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uncontrolled and therefore not subject to further review, revision or approval.
Relinquishment
Report
Licence P1266
Blocks 12/18, 19b, 20b & 24
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Relinquishment Report for 12/18, 19b, 20b & 24, P1266
P1266 Page 2 of 26 Dana Petroleum plc, King’s Close, 62 Huntly Street, Aberdeen AB10 1RS Tel: +44 1224 616 000 Fax: +44 1224 616 001
Table of Contents
1 Licence Information 4
2 Licence Synopsis 4
3 Work Programme Summary 6
4 Database 6
5 Prospectivity Update 9
6 Further technical work undertaken 24
7 Resource & Risk Summary 25
8 Conclusions 25
9 Clearance 26
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P1266 Page 3 of 26 Dana Petroleum plc, King’s Close, 62 Huntly Street, Aberdeen AB10 1RS Tel: +44 1224 616 000 Fax: +44 1224 616 001
Table of Figures Figure 1: Location map of licence P1266...................................................................................................... 5
Figure 2: Seismic and well database for licence P1266 ............................................................................... 7
Figure 3: 12/20b-1 well log ............................................................................................................................ 8
Figure 4: Stratigraphic summary of the Moray Firth ..................................................................................... 9
Figure 5: Map of recognised prospects & leads from 2012 review ............................................................. 10
Figure 6: Gemini Downdip prospect on TWT map at top KCF level ........................................................... 11
Figure 7: North-South cross section through Gemini Downdip................................................................... 12
Figure 8: West-East cross section through Gemini Downdip ..................................................................... 12
Figure 9: Charles prospect on TWT map at top KCF level ......................................................................... 13
Figure 10: West-East cross section through Charles ................................................................................. 14
Figure 11: North-South cross section through Charles ............................................................................... 14
Figure 12: Jenna prospect on TWT map at top KCF level .......................................................................... 15
Figure 13: North-South cross section through Jenna ................................................................................. 16
Figure 14: West-East cross section through Jenna .................................................................................... 16
Figure 15: Well 12/23-3A ............................................................................................................................ 17
Figure 16: Kate prospect on TWT map at intra-EK3a level ........................................................................ 18
Figure 17: Southeast-Northwest cross section through Kate ..................................................................... 19
Figure 18: Vanna lead on TWT map at top KCF level ................................................................................ 20
Figure 19: South-North cross section through Vanna ................................................................................. 21
Figure 20: West-East cross section through Vanna ................................................................................... 21
Figure 21: Camilla lead on TWT map at intra-Coracle Sandstone level ..................................................... 22
Figure 22: North-South cross section through Camilla ............................................................................... 23
Figure 23: West-East cross section through Camilla .................................................................................. 23
Table of Tables Table 1: Exploration well database for licence P1266 .................................................................................. 6
Table 2: STOIIP volumes for P1266 prospects & leads ............................................................................. 24
Table 3: Resource & Risk Summary for P1266 .......................................................................................... 25
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1 Licence Information
Licence Number: P1266
Licence Round: 23rd
Award Date: 22nd December 2005
Licence Type: Traditional
Block Numbers: 12/18, 19b, 20b & 24
Operator & Equity: Dana Petroleum (E&P) Limited 85%
Partners & Equity: First Oil PLC - 10%, Trap Oil Group PLC - 5%
Dana Petroleum (E&P) Limited confirms that the DECC is free to publish this Report and that all
3rd party ownership rights (on any contained data and/or interpretations) have been considered
and appropriately cleared for publication purposes.
2 Licence Synopsis
Licence P1266 (blocks 12/18, 12/19b, 12/20b and 12/24) was awarded to Petro-Canada UK
Limited and Reach Exploration (North Sea) Limited as a Traditional Seaward Production
Licence in the 23rd Licensing Round on 22nd December 2005 (Figure 1). Petro-Canada was
Operator and had a 90% working interest (WI) and Reach a 10% carried interest. On 15th
August 2006 Petro-Canada UK Limited divested a 40% WI to Samson North Sea Limited. In
2007, Reach Exploration (North Sea) Limited transferred 5% of their interest to Reach
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Exploration (UK) Limited and divested a 5% WI to First Oil Expro Limited. In 2008 Samson
North Sea Limited divested a 5% WI to First Oil Expro Limited. All obligations were met during
the Initial Term and the statutory 50% areal relinquishment was completed in 2009 with blocks
12/19b, 12/20b and part of 12/24, now known as 12/24a, being retained (Figure1). In 2009,
Petro-Canada was acquired by Suncor and on August 24th 2010 Samson’s equity was
transferred to Suncor. On September 7th 2010 Dana Petroleum purchased a portfolio of Petro-
Canada UK (Suncor) assets including P1266.
A 2012 prospectivity review of P1266 resulted in 6 previously identified opportunities being
reclassified into four prospects and two leads. No new prospectivity was identified.
Figure 1: Location map of licence P1266
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3 Work Programme Summary
The original work programme was to shoot 506 km2 of 3D seismic data, carry out special core
analysis and rock property work and drill one well to a depth of 1500m or into the Devonian,
whichever is the shallower. All licence obligations were met by Petro-Canada in the initial term
and are summarised below:
1,775Km2 of 3D seismic data was acquired in the Inner Moray Firth
12/20b-1 was drilled to -4453 ft TVDSS but failed to encounter Jurassic sandstones
SCAL and rock property studies were undertaken
4 Database
Five wells have been drilled in the licence area including 12/20b-1 which met the well obligation
in the initial term of the licence. The nearest field is Captain, due east of the licence area, and
there are a number of exploration wells immediately to the east and west (Figure 2, Table 1).
Well Year Operator Comments
12/18-1 1990 Conoco P&A Dry
12/24-1 1975 Petroswede AB P&A Dry
12/24-2 1981 Occidental P&A dry (weak oil shows)
12/24-3 1987 Occidental P&A Dry
12/25-1 1991 Fina P&A Dry
12/20b-1 2007 PetroCanada P&A
Table 1: Exploration well database for licence P1266
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In 2006, the original Operator, Petro-Canada, acquired 1,775Km2 of 3D seismic data in the
Inner Moray Firth meeting the licence obligations (Figure 2). This survey, PT06GB0001 (3D), is
lodged with DEAL and was shot by WesternGeco as a Proprietary Group-Shoot along with
Nexen and Ithaca.
Figure 2: Seismic and well database for licence P1266
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Well 12/20b-1 was drilled in 2007 targeting the Upper Jurassic Gemini prospect. However, the
well did not penetrate the target sands and the sands penetrated in the Lower Cretaceous and
Jurassic were dry.
Figure 3: 12/20b-1 well log
12/20b-1Operator : PetroCanada
Coordinates : 551189.38, 6467561.00
Scale : 1:1500
Status : Plugged and abandoned
MD
(ft)
1550
1600
1650
1700
1750
1800
1850
1900
1950
2000
2050
2100
2150
2200
2250
2300
2350
2400
2450
2500
2550
2600
2650
2700
2750
2800
2850
2900
2950
3000
3050
3100
3150
Corrected gamma
0 240API
AC
240 40us/ftFo
rma
tio
n
? HI DRA F ORM AT I ON
RØDBY
FO
RM
AT
ION
CA
RR
AC
K F
OR
MA
TIO
NV
ALH
ALL F
OR
MA
TIO
NK
IMM
ER
IDG
E C
LA
Y
FO
RM
AT
ION
HE
AT
HE
R
FO
RM
AT
ION
sensu lato
UP
PA
T
FO
RM
AT
ION
BEAT RI CE F ORM AT I ON
GOL SPI E F OR M AT I ON
HE
RO
N
GR
OU
P
Me
mb
er
UNIT R3
UNIT R2
UN
IT
R1
EK
6
CA
PT
AIN
SA
ND
ST
ON
E
ME
MB
ER
EK
5b
CA
PT
AIN
SA
ND
ST
ON
E
ME
MB
ER
UNIT V7
UNIT V6
UNIT V5
UN
IT V
4U
NIT
V3
EK
3b C
OR
AC
LE
SA
ND
ST
ON
E
ME
MB
ER
UN
IT V
2
EK3 a CORACL E SANDST ONE
M EM BER
UNIT V2
AL
NE
SS
SP
ICU
LIT
E
ME
MB
ER
Ag
e
CENOMANIAN
LATE ALBIAN
MID
DLE
ALB
IAN
EA
RLY
ALB
IAN
LA
TE
AP
TIA
NE
AR
LY
AP
TIA
NLA
TE
BA
RR
EM
IAN
EA
RLY
BA
RR
EM
IAN
?HAUTERIVIAN
LATE RYAZANIAN
EARL Y RYAZ ANI AN
LATE VOLGIAN
l a te s t M IDDL E VOL GI AN
MIDDLE VOLGIAN
EARLY -
MID VOLG
KIMM - EARLYVOLGIAN
earlyKIMMERIDGIAN -
LATEOXFORDIAN
L AT E OXF ORDI AN
MIDDLEOXFORDIAN
EARL Y OXF ORDI AN
late CALLOVIAN
TV
Dss (
ft)
1450
1500
1550
1600
1650
1700
1750
1800
1850
1900
1950
2000
2050
2100
2150
2200
2250
2300
2350
2400
2450
2500
2550
2600
2650
2700
2750
2800
2850
2900
2950
3000
3050
3100
RLA5
0.2 20ohmm
RLA1
0.2 20ohmm
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5 Prospectivity Update
The primary source rock is the Kimmeridge Clay Formation (KCF) (Figure 4) which is immature
in the Inner Moray Firth Basin. Prospectivity relies on long distance migration of hydrocarbons
from deeper parts of the basin to the east, from either the Witch Ground Graben or the northern
part of the Central Graben.
The primary reservoirs in the licence area are Lower Cretaceous turbidite sandstones,
specifically the Carrack Formation Captain Sandstone Member and Valhall Formation Coracle
and Punt Sandstone members (Figure 4). Jurassic sandstones are also present, specifically
the Kimmeridge Clay Formation Burns Sandstone Member and Heather Formation Ross
Sandstone Member. The oldest intervals with recognised reservoir potential are sandstones of
Permian and Devonian age. These have been hydrocarbon-bearing in the Ross Field and Dee
Discovery of the Inner Moray Firth.
Figure 4: Stratigraphic summary of the Moray Firth
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Upper Jurassic reservoirs are sealed by overlying Jurassic (Heather and KCF) and Lower
Cretaceous mudstones however presence of overlying Lower Cretaceous reservoirs may
increase seal risk. Lower Cretaceous reservoirs are sealed by overlying Lower & Upper
Cretaceous mudstones and chalk respectively.
The majority of the trapping mechanisms are structural, either tilted fault blocks or fault-induced
rollover anticlines. Stratigraphic trapping is also possible.
The 2012 prospectivity review of P1266 resulted in 6 previously identified opportunities being
reclassified into four prospects and two leads (Figure 5). No new prospectivity was identified.
Figure 5: Map of recognised prospects & leads from 2012 review
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Gemini Downdip
The Gemini Downdip prospect targets Upper Jurassic Burns sandstones prognosed to pinch out
towards the crestal southern margin of the Smith Bank High. Pinch out is predicted since they
are not present in well 12/20b-1 (Figures 6, 7 & 8). If developed down dip of 12/20b-1, the
sandstones could form a largely stratigraphic trap with some elements of lateral fault seal and
structural dip. If the sandstones are more widely developed, both lateral and up-dip
stratigraphic trapping would be required.
The key risks are presence of robust lateral seals, either stratigraphic pinch-out or from faults,
and presence of reservoir sands. The acoustic impedance values for sands and shales are
very similar at the depth of the prospect and so cannot be discriminated on the available
seismic data, making prospect definition a challenge. Current STOIIP volumes for Gemini
Downdip are presented in Table 2.
Figure 6: Gemini Downdip prospect on TWT map at top KCF level
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Figure 7: North-South cross section through Gemini Downdip
Figure 8: West-East cross section through Gemini Downdip
Gemini
Downdip
Gemini Downdip
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Charles
The Charles prospect is an Upper Jurassic fault-dip closure on the up thrown side of the Smith
Bank Fault and may involve some stratigraphic pinch-out to the south close to the fault (Figures
9, 10 & 11). The key risks are fault seal, since the bounding Smith Bank Fault reaches the
surface, as well as presence of reservoir sands. The acoustic impedance values for sands and
shales are very similar at the depth of the prospect and so cannot be discriminated on the
available seismic data, making prospect definition a challenge. Current STOIIP volumes for
Charles are presented in Table 2.
Figure 9: Charles prospect on TWT map at top KCF level
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Figure 10: West-East cross section through Charles
Figure 11: North-South cross section through Charles
Charles
Charles
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Jenna
The Jenna prospect is a fault controlled rollover anticline (Figure 12, 13 & 14) targeting possible
attic volume in Upper Jurassic Burns Sandstone on the structure on which 12/23-3a was drilled
(Figure 15). The eastern part of the closure is bounded by a fault to the north; the western part
by faults to the south and west (Smith Bank Fault). Fault leakage is a critical risk since
bounding faults reach the surface. Current STOIIP volumes for Jenna are presented in Table 2.
Figure 12: Jenna prospect on TWT map at top KCF level
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Figure 13: North-South cross section through Jenna
Figure 14: West-East cross section through Jenna
Jenna
Jenna
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Figure 15: Well 12/23-3A
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Kate
The Kate prospect targets Lower Cretaceous sandstones in a small fault-controlled rollover
anticline bounded to the north by the Smith Bank Fault (Figures 16 & 17). Top seal at KCF level
is unlikely to be present due to a predominance of sand close to the downthrown side of the
Smith Bank Fault, so a shallower seal is required. Charge and migration is a critical risk since
there are no shows in the Lower Cretaceous in nearby wells. Fault leakage is also a critical risk
since the Smith Bank Fault reaches the surface. Current STOIIP volumes for Kate are
presented in Table 2.
Figure 16: Kate prospect on TWT map at intra-EK3a level
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Figure 17: Southeast-Northwest cross section through Kate
Kate
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Vanna
The Vanna lead targets Lower Cretaceous or Upper Jurassic sandstones in a fault controlled
rollover anticline (Figures 18, 19 & 20). Fault seal is a critical risk since all faults reach the
surface, as is the top seal risk shared with the Kate Lead due to the abundance of sands in the
Lower Cretaceous. Current STOIIP volumes for Vanna are presented in Table 2.
Figure 18: Vanna lead on TWT map at top KCF level
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Figure 19: South-North cross section through Vanna
Figure 20: West-East cross section through Vanna
S N
EK4
Flounder
Top KCF
EW
Heather
Ross-Alness
Permian
EK4
Flounder
Top KCF
Top Chalk
Base Chalk
Vanna
Vanna
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Camilla
The Camilla lead is a small, Lower Cretaceous level fault-dip trap on the downthrown side of the
main Smith Bank Fault, possibly with a small amount of fault-independent closure (Figure 21, 22
& 23). It is poorly defined on seismic and geological reviews suggest very low GRV’s may be
encountered in the Lower Cretaceous interval across the lead. Volumes have not calculated
due to its size and poor definition.
Figure 21: Camilla lead on TWT map at intra-Coracle Sandstone level
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Figure 22: North-South cross section through Camilla
Figure 23: West-East cross section through Camilla
Camilla
Camilla
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Prospect/Lead Name STOIIP (P50) MMbbls
Gemini Downdip 90.86
Charles 31.98
Jenna 22.22
Kate 9.3
Vanna 73.21
Camilla not calculated
Table 2: STOIIP volumes for P1266 prospects & leads
6 Further technical work undertaken
Dana Petroleum has carried out a regional geological, geophysical and petroleum system
reinterpretation of the Inner Moray Firth area. The conclusions of these studies indicate limited
prospectivity remains in blocks 12/18, 12/19b, 12/20b and 12/24.
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7 Resource & Risk Summary
Table 3 summarises the resources and risk on all the leads identified on licence P1266.
Resource and Risk Summary
Prospect Lead
Discovery Name
P L D
Stratigraphic Level
Unrisked recoverable resources Geological Chance of
Success
Risked P50
Mmboe
Oil MMbbls Gas BCF
Low Central
P50 High Low Central High
Charles P U. Jurassic Burns Sst
4.87
2.8% 0.1
Gemini Downdip
P U. Jurassic Burns Sst
13.86
7.2% 1
Jenna P U. Jurassic Burns Sst
4.06 7.2% 0.3
Kate P L.Cret sands 1.57 3.6% 0.06
Vanna L U. Jurassic
Burns Sst or Punt Sst
12.21 2.7% 0.3
Table 3: Resource & Risk Summary for P1266
8 Conclusions
Having met all obligations of the original work programme without making a commercial
hydrocarbon discovery, and with the limited remaining prospectivity recognised in the licensed
area, there was no viable basis on which to continue the Licence into a Production phase. As a
result the Partnership relinquished the Licence in full, effective 21st December 2012.
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9 Clearance
Dana Petroleum (E&P) Limited confirms that the DECC is free to publish this Report and that all
3rd party ownership rights (on any contained data and/or interpretations) have been considered
and appropriately cleared for publication purposes.