Cambrian Rogersville Shale (Conasauga Group) in the Rome

Trough, Ky. and W. Va.:a potential new unconventional reservoir in

the Appalachian Basin

Dave Harris

John Hickman

Cortland EbleKentucky Geological Survey

University of Kentucky

2014 Eastern Unconventional Oil and Gas Symposium - November 5-7, 2014 in Lexington, Kentucky, USA http://www.euogs.org

Acknowledgements

• Rome Trough Consortium partners

– Ohio, W. Va. and Kentucky Surveys; Industry and US DOE funding

• Bob Ryder, USGS, retired

• Monte Hay, Hay Exploration

Outline of Presentation

• Rome Trough regional geology and stratigraphy

• Geochemistry and organic petrography

• New drilling activity and potential for a deep unconventional play

Rome Trough Consortium1999-2002

• Regional stratigraphic and structural interpretation• Homer field study, Elliott County• Cross sections, core descriptions, paleogeographic

maps, gross/net sandstone maps• Hydrocarbon and source rock geochemistry• 2004 Open-file report available at KGS

• Study did not consider the unconventional resource potential

Other Conasauga Production

• Limited Conasauga shale gas production, Big Canoe Creek field, Black Warrior Basin, AL

• Very different than Rome Trough

– Appalachian overthrust mushwad

• 2010 RPSEA report 07122.17.01 (Pashin and others)

Middle Cambrian Paleogeography

Ron Blakey, Colorado Plateau Geosystems, Arizona USA

Rome Trough Structural Features

StratigraphicProblem

1000 feet

0 200

GR

2 3

RHOB

0 200

GR

2 3

RHOB

0.3 -0.1

NPHI

0 200

GR

2 3

RHOB

0.3 -0.1

NPHI

4000

7000

8000

9000

1000

011

000

1200

013

000

1400

0

Scioto Co., OH

Elliott Co., KY

Johnson Co., KY

DATUM: BASE KNOX GROUP

Kentucky River

Fault Zone

Irvine-Paint

Creek Fault

Zone

• Correlations acrossgrowth faults

• Prediction ofsandstone and shaledistribution

0 200GR

2 3RHOB

0.3 -0.1NPHI

Maynardville LsNolichucky Shale

Maryville Limestone

Rogersville Shale

Rutledge Ls

Pumpkin Valley Sh

Rome Formation

Rome Fm-Middle

Shady DolomiteBasal SandstonePrecambrian

Rome Fm-Lower

8000

9000

10000

11000

12000

13000

14000

Co

na

sau

ga

Gro

up

Ro

me F

m.

Pre-Knox

Type Log

U.S. Signal

Elkhorn Coal

Johnson Co.

Kentucky

Gamma ray shaded

By log-calculated

lithologies

FEET

0 89,186

PETRA 9/30/2004 5:37:50 PM

Cross Section Index Map

North

South

SW

NE

Kentucky River Fault Zone

Irvine-Paint Creek shelf

Irvine-Paint Creek Fault Zone

RowanKY Elliott

KY

Elliott

KY MorganKY

MorganKY

Wolfe

KY

Breathitt

KY

Perry

KY

Leslie

KY

<7.63MI> <7.86MI> <7.17MI> <16.66MI> <5.91MI> <12.60MI> <11.93MI> <11.95MI>

0 200GR

2 3RHOB

0 200GR

0.3 -0.1NPHI

0 200GR

2 3RHOB

0.3 -0.1NPHI

0 200GR

2 3RHOB

0.3 -0.1NPHI

0 200GR

2 3RHOB

0 200GR

2 3RHOB

0.3 -0.1NPHI

0 200GR

0.3 -0.1NPHI

0 200GR

2 3RHOB

0.3 -0.1NPHI

0 200GR

6000

7000

7000

8000

7000

7000

8000

9000

1000

011

000

1200

0

7000

8000

9000

1000

011

000

8000

9000

8000

9000

North South

1,000 feetC

ON

AS

AU

GA

RO

ME

Grenville

Basement

PulaskiKY

JacksonKY

LeeKY

WolfeKY Johnson

KY MingoWV

LincolnWV

<42.20MI> <19.75MI> <20.67MI> <35.95MI> <30.91MI> <24.92MI>

0 200GR

2 3RHOB0.3-0.1NPHI

0 200GR

2 3RHOB0.3-0.1NPHI

0 200GR

2 3RHOB0.3-0.1NPHI

0 200GR

2 3RHOB0.3-0.1NPHI

0 200GR

2 3RHOB0.3-0.1NPHI

0 200GR

2 3RHOB

0 200GR

2 3RHOB0.3-0.1NPHI

3000

4000

5000

6000

7000

8000

9000

4000

5000

6000

7000

8000

9000

1000

0

3000

4000

5000

6000

7000

8000

9000

5000

6000

7000

8000

9000

1000

011

000

1200

0

7000

8000

9000

1000

011

000

1200

013

000

1400

0

1100

012

000

1300

014

000

1500

016

000

1700

018

000

1900

0

1100

012

000

1300

014

000

1500

016

000

1700

018

000

1900

0

HS=175000

SW NE

PETRA 10/1/2004 6:29:01 PM (cross section.CST)

1,000 feet

From Rankey and

others, 1994

Conasauga

Trangressive-

Regressive

Cycles

Eastern

Tennessee

Outcrops

Wayne

LawrenceElliott

Carter

Morgan

JohnsonMartinFEET

0 34,330

PETRA 4/25/2014 6:18:23 PM

Rome Trough Production

Inland 529 White(32 bbl/day Rome)

Exxon

1 Smith

(RGVL

core,

mud log

show)

Homer Field Carson 1 Kazee

11MMCFD

Ashland 1 Williams(1MMCFD Nolichucky Sh.)

Bruin Ex. 1 Young(PTD 15,000’)

Faults: SurfaceBasement

Ashland #1 Williams,

Johnson Co.

IP 1.05 MMCFD from fractured Nolichucky Shale @

6,200 ft

1.2BCF with 42,000 bblcondensate since 1985

Core in Nolichucky, but low TOC - not the source

2011 Production: 7.7 MMCFGwith 171 bbl condensate

51570ASHLAND EXWILLIAMS,

JOHNSONKY

0 200GR

8 18CALI

2 3RHOB

0.3 -0.1NPHI

0 10PE

Maynardville Ls

Nolichucky Sh

Maryville Ls

Rogersville Sh

7000

8000

9000

1000

0

LogDepth(ft)

LogDepth(ft)

6000 6000

7000 7000

8000 8000

9000 9000

10000 10000

11000 11000

HS=1

PETRA 4/28/2014 2:20:52 PM

0 200GR

8 18CALI

2 3RHOB

0.3 -0.1NPHI

0 10PE

Maynardville Ls

Nolichucky Sh

Maryville Ls7000

LogDepth(ft)

LogDepth(ft)

6000 6000

7000 7000

PETRA 4/28/2014 2:22:15 PM

Cambrian Source Rocks in Rome Trough

GammaRay

0Caliper8 18

Bulk Density2 3

200

DEP

TH(ft

)

EXXON 1 SMITH, J PAPI No.: 4709901572

Wayne Co., WV

TOC

0 5

Ro

gers

ville

Sh

ale

11140

11150

11160

11170

11180

11190

11200

%g/cc

TOC range 1.2–4.4%, n=4

RTC Maturity and Kerogen Data

Fluorescent (UV) Light

Liptodetrinite

Solid Bitumen Solid Bitumen

Rogersville Organic Petrography

Bitumen Reflectance11167 11178 11191 11197

Average Ro random 1.76 1.80 1.80 1.84Maximum Ro random 2.11 2.11 2.04 2.10

Minimum Ro random 1.50 1.47 1.53 1.59

Standard deviation 0.14 0.16 0.13 0.13

Observations 50.00 50.00 50.00 50.00

Calculated Ro equivalent 1.49 1.51 1.51 1.54(Ro random * 0.618) + 0.4

(Jacobs, 1989)

Indicated Tmax from

calculated Ro equiv. 480 482 482 484

Spectral Fluorescence

11167 11178 11191 11197Lambda maximum 638 648 648 645

Indicated Ro 1.35 1.45 1.45 1.45

Indicated Tmax from

Lambda max. 473 479 479 479

11125

11135

11145

11155

11165

11175

11185

11195

11205

410 420 430 440 450 460 470 480 490

De

pth

(ft

)

Tmax ( C)

Exxon Smith Rogersville Shale Tmax Data

Geomark

Humble

Weatherford

StratoChem (Noprep)

StratoChem (Solvent)

Oil Window Condensate/Wet Gas

Dry Gas

Rogersville Tmax Data Variability by Lab

min0 10 20 30 40 50

pA

0

500

1000

1500

2000

2500

FID1 A, (Z:\HP6890~1\HPCHEM\1\DATA\H01-1218\WE32682A.D)

n-C8

n-C9 n-C1

0

n-C1

1

n-C1

2 i-C

13 i-C

14 n-

C13

i-C15

n-C1

4

i-C16

n-C1

5

n-C1

6 i-C

18 n-

C17

Pr

n-C1

8 P

hy

n-C1

9

n-C2

0

n-C2

1

n-C2

2

n-C2

3

n-C2

4

n-C2

5

n-C2

6

n-C2

7

n-C2

8

n-C2

9

n-C3

0

n-C3

1

n-C3

2

n-C3

3

n-C3

4

19

17

1513

pr

ph

Bitumen Extract -Rogersville Shale

No. 1 SmithWayne Co., WV

11,161.5 ft

Oil – Source Rock Correlation15

13

17

19

ph

pr

Oil*– Maryville Limestone No. 529 WhiteBoyd Co., Ky

7,574 – 7,598 ft

*Data provided by Richard W. Beardsley

Shale Mineralogy• XRD data from the

Rogersville and Nolichucky shales

• Rogersville has:

– Less clay

– More quartz & carbonate

• Increasedbrittleness

Clay

CarbonateQFM

Nolichucky Sh(Ashland Williams)

Rogersville Sh(Exxon Smith)

Drilling depth to Rogersville

Shale:

8,000–10,000 ft eastern Kentucky

Wayne

Lawrence

GreenupMason

LewisOwen Robertson

LawrenceElliott

FayetteMontgomery

Woodford

Powell

Madison MagoffinWolfe

Jackson OwsleyKnott

Rockcastle

Letcher

Bracken

HarrisonBoyd

Fleming Carter

ScottNicholas

RowanBourbonFranklin

Bath

MorganClark

Menifee

JohnsonJessamine MartinMercer

Estill

Garrard

FloydPike

Lee

Breathitt

Boyle

Lincoln

Perry

Clay

PulaskiLaurel

Leslie

Grant

Pendleton

13,891

10,699

7,447

8,0737,875

8,339

6,800

7,9897,782

8,529

8,919

8,785

7,774

7,364

5,550

9,115

9,334

9,580

8,804

9,849

9,202

7,127

7,883

10,6778,559

8,124

10,209

5,387

8,754

FEET

0 93,975Zone: FMTOPS - ROGERSVILLE_SH [RTC] IS PRESENT

PETRA 3/24/2011 10:11:45 AM

COUNTY: PERRYOWSLEY

KNOTT

McDowell

BREATHITT

LEE

FLOYD

PIKE

COUNTY: ESTILL

WOLFE

Wyoming

MAGOFFIN

POWELLMARTIN

JOHNSON

Mingo

MENIFEE

Raleigh

Logan

MORGAN

MONTGOMERY

ELLIOTT

COUNTY: BATH

Boone

LAWRENCE

COUNTY: ROWAN LincolnWayne

CARTERFLEMING

BOYD

Putnam

MASON

Cabell

Kanawha

LEWIS

GREENUP

Lawrence

RoaneSciotoAdams Gallia

Mason

CalhounJackson

EXXON 1 SMITH, J P

Bruin Expl 1 Young, S

CABOT 50 AMHERST INDUST.

FEET

0 104,167

PETRA 9/8/2014 9:26:02 AM

Emerging Cambrian

Rogersville Shale Play 2014

Bruin Exploration #1 YoungLawrence County, Kentucky

• Vertical stratigraphic test permitted to 15,000 ft in the Rome Fm. Drilled late 2013, total depth not known.

• Oil and gas permit issued in 2014 to test well

• Logs, samples from strat test held confidential for 5 years; completion report to be released February 28, 2015.

• Well currently shut-in

Cabot #50 Amherst Industries,Putnam County, WV

• New permit for 14,000 ft gas well to test Rogersville Shale

• Location along strike with Exxon Smith and Bruin wells

Rogersville Shale Summary

• 5,000 to 10,000 ft deep in eastern Kentucky

• 2–4.8% TOC in parts, and has generated gas & condensate

• Up to 1,100 ft thick in Kentucky, but limited to deeper parts of Rome Trough- and not all is organic rich

• Active leasing in several eastern Kentucky counties; expecting new permits before year-end

Conclusions

• Viable petroleum system exists in Rome Trough. Rogersville Shale (Conasauga Gp) is primary source interval.

• Conasauga stratigraphic framework for 3-state area is key to predicting source rock distribution

• Rogersville unconventional play should be possible in higher TOC areas, but need to consider depth and economics.

Conclusions (cont.)

• Source rock quality in Rogersville is variable–not a uniform rich source. Controls on TOC distribution not well understood.

• Shallower, less mature areas of RT likely more liquids-prone than deeper areas in W. Va.

• Structure data (seismic, gravity, magnetics) will be a key tool in developing the Rogersville

From Ryder and others, 2005USGS open file report

Mud Log ShowRogersville

Shale Interval,

Exxon #1 Smith

Wayne County, WV