Exploration potential of the Argentina and Austral- Malvinas Basins
Steve DeVito May 2018 Outline
• Ministry of Energia and Mineria (MINEM) License Round Update
• Argentina Offshore Overview
• Argentina Basin
• Austral and Malvinas Basins
• Value Proposition
• Contact Information
Offshore Rounds Preview
• Round 1: Austral-Malvinas Open July 2018 Close November 2018
Northern Argentina Basin Open July 2018 Close November 2018
• Round 2: Southern Argentina Basin Open Q2 2019 Close Q4 2019 Fiscal Terms highlights
• Tax and Royalty Contract
Corporate Income Tax Rate currently 30%, reducing to 25% in 2021
• Royalty 5-12%; Working Units Bid, no signature bonus
• 4 + 4 + 5 years Exploration & Development Deepwater 4 + 3 + 4 Years Shallow Water
50% Relinquishment after 2nd Period
• No obligation to drill in the 1st Exploration Period (proposed)
• 20 + 10 Years Exploitation
Proposed block outlines, Round 1
Austral Basin 6 Blocks 2,000- 2,500 km²
Argentina Basin 14 Blocks 6,300- 8,800 km²
West Malvinas Basin 30 Blocks 3,000- 5,000 km² Argentina Offshore overview
• Exploration potential in the northern inboard basins is virtually untested. No industry activity since 1997
• Argentina Basin undrilled; Malvinas Basin underexplored
• Total-operated Vega-Pleyade gas field offshore Austral Basin online in 2015, EUR 1 TCF
• Spectrum’s new MC surveys are the first true regional seismic grid with 12,000 meter streamer, 25 m shot points, 15 seconds records. 20 km line spacing with ties to key wells; PSTM and PSDM, grav/mag, angle stacks. 52,000+ line km shot
IODP 2017 Offshore E&P Today
• Last Exploration Well Drilled YPF Malvinas-1 2011
• 142 Exploratory Wells Drilled Total 67% in San Jorge & Austral basins Only 3 deepwater wells
• 26 Northern Margin Wells All in shallow water; most nearshore
• 1 ‘Active’ Exploration Lease YPF E-1 Block, Colorado Basin
• Austral Basin Offshore Production
South Atlantic Source Rocks Argentina Basin Northern offshore
Source Rocks: • Pedro Luro Fm (Paleocene) – Type II, high TOC • Cenomanian-Turonian – OAE • Early Post-rift (Albian) – Fortin Fm • Upper Syn-rift – Hauterivian-Aptian • High TOC , OAE in Early K, Aptian proven in Namibia • Syn-rift Colorado & Salado Basins • Early Jurassic to Valanginian ) – Marine and lacustrine sources • Permian- oi and gas, marine and lacustrine
Reservoirs: • Oligo-Miocene Barranca Final Fm marine sandstones • Paleocene Elvira Fm sandstones • Upper Cretaceous Colorado Fm sandstones • Upper Cretaceous Fortin Fm sandstones • Lower Cretaceous Syn-rift sandstones and carbonates • Permian sandstones
Northern area prospectivity- HC expulsions
De-ghosted PSTM Pseudo Relief Play fairways
Salado Basin- Syn-rift , Post-rift & Pre-rift plays
Argentina Basin (North)- Post-rift Cretaceous Turbidite & Basin floor fan plays Horst & Tilted Fault Block plays Colorado Basin- Syn-rift, Post-rift and Pre-rift plays
Argentina Basin (South)- Post-rift Cretaceous Turbidite & Basin floor fan plays Austral and Malvinas Basins Austral-Malvinas
Source Rocks
• Early Cretaceous Lower Inoceramus Shale
• Late Jurassic (Syn-rift) Tobifera Fm
• Potential in Albian, Coniacian & Eocene marine shales and claystones
Reservoirs
• Lower Cretaceous/Upper Jurassic Springhill Fm channels, fluvial and Ciclon x-1 . estuarine bars, marine sandstones
Krill x-1 • Upper Cretaceous turbidite sandstones and carbonates
• Paleocene/Eocene turbidites
Vayssaire 2012 Austral-Malvinas Oil and Gas Shows
3,200 bopd 370 API from Springhill
380 API oil recovered from Springhill on RFT; gas shows Springhill tested 372 bopd 360 API, 2,120 MCFD and 608 bcd
48 bopd 230 API from Paleocene sandstone; Springhill sandstone absent but oil shows recorded in that interval
19 bopd 290 API oil from Margas Verdes; Springhill cores reportedly oil saturated but tested wet
IHS EDIN 7.3 Southern area prospectivity
PSDM Fast Track Play fairways
Synrift/Springhill & Upper Cretaceous Springhill play turbidite plays
Foreland Strat/structural plays
Foldbelt & Foreland fault plays Value Proposition
• Argentina is ready for business- world class acreage opening soon. 5-billion barrel opportunities
• New technology is finally being applied offshore. First regular grid of regional seismic using modern long streamer; PSTM and PSDM Broadband processing; Angle Stacks, Gathers, Grav/Mag
• Northern margin- Oil in turbidite, basin floor fan and drape anticline plays outboard; horst and tilted fault blocks plus stratigraphic traps inboard
• Southern margin- Underexplored basins with proven petroleum systems and shallow to moderate water depths. An undrilled foldbelt with analogous plays being assessed and developed nearby
Contact Information
Steve DeVito [email protected] +1 (281) 698 8825
Rodrigo Garcia Berro [email protected] +54 (911) 6648 9244