PGNiG SA - shale gas activity | PGNiG Production Activity
. PGNiG is the biggest petroleum exploration and production company in Poland • provides nearly 100% of gas production in Poland • provides up to 70% of oil production in Poland . PGNiG produces from fields • in Poland (2010) 4.22 bcm of natural gas 501 ths tons of crude oil • and abroad Norwegian Shelf start in 2011 Pakistan start 2011/2012
2 | PGNiG Upstream Activity
PGNiG’s assets
• exploration concessions • production concessions • shares in E&P concessions − shares in concessions of other companies − other companies have shares in PGNiG’s concessions
NW SE
3 || Concession Areas of PGNiG SA
Norway Denmark Poland
Pakistan Libya Egypt
4 4 | PGNiG Exploration & Production activity in Poland
93 Exploration Concessions
with total acreage of 60.9 ths sq. km
225 Production Concessions
with total acreage of 1.5 ths sq. km oil 40 oil and gas 32 gas 153
5 | License in Norway
PL326 license PL599 license
Skarv, Snadd and Idun license
PL600 license
Dana E.E. Petroleum ONOn Statoil Ruhrgas A/S Petroleum BGBPNorske Norway Norge Shell ASAS 23.84%30.0040.0050.0070.00% Participation Svenska Idemitsu Petroleum StatoilPetroleum PGNiG Exploration Petroleum NorwayPetoro Norge ASAS 36.16%15.0030.0020.0025.00% PL521 license Norwegian Energy Company ASA 20.00% ParticipationAcreage Gaz de Nexen France E. ONExploration Suez PGNIGPGNiGRuhrgas E&P Norway Norge809.58 ASAS 28.08%20.0030.0010.00%35.00 sq km% PL558 license Participation PGNIG Norway AS 20.00% ParticipationAcreage Det norske PGNIGPGNiG oljeselskap Norway1070.30145.85 AS 11.91%20.0010.00 sq km% Structures PL600 ParticipationAcreage PGNiG Norway11976.961671.33936.84 AS 15.00% sq km StructuresLocation Norwegian ContinentalPL350PL521 Shelf StructuresAcreage 145.85PL599 sq km StructuresLocation Norwegian ContinentalSkarv ProjectPL326 Shelf PL350 license StructuresLocation (PL212, PL212B,Norwegian PL212E, Continental PL262, PL558PL159) Shelf Location Norwegian Continental Shelf 35.8 bcm natural gas 18.3 MM tons crude oil and condensate Estimate stocks 5.8 MM tons NGL (Natural Gas Liquids)
6 6 | License 1/05 in Denmark
license 1/05
PGNiG SA (Operator) 80% Participation Nordsøfonden 20% Acreage 2 000 km sq Southern Jutland Geographic site Basin Zechstin (dolomites main) Minimum 50 km sq 3D seismic up to 2009/10/05, fulfilled Obligations 1 exploration well
Reserves 3.8 MM tons crude oil and condensate
7 7 | Ghadames/Murzuq License in Libya
Participation PGNiG SA 100% Acreage 5 494.0 km sq block 113 Province Awbari, Geographic site Murzuq Basin 3 000 km 2D seismic, fulfilled 1 500 km sq 3D seismic, fulfilled Obligations 8 exploration well 146.2 bcm natural gas Estimate stocks 15.4 MM tons condensate
8 8 | Bahariya License in Egypt
Participation PGNiG SA 100% license Bahariya Acreage 4 414.4 km sq Geographic site Western Desert 1 350 km 2D seismic, Obligations 2 exploration well Estimate stocks 22.0 MM tons crude oil
9 | Kirthar License in Pakistan
Kirthar license
Pakistan Petroleum Limited 30% Participation PGNiG SA 70% Acreage 956.22 km sq Province Sindh, Geographic site Folded belt Kirthar Obligations 1 well, 100 km 2D seismic, fulfilled Reserves 11.6 bcm of natural gas
10 10 | Shale Gas Prospective Areas in Poland (P.Poprawa, 2010)
Concessions acreage km2 1 Wejherowo 729.99 1 2 Kartuzy - Szemud 782.61 3 Stara Kiszewa 1 178.14 2 15 14 4 Blok 172 936.79 5 Blok 173 936.69 3 6 Blok 192 921.87 7 Blok 193 942.03 8 Warka - Ursynów 734.42 9 Ryki - Żyrzyn 426.86 10 Kock - Tarkawica 1 028.64 11 Pionki - Kazimierz 532.00 4 12 Wiszniów - Tarnoszyn 1 106.55 6 7 13 Tomaszów Lubelski 745.76 14 Bartoszyce 669.36 15 Górowo Iławeckie 1 094.39 sum 12 766.10
8 9 10 11
Areas at initially assessed prospectivity for shale gas within the Lover Paleosoic shale formations Areas with non-assessed prospectivity for shale gas within 12 the Lover Paleosoic shale formations 13 PGNiG SA concessions
11 || Tight Gas Prospective Areas in Poland
Concessions acreage km2 1 Szamotuły 1200.00 2 Murowana Goślina - Kłecko 785.22 3 Gniezno 1099.44 4 Ślesin 1146.96 5 Pyzdry 904.50 6 Kórnik-Środa 748.00 sum 5884.12
1 2 3 4 6 5
PGNiG SA concessions
12 PGNiG’s concessions with strong possibility of shale oil | occurrence
Concessions: - Bartoszyce 45/2001/p - Górowo Iławeckie 47/2001/p (potential occurrence in oil window (Silurian – Ordovician)
Concessions: - Myślenice Limanów Czchów 25/2001/p - Zalesie Rzeszów 30/95/p - Sobniów Kombornia Rogi 9/97/p - Wiśnicz Tuchów 35/99/p - Błażowa 10/2008/p - Block 416 23/2000/ł - Block 417 24/2000/ł - Block 436 - Block 437 - Block 438 - Block 456 - Block 457 - Block 458 - Ropczyce - Bratkowice - Strzyżów (the area of Menilite shales occurrence in the outer margin of Carpathian arch)
Range of Menilite shales occurrence
13 Shale gas distribution in respect of natural gas potential | P.Poprawa, June 2011
high potential of average potential low potential lack of potential
14 | Gdansk Petroleum Province
• PGNiG SA has received the PGI’s report concerning geological and geochemical conditions in the Ordovician and Silurian Lower formation,
• PGNiG SA has begun drilling the first exploration well at Block 29 - Wejherowo concession; the drilling had been preceded by seismic survey,
• Simultaneously in the Wejherowo concession seismic survey is being carried out at the moment. It will result in 2D seismic picture (II phase). After Lubocino-1 well data studies and Wejcherowo 2D picture analyseses the second exploration well (Opalino-1) will follow.
• Consecutive steps for 2012-2013: drilling works on Kartuzy-Szemud concession (wells: Grabowo-1 i Miłowo- 1)
15 | Warsaw Basin
• Geological analyses of Silurian and Ordovician shales are being carried out, • At the end of 2010 geophysical survey was completed – magnetotelluric and gravimetric survey (phase I), • Works on seismic survey are continued this year (phase II).
16 | Lublin Petroleum Province • Geological analyses of Silurian and Ordovician shales are being carried out. Magnetotelluric and gravimetric surveys are scheduled for 2011. • Seismic survey on a few concessions in the Lublin Petroleum Province is scheduled for 2011 and 2012. • Other plans for this year: start of drilling Lubycza Królewska- 1 well (depth 4300 m) on Tomaszów Lubelski concession.
17 | Lubocino-1 well
• At the turn of 2010 and 2011 Lubocino-1 well was completed (final depth 3050m – Middle Cambrian) and 738,6m of well core was recovered and undergoing analysis at the moment. Fracturing and production test are planned,
Lubocino 1
• The start of drilling the first horizontal well from Lubocino- 1 platform is scheduled for this year.
18 Electrical logging: Clay Bound Water Spectral Deep laterolog LLD Movable Water Gamma Ray Shallow laterolog LLS Range; 20% - 0 Uranium cont.(green) Microlaterolog MSFL (pink) 0 – 200 API 0.2 – 2000 OHMM Lubocino-1 well | Lithology
Porosity log: Density: 1.95 – 2.95 g/cm3 Neutron: -15 – 45 [%ls] Acoustics: 140 – 440 [us/m]
S I L U R I A N A I R U L S I Geophysical survey and interpretation of Illite Silurian and Ordovician deposits 1100 - 2975 m
Organic matter Wireline logs and interpretation indicate:
Sandstone • Good quality of survey with small fractures. Only microspherical resistivity (MSFL) is disturbed in a part of interval layer because of
borehole rugosity. • Favourable decrease of shaliness in Lower Silurian and Ordovician (from 2550 m) and increase of gas saturation in this interval. Uranium content increases in the interval as well, which suggests raise in an organic matter content. Drop in Clay Bound Water content in this log section also works to our advantage. Limestone • Interpretation of reservoir properties points out to satisfactory effective porosity in the most perspective interval (2550 – 2972 m). • Interpretation of lithology points out to worrying high clay minerals content (>50%, on average 60-70%) in Silurian deposits .
Gas
19 ORDOVICIAN Tmax Total gas content Range 300 – 500 C From lab. analyses. Range 100% – 0 Gas content Organic matter content From a wellsite lab. | Lubocino-1 well Range 0 – 5% Range 0.1 – 10% Hydrogen Index HI 0 - 300
Geochemistry interval 2200 - 2972 m
• Presence of organic matter
S I L U R I A N A I R U L S I content (TOC > 0.5%) from laboratory analyses indicate good and very good source rock potential in perspective interval (2550 – 2972m). • Total gas from MudLog during shows increased value in the most perspective interval 2550 – 2972 m. • Temperature Tmax show sufficient thermal maturity of organic matter in Lower
Silurian and Ordovician deposits. • Hydrogen index values are also satisfactory and are placed at the transition zone of oil and wet gas window.
ORDOVICIAN 20 Quartz content Range: 100% - 0 Calcite content 0 – 100% Brittleness Dolomite with ankerite content Range: 1 - 0 100% - 0 Total clay minerals Pyrite content 0 – 100% Lubocino-1 well content fro m lab data Quartz content: 0 – 100% Siderite content 100% - 0 | Bulk volume density Feldspars content 100% - 0 Range: 0 – 100%
Mineralogy - interval 2200 - 2972 m
S I L U R I A N A I R U L S I • Total clay minerals content according to laboratory analyses variers from 10 to 15% lower then interpreted shaliness from wireline logs. • Quartz content fluctuates between 20-30%. There is also considerable amount of feldspars approx. 10-15%. That causes a big increase in brittleness of these deposits (and as a result tendency to fracturing), especially at the
bottom section of Silurian and Ordovician (below 2550 m). • Results of analyses suggest necessity of performance of wide rage laboratory analyses in order to calibrate interpretation of wireline logging (a choice of appropriate interpretation model).
ORDOVICIAN 21 Total porosity from Nuclear magnetic resonance (NMR) 20% - 0 Lubocino-1 well Total porosity from helium | porosimeter Effective porosity Permeability 20% - 0 Z NMR 5% - 0 0.001 - 100mD Reservoir properties interval 2200 - 2972m
• Laboratory analyses of
S I L U R I A N A I R U L S I permeability indicate its good properties especially at 2550 – 2972 m interval where they reach up to 50mD. Its significant scattering suggest rock matrix permeability as well as fracturability and presence of fractures. • Total porosity values measured by porosimiter and magnetic resonance analyses correspond well with total porosity interpreted from wireline logs. • Effective porosity values measured by NMR analyses do not correlate sufficiently with effective porosity interpreted from wireline logs.
ORDOVICIAN 22 | Lubocino-1 well
Geomechanics - interval 2200 - 2975 m
• Measured values of Poisson’s Coefficient and Young Modulus
show more brittle rocks S I L U R I A N A I R U L S I properties in the greater part P wave from wireline logs of perspective interval (2550- 2972m) and increasing their P wave from laboratory analyses vulnerability to fracturing. (parallel to lamination) 2000 – 7000 m/s • Laboratory measured values of P wave are not in good P wave from laboratory analyses coherence with compressional (perpendicular to lamination) wave obtained from wireline Range: 2000 – 7000 m/s logs. Bulk Modulus K (Gpa) Shear Modulus G (GPa)
0 – 50 GPa
ORDOVICIAN
Stress values from triaxial tests. 23 Poisson’s Coefficient 0 – 0.5 Difference between max and min stress. Young Modulus 0 – 100 (GPa) 0 – 500 MPa | Lubocino-1 well - news 0,0 172,0
320,0 446,0
782,5
1063,5
2907,0 2969,5 3051,0 Reserves, production and consumption of natural gas in | Poland
5 300 bln m3 - Poland's estimated recoverable reserves of shale gas (wg Agencji Energii USA) 5.04.2011 3 000 bln m3 – Poland's estimated recoverable reserves of shale gas (wg Advanced Res. Int.)
1 400 bln m3 – estimated recoverable reserves of shale gas (wg Wood Mackenzie)
98,70 bln m3 – proven natural gas reserves (PGNiG SA)
14,42 bln m3 – annual natural gas consumption in Poland
4.22 bln m3 – annual natural gas production (PGNiG SA)
0 1000 2000 3000 4000 5000 6000 [bln m3]
25 | Future Thank you for your attention