1. Synopsis: P1488 DECC Relinquishment Report OMV (U.K.) Ltd. UK offshore Licence P1488 was awarded to OMV, Dana Petroleum and Rocksource in the 24 th Licence Round on the 24 th of January 2007 as a frontier licence. A 75% (or total) relinquishment was required on the licence by April 2009. The partnership and DECC agreed to reduce the licensed area to 213/14a and 15a in accordance with the licence terms (Fig.1). The partnership then entered the second phase of the Frontier licence which contains a drill-or-drop deadline by April 2013. OMV together with its partners has taken the decision to relinquish Licence P1488 due to the high risk and low resource potential of the exploration opportunities identified on the licence. Fig.1: P1488 Licence Location:
2. Exploration Activities: OMV and its partners Dana Petroleum and Rocksource have undertaken an extensive exploration programme in order to understand the level of prospectivity of licence P1488. The initial firm work commitment was as follows a. Obtain 144 Kms 2D seismic on block (534 Kms total). i. OMV purchased 1530 km of Fugro FSB 2D original processing and their 2006 reprocessing. (Completed 2007) b. Fully licence 150 sq km of 3D seismic. i. OMV took a full licence of the PGS Megamerge 3D dataset that covers part of the licence (Completed 2007) c. Biostrat and Petrophysical studies, Basin Modelling study, CSEM Modelling study. (Completed 2009) 2D Seismic: In 2007 OMV and its partners purchased 1530 kms of Fugro FSB 2D seismic and the 2006 reprocessing. An extended dataset was acquired to allow seismic ties to the adjacent wells 214/4-1 and 214/9-1 which contain the Tobermory and Bunnehaven discoveries respectively. These well ties aided interpretation and provided a more comprehensive tie to the PGS Megamerge 3D dataset. In particular the 2006 reprocessed 2D lines provided a clearer image of the intrabasalt and sub basalt reflectors. OMV also used regional gravity and magnetic data to aid interpretation of the deeper strata. 3D Seismic: Unfortunately the 3D PGS Megamerge dataset only covers the south-eastern corner of 213/14a & 15a and does not coincide with any mapped closures. The PGS Megamerge was used to place the licence in a regional context, to tie the licence to the 214/4-1 and 214/9-1 wells and also used to provide surfaces for the Basin Modelling study. Biostratigraphy study: OMV were in possession of the Ichron Faroe - Shetland report and Phase 2 Faroe Shetland report which were released in 2004 and 2006 respectively. OMV also purchased the Ichron Phase 2 Faroe Shetland update report in 2010. The Ichron data was used in conjunction with a regional Petrophysics study to help identify any prospective Palaeocene reservoir intervals in the area of Licence P1488. Petrophysics Study: A comprehensive regional petrophysical study was completed by OMV and its partners in 2007. This study included 13 key wells in the Faroe Shetland Basin with the objective of identifying potential Palaeocene reservoir intervals while also quantifying the reservoir parameters of any net pay
identified. This study included the 214/4-1 and 214/9-1 wells and the data was used in conjunction with the biostratigraphic study and seismic mapping to help identify prospectivity on the licence. Gravity and Magnetic Modelling: The aims of the Gravity and Magnetics study were to derive the orientation of tectonic lineaments and to define the regional structure. The model utilised 5 2D profiles to investigate the geological structure within the project area and to derive constraints for 3D modelling. Basin Modelling: 1-D Basin Modelling was undertaken in 2009 with the aim of reducing the exploration risk through modelling of source rock maturation and hydrocarbon generation history with an evaluation of hydrocarbon type. This study required collation of all available geochemical and geothermal data in the area as well as source rock evaluation from the two wells where the KCF was encountered i.e. 213/23-1 and 214/9-1. CSEM Feasibility Modelling: A CSEM feasibility study was undertaken in 2008 to assess the potential for a successful CSEM acquisition on the licence. A detailed background model was produced for the overburden on the licence with representative resistivity s cross checked against adjacent wells. Unfortunately the depth of the Palaeocene reservoirs and their proximity to large volcanic bodies meant that the likelihood of a successful acquisition was not possible. As a result the contingent CSEM acquisition on Licence P1488 was not pursued.
3. Prospectivity: Two target horizons were identified on Application within Lead W-B. These included the Middle Eocene Fan and Lower Eocene/ Upper Palaeocene Balder/Flett play (Fig.2). Middle Eocene Fan: This play was targeted as a result of the Tobermory discovery (Well 214/4-1) which drilled excellent quality deep water sandstone of Middle Eocene age (Fig.3). Tobermory is a gas discovery and exhibits a classic expression of a flat spot denoting the hydrocarbon water contact. In our screening of the licence OMV and its partners saw no such amplitude anomaly within the mapped interval attributed to the Eocene Fan and thus it was concluded that the Middle Eocene in Licence P1488 was not gas bearing. As a result and given that the overburden above this target is relatively thin it was concluded that if the Strachan Fan was present in the licence and of sufficient reservoir quality then the most likely hydrocarbon phase was a severely biodegraded oil. This would be consistent with the lack of DHI due to the reduced acoustic contrast with brine. The thin overburden also increases the risk associated with top seal for the prospect. 2D seismic interpretation highlights the presence of a 4-way dip closure in Block 213/14 (Fig.4) at this level although of limited extent. Charge for this target was modelled to come from the Upper Jurassic KCF which was drilled by the adjacent 214/9-1 well. Due to the risks associated with hydrocarbon type, top seal and the limited extent of the closure it was decided that the Middle Eocene was not prospective on Licence P1488. The Geological Chance of Success was calculated as 6% for this target. Lower Eocene/ Upper Palaeocene target: A secondary target was mapped as a 4-way dip closure at Balder level (Fig.4). This map was used as a proxy for the prospectivity in the Flett interval also and was targeted as a result of the Bunnehaven Discovery (Well 214/9-1) which drilled moderate reservoir quality sandstones of a similar age. The regional Petrophysical Study and the Biostratigraphic Study allowed OMV and its partners to review the distribution of the target reservoir interval in a broader context while providing distributions to be used in volumetric calculations. A thick section of Eocene shales above this target would provide the top seal while charge is again modelled to have been provided by the Upper Jurassic KCF. The extent of this prospect was also limited. Combined with the additional uncertainties on structure due to the difficulty in interpreting directly on the target Flett interval, this prospect was also not viewed as sufficiently attractive to take forward. The Geological Chance of Success was calculated as 16% for this target. 4. Reserves Summary: No further prospectivity was recognised within the licence area.
Fig.2: Seismic Cross Section Lead W-B Fig.3: Stratigraphic Column
Fig.4: W-B Depth Maps