22. April 2010

JARÐFEINGI � FAROESE EARTH AND ENERGY DIRECTORATE

Brekkutún 1 � Hoyvík � Postsmoga 3059 � 110 Tórshavn � Tel. 357000 � Fax 357001� jardfeingi@jardfeingi.fo � www.jardfeingi.fo

Guidelines

on submitting of data etc. from geological and geophysical investigations in connection with hydrocarbon activities

Scope and introduction

1. Jarðfeingi collects all data and information obtained from the subsoil in connection with

geological and geophysical investigations carried out pursuant to Act no 31 of 16 March 1998 on

Hydrocarbon Activities and Executive Orders issued in pursuance of the Act.

2. Unless otherwise stated data, information, reports and samples shall be submitted free of charge

to

Jarðfeingi

Brekkutún 1

P.O. Box 3059

FO-110 Tórshavn

Faroe Islands

3. Data, information and results from the geological and geophysical investigations shall be

submitted in a format accepted by Jarðfeingi, together with relevant documentation.

(2) Data, reports and samples etc. shall be labelled in a clear and durable manner to allow

identification at any time.

(3) All reports shall be submitted on paper and on CD-ROM.

4. Data, information and results from other surveys shall be submitted in a format acknowledged

by the industry and accepted by Jarðfeingi.

5. Unless otherwise stated data, information, reports and samples shall be submitted no later than

3 months after completion of the drilling and well activities.

Daily report

6. A daily report with information on the drilling and well activities, including geological data and

observations shall be sent before 11 am to Jarðfeingi.

Samples

7. The following samples shall be submitted,

1) wet cuttings

2) dry cuttings and

3) formation liquids from test production.

(2) The samples shall be labelled, packed and submitted in the quantities stated in enclosure 1.

8. No later than one year after completing the drilling and well activities the following shall be

submitted,

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1) conventional cores

2) formation liquids

3) preparations made from samples (e.g. thin sections) and

4) rest material from sidewall cores and all other sampled material.

(2) The material shall be handled, labelled and packed as stated in enclosures 1 and 2.

Well loggings

9. Results from all performed measurements in all welltracks, except those mentioned in

subsection 2 and 3 and Section 10, shall be submitted:

1) digitally in DLIS format,

2) digitally in LAS format,

3) at scale 1:200 on film and paper, and

4) at scale 1:500 or 1:1000 on paper

(2) Processed Imagelogs and formation test logs shall be submitted on paper, and in digital

formats acknowledged by the industry and accepted by Jarðfeingi.

(3) Results of directional surveys shall be submitted on CD-ROM in a documented fixed column

format.

(4) All measurements and results shall be easily identifiable.

10. Results from all performed velocity surveys in the well shall be submitted in a documented

standard format.

(2) Field data from VSP measurements shall be submitted in SEG-D format, “full floating point”.

(3) Processed VSP data shall be submitted in SEG-Y format, “full floating point”.

(4) VSP seismic sections shall be submitted on paper in an appropriate scale.

11. Results from test production shall be submitted.

Other reports

12. An overview stating the expected timing of reports on analyses of samples shall be submitted

within 3 months after the completion of the drilling and well activities.

(2) Reports on analyses of samples shall be submitted as soon as they are available. The reports

shall as a minimum include information on performed analyses together with results concerning:

1) stratigraphic, sedimentologic, paleontologic and geochemical conditions,

2) core descriptions, including core photos in normal and UV light, on paper in A4 format and

in similar quality in TIF, JPEG or CGM format on CD-ROM,

3) the core material in general,

4) produced formation water,

5) the pressure-volume-temperature relations for produced hydrocarbons,

6) source rock analyses and

7) description and analysis of the drilling fluid.

13. A report on directional surveys shall be submitted.

14. A final mud logging report shall be submitted.

15. A report on test production in the well shall be submitted and should reflect all pressures,

temperatures, fluid volumes and rates measured during the flowing and shut in periods of the test.

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If well testing operations deviated substantially from the approved test production programme, an

explanation shall be provided for the deviations from the plan.

16. No later than 8 months after completion of the well a summarizing completion report shall be

submitted to Jarðfeingi in 3 copies of which one shall be electronic.

(2) The completion report shall, as a minimum, include:

1) operator, name of drilling rig, well name, geographical position, water depth at the drill

site, reference level for depth measurements, dates of the drilling operations and total

depth of the well indicating geological age,

2) summary on the progress of the drilling operation, stating technical problems, if any, of

relevance to the geological evaluation,

3) composite log of the well with a description of the geological column, information on

coring intervals and sidewall core locations, test intervals and position of casing and

cementing and

4) summary of geological information obtained during the drilling operation, including

deviations from the prognosis as described in the drilling programme.

(3) In connection with test production a completion report with conclusions shall also be

submitted. The report shall give a detailed account of results and processing methods with

supporting explanations, as well as an evaluation of the results.

(4) Additionally a general assessment on the overall results and the implications on the

prospectivity of the license area shall be submitted separately.

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Enclosure 1

Labelling, packing and sample quantities

Labelling

1. The sample labelling must be clear and durable to allow sample identification at any time.

2. All samples shall be labelled with license number, name of operator, well name and sample

depth.

3. Liquid samples taken in connection with formation tests and test production shall be labelled as

stated in item 2. above. The labelling shall also include test number, test type, flowtime and liquid

type.

Packing

4. All packing shall be durable and of a quality that prevents the samples from changing quality or

quantity during transportation.

5. The samples stated below shall be submitted in standard boxes with the outside dimensions 16

cm x 16 cm x 125 cm, with a lid closed by propeller:

• Wet cuttings, 12 bags in each box.

• Cores.

If standard boxes are not used the samples will be repacked at Jarðfeingi at the expense of the

licensee.

Sample quantities

6. For each sample depth approximately 1 kilo of wet cuttings as well as a standard quantity of

dry cuttings shall be submitted.

7. At each sampling of formation liquids (oil, condensate or water) by wireline tool approximately

one decilitre shall be submitted; in connection with test production a minimum of 2 x ½ litre shall

be submitted.

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Enclosure 2

Handling of cores

1. Cores shall be stored and handled securely.

2. Core chips shall be collected with extreme caution. No more than 100 grams of sample material

can be collected for every metre of core.

3. For every metre of core, a maximum of eight horizontal plugs and one vertical plug with the

diameter 3.75 cm (1½”) can be drilled.

4. For each meter of core a 15 cm long, undisturbed section shall be waxsealed and stored.

5. For the remaining core material eccentric slabbing, as shown below, shall be performed:

The core slab (B) shall be glued in a suitable tray, resinated and photographed in normal light and

UV light.

6. The core material shall be labelled and packed in accordance with the directions for labelling

and packing in Enclosure 1.

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Images of standard box according to guidelines:

Standard box. Size:16 cm x 16 cm x 125 cm Lid is closed by propeller.

Box lid closed by propeller.

Box lid closed by propeller.

Jarðfeingi supplier of standard boxes:

Stacked boxes on pallet ready to move with forklift