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1 Using GIS and Data Mining for Western Canada Coalbed Methane (CBM) Exploration Geoff Ryder, Melanie Luinstra Nexen Inc.

2 About Nexen Canadian energy company Head office in Calgary Canadian Occidental Petroleum (Can Oxy) Global operations Canada (heavy oil, CBM, Athabasca oil sands) United States GOM North Sea, Norway, Yemen, Colombia, Nigeria Global exploration

3 GIS At Nexen Transitioned from CAD to GIS over 8 years ago GIS Services (20 people) p Embedded GIS Analysts and Technologists in business units Geomatics Engineering GIS Development Technical Graphics Corporate GIS enterprise Mainstream tool for decision making

4 Geospatial Projects Group Exploration & Production Business Geographics Beyond traditional GIS mapping Geospatial analysis and data mining Innovative geospatial solution

5 Business Issue CBM team were interested in expanding their interest in a coal zone Ideal situation: Lease blocks in the desired coal zone Lease blocks in geologically suitable locations Expiring in the next couple of years Owned by companies of interest Close to Nexen s existing land holdings

6 The GIS and Data Mining Approach ArcGIS was used for building the data Eliminating stacked lease data Geologic surface generation Spotfire s DecisionSite was used for data mining Spotfire s DecisionSite was used for data mining land holdings

7 CBM Lease Data L d t i diffi lt t Lease data is difficult to map 46,288 lease blocks in AOI Data is stacked

8 Stacked Lease Data Rights to certain zones creates stacked data Query for coal zone of interest eliminates the stacked data 21,201 lease blocks for Coal Zone A Surface lease to base of coal zone A Coal A Coal B Base of coal zone A to base of coal zone B

9 Distance Calculation Distance of each lease blocks to nearest Nexen lease

10 Lease Dataset Attributes Operator Expiry date Distance

11 Coal Point Distribution Data: +37,000 well points Points are stacked Each well bore penetrates 1 or more coal beds Attributes: Coal zone name Bed number Depth to top and bottom of each bed

12 Technical Parameters Technical Parameters: Depth Total thickness Net thickness Gas content Calculated values for each technical parameter

13 Technical Parameters: Depth Measure of ground elevation to top of first bed Ground Elevation (0m) = Depth to top =200m Top of top bed (200m)

14 Technical Parameters: Total Thickness Total thickness from top of first bed to bottom of last bed in coal zone Total thickness

15 Technical Parameters: Net Thickness Net thickness is the total thickness of each bed, added together + + = Net thickness

16 Technical Parameter: Gas Content Nexen proprietary p formula

17 Surface Generation Surfaces created using values from technical parameters Geostatistical analyst Exploratory spatial data analysis RMSE evaluation Cross validation and error checking Depth Gas Content Total Thickness Net Thickness

18 Datasets Lease Data Technical Parameters Attributes t Attributes t Operator Depth Expiry date Total Thickness Distance Net Thickness Gas content

19 Final Data Add values from each surface to the lease data

20 Demo

21 CBM Analysis Results Identification of lease data opportunities GIS Analysts collaborate with GG&E Dynamic interaction with the data (not a static map) Provides a brainstorming session Results in spin-off analysis projects GIS is part of the process instead of providing only a product

22 Value to Nexen Finding the right CBM lease data is: A competitive advantage Assist project teams to discover their own data Reveal hidden opportunities Speed project development Increase in efficiency Can save money

23 Acknowledgements Melanie Luinstra Nexen Inc. Mary Kai Manson GeoSeis Inc. John Dinning - Spotfire

24 Questions?

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