Canadian Publication Mail Contract - 1534939 $3.00

VOLUME 30, ISSUE 6 JUNE 2003

Trends in the Canadian Oil Patch Earth Science Education: A Unique Approach Inside and Outside the Classroom 2003 CSPG / CSEG Convention: PARTNERS in a New ENVIRONMENT Net Pay in Naturally Fractured Reservoirs Preliminary Tectonic Map of the Western Canada Sedimentary Basin

CSPG OFFICE #160, 540 - 5th Avenue SW ,Alberta, Canada T2P 0M2 Tel:403-264-5610 Fax: 403-264-5898 Email: [email protected] Web: www.cspg.org Office hours: Monday to Friday, 8:30am to 4:00pm CONTENTS

Business Manager:Tim Howard Email: [email protected] Office Manager: Deanna Watkins Email: [email protected] Communications Manager: Jaimè Croft ARTICLES Email: [email protected] Conventions Manager: Lori Humphrey-Clements Email: [email protected] Corporate Relations Manager: Kim MacLean TRENDS IN THE CANADIAN OIL PATCH ...... 14 Email: [email protected] EARTH SCIENCE EDUCATION: A UNIQUE APPROACH INSIDE AND OUTSIDE THE CLASSROOM ...... 16 EDITORS Please submit RESERVOIR articles to the CSPG 2003 CSPG / CSEG CONVENTION: PARTNERS IN A NEW ENVIRONMENT . . . . 24 office. Submission deadline is the 23th day of the NET PAY IN NATURALLY FRACTURED RESERVOIRS ...... 28 month, 2 months prior to issue date. (i.e., January 23 for the March issue). PRELIMINARY TECTONIC MAP OF THE WESTERN CANADA

To publish an article, the CSPG requires digital SEDIMENTARY BASIN ...... 30 copies of the document. Text should be in Microsoft Word format and illustrations should be in TIFF format at 300 dpi. For additional information on manuscript preparation, refer to the Guidelines for Authors published in the CSPG DEPARTMENTS Bulletin or contact the editor.

COORDINATING EDITOR & OPERATIONS Jaimè Croft CORPORATE MEMBERSHIP ...... 5 CSPG EXECUTIVE COMMENT ...... 7 Tel:403-264-5610 Fax: 403-264-5898 Email: [email protected] TECHNICAL LUNCHEONS ...... 10 TECHNICAL EDITOR DIVISION TALKS ...... 12 Ben McKenzie ROCK SHOP ...... 17 GEOCAN Energy Inc. Tel:403-261-3851 CALENDAR OF EVENTS ...... 18 Email: [email protected] CALL FOR NOMINATIONS - 2004 EXECUTIVE COMMITTEE ...... 18 ADVERTISING JACK PORTER: VIGNETTES OF CANADIAN GEOLOGY ...... 22 All inquiries regarding advertising and technical specifications should be directed to Kim KEEPING TRACK ...... 29 MacLean. The deadline to reserve advertising space is the 23th day of the month, 2 months prior to issue date. All advertising artwork should be sent directly to Kim MacLean at the CSPG.

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/August.

Advertisements, as well as inserts, mailed with the publication are paid advertisements. No endorsement or sponsorship by the Canadian Society of Petroleum Geologists is implied.

The CSPG Rock Shop is an attractive and affordable way for advertisers to present their services to the CSPG Readership. Spaces are sold at business card sizes (3.5” wide by 2” high) and will eventually fill an entire Rock Shop page. For more information or to book a space please contact Kim MacLean at 403-264-5610, ext. 205.

The contents of this publication may not be reproduced either in part or in full without the consent of the publisher.

Design & Layout by McAra Printing Printed in Canada by McAra Printing

Additional copies of the RESERVOIR are FRONT COVER available at the CSPG office for $3.00. Mackenzie Delta, Northwest Territories - Sinuous channel across the Mackenzie Delta.These narrow features carry the chocolate-coloured water of the Mackenzie River through the maze of blue thermokarst lakes of the Delta and deposit sediments into them only during periods of high water and flooding. Photo by Clint Tippett 3

CORPORATE MEMBERS

MEMORIAL ANNOUNCEMENT Dr. S.J. Nelson THE CSPG GRATEFULLY ACKNOWLEDGES ITS *CORPORATE MEMBERS: Dr. Samuel James Nelson, P.Eng., P.Geol., Professor Emeritus, University of Calgary, a prominent Canadian geologist, died in Victoria, British Columbia, on ABU DHABI OIL CO., LTD. (JAPAN) February 19, 2003 of cancer. Dr. Nelson received his Ph.D. in Geology with

ARCHEAN ENERGY LTD. Great Distinction from the University of McGill (1952). He published extensively, including several books on the geology of Western Canada. He was well known BURLINGTON RESOURCES CANADA ENERGY LTD. to the oil industry having taught at the University of Calgary, the University of

CALPINE CANADA Alberta, and the University of New Brunswick.Amongst other publications, Dr. Nelson was best known for authoring “The Face of Time”, a geological history CANADIAN FOREST OIL LTD. of Western Canada, used as a reference guide by the oil industry.

CONOCOPHILLIPS CANADA RESOURCES LIMITED Dr. Nelson served the Canadian Society of Petroleum Geologists as Secretary, DEVON CANADA CORPORATION 1968 – 1969; Director, 1970 – 1971; Chairman, Research & Graduate Student

DOMINION EXPLORATION CANADA LTD. Awards Committee, 1968 – 1971; and Representative on Advisory Council to Alberta Research Council, 1968 – 1971. ECL CANADA

EL PASO OIL & GAS CANADA, INC. During his distinguished career as a scholar, educator, and author, he received awards including those from the Student Legislative Council, Faculty of Science, HUNT OIL COMPANY OF CANADA, INC. University of Calgary for Distinction of Superior Teacher and from the Canadian

IHS ENERGY Society of Petroleum Geologists for distinguished service to the field.

IMPERIAL OIL RESOURCES LIMITED

LARIO OIL & GAS COMPANY

MJ SYSTEMS RIG TIME costs money...CALL MURPHY OIL COMPANY LTD.

NCE RESOURCES GROUP INC.

NEXEN INC.

NORTHROCK RESOURCES LTD.

PENN WEST PETROLEUM LTD.

PETRO-CANADA OIL AND GAS

SAMSON CANADA

SHELL CANADA LIMITED FOR SPROULE ASSOCIATES LIMITED

SUNCOR ENERGY INC. OPEN HOLE

TALISMAN ENERGY INC. RECON Petrotechnologies Ltd. TOTALFINAELF E&P CANADA LIMITED

UPTON RESOURCES INC. DISPATCH: (403) 51-RECON *CORPORATE MEMBERS AS OF 51-73266 APRIL 24, 2003 www.reconpetro.com

5

EXECUTIVE COMMENT A MESSAGE FROM THE FINANCE DIRECTOR PRESIDENT John Hogg listen to the students’ feedback and to EnCana Corporation answer questions; to open lines of communication. There are 30-60 Tel: 645-2533 Fax: 645-2453 students and faculty at each talk - enticed [email protected] by the promise of free pizza. VICE PRESIDENT Craig Lamb Feedback and questions from the students Husky Oil Operations Ltd. at my lectures ranged from career-related Tel:750-1499 questions (“What were the toughest [email protected] challenges you faced as a woman in your career?” – yikes!) to questions on very PAST PRESIDENT practical, job-finding issues.The job-finding Bruce McIntyre questions were the hardest to answer TriQuest Energy Corp. CSPG EDUCATIONAL TRUST FUND encouragingly, even though our profession Tel:531-8544 Fax: 531-8569 OUTREACH LECTURE TOUR faces a huge demographic-fueled crash [email protected] I just returned from a rewarding over the next 10 or so years.For students, FINANCE DIRECTOR experience: giving lectures at a number of summer jobs are certainly the best way to Lisa Griffith universities in Ontario and Manitoba on get some experience and make industry GEDCO what a geologist does in the petroleum contacts.Although students are interested Tel:303-8698 Fax: 262-8632 industry.This Outreach Lecture Tour was in jobs in Calgary, it is hard to identify [email protected] one of three launched this spring as a part opportunities from outside the province of the CSPG Educational Trust Fund (ETF) and outside the industry (aside from ASSISTANT FINANCE DIRECTOR University Outreach strategy put in place increasingly rare on-campus, large - Pauline Chung by a committee chaired by Brad Hayes. Corporation company-sponsored interviews).Certainly, Tel:974-7673 Fax: 974-7665 The students’ feedback, enthusiasm, and the prospect of traveling to a new city [email protected] interest convinced me that the outreach many kilometers away and at considerable effort is very worthwhile, so I thought I’d expense just on the chance of getting a job PROGRAM DIRECTOR tell you about my tour and highlight some is daunting. Elizabeth O’Neil of our Society’s other student outreach Samson Canada activities for this editorial column. From an employer’s point of view, there Tel:231-9904 Fax: 233-0840 Consider this also an enthusiastic plea to isn’t a lot of incentive for hiring [email protected] give more students the chance to show inexperienced professionals, and, let’s face ASSISTANT PROGRAM DIRECTOR what they can do in our industry. it – they do require extra precious time Vern Stasiuk and effort to train. What a short-sighted GSC - Calgary LECTURE TOURS perspective! Long term, these students Tel:292-7000 Lecture tours are one way to put a are the lifeblood of our profession. As I [email protected] personal face on the CSPG as well as to see it, there are two basic challenges to communicate information about our bringing more young professionals from SERVICE DIRECTOR industry to universities. The winner of across Canada into our industry. One is Lisa Sack the Link Award (best CSPG Technical communication. Can we make it easier to Burlington Resources Canada Luncheon talk), and speakers recruited let more students know of summer jobs Tel:260-1608 Fax: 260-1821 [email protected] from the CSPG membership agree to and to quickly connect employers with donate their time, and are sent to job candidates? Our annual CSPG ASSISTANT SERVICE DIRECTOR schools across Canada.The ultimate goal convention is probably the best venue for Wayne Dwyer is to address each geology department bringing students and employers face to ConocoPhillips Canada once a year. This year, three speakers face. At the annual Calgary convention, Tel:233-3727 Fax: 233-5407 were sent out in the spring on Outreach university-campus housing, alumni- [email protected] tours, and another group of four student functions, interview rooms, and lecturers are going out in the fall to visit job boards could all be focused toward SENIOR MANAGING EDITOR a total of 24 universities. There are Ashton Embry attracting students from across Canada. GSC - Calgary several reasons the CSPG and ETF jointly Unfortunately, many university students I Tel:292-7125 Fax: 292-4961 sponsor these Outreach tours. One is to spoke with weren’t aware of when or [email protected] encourage students to consider a career what our convention is – and the timing is in our industry by showing them that it last minute for a summer job. can be challenging, high tech, and diverse. Another is to coach them on how to find Another approach to improving a job in the industry.A third reason is to communication is an online student

Continued on Page 9 . . . 7 THE CSPG EDUCATIONAL Donations of $5000+ TRUST FUND ENDOWMENT Alberta Energy Company Ltd. Robert H. Erickson Andrew Baillie Harley N. Hotchkiss DEVELOPMENT PROGRAM William A. Bell Sproule Associates Ltd. Conoco Canada Ltd. Darol J. Wigham Anonymous Donors: 2 2000The Millennium Strategy Donations of $1000+ Apache Canada Ltd. John A. Downing Fred G. Rayer APEGGA George Grant Kathryn Scales D.L. Barss Andrew Holder Des Smith Ted Best Husky Oil Operations Ltd. Charles Stelck BP Amoco Ian Hutcheon Uldis Upitis Charles and Sandra Buckley Jack Gallagher Fund Irmgard Weihmann Tony Cadrin Tako Konig Harry Woodward C.K. Caldwell Keith A. Lowell Anonymous Donors: 6 $3M Canadian Mike Ware Memorial Fund Continental Laboratories Murphy Oil Company Ltd. (1985) Ltd. Alice Payne & Allin Follensbee Decollement Consulting Ltd. Petro-Canada Oil & Gas

Donations of $500+ John Andriuk Gerald Henderson Brian Norford S.A. Antoniuk Don Holmes Reeves Wireline Belloy Petroleum Consulting Ltd. Dave Hutchinson Rozsa Petroleum Ltd. Philip R. Brown Mike Hriskevich Samson Canada Ltd. $2M Cabre Exploration Ltd. Jenik Consultants Inc. John Wall Canadian Hunter Exploration Ltd. Alan R. and Faye Keevil Charles Wright M.A. Carrigy D. Keith MacDonald Anonymous Donors: 12 Barney Clare Emmanuel Malterre Roger N. Dueck Mancal Energy Inc. Andy Evans Monica Meding Brian F.G. Fischer MJ Systems Paul Gagnon François A. Montandon R.P. Glaister Arne R. Nielsen $1M

Donations up to $499 C.H. Acheson James A. Genereux Coleman W. Morton John G. Stout Shaun E. Alspach R.N. Ginsburg Eric W. Mountjoy Roy A. Stuart John Ambler V. Richard Green Daryll Myhr Gerald W. Sullivan TOTAL TO DATE: John Andrichuk Indraman Halim-Dihardja Charles Newmarch Foundation Grey H.M. Austin Syed M. Hasan Northstar Energy Neil Theissen $ 420,271 Denis F. Bacon Brad Hayes Godfrey Nowlan Clinton Tippett Andreas Bayer Clifford Herman Karl Olson Sato Toshiaki Lorraine Beaupre Denise Hodder R.G. Oicle Jens F. Touborg FUND UST Tim Bird W. Gordon Holland Vic Panei John Townley III TR Thomas Boleantu Ernest C. Horvath D.J. Parker John Valent L A Simon L. Brame Tim Howard Kevin Parks Christian Viau N $$ John M. Browning Judy & Jodi Hughes June & Merv Pedlow R.S. Vogan O I $$ Finley Campbell J. Jansonius Steven W. Perry Ted Watchuk T James E. Christopher Bertram B. Jarrett Mitchell L. Peters Craig G. Wiebe A C $$ Barney Clare David Johnston Ken Potma Edwin Williams U

Dean Clemenson Paul A. Johnston Ray Price Ulrich Wissner D Canada Post Corporation Donald M. Kent Mrs. J. Purvis Gordon Williams E

Murrary F.J. Cooper Aubrey Kerr Mr. & Mrs. H. Purvis John S. Wonfor G $$ P

Corexcana Jim Kirker S. Silver Purvis Barry Wood S

Steve S. Cosburn Ian K. Kirkland Peter E. Putnam Brenda Wright C Davis MPE, Inc. Sharna Laven Indraneel Raychaudhuri Dale A. Wright $$ James E. Day Donald C. Lawton Cindy Riediger G.C. Yamada William G. Dean Patricia Lee Frances K. Roessingh Colin Yeo Alice Desrocher S. Leggett Christopher E. Ruud Ray Yole Rein DeWit C. Derek Lester Lisa Sack Philip M. Young James A. Dolph Wilfred Loucks Katherine Sammons Anonymous Donors: 79 Drummond Consulting Bruce Lyon James Scott John L.J. Duhault Kim MacLean Chris Sigvaldason Greg M. Dyble Robin Mann Philip S. Simony David Erickson David Q. Martin Claus Sitzler For more information Arthur Evans Barry Mazurkewich Scott R. Smith Myron D. Franks R.C. McCasland Jr. Brad Spence on the Educational Trust Fund, Paul Fuenning Margaret MacIntyre Michael S. Stanton please visit www.cspg.org Richard C. Galloway Keith A. McAdam Chris Steudler Garuda Resources Ronald M. Misko John Stobart Geo-Help Inc. G. Rae Morgan Donald Stott H pen mind elping open doors that help o s... EXECUTIVE COMMENT (Continued from Page 7) A MESSAGE FROM THE FINANCE DIRECTOR

resume service. A jobsite on the CSPG technical talks and an information booth website which will allow students to post disseminate information about our resumes, and corporate members to then industry and the Society. BULLETIN browse them, will be functional by the time you read this editorial. STUDENT MEMBERSHIPS DONATIONS Although student memberships is the The second challenge is to make hiring CPSG should be an excellent vehicle to summer students more attractive to inform students of the CSPG and the small businesses. Would a 1- or 2-day , at least one student The CSPG is once again seminar associated with the convention, confided to me that there was “…nothing seeking donations of past and covering land sales, lease in the Reservoir but a bunch of old farts continuations, basic log interpretation, issues of the Bulletin of and inaccessible talks” (ouch!). The and the basics of an industry software Outreach Committee has several Canadian Petroleum package like Accumap allow 3rd and 4th strategies in mind to make the CSPG Geology. Our digital year students to contribute immediately more attractive to students, but we face on the job? It’s worth a trial. archiving project is the promotional challenge of making our progressing and we are now SIFT publications and memberships relevant to seeking Bulletins dated prior The annual Student-Industry Field Trip an ’outsider’. to 1976. It is our desire to (SIFT) is one of the flagships of the put together three sets of Outreach committee, and, like the SCHOLARSHIPS, AWARDS Regional awards and scholarships are journals for shipping to our Outreach Tours, it is sponsored by the ETF.This long-running program includes a given annually to graduate and project partners at AAPG field trip, rig tour, lectures, core undergraduate students to promote Datapages. Watch the workshops, and most importantly, an advanced education and research, and to Reservoir for more “exploration game” for approximately 30 recognize the contribution of research to information on this project university-nominated 3rd-year students. sedimentary and/or . The trip attracts some of the best The winners of these awards are and when you will be able geology students from across Canada. It recognized in the Reservoir.The focus is to access digital articles initiates long-lasting friendships, and has toward recognition within our geological online. launched many careers. The drawback is community rather than promotion of the that only one student a year from each CSPG and ETF within the universities. Canadian university gets access to this If you are able to make a opportunity.There are opportunities for Geology students graduating from donation, please contact Jaimè volunteers and corporate sponsors to universities outside Alberta are often Croft, Communications Manager, become involved in SIFT. unaware of opportunities in the at (403) 264-5610, ext. 203 petroleum industry. Our current glut of CORPORATE PARTICIPATION or [email protected]. baby-boomers will start leaving the The Outreach Committee recognizes workforce soon, leaving few replacements. the need to link up industry companies Encouraging and mentoring young and students.This is the first stop if your professionals can be a mutually rewarding company is considering hiring students, experience. As you can see, the Outreach donating educational material (cores, Committee is working diligently to logs, cuttings), or funding university-level COMING IN JULY… improve ties between our industry and research projects. Canadian universities. Get involved! UNIVERSITY CONFERENCES Watch your July/August To paraphrase the words of an old If you’re interested in more information, issue for the results of the adage, “If Mohammed can’t come to the in volunteering for the Outreach committee, in speaking for a university 2003 Membership Survey. mountain…let the mountain come to Mohammed”. In this case, if the ETF is tour, or in being a corporate sponsor for Find out what you and your the mountain, it does participate annually an outreach tour or any of the education fellow members really think in regional university conferences like programs, give Brad Hayes a call at about the Society and its the WIUGC and the AUGC, and the ETF (403)218-1607, or visit the website at programs! is open to supporting other student- www.cspg.org/university_outreach.html. sponsored meetings. Financial help, prizes, and trophies are available, while Lisa A. Griffith, Finance Director

9 JUNE LUNCHEON

Ladyfern kilometres, with a gas column greater BIOGRAPHIES than 100 m, and estimated reserves of Thomas Boreen is a senior exploration SPEAKER 500 bcf to 1 trillion cubic feet of gas in geologist at Suncor Prospect Generation Thomas Boreen place. Discovery of this most recent Group in Calgary, Alberta. He started his oil Suncor PGS onshore “elephant” highlights Canada’s and gas career as a battery operator for AUTHORS tremendous untapped energy potential. Husky Oil Operations in 1981. He received a Thomas Boreen B.Sc. Honors in Geology from University of Suncor PGS The Upper Devonian Slave Point Saskatchewan in 1987, a M.Sc. in clastic Kelvin Colquhoun Formation in north-central Alberta and sedimentology from McMaster University in Apache Canada Ltd. British Columbia, Canada is an 1989, and a Ph.D. in carbonate sedimentology from Queen’s University in 1993. Since 11:30 am intermediate depth (2,000-3,500 m) Thursday, June 12, 2003 bioclastic carbonate. A basement strike- graduating, Dr. Boreen has worked as an exploration geologist and technical advisor for slip structural regime associated with the TELUS CONVENTION CENTRE a number of international oil companies Hay River Fault Zone has controlled areal CALGARY, ALBERTA including Home Oil Company, Anderson distribution patterns of reservoir facies in Exploration Ltd., Shell Canada Ltd., Apache Please note: the Slave Point Formation and directly Canada Ltd., and Suncor PGS. He has The cut-off date for ticket sales is influenced internal stratigraphy and published numerous technical papers and has Wednesday, June 9th. cyclicity. At Ladyfern, episodic reactivation Ticket price is $25.00 + GST received CSPG awards for Outstanding Ph.D. of these faults has resulted in extensive Thesis (1995), Link Award for outstanding fracturing and created conduits for A Slave Point gas field discovery made in technical presentation (1996), and C.S.P.G. winter 2000 at Ladyfern in British hydrothermal fluids which have variably Best Core presentation award (2002). Columbia (Block H/94-H-1) is the largest leached, dolomitized, and cemented the onshore North American gas rock. In areas of maximum extension near Kelvin Colquhoun is a senior staff geophysicist accumulation found in 15 years. The fault intersections, intense dissolution, at Apache Canada Ltd. in Calgary,Alberta. He discovery underlies established pipeline brecciation, and hydrothermal graduated with a B.Sc. in Physics from fairways and individual wells are capable dolomitization has resulted in seismically Brandon University in 1990 and was trained of production rates in excess of 100 resolvable collapse synclines at the and employed as a geophysical processor and mmcf/d. By the close of March 2002, 40 Muskeg and Slave Point levels. The interpreter by Shell Canada from 1987 to wells were producing 785 million cubic Ladyfern discovery confirms the viability 1999. Since joining Apache Canada Ltd. in feet of gas per day, 5% of Canada’s natural of using wrench-fault-based hydrothermal 1999 Kelvin has been instrumental in the gas stream. The Ladyfern Slave Point gas dolomite exploration models for discovery of numerous high-impact Slave Point field is areally extensive, up to 100 square prospecting in carbonate units worldwide. oil and gas pools in northeast B.C.and Alberta.

JUNE LUNCHEON

Managing Hydrogen Sulfide Production companies to search in This presentation will include discussions the Natural Way increasingly populated areas. In many of on the pioneering discovery of these areas, hydrogen sulfide (H2S) is chemosynthetic bacteria around deep SPEAKER encountered. Due to the health, safety, sea hydrothermal vents. These vents Todd Beasley and environmental concerns of the New Paradigm Gas Processing Ltd. eject, into the surrounding ocean, H2S surrounding landowners and occupants, with concentrations in excess of 85% many of these projects face strong 11:30 am and at temperatures over 800 degrees Tuesday, June 24, 2003 opposition and, inevitably, costly delays. Fahrenheit. A family of sulfur-reducing TELUS CONVENTION CENTRE microorganisms lives in these vents and Bio-technology, specifically the use of CALGARY, ALBERTA feeds on the H S as it is released. sulfur-reducing bacteria, has shown great 2 Please note: promise to help with the production of Although first discovered at deep sea The cut-off date for ticket sales is these impurity-laden streams in an vents, sulfur-reducing bacteria are some Wednesday, June 18th. economic, intrinsically safe, and of the most common life forms on Earth. Ticket price is $25.00 + GST emissionless manner with respect to In fact, some scientists believe Earth's

North America's insatiable demand for H2S and its combustion byproduct, ability to sustain biological life is, in no

energy is forcing Exploration & sulfur dioxide (SO2). small part, due to their presence. 10 New Paradigm Gas Processing Ltd. of accomplished while the production facility remains Calgary, together with Shell Global Solutions in full operation. International B.V. and Paques Natural Solutions, both of the Netherlands, have For these achievements, Todd was co-awarded successfully commissioned the "World's First nine method and apparatus patents. In 1996, he High Pressure Biological Gas Desulfurisation took CCR public and in 1997, he established New Technology” for Canada's largest exploration Paradigm Gas Processing Ltd., a company and production company, Encana, using dedicated to the creation or acquisition of naturally occurring, sulfur-reducing biotechnology to be used in the purification of Thiobacillus microorganisms. H2S-laden gas streams. In 1999, New Paradigm joined forces with Shell Global Solutions The project received 100% unanimous International B.V.to advance its biotechnology and support of the surrounding landowners and in early 2002, New Paradigm, Shell, Paques, and occupants. As a result, regulatory approval EnCana were successful in commissioning the was received in under seven days. world's first high-pressure natural gas application of the technology near Patricia,Alberta Canada. BIOGRAPHY Todd Beasley is the founder of CCR Technologies Ltd. and is the co-inventor of its gas-treating Licensed in Canada and in Central and South chemical (GTC) refining technology. America by New Paradigm, the technology was developed by Shell Global Solutions and Paques GTCs-ethanolamines and glycols- are in use in over Natural Solutions. It was originally developed for 98% of the world’s natural gas processing and waste-water treating but has now successfully petrochemical refining complexes and over time been applied to low- and high-pressure gas they accumulate non-regenerable impurities. streams as well as refinery gas, synthesis gas, and Performance reduction usually results. CCR's liquid streams. technology is uniquely capable of the simultaneous removal of every major group of impurity, New Paradigm's website is www.npgas.ca

Advancing the process of reservoir management Providing key reservoir engineering and geological solutions.

• Regional Mapping • Waterfl ood, Planning and • 3D / 4D Reservoir Mapping for Optimization Geo-steering • Property Evaluations • 3D Mapping, Characterization and • Corporate Reserves Visualization • Simulation Studies • Coalbed Methane Studies • Production Engineering • Integrated Reservoir Studies • Heavy Oil Studies (EOR, SAGD) INTEGRITY EXPERTISE RELIABILITY UNITED OIL & GAS CONSULTING LTD. 500, 777 - 8th Avenue SW, Calgary, Alberta, Canada T2P 3R5 Tel: 403.265.0111 Fax: 403.294.9544 Email: [email protected] www.uogc.com

11 INTERNATIONAL DIVISION

Oil and Gas in the Gulf of offers largely untested deepwater and burial histories are also complex, Guinea – Geology, Future potential across northwest Equatorial exerting control on hydrocarbon Potential and Opportunities Guinea and the Joint Development generation histories. Finally, the as yet for International Explorers Zone. In neighbouring Cameroon, untested deepwater basin provides a seismic and exploration drilling is now new exploration frontier where SPEAKER picking up after a long quiet period, with Cretaceous source rocks and Richard Bray a new-play oil find in late 2002. stratigraphically controlled deepwater Exploration Consultants Ltd. sands are anticipated. Geologically, the eastern Gulf of Guinea 4:00 PM covers a variety of provinces with varied Significant potential and opportunities Thursday, June 19, 2003 petroleum systems and play types. The for international new ventures remain in north is dominated by the Tertiary Niger the region, through new licensing, farm- Great Room 1 & 2, 2nd Floor, Sandman Inn, 8th Street and 7th Delta basin with multiple reservoir in deals, and up-coming relinquishments. Avenue S.W., Calgary, Alberta development in the Miocene and Pliocene and prolific Miocene source BIOGRAPHY The Gulf of Guinea, extending from the rocks. A toe-thrust belt provides Richard is a consultant petroleum geologist through Equatorial Guinea trapping potential across northern with over 20 years' of international and Cameroon has been a focus of Equatorial Guinea and the JDZ. The experience in the exploration industry. He international exploration interest over Tertiary system extends into the is currently a principle geoscientist and the past five years. Triton’s discovery of northern Douala Basin of Equatorial business development manager for the the Ceiba Field in the Rio Muni basin, Guinea and Cameroon, where significant Consulting Division of ECL. He graduated in Equatorial Guinea at the time of the potential exists for stratigraphically Geology in 1978 and began working as a 1998/99 licence round sparked a surge controlled hydrocarbons. Further south logging geologist on exploration drilling rigs. of industry activity, leading to the the Cretaceous-Tertiary Atlantic margin He joined Gaffney Cline and Associates as licensing of almost all acreage in the basin has proved highly prospective in a petroleum geologist in 1981 and since basin. Meanwhile the successful Rio Muni, with source rocks at several that time he has worked as a consultant development of the Zafio field, levels and prolific reservoirs in late with Exploration Consultants Ltd, Geotrack Equatorial Guinea and other deepwater Cretaceous deepwater sands. The International, and other consultancy discoveries in Nigeria have maintained structure is dominated by complex organisations. Richard has also been interest in the distal Niger Delta, which gravity-slide and salt tectonics. Thermal involved in running industry training

NEW CSPG MEMBERS

Chad W. Blain Datalog Technology Inc. Associate Michael Holmes Pro Geo Consultants Regular Cameron J. Bolter Zapata Energy Corporation Associate Aklesh Jain Landmark Graphics Canada Inc. Regular Dianne L. Dowling NCE Resources Group Inc. Associate Zoran Jankovic Paramount Resources Ltd. Regular Louise M.A. Fortier Devon Canada Corporation Associate Carmen M. Kercher Encana Corporation Regular Jacquelyn C. Frebrowski Blaze Energy Ltd. Associate Eli M. Kostelnyk NAL Resources Regular Sandy E.I. Lucas Veritas Geoservices Ltd. Associate John C. McGilvary Inc. Regular Larry J. Barkley ECL Canada Regular Darcy Reynolds Talisman Energy Inc. Regular Danielle Boivin Shell Canada Limited Regular William E. Robinson Paramount Resources Ltd. Regular Cheryl R. Bok Husky Energy Inc. Regular Aaron AJ Santucci Matrix Petroleum Inc. Regular Gary D. Bugden Regular Shaurat Sayani Husky Energy Inc. Regular Corinne S. Burton Canadian Natural Resources Ltd Regular Mick M. Somerwil MGV Energy Inc. Regular Yinghao Chen Canada Limited Regular Teodor Stafie Inteq Regular Roberta E. Delidais Wrangler West Energy Regular Eric Swanbergson Norwest Corporation Regular Bonnie G. Derksen EBA Engineering Consultants Ltd. Regular Victor Verkhogliad Tusk Energy Inc. Regular Rob G. Faunt Quintana Minerals Resources Corp. Regular Keith R. Diakiw University of Alberta Student Victoria L. French ConocoPhillips Canada Limited Regular James A. Gilmore University of Calgary Student Patricia Ann Gigantelli Alberta Energy And Utilities Board Regular

12 courses and his career has included two years as project management and business development INFORMATION Senior Lecturer in Petroleum Geology at Oxford with ECL, where he has recently been involved in For more information or to give a talk in the Brooks University and several years as a Course managing geoscience and exploration projects in future, please contact Geoffrey Say at 403 263- Director with the College of Petroleum and Equatorial Guinea, Cameroon, Namibia, 0449 or e-mail at g.say at ecqc.com. Energy Studies in Oxford. He currently works in Morocco, the Falkland Islands, and Libya.

DIVISION PROFILE - SEDIMENTOLOGY DIVISION

The Sedimentology The division aims to provide informal brown- to sedimentary processes. New volunteers Division’s mandate bag talks every month with a short summer are always welcome. is to provide a break.The lunch-time talks start at noon and forum for CSPG finish before 1:00 pm. Talks typically average Scott Leroux (EnCana) is the current division members that about 45 minutes followed by a short chair, with Scott Rose (Birch Mountain are interested in question/discussion period. The location of Resources) as the new co-chair. If you are sedimentology the talks has moved to the EnCana interested in joining the Sedimentology and sedimentary Amphitheater located on the 2nd floor in the Division e-mail listing which currently provides processes in order to Calgary Tower Center, 9th Ave., S.E. Speakers luncheon reminders, or if you care to suggest showcase what is new and for the luncheons will be sought from a technical topic or present a talk to the current in sedimentology. Topics are wide- industry and academia to include topics in division, please contact Scott Leroux at (403) ranging and include both clastics and carbonates. sedimentology and other subjects pertaining 645-2419 or [email protected].

13 TRENDS IN THE CANADIAN OIL PATCH BY DAVE RUSSUM

Figure 1 shows Alberta’s total gas production (red), marketed gas (green), exports to the US (purple), and gas injected into storage (blue) in bcf per day averaged on a monthly basis for the past two years (Source data: AEUB ST-3 Monthly Production Reports).

Because Alberta provides nearly 80% of the total Canadian natural gas production, trends in Alberta can be assumed to reflect Canadian production. As seen in Figure 1, total production has declined from about 18 bcf/d to 16 bcf/d over the past two years while marketed gas has remained relatively constant – how is this possible?

Total production includes shrinkage and other factors. However, it also includes gas produced and stored for sale at a later date. During the summer months when supply exceeds demand the excess is injected into storage reservoirs.This gas is later withdrawn to meet high demand during the winter. In June 2001 we were storing over 1bcf/d for future production but during the summer of 2002 we stored 30% less gas. Consequently the stored gas available for this past winter season was much less than that for the prior Figure 1: Why Canadian gas prices rose last winter. year. This left little cushion to meet peak demand and consequently prices skyrocketed.

Additionally, gas exports to the United States climbed substantially during 2002 – these levels cannot be maintained without a considerable increase in production. What are the implications if the U.S. economy strengthens and their demand for natural gas increases?

Are we capable of reversing this trend and increasing the gas in storage during the summer of 2003 or will we see an even more serious problem next winter?

To be continued...

BIOGRAPHY Dave Russum has spent more than 25 years exploring for hydrocarbons. He recently completed an exhaustive study of Canada’s future gas supply and demand. He has developed some unique approaches to both shorten the timeframe and improve the results of exploration activities. More information can be found at www.geohelp.ab.ca.

INFORMATION This is part of a series of snapshots of the Canadian industry designed to provide up-to-date information and give possible insights into the future of oil and gas exploration. Comments are strictly the views of the author; however, your feedback is encouraged ([email protected]).

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“…It seems earth science is the forgotten chemistry, and physics without ever hearing science content in its curricula than many science in our classrooms. However, the need for about topics such as plate tectonics or provinces, offering Earth Science 11 and professional geoscientists in our society has not geologic time. Upon reflection, it seems that Geology 12 courses. Regrettably, these diminished, and is now greater than ever with the geosciences were the forgotten programs are often undersubscribed. For concerns over environmental issues such as clean disciplines in my grade school classroom. many students and teachers it seems that the air, clean water and climate change. There is a They still are today… earth sciences carry the stigma of the need for increased science literacy by the general ancient, the unknown, and the impossible. As population, so that the importance of science can Increasing the profile of earth sciences a result, many of the top students who are be fully appreciated…” inside and outside of our schools is of pursuing post-secondary education in - L. Holmstrom critical importance to society, because an science-related careers have little exposure understanding of our Earth is fundamental to the geosciences. Until I stumbled upon a Geology course to intelligent debate on resource during university, I knew nothing of the earth management, natural hazards, and Attempting to change provincial curricula to sciences. I had spent years hiking in the environmental issues, which affect us all.The explicitly include more earth science is a Canadian Rockies without learning about the students of today will become the managers difficult and time-consuming process that has geology at my feet. At the U of C, Rocks for of tomorrow who will be dealing with issues resulted in many “fossilized” concepts.In order Jocks 201 opened my eyes to the earth we rooted in the geosciences. to reach science students, it is necessary to walk on and irreversibly changed my academic find a way to incorporate earth science into career. I just wish that I had known something Unfortunately, the high school curriculum the existing pure science curricula. The Yoho- of these sciences before I got to university! bypasses the earth sciences. Earth science Burgess Shale Foundation (TYBSF) and a team content makes up a minor proportion of of dedicated professional geologists have When I look back at my education in grade junior and intermediate school science developed the unique “Applied Continuum school, I was never introduced to the curricula and is often absent in the high Theory,” to introduce earth science into the geosciences.As an honor-role student aiming school curricula for pure science courses. pure science curricula. This cross-curricular for matriculation, I took advanced biology, British Columbia has more extensive earth approach illustrates scientific principles taught

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16 in biology, chemistry, and physics with real- programs are available to students and research community, teachers, and students. world examples from earth science. The teachers as well as the general public. This revolution will promote inquiry-based benefit of this approach is that it does not investigations and new strategies in require a change to the curricula! The pure In celebration of the UNESCO International classrooms. At a deeper, more important sciences cannot help but be enriched by the Year of Fresh Water, TYBSF is conducting level, the changes TYBSF are promoting in inclusion of earth science examples and two feature programs that investigate earth science education are essential to our activities because the theory becomes more themes linked to water.These programs are future. A citizenry literate in the earth relevant to students as it is related to their made more widely accessible to the public sciences is essential to inform political and surroundings. TYBSF offers training to high through generous assistance from the economic decisions that effect people on school science teachers through the “Making Suncor Energy Foundation. The first is a local, regional and global levels. Connections: Science in the Mountains” earth “Guided Hike on Climate Change” on the science enrichment workshop offered August Iceline Trail in Yoho National Park. On this ACKNOWLEDGEMENTS 22-24, 2003. This course is designed to spectacular trip, participants hike close Lisa Holmstrom and a team of volunteers have increase the teacher’s knowledge of geology enough to touch a glacier while learning been instrumental in developing the “Applied while providing them with the tools to about climate of the past, present, and Continuum Theory.” The volunteers are Philip enhance their existing curricula with more possibly the future. The second program is Benham (Shell), Clinton Tippett (Shell),Jon Dudley earth science examples. designed especially to educate and excite (CNRL), Charles Henderson (U of C), Darren kids 6-12 about the earth sciences. In “The Edwards (Shell), and Stan Stancliffe (Esso). Outside of the curriculum are numerous Mysterious Death of Ancient Ocean educational opportunities on guided hikes Monsters” children will actively participate and walks.TYBSF provides a variety of earth in a search for clues to solve the mysteries Sponsorship of the Teacher Training Workshop science educational programs during the of the extinction of trilobites. Modern day has been provided by the EdGeo program of the summer holidays from July 1 to September arthropods and Cambrian fossils provide the Canadian Geoscience Education Network, 15. These include guided hikes to the clues. These non-curricular activities inspire Suncor Energy Foundation, Canadian Geological Burgess Shale (Walcott Quarry) and Mt. an appreciation of geosciences that will Foundation, and CSPG Educational Trust Fund. Stephen fossil beds. There is no better way translate to increase science literacy for the to gain a sense of the scale of the earth children and adults who participate. ADDITIONAL INFORMATION sciences than on a high mountain hike where IS AVAILABLE AT: you are surrounded by impressive peaks! Changes in earth science education sprout Website: www.burgess-shale.bc.ca Geology is a massive topic and the best from the timely and essential transfer of new Phone: 1-800-343-3006 classroom is one without walls. These knowledge and paradigms among the E-mail: [email protected]

17 2003 CALENDAR OF EVENTS

DATE: June 2-6, 2003 understanding of the Earth.The innovative technical EVENT: 2003 CSPG/CSEG Annual program will include keynote addresses, workshops, Convention - “Partners in a New Environment” and oral and poster sessions. Field trips will visit LOCATION: Round Up Centre, Stampede Park, Calgary, Alberta many world-renowned sites of interest including the INFORMATION: For more information please contact Lori Humphrey- Rocky Mountains, the Burgess Shale, the Royal Tyrrell Clements Tel: 403-264-5610 Museum of Paleontology, the Frank Slide, and the Email: [email protected] Athabasca Glacier. Please visit www.geoscied.org for details. DATE: June 23, 2003 EVENT: CSEG Technical Luncheon DATE: September 21-24, 2003 LOCATION: Telus Convention Centre – 11:30 am EVENT: The Society for Organic Petrology (TSOP), INFORMATION: CSEG Speaker: Robert Vestrum (Veritas) 20th Annual Meeting Title: Smearing the Sideslip and Other Anisotropy LOCATION: Washington, D.C. Problems - Or " Don't hate me because I am INFORMATION: Dr. Peter Warwick, US Geological Survey, 956 National beautiful: 3D anisotropic depth migration in the Centre, Reston,Virginia 20192 USA; Phone (703) 648- Canadian Foothills". Ticket Orders: Contact Lisa 6469; Fax (703) 648-6419; E-mail: [email protected]; Eastman, CSEG Volunteer Ticket Coordinator. Futher details: http://www.tsop.org/mtgdc.htm Deadline: Wed before Monday Lunch, Price - Abstracts due 4/15/03. Oral and poster sessions $25+GST ($26.75) See CSEG website - under September 22-23.Topics include petroleum systems, Upcoming Luncheon for ticket order form source rocks, coalbed methane, coal characterization (Ron Stanton memorial session), government, and DATE: August 10-14, 2003 energy. Short courses (Sept. 21) on trace elements in EVENT: GeoSciEd IV: Earth Science coal and health impacts of coal plus a core workshop for the Global Community on coal and petroleum source rocks of the National LOCATION: Calgary, Alberta Petroleum Reserve in Alaska. Field trip (Sept. 24) on INFORMATION: The fourth international meeting for earth science geology and energy resources of the Triassic basins of teachers from elementary to university level, and for northern Virginia. earth scientists who deliver educational outreach programs through their communities, museums, or science centres.The purpose is to share ideas and Please visit www.cspg.org to download or print concepts in earth science education and in the the monthly version of the calendar of events. development of programs that lead to an integrated

CANADIAN SOCIETY OF PETROLEUM GEOLOGISTS CSPG VOLUNTEER CALL FOR NOMINATIONS 2004 EXECUTIVE COMMITTEE COORDINATOR

In accordance with Article VI, subparagraph (a) of the By-Laws, the If you are looking for a Nominating Committee hereby calls for Nominations to Stand for volunteer opportunity Election to the 2004 Executive Committee of the Canadian Society of within the CSPG, Blythe Petroleum Geologists. Nominations are to be made in writing, signed will be happy to help you by at least twenty-five members in good standing and endorsed by the find your volunteer niche. nominee who is consenting to stand for office. Nominations should be forwarded to the CSPG office by September 15, 2003. The slate of She can also provide information candidates will be published in the November Reservoir and the about any of the Society’s numerous election will take place on November 30, 2003. The following vacancies committees if you require it. exist for 2004: Blythe will also assist with finding Vice President replacements for current committee Assistant Finance Director volunteers who need a change Assistant Program Director and help them to find different Assistant Services Director volunteer opportunities in the Society, if desired. Successful candidates for the Directorships will serve two-year terms and the elected Vice President, a three-year term. Interested parties Blythe Lowe can be reached should contact the office for details and general requirements of in Calgary at 403-290-3516. service on the Executive. Give her a call!

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The Extraordinary Odyssey of Sir William E. Logan to become the second in their geological reports not only economic R. G. McConnell director of the Survey, a position he held until synopses relating to the occurrences and 1895. As the new director, he undoubtedly locations of minerals, including coal and The following, relating to the North West and proposed that reconnaissance mapping be petroleum that they observed, but comments Hudson’s Bay Companies exploration in undertaken in the territory formerly directed to climactic conditions and Canada’s far northwest, will hopefully serve comprising Rupert’s Land (Hudson’s Bay agricultural capabilities. The identity of native to set the stage for the subsequent role watershed), as well as those lands in northwest trees and small plants were documented played by R. G. McConnell during his 1887 - Canada lying within the Arctic watershed. It according to their formal taxonomic names 1888 exploration of the Mackenzie River and was self-evident that in order to expeditiously and flowering specimens were collected for Yukon basins. map these remote and relatively unexplored further classification by botanical specialists in tracts of land it was necessary to traverse their Ottawa. Collections of fossil specimens were Arduous and extensive travel, within relatively navigable rivers. The preponderance of and of paramount importance in unraveling the uninhabited regions of Canada, has been the accessibility to rock outcrops, flanking their age(s) of the stratigraphic sequence tradition of those dedicated Geological Survey shores, would afford a optimum of geological encountered, particularly in those hitherto of Canada’s geologists, past and present, who information. The season for field investigation unmapped areas of much of northwest have chosen to spend successive seasons in the in northern Canada is understandably short, Canada. The tribal affiliation of the various field. This calling was particularly evident being confined to a period between late spring indigenous natives they came in contact with following the Hudson’s Bay Company breakup of ice on the lakes and rivers and their were identified according to their linguistic relinquishment of it’s Rupert’s Land territory in freezing over in early autumn. stock. The names and locations of active or late 1869 and the subsequent incorporation, in abandoned Hudson’s Bay trading posts, 1870, of this vast area into the burgeoning These late 19th-century Survey geologists including independent operators, were Dominion of Canada. It was propitious, at this made good use of their interdisciplinary skills. indicated on the Survey’s late 19th century juncture, that Alfred R. C. Selwyn had replaced This knowledge enabled them to incorporate geologic maps of northwest Canada. Historic

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22 accounts, contained in reports by the Survey’s was not bent on the quest for new fur- which they designated “Assiniboia”. It had geologists, of those explorers who had bearing regions, but was purely scientific in comprised an area which now consists of previously visited their respective areas of scope. Lawrence J. Burpee (The Search for portions of Saskatchewan, Manitoba, Ontario, study, served to chronologically acknowledge the Western Sea, pub. Mission, 1908, p. 57) North Dakota, and Minnesota. Conflict, their predecessor’s exploits. succinctly enunciates the chronology of the instigated by the Métis and North West exploration phases by stating: “If the history Company, commenced from its inception. An Indispensable to the successful operations of of exploration in the far west is divided into embargo had been placed on the export of the Survey’s geological parties, particularly in three periods, the first may be said to be the pemmican from the colony in 1814, which unfamiliar regions, were the Métis, natives, and North West Company, the second the result had placed the livelihood of the Métis white men, who had honed their skills to Hudson’s Bay Company, and the third the buffalo hunters and their families in jeopardy. survive in the harsh environment. Some were Geological Survey of Canada.” The ensuing violence and vandalism engaged by the geologists as boat and canoe culminated in 1816 at Seven Oaks with the builders, but for the most part, they served Immediately following Alexander massacre, by the Métis, of 21 of the colonists, them as guides and boatmen in expediting the Mackenzie’s epic journey in 1789 to the including Robert Semple, their governor. navigating of lakes and rivers. Many of the Arctic Sea, along the river named in his Although the Nor’Westers were not directly Métis had formerly been employed as honour, its drainage basin became involved in the slaughter, they were voyageurs in service of the Hudson’s Bay recognized as an accessible, untapped region nevertheless implicated as accessories. The Company and were well acquainted with the for the trafficking of furs. Mackenzie was animosity between the two companies potential hazards of the rivers. Their manual associated with the North West Company continued to persist, when paradoxically, it duties involved long stretches of paddling, during the period of his voyage, having been poling through or “running” the rapids, made a full partner in 1787. The XY was terminated by their union. backpacking supplies and equipment and Company (New North West Company) transporting the wooden boats and canoes came into existence in 1798 and resulted In 1820, George Simpson was sent by the across portages. In ascending swift-flowing, from a dissatisfied faction which had Hudson’s Bay London committee rapid-infested rivers, it became necessary for extricated themselves from their former headquarters to the Athabasca district during these stalwart servants to engage in the Company. the denotation of the letters the simmering rancor of the rivaling grueling and beast-like task of tracking, a “XY” were not abbreviated words but were companies. He had been sent there from procedure which involved the hauling in rather akin to a cattle brand, which was London as a potential replacement for the tandem their craft upstream. stamped on their bales of fur so as to then Governor Williams, should the latter be prevent confusion with those of the North arrested by the North West Company. The onset of the decline of the Hudson’s Bay West Company. In late 1804 the two rivals Williams’ arrest never came to pass since the Company’s commerce in furs had merged, under the North West Company feuding parties differences were resolved by commenced at least a decade before it had banner, to become a formidable competitor their amalgamation in 1821. The expanded relinquished Rupert’s Land to the Dominion to the Hudson’s Bay Company. Hudson’s Bay Company was now master of its of Canada. Accompanying this decline was the far-flung domain, having effected a monopoly abandonment of many of it’s trading posts, It was during the first decade of the 19th of the fur trade in both the Hudson’s Bay and resulting in the disengagement or transfer of century that the more aggressive North West Arctic drainage systems. post employees. More significantly, their Company made incursion into the Mackenzie closing impacted the livelihood of the River valley, establishing trading posts along With the merger a fait accompli, Simpson voyageurs involved with the annual fur the length of the Mackenzie River. These was appointed governor of the Northwest brigades.These consisted of the transport of establishments were usually located at the Department and in 1826 was promoted to trade goods in spring to the “upper country” confluences of some of its major tributaries, governor of the Company’s operations in and the return during late summer with furs namely: the original Fort Liard (later renamed British North America. As governor, he destined for their eastern depots. Many of Fort Simpson), Fort Norman, and the original became familiar, through his extensive these former voyageurs had chosen to reside Fort Good Hope. North West Company travels, with not only the geography of the in northwest Canada with their native posts, pre-dating 1812, were situated up major remote terrains he administered, but also partners and children. These venturous tributaries of the Mackenzie River, notably the personnel who operated the company’s individuals, most of whom were of French- Fort aux Liards on the lower reaches of the posts. His insatiable curiosity concerning Canadian descent, as well as their Métis Liard (Liard being a French name for a variety his chief factors, chief traders, clerks, progeny, were the tangible legacy left by the of poplar tree) and Fort Nelson, located on postmasters, and servants were recorded in Company. It was only logical that the the upper reaches of the Fort Nelson River. Geological Survey of Canada’s field parties The latter river was originally referred to as his ‘Character Book’ which was a personal would benefit from the recruitment of these the “East Branch of the Liard River.” assessment of each employee expressed in experienced and knowledgeable river men. a detached manner and unequivocal candor. The natives of northwest Canada, whose The relatively unrestricted competitiveness (Hudson’s Bay Miscellany 1670 - 1870, The hereditary life-style was inextricably that the North West Company enjoyed in the Hudson’s Bay Record Society, 1975, vol. dependent on the systems of lakes and rivers, far northwest was short-lived. The altruistic XXX. pp. 167 - 236) His God-like were also availed upon by the Survey’s motives of Lord Selkirk in establishing a judgement appears to have been seasoned geologists to serve as canoe builders, colony in 1812 of disposed crofters in the by his egotism. George Simpson was paddlers, guides, packers, and hunters. Red River Métis settlement of Rupert’s Land knighted in 1841 for his organizational sent reverberations throughout the skills, business acumen, and exploration The far northwest was to experience a new northwest. He and his family, by accumulating achievements. He also received, during his era of exploration by a group of explorers a major portion of Hudson’s Bay Stock, tenure, a second dubbing by his compatriots whose motivation, unlike their predecessors, obtained from the Company a vast land grant with the sobriquet:“The Little Emperor”.

To be continued . . . 23 2003 CSPG / CSEG CONVENTION PARTNERS in a new ENVIRONMENT

Organizing Core Conference Marketing/Publicity CSEG Managing Speaker's Breakfast Committee: Pat Jans Karen Greengrass Director Maggie Stratton Jans Geosearch Inc. Graham Davies Jim Racette Anadarko Petroleum General Co-Chair Geological Consultants (CSPG) Field Trips 262-0015 Corporation Ralph Rudser Ltd. Wayne Foo [email protected] Core Meltdown BP Canada Cheryl Wright Hardisty Resources Ltd. Penny Gray Cheryl Wright General Co-Chair Short Courses Sub-Committee ConocoPhillips Canada (CSPG) Consulting Ltd. (CSEG) Nathan Bruder Members: Jim Stenhouse Logistics Student-Faculty Devon Canada Intercontinental Seismic Mike Stevenson Exhibits Committee Reception Surveys Ltd. Short Courses Veritas GeoServices Ltd. Sean Callaghan Gillian Stoyko (CSEG) IHS Energy Registration Veritas GeoServices Ltd. Finance Chair Darrol Proskow Bob MacDonald James Burns Upton Resources Limited Long-time Members Dominion Exploration Nexen Inc. Wallace Wells Reception Canada Ltd. Judging & Awards Welco Computer Nathan Humphrey Maggie Stratton Kevin Marsh Services Inc. ConocoPhillips Canada Technical Program Anadarko Canada Statcom Ltd. Co-Chair (CSEG) Corporation Special Events Logistics Commitee Exhibitor Golf Mike Clement Abstract Submissions Dave Mackie David Chown Tournament Veritas GeoServices Ltd. Satinder Chopra Suncor Energy Inc. Monty Ravlich IceBreaker Technical Program Core Laboratories Louise Shaw Tucker Wireline Services Co-Chair (CSPG) Reservoir Technologies ConocoPhillips Canada Dean Bull Trudy Pelletier Mark Cooper Sponsorship Kaiser Energy Ltd. Malcolm Shaw The Excalibur-Gemini EnCana Corporation James Lamb EnCana Corporation Diane Dawson Group Scheduling Landmark Graphics Publications/Printing Intercontinental Seismic Coordinator Cherene Crawford Volunteer Stephen Carlton Pulse Data Inc. Corey Hooge Surverys Ltd. Recognition Night Petrovera Resources Paul Piovoso Posters Exhibits Luncheons CSPG Conventions ConocoPhillips Canada Roger Fife Carmen Swalwell Stacia Skappak EnCana Corporation Lynx Information Manager Husky Energy Special Events Systems Ltd. Lori Humphrey- Posters Clements Committeee Dave Gray John Townsley 264-5610 Richard Wong Cindy Lang Veritas GeoServices Ltd. Divestco.com [email protected] Shell Canada Pulse Data Inc.

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PARTNERS in a ICEBREAKER Sponsored by Dominion Exploration Canada Ltd. new ENVIRONMENT Monday, June 2nd 4:00pm – 9:00pm 2003 CSPG / CSEG Convention Round Up Centre - Exhibition Halls Round Up Centre, Stampede Park June 2-6, 2003 COME Calgary • Alberta • Canada LUNCH BAR Wednesday, June 4th 11:30am – 1:00pm Round Up Centre - Exhibition Halls For more information visit JOIN MINI BREAKER Tuesday, June 3rd www.cspg.org 4:00pm – 6:00pm Round Up Centre - Exhibition Halls or THE

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26

NET PAY IN NATURALLY FRACTURED RESERVOIRS BY ROBERTO AGUILERA, PH.D., P.ENG., SERVIPETROL LTD., CALGARY, CANADA

The recent article “Net-To-Gross Ratios” by NFR (Aguilera, R. and Aguilera,M. S. 2001).The Etris and Stewart (Etris, N. and Stewart, B. production log shows that there are only two 2003) raised some valid points to clarify zones where fluids enter the wellbore. concepts of net pay, net thickness, and net-to- However, the whole section from top to gross ratios.Their example 2 shows that net bottom is net pay. pay is characterized by (relatively) high porosity, high permeability, and high If porosity and permeability are not advisable hydrocarbon saturation. User-defined cutoffs in many cases as cutoff criteria, how can we of these characteristics determine the estimate net pay in a NFR from wellbore amount of net pay. My note has to do with data? In my experience, water saturation, naturally fractured reservoirs (NFR) where shaliness, and pore throat aperture, as well as intervals with low porosity and low keeping an eye on well-testing data, provide permeability, which do not meet conventional reasonable criteria. Figure 1: Schematic of multi-layered, naturally cutoff criteria, can constitute net pay. fractured reservoir. Production log at left shows two zones where hydrocarbons enter the wellbore. I have many times used water saturation However, the whole interval from top to bottom is It has been found through selective perforating, cutoffs in the order of 55%, although there are net pay in this case. n production logs, and rock mechanics exceptions. When calculating Sw (e.g., Sw = φm experiments in cores, that for the same physical (aRw)/( Rt)) keep in mind that the dual slope of 0.5 might indicate that fractures not environment and stresses – other things being porosity exponent m of the fractured intervals intersected by the wellbore could be

equal – the amount of natural fracturing is smaller than the porosity exponent mb of contributing to production. increases as porosity and permeability of the only the matrix as determined from host rock decreases. This in turn leads to the unfractured plugs. Be also careful with the Determining whether zones of low porosity recommendation, that unless there is scaling of matrix porosity to avoid potential and / or low permeability contribute net pay

supporting information to the contrary, it is errors in the calculation of Sw. (Aguilera, R. and is not an easy problem. But by keeping in better not to use porosity and permeability as Aguilera, M. S. 2003).The larger the amount of mind the guidelines presented above, a more cutoff criteria in NFR.The message is not that natural fracturing, the smaller the value of m realistic estimate of net pay should be we should forget about intervals with high will be. A useful assumption is that the obtainable for naturally fractured reservoirs. porosities and permeabilities, but rather that required water saturation exponent n is we should never overlook low permeability and approximately equal to m. REFERENCES low porosity intervals in NFR. Aguilera, R. 2002a. Incorporating Capillary Shaliness is also a very important cutoff Pressure, Pore Throat Aperture Radii, Height Above

Darcy’s law indicates that fluid rate is equal to criterion. As plasticity increases there is less Free Water Table, and Winland r35 Values on

permeability times area times pressure probability of finding fractures.Therefore Vshale Pickett Plots.AAPG Bulletin, v. 86/4, p. 605-624. differential divided by fluid viscosity and is very valuable for determining net pay in NFR.

distance. The reservoir area exposed to the The variability of Vshale as a cutoff can be quite ______. 2002b. Determination of Matrix wellbore is typically very small. For low significant from reservoir to reservoir. For Flow Units in Naturally Fractured Reservoirs. permeability reservoirs, that small area does example, there are reservoirs where fractured Paper 2002-157, presented at the Petroleum not allow significant hydrocarbon flow into shales produce at commercial oil and gas rates. Society Canadian International Petroleum the wellbore. However, if there is natural Conference. Calgary, Canada, June 11-13, 2002. fracturing around the wellbore that extends Pore throat apertures of the matrix can be throughout a large portion of the reservoir, estimated from mercury injection capillary Aguilera, R. and Aguilera, M. S. 2001. Well Test the matrix area exposed via the fractures can pressures. If not available, there are empirical Analysis of Multi-Layered Naturally Fractured become quite significant. In this case the correlations that can help in the determination Reservoirs with Variable Thickness and Variable product of the large area times the small of the pore throat apertures. Particularly useful Fracture Spacing. Journal of Canadian Petroleum

permeability can allow very efficient are the Winland r35 pore throat aperture as Technology, v.40/12, p. 9-12. hydrocarbon flow from matrix to fractures explained by Martin et al (Martin,A. J., Solomon,

and then to the wellbore, constituting what is S.T., and Hartmann, D. J. 1997).The derived rp35 ______. 2003. Improved usually known as a dual-porosity reservoir. radii can than be superimposed directly on Models for Petrophysical Analysis of Dual Porosity Pickett plots (Aguilera, R. 2002a, 2002b). Martin Reservoirs. , v.34/1, p. 21-35. In a “conventional” unfractured reservoir, the et al provide potential oil rates that can be rock must be capable of allowing direct obtained from different pore throat sizes. Etris, N. and Stewart, B. 2003. Net-To-Gross hydrocarbon flow into the wellbore to Ratio. CSPG Reservoir, v. 30/4, p. 24-25. constitute net pay. In a NFR, the rock, usually Well-testing data can help to determine, via called matrix by reservoir engineers, does not the “valley” generated by the pressure Martin, A. J., Solomon, S. T., and Hartmann, D. J. have to necessarily permit direct hydrocarbon derivative, if the tight matrix is contributing 1997. Characterization of Petrophysical Flow flow into the wellbore to constitute net pay. production to the fractures (not to the Units in Carbonate Reservoirs, AAPG Bulletin, v. Figure 1 shows a schematic of a multi-layered wellbore). Also, a derivative with a negative 81/5, p. 734-759.

28 BIOGRAPHY Dr. Roberto Aguilera is president of Servipetrol Ltd. Engineering from the Colorado School of Mines. and an Adjunct Professor in the Chemical and He has presented his course on Naturally Department at the Fractured Reservoirs and has rendered consulting University of Calgary, where he concentrates in services throughout the world. He is a teaching about the theoretical and practical Distinguished Author of the Journal of Canadian aspects of naturally fractured reservoirs. He is a Petroleum Technology, a recipient of the petroleum engineering graduate from the Outstanding Service award from the Petroleum Universidad de America at Bogota, Colombia and Society of CIM and a SPE Distinguished Lecturer holds M.Sc. and Ph.D. degrees in Petroleum on the subject of Naturally Fractured Reservoirs.

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TAKO KONING New: Angola Residential Representative, Yme Foundation (NGO involved with water well drilling & community assistance in Angola) Previous: Kwanza Basin Exploration Manager ChevronTexaco, Luanda, Angola (retired after 29 years worldwide with ChevronTexaco)

29 EXPLORATION AND TECHNOLOGY UPDATE PRELIMINARY TECTONIC MAP OF THE WESTERN CANADA SEDIMENTARY BASIN

BY ZEEV BERGER AND XIANG WANG, IMAGE INTERPRETATION TECHNOLOGIES INC. (IITECH)

INTRODUCTION stratigraphic framework of this basin. However, approach have been well demonstrated in For many years, most exploration geologists little attention has been directed to the regional tectonic studies (Barclay et al., 1990; have regarded the Western Canada mapping and analysis of the main tectonic Ross, 1990; Ross et al., 1994), and through a Sedimentary Basin (WCSB) as a “stratigraphic elements present in the WCSB, nor to their recent geological study by Davies (1996), which illustrates the strong link between deep-seated basin”, and consequently a great deal of style of deformation and potential influence on faults and the development of hydrothermal research has been done to establish the hydrocarbons plays. The benefits of this latter dolomite (HTD) reservoirs in the Devonian and Mississippian sections of the basin.

During the past several years, IITech has had the opportunity to conduct a number of regional geologic studies in the WCSB.These studies relied primarily on the analysis of high- resolution aeromagnetic (HRAM) data, and regional seismic lines that were assembled from both published and unpublished sources. The knowledge and expertise gained through this work allowed IITech to begin assembling a new tectonic map of the WCSB. In this paper, we wish to illustrate some of the major findings from this effort. It is important to mention that the maps shown here have been generalized and represent work in progress. There are two objectives to this paper: first, to illustrate the styles of deformation of various geological structures present in the basin, and second, to demonstrate the benefits of integrating regional seismic and HRAM data during basin analysis.We also plan to publish a follow-up paper illustrating the control of some of these structures on various hydrocarbon plays in the WCSB.

GENERALIZED TECTONIC MAP A generalized tectonic map illustrating the key faults and fracture systems identified in the northern portion of the WCSB is shown in Figure 1. This map was compiled from published data as well as from our interpretation of HRAM and regional seismic data.Two major aspects related to the faulting are illustrated in this figure: (1) style of deformation; and (2) time of motion. From a structural-style point of view, the structural elements have been divided into two categories: (1) basement-involved structures; and (2) detached structures (mostly related to shallow thrusting). Basement structures may be further subdivided into those that follow basement lithological boundaries and those that intersect these boundaries.

The tectonic map in Figure 1 attempts to highlight motion of individual faults, as well as outline the extent of the area affected by particular tectonic episodes. For example, the area affected by the Cretaceous-Tertiary Figure 1. Generalized tectonic map of the northern part of the West Canada Sedimentary Basin. Two excellent examples of reactivation along NE-trending faults are highlighted in this figure (pink boxes): the Laramide Orogeny is highlighted in green on Monias Field and the Gambill Shear Zone (GSZ). the map. Four major tectonic events are 30 Continued on Page 32 . . .

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recognized: (1) Proterozoic deformation, which area into two zones (separated by the green movement along the NE-trending HRSZ and includes the Wopmay Orogeny, Middle line): (1) the eastern area, which was not regional compressional principal stress during Proterozoic extension and subsequent significantly affected by the Laramide the Laramide deformation. The seismic contraction, as well as rifting in the Late Orogeny; and (2) the western area, which was interpretation shown in Figure 2e shows that Proterozoic; (2) Devonian-Carboniferous strongly affected by Laramide Orogeny. the HRSZ is characterized by a positive flower deformation, such as the Antler Orogeny, which structure in Precambrian strata and hybrid includes the collapse of the Peace River Arch; The portion of the WCSB east of the flower structures structure within the (3) Triassic-Cretaceous foreland extension and deformation front is characterized by Paleozoic and lower Mesozoic strata, which contraction of the Columbian Orogeny; and (4) basement structures that can often be implies reactivations of the HRSZ, possibly Cretaceous-Tertiary foreland contraction of recognized in the magnetic data. However, during the Antler and Laramide orogenies the Laramide Orogeny. faults associated with these structures do not respectively. This variation in structural styles form strong and coherent expressions on within the HRSZ possibly resulted from A more detailed version of this map includes seismic data. In addition, these faults generally multiple reactivation events with different a third element which consists of oil and gas die out in the Mesozoic section and rarely sense of movement during Phanerozoic time. pools that are clearly controlled by faulting. show evidence of Laramide movement. In These pools are divided into three categories: situations like these, HRAM data become very The basement in the area west of the structural traps, stratigraphic traps, and useful for detecting basement faults. For deformation front is relatively deeper. Major combination traps. example, the complex fault pattern of the Hay basement structures within this portion of River Shear Zone (HRSZ) can easily be the basin are characterized by folded and / or ANALYSIS OF KEY STRUCTURAL ELEMENTS recognized in the HRAM data of Figure 2b.The normal fault-bounded basement highs. WITH SEISMIC AND HRAM DATA imagery reveals that the main fault zone is Normal faults cutting across Precambrian and Figure 2 illustrates how available magnetic and crosscut and offset by several northwest- Paleozoic strata may have resulted from regional seismic data can be used to assess trending features that may form a series of thrust loading during Laramide time. The the style, intensity, and timing of deformation tilted fault blocks with small “pull-apart HRAM data in Figure 2f shows that low- and of key structures in the basin. The GSC basins”.A seismic line across the HRSZ (Figure high-frequency magnetic anomalies can be regional magnetic data (2a) highlights the 2c) reveals that the extension of the used to detect basement and near surface magnetic signature of the major basement Proterozoic flower structure is characterized structures respectively. The major structural features observed in northeast British by extensional structures in the Paleozoic and style shown in Figure 2g is characterized by Columbia. The HRAM and regional seismic lower Mesozoic strata. Figure 2d illustrates the folds and thin-skin thrusts influenced by data further enable us to divide the whole possible kinematic relationship between basement structures. The presence of

Continued on Page 34 . . .

Figure 2. Structural Styles in northeast British Columbia. (a) GSC regional aeromagnetics; (b) Residual HRAM (Fugro and IITech proprietary data) for the inset outlined in (a); (c) Structural deformation styles along seismic lines across the Hay River Shear Zone; (d) Strain ellipse showing the possible kinematic relationship between movement along the NE-trending HRSZ and regional compressional principal stress during Laramide deformation, (e) Structural deformation styles along seismic lines across the Hay River Shear Zone; (f) residual HRAM (Fugro and IITech proprietary data) for the inset outlined in (a); (g) & (h) Structural deformation styles along seismic lines across basin boundary. 32 200, 635 - 6 Avenue SW Calgary, Alberta, CANADA T2P 0T5 Tel 403 262-1992 Fax 403 262-1987 [email protected] www.geologic.com A Message to our Customers As we enter our third decade of providing service to our customers, we wanted to find out how well we are meeting your needs.

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basement highs/ramps appears to have along the seismic interpretation in Figure 2h. Laramide Orogeny.Two excellent examples of strongly influenced the development of the Here, thrusts and associated detached folds this process are highlighted in Figure 1 (pink overlying thrust and fold belt. Many of the typically developed above basement boxes): the Monias field and the Gambill Shear folds are basement-cored, which indicates structures, indicating involvement and strong Zone (GSZ). basement involvement during the Laramide influence of the basement on the Orogeny. Laramide contractional structures development of the overlying thrust and fold The Monias Field developed along the mainly developed above and to the west of belt during the Laramide Orogeny. reactivated southern arm of the Fort St. John major basement ramp/high. The overall Graben. Figure 3 illustrates that fault basement configuration resulted in an Another unique type of structural reactivation led to a partial inversion of the eastward decrease in sedimentary cover reactivation present in the WCSB occurs graben (Figure 3a) and the formation of an deformation during Laramide deformation. along northeast-trending basement faults that impressive structural trap within the Halfway Some extensional basement structures may form the dominant fabric of the Precambrian reservoir.The thickness of the Triassic Halfway have been reactivated during Phanerozoic basement. From a kinematic point of view, sediments increases across the graben time, possibly providing conduits for upward these faults appear to have undergone strike- boundary fault, indicating extensional structural migration of the HTD fluids. A similar slip reactivation as a result of northeasterly control during the graben phase (Figure 3b). structural deformation style is also shown regional compressional stress during the During the Laramide Orogeny, transpressional reactivation of pre-existing normal faults resulted in partial inversion of the graben.

The Gambill Shear Zone (GSZ) is found in the Norman Wells area (Figure 4). Figure 4a illustrates that the Gambill Diapir acted as a transfer zone linking the GSZ and the Norman Range Thrust (MacLean and Cook, 1999). Geological mapping (Figure 4b) shows that the major tectonic elements in this area are only partially exposed at the surface. However, through the HRAM data (Figure 4c-d) we can recognize that the transfer zone reflects the presence of a complex shear element that exhibits basement-involved right-lateral faulting, which resulted in a complex pattern of surface and near-surface anticlines. The block diagram in Figure 5 illustrates that the GSZ consists of high-angle wrench faults and a series of tight, salt-cored anticlines that developed and wrapped around a basement high to the north. Strike-slip reactivation of northeast-trending basement faults may have triggered the development of salt diapir structures along this fault zone during the Laramide deformation.

CLOSING COMMENTS A systematic analysis of major tectonic elements can provide significant clues for the recognition of key play elements in the WCSB. This approach is particularly critical as the basin becomes more mature and exploration companies become eager to find new ideas and areas for exploration The assemblage of a tectonic map requires a multi-disciplinary team that can use a variety of data sets, including: 1) structural and isopach maps on key horizons; 2) regional seismic lines; 3) high resolution gravity and magnetic data sets; and 4) surface geological information. The assemblage of a summary tectonic map that describes all of these elements could be used as a generalized reference point. However, such effort must be Figure 3. Inversion structures in the Fort St. John Graben. (a) Present-day scenario characterized by partial complimented with a detailed analysis of key oil inversion; and (b) Graben Phase (flattened on top of the Halfway Fm.). and gas pools and prospect areas. 34 Continued on Page 36 . . .

Continued from Page 34 . . .

ACKNOWLDEGEMENTS We would like to thank Norman Kohlhammer who championed our efforts to access regional seismic data in the WCSB.Additional seismic data in critical areas were provided by Ron Miksha and by Lynx Information Systems Ltd.We would also like to acknowledge the IITech technical team, who provided help with data processing and the content of this paper. Finally, we would like to express our gratitude to the many clients who offered their ideas during the interpretation stages of this effort.

REFERENCES Barclay, J.E., Krause, F.F., Campbell, R.I., and Utting, J., 1990. Dynamic casting and growth faulting: Dawson Creek Graben Complex, Carboniferous-Permian Peace River Embayment, Western Canada. In: S.C. O’Connell and J.S. Bell (eds.), Geology of Peace River Arch, Bulletin of Canadian Petroleum Geology, v.38a, p.115-145.

Davies, G.R., 1996. Hydrothermal dolomite (HTD) reservoir facies, Course Notes. 167p.

MacLean, B.C., and Cook, D.G., 1999. Salt tectonism in the Fort Norman area, Northwest Territories. Bulletin of Canadian Petroleum Geology,Vol. 47, No. 2, p. 104-135.

Ross, G.M., 1990. Deep crust and basement structure of the Peace River Arch region: constraints on mechanisms of formation. In: S.C. O’Connell and J.S. Bell (eds.), Geology of Peace River Arch, Bulletin of Canadian Petroleum Geology, v.38a, p.25-35.

Ross, G.M., Parish, R.R., Villeneuve, M.E., and Bowring, S.A., 1989. Tectonic subdivisions and U-Pb geochronology of the crystalline basement of the Alberta basin, western Canada. Open File 2103.

Ross, G. M., Broome, J., and. Miles, W., 1994, Potential fields and basement structure Western Canadian Sedimentary Basin. In: G. D. Mossop and I. Shetsen (comps.), Geological Atlas of the Western Canadian Sedimentary Basin, Calgary, Canadian Society of Petroleum Geologists and Alberta Research Council, p. 41-48.

Wheeler, J.O., and McFeely, P., (comp.), 1991, Tectonic Assemblage map of the Canadian Cordillera and adjacent parts of the United States of America, Geological Survey of Canada, Map 1712A, scale 1:2000000.

BIOGRAPHY Zeev Berger is the president of Image Figure 4. Interpretation of the Gambill Shear Zone on the Norman Wells area. (a) Simplified tectonic map of the Norman Wells area (from MacLean and Cook, 1999); (b) surface geological map (Wheeler and McFeely, Interpretation Technologies Inc (IITech). He 1991), (c) GSC HRAM imagery; (d) GSC HRAM imagery with major tectonic elements. received a Ph.D. in Geomorphology from 36 Continued on Page 38 . . .

Continued from Page 36 . . .

Pittsburgh University in 1977; and earned a Post Doctorate Fellowship in remote sensing at the University of Georgia in 1978. Zeev joined Exxon Production Research Company in 1980 and was leader of their remote sensing group. He left Exxon in 1994 to form IITech as well as presiding over PAZ Energy from 1994-1999. Zeev has published extensively on the subject of integrated remote sensing studies for , including a textbook entitled “Satellite Hydrocarbon Exploration”.

Xiang Wang is a senior structural geologist at IITech. He received a B.Sc. in Geology from Xi'an Mining Institute (P.R. China) in 1982, a M.Sc. in Structural Geology and Geochemistry from Xi'an Geological College (P.R. China) in 1986, a M.Sc. in Structural Geology and Rock Mechanics from Imperial College (UK) in 1992, and a Ph.D. in Geology from the University of New South Wales (Australia) in 1999. Since graduating, Xiang has worked as a senior structural geologist at IITech, Figure 5. Block diagram showing GSC residual HRAM and seismic line 105 (courtesy of Lynx pursuing integrated tectonic studies on the WCSB Information Systems Ltd.) with interpretation of major structures. Red lines represent faults, while blue and some hydrocarbon-bearing basins in the USA. arrows indicate salt diapir structures and salt-cored anticlines.

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