The document provides an introduction to an oil and gas exploration simulation game. Players take on the role of an exploration team with $200 million to discover and develop oil and gas fields. The challenges involve identifying sedimentary basins using surveys, bidding on exploration licenses, acquiring partnerships by farming-in and farming-out license shares, drilling exploration wells using rigs and service providers, and calculating the value of any discovered resources. Players earn knowledge points based on their decisions that can be used to bid on future blocks and funding.

1. Introduction to Exploration

2. PurposeYou are an exploration team in charge of a new petroleum province. Multidisciplinary challenge: Enhance your overall understanding of petroleum exploration and field development.Create a Return on Investment

3. Money/KP’sYou start with $200 millionCreate valueNet value of the oil and gas discovered MINUS all costs involvedKnowledge points awardedSensible decisions and correct answersKPs are a measure of ability and credibilityConsidered when bidding for blocksUse when applying for funds

4. You will learnWhere and how to find hydrocarbons Licensing rounds Farm-in and Partnerships - negotiationsDrilling rigs Sub-contractorsEnvironmental issuesEconomically viable volumesTeam work, Critical decision making, analytical skillsMulti-tasking

5. Oil and Gas Value ChainGasOil

6. Loginwww.oilsim.com

7. Loginwww.oilsim.com

8. Main screen

9. MapColumns e.g C1 to C112 Rows e.g. R1 to R144BlockBlocks are dividedinto 64 smaller cellse g. R52C110

10. First taskChallenge: Find three sedimentary basins Procedure: Buy and study magnetic and gravimetric surveys Submit the coordinates for each centreColumn and row number for each basin centre

11. Gravimetric surveysGravimetric surveys indicate changes in the gravitational pull of the Earth in different areas of the sub-surface.

12. Lower gravitational fields indicates likelihood of low density rocks –Sedimentary rocks, porous and hopefully containing hydrocarbonsSurveys in OilsimSurvey shopGravimetric survey of North-west area

13. Magnetic surveysMagnetic surveys show anomalies in in the expected magnetic field of the Earth in particular areas. Sedimentary rocks in the basins have a lower concentration of magnetic materials and lower magnetic field than the surrounding crystalline rocks.

14. Survey in OilSimMagnetic survey:North-west quadrant

15. Survey in OilSimAll four quadrant surveys in map context

16. Finding the Midpoint

17. Survey analysisLocate edges of the continous basin structureLocate the diagonals and thus basin centre

18. Centre may not be the sameExample:Top basin on both maps Calculate the midpoint between the gravimetric and magnetic centres found= C55 and R105C50R100C60R110

19. Centre Midpoint calculation3 centres – one Centre midpoint for each basinExample: C55, R105Solve before deadline. All submissions are evaluated after the deadline (and not before).You may get 0-100 KPs. All three centres must be located to get full knowledge points.

20. Task 1 solvedMessage in Inbox: Shows resultsAnswers submittedKPs awarded

21. Task 2 license roundThe government has decided to put the blocks in one of the basins on offer.Challenge: Identify the 3 most promising blocks and offer an amount for each of them.Licensing area

22. Task 2 license roundAny restrictions involved?- Spawning groundsWhat are we looking for? - ProspectsWhere do we find prospects? In basins, where hydrocarbons have been 1) are produced and 2) trappedHow do I find them? - Geoscientific analysis2D seismic, Common Risk Segment maps

23. Source and migration2. MIGRATION ROCKwhere hydrocarbons are driven through3. CAP ROCKImpermeable rock that stops migration of hydrocarbons1. SOURCE ROCKwhere organic material is put under sufficient pressure4. PROSPECT

24. TrapsGeological “pockets”, that might contain hydrocarbons.Anticline trap(c) OLFStratigraphic trapSalt dome trapFault trap

25. Environmentally Sensitive areasRed areasYou will not be awarded blocks that contain any red spots (spawning grounds)Blue areasBlocks in area may be awarded

26. Common Risk SegmentCRS. Common Risk Segment surveys tell you about the probability of a structure in the block/cell containing oil or gasSurfaceLayer 3 Eocene1500m below the seabedLayer 2 Paleocene2500m below the seabedLayer 1 Cretaceous3500m below the seabed

27. 2D Seismic surveysTraps can be found with seismic surveys and sound waves bouncing off structures 2D seismic survey is a vertical cross section of the geological layers along either a column or a row

28. Real Seismic

29. OilSim of 2DSeismic UnprocessedProcessedRed is top of the sealing rockGreen is top of the reservoir rockInterpreted

30. Order SeismicWhat type of data do you want?Columns or Rows

31. Unprocessed or processed data

32. Interpreted or notOnly buy maximum of 1 block of data at a time to speed up processing

33. Processing SeismicIt takes time to process your request

34. Created to order

35. Moves to surveys once processedView the SeismicRed circles – navigate through the 2D seismic

36. Yellowsquare – Row 1 from Column 1-56Anticlinal traps

37. Fault trapsLeakage?

38. Leakage?Leakage?

39. Cross-sectionsColumnRowProspect, ReservoirBasin,Source

40. Enter bidsThree blocks

41. Three amounts

42. Min: $1M

43. Max: $30M

44. You will only getawarded one block – and only pay for one

45. Highest bid wins

46. If equal, then team with highest KP winsRecap on Task 2Environmentally sensitive areas – blocks to avoid Common Risk Segment surveys – areas of higher probability of prospects 2D seismic – blocks with most structures Final tip - Check water depth - shallow water blocks

47. Task 2 solvedMessage sent to all Results and KPsOne license per team

48. Task 3 Exploration DrillingThe headquarters of your company has evaluated the license that you were awarded.Although the possibility of finding oil is fair, the costs involved are large. Thus the headquarters want you to spread the risk. Challenge: You shall farm-out minimum 20% from your license – and farm-in as much as you can in other good licenses.

49. Task 3a PartnershipsAcquire 3D Seismic interpretations for the block you operate, and study the results from the licensing roundFarm-out: Get others to invest 20% or more in your license – you can send them surveysFarm-in: Send offers to other teams to buy shares in their viable licenses. Submit an offer for each viable license, with amount offered and share wanted in whole %.

50. Real 3D SeismicShows the subsurface structure in a cube.

51. 3D Seismicin OilSimProspects are no guarantee of oil or gasLayer 3 EoceneLayer 2 PaleoceneLayer 1 Cretaceous

52. PartnershipsSpread the risk: e.g Investing in other blocks divides the risks amongst all partners, much more preferable than keeping 100% of one field and all the risk.Increase probability of profit: investment in only 1 field which could be a dry prospect is possible, whereas the likelihood of investing in 5 fields which are all dry is unlikely.

53. Licences

54. Farm-inEither accept the amount or % the license owner requests, or amend the amounts to your own offer

55. Add a message to the seller

56. Press “Send offer”

57. Minimum of $100000 per %Farm-inWhen a team receives a Farm-In offer to appears under Financing. This is where a team can receive finance or money for a % of their own blocks

58. Farm-inlicense OWNER decides whether to ACCEPT or REJECT the offerPartnerships established every time a license owner accepts an offer.Overview: On the main page, you can see all licenses. 1) licenses you operate, 2) licenses you have invested in, and other licenses.

59. Farm-inAll your farm-in offers to other teams are shown under “Investing” on the right-hand side of the homepage . This is where a team offers investments to other teams for a % of their blocks

60. PartnershipsPartners pay a proportional share of all future costs incurred by the partnershipPartners receive a proportional share of the net proceedings from any oil or gas found on the license. The operator team makes all decisions regarding acquiring 3D seismics, drilling of wells and testing of wells. Information: partners in a block can access info about drilled wells and discovered oil and gas fields.

61. Water depthBefore choosing a rig, you need to check your water depth Find this at the bottom of the BLOCK page

62. Choose RigChoose the right rigs for your water depthsJack-up rigs for shallow watersSemi-submersible rigs for middle watersDrillships for the deepest waters Rig cost = drilling days * day rate

63. RigsFew: limited number of rigs available.If you get one: start using it within 20 minutes.If you don’t: wait in a queue, if another team is using the rig.Price can change: rig day rates are dynamic.

64. Drilling Days

65. Service ProvidersUpto 9 Star quality-Good: normally costs moreBad: cheaper, but reliability is low, so you risk extra drilling time and extra costs

66. Environmental Impact AssessmentEIA survey: more knowledge about the area.Less probability for drilling problems.Less severe consequences if you run into problems.

67. Drill PositionEIA: enviromental impact analysis shows where not to drill.Place your mouse where to drill

68. Penalties & FinesCertain problems can occur if Service Provider Selection is poor qualityOther penalties can occur if you drill in areas indicated as problematic in the Environmental Impact AssessmentAs in real life, problems can occur randomly and these are also applied with fines levied accordingly.

69. Drilling PositionLayer 3 EoceneLayer 2 PaleoceneLayer 1 Cretaceous

70. Estimated cost

71. Drilling Result