14 Petroleum Economics for Geologists – Part 8 19 Rolling the Dice 26 Structural Synthesis of Emerging Unconventional Oil and Gas Plays along the Fold Belt Region of the Western Canada Sedimentary Basin 32 GeoCanada 2010 Technical Program, Core Conference and more!
MAY 2010 VOLUME 37, ISSUE 5 Canadian Publication Mail Contract – 40070050
RESERVOIR ISSUE 5 • MAY 2010 1 Define Reservoir Since 1927... Parameters with Confidence
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©2009 IHS Inc. All rights reserved. Define Reservoir Since 1927... MAY 2010 – VOLUME 37, ISSUE 5 Parameters with ARTICLES Petroleum Economics for Geologists Part 8 – Economic Indicators ...... 14 Rolling the Dice ...... 19 Confidence Structural Synthesis of Emerging Unconventional Oil and Gas Plays along the Fold Belt Region of the Western Canada Sedimentary Basin ...... 26 CSPG OFFICE #600, 640 - 8th Avenue SW GeoCanada 2010 Technical Program...... 32 Calgary, Alberta, Canada T2P 1G7 Tel: 403-264-5610 Fax: 403-264-5898 GeoCanada 2010 Core Conference Program...... 34 Web: www.cspg.org Office hours: Monday to Friday, 8:30am to 4:00pm GeoCanada 2010 Exhibit Floor ...... 35 Executive Director: Lis Bjeld GeoCanada 2010 Exhibitor List ...... 36 Email: [email protected] Advertising & Sponsorship Coordinator: Alyssa Middleton University Outreach at GeoCanada 2010 ...... 38 Email: [email protected] Communications Coordinator: Heather Tyminski 10th Annual Long-time Members Reception ...... 40 Email: [email protected] Member Services Coordinator: Kasandra Klein Strategic Geoscience ...... 41 Email: [email protected] Registration Coordinator: Dayna Rhoads Classic Golf ...... 44 Email: [email protected] Convention Contacts 2010 CSPG Awards Ceremony ...... 46 Convention Manager: Shauna Carson Email: [email protected] Convention Coordinator: Tanya Santry DEPARTMENTS Email: [email protected] Executive Comment ...... 5 EDITORS/AUTHORS Please submit RESERVOIR articles to the CSPG office. Technical Luncheons ...... 8 Submission deadline is the 23rd day of the month, two months prior to issue date. (e.g., January 23 for the March issue). Division Talks ...... 11 To publish an article, the CSPG requires digital copies of the document. Rock Shop ...... 31 Text should be in Microsoft Word format and illustrations should be in TIFF format at 300 dpi., at final size. For additional information on manuscript preparation, refer to the Guidelines for Authors published in the CSPG Bulletin or contact the editor.
Technical Editors Ben McKenzie Colin Yeo (Assistant Tech. Editor) Tarheel Exploration EnCana Corporation Tel: 403-277-4496 Tel: 403-645-7724 Email: [email protected] Email: [email protected]
Coordinating Editor Heather Tyminski, Comunications Coordinator, CSPG Tel: 403-513-1227, Email: [email protected]
Looking to maximize opportunities in today’s volatile market? ADVERTISING Advertising inquiries should be directed to Alyssa Middleton, Tel: 403-513-1233, email: [email protected]. The deadline to ® reserve advertising space is the 23rd day of the month, two months Combine the power of PETRA and IHS Critical Information including well and prior to issue date. log data to define reservoir parameters and determine new opportunities faster and The RESERVOIR is published 11 times per year by the Canadian Society of Petroleum Geologists. This includes a combined issue for the months of July and August. The purpose of the RESERVOIR is to publicize the Society’s more cost effectively. many activities and to promote the geosciences. We look for both technical and non-technical material to publish. Additional information on the RESERVOIR’s submission guidelines can be found at http://www.cspg. org/publications/pubs-reservoir-submissions.cfm. The contents of this publication may not be reproduced either in part or in full without the consent of the Let IHS information solutions improve your decision-making and reduce your risk. publisher. Additional copies of the RESERVOIR are available at the CSPG office for $6.50 each. No official endorsement or sponsorship by the CSPG is implied for any advertisement, insert, or article that appears in the Reservoir unless otherwise noted. All submitted materials are reviewed by the editor. We reserve the right to edit all submissions, including letters to the Editor. Submissions must include your name, address, and membership number (if applicable). The material contained in this publication is intended for informational use only. For more information on PETRA visit us at While reasonable care has been taken, authors and the CSPG make no guarantees that any of the equations, schematics, or devices discussed will perform as expected or that they will give the desired results. Some www.ihs.com/reservoirsolutions information contained herein may be inaccurate or may vary from standard measurements. FRONT COVER The CSPG expressly disclaims any and all liability for the acts, omissions, or conduct of any third-party user of information contained in this publication. Under no circumstances shall the CSPG and its officers, directors, Torres del Paine National Park, Chile. Miocene-aged granitic towers of the employees, and agents be liable for any injury, loss, damage, or expense arising in any manner whatsoever Torres del Paine Complex that have intruded the Cretaceous Cerro Toro Formation from the acts, omissions, or conduct of any third-party user. ©2009 IHS Inc. All rights reserved. in the late stage of the Andean Orogeny. Photo by François Tremblay. Design and Layout by Sundog Printing. Printed in Canada by Sundog Printing. RESERVOIR ISSUE 5 • MAY 2010 3 Since 1927...
A FEW THINGS A GEOSCIENCE PROFESSIONAL SHOULD KNOW WHEN EXPLORING A CAREER WITH SAUDI ARAMCO:
1. The Red Sea and Rub’ al Khali have huge potential for new discoveries. 2. We embrace bold new concepts to tackle tough technical challenges. 3. Energy is our #1 export ... Adventure stories a close second.
In other words, a career with Saudi Aramco is more than just a job. It’s exploring vast new frontiers for oil and gas resources, working with ground-breaking technologies, and teaming with top-notch professionals dedicated to a secure energy future. It’s also the opportunity for you and your family to experience international travel adventures, develop friendships that last a lifetime, and enjoy a highly competitive compensation and benefits program.
Enrich your life. Visit www.Aramco.Jobs/CSPG. Visit us at GeoCanada 2010, Booth #807 Since 1927... EXECUTIVE COMMENT A message from the CSPG Service Director, Ayaz Gulamhussein
Ko taku rourou Ko tau rou Ka or ate tangata With my resources, And your resources, Everyone will benefit. CSPG -Traditional Maori Proverb EXECUTIVE In the petroleum industry, the term Interested in sedimentology or structural President “resource” is often used. It is used to geology? Technical Divisions is the place John Varsek • Cenovus Energy [email protected] Tel: (403) 645-5417 quantify the amount of hydrocarbon for you. Like being a social butterfly? we believe is in place for a given play, Organizing the Mixed Golf tournament, Vice President accredit research information showcased the 10K Road Race, or the Squash Kirk Osadetz • Geological Survey of Canada, Calgary in journals and magazines, and to refer to Tournament is right up your alley. Want to [email protected] Tel: (403) 292-7022 individuals who posses creative ideas and provide inspiration to future geoscientists? a strong work ethic. University Outreach and K-12 Education Past President needs you! Enjoy writing and editing? The Graeme Bloy • Canada Capital Energy Corporation [email protected] Tel: (403) 975-5784 In the workplace, human resources are Communications group has an opportunity absolutely crucial to the success of a with your name on it. Finance director company. A competent a n d dedicated g r o u p Greg Lynch • Shell Canada Ltd. of individuals can help an organization A MAGNET FOR TALENT [email protected] Tel: (403) 691-3111 realize the goals and objectives that it Creative people tend to cluster together. sets for itself. In a strong organization, an This makes life more fun. It also fosters assistant Finance director individual’s personal growth tends to occur technological progress. When clever Darren Aldridge • Baker Hughes concurrently with the company’s. The people cluster, they can bounce ideas off [email protected] Tel: (403) 537-3505 development of technical, interpersonal, one another. The sharing of ideas often A FEW THINGS A GEOSCIENCE PROFESSIONAL SHOULD KNOW Program director and leadership skills, engages employees leads to innovation, which in turn leads Scott Leroux • EnCana Corporation and extracts their maximum potential. to efficiency. These efficiencies often WHEN EXPLORING A CAREER WITH SAUDI ARAMCO: [email protected] Tel: (403) 645-2000 act as catalysts for further innovation. A not-for-profit technical organization As a technical society, technological assistant Program director like the Canadian Society of Petroleum advancement, innovation, and efficiency Brett Norris • TransGlobe Energy Corp. Geologists is no different; human are central to our mandate. [email protected] Tel: (403) 264-9896 resources are central to the success of serVice director the Society. Engagement of volunteers The CSPG continues to attract top Ayaz Gulamhussein • NuVista Energy Ltd. and the extraction of their talents are volunteer talent, whether it is for [email protected] Tel: (403) 538-8510 two of the most important premises on technical luncheons, technical divisions, 1. The Red Sea and Rub’ al Khali have huge potential for new discoveries. which our Society is built upon. Without or other committees. The clustering of assistant serVice director committed volunteers, the Society highly energetic and intelligent individuals Richard Thom • Core Laboratories Canada Ltd. 2. We embrace bold new concepts to tackle tough technical challenges. would not be able to offer the numerous is critical to the continued evolution of the [email protected] Tel: (403) 250-4052 programs and activities that are now seen science of petroleum geology. Technology 3. Energy is our #1 export ... Adventure stories a close second. outreach director as commonplace. and innovation are changing the way we Mike DesRoches • Talisman Energy Inc. look at mature, under-explored, and [email protected] Tel: (403) 513-6843 A MULTITUDE OF NICHES unexplored basins. Creative and inquisitive In other words, a career with Saudi Aramco is more than just a job. It’s exploring vast new frontiers for The CSPG offers an expansive and diverse minds will be the prerequisite to the CSPG assistant outreach director oil and gas resources, working with ground-breaking technologies, and teaming with top-notch set of programs. The skill sets required staying at the leading edge of hydrocarbon Steve Dryer • Consultant from the volunteers that run these exploration. [email protected] Tel: (403) 969-2292 professionals dedicated to a secure energy future. It’s also the opportunity for you and your family to activities are equally multifarious. Having experience international travel adventures, develop friendships that last a lifetime, and enjoy a highly communications director such an incredible array of programs has A CONSTANT FEEDbACk LOOP Stephen Hubbard • University of Calgary been crucial to the Society providing Currently, t h e C S P G h a s approximately 3 0 0 competitive compensation and benefits program. [email protected] Tel: (403) 220-6236 its members with opportunities that volunteers that serve on 60 committees. interest them, and contribute to their These volunteers drive all the technical assistant communications director personal development. No matter where aspects of the Society, while the office Enrich your life. Visit www.Aramco.Jobs/CSPG. Jim Barclay • ConocoPhillips a volunteer’s interests lie, a CSPG member staff provides strong administrative and [email protected] Tel: (403) 532-3889 Visit us at GeoCanada 2010, Booth #807 can find a cluster of his or her kinship structural support. executiVe director somewhere within the organization. Lis Bjeld • CSPG (Continued on page 7...) [email protected] Tel: (403) 513-1228
RESERVOIR ISSUE 5 • MAY 2010 5 Since 1927...
Teamwork Pays
At APEGGA we know and understand that we live and practice in a complex world. The heavy lifting in the resource extraction industries, and in the environmental industry, is done by teams, often led by Professional Geoscientists. These teams include professionals, technologists and support staff both at headquarters in the city and at camp in the field. There’s no question in our minds that geoscience projects require teams to manage questions surrounding the many varied issues including governance, tax impact, reporting and environmental concerns including land-use and ground disturbance. Through consultation and communication, all these issues, and a multitude of others, are resolved to ensure the projects we work on benefit society. The Geoscience Professionals’ code of ethics and paramount responsibility to protect public safety and well-being must be recognized and acted upon. P.Geol.s, P.Geoph.s and Professional Licensees (Geological and Geophysical) are team players. No doubt. Our work helps keep Alberta safe and strong and the only way we can achieve that goal is through teamwork amongst professionals. Teamwork Pays. Visit www.apegga.org for more information or call Tom Sneddon, P.Geol., Geoscience Affairs Manager at 403-262-7714 or 1-800-661-7020.
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Teamwork.indd 1 10/22/09 10:44:59 AM Since 1927... (...Continued from page 5) currently, the executive is building and the cspG executive realizes that our populating a standardized organizational society needs to take a proactive role chart, assessing committee vacancies, in recognizing voluntary contributions. implementing a database for tracking, Volunteers must also be appreciated and and creating a process for succession sincerely thanked on an ongoing basis. planning. A concerted effort to incorporate the feedback and opinions of our volunteers is While new ways of broadcasting volunteer also underway. opportunities are being evaluated, cspG members can still check out the cspG Last year, the cspG conducted a website for openings. new positions comprehensive survey, which solicited are posted regularly, along with detailed feedback from the membership. the descriptions of what the roles entail. if information collected in regards to you don’t find anything on the website volunteerism within the society, has been that interests you, general submissions CORPORATE exceptionally helpful to the executive, are also accepted. the cspG office will who are building a go-forward plan for the contact you, as soon as a position that fits MEMBERS organization. your fancy becomes available! if you are interested in volunteering, email cspG at ApAche cAnAdA Ltd. Feedback from the cspG survey [email protected]. conducted in 2009 indicated that over BAker AtLAs 47% of cspG members have volunteered With so many options to choose from, and cAnAdiAn nAturAL resources Limited in the past. 48% of members indicated so many great people to meet, don’t you Teamwork Pays that they wanted clear and accurate time want to volunteer? cAsey & AssociAtes commitments provided to them regarding volunteer positions, while 36% wanted The highest reward for a person’s work is not At APEGGA we know and understand that we live and practice in a complex world. cenoVus enerGy inc. clear and definitive role descriptions. As what they get for it, but what they become The heavy lifting in the resource extraction industries, and in the environmental industry, to their reasons for volunteering, 43% because of it. – Caitlin Roher conocophiLLips cAnAdA Limited is done by teams, often led by Professional Geoscientists. These teams include of members wanted to improve their technical or leadership development, deVon cAnAdA corporAtion professionals, technologists and support staff both at headquarters in the city and at 36% of members wanted to expand their camp in the field. FuGro AirBorne surVeys corp. technical network, and 30% of volunteers wanted to expand their social network. There’s no question in our minds that geoscience projects require teams to manage 50% of members felt that the cspG did geoLoGic systems ltd. questions surrounding the many varied issues including governance, tax impact, a good job of informing the members of reporting and environmental concerns including land-use and ground disturbance. husky enerGy inc. volunteer opportunities. this last statistic is something that obviously needs to be Through consultation and communication, all these issues, and a multitude of others, ihs improved upon. are resolved to ensure the projects we work on benefit society. The Geoscience imperiAL oiL resources InTROduCTIOn TO ThE nEw Professionals’ code of ethics and paramount responsibility to protect public safety and VOlunTEER MAnAgEMEnT LArio oiL & GAs compAny SySTEM well-being must be recognized and acted upon. Geophysical Consulting mJ systems Because volunteers are the society, and are P.G e o l.s, P.Geoph.s and Professional Licensees (Geological and Geophysical) are team essential to its success, the 2010 service & players. No doubt. Our work helps keep Alberta safe and strong and the only way we murphy oiL compAny committee is designing and implementing Exploration Management a Volunteer management system (Vms) can achieve that goal is through teamwork amongst professionals. nexen inc. that will replenish the volunteer base. the Volunteer management system will Teamwork Pays. Visit www.apegga.org for more information or call Tom Sneddon, P.G e o l., Over 20 years of expertise petrocrAFt products Ltd be rewarding socially, technically, and Geoscience Affairs Manager at 403-262-7714 or 1-800-661-7020. professionally for all of our volunteers. Meaningful geophysical maps puLspetroL Geology-driven seismic models cspG’s Vms will act as a placement tool This ad is the sixth in a series proVident enerGy Ltd. for individuals that want to participate Client-tailored & confidential sheLL cAnAdA Limited within the society. this system will ensure that all members that are interested sprouLe AssociAtes Limited in volunteering, no matter where they For more information: may reside, will get an opportunity to suncor enerGy inc. participate in the growth of the cspG. Karen Brawley Rogers, P. Geoph. the Vms will also arrange for appropriate (403) 969-7793 totAL e&p cAnAdA Limited volunteering training where it is deemed [email protected] necessary. tourmALine oiL corp. www.amuletexploration.com
AS OF APRIL 12, 2010
RESERVOIR ISSUE 5 • MAY 2010 7
Teamwork.indd 1 10/22/09 10:44:59 AM technicaL Luncheons MAY LUNCHEON Webcasts sponsored by
Isolated carbonate platforms and mounds Two- and three-dimensional seismic surveys Isolated carbonate (ICPM) originate on topographic highs in from Southeast Asia show internal seismic shallow marine waters and are surrounded geometries and positions of margins, platforms and on all sides by deeper-water environments. providing clues on the evolution of the ICPM. Comparative studies of modern and ancient Mounds initiate as small positive features that mounds (ICPM): isolated platforms allow insights into amalgamate to form platforms of different initiation, growth, mechanisms that control the platforms. sizes and geometries prior to drowning. The Modern examples provide information distance between the mounds appears to and demise especially relevant to Tertiary platforms be the first-order control on amalgamation because the carbonate-secreting organisms and ultimate platform size. However, SPEAkER that built the platforms are very similar and amalgamation may be inhibited if strong Toni Simo occupied similar ecologic zones. currents redistribute sediment transported ExxonMobil, Upstream Research Company off-bank and away from the mounds, leaving Houston, Texas, AAPG Distinguished Lecturer In the modern detailed information on the unfilled accommodation space. organisms and environments of deposition 11: 30 am, thursday, may 27, 2010 can provide insights into the dominant Understanding the feedbacks between mound teLus convention centre, calgary, alberta controls on facies type and dimensions amalgamation and carbonate production today. However, there is a challenging lack will have implications for predicting control Please note: the cut-off date for ticket of information regarding how the facies and mechanisms and building conceptual models. sales is 1:00 pm, Friday, may 21, 2010. size change through time. This challenge can High amalgamation rates imply large areas csPg member ticket Price: $38.00 + gst. be addressed through high-resolution seismic of shallow-water carbonate deposition non-member ticket Price: $45.00 + gst. images, which provide sequential and spatial and high carbonate production resulting in information and allow for comprehensive the formation of mega-platforms. Smaller Each CSPG Technical Luncheon is 1 APEGGA analysis on ICPM initiation, amalgamation, areas of shallow-water deposition tend to PDH credit. and demise. A unique combination of insights drown faster when environmental conditions gathered from modern and ancient datasets deteriorate and platforms cannot keep up Did you know that you can book a table for the on isolated carbonate platforms and mounds with increased accommodation. Technical Luncheon? To book your company’s can be used to make predictions, create table or to buy tickets, visit http://www.cspg.org/ conceptual models, and guide geologic model Satellite i m a g e s over s eve r a l modern p l a t f o r m s events/events-luncheons.cfm. inputs. in Southeast Asia provide an opportunity to investigate the importance of oceanographic processes such as tides and currents as well as tectonic subsidence and chemistry on carbonate deposition and the impact on ICPM evolution. In the Tertiary, however, special consideration is needed for sea- surface temperature and salinity residence times. These parameters are thought to be the major difference in biologic controls on the types of organisms building shallow-water platforms in the Tertiary versus today.
Modern and ancient datasets are used in parallel to evaluate what and how certain processes control initiation, growth, and demise of isolated carbonate platforms and mounds. This allows us to predict the controls for ancient ICPM, thus establishing a framework of rules for predictive conceptual models.
Never underestimate the value of a good translator. bIOGRAPHy Toni Simo completed his B.Sc., M.Sc., and Ph.D. Nothing lost in translation. So much gained. Clear, precise geological in Geology at the University of Barcelona. He who? definition for conventional and non-conventional reservoirs. is currently Research Associate for Upstream Research Company, ExxonMobil. Before that, he was a professor at University Polytechnic Barcelona and before that, a professor at the University of Wisconsin. Some of his previous www.oilsandsimaging.com 403.237.6686 publications include Controls on Carbonate 100, 1100-8th Avenue SW, Calgary, AB T2P 3T8 Platform and Reef Development, Advances in Carbonate Sequence Stratigraphy, and Cretaceous Carbonate Platforms.
8 RESERVOIR ISSUE 5 • MAY 2010 TECHNICAL LUNCHEONS JUNE LUNchEoN Webcasts sponsored by
tethered to an external reality and Dilemmas of the larger society. Also, because our ideology and psychology can blind An Excellent Trust us to the nature of our choices, we need balance, feed-back, and thought SPEAKER to resolve the ethical aspects of the Networking Lynn N. Hughes ordinary and unfamiliar. United State District Judge Opportunity AAPG Distinguished Lecturer BIOGRAPHY Since 1985, Lynn N. Hughes has been Awaits You! 11: 30 am a judge with the United States District Volunteers are needed Tuesday, June 8, 2010 Court, Houston. Before that (1979- Calgary TELUS Convention Centre 1985), he was a judge with the Texas in the following areas: Calgary, Alberta Civil District Court. Hughes was Adjunct Professor at South Texas College of Law • Information Booth Please note: (1973-2003) and at the University of The cut-off date for ticket sales is Texas (1991, 2000). He is a member • Registration Package Pick-Up 1:00 pm, Thursday, June 3, 2010. of the Judicial Advisory Board, Law CSPG Member Ticket Price: $38.00 + GST. and Economics Centre, George Mason • Technical Sessions Non-Member Ticket Price: $45.00 + GST. University School of Law; Advisory Board, Houston Journal of International Law • Core Conference Each C S P G Technical Luncheon i s 1 APEGGA since 1980 (Chair, 1989-1999); American PDH credit. Tickets may be purchased Anthropological Association; and Council Students who volunteer for a minimum online at https://www.cspg.org/eSeries/ on Foreign Relations. He received his B.A. source/Events/index.cfm. from the University of Alabama, his J.D. of 8 hours will have the registration fee from the University of Texas Law School, refunded. If you are interested in any Mixing principles and examples with and his LL.M. from the University of economics and anthropology, a Virginia School of Law. of these opportunities, please contact thoughtful and practical perspective on integrity is developed. Often in [email protected]. ethics – as in science – identifying the problem is harder than knowing the solution, making recognition the critical first step in ethical analysis.
Good things, like cooperation, can become negative when they are not
RESERVOIR ISSUE 5 • MAY 2010 9 Think outside the computer screen.
Choose from over 50 exciting field seminars, short courses and online programs all designed with the goal of helping you explore and better understand the science of this industry. Please see the AAPG website for complete descriptions and registration information. Below are the highlights of courses coming up very soon. Make your plans now before seats get filled!
Folds, Faults and Hydrocarbons in the Southern Canadian Cordillera Creative Petroleum Exploration SEPT Location: Calgary, AB, Canada, with the SEPT – Principles and Practices Combination Short Course/Field Trip AAPG International Conference & Exhibition Location: Calgary, AB, Canada, with the Instructors: Edward Beaumont and Doug Strickland 16-19 AAPG International Conference & Exhibition 11-12 Instructor: Peter Jones
Image Log Interpretation FALL EDUCATION CONFERENCE 2010 Location: Calgary, AB, Canada, with the OCT – Theme: Unconventional Resources
Short SEPT AAPG International Conference & Exhibition Location: Houston, Texas Courses: 11-12 Instructor: Laird Thompson 4-8 Instructor: Multiple experts!
Writing for the Bulletin – A Primer in Scientific Application of Structural Geology in Prospecting SEPT Writing for Refereed Geoscience Journals NOV in Thrusted and Extensional Terrain Location: Calgary, AB, Canada, with the AAPG Location: Las Vegas, NV 11 International Conference & Exhibition 8-12 Instructors: Chuck Kluth and Wayne Narr Instructor: Gretchen Gillis
Fractures and Tectonics of the Modern Terrigenous Clastic JUNE Northern Appalachian Basin OCT Depositional Systems Location: New York Location: South Carolina 21-25 Leader: Robert Jacobi 2-9 Leader: Walter Sexton
Field Sedimentology and Sequence Stratigraphic Response Applied Stratigraphy of Paleozoic Carbonate Platforms; SEPT of Paralic Deposits to Changes in Accommodation: OCT Facies, Cycles, Sequences, Reefs, Reservoirs Seminars: Predicting Reservoir Architecture, Book Cliffs, Utah Location: Nevada 23-30 Location: Colorado/Utah 10-13 Leader: John Warme Leaders: Keith Shanley, Michael Boyles
Renewable & Non-Renewable Resources Introduction to Geological LAUNCH DATE - Overview & Integration: A Renewable SEPT 13- Reservoir Characterization JUN 1 Energy Certificate Course DEC 17 Instructor: Roger Slatt Online Instructor: Theresa Coffman Courses:
Essentials of Subsurface Mappping MAY 30- Complex Carbonates Reservoirs: The Role of MAY – Short Course Fracturing, Facies and Tectonics – Field Seminar Location: Houston, TX Location: Naples – Rome, Italy Instructor: Richard Banks JUNE 5 11-13 Leaders: Raffaele Di Cuia, Davide Casabianca, Claudio Turrini
Play Concepts and Controls on Porosity in Exploring for Bypassed Pay MAY Carbonate Reservoir Analogs – Field Seminar JUNE in Old Wells – Short Course Location: Almeria, Spain Location: Wichita, KS 16-21 Leaders: Evan K. Franseen, Robert H. Goldstein, Mateu Esteban 7-9 Leader: Hugh Reid
Last Reservoir Engineering for Petroleum Folding, Thrusting and Syntectonic Sedimentation: Chance: MAY Geologists – Short Course JUNE Perspectives from Classic Localities of the Central Location: Houston, TX Pyrenees – Field Seminar 17-18 Instructor: Richard Green 7-11 Location: Barcelona, Spain Leaders: Antonio Teixell, Antonio Barnolas Fundamentals of Petroleum The Petroleum Industry: Upstream & who? MAY Geology – Short Course JUNE Downstream – Short Course Location: Houston, TX Location: Dallas, TX 19-21 Instructor: Stephen Bend 9-10 Instructor: Stephen Bend who? More Science Than You Can Shake A Pick At.
For more information on any AAPG Education programs, call 918-560-2650 or toll-free 1-888-338-3387, or visit www.aapg.org/education. 10 RESERVOIR ISSUE 5 • MAY 2010 Think outside the computer screen. DIVISION TALKS STRUCTURAL DiviSion Sponsored by
Choose from over 50 exciting field seminars, short courses and online programs all designed with the goal of helping you Continuity of explore and better understand the science of this industry. Please see the AAPG website for complete descriptions and registration information. Below are the highlights of courses coming up very soon. Make your plans now before seats get filled! Rocky Mountain thrust systems Folds, Faults and Hydrocarbons in the Southern Canadian Cordillera Creative Petroleum Exploration SEPT Location: Calgary, AB, Canada, with the SEPT – Principles and Practices Combination Short Course/Field Trip with zones of AAPG International Conference & Exhibition Location: Calgary, AB, Canada, with the Instructors: Edward Beaumont and Doug Strickland 16-19 AAPG International Conference & Exhibition 11-12 Instructor: Peter Jones “in-sequence”
Image Log Interpretation FALL EDUCATION CONFERENCE 2010 mid-crustal flow Location: Calgary, AB, Canada, with the OCT – Theme: Unconventional Resources
Short SEPT Figure 1. Flow zones – thrust system linkages: Schematic southwest – northeast cross-section showing linkages AAPG International Conference & Exhibition Location: Houston, Texas SPEAKER between the internal and external zones of the southeastern Canadian Cordillera, and the location of successive Courses: 11-12 Instructor: Laird Thompson 4-8 Instructor: Multiple experts! Philip S. Simony Cretaceous to Eocene orogenic fronts. Four composite Early Cretaceous to Eocene “in-sequence” thrust sheets Department of Geology and Geophysics, comprise mid-crustal flow zones in the core linked to thrust fault systems in the foreland. (FmC = Frenchman Cap University of Calgary dome; PA = Porcupine Creek Anticlinorium; Ru = Rundle thrust; St M. = Saint Mary fault; TO = Thor-Odin dome; Writing for the Bulletin – A Primer in Scientific Application of Structural Geology in Prospecting Malton (Ma) – Ptarmingan (Pt) – Snaring (Sn), Gwillim Creek Shear Zone (GCSZ) – Bourgeau-Lewis (Bo-Le), SEPT Writing for Refereed Geoscience Journals NOV in Thrusted and Extensional Terrain Monashee décollement (MOD) – McConnell (McC), Basal décollement (BAD) – Foothills thrusts). Location: Calgary, AB, Canada, with the AAPG Location: Las Vegas, NV SPEAKER 11 International Conference & Exhibition 8-12 Instructors: Chuck Kluth and Wayne Narr Sharon D. Carr sheet has an infrastructure of metamorphic College London in 1963. His career as a professor Instructor: Gretchen Gillis Department of Earth Sciences, and migmatitic rocks that includes interfolded at the University of Calgary, spanning forty years, Carleton University cover and basement under a suprastructure was dedicated to teaching geology and mapping of rocks that had been previously deformed in the southeast Canadian Cordillera. Fractures and Tectonics of the Modern Terrigenous Clastic 12:00 noon, Thursday, May 6, 2010 and thrust into place. “Transport” (Couette) JUNE Northern Appalachian Basin OCT Depositional Systems Room LPW-910, Livingston Place West flow and ductile shear were important Research themes include thrust tectonics; structure Location: New York Location: South Carolina (250 2nd St SW), Calgary, Alberta in the infrastructure of each sheet. That of metamorphic complexes; and geometry, Leader: Robert Jacobi Leader: Walter Sexton 21-25 2-9 infrastructure had an eastern margin or emplacement, and deformation of plutons. The approximately 400 km-wide thrust belt “tip line” where the flow and shear, within Although retired since 2002, Philip continues to be Field Sedimentology and Sequence Stratigraphic Response Applied Stratigraphy of Paleozoic Carbonate Platforms; each sheet, were transferred eastward into SEPT of Paralic Deposits to Changes in Accommodation: OCT Facies, Cycles, Sequences, Reefs, Reservoirs of the southeastern Canadian Cordillera active, and is presently working on the kinematic Seminars: Predicting Reservoir Architecture, Book Cliffs, Utah Location: Nevada largely comprises four major composite thrust an external thrust system via transport on linkages between the internal core zone and 23-30 Location: Colorado/Utah 10-13 Leader: John Warme sheets that evolved and were emplaced “in the basal thrust. This geometric – kinematic external thrust belt of the Cordillera. Leaders: Keith Shanley, Michael Boyles sequence” in the Cretaceous to Eocene during framework of great thrust sheets is based on the westward underthrusting of the North the facts of stratigraphy, mapped geometry Sharon Carr obtained her Ph.D. at Carleton Renewable & Non-Renewable Resources Introduction to Geological Amercian craton. In the Rocky Mountain and geochronology, and can form the basis for University in Ottawa in 1990. Since then she has LAUNCH DATE external zone, each sheet is thin skinned dynamic modeling. Channel flow (Poiseuille) worked as a professor at Carleton teaching and - Overview & Integration: A Renewable SEPT 13- Reservoir Characterization and was carried by a thrust system that has models, with or without extrusion, can be carrying out research in the southern Canadian Energy Certificate Course Instructor: Roger Slatt JUN 1 DEC 17 a common basal thrust. In the internal zone, evaluated within this framework. Cordillera, Yukon, and Grenville Province. Online Instructor: Theresa Coffman
Courses: there is a westward increase, toward the Research themes include tectonic evolution of core, in thickness and importance of ductile BiogRAPhy core zones of orogenic belts, and applications of Essentials of Subsurface Mappping shear within each sheet. In the core, each Philip Simony obtained his Ph.D. at the Imperial detailed U-Pb studies to tectonic problems. MAY 30- Complex Carbonates Reservoirs: The Role of MAY – Short Course Fracturing, Facies and Tectonics – Field Seminar Location: Houston, TX Location: Naples – Rome, Italy Instructor: Richard Banks JUNE 5 11-13 Leaders: Raffaele Di Cuia, Davide Casabianca, Claudio Turrini
Play Concepts and Controls on Porosity in Exploring for Bypassed Pay MAY Carbonate Reservoir Analogs – Field Seminar JUNE in Old Wells – Short Course Location: Almeria, Spain Location: Wichita, KS 16-21 Leaders: Evan K. Franseen, Robert H. Goldstein, Mateu Esteban 7-9 Leader: Hugh Reid
Last Reservoir Engineering for Petroleum Folding, Thrusting and Syntectonic Sedimentation: Chance: MAY Geologists – Short Course JUNE Perspectives from Classic Localities of the Central Location: Houston, TX Pyrenees – Field Seminar 17-18 Instructor: Richard Green 7-11 Location: Barcelona, Spain Leaders: Antonio Teixell, Antonio Barnolas Fundamentals of Petroleum The Petroleum Industry: Upstream & MAY Geology – Short Course JUNE Downstream – Short Course Location: Houston, TX Location: Dallas, TX 19-21 Instructor: Stephen Bend 9-10 Instructor: Stephen Bend More Science Than You Can Shake A Pick At.
For more information on any AAPG Education programs, call 918-560-2650 or toll-free 1-888-338-3387, or visit www.aapg.org/education. RESERVOIR ISSUE 5 • MAY 2010 11 diVision taLKs PALAEONTOLOGY DIVISION Sponsored by Systematic ichnology: an example of Psilonichnus quietis Myo Myint 2001, exposed at the Paleogene Iwaki Formation, Shiramizu Group, Joban Coal Field, Type II burrow of Psilonichnus quietis Myo Myint 2001, exhibiting shoe-shaped swelling (S) and semicircular swelling (C) and simple terminus, exposed at the Iwaki Formation, Shiramizu Group. Location: Tekura, Joban coal Japan field, Fukushima Prefecture, Japan. The paleoichnological research for a doctoral forms at varying intervals and/or at a terminus SPEAkER thesis on the Paleogene Shiramizu Group, from an unbranched master shaft). It exhibits Myo Myint Joban Coal Field, Japan, reveals that an three intergradational architectural patterns, Geological Consultant ichnospecies: Psilonichnus quietis is newly herein termed Type I, Type II, and Type proposed and is characterized by an unlined III. Type I burrows have forms of straight 7:30 Pm, Friday, may 14, 2010 vertical-to-inclined burrow ranging in diameter and curve patterns of vertical and inclined mount royal university, room B108 from 0.4 to 2.8 cm and ranging in depth from shaft. Type II have vertical inclined-to-oblique calgary, alberta 10 cm to 2.5 m, with four different shapes of shafts with four different shapes of swelling at swelling (abrupt enlargement with different varying intervals and at the terminus. These swellings are located at obtuse angles from a master shaft and swelling series are aligned to the same direction.164 Type III have vertical, 164 102 101 99 98 96 94 93 89 163 85 84 83 85 84 83 Advisors to the Resource Sector inclined oblique to sinuous shafts and ranges102 101 99 98 96 94 93 89 163 162 in diameter from 0.4 to 1 cm with uniform 162 ...Leading with Ideas! 161 average in diameter of 0.6 cm approximately. 161 $BOBEJBO 160 160
159 159 %JTDPWFSZ-UE The Psilonichnus quietis burrows are 158 comparable to the burrows of modern 158 157 Ocypodid crabs belonging to Ocypode or 157 156 HORN RIVER BASIN Uca. Type I and Type II were constructed by 156 155 155 NW SEadult Ocypodid crabs, but Type III by juveniles. 154 154 Klua Embayment Type I and Type III burrows refer to ephemeral HORN RIVER BASIN PETITOT BANK dwelling structure153 whereas Type II burrows 153 Evie Bank Yoyo Clarke 152 Providing Lake indicate semi-permanent dwelling structures. 152 151 151 Clarke Lake Play Adsett PlatformThe Play swelling and swelling terminus of Type II Fully-Integrated(Slave Point) (Slave Point) 150 150 Jean Marie Shelf Exshaw/Banff burrowsMiss are interpreted to reflect 1) pauses Tetcho/Kotcho 149 149 Redknife Geoscience Services Trout River during intermittent burrowing, 2) shelter for Kakisa Mississippian 148 F Jean Marie 148 Upper Besa River F theMuskwa trace-maker for an extended period of Legend to the BKND_SOURCE_ROCK_KG_5FT_PL 147 147 CI=5ft Besa River Fm. Waterways time, 3) space utilization, and 4) the position of CONTOUR F 0 F 5 F 146 146
BHL Gp.Wint. Wo Wab 10 greatestWatt. stability against gravitationally induced Point 15 Resource Sector M. Slave Mtn. Fort Simpson F 145 145 20 Slave Pt. O. 25 Horn collapse. This structure does not demonstrate 30 F Sulphur Pt. Bistcho River since 1987 F Keg 144 144 35 Sl. 40 Pt. River Klua Muskeg forked points for any types of branching burrow 45 Muskwa F F 50 Otter Park Keg Upper Keg River 143 F 143 55 River Horn River Keg River Platform Lower Keg River (K. River Platform) Legend 60
or turnarounds.Elk Pt. Gp Therefore, Type II burrows
D e v o n i a n Evie Source roc142 x translation 65 Lower Keg River 142 70 Chinchaga Value indicate not only semi-permanent dwelling 75 • Multi-Client Projects • GIS Mapping / DunedinData High : 33.310188 88 who? 141 87 86 srcrkisokoex 105 104 103 100 97 95 92 91 90 92 91 90 141 87 86 Value Low : 0.0264543 105 104 103 100 97 95 High : 74.1614 who? Modified from Ross and Bustin, AAPG Bulletin, January 2008. Mossop and Shetsen, eds., 1994: Geological Atlas, WCSB, ch 11, Fig 11.8,b andut ch 12,additional Fig 12.7 behaviors as well. The breeding • Information Products • Software 140 140 Low : 0.0615195 www.canadiandiscovery.comburrow, expressed as expanded and distinct 139 who? • Geoscience Consulting • Land Sale Analysis - New! chambers at the terminus, and non-breeding 139 burrows characterized by the lack of such chambers, can be found at the same side. This is 164 Find Out What Canadian Discovery Ltd. Can Do For You!103 102 101 100 99 9798 96 95 94 93 92 91 90 89 163 87 86 85 84 83 consistent with88 present-day structures, where102 101 99 98 96 94 93 89 163 85 84 83 T: (403) 269-3644, www.canadiandiscovery.com 162 both breeding and non-breeding Ocypodid 162 161 (Continued on page 40...) 161 160 160 159 12 RESERVOIR ISSUE 5 • MAY 2010 159 158 158 157 157 156 156 155 155 154 154 153 153 152 152 151 151 150 150 149 149 148 148 147 147 146 146 Legend 145 6,000 ft Head Contour Legend 145 Source roc x translation NEW_TRANSLATION_RATIO_GT0 144
potential was seen as limited, recent from the University of Alberta investigating Papua New discoveries in the foreland at Douglas and the Middle Devonian of the Canadian Arctic Puk-Puk onshore suggested an effective Islands. After a three-year post-doctorate Guinea (PNG): gas kitchen in the Cecilia Trough, capable position at the ISPG, Dr. Goodbody joined of generating volumes significant enough Shell Canada from 1987-1998, where he potential to charge the entire foreland. Exploration worked on the Mackenzie Delta, Canadian drilling density also suggested that the Rockies, and the east coast of Canada. in an potential of the foreland had barely been Subsequent shorter stints with Rigel, Pacalta/ tested. With industry focusing on the City and AEC/Encana working numerous underexplored established, producing, and expanding South America assets led Dr. Goodbody to his oil and gas resource in the PNG fold/ current employment with Talisman Energy. foreland thrust belt, the interior foreland had At Talisman, Dr. Goodbody has worked been, relatively speaking, overlooked and throughout the international organization and setting certainly underexplored. has recently been assigned to the Exploration Vice President Papua New Guinea and The petroleum system in the PNG Australia. The adventure continues. SPEAKER foreland is a typical Australian Mesozoic Dr. Quentin Goodbody passive margin assemblage with Early InfORmAtIOn Exploration VP of Papua New Guinea/ Jurassic coals sourcing Late Jurassic and There is no charge. Please bring your lunch. Australia Early Cretaceous paralic and shallow The facilities for the talk are provided Talisman Energy marine quartzitic sandstone reservoirs complimentary of EnCana and refreshments sealed by a thick regional transgressive by Geochemtech Inc. For further information 12:00 Noon shale. Effective delineation of viable or if you would like to give a talk, please Thursday, May 20, 2010 structures is the primary exploration contact Bob Potter at (403) 863-9738 or Encana Amphitheatre, 2nd Floor risk with remoteness, sparse 2D seismic [email protected] or Trent Rehill at East end of the Calgary Tower Complex grids, and tropical wetland conditions and (403) 606 - 6717 or [email protected]. 1st Street and 9th Avenue S.E. climate contributing to the operational Or visit our new Face Book page (“CSPG Calgary, Alberta and technical challenges of finding and International Division”). developing this impressive resource. In the search for material resource in a tightening market, Talisman reassessed BIOGRAPHY Papua New Guinea (PNG) potential in Dr. Quentin Goodbody received his Bachelor late 2008 with an eye to monetizing of Geology from Trinity College in Dublin. He our offshore Pandora gas field. Both the then, at the University of Alberta, completed offshore and onshore basins were assessed a Masters in Micropalaeontology (Silurian for remaining exploration potential. Radiolaria), which was followed by a Ph.D. Although the offshore exploration in Stratigraphy/Sedimentology/Palaeontology
RESERVOIR ISSUE 5 • MAY 2010 13 petroleum economics FOR GEOLOGISTS Part 8 – Project Portfolio Management | by Colin Yeo, P.Geol. and Lionel Derochie, P.Eng.
INTRODUCTION In this, our final installment of the series, we discuss how the economic attributes that have been generated for plays and prospects can be used to analyze and determine the appropriate mix of investment opportunities that will meet financial and strategic corporate goals. As previously mentioned, all companies expect to be profitable, to grow the NPV of their assets, and to provide stable financial performance over the long- term. In the past, there have been some companies that did not use a disciplined approach to portfolio management, which lead to investment decisions that were not aligned with corporate strategies and hence poorer results were achieved. A rigorous, standardized, disciplined, and open process in selecting plays and prospects for exploration and development has proven to be a better approach in achieving strategic goals. Because capital discipline is important in larger companies, many of them have adopted the portfolio management process.
The Principles Behind Project Figure 1. Input parameters and calculated economic indices for three cases discussed. Portfolio managers focus on Portfolio Management (PPM) ensuring these, and many other inputs, have been standardized, are reasonable, and match historical trends. Project portfolio management is concerned with the allocation of capital and manpower hand, if some projects are performing above Aligning the Opportunity resources to a large range of investment expectations, even more capital can be Inventory with Corporate opportunities. The economic indicators that allocated to them. Objectives have been addressed in previous articles are Risk assessment is crucial to the concept of All companies have cash flow requirements used to characterize these plays and project PPM. The chance of project failure needs needed to meet debt interest payments, portfolio management is the process that to be accurately determined and, if the G&A costs, and dividend payments to aligns these opportunities to corporate project is successful, the variability of cash shareholders even before investments strategies and objectives. This ensures that flow needs to be understood. This expected are made in capital projects. Corporate a project or group of projects will help cash flow is used in PPM decisions. It is this objectives are often varied: small start-ups the organization meet its goals such as cash flow that funds corporate financial focus on adding reserves and production at increasing shareholder value by profitably obligations including the capital required low cost, income trusts seek large cash-flow increasing production rates and reserves. for future exploration and development. streams to distribute to unit-holders, and Risk assessment must go beyond the usual senior producers focus on achieving high To be effective, opportunities must be exploration risk components of source, rates of return on capital employed. The risk evaluated consistently across a company. migration, reservoir, trap, and seal to make-up of the project portfolios for these Price files, production forecasts, royalties, include drilling and completion risk as well as different types of companies will certainly capital costs, operating costs, and income production rate and reserve risk. In addition, vary depending on the strategy they elect to tax rates must be reasonable and match commercial risk such as price variations, adopt. Usually, senior executives strive to historical trends. In this way, each project can royalty changes, capital and operating cost achieve a balance between all financial and be properly assessed as to its contribution creep, marketing, and stakeholder relations operational measures over the long term. Boyd PetroSearch towards achieving corporate objectives. The must also be considered. Organizational decision to invest in a project can be made capability, technical skill sets and ability In order to ensure long term, reliable Come see who we are. on its relative costs and risks and its relative to execute programs is an important and steady cash flow, companies strive to Visit us at convention booth # 4 41. benefits to the organization. PPM enables consideration in the PPM assessment. All of diversify their production base to avoid continuous monitoring of those projects these risk factors must be calibrated with concentration risk and also vary their And get eye-to-eye with live birds of prey – on display. that are selected for execution and, as such, historical trends to ensure appropriate risk product (gas, gas liquids, oil, heavy oil) some projects may be discontinued if they assessments are made. These are important mix to stabilize their revenue streams. are under-performing or no longer aligned issues to consider when making investment These concerns around diversification will with corporate objectives. On the other decisions. sometimes override economic ranking in
14 RESERVOIR ISSUE 5 • MAY 2010 the selection of projects for the portfolio because some particular projects may be better aligned with corporate and business strategies despite having poorer economic indicators.
Hard choices always have to be made. Assuming that a company does not want to take on any additional debt and does not want to issue new shares, it probably will have a fixed capital budget tied to its internal cash flow. Quite often, companies will have more investment opportunities than capital resources and are faced with difficult capital allocation decisions. This is where PPM provides useful tools and processes for making these investment decisions.
A Simple exAmple USing ppm ConCeptS to BUild CApitAl BUdgetS There are a number of factors that influence the various economic indicators used in portfolio management and it is important to understand how the indicators are affected by these factors. Figure 1 illustrates three simple cases whereby the assumptions for Figure 2. Three cases showing the effects of risk on economic indicators. Risk is any event, condition, or issue that initial rate (Qi), ultimate reserves (EUR), could adversely affect cash flow. This figure is a summary of economic indices and, for this discussion, we only and capital invested (Capex) are identical for consider rate of return, net present value, profit to investment ratio – both undiscounted and at a 10% discount each case. The only variation between the rate – pay out, F&D cost, and production efficiency. There are many other, more appropriate, ratios that can be cases involves a changing decline exponent used to identify those projects that are key contributors to a corporation’s goals and strategies. (n value). Case 1 is an exponential decline that has an n value of 0 whereas Case 2 for the exponential decline case to a low opportunities are not necessarily the best is a hyperbolic decline with an n value of of 3.6 $MM for the super harmonic decline economic prospects in a given portfolio. 0.5 and Case 3 is a super harmonic decline case. Similarly, there is quite a range in that has an n value of 1.25. The associated values for IRR (Internal Rate of Return), PIR Risk is another very important factor that has production profiles for each of these cases (Profit to Investment Ratio), PE (Production to be accounted for in portfolio management. are shown in Figure 1. Efficiency), and PO (Payout) depending on Consider the three cases presented in the production profile assumed. Production Figure 2. For the purpose of this analysis, As seen in the table within Figure 1, although profiles significantly affect the economic Case 4 is considered to be a low-risk, low- the F&D costs are the same at $4.25/BOE, indicators of a project and it is for this reward opportunity, Case 5 is a medium-risk, the NPV10% ranges from a high of 6.6 $MM reason that some higher rate/reserve (Continued on page 16...)
Boyd PetroSearch
RESERVOIR ISSUE 5 • MAY 2010 15 (...Continued from page 15) companies would prefer to have a portfolio of There are many considerations a manager medium-reward opportunity, and Case 6 is a projects made up of high-case opportunities. must give in building a portfolio. Let’s assume high-risk, high-reopportunity. The economic a company has 50 $MM to invest in drilling. indicators presented in the top part of the The bottom portion of the table in Figure 2 If the company was to invest its entire budget table in Figure 2 assume 100% success. All provides the economic indicators after risk on low-risk opportunities, it would drill 69 three cases generate similar IRRs (~75%) and is applied. It was assumed that the low-risk low-risk, low-reward wells (Case 4) and, payouts (~18 months). Although the IRRs case has a chance of success (COS) of 90%, with a risked NPV10 of 812 $M per well, are the same, F&D as well as PIR10% are the medium-risk case, 60% and the high-risk the program would be expected to generate considerably different from one case to the case, 40%. As can be seen, the IRR for the 56 $MM of NPV. If the same 50 $MM was other. The high case has an F&D of $5.00/ high-risk, high-reward case is considerably invested in medium-risk, medium-reward BOE and generates a PIR10% of 2.14 whereas reduced after risk is accounted for and this opportunities (Case 5), 25 wells would be the low case has an F&D of $9.00/BOE and would cause the portfolio manager to rethink drilled with an expected NPV of 43 $MM. generates a PIR10% of 1.27. On the face of which projects should be pursued and which Similarly, if the entire budget was dedicated it, without taking risk into account, most ones should be delayed. to high-risk, high-reward opportunities (Case 6), 14 wells would be drilled and, on a risk-adjusted basis, would be expected to generate 40 $MM of NPV. Therefore, if the company is focused on maximizing NPV and is risk averse, the portfolio manager would be inclined to invest the entire budget in low- risk, low-reward wells.
Now let’s consider a hypothetical situation where the company’s investment criteria require it to generate a minimum PIR10% of 1 from its drilling program. This represents an NPV of 50 $MM for a 50 $MM capital budget. The manager could generate the Visit us required 50 $MM of NPV by spending 45 GeoCanada at $MM to drill 62 low risk wells (Case 4). 2010 Now the manager has 5 $MM to spend on a Booth #433 higher-risk, higher-reward opportunity. Let’s suppose the manager elects to invest the 5 $MM to drill a high-risk, high-reward well (Case 6). If the high-risk well comes in as forecasted, an additional 10.7 $MM of NPV10 will be generated bringing the total return to 60.7 $MM, which is 4.7 $MM more than the 56 $MM that would have been generated had Pick a card, any card the entire budget been invested in low-risk, low-reward wells. Improve your exploration odds with Divestco. In this instance, the portfolio manager is not At Divestco we want the odds to be in simply gambling on the higher-risk well, the your favor so we have given you a manager is trying to diversify the company while still achieving the original PIR target. By whole deck of geological products and services to drilling the higher-risk well, the manager is choose from. Divestco’s integrated offering for potentially opening up a new exploration area geological professionals gives you the ability to and providing new opportunities for growth. choose from a wide range of geological products Follow-up wells to any discovery will generally have improved COSs, making subsequent and services to suit your unique needs. Pick outpost and development wells even more as many individual cards as you want or let our economic on a risk adjusted basis. experts deal you a winning hand. Aligning the Portfolio to the Call us at 403.237.9170 or email needs of the CorPorAtion [email protected] for more information. As we have shown, there is no one “right” portfolio for a company; it is a combination of projects that will achieve the financial, strategic, and operational goals of a company. TSX: DVT Consideration must be given to the number www.divestco.com of opportunities available within a certain play-type, their comprehensive risk attributes (not just technical risk), the capability of staff to execute the program on time and within
16 RESERVOIR ISSUE 5 • MAY 2010
(Continued on page 18...) budget while getting the desired results and the ability of the company to provide the ongoing capital resources to get the job done. Small companies with limited budgets may not want to bet the farm on a one-off, deep, high-risk, technically complex prospect but rather may want to focus on building a low-risk, low-reward, diversified production base to generate stable cash flow upon which to grow, further diversify and increase corporate NPV in a slow and steady manner.
Summary: ThiS arTicle Project Portfolio Management is both the art and science of understanding what the corporation needs to be successful, however it chooses to define success. The Portfolio Manager must insist on standardization where appropriate and encourage thoroughness and thoughtfulness when dealing with unique Schlumberger. 2010
features of an individual project. Risk is front © and centre in all of these deliberations. Then, by assembling a portfolio of these projects, You’ve got the the Manager improves the company’s Schlumberger. of chances of meeting its goals and objectives. *Mark of Schlumberger. © 2010 Schlumberger. 10-IS-0058 Schlumberger. © 2010 Schlumberger. of *Mark It should be remembered that there is a power of Petrel. “lost opportunity cost” in not pursuing some projects. Hopefully, this is a deferral and not a complete loss. For those opportunities not pursued, the Portfolio Manager may elect to farmout or divest to monetize those plays A unified seismic-to- and prospects that always rank low in the inventory. simulation solution for
Summary: The SerieS geothermal operations. In this series, we have attempted to present a simple but accurate explanation of petroleum economics for geoscientists. We hope we have shown that something that appears to be complicated at first glance is not really difficult to understand when it is broken down into its constituent parts. Geophysics. Geology. Reservoir Engineering.
We hope we have provided the concepts Petrel* gives you an advantage no other application can offer—a powerful and jargon that will allow geoscientists integrated workflow from seismic to simulation. This enables you to model to actively engage in discussions with complex geologic structures with pinchouts and truncated faults—and easily reservoir engineers, reserve evaluators, incorporate new data to update the model and rerun ECLIPSE* simulations financial analysts, portfolio managers, and management. A basic understanding of at any time. That really makes the difference in understanding complex petroleum economics is a prerequisite for geothermal resources. success in the oil industry. And remember, “With Petrel and its integrated workflow, we can exploit the complete it’s all about cash flow! reservoir potential and minimize the exploration risk in geothermal operations.” Dr. Zoltan Timar-Geng, Geologist Support for this series is provided by Energy Navigator who have reviewed articles, GEOenergie Bayern GmbH supplied technical consultation, and critiqued www.slb.com/petrel2009 manuscripts. We thank them for their help.
RESERVOIR ISSUE 5 • MAY 2010 17 CSPG Continuing Education WWW.CSPG.ORG www.cspg.org/education/education-trips.cfm
Summer/Fall Field Trip Seminar Series CSPG Continuing Education Committee is proud to offer the Summer/Fall Field Trip Seminar Series. Offering local one- to three-day field trips running in and around Calgary. Stratigraphy and Hydrocarbon Potential of the Bakken Formation in Western Montana Instructor: Ted Doughty
Contrasting the Reservoirs of Braided vs. Meandering Depositional Systems Instructor: Jon Noad
Upper Cretaceous Meander River Deposits Exposed in the Dinosaur Park Badlands Instructor: Derald Smith and Peter Putnam
Structure and Hydrocarbon Occurrence, Rocky Mountain Foothills and Front Ranges Instructor: Kirk Osadetz, Glen Stockmal, and David Kisilevsky
For additional information please see the website at: www.cspg.org/education/education-trips.cfm or contact: Amanda Mitander at [email protected] Tyrus Bender at [email protected]
18 RESERVOIR ISSUE 5 • MAY 2010 rolling the dice | by R. E. (Gene) Ballay, Ph.D. CSPG Continuing Education The only certainty in most of our formation Figure 1 evaluations is the presence of uncertainty and how that issue is (or is not) addressed. WWW.CSPG.ORG At the simplest level one may estimate the Best and Worst Case, for each input www.cspg.org/education/education-trips.cfm attribute, and then bound the evaluation with the resulting extreme values, even as we recognize that the simultaneous occurrence of multiple “best” or “worst” Summer/Fall Field Trip Seminar Series values is an unlikely event. •Monte Carlo simulation of Sw (Archie) for Monte Carlo Distribution It is in fact relatively simple to address the CSPG Continuing Education Committee is proud to offer the Summer/Fall 600 uncertainty question in a comprehensive, above user-specified distributions Sw Field Trip Seminar Series. Offering local one- to three-day field trips realistic and quantitative fashion, and to •‘a’, R w and Rt are assumed to be ‘well 500 further identify where to focus time, and known’, but may be varied by a straight- 400 running in and around Calgary. money, in search of an improved evaluation. forward extension of the technique 300
•With these specifications, there is a 95% Frequency 200 Stratigraphy and Hydrocarbon Potential of the At the simplest level our Sw estimates are compromised by uncertainty in the various probability that Sw is bounded by 0.357 +/– 100 Archie equation attributes. 2(0.0382) 0.28 < Sw < 0.43 Bakken Formation in Western Montana 0 •The Best / Worst case would have 0.24 < S 0.00 0.10 0.20 0.30 0.40 0.50 n m w Sw = a Rw / ( Rt) Instructor: Ted Doughty < 0.50, the difference being the unlikely Sw In another article (Risky Business) we took chance of all Best (or Worst) events occurring the derivative of Archie’s equation (the simultaneously 2000 Simulations same approach will suffice for a shaly sand Contrasting the Reservoirs of Braided vs. equation), and calculated the individual probability (+/- two standard deviations) result with a deterministic algorithm. impact of each term’s uncertainty upon Sw that 0.28 < Sw< 0.43, whereas the Best / Meandering Depositional Systems to identify where the biggest bang for the Worst approach would bound the results An advantage of Monte Carlo is that any type buck, in terms of a core analyses program with 0.24 < Sw < 0.50; the difference being of distribution can be used to characterize the Instructor: Jon Noad or suite of potential logs, was to be found. the unlikely event of multiple, simultaneous uncertainty specification of input parameters, At that time we noted the “link between Best or Worst events. Not only does Monte for example normal, log normal, etc; an issue parameters, in that the relative importance Carlo give us a more realistic summary, but since the phenomena governing frequency of a single attribute, can be dependent upon by varying the input standard deviations distributions in nature often favor log-normal the magnitude of another attribute, so (uncertainties), one is able to identify where (Limpert et al., 2001). that the characterization must be done for to most efficiently concentrate time / money Upper Cretaceous Meander River Deposits Exposed locally specific conditions.” in an effort to improve results. As illustrated in Figure 1, Monte Carlo in the Dinosaur Park Badlands also allows one to quantify the upside An alternative approach is Monte Carlo Monte Carlo Technique and downside better than a Best / Instructor: Derald Smith and Peter Putnam simulation, which can be implemented with The Monte Carlo method relies on repeated Worst approach, and to recognize which routine Excel spreadsheet functions. The random sampling of user specified input distribution (parameter) is dominating the Monte Carlo method randomly assigns probability distributions to model expected result uncertainty. values, according to user specified probability results. This approach is attractive when it is distributions, to each of the input parameters infeasible or impossible to compute an exact A limitation of Monte Carlo is that special Structure and Hydrocarbon Occurrence, Rocky and then calculates the result. software is typically utilized When the simulation is repeated (commercial add-ons to Excel, etc.), Figure 2 Mountain Foothills and Front Ranges a statistically significant number of and is often not even an option in •Petroleum applications typically use ‘normal’, ‘log normal’, and ‘triangular’ times (results herein are based upon statistical distributions. commercially available petrophysics 2,000 passes, which Excel handles software packages. Common oilfield Instructor: Kirk Osadetz, Glen Stockmal, and David Kisilevsky •Probably the best known statistical distribution is the ‘bell shaped’ normal without a problem), one is able to distribution, whose probability density function is described by: distributions, however, such as determine the likely outcome within Normal, Log Normal, and Triangle any specific probability band, and to are available in Excel and it is straight- further identify which parameter forward to implement Monte Carlo For additional information please see the website at: is dominating the uncertainty (and within the Excel framework. In this hence where time and money is •Two parameters characterize the distribution approach, one remains in the familiar www.cspg.org/education/education-trips.cfm or contact: most efficiently directed for an •the ‘mean’ value µ, Excel environment, and actually Amanda Mitander at [email protected] improved result). •the variance represented by σ2. leverages their Excel skill set via •The square root of the variance is the standard deviation. the additional hands-on experience Tyrus Bender at [email protected] As an example, with the specifications http://www.enrg.lsu.edu/pttc/ within the platform. tabulated in Figure 1, there is a 95% (Continued on page 20...)
RESERVOIR ISSUE 5 • MAY 2010 19 (...Continued from page 19) Figure 3 A discussion of the Monte Carlo method can be found in Decision Analysis for Petroleum Exploration by Paul Newendorp and John Schuyler, and a collection of articles addressing exploration risk can be found in The Business of Petroleum Exploration published by the AAPG, Tulsa, Oklahoma. Additional information may be found in the References, with useful on-line reference material to be found at the following links: • http://www.enrg.lsu.edu/pttc/ • http://www.mrexcel.com/ • http://people.stfx.ca/bliengme/exceltips. htm •Syntax: NORMDIST(x, mean, standard_dev, cumulative) • http://office.microsoft.com/en-us/excel/ •There are two variations of NORMDIST, according to the value assigned cumulative HA011118931033.aspx •Cumulative is a logical parameter that determines the form of the function • http://www.statsoft.com/textbook/ stathome.html •If True, it returns the cumulative distribution function. • http://en.wikipedia.org/wiki/Monte_ •If FALSE, it returns the probability mass function. carlo_simulation • http://www.ipp.mpg.de/de/for/bereiche/ stellarator/Comp_sci/CompScience/ Figure 4 csep/csep1.phy.ornl.gov/mc/mc.html • http://www.sitmo.com/eqcat/15 •The NORMINV • http://www.riskglossary.com/link/monte_ [NORMINV(Probability, Mean, carlo_method.htm Standard_Dev)] performs the inverse • http://www.chem.unl.edu/zeng/joy/mclab/ operation by returning the ‘x’ value for mcintro.html a given cumulative probability of normal distribution with specified THE GAUSSIAN OR NORMAL mean and standard deviation DISTRIbUTION For illustration purposes, we focus here on the bell-shaped Gaussian distribution. Log Normal or Triangular distributions are easily handled with a simple change of Excel functions.
Gauss was a child prodigy and perhaps the greatest mathematician since antiquity (http://en.wikipedia.org/wiki/Carl_ Friedrich_Gauss). When the dwarf planet Ceres was discovered, and observed for only Figure 5 a few days before vanishing, Gauss was able to mathematically predict where it would be found a year later, and missed the mark by only half a degree.
The bell-shaped, or normal, probability distribution, is the most widely used family of statistical distributions and came to be referred to as Gaussian because he analyzed astronomical data within that context.
Two parameters characterize the Gaussian distribution: the ‘mean’ and ‘variance’ •As a quality control device, we determine and display the (Figure 2, page 19). distribution of random numbers, between zero and one, for the number of Monte Carlo passes being used in a specific simulation (2000, in this example). In a perfect world there would then be Excel’s NormDist function [NORMDIST(x, 200 observations in each of the ten bins displayed mean, standard_dev, cumulative)] calculates both the probability density, and cumulative •Each of the uncertain attributes are modeled as a random number input to NormInv, probability, for a specified ‘x’ value with whose mean value and standard deviation are locally appropriate. For example, the given mean and standard deviation (standard first pass random estimate of porosity, with a distribution centered on 20 pu and deviation being the square root of the having a standard deviation of 1 pu, results in an estimate of 21 pu. variance) (Figure 3).
20 RESERVOIR ISSUE 5 • MAY 2010 Setting the logical variable Figure 6 Also, while the focus here is on the ‘cumulative’ to ‘false’ in the simple Sw(Archie), any other model 1.50 1.50 preceding expression will yield NormInv Magnitude •Relation between NormInv Magnitude (shaly sand, for example) may be 1.00 NormInv Magnitude 1.00 the ‘probability mass function,’ 0.50 and the distribution of 0.50 evaluated in a similar manner. Once while setting ‘cumulative’ to 0.00 NormInv values 0.00 the concepts are understood, NormInv NormInv ‘true’ returns the ‘cumulative’ -0.50 •90 samples -0.50 locally specific models are readily -1.00 •The distribution of -1.00 distribution. -1.50 NormInv Magnitude -1.50 developed. 0.00 0.20 0.40 0.60 0.80 1.00 is ‘normal’ per 0.00 0.20 0.40 0.60 0.80 1.00 Rand() specified ‘mean’ and Rand() Be aware that Excel 2007 is used Mean = 0. Std = 0.25 ‘std’, and will Mean = 0. Std = 0.50 Each of the uncertain attributes is for these illustrations and while approach the modeled as a random number input NormInv Distribution expected ‘bell- shape’ NormInv Distribution there is a Compatibility Mode 25 as yet more 10 to NormInv, whose mean value 9 for earlier Excel versions, it is 20 simulations are 8 and standard deviation are locally performed 7 15 6 conceivable that screens could •It is the distribution 5 appropriate. For example (Figure 10 4 differ. For greater clarity, the Frequency of NormInv values Frequency 3 5), the first pass random estimate 5 that is driving the 2 graphics / text in Figure 3 are 1 of porosity, with a distribution 0 Sw(Archie) 0 color-coded, and in each case -2.00 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 simulation -2.00 -1.50 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 centered on 20 pu and having a Bin Bin (true and false) the Excel cursor standard deviation of 1 pu, results has been placed in a calculation in an estimate of 21 pu. The random cell, so that the functional form of NormDist The NORMINV [NORMINV(Probability, values of ‘m’ and ‘n,’ appropriate to the is displayed at the top of the respective Mean, Standard_Dev)] performs the inverse specified distributions, are independently screen capture. operation by returning the ‘x’ value for and randomly determined, and Sw calculated a given cumulative probability of normal per the Archie relation. As an illustrative interpretation of the distribution with specified mean and cumulative distribution, we recognize standard deviation (Figure 4). Because Excel recalculates equations (Figure 3, right side) that the Cumulative each time the spreadsheet is opened, or Probability (vertical axis) has reached 0.50 This calculation indicates the Cumulative specifications are changed, the various results (50%) when the Probability Distribution probability is will change (your line item spreadsheet (horizontal axis) is 0. As expected, when • 16% when ‘x’ attains the value -0.99, values will change, each time you make a the mean value is specified to be 0, there • 31% when ‘x’ attains the value -0.50, modification). is equal probability of any single value being • 69% when ‘x’ reaches 0.50. higher or lower. As a quality control device, we determine Monte Carlo Modeling of Sw and display the distribution of random Departing from the mean, Figure 3 (graphical (Archie) numbers, between zero and one, for the display and Excel cell values) reveal that a With a basic understanding of what the number of Monte Carlo passes being used in cumulative probability of Excel Gaussian Distributions options are, a specific simulation (2,000, in this example). • 16% has been reached @ x= -1.0, one is able to model the Archie equation In a perfect world there would be 200 • 31% @ x=-0.5, within that framework. For illustration observations in each of the ten blue bins
• 69% @ x=+0.5, purposes, we regard ‘a,’ Rw and Rt to be displayed in Figure 5. • 84% @ x=1.0, etc. well known, and , ‘m’ and ‘n’ subject to uncertainty as specified in Figure 5. Figure 6 illustrates the relation between the
There is then a 31% chance that ‘x’ is at least Allowance for uncertainty in ‘a,’ Rw and Rt magnitude of NormInv, and the distribution -0.5 in magnitude, a 69% chance that ‘x’ is at may be addressed by a straight-forward of NormInv values, for different standard least 0.5 in magnitude, etc. extension of the techniques presented here. (Continued on page 22...)
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RESERVOIR ISSUE 5 • MAY 2010 21 (Continued on page 20...)
Figure 7 In utilizing Excel frequency distribution graphics, one should take note of how Cross Check •Porosity is specified as a the ‘bins’ are populated, as they are not Gaussian distribution, ‘centered’. This can cause the graphic to centered on 20 pu with a take on a shifted appearance, with respect standard deviation of 1 pu to the numerical report (consult Excel Help on the Frequency function for details). •2,000 calculations are done, and the result The Sw (Archie) result population is further ‘checked’ by means of affected by the nonlinear relation between histograming the resulting the various attributes, as discussed by Bryant porosity distribution and et al. in Understanding Uncertainty (Oilfield calculating the resulting Review. Autumn 2002), who illustrates statistics Monte Carlo Distribution that a normal uncertainty distribution 450 •The MC simulation is observed to reproduce the 400 Porosity about a given porosity yields a log-normal specified inputs 350 distribution for the resulting Sw distribution. 300 250 Bryant’s article is another Must Read. •Random number ‘ mean ’ ‘ Std ’and converge to 200
input values Frequency 150 100 IN SEARCH OF THE bIGGEST bANG 50 FOR THE bUCk 0 0.00 0.05 0.10 0.15 0.20 0.25 0.30 We are typically confronted with two issues, Porosity first to characterize the uncertainty in the Sw estimate itself, and next to identify where time and money would be best spent to Figure 8 reduce that uncertainty. There are two ways Sw(Archie) to proceed: 1) take the derivative of Archie’s •One issue of interest is the Uncertainty equation with respect to each term, and dependence of Sw upon compare the magnitude of each term against individual attribute values one another, for specific attribute values or / uncertainties 2) Monte Carlo simulation, with the input •With the specifications at attribute distributions specified per locally right representative requirements. • Sw (mean) = 0.357 The differential approach was illustrated in • σ� (S ) = 0.038 an earlier article, Risky Business, and those results have been included in the following Monte Carlo Distribution so as to both ‘make the connection’ and to •There is a 95% likelihood that S is contained 600 also serve as a cross-check. The illustrative Sw within + / - 2 σ 500 attribute values / uncertainties are those in 400 the Chen and Fang (1986) paper, so as to •(0.357 – 0.076) < Sw < (0.357 + 0.076) 300 allow reference to that material as well.
•0.28 < Sw < 0.433 Frequency 200 100 In the case of Figure 9 attributes, the •Be aware of how Excel ‘bins’ data 0 differential approach would indicate that 0.00 0.10 0.20 0.30 0.40 0.50 time / money would be best spent on ‘m,’ as Sw the relative uncertainty of the cementation exponent is far greater than any of the other (...Continued from page 21) As an additional QC device, the statistical attributes. deviations, at 90 simulations. Both attributes of the simulated quantities (, distributions take on an approximate ‘m’ and ‘n’ in this example) are tabulated The connection between derivatives and Gaussian appearance, with the larger directly from the simulation population, and Monte Carlo is made by recognizing that standard deviation result displaying more displayed graphically (Figure 7). two standard deviations encompasses 95% scatter. It is the distribution of NormInv of the statistical scatter, and then setting, values that is driving the Sw (Archie) With 2,000 simulations, the model attribute by attribute, 2 equal to the Chen simulation. It is important to realize that population nicely replicates the input and Fang illustrative uncertainties, thereby each occurrence of NormInv involves an numerical specifications, and the porosity forming the Base Case for Monte Carlo independent Rand() input. distribution takes on the expected (Figure 9). appearance (Figure 7). The approach taken here is intended to Monte C a r l o simulations a re t h e n p e r f o r m e d , parallel that of the LSU results (Must Simulation results are reported both incrementally, with each attribute better Read supplemental material – www.enrg. numerically and graphically (Figure 8). In defined by 10% and the improvement lsu.edu/pttc/), which also includes Log this particular case, there is a 95% likelihood (reduced scatter) in the resulting Sw noted
Normal and Triangle distributions, and so that Sw is contained within + / - 2 , (0.357 (Figure 10). can be directly referenced if either of those – 0.076) < Sw < (0.357 + 0.076) ➔ 0.28 < distributions are required. Sw < 0.433. Monte Carlo simulation reveals that a 10%
22 RESERVOIR ISSUE 5 • MAY 2010 Attribute Uncertainties Specified Individually Attribute Uncertainties Specified Individually Figure 9 Light Green Cells require User Specification Figure 10 Light Green Cells require User Specification Light Blue Cells are calculated results Light Blue Cells are calculated results Individual Best Relative Uncertainty •Chen and Fang identify the attribute resulting in the Individual Best Relative Uncertainty • + / - 1 σ will encompass ~ 68% of the distribution Attribute UncertaintyEstimate On Sw(Archie) Attribute UncertaintyEstimate On Sw(Archie) a 0.0% 1.00 0.0000 greatest Sw uncertainty a 0.0% 1.00 0.0000 • +/- 2 σ ~ 95 % of the distribution, Rw 0.0% 0.02 0.0000 Rw 0.0% 0.02 0.0000 Phi 15.0% 0.10 0.0900 •In the case at right, ‘m’ is the dominant issue Phi 15.0% 0.10 0.0900 m 10.0% 2.00 0.2121 m 10.0% 2.00 0.2121 •Approximate the ‘Phi’ relative uncertainty of 15% n 5.0% 2.00 0.0224 n 5.0% 2.00 0.0224 σ σ Rt 0.0% 40.00 0.0000 •This same issue can be addressed with Monte Carlo Rt 0.0% 40.00 0.0000 @ 10 pu (1.5 pu) as 2 ~ 1.5 pu => ~ 0.75 pu for Sw 22% Sw 22% Monte Carlo Simulation purposes simulation (below) Derivatives vs. Monte Carlo •That is, 2 σ encompasses 95 % of the spread in the distribution, and it is set equal to •The Base Case is at lower left, with each simulation towards the right reflecting an the 15 % uncertainty of the Chen & Fang analyses improvement in ‘Phi’‘, m’ and ‘’n individual precision by 10 %, respectively. •Approximate the ‘m’ relative uncertainty of 10% @ 2.00 (0.2) as 2 σ ~ 0.2 => σ ~
0.1 for Monte Carlo Simulation purposes Attribute Mean Std Attribute Mean Std Attribute Mean Std Attribute Mean Std "a" 1 "a" 1 "a" 1 "a" 1 •Approximate the ‘’n relative uncertainty of 5% @ 2.00 (0.1) as 2 σ ~ 0.1 => σ ~ Rw 0.02 Rw 0.02 Rw 0.02 Rw 0.02 Rt 40 Rt 40 Rt 40 Rt 40 0.05 for Monte Carlo Simulation purposes Phi 0.1 0.0075 Phi 0.1 0.0068 Phi 0.1 0.0075 Phi 0.1 0.0075 "m" 2 0.1000 "m" 2 0.1000 "m" 2 0.0900 "m" 2 0.1000 •The Biggest Bang For The Buck is to be found in ‘m’ as it has the greatest "n" 2 0.0500 "n" 2 0.0500 "n" 2 0.0500 "n" 2 0.0450 uncertainty relative to the other attributes Monte Carlo Results Monte Carlo Results Monte Carlo Results Monte Carlo Results Sw Sw Sw Sw After C. Chen & J. H. Fang. Sensitivity Analysis The Biggest Bang for the Buck Mean Std_Dev Mean Std_Dev Mean Std_Dev Mean Std_Dev of the Parameters in Archie‘s Water Saturation 0.227 0.0332 0.225 0.0323 0.226 0.0297 0.226 0.0329 Derivatives vs. Monte Carlo Equation. The Log Analyst. Sept – Oct 1986
Figure 11 Figure 12
Attribute Mean Std •If porosity were to be 25 pu, rather than 10, the focus changes "a" 1 •One also observes that the Best / Worst numerical Rw 0.02 evaluation of S (Archie) is considerably more •‘m’ and ‘n’ uncertainties have been set equal in this simulation Rt 40 pessimistic than is the +/- 2 σ Monte Carlo •The Base Case is at lower left, with each simulation towards the right reflecting an Phi 0.1 0.0075 "m" 2 0.1000 simulation improvement in ‘Phi’, ‘m’ and ‘n ’ precision by 10 %. "n" 2 0.0500 •The Best and Worst of all parameters are •With the improved porosity, focus shifts to ‘n’, the tortuosity of the conductive S 0.224 unlikely to occur simultaneously (brine) phase in the presence of a non-conductive (hydrocarbon) phase, as offering Monte Carlo Statistics Monte Carlo Distribution the Biggest Bang For The Buck. Cross-check Specs Monte Carlo Results 700 Porosity Sw •Improved ‘’n definition yields the greatest reduction in the standard deviation Sw 600 Mean Std_Dev Mean Std_Dev of Sw 500 0.100 0.0076 0.226 0.0333 400 "m" "n" Attribute Mean Std Attribute Mean Std Attribute Mean Std Attribute Mean Std 300 Mean Std_Dev Mean Std_Dev "a" 1 "a" 1 "a" 1 "a" 1 Frequency 1.997 0.1005 2.001 0.0508 200 Rw 0.02 Rw 0.02 Rw 0.02 Delta Sw 0.133 Rw 0.02 100 Rt 40 Rt 40 Rt 40 Rt 40 Phi 0.25 0.0100 Phi 0.25 0.0090 Phi 0.25 0.0100 Phi 0.25 0.0100 0 High-Low Numerical Statistics "m" 2 0.1000 "m" 2 0.1000 "m" 2 0.0900 "m" 2 0.1000 0.00 0.10 0.20 0.30 0.40 0.50 Attribute Low High Sw Range for Low Phi "n" 2 0.1000 "n" 2 0.1000 "n" 2 0.0900 Porosity 0.085 0.115 0.189 0.222 0.318 0.355 "n" 2 0.1000 Sw Sw 0.089 Sw 0.089 Sw 0.089 Sw 0.089 "m" 1.8 2.2 Sw Range for High Phi "n" 1.9 2.1 0.142 0.171 0.224 0.258 Monte Carlo Results Monte Carlo Results Monte Carlo Results Monte Carlo Results Best Case Low m / Low n Hi m / High n Sw Sw Sw Sw Worst Case Sw 0.224 Mean Std_Dev Mean Std_Dev Mean Std_Dev Mean Std_Dev Max Delta Sw 0.212 0.090 0.0132 0.090 0.0128 0.090 0.0127 0.090 0.0121 improvement in definition of the cementation ACkNOwLEDGEMENTS Headquartered in Munich, Germany, exponent will yield the greatest reduction We appreciate the unidentified LSU faculty GeoNeurale is a center for excellence in earth in Sw uncertainty, relative to the other who posted their material (located via Google) science research and training, as applied to attributes, and consistent (as expected) to http://www.enrg.lsu.edu/pttc/. both hydrocarbon and geothermal reservoir with Chen and Fang (Figure 9). characterization and evaluation. George Eden (BP Canada) and Larry Maple We also note that the Best / Worst case (ConocoPhillips) generously shared their GeoNeurale’s Malm 2010 Research Project scenario would significantly overstate the thoughts, and suggested relevant reference involves an international team of scientists, each 95% Monte Carlo uncertainty, because it’s material, as ideas and material on this with at least 20 years of experience, integrating unlikely (though not impossible) that the question were gathered over the past few geology, geophysics, petrophysics, geostatistics, Best or Worst, of all attributes, would years. neural networks, and artificial intelligence for occur simultaneously (Figure 11) . static and dynamic simulation of the Bavarian Stefan Calvert (BG India, E&P) has kindly Malm. Were porosity to be 25 pu, rather than shared his thoughts and spreadsheet the 10 pu of the above example, the focus examples, as this overview was put together. GeoNeural is also engaged in the development changes. Now attention is best devoted to and delivery of specialized training courses. In the ‘n’ exponent (Figure 12). Omissions, typos, etc. remain, of course, my the last two years, scientists from 17 countries (the author’s) responsibility. and 31 companies or universities have attended
The uncertainty in an Sw estimate is a Copyright 2009 Robert E Ballay, LLC. their presentations. dynamic issue, dependent upon the relative magnitudes of the input attributes which The second part of “Rolling the Dice,” are themselves linked, and thus may change including the references, will be printed in the through the reservoir. June issue of the Reservoir.
(to be continued...)
RESERVOIR ISSUE 5 • MAY 2010 23 Get Ahead of the Curve with IHS Combine the power of AccuMap® & PETRA® for your complete E&P solution
You rely on the power of your applications to make your plays count. We’ve got the solution. To find out more information visit us atGeoCanada 2010, booth 427. www.ihs.com/power
24 RESERVOIR ISSUE 5 • MAY 2010 Get Ahead of the Curve with IHS Combine the power of AccuMap® & PETRA® for your complete E&P solution
You rely on the power of your applications to make your plays count. We’ve got the solution. To find out more information visit us atGeoCanada 2010, booth 427. www.ihs.com/power
RESERVOIR ISSUE 5 • MAY 2010 25 STRUCTURAL SYNTHESIS OF EMERGING UNCONVENTIONAL OIL AND GAS PLAYS along the Fold Belt Region of the Western Canada Sedimentary Basin | by Zeev Berger*, Michelle Boast, and Martin Mushayandebvu (Image Interpretation Technologies Inc.) *corresponding author: [email protected], [email protected], [email protected]
INTRODUCTION The emergence of unconventional plays in North America provided us with the opportunity to critically review the use of integrated regional studies of high resolution aeromagnetic (HRAM) data, in several mature basins in the USA and Canada. The results of these studies have been compiled onto a series of structural/ tectonic maps that are designed to illustrate the relationships between basement and sedimentary structures and the presence of ‘sweet spots’ and ‘preferred trends’ within these unconventional plays (Figure 1). Our regional studies have been used by our clients to evaluated and rank new opportunities within the different resource play areas and to assist existing operators in making some crucial drilling decisions. For example, the ‘sweet-spots’ in the Woodford shale gas plays of the Anadarko and Delaware basins are clearly localized along major reactivated wrench-fault systems and related fracture systems (Figure 1). This information can be used to evaluate acquisition opportunities Figure 1. Schematic diagrams showing the relationships between structures and the location of “sweet spots” for as well as to position horizontal wells that some of the most active resource plays in North America. These relationships were established through integrated are designed to intersect areas of maximum tectonic studies similar to the one that is being presented in this paper. fracture densities. In contrast, in the Barnett shale play of the Dallas Forth Worth basin, light oil is emerging. This new play is located includes the northeast-trending Hay River the presence of wrench-fault systems has in the vicinity of an existing tight gas plays Shear Zone and Snowbird Suture Zone. a negative impact on the play because this of the Rock Creek and Ellerslie formations, These major Precambrian basement terrain area is known to have problems with deep which are also beginning to show some structures have been active throughout the formation water (Figure 1). new signs of life due to improved economic geological history of the basin. The second outlook for gas exploration in Alberta. The structural type comprises a number of linear Previously, we provided an in-depth look objective of this article is to illustrate the to curvilinear normal faults systems that at the structural setting of the Peace River tectonic framework and uniqueness of all trend more or less parallel to the fold Arch area and illustrated the control of these new active resource plays, and to belt. These ‘down to the basin’ normal basement and sedimentary structures on demonstrate the contribution of our regional faults developed during the formation of the the development of the emerging Montney/ approach to the exploration and exploitation foreland basin. The third type of structure Doig resource play (Berger et al., 2008; of these plays. consists of exposed and buried thrust faults Berger et al., 2009). The development of of the fold belt region, as well as several several new exploration opportunities have A SUMMARY TECTONIC MAP OF THE different types of reactivated and inverted lead us to revisit our tectonic work and FORELAND BASIN structures that have developed in response expand the interpretation further north A summary tectonic map of the WCSB to the evolution of the thrust belt to the and south along the foreland area of the foreland basin covering the location of the west. Western Canada Sedimentary Basin. To the new resource plays is presented in Figure 2. north, the Montney/Doig play has been This map is based on integrated analysis of Unique plays that demonstrate the relationship successfully extended into the moderately seismic data, well data, gravity and magnetic between these three distinct structural deformed region of the fore-foothills of data, as well as remote sensing images. types, and related Mesozoic sedimentation, northeast British Columbia. To the south, in Geological structures in this area can be are: 1) the mature play of the Montney/Doig the Ferrier/Pembina area, a new and exciting divided into three major categories. The of the Peace River Arch 2) the emerging unconventional resource play of Cardium first structural type is regional in scale and Montney/Doig play of the fore-foothills 3)
26 RESERVOIR ISSUE 5 • MAY 2010 the relatively unexplored Montney/Doig play of the Western Dawson Creek Complex 4) the fractured reservoir play of the Rock Creek and Ellerslie formations in Ferrier embayment area and 5) the Cardium light oil play of the Pembina field (Figure 2).
BASIC STRUCTURAL AND STRATIGRAPHIC MODEL FOR MESOZOIC CLASTIC SEDIMENTS The structural and sedimentary evolution of the foreland basin comprises the foreland basin phase and the Laramide reactivation and inversion phase (Figure 3). The foreland basin phase is characterized by the presence of normal faults that trend parallel to the mountain front. These faults are cut and offset by northeast-trending reactivated basement structures which represent elements of the major shear zones (Figure 3A). The effect of the two different set of structures on Mesozoic sedimentation is illustrated in Figures 3B and 3C. Faults that trend parallel to the mountain front locally enhance the development of the typical sedimentary prism to the west (Figure 3B). Whereas, the northeast-trending faults create well defined grabens and/or structural embayments which are locally filled with foreland basin sediments (Figure 3C). In northeast British Columbia, Figure 2. Tectonic summary map of the foreland basin of WCSB. The map illustrates the relationships between the extensional faults that trend parallel to major geological structures and the development of several unconventional resource plays in this area. the mountain front are known to control the development of reservoir fairways of the Baldonnel, Doig, and Montney formations. In contrast, the structural embayment of the Dawson Creek Complex is primarily responsible for controlling the development of the reservoir fairway of the Halfway Formation. In the Ferrier/Pembina area, extensional faults trending parallel to the mountain front control the development of reservoir fairways of the Cardium Formation, while the structural embayment of the Snowbird Suture zone clearly controls the development of a reservoir fairway of the Rock Creek and Ellerslie formations.
The Laramide reactivation and inversion phase of foreland basin development is characterized by the emergence of new detached thrust faults, as well as the reactivation and inversion of the existing normal faults (Figure 3D). Normal faults that parallel the mountain front may either act as a ‘ramp’ to the thrust faults (Figure 3E), or, they may be completely or partially inverted (Figure 3F). Northeast-trending faults of the structural embayment may become reactivated as strike-slip faults, leading to a northeasterly directed penetration of the thrust belt into the structural embayment. In the case of the Dawson Creek Complex, Figure 3. Schematic illustrations of the relationships between structures and sedimentation in the foreland basin of WCSB. Figures 3A, 3B, and 3C illustrate, in map and cross-section views, the effect of structures of Mesozoic the strike-slip reactivation of graben-related sedimentation during the formation of the foreland. Figures 3D, 3E, and 3F, illustrate the impact of Laramide (Continued on page 28...) thrusting, reactivation, and inversion.
RESERVOIR ISSUE 5 • MAY 2010 27 named the “Cypress-Julienne Fault Zone” or “CJFZ.” These structural features have clear topographic expressions that can be recognized with digital topographic data and other remote-sensing tools.
The synclinal valley, is also characterized by the presence of thick Montney/Doig reservoir which occurs immediately west of the CJFZ (Figure 4B). The Montney/ Doig reservoir shows an abrupt change in thickness across the normal fault suggesting that it acted as a major growth fault during the development of the foreland basin. A regional seismic line across the fault zone also shows that this fault was later reactivated and inverted during the development of the fold belt to the west (Figures 4C and 4D). These observations suggest that the Montney/Doig play is likely to be developed along the north-northwest trending axis of the undisturbed syncline, which can be regarded as an isolated structural basin of the Figure 4. Structural and stratigraphic play elements of the Cypress Creek play area. The structural setting of the play Montney/Doig reservoir. is illustrated in Figure 4A with digital topographic data. The presence of thick Montney/doig play is illustrated with Doig isopach map in Figure 4B. The process of inversion is demonstrated with the seismic line in Figure 4C. Whereas, The Montney/Doig play of the the abrupt increase in thickness of the Montney/Doig sediments across the fault is shown in Figure 4D. Western Dawson Creek Complex Exploration activities in the Western Dawson Creek Complex have been hampered by a lack of geological and geophysical controls as well as by limited access to exploration licenses. However, this vast area should be regarded as the last remaining frontier for new large opportunities in the Montney/ Doig resource play. A regional tectonic map of the Western Dawson Creek Complex is presented in Figure 5A. This map is based on the integration of several datasets including new high-resolution magnetic and gravity surveys, and detailed surface structure maps that were prepared for this study using high- resolution stereo photographs. The tectonic map was also constrained using available well information and a grid of 2D seismic lines that were made available by Lynx Information Technologies (e.g., Figures 5B and 5C). Figure 5. Structural and statigraphic play elements of the Western Dawson Creek Complex (Figure 5A). Numeral I: the location of the Peace River Arch Play, Numeral II: the fore-foothills play. The location of the seismic line The Western Dawson Creek Complex is shown in figures 5B and 5C is shown in red. Structural inversion of the Monias field is illustrated in Figures 5B and located between the well developed Peace 5C. The presence of northeast-trending anticlines and synclines is demonstrated with surface structures maps in River Arch play and the newly developed Figure 5D. (Berger, 2010) fore-foothills play. The structural setting of this area is quite unique because it contains (...Continued from page 27) area. Although both companies remain tight- a mixture of both the plays. Key features faults led to partial inversion of the graben’s lipped about their exploration strategies, it include deep-seated graben structures margins, as can be seen in the Monias fields. is possible to deduce, from available regional that display the same characteristics as the data sets, the key elements of this new and Groundbirch field; inverted fault structures The Montney/Doig play of the emerging resource play. Figure 4 focuses on similar to the CJFZ; and northeast-trending Fore-Foothills region the key Husky well and the area to the north synclinal valleys that developed inside the The past two years have been marked by an that was recently sold for an exceptionally Fort Saint John Graben (FSJG) along several unprecedented expansion of the Montney/ high price. The Husky discovery is located reactivated and inverted fault systems. Doig play into the fore-foothill region of in a large and structurally undisturbed northeast BC. This was mostly driven by the synclinal valley that has developed between Seismic lines across the Monias field can e x p l o r a t i o n s u c c e s s e s o f Ta l i s m a n i n t h e F a r r e l l the exposed thrust front to the west and a be used to demonstrate the process of Creek area and Husky in the Cypress Creek major thrust fault to the east which we have inversion of structures in this area (Figure
28 RESERVOIR ISSUE 5 • MAY 2010 5B and C). The flattened seismic line in Figure 5B shows the development of a thick Triassic section along the faulted edge of the FSJG. The original seismic line in Figure 5C, shows the present-day configuration of the inverted structure. Note that the inversion process lead to the development of a broad and relatively unstructured synclinal valley to the north of the Monias field. This feature is reminiscent of the synclinal valley that is being explored in the Cypress Creek area. The presence of northeast-trending synclinal valleys in the graben area can be further demonstrated with surface structure maps that were used in this study (Figure 5D).
The development of Tight Reservoir Gas Plays within the SnowBird Tectonic Zone and the Ferrier Embayment The Snowbird Tectonic Zone (SBTZ) is a large, northeast-trending, wedge-shaped, basement feature that is interpreted to be a series of highly deformed Lower Proterozoic rock units. The tectonic zone is dominated by the presence of northeast trending basement features that appear to have acted as major zones of weaknesses throughout the geological history of the Western Canada Figure 6. Structural and stratigraphic play elements of the Ferrier/Pembina field. The close spatial relationship between basement structures and the distribution of Rock-Creek reservoir is shown in Figures 6A and 6B. The Sedimentary Basin. The repeated reactivation control of basement and sedimentary structures on the development of “sweet spots” of different gas field is of basement structures within the Snowbird illustrated in Figure 6C. These formations include: Banff (in red), Ellerslie (in blue) and Rock Creek (in grey). Tectonic Zone has lead to the development Figure 6D illustrates the control of basement and sedimentary structures on distribution of Cardium oil in the of several fracture-related gas plays in the Pembina area. Mississippian Banff Formation, the Jurassic Rock Creek and Nordegg formations, and the structures that follow the major lithological ‘sweet spots’ and ‘preferred trends’ within Cretaceous Ellerslie and Cardium formations. units of the basement; northwest-trending the new light oil play that is being developed The reactivated basement structures also structures in the sedimentary section that cut in this area. controlled the depositional environment, and and offset basement structures; and major the migration and accumulation of oil in the circular features that reflect the presence CONCLUSION Cardium Formation of the giant Pembina of structural/topographic depressions in the Exploration and exploitation of resource plays field. basement floor. The bubbles on Figure 6C present new challenges to the geosciences show cumulative production from several community. Geologists and geophysicists, Control of the Snowbird Tectonic Zone gas fields that produce from the Rock Creek, who have been trained to search for well on the development of the Rock Creek Banff, and Ellerslie formations. There is strong defined structural and stratigraphic traps, Formation is shown in Figures 6A and 6B. control of both basement and sedimentary are now being asked to identify ‘sweet spots’ The preserved wedge of the Rock Creek structures on the development of ‘sweet- and ‘preferred trends’ that are controlled sediments is clearly confined to the aerial spot’ in these gas plays. by extremely subtle geological features. The extent of the SBSZ. Furthermore, variation identification of such trends can clearly make in the thickness of the Rock Creek Formation Also within the Ferrier Embayment, structural or break the economic success of most is largely controlled by the presence of control of basement on the Pembina oil field resource plays. This article demonstrates northeast-trending basement structures that is evident (Figure 6D). Basement structures that the emerging unconventional plays in can be seen on the magnetic data (Figure within the Pembina field include: 1) a major the foreland basin of the Western Canada 6B). The effect of basement structures on structural and topographic depression of Sedimentary Basin follow the same pattern. the Rock Creek Formation and other tight the basement that controls the location of That is, the location of most of the known reservoir rocks is most noticeable in the the main field; 2) a major northeast-trending ‘sweet spots’ can be clearly linked to basement southern half of the tectonic zone. This lithological boundary within the basement and sedimentary structures. However, this area has been named here as the Ferrier that forms the southern margin of the field; basin exhibits a wide variety of different Embayment. and, 3) a major northwest-trending fault that structural controls that must be recognized controls the location of the southern linear and carefully assessed in the context of the The control of basement structures on the arm of the field. These relationships between complex tectonic evolution of the basin. Such location of major gas fields in the Ferrier basement structures, which can be detected analysis may require the use of tools and Embayment area is illustrated in Figure 6C. with HRAM data, and accumulation of oil in techniques that are not routinely used for The dominant structural features in this area and around the Pembina field area could have conventional exploration. are northeast-trending basement involved a profound impact on the development of (Continued on page 30...)
RESERVOIR ISSUE 5 • MAY 2010 29 (...Continued from page 29) Formation in Peace River Country. Canadian settings and hydrocarbon traps of divergent REFERENCES AND SELECTED Society of Petroleum Geologists. The Reservoir v. (transtensional) wrench faults. In: Strike-slip bILIOGRAPHy 35, issue 7, p. 32-35. deformation, basin formation and sedimentation. Barclay, J. E., Krause, F. F., Campbell, R. I., K. T. Biddle and N. H. Christie-Blick (eds.). Society Utting, J. 1990. Dynamic casting and growth Canadian Discovery Ltd. 2007. Puskwaskau – of Economic Paleontologists and Mineralogists faulting: Dawson Creek Graben Complex, Beaverhill Lake Sand Oil, Alberta T71, R26W5. Special Publication 37, p. 51-77. Carboniferous-Permian Peace River Embayment, Canadian Society of Petroleum Geologists. The Western Canada. In: Geology of the Peace River Reservoir v. 34, issue 2, p. 33-36. Krause, F. F., Deutsch, K. B., Joiner, S. D., Arch. S. C. O’Connell and J. S. Bell (eds.). Barclay, J. E., Hall, R. L., and Hills, L. V. 1994. Bulletin of Canadian Petroleum Geology, v. 38a, Cant, D. J. 1988. Regional structure and Cretaceous Cardium Formation in the Western p. 115-145. development of the Peace River Arch, Alberta: A Canada Sedimentary Basin. In: Geological Atlas Paleozoic failed-rift system? Bulletin of Canadian of the Western Canada Sedimentary Basin. G. D. Berger, Z., Boast, M., and Mushayandebvu, M. Petroleum Geology, v. 36, p. 284-295. Mossop and I. Shetsen (eds). Alberta Reserach 2008. The contribution of Integreated HRAM Council and Canadian Society of Petroleum Studies to Exploration and Exploitation of Davies, G. R. 1997. The Triassic of the Geologists, p. 375-385. Unconventional Plays in North America. Part 1: Western Canada Sedimentary Basin; tectonic The Peace River Arch. Reservoir, v. 35, Issue 10, and stratigraphic framework, paleogeography, Norgard, G. 1997. Structural inversion of the p. 42-47. paleoclimate, and Biota. In: An issue focused middle Triassic Halfway Formation, Monias field, on the study of Triassic of the Western Canada northern British Columbia. In: An issue focused Berger, Z., Boast, M., and Mushayandebvu, M. sedimentary basin. Bulletin of Canadian Petroleum on the study of Triassic of the Western Canada 2009. The contribution of Integreated HRAM Geology, v. 45, no. 4, p. 434-460. Sedimentar y Basin. T. F. Maslow and J. Wit tenburg Studies to Exploration and Exploitation of (eds.). Bulletin of Canadian Petroleum Geology, v. Unconventional Plays in North America. Part 2: Davis, G. R. and Smith, L. B. 2006. Structurally 45, no. 4, p. 614-623. Basement structure control on the development controlled hydrothermal dolomite reservoir of the Peace River Arch’s Montney/Doig resource facies; an overview. In: Structurally controlled O’Connell, S. C., Dix, G. R., and Barclay, J. E. plays. Reservoir, v. 36, Issue 2, p. 40-45. hydrothermal alteration of carbonate reservoirs. 1990. The origin, history, and regional structural Bulletin of the American Association of Petroleum development of the Peace River Arch western Berger, Z. 2010. Western Dawson Creek tectonic Geologists, v. 90, no. 11, p. 1641-1690. Canada. In: Geology of the Peace River Arch. study by IITECH. Unpublished. S. C. O’Connell and J. S. Bell (eds.). Bulletin of Harding, T. P., Verbuchen, R. C., and Christie- Canadian Petroleum Geology, v.38a, p.4-24. Canadian Discovery Ltd. 2008. The Doig Blick, N. 1985. Structural styles, plate tectonic
30 RESERVOIR ISSUE 5 • MAY 2010 ROCK SHOP
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RESERVOIR ISSUE 5 • MAY 2010 31 GEOCANADA 2010 WORKING WITH THE EARTH
Calgary, Alberta – May 10-14, 2010 [email protected] TECHNICAL PROGRAM
The GeoCanada 2010 Technical Program exemplifies why this stay on the cutting edge of the latest industry developments. The Convention is a once-in-a-decade event. The Technical Sessions full program of oral sessions features ten concurrent rooms running span the breadth of the Earth Sciences, and this Convention is a a total of 77 sessions over the course of four days (Monday, May 10 must-attend event for anyone looking to increase their skill-set or – Thursday, May 13) – over 500 oral presentations to choose from!
Northern Groundwater Interplay between Hydrothermal Paleoproterozoic Tectonic Cordilleran Comparative Development: Contamination Thermodynamics, Monday Processes in Ore Signal Processing and Assembly of the W. Canadian Magmatism, Carbonates / Oil Studies of a General Structure Resources, Shield: New Findings and and Remediation Kinetics, and May 10 AM Genesis and Mineral Algorithms Tectonics, and and Gas Pools Spectrum of and Tectonics Sediments, Implications for Paleocontinental 1: Innovations in Deformation in Deposit Discovery Resources Shale Plays and People Reconstruction Bioremediation Metamorphism
Northern Interplay between Paleoproterozoic Tectonic Cordilleran Fold Practical Characterization, Development: Thermodynamics, Modern Monday Hydrothermal Systems Signal Processing and Assembly of the W. Canadian General Hydrogeology and Thrust Belt Applications of Operations and Resources, Shield: New Findings and Kinetics, and Analogs for the May 10 PM and Ore Deposits Algorithms Contributions Structural Geology New Petrophysical Production of Sediments, Implications for Paleocontinental Deformation in McMurray Fm and Geophysics Technologies Shale Gas and People Reconstruction Metamorphism
Groundwater Interplay between Organic Geochemistry and Contamination and Clastic Stress, Strain, Thermodynamics, Frontier Practice - Tuesday Rise of Oxygen and Advances in Petrology: Applications in Remediation 2: New Sedimentology Advances in Core Anisotropy, and Kinetics, and Professionalism May 11 AM Early Life on Earth Seismic Acquisition Exploration Geology and Methods in Soil 1: Fluvial/Alluvial Analysis Techniques Induced Fractures Deformation in at the forefront Environmental Issues and Groundwater Systems Metamorphism Remediation
International Exploration Interplay between Geohazards - Risks and Development of Mineral Stress, Strain, Geological Processes Thermodynamics, Tuesday GeoScience Seismic Interpretation Climate Change Identification, General Poster Basin-Centered and Energy Resources / Anisotropy, and over Time in Kinetics, and May 11 PM Education and Case Studies Through Time Mitigation, and Sessions Tight Gas Offshore Canada Challenge Natural Fractures Central Canada Deformation in Management Solution and Discovery Metamorphism
Tectonostratigraphy Comparative Energy Practice - Resources Groundwater Exploration Geological and Interplay of Geoengineering Oil Sands Mining: Wednesday Future of Geosciences Communicating Earth Sequence Stratigraphy/ Planetary Geology: Data Management, and Management 1: Environments Hosting Natural Fractures Carbon Water and May 12 AM in Canada Sciences to the Public Seismic Stratigraphy Meteorites, Estimation, and Reporting Basin-scale Models Uranium Deposits with Sedimentary Mineralization Landscape Design Impacts, and More Facies
Comparative Communicating Groundwater Exploration Geological General Session on Clastic Carbon Storage - Wednesday Great Canadian Subsurface Imaging Planetary Geology: Heavy Oil- Earth Sciences to the and Management 2: Environments Hosting Mineralogy, Petrology, Sedimentology 2: From Concept to May 12 PM Lagerstatten and Structure Meteorites, Subsurface Public Workshop Aquifer-scale Methods Uranium Deposits Geochemistry Shore to Shelf Implementation Impacts, and More
Northern Mineral Exploration Geoscience Information Ichnology / Cratons, Imaging the Earth: New Development: Advances in Stable Isotope Geological Clastic and Mining Thursday Management in a Advances in Kimberlites, and Techniques and Advances Tectonics, Circum- Geochemistry in Energy and Environments Hosting Sedimentology Geothermal Energy practice: The Role May 13 AM Spatially enabled Geomodelling Diamonds Arctic Geology, and Environmental Research Uranium Deposits 3: Deep Water of Professional Online World Paleogeography Geoscientists
Ancient Life on Many Northern Scales: Papers on Development: Practical Communicating Thursday Cratons, Kimberlites, Potential Field and Electrical Long-term Nuclear Waste Palynology, Paleontology, Recent Advances in Tectonics, Circum- Applications in Earth Sciences May 13 PM and Diamonds Methods in Exploration Management in Canada and Paleoecology Structural Mineralogy Arctic Geology, and Geomodelling to the Public in Honor of Prof. Paleogeography Leonard v. Hills
32 RESERVOIR ISSUE 5 • MAY 2010 GEOCANADA 2010 WORKING WITH THE EARTH
Calgary, Alberta – May 10-14, 2010 [email protected] TECHNICAL PROGRAM
From Monday to Thursday, each day of presentations begins with Displayed here is an outline of the Technical Program. visit www. a special plenary speaker. In addition, general poster talks will be GeoCanada2010.ca to see the list of speakers and talks. Please note taking place on the Exhibit Floor Monday to Wednesday, with over that all information is subject to change. visit www.GeoCanada2010. 300 authors presenting their work; and specialized poster sessions ca for the most up-to-date information. are scheduled for Tuesday afternoon in Hall D.
Northern Groundwater Interplay between Hydrothermal Paleoproterozoic Tectonic Cordilleran Comparative Development: Contamination Thermodynamics, Monday Processes in Ore Signal Processing and Assembly of the W. Canadian Magmatism, Carbonates / Oil Studies of a General Structure Resources, Shield: New Findings and and Remediation Kinetics, and May 10 AM Genesis and Mineral Algorithms Tectonics, and and Gas Pools Spectrum of and Tectonics Sediments, Implications for Paleocontinental 1: Innovations in Deformation in Deposit Discovery Resources Shale Plays and People Reconstruction Bioremediation Metamorphism
Northern Interplay between Paleoproterozoic Tectonic Cordilleran Fold Practical Characterization, Development: Thermodynamics, Modern Monday Hydrothermal Systems Signal Processing and Assembly of the W. Canadian General Hydrogeology and Thrust Belt Applications of Operations and Resources, Shield: New Findings and Kinetics, and Analogs for the May 10 PM and Ore Deposits Algorithms Contributions Structural Geology New Petrophysical Production of Sediments, Implications for Paleocontinental Deformation in McMurray Fm and Geophysics Technologies Shale Gas and People Reconstruction Metamorphism
Groundwater Interplay between Organic Geochemistry and Contamination and Clastic Stress, Strain, Thermodynamics, Frontier Practice - Tuesday Rise of Oxygen and Advances in Petrology: Applications in Remediation 2: New Sedimentology Advances in Core Anisotropy, and Kinetics, and Professionalism May 11 AM Early Life on Earth Seismic Acquisition Exploration Geology and Methods in Soil 1: Fluvial/Alluvial Analysis Techniques Induced Fractures Deformation in at the forefront Environmental Issues and Groundwater Systems Metamorphism Remediation
International Exploration Interplay between Geohazards - Risks and Development of Mineral Stress, Strain, Geological Processes Thermodynamics, Tuesday GeoScience Seismic Interpretation Climate Change Identification, General Poster Basin-Centered and Energy Resources / Anisotropy, and over Time in Kinetics, and May 11 PM Education and Case Studies Through Time Mitigation, and Sessions Tight Gas Offshore Canada Challenge Natural Fractures Central Canada Deformation in Management Solution and Discovery Metamorphism
Tectonostratigraphy Comparative Energy Practice - Resources Groundwater Exploration Geological and Interplay of Geoengineering Oil Sands Mining: Wednesday Future of Geosciences Communicating Earth Sequence Stratigraphy/ Planetary Geology: Data Management, and Management 1: Environments Hosting Natural Fractures Carbon Water and May 12 AM in Canada Sciences to the Public Seismic Stratigraphy Meteorites, Estimation, and Reporting Basin-scale Models Uranium Deposits with Sedimentary Mineralization Landscape Design Impacts, and More Facies
Comparative Communicating Groundwater Exploration Geological General Session on Clastic Carbon Storage - Wednesday Great Canadian Subsurface Imaging Planetary Geology: Heavy Oil- Earth Sciences to the and Management 2: Environments Hosting Mineralogy, Petrology, Sedimentology 2: From Concept to May 12 PM Lagerstatten and Structure Meteorites, Subsurface Public Workshop Aquifer-scale Methods Uranium Deposits Geochemistry Shore to Shelf Implementation Impacts, and More
Northern Mineral Exploration Geoscience Information Ichnology / Cratons, Imaging the Earth: New Development: Advances in Stable Isotope Geological Clastic and Mining Thursday Management in a Advances in Kimberlites, and Techniques and Advances Tectonics, Circum- Geochemistry in Energy and Environments Hosting Sedimentology Geothermal Energy practice: The Role May 13 AM Spatially enabled Geomodelling Diamonds Arctic Geology, and Environmental Research Uranium Deposits 3: Deep Water of Professional Online World Paleogeography Geoscientists
Ancient Life on Many Northern Scales: Papers on Development: Practical Communicating Thursday Cratons, Kimberlites, Potential Field and Electrical Long-term Nuclear Waste Palynology, Paleontology, Recent Advances in Tectonics, Circum- Applications in Earth Sciences May 13 PM and Diamonds Methods in Exploration Management in Canada and Paleoecology Structural Mineralogy Arctic Geology, and Geomodelling to the Public in Honor of Prof. Paleogeography Leonard v. Hills
RESERVOIR ISSUE 5 • MAY 2010 33 GEOCANADA 2010 Core Conference Program
The GeoCanada 2010 Core Conference Pedogenic and Groundwater Silcretes in Saleski and Burnt Lakes Leases Committee is pleased to announce the following Paleovalley Filling J3 and J2 Sandstones, J. Hopkins, K. Wilde, S. Christiensen, and list of core displays that capture the many facets Medicine River Area, West Central K. Barrett of “Working with the Earth,” the theme of Alberta, Canada GeoCanada 2010. On display will be examples Federico Krause and Andrea F. P. Mellor The Wabiskaw D Member, Clearwater of new methodologies and technical applications Formation: A World Class Oil Sands in evaluation of the subsurface, examples of Sedimentological and Ichnological Reservoir Hosted in an Incised Valley carbonate and clastic depositional systems and Assessment of a Regional Sequence Complex the new paradigm of subsurface exploitation Boundary / Transgressive Ravinement Daren J. Shields and Rudy Strobl encompassed by unconventional heavy oil, shallow Surface, Bluesky-Gething Interval, gas, tight gas, and shale gas opportunities. Northern Alberta Paleogeographic Distribution of the Lower Cassandra Frosini, Stephen M. Hubbard, and Cretaceous McMurray (Dina) Formation in This year the Core Conference will be presented Kaylee D. Anderson Northeastern Alberta and Northwestern on Saskatchewan Thursday, May 13 9:00am – 4:00pm Facies Architecture of the Upper Mannville Dan Kohlruss, Jenna Phillips, Mike Ranger, Friday, May 14 8:30am – 2:00pm Group (Sparky, Waseca, and McLaren Murray Gingras, and Per Pedersen Formations), West-Central Saskatchewan Remember, your delegate badge allows you free Alireza Morshedian, James A. MacEachern, and Stratigraphy and Sedimentology of access to public transit for the week of the Shahin E. Dashtgard the Tukweye Member of the Martin Convention – public parking at the ERCB is House Formation, Mackenzie Corridor, extremely limited and pay-only. METHODOLOGIES AND Northwest Territories APPLICATIONS Julia E. A. Davison, Stephen M. Hubbard, Need directions? Walking from Brentwood Thomas Hadlari, and Dennis Meloche C-Train Station (approx 8 mins) Reservoir Characterization by Means 1. Head northwest towards 33 St NW of Drill Cuttings: An Example of UNCONVENTIONAL SHALE 2. Slight left at Research Rd NW Hydrothermal Dolomite in Cuttings from GAS, TIGHT GAS, AND 3. Turn left at 33 St NW the Monkman Area of British Columbia SHALLOw GAS 4. Turn right at Research Way NW Tim Hartel (ERCB will be on the left) Unconventional, Low-Permeability Chemostratigraphic Characterization Offshore Marine Reservoir Facies, with The Tentative program will include presentations of Incised Valley Fill Sequences from the Hiatal Conglomerates Developed at on: Lower Cretaceous Mannville Group and Internal Stratigraphic Unconformity the Basal Colorado Sandstone Surfaces - the Alderson Member of the Milly Wright, Kenneth Ratcliffe, and Brian Zaitlin Milk River Formation, Upper Cretaceous, DEPOSITIONAL SySTEMS: Southern Alberta and Saskatchewan CARbONATE How to Log Core (With Examples Shaun O’Connell Subaerial Unconformities in the Upper from the Williston Basin of Southeast Devonian Snipe Lake Reef Complex, West- Saskatchewan) Horn River Shales…Boring and Black? Or Central Alberta Don Kent and John Lake Beautifully Complex? Beverly Mack and Nancy Chow Shelley Leggitt, Shona Ness, and Roy Benteau Pressure Decay Profile Permeametry Reservoir Characteristics of the Birdbear Lou Monahan Integrated Sedimentology, Ichnology, Formation in West-Central Saskatchewan and Petrography of Unconventional Gas Chao Yang Using Paralic Coal as an Indicator of Reservoirs of the Montney Formation; Accommodation Space and Correlation Dawson Creek Region, Northeastern B.C. Geology of the Jurassic Shaunavon Tool in Terrestrial Sediments: Examples Peter Proverbs, Kerrie L. Bann, and Chris Fratton Formation, Southwestern Saskatchewan from the Falher and Mannville Arden Marsh and Gavin Jensen J. A. Wadsworth Correlating the Subsurface Nikanassin Group to an Outcrop near Grande Cache, New Production and Facies Model for the HEAVy OIL Alberta Devonian Three Forks / Torquay Package Rachael M. Rose, Ross B. Kukulski, Brett D. in Southern Saskatchewan Lithofacies Identification and the Miles, M. Keegan Raines, Andrew Leier, Holly Erik Nickel Implications for SAGD Well planning in Rose, Tanya Dixon, and Cassandra Frosini DEPOSITIONAL SySTEMS: the McMurray Formation, Christina Lake SANDSTONE Area, Alberta Potential Unconventional Gas Reservoirs Travis Shackleton, Robert Gardner, Sung Youn, of Alberta - What Do They Have Sedimentology of the Lower Vivian Grace Eng, and Lori Barth Formation: An Extensive Lowstand Fluvial in Common? What are the Main System, Marañon Basin, Peru Differences? Regional Stratigraphy and Reservoir Units Doug Cant Mark Radomski and Mark Hearn of the Grosmont Formation: Laricina’s
34 RESERVOIR ISSUE 5 • MAY 2010 GEOCANADA 2010 Exhibit Floor
We would like to thank all the exhibitors for participating in the 2010 Convention.
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CANADIAN COUNCIL Canadian Federation Fédération OFcanadienne PROFESSIONAL of Earth Sciences des Sciences de la terre GEOSCIENTISTS
RESERVOIR ISSUE 5 • MAY 2010 35 GEOcanada 2010 Exhibitor List The 2010 Convention Committee thanks Canadian Discovery Ltd...... 313 Geogiga Technology Corp...... 1025 the following exhibitors for participating in Cdn. Natl. Stock Exchange...... 915 GeoEdges, Inc...... 123 GeoCanada this May: Cdn. Federation of Earth Sciences...... 1038 geoLOGIC systems ltd...... 101 CGGVeritas ...... 109 Geological Association of Canada...... 1041 Company Name ...... Booth Number Continental Imaging Products ...... 1014 Geological Rentals & Services Inc...... 730 Aarhus Geophysics...... 1022 Continental Laboratories / Geosoft...... 917 acQuire ...... 334 CL Consultants ...... 314 Geotech Ltd ...... 821 Actlabs...... 414 Core Laboratories Canada Ltd...... 1009 GNS Science/ Rafter Radiocarbon...... 616 Aeroquest Surveys ...... 623 CREWES, University of Calgary ...... 332 Global Seismic Repairs Inc ...... 219 AGAT Laboratories Ltd...... 323 Canadian Society of Exploration GORE...... 312 Alberta Geological Survey ...... 929 Geophysyicists ...... 1037 Government of Nunavut ...... 938 Alberta Research Council ...... 813 Canadian Society of Petroleum Green Imaging Technologies, Inc...... 217 ALT - Advanced Logic Technology...... 612 Geologists ...... 1033 Green’s Rock & Lapidary Ltd...... 636 American Association of Petroleum Canadian Well Logging Society...... 1032 Gushor Inc...... 912 Geologists ...... 1026 Datalog Technology ...... 720 Halliburton ...... 901 APEGBC ...... 935 dGB Earth Sciences USA LLC...... 540 Horizontal Solutions International...... 318 APEGGA ...... 937 Digital Formation ...... 539 Hydrocarbon Data System ...... 319 Baker Hughes...... 418 Divestco Inc...... 433 IHS...... 427 Blue Marble Geographics...... 926 ESG Solutions ...... 523 Ingrain ...... 1028 Boyd PetroSearch ...... 441 ESRI Canada...... 328 International Assn. of Calgary Rock & Materials Services Inc. ..827 Fugro ...... 1015 Hydrogeologists...... 1036 Cdn. Clean Water Technologies Inc .....1023 GEDCO ...... 329 IODP Canada & ICDP Canada...... 1027
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36 RESERVOIR ISSUE 5 • MAY 2010 ION ...... 513 Telus - Spot Imagery ...... 1122 Dept. of Earth Sciences ...... 232 Isobrine Solutions ...... 633 Terraplus Inc...... 614 University of Western Ontario ...... 234 Isomass Scientific Inc...... 819 Tetrale Inc...... 1110 University Outreach ...... 1029 iSys - The Imaging Systems Group Inc. ...537 TGS ...... 625 Uretek Canada Inc...... 321 Kinetex Multi-Component Services ...... 542 Thermo Scientific Niton Analyzers ...... 817 Valtus Imagery Services ...... 621 Komarevich Originals Ltd ...... 222 TOTAL Gas Detection Ltd...... 815 VSG - Visualization Sciences Group ...... 738 Light Up the World ...... 1100 Transform Software and Services Inc...... 911 Weatherford Canada ...... 601 Little Rock Document Services Ltd...... 325 Trivision Geosystems Ltd...... 635 WellSight Systems Inc...... 837 Manitoba Innovation, Energy and Mines .936 United Oil & Gas Consulting Ltd...... 639 Yukon Government, Oil & Gas Matrix Solutions Inc...... 927 University of Alberta ...... 224 Resources ...... 932 MicroSeismic, Inc...... 609 University of Calgary – Current as of March 22, 2010 Mineralogical Association of Canada ...... 941 Dept. of Geoscience ...... 228 MJ Systems ...... 900 University of Toronto ...... 230 National Oilwell Varco ...... 415 University of Waterloo, Natural Resources Canada/GEM ...... 928 Neuralog ...... 413 Newfoundland and Labrador (Natural Rescources) ...... 724 Northwest Territories Geoscience Office ...... 933 NRC Research Press ...... 939 Nuclear Waste Management Organization ...... 229 Oce-Canada Inc...... 920 Ontario Geological Survey ...... 930 OYO Geo Space Canada, Inc...... 714 Packers Plus Energy Services ...... 829 Paradigm ...... 507 Pason Systems Corp...... 631 Petrocraft Products/ Datacon Core Image ...... 909 Petrosys Canada Inc...... 914 Picarro Inc...... 918 Pro-Geo Consultants ...... 514 Quest Coring Services ...... 324 Rocking Horse Energy Services Inc. ....1108 Roxar Canada Ltd...... 801 RPS Energy ...... 501 Sample Pro Ltd...... 627 Saskatchewan Ministry of Energy and Resources ...... 934 Saudi Aramco ...... 807 Schlumberger ...... 301 SDI (System Development Inc.) ...... 923 SeisWare International Inc...... 531 Seismic Micro Technology (SMT) ...... 335 SGS Canada Inc...... 722 Sigma Explorations Inc...... 615 Society Of Exploration Geophysicists ...... 315 Southern Alberta Institute of Technology ...... 330 Straterra Inc...... 322
RESERVOIR ISSUE 5 • MAY 2010 37 UNIVERSITy OUTREACH at GeoCanada 2010 | By Cory MacNeill
The Annual CSPG/CSEG University register online before April 29, 2010 get a volunteer at the convention. A minimum of Outreach Booth will be the place to be for special rate of just $75.00 for the entire eight hours of service is required to receive students at GeoCanada 2010. The University convention. the refund and volunteer positions are Outreach committees have been working available in the following areas: Technical hard to ensure that there are numerous Any students interested in getting their Sessions, Information Booth, Registration opportunities for students to network and registration fee refunded and capitalizing on Package Pick-Up, and the Core Conference. learn at GeoCanada 2010. Students who even more networking opportunities can Contact [email protected] for more information or to sign up.
Students attending the convention will want to find the University Outreach Booth in the exhibit hall. This is where they can enter draws for some great prizes, meet Come to ICE and benefit from the networking, up with fellow students, and have a place to call their own. There is even a foosball table science and suppliers you’ll discover: to be won for the club room of their home university!
The University Outreach Booth is also • Featured Speaker Luncheon with Scott Tinker the place where students can find out • Core conference and register for the Challenge Bowl, get information about some of the scholarships • 11 short courses and awards available and sign up for student • 16 field trips membership in the CSPG or CSEG. • Quality technical program covering the latest Registration for the annual student-only geosciences information field trips will begin at the convention. • Networking/social events This year’s CSPG student field trip will be • Lively exhibition featuring the latest technologies taking place on June 23, 2010 and is titled ‘Aspects of Marginal Marine Sedimentology and Stratigraphy of the Bearpaw-Horseshoe Canyon Formation Transition near Drumheller, Alberta.’ The annual CSEG student field trip will be occurring a few days later on June 27, 2010 and includes learning about all aspects of the seismic industry.
In addition, there will be two activities for students taking place away from the convention location. There will be a downtown field trip, which will include visits to Talisman Energy, Trident Exploration, and Key Seismic Solutions. The second off-site activity is the Student Pub and Disco Night. This event will be on Wednesday, May 12 at Local 522 Pub in downtown Calgary, and promises to be a fun night.
For more information about GeoCanada 2010, and to register, visit www. geocanada2010.ca. For questions about the events and opportunities for students, please contact Cory MacNeill: cmacneill@ tridentexploration.ca. Registration opens in May! www.AAPG.org/Calgary 38 RESERVOIR ISSUE 5 • MAY 2010 Come to ICE and benefit from the networking, science and suppliers you’ll discover:
• Featured Speaker Luncheon with Scott Tinker • Core conference • 11 short courses • 16 field trips • Quality technical program covering the latest geosciences information • Networking/social events • Lively exhibition featuring the latest technologies
Registration opens in May! www.AAPG.org/Calgary RESERVOIR ISSUE 5 • MAY 2010 39 (...Division Talk continued from page 12) Tsukuba, Japan in 1997. After graduation in Japan, crabs (e.g., Uca) occur. Conclusively, he moved to Singapore to work with a Japanese Psilonichnus quietis is interpreted to represent geological consulting firm and immigrated to 10th ephemeral to semi-permanent dwelling Canada in 2003. He is a member of APEGGA behaviors (primary level) and breeding and CSPG. annual behavior (secondary level), probably produced by Ocypodid crabs similar to Ocypode and/ Information long-time or Uca, employing deposit-feeding and/or This event is jointly presented by the Alberta scavenging modes of trophic style. Palaeontological Society, Mount Royal University members and the CSPG Palaeontology Division. For details or Biography to present a talk in the future please contact CSPG Myo Myint is a consulting geologist (self-employed) Paleo Division Chair Philip Benham at 403-691- Reception specializing in wellsite and petroleum exploration 3343 or [email protected]. Visit the and development operations in the Western APS website for confirmation of event times and HAVE YOU BEEN A MEMBER OF Canada Sedimentary Basin and International upcoming speakers: http://www.albertapaleo.org/. CSPG FOR 30+ YEARS (SINCE AT areas. He received a Ph.D. from the University of LEAST 1980)? If so, you should have already received your invitation to the 10th Annual Long- Time Members Reception. This popular event is a complimentary cocktail party organized exclusively for our more senior members in appreciation of their long commitment to CSPG. Attendance is by invitation only.
This year the reception will take place Tuesday, May 11, 2010 from 4:00 to 6:00 p.m., and will be held once again at the Rotary House on the Stampede Grounds. It will be held in conjunction with the GeoCanada 2010 Convention, but you need not be registered for the Convention in order to attend the event.
As is tradition we will be presenting the Honourary Membership Awards at the Long-Time Members Reception. This year’s recipients are Ashton Embry, John Maher, and Rick Young.
If you are a long-time member (30+ years) in good-standing, and have not received an invitation yet, please call Dayna Rhoads, Heavy Oil Results CSPG Registration Coordinator at 403- 513-1229. She will verify your start-date CGGVeritas delivers unrivalled processing and imaging technology, expertise and ensure you are on the invitation list. and service to optimize your heavy oil production results:
• REVIVE5D interpolation to increase geometry density and resolution • Unmatched 4D processing experience An Excellent • Multicomponent processing provides valuable insights for reservoirs where conventional seismic fails to deliver Networking • Adaptive polarization filter to effectively isolate, characterize and attenuate Opportunity the high-amplitude, aliased groundroll noise, revealing the P-wave image. Awaits You! Please join us for coffee at the 2010 GeoCanada Convention booth #109. Please contact volunteers@ Contact: geocanada2010.ca. (403) 205-6000
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40 RESERVOIR ISSUE 5 • MAY 2010 STRATEGIC GEOSCIENCE | By D. T. Sneddon, P.Geol.
Every working (and semi-working) geoscientist Corporate vision statements tend to be boring: This is where the Continuing Professional is a business. Every good and successful “Success Corporation will provide shareholder Development Program (CPD) comes in, business needs a business plan to ensure value by wise investment of retained earnings” particularly if you need to expand your scope continuing success. Every good business plan doesn’t exactly catch a romantic’s view of life, of practice or simply maintain your position includes a number of key elements: but it is certainly clear and concise. It also in the pack. It will guide your thinking and • Corporate Strategy/Strategic Plan provides a point of departure for the rest of goad you to action. You, as a professional • A vision statement the corporation’s business plan. A personal member of APEGGA, are obliged to earn • A mission statement vision statement that is equally pragmatic 240 Professional Development Hours (PDH) • A list of achievable goals might go something like this: over each three-year period anyway, and • R&D Progress and Plan “Joe Doaks, P.Geol. will provide a growth a time investment plan will optimize the • Marketing and Sales environment for Jane Doaks and his value received for that commitment. CSPG, • Human Resources dependants and will provide excellent CSEG, and CWLS membership gives you • Financial Operations and Plans professional services to his community access to a wealth of CPD opportunities. The • Threats and Opportunities and clients.” technical societies and APEGGA cooperate • Income/Expense Statement for last year fully to ensure you get a good return on your • I ncome/Expense pro forma for next year Equally pragmatic and slightly more poetic investment and the public benefits from what • Capital Expenses and Investments would be: you learn. Courses and conferences with • Balance Sheet at fiscal year end “Jane Doaks, P.Geo. will serve her fellow technical, business, and soft skills are all eligible citizens through volunteering as a role for CPD credits. To build a full 30-page business plan is a model for young people and through rewarding but time-consuming task and isn’t providing professional services to the The categories of CPD are in Professional for everyone. Most people can do what community in strict conformity with the Practice Guide 8 (details downloadable at amounts to an Executive Summary business APAEGGA Code of Ethics.” http://www.apegga.org/Regulatory/CPD/toc. plan in an evening, or a weekend, which will Having established a vision of who you want html): keep them on track for the planning year. to be, the next big question involves where • Professional Practice you want to go and how you plan to get there. • Formal Activity Thanks to the Canada Revenue Agency, A mission can be really simple (“I will find • Informal Activity those of us of the consulting persuasion need oil”) or somewhat more complicated (“My • Participation to prepare the old year income/expense mission is to become an expert Holocene • Presentations statement anyway and most of us keep a stratigrapher and to bring fresh water to • Contributions to Knowledge number of them in our shoebox from past third world countries”). Once your vision is years, which can be a very useful planning clear and your mission is well defined, goals You can value/cost the time investment in tool. Similarly, APEGGA insists on tracking are a snap since you will focus only on those category using the following methods: your Continuing Professional Development options that contribute to your vision and (CPD) score. This data can be turned to your mission in life. All you have to do is list all the Professional Practice is straight forward: advantage if you use it as background to your currently available opportunities, scratch out APEGGA spots you 50 PDH, with 15 hours of personal growth strategy. those that do not contribute to getting you work equivalent for 1 PDH for normal practice. to where you want to be over your planning That is equivalent to three full months on the A good time for doing the Vision, Mission, horizon and then listing them in priority job. If you are not working, or working part and Goals statements is always right now. from highest return on investment through time, you can apply for a reduction to 30 PDH Our society places the highest of all values on to lowest. when carrying out your annual CPD reporting. human life, but for some reason most of the If you are a full-time graduate student, your people I know seem to place a low value on Next, you must plan the investment PDH load can be reduced to 30, with 30 PDH their own time. This continues to perplex me, required to achieve your highest priorities. (Continued on page 43...) because our lives are the only thing we truly own. The reality is that the only time we have to work with is a succession of “now” states The 7th Annual Friends of Science Luncheon and we literally use them or lose them and being scarce, those hours and days have real Global Warming: Where’s the Alarm? economic value.
SPONSORED BY We all have a vision of life and it is a valuable Featuring John Christy, PhD thing to actually write it down somewhere. Professor of Atmospheric Science Plato quotes Socrates in the Dialogues, University of Alabama at Huntsville specifically the Apology, as saying “The Monday, May 17th, 2010 unexamined life is not worth living.” A brief Registration at 11:30 am, Metropolitan Conference Centre vision statement is a good way to begin that 333 – 4th Avenue SW, Calgary, Alberta examination, usually with the help of one’s significant other who is generally at the core TICKETS: $75 or $675/table of nine. RSVP by May 13, 2010 of our personal business plan and a joint For more information: E-mail: [email protected] or Call: (403) 830-1735 vision is always critical to personal success. CSPG Reservoir Ad 1/6 Page horizontal, 4-13/16 x 2-5/16, RESERVOIR black and ISSUE white 5 • MAY 2010 41 It is this easy to find your data.
NeuraDBTimely Access to Trusted Data NeuraDB is the solution to find, load, manage, QC, store and deliver the wide variety of critical E&P data that your organization uses. It is a vendor-neutral, well-based data management system to compliment your existing infrastructure. NeuraDB allows your staff to gather and load all relevant data from a single trusted source.
• Well data master • Raster and digital log repository • Physical data inventory • Well File System for reports, maps, etc. • Select data from ArcGIS interface • View data immediately or deliver to your application
For more information visit GeoCanada Booth 413 or call 403.809.6598
© 2010 Neuralog • www.neuralog.com • 1.281.240.2525 • 1.800.364.8728
42 RESERVOIR ISSUE 5 • MAY 2010 (...Continued from page 41) associations or managerial associations, self- 1 PDH, to a maximum of 20 in any given granted for a successful thesis defense. directed study, and meetings where technical reporting year. It is this and/or professional issues are discussed in Formal Activity represents a significant an organized forum are worth in PDH. The Presentations and gaining experience to investment in new knowledge. The formal general rule for these gatherings that normally refine presentation skills that are outside activity is a course of study at a university or are less than a half-day in duration is that one normal work are also PDH earners. Examples easy to find college; a professional development seminar activity hour equals 1 PDH. Thus a monthly/ would be doing a PowerPoint presentation on or course like those offered by APEGGA bimonthly CSPG or CSEG technical luncheon a geoscience topic for a community library at the Annual Conference and other times or CSPG Division noon presentation will be or museum, presenting a technical paper at a your data. during the year; attendance in a course or field worth 1 PDH. As per Formal Activities, a conference or seminar outside work hours, trip associated with a convention or technical total of 30 PDH can be used in any reporting or leading a discussion at a public meeting. conference like the annual Geoscience year, with any surplus carried over to the One hour of preparation or delivery is worth Convention sponsored by the Canadian next. Since these activities are the lifeblood 1 PDH. Please note that if your topic is really Society of Petroleum Geologists, the Canadian of the technical societies, participation is popular and you are able to present the same Society of Exploration Geophysicists, and the important both for our own professional talk more than once, you can only claim the Canadian Well Logging Society. These activities development and for the continuing health of first presentation for PDH. Once again, the are worth 1 PDH per hour of attendance and the sponsoring society. annual maximum number of PDH is 20. if the sponsor of the course has qualified to grant Continuing Education Units (CEU), Participation means participation as a Contributions to Knowledge is the each CEU equals 10 PDH. you can use up to volunteer on civic, APEGGA, technical toughest category, but undoubtedly the most 30 PDH in any given year and carry over any society, safety or other organization rewarding. An example of the type of activity surplus to the next reporting year. Formal committees, or assistance at events that wins these points is participation on activities will include an evaluation process sponsored by one of those bodies. This boards or committees that develop standards, or, if they do not, the activity must be greater category includes community service like codes, and practices. Course development than one half day in duration. working at food banks, being a Scout or committees for Enform fall into this category, Guide leader, coaching amateur sports as do CSA and ad hoc APEGGA committees Informal Activity – I get many queries teams, delivering meals to seniors, collecting for such activities as development of practice regarding informal activities and there seems toys for less privileged children, community guides and professional practice or industry to be some confusion in the community over league, or home and school association standards. One hour of committee work how much things like lunch-hour brown-bag committees and so on. The selection of the yields 1 PDH. Patents are worth 15 PDH upon presentations, technical luncheons, vendor activity is at the discretion of the Member. registration; as are publications in refereed seminars, technical society, professional Participation activity hours each count for (Continued on page 46...) NeuraDBTimely Access to Trusted Data NeuraDB is the solution to find, load, manage, QC, store and deliver the wide variety of critical E&P data that your organization uses. It is a vendor-neutral, well-based data management system to compliment your existing infrastructure. NeuraDB Transforming allows your staff to gather and load all relevant data from a single trusted source. your seismic data via • Well data master • Raster and digital log repository • 2D, 3D and 4D processing • Physical data inventory • Multi-component processing • PP and PS modeling • Well File System for reports, maps, etc. • PP and PS registration • Select data from ArcGIS interface • Joint PP and PS inversion • View data immediately or deliver to your • Stochastic inversion application • AVO / LMR analysis • Fracture detection For more information visit GeoCanada Booth 413 We provide the knowledge and technology or call 403.809.6598 behind the metamorphosis.
1300, 736 - 6 Avenue SW Calgary, Alberta, Canada T2P 3T7 Tel: 403.237.7711 Fax: 403.237.7881 © 2010 Neuralog • www.neuralog.com • 1.281.240.2525 • 1.800.364.8728 www.sensorgeo.com
RESERVOIR ISSUE 5 • MAY 2010 43
1961-2010 CSPG CLASSIC1961 GOLF – 2010 TOURNAMENT CSPG CLASSIC GOLF TOURNAMENT GOLDENGOLDEN ANNIVERSARY ANNIVERSARY
Congratulations and thank you to the loyal sponsors and participants for 50 years Congratulations and thank you to the loyal sponsors and participants for 50 yearsof ofdedication, dedication, fun andfun serviceand service to the toCSPG the CSPGand the and oil andthe gasoil andindustry gas inindustry Canada. in InCanada. 1961, Canada was 94 years old, the current business and play trends of the day. and register early at http://www.cspg.org/ Canadian Red Ensign was the nation’s In a time-warp summary, participants have events/events-social-classicgolf.cfm flag and the Honorable John Diefenbaker experienced the discoveries of Mitsue, was Prime Minister of Canada. The Pembina Nisku, Elmworth Deep Basin, The 50th anniversary tournament includes Transatlantic telephone system was Sable Island on the East Coast, Drake Point three rounds of golf with power carts, on- officially launched and Wayne Gretzky in the Arctic, oil sands development, the course sponsor tents with refreshments was born. The 1961 Chevrolet Impala SS recent unconventional resource plays, and and food, three evening dinners, Friday 409 was the first muscle car. The nominal the list goes on. The oil and gas industry breakfast with the awards banquet and crude oil price remained at $3.00US per has seen boom and bust times, survived dance on Friday evening. Participants barrel through 1961 after OPEC formation price fluctuations and challenges as well will also receive a commemorative 50th in 1960. as shifts in the geo-political markets. anniversary wind jacket. MindYEARS you, not all of us have seen them all, 1961 also experienced the origin of a but the connection of past participants The tournament features $10,000 in very special event – the first CSPG Golf and newcomers in this setting makes prizes and draws including two vacation Tournament in Calgary with Bruce Bailey the double bogey seem less stressful. trips, BBQ, daily hole and skill prizes. Visit as acting tournament chairman. Since that The CSPG Classic extends our sincere the photo gallery from last year’s event inaugural event the CSPG golf tournament appreciation to all the participants and at http://picasaweb.google.ca/foonder/ grew into the annual 3-day golf-networking sponsors that have made this tournament CSPG_Classic_2009_Candid# social for geologists, geophysicists and the quality tradition it has evolved into industry service providers. It became the over the past 50 years. The CSPG Classic welcomes charity coveted industry golf tournament to be partner “Agapé Hospice” who will benefit a participant and not uncommon to be On June 16, 17 & 18, 2010, at the Elbow from special events held during the placed on a two-year waiting list! Springs Golf Club in Calgary, the CSPG tournament. proudly celebrates the 50th Annual CSPG Within the past 50 years, geologists and Classic Golf Tournament. Mike LaBerge service partners have50 met annually at the Chairman CSPG golf tournament and shared the Be part of this milestone industry tradition CSPG Classic Golf Committee
44 RESERVOIR ISSUE 5 • MAY 2010 1961-2010 CSPG CLASSIC GOLF TOURNAMENT GOLDEN ANNIVERSARY
Congratulations and thank you to the loyal sponsors and participants for 50 years of dedication, fun and service to the CSPG and the oil and gas industry in Canada.
RESERVOIR ISSUE 5 • MAY 2010 45 (...Strategic Geoscience continued from page 43) 2010 CSPG awards ceremony scientific or technical journals. Theses earn 30 PDH, if you wish to enter them in this The Canadian Society of Petroleum Geologists Honourary Membership category rather than as Professional Practice. annually presents a variety of awards to *To be awarded at the Books are worth 60 PDH upon publication. All Need a solution that will take you recognize technical achievements and 2010 Long-Time Members Reception* other publications (like this one) are worth 10 excellence in volunteerism. The 2009 CSPG Ashton Embry PDH as are external reviews of other people’s awards will be presented at the 2010 Awards to oil faster? John Maher manuscripts. Editing papers for publication are Ceremony on Monday, May 10th, 2010 from Rick Young 6:00pm to 7:30pm, and will be held at the valued at 1 PDH per hour of editing. Accelerate Boyce Theatre on the Calgary Stampede Medal of Merit Grounds. The event takes place in conjunction Daniel J.K. Ross Like tax returns, CPD returns document with the GeoCanada 2010 Convention and is R. Marc Bustin the hours committed to becoming a better open to the public, whether one is registered informed geoscientist. It is important that you for the convention or not. Please join us H.M. Hunter Award review the CPD Program manual occasionally to honour the volunteer contributions and Peter Harrington to ensure you fully understand what is technical excellence of your fellow CSPG Peter Hay members. required, as it is updated from time to time like all manuals and guides. Tracks Award Presentations of the following awards will be Norbert Alwast made: Astrid Arts Upon completion of the first three elements Michael Cecile of a business plan, you really have a strategy President’s Special Recognition Award Travis Hobbs to follow. You are thinking in strategic terms Gordon Williams Ben McKenzie that will allow a focussed approach to building a Stanley Slipper Gold Medal Chris Seibel viable action plan that takes you out of the realm Michael L. Rose of merely listing a set of New Year’s resolutions Service and Volunteer Awards to be forgotten by March and into the universe R.J.W. Douglas Medal For a listing of recipients please see the of possibilities for personal growth. Dr. James Dixon following webpage: http://www.cspg.org/ about/awards.cfm In another article, I will examine how to President’s Award develop a professional marketing plan for Tony Cadrin We will also recognize our Technical Luncheon and Technical Division speakers, Short Course your services, whether you are a lone wolf Link Award Instructors, Field Seminar Leaders and consultant or a staff geologist for a large Jon Noad Honourary Address Speaker at this event. corporation.
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46 RESERVOIR ISSUE 5 • MAY 2010 © 2010 Halliburton. All rights reserved.
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RESERVOIR ISSUE 5 © • 2010 MAY Halliburton. 2010 All rights reserved. 47
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48 RESERVOIR ISSUE 5 • MAY 2010