P1302 relinquishment report 2009 - OGA · Dana Petroleum (BVUK) Limited Relinquishment Report P.1302 4. Prospectivity Only one lead was identified within block 16/27c at top Britannia

Dana Petroleum (BVUK) Limited Relinquishment Report P.1302

UKCS Licence P.1302

Block 16/27c

Relinquishment Report

November 2009


P.1302 Block 16/27c Relinquishment report

Contents

1 Introduction

2 Synopsis

3 Exploration Activity

4 Prospectivity

5 Resource Summary

6 Clearance

List of Figures

1 P.1302 Location map

2 Depth map top Britannia sandstone

3 Seismic line through KL lead

4 Britannia sandstone reservoir section

5 Resource and Risk summary


1. Introduction

Licence number P.1302

Licence Round 23rd

Licence Type Traditional

Block number 16/27c

Operator Dana Petroleum (BVUK) Limited

Partners GDF SUEZ E&P UK Ltd

Work programme Summary:

Firm commitment The licensee shall reprocess 150km

2 of 3D seismic data.

The licensee shall carry out a biostratigraphic study.

Drill or drop commitment The licensee shall drill one well to 4540m TVDSS, or 90m into the Upper Jurassic, or

through 30m of pre-Jurassic strata, whichever is the shallower.

P 1302 block 16/27c

Kl lead

16/27 merge 3D

Fig.1 Location of P 1302 and Kl Prospect


2. Synopsis

The licence was initially awarded to Bow Valley Petroleum (UK) Ltd in 2005, for a 4

year initial term. GDF SUEZ E&P UK Ltd farmed into the licence in December

2007. Dana Petroleum purchased all of the UK assets of Bow Valley Petroleum in

April 2009.

Bow Valley purchased a 3D seismic data set (16/27 merge) and a number of long

offset 2D lines (TGS-Nopec NSR) to evaluate the acreage.

The block is situated close to the triple junction of the Viking Graben, Witch Ground

Graben and Central Graben, and the locality has proven to be prolific in terms of

hydrocarbon discoveries at a variety of stratigraphic levels:

Eocene Alba sandstones

Paleocene Forties, Balmoral and Andrew sandstones

Cretaceous Britannia sandstones (Britannia field)

Jurassic Glamis sandstones (Glamis field)

Devonian Old Red Sandstone (Stirling field)

Only part of one small lead (16/27-KL) has been identified on the block. The

volumes for 16/27-KL are sub economic, and there is a high risk on reservoir quality

as the reservoir has low permeability in adjacent wells. Consequently the licence is to

be relinquished at the end of the first term.


3. Exploration Activity

Seismic:

The seismic database purchased by Bow Valley was interpreted from top Paleocene

(Balder) to base Zechstein level. A number of 2D long offset lines were available,

plus angle stacks over the 16/27 merge dataset.

Wells:

No wells were drilled by the consortium, but a large database of released wells was

used for petrophysical evaluation of reservoir properties, particularly for Paleocene

and Lower Cretaceous sandstones.


4. Prospectivity

Only one lead was identified within block 16/27c at top Britannia sandstone level.

The trapping geometry consists of a pinch-out of the reservoir on to the Fladen

Ground Spur, and dip closure to the south. Top seal is provided by Sola and Rodby

Formation marls and mudstones, with Kimmeridge Clay or tight Devonian Old Red

sandstone providing a base seal.

Britannia sandstone Depth

Untested Kl lead

510 Gross thickness Britannia sandstone (ft)W

Fig.2 Depth Map top Britannia sandstone

Zone of reservoir pinch out (sands absent to north)

NS

BCU

Top Britannia sst

KL Lead

KL Lead seismic section

2

000

NN

SR

04-3

2354

NN

SR

04-3

2354

12400

13000

13200

13000

10000

32Y

1A

510.0

2

969.2

3

719.0

6

498.2

7

335.4

8

4Z

643.8

5

803.1

6

614.6

6

A

A

395200 400200 405200

6434200

6439200

6444200

6449200

395200 400200 405200X/Y:

Meters

6434200

6439200

6444200

6449200

N

Fig.3 Seismic line through Kl lead

Core and test data (Table 1) indicate that only one well (16/27a- 6) had effective

reservoir within the Britannia sandstone in the immediate area of Block 16/27c.


Britannia sst 16/27a-6 16/27-4z 16/27-7 16/27a-3

porosity % 11.00 12.30 10.7 12.3

Kh mean mD 2.930 0.970 0.422 1.803

geomean mD 0.500 0.390 0.278 0.554

harmean mD 0.051 0.150 0.090 0.181

DST

gas mmcfd 12.880 dry dry 0.200

oil bopd

condensate bcpd 986.000

Table 1 Core and Test Data Britannia sandstones

GR0.00 100

CALI6.00 16.0

ILD1.00 100

DT140 40.0

RHOB1.95 2.95

NPHI45.0 -15.0

KAH100 0.01

13

000

Depth = 12763 to 12825Oil Volume and Unit=986 BCPD

Gas Volume and Unit=12.88 mmcfd

Depth = 12866 to 12899Oil Volume and Unit=274 BCPD

Depth = 12995 to 13124

Water Volume and Unit=6 BWPD

Depth = 13189 to 13250Water Volume and Unit=48.7 BWPD

BRIT

Valhall

BRIT

16/27a-6

Figure 4 Britannia sandstone reservoir section


5. Resource Summary

Resources have been calculated using a gas condensate (similar to Britannia Field) as

the expected fluid. The unrisked mean reward is estimated to be 2.37 MBOE, for the

entire lead, of which around 20% is situated on block. The geological chance of

success is estimated to be 18%, with reservoir quality/ well deliverability being the

main risk factor

5.0% 90.0% 5.0%

5.0% 90.3% 4.7%

1.754 3.109

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Fit Comparison for Resources / expectedRiskLognorm(2.3836,0.41126,RiskShift(-0.018467))

Input

M inimum 1.2154

Maximum 4.2538

Mean 2.3651

Std Dev 0.4107

V alues 10000

Lognorm

Minimum -0.0185

Maximum +8

Mean 2.3651

Std Dev 0.4113

0.50

0.47

0.42

0.41

0.27

0.21

0.04

0.04

0.03

-0.05

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

Coefficient Value

Gas shrinkage factor Fg / expected

CGR / expected

liquid rec / expected

1/Bg / expected

porosity / expected

wet gas recovery factor / expected

N/G / expected

GRV / expected

1-Sw / expected

Resources / expectedCorrelation Coefficients (Spearman Rank)

16/27c-KL LeadNorth Kopervik expected mini mode maxi

ft.ss spill point 12750 12775 12800

km2area 2.42

106m

3GRV 70.54 55.92 70.54 87.64

N/G 0.52 0.40 0.52 0.60

porosity 0.16 0.14 0.16 0.18

1-Sw 0.51 0.40 0.51 0.64

1/Bg 250 240 250 260

109m

3WGIIP 0.74 0.30 0.74 1.57

bcf WGIIP 26.17 10.62 26.17 55.62

wet gas recovery factor 0.50 0.40 0.50 0.60

bcf wet gas recovered 13.09 4.25 13.09 33.37

Gas shrinkage factor Fg 0.96 0.95 0.96 0.96

bcf Dry gas reserves 12.50 4.03 12.50 32.04bbls/mmcf CGR 65 40 65 80

liquid rec 0.25 0.20 0.25 0.30

106 bbl condensate reserves 0.213 0.034 0.213 0.801

MBOE Resources 2.367 0.730 2.367 6.325

at risk Mean P90 P50 P10

bcf WGIIP 26.19 21.16 25.90 31.70

bcf Dry gas 12.51 9.85 12.35 15.45

106

bbl liquids 0.21 0.15 0.20 0.27MBOE Resources 2.37 1.87 2.33 2.92

Charge source 1.00 Mature KCF nearby

migration 1.00 gas to west

reservoir presence 0.90 imaged on seismic

quality 0.35 low perms in adjacent wells

Trap geometry 0.80 uncertainty on pinch ot line

seal 0.70 Sola & flounder top sealCOS 0.18

Fig 5. Resource and Risk Summary


6. Clearance

Dana Petroleum (BVUK) Limited and GDF SUEZ E&P UK Ltd confirm that DECC

is free to publish the content of this report.

Documents

P1302 relinquishment report 2009 - OGA · Dana Petroleum (BVUK) Limited Relinquishment Report P.1302 4. Prospectivity Only one lead was identified within block 16/27c at top Britannia