First Order Exploration<br />A technological  basis for the direct detection of oil and gas fields using Direct Hydrocarbo...
Oil and Gas Exploration Technology Overview<br />Confidential <br />2<br />First Order Exploration, LLC<br />
Oil and Gas Exploration – a direct approach<br />The General Question:		 <br />Before drilling, -can oil and gas be detect...
Direct Hydrocarbon Indicators<br />DHIs are a collection of technologies that moredirectly measure the existence, depth an...
Oil and Gas Exploration Tools<br />Traditional<br />ElectroMagnetic<br />New Physics<br />Well dataSeismic dataGravity (tr...
Direct detection of hydrocarbons is secondary or tertiary function of the data.
primary use of seismic is to measure structure and changes in velocity of the rock section. </li></ul>Electromagnetic   Ps...
computing power has enhanced the ability of these technologies over the last 10 years</li></ul>New Physics Ps>65% (when in...
greatly enhanced EM tools or “New Science” Technologies  like Hydrocarbon Density and Nano-Technologies</li></ul>Confident...
First Order Exploration Model (FOEM)Workflow Scenarios<br />Ideal – DHI driven exploration (built internally)Aerial DHI ->...
FOEM vs Traditional WorkflowProbability  and Prospect Population Comparison<br />FOEM<br />FOEM<br />DHI<br />FOEM<br />FO...
FOEM vs Traditional WorkflowProspect Economics<br />FOEM<br />FOEM<br />Confidential <br />8<br />First Order Exploration,...
Sidebar – Current Upstream Risk AnalysisUnconventional is now Conventional: Resource Plays <br />Upstream capital expendit...
Sidebar - Current Upstream Risk AnalysisFOEM affects on Conventional Exploration<br /><ul><li>The FOEM is designed to merg...
significantly reduce upfront capital costs of science and land budgets
significantly increase conventional exploration success
Ps increased from 15% to 75%
Focus on projects that produce from high quality reservoirs
negate the need for extremely expensive completions thus reducing operating costs</li></ul>Return on Investment should alw...
Confidential<br />11<br />The Problem With Unconventional Plays – Many Are Uneconomic at Today’s Prices – 15% Target ROI –...
DHI  Area Technologies<br />Confidential <br />12<br />First Order Exploration, LLC<br />
Direct Hydrocarbon Indicators Area Tools<br />DHI Area tools solve 2 of the 3 dimensions necessary to find oil and gas. <b...
The REDOX CellOil and gas fields produce measurable electrical currents<br />The REDOX cell is simply the observation that...
RIT,RECON, RP, ESFT (direct)<br />EL,TOP, VEG, DC <br />IP<br />MM<br />DHIs<br />Confidential <br />15<br />First Order E...
REDOX CellEvidence of environmental changes above oil and gas fields<br />Lower Eh and higher Ph occur above the oil and g...
REDOX Cell Evidence of anomalous Pyrite concentration above oil and gas fields<br />Epigenetic pyrite concentration in a w...
REDOX Cell Evidence of anomalous Pyrite concentration above oil and gas fields<br />Epigenetic pyrite concentration in wel...
REDOX CellEvidence of Induced Polarization signal above an oil field.  <br />Oil Well<br />Dry Hole<br />Oil Productive<br...
REDOX Cell Evidence of Reduced Iron anomalies above an oil and gas field<br />Productive<br />Nonproductive<br />Productiv...
Area DHI Statistics REDOX cell related<br />IP – perhaps the best documented track record of 90% Ps internationally<br />M...
Area DHI Statistics Non-REDOX cell related sources<br />AEM–cited 86% Ps in Texas by a major. 75% correct in parts of East...
Area DHI Examples<br />Russia - IP<br />George West Field -  MM<br />Thunder Horse Fields - Offshore deep water - MM<br />...
Area DHIsREDOX Cell Related Examples<br />DHIs directly measure the REDOX current or manifestations of the current. <br />...
Area DHIMM<br />Thunder Horse and <br />Thunder Horse North Oil Fields<br />Bob West Field  >1 TCF<br />Bob West Field sho...
   1                         2                      3<br />Area DHIIP<br />NE<br />SW<br />anomalous<br />1 – productive, ...
Area DHIIP<br />Severo-Guljajevskaya oil and gas field (Barents Sea, Northern RF)<br />Confidential <br />27<br />First Or...
West Texas example of <br />IP survey correlating perfectly <br />to production. Surveyed in 1982<br />with 6 wells in fie...
Area DHIIP<br />1983 Surveys by Zonge Engineering.<br />Since 1998, Russian companies have been 90 % successful with simil...
Area DHIEL (Radiometrics)<br />1971 Sun Oil Co. Radiometric Survey in South Florida Sunniland Trend. <br />Pre-drill predi...
HDT  Technologies<br />HDTs supposedly measure hydrocarbons directly at the reservoir level although that level is not kno...
Area DHIHDT (Hydrocarbon Density Technology)<br />Top of CVL Structure map<br />From 3D seismic<br />Surface HDT Survey<br...
HDT Example 2Deep Bossier of East Texas Basin<br />Post-drill example of HDT signal over 2 different pressure environments...
Atmospheric  Area DHI Tool – AEM<br />The atmospheric tool measures some an EM manifestation of the oil and gas signal in ...
Area DHIAEM<br />Wasson Field Waterflood, West Texas<br />Colorado State Line Trend<br />Camp Cooley #2. East Texas<br />C...
Area DHIAEM<br />Dew Field. East Texas<br />Expanded Bossier, East Texas BasinTurbidites at 13,000’, Gas<br />Outline of E...
Area ToolAEM<br />George Savell/Amoruso Fields, East Texas Basin<br />Deep Geopressured Bossier<br /><ul><li>2TCF
14-16,000’ deep</li></ul>Good Production <br />2-5 BCF/well<br />Great Production <br />10-30  BCF/well<br />Confidential ...
Multiple Area DHI Example<br />The Camp Cooley #2R well was drilled in 1998 by Broughton Operating Corp.  This is a world ...
Multiple Area DHIsEL, GMT, HDT, AEM<br />HDT survey.  Warm colors productive. Cool colors – depleted or nonproductive. Wel...
Vertical DHI Tools<br />After the potentially productive area is identified with the Area DHIs, depth – the third dimensio...
Direct Hydrocarbon IndicatorsVertical Tools<br />Vertical tools solve for the last dimension – Depth.<br />Vertical signal...
Direct Hydrocarbon IndicatorsVertical Tools<br />Resolves the object of the search – HCs in reservoirs. <br />Accurate dep...
Vertical DHI Statistics <br />EMT– Ps 80% from technology database, First Order’s primary vertical DHI tool <br />EA -  ne...
Vertical DHI ExamplesEMT<br />Deep Gas - CVL Reef - CHK 1 Boswell<br />Deep Gas - Bossier – ENCANA 1 Dodd<br />Shallow Oil...
Vertical DHI Examples<br />Confidential <br />45<br />First Order Exploration, LLC<br />
Vertical DHIEMT – Boswell #1<br />Relative <br />Porosity<br />Top of Reef<br />EMT log on right side indicates porosity a...
Vertical DHIEMT<br />Relative <br />Porosity<br />Encana 1 Dodds. Deep Bossier well in Amoruso Field. Initially produced m...
Vertical DHIEMT<br />Confidential <br />48<br />First Order Exploration, LLC<br />
Upcoming SlideShare
Loading in...5
×

First Order Dhi Presentation 7 11

969

Published on

A description of various tools and methods to mitigate exploration risk

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
969
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Get Russia figure of Eh and Ph measurements.Get Figures of Fe measurements and FeS measurments
  • First Order Dhi Presentation 7 11

    1. 1. First Order Exploration<br />A technological basis for the direct detection of oil and gas fields using Direct Hydrocarbon Indicators (DHIs)<br />Investigative data sets are ordered according to their proximity to the object of the search. <br />The lowest order data sets are most predictive.<br />Confidential <br />1<br />
    2. 2. Oil and Gas Exploration Technology Overview<br />Confidential <br />2<br />First Order Exploration, LLC<br />
    3. 3. Oil and Gas Exploration – a direct approach<br />The General Question: <br />Before drilling, -can oil and gas be detected and explored for directly? <br />The First Order Hypothesis:<br />Direct Hydrocarbon Indicators (DHIs) can find Oil and Gas more directly and more efficiently than industry standard technologies.<br />The Industry Hypothesis:<br />Gas can be found directly through AVO and related analyses in younger sediments. The probability of success (Ps) for commercial production is less than 25% for wildcat wells. <br />HC liquids (oil) cannot be discerned at all with industry acoustic tools. <br />Industry exploration technology is mostly based on acoustic (seismic) methods. EM technologies have started to penetrate that market. <br />Confidential <br />3<br />First Order Exploration, LLC<br />
    4. 4. Direct Hydrocarbon Indicators<br />DHIs are a collection of technologies that moredirectly measure the existence, depth and thickness and/or volume of hydrocarbons in the subsurface from the surface of the earth prior to drilling. <br />We categorize technologies into three groups:<br />Traditional<br />ElectroMagnetic<br />New Physics<br />Confidential <br />4<br />First Order Exploration, LLC<br />
    5. 5. Oil and Gas Exploration Tools<br />Traditional<br />ElectroMagnetic<br />New Physics<br />Well dataSeismic dataGravity (trad)Aeromagnetics (trad)CreekologyGeochem (trad)<br />Enhanced EMT Advanced active and passive EM (IP) R3M? (Exxon)Hydrocarbon Density technologiesNano-Technologies<br />RMMMMTAEMEMTR3M? (Exxon)<br />TraditionalPs<25%<br /><ul><li>tools are not designed to measure hydrocarbons in place (seismic + geology).
    6. 6. Direct detection of hydrocarbons is secondary or tertiary function of the data.
    7. 7. primary use of seismic is to measure structure and changes in velocity of the rock section. </li></ul>Electromagnetic Ps<30-40%<br /><ul><li>tools more directly measuring the object of the search – hydrocarbons.
    8. 8. computing power has enhanced the ability of these technologies over the last 10 years</li></ul>New Physics Ps>65% (when integrated via the First Order Exploration Model)<br /><ul><li>“next generation” tools that can increase Ps to 75% for wildcats.
    9. 9. greatly enhanced EM tools or “New Science” Technologies like Hydrocarbon Density and Nano-Technologies</li></ul>Confidential <br />5<br />First Order Exploration, LLC<br />
    10. 10. First Order Exploration Model (FOEM)Workflow Scenarios<br />Ideal – DHI driven exploration (built internally)Aerial DHI -> Area DHI -> Geology and/or Seismic -> Vertical DHI -> Drill<br />Own 3D seismic without prospects built (built internally with our own or other 3D data ownership) Aerial DHI -> Area DHI -> Seismic and/orGeology -> Vertical DHI -> Drill <br />Prospect/Project Already Built Traditionally with Geology and Seismic(First Order could evaluate and risk other company prospects and properties – a very efficient use of capital and time)Area DHI -> Vertical DHI -> Drill OR Vertical DHI -> Drill<br />IndustrySeismic -> Geology -> Drill OR Geology ->Seismic -> Drill <br />The FOEM reduces risk significantly early in the exploration or development processes. This will significantly reduce capital expenditures, prospect life-cycle, increase Ps and Return on Investment.<br />Confidential <br />6<br />First Order Exploration, LLC<br />
    11. 11. FOEM vs Traditional WorkflowProbability and Prospect Population Comparison<br />FOEM<br />FOEM<br />DHI<br />FOEM<br />FOEM<br />FOEM<br />Knowing<br />Traditional<br />Hunch<br />Confidential <br />7<br />First Order Exploration, LLC<br />
    12. 12. FOEM vs Traditional WorkflowProspect Economics<br />FOEM<br />FOEM<br />Confidential <br />8<br />First Order Exploration, LLC<br />
    13. 13. Sidebar – Current Upstream Risk AnalysisUnconventional is now Conventional: Resource Plays <br />Upstream capital expenditures are guided by apparent risk profileof each project.<br />Industry is willing to pay an EXTREME PREMIUM in upfront costs to reduce risk in “Resource Plays”<br />Resource plays extract reserves from very low permeability host rocks. Reservoir is created through expensive massive fracturing operations. <br />In 2010, resource plays dominated exploration budgets at the expense of conventional exploration. Money has flowed here because of apparent lower risk profile (but with lower reward as well). <br />Industry is willing to pay >$10,000/acre for mineral rights in resource plays vs. $250/acre in conventional plays. Shale plays require massive land positions. Example of one spacing unit of 160 ac = $1,600,000 just in land costs<br />Resource plays still have risk – especially at the outset (Tuscaloosa Marine Shale – a bust) and after a play has produced awhile. Average EURs are usually lower than press releases. Risked ROI probably < 3:1.<br />Confidential <br />9<br />First Order Exploration, LLC<br />
    14. 14. Sidebar - Current Upstream Risk AnalysisFOEM affects on Conventional Exploration<br /><ul><li>The FOEM is designed to merge all technologies in order to minimize capital risk in all phases of the exploration process.
    15. 15. significantly reduce upfront capital costs of science and land budgets
    16. 16. significantly increase conventional exploration success
    17. 17. Ps increased from 15% to 75%
    18. 18. Focus on projects that produce from high quality reservoirs
    19. 19. negate the need for extremely expensive completions thus reducing operating costs</li></ul>Return on Investment should always exceed >3:1 in a program driven by DHIs and the FOEM (and perhaps much greater).<br />Confidential <br />10<br />First Order Exploration, LLC<br />
    20. 20. Confidential<br />11<br />The Problem With Unconventional Plays – Many Are Uneconomic at Today’s Prices – 15% Target ROI – Credit Suisse Analysis<br />Current NYMEX – HH 1/26/11<br />First Order Exploration, LLC<br />
    21. 21. DHI Area Technologies<br />Confidential <br />12<br />First Order Exploration, LLC<br />
    22. 22. Direct Hydrocarbon Indicators Area Tools<br />DHI Area tools solve 2 of the 3 dimensions necessary to find oil and gas. <br />The area tool finds the surface or near surface evidence that an oil or gas field is at some depth below this indicator. Historically, “geochem” was used for this purpose where HCs are measured in the soil. This technique was proven to be undependable for prospects because of HC movement and soil residence of HCs is not predictable. <br />Other more robust indicators have emerged through the years. Most are related to the “REDOX Cell” first published by Pirson in 1981. Tompkins further refined Pirson’s work in 1990 and 1993. These technologies measure the effects of the existence of a REDOX cell vertically above an oil or gas field or measure the current directly. <br />Other Area tools unrelated to the REDOX cell have been used successfully but are less well understood such as technologies with Hydrocarbon Density, micro-gravity based technologies, nano-technologies and certain bizarre Russian technologies. These are intriguing and will take more work to fully understand. <br />Confidential <br />13<br />First Order Exploration, LLC<br />
    23. 23. The REDOX CellOil and gas fields produce measurable electrical currents<br />The REDOX cell is simply the observation that above oil and gas fields there is a zone of increased negative charge (-Eh).<br />The driving force for the zone of –Eh has been postulated as either themigration of HCs vertically from the field OR the existence of an electrical current originating from the oil/gas field flowing vertically to the surface of the earth. <br /> The manifestations of the REDOX cell are many. Most support the latter electrical theory.Additionally, this electrical current phenomena has been measured directly.<br />This electrical current is measureable and has vector attributes that point in the oil field direction <br />High and low frequencies have been measured (RIT, RECON and RP)<br />Electrical current lowers Eh and Ph in the volume of rock above accumulations<br />Russian investigators have measured Eh and Ph changes directly <br />Effects seen above fields as anomalously bright seismic reflectors within the “diagenetic chimney”<br />The current flow causes anomalous accumulation of reduced states of iron oxidesandiron sulfidesfrom the near surface to 3000’ in depth that have been measured in cuttings<br />The Electrical Signal and derivative signatures are unique to Oil and Gas fields– a form of direct detection<br />Many of the Area tool indicators have tremendous track records. DNME (IP) is 90% predictive in over 150 examples.<br />Confidential <br />14<br />First Order Exploration, LLC<br />
    24. 24. RIT,RECON, RP, ESFT (direct)<br />EL,TOP, VEG, DC <br />IP<br />MM<br />DHIs<br />Confidential <br />15<br />First Order Exploration, LLC<br />
    25. 25. REDOX CellEvidence of environmental changes above oil and gas fields<br />Lower Eh and higher Ph occur above the oil and gas fields <br />Confidential <br />16<br />First Order Exploration, LLC<br />
    26. 26. REDOX Cell Evidence of anomalous Pyrite concentration above oil and gas fields<br />Epigenetic pyrite concentration in a well drilled in Russia<br />Maximum pyrite concentrations <br />occur at depths 175-875 m<br />Confidential <br />17<br />First Order Exploration, LLC<br />
    27. 27. REDOX Cell Evidence of anomalous Pyrite concentration above oil and gas fields<br />Epigenetic pyrite concentration in wells drilled in some fields in China. Each color is a different well. <br />Anomalous above producing wells<br />Pyrite concentration<br />depth, m<br />Confidential <br />18<br />First Order Exploration, LLC<br />
    28. 28. REDOX CellEvidence of Induced Polarization signal above an oil field. <br />Oil Well<br />Dry Hole<br />Oil Productive<br />Confidential <br />19<br />First Order Exploration, LLC<br />
    29. 29. REDOX Cell Evidence of Reduced Iron anomalies above an oil and gas field<br />Productive<br />Nonproductive<br />Productive<br />Productive<br />Nonproductive<br />Confidential <br />20<br />First Order Exploration, LLC<br />
    30. 30. Area DHI Statistics REDOX cell related<br />IP – perhaps the best documented track record of 90% Ps internationally<br />MM – magnetic technique that boasts a 88% Ps in South Texas<br />RIT, RECON – fewer examples. An emerging technology.<br />EL – elemental anomalies in soils. Old technologies are inconsistent. Newer technologies may be more robust!<br />IP – documented 90% success<br />ES – cite high success rates<br />Confidential <br />21<br />First Order Exploration, LLC<br />
    31. 31. Area DHI Statistics Non-REDOX cell related sources<br />AEM–cited 86% Ps in Texas by a major. 75% correct in parts of East Texas Basin. First Order monitored.<br />HDT– Ps 85% from First Order examples. First Order monitored<br />BIO– Hydrocarbon eating microbes. They cite high success rates<br />NT- Nano-Technologies - cite high success rates<br />Confidential <br />22<br />First Order Exploration, LLC<br />
    32. 32. Area DHI Examples<br />Russia - IP<br />George West Field - MM<br />Thunder Horse Fields - Offshore deep water - MM<br />Florida – EL<br />Boswell - HDT<br />Camp Cooley - AEM+ HDT+ GMT + EL+ RIT<br />Wasson Field – secondary recovery – AEM<br />Colorado State Line Trend – AEM<br />Confidential <br />23<br />First Order Exploration, LLC<br />
    33. 33. Area DHIsREDOX Cell Related Examples<br />DHIs directly measure the REDOX current or manifestations of the current. <br />Confidential <br />24<br />First Order Exploration, LLC<br />
    34. 34. Area DHIMM<br />Thunder Horse and <br />Thunder Horse North Oil Fields<br />Bob West Field >1 TCF<br />Bob West Field showing wells drilled from 1986 to 1997. MM survey recorded in 1986. Field discovered in 1990 > 1 TCF in South Texas. <br />Offshore under more than 6000’ of water.<br />Confidential <br />25<br />First Order Exploration, LLC<br />
    35. 35. 1 2 3<br />Area DHIIP<br />NE<br />SW<br />anomalous<br />1 – productive, highflowrate<br />2 – productive, lower flow rate <br />3 – non-productive<br />IP surveys identify areas of anomalous pyrite accumulated within the first 3000’ in the subsurface. The IP anomalies are almost always associated with commercial oil or gas production. The excess pyrite deposition is caused by the REDOX cell currents. <br />Confidential <br />26<br />First Order Exploration, LLC<br />
    36. 36. Area DHIIP<br />Severo-Guljajevskaya oil and gas field (Barents Sea, Northern RF)<br />Confidential <br />27<br />First Order Exploration, LLC<br />
    37. 37. West Texas example of <br />IP survey correlating perfectly <br />to production. Surveyed in 1982<br />with 6 wells in field. The rest of <br />the field was perfectly delineated.<br />Confidential <br />28<br />First Order Exploration, LLC<br />Area DHIIP<br />
    38. 38. Area DHIIP<br />1983 Surveys by Zonge Engineering.<br />Since 1998, Russian companies have been 90 % successful with similar technologies. Note that two measurements are made here – the IP measurement hachured and the “deep anomaly” in red and orange. <br />Production<br />Confidential <br />29<br />First Order Exploration, LLC<br />
    39. 39. Area DHIEL (Radiometrics)<br />1971 Sun Oil Co. Radiometric Survey in South Florida Sunniland Trend. <br />Pre-drill predictions were 73% correct. Size of blue circle is relative to cumulative production for each well. <br />Note potential undrilled prospects although map published in 1971. Clearly, this area is profoundly underexplored. Therefore, there are more exploration models to use in the area. It also means that DHIs are perfectly suited for this kind of area.<br />More than 100 MMBOE have been produced from the Sunniland Trend. USGS (1995) estimates an additional 370 MMBOE remains to be found in South Florida. <br />Post-drill successful predictions<br />Pre-drill successful predictions<br />Prospect<br />Prospect<br />Prospect<br />Prospect<br />Corkscrew <br />Prospect<br />Confidential <br />30<br />First Order Exploration, LLC<br />
    40. 40. HDT Technologies<br />HDTs supposedly measure hydrocarbons directly at the reservoir level although that level is not known. HDT has been very successful in producing areas. <br />Confidential <br />31<br />First Order Exploration, LLC<br />
    41. 41. Area DHIHDT (Hydrocarbon Density Technology)<br />Top of CVL Structure map<br />From 3D seismic<br />Surface HDT Survey<br />BHL<br />HDT Anomaly <br />confirmed structure<br />Chesapeake 1 Boswell gas well. Participation based entirely on HDT tool. Well started at 15 MMCFG/d. Chesapeake later provided 3D information that the HDT confirmed.<br />The HDT perfectly predicted the success of this deep Cotton Valley Reef well in 2008.<br />Confidential <br />32<br />First Order Exploration, LLC<br />
    42. 42. HDT Example 2Deep Bossier of East Texas Basin<br />Post-drill example of HDT signal over 2 different pressure environments of the same reservoir. Survey was taken shortly after production began. The data shows a prolific signal (red) where there is prolific production, a good signal where there is good production (orange) and a null signal where there is no production. <br />Burlington 1 Smith<br />27 BCF 6 yrs<br />Burlington 1 Savell<br />3.5 BCF in 4.7 yrs<br />Confidential <br />33<br />First Order Exploration, LLC<br />
    43. 43. Atmospheric Area DHI Tool – AEM<br />The atmospheric tool measures some an EM manifestation of the oil and gas signal in the air above the field. It is postulated that the atmospheric effect is caused by live migrating hydrocarbons or perhaps CO2 that is given off by bacteria eating hydrocarbons . Alternatively, it may also be caused by the REDOX cell discharging and is another truly EM effect.<br />Confidential <br />34<br />First Order Exploration, LLC<br />
    44. 44. Area DHIAEM<br />Wasson Field Waterflood, West Texas<br />Colorado State Line Trend<br />Camp Cooley #2. East Texas<br />Confidential <br />35<br />First Order Exploration, LLC<br />
    45. 45. Area DHIAEM<br />Dew Field. East Texas<br />Expanded Bossier, East Texas BasinTurbidites at 13,000’, Gas<br />Outline of Expanded Bossier turbidite cut-and-fill mini-basinfilled with up to 120’ of sand.Note clear shape match (boot) of seismic and AEM in the south. Sands have 15-20% porosity, >5 md,and 10,000# BHSIP.<br />Area of poor Bossierwells - <1 BCF – showno leakage to the surface.<br />APC 4 Stephens cored entire sand at the edge of the turbidite<br />APC 3 Blair tested50 MMCFGPD and made 1 BCF first month of production<br />AEM data shot in 1995 as partof the Cotton Valley Reef Program.This was an area outside the areaof interest and therefore was notshot in detail with redundancy.In spite of that, the best wellsin the Bossier lie with the AEMand the poor Bossier wells arenot! Note poor Bossier wells withinAEM indicate other horizonsare prospective.<br />Bubble map of Production (blue) and “Practical IP” from Drillinginfo.com. Note bubbles are not exactly proportional with the lower value bubbles being too large.<br />Confidential <br />36<br />First Order Exploration, LLC<br />
    46. 46. Area ToolAEM<br />George Savell/Amoruso Fields, East Texas Basin<br />Deep Geopressured Bossier<br /><ul><li>2TCF
    47. 47. 14-16,000’ deep</li></ul>Good Production <br />2-5 BCF/well<br />Great Production <br />10-30 BCF/well<br />Confidential <br />37<br />First Order Exploration, LLC<br />
    48. 48. Multiple Area DHI Example<br />The Camp Cooley #2R well was drilled in 1998 by Broughton Operating Corp. This is a world class gas well that produces from a Cotton Valley reef at 14,800 feet. This well was used as a test bed for many of the technologies that were tested. It is clear that good reservoirs will have a clear signal at the surface of the earth directly above the reservoir.<br />Confidential <br />38<br />First Order Exploration, LLC<br />
    49. 49. Multiple Area DHIsEL, GMT, HDT, AEM<br />HDT survey. Warm colors productive. Cool colors – depleted or nonproductive. Well had produced 30 BCF already when survey taken. Data shows depletion except for NW corner. New well there had higher pressures.<br />BIO survey. Anomalous values in large circles. <br />AEM. Well had already produced 11 BCF. Note depleted signal in center around BHL. Bright colors indicate seepage. Contours from 3D seismic CVL.<br />Enzyme Leach Multivariate Analysis<br />EL Survey. Mobile Cations and Anions above 45 BCF Cotton Valley Reef in East Texas Basin. Top of production at 14,800’. Reef is 400’ tall. Outline of reef from 3D in red. Multivariate analysis “clouded” the data into a “hydrocarbon” factor. <br />Confidential <br />39<br />First Order Exploration, LLC<br />
    50. 50. Vertical DHI Tools<br />After the potentially productive area is identified with the Area DHIs, depth – the third dimension - needs to be quantified. There are far fewer vertical tools available compared to the area DHIs. These data define the prospect’s geology – depth, relative reservoir quality, thickness, trapping mechanism and, finally, an estimate of reserves can be approximated when combined with local production data. <br />Confidential <br />40<br />First Order Exploration, LLC<br />
    51. 51. Direct Hydrocarbon IndicatorsVertical Tools<br />Vertical tools solve for the last dimension – Depth.<br />Vertical signal not linked to horizontal signal - yet.<br />Vertical DHIs all rely on the 80:1 ratio of the resistivity difference between the oil filled reservoir vs. the brine filled reservoir. This high S/N in the resistivity of the sediments affects EM signals distinctly. <br />With proper correlation to wells with high quality reservoirs – productive and non-productive - predictive results are common. <br />The time-tested EMT method for vertical HC identification is driven by natural energy sources. <br />Confidential <br />41<br />First Order Exploration, LLC<br />
    52. 52. Direct Hydrocarbon IndicatorsVertical Tools<br />Resolves the object of the search – HCs in reservoirs. <br />Accurate depth, relative porosity and fluid identification have been predicted from 800’ to 16,500’. <br />DHI methods are much lower cost than seismic<br />There are newer, less-developed technologies that have great potential that do use manmade energy sources. <br />Potential seen in using common industry seismic equipment and setup with new seismic based fluids resolving technology.<br />A near-perfect correlation of area and vertical tools is the desired results.<br />The First OrderExploration Model combines the Area and Vertical DHIs with the traditional seismic and geological datasets. <br />Confidential <br />42<br />First Order Exploration, LLC<br />
    53. 53. Vertical DHI Statistics <br />EMT– Ps 80% from technology database, First Order’s primary vertical DHI tool <br />EA - new tool with great potential<br />RP – new tool with great potential<br />Confidential <br />43<br />First Order Exploration, LLC<br />
    54. 54. Vertical DHI ExamplesEMT<br />Deep Gas - CVL Reef - CHK 1 Boswell<br />Deep Gas - Bossier – ENCANA 1 Dodd<br />Shallow Oil - Woodbine – Diasu 1 Cadenhead<br />Shallow Gas - Cook Mtn<br />Shallow Oil - Tannehill<br />Confidential <br />44<br />First Order Exploration, LLC<br />
    55. 55. Vertical DHI Examples<br />Confidential <br />45<br />First Order Exploration, LLC<br />
    56. 56. Vertical DHIEMT – Boswell #1<br />Relative <br />Porosity<br />Top of Reef<br />EMT log on right side indicates porosity and hydrocarbons. Green fill is low porosity. Mudlog on left. Note correlation of low porosity to slow drilling zones. Top of reef was control drilled due to pressure control problems. Initial production was 15 MMCFG/d. <br />EMT data collected before reef was drilled.<br />HC<br />Base of Reef<br />Mix<br />Wet<br />Fluids<br />Confidential <br />46<br />First Order Exploration, LLC<br />
    57. 57. Vertical DHIEMT<br />Relative <br />Porosity<br />Encana 1 Dodds. Deep Bossier well in Amoruso Field. Initially produced more than 20 MMCFG/d. Well log obtained after EMT work completed. <br />HC<br />Fluids<br />Confidential <br />47<br />First Order Exploration, LLC<br />
    58. 58. Vertical DHIEMT<br />Confidential <br />48<br />First Order Exploration, LLC<br />
    59. 59. Vertical DHIEMT<br />Confidential <br />49<br />First Order Exploration, LLC<br />
    60. 60. Vertical DHIEMT<br />Confidential <br />50<br />First Order Exploration, LLC<br />
    61. 61. Vertical DHIEMT – Dry Hole<br />Confidential <br />51<br />First Order Exploration, LLC<br />
    62. 62. Vertical DHIEMT – Suspended Hole with Shows<br />EMT Profile<br />Mudlog<br />Gas<br />Penn shale<br />Remarkable correlation of EMT shows to shows in wildcat well. <br /> Shale Gas, Tight but fractured lime, Barnett Shale, Mississippian Dolomite porous zone<br />4 Shows predicted – 4 shows indicated on drilling<br />Marble Falls LS<br />Barnett Shale<br />Miss Dol<br />Confidential <br />52<br />First Order Exploration, LLC<br />
    63. 63. Vertical DHIRP<br />CHK 1 Boswell – CV Reef<br />Relative Resistivity Profile<br />Gas charged CV Reef<br />Bossier Gas Sand<br />Well log<br />Confidential <br />53<br />First Order Exploration, LLC<br />
    64. 64. First Order Exploration Model Prospect Examples<br />KDS Prospect<br />CHK 1 Boswell<br />IA Technology (Russia)<br />Confidential <br />54<br />First Order Exploration, LLC<br />
    65. 65. FOEM Prospect Example KDS Prospect - EMT + EAT + Seismic<br />EAT<br />Confidential <br />55<br />First Order Exploration, LLC<br />
    66. 66. FOEM Prospect ExampleKDS Prospect – EMT + HDT + Seismic<br />HDT in color fills.<br />Pink is productive<br />Structure contours built from <br />EMT data. -7260 is G/W contact.<br />Blue diamonds are wet reservoir.<br />Red Diamonds are productive.<br />Pink is tight reservoir..<br />Confidential <br />56<br />First Order Exploration, LLC<br />
    67. 67. FOEM Prospect ExampleEMT + HDT + RP + 3D Seismic<br />HDT Anomaly<br />Confidential <br />57<br />First Order Exploration, LLC<br />
    68. 68. Integration TechnologyIP + EM + Seismic<br />The calculation of integrated seismic and EM attribute (IA) by interval velocity and resistance values. The attribute reacts to change of rock fluid saturation<br />IA-integrated attribute<br />V-interval velocity (seismic output data)<br />R- resistance (EM output data)<br />L-logging data<br />V,m/s<br />Water saturated layer<br />IA<1<br />R,Ohm•m<br />IA<br />IA>1<br />Oil-saturated layer<br />Integrated Attribute IA= F(V, R, L)<br />Confidential <br />58<br />First Order Exploration, LLC<br />
    69. 69. Conclusions<br />Fundamental observations indicate that both area and vertical DHIs are REAL and can mitigate exploration risk from every aspect of the process – land to drilling.<br />First Order has investigated and used many of the available direct detection tools on the market<br />First Order probably has perhaps the best understanding of how these tools work and where the may not work. <br />First Order can design an economically phased program to evaluate large acreage blocks down to site specific prospects using the tools that are appropriate for the project<br />Confidential <br />59<br />First Order Exploration, LLC<br />

    ×