The Howe Field. A Jurassic Interpod producing above expectation. Chris Bugg, Geologist on behalf of the Howe subsurface team

Transcription

1 The Howe Field A Jurassic Interpod producing above expectation Use this area for cover image (Maximum height 6.5cm & width 8cm) Chris Bugg, Geologist on behalf of the Howe subsurface team 1

2 Overview " Howe Overview " Exploration and Appraisal " Development " Production History " (nice) problem of higher connected volume " Remodelling effort 2

3 Howe Location 3

4 Field Overview 60% Shell (operator), 20% OMV, 20% Idemitsu Reservoir: Jurassic reservoir (av. depth10300 TVDSS) Well Penetrations: 22/12A-1 (1987): Exploration well 22/12A-8 (2002): Appraisal well 22/12A-9 & 9z (2004): Pilot well and Producer Development Strategy: Single well tie back to Nelson STOIIP: ~40 MMbbls First oil:31 st October 2004 Produced to date: ~10 MMbbls Fluids: 39 deg API oil, GOR Depth km 22/12a /12a m 1: N /12A-9 & 9z

5 Structural setting West East BCU Skagerrak Jurassic Skagerrak Depth m : Smith Bank Salt Jurassic Skagerrak Basement 5

6 Jurassic section 22/12A-8 22/12A-1 BCU Ft TVDSS Heather/Kimm 22/12A-9z 22/12A-9 22/12A-8 ODT Fulmar A/B Hugin A/B Pentland Triassic metres 6

7 Exploration and Appraisal History " 1987: 22/12A-1 Oil discovery well 20ft TVD Net oil bearing Pentland sand Coastal plain facies ODT at10331ft TVDSS 20% porosity 75% oil saturation Well test 1500 stb/day Low oil saturation and oil shows in tight Skagerrak sandstone BCU Kimm/Heather Hugin Shale Pentland Skagerrak 7

8 Exploration and Appraisal History " 2002: 22/12A-8 Kimm/Heather 170ft Fulmar and Hugin sands Shoreface and tidal channel facies ODT at10571ft TVDSS % porosity % oil saturation No Pentland sands encountered Fulmar/Hugin Sands Hugin Shale Pentland ODT 8

9 Field Development Basic well concept: Identify presence of reservoir in the Eastern crestal region with a pilot-hole. Accurately identify the depth of topreservoir in the zone of seismic tuning. Enabling successful land-out of the main bore. Geo-steer main producer 500 m Howe Field Howe Field Lower Terti ary Cretaceous Palaeoc. Eocene Oligocene Jurassic Triassic Upper L Lower Terti ary Cretaceous Palaeoc. Eocene Oligocene Jurassic Triassic Upper L Lar k & Horda Lar k & Horda Balder Sele Forties Lista 9000 Maureen Ekofis k Tor Hod Kimmeridge & Heather Fulmar Pentland 7780 T VDSS 8184 AH 7945 T VDSS 8362 AH Balder Sele 8075 T VDSS 8502 AH Forties Lista 8750 T VDSS 9302 AH 9130 T VDSS 9846 AH 9240 T VDSS 9846 AH 9455 T VDSS AH Tor T VDSS AH Hod T VDSS AH T VDSS AH Maureen Ekofis k Kimmeridge & Heather Fulmar Pentland Skaggerak Skaggerak & Smithbank & Smithbank 7780 T VDS 8184 AH 7945 T VDS 8362 AH 8075 T VDS 8502 AH 8750 T VDS 9302 AH 9130 T VDS 9846 AH 9240 T VDS 9846 AH 9455 T VDS AH T VD AH T VD AH T VD AH BCU West TD TOR East FULMAR PILOT PENTLAND TRIASSIC OWC TVDSS 200 m 9

10 Development well results Key pilot hole results (22/12a-9): Lower-Fulmar reservoir encountered. Upper/Middle Fulmar absent through erosion. Excellent reservoir properties encountered: Gross thickness: 76 AH Net thickness: 70 AH (22 TVD) Kimm/Heather Porosity 23% Permeability: mD Production well results (22/12a-9Z): Excellent reservoir properties encountered: Gross thickness: 2390 AH Net thickness: 2033 AH (155 TVD) Porosity 22-24% Permeability: md Fulmar/Hugin Sands 10

11 Correlation Kimm/Heather Fulmar/Hugin Sands BCU Hugin Shale Pentland 11

12 Production History Axis 1 HOA01S1:HO_FUL_01 ProdOil ( bbl/d ) Axis 2 Calendar Day Oil Rate ( bbl/d ) TestSepGOR ( cf/bbl ) HOA01S1:HO_FUL_ GOR trend now flat Reservoir dropped below bubble point Loss of PDHG 1000 Wax inhibition installed 12

13 Remodelling effort Material balance analysis suggests connected volume exceeds existing modeled high case. Purpose of new model The primary purpose of the study is to have a model the incorporates the most recent data available to allow the team to: Quantify Howe reservoir volumes and connectivity using the reprocessed seismic data. Quantify subsurface uncertainty by carrying out pragmatic uncertainty analysis as opposed to the current situation of having a single realization. New model must explain current behaviour of the field which is not captured by the current model. Identify potential upside volumes. 13

14 Seismic interpretation Aims Make use of reprocessed PSDM Top Triassic seismic volume Map all possible Fulmar and Pentland volumes connected to the Howe core area Generate base, low and high case structures Where uncertainty remains generate scenarios for reservoir presence and connectivity 14

15 Scenarios Reservoir presence risk: I = reservoir present 0 = no reservoir Alternative picks: High = High top reservoir Low = Low top reservoir Connectivity: I = Connected 0 = Barrier Further scenarios Pentland connectivity Triassic support Perched water contact 15

16 Static modelling More coverage STOIIP and aquifer support are important uncertainties Incorporate downdip Fulmar/Hugin volumes Include all Pentland volumes Extended area useful for prospect analysis New structural framework New facies modelling Layering scenarios Tabular vs. base lap layering 16

17 Dynamic modelling History matching to production data Core area only Provide tool for well and reservoir management help to constrain remaining potential Early insights Many scenarios are likely to match If large aquifer volume connected water influx occurs too early e.g. southern area connected Large oil volume connected to core are If connected volume is restricted then GOR increases too quickly e.g. sealing faults If connected volume is all oil volume and only a small aquifer then the GOR increases too slowly 17

18 Conclusions and Thanks The Howe field was successfully developed by using a pilot hole to optimally place the production wellbore The production behaviour of the field indicated that the field had access to a larger connected volume than previously modelled An integrated remodelling exercise has been undertaken to enable improved field management and identify potential upside volumes by... n Mapping all potential connected volumes n Building a new structural framework n Generating a number of subsurface scenarios for dynamic modelling Thanks to OMV (U.K.) Limited, Idemitsu Petroleum UK Ltd. and the Howe subsurface team 18

19 Cautionary Statement This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. Also included as a forward looking statement is our disclosure of reserves, proved oil and gas reserves, proven mining reserves, organic reserves, net reserves and resources. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this [presentation, report or speech], including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this [presentation, report or speech] are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell s 20-F for the year ended December 31, 2007 (available at and ). These factors also should be considered by the reader. Each forwardlooking statement speaks only as of [insert date of presentation, report or speech]. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this [presentation, report or speech]. The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this [presentation, report or speech] that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC Also in this presentation we have aggregated our equity position in projects for both direct and indirect interest. For example, we have aggregated our indirect interest in the Copyright Pluto project of Shell via our UK 34% Ltd shareholding in Woodside Energy Ltd. 19

20 Q & A

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