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STRUCTURAL GEOLOGY IMPORTANCE IN PROSPECT EVALUATION Hydrocarbon traps can be structural, stratigraphic or a combination of both. Either way, the structural geological history of these traps must be understood in order to minimize the risk of drilling a dry hole www.valioso.rocks

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Perform Trap integrity prediction through a Work flow combining cap rock and fault seal analyses

Where is Structural Geology important within the three remaining risk elements?

Trap integrity is one of 4 components comprising geological success

prospects risking and generating estimates of hydrocarbon reserves.

The three remaining elements are source,

reservoir and dynamics (timing/ migration).

+STRUCTURAL GEOLOGY Definition

!  Structural geology is the study of the three-dimensional distribution of rock units with respect to their deformational histories. The primary goal of structural geology is to use measurements of present-day rock geometries to uncover information about the history of deformation (strain) in the rocks, and ultimately, to understand the stress field that resulted in the observed strain and geometries. This understanding of the dynamics of the stress field can be linked to important events in the regional geologic past; a common goal is to understand the structural evolution of a particular area with respect to regionally widespread patterns of rock deformation due to plate tectonics.

+TRAP INTEGRITY Sealing

!  Sealing mechanisms of cap rocks and faults are represented by six parameters that input into the integrated work flow:

•  Cap Rock Capacity, •  Cap Rock Geometry, •  Cap Rock Integrity, •  Fault Plane Capacity, •  Juxtaposition Lithology Capacity and •  Post- Charge Reactivation.

+TRAP INTEGRITY Sealing probability

!  Quantitative values are used to set sealing probabilities that correspond to each of these parameters listed above, and subjective descriptions of data quality and quantity are used to modify them according to their uncertainty.

!  Sealing probabilities are combined in a way consistent with geological concepts to evaluate the probability of a sealing cap rock (Pcap), the probability that the bounding fault is sealing (Pfault) and the combined probability that the trap is sealing (Pseal).

+EXPLORATION PERFORMANCE Risk & Uncertainty Analysis

!  Employ risk and uncertainty analyses in order to maximize exploration performance and optimize portfolio management. Otis and Schneidermann (1997) approach is based on the play concept; source, reservoir, trap and dynamics (timing/migration). Risk assessment assigns a probability of success between 0 (failure) and 1 (success) to each of these four parameters and the multiplicative result yields the probability of geologic success (MacKay, 1996; Otis and Schneidermann, 1997).

+TRAP Geologic Risk !  concentrates on the input parameters that comprise the geologic risk of the trap within

the play concept

!  determine a relationship between six elements of geologic risk, based on the sealing mechanisms of faults and cap rocks rather than using subjective estimates

!  in order to fully assess the geologic risk of a hydrocarbon trap, the critical parameters for the cap rock must be evaluated and combined with those of the bounding faults

!  provide a framework for quantifying the risks associated with cap rocks and incorporating it with a modified Jones et al. (2002) fault-seal relationship, to give a single quantitative relationship for evaluating the geologic risk associated with a hydrocarbon trap

!  The six risk parameters are presented in the context of fundamental tenets that describe cap rock seal, fault seal and the overall hydrocarbon integrity of the trap

!  Methods are suggested to enable the conversion of quantitative parameter analyses into corresponding probabilities of sealing.

+TRAP INTEGRITY Holistic Workflow

!  a trap can be comprehensively assessed.

!  the work flow assure that all failure mechanisms are considered, independent of the evaluation methodology used in each case.

!  the integrated seal integrity study focus on the parameters deemed critical in the context of that trap or basin.

A structurally bound trap is considered to be sealing if both the cap rock and bounding faults are sealing (Mildren et al., 2011 )

A fault is sealing if deformation processes have created a membrane seal or if it juxtaposes sealing rocks against reservoir rocks, and the fault has not been reactivated post-charge (Jones and Hillis, 2003).

+TRAP INTEGRITY EVALUATION Workflow process

Work flow for assessing the probability that a trap is sealing, based on six sealing parameters. Venn diagrams illustrating the relationships between key cap parameters for the probability of cap rock seal and the probability of fault seal are also included. Probability domains are shaded in blue sealing (Mildren et al., 2011).

+PROSPECT RISK Structure Geological perspective

Regardless trap type, Evaluating the structural geological history of the trap from source, reservoir and dynamics (timing/ migration) aspect are all important.

Just to exemplify this, the prospect geological history within this petroleum system gets into trouble around 50 Ma ago when the re-migration due to tilting occurs. Therefore, performing an appropriate structural reconstruction of this prospect would be appropriate.

+PROSPECT RISK Structure Geological perspective

Three-dimensional numerical models allow predictions of petroleum migration pathways and accumulations through time. Example shows predicted migration at 14 Ma. In order for the model to make accurate prediction, there is a need for good structural maps of surfaces from source to potential overburden surfaces of potential prospects/ leads or fields.

(Mark A. Engle, Elisabeth L. Rowan, 2012)

+PROSPECT RISK Other Geological perspectives

There are of course a multiple of other parameters required in order to make best estimates of reservoir and migration capacities, such as temperature, geochemical parameters of source rock and lithology of transport layers and reservoir. We do however not cover these in this presentation.

(Friedemann Baur, 2009)

+PROSPECT RISK Other Geological perspectives

How migration rates, pathways and trapping of hydrocarbons are influenced by capillary forces resulting from variations in the internal surface area of the lithologies constituting the stratigraphy of sedimentary basins. Being able to describe the spatial distribution of fractures and faults together with their hydrological properties (e.g., Jamison and Stearns 1982, Antonellini & Aydin 1994, 1995). Here the Illustrations to the left shows reconstructions of faulted basin stratigraphy as geological basis of the simulation.

(R. Sachsenhofer et al, 2013)

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About myself Stig-Arne Kristoffersen is a Corporate exec with substantial corporate experience. Stig-Arne provide preemptive support in German or English, with basic skill set in Russian.

Kristoffersen focus on Knowledge Based Information processes and systems within oil and gas industry, contract drafting, asset negotiations within real estate and energy sectors. Stig Arne has a broad experience in all aspects of Geo-science. Direct experience with energy business, technical consulting and venture capital.

Stig has extensive experience in play development and prospect generation in various basins globally. Stig Arne has performed a large variation of risk assessment as part of prospect maturation with HI-end tools from various vendors like Schlumberger, Paladin, SMT etc.

Stig Arne has participated in multiple projects with efficient Exploration and Production of oil and gas resources, and experience in making quick turnaround from resource to reserves. Utilizing acceptable international renown techniques to achieve the goal of the projects are always the goal.

www.Valioso.Rocks