FWS 06 Courtesy of ExxonMobil Lecture 15 Block 7 Bonanza Basin Discovery Well Block 8 Salt Diapir Headlines: Alpha Wildcat Finds Thick Oil Zone! L 15 –

FWS 06Courtesy of ExxonMobil

Lecture 15

Block7

Bonanza Basin

Discovery Well

Block8

SaltDiapir

Headlines: Alpha Wildcat Finds Thick Oil Zone!

L 15 – Beyond Exploration

FWS 06 L 15 – Next StepsCourtesy of ExxonMobil

Our Exploration Flowchart

WildcatDrilled

AssessProspects Success

InterpretSeismic Data

ProcessSeismic Data

AcquireSeismic Data

CapturePrime Areas

Identify Opportunities

Management Approved

Wildcat Well


Courtesy of ExxonMobil


Our Assessment Results

0.0

0.2

0.4

0.6

0.8

1.0

0 100 200 300 400 500

Million Oil Equivalent Barrels

Alpha Prospect – Main Compartment - Risked

Gas Cap & Oil Leg

Gas Only 62 % COS

51 % Chance of Finding More

Than theEconomicMinimum

62% Chance to find any hydrocarbons51% Chance to find 100 MBOE 5% Chance to find 400 MBOE

100

Oil Only

Econ

om

ic M

inim

um



Congratulations! A Huge Success

YOUR exploration well on the Alpha prospect

discovered an estimated 325 MBO

Alpha Prospect

Block7

Bonanza Basin

Discovery Well

Block8

SaltDiapir


0.0

0.2

0.4

0.6

0.8

1.0

0 100 200 300 400 500

Million Oil Equivalent Barrels

Alpha Prospect – Main Compartment - Risked

Gas Cap & Oil Leg

Gas Only 62 % COS

100

Oil Only

Econ

om

ic M

inim

um

FWS 06

What’s Next?

Courtesy of ExxonMobil

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

• If results continue to be good, the FIELD would pass on to Development or Production people

SuccessUneconomic

Drill Wildcats

AssessProspects

ConfirmationWell

SuccessInterpret

Seismic Data

ProcessSeismic Data

AcquireSeismic Data

CapturePrime Areas

Identify Opportunities

To DevelopmentOr Production



Delineation Well

Alpha Prospect

Block7

Bonanza Basin

Discovery Well

Block8

SaltDiapir

Delineation Well

6 Months later…

A delineation well is completed to the NE

An OWC is found at 4500 m – the same depth as in the discovery well

The porosity is slightly better – 26% versus 23% in the discovery well

The delineation well has confirmed enough oil to merit field development – EUR now set at 348 MBO



G&G in Development

• Can we refine our picture of the distribution of oil at Alpha?

• Is the reservoir a single unit, or is it segmented (separate regions to drain)?

• How many wells and where should they be drilled?

• What sort of facilities (platform?) will we need?

• How can we speed-up time to first oil?

• What uncertainties remain?

• Exploration has drilled a discovery and a delineation well.

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

Questions:



We Need More Detail

Reservoir Mapat the end ofExploration

Reservoir Mapat the end ofDevelopment



Some Questions …

#4

#3

#2

#1

Why did they drill well #3?

Why?

Where would you place well #5?

Why did they drill well #4?



Data for Development

Data Used for Exploration Data Reprocessed orReshot for Development

And Production

We may need better quality data to address development needs



G&G in Production

• How should we manage the field so as to maximize our investments?

• Can we monitor how oil is being swept out of the reservoir?

• What about injection wells and enhanced recovery?

• Is there more oil in the vicinity – either at deeper depths or in nearby traps?

• Can we build a computer model of the field that matches existing production data? If so, we can test future recovery with different drilling scenarios.

• Production has begun at Alpha.

• The initial production rates are as expected.

Questions:



Reservoir Simulation

Geologic Model

Reservoir Simulation

Oil P

rod

ucti

on

Production Time

HISTORY MATCH


Actual in Blue

Modeled in Red


The Value of G&G to an Oil Company

• G&G work is done to add HC reserves (volumes) – New discoveries

– More from discovered producing zones

– Additional producing zones

• Get the most reserves at the lowest cost– Invest in the right basins

– Drill in the optimum locations

– Correctly assess what can be recovered

– Avoid unnecessary wells



Let’s Fast Forward a Number of Years

• The Alpha field has been producing for 5 years

• We want to maximize production



An integration of all geologic, geophysical, petrophysical and interpreted or conceptual information about a reservoir into a single 3D numerical description of that reservoir

Structural Interpretation

Stratigraphic Interpretation

Petrophysical Interpretation

Geophysical Interpretation

A Geologic Model



Each cell can be populated with rock & fluid Properties:

– Facies– Porosity– Permeability– Fluid Saturation– Etc.

1m

75 m

Perm

250 mD

Sand

Shale

Perm

0.1 mD

50 m

A Geologic Model



How do we use this information?

• Field development planning• Field production optimization• Reservoir surveillance

Using a Simulation

HistoryO

il R

ate

Time

Prediction

Oil R

ate

Time

HistoryO

il R

ate

Time

HistoryO

il R

ate

Time

HistoryO

il R

ate

Time

Oil R

ate

Time

Prediction

Oil R

ate

Time

Prediction

Oil R

ate

Time

Oil R

ate

TimeTime (yrs)

Oil R

ate

Time (yrs)

Oil R

ate

HistoryO

il R

ate

Time

Prediction

Oil R

ate

Time

HistoryO

il R

ate

Time

HistoryO

il R

ate

Time

HistoryO

il R

ate

Time

Oil R

ate

Time

Prediction

Oil R

ate

Time

Prediction

Oil R

ate

Time

Oil R

ate

Time

Base C

ase

EOR

Infill D

rilling

Actual Modeled



In Summary

• The O&G Industry needs top-notch scientists and engineers to work on a vast array of problems

• The assignments are challenging, fast-paced, and multi-disciplined

• Often your work is tested in the matter of months

• Great Ideas + Good Science -> Success


FWS 06 Courtesy of ExxonMobil Lecture 15 Block 7 Bonanza Basin Discovery Well Block 8 Salt Diapir Headlines: Alpha Wildcat Finds Thick Oil Zone! L 15 –

Documents

exploration slide

courtesy of exxonmobil

courtesy of exxonmobil

courtesy of exxonmobil

exploration actual

development data

stepscourtesy of exxonmobil

red slide