Standard Operating Procedures

Well Snapshot This is the front-end quick view of the well. Needless to say, it should be filled out with care, since mistakes or errors are much easier to spot. The following section details each term used in the Well Snapshot and the conventions and rules that must be followed with respect to each. Well ID is the unique number assigned to each well. Well Name is usually given by the partners involved in the well. However, in the case that the well is unnamed (e.g., An appraisal well will be drilled in the block), this is the naming convention:

For wildcat/exploration wells: WC_YEAR_NUMBER. (e.g., WC_2014_1) o In the case of multiple wells (e.g., Three exploration wells are planned on

the block in 2014): WC_2014_1, WC_2014_2, WC_2014_3 If the unnamed wells are subsequently named in a later document,

change the name of that well to the given name and retain the other names. For example, in the above example, if WC_2014_1 is later named as Orca-1 by the partners, then the other two wells would still be named WC_2014_2 and WC_2014_2 until they are also named by the partners.

For appraisal/development/production wells: AP_YEAR_NUMBER. (e.g., AP_2015_1)

Wellbore Status depends on whether or not the well has been drilled; and if it is drilled, whether or not it was successful.

Planned wells are yet to be drilled1 o Planned Wildcat and Planned Appraisal o There is a third category called Planned (Status Unknown) which is mainly

used at the end of the year. This category includes wells that were planned at the beginning of the year but have not been spoken about since then.

In Progress wells are currently being drilled o In Progress Wildcat and In Progress Appraisal

Dry well: Drilling has been completed, and the well has been found to contain no hydrocarbons.

o Drilled Dry (useable for wildcats and appraisals)

Non-commercial discovery: The well has discovered hydrocarbons but in a non-commercial quantity

o Drilled Discovery (Non-Commercial) for wildcats o Use Drilled Appraisal even for appraisal wells with non-commercial

finds, as these wells technically do appraise the discovery by proving hydrocarbons.

Successful well: Drilling has been completed, and the well has found hydrocarbons

o Drilled Discovery for wildcats, Drilled Appraisal for appraisal wells.

1 Sanity check to be performed at the beginning of each quarter. E.g., a well with a spud date in Q1-2014 cannot be Planned even in Q2-2014

Stratigraphic wells are drilled to understand the layers of rocks in a region. They are usually not drilled with the intention of encountering hydrocarbons

Suspended wells: These wells have been prematurely shut down due to unexpected pressure kicks, safety concerns, geopolitical situations, etc

o This category does NOT include wells that have been suspended for future production, etc.2

Wellbore Type relates to the intention of the well.

Wildcat relates to those drilled outside of and not in the vicinity of known oil or gas fields or those drilled purely for exploratory (information gathering) purposes in a new area (eg, stratigraphic)

Appraisal relates to those drilled to assess characteristics (such as areal extent) of a proven hydrocarbon accumulation

Asset Name relates to the block, concession or lease in which the well is located. There are certain naming conventions:

For Discovery wildcat wells, the Asset name will be the same as the Block/License/Permit name. E.g., Independence-1X in Block CI-401 (Independence) is WRONG.

For appraisal wells, write the block name and in brackets the name of the discovery being appraised

o Example 1: The Independence-2 well located in Block CI-401 (Independence) is a well appraising the Independence discovery in Block CI-401

o Example 2: Unnamed well AP_2014_1 located in Block CI-401 (Independence) is a well appraising the Independence discovery in Block CI-401

Asset Type relates to the designation of the asset

License: Wildcat wells

Field: Appraisal wells and historical discovery wells Operator is the partner designated as the operator for the well. This company would be responsible for activities such as filing for environmental permits, renting a rig, hiring oilfield services, etc.3 Ownership relates to the split-up of the ownership between the partners for the well.4 The ownership usually relates to the proportion of costs paid by the different companies as well as the proportion of future revenue from the well/field. Country relates to the country in which the well is located. Continent relates to the continent where the well is located. Check Country-Continent mapping spreadsheet. Basin refers to the geological basin in which the well is located.

2 Technically, these wells are suspended, but this is not the definition that we follow. 3 In rare cases, a partner is designated as the operator for a well but not the asset. In such cases, the Operator and the Ownership (see below) should be filled out according to the well. 4 Same as 3

Water Depth Category is based on the maximum depth of water in which the Asset is located.

Shelf: 125m and 1,500m.

Spud Quarter relates to the quarter in which the well is spud.5 DO NOT take the quarter of the completion date.

On some occasions, we may be expected to estimate the spud quarter. Drilling Days refers to the number of days taken from the spud of the well to reaching the total depth (TD). It may be given by the company or calculated if the spud date and TD date are known.6 Discovery Year

For successful wildcat wells: This is the year that the well was declared to the Government bodies that it is a discovery; this usually happens after the well testing operations

In many cases, the year of spud and the year of discovery are not the same.

For appraisal wells: This is the year of the original discovery, which the appraisal well is appraising.

For all other categories: This field will be blank. Water Depth relates to the water depth of the offshore well.7

5 If the well is to be drilled during an unspecified portion of a particular year (e.g., the appraisal well will be drilled in 2015), set the spud quarter to Q4 of that year. 6 Do not put expected drilling days value in this field. 7 It is always 0 for Land wells.

Total Depth relates to the actual depth of the well. For offshore wells, this relates to the actual depth below the Rotary Table or Kelly Bushing, that is, it includes water depth.8 Well Cost relates to the cost of drilling and completing the well. If not reported, the well cost estimate must be entered from the Well Cost Estimation sheet. Reported well costs may be directly reported (eg, this well is expected to cost $50 million), or they may be derived from known well costs in that asset or area.

Well Cost ($ MM)

Well Cost Type

Well Cost Comments

X Estimated Estimated based on rig rates, drilling days and completion costs

X Reported

X Reported Comments could include: Based on previous well costs in the asset Based on conventional well costs in the area Based on the reported range of possible well costs

Block ID (Internal) should be the same for all wells in the asset. This feature is used to fill out the Wells in the Block table.

8 Do not put planned depth values in this field.

If the Asset Name is generic, eg, Block 1 or Area A, ensure that the Block ID is unique enough. For example, you can make it @Block1Morocco

Drilling Facility Name relates to the name of the drilling rig. Drilling Facility Type relates to the type of the drilling rig.

Jack-ups are usually used on shelf wells

Platforms are usually used for near-field exploration wells, ie, exploration wells close to a known field

Semi-submersible rigs are usually used for deep water operations

Drillships are usually used for ultra deepwater operations

In-land Barges are used for drilling on lakes, rivers, etc (water bodies on land)

Land Rigs are used on land

Longitude and Latitude can be obtained directly from Government sources (eg, in Norway, Canada, US, etc), or they may be estimated from maps of the well, asset or region. The former category is called Actual while the latter category is called Map Estimation.

Note: Latitude and Longitude must be in decimal format Note: Decimals cannot extend beyond six digits after the decimal point.

Well Summary Paragraph 1: Overview

Asset

Basin

Country

Offshore/Onshore

Award date, Awardees

Work commitments, License extensions

Asset area, Asset water depth range Paragraph 2: M&A

Track each ownership change from the Awardees mentioned in Paragraph 1 to the final Ownership structure in chronological order

Mention any deals-in-play after the current ownership structure

Links for these should be given in the M&A section

Paragraph 3: Exploration and Appraisal Activity

Past events if available, including historical wells (e.g., in 1980s/1990s), historical seismic data, etc

Activity since the time of award in chronological order including o Seismic: 2D/3D o Drilling activity o Well tests

Paragraph 4: Well Information

Water Depth, Wellbore Depth

Drilling Facility Name, Drilling Facility Type

Spud Quarter Paragraph 5 (Optional)

If the well is part of a larger project, details about the project start-up date etc can be mentioned

If there are unusual geopolitical factors prevalent in that country or region, these should be mentioned. E.g., force majeure, disputed areas.

These paragraphs are static. Subsequent updates about the well should be mentioned below these paragraphs.

Resources Wellbore Contents relates to the contents of drilled wells.

Wellbore Status Wellbore Type

Wellbore Contents

Drilled Appraisal Appraisal Oil; Gas; Oil/Gas; Gas/Condensate; Oil/Gas/Condensate; Hydrocarbons; Shows Oil; Shows Gas; Shows Oil/Gas; Shows Gas/Condensate; Shows Hydrocarbons

Drilled Discovery

Wildcat Oil; Gas; Oil/Gas; Gas/Condensate; Oil/Gas/Condensate; Hydrocarbons; Shows Oil; Shows Gas; Shows Oil/Gas; Shows Gas/Condensate; Shows Hydrocarbons

Drilled Discovery (Non-Commercial)

Wildcat Shows Oil; Shows Gas; Shows Oil/Gas; Shows Gas/Condensate; Shows Hydrocarbons

Drilled Dry Wildcat OR Appraisal

Dry; Water; CO2

Drilled Testing Wildcat OR Appraisal

Oil; Gas; Oil/Gas; Gas/Condensate; Oil/Gas/Condensate; Hydrocarbons; Shows Oil; Shows Gas; Shows Oil/Gas; Shows Gas/Condensate; Shows Hydrocarbons

Drilled Unknown Wildcat OR Appraisal

Unknown

In Progress Appraisal

Appraisal N/A9

In Progress Wildcat

Wildcat N/A10

Planned (Status Unknown)

Wildcat OR Appraisal

N/A

Planned Appraisal

Appraisal N/A

Planned Wildcat Wildcat N/A

Stratigraphic Wildcat N/A11

Suspended Wildcat OR Appraisal

Junked

Discovered Resources (liquids-estimated, Mmboe) relates to the company-reported discovered resources (for oil and liquids). Applicable to Drilled Discovery, Drilled Discovery (Non-Commercial) or Drilled Appraisal only. Discovered Resources (gas-estimated, Mmboe) relates to the company-reported discovered resources (for gas). Applicable to Drilled Discovery, Drilled Discovery (Non-Commercial) or Drilled Appraisal only. Unrisked Prospective Resources (reported estimate, Mmboe) relates to the unrisked prospective resources (liquids and gas) for planned wells as reported by the company.12 Chance of Success (reported estimate) relates to the chance of success for planned wells, as reported by the company.13 Risked Prospective Resources (estimated, Mmboe) relates to our estimate of risked prospective resources, according to the Risked Prospective Resources estimation sheet.

M&A Include all the deals and deals-in-play mentioned in the Well Summary.

9 In rare cases, this field may be filled out for wells in progress. Usually, it will be Shows Oil; Shows Gas; Shows Oil/Gas; Shows Gas/Condensate or Shows Hydrocarbons. 10 Same as 9 11 In some cases, stratigraphic wells are explicitly stated to have encountered hydrocarbons. In these cases, enter the wellbore contents that are reported. In all other cases, leave blank. 12 The value may be kept even after the well is drilled and completed. 13 Same as 13

Geology Information

Mention prospect-level information first, followed by block-level information. If neither is present, add basin-level information. If the basin-level information adds weight or context to available prospect- or block-level information, add it.

Petroleum System There are five elements to a petroleum system. The Source Rock is the rock layer in which the petroleum is generated from various types of kerogens. Petroleum usually migrates from these rocks into another rock layer known as the Reservoir Rock. Above the reservoir rock lies the Seal, an impermeable rock that stops the upward migration of petroleum. In conventional exploration, the petroleum can only be extracted if it is forced into an accumulation by a Trap. These five elements comprise a petroleum system.

Rock types include: Sandstone, Carbonate, Shale, Limestone, Mudstone, Claystone, Turbidite, Clastics, Multiple

Traps classification Structural: the type of trap in which the ordering of rock layers remains same but the layers undergo a structural deformation

Anticline: also known as dip closures (four-way, three-way)

Salt dome: also known as salt diaper

Fault: formed by faulting of tectonic plates Stratigraphic: the type of trap in which the ordering of rock layers is affected

Reef

Unconformity

Pinch-out Combination

Rock ages

Cenozoic Quaternary

Pleiestocene Neogene

Pliocene Miocene

Paleogene Oligocene Eocene Paleocene Mesozoic

Cretaceous Early Cretaceous Late Cretaceous

Jurassic Early Jurassic Middle Jurassic Late Jurassic

Triassic Early Triassic Middle Triassic Late Triassic Paleozoic

Permian

Carboniferous Late Carboniferous OR Pennsylvanian Early Carboniferous OR Mississippian

Devonian Early Devonian Middle Devonian Late Devonian

Silurian

Ordovician

Cambrian

Pre-Cambrian

Only the above terms may be used.

Dos and Donts

DO NOT use Upper/Lower. Upper = Late, Lower = Early.

For Mesozoic, if a range of ages is given, take the next level of naming. For example, reservoir of Albian-Barremian ages = Early Cretaceous