Finding & Exploiting new petroleum resources in Europe

Shale, CBM, small / marginal pools, lessons from the US unconventionals 0

Wednesday, March 8, 2017, London, The Geological Society


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Whilst some hope for further discoveries of big oil and gas fields in Europe, a more realistic ambition may be the exploitation of Unconventionals – shale oil & gas, coal bed methane, tight gas, new types of reservoir – and the development of Marginal Fields. What can we say about each of these themes?

Unconventionals
The US experience with shale oil and shale gas offers a number of lessons to the rest of the world.

Lesson #1 seems to be that the best ‘candidate shales’ are those that have acted as the source rock for a significant, even major, conventional petroleum province. In fact it is very rare that this is not the case.
If we look in our ‘neighborhood’ – Western Europe, Russia and the FSU, and North Africa – the obvious candidates therefore appear to be the Kimmeridge Clay, the Bazenhov, the Domanik, and the ‘hot shale’ of North Africa,
Lesson #2 is that the economics work best (or at current oil prices, only work) when you are in the “sweet spot”. The “sweet spots” of plays such as the Barnet, the Bakken, some of the Permian Basin are now clear, after much effort.
Lesson #3 is that once you are in a “sweet spot”, technology can drive costs/barrel or costs/mcf way, way down. And IRRs way up!

An important question therefore is – can “sweet spots” be identified in advance, before major effort is put in, big $s are spent?
It seems to me that the jury is still out on that question! No doubt our US colleagues will figure their answer out as they move into other basins.

But for us in this neighborhood, what does this mean for a “shale gale” here, or hereabouts?

Marginal Fields
This is a topic that would be relevant in many mature basins of course, for example the UKCS, NOCS, GoM and several in SE Asia. Is this a fair summary of the issues, using the UKCS as an example?

Marginal Fields and Infrastructure are linked together and there is a pressing need for 'infrastructure simulation', for SNS, CNS, NNS and WoS.
The quoted number of Marginal Fields in the UKCS varies from ~80 to <400, perhaps reflecting the 'fallow' discoveries numbers DECC/OGA hold for relinquished acreage on the one hand to the undeveloped discoveries it is thought operators are keeping hold of on the other hand. What is needed is a data base of all these that can be placed on top of the 'infrastructure simulations.
This will reveal which infrastructure is critical to future developments and how they might be developed. I assert that it will reveal that no new platforms are needed (though some would argue in favour of unmanned minimum facilities) as sub-sea tie backs can deliver everything.
Then the activities needed would be 'surgical' appraisal (accurately describing a potential reservoir development's static and dynamic properties), reservoir simulation where the right combination of wells and costs can be recognised, drilling of course, and design/selection of subsea systems.


These Lessons – and questions - we will address in our upcoming Forum; and we are looking for insightful presentations!

Please contact me if you/your company would like to make a presentation.

And Richard Mcintyre if you are interested in the sponsorship/exhibiting opportunities we offer.

David Bamford (david@findingpetroleum.com)


This event continues from our past 'European Resources' event held in:

March 2016
view the agenda view the delegates list

March 2015
view the agenda view the delegates list

Agenda

9:30

David Bamford - Director - Finding Petroleum

Welcome & Introduction: followed by SESSION 1: Unconventionals



David Bamford is well known around the oil & gas industry both as an explorer and a geophysicist. He holds a Physics degree from the University of Bristol and a Ph.D in Geological Sciences from the University of Birmingham.

Since 2004, he has been a non-executive director at Tullow Oil plc, being recruited for this position especially for his exploration knowledge. He serves on the Nominations and Remuneration Committees, and was chairman of the latter, and Senior Independent Director, for 3 years prior to his retire from the board at the end of April 2014.

He was on the board of Premier Oil from May 2014 to May 2016.

He retired from BP plc in 2003, his last four positions being Chief Geophysicist (1990-1995), Business Unit Leader (General Manager) for first West Africa and then Norway (1995-1999), and finally Head of Exploration until 2003.

He has served on the boards of Paras Ltd, a small exploration and IS/IT consulting company in which he held 22% equity, until its sale to RPS Energy in 2008 and Welltec a/s, a Danish well engineering company, as the nominee of the private equity investor Riverside.

From 2012 to 201 he was on the board of ASX-quoted Australia Oriental Energy as a non-executive director.

He was a founder of Richmond Energy Partners, a small oil & gas research house, and several media companies that focus on the oil & gas sector, and has served as an advisor to Alliance Bernstein, Opus Executive, the Parkmead Group plc, and Kimmeridge Energy LLP. Since retiring from BP, he has undertaken asset and company valuation projects for investment banks, hedge funds and small oil companies.

Finding Petroleum
Finding Petroleum was established to help the oil and gas industry network, and stay up to date on the latest technological developments. It does this via hosting regular events and with an online social network of nearly 10,000 members.
9:40

Oswald Clint - Senior Analyst - Bernstein Research

OPEC vs Deep Water vs Permian Basin vs Mature Provinces


Dr Clint joined Sanford C. Bernstein in 2004 and was part of the Energy Team with Neil McMahon covering the Global Integrated Oil sector.

Currently he is the Senior Research Analyst covering the European E&P and Russian Oil & Gas sectors. The Bernstein Energy franchise has become well known due to both the provocative commentary on the commodities and oil stocks, as well as the innovative research that forms the core of their frequent publications. Previously, he worked as an accountant and consultant for KPMG covering energy, gas, and chemical sectors. Dr Clint received his PhD in Geophysics from University College London where he specialised in sub-surface rock physics and is also a Chartered Accountant.

Bernstein Research
Sanford C. Bernstein is widely recognized as Wall Street's premier sell-side research firm. Their research is sought out by leading investment managers around the world, and they are annually ranked at the very top of acknowledged arbiters. In independent surveys of major institutional clients, Bernstein's research is ranked #1 for overall quality, industry knowledge, most trusted, best detailed financial analysis, major company studies, most useful valuation frameworks, best original research, and most willing to challenge management. In Institutional Investor's 2008 annual client survey, the leading survey by which analysts in our industry are evaluated, 100% of our U.S. Analysts were recognized as among the best in their respective fields -- more than any other firm on Wall Street.
10:15

Neil McMahon - Managing Partner - Kimmeridge Energy

Lessons Learned from US unconventionals

Talk Description.


Dr. McMahon is Managing Partner of Kimmeridge Energy

He was formerly Director of Research at Kimmeridge Energy and is responsible for private investments, particularly outside the US, and for developing Kimmeridge’s geological research and screening capabilities. Prior to this role, Dr. McMahon was a Senior Equity Research Analyst for the Global Integrated Oils at Sanford C. Bernstein, where he was ranked 1st in the 2009 Institutional Investor Survey, for the third time. Dr. McMahon covered 18 of the largest integrated oils and refiners. He joined Sanford C. Bernstein in 2002.

Before joining Sanford C. Bernstein, Dr. McMahon was an Engagement Manager at McKinsey, based in both Houston and London, where he had been since 1999. At McKinsey he mainly advised petroleum and electric power and natural gas clients and undertook proprietary research within McKinsey’s industry practices. Prior to McKinsey, Dr. McMahon worked in the oil industry as a geoscientist with British Petroleum (BP) and British Gas (BG) before moving into consulting with Arthur D. Little where he became a manager in its Global Energy Practice.

Dr. McMahon received an honors degree from The University of Edinburgh in Geology and Geophysics where he later undertook further research to complete a BP sponsored Ph.D. in 1995. Dr. McMahon has also published a number of technical and management-oriented papers in leading oil and gas industry journals, and currently sits on the board of Durham University’s energy research group.

Kimmeridge Energy
Founded in 2012, Kimmeridge Energy invests directly in unconventional oil and gas projects and assets, primarily in North America.
The Kimmeridge team consists of investment professionals with deep industry relationships and an in-house operating team with considerable experience in geologic evaluation, land acquisition and engineering.
Kimmeridge Energy maintains offices in New York City, Denver and London.

For more information about Kimmeridge Energy, please visit the Company's web site at www.kimmeridgeenergy.com.
10:50 Coffee & Tea; Exhibits
Talk Description.


11:15

John Weston - Technical Director - Tridevi Energy & Resources

What about Coal Bed Methane?

Talk Description.


Tridevi Energy & Resources
11:50

Ian Roche - Managing Director - Aurora Energy Resources Ltd

The case for UK shale

Talk Description.


In 1985, following an Earth Sciences degree at Oxford, Ian joined Amerada Hess Limited, as a geologist, working initially in the North Sea. He transferred to Hess' international business, in a new ventures role, in 1991. After joining OMV in Vienna in 1998, in a combined technical and commercial business development capacity, he successfully led the acquisition of Cultus Petroleum NL; the first international hostile takeover by an Austrian company. Ian returned to the UK in 2007 when he joined private equity firm EDP, where he put together the portfolio of onshore assets that now form the core of Aurora’s business.

Aurora Energy Resources Ltd
12:25

Tim Harper - Founder & Director - Geosphere Ltd

Adapting US fracturing technology to UK shale exploration

Talk Description.

Applying US hydraulic fracturing technology to UK shale exploration wells demands and encourages adaptations for both social and technical reasons. Exploration wells must not only test and hopefully demonstrate commercial potential but also provide reassurance to an uninformed and often misinformed public. In the UK, we have a far more concentrated population, usually better quality agricultural land and a greater challenge to gain the necessary social licence. In the eyes of many, including many politicians who have banned its use or plan to do so, hydrofracturing is viewed more as a bête noire, or worse, than a basic component of the petroleum engineer’s toolkit. Risk, real and perceived, and public inconvenience must be minimised. The present US technology is inefficient in that a minority of fracture stages produce the majority of a well’s production. Unproductive stages and unproductive fractures within clusters are not simply expensive and a source of unnecessary vehicle movements but may be actually detrimental to a well’s productivity. Empiricism has often masqueraded as design. Much greater quantities of materials are wasted than if the situation were reversed and the majority of fracture stages contributed to the flow. Reducing cost, minimising public inconvenience, gaining social acceptance and increasing well productivity go hand in hand.



The results of a stimulated exploration well must be extrapolated or interpolated to other areas of a licence. To maximise the value of an exploration well the results should contribute to, and accelerate, the exploration learning curve. Hydraulic fracturing is a fundamentally a mechanical process. At least two basic geomechanical requirements must be satisfied if the exploration of a licence is to be optimised. First, some understanding must be gained of the processes controlling the effectiveness of multistage fracturing at each well; second a licence-wide model of the distribution of stress and the relevant mechanical properties must be constructed and progressively refined. This implies a programme of data collection, balancing cost against immediate and future benefit.



In relation to well completion needs, this talk will concentrate on reservoir stress state with brief attention to reservoir rock properties. How and why each aspect of stress state affects well and completion planning will be discussed. The focus will be on less widely recognised but basic reservoir geomechanical realities, their constraints on fracturing operations and the justification for constructing licence-wide and local geomechanical reservoir models. A brief review of the basic data sources for building a geomechanical model of a licence prior to drilling and during an exploration programme in the UK, will be included, and what can be achieved for little cost.




After wellsite and seismic survey experience, Tim Harper worked for a US consultancy before joining BP to build a technical service capability in hydraulic fracturing. At this time, stimulation vessels were just entering the N. Sea, requiring changes to the traditional US approach to suit UK offshore operations. Achievements included major cost savings in field development and joint receipt of the Royal Academy of Engineering’s most prestigious prize for advances in hydraulic fracturing. This is the only occasion the award has been made for subsurface engineering. An invitation followed to give a Friday Evening Discourse at the Royal Institution, a memorable challenge. In addition to the completions technical service, he devised and managed a programme to limit the risk to wells drilling through active faults in Colombia and the risks to surface facilities. This included monitoring of microseismic activity during drilling and testing. With Geosphere, he has worked on diverse geomechanical aspects of typical drilling and completion problems. After assisting Cuadrilla to investigate a well-known instance of induced seismicity, he has mostly concentrated on the fracturing of unconventional reservoirs.
Tim Harper obtained a PhD in engineering at Imperial College studying fluid flow in fractured rock after obtaining an MSc. in Structural geology and rock mechanics

Geosphere Ltd
For more than 20 years, Geosphere Ltd. has provided geomechanical services to operators and other consultants. For the last five years we have worked mainly in the UK and developed procedures to describe geomechanical conditions prior to exploration drilling. Geosphere has also supported a programme of research, developing software to examine the interactions between numerous natural fractures and faults, and multiple hydraulically fractured wells subject to various stress states and fracturing histories.

13:00 Lunch & Exhibits, followed by SESSION 2: Marginal Fields

13:35

Nick Terrell - Managing Director and co-founder - Azinor Catalyst

Immature plays in a mature basin – The future of UK exploration


Nick Terrell is Managing Director and co-founder of Azinor Catalyst, a Seacrest Capital backed E&P company focused on the UKCS. The company is a qualified UK offshore operator and is focused on generating significant value for its stakeholders through advanced seismic technology and other geotechnical de-risking technologies ahead of drilling. Prior to launching the company in February 2014, with co-founder Henry Morris, Nick was Exploration Director at US Independent E&P company Endeavour Energy.

Nick is also President of the Petroleum Exploration Society of Great Britain, the industry’s leading membership organisation set up to encourage, for the public benefit, education in the scientific and technical aspects of petroleum exploration.

Azinor Catalyst
At Azinor Catalyst we are building a material portfolio of high value UK Continental Shelf (UKCS) assets. We are doing this through a combination of Licencing Rounds and targeted acquisitions, leveraging our technical, commercial and operating capabilities.

We see numerous and significant investment opportunities across the region, as larger and high cost incumbent players seek to strategically divest or rationalise their portfolios.
14:10

Joshua May - Sales and Marketing Manager - PGS

Towed Streamer EM – Cost Effective Offshore Reserve Replacement in Europe

Talk Description.
Oil companies in Europe are taking stock of the last few years and aiming to cost effectively improve reserve replacement. Towed Streamer EM can assist in reducing unnecessary expenditure by improving understanding of the subsurface prior to significant investment decisions being made. This talk will explore applications from near field exploration and prospect de-risking to improving understanding of hydrocarbon saturation within a discovery in order to optimise drill placement decisions for appraisal and production wells. Operational case studies and data examples will draw on acquisition and data integration experience in the UK and Norway
After four years working offshore for PGS Joshua joined a high tech start up to manage a project undertaking the design and manufacture of AUVs specified to deliver 4C sensors autonomously to the seafloor for use in hydrocarbon exploration. Returning to PGS after two years, Joshua spend three years in the Marine Contract Africa business unit before taking on his current position as Sales and Marketing Manager for PGS’ Towed Streamer Electromagnetic technology in 2014. Joshua holds a BSc in Marine Geography from Cardiff University

PGS
PGS is a dedicated marine geophysical company. We provide images and 3D models of the subsurface that oil companies use to find oil and gas reserves. Our business is technology driven and we offer a broad range of seismic, electromagnetic and reservoir services, including acquisition, imaging, reservoir characterisation, interpretation and field evaluation. The PGS MultiClient seismic library is among the largest and most modern in the industry. Around 60% of the 2D data and almost 30% of all 3D data has been acquired with GeoStreamer®, the industry's first true broadband marine seismic system. The result is subsurface images of greater clarity, accuracy and reliability.
14:45

Mark Enfield (PDF) & Rob Gill (Advisian) - - Kimmeridge Energy

Exploiting small discoveries and shale oil in the same place

Talk Description.


Kimmeridge Energy
Founded in 2012, Kimmeridge Energy invests directly in unconventional oil and gas projects and assets, primarily in North America.
The Kimmeridge team consists of investment professionals with deep industry relationships and an in-house operating team with considerable experience in geologic evaluation, land acquisition and engineering.
Kimmeridge Energy maintains offices in New York City, Denver and London.

For more information about Kimmeridge Energy, please visit the Company's web site at www.kimmeridgeenergy.com.
15:30 Close

Sponsors of this event

PGS
PGS is a dedicated marine geophysical company. We provide images and 3D models of the subsurface that oil companies use to find oil and gas reserves. Our business is technology driven and we offer a broad range of seismic, electromagnetic and reservoir services, including acquisition, imaging, reservoir characterisation, interpretation and field evaluation. The PGS MultiClient seismic library is among the largest and most modern in the industry. Around 60% of the 2D data and almost 30% of all 3D data has been acquired with GeoStreamer®, the industry's first true broadband marine seismic system. The result is subsurface images of greater clarity, accuracy and reliability.

Bernstein Research
Sanford C. Bernstein is widely recognized as Wall Street's premier sell-side research firm. Their research is sought out by leading investment managers around the world, and they are annually ranked at the very top of acknowledged arbiters. In independent surveys of major institutional clients, Bernstein's research is ranked #1 for overall quality, industry knowledge, most trusted, best detailed financial analysis, major company studies, most useful valuation frameworks, best original research, and most willing to challenge management. In Institutional Investor's 2008 annual client survey, the leading survey by which analysts in our industry are evaluated, 100% of our U.S. Analysts were recognized as among the best in their respective fields -- more than any other firm on Wall Street.

Registered Delegates

Hugh Ebbutt
Director
A T Kearney
United Kingdom
Wally Jakubowicz
Managing Director
Hampton Data Services
United Kingdom
Craig Jones
Sales Supervisor
PGS
United Kingdom
Rob Gill
Senior Advisor
Advisian
United Kingdom
Norman Hempstead
Director
Hempstead Geophysical Svcs
United Kingdom
Frederic Yeterian
Director
Philax International (UK) Ltd
United Kingdom
Alexander Estrin

Alesther Ltd.
United Kingdom
Naofumi Sakuyama
chief geoscientist
Idemitsu
Nigel Quinton
Consultant
QX Energy Limited
United Kingdom
Geoffrey Boyd
Field Development Consultant
Antium FRONTFIELD
United Kingdom
Kevin Phillips
Principle Basin Research Geologist
Ihs Markit
United Kingdom
Josh King
Analyst
RAB Capital
United Kingdom
David Craik
Consultant
Atlaslocal
United Kingdom
William Slade

Ikon Science
United Kingdom
Graham Dean
Director
Reach Coal Seam Gas Limited
United Kingdom
Ian Roche
Managing Director
Aurora Energy Resources Ltd
Peter Dolan
Founding Non-Executive Director
Ikon Science Limited
United Kingdom
Kes Heffer
Director
Reservoir Dynamics Ltd
United Kingdom
Nick Terrell
Managing Director
Azinor Catalyst
Martyn Millwood Hargrave
CEO
Ikon Science Ltd
United Kingdom
Robert Snashall
Consultant
RGSConsult
United Kingdom
Henry Morris
Technical Director
Azinor Catalyst
United Kingdom
Mark Robinson
Consultant
Independent
United Kingdom
Patrick Taylor
Director
RISC (UK) Limited
United Kingdom
Joe M Boztas
Director/Interpreter
Boz Seismic Services
United Kingdom
Neil Dyer

Independent
United Kingdom
Brian Hepp
President
Rocky Mountain Limited
United Kingdom
Barnaby Roome
senior geologist
BP
Mike Hibbert
Independent consultant
Independent consultant
United Kingdom
Paul Strachowski
Seismic QC
RPS Energy
United Kingdom
Stefano Pugliese

Chrysaor
Manouchehr Takin

Independent consultant
United Kingdom
Norrie Stanley
Consultant
RPS Energy
United Kingdom
Roger Doery
Consultant
Consultant
United Kingdom
Christian Bukovics
Independent Director
JKX Oil&Gas Plc
United Kingdom
David Webber
Seismic Operations Supervisor
Sceptre Oil & Gas
United Kingdom
raffaele bitonte
exploration -structural geologist
Consultant
Italy
jonathan bedford
Director
JXT
United Kingdom
Miles Dyton

Schlumberger
United Kingdom
Micky Allen
consultant
consultant
United Kingdom
Steven McTiernan
Chairman
Kenmare Resources plc
United Kingdom
Diz Mackewn
Chief Technology Officer
Seacrest
Colin Clarke
Geophysicist
Consulting Geoscience
United Kingdom
Peter Allen
consultant
layla resources
United Kingdom
David Jackson
Principal Geologist
Shearwater Geoservices
United Kingdom
Richard Walker
Consultant Geophysicist
Cornhill Economics Ltd
United Kingdom
Neville Hall
Director/Consultant
Llahven Data Management & Compliance
United Kingdom
Glyn Roberts
Director
Spec Partners Ltd
United Kingdom
Robert Ward
Advisor
Decision Frameworks
United Kingdom
Alan Smith
Director
Luchelan Limited
United Kingdom
Vibhusha Raj Sharma

StrategicFit
United Kingdom
Stephen Norman
Business Development Manager
DNV GL
United Kingdom
Nina Gray
Managing Director
Major, Lindsey & Africa
United Kingdom
Anne-Mette Cheese
Exploration Geologist
Svenska Petroleum AB
United Kingdom
Ahron Peskin
Data Analyst
Drillinginfo
United Kingdom
David Bamford
Director
New Eyes Exploration Ltd
UK
Brian McBeth
Managing Partner
The Oxford Consultancy Group
United Kingdom
Ben Dewhirst
Geologist
Echo Energy plc
United Kingdom
Mike King
Oil & Gas Manager
NPA Satellite Mapping
United Kingdom
Sid Shamnath
Managing Director
Tridevi Capital
Dario Del Gaudio
Atlantic Margin Exploration Project Manager
ENI
Helen Turnell
Principal Consultant
NR Global Consulting Ltd
United Kingdom
Mihiri Jayaweera Mihiri Jayaweera

Tridevi Capital
Fernando Botin
Exploration Team Leader
ENI
Stephen Birrell
Advisor
Ossian Energy Ltd
Spain
Alex Dimitriou

Tridevi Capital
Boff Anderson
Snr. Land Operations Manager
EPI Group
Mark Enfield
Managing Director
P.D.F. Limited (An EPI group company)
United Kingdom
Richard Nolan
CEO
Tridevi Capital
Avinga Pallangyo
Conference Manager
Finding Petroleum
Robert Parker
Consultant
Parker
United Kingdom
Sarah Al-jasseri
Business Development Manager
Tridevi Capital
Karl Jeffery
Editor
Finding Petroleum
United Kingdom
Tim Beal
Explorationist
PDF
John Weston
Tecnical Director
Tridevi Energy & Resources
United Kingdom
Richard McIntyre
Sales Manager
Finding Petroleum
Mike Rego
Independent Consultant
PetroMall Ltd
United Kingdom
Alastair Bee

Westwood Global Energy
United Kingdom
Tim Harper
Founder & Director
Geosphere Ltd
United Kingdom
Claudio Paleari

Petrotrace Geoscience
Norway
John Wood
Geoscientist
Wood Geoscience Limited
United Kingdom
Paul Harris
Director, European B2B Markets
Glacier Media Inc.
Henry Dodwell
Consultant
PetroVannin
United Kingdom
Helen Ricketts
Business Development Manager
Wood Group Kenny
United Kingdom
Alexander Chalke
Partner
Grosvenor Clive & Stokes
United Kingdom
Joshua May
New Ventures - Africa
PGS
United Kingdom
Gabriel Mynheer
Analyst
Wood Mackenzie
United Kingdom