siluria
ically recove
11 Tcf of ris
46 Tcf of risk
mi
2
high-gra
sources out
a/Maokou F
d lead for th
cally recove
Resource Asses

tive areas in
ecoverable s
d/or contamin
west quadra
aded prospe
sked, techn
e. The Cam
s resources
215 Tcf of ris
ked shale ga
argest shale
f which 626 T
. These fig
ssive depth,
ed to define
ce potential o
nd an assu
an shales o
erable shale
sked, techn
ked shale ga
aded lead, ad
t of a depth-
m is at mod
he three the
erable shale
ssment
n the
shale
nated
ant of
ective
nically
mbrian
from
sked,
as in-
e gas
Tcf is
gures
H
2
S,
e and
of the
umed
of the
e gas
nically
as in-
dding
- and
erate
ermal
e gas
XX. China

June, 2013

resource
has a m
billion ba
S
lead in th
gas reco
The L. S
lead, add
depth- an
may be p
gas reso
oil play c
technical
1.4 R
T
programs
Chinese
Resource
Sinopec,
legacy le
km
2
Fush
exploratio
sharing c
shale blo
if awarde
S
first repo
the Siluri
and was
March 20
a 44-day
es, out of a d
inor Permia
arrels as the
Subei Basin
he L. Cambr
verable reso
ilurian Gaob
ding an estim
nd R
o
-screen
prospective
urces out of
containing 1
lly recoverab
Recent Activ
The Sichuan
s currently
and foreign
es began dr
which are
ease position
hun-Yongch
on block. T
contract for
ocks (Zitong,
ed.
27

Shale explora
orted horizon
ian Longmax
drilled with
011 after 11
y period, fo
depth- and R
an shale oil
risked, tech
. Although g
rian Mufusha
ources, out o
biajian Forma
mated 36 Tc
ned 144 Tcf
within a 1,6
f 8 Tcf of ris
1 billion barr
ble shale oil
vity
n Basin by fa
are underw
companies
rilling shale d
engaged in
ns in the bas
uan block, lo
The Fushun
shale gas.
, Jinqiu), wh
ation drilling
ntal shale ga
xi Formation
modern log
months. H
ollowing a la
XX
R
o
-screened
play contain
nically recov
geologic dat
an Formation
of a depth- a
ation appear
cf of risked, t
f of risked sh
640-mi
2
area
sked shale g
rels of reso
resource.
ar is Chinas
ay by Petro
are negotia
delineation w
n shale dev
sin. Earlier
ocated in the
n-Yongchuan
Shell also is
ich would gi
g results in t
as exploratio
n. The Wei
gging-while-
owever, this
arge-volume
EIA/ARI W
X-28
40 Tcf of ri
ning 5 billio
verable shal
ta are scarce
n with an es
and R
o
-scree
rs to be pros
technically r
hale gas in-p
a, with 2 Tcf
gas in-place.
urce in-plac
s most active
oChina, Sino
ting initial le
wells in the S
velopment J
this year Sh
e southern S
n block is C
s pursuing jo
ve the comp
the Sichuan
on well, loca
201-H1 wel
drilling tech
s well tested
e, 11-stage
World Shale Ga
isked shale
n barrels of
e oil resourc
e, ARI identi
stimated 7 Tc
ened 29 Tcf
spective with
recoverable
place. The p
f of risked, t
. Subei also
ce with 0.1
e shale leas
opec, and S
ease position
Sichuan Bas
Vs in North
hell and CNP
Sichuan clos
Chinas first
oint studies
pany a total
Basin have
ated near th
l, which emp
nology,
28
co
d a disappoin
slickwater
s and Shale Oil
gas in-place
f resource i
ce.
ified a 2,040
cf of risked,
of risked sh
hin a 14,990
shale gas re
poorly define
technically re
o has a mino
billion barre
ing and drill
Shell, while
ns. The Min
sin in 2009.
h America,
PC were aw
se to a legac
foreign-inve
on two othe
shale/tight a
e been mixe
he city of Ch
ployed a 3,5
ompleted its
nting 450 M
frac comple
Resource Asses

e. Jianghan
n-place, wit
0-mi
2
high-gr
technically s
hale gas in-p
0-mi
2
high-gr
esources ou
ed Permian s
ecoverable s
or Permian s
els as the ris
ing area. D
numerous
nistry of Land
PetroChina
each hold
warded the 3
cy Shell tigh
ested produ
er Sichuan B
area of 8,500
ed. PetroCh
hengdu, targ
540-ft long la
drilling pha
cfd average
etion which
ssment
n also
h 0.2
raded
shale
place.
raded
ut of a
shale
shale
shale
sked,
rilling
other
d and
a and
large
3,500-
ht gas
uction
Basin
0 km
2

hinas
geted
ateral
ase in
e over
was
XX. China

June, 2013

monitore
E
wells tar
Formatio
gas field
thick blac
fracture s
22% clay
The hori
stability p
P
and succ
rapidly to
the fracs
much sm
S
expects
Sichuan
peaked a
In
for shale
Shell spu
2012 the
wells, an
confirme
while fav
pressure
exploratio
S
the Fush
d using real
Elsewhere in
rgeting the
on.
30
PetroC
, is the only
ck shale at
system.
31
Lo
y, and 2.3%
zontal latera
problems en
PetroChinas
cessfully pla
o 300 Mcfd,
s had planar
maller than ex
Separately, S
to start co
in 2013. Si
at 100 Mcfd.
n November
e gas at the
ud its first w
e company h
nd two hor
d good reso
vorably ove
es and fluid
on wells rep
Shell followed
hun block.
-time micros
the Sichuan
Longmaxi
Chinas first h
y horizontal
a depth of 2
og and core
TOC but on
al was less
countered d
planned 9-
aced only 6
averaging 5
r rather than
xpected.
32
S
Sinopec hyd
ommercial s
nopecs rece
33
No furthe
r 2009 Shell
Fushun blo
well in Dece
ad drilled fiv
rizontal frac
ource potent
r-pressured,
leakoff resu
portedly flowe
d its first tw
The compa
XX
seismic.
29

n Basin, Pet
Formation
horizontal Qi
reported in
2,600 m, wh
analysis sh
nly about 2.
than half o
during drilling
-stage fractu
stages. Ga
580 Mcfd du
n preferred
Still, the test
dro-fractured
shale gas p
ent Qianye-
er details are
signed the
ck, southern
mber 2010,
ve deep expl
wells.
35
W
tial, althoug
, had an un
ulted in poo
ed at 2.1 mil
wo vertical S
any noted s
EIA/ARI W
X-29
troChina has
and two v
iongzhusi we
detail by P
here seismic
owed the Q
0% porosity
of its planne
g.
ure stimulat
as productio
uring the 60
complex ge
t showed the
d its Fangsh
production i
1 well in Qia
e available fr
initial agree
n Sichuan B
focusing on
loration well
Whole core
h in-situ we
nfavorably h
r stimulation
llion ft
3
/day.
ichuan wells
significant fa
World Shale Ga
s fracture st
vertical wells
ell (Wei 201
PetroChina.
c had indicat
iongzhusi av
y with 100 n
ed 5,000-ft
tion encoun
on peaked a
0-day flow te
eometry and
e Qiongzhus
hen-1 well in
n Liangping
anjiang, also
rom Sinopec
ement with P
Basin, receiv
n the Siluria
s: one vertic
e and full p
ell testing de
high stress
n. Neverthe

s with two h
ault-related
s and Shale Oil
timulated at
s targeting
-H3), locate
The well te
ted a well-d
veraged 67%
D permeabi
length beca
tered high
at 1.15 MMc
est. PetroCh
d the stimula
si shale can
n Guizhou in
g County, n
o near Chon
cs shale pro
PetroChina
ving the PSC
an Longmax
cal data well
petrophysica
etermined th
gradient.
eless, one o
horizontal pr
problems, s
Resource Asses

least five ve
the Qiong
ed in the We
ested this 1
eveloped na
% quartz con
lity (core-ba
ause of bore
horizontal s
cfd and dec
hina inferred
ated volume
be productiv
n May 2010
near Chong
gqing, repor
ogram.
to jointly ex
C in March 2
xi Fm.
34
By
, two vertica
al logging s
hat the forma
High break
of Shells ve
roduction tes
such as freq
ssment
ertical
zhusi
iyuan
10-m
atural
ntent,
ased).
ehole
stress
clined
d that
e was
ve.
0 and
gqing,
rtedly
xplore
2012.
April
al frac
suites
ation,
down
ertical
sts at
quent
XX. China

June, 2013

drilling o
improved
day com
C
Chevron
Yangtze
Sichuan
first test
also have
of late 20
2,000-km
Sinopec
negotiati
productio
gas in ea
N
reported
years. N
field but
exploratio
J
Sinopec
provided
Huangqia

ut of zone a
d from over
pletion times
ConocoPhillip
is conduct
Platform, lo
Basin. Che
well there d
e reported in
010 BP was
m
2
Kaili block
to be evalua
ng with Pet
on potential
arly 2011.
North Americ
conducting
Newfield con
decided in 2
on in Sichua
ianghan and
s Decembe
). The sam
ao block, the
and resultin
100 days/we
s in North Am
ps recently w
ting a Joint
ocated nort
evron initiate
during Q1 20
nterest in lea
s reported ne
k near Chev
ating the 3,6
troChina for
by 2015. EN
can shale g
detailed sh
ducted a de
2006 not to
an by late 20
d Subei Bas
er 2010 repo
me report no
e only explor

XX
g doglegs t
ell initially to
merica. She
was awarded
Study with
th of Guiya
ed seismic a
012. BP, Co
asing shale
egotiating w
vrons Qiann
644-km
2
Wu
r a shale ga
NI signed a
gas operator
hale gas eva
tailed joint s
proceed. E
010 but has
ins. The on
ort of gas
oted that B
ration activit
EIA/ARI W
X-30
that complic
o about 53 d
ell did not re
d two shale
h Sinopec o
ng city, Gu
acquisition o
onocoPhillip
gas blocks
with Sinopec
an block. In
zhishan are
as block an
memorandu
rs Newfield
aluations in
study evalua
EOG original
been silent o
nly reported
flows in a
P was eval
ty noted thus
World Shale Ga
cated well co
days/well, bu
port product
exploration
of the Qiann
uizhou Provi
over the bloc
ps, ENI, Exxo
in the Sichu
for a shale
n July 2011
a in the Sich
d at one po
um of unders
Exploration
the Sichuan
ation with Pe
lly planned t
on the proje
shale activit
shale gas e
uating Perm
s far in the S
s and Shale Oil
ompletion.
ut still longe
tion from its
blocks in th
nan shale g
ince, and ju
ck in July 20
onMobil, Sta
uan or Yang
gas explora
ExxonMobil
huan Basin.
oint estimat
standing with
n and EOG
n Basin dur
etroChina at
to make a d
ct for the pa
ty in the Jian
exploration
mian shale i
Subei Basin.
Resource Asses

Completion
r than typica
horizontal w
e Sichuan B
gas block in
ust south o
011 and spu
atoil, and TO
tze Platform
ation block a
was reporte
Statoil rep
ted 50 MMc
h CNPC on s
Resources
ring the pas
the Weiyuan
decision on s
ast two years
nghan Basin
well (no d
in the 1,000

ssment
time
al 10-
wells.
Basin.
n the
of the
ud its
OTAL
m. As
at the
ed by
ported
cfd of
shale
also
st few
n gas
shale
s.
n was
etails
0-km
2

XX. China

June, 2013

2 T
2.1 In
T
onshore
relatively
the light
elements
study.
Fig

Source: A

TARIM BAS
ntroduction
The Tarim Ba
sedimentary
y flat at abou
ly populated
s of the Tarim
gure XX-17. S
Data Loc
ARI, 2013
SIN
and Geolo
asin, located
y basin in C
ut 1,000 m a
d region co
m Basin, as
Structural Elem
cations and Pr
XX
gic Setting
d in western
China (234,0
above sea le
ould supply
well as loca
ments Map of t
rospective Are
EIA/ARI W
X-31
Chinas Xin
000 mi
2
). S
evel. The c
frac water
ations of ARI

the TarimBas
eas for Shale

World Shale Ga
njiang Autono
Surface eleva
limate is dry
. Figure X
I-proprietary
sin Showing A
Gas and Shal
s and Shale Oil
omous Regi
ation of this
y but aquifer
XX-17 show
y data used i
ARI-Proprietar
le Oil Explorat
Resource Asses

ion, is the la
s remote bas
rs which und
ws the struc
n conducting
ry Shale Gas
tion.
ssment
argest
sin is
derlie
ctural
g this
XX. China

June, 2013

P
reservoir
The basi
the two
billion ba
Ordovicia
Tarim Ba
T
structura
include t
Depressi
a north-t
structure
of 25x).
3
than 5 k
structura
H
be (bare
shows C
km acros
shale de
removed
this unit r
originate
M
Cambria
Marine-d
most imp
Lianglitag
Xiaoerbu
PetroChina a
rs in the Tar
n also prod
4,000-km W
arrels of oil
an shales
asin.
The Tarim Ba
l zones, co
the Kuqa D
ion, Tanan U
to-south tran
e characteriz
6
Unfortuna
km over mo
l troughs.
However, inte
ely) depth-pr
Cambrian and
ss the Tazho
evelopment.
3
by erosion
remains. Ge
d mainly fro
Multiple petro
n, Ordovicia
deposited bla
portant sourc
ge and equ
ulake Format
and Sinopec
rim during 2
uced 1.6 Bc
West-to-East
and 15 Tc
considered
asin is sub-d
mprising th
Depression,
Uplift and So
nsect across
zed by shallo
ately, the m
st of the ba
erior anticlin
rospective f
d Ordovician
ong Uplift, b
37
Even th
during the L
eochemistry
m Ordovicia
oleum sourc
an, Carbon
ack shales o
ce rocks in th
uivalent for
tion and equ
XX
c produced
2011 and are
cfd of natura
t pipelines.
f of gas, w
d the princip
divided by fa
ree uplifts a
Tabei Upl
outheast De
s the centra
ow dip angle
ain Cambria
asin, plungin
nes within th
for shale de
n source roc
but even her
ough much
Late Paleozo
y indicates th
an rather tha
ce rocks of v
niferous, Tri
of Cambrian
he basin.
39

rmations, w
uivalent units
EIA/ARI W
X-32
an average
e investing
al gas in 201
Convention
ere sourced
pal targets f
ault and fold
and four de
ift, North D
pression. C
al Tarim Bas
e and few fa
an and Ordo
ng to a max
he Tarim Bas
evelopment
ck shales at
re shale is ju
of the Mid
oic Hercynia
hat the conve
n Cambrian
various ages
iassic, Cret
and particu
The Ordovic
hile L. Cam
s.
World Shale Ga
e 261,000 b
heavily to d
11 that was
nal petroleu
d mainly by
for shale ga
d systems in
epressions.
Depression,
Cross-section
sin, revealin
aults (note e
ovician shal
ximum dept
sin include u
(<5 km). F
t prospective
ust within th
d-Upper Ord
an Orogeny,
entional oil t
source rock
s occur in th
taceous, an
ularly Ordovi
cian units inc
mbrian sou
s and Shale Oil
b/d of oil fr
double outpu
transported
um deposits
y organic-ric
as and oil e
nto a series
From north
Tazhong U
n A-A, Figu
ng generally
extreme verti
le targets ar
th of 10 km
uplifted area
For example
e depths ran
he depth lim
dovician sec
, a consider
trapped in th
ks.
38

he Tarim Bas
nd Tertiary,
ician age ar
clude the He
rce rock u
Resource Asses

rom convent
ut there by 2
d to Shangha
s, totaling ov
h Cambrian
exploration i
of seven di
h to south t
Uplift, South
ure XX-18, s
y simple reg
ical exagger
re buried de
m or more in
as that appe
e, Figure X
nging from 4
it for comme
ction was lo
able thickne
he Tazhong
sin, includin
Figure XX
re considere
etuao, Yijian
nits include
ssment
tional
2015.
ai via
ver 5
n and
n the
stinct
these
hwest
hows
gional
ration
eeper
n the
ear to
XX-19
4 to 5
ercial
ocally
ess of
Uplift
g the
X-20.
ed the
nfang,
e the
XX. China

June, 2013

Figure XX
Well as M
are Too

Source: Z
Figur
Cambrian
Source: X
X-18. South-n
Migration Path
o Deep (>5 km
Zhu et al., 201
re XX-19. Inte
n and Ordovic
Xiao et al., 200
north Cross-se
hways for Oil (
m) for Commer
Pro
2.
erpreted Seism
ian Source Ro
00.
XX
ection of the C
(Red) and Gas
rcial Shale Dev
ospective (ver
mic Depth Sec
ock Shales at
EIA/ARI W
X-33
Central Tarim
s. Note that C
velopment in
rtical exaggera

ction across t
Prospective D
World Shale Ga
Basin Showin
ambrian and O
Most of the B
ation =25x).
he Tazhong U
Depth of 4 to 5
s and Shale Oil
ng Generally S
Ordovician So
asin, but Loca
Uplift, TarimB
5 km(vertical
Resource Asses

Simple Structu
ource Rock Sh
al Uplifts may
asin, Showing
exaggeration
ssment
ure as
hales
y be
g
=5x)
XX. China

June, 2013

Source: A

T
most pro
thick and
brittle. T
Awati De
0.56% to
Central T
with relat
prone, fo
to 5,700
Figur
Cambrian, O
ARI, 2013.
The Lower O
ospective, al
d consist of
The Mid-Ordo
epression, co
o 2.86% (av
Tarim, Bach
tively low TO
or example w
m on the ea
E
M
E
S
O
Z
O
I
C
C
E
N
O
Z
O
I
C
P
A
L
E
O
Z
O
I
C
re XX-20. Stra
rdovician, Ca
rdovician He
though TOC
f carbonace
ovician Yijia
ontains blac
verage 1.56
hu, and Tabe
OC (average
with R
o
rangi
ast flank of th
RA PERIOD
QUATERNAR
TRIASSIC
DEVONIA
SINIAN
Source Ro
SILURIAN
PERMIAN
CAMBRIA
ORDOVICI
M
E
S
O
Z
O
I
C
C
E
N
O
Z
O
I
C
P
A
L
E
O
Z
O
I
C
TERTIAR
JURASSI
CRETACEO
CARBONIFER
XX
atigraphy of t
rboniferous, T
etuao (O
1-2
)
C generally
eous and ra
anfang (O
2
) S
k marine-de
6%). Uppe
ei areas, wh
e 0.93%). T
ing from 2.0
he Tazhong
D EPOCH
RY Q
N
2a
N
1w
Eh
K
2y
K
1y
J
3k
J
2t
J
2y
J1k
C
Middle-Low
Upper-Mid
AN
Upper
Middle
Lower
Upper
Middle
Upper
Middle
Lower
ock
TA
N
Upper
N
AN
Lower
IAN
Lower
RY
C
OUS
ROUS
EIA/ARI W
X-34
he TarimBasi
Triassic, Creta

shales -- im
is under 2%
adiolarian-be
Saergan For
eposited mud
er Ordovicia
here they ar
Thermal mat
% to 2.6% i
Uplift, Figur
H FORMATION
Shazijing
Aqiaqun
wer Aqiaqun
dle Xiaohaizi
Kalashayi
Bachu
r Hetuao (O1-2)
e Yijianfan (O2
Qiulitage
Awatage
r Xiaoerbulake
Conventiona
ARIM BASIN
r Lianglitage (O
World Shale Ga
in, Highlightin
aceous, and T
mportant sou
%. These sh
earing siliceo
rmation, pre
dstones 10 m
an Lianglitag
re 20 m to
turity of the
n the Guche
re XX-21.
40
N AGE (Ma) TH
355 - 405
) 439 - 459
) 459 - 478
e
600+
al Reservoir
505 - 600
290
405 - 439
O3) 478 - 505
290 - 355
s and Shale Oil
ng Prospective
Tertiary Source

rce rocks --
hales range
ous mudsto
esent in the K
m to 30 m th
ge (O
3
) sha
80 thick, ca
Ordovician
eng-4 well a
ICKNESS (m)
0 - 241
0 - 300
org-rich
0 - 150
org-rich
2918
125
74
200 - 1100
0 - 50
org-rich
0 - 517
0 - 780
0 - 691
Resource Asses

e
e Rocks.
appear to b
from 48 to
one that app
Keping Uplif
hick, with TO
ales occur in
arbonate-rich
is mostly dry
t depths of 3
ssment
be the
63 m
pears
ft and
OC of
n the
h, but
y-gas
3,200
XX. China

June, 2013

Figure X

T
abyssal t
eastern T
Xiaoerbu
Cambria
Evaporiti
anhydrite
120 m to
window (
XX-21. Vitrinit
Well, TarimB
Source
The Cambria
to bathyal fa
Tarim and K
ulake format
n Formation
c dolomites
e beds totali
o 415 m, ave
(R
o
> 2.5%)
te Reflectance
Basin Ranges
: Lan et al., 2
an organic-r
acies mudsto
Keping Uplif
ions. TOC
ns and exc
, potential ca
ng 400 to 1
eraging abou
in deep area
XX
e (R
o
) of the M
from<2%at a
009.
rich shales,
ones that are
fts. Cambri
is fairly high
ceeds 1% o
ap rocks, oc
,400 m thick
ut 120 m (40
as.
EIA/ARI W
X-35
Mid to Upper O
a Depth of 3,2

such as th
e well develo
ian formatio
h (1.2% to 3
over about
ccur in the m
k. Net orga
00 ft). Therm
World Shale Ga
Ordovician Sha
200 mto 2.7%
he Xiaoerbu
oped in the M
ons include t
3.3%) in the
two-thirds o
middle Camb
anically-rich
mal maturity
s and Shale Oil
ale Sequence
at a Depth of
ulake Form
Manjiaer De
the Qiulitag
e Lower (C
1
)
of the Cam
brian, with e
shale thickn
y is mostly w
Resource Asses

in the Guchen
5,700 m.

ation, cons
epression an
e, Awatage
) and Middle
mbrian seque
xtensive sal
ness ranges
within the dry
ssment
ng-4
ist of
nd the
, and
e (C
2
)
ence.
lt and
from
y gas
XX. China

June, 2013

T
kerogen,
structura
reflecting
distributio
Tadong U
4% TOC
prospect

The organic
vitrinite-like
l location, r
g the paleo d
on within th
Uplift in the
C, while Low
ive depth at
Fi
content of t
e macerals
ranging from
depositional
e Lower Pa
eastern Tar
wer Ordovici
this particul
gure XX-22.
Ordovic
Source: Hu
XX
the Cambria
, as well a
m as much
l environmen
aleozoic sect
rim Basin.
41
an units ha
lar location (
Stratigraphy a
cian Shales in
u et al., 2009.
EIA/ARI W
X-36
an and Ord
as bitumen.
as 7% in t
nt. For exa
tion in the M
Lower Cam
ave mostly 2
(5,200-5,700
and TOC Distr
the Milan-1 W

World Shale Ga
ovician sha
Regionall
he troughs
ample, Figur
Milan-1 well
mbrian forma
2% or less
0 m).
ribution of Ca
Well, TarimBas
s and Shale Oil
les in the T
ly, TOC va
to only 1-2
re XX-22 illu
, located on
ations in this
TOC, althou
mbrian and
sin.

Resource Asses

Tarim consis
aries widely
2% in the u
ustrates the
n the flank o
s well have
ugh neither
ssment
sts of
with
plifts,
TOC
of the
up to
is at
XX. China

June, 2013

2.2 R
N
formation
that a sig
the 5-km
completio
in this ba
In
Mesozoic
thermal
Ordovicia
on the ve
A
dissolutio
introduce
negative
resource
local kar
hazard th
W
thick, wit
Ordovicia
that also
prospect
mi
2
shale
shale wit
15,920-m
Reservoir Pr
New geologic
ns in the Ta
gnificant amo
m prospectiv
on technolog
asin.
n addition, s
c reservoirs
maturation o
an sapropel
ery structura
Another pote
on of underl
e copious f
ly affects po
e there.
43
Fi
rst collapse
hat would ne
Within its 6,5
th relatively
an prospecti
is in the dry
ive area, wit
e oil prospec
th R
o
of 0.9
mi
2
prospecti
roperties (P
c informatio
rim are cons
ount of the O
ve depth h
gy could add
significant n
throughout
of nitrogen-r
ic source ro
al uplifts that
ential geoh
ying carbon
formation w
ortions of th
gure XX-23
structures
eed to be av
520-mi
2
pros
low 2% TO
ive area is a
y-gas windo
th 390 ft of
ctive area al
%. In additio
ive area, ave
XX
Prospective
on gathered
siderably de
Ordovician a
haircut. No
d back the l
nitrogen con
the Tarim B
rich mineral
ocks. Unfort
are most pr
hazard is
ate rocks, w
water detrim
he Barnett S
3, a seismic
disrupting O
oided during
spective are
OC in the dry
approximatel
w (R
o
of 1.8
high-TOC sh
lso exists fo
on, the L. T
eraging 400
EIA/ARI W
X-37
Area)
by ARI sin
eeper than p
and, particula
ote that ad
arge resourc
ntamination
Basin. Eleva
s (ammoniu
tunately, nitr
rospective fo
karstic colla
which locally
ental to sh
Shale play,
time section
Ordovician s
g shale deve
a the Camb
y-gas therm
ly 19,420 mi
8%). The U.
hale in the d
r the U. Ord
Triassic is pr
ft of high-TO
World Shale Ga
ce the 201
previously m
arly, the Cam
dvancements
ce that exist
(5-20%) is
ated nitroge
um clays, ev
rogen conce
or shale gas
apse of Or
y disrupts th
hale gas pr
locally steri
n from the n
strata.
44
Ka
elopment.
brian organic
mal maturity
i
2
, with abou
. Ordovician
dry-gas wind
dovician, ave
rospective fo
OC shale wit
s and Shale Oil
1 study ind
mapped. The
mbrian reso
s in shale
ts in the 5-6
prevalent i
en apparently
vaporates) i
entration ten
.
42

rdovician st
he shale stra
roduction.
lizing a sma
northern Tar
arsting is co
c-rich shale
window (R
o
ut 300 ft of o
n has a 10,9
dow (R
o
of 2
eraging 300
or shale gas
th R
o
of 0.9%
Resource Asses

icates that s
e new data
urce is subje
well drilling
6 km depth r
n Paleozoic
y was cause
in Cambrian
nds to be hig
trata cause
ata and also
Similar kar
all portion o
rim Basin, s
onsidered a
averages 3
o
of 2%). T
organic-rich s
30-mi
2
shale
2.0%). A 10
ft of organic
s and oil wit
%.
ssment
shale
show
ect to
g and
range
c and
ed by
n and
ghest
ed by
o may
rsting
of the
hows
geo-
380 ft
he L.
shale
e gas
0,450-
c-rich
thin a
XX. China

June, 2013

Figure X

So

2.3 R
C
of the Ta
previous
considere
interior u
further re
plays in
216 Tcf a
L
Tcf of ris
place. L
of risked
Ordovicia
technical
contains
risked, te
XX-23. Seismi
Ordovician S
ource: Zeng e
Resource As
Compared wi
arim Basin in
ly mapped
ed too dee
uplifts raised
educed shal
the mid-upp
and 8 billion
. Cambrian
sked, technic
. Ordovician
, shale gas
an shale ga
lly recovera
an estimate
echnically re
ic Time Sectio
Strata. Karsti
t al., 2011.
ssessment
ith our 2011
ndicates that
and the pro
p for comm
d to prospec
le gas resou
per Ordovicia
barrels of ri
shale cover
cally recove
n shale within
in-place, wi
s lead conta
able shale g
ed 31 billion
coverable sh
XX
on fromNorthe
ng is a Geo-h
study, new
t Ordovician
ospective ar
mercial shale
ctive depth.
urces. On
an and L. Tr
sked, techni
rs a reduced
rable shale
n its 19,420-
ith 94 Tcf of
ains 265 Tcf
gas resourc
n barrels of
hale oil reso
EIA/ARI W
X-38
ern TarimBas
azard to be Av
more comp
and Cambr
rea is consi
e developm
The 20%
the other ha
riassic. We
ically recove
d 6,520-mi
2
gas resourc
-mi
2
high-gra
f risked, tec
f of risked s
ces. In add
risked shal
ources.
World Shale Ga
sin Showing L
voided During
plete data co
rian shales a
iderably sm
ent (>5 km
nitrogen co
and, we add
e now estima
erable shale
high-graded
ces out of 17
aded area co
chnically rec
shale gas in
dition, a 10
le oil in-plac
s and Shale Oil
Local Karst Co
g Shale Develo
overage and
are consider
maller. Most
m), with only
ontent and
ded newly r
ate that the
gas and oil
d area, with
76 Tcf of ris
ontains an e
overable res
n-place with
0,450-mi
2
sh
ce with 1.6
Resource Asses

ollapse Disrup
opment.
revised map
rably deeper
t of the bas
y portions o
karst disrup
recognized s
Tarim Basin
resources.
an estimate
sked shale g
estimated 37
sources. Th
61 Tcf of ris
hale oil pros
billion barre
ssment
pting
pping
r than
sin is
of the
ptions
shale
n has
ed 44
gas in
77 Tcf
he U.
sked,
spect
els of
XX. China

June, 2013

L
at 6.5 bi
barrels o
risked, te
2.4 R
N
One pos
Basin du
conventio
future sh

3 J
3.1 In
L
northwes
services
3 million
technolog
resource
harsh tha
elements
study.
T
resource
2011, wit
extensive
formation
while no
geology
PetroChi
. Triassic sh
illion barrels
of risked, sha
echnically re
Recent Activ
No shale gas
sitive indicat
ring the pas
onal oil prod
ale develop
UNGGAR
ntroduction
ike its large
st Chinas X
than the Ta
n) is situate
gy center is
e-rich area.
an in the Ta
s of the basi
The Junggar
es. It produc
th output ex
e and highly
ns and geolo
t Chinas la
and reserv
na on shale
hale has sha
s of risked,
ale oil in-plac
coverable a
vity
s or shale oil
tion is the w
st decade, w
duction.
45
T
ment in the
BASIN
and Geolo
er neighbor
Xinjiang regi
rim and offe
ed in the s
s at Kelama
With mostly
arim and agr
n as well as
r Basin is u
ced an aver
xpected to ris
y prospective
ogic settings
argest shale
voir potentia
oil projects
XX
ale oil poten
technically
ce. In additi
ssociated ga
leasing or d
wide comme
ith the techn
This advance
Tarim Basin
gic Setting
the Tarim B
on. Howev
ers better inf
south-centra
ayi. Local i
y level surfac
riculture is m
s locations o
undergoing
rage 218,00
se to 400,00
e yet comple
s. ARIs initia
e resource,
al. Shell a
in outlying a
EIA/ARI W
X-39
ntial within a
recoverable
ion, the L. T
as resources
drilling activi
ercial applic
nique already
ed drilling ca
n.
Basin, the 6
ver, the Jun
frastructure.
al Junggar
ndustry and
ce elevation
more develop
of ARI-propri
rapid deve
00 bbl/day o
00 bbl/day a
etely unteste
al data and a
actually ma
and Hess re
areas of the
World Shale Ga
15,920-mi
2
e shale oil r
riassic could
s out of 161
ty has been
cation of ho
y accounting
apability pro
62,000-mi
2
J
nggar is les
Xinjiangs c
Basin, whil
d population
n just above
ped. Figure
ietary shale
elopment of
of oil and 0.5
and 1.0 Bcfd
ed shale gas
analysis sug
ay be its be
ecently sign
Junggar Ba
s and Shale Oil
prospective
resources o
d hold an es
Tcf of risked
reported in
rizontal drill
g for about h
ovides a goo
Junggar Ba
s remote fr
capital of Ur
le PetroChi
n are growin
1,000 m, th
e XX-24 sho
data used i
its rich oil
5 Bcfd of na
d by 2015. T
s and oil de
ggest that th
est overall in
ned study a
sin.
Resource Asses

e area, estim
out of 129 b
stimated 16 T
d gas in-plac
the Tarim B
ing in the T
half of the ba
od foundatio
asin is locat
om markets
rumqi (popu
nas moder
ng rapidly in
he climate is
ows the struc
n conducting
l, gas, and
atural gas d
The Jungga
posits in mu
e Junggar B
n terms of s
agreements
ssment
mated
billion
Tcf of
ce.
Basin.
Tarim
asins
on for
ed in
s and
lation
rn oil
n this
s less
ctural
g this
coal
during
ar has
ultiple
Basin,
shale
with
XX. China

June, 2013

Source: A

T
mostly g
Carbonife
Carbonife
importan
The Jun
maturitie
than abo
Figu
ARI-Proprie
ARI, 2013.
The Junggar
gently dippin
erous and
erous, Perm
t due to its v
ggar is a t
s (R
o
> 1%)
out 5 km.
47

ure XX-24. Str
etary Shale Ga
Basin is an
ng north, w
younger st
mian, Triassic
very high TO
thermally im
are attained
XX
ructural Eleme
as Data Locat
asymmetric
west and ea
rata, Figure
c, and Juras
OC and good
mmature bas
d only in the
EIA/ARI W
X-40
ents Map of th
tions and Loca

c cratonic ba
ast margins.
e XX-25.
ssic.
46
Of the
d genetic po
sin with ab
North Tians
World Shale Ga
he Junggar Ba
ation of Shale
asin with a th
. The bas
Four main
ese, the Per
tential, follow
bnormally low
shan forelan
s and Shale Oil
asin Showing
e-Prospective
hrusted sout
sin contains
source roc
rmian is con
wed distantl
w heat flow
nd region at d
Resource Asses

Areas.
thern margin
up to 9 k
cks are pre
nsidered the
y by the Tria
w. Gas wi
depths of gr
ssment

n and
km of
esent:
most
assic.
ndow
reater
XX. China

June, 2013

L
Carbonife
mudston
mostly to
The Jura
suitable f
and more
T
environm
making t

Source
ower Carbo
erous sourc
e of marine
oo deep (> 5
assic is a coa
for shale-typ
e variable TO
The dominan
ments and h
hem one of
ERA
M
E
S
O
Z
O
I
C
C
E
N
O
Z
O
I
C
P
A
L
E
O
Z
O
I
C
C
Figure XX-25
Prospe
: ARI, 2013.
oniferous pe
ce rocks rea
character,
5 km) but s
al-bearing, n
pe hydraulic
OC, mainly T
nt Permian s
have except
the worlds
PERIOD
QUATERNARY
DEVONIAN
Source Rock
JURASSIC
TERTIARY
CRETACEOUS
TRIASSIC
PERMIAN
CARBONIFEROU
XX
5. Stratigraphy
ective Permian
etroleum so
ach up to 1
with TOC o
hoals to les
non-marine u
stimulation.
Type III, and
source rock
ionally high
richest.
48
T
EPOCH
Y Q
K2
K1
T3
T2
T1
P3 U
Lo
C2
C1
k
J1
J2
J3
N
E
S
JUN
P1
P2
US
EIA/ARI W
X-41
y of the Jungg
n and Jurassic

urce rocks
,000 ft thick
f 0.5% to 2.
s than 3 km
unit that is ri
. Both Juras
d are conside
s were dep
TOC of up
The Permian
FORMATION
Xiyu
Dushanzi
Taxihei
Shawan
Anjihaihe
Ziniquanzi
Donggou
Tugulu
Kalaza
Qigu
Toutunhe
Xishanyao
Sangonghe
Badaowan
Baijiantan
Kelamay
Balkouquan
Upper Wuerhe
ower Wuerhe
Xiazijie
Fengchen
Jiamuhe
Talieguia
Baogutu
Conventional
GGAR BASIN
World Shale Ga
gar Basin, Hig
c Source Rock
are up to
k. These
.4% (Type I
m depth in u
ch in clay, p
ssic and Ca
ered poor qu
osited prima
p to 20% (T
n is conside
AGE (Ma)
0 - 2.6
2.6 - 5.3
23.3 - 32
32 - 65
65 - 96
96 - 145.6
208 - 227
227 - 241
241 - 245
245 - 257
e
290 - 320
320 - 354
354
l Reservoir
N
145.6 - 157.1
157.1 - 178
178 - 208
5.3 - 23.3
257 - 270
270 - 290
s and Shale Oil
ghlighting
ks.
1,300 ft thi
are describ
I, III). The
uplifted portio
probably duc
arboniferous
uality source
arily in lacu
Type I/II ker
red liquids-r
THICKNESS
350 - 2046
207 - 1996
100 - 320
150 - 500
44 - 800
15 - 855
46 - 813
84 - 964
50 - 800
144 - 683
200 - 645
137 - 980
148 - 882
100 - 625
123 - 457
250 - 450
30 - 269
850 - 1160
430 - 1700
1800 - 400
830 - 1850
1
Resource Asses

ick, while U
bed as dark
Carbonifero
ons of the b
ctile, and thu
units have
e rocks.
strine and f
rogen, not c
rich (R
o
= 0.7
(m)
6
6
0
0
3
5
0
5
7
0
0
0
00
0
ssment
Upper
grey
ous is
basin.
us not
lower
fluvial
coal),
7% to
XX. China

June, 2013

1.0%) at
developm
basin flan
T
as Lucao
consists
sandy m
thickness
detailed
the sout
immature
20%.
49

T
the Perm
Triassic
contains
condition
C
Fukang,
deposits
oilfields w
Jurassic
T
tectonica
Basin ca
basin inte
favorable
target depth
ment in the t
nks and inte
The single m
ogou in the
of grey to b
udstones, s
s in the Ping
stratigraphy
thern Jungg
e lacustrine
Triassic sedim
mian, with th
Xiaoquango
up to 250
ns.
Conventional
North Dong
include the
which produ
age.
The Junggar
ally more co
an be structu
erior has ge
e for shale g
hs of 2-5 km
roughs, they
erior uplifts.
ost importan
e south), a
black mudsto
shaly siltston
gdiquan ran
and TOC p
gar Basin.
mudstone is
ments are m
he depocent
ou Group (i
m of dark
oil deposits
gdaohaizi, W
Cainan, W
uce from co
r Basin is
mplex shale
urally compl
ntle dip ang
as/oil develo
XX
m. Although
y do shoal to
nt source roc
lacustrine to
ones, oil sha
nes, siltstone
nges from 50
profiles for tw
Approxima
s present, w
more widely
er at the fro
ncluding Ka
mudstones
s in the eas
Wucaiwan, an
ucaiwan, Hu
onventional r
characterize
e basins of s
ex, particula
le and relati
opment.
EIA/ARI W
X-42
Permian so
o prospectiv
ck is the Mid
o deltaic de
ales and do
es and fine
0 m to a re
wo outcrop s
ately 300 to
with TOC ave
distributed
ont of the Ti
aramay, Hua
s and thin c
stern Jungg
nd Jimursar
uoshaoshan
reservoirs o
ed by muc
southern Ch
arly along its
vely few fau
World Shale Ga
ource rocks
ve depth of le
d-Permian P
eposit up to
olomitic mud
sandstones
markable 65
sections in th
o 700 m of
eraging 5%
across the
ianshan mo
angshanjie,
coals depos
gar sourced
r structural d
n, Shanan, B
of Carbonife
h simpler s
hina. While
s thrusted s
ults. Such si
s and Shale Oil
are too dee
ess than 4 k
Pingdiquan F
o 1,200 m t
stones inter
s. Hydrocar
50 m. Figu
he Permian
f organic-ric
and reachin
eastern Jun
untains. Th
and Haojiia
sited under
by these u
depressions
Beisantai, Sa
rous, Permi
structural g
some edge
southern ma
imple structu

Resource Asses

ep for comme
km along som
Formation (k
thick presen
rbedded with
rbon source
ure XX-26 s
Lucaogou F
ch but ther
ng a maximu
nggar Basin
he Mid- to U
agou format
fluvial-lacus
nits occur i
(sags). T
antai and G
ian, Triassic
eology than
es of the Jun
argin, most o
ure is consid
ssment
ercial
me of
nown
nt. It
h thin
e rock
hows
Fm of
rmally
um of
than
Upper
tions)
strine
n the
These
Ganhe
c and
n the
nggar
of the
dered
XX. China

June, 2013

Figure X
Fm, S

F
the entir
overthrus
but too d
north but
XX-26. Detaile
Southern Jun
Lacus
or example,
re Junggar
sted souther
deep (>5 km
t also thin ou
ed Stratigraph
ggar Basin. A
strine Mudston

Source: C
Figure XX-
Basin, illus
rn margin.
50
) in most of
ut on structu
XX
hy and TOC Pr
Approximately
ne is Present,
Carroll and W
-27 shows a
trating the
Note that
the central
ral uplifts.
EIA/ARI W
X-43
rofiles for Two
y 300 to 700 m
with TOC Ave

Wartes, 2003.
a regional no
relatively si
Permian an
basin trough
World Shale Ga
o Outcrop Sec
mof Organic-ri
eraging 4%(M
orth-south st
imple interio
nd Jurassic
h. These un
s and Shale Oil
ctions in the P
ich but Therm
Maximum20%

ructural cros
or structure
source rock
nits become
Resource Asses

Permian Lucao
mally Immature
%).
ss-section a
e as well as
ks are quite
e shallower t
ssment
ogou
e
cross
s the
thick
to the
XX. China

June, 2013

In
strata dip
Again, fa
prevalen
Junggar
for over 4

Figure
Relative
Rocks ar

Source: Q

Figure
Margin o
Cretaceou

Source: Z
n particular,
p quite gentl
aults here ar
t along the s
Basin hosts
40% of the b
XX-27. Regio
ely Simple Str
re Very Thick b
the No
Qiu et al., 200
e XX-28. Deta
of the Junggar
us (K) Strata D
Zhu et al., 201
on the north
ly (1 southe
re relatively
shallow wes
s a highly pro
basins conv
onal North-sou
ructure, Apart
but Too Deep
orth but Thin
8.
ailed Structura
r Basin, Based
Dip Gently into
Along t
0.
XX
hwest flank
east) toward
few on the
stern basin m
ospective sh
entional oil r
uth Structural
fromits Over
(>5 km) in the
Out on Struct
al Cross-sectio
d on Seismic
o Basin. Fault
the Basin Marg
EIA/ARI W
X-44
of the Jung
ds the centra
basin interio
margin. This
hale gas/oil
reserves and
Cross-sectio
rthrusted Sout
e Central Basi
tural Uplifts. V

on Trending N
and Well Data
ts are Fewin t
gin. No vertic

World Shale Ga
gar Basin, P
al trough, Fig
or side of th
s gently dipp
lead. This p
d has good e
n Across the J
thern Margin.
in Trough. Th
Vertical Exagg
Northwest-sou
a. Permian (P
the Basin Inte
cal exaggerati
s and Shale Oil
Permian thro
gures XX-2
he section b
ping northwe
part of the J
existing infra
Junggar Basi
Permian and
hese Units Bec
geration is 3.7x
utheast Across
), Triassic (T),
erior but Beco
on.
Resource Asses

ough Cretac
8 and XX-29
but become
est margin o
Junggar acco
astructure.
n. The Basin h
Jurassic Sou
come Shallow
x.
s the Northwe
, Jurassic (J),
ome More Prev
ssment
ceous
9.
51,52

more
of the
ounts
has
urce
wer to
est
and
valent
XX. China

June, 2013

Figure X
Junggar B
Strata Di
Sourc

T
Jurassic
These sh
near intr
sandston
Jurassic
deep Fuk
R
Huo-10 w
100% ab
3,500 m,
it could i
conventio
considere
is not cu
depth in
XX-29. Structu
Basin, Showin
p Gently into
ce: Jin et al., 2
The southea
source roc
hales shoal
ra-basinal u
ne reservoirs
shales whic
kang Trough
Reservoir pre
well, located
bove hydros
Figure XX-
increase sha
onal objectiv
red as an imp
rrently feasi
the study ar
ural Cross-sec
ng Convention
the Basin. Fa
Bas
2008.
stern Jungg
k shales are
but also thi
uplifts struct
s in the Ca
ch may be
h.
53

essure often
d on an antic
static levels
-32.
54
Such
ale gas stor
ves: The T
portant obje
ible to penet
rea, especial
XX
ction Trending
nal Oil Fields.
aults are Fewi
sin Margin. V
gar Basin a
e thick but
in onto the
ture is relat
inan oil field
prospective
is abnorma
cline in the
in Eocene
overpressu
rage and de
Triassic and
ective for futu
trate into the
lly in the Cha
EIA/ARI W
X-45
g Northwest-so
Permian (P),
in the Basin In
ertical exagge
also has rela
too deep (>
intra-basin
tively simple
d, central Ju
for shale d
ally elevated
southern Ju
and Cretac
ring general
eliverability.
d Permian o
ure [convent
e overpressu
angji depres
World Shale Ga
outheast Acro
Triassic (T), J
nterior but Be
eration is 6x.
atively simp
>5 km) nea
high to the
e. Figure
unggar Basi
developmen
in the Jung
unggar, teste
ceous forma
lly is favorab
As one au
overpressure
tional] natura
ured bodies
ssion.
55

s and Shale Oil
oss the Northw
Jurassic (J), a
come More Pr
ple structure
r the southe
north, Figu
XX-31 sho
in, sourced
t further to
gar Basin.
ed pressures
ations at de
ble for shale
thor noted,
ed bodies s
ral gas explo
because of
Resource Asses

west Margin o
and Cretaceou
revalent Along
e. Permian
ern basinal
re XX-30.
ows convent
by Permian
the south i
For example
s of 50% to
epths of 2,00
e developme
referring he
should henc
oration becau
f their deep b
ssment
of the
us (K)
g the
n and
axis.
Even
tional
n and
n the
e, the
over
00 to
ent as
ere to
ce be
use it
burial
XX. China

June, 2013

Figure

Source: C

Figure
Basin.
Fukang T

Source: C
XX-30. South
Chen et al., 20
XX-31. South
The conventio
Trough to the
Chen et al., 20
h-north Orient
003.
h-north oriente
onal sandston
south, where
003.
XX
ted Structural
Vertical e
ed structural c
ne reservoirs h
they may be
EIA/ARI W
X-46
l Cross-sectio
exaggeration 3
cross-section
here were sou
prospective fo
10x.

World Shale Ga
on Across the
3.5x.
across the Ca
urced by Perm
or shale deve
s and Shale Oil
Southeastern
ainan oil field
mian and Juras
lopment. Ver
Resource Asses

n Junggar Bas
, central Jung
ssic shales in
rtical exaggera
ssment
sin.
ggar
the
ation
XX. China

June, 2013

3.2 R
P
area of
organic-r
11,500 ft
T
8,600 mi
Triassic
also in th
Triassic s
Figu
Sour
Reservoir Pr
Permian lacu
approximate
rich portion
t deep, with a
Triassic lacus
i
2
, based on
formations a
he oil windo
shales.
ure XX-32. Ov
at th
rce: Pa et al.,
roperties (P
ustrine muds
ely 7,400 m
of the Ping
average 5%
strine mudst
n depth and
averages ab
ow (R
o
of 0.
XX
ver-Pressuring
he Huo-10 Wel
2009.
Prospective
stones and s
mi
2
, based o
gdiquan/Luca
% TOC that is
tones and sh
thermal ma
bout 820 ft
85%). No m
EIA/ARI W
X-47
g in Eocene an
l, Southern Ju

Area)
shales in the
on depth an
aogou forma
s in the oil w
hales cover
aturity mapp
thick and 1
mineralogica
World Shale Ga
nd Cretaceous
unggar Basin.
e Junggar B
nd thermal m
ations avera
window (R
o
of
a net prosp
ing. The ne
0,000 ft dee
al data are
s and Shale Oil
s Formations
.

Basin cover a
maturity ma
ages about
f 0.85%).
pective area
et organic-ri
ep, with ave
available fo
Resource Asses

a net prospe
apping. The
820 ft thick
of approxim
ch portion o
erage 4.0%
r the Permia
ssment
ective
e net
k and
mately
of the
TOC
an or
XX. China

June, 2013

3.3 R
H
estimated
109 billio
recovera
of risked
Permian
rock rich
depositio
Junggar
has had
T
billion ba
risked sh
shale ga
shale ga
simple st
3.4 R
In
Hami un
Junggar
unsatisfa
H
methane
is located
Enviro E
Jurassic
non-mari
prospect
this PSC
test wells
Resource As
Highly prosp
d to have 5.
on barrels of
ble shale ga
shale gas i
shales are c
hness, over
onal setting
Basin shale
promising ex
Triassic lacus
arrels of risk
hale oil in-pl
as resources
s in-place. T
tructural sett
Recent Activ
n April 2012
nit to evalua
Basin. Pe
actory results
Hong Kong-b
production
d just west o
Energy has
Badaowan
ine environm
ive resource
C to be 1.512
s have been
ssessment
pective Perm
4 billion bar
f risked oil in
as resources
n-place. Wh
considered p
r-pressuring
is complete
e appears cl
xploration te
strine muds
ed, technica
lace. In ad
s associated
The Triassic
ting and ove
vity
Shell and H
ate shale oi
troChina re
s.
based Envir
sharing con
of Urumqi in
reported on
Formation c
ment. Third
es within the
2 Tcf (best e
drilled on th
XX
mian lacustri
rrels of risked
n-place. In a
s associated
hile not Chin
particularly a
, and simp
ely unlike th
loser to the
esting for sha
tones and s
ally recovera
dition, there
d with the T
is considere
er-pressuring
Hess signed
l in the Sa
ported they
ro Energys
ntract with pa
n the southe
n the shale
contains coa
d-party engi
e carbonace
stimate), res
his property.
EIA/ARI W
X-48
ne mudston
d, technicall
addition, the
d with the Pe
nas largest
attractive ba
ple structura
he marine-d
REM seque
ale but is no
shales in the
able shale o
e could be 1
Triassic shal
ed less pros
g are favorab
d joint study
ntanghu Ba
had previo
TerraWest
artner Petro
rn Junggar
potential o
aly carbonac
ineering con
eous shale o
stricted to a
World Shale Ga
nes and shal
ly recoverab
ere could be
ermian shale
shale resou
ased on their
al setting.
deposited No
ence in Aus
ot yet fully co
e Junggar B
il resources
19 Tcf of ris
e oil depos
spective due
ble.
y agreement
asin, an out
ously drilled
Energy sub
oChina. The
Basin. In ad
of the block
ceous mudst
nsultancy N
of the Juras
maximum d
s and Shale Oil
les in the Ju
ble shale oil
e 17 Tcf of ri
e oil deposit
urce base, th
r favorable t
However,
orth Americ
stralias Coo
ommercial.
Basin have a
, out of 134
sked, technic
sits, out of 1
e to lower TO
ts with Petro
tlying portion
35 wells in
bsidiary ope
e 655-km
2
Li
ddition to th
k. The 300
tone that wa
NSAI estimat
ssic Badaow
depth of 1,50

Resource Asses

unggar Basi
resources, o
isked, techn
ts, out of 17
he Junggar B
thickness, so
their lacus
can shales.
per Basin, w
an estimate
4 billion barre
cally recove
187 Tcf of r
OC, althoug
oChinas Tu
n of the ea
n this basin
erates a coa
iuhuanggou
e CBM pote
0-m thick (g
as deposited
ted the unr
wan Formati
00 m.
56
No s
ssment
n are
out of
nically
72 Tcf
Basin
ource
strine
The
which
d 6.7
els of
erable
risked
gh the
rpan-
astern
n with
albed
PSC
ential,
gross)
d in a
risked
on of
shale
XX. China

June, 2013

4 S
4.1 In
T
also has
Daqing c
natural g
shallow (
Songliao
biogenic
of ARI-pr
SONGLIAO
ntroduction
The Songliao
shale gas a
complex, cu
gas potentia
(<1.5 km) C
o Basin is re
origin.
57
Fig
roprietary da
Fig
S
BASIN
and Geolo
o Basin in no
and oil pote
urrently prod
l of the Son
Cretaceous s
elatively low
gure XX-33
ata used in c
gure XX-33. P
Songliao B
Source: ARI, 2
XX
gic Setting
ortheast Ch
ntial. The 1
ducing abou
ngliao becom
sandstone a
and much o
shows the
conducting th
Prospective S
Basin, Showing
2013.
EIA/ARI W
X-49
ina is an im
08,000-mi
2
ut 800,000 b
me recogniz
nd volcanic
of the conve
structural el
his study.
hale Oil Area
g ARI-Propriet

World Shale Ga
mportant petr
basin hosts
bbl/day. O
zed, with ne
reservoirs.
entional natu
ements of th
for the Cretac
tary Data Loc
s and Shale Oil
roleum prod
s Chinas lar
nly in recen
ew gas disco
The therma
ural gas is b
he basin as
ceous in the
cations.

Resource Asses

ucing region
rgest oil field
nt years has
overies in m
al maturity o
believed to
well as loca
ssment
n that
d, the
s the
mainly
of the
be of
ations
XX. China

June, 2013

S
along wi
These st
The main
settings,
concentr
F
Qingshan
well as i
these un
rocks of a

S

T
m thick (
mainly c
Sedimentary
th minor Up
trata rest un
n source ro
reflecting
rated in discr
igure XX-3
nkou (Late C
important re
nits consist o
alluvial and
High
ource: ARI, 2
The Nenjiang
both gross).
clay mineral
rocks in the
pper Jurassi
conformably
cks are Low
regional la
rete sub-bas
4 shows th
Cenomanian
eservoirs the
of black mu
fluvial origin
Figure
hlighting Pote
2013.
g Fm ranges
. Burial dep
s with som
XX
e Songliao B
ic, Tertiary
y on Precam
wer Cretace
ake anoxic
sins.
at the L. C
n) and Nenji
emselves).
dstone and
n overlie the
XX-34. Strati
entially Prospe
s from 70 to
pth ranges fro
me siltstone.
EIA/ARI W
X-50
Basin are pr
and Quater
mbrian to Pal
eous organic
events, bu
retaceous S
ang formatio
Deposited
shale interb
lacustrine sh
graphy of the
ective Lower C

240 m thick
om 300 to 2
TOC rang
World Shale Ga
rimarily Cret
nary strata,
leozoic meta
c-rich shales
ut they are
Shahezi, Ya
ons -- are th
under deep
bedded with
hale sequen
e Songliao Bas
Cretaceous So
, while the Q
2,500 m. Sh
ges from 1
s and Shale Oil
aceous non
totaling up
amorphic an
s which form
e unevenly
aojia -- and
he principal
pwater lacus
h gray siltsto
nces.
sin,
ource Rocks.
Qingshankou
hales and m
% to 5% (
Resource Asses

n-marine dep
to 7 km th
nd igneous r
med in lacus
distributed
in particula
source rock
strine condit
one. Silicic

u Fm is 80 to
udstones co
(maximum 1
ssment
posits
hick.
58

rocks.
strine
and
ar the
ks (as
tions,
clastic
o 420
ontain
13%),
XX. China

June, 2013

primarily
is therma
in the oil
T
hydrocar
Nenjiang
logs. Pe
reported
T
north plu
Four dist
phases.
basins, u
reduces
basins s
F
uplifts an
China bu
Formatio
2,500 m
E
volcanic
gas fields
the CO
2

strike-slip
Depressi
Carbon d
much les
permeab
Type I-II ke
ally within th
window (ma
These Cretac
rbon genera
g and Qingsh
etroChina c
that comme
The Songliao
unging zone
tinct tectonic
Prospectiv
usually half-
the shale pr
subsidence h
igure XX-35
nd depressio
ut still signif
on (K
2
qn), th
deep across
Elevated lev
reservoirs in
s have been
is mainly m
p faults.
62
F
ion of the So
dioxide conta
ss so for s
bility sandsto
erogen (in th
he oil to wet
aximum 0.9%
ceous sourc
ation capac
hankou shal
onsiders the
ercial oil prod
o Basin com
e, west slope
c phases oc
ve L. Cretac
-grabens tre
rospective a
history.
5, a regional
ons within t
ficant with m
he most pro
s the basin.
6
vels of carb
n the Songl
n discovered
magmatic in
For example
ongliao, whe
amination is
shale oil tar
ones than int
XX
he Qingshan
gas window
% R
o
).
ce rocks are
ity. Freque
les exhibit s
e Songliao
duction alrea
mprises six
e zone, nor
ccurred in th
ceous units
ending NE-S
area and als
l NW-SE tre
he Songliao
major norma
spective sha
61

bon dioxide
iao Basin.
d to date, tot
origin, emp
e, Figure XX
ere northeas
s a potential
rgets, althou
to low-perme
EIA/ARI W
X-51
nkou) and Ty
ws (0.7% to
believed to
ently over-p
trong gas sh
Basin to be
ady has occu
main struct
rtheast uplift
he basin: pre
are restrict
SW that rang
o requires a
nding struct
o basin. De
al faults. O
ale oil targe
are comm
About one d
taling 6.5 Bc
placed betw
X-36 shows
st-trending s
risk for shal
ugh it is m
eability shale
World Shale Ga
ypes II-III (N
1.5% R
o
), w
o have expu
pressured a
hows and tr
e prospectiv
urred from s
tural eleme
t, southeast
e-rift, syn-rif
ted to nume
ge from 300
an understan
tural cross-s
eformation is
Organic-rich
et, ranges fr
mon within
dozen high-
cf of proved
ween 72 and
seismic cros
strike-slip fau
le gas explo
more likely t
es.
s and Shale Oil
Nenjiang). T
while the you
lsed only so
and naturall
ravel time de
ve for shale
shale there.
5
nts: the cen
t uplift, and
ft, post-rift, a
erous small
0 to 800 mi
nding of eac
ection, show
s milder he
L. Cretaceo
rom 200-400
Cretaceous
concentratio
reserves.
d 48 Ma alo
ss-sections
ults are asso
oration in the
to have mig
Resource Asses

The Qingsha
unger Nenjia
ome 20% of
ly fractured
elays on aco
exploration
59

ntral depres
southwest
and compre
isolated sy
2
in size.
60
ch individual
ws the altern
re than in S
ous Qingsha
0 m thick an
sandstone
on (70-99%)
Isotopes ind
ong deep-se
in the Chan
ociated with
e Songliao B
grated into
ssment
ankou
ang is
f their
, the
oustic
n and
ssion,
uplift.
ssion
yn-rift
This
sub-
nating
South
ankou
nd 0-
and
) CO
2

dicate
eated
ngling
CO
2
.
Basin,
high-
XX. China

June, 2013

Figure
Qin

Source: W

Figure XX

Source: L

e XX-35. Regi
ngshankou Fo
Wu et al., 2009
X-36. Seismic
trending strik
Luo et al., 201
onal NW-SE S
ormation (K2q
9.
c cross sectio
ke-slip faults a
1.
XX
Structural Cro
qn) is about 20
ns in Changlin
associated wi
EIA/ARI W
X-52

ss-section of
00-400 mthick

ng Depression
th CO
2
contam

World Shale Ga
Songliao Bas
k and 0-2,500 m
n of Songliao
mination (scal
s and Shale Oil
sin. Organic-r
mDeep Acros
Basin, showi
le, location no
Resource Asses

rich Cretaceou
ss the basin.
ng deep north
ot noted).
ssment
us
heast-
XX. China

June, 2013

4.2 R
L
area of
organic-r
ft deep, w
assumed
parts of t
4.3 R
T
estimated
barrels o
located in
likely du
recovera
risked sh
T
structura
of Wyom
thermal m
4.4 R
D
potential
area. Ho
S
deep hor
Songliao
depth of
The Jilin
isolated
slickwate
Reservoir Pr
ower Cretac
approximate
rich portion o
with 4.0% TO
d to be abou
the basin bu
Resource As
The Lower C
d to hold ap
of risked, te
n isolated ha
ctile nature
ble shale ga
hale gas in-p
The Songliao
lly complex
ming, which f
maturity and
Recent Activ
During 2010
at giant Da
owever, Hes
Separately, t
rizontal well
o Basin. Th
about 3,600
n wells typic
using sliding
er, and propp
roperties (P
ceous lacust
ely 6,900 m
of the Qings
OC that is in
ut 10% in sh
t have not b
ssessment
Cretaceous
pproximately
echnically re
alf-graben ri
e of the roc
as resources
place.
o Basin lack
and of lacu
formed in an
less faulted
vity
Hess and P
qing oil field
ss last updat
he Jilin Oilf
s in a tight
hese wells t
0 m, but the
cally drilled
g sleeves.
pant was res
XX
Prospective
trine mudsto
mi
2
, based o
shankou mud
n the volatile
hale reservo
een quantifi
lacustrine m
y 229 billion
ecoverable s
ft basins an
ck. In add
s associated
ks a suitable
strine sedim
n inter-monta
d.
PetroChina
d in the Song
te on this pro
field Compa
sandstone g
targeted the
e technology
1,200-m ho
However, th
sin-coated s
EIA/ARI W
X-53
Area)
ones in the
on depth an
dstones tota
oil window
irs. Natural
ed.
mudstones
barrels of r
shale oil res
d may be di
ition, there
d with the sh
e commercia
mentary orig
ane lake set
reportedly c
gliao Basin a
oject came o
ny has drille
gas reservoi
e low-perme
y also could
orizontal late
he frac fluid
and. All ten
World Shale Ga
Songliao Ba
nd thermal m
al about 1,00
(average 0.9
fractures h
and shales
risked shale
sources. N
fficult to ext
may be 1
hale oil depo
al North Am
in. The Eoc
tting, is a po
conducted a
and also dis
on January 2
ed and mas
ir at Changl
eability Deng
d be applied
erals that we
d used was
n wells were
s and Shale Oil
asin cover a
maturity ma
00 ft thick an
9% R
o
). Ca
ave been re
in the Son
e oil in-place
Note that the
ract due to t
6 Tcf of ris
osits, out of
merican shale
cene Green
ossible analo
a joint study
scussed exp
26, 2011.
ssively fractu
ing gas field
glouku tight
d to tight/sha
ere stimulat
heavy guar
reportedly s
Resource Asses

a net prospe
apping. The
nd average 5
rbon dioxide
eported in ce
ngliao Basin
e with 11.5 b
ese deposits
the high-clay
sked, techn
about 155 T
e analog, as
River Form
og albeit of
of shale/tig
panding the s
ured at leas
d in the sou
t sandstone
ale oil reserv
ted in 11 st
r gel, rather
successful.
63
ssment
ective
e net
5,500
e was
ertain
n are
billion
s are
y and
nically
Tcf of
s it is
mation
lower
ght oil
study
st ten
thern
at a
voirs.
tages
r than
3

XX. China

June, 2013

5 O
S
have sha
Hami Ba
lacustrine
southeas
mudston
T
high clay
produced
commerc
mudston
Basin (H
Permian
Ordos Ba
prospect

REFERE

1
Zong, G
Unconve
Case H
Internati
China, 9
2
Eyeton,
3
Li, J., X
Sour Ga
36, p. 17
4
Hao, F.,
Oil Crac
America
5
Zou, C.
Charact
Sichuan
OTHER BAS
Several othe
ale potential
asin, east o
e in origin,
st of the Tari
e source roc
The Ordos B
y content (4
d gas from
cially produc
es in the Or
uabei) is a
source rock
asin and not
ive areas.
ENCES

G., Wang, L.
entional Gas
History, Oper
ional Associa
9-11 July.
D., BP Group
Xie, Z.Y., Dai,
as Accumulat
703-1716.
Guo, T.L., Z
cking and The
an Association
N., Xu, C.C.,
eristics and F
n Basin. Petr
SINS
r sedimenta
that could n
of the larger
oil- to wet
im, comprise
cks with high
Basin has sim
40-60%). It
the shale f
ctive on a lar
rdos are coa
conventiona
k shales tha
t considered

, Deng, S.F.
in Asia Pacifi
ration, and E
ation of Drillin
p Head of Res
, J.X., Zhang
tions in the N
hu, Y.M., Cai
ermochemica
n of Petroleum
Wang, Z.C.,
Forming Con
roleum Explor
XX
ary basins in
not be quant
r Junggar,
t gas-prone
es isolated fa
h TOC; these
mple structu
is not clear
formation or
rge scale in
aly and appe
al oil and ga
at are stratig
d prospective
, Chong, K.K
ic Region: Ch
Execution.
ng Engineers,
search and T
, S.C., Zhu,
Northeastern
i, X.Y., Zou, H
l Sulfate Red
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Multistage Fra
m Engineers,
c Conference
Association
m AAPG Inte
XX

o, Y., 2009.
Regions in the
He, Z.L., Wa
ulation in the
ciation of Petr
Associates), 2
, Shale Gas,
of December
., Wang, S.B.
oirs in the So
nt Developme
Y.L., and Z
aphic Plays: U
tion of Petrole
S., Wang, J.G
Oil and Gas
Convention, N
Q.R., 2010.
na, and Imp
sts, vol. 94, p
.Q.,, and Hua
ngshankou Fo
e Implications
Sun, F.J.,
d Distribution
emistry: Rece
Pang, Q.P., L
acturing Mee
IADE/SPE
& Exhibition,
of Petroleum
ernational Co
EIA/ARI W
X-58

Research
e Junggar Ba
ng, F.R., Li,
e Central Jun
roleum Geolo
2011. Estim
and Tight G
r 31, 2010. O
., 2011. The
ongliao Basin
ents, Applicat
Zeng, H.L.,
Upper Cretace
eum Geologis
G., Liu, C.Y.,
in Songliao B
New Orleans,
Structural a
plications fo
. 533-566.
ang, Q.H., 20
ormation from
. Earth and
Wang, S.P.,
of CO
2
Gas
nt Developm
Liu, G.Y., Zhu
t the Changl
155911, Inte
Tianjin, Chin
m Geologists,
onference and
World Shale Ga

and Applicat
asin. Progr
S.F., and T
ggar Basin,
ogists, Bulletin
mate of Gro
Gas Prospect
October 4, 27
e Formation C
n, NE China.
tions, and Tec
2011. Se
eous, Sifangt
sts, v. 95, p. 2
and Liang, S
Basin, Easte
Louisiana, A
and Sedimen
r Hydrocarb
009. The Flo
m the Songliao
Planetary Sc
, Wang, Y.,
Pools in So
ents, Applica
u, Z.P., Li, B.S
ing Tight Gas
rnational Ass
na, 9-11 July.
Search and
d Exhibition,
s and Shale Oil

tion of the Fo
ress in Geop
Tang, D.Q., 2
Northwest Ch
n, vol. 94, p. 9
oss (100 Per
ts Located in
7 p.
Conditions of
AAPG Hed
chnologies.
equence Stra
tuozi Area, S
241-265.
S.J., 2010.
rn China. A
April 11-14.
ntary Evolutio
bon Prospect
oating Astron
o Basin of No
cience Letters
and Ran, Q
ngliao Basin.
ations, and Te
S., and Duan
s Field Deve
sociation of
Discovery A
Singapore,
Resource Asses

ormation Pre
physics, vol. 2
2010. Petro
hina: Insights
937-955.
rcent) Prosp
n the Liuhuan
f Shallow Ga
dberg Confer
May 9-12, B
atigraphy, Se
outhwest Son
Accumulatio
AAPG Search
on of the Sou
tivity. Ame
omical Time
ortheast Chin
s, vol. 278, p
Q.C., 2011.
. AAPG He
echnologies.
n, Y.W., 2012
lopment Stra
Drilling Engin
Article, Januar
16-19 Septe
ssment

essure
24, p.
oleum
s from
ective
nggou
as and
rence,
eijing,
eismic
ngliao
n and
h and
uthern
erican
Scale
a and
. 308-
The
dberg
May
. The
ategy.
neers,
ry 31,
mber,
XXI. Mongo

June, 2013

XXI.
SUMMA
M
eastern
Tamtsag
China --
Tsagaan
Sou

olia
MONGO
ARY
Mongolia has
and southea
and East G
contain lac
tsav and eq
urce: ARI, 2013
OLIA
s limited bu
astern portio
Gobi rift bas
custrine mu
uivalent form
Figure

XX
ut locally sig
ons of the
sins - - whi
dstone and
mations.
e XXI-1. Sedi
EIA/ARI W
XI-1
gnificant sha
country, Fig
ch resemble
coaly sour
mentary Basi
World Shale Ga
ale gas and
gure XXI-1.
e the oil-pro
rce rocks w
ns of Mongol
s and Shale Oil
d oil potentia
The narrow
oductive bas
within the Lo
ia
Resource Asses

al located in
w and elong
sins of north
ower Cretac
ssment
n the
gated
heast
ceous
XXI. Mongo

June, 2013

R
billion ba
place, Ta

olia
Risked, techn
arrels of shal
ables XXI-1 a
Table
Tabl
nically recov
le oil out of 5
and XXI-2.
e XXI-1. Shale
e XXI-2. Shale
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir
AverageT
Thermal M
Clay Cont
R
e
s
o
u
r
c
e
Gas Phas
GIP Conc
Risked G
Risked Re
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospecti
Thicknes
Depth (ft)
B
a
s
i
c
D
a
t
aBa
S
Depos
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservo
Average
Therma
Clay Co
R
e
s
o
u
r
c
e
Oil Pha
OIP Co
Risked
Risked
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospec
Thickne
Depth (f
B
a
s
i
c
D
a
t
a
Depo
XX
verable reso
55 Tcf and 8

e Gas Resourc
e Oil Resourc
Organically
Net
Interval
Average
r Pressure
TOC (wt. %)
Maturity (%Ro)
tent
se
centration (Bcf/mi
2
IP (Tcf)
ecoverable(Tcf)
iveArea(mi
2
)
s (ft)
asin/Gross Area
haleFormation
Geologic Age
sitional Environme
Organica
Net
Interval
Average
oir Pressure
eTOC (wt. %)
al Maturity (%Ro)
ontent
ase
ncentration (MMb
OIP (B bbl)
Recoverable(B b
ctiveArea(mi
2
)
ess (ft)
ft)
Basin/Gross Area
ShaleFormation
Geologic Age
ositional Environ
EIA/ARI W
XI-2
ources are e
85 billion bar
ces and Geolo

ces and Geolo
East G
(24,560
Tsagaa
L. Creta
Lacus
4,69
y Rich 600
300
6,000 - 1
8,00
Norm
4.0%
0.80
Medi
Assoc
31.
29.
2.3
2
)
ent
East
(24,56
Tsaga
L. Cret
Lacu
4,
ally Rich 6
3
6,000 -
8,
No
4.
0.8
Me
O
4
4
1
)
bbl/mi
2
)
bbl)
a
n
ment
World Shale Ga
estimated at
rrels of riske
ogic Propertie
gic Properties
Gobi
0mi
2
)
T
(6
antsav Tsa
ceous L. C
trine L
90
0
0
10,000 5,0
00
mal
%
0%
ium M
. Gas As
3
3
3
t Gobi
60mi
2
)
T
(6,
aantsav Tsa
taceous L. C
ustrine La
690
600
300
- 10,000 5,0
000
rmal N
.0%
80%
dium M
Oil
5.5
43
1.7
s and Shale Oil
t 4 Tcf of sh
ed shale gas
es of Mongolia

s of Mongolia.

Tamtsag
6,730mi
2
)
agaantsav
Cretaceous
acustrine
5,440
500
250
000 - 9,000
7,000
Normal
3.0%
0.80%
Medium
ssoc. Gas
23.6
25.7
2.1
Tamtsag
,730mi
2
)
agaantsav
Cretaceous
acustrine
5,440
500
250
00 - 9,000
7,000
Normal
3.0%
0.80%
Medium
Oil
39.3
43
1.7
Resource Asses

hale gas an
s and shale o
a.
.
ssment
d 3.4
oil in-
XXI. Mongo

June, 2013

T
forming c
areas ran
by extens
In
Devonian
oil seeps
discovere
Mongolia
M
low roya
basins h
developm
shale le
evaluatin
INTROD
W
density
helping t
per-capit
consump
including
M
relatively
at about
near the
pipeline
while add
T
two basin
olia
The organic-
combustible
nging from 7
sive faulting
n addition,
n age that m
s have bee
ed. Data o
a are covere
Mongolia has
lty (12.5%)
ave been le
ment of deep
asing or ex
ng the Khoid
DUCTION
With a popula
only 1.8 in
o boost Mon
ta GDP is ex
ption is rising
g what soon
Most of Mong
y shallow an
5,000 bbl/da
e border wit
infrastructur
ditional capa
Three of Mon
ns could be
rich shales
e oil shale, b
7,000 to 8,00
.
northweste
more closely
n reported
n this Devo
d by non-pro
s an establis
and corpora
eased for co
p shale oil/g
xploration d
Ulaan Bula
ation of abo
nhabitants p
ngolias GDP
xpected to re
g rapidly as t
may be the
golia is cove
d sparsely d
ay, limited to
th China. M
re. Petroleu
ability may b
ngolias sed
quantitative
XX
of Mongolia
but reach oi
00 ft. Howe
ern Mongol
resemble N
in this rem
nian shale d
ospective ba
shed conven
ate income
onventional
gas resource
drilling activ
g oil shale d
out 3 million
per km
2
or a
P by an exp
each $10,00
the country d
worlds large
ered by igne
drilled sedim
o two oil fiel
Mongolia ha
um drilling se
e sourced o
dimentary ba
ely evaluated
EIA/ARI W
XI-3
a are therm
il maturity (m
ver, these tr
ia has ma
North Americ
ote region
deposit are
asement tha
ntional oil an
tax (25%).
petroleum e
es have not
vity has oc
deposit.
people, Mon
about half th
ected 25% p
00 by 2020,
develops its
est copper m
eous and m
mentary basin
ds in the Ea
as no comm
ervices are a
out of oil field
asins may h
d; geologic
World Shale Ga
mally immatu
maximum R
roughs are r
arine-deposit
ca commerc
but no sign
extremely l
t lacks sedim
nd gas inves
Nearly all o
exploration.
yet been pr
ccurred, alth
ngolia has t
hat of Cana
per annum o
up three-fol
s considerab
mine at Oyu
metamorphic
ns, Figure X
ast Gobi Bas
mercial natu
available loc
ds in northea
have limited
data are sp
s and Shale Oil
ure near the
R
o
of 0.8 to
relatively sm
ted organic
cial shale lith
nificant oil f
imited. Mos
mentary stra
stment regim
of the count
Regulation
romulgated
hough Petro
the worlds l
ada. Mining
over the com
ld from the c
ble mineral a
Tolgoi.
rocks but t
XXI-1. Oil pr
sin in southe
ural gas pro
cally in the
ast China.
shale oil p
parse. The m
Resource Asses

e surface, lo
1.0%) in de
mall and disru
c-rich shale
hology. Spo
fields have
st other are
ata.
me with rela
trys sedime
ns governing
in Mongolia
o Matad Lt
owest popu
g developme
ming decade
current leve
nd coal dep
there are se
roduction is
eastern Mon
oduction nor
East Gobi B
otential, but
most prospe
ssment
ocally
eeper
upted
es of
oradic
been
eas in
atively
entary
g the
a. No
td. is
lation
ent is
e and
l. Oil
osits,
everal
small
ngolia
r gas
Basin,
t only
ective
XXI. Mongo

June, 2013

areas for
These ba
has sma
In
Mongolia
although
formed o
Mongolia
Carbonife
Paleozoi
TOC rep
source ro
1. E
1.1 In
T
with Chin
central C
strike wit
more ge
structura
T
containin
Lower Cr
deposited
depths, b

olia
r both conve
asins are re
ll commercia
n addition, th
a close to th
public data
on platforms
an basemen
erousPerm
c collisions
portedly is lo
ocks are rem
EAST GOBI
ntroduction
The 25,000-m
na, accessib
China. Mon
th and simil
eologic data
l geology wi
The East Go
ng Jurassic t
retaceous s
d under lac
becoming oil
entional and
latively sma
al oil product
here is a no
he border w
a there are
s of the Sib
nt. Devonia
mian coal a
and represe
ow (0.58% to
mote, poorly
I BASIN
n and Geo
mi
2
East Gob
ble along th
golias only
lar to oil-pro
a are availa
th these adj
obi Basin co
to Early Cret
hales that o
ustrine cond
l prone in the

XX
d shale oil e
ll and some
tion.
on-productive
with Russia t
lacking. Th
berian passiv
n shale also
and coaly
ent the begin
o 1.68%) an
understood,
logic Setti
bi Basin is lo
he main hig
significant c
oductive Me
able. The
oining basin
omprises a
taceous fluv
ccur in the E
ditions. The
e deep troug
EIA/ARI W
XI-4
exploration a
what comple
e and poorly
that may ha
hese include
ve margin,
o is present
mudstone
nning of non
nd oil prone
, and appea
ng
ocated in so
hway betwe
commercial
esozoic rift b
East Gobi
ns in northwe
number of
vial to lacust
East Gobi B
ermal matur
ghs that sou
World Shale Ga
are the East
ex structura
y defined De
ave conventi
e Riphean
predating a
t here and
samples im
n-marine de
(T
max
of 429
r to have litt
outheastern
een the cap
oil-producin
basins in no
Basin shar
est China.
discontinuou
trine sedime
asin frequen
rity of the s
rced the sha
s and Shale Oil
t Gobi and
lly; only the
evonian dep
ional and sh
Cambrian c
assembly of
oil seeps h
mmediately
eposition in c
9 to 441).
1

le shale oil p
Mongolia clo
pitol Ulan B
ng region, th
ortheast Chi
res similar
us, fault-bou
ents, Figure
ntly have hig
hale is imm
allow conven
Resource Asses

Tamtsag ba
East Gobi B
posit in north
hale oil pote
carbonates w
the presen
ave been n
postdate t
central Mong
Moreover, t
potential.
ose to the b
ataar and n
he basin is a
ina, where m
stratigraphy
unded rift b
XXI-2. The
gh TOC but
mature at sh
ntional oil fie
ssment
asins.
Basin
hwest
ential,
which
nt-day
noted.
these
golia.
these
order
north-
along
much
y and
asins
thick
were
hallow
elds.
XXI. Mongo

June, 2013

Fi

T
defined
depressio
fault-bou
areas (>
(3,090 m
troughs,

olia
igure XXI-2. S
Source: ARI,
The East Gob
broadly by
ons, separa
nded trough
6,000 ft) co
mi
2
) and Zuu
some formin
Stratigraphy o
, 2013
bi Basin con
gravity and
ated by base
hs with good
over only a
nbayan (1,6
ng conventio

XX
of Shale Sourc
ntains four m
d seismic da
ement highs
d quality sou
relatively s
600 mi
2
), Fig
onal oil traps
EIA/ARI W
XI-5
ce Rocks and
main sub-bas
ata.
2
The s
that are ex
urce rock mu
mall area.
gure XXI-3.
s.
World Shale Ga
Conventiona
sins within a
sub-basins
xposed over
udstones ca
The larges
Uplifted fau
s and Shale Oil
l Reservoirs in
a 200- by 40
contain disc
r much of th
n occur. Ho
st sub-basin
ult blocks oc
Resource Asses

n Mongolia

00-mi area th
continuous
he region. D
owever, the
ns are the U
ccur within t
ssment
hat is
deep
Deep,
deep
Unegt
these
XXI. Mongo

June, 2013

Figure
Source: Ma

C
from two
million ba
produced
conventio
the Tsag
shales.
gravity av
E
including
(left-later
Jurassic
compres
displacem
Cretaceo
B
of the Pa
Jurassic
sandston
olia
e XXI-3: Seis
nas Petroleum C
Conventional
o small antic
arrels from s
d smaller v
onal reservo
gaantsav and
Original oil
verages 28
Each sub-bas
g thick lacust
ral) faults bo
to Early C
sion and in
ment along
ous east-wes
Basement in
aleozoic Tav
Khamarkho
nes and lacu
mic Line Acro
Showing the
Corp., 2012
reservoirs
clinal oil fiel
shallow dept
volumes fro
oirs compris
d Zuunbayan
in place at
API.
3

sin contains
trine-deposit
ound the su
Cretaceous
version alon
g northeast
st shortening
the East Go
van Tolgoy
oovor Forma
ustrine-deltai
XX
oss the Zuunb
eir Relatively S
in the East
ds. The Zu
ths (2,000 to
m depths o
ing lacustrin
n formations
the two fie
up to 13,00
ted mudston
ub-basins.
rifting (nort
ng pre-exist
faults dur
g.
obi Basin co
sequence.
ation, a pre-
ic shale, inc
EIA/ARI W
XI-6
bayan and Une
Small Size and
Gobi Basin
uunbayan o
o 2,500 ft), w
of 4,265 to
ne siltstones
s, which wer
lds totaled
00 ft of Midd
ne. Northeas
The structu
h-south ext
ting faults, r
ring the M
onsists of me
The oldest
-rift sequenc
luding thin c
World Shale Ga
egt Sub-basin
d Complex St
n currently p
il field has
while the nea
o 4,600 ft.
s, sandstone
re sourced b
an estimate
le Jurassic t
st-trending,
ural history
tension), Ea
renewed sed
Mid-Cretaceo
etamorphose
t sedimentar
ce consisting
coal seams.
s and Shale Oil
ns within the E
tructure.
produce abo
produced a
arby Tsagaa
Both field
es and cong
by the interb
ed 150 Mmil
to Tertiary s
mainly norm
of the regio
arly Cretace
dimentation
ous, followe
ed sandston
ry unit is th
g of up to 2
Although a
Resource Asses

East Gobi Bas
out 5,000 bb
total of abo
n Els oil field
ds produce
glomerates w
bedded lacus
llion barrels
sedimentary
mal and strik
on includes
eous north-s
and right-la
ed by post
ne and carbo
e Lower to
2,500 ft of f
a potential so
ssment
in
bl/day
out 6
d has
from
within
strine
. Oil
rock,
ke slip
Mid-
south
ateral
t-Late
onate
Mid
fluvial
ource
XXI. Mongo

June, 2013

rock, the
overlying
conglome
O
Lower Cr
sequence
shale se
tuffs, and
sandston
A
laminated
grained
interprete
by micro
1.5% to
0.5 and 1
middle o
indicates
T
consists
Hauterivi
is coaly,
developm
D
East Gob
suggests
a lower
numerou

olia
e Khamarkho
g this unit is
erate with m
Overlying the
retaceous Ts
e 1,000 to 2
ction interbe
d basalt. Th
ne reservoir
A 125-m thick
d mudstone
units are in
ed as distal
-lamination,
15% for sha
10, respectiv
oil window. O
s a lacustrine
The other po
of up to 3,2
ian to Albian
probably cla
ment.
Deep portion
bi Basin ma
s that peak o
rate to the
us closely sp
oover seldo
s the Sharly
minor lacustri
e Sharlyn F
sagaantsav
2,300 ft thick
edded with d
he unit grade
at the Tsaga
k core sectio
e and micrit
nterbedded
lacustrine tu
biogenic py
ale, mainly o
vely, indicat
Oil quality is
e algal sourc
otential shale
200 ft of sa
n time under
ay-rich, and
s (6,000 to 1
y be oil pron
oil generatio
present day
paced faults t

XX
om crops ou
yn Formation
ine shale.
Fm are the
and Zuunba
k that locally
dark gray sa
es upward fr
aan Els and
on in the Tsa
te, dolomitic
with grains
urbidites. An
yrite, high TO
oil-prone Typ
ing good qu
s waxy with
ce.
4

e target is th
ands and mi
r non-marine
likely less b
10,000 ft) of
ne and offer
n occurred d
y. However
that may lim
EIA/ARI W
XI-7
ut and rema
n, containing
primary sha
ayan formati
can contain
andstones a
om alluvial f
Zuunbayan
agsaantsav
c breccia, a
stone and t
noxic, stratif
OC, and car
pes I and II
ality source
h 20-35% pa
he Lower C
inor interbed
e to paralic e
brittle, thus n
f the Unegt,
r potential s
during the C
r, the East G
mit its potenti
World Shale Ga
ains poorly u
g up to 600
ale targets i
ons. The Ts
n thick oil sha
and conglom
fan to lacust
oil fields.
Fm was des
and calcare
thin, norma
fied lake-bot
rbonate prec
kerogen. S
rocks. The
araffin and
retaceous Z
dded shales
environment
not a very pr
Zuunbayan
hale oil targ
Cretaceous (
Gobi Basin
al for shale
s and Shale Oil
understood.
0 ft of fluvia
in the East
sagaantsav
ale, is mainl
merates, silts
trine facies,
scribed as co
eous siltston
ally graded
ttom conditio
cipitation. T
S1 and S2 v
ermal maturi
high pour p
Zuunbayan F
s and tuffs
ts. However
rospective ta
, and other s
gets. Burial
(90 to 100 M
is structura
oil developm
Resource Asses

Unconform
al sandstone
Gobi Basin
Fm, a late s
ly an organic
stones, brigh
becoming a
onsisting of
ne. These
sandstone
ons are indic
TOC ranges
values are a
ty is immatu
point. Oil ty
Formation, w
deposited d
r, the Zuunb
arget for sha
sub-basins i
history mod
Ma), continui
lly complex,
ment.
ssment
mably
e and
n, the
synrift
c-rich
ht-red
a lithic
finely
fine-
beds
cated
from
above
ure to
yping
which
during
bayan
ale oil
in the
deling
ing at
, with
XXI. Mongo

June, 2013

1.2 R
W
in the Ea
300 ft (n
estimated
the silty l
1.3 R
T
and 43 b
1.7 billio
closest in
the shall
productiv
1.4 E
N
Calgary-b
targets in
Limited is
deposit r
containin
liter of 29

2 T
2.1 In
A
extreme
number o
300 km,
Cretaceo
olia
Reservoir P
Within the 4,6
ast Gobi Ba
et) of organ
d 4.0% and
ithology. Th
Resource A
The Tsagaan
billion barrels
n barrels of
nternational
low western
ve.
Exploration
No shale oil
based Mana
n this basin
s evaluating
reportedly h
ng carbonate
9 API oil fro
TAMTSAG
ntroduction
Although geo
eastern Mo
of isolated, f
Figure XXI-
ous Tsagaan
Properties
690-mi
2
high
asin, the Low
ic-rich lacus
is oil-prone
he reservoir
Assessmen
ntsav Forma
s of risked s
shale oil m
analog appe
n Cooper Ba
n Activity
or shale ga
as Petroleu
n but has no
g Khoid Ulaa
has similar
e, quartz, an
om a 10-kg s
BASIN
n and Geo
ologically sim
ngolia has n
fault-bounde
-4. Just as
ntsav and Zu
XX
(Prospecti
h-graded pro
wer Cretace
strine shale
e (R
o
averag
pressure gra
nt
ation contain
shale oil in-p
may be techn
ears to be th
asin, althou
as exploratio
m Corp. is
ot discussed
an Bulag oil
mineralogy
nd feldspar m
sample.
6

logic Setti
milar to the
no commerc
ed troughs th
in the East
uunbayan fo
EIA/ARI W
XI-8
ive Area)
ospective are
eous Tsagaa
at an averag
ging 0.8%).
adient is nor
ns an estima
place, of wh
nically recov
he oil-prone
gh these ha
on or leasing
conducting
d its shale
shale depos
to the Gree
mineralogy.
ng
East Gobi
cial oil and g
hat trend WS
t Gobi Basin
rmations, wi
World Shale Ga
ea of the Un
antsav Form
ge depth of
Porosity m
rmal.
ated 29 Tcf
hich 2.3 Tcf
verable (both
window of t
ave not yet
g has occur
petroleum
potential.
5

sit in Block
en River Fo
Extended F
Basin, the
gas product
SW-ENE alo
n, potential
ith TOC ave
s and Shale Oil
negt and Zu
mation conta
8,000 ft. T
may be signif
of risked sh
of associate
h risked), T
the REM lac
t been prov
rred in the E
exploration
London-bas
IV for poten
ormation in
Fischer Ana
6,700-mi
2
T
tion. The ba
ong an exten
source rock
eraging abou
Resource Asses

unbayan tro
ins an estim
TOC average
ficant (6%) g
hale gas in-
ed shale gas
able XXI-1.
custrine sha
ven commer
East Gobi B
for convent
sed Petro M
ntial mining.
Wyoming,
alysis yielded
Tamtsag Bas
asin compris
nt of about 8
ks are the L
ut 3%.
ssment
oughs
mated
es an
given
place
s and
The
les in
rcially
Basin.
tional
Matad
This
USA,
d one
sin in
ses a
80 by
Lower
XXI. Mongo

June, 2013

Figure

In
faulted g
Cretaceo
blocks a
towards
intrusive

olia
XXI-4. Weste
Shales a
Source: P
nternally the
grabens crea
ous transpre
nd anticlines
the northea
rocks.
8

ern Tamtsag B
are Buried to O
Petro Matad Ltd
e Tamtsag B
ated by rifti
ession forme
s. Structura
ast. The b

XX
Basin Showin
Over 5,000 ft a
., 2012
Basin comp
ng and Mid
ed structura
al complexity
asement co
EIA/ARI W
XI-9
g Small Isolat
and May Reach
rises a num
d-Cretaceous
al traps in c
y is most pr
onsists of D
World Shale Ga
ted Structural
h Oil-window
mber of upli
s basin inve
conventional
ronounced i
Devonian to
s and Shale Oil
Troughs whe
Thermal Matu
fted fault bl
ersion, Figu
l targets, no
n the southw
Permian m
Resource Asses

ere Source Ro
urity.

locks and d
ure XXI-5.
7

otably tilted
west, decrea
metamorphic
ssment
ock
down-
Late
fault
asing
c and
XXI. Mongo

June, 2013

Figure XX

T
volcanic
fluvio-de
mudston
to andes
consist o
lacustrine
of the ba
T
stratigrap
experien
to the T
basins.
Cretaceo
Basin. T
levels.

olia
XI-5. Seismic l
Source: Petro
The Tamtsag
sedimentar
ltaic conglo
es and shale
sitic) with m
of fluvio-de
e shales. Y
sin, conceal
The Tamtsag
phically and
ced shale ex
amtsag, the
Coal depos
ous Nantun
The Hailaer
line in the Tsa
o Matad, 2010
g Basin cont
ry rocks. G
merates an
es. The bas
minor interbe
ltaic conglo
Younger Cen
ling the Mes
g Basin is
genetically
xploration, it
e Hailaer Ba
sits and car
Formation a
Basin oil fie
XX
amtsag Basin
tains up to 1
Grain texture
d sandstone
sal Upper Ju
edded sedim
omerates an
nozoic congl
sozoic units.
9
on trend w
similar Mes
t is oil produ
asin actually
rbonaceous
are consider
elds produce
EIA/ARI W
XI-10
Showing Sou
13,000 ft of
e fines upw
e in the low
urassic cons
ments. The
nd sandsto
omerates, s
9

with the Ha
ozoic rift ba
ucing and thu
y comprises
mudstones
red the majo
e with high w
World Shale Ga
urce Rocks Bu
Mid-Jurassic
ward from co
wer section
sists mainly o
e overlying
nes that fi
sandstones,
ailaer Basin
sin. Althoug
us has much
s over 20 in
s within the
or petroleum
water cut an
s and Shale Oil
uried to a Dept
c to Tertiary
oarse contin
transitionin
of volcanic d
Lower Cret
ne upward
and mudsto
n of northe
gh the Haila
h better data
ndividual fau
upper porti
m source roc
nd have loca
Resource Asses

th of about 6,0
y non-marine
nental rift-fil
ng into lacus
deposits (ba
taceous dep
into deepw
ones cover m
astern Chin
aer Basin ha
a control. S
ult-bounded
on of the L
cks in the Ha
ally elevated
ssment
000 ft.
e and
l and
strine
asaltic
posits
water
much
na, a
as not
imilar
sub-
Lower
ailaer
d CO
2

XXI. Mongo

June, 2013

T
lacustrine
ranges fr
0.7%) be
samples
occurs in
In additio
levels of
the Yans
Figure XX

olia
The Nantun
e environme
rom 0.23% t
elow a dept
above 435
n the Hailaer
on, the Lowe
up to 90%,
shan Orogen
XI-6. Vitrinite
of C
Formation w
ents. Organ
to 16.67%, a
h of about
5C, indicati
r Basin, evid
er Cretaceou
which has b
ny.
12

Reflectance I
Chinas Hailae
Sou
XX
was deposit
nic carbon c
averaging 2
6,500 ft, Fig
ing oil-pron
ently due to
us conventio
been isotop
Increases to A
er Basin, Adja
urce: Liu et al., 2
EIA/ARI W
XI-11
ted within fa
content of th
.56%. The
gure XXI-6,
1
e kerogen.
1
poor reserv
onal sandsto
ically linked
About 0.8%Ro
cent to the Ta
2009
World Shale Ga
an delta fron
he organic-ri
mudstone b
10
while T
max
11
Limited
voir condition
one reservoi
with granite
o at a Depth o
amtsag Basin
s and Shale Oil
nt, pro-fan d
ch mudston
becomes oil-
x
averages 4
conventiona
ns and high
irs can conta
e intrusions
f 2.5 Kmin th
in Mongolia.
Resource Asses

delta, marsh
ne within this
-prone (R
o
a
447C with
al oil produ
water satura
ain elevated
emplaced d
e Wuerxun Tr
ssment
h and
s unit
above
most
uction
ation.
d CO
2

during
rough
XXI. Mongo

June, 2013

2.2 R
W
small tro
an estim
TOC ave
significan
2.3 R
T
barrels o
may be
appears
Basin, al
2.4 E
N
does the
conductin
REFERE

1 Petroleum
2 Prost, G.
Petroleum
3 Pentilla, W
4 Johnson,
Characte
Geologist
5 Manas Pe
6 Petro Mat
7 Petro Mat
8 Henk, A.,
Mongolia
9 Geerdtz, P
Poster, T
olia
Reservoir P
Within the 5,4
ughs within
ated 250 fe
erages an e
nt (6%) given
Resource A
The Tsagaan
of shale oil in
technically
to be the oil
though thes
Exploration
No shale oil o
e basin pro
ng exploratio
ENCES

m Authority of Mo
.L., 2004. Tec
m Geologists, Bu
W.C., 1994. The
C.L., Greene,
ristics and Corr
ts, Bulletin, vol.,
etroleum Corp., C
tad Limited, Inter
tad Limited, Corp
Davaa, B., Gee
. Geophysical
P., Vogler, M., D
SK 11 Goettinge
Properties
440-mi
2
high
the Tamtsag
et (net) of o
estimated 3
n the silty lith
Assessmen
ntsav Forma
n-place, of w
recoverable
l-prone wind
e have not y
n Activity
or shale gas
oduce oil or
on drilling fo

ongolia, persona
ctonics and Hyd
ulletin, vol., 88, p
e Recoverable O
T.J., Zinniker,
relation of Oil a
87, p. 817-846.
Corporate Prese
rim Results for th
porate Presentat
erdts, P., Vogle
Research Abstra
Davaa, B., and H
en,
XX
h-graded pro
g Basin, the
organic-rich
.0% and is
hology.
nt
ation contain
which 2.1 Tcf
(both riske
dow of the R
yet been pro
s exploration
r gas from
r convention
al communication
drocarbon Syste
p. 483-513.
Oil and Gas Reso
D.A., Moldow
nd Nonmarine

entation, Septem
he Six Months E
tion, November
r, M., and Wem
acts, vol. 9, p. 24
Henk, A., 2006.
EIA/ARI W
XI-12
ospective are
Lower Creta
lacustrine s
oil-prone (R
ns an estima
f of associate
ed), Table X
REM lacustrin
oven comme
n or leasing
conventiona
nal reservoir
n, July 2011.
ems of the Eas
ources of Mongo
an, J.M., Hend
Source Rocks f
mber, 2012, 29 p
Ended 30 June, 2
2010.
mmer, K., 2007.
415.
Evolution of th
World Shale Ga
ea that is di
aceous Tsag
shale at an a
R
o
averagin
ated 26 Tcf
ed gas and
XXI-1. The
ne shales in
ercially produ
has occurre
al reservoir
rs in this bas
st Gobi Basin,
olia. Journal of
drix, M.S., and
from Mongolia.
.
2012, 10 p.
Structure and
he Tamtsag Bas
s and Shale Oil
stributed am
gaantsav Fo
average dep
ng 0.8%).
f of shale ga
1.7 billion ba
closest inte
the shallow
uctive.
ed in the Ta
rs. PetroCh
sin.
Mongolia. Am
f Petroleum Geo
Carroll, A.R.,
American Ass
Evolution of the
sin / NE-Mongol
Resource Asses

mongst nume
ormation con
pth of 7,000
Porosity ma
as and 43 b
arrels of sha
ernational an
w western Co
mtsag Basin
hina is curr
merican Associa
ology, vol. 17, p.
2003. Geoch
sociation of Pet
e Tamtsag Basi
ia part I: Bas
ssment
erous
ntains
feet.
ay be
billion
ale oil
nalog
ooper
n, nor
rently
ation of
89-98.
hemical
troleum
in / NE
sin Fill.
XXI. Mongo

June, 2013

10 Liu, X.Y
Formation
11 Wang, J
Hydrocar
Article #1
12 Gao, Y.Q
Basin, No
olia

Y., Deng, H.W.,
n in Wuerxun De
.G., Chen, G.P.,
rbon in Huhehu
0266.
Q., Liu, L., and H
ortheastern Chin

Di, Y.X., Gao,
epression, Haila
and Wang, T.Q
Sag, Hailaer Ba
Hua, W.X., 2009
na. Applied Geo
XX

X.P., Wang, J.
er Basin. Petro
Q., 2010. The G
asin, China. A
9. Petrology an
ochemistry, vol.
EIA/ARI W
XI-13

K., and Long, G
oleum Geology a
Geochemical Cha
merican Associa
d Isotopic Geoc
24, p. 1724-173
World Shale Ga

G.Q., 2009. H
and Testing, vol.
aracteristics of C
ation of Petroleu
chemistry of Daw
38.
s and Shale Oil

High Quality Sou
. 31, p. 68-73 (in
Coal Measure S
um Geologists,
wsonite-Bearing
Resource Asses

urce Rocks of
n Chinese).
trata and Coal-D
Search and Dis
Sandstones in
ssment

Nantun
Derived
scovery
Hailaer
XXII. Thaila

June, 2013

XXII.
SUMMA
W
large So
the Khora
nd
THA
ARY
While no sha
utheast Asia
at, Northern
Figu
S
AILAND
ale gas/oil e
an country h
Intermontan
ure XXII-1. Pro
ource: ARI, 201
XX
D
exploration a
has significa
ne and Cent
ospective Sha
3
EIA/ARI W
XII-1
activity has
ant prospect
tral Plains ba
ale Gas and Sh
World Shale Ga
been report
tive shale ga
asins, Figure
hale Oil Basin
s and Shale Oil
ted to date
as and shal
e XXII-1.
s of Thailand.
Resource Asses

in Thailand
e oil potenti
.

ssment
d, this
ial, in
XXII. Thaila

June, 2013

T
recovera
Intermon
paucity o
and may
potential

T
Triassic
These s
pressure
and suita
local drill
developm
T
within th
Oligocen
including
nd
The Khorat B
ble shale ga
ntane and Ce
of available
y complicate
is promising
Table XX
Thailands gre
shale sourc
hales can
ed. Deposite
able for hyd
ling rigs, and
ment.
Thailands sh
he Northern
ne to Early M
g the 30,000
Basin in no
as resource
entral Plains
public data.
e future sha
g but needs
XII-1. Shale G
eatest poten
ce rocks in
be locally t
ed under sh
raulic fractu
d active inde
hale oil pote
Intermonta
Miocene ag
-b/d Sirikit-1
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRe
Av
Th
Cl
R
e
s
o
u
r
c
e
Ga
GI
Ri
Ri
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pr
Th
De
B
a
s
i
c
D
a
t
a
XX
rtheast Tha
s, Table XX
s basins cou
Block faul
ale drilling a
to be better
Gas Reservo
ntial appears
the Khorat,
thick, organ
allow marine
uring. The K
ependent oil
ential appea
ne and Ce
e. These u
oil field. Th
Org
Net
Inte
Ave
eservoir Pressure
verageTOC (wt. %
hermal Maturity (%
lay Content
as Phase
IP Concentration
isked GIP (Tcf)
isked Recoverabl
rospectiveArea(m
hickness (ft)
epth (ft)
Basin/Gros
ShaleForm
Geologic
Depositional En
EIA/ARI W
XII-2
iland has a
XII-1. In add
uld be subst
ting has dis
nd developm
defined by f
oir Properties
s to be shale
the countr
nic-rich, dry
e conditions
Khorat Basi
l and gas pr
ars to be m
ntral Plains
units source
hermally imm
ganically Rich
t
erval
erage
e
%)
%Ro)
(Bcf/mi
2
)
e(Tcf)
mi
2
)
ss Area
mation
Age
nvironment
World Shale Ga
an estimated
dition, shale
tantial but w
srupted Thai
ment. Over
further data
s and Resour
e gas depos
rys largest
gas prone
s, they are li
n has an ex
roducers wh
more limited.
s basins con
ed the basin
mature oil s
Khorat
(32,400mi
2
)
NamDuk Fm
Permian
Marine
1,750
400
200
6,000 - 12,000
9,000
Mod. Overpres
3.0%
2.50%
Low
Dry Gas
83.0
21.8
5.4
s and Shale Oil
d 5 Tcf of r
oil potentia
was not quan
ilands onsh
rall, Thailan
gathering a
rces of Thail
sits contained
onshore se
e, deeply bu
kely to mine
xisting gas p
hich could fa
Small iso
ntain organ
ns conventio
hale deposit
m
0
ss.
Resource Asses

risked techn
al in the Nor
ntified due t
ore shale b
nds shale g
nd analysis.
and.
d in Permian
dimentary b
uried, and
eralogically b
pipeline netw
acilitate shale
olated sub-b
ic-rich shale
onal oil dep
ts that are lo
ssment
nically
rthern
to the
asins
as/oil

n and
basin.
over-
brittle
work,
e gas
asins
es of
osits,
ocally
XXII. Thaila

June, 2013

mined at
Tertiary s
content w
INTROD
D
productio
Bcfd of n
fields in
Approxim
including
E
sandston
were dril
carbonat
reports o
tangible
Statoil a
unconve
A
onshore
1. These
basins (s
being mi
1 oil field
P
overlying
resource
thermal m
Basin ho
group of
nd
t the surfac
shales were
with low frac
DUCTION
During the pa
on industry.
natural gas i
the Gulf
mately 40%
g most of the
Essentially al
ne and carb
led in Thaila
tes are being
of unconven
sign of activ
and PTTEP
ntional resou
ARIs review
sedimentary
e include the
such as Ma
ned; and the
d.
Permo-Triass
g Permian c
e potential.
maturity win
osts an exist
active indep
ce may cont
deposited u
ckability.
ast three de
The country
in 2011.
1
N
of Thailand
of Thailand
e countrys p
l of the oil a
bonate reser
and during 2
g targeted in
tional shale
vity for Thai
in January
urces in Tha
w of publishe
y basins wh
e large Khor
ae Sot) in th
e similarly co
sic shale so
carbonate c
These mari
dow, often o
ing gas pipe
pendent oil a
XX
tain mobile
under lacust
ecades Tha
y produced
Nearly 90% o
d, with onl
ds primary
ower genera
nd gas curre
rvoirs. Whi
2004-6, witho
n convention
e/tight oil or
lands uncon
y 2011 cov
ailand and ot
ed geologic
ich may hav
rat Basin in t
he Northern
omplex Cen
ource rocks
conventional
ne-deposite
over-pressur
eline networ
and gas prod
EIA/ARI W
XII-3
hydrocarbon
rine sedime
iland has bu
393,000 b/d
of its curren
y limited p
energy co
ation and gro
ently produc
le a handfu
out commerc
nal anticlinal
gas explora
nventional r
vering poten
ther countrie
c literature i
ve unconven
the northeas
Intermonta
ntral Plains B
in the Khor
reservoirs,
ed shales ar
red, and ma
k, a local su
ducers.
World Shale Ga
ns at depth
ntary condit
uilt up a su
d of crude oi
t petroleum
production f
nsumption
owing vehic
ced in Thaila
ul of coalbed
cial success
traps in the
ation & deve
resources w
ntial joint s
es.
2

ndicates tha
ntional oil an
st; a series o
ne Basin, w
Basin, which
rat Basin, th
, may offer
re thick, org
ay be minera
upply of suita
s and Shale Oil
h. However
ions and ma
bstantial oil
l and liquids
output com
from small
is supplied
le fuel usage
and comes fr
d methane
s, and some
e Khorat, the
elopment to
as an MOU
studies of c
at Thailand
nd gas poten
of smaller, is
where shale
h hosts the 3
hought to h
Thailands
ganic-rich, w
alogically br
able drilling
Resource Asses

r, these low
ay be high in
and natura
s in 2011 an
mes from offs
onshore f
by natural
e.
rom convent
exploration
low-permea
ere have bee
o date. The
signed betw
conventional
has three
ntial, Figure
solated pull-
oil deposits
30,000-b/d S
ave sourced
best shale
within the dry
rittle. The K
rigs, and a
ssment
w-rank
n clay
al gas
nd 3.6
shore
fields.
gas,
tional
wells
ability
en no
e only
ween
and
main
XXII-
-apart
s are
Sirikit-
d the
e gas
y gas
Khorat
small
XXII. Thaila

June, 2013

O
available
downdip
scale in t
in the C
lacustrine
available
1. KHO
1.1 In
T
potential
within the
Ringed b
Drained
Thailand
mainly ag
T
Phan ant
Shan Th
sequence
numerou
Tertiary/
of the Kh
primary s
offer add
conventio
T
widespre
Carbonife
apart into
reef depo
nd
Oil-prone sha
e geologic in
extension o
the northern
Central Plain
e origin, low
e subsurface
ORAT BASI
ntroduction
The Khorat B
. Thailands
e southern h
by mountain
by the Moi
, with more
gricultural ba
The Khorat B
ticline. The
hai and Sou
e comprises
us unconform
Quaternary
horat Basin.
3
source rock,
ditional sourc
onal petroleu
The structura
ead deposit
erous Si Tha
o numerous
osits of the
ale/tight res
nformation i
of lacustrine
n inter-monta
ns Basin. T
w apparent
e geologic da
IN
n and Geo
Basin in nor
s largest ons
half of the K
n ranges, the
n and Chi
extreme dry
ased, with fe
Basin is sep
Khorat rests
uth China p
s a series of
mities and
deposits. F
3
The shallo
, while the fl
ce rock pote
um reservoir
al Khorat Ba
tion of clas
at Formation
horst and g
Pha Nok Kh
XX
sources in T
s scanter.
e oil shale (s
ane basins.
These oil-pr
thermal ma
ata.
logic Setti
rtheast Thai
shore sedime
Khorat Plate
e Plateau it
Rivers, the
y and wet s
ew large citie
parated from
s on the Indo
plates to th
Late Camb
dominated
Figure XXII-2
ow marine to
uvial to lacu
ential. Perm
rs.
asin depress
stic and ca
n.
4
Tectonic
raben block
hao Formatio
EIA/ARI W
XII-4
Thailand ap
The most o
solid minera
Similar sha
rone shales
aturity, as w
ng
land appear
entary basin
au, a large
tself is relati
Khorat Pla
easonality.
es or industr
m the Sakon
ochina tecto
he west and
rian through
by Permo-
2 illustrates
o basinal Pe
ustrine Trias
mian dolomite
sion was init
arbonate se
c extension d
s separated
on formed o
World Shale Ga
ppear to be
obvious oil-
al) deposits
ale/tight oil d
s appear le
well as the
rs to have t
n, the 35,000
roughly circ
ively flat wit
ateau receiv
The local e
rial centers.
Nakhon Ba
onic micropla
d north, res
h Recent stra
-Carbonifero
the stratigra
ermian Sara
ssic Kuchina
e and karste
tiated during
edimentary
during the Ea
by high-ang
on regional h
s and Shale Oil
e less prosp
prone shale
which are m
deposits also
ss prospect
general pa
the countrys
0-mi
2
petrolif
cular physiog
th 200-m av
es less rain
economy of
asin to the n
ate, which is
spectively.
ata, which a
ous, Triassi
aphy and pe
buri Group i
arai and Hua
ed limestone
g the Middle
rocks, beg
arly Permian
gle normal fa
highs, while
Resource Asses

pective, alth
e potential i
mined on a
o may be pre
tive due to
aucity of pu
s best shale
ferous Khora
graphic prov
verage eleva
nfall than ce
this rural ar
north by the
s bordered b
Its sedime
are interrupte
c/Mesozoic,
etroleum sys
is considere
ai Hin Lat Gr
es form the
e Paleozoic,
ginning with
n broke the
aults. Carbo
clastic and s
ssment
hough
s the
small
esent
their
ublicly
e gas
at lies
vince.
ation.
entral
rea is
e Phu
by the
entary
ed by
and
stems
ed the
roups
main
, with
h the
basin
onate
shale
XXII. Thaila

June, 2013

deposits
approach
deposited
caused r
erosion r
Figure XX
Group is
Also H
Source: Tha

nd
of the Na
hing 20,000
d during the
regional upli
removed 3,0
XII-2. Stratigr
s the Primary S
Have Potential
ailand Ministry of
am Duk Fo
feet thick.
e Middle to
ft and thrust
000 to 9,000
raphy and Pet
Source Rock.
. Permian Do
f Energy, 2007.
XX
ormation we
Mixed sed
Upper Perm
ting. Seism
feet of sedim
roleumSystem
The Fluvial to
olomite and Ka
R
EIA/ARI W
XII-5
ere deposit
iments of th
mian. Later
mic and therm
mentary cov
ms of the Kho
o Lacustrine T
arsted Limesto
Reservoirs.
World Shale Ga
ted in the
he Hua Na
basin-scale
mal maturity
ver during th
orat Basin. Sh
Triassic Kuch
ones are the M
s and Shale Oil
troughs, w
Kham Form
e compressio
y data indica
is event.
hallowMarine
hinarai and Hu
Main Convent
Resource Asses

with some a
mation were
on and inve
ate that uplif
Permian Sara
uai Hin Lat Gro
ional Petroleu

ssment
areas
then
ersion
ft and
aburi
oups
um
XXII. Thaila

June, 2013

F
the Kuch
A secon
clastics w
to Late
deposited
and clas
orogeny
F
western
Group so
These st
are not c
Saraburi
F
Basin. H
reservoir
rock doe
source ro
faulted a
prelimina
shale gas
F
illustratin
- the prim
the basin
complica

nd
ollowing the
hinarai Grou
d orogenic
were deposit
Jurassic, a
d. After a
tics of the M
brought abo
igure XXII-3
Khorat Basi
ource rock s
trata are ove
considered p
Group and,
igure XXII-4
Here, the low
rs of the Pe
es not appea
ock is relati
and overlain
ary informati
s exploration
igure XXII-
ng conventio
mary targets
n. The patc
ate shale gas
e Indosinian
p began to
collision ma
ted. A furth
after which
Middle Cret
Mahasarakha
out regional u
3 shows a
in. It highlig
shales and c
erlain by fluv
prospective
to a lesser
4 is a south
w-TOC Carbo
rmian Pha N
ar to be pres
vely thin. T
by fluvial a
ion suggests
n than the ea
5 is a sch
nal petroleu
s -- are quite
chy shale di
s exploration

XX
orogeny, Ea
unconforma
arked by vo
er erosional
non-marine
taceous peri
am Formatio
uplift and ero
southwest-
ghts possibl
carbonates, w
vial and alluv
due to their
extent, Kuch
h-north orien
oniferous Si
Nok Khao F
sent in this
These Carb
and alluvial
s that the w
ast.
hematic, no
m play conc
e discontinu
istribution a
n in the Khor
EIA/ARI W
XII-6
arly Triassic
ably fill the e
olcanics foll
or non-dep
e clastics a
iod of defor
on were dep
osion, remov
northeast o
e Permian S
which may b
vial clastic ro
r low TOC c
hinarai Grou
nted seismic
That Forma
Formation. T
part of the b
oniferous, P
clastic rock
western Kho
on-directiona
cepts. Note
uous, block f
nd structura
rat Basin.
World Shale Ga
c continental
extensional g
lowed, after
ositional hia
nd shales
rmation and
posited. Fin
ving up to 6
oriented seis
Saraburi Gr
be prospecti
ocks of the J
content. No
up rocks.
c time secti
ation is over
The primary
basin, while
Permian, an
ks of the Ju
orat Basin m
al cross-sec
the Permo-
faulted, and
al and erosio
s and Shale Oil
and lacustr
grabens of t
r which Late
atus occurred
of the Kho
volcanic ev
nally, the Te
,000 feet of
smic time s
roup and Tri
ive for shale
Jurassic Kho
ote significa
ion from the
lain by poss
y Saraburi F
e the Huai H
nd Triassic r
urassic Kho
may be more
ction of th
Triassic sou
d eroded in
onal comple
Resource Asses

rine sedimen
the Khorat B
e Triassic f
d until the M
orat Group
vents, evapo
ertiary Hima
rock.
section from
iassic Kuchi
e gas explora
orat Group; t
ant faulting o
e eastern K
sible convent
Formation so
Hin Lat Form
rocks were
rat Group.
e prospectiv
e Khorat B
urce rock sha
many portio
exity are like
ssment
nts of
Basin.
fluvial
Middle
were
orites
layan
m the
inarai
ation.
these
of the
Khorat
tional
ource
mation
block
This
ve for
Basin
ales -
ons of
ely to
XXII. Thaila

June, 2013

Figure XX
Group an
Source: Tha
Figu
Carbo
Formatio
While th
Source: Tha

nd
XII-3. Southwe
nd Triassic Ku
ailand Ministry of
ure XXII-4. So
oniferous Si T
on. The Sarab
he Huai Hin La
ailand Ministry of
est-Northeast S
uchinarai Grou
Clas
f Energy, 2007.
outh-North Se
hat Formation
buri Formation
at Formation S
f Energy, 2007.
XX
Seismic Time
up Source Roc
stic Rocks of t
ismic Time Se
n Overlain by
n Source Roc
Source Rock is
Carbonif
EIA/ARI W
XII-7
Section in We
ck Shales and
the Jurassic K

ection fromEa
Conventional
k Does Not Ap
s Relatively T
ferous Sequen
World Shale Ga
estern Khorat
d Carbonates,
Khorat Group.
astern Khorat
Reservoirs o
ppear to be Pr
hin. Note Sig
nce.
s and Shale Oil
t Basin, Show
Overlain by F

Basin, Showi
of the Permian
resent in this
gnificant Fault
Resource Asses

ws Permian Sa
Fluvial and All

ing Low-TOC
Pha Nok Kha
Part of the Ba
ing of the Per
ssment
raburi
luvial

ao
asin,
rmo-
XXII. Thaila

June, 2013

Figur
Petroleu
Faulte
Source: Tha

A
gas disco
reservoir
organic-r
Cretaceo
rifting.
5

F
interpreta
rock kitc
clockwise
U
Basin. A
planning
Earlier th
reportedl
opportun
blocks bu

nd
re XXII-5. Sch
mPlay Conce
ed, and Partly
ailand Ministry of
Although the
overies have
rs within ant
rich Permo-T
ous burial, a
igure XXII-
ation of a sm
chen, the up
e rotation alo
UK-based ind
At last repor
its first exp
his year Yan
ly entered i
nities in the
ut have not r
ematic Non-d
epts. Note the
y Eroded acros
f Energy, 2007.
Khorat Bas
e been mad
ticlines and
Triassic shal
nd then pos
-6 illustrate
mall gas fie
plifted anticli
ong strike-sl
dependent S
rt, Salamand
ploration we
nchang Petro
nto a contra
Khorat. C
reported act

XX
irectional Cro
e Primary Perm
ss the Basin.
Ex
sin is overma
de. These f
stratigraph
les, with gas
sibly migrati
es a detail
ld in the ce
nal fold that
lip faults tha
Salamander
der was acq
ll in 2012-1
oleum, Chin
act with Th
Coastal Ener
ivity in the p
EIA/ARI W
XII-8
oss-section of
mo-Triassic So
This Structur
xploration.
ature for oil,
fields target
ic traps. N
s being gene
ing along fra
ed seismic
ntral Khorat
t formed a co
t created thi
Energy hol
quiring 3D s
3 to test co
nas fourth la
ailands Min
rgy and Hes
past two year
World Shale Ga
the Khorat Ba
ource Rock S
ral Complexity
a small num
Permian ca
Natural gas
erated durin
actures and
c structure
t Basin. No
onventional
s local struc
lds several
eismic, cond
onventional
argest state-
nistry of En
ss also hav
rs.
7,8

s and Shale Oil
asin, Showing
hales are Disc
y may Complic
mber of con
arbonate an
likely was s
g the Early T
faults cause
time map
ote the deep
gas trap, an
cture.
license bloc
ducting bas
Permian ca
-owned petr
ergy to exp
ve interests
Resource Asses

g Conventiona
continuous, B
cate Shale Ga
nventional na
d Triassic c
sourced by
Tertiary follo
ed by extens
p and struc
p Triassic so
nd the interp
cks in the K
in modeling
arbonate targ
roleum comp
plore natura
in Khorat B
ssment
al
Block
as
atural
clastic
older
owing
sional
ctural
ource
preted
Khorat
, and
gets.
6

pany,
l gas
Basin
XXII. Thaila

June, 2013

Figure XX
Deep Tria
Source: Sal

1.2 R
T
occur at
depth-sc
prone to
basinal s
Permian
producin
S
depths b
thermally
Early Pe
marine s
depth ra
The calc
shale tar
nd
XII-6. Seismic
assic Source
amander Energy
Reservoir P
Thick, organ
prospective
reened area
over-matur
sedimentary
carbonate
g gas fields.
Shallow mari
below 13,00
y over-matu
ermian Nam
sediments, in
nges from 8
culated vitrin
rget that is u
c Structure Tim
Rock Kitchen
y PLC.
Properties
ic-rich sourc
e depth in t
as is not po
re, with little
y conditions,
and Triass
.
ine shales a
00 feet.
9
H
re and not
Duk Forma
ncluding som
8,000 to mo
nite reflectan
nlikely to be
XX
me Map and In
n, Anticlinal
(Prospecti
ce rock sha
the Khorat
ossible with
e or no liqu
, these sha
sic clastic r
also occur in
However, ba
prospective
ation contain
me organic-
re than 10,0
nce is over 2
prospective
EIA/ARI W
XII-9
nterpretation
Fold, and Inte
Faults.
ive Area)
ales and ca
Basin, altho
current data
uids potentia
les are thou
eservoirs o
n the Carbo
asin maturit
for shale g
ns several t
-rich shale.
000 feet and
2.5%, thus t
e for liquids.
World Shale Ga
of Small Gas
erpreted Clock
arbonates of
ough mappi
a. These sh
al. Deposite
ught to hav
f this regio
oniferous Si
ty modeling
gas develop
thousand fe
TOC repor
d the format
the Nam Du
s and Shale Oil
Field in the K
kwise Rotation
f Permian a
ng the loca
hales are th
ed under sh
ve sourced
on, including
That Forma
estimates
ment (R
o
of
eet of contin
rtedly can e
tion often is
uk Fm is a
Resource Asses

horat Basin.
n along Strike
and Triassic
ation and siz
hermally dry
hallow marin
the convent
g two signif
ation, typica
that this u
f 3 to 4%).
nental to sh
exceed 3%,
s over-press
potential dry
ssment
Note
e-Slip
c age
ze of
y-gas-
ne to
tional
ficant
ally at
nit is
The
hallow
while
sured.
y gas
XXII. Thaila

June, 2013

F
identified
thickness
within the
liquids po
1.3 R
A
suitable d
developm
Triassic
available
suitable
these pa
shale pla
A
Permian
depositio
clay), TO
0.6 vs 0.
and fault
Basin Wo
the analo
T
average
is discon
be rigoro
(~1,750 m
much les
extent, th
ARI assu
nd
luvial and
d as petroleu
s. The Kuc
e basin. Th
otential (R
o
>
Resource A
As discussed
depth and th
ment. Additi
Kuchinarai F
e data on th
thickness, d
arameters we
ays that have
A good North
Basin, We
onal setting
OC content (
7 psi/ft for th
ed than the
olfcamp is le
ogy is imperf
The Nam Du
TOC, and fa
tinuously pr
ously mappe
mi
2
). Net o
ss than 20%
he pressure
umed 6% po
lacustrine d
um source ro
hinarai Grou
hermal matu
> 2.0%).
Assessmen
d above, the
hermal matu
ional shale g
Fm, but thes
he Khorat B
depth, TOC,
ere estimate
e been more
h American a
est Texas.
1
(shallow ma
(average 3%
he Wolfcam
Permian Ba
ess thermall
fect.
uk Fm is we
alls within th
esent within
ed due to la
organic-rich s
of formation
gradient wa
orosity based
XXI
deposits of
ocks in the K
up reportedl
urity modelin
nt
Permian Na
urity and app
gas potentia
se were not
Basin is not
, thermal m
ed and augm
e thoroughly
analog for th
10
These
arine), thickn
%), over-pres
p). The Kho
asin but the d
ly maturity, r
ll over 1,000
he dry-gas th
n the basin d
ack of data b
shale thickn
n thickness.
as assumed
d on the Wol
EIA/ARI W
II-10
the Triass
Khorat Basin
y averages
ng suggests
am Duk For
pears to be t
al may exist
assessed d
t sufficient t
aturity, and
mented by a
studied.
he Nam Duk
formations
ness (>1,000
ssuring (unc
orat Basin a
difference is
ranging from
0 ft thick, w
hermal matu
due to uplift a
but is assum
ess also is u
Known to b
to be 0.6 ps
lfcamp analo
World Shale Ga
sic Kuchinar
n, with high-
a prospecti
it reaches t
rmation cont
the most pro
in other orga
due to lack o
to constrain
prospective
nalogs with
k Fm could b
share sim
0 ft), litholog
certain in the
ppears to be
s not extreme
m the black
ith reported
urity window
and erosion
med to be 5
uncertain bu
be over-pres
si/ft, slightly
og.
s and Shale Oil
rai Group
-TOC interva
ive 6,500 to
the dry gas
tains organic
ospective tar
anic-rich sha
of data. Th
n the region
e area. Av
commercia
be the Wolfc
milar age (L
gy (high in c
e Khorat bu
e structurally
e. Furtherm
oil to wet ga
average 9,0
(R
o
> 2.5%
. Prospectiv
5% of the K
ut is assume
ssured but n
below the W
Resource Asses

also have
als of unrep
7,000 feet
window, wi
c-rich shales
rget for shale
ales, such a
e limited pu
nal distributio
verage value
l North Ame
amp Shale i
Lower Perm
carbonate, lo
ut assumed
y more defo
more, the Per
as windows,
000 ft depth
). The Nam
ve area coul
horat Basin
ed to be 200
ot known to
Wolfcamp an
ssment
been
ported
deep
th no
s with
e gas
as the
ublicly
on of
es for
erican
in the
mian),
ow in
to be
ormed
rmian
, thus
h, 3%
m Duk
ld not
area
0 feet,
what
nalog.
XXII. Thaila

June, 2013

B
estimated
recovera
and map
Basin.
1.4 R
N

2. CEN
2.1 In
T
including
Praya Ri
like the
discontin
The pro
Petchabu
T
Miocene
deposited
appear to
which m
discontin
S
punctuat
were dep
Middle M
sediment
some are
nd
Based on the
d to have
ble shale ga
p these para
Recent Activ
No shale gas
TRAL PLA
ntroduction
Thailands Ce
g the Bangko
ver. Coveri
Khorat but
nuous half-g
vince includ
un petrolifero
The Central
sandstone
d shales, wh
o have Thai
ay be ident
nuous nature
Similar to m
ed by period
posited durin
Miocene, de
ts were the
eas, up to 26
ese data and
22 Tcf of
as resources
ameters and
vity
s activity has
AINS BASIN
n and Geo
entral Plains
ok region an
ing a 25,000
rather com
rabens of T
des the pro
ous sub-bas
Plains Bas
reservoirs a
hich are orga
lands best p
tified by fut
e of the sub-
most of Tha
ds of extens
ng Oligocen
epositing int
n deposited
6,000 feet of
XXI
d assumption
risked shal
s, Table XXI
d estimate t
s been repor
N
logic Setti
s Basin is l
nd the highly
0-mi
2
area, t
mprises a n
Tertiary age,
ominent Ph
sins, among
sin is oil-pro
as well as p
anic-rich an
potential for
ure work a
basins.
ilands basi
sion and sub
ne to Early M
terbedded f
towards th
f Cenozoic s
EIA/ARI W
II-11
ns, the Nam
e gas in-pl
II-1. More d
the full shal
ted in Thaila
ng
ocated in th
y productive
the Central P
number of
formed due
hitsanulok, S
others.
one and cu
pre-Tertiary
d considere
shale oil ex
re likely to
ins, the stru
bsequent ero
Miocene tim
luvial sands
e end of th
strata have b
World Shale Ga
m Duk Forma
lace, with 5
detailed stud
le gas reso
ands Khorat
he south-ce
e rice-growin
Plains Basin
small, deep
e to transpre
Suphan Bu
urrently prod
fractured gr
d the primar
xploration. H
be limited
uctural histo
osion. Lacu
me.
11
An act
stones and
he Tertiary a
been preserv
s and Shale Oil
ation in the K
5 Tcf of ris
dy is recomm
urce potent
t Plateau.
entral portion
ng regions o
n is not a co
p, north-sou
essional pul
uri, Kampha
duces oil fr
ranites. Mio
ry source ro
However, sh
in size, refl
ory of the
ustrine shale
tive margin
mudstones
and into the
ved.
Resource Asses

Khorat Basin
sked, techn
mended to d
ial of the K
n of the cou
of the lower
ontinuous de
uth trending
ll-apart tecto
aeng Saen,
om convent
ocene lacus
ocks in this b
hale oil pros
lecting the
Central Pla
es and sedim
developed i
s. Alluvial-f
e Quaternary
ssment
n was
nically
define
Khorat
untry,
Chao
eposit
g and
onics.
and
tional
strine-
basin,
pects
small
ain is
ments
n the
fluvial
y. In
XXII. Thaila

June, 2013

M
conventio
Phitsanu
productio
The oil is
the S1 fie
next 10 y
while co
advanced
In
Miocene
equivalen
These ty
indices re
rich sha
Chumsae
feet. Oil
large ran
F
Central B
the Cent
within th
Clastic ro
under all
by Late M
Himalaya
F
Phitsanu
main sou
Saeng G
Significa
nd
Middle Mioce
onal target
lok Basin. T
on in the ea
s inferred to
eld from Tha
years. Duri
ntinuing to
d drilling and
n the Phitsa
Chumsaeng
nt sediments
pe I/II sourc
eaching ove
le interval o
eng and Ear
generation
nge in therma
igure XXII-7
Basin. Oligo
tral Basin, re
e Oligocene
ocks of the
uvial plains
Miocene to
an Orogeny.
igure XXII-8
lok Basin, o
urce rocks a
Group, which
nt normal fa
ene sandsto
in the variou
Thailands la
arly 1980s,
have been s
ai Shell in 20
ing Q3-2012
drill new de
d exploration
anulok Basin
g Fm, which
s are also no
ce rocks disp
er 700 mg H
of at least
rly Miocene
depths in th
ally mature d
7 illustrates
ocene Nong
est unconfo
e to Early M
Oligocene L
settings, are
Recent allu

8 shows a w
one of nume
are fluvial to
h appear to
ulting may h
XXI
ones (and m
us Central P
argest onsho
with over 2
sourced from
003 and plan
2 PTTEP pr
evelopment
n techniques
n, the main
h was depos
oted in the S
play high to v
C/g.
14
Gros
600 feet.
lacustrine s
he smaller S
depths for liq
the stratigr
g Bua and S
ormably on p
Miocene Ch
Lan Krabur a
e the conve
vial fan dep
west-east or
erous sub-b
lacustrine s
be disconti
hinder shale
EIA/ARI W
II-12
more recently
Plains sub-b
ore oil field,
50 wells dri
m the underl
ns to extract
roduced an
wells there.
s.
12

organic-ric
sited in a de
Suphan Buri
variable TOC
s thickness
In the dee
shales may r
Suphan Buri
quids produc
raphy and c
Sarabop form
pre-Tertiary
hum Saeng
and Miocene
ntional rese
posits source
riented, unin
basins within
shales within
inuously pre
oil developm
World Shale Ga
y pre-Tertia
basins, such
the Sirikit (n
illed and 17
lying lacustr
t an addition
average 30
. PTTEPs o
h lacustrine
eep lake en
and other s
C (average >
averages 1
eper parts o
reach maxim
Basin avera
ction.
conventiona
mations, the
basement.
Group act
e Pratu Nam
ervoir targets
ed by region
nterpreted se
n the overal
n the Oligoc
esent on top
ment in this
s and Shale Oil
ary granites)
h as at Sirik
now called S
70 MMBO p
rine shales.
nal 40 to 50
,000 b/d of
onshore foc
e shales com
nvironment.
ub-basins, u
>2.0%
13
), wi
,300 feet, w
of Central P
mum depths
age 7,000 fe
al petroleum
oldest sedi
Fluvial to
as the ma
m Nan forma
s. These in
nal uplift ass
eismic time
l Central Pla
cene to Early
p of pre-Mio
basin.
Resource Asses

) are the pri
kit field withi
S-1) comme
roduced to
PTTEP acq
MMbbls ove
oil from Sir
cus has bee
mprise the
Stratigraph
usually unna
ith high hydr
ith a net org
Plain basins
of nearly 15
eet, suggest
m systems o
mentary roc
lacustrine s
ain source r
ations, depo
turn are ove
sociated wit
section from
ains Basin.
y Miocene C
ocene basem
ssment
imary
n the
enced
date.
quired
er the
ikit-1,
en on
Early
hically
amed.
rogen
ganic-
s, the
5,000
ting a
of the
cks in
hales
rocks.
osited
erlain
th the
m the
The
Chum
ment.
XXII. Thaila

June, 2013

Figure XX
within th
Clastics
Figure XX
The Main
Group
Source: Tha

nd
XII-7. Stratigra
he Oligocene t
s of the Oligoc
XII-8. West-Ea
Source Rock
p, Discontinuo
ailand Ministry of
aphy and Petro
to Early Mioce
cene Lan Krab
Source: Tha
st Seismic Tim
s are Fluvial t
ously Present
f Energy, 2007

XXI
oleumSystem
ene ChumSae
bur and Mioce
iland Ministry of
me Section in
to Lacustrine S
on Top of Pre
EIA/ARI W
II-13
ms of Thailand
eng Group are
ene Pratu Nam
f Energy, 2007

the Phitsanul
Shales within
e-Miocene Bas
World Shale Ga
ds Central Bas
e the Main Sou
mNan Formati
lok Sub-basin
the Oligocen
sement. Note
s and Shale Oil
sin. Fluvial to
urce Rocks, w
ons are Conv

n within the Ce
e to Early Mio
e Significant N
Resource Asses

o Lacustrine S
while Alluvial P
ventional Targ
entral Plains B
ocene ChumS
Normal Faultin
ssment
Shales
Plain
ets.
Basin.
Saeng
ng.
XXII. Thaila

June, 2013

3. NOR
3.1 In
T
north-cen
quite unl
numerou
Several o
conventio
In additio
small-sca
thermally
map this
M
more pr
Intermon
900 mi
2
,
Gently u
averages
T
having th
units ove
basins a
formation
H
geologist
an oil sh
conducte
Division

nd
RTHERN IN
ntroduction
Thailands N
ntral and no
ike the relat
us small an
of these pul
onal sandsto
on, solid oil
ale mining d
y more matu
due to very
Mae Sot Sub
rominent in
ntane region
with one-thi
ndulating h
s about 650
The Mae Sot
he thickest s
erlying Perm
and half gra
ns, the latter
Hydrocarbon
ts in the late
hale reserve
ed feasibility
has renewed
NTERMONT
n and Geo
orthern Inte
rthwestern p
tively continu
nd complete
l-apart basin
one reservoi
shale miner
development
ure and con
sparse data
b-Basin. T
ntermontane
. This nort
rd of the are
ills and allu
feet above s
t Basin is div
sedimentary
ian to Juras
abens. Th
r recognized
exploration
e 1930s. In
e evaluation.
y analyses o
d its researc

XXI
TANE BAS
logic Setti
ermontane B
portions of t
uous Khorat
ely isolated
ns, such as
irs that were
ral resource
t. These or
ntain mobile
a control.
The Mae Sot
e basins in
h-south tren
ea extending
vial plains c
sea level.
vided into no
y section. It
sic carbonat
hese units i
for its oil sh
n of the M
n 1947 Thail
. During th
of the oil sha
ch on Thailan
EIA/ARI W
II-14
IN
ng
Basin is a la
he country.
t Basin, the
structural t
the Fang B
e sourced by
s near the s
rganic-rich la
oil in the d
t Sub-basin
n this topo
nding basin
g across the
comprise th
orth and sou
contains m
te and clasti
nclude the
hale deposits
Mae Sot Ba
lands Depa
e 1980s, th
ale potentia
nds oil shale
World Shale Ga
arge loosely
Similar to t
Northern Int
troughs tha
Basin, produ
y organic-ric
surface in th
acustrine-de
deeper troug
of northwe
ographically
extends ov
e Moei River
he topograph
uth sub-bas
mainly non-m
ic rocks that
Mae Rama
s.
asin began
artment of M
he German
l. Since 20
e deposits.
s and Shale Oil
y defined a
the Central
termontane
at are sepa
ce oil in ant
ch Miocene l
he Mae Sot
eposited sha
ghs, althoug
stern Thaila
y mostly r
er an area
into Myanm
hy of the ba
ins, with the
marine Cenoz
t were depos
at, Mae Pa
with Swiss
Mineral Reso
and Japane
000 Thailand
Resource Asses

rea covering
Plains Basin
Basin comp
arated by u
ticlinal traps
acustrine sh
Basin are u
ales may bec
gh ARI coul
and is one o
ugged Nor
of approxim
mar on the w
asin itself, w
e southern re
zoic sedime
sited in pull-
a, and Mae
s and Japa
ources condu
ese governm
ds Mineral F
ssment
g the
n and
prises
plifts.
from
hales.
under
come
d not
of the
rthern
mately
west.
15

which
egion
entary
-apart
e Sot
anese
ucted
ments
Fuels
XXII. Thaila

June, 2013

F
located
containin
a steep m
an avera
througho
first com
Figure XX
within th
Clasti
Source: Tha

D
Himalaya
sediment
younger
undiffere
the sedim
T
Fang an
claystone
in an allu
layers wi
nd
ang Sub-B
about 150
ng Cenozoic
mountain ran
age elevatio
out the half-g
mercial oil fi
XII-9. Stratigra
he Oligocene t
cs of Oligoce
ailand Ministry of
During the e
an collision
ts were dep
alluvium a
entiated grav
mentary seq
The stratigra
d underlying
e occur in th
uvial-fluvial e
ithin the Mae
asin. The
km north o
sediments,
nge to the ea
on of 1,500
graben, evid
eld, over 24
aphy and Petro
to Early Mioce
ne Lan Krabu
f Energy, 2007
arly Tertiary
opened up
posited durin
and marked
vels, sands, s
uence reach
phy of the T
g Mae Sot
he Late Mioc
environment
e Sot Forma
XXI
crescent-sh
of Chiang M
Figure XXII
ast. The Fan
feet above
denced by ho
0 wells have
oleumSystem
ene ChumSae
r and Miocene
y, extension
the basin.
ng the Eoce
by a sign
soils, and cl
hes 10,000 f
Tertiary rock
formations.
cene to Pleis
and averag
ation have b
EIA/ARI W
II-15
aped Fang
Mai, is a f
I-9. The 220
ng Basin is g
e sea level.
ot springs in
e been drille
ms of Thailand
eng Group are
e Pratu NamN
al faults and
Syn-rift seq
ene to Mioc
nificant unco
ays of Quate
ft.
ks generally
Interbedde
stocene Mae
e 1,400 feet
been the prin
World Shale Ga
Sub-basin
fault-bounde
0-mi
2
trough
generally fla
.
16
A high
n the northe
ed to date in
ds Central Bas
e the Main Sou
Nan Formation
d rifting ass
quences of
cene, followe
onformity.
ernary to Re
can be div
ed coarse s
e Fang Form
t thick. Belo
nciple reserv
s and Shale Oil
in the far n
ed intermont
h trends NW
at with slightl
geotherma
rn region. S
the Fang Su
sin. Fluvial to
urce Rocks, w
ns are Conven
sociated with
alluvial-fluvi
ed by post-r
Overlying t
ecent age. T
ided into tw
sandstone a
mation; these
ow this unit,
voirs for con
Resource Asses

orth of Tha
tane depoc
W-SE and bo
ly rolling hills
l gradient e
Site of Thaila
ub-Basin.
o Lacustrine S
while Alluvial P
ntional Target
h the Indian
al and lacus
rift sequenc
these rocks
Total thickne
wo units, the
nd red to y
e were depo
fluvial sands
ventional oi
ssment
iland,
center
orders
s and
exists
ands
Shales
Plain
s.
n and
strine
ces of
s are
ess of
Mae
yellow
osited
stone
l field
XXII. Thaila

June, 2013

productio
productiv
Chaiprak
lacustrine
oil explor
3.2 R
M
conglome
Tertiary s
maximum
Oligocen
and mar
deposits
low-TOC
Mae Pa
undeterm
T
which is
relatively
maximum
calcite, d
lacustrine
mainly of
weight).
typically
Formatio
0.7% thre
F
into three
lacustrine
claystone
nd
on in the ba
ve locale, th
karn were ab
e mudstones
ration target
Reservoir P
Mae Sot Su
erate, sand
strata.
17
Th
m total dept
ne Mae Pa F
ls, along wi
can occur w
C strata. The
formations
mined shale
The most org
dominated
y thin (10 t
m thickness
dolomite, a
e oil shale
f exinite, wit
Oil shale g
about 2,000
on appears t
eshold.
ang Sub-Ba
e units: a lo
e claystone,
e, mudstone
sin, beginni
he Fang Ba
bandoned in
s and shales
within the F
Properties
b-Basin. T
dstone, lime
he Mae Ram
th of availa
Formation, w
th prevalent
within the 30
e Mae Pa F
are not con
thickness an
ganically rich
by shale wit
to 15 feet)
can exceed
nd clay (pr
deposits are
h immobile o
grade is hig
0 feet deep
too shallow a
asin. The M
ower section
, shale, and
e, and sands
XXI
ng in the 19
asin has yi
n the mid 19
s within the
Fang Basin.
(Prospecti
The Paleoce
estone, and
mat Fm is up
ble well da
which conta
t limestone
00-ft thick M
Fm averages
nsidered via
nd low therm
h shale in the
th minor clas
oil shales
d 33 feet.
roportions n
e grey to gr
oil content ra
hest in the
p across mu
and immatu
Mae Sot Fo
n of brown t
d coal with i
stone along
EIA/ARI W
II-16
920s. As th
ielded six o
80s. These
Mae Sot Fo
ive Area)
ene Mae Ra
mudstone
p to 700 fee
ata). Overly
ins lacustrin
lenses in th
ae Pa Fm, a
s about 3,00
able source
mal maturity.
e Mae Sot B
stics. One
beds within
Rock miner
not reported
reen and ne
anging from
middle-lowe
uch of the M
re for shale
rmation of M
to reddish sa
nterbedded
with fossil i
World Shale Ga
he Northern
oil fields, al
e reservoirs
ormation itse
amat Forma
units that
et thick and
ying the Ma
ne and fluvia
he southern
albeit interbe
00 ft deep. O
rocks due

Basin is the M
interval with
n sandy sh
ralogy is dom
d). In the
early 100 fe
2.5 to 62 ga
er section of
Mae Sot Ba
oil develop
Miocene to P
andstone; a
sandstone;
inclusions.
s and Shale Oil
Intermonta
lthough the
apparently
elf, most like
ation contain
unconforma
deeper than
ae Ramat F
al deposits,
sub-basin.
edded with
Overall, the
to lack of o
Miocene Ma
hin the Mae
hale assemb
minated by
northern s
eet thick. K
allons per to
f the unit. T
asin. Overa
ment, with R
Pliocene ag
a middle zon
and an upp
The conven
Resource Asses

ne regions
Pong Nok
were source
ly the main s
ns mostly al
ably overlie
n 3,300 feet
Fm is the U
including s
Minor oil s
large amoun
Mae Rama
organic rich
ae Sot Forma
Sot Fm con
blages, alth
quartz, feld
sub-basin, t
Kerogen con
on (1% to 26
This formati
all, the Mae
R
o
well below
e can be div
ne of organic
per layer of
ntional sands
ssment
most
k and
ed by
shale
luvial
pre-
t (the
Upper
hales
shale
nts of
at and
ness,
ation,
ntains
hough
dspar,
these
nsists
6% by
ion is
e Sot
w the
vided
c-rich
f gray
stone
XXII. Thaila

June, 2013

reservoir
16 to 38
T
calculate
be up to
feet thick
feet, but
history m
minimum
of the Fa
prospect
REFERE

1
U.S. Energ
2
PTTEP, ne
3
Polachan,
p.
4
Koysamra
Departme
Petroleum
5
Schenk, C
Survey, 72
6
Salamand
mention th
7
Coastal En
8
Hess Corp
9
Departmen
10
Fairhurst
Geologic
Search an
11
Ronghe,
Suphan B
12
PTTEP, 2
13
Patience,
Evolution
nd
rs have 25%
degrees AP
The rich bitu
ed total orga
2,100 feet,
k (net). The
these likely
modeling su
m depth for m
ang Basin a
ive area give
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an, S. and Comr
ent of Mineral F
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he Khorat Basin
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XXI
nd 0.2 to 2.0
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-TOC shale
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EIA/ARI W
II-17
0 Darcies of
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intervals in
ted in conve
tural highs.
% is not rea
7% R
o
) may
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, N., 2012. W
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19
Gr
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e oil ranges
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of 3,000 to 3
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0-ft depth.
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u, Northeast Tha
pproaching to th
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2, October 25.
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3,500
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The
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19, 40
ailand.
he 21
st

ological
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ry fault,
nfacies
4.
XXII. Thaila

June, 2013

14
Bal, A.A.
Tertiary P
Mineral R
15
Gibling,
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16
Lertassaw
Changwat
17
Suwanna
27
th
Oil Sh
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19
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ustrine Basin, T
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Rigby, S.M., T
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g, S., and Wink
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esources for the
kok, Thailand, T
ssment

. The
ment of
gy and
e Fang,
Mines,
e South
The 4
th

XXIII. Indon

June, 2013

XXIII.
SUMMA
In
formation
deposits,
deposited
nearby c
lacustrine
Source: AR
esia
. IND
ARY
ndonesia ha
ns, as well a
, Figure XXI
d shales w
conventional
e source roc
I, 2013
DONESI
as shale ga
as more exte
III-1. The b
ithin the Ce
oil and gas
ck shales wit
Fig
XX
IA
as and sha
ensive shale
est overall p
entral and S
fields. Kal
th oil and ga
gure XXIII-1. S
EIA/ARI W
XIII-1
ale oil pote
e resources
potential app
South Suma
imantans K
as potential.
Shale Basins o
World Shale Ga
ential within
within non-m
pears to be
atra basins,
Kutei and Ta

of Indonesia
s and Shale Oil
selected m
marine and o
mostly oil-p
, which sou
rakan basin
Resource Asses

marine-depo
often coaly s
prone, lacus
urced the p
s also have
ssment
osited
shale
strine-
rolific
thick
XXIII. Indon

June, 2013

In
recovera
shale ga
NuEnerg
PSCs ha

R
R
e
s
e
r
v
o
i
r
P
h
i
l
E
t
t
B
i
D
t
esia
ndonesia ha
ble shale ga
s and shale
gy) have rep
ave been aw
Table X
Table
O
N
I
A
R
e
s
o
u
r
c
e
Gas Phase
GIP Concentrati
RiskedGIP (Tcf)
RiskedRecovera
P
r
o
p
e
r
t
i
e
sReservoir Press
AverageTOC (w
Thermal Maturit
ClayContent
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveAre
Thickness (ft)
Depth(ft)
B
a
s
i
c
D
a
t
aBasin/Gr
ShaleFo
Geolog
Depositional
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservo
Average
Therma
ClayCo
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospec
Thickne
Depth(f
B
a
s
i
c
D
a
t
a
Depo
R
e
s
o
u
r
c
e
Oil Pha
OIP Con
Risked
Risked
as an estim
as and shal
e oil in-place
ported early
warded nor h
XXIII-1. Shale
XXIII-2. Shale
C
(3
Br
P
L
OrganicallyRich
Net
Interval 6,5
Average
A
on(Bcf/mi
2
)
)
able(Tcf)
sure
wt. %)
ty(%Ro)
ea(mi
2
)
ross Area
ormation
gic Age
Environment
OrganicallyR
Net
Interval
Average
oir Pressure
eTOC (wt. %)
al Maturity(%Ro)
ontent
ctiveArea(mi
2
)
ess (ft)
ft)
Basin/Gross Area
ShaleFormation
Geologic Age
ositional Environmen
ase
ncentration (MMbbl/m
OIP (B bbl)
Recoverable(B bbl)
XX
mated 46 T
e oil resour
e, Tables XX
y-stage eval
has shale-rel
e Gas Reservo
e Oil Reservo
C. Sumatra
36,860mi
2
)
S. S
(45,1
rownShale Talan
Paleogene Eocene-
Lacustrine Lac
4,700 15
295 9
266 3
560 - 10,496 3,300
8,530 7
Normal No
6.0% 5
0.80% 0.
Medium H
Assoc. Gas Asso
19.6 2
41.5 6
3.3
C. Sumatra
(36,860mi
2
)
BrownShale
Paleogene
Lacustrine
4,700
Rich 295
266
6,560 - 10,496
8,530
Normal
6.0%
0.80%
Medium
Oil
32.8
69.4
2.77
nt
mi
2
)
EIA/ARI W
XIII-2
Tcf and 7.9
ces out of 3
XIII-1 and XX
uations of s
lated drilling
oir Properties

ir Properties a

umatra
70mi
2
)
Kute
(35,840m
ngAkar Balikpa
-Oligocene Mid.-U. Mio
ustrine Lacustr
5,490 1,630
918 900
367 450
0 - 8,000 3,300 - 15
,000 9,000
ormal
Highly
Overpre
5.0% 4.0%
70% 0.70%
High High
oc. Gas Assoc. G
25.0 62.1
67.8 16.2
4.1 1.3
S. Sumatra
(45,170mi
2
)
e TalangAkar
Eocene-Oligocen
Lacustrine
15,490
918
367
6 3,300 - 8,000
7,000
Normal
5.0%
0.70%
High
Oil
50.2
136.2
4.09
World Shale Ga
9 billion ba
303 Tcf and
XIII-2. Seve
shale gas p
activity bee
and Resource
and Resource
i
mi
2
)
pan Naintupo
ocene L. Miocene
ine Lacustrine
0 1,010
750
375
5,000 6,600 - 16,000 3
0 11,500
y
ess.
Normal
% 5.0%
% 1.50%
h High
Gas Dry Gas
170.7
34.5
5.2
Kutei
(35,840mi
2
)
Balikpapan
ne Mid.-U. Miocene
Lacustrine
1,630
900
450
3,300 - 15,000
9,000
Highly Overpress
4.0%
0.70%
High
Oil
64.7
16.9
0.68
s and Shale Oil
arrels of ris
234 billion
eral compan
potential in
en reported.
es of Indones
es of Indonesia
Meliat Tabu
Mid. Miocene U. Mioc
Lacustrine Lacustr
880 510
1,000 1,500
400 600
3,300 - 13,120 3,300 - 6
10,000 5,000
Normal Norm
3.0% 3.0%
1.15% 0.70%
High High
Wet Gas Assoc.
142.3 37.3
25.1 3.8
3.8 0.2
Tarakan
(7,510mi
2
)
Meliat
Mid. Miocene U
Lacustrine L
880
1,000
400
3,300 - 13,120 3,
10,000
. Normal
3.0%
1.15%
High
Condensate
7.1
1.3
0.04
Tarakan
(7,510mi
Resource Asses

sked, techn
barrels of r
nies (AWE, B
Sumatra, bu
ia.
a.
Bintuni
(15,200mi
2
)
ul AifamGroup
cene Permian
rine Marine
0 3,340
0 1,000
0 500
6,600 5,000 - 15,000
0 9,500
mal Normal
% 1.5%
% 1.50%
h Low
Gas Dry Gas
3 213.8
114.3
28.6
Tabul
U. Miocene
Lacustrine
510
1,500
600
300 - 6,600
5,000
Normal
3.0%
0.70%
High
Oil
103.7
10.6
0.32
n
i
2
)
ssment
nically
risked
Bukit,
ut no
XXIII. Indon

June, 2013

In
the non-
but is st
tectonica
INTROD
In
of coal, o
oil produ
since 20
billion ba
major ex
during 2
rising fas
import te
In
investme
industry.
and wor
highest c
investme
these sig
D
foreign c
oil comp
ownersh
partly sta
including
include C
Indonesia

esia
n general, w
marine shal
ructurally m
ally more com
DUCTION
ndonesia is t
oil, and natu
uction and in
04. In 2011
arrels of pro
xporter of L
011 while e
ster than its
rminals are
ndonesias M
ent policy an
A separate
k programs
court unexp
ent. Indones
gnificant cha
Domestic an
companies o
pany, plans
ip. PGN (Pe
ate- and pu
g pursuing u
Chevron, To
an and forei
western Indo
e types, wh
more comple
mplex but ha
the worlds f
ral gas. For
ncreasing do
1 Indonesia
oved reserve
LNG and pip
exporting 3.7
output. Ga
being const
Ministry of E
nd awards e
e organizatio
. However
pectedly diss
sias 2001 O
nges and cle
d foreign c
perating the
to eventua
erusahaan G
ublicly owne
unconvention
otal, Conoco
gn operators
XX
onesia has c
hereas easte
ex. Eastern
as excellent
fourth most p
rmerly an oil
omestic con
produced a
es, while co
peline-conve
7 Bcfd.
1
H
as prices ha
ructed in Jav
Energy and
exploration a
on BPMIGA
r, a recent
solved BPM
Oil and Gas L
ear up the c
companies a
e bulk of prod
ally transitio
Gas Negara
ed, is gradu
nal gas dev
oPhillips, Ex
s.
EIA/ARI W
XIII-3
comparative
ern Indones
Indonesia
marine-depo
populous co
l exporter an
sumption ha
an average
onsuming 3.
eyed natura
owever, Ind
ave risen sig
va, Indonesi
Mineral Res
and producti
AS administe
(November
MIGAS, direc
Law is expe
urrent regula
are active in
duction. Pe
on into a l
a), the domin
ually moving
velopment.
xxonMobil,
World Shale Ga
ely simple st
sia has abun
(Sulawesi,
osited shale
ountry (250 m
nd OPEC m
ave made th
2.5 million b
1 million bb
al gas, prod
donesias do
gnificantly in
ias most de
sources (MI
on licenses
ers the imple
2012) judic
cting MIGAS
ected to be r
atory uncert
n Indonesia
ertamina, Ind
isted compa
nant natural
g into the u
Foreign com
and BP, as
s and Shale Oil
tructure but
ndant marin
Seram, Bur
e source rock
million) and a
ember, Indo
he country a
bbl/day of c
bl/day. Indo
ducing an a
omestic gas
recent yea
ensely popula
IGAS) admi
in the coun
ementation o
cial decision
S to implem
revised durin
tainty.
as oil and
donesias wh
any with s
gas pipeline
upstream b
mpanies act
s well as nu
Resource Asses

is dominate
e shale dep
ru, Irian Jay
ks.
a major prod
onesias dec
a net oil imp
rude oil from
onesia rema
verage 7.4
s consumpti
rs and new
ated island.
nisters upst
ntrys oil and
of these lice
n by Indone
ment oil and
ng 2013 to c
gas sector,
holly state-ow
ignificant pr
e operator th
usiness as
tive in Indo
umerous sm
ssment
ed by
posits
ya) is
ducer
clining
porter
m 4.0
ains a
Bcfd
on is
LNG
tream
d gas
enses
esias
d gas
clarify
with
wned
rivate
hat is
well,
nesia
maller
XXIII. Indon

June, 2013

A
onshore
and Sout
smaller,
basins in
and/or ex
T
Eocene t
depositio
deltaic en
are non-
the upst
resource
been rep
Figu

ERA PER
QUATE
CARBON
DEVO
SILU
P
A
L
E
O
Z
O
I
CPER
JURA
TRIA
M
E
S
O
Z
O
I
C
CRETA
C
E
N
O
Z
O
I
C
TERT
esia
ARIs review
sedimentary
th Sumatra b
structurally
n Indonesia a
xcessive stru
The petroleu
to Pliocene,
onal setting r
nvironments
marine coal
tream oil an
es at 574 Tc
ported.
re XXIII-2. Stra
RIOD EPOCH
ERNARY Pleistocene
Pliocene
Upper
Upper
Middle
Middle
Lower
Upper
Lower
NIFEROUS
ONIAN
URIAN
Peutu/Ar
Oligocene
MIAN
Lower
ASSIC
Lower
ASSIC
Paleocene
ACEOUS
Upper
Eocene
Miocene
TIARY
BASIN NO
w of publishe
y basins whi
basins on S
complex ba
appear to be
uctural comp
m source ro
with older P
ranges from
s in central a
y deposits t
nd gas reg
cf. Howeve
atigraphy of S

CENT
run/Belumai
Ba
Bampo
Jeuku
JuluRayou
Serula
Keutapang
Baong
Bruksah Pem
SUMA
RTHSUMATRA
XX
ed geologic
ich may hav
umatra Islan
asins in eas
e less prosp
plexity.
ocks in onsh
Permian sou
deepwater
and western
that may not
gulator in In
er, neither th
Source Rocks
RAL SUMATRA SOUTHSU
Minas Kasa
Batu R
SourceR
F
angkoBekasan
Guma
Manggala Talang
Petani
MuaraE
Telisa/Duri
Air Ben
matangKelesa
Lemata
Laha
ATRA
EIA/ARI W
XIII-4
literature in
ve shale gas
nd; the Kutei
stern Indone
pective due t
hore Indones
urce rocks p
marine in ea
Indonesia.
t be brittle e
ndonesia, h
he methodo

and Conventi
UMATRA
al
Raja
Rock
O R M A
Conventional Reservoi
ai
Akar
Enim
akat
Pamaluan
ang
at
Atan
Bebulu
BOH
Balikpapan
Klinjau
KampungBaru
EAST KA
KUTEI
World Shale Ga
dicates that
s/oil potentia
i and Taraka
esia (Salawa
to low TOC,
sian basins
resent in the
astern Indon
Many of Ind
enough for s
as estimate
logy nor the
ional Petroleu
Tabul
T I O N
ir Absent/Unknown
Bas
Bangg
Tomo Sujan
Sembakung
Meliat
M
Naintopo
Mesaloi M
Domaring
Poh
Seilor
Tarakan
K
LI MANTAN
TARAKAN TO
s and Shale Oil
t Indonesia
al. These inc
an basins in
ati, Bintuni,
high clay an
are relative
e east, Figu
nesia to mos
donesias or
shale develo
ed the coun
e basis of t
umReservoirs
BULA
Sawai
KolaSh
Kanikeh
Saku
sal clastic
Tehoru/Taunusa
Manusela/
SamanSaman
Lst
gai Granites
Nief
ori
Minahaki
Matindok
/Mantawa
Salas
Biak
Wahai/Fufa
Kintom
EAST I ND
OMORI
Resource Asses

has a numb
clude the Ce
Kalimantan
Tomori). O
nd CO
2
cont
ely young, m
re XXIII-2.
tly lacustrine
rganic-rich s
opment. MI
ntrys shale
his estimate
s in Indonesia
Ain
Ai
Aim
Sirga
Tipuma
Aifam
A
i
f
a
m
G
r
o
u
p
Kemum
Jass
Kembelang
(Roabiba-
Aalenian S
Kembelang
Tipuma
Faumai
Faumai
Klamogun NewGuinea
Waripi Waripi
Klasafet
Kais Kais
Klasaman
Klasafet
Sele
Steenkool
DONESI A
SALAWATI BINTUNI
ssment
ber of
entral
n; and
Other
tents,
mostly
Their
e and
hales
GAS,
e gas
e has
.

nim
fat
mau
gan
-
Ss)
Lst
t
I
XXIII. Indon

June, 2013

1 N
1.1 In
S
Central,
conventio
this basi
Central S
thermal E
Basin pr
coalbed
largely b
deposited
Fi
Source: AR
esia
NORTH, CE
ntroduction
Sumatra has
and South S
onal gas bot
n and the A
Sumatra Ba
EOR field, a
oduces both
methane de
arren of coa
d and poorly
igure XXIII-3.
I, 2013
ENTRAL, A
n and Geo
s shale oil a
Sumatra bas
th onshore a
Arun LNG e
asin produce
and is a majo
h oil and inc
eposits also
al. All three
y lithified sed
Prospective S
XX
AND SOUTH
logic Setti
and gas po
sins, Figure
and offshore
export facility
es mainly o
or consume
creasing vol
occur in So
basins are
dimentary ro
Shale Areas in
EIA/ARI W
XIII-5
H SUMATR
ng
tential in th
XXIII-3. Th
e. However
y is being c
il onshore,
r of natural
lumes of ga
outh and Ce
back-arc tec
ocks. Heat fl
n the Central a
World Shale Ga
RA BASINS
hree deep b
e North Sum
r, gas produc
converted to
notably 300
gas for stea
as from ons
entral Suma
ctonic settin
low and CO
2
and South Sum
s and Shale Oil
S
basin compl
matra Basin
ction has de
o handle LN
0,000 bbl/da
am fuel. The
hore fields.
atra, while N
ngs containin
2
content oft
matra Basins,
Resource Asses

exes: the N
produces m
eclined shar
NG imports.
ay from the
e South Sum
Major coa
North Suma
ng young, ra
ten are eleva
Indonesia.
ssment
North,
mainly
ply in
The
Duri
matra
l and
tra is
apidly
ated.
XXIII. Indon

June, 2013

N
during th
deep ma
water de
Lower B
Bampo b
source ro
and is the
T
low, seld
contamin
the Peutu
low in TO
young ag
and we d
C
Sumatra
north and
as a resu
The basi
by uplifte
marine s
transgres
Paleogen
Petani G
T
importan
60 billion
Menggal
consistin
1,500 mD
esia
North Suma
he Early Olig
arine claysto
eltaic facies
aong shale
black shale,
ock.
2
The B
e main sour
Thermal mat
dom exceed
nation are fa
u carbonate
OC and pos
ge. There ha
do not consid
Central Sum
Basin is a
d south. It d
ult of the Ind
n comprises
ed horst blo
ediments. S
ssive/regres
ne Pematan
roup are the
The Brown
t oil-generat
n barrels an
a sandstone
g of well-so
D of permea
atra Basin.
gocene, bec
nes, shales
formed in t
and the Ea
which form
Bampo conta
ce rock for g
urity of the
ing 1% (Typ
irly common
reservoir co
sibly ductile
ave been no
der it to be p
matra Basin
trans-tensio
developed d
dian Ocean
s a series of
ocks. The t
Sedimentatio
sive marine
ng Group, L
e main Tertia
Shale Form
ting formatio
nd sourced
es are the
orted quartzo
ability.
XX
A series of
came filled w
and shallow
he southeas
arly Miocene
med in localiz
ains thick, de
gas fields in
Baong, Bel
pe III) while
n: output from
ontains 82%
due to thei
o reports of s
prospective f
n. Sumatra
onal pull-apa
uring the La
plate subdu
f north-south
troughs bec
on began wit
e cycle that
ower Mioce
ary units.
mation withi
on in the So
the giant D
main conve
ose to suba
EIA/ARI W
XIII-6
f northsout
with predom
w water limes
st. The main
e Belumai c
zed thick an
eep marine
the northern
umai, and B
clay is abu
m the Arun g
% CO
2
. Over
r shallow de
shale explor
for shale gas
s most imp
art basin bo
ate Cretaceo
ucting at an
h trending fa
came filled w
th deposition
started in L
ene Sihapas
n the Pem
outh Sumatra
Duri and Mi
entional pet
rkosic sands
World Shale Ga
th trending
minantly mari
stones on st
n source ro
calcareous
nd euxinic d
claystones,
n part of the
Bampo shal
undant (mos
gas field ave
rall, these so
epth, rapid b
ration activity
s/oil develop
portant oil-pr
ounded by m
ous to Early
oblique ang
ault-bounded
with non-ma
n of contine
Late Oligoce
s Group, an
matang Grou
a Basin, hav
nas oil field
troleum res
stones with
s and Shale Oil
ridges and
ine deposits
tructural hig
cks are the
shale. The
deposits, is a
mudstones
North Suma
les is gas-p
stly smectite
erages abou
ource rocks
burial, high c
y in the Nort
pment.
roducing reg
major strike-
Tertiary in a
gle beneath
d troughs th
arine clastic
ntal sedime
ene or Early
d Middle M
up is consi
ving genera
ds.
3,4
The
ervoirs in C
average >2
Resource Asses

grabens, fo
s. These inc
hs, while sh
Middle Mio
e Late Oligo
another pote
and dark s
atra Basin.
rone but TO
e). CO
2
and
t 20% CO
2
,
appear to b
clay content
th Sumatra B
gion, the Ce
-slip faults t
a back-arc se
Southeast
hat are sepa
c, lacustrine
nts followed
y Miocene.
iocene/ Plio
idered the
ted an estim
overlying m
Central Sum
20% porosity
ssment
ormed
clude
hallow
ocene
ocene
ential
hales
OC is
d H
2
S
while
be too
t, and
Basin
entral
o the
etting
Asia.
arated
, and
d by a
The
ocene
most
mated
marine
matra,
y and
XXIII. Indon

June, 2013

T
system w
to local f
during s
organic m
10,500 ft
basin is a
25.3 mg
T
facies co
15% TOC
brown la
contains
T
rich, but
Pliocene
grey clay
biogenic
sequence
environm
gas/oil de
S
area as
early Ol
Thermal
incursion
standing
of organ
rocks. No
XXIII-4.
of being
esia
The Brown S
with anoxic b
facies chang
ource rock
matter. The
t deep in the
approximate
HC/g rock p
Two organic-
onsist of dar
C that consis
minated car
average 3.4
The Keruh, K
these are re
Binio Form
ystones and
gas. The B
e of claysto
ment.
7
The B
evelopment.
South Suma
well as a fo
igocene de
subsidence
ns to depos
blocks. Co
ic-rich deep
ortheast-dire
An estimate
triggered du
Shale is a lac
bottom cond
ges which re
deposition
organic-rich
e troughs (a
ely 3.7%, rea
petroleum ge
-rich facies o
rk brown to
sts of Types
bonate and
4% TOC, de
Kiliran, Sang
elatively imm
mation, part
d minor san
Binio Fm is
ones, siltsto
Binio and Ko
.
atra Basin.
ocus of coal
eposits of c
followed rift
sit fine-grain
ontinued sub
-water shale
ected compr
ed 50-90% o
uring large-sc
XX
custrine-form
ditions. Varia
eflect the dis
that resulte
h portion of t
average dept
aching 7.3%
eneration ca
occur within
black, well
s I and II ker
terrigenous
rived from a
gkarewang,
mature therm
of the Petan
ndstones tha
overlain by
ones, sands
orinci format
This basin
lbed methan
clastic sedi
ting in the la
ned marine
bsidence dro
es and marl
ression and
of the faults i
cale hydraul
EIA/ARI W
XIII-7
med unit, de
ation in oil c
stribution of
ed in varyin
the Brown S
th 8,500 ft).
at the well-
pacity.
5

n the Brown
laminated,
rogen. The s
mudstones
lgae that res
Lakat, and
mally and m
ni Group, co
at are charg
y the Late P
stones, and
tions are no
is a signific
ne exploratio
ments in t
ate Oligocen
sequences
owned the ca
s that later
tectonic inve
in the basin
lic fracturing
World Shale Ga
eposited in a
composition
productivity
g proportion
Shale is abo
Mean TOC
-exposed Ka
Shale Form
non-calcare
shallow lacu
with occasio
sulted in oil-
Kelesa Form
may not be b
ontains a se
ged with low
Pliocene Kor
minor coa
ot considered
cant conven
on. The ba
transpressio
ne to the ear
in lows an
arbonate sy
became ga
ersion began
are potentia
g.
8

s and Shale Oil
a freshwater
within the b
and paleoc
ns of algal
ut 295 ft thic
C for this un
arbindo coal
mation. The
eous shales
ustrine facies
onal coal str
-prone Type
mations also
brittle. The
equence of
w-CO
2
and
rinci Format
al deposited
d to be pros
ntional oil an
asin contains
onal pull-ap
rly Miocene,
nd reefal bu
ystem and ca
s-prone hyd
n in the mid
ally active an
Resource Asses

r to brackish
basin is attrib
climate cond
and terrige
ck and is 66
nit throughou
mine, with m
e deep lacus
, containing
s consists o
ringers. This
I kerogen.
6
o can be org
U. Miocene
medium- to
isotopically
ion, a regre
d under a f
spective for s
nd gas prod
s late Eoce
art depress
enabling m
uildups on
aused depo
drocarbon so
-Miocene, F
nd may be a
ssment
h lake
buted
itions
enous
600 to
ut the
mean
strine
g 1 to
f red-
s unit
ganic
to L.
o light
y light
essive
fluvial
shale
ucing
ne to
sions.
marine
high-
sition
ource
Figure
at risk
XXIII. Indon

June, 2013

Fi

Source: Hen

P
and brac
Akar For
to early O
B
Talang A
1,300 ft t
(R
o
0.5%
averagin

esia
igure XXIII-4.
nnings et al., 20
Petroleum so
ckish-water s
rmation.
9
Th
Oligocene in
Because of l
Akar Format
thick. TOC
%) down to a
g about 0.7%
Regional and
12
ource rock s
sediments in
hese units re
age, the La
limited data
ion is up to
ranges from
about 6,000
% R
o
at 7,00
XX
Detailed Cros
shales in the
n the Lahat F
each a gross
ahat can be o
, the Lahat
over 1 km t
m 1.7% to 8
0 ft depth, in
00 ft.
EIA/ARI W
XIII-8
ss Sections of
e South Su
Formation a
s thickness o
oil- or gas-p
Formation
thick in the
.5%, locally
ncreasing to
World Shale Ga
f the South Su
matra Basin
and coals an
of approxima
rone depend
was not qu
South Palem
reaching 16
o about 0.9%
s and Shale Oil
umatra Basin,
n include al
nd coaly sha
ately 1 km.
ding on loca
uantitatively
mbang sub-
6%. Therma
% R
o
at a d
Resource Asses

, Indonesia.
luvial, lacus
ales in the Ta
Mid-late Eo
ation.
assessed.
-basin, avera
al maturity i
depth of 8,0
ssment
strine,
alang
ocene
The
aging
s low
00 ft,
XXIII. Indon

June, 2013

T
coal and
an overa
coal, and
within tro
brittle no
developm
1.2 R
T
basins is
the shale
exploratio
that abou
North Su
C
the Cent
Within th
of 8,530
gradient
S
within a
average
considere
1.3 R
C
Shale are
and 69 b
shale oil
Indonesia
present i
esia
The Miocene
coalbed me
all regressive
d coaly shal
oughs up to
on-marine d
ment.
Reservoir P
The general
s well constra
e formations
on in these
ut 5% of the
umatra Basin
Central Sum
tral Sumatra
his prospecti
ft. Average
is normal an
South Suma
large 15,49
5% TOC a
ed high.
Resource A
Central Sum
e estimated
billion barrels
resource in
a, particula
n what is the
e Muara En
ethane resou
e cycle, resu
e.
10
Therma
4,000 ft de
deposit, too
Properties
location of t
ained by pub
s.
11
Howev
basins prov
total basin a
n is not cons
matra. The h
a Basin is es
ve area the
e TOC is est
nd the clay c
atra Basin.
90-mi
2
area
and 0.7% R
Assessmen
matra Basin
at 3.3 Tcf o
s of shale g
n the Centra
rly given th
e countrys m
XX
im Formatio
urces that w
ulting in a th
al maturity i
ep. Overall
shallow an
(Prospecti
he prospect
blic data but
ver, proprieta
ided improv
area could b
sidered prosp
high-graded
stimated at 4
Brown Shal
timated at 6.
content is co
The Eocene
and estima
R
o
. The pre
nt
n. Risked,
of associated
as and shal
al Sumatra B
he extensive
most importa
EIA/ARI W
XIII-9
on of the So
were deposite
hick sequenc
s quite low,
, the Muara
nd thermally
ive Area)
tive deep tro
t, unfortunat
ary maps d
ed control o
be depth- an
pective.
prospective
4,700-mi
2
ba
le averages
.0% and is i
onsidered me
e to Oligocen
ated to have
essure grad
technically
d gas and 2.
e oil in-plac
Basin to be
e drilling an
ant oil-produ
World Shale Ga
outh Sumat
ed in a coas
ce of mainly
reaching o
a Enim Fm i
y immature
oughs in the
tely, not the
developed b
on depth and
nd thermal-p
e area for th
ased on the
266 ft thick
n the oil win
edium.
ne Talang A
e a 367-ft t
dient is norm
recoverable
8 billion bar
ce (all figures
the most p
nd transport
ucing region.
s and Shale Oil
tra Basin co
stal plain en
y clastic san
only about 0
s a coaly an
e to be fav
e Central and
detailed dep
by ARI for c
d thermal m
prospective f
he Brown Sh
e extent of th
k (net) with a
ndow (R
o
of
Akar Formati
thick high-g
mal and the
e resources
rrels of shale
s risked). A
rospective s
rtation infras
.
Resource Asses

ontains impo
vironment d
dstone, silts
.4% to 0.45
nd probably
orable for s
d South Sum
pth distributi
coalbed met
aturity, indic
for shale oil.
hale Formati
he deep trou
an average d
0.8%). Pres
on is prospe
raded zone
e clay conte
from the B
e oil out of 4
ARI consider
shale potent
structure alr
ssment
ortant
during
stone,
% R
o

non-
shale
matra
ion of
thane
cating
The
ion in
ughs.
depth
ssure
ective
e with
ent is
Brown
42 Tcf
rs the
tial in
ready
XXIII. Indon

June, 2013

S
billion ba
136 billio
estimated
on the Ta
1.4 S
F
initiated
studies,
evaluatin
(NZOG).
studies e
Figure X
Source: Mod
esia
South Suma
arrels of tec
on barrels of
d Brown Sha
alang Akar.
Shale Leas
our shale g
by MIGAS i
the main s
ng these bloc
12
Although
eventually co
XXIII-5. Locati
dified from AWE
atra Basin.
hnically reco
f shale gas
ale oil resou
ing and Ex
gas joint stu
n March 20
ource rocks
cks, includin
Indonesia d
ould lead to
ion of Several
E Limited, April 2
XXI
The Talang
overable sh
and oil in-p
urce in Centr
xploration A
udies totalin
12, Figure X
s here actu
ng Bukit Ene
does not yet
Indonesias
l Approved Sh
2012
EIA/ARI W
II-10
g Akar Form
ale gas and
lace (all figu
ral Sumatra,
Activity
ng 5,000 km
XXIII-5. (No
ally are in
ergy Inc., AW
t have forma
first shale ga

hale Gas Joint
World Shale Ga
mation has a
d shale oil re
ures are risk
, there is mu
m
2
in the C
ote that altho
the oil wind
WE Limited,
al shale licen
as PSCs.
t-Study Areas
s and Shale Oil
an estimated
esources, o
ked). While
uch less pub
Central Sum
ough classif
dow.) Four
and New Ze
nsing regula
in The Centra
Resource Asses

d 4.1 Tcf an
out of 68 Tc
e larger tha
blic data ava
matra Basin
fied as shale
r companies
ealand Oil &
ations, these
al Sumatra Ba
ssment
d 4.1
f and
n the
ilable
were
e gas
s are
& Gas
e joint
asin.
XXIII. Indon

June, 2013

C
participat
basins.
and antic
E
about the
based N
(Bohorok
shale ga
anywhere

2 K
2.1 In
T
portion c
the seco
Indonesia
market w
Bontang
productio
T
contains
shales of
platforms
deposited
main sou
fluvial-de
conventio

esia
Calgary-base
tes in seve
Bukit also h
cipates an aw
Earlier this ye
eir study du
NZOG holds
k) Sumatra b
as opportuni
e in Indones
KUTEI AND
ntroduction
The Kutei (o
entered arou
nd largest o
as largest g
within this l
has been
on in East Ka
The 7,510-m
a similar se
f Late Eocen
s. Finally M
d. The enti
urce rocks a
eltaic sandst
onal reservo
ed Bukit is
eral convent
has applied
ward during
ear Australia
ring Q3 201
s convention
basins, partn
ties nearby
sia.
D TARAKAN
n and Geo
r Kutai) is I
und the Mah
oil and gas p
gas producer
ightly popul
operating
alimantan.
mi
2
Tarakan
edimentary s
ne age are o
Mid-Miocene
ire sequenc
are Mid-Late
tones of the
oirs.

XXI
a small pri
tional petrol
for unconve
2013.
a-based AW
12, but to da
nal petroleu
nering with B
. No shale
N BASINS
logic Setti
Indonesias
hakam Delta
producing re
r. The Bont
lated region
at about 1
Basin, loca
sequence as
overlain by O
to Quaterna
ce has been
Miocene co
e Tabul and
EIA/ARI W
II-11
vate oil and
leum licens
entional sha
WE announce
ate no decis
um PSCs i
Bukit in eac
e-related dril
ng
largest sed
a in eastern
egion in Indo
ang LNG ex
n, with a ca
6 million t/
ated north u
s the Kutei
Oligocene to
ary fluvio-de
gently defo
oals and coa
Plio-Pleisto
World Shale Ga
d gas E&P
ses in the C
le gas/oil ex
ed that they
sion has bee
in the Cent
h block, and
lling has be
dimentary ba
Kalimantan,
onesia after
xport facility
apacity of 2
/yr due to
up the coa
Basin. Fluv
o Early Mioc
eltaic sandst
ormed with
aly shales o
ocene Tarak
s and Shale Oil
company
Central and
xploration b
planned to
en released.
tral (Kisaran
d also report
een disclose
asin, its 36,
, Figure XXI
r Central Su
on the coas
22.5 million
declining c
st in northe
vio-deltaic to
cene open m
tone, shales
NE-SW tren
of the Tabul
kan Formati
Resource Asses

that operate
d North Sum
locks in Sum
make a dec
.
13
New Zea
n) and Nor
ts it is evalu
ed in Sumat
000-mi
2
ons
II-6. The Ku
matra as we
st is the main
t/yr. How
conventional
east Kalima
o shallow m
marine carbo
, and coals
nding folds.
Formation,
ion are the
ssment
es or
matra
matra
cision
aland
rthern
uating
tra or
shore
utei is
ell as
n gas
wever,
l gas
antan,
marine
onate
were
The
while
main
XXIII. Indon

June, 2013

Fig
Source: AR

T
on the w
depositio
center du
basin ed
these ma

esia
gure XXIII-6. P
I, 2013
The Kutei Ba
west, and t
on during th
uring the late
ge. Figure
arine mudroc
Prospective S
asin is bound
he Paternos
e mid-late E
e Eocene to
XXIII-7 sho
cks are mos

XXI
Shale Areas in
ded by the M
ster High o
Eocene. De
o late Oligoc
ows the gene
tly deeper th
EIA/ARI W
II-12
the Kutei and
Mangkaliat P
on the south
eep marine
cene, with a
eral structur
han 5 km in
World Shale Ga
d Tarakan Bas
Platform on
h. It devel
sediments w
carbonate p
re of the Ku
the onshore
s and Shale Oil
sins, Eastern K
the north, t
loped by rif
were depos
platform dev
utei Basin an
e basin exten
Resource Asses

Kalimantan.
the Kuching
fting and sy
sited in the
veloped alon
nd illustrates
nt.
ssment
High
yn-rift
basin
ng the
s that
XXIII. Indon

June, 2013

Figu
Source: Ram

T
and carb
from thes
shale ga
formed d
mudston
0.6% to 0
T
characte
kerogen.
The inter
to the top
while Mio
appears
S
trending
during th
being tra
ranging u
esia
ure XXIII-7. Ge
Showi
mdhan and Gou
The main sou
bonaceous s
se shallower
s/oil explora
deltaic sedim
es. Therma
0.9% R
o
.
14

The mostly d
rized by a d
15
TOC ran
rbedded sha
p of the oil g
ocene rocks
to be largely
Structural de
anticlines w
he Neogene
apped in lith
up to more
eneralized Eas
ng Marine Mu
ty, 2011
urce rocks r
hales, with e
r Neogene fl
ation targets
ments, which
al maturity o
deltaic Mioc
depositional
ges from 2%
ale, sand, an
generative z
s become o
y confined to
eformation s
with more ge
resulted in
hifying sand
than twice h
XXI
st-West Trend
udrocks Mostly
recognized in
essentially a
luvio-deltaic
s in the basi
h are rich in
f this seque
cene shales
environmen
% to 6% (av
nd coal sequ
zone (0.7% R
overmature f
o the eastern
started durin
entle synclin
significant o
stones due
hydrostatic l
EIA/ARI W
II-13
ding Structura
y Deeper than
n the Kutei
all of the conv
deposits. T
n. Prograd
n Type III o
nce in the d
s of the Bal
nt rich in lan
verage 4%) b
uence is ove
R
o
) average
for gas belo
n Kalimantan
ng the midd
nes. Rapid
overpressur
to interbed
levels (1.0 p
World Shale Ga
al Cross-Sectio
n 5 Kmin the O
Basin are M
ventional oil
These source
ing depositi
organic matt
deeper troug
likpapan Gr
nd-plant mat
but some int
er 3,000 feet
s 9,000 feet
ow 19,000 f
n coast and
dle Miocene
deposition
re, caused b
dded mudsto
psi/ft), is pre
s and Shale Oil
on Across the
Onshore Area
Mid-Late Mio
l and gas pro
e rocks also
on during th
ter in coal s
ghs is oil-pro
roup in the
terial and co
tervals have
t thick in ma
t in the onsh
ft depth. S
productive M
e, forming s
followed by
by gas gene
one seals.
esent throug
Resource Asses

e Kutei Basin,
as.
ocene mudst
oduction sou
o are the prin
he early Mio
seams and
one, ranging
Kutei Basin
ontaining Ty
e over 20% T
any areas. D
hore Kutei B
hale oil pote
Mahakam D
teep north-s
basin unloa
eration and w
Overpressu
ghout the co
ssment

tones
urced
ncipal
ocene
coaly
from
n are
ype III
TOC.
Depth
Basin,
ential
elta.
south
ading
water
uring,
oastal
XXIII. Indon

June, 2013

portion o
below ab
30C and
Figure XX
Source: Ram

F
deposits
were dep
Formatio
Unfortun
prospect
T
content,
Type II.
ft thick).
burial his
averagin
less matu
esia
of the Kutei
bout 12,000
d the averag
XIII-8. Pressu
Thermal
mdhan and Gou
urther north
overlain by
posited unde
on, along wi
ately, these
ive for shale
The Naintupo
ranging from
Well penetr
Depth rang
story modeli
g 1.5%). Lo
ure levels, w
Basin starti
ft, Figure XX
ge geotherm
re Gradients i
Maturity is O
ty, 2011
in the Tara
y mostly no
er deltaic co
ith the Early
three sourc
e gas explora
o contains
m 1.6% to 12
rations indica
ges from 6,0
ing indicate
ocal structur
where it could
XXI
ng below a
XIII-8.
16
The
al gradient is
in the Kutei B
il-Prone to Im
akan Basin, t
n-marine cla
onditions. T
y Miocene
ce rocks are
ation.
deltaic sequ
2.1% (averag
ate the Nain
000 ft to ov
the Naintup
ral uplifts m
d be oil pron
EIA/ARI W
II-14
depth of ab
e average s
s about 30C
asin Can Reac
mmature, with a
the basin co
astic sedime
The principal
Naintupo an
e coal-rich d
uences of s
ge 5%). Ke
ntupo Fm is
ver 16,000 fe
po Fm is in
ay elevate t
ne.
World Shale Ga
bout 7,000 f
surface temp
C/km.
ch 1.0 psi/ft B
a Very LowRo
ontains Eoce
ents of Mio
l source roc
nd Middle M
deltaic depos
shale with f
rogen is ma
1,000 to 1,5
eet (average
the dry gas
the Naintupo
s and Shale Oil
ft and accel
perature in th
BelowDepths
o/Depth Gradi
ene to Mioce
cene and y
ck is the Lat
Miocene Me
sits that are
fair to good
ainly Type III
500 feet thic
e 11,500 ft)
s window (R
o to shallow
Resource Asses

erating mar
he Kutei Ba
of About 12,0
ient.
ene deep m
younger age
e Miocene T
eliat formatio
e considered
d organic ca
along with s
k (average 1
). Well data
R
o
1.3% to 2
wer and ther
ssment
rkedly
sin is
00 ft.
marine
e that
Tabul
ons.
17

d less
arbon
some
1,250
a and
2.0%,
rmally
XXIII. Indon

June, 2013

T
with sand
0.7% to
3,300 to
13,000 fe
Meliat ha
T
Tabul Fo
in coal-ri
Formatio
while de
reflectan
2.2 R
K
Balikpap
Delta, ba
mapping
thermally
Reservoi
T
(oil- to g
coalbed
cross-sec
structura
within its
R
o
). The
window (
(R
o
1.5%
esia
The overlying
dstone, coal
6.5% (avera
6,600 ft thi
eet in the tr
as wet gas m
The predomi
ormation, ag
ch sequence
on averages
pth ranges
ce averages
Reservoir P
Kutei Basin.
an Fm are
ased on limit
. These sh
y immature
ir pressure is
Tarakan Bas
as-prone).
methane m
ction across
l conditions
s 510-mi
2
pro
e Meliat Fo
(R
o
1.15%), w
%).
g Middle Mi
, and dolom
age 3% TOC
ck (average
roughs (ave
maturity (1.0
nant source
ain a non-m
es. Both lith
about 3,30
from 3,300
s 0.7%, in th
Properties
Lacustrine
estimated t
ted cross-se
hales are oi
basin. Ne
s elevated a
sin. Three
Depth was
maps develop
s the onsh
. The L. Mi
ospective ar
ormation occ
while the Na
XXI
ocene Melia
mite layers. T
C), mainly T
e 5,000). D
erage depth
to 1.3% R
o
)
e rocks of th
marine, delta
hologies con
0 feet thick
feet to 6,6
e oil window
(Prospecti
e mudstones
to be prosp
ection data a
il-prone (R
o
et thickness
above hydros
shale-beari
estimated b
ped by ARI
hore north-c
iocene Tabu
rea, and has
curs at 10,0
aintupo Form

EIA/ARI W
II-15
at Formation
Total organic
ype III kerog
epth varies
10,000 ft).
.
he Tarakan
ic sequence
ntain mixture
, of which a
00 feet. W
w.
ive Area)
s and carbon
ective within
and augmen
0.7%) even
is estimate
static.
ng targets a
based on lim
. Figure XX
central Tara
ul Fm avera
s 3.0% avera
000-ft averag
mation avera
World Shale Ga
n includes s
c carbon of t
gen. The M
from 3,300
Thermal h
Basin are
e. TOC rang
es of Type II
approximate
Well data an
naceous sha
n a 1,630-m
ted by ARI-p
n at averag
ed at 450 ft
are present
mited cross-s
XIII-9 is a w
akan Basin,
ges 600 ft t
age TOC th
ge depth an
ages 11,500
s and Shale Oil
shales and c
the deltaic c
Meliat Forma
feet on bas
history analy
shales of th
ges from 0.5
I and III kero
ly 1,500 fee
nd modeling
ales in the M
mi
2
area nea
proprietary c
ge 9,000 ft
ft, with aver
at varying
section data
west-east tr
, showing g
thick (net) a
at is in the o
nd is mostly
ft deep and
Resource Asses

claystones a
clays ranges
ation ranges
sin highs to
ysis indicate
he Late Mio
5% to 4%, h
ogen. The T
et is organic
indicate vit
Mid-Late Mio
ar the Maha
coalbed met
depth within
rage 4.0% T
thermal ma
a and propri
ending struc
generally s
nd 5,000 ft
oil window (
y in the wet
is dry-gas-p
ssment
along
s from
from
over
s the
ocene
higher
Tabul
c-rich,
trinite
ocene
akam
thane
n this
TOC.
aturity
ietary
ctural
imple
deep
(0.7%
t gas
prone
XXIII. Indon

June, 2013

Figure X
Basin, S
Pro
Source: Sub

2.3 R
K
the Kutei
shale ga
billion ba
T
barrels o
billion ba
formation
out of 35
small vol
2.4 A
N
basins.
esia
XXIII-9. West-
Showing Gene
ospective Dep
broto et al., 2005
Resource A
Kutei Basin.
i Basin has a
as and shale
arrels. Note
Tarakan Bas
of technically
arrels of sha
ns have an e
5 and 25 Tcf
ume (0.04 b
Activity
No shale gas
-East Trending
erally Simple
pths of 1 to 2 K
5
Assessmen
Based on
an estimated
e oil resourc
that this unit
sin. The oil-
y recoverab
ale gas and
estimated 5
f of risked sh
billion barrels
s/oil leasing o
XXI
g Structural C
Structural Co
Kmwith Oil-p
nt
the geologic
d 1.3 Tcf and
ces, out of r
t is coaly an
-prone Tabu
le shale gas
shale oil in-
and 4 Tcf of
hale gas in-p
s) of technic
or exploratio
EIA/ARI W
II-16
Cross-section
nditions. Sou
rone R
o
of 0.6
c conditions
d 0.7 billion
risked shale
d may not b
ul Formation
s and shale
place (riske
f risked, tech
place, respe
ally recovera
on activity ha
World Shale Ga
Across the O
urce Rocks of
6%to 0.7%. Ve
described a
barrels of ris
e gas and o
be brittle.
has an esti
e oil resourc
d). The gas
hnically reco
ectively. In a
able conden
as been repo
s and Shale Oil
nshore North
f the Tabul For
ertical Exagge
above, the B
sked, techni
oil in-place o
mated 0.2 T
ces, out of 3
s-prone Nai
overable sha
addition, the
nsate from s
orted in the
Resource Asses

-Central Tarak
rmation Occu
eration =3x.
Balikpapan F
cally recove
of 16 Tcf an
Tcf and 0.3 b
3.8 Tcf and
ntupo and M
ale gas resou
Meliat Fm h
hale.
Kutei or Tar
ssment
kan
r at
Fm in
erable
nd 17
billion
10.6
Meliat
urces
has a
rakan
XXIII. Indon

June, 2013

3 E
3.1 In
E
Indonesia
Sulawes
deposited
window.
single Ea
Source: AR

esia
EASTERN I
ntroduction
Eastern Indo
a, with sign
i and the i
d (non-lacus
These bas
astern Indon
I, 2013
NDONESIA
n and Geo
onesian sedi
nificantly old
slands of e
strine) shale
sins tend to
esian region
Figure XXIII-1

XXI
A BASINS
logic Setti
imentary ba
der deposits
eastern Indo
e. Thermal
be small an
n for analysis
0. Prospectiv
EIA/ARI W
II-17
ngs
asins are ma
s generally
onesia have
maturity is h
nd tectonica
s, Figure XX
ve Shale Areas
World Shale Ga
arkedly diffe
reflecting a
e some of
higher too, p
ally complex
XIII-10.
s in Eastern In
s and Shale Oil
erent from t
a more ma
the country
predominate
, thus we g
ndonesia.
Resource Asses

those in we
arine charac
ys only ma
ely in the dry
roup them i
ssment
estern
cter.
18

arine-
y gas
nto a
XXIII. Indon

June, 2013

T
contain t
from ove
source ro
which co
sandston
Klasama
Type II/II
over 2,00
ft in the
gas level
T
0.6% to
Salawati
from less
oil seeps
1.0% in d
B
appears
Indonesia
The stra
Mesozoic
These ar
shales o
sandston
Kembela
L
occurred
field, whi
is export
shales, s
esia
The Salawat
hick source
ermature Ju
ock is Late M
ontain Types
nes of the Pl
n and Kais/
II kerogen, a
00 feet thick
Sele Strait a
ls (1.0% R
o
)
The Klasama
2.3%), main
Basin, abo
s than 3,000
s in the north
deeper parts
Bintuni Basi
to have the
a region. T
atigraphic se
c, and Tertia
re unconform
of shallow m
nes of the T
angen Forma
imited oil p
during the
ich produces
ted via the
since they ar
ti and Bintu
rocks of Pe
rassic marin
Miocene ma
s II/III kerog
io-Pleistoce
/Klasafet fo
albeit with re
in deep trou
and Salawa
at a depth o
an Formatio
nly Type II
ut 15 to 20
0 ft to more
h, where cal
s of the Sala
in. The Bint
e simplest st
he Bintuni B
ection resem
ary units. B
mably overla
marine origi
Triassic-Jura
ation.
roduction fr
1930s. In t
s from Midd
Tangguh LN
re typically im
XXI
ni basins in
ermian age t
ne shales co
rine shales
gen. The K
ne Klasama
rmations are
elatively low
ughs, with d
ti Island to
of 10,000 fee
n contains o
and III kero
% of which
than 10,000
culated vitri
wati Basin.
tuni Basin, lo
tructural con
Basin is bord
mbles that
asement co
ain by Carbo
in (Aifam G
assic Tipuma
rom New G
the 1990s A
dle Jurassic
NG facility.
22
mmature and
EIA/ARI W
II-18
n the Birds
that are rich
ontaining Ty
and marlsto
Klasafet is o
an Formation
e potential
w TOC of 0.3
epth ranging
the north an
et.
21

organic-rich
ogen. It ran
contains el
0 ft. Biomar
nite reflecta
ocated in the
nditions and
dered to the
of the Sala
nsists of Sil
oniferous an
Group). Ne
a Formation
uinea Grou
ARCO Indon
Roabiba a
2
Some so
d low in orga
World Shale Ga
s Head regi
in Type III
ypes II/III ke
ones of the K
overlain by
n.
19
Marine m
shale oil ta
3% to 1.1%
g from 5,000
nd west. Th
shales with
nges from 3
levated TOC
rker data ind
nce values
e eastern sid
d best shale
e east by the
awati Basin,
urian and D
nd Upper Pe
ext are inte
n and Creta
p limestone
nesia discov
and Aalenia
urce rock s
anic content
s and Shale Oil
on of weste
coals with s
erogen. Ho
Kais and Kla
thick regres
marlstones a
rgets. They
%.
20
The Kla
0 ft in the ea
hermal matu
h average 1
3,000 to 5,00
C above 1%
dicate the Kl
approach 0.
de of the Bir
e prospectivi
e Lengguru
, with prese
Devonian me
ermian clasti
erbedded flu
aceous delta
es (Kais/Kla
vered the W
an sandston
tudies disco
t, mostly und
Resource Asses

ern West P
some contrib
owever, the
asafet format
ssive shales
and shales o
y contain m
asafet is 1,0
ast to over 12
urity reaches
.7% TOC (r
00 ft thick i
%. Depth ra
lasaman sou
.7% R
o
and
rds Head re
ty in the ea
Fold/Thrust
erved Paleo
etamorphic r
ic sediments
uvial shales
aic shales o
safet equiva
Wiriagar Deep
ne reservoirs
ount the Kla
der 1% TOC
ssment
Papua
bution
main
tions,
s and
of the
mainly
00 to
2,000
s wet
range
n the
anges
urced
up to
egion,
astern
Belt.
ozoic,
rocks.
s and
s and
of the
alent)
p gas
s and
asafet
.
23

XXIII. Indon

June, 2013

M
potential
Permian
Bintuni.
relatively
feet, whil
T
more del
10,000 fe
index is
Ainim co
In
hydrocar
the shallo
Tipuma r
Jurassic
T
basins, f
within the
Pliocene
exploratio
2001.
24

shales w
T
target fo
limestone
averagin
higher Ty
depth of

esia
More importa
. The Aifat a
Aifam Grou
The older
y modest TO
le depth can
The overlying
taic setting.
eet. This un
over 300 m
mpared with
n addition t
rbon source.
ow marine s
ranges from
shales are i
The Tomori B
from which i
e greater Ba
collision a
on began du
Oil and gas
within the con
The Lower M
r shale exp
e and coal,
g 2 to 4% a
ype II keroge
7,200 ft, bec
ant are the
and Ainim fo
up and con
Aifat cons
OC of 1.0%
n exceed 12,
g Ainim Form
Source roc
it contains a
mg HC/g. V
h the older A
to the Per
. The Tipum
shales indica
4,000 to ne
n the immat
Basin of eas
it was trans
anggai-Sula
and thrusting
uring the 19
are produce
ntemporaneo
Miocene Tom
ploration. It
with the up
and consisti
en but TOC
coming gas
XXI
Permian an
ormations a
nsidered to
ists of blac
to 1.8%, av
000 ft in the
mation also c
ck thickness
adequate or
itrinite reflec
Aifat, indicati
mian, the
ma contains
ate maximum
arly 8,000 fe
ture-mature
tern Sulawe
ported along
a micro-conti
g of contine
80s, resultin
ed from frac
ous Tomori F
mori Fm, ran
comprises
per section
ing of Type
generally is
prone (> 1.0
EIA/ARI W
II-19
d Jurassic s
are the respe
be the mai
ck marine c
veraging 1.5
e Bintuni Bas
contains cal
is approxim
rganic matte
ctance is sh
ng an uncon
Jurassic Ti
sandstones
m TOC of 4.5
eet deep. N
oil window, a
esi shares m
g strike-slip
inent, a fold
ental crust
ng in the dis
ctured limest
Formation, w
nging from 5
marine and
typically mo
II/III keroge
s less than 1
0% R
o
) below
World Shale Ga
sediments, a
ective lower
n hydrocarb
calcareous s
5%. Gross
sin.
lcareous sha
mately 2,400
er with abund
harply lower
nformity with
puma Form
and carbon
5 and 7.6%,
Near the Bint
at about 0.6
many similarit
faults. The
d-thrust syst
over ophio
scovery of th
tones of the
which is sim
500 to 1,000
d carbonace
ore deltaic i
en. The low
%. The Tom
w a depth of
s and Shale Oil
analyzed be
r and upper
bon generat
shales. Lim
thickness ca
ales, althoug
feet. Depth
dant coal se
(0.66% R
o
)
hin the Perm
mation may
naceous sha
, mainly hum
tuni Basins
6% R
o
.
ties with the
e Tomori is
em that dev
litic materia
he Senoro g
Lower Mioc
ilar to the Kl
0 ft thick, a
eous shale a
n origin. TO
wer marine
mori Fm atta
f about 11,30
Resource Asses

elow for sha
members o
ting rocks in
mited data
an exceed 3
gh deposited
h averages a
eams. Hydr
) in the ove
mian.
be a pot
ales. Analys
mic kerogen.
western limi
e Salawati/B
a foreland
veloped follo
al. Oil and
giant gas fie
cene, source
asafet Fm.
lso is a pote
along with s
OC is fairly
section con
ains 0.5% R
00 ft.
25

ssment
ale oil
of the
n the
show
3,500
d in a
about
rogen
rlying
ential
ses of
The
it, the
intuni
basin
owing
d gas
eld in
ed by
ential
some
high,
ntains
o
at a
XXIII. Indon

June, 2013

F
marine p
assembla
oil, sour
produced
sandston
3.2 R
O
and reso
analysis.
B
across th
here are
prospect
Further e
prospect
the Leng
F
central B
Ainim for
simple, a
Aifam G
central B

esia
inally, the B
pelagic and
age later co
rced from T
d from fractu
nes and lime
Reservoir P
Only the Bint
ources, while

Bintuni Bas
he east-cen
too deep b
ive depths o
east this unit
ive Klasafet
guru Fold an
igure XXIII-
Bintuni Basin
rmations) is
and within th
roup shale
Bintuni Basin
ula Basin in
oceanic dep
ollided with I
Triassic-Jura
ured Jurass
estones.
27

Properties
tuni Basin h
e the other a
in. Figure
tral Bintuni
but marine s
of 2.5 to 5
t is structura
t shale area
nd Thrust be
12 shows a
n. Here the
about 1.0 to
he volatile o
region is as
.

XXI
northeast S
posits, inclu
rian Jaya an
assic marine
sic limestone
(Prospecti
ad sufficien
areas (Salaw
XXIII-1 sho
Basin.
28
A
shales within
km, althoug
ally deforme
is inferred t
elt, but this u
a west-east
e organic-ric
o 3.5 km de
oil to wet ga
ssumed to
EIA/ARI W
II-20
Seram island
ding clays,
nd the Austr
e carbonate
e as well as
ive Area)
t data to ev
wati, Tomori,
ows a WSW
According to
n the Klasaf
h as noted
d by thrustin
to be a north
unit was not
trending st
h and prosp
eep (possibly
as windows
be a north-
World Shale Ga
d contains M
limestones,
ralian contin
e Type II
s from Plio-P
valuate shale
Bula) lacke
W-ENE trend
this interpr
fet Fm dip g
above thes
ng and not c
h-south elon
assessed d
tructural cro
pective Perm
y deeper fur
(R
o
of 1.0%
-south elong
s and Shale Oil
Mesozoic to M
and thin sa
nental shelf.2
mudstone s
Pleistocene
e gas/oil res
ed adequate
ding structu
retation, the
gently to the
se appear to
considered p
ngated recta
ue to its low
oss-section a
mian Aifam
rther to the e
% to 1.2%).
gated rectan
Resource Asses

Mid-Tertiary
andstones.
26 Convent
source rock
marginal m
servoir prope
data for det
ral cross-se
Permian s
e east and a
o have low T
prospective.
angle just we
w TOC (<1%)
across the w
Group (Aifa
east), struct
The prospe
ngle in the w
ssment
open
This
tional
ks, is
marine
erties
tailed
ection
hales
are at
TOC.
The
est of
).
west-
t and
urally
ective
west-
XXIII. Indon

June, 2013

Figure
Showing
Source: Hill

Figure X
rich a
Source: Che

esia
e XXIII-11. Ge
Marine Shale
Fu
et al., 2001
XXIII-12. West-
and Prospectiv
Structurally S
evalier et al., 198
eneralized WS
es in the Klasa
rther East this
-east Structur
ve Permian Ai
Simple, and W
86

XXI
SW-ENE Trend
afet FmDippin
s Unit is Struc
ral Cross-sect
famGroup (A
Within the Vola
EIA/ARI W
II-21
ding Structura
ng Gently to th
cturally Deform

ion Across W
Aifat and Ainim
atile Oil to Wet
World Shale Ga
al Cross-sectio
he East at Pro
med and Not P
West-central Bi
mformations)
t Gas Window
s and Shale Oil
on Across the
ospective Dep
Prospective.
intuni Basin.
is about 1.0 to
ws (R
o
of 1.0%
Resource Asses

e Bintuni Basin
ths of 2.5 to 5
Here the Orga
o 3.5 KmDeep
to 1.2%).
ssment
n,
5 Km.
anic-
p,
XXIII. Indon

June, 2013

3.3 R
B
Tcf of tec
as define
shale ga
services.
3.4 S
N
4 O
In
gas/oil d
siltstone,
frac shale
B
S
co
P
F
m
m
In
co
g

O
th
d
s
S
in
m
tr

S
o
e
esia
Resource A
Bintuni Basi
chnically rec
ed by the R
o
as target in
.
Shale Leas
No shale gas
OTHER BAS
ndonesias o
development
, coal, and c
e well comp
Bengkulu Bas
South Suma
ontains pred
Pleistocene a
ormation as
mudstone, co
marine envir
ntense faulti
oaly non-bri
as/oil develo
Ombilin Basin
he eastern s
eveloped du
paced folds
Sangkarewan
nto fluvial de
marine Mioce
ransgression
Several shall
nly a few
ncountered
Assessmen
in. The pros
coverable sh
o
contours o
n Indonesia,
ing and Ex
s/oil leasing o
SINS
other onshor
t. These
coaly shale
letions.
sin. Located
tra Basin, t
dominantly
age. Geoch
s a potentia
oal seams,
ronment tha
ng, steep s
ittle lithology
opment.
n. This sma
side of the B
uring the Eo
s trending n
ng formation
eposits of th
ene Ombilin
n.
low coal min
conventiona
conventiona
XXI
nt
spective are
hale gas res
of 1.2% to 1
, although
xploration A
or exploratio
re sedimenta
areas conta
that are not
d in southwe
this relative
non-marine
hemical ana
al source ro
sandstone,
at transitione
structural dip
y all appear
all non-produ
Barisan Mou
ocene to Mid
orthwest-so
ns were dep
he Late Olig
n Formation
nes are in o
al oil & ga
al sandstone
EIA/ARI W
II-22
as of the Pe
sources out
.8%. This m
its location
Activity
on activity ha
ary basins a
ain mainly
t considered
est Sumatra
ly small an
clastic and
alyses have
ock. This
and conglo
ed into man
ps, low therm
r to make th
ucing basin
untains. It is
ddle Oligoce
utheast. T
posited in lac
gocene Saw
n which resu
operation alo
as explorat
e reservoirs c
World Shale Ga
ermian Aifam
of 114 Tcf o
marine-depo
is relatively
as been repo
appear to ha
non-marine
d stable and
a across the
nd structura
d sedimenta
identified th
unit consist
omerate dep
ngrove and
mal maturity
he Bengkulu
is located in
s a transpre
ene and wa
he basal E
custrine rift
wahtambang
ulted from a
ong the edg
ion wells h
containing n
s and Shale Oil
m Group has
of gas in-pla
osited unit c
y remote fr
orted in east
ave limited p
e sequence
brittle enou
Barisan Mo
lly deforme
ry rocks of
he Mid-Late
ts of mudst
posited in a
freshwater
y (R
o
averag
u Basin uns
n west-centra
essional pull
as later defo
ocene Bran
settings. T
g Formation,
a global se
ge of the Om
have been
natural gas w
Resource Asses

s an estimate
ace (both ris
could be the
rom market
tern Indones
potential for s
s of sands
ugh for horiz
ountains from
d fore-arc
Eocene thr
Miocene Le
tone, calcar
a mainly sh
r environme
ges 0.40%)
suitable for s
al Sumatra a
l-apart basin
ormed into t
ni and Oligo
This later evo
, followed b
ea level rise
mbilin Basin
drilled. T
with high leve
ssment
ed 29
sked),
e best
t and
sia.
shale
stone,
zontal
m the
basin
rough
emau
reous
allow
nts.
29

, and
shale
along
n that
tightly
ocene
olved
y the
e and
n, but
These
els of
XXIII. Indon

June, 2013

C
S
co
O
B

T
st
N
a
O
d
e
ti
ca

M
B
T
T
o
th
a
a
B
w

T
st
ro
co
of
so

T
p
th
H
th
1
T
b
T

esia
CO
2
(50-90%
Sawahlunto,
ontain Type
Overall, the c
Basin shales
The Northwe
tructures on
Northwest Ja
nd interbedd
Oligocene an
eposited in
volved to ma
me subside
arbonates.
Miocene san
Basin, source
Talang Akar
Total organic
rganic-rich (
hick, compris
bout 7,500 t
nd gas pron
Basin are co
wells.
The Barito B
tructurally s
ocks which
onventional
f the basin i
outhern Bar
The Middle E
etroleum so
hin coal dep
High-TOC sh
hick in the d
2,000 ft, av
TOC is unce
asin, reachi
Tanjung Fm a
%). Geochem
and Ombilin
e III kerogen
complex stru
appears to
st Java Bas
Java Island
ava Basin, f
ded lacustrin
nd Early M
fluvio-delta
ainly carbon
ence dimini
dstone is th
ed mainly b
Formation.
c carbon (TO
(0.5 to 9%).
3
sing coal se
to 11,500 ft.
ne, becomin
oaly and unl
Basin in so
imple basin
unconforma
oil productio
s non-produ
ito.
Eocene to la
ource rock, c
osits.
33
The
hale and ma
deep southe
veraging abo
ertain. The
ng dry gas m
are coaly an
XXI
mical analys
n formations
n that mostly
ucture, high
make them
sin northeast
d. The Jatiba
formed by ri
ne shales we
iocene, form
aic, coastal,
nate during th
ished, with
he primary c
by carbonac
Organic m
OC) reaches
32
The inter-
eams, limest
These non
g increasing
likely to be
outhern Kali
n containing
ably overlie
on (of 30-40
uctive. Rece
ate Early O
consisting of
e formation i
arl is concen
ern Barito Ba
out 6,000 ft
Tanjung ha
maturity in th
nd probably n
EIA/ARI W
II-23
ses indicate
are the bes
y has reach
CO
2
conten
poorly suited
t of Jakarta
arang sub-b
ifting during
ere deposite
ming a seq
, and shallo
he Middle M
deposition
conventional
eous shale
material cons
s 40-70% in
-bedded sha
tone, and sa
n-marine to m
gly more ma
brittle enou
mantan is
up to 6 km
the igneou
API gravity
ent coalbed
Oligocene Ta
f fluvial and
is over 3,30
ntrated in its
asin.
35
Dep
deep in th
as entered t
he deepest
not brittle.
World Shale Ga
e that shales
st source roc
hed the oil w
nt, and non-
d for shale g
is one of th
basin, the on
the Eocene
ed.
31
Subsid
uence of s
ow marine
Miocene. By
of regres
l oil and gas
and coal o
sists mainly
coal, while
ale-clastic se
andstone.
marginal ma
ature offshor
ugh for hydr
a large (70
m of Eocen
us and meta
y) occurs in
methane ex
anjung Form
marginal ma
0 ft thick in
s upper sec
pth to the Ta
e shallow c
the oil wind
regions. Ho
s and Shale Oil
s within the
cks in the ba
window (T
ma
-brittle natur
gas/oil devel
he larger of
shore exten
e when volc
dence contin
hale, coal,
environmen
y Late Mioce
ssive clastic
s reservoir i
of the Late O
y of Type II
the shales a
equence can
Depth to the
arine source
re. Shales
raulic fractur
0,000 km
2

e and youn
amorphic ba
the northern
xploration is
mation is the
arine clastic
Tanjung Fie
ction, which
anjung range
conventional
dow through
owever, the
Resource Asses

e Sangkarew
asin. These
ax
435-447
re of the Om
opment.
the small gr
nsion of the l
caniclastics,
nued into the
and sandst
nts. Depo
ne to Quate
cs and pla
in the Jatiba
Oligocene U
and III kero
also can be
n be over 1,0
e Talang Ak
e rocks can b
in the Jatiba
ring in horiz
onshore ex
nger sedime
asement. M
n Barito, but
underway i
e most impo
c strata, inclu
eld in the no
reaches 2,4
es from 3,0
l anticlinal f
hout much o
shales withi
ssment
wang,
units
C).
30

mbilin
raben
arger
tuffs
e Late
tones
sition
ernary
atform
arang
Upper
ogen.
fairly
000 ft
kar is
be oil
arang
zontal
xtent),
entary
Minor
most
in the
ortant
uding
orth.
34

400 ft
00 to
fields.
of the
in the
XXIII. Indon

June, 2013

O
M
th
d
la
n
s
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XXIV. India/Pakistan EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 XXIV-1
XXIV. INDIA/PAKISTAN
SUMMARY
India and Pakistan contain numerous basins with organic-rich shales. For India, the
study assessed four priority basins: Cambay, Krishna-Godavari, Cauvery and Damodar Valley.
The study also screened other basins in India, such as the Upper Assam, Vindhyan, Pranhita-
Godavari, Rajasthan and South Rewa. However, in these basins the shales were thermally too
immature or the data for conducting a rigorous resource assessment were not available. For
Pakistan, the study addressed the areally extensive Indus Basin, Figure XXIV-1.
Figure XXIV-1. Shale Gas and Shale Oil Basins of India/Pakistan

June, 2013 XXIV-2
Overall, ARI estimates a total of 1,170 Tcf of risked shale gas in-place for India/Pakistan,
584 Tcf in India and 586 Tcf in Pakistan. The risked, technically recoverable shale gas resource
is estimated at 201 Tcf, with 96 Tcf in India and 105 Tcf in Pakistan, Tables XXIV-1A and XXIV-
1B. In addition, we estimate risked shale oil in-place for India/Pakistan of 314 billion barrels,
with 87 billion barrels in India and 227 billion barrels in Pakistan. The risked, technically
recoverable shale oil resource is estimated at 12.9 billion barrels for these two countries, with
3.8 billion barrels for India and 9.1 billion barrels for Pakistan, Table XXIV-2A and XXIV-2B.
Table XXIV-1A. Shale Gas Reservoir Properties and Resources of India
Cauvery
(9,100mi
2
)
Damodar Valley
(2,270mi
2
)
Sattapadi-Andimadam BarrenMeasure
Cretaceous Permian-Triassic
Marine Marine
1,060 300 580 1,100 3,900 3,000 1,010 1,080
OrganicallyRich 1,500 1,500 1,500 330 500 1,300 1,000 1,000
Net 500 500 500 100 150 390 500 250
Interval 6,000 - 10,000 10,000 - 13,000 13,000 - 16,400 4,000 - 6,000 6,000 - 10,000 10,000 - 16,400 7,000 - 13,000 3,300 - 6,600
Average 8,000 11,500 14,500 5,000 8,000 13,000 10,000 5,000
Mod.
Overpress.
Mod.
Overpress.
Mod.
Overpress.
Normal Normal Normal Normal Slightly Overpress.
2.6% 2.6% 2.6% 6.0% 6.0% 6.0% 2.3% 3.5%
0.85% 1.15% 1.80% 0.85% 1.15% 1.50% 1.15% 1.20%
Low/Medium Low/Medium Low/Medium High High High High High
Assoc. Gas Wet Gas Dry Gas Assoc. Gas Wet Gas Dry Gas Wet Gas Wet Gas
55.9 170.5 228.0 6.9 57.8 204.7 119.6 62.9
35.5 30.7 79.4 3.4 101.4 276.4 30.2 27.2
3.6 6.1 19.8 0.2 15.2 41.5 4.5 5.4
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth(ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
Cambay
(7,900mi
2
)
CambayShale
U. Cretaceous-Tertiary
R
e
s
o
u
r
c
e
Gas Phase
2
)
RiskedGIP (Tcf)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
ClayContent
Marine
Krishna-Godavari
(7,800mi
2
)
Permian-Triassic
Permian-Triassic
Marine

Table XXIV-1B. Shale Gas Reservoir Properties and Resources of Pakistan
Ranikot
Paleocene
Marine
26,700 25,560 31,320 26,780
Organically Rich 1,000 1,000 1,000 1,000
Net 250 250 250 200
Interval 4,000 - 6,000 6,000 - 10,000 10,000 - 16,400 6,000 - 13,000
Average 5,000 8,000 13,000 9,000
2.0% 2.0% 2.0% 2.0%
0.85% 1.15% 1.50% 0.85%
Low Low Low Low
Assoc. Gas Wet Gas Dry Gas Assoc. Gas
14.3 57.0 82.7 17.0
45.9 174.7 310.8 54.8
3.7 34.9 62.2 4.4
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
Lower Indus
(169,000mi
2
)
Sembar
L. Cretaceous
Marine
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
R
e
s
o
u
r
c
e
Gas Phase
2
)
Risked GIP (Tcf)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content

June, 2013 XXIV-3
Table XXIV-2A. Shale Oil Reservoir Properties and Resources of India

Cauvery
(9,100mi
2
)
Damodar Valley
(2,270mi
2
)
Sattapadi-Andimadam Barren Measure
Cretaceous Permian-Triassic
Marine Marine
1,060 300 1,100 3,900 1,010 1,080
Organically Rich 1,500 1,500 330 500 1,000 1,000
Net 500 500 100 150 500 250
Interval 6,000 - 10,000 10,000 - 13,000 4,000 - 6,000 6,000 - 10,000 7,000 - 13,000 3,300 - 6,600
Average 8,000 11,500 5,000 8,000 10,000 5,000
Mod.
Overpress.
Mod.
Overpress.
Normal Normal Normal Slightly Overpress.
2.6% 2.6% 6.0% 6.0% 2.3% 3.5%
0.85% 1.15% 0.85% 1.15% 1.15% 1.20%
Low/Medium Low/Medium High High High High
Oil Condensate Oil Condensate Condensate Condensate
79.8 19.2 17.5 6.5 30.2 12.1
50.8 3.5 8.7 11.5 7.6 5.2
2.54 0.17 0.26 0.34 0.23 0.21
P
h
y
s
i
c
a
l
E
x
t
e
n
t
ProspectiveArea(mi
2
)
Thickness (ft)
Depth (ft)
B
a
s
i
c
D
a
t
aBasin/Gross Area
ShaleFormation
Geologic Age
Cambay
(7,900mi
2
)
Cambay Shale
U. Cretaceous-Tertiary
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sReservoir Pressure
AverageTOC (wt. %)
Clay Content
Marine
Krishna-Godavari
(7,800mi
2
)
Permian-Triassic
Permian-Triassic
Marine
Table XXIV-2B. Shale Oil Reservoir Properties and Resources of Pakistan

Ranikot
Paleocene
Marine
26,700 25,560 26,780
Organically Rich 1,000 1,000 1,000
Net 250 250 200
Interval 4,000 - 6,000 6,000 - 10,000 6,000 - 13,000
Average 5,000 8,000 9,000
2.0% 2.0% 2.0%
0.85% 1.15% 0.85%
Low Low Low
Oil Condensate Oil
36.6 9.1 25.4
117.4 27.9 81.7
4.70 1.12 3.27
P
h
y
s
i
c
a
l
E
x
t
e
n
t
2
)
Thickness (ft)
Depth (ft)
Lower Indus
(169,000mi
2
)
Sembar
L. Cretaceous
Marine
B
a
s
i
c
D
a
t
aBasin/Gross Area
Shale Formation
Geologic Age
R
e
s
o
u
r
c
e
Oil Phase
2
)
Risked OIP (B bbl)
Risked Recoverable (B bbl)
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir Pressure
Average TOC (wt. %)
Clay Content


June, 2013 XXIV-4
INTRODUCTION
Evaluating the shale gas and oil resources of India and Pakistan posed a series of
challenges. Only limited publically available data exist on the geologic setting and reservoir
properties of the numerous shale formations in India and Pakistan. In addition, the shale basins
in these two countries are geologically highly complex.
Many of the basins in India, such as the Cambay and the Cauvery, comprised a series of
extensively faulted horst and graben structures. As such, the prospective areas for shale gas
and oil in these basins are often restricted to a series of isolated basin depressions (sub-
basins). While the shales in these basins are thick, considerable uncertainty exists on the areal
extents of the prospective areas in these basins. To account for this uncertainty, we have
applied prospective area risk factors to each basin. Figures XXIV-2 shows the stratigraphic
column for the key basins of India.
Recently, ONGC drilled and completed Indias first shale gas well, RNSG-1, northwest of
Calcutta in West Bengal. The well was drilled to a depth of 2,000 meters and reportedly had
gas shows at the base of the Permian-age Barren Measure Shale. Two vertical wells (Well D-A
and D-B) were previously tested in the Cambay Basin and had modest shale gas and oil
production from the Cambay Black Shale.
1

In Pakistan, the shale gas and oil assessment is restricted to the areally extensive
Central and Southern Indus basins, together called the Lower Indus Basin. The shales in this
basin have sourced the significant volumes of conventional oil and gas discovered and
produced in Pakistan. However, to date, no shale specific exploration has been publically
reported for Pakistan. Figure XXIV-3 provides the stratigraphic column for the key basins of
Pakistan.
Fortunately, the technical literature on conventional oil and gas exploration in India and
Pakistan often contains information on the nature of the source rocks that have charged the
conventional gas and oil reservoirs, providing a valuable starting point for this resource
assessment. As additional shale-directed geological and reservoir information is collected and
distributed, a more rigorous assessment of Indias and Pakistans shale oil and gas resources
will emerge.

June, 2013 XXIV-5
Figure XXIV-2. Stratigraphic Column for India

KRISHNAGODAVARI DAMODARVALLEY
ERA PERIOD EPOCH
Holocene
Pleistocene
MoranFm
Tinali Fm
Prang Member
Narpuh Member
Lakadong
Member
Gollapalli Fm AndimadamFm
JURASSIC Upper Red Bed Dubrajpur Fm
Raniganj Fm
BarrenMeasures
Barakar Fm
Talchir
P
R
O
T
E
R
O
Z
O
I
C
PRECAMBRIAN Basement Basement
P
A
L
E
O
Z
O
I
C
Eocene
Paleocene
UPPER ASSAM CAMBAY CAUVERY
F O R M A T I O N
BASIN
TERTIARY
Miocene
TRIASSIC
PERMIAN
Upper
Lower
M
E
S
O
Z
O
I
C
Deccan Traps
Kadi Fm
Younger
CambayShale
Older CambayShale
Olpad Fm
CRETACEOUS
QUATERNARY
Babaguru Fm
Tarapur Shale
Kalol Fm
Pliocene
C
E
N
O
Z
O
I
C
Razole
Tirupati Sandstone
RaghavapuramShale
Mandapeta Fm
KommugudemFm
Draksharama Fm
Porto-Novo Shale
NannilamFm
Kudavasal Shale
Bhuvanagiri Fm
Sattapadi Shale
Basement
Tittacheri Sandstone
Vanjiyur Sandstone
Pandanallur Fm
Karaikal Shale
U. KamalapuramFm
L. KamalapuramFm
Langpar Fm
Basement
Rajmahal Traps
Supra-Panchet Fm
Panchet Fm
Dhekiajuli Fm
Surma Member
Kopili Fm
Sylhet Fm
NamsangFm
Girujan Fm
TipamFm
Barail Group
Alluvium
I NDI A BASI NS
Undifferentiated Oligocene
Dadhar Fm/
Broach Fm
Jhagadia Fm
Kand Fm
Tarkesvar Fm
Source Rock
Gujarat Alluvium
Jambusar Fm
Absent/Unknown
Shiyali
Kovikalappal Fm
Niravi Sandstone
MadanamLimestone


June, 2013 XXIV-6
Figure XXIV-3. Stratigraphic Column for Pakistan
ERA PERIOD EPOCH
Pliocene
Kirthar Wakai
Ranikot
Middke
Lower
SOUTHERNINDUS CENTRAL INDUS NORTHERNINDUS BALOCHISTAN
PAKI STAN BASI NS
BASIN
Upper
Middke
Upper
Lower
TRIASSIC
PERMIAN
CAMBRIAN
PRECAMBRIAN
Miocene
Oligocene
Eocene
Paleocene
Upper
Lower
Jodhpur
Basement
Pleistocene
C
E
N
O
Z
O
I
C
M
E
S
O
Z
O
I
C
P
A
L
E
O
Z
O
I
C
P
R
O
T
E
R
O
Z
O
I
C
QUATERNARY
TERTIARY
CRETACEOUS
Baghanwala
Juttana
Kussak
Khewra
Salt Range
Sembar
Takatu/Chiltan
Lorolai/Datta
Shirinab
Wulgai/Alozai
J uttana
Kussak
Khewra
Salt Range
J odhpur
Basement
Mianwali
Zaluch
Nilawhan
Baghanwala
Khewra
Salt Range
Basement
Gaj
Nari
Sakaser
Ranikot
Pab
Shinawari
Warcha
Tobra
Sembar
Samana Suk
Kingriali
Humai
Sinjrani
Kawagarh
Lumshiwal
Chichali
Siwaliks Siwaliks
Saindak
Kharan
Gaj
Nari
Kirthar
Ispikan
Rakhshani
Absent/Unknown
Talar/Hinglas
Parkini
Panjgur
Hoshab
Siahan
Amalaf
Ormara
Chatti
F O R M A T I O N
Dandot
J uttana
Tredian
Mianwali
Chidru
Wargal
Sardhai
Data
Kingriali
Shinawari
Samana Suk
Patala
Lockhart
Hangu
Kohat
Kuldana
Kamlial
Murree
Data
Tredian
Mughal Kot
Parh
Goru
Nummal
Dunghan
Source Rock
JURASSIC
Khadro
Mughal Kot
Parh
Goru
Pab
Ghazij/
Baska/Laki
Dunghan

June, 2013 XXIV-7
1. CAMBAY BASIN, INDIA
The Cambay Basin is an elongated, intra-cratonic Late Cretaceous to Tertiary rift basin,
located in the State of Gujarat in northwest India. The basin includes four assessed fault
blocks: Mehsana-Ahmedabad, Tarapur, Broach and Narmada, Figure XXIV-4.
Figure XXIV-4. Depth of Cambay Black Shale, Cambay Basin


June, 2013 XXIV-8
The Cambay Basin is bounded on its eastern and western sides by basin-margin faults
and extends south into the offshore Gulf of Cambay, limiting its onshore area to 7,900 mi
2
.
2

The Deccan Trap, composed of horizontal lava flows, forms the basement of the
Cambay Basin. Above the Deccan Trap, separated by the Olpad Formation, is the Late
Paleocene and Early Eocene Cambay Black Shale, Figure XXIV-5.
3
The Cambay Black Shale
represents the marine transgressive episode in the basin. With a thermal maturity ranging from
about 0.7% to 2%, the shale is in the oil, wet gas and dry gas windows.
4
For purposes of this
study, we have assumed that the oil window starts at 6,000 feet of depth, that the wet gas
window starts at 11,000 feet, and that the dry gas window is below 13,000 feet of depth, Figures
XXIV-6 and XXIV-7.
Figure XXIV-5. Generalized Stratigraphic Column of the Cambay Basin.
Source: Silvan, 2008


June, 2013 XXIV-9
Figure XXIV-6. Cross Section of Cambay Black Shale System
Source: Shishir Kant Saxena, 2007

Figure XXIV-7. N-S Geological Cross-Section Across Cambay Basin
Source: P.K. Bhowmick and Ravi Misra, Indian Oil and Gas Potential, Glimpses of Geoscience Research in India.


June, 2013 XXIV-10
The Cambay Basin contains four primary fault blocks, from north to south: (1) Mehsana-
Ahmedabad; (2) Tarapur; (3) Broach; and (4) Narmada (Sivan et al., 2008).
3
Three of these
blocks appear to have sufficient thermal maturity to be prospective for shale gas and oil, Table
XXIV-3.
5

Table XXIV-3. Major Fault Blocks and Shale Prospectivity of Cambay Basin
Fault Blocks Comments
1. Mehsana-Ahmedabad Prospective for Shale Oil
2. Tarapur Prospective for Shale Oil and Wet Gas
3. Broach Prospective for Shale Oil and Wet/Dry Gas
4. Narmada Insufficient Data, Likely Immature
Mehsana-Ahmedabad Block. Three major deep gas areas (depressions) exist in the
Mehsana-Ahmedabad Block - - the Patan, Worosan and Wamaj. A deep well, Well-A, was
drilled in the eastern flank of the Wamaj Low to a depth of nearly 15,000 ft, terminating
below the Cambay Black Shale. In addition, a few wells were recently drilled to the Cambay
Black Shale in the axial part of the graben low. A high-pressure gas zone was encountered
in the Upper Olpad section next to the Cambay Shale, with methane shows increasing with
depth. Geochemical modeling for this fault block indicates an oil window at 6,600 ft, a wet
gas window at 11,400 ft, and a dry gas window at 13,400 ft.
6

Broach and Tarapur Blocks. The deeper Tankari Low in the Broach Block and the
depocenter of the Tarapur Block appear to have similar thermal histories as the Mehsana-
Ahmedabad Block. As such, we assumed these two areas have generally similar shale gas
and oil properties as the Cambay Black Shale in the Mehsana-Ahmedabad Block.
The depth of the prospective area of the Cambay Black Shale ranges from about 6,000
ft in the north to 16,400 ft in the lows of the southern fault blocks, averaging 8,000 ft in the oil
prospective area, 11,500 ft in the wet gas and condensate prospective area, and 14,500 ft in the
dry gas prospective area. Thermal gradients are high, estimated at 3
o
F per 100 feet,
contributing to accelerated thermal maturity of the organics.
7
The Cambay Black Shale interval
ranges from 1,500 to more than 5,000 ft thick in the various fault blocks.
8
In the northern

June, 2013 XXIV-11
Mehsana-Ahmedabad Block, the Kadi Formation forms an intervening 1,000-ft thick non-marine
clastic wedge within the Cambay Black Shale interval. In this block, the shale thickness varies
from 300 to 3,000 ft, with the organic-rich shale thickness, located in the lower portion of the
Cambay Black Shale interval, averaging 500 net ft, Figure XXIV-8.
The organic matter in the shale is primarily Type II and Type III (terrestrial) with a TOC
that ranges from 2% to 4%, averaging 2.6%, Figure XXIV-9. The shale formation is moderately
over-pressured and has low to medium clay content.
Within the overall 1,940-mi
2
Cambay Black Shale prospective area in the Cambay Basin,
we estimate: a 580-mi
2
area prospective for dry gas; a 300-mi
2
area prospective for wet gas and
condensate; and a 1,060-mi
2
area prospective for oil, Figure XXIV-10.
The Cambay Black Shale has resource concentrations of: 228 Bcf/mi
2
of shale gas in its
580-mi
2
dry gas prospective area; 170 Bcf/mi
2
2
of
condensate in the 300-mi
2
wet gas/condensate prospective area; and 80 million barrels/mi
2
of
shale oil (plus associated gas) in the 1,060-mi
2
oil prospective area.
Within the overall 1,940-mi
2
prospective area for the Cambay Black Shale in the Cambay
Basin, we estimate a risked resource in-place of 146 Tcf for shale gas and 54 billion barrels for
shale oil. Based on moderate to favorable reservoir properties, we estimate that the Cambay
Black Shale has 30 Tcf of risked, technically recoverable shale gas and 2.7 billion barrels of
risked, technically recoverable shale oil, Tables XXIV-1A and XXIV-2A.
1.4 Recent Activity
Although the shales in the Cambay Basin have been identified as a priority by India, no
plans for exploring these shales have yet been publically announced. However, two shallower
conventional exploration wells (targeting the oil-bearing intervals in the basin) penetrated and
tested the Cambay Black Shale. Well D-A, a vertical well, had gas shows in a 90-ft section of
the Cambay Basin at a depth of about 4,300 ft. After hydraulic stimulation, Well D-A produced
13 bbl/day of oil and 11 Mcfd of gas. Well D-B, an older vertical well drilled in 1989 to a depth of
6,030 ft, also encountered the Cambay Shale at about 4,300 ft. The well was subsequently
hydrofractured and produced 13 bbl/day of oil and 21 Mcfd of gas.

June, 2013 XXIV-12
Figure XXIV-8. Gross Thickness of Cambay Black Shale, Cambay Basin


June, 2013 XXIV-13
Figure XXIV-9. Organic Content of Cambay Black Shale, Cambay Basin

June, 2013 XXIV-14
Figure XXIV-10. Prospective Areas of the Cambay Black Shale, Cambay Shale Basin

June, 2013 XXIV-15
2. KRISHNA-GODAVARI BASIN, INDIA
The Krishna-Godavari Basin covers a 7,800-mi
2
onshore area of eastern India, Figure
XXIV-11.
9
The basin contains a series of organic-rich shales, including the Permian-age
Kommugudem Shale and the Triassic-age Mandapeta Shale. For purposes of this assessment,
these two shales have been combined into the Permian-Triassic Shale. With thermal maturities
ranging from 0.7% to 2% R
o
, these shales are in the oil to dry gas windows. The Upper
Cretaceous Raghavapuram Shale may also have potential but was not assessed by this study.
Figure XXI-11. Krishna-Godavari Basins Onshore Horsts and Grabens
Source: Murthy, 2011.


June, 2013 XXIV-16
Permian-Triassic Shale. The Kommugudem Shale, the lower unit of the Permian-
Triassic Shale, is a thick Permian-age rock interval containing alternating sequences of
carbonaceous shale, claystone, sand and coal, Figure XXIV-12. The Mandapeta Graben, the
most extensively explored portion of the Krishna-Godavari Basin, provides much of the geologic
and reservoir characterization data for this basin.
10

Figure XXIV-12. Stratigraphic Column, Mandapeta Area, Krishna Godavari Basin
Source: Kahn, 2000.


June, 2013 XXIV-17
The Kommugudem Shale was deposited in fluvial, lower deltaic, and lacustrine
environments. While an effective source rock with excellent organic richness, analysis of the
shale indicates hydrogen-deficient organic matter (based on low S
2
values from pyrolysis) and
high levels of primary inertinite.
The basal shale in the Mandapeta Formation, the upper unit of the Permian-Triassic
Shale, is a localized, thermally mature (R
o
of 0.8% to 1.1%) Triassic-age shale that is
considered the source rock for the oil produced from the overlying Early Cretaceous Golapalli
Sandstone. The Mandapeta Formation and its basal shale are present in the Mandapeta and
Bantumilli grabens but are absent in the Poduru-Yanam High (Draksharama and Endamuru
areas) to the east. While the TOC of the Mandapeta Shale is generally low, 0.4% to 1.6%, we
have included this Triassic shale unit into the overall Permian-Triassic sequence.
Vitrinite reflectance of the Permian-Triassic Shale in the deep graben structures ranges
from 0.7% to 2% R
o
, placing the shale in the oil to dry gas windows. Figure XXIV-13 illustrates
the relationship of shale depth and geologic age in the Krishna-Godavari Basin to the thermal
maturity (R
o
) in two of the graben structures, Kommugudem (KMG) and Mandapeta (MDP).
Figure XXIV-13. Cross Section for Permian-Triassic Shale, Krishna Godavari Basin
Source: Kahn, 2000.

June, 2013 XXIV-18
In the prospective area of the Krishna-Godavari Basin, the depth of the Permian-Triassic
Shale ranges from 4,000 to 16,400 ft, averaging 5,000 ft in the oil prospective area, 8,000 ft in
the wet gas and condensate prospective area, and 13,000 ft in the dry gas prospective area.
To better understand the source rock quality of the Permian-Triassic Shale, 140 m of
shale was tested in 10 wells. The data showed the TOC of the shale ranges up to 11%,
averaging 6%, for ten rock samples taken at various depths, Table XXIV-4.
Table XXIV-4. Analysis of Ten Rock Samples, KommugudemShale
11

Well
Depth
(m)
TOC
(%)
S
2
*
Shale
Interval Tested (m)
AA-1 3,320-3,880 10.4 7.0 110
AA-2 3,585-3,630 4.2 2.9 45
AA-9 3,330-3,360 7.1 6.4 30
AA-10 3,880-3,920 3.1 0.6 40
AA-11 2,890-3,150 7.0 7.9 260
BW-1A 3,915-4,250 5.6 0.8 335
BW-2 2,970-3,085 8.8 5.5 115
BW-2 3,100-3,175 7.8 6.0 75
BW-9 2,800-3,040 11.2 6.9 315
DE-1 1,900-2,040 8.9 13.9 120
*Volume of hydrocarbon cracked from kerogen by heating to 550
o
C, measured in terms of mg hydrocarbon/g rock.
The thickness of the shale ranges from 330 to 1,300 ft, with 100 to 390 ft of net organic-
rich shale, depending on prospective area. The pressure gradient of the Permian-Triassic
Shale is normal. The reservoir is inferred to have moderate to high clay content based on its
lacustrine deposition. We mapped an 8,000-mi
2
prospective area for the Permian-Triassic Shale
in the Krishna-Godavari Basin which encompasses the oil, wet gas/condensate and dry gas
windows.
Raghavapuram Shale. The Cretaceous-age Raghavapuram Shale offers an additional
potential shale resource in the Krishna-Godavari Basin. The TOC of this shale unit ranges from
0.8% to 6.4%, with the lower HG-HR Shale interval of the Raghavapuram Formation having the
higher TOC values, Figures XXIV-14
12
and XXIV-15.
12
The shale becomes thermally mature for
oil (Tmax 440 to 475
o
C) at depth below 10,600 ft.
21


June, 2013 XXIV-19
Figure XXIV-14. TOC Cross-Section for RaghavapuramShale, Krishna-Godavari Basin
Source: Prasad, I.V.S.V., 2012.
Figure XXIV-15. TOC Isopach for RaghavapuramShale, Krishna-Godavari Basin

Source: Prasad, I.V.S.V., 2012.

June, 2013 XXIV-20
However, the great bulk of the Cretaceous Raghavapuram Shale is shallower than
10,600 ft and thus has a thermal maturity (R
o
) value less the 0.7% minimum threshold used by
this study. In addition, the data on the area and vertical distribution of the Raghavapuram Shale
is limited. Thus, this shale has not been included in the quantitative portion of our shale
resource assessment.
The 8,000-mi
2
prospective area of the Permian (Kommugudem) and Triassic
(Mandapeta) Shale in the Krishna-Godavari Basin is limited to the four grabens (sub-basins)
shown in Figure XXIV-16. The Permian-Triassic Shale has resource concentrations of: 205
Bcf/mi
2
in the 3,000-mi
2
dry gas prospective area; 58 Bcf/mi
2
2

of condensate in the 3,900-mi
2
wet gas/condensate prospective area; and 18 million/mi
2
barrels
of oil (plus associated gas) in the 1,100-mi
2
oil prospective area.
Within the overall prospective area, the Permian-Triassic Shale of the Krishna-Godavari
Basin has risked shale gas in-place of 381 Tcf, with 57 Tcf as the risked, technically recoverable
shale gas resource. In addition, we estimate a risked shale oil in-place for this basin of 20
billion barrels, with 0.6 billion barrels as the risked, technically recoverable shale oil resource,
Tables XXIV-1A and XXIV-2A.
2.4 Recent Activity
The technical literature discusses 16 wells that have been drilled at the Mandapeta
Graben into or through the Permian-Triassic Shale in search for hydrocarbons in conventional
Mandapeta and Gollapalli sandstone reservoirs. The information from these 16 wells has
provided valuable data for the key cross-sections and other reservoir properties essential for the
shale resource assessment study of the Krishna-Godavari Basin.

June, 2013 XXIV-21
Figure XXIV-16. Prospective Areas for Shale Gas and Shale Oil, Krishna-Godavari Basin

June, 2013 XXIV-22
3. CAUVERY BASIN, INDIA
The Cauvery Basin covers an onshore area of about 9,100 mi
2
on the east coast of
India, Figure XXIV-17. The basin comprises numerous horsts and grabens, with thick organic-
rich source rocks in the Lower Cretaceous Andimadam Formation and Sattapadi Shale.
Figure XXIV-17. Cauvery Basin Horsts and Grabens

June, 2013 XXIV-23
The gas- and oil-prone shale source rocks in the Cauvery Basin are the Lower
Cretaceous Andimadam Formation and the Sattapadi Shale, Figure XXIV-18. The shale
resource prospective area of the Cauvery Basin is limited to four depressions (troughs) - -
Nagapattnam, Tranquebar, Ariyalur-Pondicherry and Thanjavur - - and the Mannar Sub-basin.
The source rocks are generally shallow marine Type III with some Type II kerogen. The
thermally mature source rocks in the shallower Sattapadi Shale and the deeper Andimadam
Formation contain thermogenic wet gas and condensate.
13

Figure XXIV-18. Generalized Stratigraphy, Cauvery Basin
15

Source: Rao, 2010.

June, 2013 XXIV-24
We have identified a 1,010-mi
2
wet gas and condensate prospective area for the shales
in the Cauvery Basin. The thickness of the Lower Cretaceous interval is 3,000 to 5,000 ft, with
the Andimadam Formation and the Sattapadi Shale accounting for the bulk of the gross interval,
Figure XXIV-19. The TOC of the combined Andimadam/Sattapadi Shale is estimated at 2% to
2.5%, averaging 2.3%. The organic shales are distributed irregularly over the Cauvery Basin,
Figure XXIV-20.
Figure XXIV-19. Formation Thickness, Cauvery Basin
Source: P.K. Bhowmick and Ravi Misra, Indian Oil and Gas Potential, Glimpses of Geoscience Research in India

June, 2013 XXIV-25
Figure XXIV-20. Shale Isopach and Presence of Organics, Cauvery Basin

June, 2013 XXIV-26
The Cauvery Basin contains a series of depressions (sub-basins) that hold potential for
shale gas. Two of these - - Ariyalur-Pondicherry and Thanjavur - - contain thick, thermally
mature shales.
Ariyalur-Pondicherry Sub-Basin. The Ariyalur-Pondicherry Depression (Sub-basin) is in
the northern portion of the Cauvery Basin. The Lower Cretaceous Andimadam and
Sattapadi Shale encompasses a thick interval at a depth of 7,000 to 13,000 ft, averaging
10,000 ft. Organic-rich gross pay thickness is 1,000 ft with net pay of about 500 ft. The
thermal maturity of 1.0% to 1.3% R
o
places the shale in the wet gas and condensate
window. The onshore prospective area of this sub-basin is estimated at 620 mi
2
, Figure
XXIV-21.
Thanjavur Sub-Basin. The Thanjavur Depression (Sub-basin), in the center of the Cauvery
Basin, has a thick section of Andimadam and Sattapadi Shale at a depth of 7,000 ft (top of
Sattapadi Shale) to 13,000 ft (base of Andimadam Fm), averaging 9,500 ft deep, Figure
XXIV-22. The organic-rich average net pay thickness is 500 ft.
15
Given limited data, we
assume the TOC and thermal maturity for the shale in this sub-basin is the same as in the
Ariyalur-Pondicherry Sub-basin. The onshore prospective area with thick organic-rich shale
is small, estimated at 390 mi
2
, Figure XXIV-21.
In the 1,010-mi
2
prospective area of the Cauvery Basin, the combined Andimadam
Formation and Sattapadi Shale have an average wet shale gas resource concentration of 120
Bcf/mi
2
and a shale condensate resource concentration of 30 million barrels/mi
2
.
For the combined Andimadam Formation and Sattapadi Shale in the Cauvery Basin, we
estimate risked shale gas in-place of 30 Tcf and risked shale oil in-place of 8 billion barrels. Of
this, 5 Tcf of shale gas and 0.2 billion barrels of shale oil are the risked, technically recoverable
shale resources.
3.4 Recent Activity
We are not aware of any shale gas or oil development in the Cauvery Basin.

June, 2013 XXIV-27
Figure XXIV-21. Prospective Areas for Shale Gas and Shale Oil, Cauvery Basin


June, 2013 XXIV-28
Figure XXIV-22. East to West Cross-Section Across Cauvery Basin.
15

Source: Rao, 2010.


June, 2013 XXIV-29
4. DAMODAR VALLEY BASIN, INDIA
The Damodar Valley Basin is part of a group of basins collectively named the
Gondwanas, owing to their similar dispositional environment and Permo-Carboniferious
through Triassic deposition. The Gondwanas, comprising the Satpura, Pranhita-Godavari,
Son-Mahanadi and Damodar Valley basins, were part of a system of rift channels in the
northeast of the Gondwana super continent. Subsequent tectonic activity formed the major
structural boundaries of the Gondwana basins, notably the Damodar Valley Basin, Figure XXIV-
23.
Figure XXIV-23. Damodar Valley Basin and Prospectivity for Shale Gas and Shale Oil


June, 2013 XXIV-30
Sedimentation in the Early Permian was primarily glacial-fluvial and lacustrine, resulting
in significant deposits of coal. As such, the majority of exploration in the Damodar Valley has
focused on the coal resources of the basin, which account for much of Indias coal reserves.
However, a marine incursion deposited a layer of early Permian Shale, called the Barren
Measure Shale in this basin, Figure XXIV-24
14
. This shale formation was the target of Indias
first shale gas exploration well in the eastern portion of the Damodar Valley. Though present in
other Gondwana basins, such as the Rewa Basin, in central India, data suggest that the Barren
Measure Shale is only thermally mature in the Damodar Valley Basin.
15

Figure XXIV-24. Regional Stratigraphic Column of the Damodar Valley Basin, India
16
.
1Kilometer
Depth Line
Barren Measure
Source: Chakraborty, Chandan, 2003.

The Damodar Valley Basin comprises a series of sub-basins (from west to east) - - the
Hutar, Daltonganj, Auranga, Karanpura, Ramgarh, Bokaro, Jharia and Raniganj. Though these
sub-basins share a similar geologic history, tectonic events and erosion since the early Triassic
have caused extensive variability in the depth and thickness of the Barren Measure Shale in
these basins.

June, 2013 XXIV-31
Because exploration has focused on the coal deposits within the Damodar Valley Basin,
relatively little geologic data is available on the Barren Measure Shale. Thermal maturity data on
coals adjoining the Barren Measure Shale suggest that the shale is within the wet
gas/condensate (R
o
of 1.0% to 1.3%) window, and regional studies have shown favorable TOC,
with average values of 3.5%.
Present-day burial depth and lower pressures are the main limitations for the shale gas
and condensate prospectively of the Barren Measure Shale in the Damodar Valley Basin. In
some sub-basins, regional erosion has removed up to 3 kilometers of overlying sediments.
Based on the regional stratigraphic column, Figure XXIV-25,
17
and operator data, the
overall 1,080-mi
2
prospective area for the Barren Measure Shale in the Damodar Valley is
limited to the Bokaro, Karanpura and Raniganj sub-basins.
The prospective areas within the Bokaro (110 mi
2
) and Raniganj (650 mi
2
) sub-basins
are limited by surface outcrops of formations of the Barren Measure Shale to the west and
north, respectively. We have estimated a 320-mi
2
prospective area for the northern half of the
Karanpura Basin, based on statements by Schlumberger and ONGC.
18

Absent data on thermal maturity and organic content specific to each of the three sub-
basins, we assigned average published reservoir property values to these three sub-basins.
TOC is assumed to range between 3% and 6% averaging 3.5%, based on information from
INOC and ESSAR.
19,20
Thermal maturity was estimated from the coal formations surrounding
the Barren Measure Shale, indicating values of 1.1% to 1.3% R
o
, placing the shale within the
wet gas/condensate window.
21
Depth to the Barren Measure Shale averages about 5,000 ft,
based on reports from the shale gas well drilled into the Raniganj sub-basin and from regional
cross sections, Figure XXIV-26. We estimate a weighted average gross interval thickness in the
three prospective sub-basins of about 2,000 ft, of which about 1,000 ft is organic-rich and 250 ft
is net shale.
17


June, 2013 XXIV-32
Figure XXIV-25. Generalized Stratigraphic Column of the Gondwana Basin.
Source: Veevers, J., 1995


June, 2013 XXIV-33
Figure XXIV-26. Raniganj Sub-Basin Cross Section.
22

Barren Measure Shale
A A
Source: Ghosh, S. C, 2002.

Using the geologic characteristics discussed above, we estimate that the Barren
Measure Shale in the Damodar Valley Basin has a wet shale gas resource concentration of 63
Bcf/mi
2
and a shale condensate resource concentration of 12 million barrels/mi
2
.
Risked shale gas in-place is estimated at 27 Tcf, with the prospect area risk factor
recognizing the significant faulting present in the basin. We estimate 5 Tcf of risked shale gas
may be technically recoverable from the Barren Measure Shale in the Damodar Valley Basins.
In addition, we estimate risked shale oil in-place of 5 billion barrels, with 0.2 billion barrels as the
risked, technically recoverable shale oil resource.

June, 2013 XXIV-34
4.4 Recent Activity
Along with the Cambay Basin, the Damodar Valley Basin has been set as a priority
basin for shale gas exploration by the Indian government. In late September 2010, Indian
National Oil and Gas Company (ONGC) spudded the countrys first shale gas well, RNSG-1, in
the Raniganj sub-basin of the Damodar Valley. The well was completed mid-January 2011,
having reportedly encountered gas flows from the Barren Measure Shale at approximately
5,600 ft. Detailed well test and production results are not publicly available. This well was the
first of a proposed four-well R&D program in the basin. The plan calls for an additional well to be
drilled in the Raniganj sub-basin and for two wells to be drilled in the Karanpura sub-basin.


June, 2013 XXIV-35
5. OTHER BASINS, INDIA
5.1 Upper Assam Basin
The Upper Assam Basin is an important onshore petroleum province in northeast India.
The basin has produced oil and some associated gas, mainly from the Upper Eocene-Oligocene
Barail Group of coals and shales. In general, the TOC in the lower source rocks ranges from
1% to 2% but reaches 10% in the Barail Group. These source rocks are in the early thermal
maturity stage (beginning of the oil window) in the bulk of the Upper Assam Basin.
23
Although
the shales may reach thermal maturity for oil and gas generation in the deeper parts of the
basin, toward the south and southwest, no data confirming this assumption exists in the public
domain. The reported thermal maturity of the Barail Group Shale ranges from R
o
of 0.5% to
0.7%, placing these shales as immature for oil.
24
While the shale may reach the oil and wet gas
window in the very deepest portion of the basin, the measured vitrinite reflectance is reported at
only 0.7% at a depth of 14,800 ft.
25

5.2 Pranhita-Godavari Basin
The Pranhita-Godavari Basin, located in eastern India, contains thick, organic-rich
shales in Permian-age Jai Puram and Khanapur formations. While the kerogen is Type III
(humic) and thus favorable for gas generation, the 0.67% R
o
indicates that the shales are
thermally immature.
5.3 Vindhyan Basin
The Vindhyan Basin, located in north-central India, contains a series of Proterozoic-age
shales. While certain of these shales, such as the Hinota and Pulkovar, appear to have
sufficient organic richness, no public data exists on their thermal maturity.
5.4 Rajasthan Basin
The Rajasthan Basin covers a large onshore area in northwest India. The basin is
structurally complex and characterized by numerous small fault blocks. The Permian-age
Karampur Formation is the primary source rock in this basin. While the source rock is Type III
and classified as mature, only limited data are available on the reservoir properties of this shale.

June, 2013 XXIV-36
6. LOWER (SOUTHERN AND CENTRAL) INDUS BASINS, PAKISTAN
The Southern and Central Indus basins (Lower Indus Basin) are located in Pakistan,
along westerns border with India and Afghanistan. The basins are bounded by the Indian
Shield on the east and highly folded and thrust mountains on the west, Figure XXIV-27.
26

The Lower Indus Basin has commercial oil and gas discoveries in the Cretaceous-age
Goru Fm sands plus additional gas discoveries in shallower formations. The shales in the
Sembar Formation are considered as the primary source rocks for these discoveries. While oil
and gas shows have been recorded in the Sembar Shale on the Thar Platform, as of yet no
productive oil or gas wells have been drilled into the Sembar Shale.
27

Figure XXIV-27. Outline for Southern and Central Indus Basin, Pakistan


June, 2013 XXIV-37
Sembar Shale. The Lower Cretaceous Sembar Formation is the main source rock in
the Lower Indus Basin. The Sembar contains shale, silty shale and marl in the western and
northwestern portion of the basin and becomes sandy in the eastern part of the basin. The
kerogen within the Sembar Formation is mostly Type II with some Type III.
The Lower Indus Basin covers a massive 91,000-mi
2
area of western Pakistan. Within
this large basin area, for the Sembar Shale, we have identified a 31, 320-mi
2
prospective area
for dry gas (R
o
>1.3%), a 25,560-mi
2
prospective area for wet gas and condensate (R
o
between
1.0% and 1.3%), and a 26,700-mi
2
prospective area for oil (R
o
between 0.7% and 1.0%). To
account for the limited data on the Sembar Shale in this large basin area, we have highly risked
the prospective areas and the likelihood of development success.
The eastern boundary of the prospective area of the Sembar Shale in the Lower Indus
Basin is the minimum thermal maturity criterion of R
o
0.7%. The northern and western
boundaries of the prospective area are set by the limits of Sembar Formation deposition and
depth. The southern boundary of the prospective area is the offshore.
Ranikot Formation. The shales in the Paleocene Ranikot Formation are primarily in the
upper carbonate unit which consists of fossiliferous limestone interbedded with dolomitic shale,
calcareous sandstone and abundant bituminous material. The upper unit was deposited in a
restricted marine environment. West of the Karachi Trough axis, the Ranikot Formation
becomes dominantly shale (Korara Shale) with deep marine deposition.
Within the southern portion of the Lower Indus Basin, we have identified 26,780-mi
2
for
the Ranikot Shale that appears to be prospective for oil (R
o
of 0.7% to 1.0%). The eastern,
northern and western boundaries of the Ranikot Shale prospective area are set by the 300 m
isopach contour; the southern boundary of the prospective area is the offshore.

June, 2013 XXIV-38
Sembar Shale. The Sembar Formation was deposited under open-marine conditions.
27

In the prospective area of the Lower Indus Basin, the thickness of the Sembar Shale ranges
from 1,000 to over 2,000 ft, Figure XXIV-28. We identified an organic-rich interval 1,000 ft thick
with a net shale thickness of 250 ft. We estimate TOC of approximately 2% and an R
o
of 1.0%
to 1.6%. The Sembar Shale, in the shallower portions of the Lower Indus Basin, is in the oil and
wet gas windows, with the lower limit of the oil window at about 4,000 ft and the wet
gas/condensate window at 6,000 to 10,000 ft.
27
In the deeper portions of the basin below
10,000 ft, the Sembar Shale enters the dry gas window.
Figure XXIV-28. Isopach of Sembar Shale, Lower Indus Basin, Pakistan
26

June, 2013 XXIV-39
The thermal gradients in the basin increase from east to west, from 1.31
o
F/100 ft on the
Thar Slope in the east to 2.39
o
F/100 ft in the Karachi offshore in the west. The average thermal
gradient in the basin is 2.1
o
F/100 ft. The Sembar Shale appears to have low clay content.
Ranikot Formation. The prospective area of the Ranikot Formation has a thickness of
1,000 to 3,000 ft, with a net shale thickness of 200 ft, Figure XXIV-29. We assume 2% TOC
and a thermal maturity of 0.7% to 1.0% R
o
, placing the Ranikot Shale in the oil window.
Figure XXIV-29. Isopach of Ranikot Formation, Southern Indus Basin, Pakistan
26


June, 2013 XXIV-40
Within the 31,320-mi
2
dry gas prospective area, the Sembar Shale in the Lower Indus
Basin has a resource concentration of 83 Bcf/mi
2
. Within the 25,560-mi
2
wet gas and
condensate prospective area, the Sembar Shale has resource concentrations of 57 Bcf/mi
2
of
wet gas and 9 million barrels/mi
2
of condensate. Within the 26,700-mi
2
oil prospective area, the
Sembar Shale has a resource concentration of 37 million barrels/mi
2
.
Within the overall prospective area of the Lower Indus Basin, the Sembar Shale has
risked shale gas in-place of 531 Tcf, with 101 Tcf as the risked, technically recoverable shale
gas resource. In addition, the Sembar Shale has 145 billion barrels of shale oil in-place, with
5.8 billion barrels as the risked, technically recoverable shale oil resource.
Within its 26,780-mi
2
wet gas and condensate prospective area, the Ranikot Shale has
resource concentrations of 17 Bcf/mi
2
2
of shale
oil/condensate. Within this prospective area of the Lower Indus Basin, the Ranikot Shale has
55 Tcf of risked shale gas in-place and 82 billion barrels of risked shale oil in-place. The risked,
technically recoverable shale resources of the Ranikot Shale are 4 Tcf of wet shale gas and 3.3
billion barrels of shale oil/condensate.
6.4 Recent Activity
No publically available data has been reported on shale gas exploration or development
for the Lower Indus Basin of Pakistan.
REFERENCES
1
Sharma, Shyam, P. Kulkarni, A. Kulmar, P. Pankaj, V. Ramanathan, and P. Susanta, 2010. Successful Hydrofracking Leads
to Opening of New Frontiers in Shale Gas Production in the Cambay Basin in Gujarat, India presented at the IADC/SPE Asia
Pacific Drilling Technology Confrence and Exhibition, Ho Chi Mihn City, Vietnam, November 3.
2
Mathur and Rao, 1968. :Tectonic Framework of Cambay Basin. India. Bull. ONGC V 5(1).
3
Sivan et al., 2008. Aromatic Biomarkers as Indicators of Source, Depositional Environment, Maturity and Secondary Migration
in the Oils of Cambay Basin, India, Organic Geochemistry, vol. 39,)p. 160-1630.
4
Cambay Petroleum, Investor Presentation. 2008. Accessed at: http://www.infraline.com/nelp-vii/InfraLine.pdf.
5
Shishir Kant Saxena, et al., 2007. Predicting the Temperature of Hydrocarbon Expulsion from Oil Asphaltene Kinetics and Oil
Source Correlation: A Case Study of South Cambay Basin, India. AAPG Annual Convention, Long Beach, California, April 1-4,
2007.
6
Mohan, R. 2006. Deep Gas Exploration in Cambay Basin, India - A Case Study. Presentation presented at the SPE India 6th
Annual Confrence, Calcutta, India,. http://www.spgindia.org/conference/6thconf_kolkata06/320.pdf.

June, 2013 XXIV-41
7
Wandrey, C.J., 2004, Sylhet-Kopili/Barail-Tipam composite petroleum systems, Assam Geologic Province, India: US Geological
Survey Bulletin 2208-D.
8
Bhandari, L.L. and Chowdhary, L.R., 1975. Analysis of Kadi and Kalol Formations, Cambay Basin, India, AAPG Bulletin, vol.
59, 856-871.
9
M. V. K. Murthy, et al., 2011. Mesozoic Hydrogeologic Systems and Hydrocarbon Habitat, Mandapeta-Endamuru area,
Krishna Godavari Basin, India. AAPG Bulletin, v. 95, , pp. 147167.
10
Kahn, et al., 2000. Generation and Hydrocarbon Entrapment within Gondwana Sediments of the Mandapeta Area, Krishna
Godavari Basin. Organic Geochemistry, vol. 31, p. 1495-1507.
11
Murthy, M., P. Padhy, and D. Prasad, 2011. Mesozoic hydrogeologic systems and hydrocarbon habitat, Mandapeta-
Endamuru area, Krishna Godavari Basin, India. AAPG Bulletin 95, p. 147-167.
12
Prasad, I.V.S.V., 2012. Technology Imperatives for Exploration and Production of Oil and Gas. Oil & Natural Gas
Corporation Ltd. Industry-Academia Workshop, ONGC, Rajahmundry, 26-28 March 2012, p. 35.
13
P.K. Bhowmick and Ravi Misra, Indian Oil and Gas Potential, Glimpses of Geoscience Research in India.
14
Goswami, Shreerup, 2008. Marine influence and incursion in the Gondwana basins of Orissa, India: A review. Palaeoworld
17, p. 21-32.
15
Rao, V. Potential Shale Gas Basins of India: Possibilities and Evaluations. Presentation presented at the India
Unconventional Gas Forum, New Delhi, India, November 26, 2010.
http://oilnmaritime.com%2FIUGF%2520presentation%2FIUGF_presentation_FINAL.pdf&rct=j&q=potential%20shale%20gas%20
basins%20of%20intia%20possibilities%20&ei=oUVITYOnAcKt8Aado5CNBw&usg=AFQjCNEX2KZ0oPUQTc5laPypQ_BnGaGiv
g&cad=rja.
16
Chakraborty, Chandan, Nibir Mandal, and Sanjoy Kumar Ghosh, 2003. Kinematics of the Gondwana basins of peninsular
India. Tectonophysics, vol. 377, :p. 299-324.
17
Veevers, J. J., and R. C. Tewari, 1995. Gondwana Master Basin of Peninsular India between Tethys and the Interior of the
Gondwanaland Province of Pangea. Geological Society of America, Memoirs 187p. 1 -73.
18
ONGC chases shale gas in West Bengal. Oil and Gas Journal, September 26, 2010. http://www.ogj.com/index/article-
display/6840666202/articles/oil-gas-journal/exploration-development-2/2010/09/ongc-chases_shale.html.
19
Chawla, S., 2010. Pre-Confrence on Shale Gas. Presentation presented at the Petrotech 2010, New Delhi, India, October
30. http://www.petrotech.in/pre-conference-shale-gas-tapping-india%E2%80%99s-shale-gas-potential.
20
Sawhney, P., 2011. The State of Domestic Resources - Non Conventional. Plenary Session presented at the India Energy
Forum 9th Petro Summit, New Delhi, India, January 11, 2011. ttp://www.indiaenergyforum.org%2F9thpetro-
summit%2Fpresentations%2FPlenary-1%2FPrem-Sawhney.pdf&rct=j&q=the%20state%20of%20domestic%20resources%20-
%20non%20conventional&ei=JEdITbGFHsT48Aa-ncj_Bg&usg=AFQjCNF5lzKOM5dDxB2SH3bkEhCvGdiuFw&cad=rja.
21
Mishra, H.K., and Cook., A.C., 1992. Petrology and Thermal Maturity of Coals in the Jharia Basin: Implications for Oil and
Gas Origins. International Journal of Coal Geology, vol. 20, p. 277-313.
22
Ghosh, S. C. 2002. The Raniganj Coal Basin: an Example of an Indian Gondwana Rift. Sedimentary Geology 147, no. 1-2p.
155-176.
23
Mathur, N., Raju, S.V. and Kulkarni, T.G., 2001. Improved Identification of Pay Zones through Integration of Geochemical
and Log DataA Case Study from Upper Assam basin, India. American Association of Petroleum Geologists, Bulletin, vol. 85,
no. 2.

June, 2013 XXIV-42
24
Wandrey, C., 2004. Bombay Geologic Province Eocene to Miocene Composite Total Petroleum System, India. USGS
Bulletin 2208-F, p. 1-26.
25
Mallick, R.K. and Raju,S.V., 1995. Thermal Maturity Evaluation by Sonic Log and Seismic Velocity Analysis in Parts of Upper
Assam Basin, India, Org. Geochem. vol 23, p. 871-879.
26
Viqar-Un-Nisa Quadri and Shuaib,S.M., Hydrocarbon Prospects of the Southern Indus Basin, Pakistan, AAPG Bulletin, vol. 70,
p. 730-747.
27
Quadri, Viqar-Un-Nisa, and Shuaib, S., 1968 Hydrocarbon Prospects of Southern Indus Basin, Pakistan. AAPG Bulletin 70,
p. 730-747.
XXV. Jordan

June, 2013

XXV.
SUMMA
Jo
Wadi Sir
the large
n

JORD
ARY
ordan has tw
han, Figure
er Mudawwa
F
Source
DAN
wo basins w
XXV. The t
ra Formation
Figure XXV-1.
e: ARI, 2013.
XX
with potential
target horizo
n.
Base Map an
EIA/ARI W
XV-1
l for shale g
on is the org
nd Cross-Sect
World Shale Gas
gas and oil, t
ganic-rich Sil
tion Location,
and Shale Oil R
the Hamad
lurian-age B
, Jordan.
Resource Assess

(Risha area
Batra Shale w

sment
) and
within
XXV. Jordan

June, 2013

O
shale ga
1. In ad
place, wi
XXV-2.
n

Our assessm
s in-place w
ddition, we e
ith about 0.1
Tabl
Source: ARI 2
P
h
y
s
i
c
a
l
E
x
t
e
n
t
B
a
s
i
c
D
a
t
a
R
e
s
o
u
r
c
e
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
ment is that
with 7 Tcf of
estimate tha
1 billion bar
e XXV-1. Sha
2013.
ProspectiveAr
Thickness (ft)
Depth (ft)
Basin/G
ShaleF
Geolo
Depositiona
Gas Phase
GIP Concentra
Risked GIP (Tc
Risked Recove
Reservoir Pres
Average TOC (
Thermal Matur
Clay Content
XX
the Batra S
risked, tech
at the Batra
rels of riske
ale Gas Reserv
Organically Ric
Net
Interval
Average
rea (mi
2
)
Gross Area
Formation
ogic Age
al Environment
ation (Bcf/mi
2
)
cf)
erable(Tcf)
ssure
(wt. %)
rity (%Ro)
EIA/ARI W
XV-2
Shale in thes
hnically recov
Shale holds
ed, technical
voir Properties
Ham
(6,700
Bat
Silur
Mari
3,30
ch 16
80
6,500 -
8,50
Norm
2.0%
1.30
Medi
Dry G
25.
33.
6.7
World Shale Gas
se two basin
verable sha
s 4 billion b
ly recoverab
s and Resour
mad
mi
2
)
tra
rian
ine
00
0
0
10,000
00
mal
%
0%
ium
Gas
.3
.4
7
and Shale Oil R
ns contains
le gas resou
barrels of ris
ble shale oil
rces of Jordan
Wadi Sirhan
(4,700mi
2
)
Batra
Silurian
Marine
1,050
120
60
4,500 - 6,500
5,500
Normal
4.0%
0.80%
Medium
Assoc. Gas
3.7
1.6
0.2
Resource Assess

35 Tcf of r
urce, Table
sked shale o
l resource, T
n

sment
risked
XXV-
oil in-
Table
XXV. Jordan

June, 2013

INTROD
E
the Mud
hydrocar
Tanezzu
These Lo
content,
A
Risha Fo
gas.
3
,
4
H
to 1.5%,

n

Tab
DUCTION
Eastern Jorda
dawwara Fo
rbons in Nor
ft Formation
ower Siluria
having gam
Additional or
ormation. T
However, the
below the T
le XXV-2. Sha
Source: ARI, 2
an contains
ormation.
rth Africa, Ira
n in Libya an
n-age shale
ma-ray valu
rganically en
These shales
e TOC value
TOC cut-off s

P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pro
Thi
Dep
B
a
s
i
c
D
a
t
a
R
e
s
o
u
r
c
e
Oil
OIP
Ris
Ris
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Res
Ave
The
Cla
XX
ale Oil Reserv
013.
Silurian-age
Similar Silu
aq and Saud
nd the Qusai
es are often
es of >150 A
nriched mar
s are 60 to
es of these U
set forth for t
Or
Ne
Int
Av
ospective Area (
ickness (ft)
pth (ft)
Basin/Gros
Shale Form
Geologic
Depositional E
Phase
P Concentration
sked OIP (B bbl)
sked Recoverab
servoir Pressur
erage TOC (wt.
ermal Maturity (
ay Content
EIA/ARI W
XV-3
voir Properties
e organic-ric
urian organi
di Arabia. T
ba Shale of
called Hot
API units, Fig
rine shales
120 feet th
Upper Ordov
this study.
ganically Rich
et
terval
verage
(mi
2
)
ss Area
mation
c Age
nvironment
n (MMbbl/mi
2
)
)
ble (B bbl)
re
%)
(%Ro)
World Shale Gas
s and Resourc
ch marine sh
ic-rich shale
The Batra Sh
f the Qalibah
t Shales be
gure XXV-2
exist in the
hick and hav
vician shales
Wadi Sirh
(4,700m
Batra
Silurian
Marine
1,050
120
60
4,500 - 6,5
5,500
Norma
4.0%
0.80%
Medium
Oil
8.8
3.7
0.15
and Shale Oil R
ces of Jordan

hales in the
es are a m
hale is time
h Formation
ecause of th
.
2

e uppermost
ve thermal m
s generally
han
i
2
)
n
e
500
l
m
Resource Assess

Batra Memb
major sourc
equivalent t
in Saudi Ara
heir high ura
t Ordovician
maturities fo
range from
sment
ber of
ce of
to the
abia.
1

anium
n-age
or dry
0.5%
XXV. Jordan

June, 2013

F
most val
2009
2
), K
within the
entitled,
Fi
Source: Lith
generalized
Armstrong (

1. GEOL
T
Sirhan ba
of the So
Batra Sh
southern
Type I/II
XXV-3 pr

n

or the shale
luable geolo
Keegan (199
e Natural Re
Petroleum E
igure XXV-2.
hostratigraphy an
depositional en
(2009)
LOGIC SET
The Batra S
asins of eas
outhern Des
hale in Jorda
and easter
marine sha
rovides the d
e gas and oil
ogical work
90
6
), and A
esources Au
Exploration
Lithostratigra
nd chronostratig
vironments for o
TTING
hale is pres
stern Jordan
sert of Jorda
an. The Syr
rn limits of t
ale, deposite
depth and ar

XX
l resource as
and publica
hlbrandt (19
uthority prov
Opportunitie
aphy for the O
raphy for the Or
outcrops in the S
sent in the
, as well as
an. The He
ria, Iraq and
the Jordan p
ed along the
real extent fo
EIA/ARI W
XV-4
ssessment o
ations of Lu
997
7
). In a
vided import
es in Jordan
Ordovician and
rdovician and Sil
Southern Desert
sub-surface
in the near-
ercynian sub
Saudi Arab
portion of th
e margins o
or the prosp
World Shale Gas
of Jordan, w
uning (2000,
ddition, Jord
tant informat
.
8

d Silurian of J
lurian of Jordan
region of Jordan
e in the Ham
-surface in t
b-crop estab
bia borders w
his shale de
of the reced
pective areas
and Shale Oil R
we have draw
,
1
2005
3
), A
dans Petro
tion in their
Jordan and Sa
and Saudi Arab
n (redrawn from
mad (Risha
he Al Jafr a
blishes wes
with Jordan
posit. The
ing Gondwa
s of Batra Sh
Resource Assess

wn heavily o
Armstrong (2
leum Direct
2006 public
audi Arabia,
ia, showing
Turner et al., 20
area) and
rea and outc
tern limits o
set the nort
Batra Shale
ana shelf. F
hale in Jorda
sment
on the
2005,
5

torate
cation
005).
Wadi
crops
of the
thern,
e is a
Figure
an.
3

XXV. Jordan

June, 2013

T
called th
Shale.
3

resource
n

The Batra Sh
e Lower H
We have
e assessmen
Fig
Source: ARI, 20
hale contains
ot Shale, a
included the
nt.
gure XXV-3. D
013.
XX
s three distin
a middle uni
e Lower H
Depth and Pro
EIA/ARI W
XV-5
nct organic-r
t within low
ot Shale a
ospective Area
World Shale Gas
rich intervals
wer organic c
and the Up
as - - Batra Sh
and Shale Oil R
s - - a highly
content, and
per Hot Sh
hale, Jordan
Resource Assess

y organic-rich
d the Uppe
ale units in

sment
h unit
er Hot
n our
XXV. Jordan

June, 2013

T
underlyin
Lower H
Shale ex
Shale is
T
east. The
window)
Risha ar
approxim
during ea

n

The Lower H
ng Dubaydib
Hot Shale th
xists in the H
s at the top o
Figure X
Source: S. Lu
The thermal
e shale is i
in the Wadi
rea.
3
,
7
Th
mated using
arly Silurian
Hot Shale
b Formation
hins to the w
Hamad Basi
of the Batra S
XXV-4. Chono
ning, 2005.
maturity of t
mmature to
Sirhan area
e determina
graptolite re
time.)

XX
unit, deposi
, is present
west, north a
ns Risha ga
Shale interva
ostratigraphy
the Batra Sh
early-matur
a, and is late
ation of the
eflectance an
EIA/ARI W
XV-6
ted at the b
in southea
and south in
as field area
al, XXV-Figu
of the Upper O
hale increas
re in the Al
e to post-ma
e thermal m
nd maximum
World Shale Gas
base of the
astern Jorda
the Wadi S
a along the I
ure 4.
3

Ordovician-Si
es from sou
Jafr area,
ature (gas w
maturity for
m temperatu
and Shale Oil R
Batra Shale
an (Wadi Sir
Sirhan area.
raqi border.
ilurian in Jord
uth to north a
becomes m
indow) in the
the Batra
ure. (Vitrinite
Resource Assess

e and above
rhan Basin).
The Uppe
The Uppe
dan.
and from we
middle-matur
e Hamad Ba
Shale has
e did not yet
sment
e the
. The
er Hot
er Hot
est to
re (oil
asins
been
exist
XXV. Jordan

June, 2013

A
Lower H
Upper H
2. RESE
L
Shale ra
that the s
Hot Shal
net pay
provides
XXV-1 pr
Source: NR

n

As shown in
Hot Shale in
Hot Shale in
ERVOIR PR
Lower Hot S
anges from
shale in this
e unit in th
of about 60
a north to
rovides the c
Figure
A Petroleum Dir
Figure XXV
n the oil-pron
the gas-pro
ROPERTIE
Shale. In th
4,500 to 6,5
s area is at
e Wadi Sirh
0 ft (using 1
south cross
cross-sectio
e XXV-5. Nort
rectorate Jordan

XX
V-3, we hav
ne Wadi Sirh
one Risha ar
S (PROSP
he Wadi Sir
500 ft, avera
normal pres
han prospect
50 API unit
s-section for
n locations.
3
th to South Re
, 2006.
EIA/ARI W
XV-7
ve mapped a
han area and
rea.
ECTIVE AR
han prospec
aging 5,500
ssure. The o
tive area ran
ts of backgr
the Batra S
3
,
8
)
egional Cross-
World Shale Gas
a prospectiv
d a prospec
REA)
ctive area, t
ft. Based
organic-rich
nges from 3
round gamm
Shale in the
-Section, Wad
and Shale Oil R
ve area of 1
ctive area of
the depth o
on analog d
gross interv
30 to 100 ft,
ma radiation)
e Wadi Sirha
di Sirhan Basi
Resource Assess

1,050 mi
2
fo
3,300 mi
2
fo
f the Lowe
data, we ass
val of the L
with an ave
). Figure X
an area.
8
(F
n.
sment
or the
or the
er Hot
sume
Lower
erage
XXV-5
Figure
XXV. Jordan

June, 2013

T
of about
R
o
equiv
analogs f

(A) Total org
(HC)/g TOC
13C values
U
Hot Shal
we assum
Hot Shal
about 80
cross-sec
n

The TOC of t
4%, Figure X
valent, avera
for suppleme
Figure XX
ganic carbon (TO
C). (C) Steranes/
s of organic carb
Upper Hot S
e ranges fr
me that the
e unit in th
0 ft, based on
ction for th
the Lower H
XXV-6.
2
The
aging 0.8%
ental reserv
XV-6. Bulk Or
OC) content of th
/17-hopanes ra
bon (OC) versus
Shale. In the
rom 6,500 to
shale is at
e Risha pro
n a minimum
e Batra Sh
XX
Hot Shale u
e thermal m
R
o
. We ha
oir data for t
rganic Carbon
he bulk sedimen
atio shows its hig
s Vienna Peedee
e Hamad Ba
o 10,000 ft, a
normal pres
ospective are
m 2% TOC v
hale in the
EIA/ARI W
XV-8
unit ranges f
aturity of the
ave used oth
the Lower H
n, Biomarker a
nt. (B) Hydrogen
ghest value at 12
e belemnite (VPD

asin/Risha p
averaging 8
ssure. The o
ea is about
value cutoff.
Risha area
World Shale Gas
from 1.5% to
e shale unit
her Silurian-
Hot Shale in
and Stable Ca
index (HI) of the
2.94m above the
DB) in parts per
rospective a
8,500 ft. Bas
organic-rich
160 ft thick
Figure XXV
a (see Figu
and Shale Oil R
o 9%, with a
is estimated
-age hot sh
n the Wadi S
arbon Isotope
e bulk sediment
e base of the Ba
mil ().Source
area, the dep
sed on limite
gross interv
, with an av
V-7 provides
ure XXV-1 f
Resource Assess

an average v
d at 0.7% to
hale deposi
Sirhan Basin
Data.
(mg hydrocarbo
tra formation. (D
: Armstrong (200
pth of the U
ed well test
val of the U
verage net p
s a north to s
for cross-se
sment
value
1.0%
its as
.
ons
D)
09)
Upper
data,
Upper
pay of
south
ection
XXV. Jordan

June, 2013

location.)
intervals
estimated
hot sha
Hamad B

Source: NR

F
backgrou

n

).
8
The ave
using the n
d at above
le deposits
Basin (Risha
Figure XXV
A Petroleum Dir
igure XXV-8
und value fo
erage TOC
net to gross
1.2% R
o
eq
s for supple
a Area).
V-7. Regional
rectorate Jordan
8 is an isop
r determinin
XX
value is ab
s pay ratio.
quivalent
3
. W
emental rese
Geologic Cro
, 2006
pach map fo
g organically
EIA/ARI W
XV-9
bout 2%, a
The therm
We have us
ervoirs data
oss-Section, E
or the Batra
y rich shale.
World Shale Gas
fter exclusio
al maturity
sed analog d
for the U
Eastern Hamad
a Shale usi
.
3

and Shale Oil R
on of the lo
of the Upp
data from o
pper Hot S
d Basin (Risha
ng the 150
Resource Assess

ower TOC v
per Hot Sha
other Silurian
hale unit in
a Area).
API gamm
sment
value
ale is
n-age
n the
ma-ray
XXV. Jordan

June, 2013

Figure X

n

XXV-8. Isopac ch Map of Org
AP

XXV
anic-Rich Silu
PICorrespond
EIA/ARI W
V-10
urian Shales w
ding to Organic

World Shale Gas
with Total Gam
c Richness.
and Shale Oil R
mma-Ray Valu
Resource Assess

ues Exceeding

sment
g 150
XXV. Jordan

June, 2013

3. RESO
W
Basin is
the Jord
resource
associate
T
is estima
favorable
of 0.1 bil
Sirhan B
H
Basin/Ris
east by t
Batra Sh
T
Based o
recovera
area.
4. RECE
A
prospect
of 42
o
A
have rep
remains
area into
the wells
overlying
accumula

n

OURCE AS
Wadi Sirhan
limited on th
anian borde
e concentrat
ed gas.
The risked re
ated at 4 bill
e reservoir p
lion barrels
asin.
Hamad/Rish
sha area is l
the Jordania
ale has a re
The risked sh
on moderat
ble shale ga
ENT ACTIV
A number o
ing for oil. O
PI oil from s
ported shows
confidential
o the Risha t
s are reporte
g Silurian-a
ation.
SSESSMEN
Basin. The
he west by th
er. Within t
tion of 9 m
esource in-pl
ion barrels o
properties, w
plus small v
a Area. Th
imited on th
an border. W
esource conc
hale resourc
tely favorab
as resource
VITY
of deep exp
One well (W
sandstones
s of light oil.
8
. Another s
ight sandsto
d to be prod
age Mudaw

XXV
NT
e prospectiv
he thinning a
the 1,050-m
illion barrels
lace for the
of oil plus 2
we estimate
volumes of a
he prospect
e west by th
Within the 3
centration of
ce in-place f
ble reservo
e of about 7
ploration we
Wadi Sirhan #
associated
8
However,
eries of wel
one member
ducing at a c
wwara Form
EIA/ARI W
V-11
ve area for th
and thermal
mi
2
prospecti
s of oil per
shale oil pro
Tcf of asso
a risked, te
associated s
tive area for
he pinch-out
3,300-mi
2
pro
f 25 Bcf/mi
2
.
for the gas p
ir propertie
Tcf for the
ells have b
#4) is report
with the Ba
much of the
ls (31) have
r of the Ordo
combined rat
mation, is
World Shale Gas
he Lower Ba
maturity of
ive area for
r mi
2
plus m
ospective ar
ociated shale
echnically re
hale gas for
r the Upper
of the shale
ospective ar
prospective
es, we esti
Batra Shale
been drilled
ted to have
atra Shale, w
e data from
e been drille
ovician-age D
te of 30 MM
considered
and Shale Oil R
atra Shale in
the shale an
r oil, the Ba
moderate v
rea of the W
e gas. Base
coverable s
r the Batra S
r Batra Sha
e and on the
rea for wet
area is esti
mate a ris
e in the Ham
d in the W
produced 25
while other
these deep
ed in the Ham
Dubaydib Fo
cfd.
7
The B
the sourc
Resource Assess

n the Wadi S
nd on the ea
atra Shale h
olumes of s
Wadi Sirhan B
ed on moder
hale oil reso
Shale in the
le in the Ha
north, south
and dry gas
mated at 33
sked, techn
mad Basin/R
adi Sirhan
5 barrels pe
exploration
exploration
mad Basin/R
ormation. F
atra Shale, i
ce of this
sment
Sirhan
ast by
has a
shale
Basin
rately
ource
Wadi
amad
h and
s, the
3 Tcf.
nically
Risha
area
er day
wells
wells
Risha
ive of
in the
gas
XXV. Jordan

June, 2013

REFERE

1
Luning, S.
Elsevier E
2
Armstrong
Basin, So
3
Luning, S.
Shales in
p. 1397-1
4
Based on
5
Armstrong
Deglacial
6
Keegan, J
the Hashe
7
Ahlbrandt,
Rocks, E
Internatio
8
Natural R
Opportun
n

ENCES

et al., 2000. L
Earth-Science R
g, H.A. et al., 2
outhern Jordan.
et al., 2005. A
Jordan and Imp
427.
H. Ramini, 1995
g, H.A. 2005.
Black Shale, Jo
.B., Rasul, S.M.
emite Kingdom o
T.S., Okasheh,
astern Jordan,
onal Conference
Resources Auth
nities in Jordan.

Lower Silurian H
Reviews, vol. 49,
009. Black Sh
Elsevier Paleo
Anatomy of a Wo
plications for Hyd
5, personal comm
Origin, Sequen
ordan. Elsevier
, and Shaheen,
of Jordan. Rev
O.A., and Lewa
Western Iraq an
and Exhibition,
hority, Petroleum

XXV
Hot Shales in No
p. 121-200.
hale Deposition
geography, Pale
orld-Class Sourc
drocarbon Poten
munication with S
nce Stratigraphy
, Paleogeograph
Y., 1990. Palyn
v. Palaeobot. Pal
an, M.D., 1997.
nd Surrounding
7-10 September
m Directorate, t
EIA/ARI W
V-12
orth Africa and A
in an Upper O
eoclimatology, P
ce Rock: Distrib
ntial. American
S. Luning.
y and Deposition
hy, Paleoclimato
nostratigraphy o
lynol., vol. 66, p.
A Middle East
Regions. Ame
r 1997, Vienna, A
the Hashemite
World Shale Gas
Arabia: Regiona
rdovicianSiluria
Paleoecology, vo
ution and Depos
Association of P
nal Environmen
ology, Paleoecol
of Lower Paleozo
. 167-180.
Basin Center H
erican Associati
Austria.
Kingdom of Jo
and Shale Oil R
al Distribution an
an Permanently
ol. 273, p. 3683
sitional Model o
Petroleum Geolo
t of an Upper O
ogy, vol. 220, p.
oic, Cambrian to
ydrocarbon Acc
on of Petroleum
ordan, 2006. P
Resource Assess

nd Depositional M
y Stratified, Peri
377.
f Silurian Organ
ogists, Bulletin, v
Ordovician (Hirn
. 273-289.
o Silurian, Sedim
cumulation in Pa
m Geologists, Ab
Petroleum Expl
sment
Model,
-glacial
nic-Rich
vol. 89,
nantian)
ments of
leozoic
bstract,
loration
XXVI. Turke

June, 2013
XXVI
SUMMA
T
Anatolia
These tw
petroleum
gas reso
available
Source: AR
ey

. TUR
ARY
This resourc
Basin in so
wo basins ha
m company
ources in the
e for these tw
I, 2013.
RKEY
e assessme
outhern Turk
ave active s
(TPAO) and
e Sivas and
wo lightly exp
Figu
ent address
key and the
shale oil and
d several int
d Salt Lake
plored basin
ure XXVI-1. Ma
EIA/ARI W
XXVI-1
ses two sha
e Thrace Ba
d gas explor
ernational c
basins. H
ns.
ajor Shale Bas
World Shale Ga
ale basins in
asin in west
ration under
companies.
However, on
sins of Turkey
s and Shale Oil
n Turkey -
tern Turkey
rway by the
Turkey may
ly limited re
y
Resource Asses
- the South
y, Figure XX
Turkish nat
y also have s
eservoir data
ssment

heast
XVI-1.
tional
shale
a are
XXVI. Turke

June, 2013
W
the Thra
technical
two shale
as the ris
ey

We estimate
ace Basin c
lly recoverab
e basins also
sked, technic
Table X
Table X
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
s
Reservoir
AverageTO
Thermal M
Clay Conte
R
e
s
o
u
r
c
e
Gas Phase
GIP Conce
Risked GIP
Risked Rec
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Prospectiv
Thickness
Depth (ft)
B
a
s
i
c
D
a
t
aBas
Sh
G
Deposit
R
e
s
e
r
v
o
i
r
P
r
o
p
e
r
t
i
e
sRe
Av
Th
Cla
R
e
s
o
u
r
c
e
Oil
OIP
Ris
Ris
P
h
y
s
i
c
a
l
E
x
t
e
n
t
Pro
Th
De
B
a
s
i
c
D
a
t
a
that the Dad
ontain 163
ble shale ga
o contain 94
cally recover
XXVI-1. Shale
XXVI-2. Shale
Organically R
Net
Interval
Average
Pressure
OC (wt. %)
Maturity (%Ro)
ent
e
entration (Bcf/mi
2
)
P (Tcf)
coverable(Tcf)
veArea(mi
2
)
(ft)
sin/Gross Area
haleFormation
Geologic Age
tional Environment
Orga
Net
Inter
Aver
servoir Pressure
verageTOC (wt. %
ermal Maturity (%
ay Content
l Phase
P Concentration (
sked OIP (B bbl)
sked Recoverable
ospectiveArea(m
ickness (ft)
pth (ft)
Basin/Gross
ShaleForma
Geologic A
Depositional Env
das Shale in
Tcf of riske
as resource,
4 billion barre
rable shale o
e Gas Reserv
e Oil Reservo
3,540
ich 394
216
6,000 - 11,50
9,000
Mod. Overpres
3.6%
0.85%
Med./High
Assoc. Gas
48.2
102.4
10.2
SE
(3
Silur
t
anically Rich
rval 6,0
rage
O
M
)
%Ro)
(MMbbl/mi
2
)
e(B bbl)
mi
2
)
s Area
ation
Age
vironment
EIA/ARI W
XXVI-2
n the SE Ana
ed shale ga
Table XXV
els of risked
oil resource,
voir Propertie
oir Propertie
500
377
207
00 5,500 - 13,0
9,500
ss. Mod. Overpre
3.6%
1.15%
Med./High
s Wet Gas
91.4
27.4
6.9
Marine
E Anatolian
32,100mi
2
)
Dadas
rian-Devonian
3,540
394
216
000 - 11,500 5,50
9,000
Mod.
Overpress. Ov
3.6%
0.85% 1
Med./High Me
Oil Con
41.0
87.1
4.36
SE Anatolia
(32,100mi
2
Dadas
Silurian-Devon
Marine
World Shale Ga
atolian Basin
as in-place,
VI-1. In add
shale oil in-
, Table XXV
es and Resou
es and Resou
150
500
250
00 10,000 - 13,00
11,500
ess.
Mod.
Overpress.
2.0%
0.85%
h Medium
Assoc. Gas
34.7
1.9
0.1
500
377 5
207 2
0 - 13,000 10,000
9,500 11
Mod.
erpress.
M
Ove
3.6% 2
1.15% 0.
ed./High Me
ndensate
14.2 3
4.2
0.21 0
an
)
nian
s and Shale Oil
n and the Ha
with 24 Tc
ition, we est
-place, with 4
VI-2.
urces of Turk
urces of Turk
210
500
250
00 13,000 - 16,400
14,500
Mod.
Overpress.
2.0%
1.15%
Medium
s Wet Gas
81.8
6.2
1.2
Thrace
(6,500mi
2
)
Hamitabat
M. - L. Eocene
Marine
150 21
500 50
250 25
0 - 13,000 13,000
1,500 14,
Mod.
rpress.
Mo
Overp
2.0% 2.0
.85% 1.1
edium Med
Oil Conde
33.8 8
1.8 0
0.07 0.
Thrace
(6,500mi
2
)
Hamitabat
M. - L. Eocene
Marine
Resource Asses
amitabat Sha
cf as the ris
timate that t
4.7 billion ba
key
key

680
500
250
14,000 - 16,400
15,000
Mod.
Overpress.
2.0%
2.00%
Medium
Dry Gas
104.1
25.5
5.1
10
00
50
- 16,400
500
od.
press.
0%
5%
dium
ensate
8.0
0.6
02
ssment

ale in
sked,
these
arrels
XXVI. Turke

June, 2013
1. S
1.1 In
T
basin con
XXVI-2.
juncture
east by t
prone ba
from Mar
the Bedin
Source: AR
ey

SOUTHEAS
ntroduction
The SE Anat
ntains the S
The basin
of the Arab
the Syria, Ir
asin with abo
rdin Group c
nan Sandsto
Figure XX
I, 2013.
ST ANATO
n and Geo
tolian Basin
ilurian Dada
is bounded
ian and Eur
aq and Turk
out 100 oil f
carbonate fo
one that cont
XVI-2. Outline
LIAN BASI
logic Setti
covers a la
as Shale, loc
d on the no
rasian tecton
key border.
field discove
ormations, th
tains light, 4
and Depositio
EIA/ARI W
XXVI-3
IN
ng
arge, 32,100
cated in the c
orth by the
nic plates. T
The SE An
eries to date
he basin also
40
o
to 50
o
AP
onal Limit of D
World Shale Ga
0-mi
2
area in
central basin
Zagros sut
The basin is
natolian Bas
e. While the
o has deep P
PI gravity oil.
Dadas Shale, S
s and Shale Oil
n southeaste
n portion of
ture zone, w
s bounded o
sin is an act
e bulk of the
Paleozoic re
.
SE Anatolian
Resource Asses
ern Turkey.
the basin, F
which marks
on the south
tive, primaril
e oil producti
eservoirs suc
Basin
ssment

The
Figure
s the
h and
ly oil-
ion is
ch as
XXVI. Turke

June, 2013
In
northern
sea leve
with ano
the north
plate. As
Saudi Ar
with the E
T
the Late
Triassic-J
Dadas S
evaluated
may be w
A
Anatolian
bounded
m sub-se
on the n
through t
location o
1.2 R
T
prospect
condensa
Tmax of
gas/cond
follows th

ey

n the early
Gondwana
l rise caused
xic condition
hern edge of
s such, the S
rabia and Ira
Eurasian Pla
The SE Anat
Cretaceous
Jurassic Jo
Shale, the b
din this reso
wet gas-pron
ARI mapped
n Basin as p
on the east
ea depth con
north by the
the center o
of the cross-
Reservoir P
The Dadas
ive for shal
ate, Figure
455
o
C as a
densate pron
he -1,500-m
Paleozoic,
super-conti
d by melting
ns preserve
f the Gondw
SE Anatolia
aq, although
ate.
tolian Basin
s Karabogaz
di Group.
1

basal membe
ource study,
ne in the dee
a 4,040-mi
2
prospective f
t by the 10-m
ntour for the
e Hazro Up
of the basin,
-section is sh
Properties
Shale of t
e oil and a
XXVI-5. B
a proxy for
ne area, Figu
sub-sea de

Silurian-age
nent (prese
g of Ordovic
d organic-ric
wana super-c
n Basin sha
it experienc
contains thr
z organic-ric
The most
er of which
Figure XXV
eper norther
2
area

of the
for shale gas
m Dadas I S
e Dadas Sha
lift.
2
Figure
illustrating
hown on Fig
(Prospecti
the SE Ana
a smaller, no
ecause of l
the R
o
of 1
ure XXVI-6.
3
pth contour
EIA/ARI W
XXVI-4
e shale form
nt day North
cian-age glac
ch sediment
continent, w
ares similar g
ced more inte
ree source r
ch limeston
prospective
, called Dad
VI-3.
2
In ge
n area of the
Dadas Sha
s and shale o
Shale isopac
ale (approxim
e XXVI-4
1
p
the presenc
gure XXVI-2)
ive Area)
atolian Bas
orthern 500
imited data
1.0% bound
3
The south
for the Dada
World Shale Ga
mations wer
h Africa and
ciers. Regio
ts. The SE
hich later se
geology with
ense faulting
rocks - - the
e, and the
e of these s
das I, is the
eneral, the D
e basin.
ale in the no
oil developm
ch, on the so
mately equiv
provides a n
ce and dept
).
sin contains
0-mi
2
prospe
on vitrinite
ary between
ern 0.7%-R
o
as Shale.
s and Shale Oil
re deposited
d the Middle
onal lows an
Anatolian B
eparated to
h the oil-prod
g and thrust
e deep Siluri
organic-rich
source rock
e organic-ric
Dadas Shale
orth-central p
ment. The pr
outh and we
valent to an
north to sou
h of the Dad
s a 3,540-m
ective area
e reflectance
n the oil pro
o
boundary f
Resource Asses
d throughou
e East), follo
d offshore d
Basin was pa
form the Ara
ducing regio
ting from col
an Dadas S
h deposits in
ks is the Sil
ch shale int
e is oil pron
portion of th
rospective ar
est by the -1
R
o
of 0.7%)
uth cross-se
das Shale.
mi
2
central
for wet gas
e, we have
one and the
for the oil wi
ssment

ut the
owing
deltas
art of
abian
ons of
lision
Shale,
n the
lurian
terval
e but
he SE
rea is
,500-
), and
ection
(The
area
s and
used
e wet
ndow
X

J
S
XXVI. Turkey
June, 2013
Figure XXVI-3.
Source: A. Aydemir,
SWAnatolia Basi
Column
2

2010.
Dadas
in Stratigraphic
A
XXVI-5
Figure X
Source: E. A
EIA/ARI W
XXVI-4. SWAnatoli
Aytac, 2010.
World Shale Gas and

ian Basin Cross-S
D
Section
1

DadasShale
e Assessment

A
XXVI. Turke

June, 2013
Source: ARI,
ey

Figure
2013

Figure XX
e XXVI-5. Dad
XVI-6. Relation
Source: M. M
as Shale Pros
nship of Tmax
itchell, 2013.
EIA/ARI W
XXVI-6
spective Area,
and Thermal
World Shale Ga
, SE Anatolian
Maturity for B
s and Shale Oil
n Basin, Turke
Basal Dadas I
Resource Asses
ey
Shale
ssment

XXVI. Turke

June, 2013
A
Dadas S
mineralo
informati
The loca
Saribugd
T
ft, averag
total Dad
200-ft thi
B
Shale co
The form
with low
moderate
1.3 R
W
has an e
estimate
place, w
technical
W
concentr
the Dada
technical
place of
resource
ey

A series of k
Shale. The
gy and mic
on and rese
ation of th
day-#1 well a
The depth of
ging 9,000 ft
das Shale Fo
ck basal por
Based on co
ontains Type
mation oil sam
water satur
ely high clay
Resource A
Within the 3,
stimated res
87 billion b
ith 4.4 billio
lly recoverab
Within the 5
rations of 91
as Shale co
lly recoverab
4 billion bar
e.
key wells pr
key wells in
cro-seismic
ervoir pressu
ese three
are shown o
f the Dadas
t in the oil w
ormation ha
rtion consid
re analyses
e II (oil and g
mples tested
ration. The
y (34%) with
Assessmen
540-mi
2
oil
source conce
barrels of ris
on barrels o
ble shale res
500-mi
2
wet
Bcf/mi
2
for w
ntains a risk
ble shale ga
rrels, with 0

rovided valu
ncluded: (1)
data); (2) t
ure data); an
key reserv
n Figure XX
Shale in the
indow and 9
as an extens
dered the pri
s information
gas) marine
d at 40
o
to 50
e mineralogy
39% quartz
nt
prospective
entration of
sked shale o
f shale oil a
sources.
gas and c
wet gas and
ked wet sha
s resource.
.2 billion ba
EIA/ARI W
XXVI-7
uable inform
the Goksu-#
the Bahir-#1
nd (3) the C
voir charact
XVI-5.
e SE Anatoli
9,500 ft in the
sive gross th
mary organi
n from the k
kerogen wit
0
o
API. The
y of the Dad
z.
3
The form
area, the D
41 million ba
oil in-place a
and 10 Tcf
condensate
d 14 million b
ale gas in-pl
This area a
rrels as the
World Shale Ga
ation on the
#1R (with 3
1 (with core
Caliktepe-#2
terization w
ian Basin ra
e wet gas a
hickness of o
c-rich sourc
key wells dis
th a TOC of
shale matri
das Shale i
ation is over
Dadas Shale
arrels/mi
2
of
and 102 Tcf
of associate
area, the
barrels/mi
2
fo
lace of 27 T
also holds ris
risked, tech
s and Shale Oil
e reservoir
30 feet of co
e-based vitr
(with 5 Dad
wells, plus
anges from 6
nd condensa
over 1,000 f
ce rock.
2

scussed abo
f 2% to 7%,
x has a poro
n the Bahir
r-pressured.
e in the SE
f oil plus ass
f of associat
ed shale ga
Dadas Sha
or condensa
Tcf, with 7 T
sked shale o
hnically reco
Resource Asses
properties o
ore, detailed
rinite reflect
das Shale co
the Shell/T
6,000 ft to 13
ate window.
ft, with, its lo
ove, the Da
averaging 3
osity of 6% t
#1 well sho
.
Anatolian B
sociated gas
ted shale ga
as as the ris
ale has reso
ate. We esti
Tcf as the ris
oil/condensa
overable sha
ssment

of the
rock
tance
ores).
TPAO
3,000
The
ower,
das I
3.6%.
to 7%
owed
Basin
. We
as in-
sked,
ource
imate
sked,
ate in-
ale oil
XXVI. Turke

June, 2013
O
barrels o
barrels o
recovera
W
developm
content,
1.4 R
T
Saribugd
well expl
well, Cal
well was
as report
from thei
flowed 15
ey

Overall, we e
of risked sha
of shale oi
ble shale re
While the D
ment, the pr
two factors t
Recent Act
TPAO, the
day-#1 well i
oration prog
iktepe-#2, o
cored, prov
ted earlier i
r two Dadas
52 barrels of
estimate that
ale oil in-pla
l/condensate
sources.
Dadas Sha
rospective a
that could po
ivity
Turkish Na
n License A
gram for the
on their Bism
viding valuab
n this chapt
s Shale test
f 60
o
API gra
t the Dadas
ace and 13
e and 17
ale formatio
areas exhibi
ose significa
ational Oil
Area 4925 tes
area. Anato
mil lease are
ble informat
ter. TransA
wells, Goks
avity oil durin
EIA/ARI W
XXVI-8
I Shale in th
0 Tcf of ris
Tcf of wet
on has rel
t heavy fau
ant developm
Company,
sting the Da
olia Energy
a in early Ja
tion on the r
Atlantic Petro
u-#1 and Ba
ng a three-h
World Shale Ga
he SE Anato
ked shale g
shale gas
latively fav
ulting and th
ment risks.
and Shell
adas Shale.
drilled their
anuary, 201
reservoir pro
oleum repor
ahir-#1. TPA
our test in th
s and Shale Oil
olian Basin c
gas in-place
s as the ris
vorable pro
he shale ha
are curre
Shell has a
first Dadas
2.
4
The sha
operties of t
rted flowing
AO reported
he Dadas Sh
Resource Asses
contains 91 b
e, with 4.6 b
sked, techn
perties for
as moderate
ently drilling
announced a
Shale evalu
ale section i
he Dadas S
gas and lig
d their Oikso
hale.
ssment

billion
billion
nically
gas
e clay
g the
a five-
uation
n the
Shale,
ght oil
r well
XXVI. Turke

June, 2013
2. T
2.1 In
T
Basin is
the Saka
deposits
Hamitaba
area, acc
drilled in
tight sand
Source: AR
ey

THRACE BA
ntroduction
The Thrace
bordered on
arya Massif
reach nearl
at Gas Field
counting for
thirteen ga
d gas play, s
Fig
I, 2013.
ASIN
n and Geo
Basin cover
n the north b
f on the so
ly 30,000 ft
d in 1970, th
r 85% of the
s fields and
sourced by a
gure XXVI-7. O
logic Setti
rs an 6,500-
by the Istran
uth, Figure
thick in the
e Thrace Ba
e countrys
d three oil fie
adjoining an
Outline and D
EIA/ARI W
XXVI-9
ng
-mi
2
area in
nca Massif, b
XXVI-7. T
center of th
asin became
total gas pr
elds in this
d deeper sh
Depositional Li
World Shale Ga
n the Europe
by the Rhod
Tertiary-age
he basin. Fo
e Turkeys m
roduction.
basin. The
hales.
imits of the Th
s and Shale Oil
ean portion
dope Massif
(Eocene th
ollowing the
most importa
About 350
e Thrace Ba
hrace Basin
Resource Asses
of Turkey.
f on the wes
hrough Mioc
discovery o
ant gas prod
wells have
sin is prima
ssment

The
st and
cene)
of the
ucing
been
arily a
XXVI. Turke

June, 2013
T
the Midd
XXVI-8.
5

deposited
environm
the basin
T
content,
depositio
and Ham
sections
T
on depth
mi
2
) and
However
m thresh
mapped
prospect
2.2 R
H
Hamitaba
depths o
2.5%.
7
O
percent t
The net s
M
interval in
this shale
ey

The Thrace B
le Eocene H
The Hami
d in a shallo
ment, contain
n, these shal
The prospect
appropriate
onal environm
mitabat forma
than were a
The 1,040-mi
h and therma
wet gas/con
r, a major po
old used for
the areal e
ive area for
Reservoir P
Hamitabat S
at Shale is
of 14,000 to
Organic cont
to above 6%
shale of the
Mezardere S
n the Thrace
e formation h
Basin contai
Hamitabat Fo
itabat Forma
ow marine e
ns inter-bedd
les have suf
tive areas f
e depth an
ments, accu
ations requi
available for
i
2
prospectiv
al maturity d
ndensate (21
ortion of the
r this analys
xtent and th
this shale be
Properties
Shale. The
also the mo
16,400 ft i
tent is highly
%. Within the
Hamitabat S
Shale. The M
e Basin, Figu
has not been
ins two shal
ormation and
ation contain
environment
ded layers o
fficient therm
or the shale
nd adequate
urately locati
res detailed
this basin, F
ve area iden
data. The H
10 mi
2
) area
dry gas area
is and thus w
hermal matu
ecause the r
(Prospecti
deepest and
ost thermall
n the cente
y variable th
e prospectiv
Shale averag
Mezardere S
ure XXVI-11
n quantitativ
EIA/ARI W
XXVI-10
e source ro
d the Lower
ns a thick s
t. The Meza
f sandstone
mal maturity t
es in the Th
e thermal
ng prospect
d geologic da
Figure XXVI-
tified for the
Hamitabat F
s and a larg
a in the cent
was not incl
urity of the
recent core d
ive Area)
d oldest sh
y mature.
er of the bas
hroughout th
ve area, TOC
ges 250 feet
Shale is a s
.
8
However
vely assesse
World Shale Ga
ck formation
Oligocene M
sequence of
ardere Form
e, shale and
to be in the
hrace Basin
maturity.
tive shale in
ata, and a m
-9.
5

e Hamitabat
Formation co
ger, 680-mi
2
ter of the ba
luded in this
Mezardere
data showed
ale formatio
The shale
sin, with R
o
he formation
C ranges fro
t, Figure XXV
second thick
r, because o
ed.
s and Shale Oil
ns with oil a
Mezardere F
f sandstone
mation, depo
marl. In the
gas window
are based
Because o
ntervals withi
more extens
Formation is
ontains mod
prospective
sin is deepe
s prospective
Shale, we d
d TOC value
on in the Th
is in the dry
o
ranging fro
n, ranging fro
om 1% to 4%
VI-10.
8

k, regionally
of low organ
Resource Asses
and gas pote
Formation, F
, shale and
sited in a d
e deeper are
w.
on total org
of their com
in the Meza
sive set of c
s based prim
est-size oil
area for dry
er than the 5
e area. Whi
did not iden
es less than
hrace Basin
y gas windo
om 1.3% to
om fractions
%, averaging
y extensive s
ic content (<
ssment

ential,
Figure
marl
eltaic
eas of
ganic
mplex
rdere
cross-
marily
(150-
y gas.
5,000-
le we
ntify a
2%.
6

n, the
ow at
over
s of a
g 2%.
shale
<2%),
X

J
S
XXVI. Turkey
June, 2013
Figure XXVI-8. Th
Source: Grgey, Kad
hrace Basin Strati
dir, 2005.
Mezarde
Hamitab
graphic Column
5

ere
at

Source: Grgey,
XXVI-11
Figure
Kadir, 2005.
EIA/ARI W
e XXVI-9. Thrace B
World Shale Gas and

Basin Cross Secti
Mezardere
Hamitabat
ion
5

e Assessment

XXVI. Turke

June, 2013
ey
Figure
Source:

Figure
Source: AR
XXVI-10. Ham
ARI, 2013.
XXVI-11. Mez
RI, 2013.
mitabat Shale
zardere Shale
EIA/ARI W
XXVI-12
Formation of t
Formation of
World Shale Ga
the Thrace Ba
the Thrace Ba
s and Shale Oil
asin, NWTurk
asin, NWTurk
Resource Asses
key
key
ssment

XXVI. Turke

June, 2013
2.3 R
W
concentr
concentr
T
technical
risked sh
recovera
2.4 R
M
TransAtla
in this ba
REFERE
1
Aytac, E.,
January 11,
2
Aydemir,
Surface Acc
Warsaw, Po
3
Mitchell, M
12.
4
Anatolia E
5
Grgey,
Maturity/sou
Geochemist
6
Sari, A., an
Energy Sou
7
Aydmir, A
Region A
kiev/abstrac
8
TransAtlan
ey
Resource A
Within their
ration of 104
ration of 34 m
The Hamitab
lly recoverab
hale oil/cond
ble shale oil
Recent Act
Much of the
antic Petrole
asin, no infor
ENCES
2010. Lower
2010. http://ww
A., 2010. Pot
cess & Infrastru
oland, July 19, 2
M., 2013. Comp
nergy, 2013. U
K., Philp,R.P.,
urce/mixing Esti
try, vol. 20, no. 1
nd Kars,A.S., 20
rces, Part A: Re
A., 2010. Pote
Annual Confer
cts/ndx_Aydemir
ntic Petroleum,
Assessmen
respective
4 Bcf/mi
2
, a
million barre
bat Shale co
ble shale ga
ensate in-pl
l resource.
ivity
activity in
eum. While
rmation has
Paleozoic Oil P
ww.petform.org.tr
ential Shale Ga
ucture. TPAO T
010. http://www.
parison of the Da
Unlocking Turkey
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mations for Nat
11,p. 2017-2037
008. Source Ro
ecovery, Utilizatio
ntial Unconvent
rence, Kiev,
r.pdf.
4Q12 Preliminar
nt
prospective
wet shale g
ls/mi
2
for the
ontains riske
as resource,
ace of 2 bill
the Thrace
these comp
been releas
Potential of SE
r/images/yayinla
as Resources In
Turkish Petroleu
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adas Shale to th
ys Shale Resou
miroglu, H., an
tural Gas and A
7.
ck Characteriza
on, and Environm
tional Reservoirs
Ukraine, Oc
ry Financial and
EIA/ARI W
XXVI-13
areas, AR
as resource
e Hamitabat
ed shale ga
Table XXVI
ion barrels,
Basin is fo
panies have
sed on shale
Turkey, District
r/sunum_ve_kon
n Turkey: Evalu
um Corporation
s-summit-2010.c
he Woodford Sha
rces. March, 2
nd Siyako,M.,
Associated Cond
tion of the Tertia
mental Effects, v
s in Different B
ctober 17. h
Operations Rev
World Shale Ga
I calculates
e of 82 Bcf/m
Shale.
as in-place o
I-1. The Ha
with 0.1 bill
or tight gas
begun to ap
e well tests o
ts X & XI prese
nusmalar/aytac_
uating Ecologica
, presented at
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ale Developmen
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2005. Geoc
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ary Units in Havs
vol. 30, no. 10, p
Basins of Turkey
http://www.searc
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s and Shale Oil
s a dry sha
mi
2
, and a s
of 34 Tcf, w
amitabat Sh
ion barrels a
s, particularl
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or performan
ented at the Pe
_eren.pdf.
al Prospects, Ge
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nt. TransAtlant
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e Thrace Basin,
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ale gas reso
shale oil reso
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ale also con
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A - EIA - ARI - 2013 World Shale Gas and Shale Oil Resource Assessment

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EIA/ARI World Shale Gas and

Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

*Woodford includes Ardmore, Arkoma and Anadarko (Cana) basins.

June, 2013 Attachment C-1

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 Attachment C-2

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 Attachment C-3

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

June, 2013 Attachment C-4

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

EIA/ARI World Shale Gas and Shale Oil Resource Assessment

Source: ARI, 2013.

Table II-1. Shale Gas Reservoir Properties and Resources of Mexico

Table II-2. Shale Oil Reservoir Properties and Resources of Mexico

Figure II-2. Cross-Section of Shale Targets in Eastern Mexico.

Source: Escalera Alcocer, 2012.

Source: PEMEX, 2012b.

Modified from Salvador and Quezada-Muneton, 1989.

1. BURGOS BASIN (Eagle Ford and Tithonian Shales)

1.3 Resource Assessment

Source: ARI, 2013.

La Casita Formation. This Tithonian-age unit, regarded as the primary hydrocarbon

Source: Hudson and Hanson, 2010.

3. TAMPICO BASIN (Pimienta Shale)

Source: Escalera Alcocer, 2012.

3.3 Resource Assessment

Source: ARI, 2013.

4.3 Resource Assessment

5. VERACRUZ BASIN (Maltrata Shale)

5.4 Recent Activity

Source: Escalera Alcocer, 2012.

Source: ARI, 2013

Source: Chungkham, 2009

Figure XIII-5. East-West Cross-Section of Paris Basin Highlighting Permian-Carboniferous Shales

Source: ARI, 2013

Source: ARI, 2013

2.2 Geologic Setting

Source: Vially, R., 2010.

2.4 Resource Assessment

Source: Kockel, 1994.

Source: ARI, 2013.

Source: ARI, 2013.

Source: ARI, 2013

Source: ARI, 2013

Source: ARI, 2013

5.2 Geologic Setting

RI World Shale Gas a

ing Western Sahara