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Relinquishment Report for

Licence P1755

Estimates, statistics, opinions and forecasts contained in this document are based on

TOTAL’s own information and knowledge. They are provided in good faith, but, by their nature,

are based on a number of assumptions and are subjective. Readers should therefore carry out

appropriate reviews and due diligence to satisfy themselves as to all information contained in

this document including, without limitation, TOTAL’s opinions, prospect evaluations, reserve

figures, production and cost forecasts and all technical aspects of production, transmission

and other facilities.

While this information was prepared in good faith, no representation or warranty, expressed or

implied, is or will be made, and no responsibility or liability is or will be accepted by TOTAL or

any of their respective affiliates or subsidiaries, employees, officers, directors and agents as

to, or in relation to, the accuracy or completeness of this document and any liability thereof is

hereby expressly disclaimed.

In furnishing this Relinquishment Report to DECC, TOTAL undertakes no obligation to provide

any Third party recipient with access to any additional information.

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Contents 1. Licence Information ........................................................................................................................ 3

2. Licence Synopsis .............................................................................................................................. 3

3. Work Programme Summary ........................................................................................................... 5

4. Database ......................................................................................................................................... 5

5. Prospectivity Update ....................................................................................................................... 8

6. Conclusions ................................................................................................................................... 13

7. Clearance ...................................................................................................................................... 14

List of Figures

Figure 1 Location map of P1755 Blocks .................................................................................................. 3

Figure 2 P1755 Prospect Summary Map at the 26th Licence Round ...................................................... 4

Figure 3 Seismic and well database for P1755 blocks ............................................................................. 6

Figure 4 Seismic database comparison- PGS2012 Merged NVG11 data vs reprocessed Beam and

Kirchhoff PSDM data ............................................................................................................................... 7

Figure 5 N11 Depth Structure and AVO maps ......................................................................................... 9

Figure 6 NW-SE Seismic section (PSDM Beam reprocessed) and J52 Depth structure map showing

Raemoir prospect .................................................................................................................................. 10

Figure 7 WNW-ESE Seismic section (PSDM Kirchhoff reprocessed) and amplitude map showing

Ardincaple Prospect .............................................................................................................................. 11

Figure 8 NW-SE Seismic section (PSDM Kirchhoff reprocessed) and J52 Depth structure map ............ 12

Figure 9 W-E Seismic section (PSDM Beam reprocessed) and Top J36 Depth structure map showing

Skibo prospect ....................................................................................................................................... 13

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1. LICENCE INFORMATION

Licence Number: P1755

Licence Round: 26th Round licence

Licence Type: Traditional

Block Numbers: 3/25b, 3/30b, 4/21 and 4/26b

Total E&P UK Ltd confirms DECC is free to publish this report and that all third party

ownership rights have been considered and appropriately cleared for publication

purposes. The operator has fully licensed all the most recent available data including

the NVG10 and NVG11 Long Offset Broadband Geostreamer data.

2. LICENCE SYNOPSIS

The P1755 Licence comprises UKCS blocks 3/25b, 3/30b, 4/21 and 4/26b, and was

operated by Total E & P UK Limited, (TEPUK) which owned 50% of the licence with

the remaining equity held by the Maersk Oil North Sea UK Limited (Figure 1).

Figure 1 Location map of P1755 Blocks

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At the time of the 26th Round application four prospects and six leads had been

identified: N11 (prospect, 3/25b), Ardincaple (prospect, 3/25b & 3/30b), Raemoir

(prospect, 3/25b & 4/21), Sween (prospect, 4/26b), Skibo (lead, 3/20b & 4/26b),

Lochindorb (lead, 3/25b & 4/21) and Nuggets N12, N13, N14, N15 (leads, 3/25b)

(Figure 2). N11 and the other Nuggets leads were identified as 4-way dip closures of

the Eocene Frigg turbiditic sands. The Ardincaple prospect was identified at Base

Cretaceous level as NNE-SSW trending dip closure of Upper Volgian sands.

Raemoir prospect was identified as consisting of Oxfordian sands in a large N-S

trending faulted anticline, with the N-S trending normal fault separating the prospect

into Raemoir East and Raemoir West. Sween prospect included the 4/26-1A

Oxfordian gas discovery, for which two possible geological models involving either

shallow or deep marine sands were proposed. The Skibo lead included the 3/30-2A

Callovian deep marine turbidite sands gas discovery. Lochindorb lead was based on

the concept of equivalents of Rhum sands being deposited east of the Rhum

Terrace.

Figure 2 P1755 Prospect Summary Map at the 26th Licence Round

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This 26th Round Licence was awarded on 10th January 2011 as a Traditional

Seaward Production Licence (4 years). The commitments were:

To acquire 1036 km2 new PGS 3D spec. data,

To reprocess 490 km2 of anisotropic 3D PSDM (Kirchhoff and Beam),

To reprocess 100 km2 of PSTM for long offset 3D data, and

To drill a contingent well on N11 prospect.

The only commitment not fulfilled in the licence is drilling the contingent well on the

N11 prospect which lies within Block 3/25b. DECC agreed to waive the contingent

well element of the Firm Licence work programme due to the uneconomic potential

of the N11 prospect (unrisked Mean resource of 2.8Mboe).

TEPUK and Maersk relinquished the P1755 licence on January 13th 2014.

3. WORK PROGRAMME SUMMARY

The exact Work Programme agreed has been discussed in the licence synopsis

above.

4. DATABASE

TEPUK has full 3D seismic coverage across the P1755 licence. Figure 3 shows the

seismic and well database used in the P1755 licence.

In 2012, as a commitment for the P1755 license, the NVG05, NVG10 and NVG11

were reprocessed to Pre Stack Depth Migration (PSDM) using both Kirchhoff and

BEAM algorithms with the aim of improving the seismic imaging quality and the

structural interpretation (Figure 4):

The Beam PSDM main focus was to assist the structural interpretation and to

suppress maximum seismic artefact, such as multiples,

The Kirchhoff PSDM main objective was to provide an overall good seismic

image quality and at the same time better preserve the seismic amplitude

response and optimal vertical seismic resolution.

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Figure 3 Seismic and well database for P1755 blocks

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Figure 4 Seismic database comparison- PGS2012 Merged NVG11 data vs reprocessed Beam and Kirchhoff

PSDM data

0km 5km 5km0km 0km 5km

A A’ A A’ A A’PGS2012_NVG11_Merged

P1755PGS2012_NVG11_Merged

P1755_Beam PSDMPGS2012_NVG11_Merged

P1755_Kirchhoff PSDM

A

A’

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The well results on the P1755 licence and on previous licences are summarised in

the Table 1.

Table 1 P1755 Well database

5. PROSPECTIVITY UPDATE

5.1 Nuggets 11 to 15 Prospect (26th Round Application)

The Nuggets prospects had been identified from their positive AVO response as gas

accumulation in simple four-way dip closures. Reservoir thickness and quality

parameters were adopted from nearby Nugget wells. Source and charging for the

existing Nuggets field was already proven. Expected hydrocarbon was dry gas, with

no CO2. Due to limitation of seismic resolution, top of the reservoir was difficult to

resolve, thus the net pay within the closure was the main uncertainty. High resolution

reprocessing of the PGS NVG05-06 survey and subsequent computation of a new

AVO cube was planned to de-risk the prospects.

Nuggets 11 to 15 Prospect (2013 Update)

Following the 26th Round, additional seismic data (PGS-NVG05 long offset 2005 &

2006, reprocessed 2007 and PSDM data) were available and used for the

interpretation of the N11 prospect. The most recent Kirchhoff data has been

analysed through the AVO sismofacies sequence and has confirmed the presence of

the anomaly identified previously (Figure 5). GRV was calculated using two

methodologies: AVO wedge and Gradient stack. To account for the uncertainties

associated with the GOC depth estimation and structural picking, three possible

GOC’s were considered, 1785 msec, 1790msec and 1795msec. These contacts

and petrophysical parameters from local wells and nearby Frigg gas accumulations

were used to calculate the In Place and Resources figures. The fluid properties were

based on data from the Nuggets Frigg sand gas fields in the area which are a direct

analogue. The recovery factors are based on data from the Nuggets development.

Well OperatorYear of

drillingStatus Comments

4/26-1A Ranger Oil 1985 Gas discovery, P&A Gas discovery in 7m Oxfordian sands3/30-2A BP 1978 Gas shows, P&A Good gas shows in Callovian sands, no logs/cores

3/25-1 Total 1971 Gas shows, P&A Well kick in Kimmeridgian sands

3/25a-3 Total 1976 Dry, P&ANo UJ reservoir, high trip and connection gas in

Kimmeridgian shales

3/25a-4 Sovereign Oil and Gas 1985 Gas shows, P&A High pressure gas encountered in Jurassic

3/25b-5 Elf 1995 Dry, P&ANon reservoir quality Volgian and Kimmeridgian,

minor shows

3/30-1 Ranger Oil 1975 Dry, P&A Dry well

3/30b-6 Elf 1998 Dry, P&A No UJ reservoir

3/30a-5 Ranger Oil 1987 Dry, P&A Water in Eocene Frigg sands

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Figure 5 N11 Depth Structure and AVO maps

Resource and Risk Summary

Resources Mboe

Min Mode Max Mean POS

Risked Mean

Resources

N11 1.5 2.6 4.4 2.8 64% 1.8

The overall POS of N11 has been calculated at 64% with Mean Unrisked

Resources of 2.8 Mboe. The primary uncertainty is associated with the fluid contact

estimation, structural picking (trap geometry) and quality of reservoir. All other

Nuggets prospects identified at the time of application are smaller than N11, so no

further analysis has been performed on these.

5.2 Raemoir Prospect (26th Round Application)

Raemoir prospect was identified by mapping a strong seismic marker, thought to be

of Oxfordian age, defining a large N-S trending faulted anticline. The strong

amplitude Oxfordian marker was modelled as deep water turbidite sandstone

forming the main reservoir. Heather Shale and Brent Coals were considered as the

main source rocks. The main risk involved was the presence and quality of reservoir.

It was planned to undertake Beam Migration to improve data quality and use it

further for rock physics and fluid substitution studies to de-risk the prospect.

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TWTci:20msec

AVO

3/25b-4

3/25b-4

0km 1km0km 1km 0km 1km

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Raemoir Prospect (2013 Update)

Reinterpretation of the Raemoir prospect was carried out in the new reprocessed 3D

seismic. It indicated two possible scenarios, a 4-way dip closure with crest at

5990mSS and 14 km2 areal extent, and a 3-way dip closure against the main N-S

trending Raemoir fault with crest at 6050mSS (Figure 6). Both the scenarios

indicated critical risk in reservoir presence and quality due to depths > 6000mSS

where the prospects had been identified. Thus further detailed study has not been

pursued with this prospect.

Figure 6 NW-SE Seismic section (PSDM Beam reprocessed) and J52 Depth structure map showing Raemoir

prospect

5.3 Ardincaple Prospect (26th Round Application)

The Ardincaple prospect was identified as a small NNE-SSW trending dip closure at

the upper Volgian level. Due to insufficient data quality of the available 3D seismic

survey, delineation of the prospect was difficult. It was arbitrarily closed to the north

and south, dip closed to the west and fault bounded to the east. The petroleum

system and seal were proven by offset wells. The main risks were trap definition and

reservoir presence. It was planned to acquire new 3D seismic data and reprocess it

to interpret and generate seismic attributes which would help in defining the turbidite

fairways and de-risking the trap definition. Additional biostratigraphic and

sedimentological studies were planned to de-risk the reservoir presence and quality.

Ardincaple Prospect (2013 Update)

The new PSDM data was used to interpret the Upper Jurassic seismic anomaly (J63

sequence equivalent), which had been previously identified as the Ardincaple

anomaly (Figure 7). The seismic anomaly indicates the possible presence of a

turbidite deposit, sourced from the Rhum terrace to the west.

Base J63-J64 Sst

Oxfordian-J52

Callovian-J36

4-way Scenario

Crest @ 5990m

Spill @ 6260m

3-way Scenario

Crest @ 6050m

Spill @ 6730m

J62 SSt ??

4-way Scenario Prospect Extent

3-way Scenario Prospect Extent

3/25b-5

A A’

0km 1km

3/25b-5

Oxfordian-J52 Depth Map

Spill 6260m

14 km2

18.2 km2

Spill 6730m

A

A’

0km 2.5 km

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Figure 7 WNW-ESE Seismic section (PSDM Kirchhoff reprocessed) and amplitude map showing Ardincaple

Prospect

The updip seal is thought to be provided by the stratigraphic pinch out of the sand

body to the east. There is a possible zone of compromised top seal indicated by a

dim area that is interpreted as a gas chimney. The Kimmeridge Clay and the

underlying Heather Clay are thought to be the main contributors as source rock, and

dry gas similar to Rhum or 4/26-1A is expected. Further work is required to mature

this HP/HT prospect to drillable status.

5.4 Sween Prospect (26th Round Application)

With the available 3D seismic survey at the time of 26th round application, the Sween

prospect delineation was difficult. The extent of the prospect was conceptual and

driven by the thin gas-bearing Oxfordian sands in 4/26-1A well only. The south and

SE extent was delineated by the absence of sand in the 30/10-5 and 3/30-2A wells.

The eastern extent was thought to be delineated by the updip zone of erosional

truncation, and dip closure in the west. Due to uncertainty over the geological setting

of the sandstone, two models were considered, either shallow or deep marine. The

first model assumed the sand to be sourced from erosion of the crest to the east,

thus prospectivity development in the updip of the discovery well. The second model

assumed the sands to be deep water deposits, sourced from the west, and

prospectivity developed downdip of the well. The petroleum system and the seal

were proven by the well 4/26-1A gas discovery well. In order to de-risk and upgrade

the Sween prospect it was planned to acquire and reprocess 3D seismic data which

would help in the interpretation and computation of new seismic attributes. Additional

biostratigraphic and sedimentological studies of 4/26-1A and other neighbouring

Norwegian wells were planned to ascertain the age and depositional setting of the

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Oxfordian sands in the Sween prospect. The Sween prospect was considered

immature for drilling until the new 3D long-offset seismic data were available for

interpretation and delineation of the prospect boundary.

Sween Prospect (2013 Update)

The current evaluation of the Sween prospect is based on the 3D seismic PGS 2012

NVG-11 merged PSDM. The 7m Oxfordian sandstones penetrated by well 4/26-1

are below seismic resolution and detection (Figure 8). High amplitude markers are

visible down dip of the 4/26-1A well. Seismic modelling has indicated that these high

amplitudes could correspond to thick and porous turbiditic lobes. The amplitudes

indicate a sediment source from the west (East Shetland Platform).

Figure 8 NW-SE Seismic section (PSDM Kirchhoff reprocessed) and J52 Depth structure map

Further work is required to de-risk the reservoir and trap geometry and mature the

prospect.

5.5 Skibo Lead (26th Round Application)

Similar to the prospects described before, the insufficient data quality of the existing

3D seismic survey at the time of 26th licence round incurred high uncertainty in the

Skibo lead delineation. The Callovian sandstone was mapped on an intra-Jurassic

reflector, calibrated to the 9/5a-4, 9/5a-1 and 3/30-2A wells. The lead extent is

conceptual, constrained partially by well data. It was modelled as turbidite margin

facies. The northern extent is defined by the absence of Callovian sands in well 4/26-

1A, the western extent limited by the P50 gas-water contact at 5342m. The southern

boundary was arbitrary while the eastern extent was limited by the absence of

Callovian sands in the well 30/10-5. The petroleum system and the seal were

thought to be proven by the 3/30-2A well. Thus work programme similar to Sween

was proposed to de-risk and upgrade the Skibo lead.

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Skibo Lead (2013 Update)

The current evaluation of the Skibo prospect has been based on the 3D seismic

PGS 2012 NVG-11 merged PSDM. The seismic amplitudes calibrated by the 9/5a-1

indicate the main extent of the interpreted turbiditic sand fairway and its source from

the west (East Shetland Platform). At the well 9/5a-1, the Callovian sand thickness is

89m, which wedges out to ~55m at the 3/30-2A well location (Figure 9). The sand is

thought to be pinching out further to the crest towards east (below seismic

resolution). Downdip, the structural spill is observed at 5300mSS to the South, which

is considered as the maxi contact. The mini contact is based on the possible GDT

encountered at the well 3/30-2A at 5259mSS. Further work is required to mature this

HP/HT prospect.

Figure 9 W-E Seismic section (PSDM Beam reprocessed) and Top J36 Depth structure map showing Skibo

prospect

6. CONCLUSIONS

DECC agreed to waive the contingent well element of the Firm Licence work

programme due to the uneconomic potential of the N11 prospect (unrisked Mean

resource of 2.8Mboe). The new seismic data volumes generated by the Licence can

be interpreted as consistent with the potential for Jurassic turbidite reservoirs

extending into the Licence from the west. Remaining prospectivity in the Jurassic is

considered to be in the HP/HT domain and therefore requires significant further

study and time to mature to drillable status. With insufficient time remaining in the

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Initial Term of P1755, TEPUK and Maersk decided to relinquish the acreage at the

end of its First term.

7. CLEARANCE

Total E&P UK Ltd confirms DECC is free to publish this report and that all third party

ownership rights have been considered and appropriately cleared for publication

purposes.