This document outlines the objectives, scenario, and challenges for a simulation game about petroleum exploration. Players take on the role of an exploration team sent to an island to discover oil and gas. They are given $200 million to spend on surveys, licenses, drilling, and investing. The goal is to earn the most Credibility Points by meeting several challenges: 1) Locating 3 sedimentary basins, 2) Identifying the 3 most promising blocks of land, and 3) Finding and proving oil and gas reserves. Players must acquire seismic data, bid on land, sell portions of licenses, drill exploration/appraisal wells, and ultimately sell their license to determine if reserves are commercially viable. The team with the highest total points

1. PetroChallenge Faroe Islands 15 and 16 December 2010

2. Learning objectives Get an overall overview of petroleum exploration Which surveys and which activities does petroleum exploration comprise How do oil companies, the Government, service companies interact How to determine whether a find is commercially viable

3. Scenario You are an exploration team who has been sent to Simprentis Island to discover oil and gas You start with $200 million, which you can spend on surveys, licenses, drilling wells, and investing in other teams The winner is the team that has the most Credibility Points at the end of the session

4. How to get Credibility Points? Challenge I: Can you locate the basins? 10% Challenge II: Identify the best 3 blocks? 30% Challenge III: Find out whether you have oil and gas in your blocks? 40% Overall: Do you have the highest value? 20%

5. Program 09:00 Introduction + Pre-questionnaire + Ch 1 Intro 09:30 Challenge 1: Initial Screening 10:00 Challenge 2 Introduction 10:30 Challenge 2: Prospecting 11:00 Challenge 3 Introduction 11:30 Challenge 3: Partnering and Exploration Drilling 13:30 Simulation ends. Post-questionnaire 13:45 Results and debriefing 14:00 End

6. Challenge 1 Locate the 3 sedimentary basins Oil and gas originates from organic material in the sedimentary basins Study gravimetric and magnetic surveys

7. Gravimetric survey Sedimentary rocks have lower densities (and lower metal content) than the surrounding crystalline rocks Low gravity (and low magnetic field) means high probability of a sedimentary basin

8. Locate the geographical center

9. Where are the 3 basins?

10. Challenge 2 Identify the 3 most promising blocks and submit a bid Only choose between orange blocks

11. Spawning Grounds This map shows the environmentally sensitive areas You will not be awarded blocks that contain any red

12. 2D Seismic Shows a cross section of the sub surface Three layers of prospects: Red is top of the sealing rock and green is top of the reservoir rock Two prospect types: anticlinal traps (left) and fault traps (right) Identify at least 5 prospects in each block you bid for

13. Common Risk Segment Geologists have made one map for each of the three prospecting layers Green indicates that there is a high (25%) probability that a prospect (as seen in the 2D seismic) contains oil or gas

14. Bid Chose which blocks you want to bid for For each block, say how many exploration wells you are willing to drill Do NOT promise to drill more wells than there are prospects An estimated cost is shown You will initially only be awarded one block

15. Challenge 3a Sell at least 20% of your license Drill exploration wells Wild-cat and any appraisal wells Click on one of the blocks to get more information about it The block you operate is green

16. 3D seismic

17. Overview of all licenses

18. Send Farm-In Request

19. Accept or Reject

20. Challenge 3b When you have sold at least 20% of the license you can start drilling exploration wells to determine the value of the block Click on Drill

21. Check water depth

22. Choose drilling rig

23. Choose Service Providers

24. Environmental Impact

25. Select drilling position

26. Middle layer position

27. Deepest layer

28. Oil spill control

29. Drilling Result (tick the box and press Next to test)

30. After testing Possible Proven

31. Reprocess Seismic

32. Value Calculation

33. Assumptions

34. Value Calculation

35. Drill appraisal wells to improve the value

36. Selling your license When you have established that either the license is not profitable - or you are satisfied with the value of the license, please sell the license to BigOil You and your partners will get money for the sale and you will get up to 100 CP depending on whether you have acquired all 3D seismic, drilled in all prospects, and proved at least 50% of the possible volume for all prospects You will then be asked to choose a new license from the Government

37. Summary Acquire 3D seismic, and after farming out 20%, you should drill wild-cat wells into all prospects After each well, reprocess seismic Decide which discoveries to drill how many appraisal wells into When you are done, sell your license to NiceOil to get money, credibility points, and a new license

38. Winning The team that gets the most credibility points (CP) wins the competition Can you locate the basins? 100 CP Can you identify the best 3 blocks? 300 CP Can you find out whether you have oil and gas in your block? 400 CP Do you have the highest value? 200 CP