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Bridging the  Lacustrine / Marine  Divide:  Lacustrine Shale  Opportunities in A World Wide  Context
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Bridging the Lacustrine / Marine Divide: Lacustrine Shale Opportunities in A World Wide Context

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Shales in the Rift / Lacustrine Setting vs Marine Shales …

Shales in the Rift / Lacustrine Setting vs Marine Shales
• Some examples from Eastern North America
• Some rift / lacustrine exploration tactics
(Thanks to Deer Lake Oil & Gas Inc. for illustrative data)
• The worldwide context
• Some opportunities for China

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  • 1. Bridging theLacustrine / MarineDivide:Lacustrine ShaleOpportunities inA World WideContext Presentation by Cabot J. Martin President Luca Resources Inc. BIT’s 2nd International Symposium on Unconventional Oil & Gas – 2012 WandaVista Hotel Taiyuan, Shanxi Province Peoples Republic of China Sept 25, 2012
  • 2. • 大家好!• 来自加拿大纽芬兰的问候• 我非常开心来到中国最主要的能源中心 --- 太原• 我希望通过我们的商谈能为世界能源及气候问题找出一个 有效,合算的方案。
  • 3. Outline of my Presentation• Shales in the Rift / Lacustrine Setting vs Marine Shales• Some examples from Eastern North America• Some rift / lacustrine exploration tactics (Thanks to Deer Lake Oil & Gas Inc. for illustrative data)• The worldwide context• Some opportunities for China• Presentation will be available on www.lucaresources.ca
  • 4. Lacustrine Rocks are difficult even for Conventional Oil & Gas• “ Perhaps the most important contribution of this conference was the realization that lacustrine settings seem to be far more complex in an exploration sense than their marine counterparts. “• Barry J. Katz (Ed.) Introduction to Lacustrine Basin Exploration – Case Studies and Modern Analogs AAPG Memoir 50 ( 1990)
  • 5. AAPG Memoir 50 also contains a Key Paper from China• Hydrocarbon Accumulation in Meso-Cenozoic Lacustrine Remnant Petroliferous Depressions and Basins, Southeastern China• Li Desheng Research Institute of Petroleum Exploration and Development Beijing. People’s Republic of China; and• Luo Ming Department of Geological Sciences University of Texas at El Paso El Paso, Texas, U.S.A.
  • 6. Rift / Lacustrine – Good for Conventional & Unconventional• Lacustrine means “lake” and lacustrine life forms give primarily oil prone Type I organic material.• Because of its often very thick organically rich sediment package, the rift / lacustrine depositional environment can be highly productive in spite of its usually small surface area - “ punches above its weight”.• Examples – East Africa rift system ( eg. Albertine Basin) ; pre-salt strata offshore Brazil and Angola; onshore Indonesia; the West Newfoundland rift system ; Triassic Newark Super Group of coastal Eastern USA south of NYC ; numerous rift basins of SE China.• The thermal maturity of a given shale unit can range through the oil / condensate / dry gas windows over relatively short distances because of rapid lateral changes in burial depth and localized elevated heat flow• Thick shale sequences can result in all three windows being stacked at the same well location.
  • 7. The Lacustrine / Marine Divide• Lacustrine Clay Suite (mineralogy) different from marine especially re water sensitivities in drilling and fracing operations• Lacustrine environment features rapid lateral and vertical changes in depositional character• Interplay of Tectonics and Paleo-Climate critical for lacustrine / rift plays• Thermal characteristics of shales as measured by Vitrinite Reflectance (Ro % ) and other geochemical parameters different
  • 8. • The next 11 slides will use the rift/ lacustrine Deer Lake Basin in Western Newfoundland to examine the critical first steps in shale oil / shale gas exploration
  • 9. DEER LAKE BASIN : 49 Degrees N Lat( Collision related: SE China analog) 18 Rift Basins Elgin Sub Basin Triassic Rift / Lacustrine Basins Extension Related
  • 10. St Anthony Basin White Bay Basin Deer Lake Bay St George Basin Basin Searston Island of Newfoundland Basin 300 Miles St. John’s HiberniaMontreal White Rose Terra Nova HEBRON 12 other rift basins in this Elgin Sub-basin area 67 tcf shale gas in place on 44,800 hectares Boston 5 Members of the West Newfoundland Rift / Lacustrine System shown in Red GSC & CHS
  • 11. Start with a viewfrom the HeavensAlthough the latitude &climate has changed,due to an extended periodof tectonic quiescencestretching back to thestart of the Permian, thebasic features we seetoday in the Deer Lake DEER LAKE BASINBasin ofdeep fault controlledlakes, flat basin floor,central highlandsand bounding graniticHighlands NASA Space Shuttleare similar to those of Radar Datathe late Carboniferous
  • 12. But basic on the groundField Geology is still Key A > 7 m thick organically rich outcrop in the Deer Lake Basin, Western Newfoundland
  • 13. Understanding the Basin’s Tectonic History is Vital• “ New models for the structural evolution of continental rifts , together with changing depositional patterns through time, suggest that the topography required for large lake development only occurs early in rift history.”•• JJ Lambaise (Marathon Oil) page 265 AAPG Memoir 50 (1990)
  • 14. Relative Position of Werner Hatch # 1 ? In Deer Lake now eroded to ~ this levelProjectedRocky Brook 3300 feetthicknessat Admirals RiseNorth # 1 location ELGIN SUB BASIN (NEW BRUNSWICK) A RIFT / LACUSTRINE DEPOSITIONAL MODEL FOR THE DEER LAKE BASIN (pre flower structure)
  • 15. Always Look Out for a stacked Conventional Play Thick Flat Shale Target Additional Conventional Structure With Porous ? Sandstones
  • 16. Maximize the Science from each Well• Use Continuous coring rigs from Surface to Total Depth ( NOT rotary tri-cone)• Have specially equipped core analysis trailers on site• Mud logging should be equipped to show gas breakdown NOT just total gas• Take GEO-Jar rock/gas samples at regular (5 m) intervals• Be prepared to take gas samples if flaring to pit required
  • 17. Continuous Coring Rigs Beneficial• Werner Hatch # 1 spudded by Deer Lake Oil & Gas February 2010 into target Rocky Brook Fm using a Longyear Hydro 44 rig• Continuous cored ( 2.5 inch core) from 328 feet to 1460 feet• Continuous core allowed exhaustive depositional facies study and repeated analysis of TOC, Ro , TRA etc ; also resulted in High Quality Triple Combo Logs• Drilled 1443 feet of alternating organically rich shales (~60%) and lean turbiditic silts (~40%) ( ~ 4 to 6 foot cycles )• Shale Sections : TOC 1.0 to 8.6 % ; HI 385 to 571; Porosity 6.9 to 18% ; Oil Saturation 7 to 70%; Gas Saturation 7.7 to 23.6% ; Dolomite 18 to 36%• Ro 0.73 to 0.90% - oil window for Type I lacustrine material is 0.6 to 1.1%• Significantly smaller footprint; low volume closed system drill water• Horizontal Continuous coring available
  • 18. Thermal Maturity Profile for Werner Hatch # 1(Wet gas / Condensate Window at 2000 to 3000 feet) Source: Nov 2010 Report to Deer Lake Oil & Gas by Dr. P.K. Mukhopodhyay (Muki) Global Geoenergy Research Ltd
  • 19. Thermal Zone Prognosis in the Rocky Brook Formation at Admiral Rise #1 location : example of a stacked Unconventional / Conventional Target Admirals Rise # 1 Top of Rocky Brook 650 feet 1000 Feet Start of Oil Window 1350 Feet Base of the Main Oil Window Rocky Brook 1350 to 2000 Feet & Top of North Brook Wet Gas / Condensate Window Conventional 2000 to 3000 Feet Target atDry Gas 3280 feetWindow 3000 feet +
  • 20. The World Wide Context• Shale Gas is key in fight against Climate Change• The Shale Gas and Shale Oil resource base is enormous and widespread on a world wide basis• China has perhaps the largest shale gas / shale oil endowment in the world• LNG technology is expanding rapidly in its applications and is scalable
  • 21. A True Paradigm Shift• Shale gas and Shale oil are “fossil solar energy” trapped as organically rich strata within their original burial formation – and relatively little has escaped !• Since the beginning of the modern petroleum industry 150 years ago, we have been hunting for little more than the “fumes” coming off the “Gas Tank”.• Now , thanks to the engineers, we have the keys to the “Gas Tank”.
  • 22. Qne in the Total Hydrocarbon Triangle The triangle represents the total volume of hydrocarbons generated by a given shale unitQne* – Quantity of CONVENTIONAL OIL/GASgenerated Oil / Gas TIGHT but commercial if fracednot expelled DEADEND non commercial– will vary based onlocal thermal maturity ? up to 90% ?and other factors of all The Biggest Part by Far Oil / Gas generated is left in the shale * The term Qne is adapted from Wallace & Roen (1989) USGS Open File 89-488 as referenced in L. Wickstrom et al ( Ohio Geological Survey) presentation to the Ohio Oil & Gas Association on March 3, 2011
  • 23. Assessing the Recoverable Shale Resource• Conventional “Play Type / Monte Carlo “ methods found inadequate• 2 Key Recent United States Geological Survey ( USGS) papers• Eoff, J.D., Global prediction of continuous hydrocarbon accumulations in self-sourced reservoirs: USGS Open-File Report 2012–1091• Crovelli , R.A ( revised by Chapertier,R.R.) Analytic Resource Assessment Method for Continuous (unconventional) Oil and Gas Accumulations – the “ACCESS” Method: USGS Open-File Report 2012- 1146
  • 24. How Widespread are Organically Rich Shales ?• Organic rich shales are some of the most commonly occurring rocks in the world• They occur in every petroleum producing region in the world large or small PLUS many others with no commercial production• This includes some regions which are currently major oil and gas importers ; for instance China, USA, India, and to a lesser extent Europe
  • 25. The “Standard” USA Approach Will Not Work in China• US Shale Plays nearly all based on marine shales• In many parts of the USA a large data base of seismic and drilling results was already available from conventional exploration• A decentralized Land Ownership and Corporate Structure allowed a highly focused, fast moving “cookie cutter” approach to develop
  • 26. A Possible Approach for China ?• Build on China’s current expertise in rift / lacustrine basins• Review all key data, basin by basin, with the peculiar character of lacustrine shale oil /shale gas in mind• Where possible, use continuous coring techniques instead of rotary especially in the first rounds of investigations• Obtain extensive basin specific data with lower cost “mini- fracs” in small diameter vertical wells prior to major horizontal well programs• Be prepared to try a variety of frac fluids besides water – if the resource is there, just keep trying till something works
  • 27. Final Thoughts• Fracture Enhanced Hydrocarbon production is revolutionizing energy supply worldwide – the amount of new energy being made available will easily be several times larger than all conventional oil & gas reserves• Largely because of shale gas and shale oil, the United States will not need to import oil and gas ( Canada excepted) by 2020 -2025.• China has the resource base and technological ability to achieve a similar quantum leap in shale gas / shale oil production• The “rift/lacustrine” nature of much of China’s shale resource base requires some adaption of US techniques but China’s rift / lacustrine basins have a superior volumetric character• China has strong “climate change” reasons for increasing shale gas as part of its electrical generation mix
  • 28. 谢谢您的关注希望我们的商谈融洽 最友好的问候 无限商机尽在鹿湖 请访问:www.lucaresources.ca

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