Relinquishment Report - Oil and Gas Authority · 2015-08-06 · Inner Moray Firth meeting the licence obligations (Figure 2). This survey, PT06GB0001 (3D), is lodged with DEAL and

This is a controlled document. Any copies made from this document, printed or electronic, in part or in whole, shall be deemed to be

uncontrolled and therefore not subject to further review, revision or approval.

Relinquishment

Report

Licence P1266

Blocks 12/18, 19b, 20b & 24

Relinquishment Report for 12/18, 19b, 20b & 24, P1266

P1266 Page 2 of 26 Dana Petroleum plc, King’s Close, 62 Huntly Street, Aberdeen AB10 1RS Tel: +44 1224 616 000 Fax: +44 1224 616 001

Table of Contents

1 Licence Information 4

2 Licence Synopsis 4

3 Work Programme Summary 6

4 Database 6

5 Prospectivity Update 9

6 Further technical work undertaken 24

7 Resource & Risk Summary 25

8 Conclusions 25

9 Clearance 26



Table of Figures Figure 1: Location map of licence P1266...................................................................................................... 5

Figure 2: Seismic and well database for licence P1266 ............................................................................... 7

Figure 3: 12/20b-1 well log ............................................................................................................................ 8

Figure 4: Stratigraphic summary of the Moray Firth ..................................................................................... 9

Figure 5: Map of recognised prospects & leads from 2012 review ............................................................. 10

Figure 6: Gemini Downdip prospect on TWT map at top KCF level ........................................................... 11

Figure 7: North-South cross section through Gemini Downdip................................................................... 12

Figure 8: West-East cross section through Gemini Downdip ..................................................................... 12

Figure 9: Charles prospect on TWT map at top KCF level ......................................................................... 13

Figure 10: West-East cross section through Charles ................................................................................. 14

Figure 11: North-South cross section through Charles ............................................................................... 14

Figure 12: Jenna prospect on TWT map at top KCF level .......................................................................... 15

Figure 13: North-South cross section through Jenna ................................................................................. 16

Figure 14: West-East cross section through Jenna .................................................................................... 16

Figure 15: Well 12/23-3A ............................................................................................................................ 17

Figure 16: Kate prospect on TWT map at intra-EK3a level ........................................................................ 18

Figure 17: Southeast-Northwest cross section through Kate ..................................................................... 19

Figure 18: Vanna lead on TWT map at top KCF level ................................................................................ 20

Figure 19: South-North cross section through Vanna ................................................................................. 21

Figure 20: West-East cross section through Vanna ................................................................................... 21

Figure 21: Camilla lead on TWT map at intra-Coracle Sandstone level ..................................................... 22

Figure 22: North-South cross section through Camilla ............................................................................... 23

Figure 23: West-East cross section through Camilla .................................................................................. 23

Table of Tables Table 1: Exploration well database for licence P1266 .................................................................................. 6

Table 2: STOIIP volumes for P1266 prospects & leads ............................................................................. 24

Table 3: Resource & Risk Summary for P1266 .......................................................................................... 25



1 Licence Information

Licence Number: P1266

Licence Round: 23rd

Award Date: 22nd December 2005

Licence Type: Traditional

Block Numbers: 12/18, 19b, 20b & 24

Operator & Equity: Dana Petroleum (E&P) Limited 85%

Partners & Equity: First Oil PLC - 10%, Trap Oil Group PLC - 5%

Dana Petroleum (E&P) Limited confirms that the DECC is free to publish this Report and that all

3rd party ownership rights (on any contained data and/or interpretations) have been considered

and appropriately cleared for publication purposes.

2 Licence Synopsis

Licence P1266 (blocks 12/18, 12/19b, 12/20b and 12/24) was awarded to Petro-Canada UK

Limited and Reach Exploration (North Sea) Limited as a Traditional Seaward Production

Licence in the 23rd Licensing Round on 22nd December 2005 (Figure 1). Petro-Canada was

Operator and had a 90% working interest (WI) and Reach a 10% carried interest. On 15th

August 2006 Petro-Canada UK Limited divested a 40% WI to Samson North Sea Limited. In

2007, Reach Exploration (North Sea) Limited transferred 5% of their interest to Reach



Exploration (UK) Limited and divested a 5% WI to First Oil Expro Limited. In 2008 Samson

North Sea Limited divested a 5% WI to First Oil Expro Limited. All obligations were met during

the Initial Term and the statutory 50% areal relinquishment was completed in 2009 with blocks

12/19b, 12/20b and part of 12/24, now known as 12/24a, being retained (Figure1). In 2009,

Petro-Canada was acquired by Suncor and on August 24th 2010 Samson’s equity was

transferred to Suncor. On September 7th 2010 Dana Petroleum purchased a portfolio of Petro-

Canada UK (Suncor) assets including P1266.

A 2012 prospectivity review of P1266 resulted in 6 previously identified opportunities being

reclassified into four prospects and two leads. No new prospectivity was identified.

Figure 1: Location map of licence P1266



3 Work Programme Summary

The original work programme was to shoot 506 km2 of 3D seismic data, carry out special core

analysis and rock property work and drill one well to a depth of 1500m or into the Devonian,

whichever is the shallower. All licence obligations were met by Petro-Canada in the initial term

and are summarised below:

1,775Km2 of 3D seismic data was acquired in the Inner Moray Firth

12/20b-1 was drilled to -4453 ft TVDSS but failed to encounter Jurassic sandstones

SCAL and rock property studies were undertaken

4 Database

Five wells have been drilled in the licence area including 12/20b-1 which met the well obligation

in the initial term of the licence. The nearest field is Captain, due east of the licence area, and

there are a number of exploration wells immediately to the east and west (Figure 2, Table 1).

Well Year Operator Comments

12/18-1 1990 Conoco P&A Dry

12/24-1 1975 Petroswede AB P&A Dry

12/24-2 1981 Occidental P&A dry (weak oil shows)

12/24-3 1987 Occidental P&A Dry

12/25-1 1991 Fina P&A Dry

12/20b-1 2007 PetroCanada P&A

Table 1: Exploration well database for licence P1266



In 2006, the original Operator, Petro-Canada, acquired 1,775Km2 of 3D seismic data in the

Inner Moray Firth meeting the licence obligations (Figure 2). This survey, PT06GB0001 (3D), is

lodged with DEAL and was shot by WesternGeco as a Proprietary Group-Shoot along with

Nexen and Ithaca.

Figure 2: Seismic and well database for licence P1266



Well 12/20b-1 was drilled in 2007 targeting the Upper Jurassic Gemini prospect. However, the

well did not penetrate the target sands and the sands penetrated in the Lower Cretaceous and

Jurassic were dry.

Figure 3: 12/20b-1 well log

12/20b-1Operator : PetroCanada

Coordinates : 551189.38, 6467561.00

Scale : 1:1500

Status : Plugged and abandoned

MD

(ft)

1550

1600

1650

1700

1750

1800

1850

1900

1950

2000

2050

2100

2150

2200

2250

2300

2350

2400

2450

2500

2550

2600

2650

2700

2750

2800

2850

2900

2950

3000

3050

3100

3150

Corrected gamma

0 240API

AC

240 40us/ftFo

rma

tio

n

? HI DRA F ORM AT I ON

RØDBY

FO

RM

AT

ION

CA

RR

AC

K F

OR

MA

TIO

NV

ALH

ALL F

OR

MA

TIO

NK

IMM

ER

IDG

E C

LA

Y

FO

RM

AT

ION

HE

AT

HE

R

FO

RM

AT

ION

sensu lato

UP

PA

T

FO

RM

AT

ION

BEAT RI CE F ORM AT I ON

GOL SPI E F OR M AT I ON

HE

RO

N

GR

OU

P

Me

mb

er

UNIT R3

UNIT R2

UN

IT

R1

EK

6

CA

PT

AIN

SA

ND

ST

ON

E

ME

MB

ER

EK

5b

CA

PT

AIN

SA

ND

ST

ON

E

ME

MB

ER

UNIT V7

UNIT V6

UNIT V5

UN

IT V

4U

NIT

V3

EK

3b C

OR

AC

LE

SA

ND

ST

ON

E

ME

MB

ER

UN

IT V

2

EK3 a CORACL E SANDST ONE

M EM BER

UNIT V2

AL

NE

SS

SP

ICU

LIT

E

ME

MB

ER

Ag

e

CENOMANIAN

LATE ALBIAN

MID

DLE

ALB

IAN

EA

RLY

ALB

IAN

LA

TE

AP

TIA

NE

AR

LY

AP

TIA

NLA

TE

BA

RR

EM

IAN

EA

RLY

BA

RR

EM

IAN

?HAUTERIVIAN

LATE RYAZANIAN

EARL Y RYAZ ANI AN

LATE VOLGIAN

l a te s t M IDDL E VOL GI AN

MIDDLE VOLGIAN

EARLY -

MID VOLG

KIMM - EARLYVOLGIAN

earlyKIMMERIDGIAN -

LATEOXFORDIAN

L AT E OXF ORDI AN

MIDDLEOXFORDIAN

EARL Y OXF ORDI AN

late CALLOVIAN

TV

Dss (

ft)

1450

1500

1550

1600

1650

1700

1750

1800

1850

1900

1950

2000

2050

2100

2150

2200

2250

2300

2350

2400

2450

2500

2550

2600

2650

2700

2750

2800

2850

2900

2950

3000

3050

3100

RLA5

0.2 20ohmm

RLA1

0.2 20ohmm



5 Prospectivity Update

The primary source rock is the Kimmeridge Clay Formation (KCF) (Figure 4) which is immature

in the Inner Moray Firth Basin. Prospectivity relies on long distance migration of hydrocarbons

from deeper parts of the basin to the east, from either the Witch Ground Graben or the northern

part of the Central Graben.

The primary reservoirs in the licence area are Lower Cretaceous turbidite sandstones,

specifically the Carrack Formation Captain Sandstone Member and Valhall Formation Coracle

and Punt Sandstone members (Figure 4). Jurassic sandstones are also present, specifically

the Kimmeridge Clay Formation Burns Sandstone Member and Heather Formation Ross

Sandstone Member. The oldest intervals with recognised reservoir potential are sandstones of

Permian and Devonian age. These have been hydrocarbon-bearing in the Ross Field and Dee

Discovery of the Inner Moray Firth.

Figure 4: Stratigraphic summary of the Moray Firth



Upper Jurassic reservoirs are sealed by overlying Jurassic (Heather and KCF) and Lower

Cretaceous mudstones however presence of overlying Lower Cretaceous reservoirs may

increase seal risk. Lower Cretaceous reservoirs are sealed by overlying Lower & Upper

Cretaceous mudstones and chalk respectively.

The majority of the trapping mechanisms are structural, either tilted fault blocks or fault-induced

rollover anticlines. Stratigraphic trapping is also possible.

The 2012 prospectivity review of P1266 resulted in 6 previously identified opportunities being

reclassified into four prospects and two leads (Figure 5). No new prospectivity was identified.

Figure 5: Map of recognised prospects & leads from 2012 review



Gemini Downdip

The Gemini Downdip prospect targets Upper Jurassic Burns sandstones prognosed to pinch out

towards the crestal southern margin of the Smith Bank High. Pinch out is predicted since they

are not present in well 12/20b-1 (Figures 6, 7 & 8). If developed down dip of 12/20b-1, the

sandstones could form a largely stratigraphic trap with some elements of lateral fault seal and

structural dip. If the sandstones are more widely developed, both lateral and up-dip

stratigraphic trapping would be required.

The key risks are presence of robust lateral seals, either stratigraphic pinch-out or from faults,

and presence of reservoir sands. The acoustic impedance values for sands and shales are

very similar at the depth of the prospect and so cannot be discriminated on the available

seismic data, making prospect definition a challenge. Current STOIIP volumes for Gemini

Downdip are presented in Table 2.

Figure 6: Gemini Downdip prospect on TWT map at top KCF level



Figure 7: North-South cross section through Gemini Downdip

Figure 8: West-East cross section through Gemini Downdip

Gemini

Downdip

Gemini Downdip



Charles

The Charles prospect is an Upper Jurassic fault-dip closure on the up thrown side of the Smith

Bank Fault and may involve some stratigraphic pinch-out to the south close to the fault (Figures

9, 10 & 11). The key risks are fault seal, since the bounding Smith Bank Fault reaches the

surface, as well as presence of reservoir sands. The acoustic impedance values for sands and

shales are very similar at the depth of the prospect and so cannot be discriminated on the

available seismic data, making prospect definition a challenge. Current STOIIP volumes for

Charles are presented in Table 2.

Figure 9: Charles prospect on TWT map at top KCF level



Figure 10: West-East cross section through Charles

Figure 11: North-South cross section through Charles

Charles

Charles



Jenna

The Jenna prospect is a fault controlled rollover anticline (Figure 12, 13 & 14) targeting possible

attic volume in Upper Jurassic Burns Sandstone on the structure on which 12/23-3a was drilled

(Figure 15). The eastern part of the closure is bounded by a fault to the north; the western part

by faults to the south and west (Smith Bank Fault). Fault leakage is a critical risk since

bounding faults reach the surface. Current STOIIP volumes for Jenna are presented in Table 2.

Figure 12: Jenna prospect on TWT map at top KCF level



Figure 13: North-South cross section through Jenna

Figure 14: West-East cross section through Jenna

Jenna

Jenna



Figure 15: Well 12/23-3A



Kate

The Kate prospect targets Lower Cretaceous sandstones in a small fault-controlled rollover

anticline bounded to the north by the Smith Bank Fault (Figures 16 & 17). Top seal at KCF level

is unlikely to be present due to a predominance of sand close to the downthrown side of the

Smith Bank Fault, so a shallower seal is required. Charge and migration is a critical risk since

there are no shows in the Lower Cretaceous in nearby wells. Fault leakage is also a critical risk

since the Smith Bank Fault reaches the surface. Current STOIIP volumes for Kate are

presented in Table 2.

Figure 16: Kate prospect on TWT map at intra-EK3a level



Figure 17: Southeast-Northwest cross section through Kate

Kate



Vanna

The Vanna lead targets Lower Cretaceous or Upper Jurassic sandstones in a fault controlled

rollover anticline (Figures 18, 19 & 20). Fault seal is a critical risk since all faults reach the

surface, as is the top seal risk shared with the Kate Lead due to the abundance of sands in the

Lower Cretaceous. Current STOIIP volumes for Vanna are presented in Table 2.

Figure 18: Vanna lead on TWT map at top KCF level



Figure 19: South-North cross section through Vanna

Figure 20: West-East cross section through Vanna

S N

EK4

Flounder

Top KCF

EW

Heather

Ross-Alness

Permian

EK4

Flounder

Top KCF

Top Chalk

Base Chalk

Vanna

Vanna



Camilla

The Camilla lead is a small, Lower Cretaceous level fault-dip trap on the downthrown side of the

main Smith Bank Fault, possibly with a small amount of fault-independent closure (Figure 21, 22

& 23). It is poorly defined on seismic and geological reviews suggest very low GRV’s may be

encountered in the Lower Cretaceous interval across the lead. Volumes have not calculated

due to its size and poor definition.

Figure 21: Camilla lead on TWT map at intra-Coracle Sandstone level



Figure 22: North-South cross section through Camilla

Figure 23: West-East cross section through Camilla

Camilla

Camilla



Prospect/Lead Name STOIIP (P50) MMbbls

Gemini Downdip 90.86

Charles 31.98

Jenna 22.22

Kate 9.3

Vanna 73.21

Camilla not calculated

Table 2: STOIIP volumes for P1266 prospects & leads

6 Further technical work undertaken

Dana Petroleum has carried out a regional geological, geophysical and petroleum system

reinterpretation of the Inner Moray Firth area. The conclusions of these studies indicate limited

prospectivity remains in blocks 12/18, 12/19b, 12/20b and 12/24.



7 Resource & Risk Summary

Table 3 summarises the resources and risk on all the leads identified on licence P1266.

Resource and Risk Summary

Prospect Lead

Discovery Name

P L D

Stratigraphic Level

Unrisked recoverable resources Geological Chance of

Success

Risked P50

Mmboe

Oil MMbbls Gas BCF

Low Central

P50 High Low Central High

Charles P U. Jurassic Burns Sst

4.87

2.8% 0.1

Gemini Downdip

P U. Jurassic Burns Sst

13.86

7.2% 1

Jenna P U. Jurassic Burns Sst

4.06 7.2% 0.3

Kate P L.Cret sands 1.57 3.6% 0.06

Vanna L U. Jurassic

Burns Sst or Punt Sst

12.21 2.7% 0.3

Table 3: Resource & Risk Summary for P1266

8 Conclusions

Having met all obligations of the original work programme without making a commercial

hydrocarbon discovery, and with the limited remaining prospectivity recognised in the licensed

area, there was no viable basis on which to continue the Licence into a Production phase. As a

result the Partnership relinquished the Licence in full, effective 21st December 2012.



9 Clearance

Dana Petroleum (E&P) Limited confirms that the DECC is free to publish this Report and that all

3rd party ownership rights (on any contained data and/or interpretations) have been considered

and appropriately cleared for publication purposes.

Documents

Relinquishment Report - Oil and Gas Authority · 2015-08-06 · Inner Moray Firth meeting the licence obligations (Figure 2). This survey, PT06GB0001 (3D), is lodged with DEAL and