16 Interpretation of Transgressive Barrier-Beach, Shoreface, Lagoon, and Estuary Reservoirs – Use of Modern Analogues: Part 2 – Sand-Body Depositional Geometries 20 Remote Sensing for Geologists IV 26 Economics for Geologists – Part 6 31 GeoCanada 2010 Update

MARCH 2010 VOLUME 37, ISSUE 3 Canadian Publication Mail Contract – 40070050

RESERVOIR ISSUE 3 • MARCH 2010 1 Define Reservoir Parameters with Confidence

Looking to maximize opportunities in today’s volatile market?

Combine the power of PETRA® and IHS Critical Information including well and log data to define reservoir parameters and determine new opportunities faster and more cost effectively.

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©2009 IHS Inc. All rights reserved. Since 1927...

Define Reservoir MARCH 2010 – VOLUME 37, ISSUE 3 ARTICLES Parameters with Interpretation of Transgressive Barrier-Beach, Shoreface, Lagoon, and Estuary Reservoirs – Use of Modern Analogues: Part 2 – Sand-Body Depositional Geometries ...... 16 Confidence Remote Sensing for Geologists IV: Disasters, change detection, CSPG OFFICE #600, 640 - 8th Avenue SW Calgary, , T2P 1G7 and becoming RS literate ...... 20 Tel: 403-264-5610 Fax: 403-264-5898 Web: www.cspg.org Petroleum Economics for Geologists Part 6 – Royalties and Taxes ...... 26 Office hours: Monday to Friday, 8:30am to 4:00pm WIUGC 2010 ...... 30 Executive Director: Lis Bjeld Email: [email protected] GeoCanada 2010 Luncheon Speakers ...... 31 Advertising & Sponsorship Coordinator: Alyssa Middleton Email: [email protected] Communications Coordinator: Heather Tyminski GeoCanada 2010 Short Courses ...... 32 Email: [email protected] Member Services Coordinator: Kasandra Klein GeoCanada 2010 Field Trips ...... 34 Email: [email protected] Registration Coordinator: Dayna Rhoads Earth Science for Society at GeoCanada 2010 ...... 35 Email: [email protected] Convention Contacts Convocation Address ...... 36 Convention Manager: Shauna Carson Email: [email protected] Convention Coordinator: Tanya Santry DEPARTMENTS Email: [email protected] Executive Comment ...... 5 EDITORS/AUTHORS Please submit RESERVOIR articles to the CSPG office. Submission deadline is the 23rd day of the month, two months prior Technical Luncheons ...... 8 to issue date. (e.g., January 23 for the March issue). Division Talks ...... 12 To publish an article, the CSPG requires digital copies of the document. Text should be in Microsoft Word format and illustrations should be in TIFF Rock Shop ...... 15, 18 format at 300 dpi., at final size. For additional information on manuscript preparation, refer to the Guidelines for Authors published in the CSPG Bulletin or contact the editor.

Technical Editors Ben McKenzie Colin Yeo (Assistant Tech. Editor) Tarheel Exploration EnCana Corporation Tel: 403-277-4496 Tel: 403-645-7724 Email: [email protected] Email: [email protected]

Coordinating Editor Heather Tyminski, Comunications Coordinator, CSPG Tel: 403-513-1227, Email: [email protected]

ADVERTISING Looking to maximize opportunities in today’s volatile market? Advertising inquiries should be directed to Alyssa Middleton, Tel: 403-513-1233, email: [email protected]. The deadline to reserve advertising space is the 23rd day of the month, two months Combine the power of PETRA® and IHS Critical Information including well and prior to issue date. log data to define reservoir parameters and determine new opportunities faster and The RESERVOIR is published 11 times per year by the Canadian Society of Petroleum Geologists. This includes a combined issue for the months of July and August. The purpose of the RESERVOIR is to publicize the Society’s many activities and to promote the geosciences. We look for both technical and non-technical material to more cost effectively. publish. Additional information on the RESERVOIR’s submission guidelines can be found at http://www.cspg. org/publications/pubs-reservoir-submissions.cfm. The contents of this publication may not be reproduced either in part or in full without the consent of the Let IHS information solutions improve your decision-making and reduce your risk. publisher. Additional copies of the RESERVOIR are available at the CSPG office for $6.50 each. No official endorsement or sponsorship by the CSPG is implied for any advertisement, insert, or article that appears in the Reservoir unless otherwise noted. All submitted materials are reviewed by the editor. We reserve the right to edit all submissions, including letters to the Editor. Submissions must include your name, address, and membership number (if applicable). The material contained in this publication is intended for informational use only. For more information on PETRA visit us at While reasonable care has been taken, authors and the CSPG make no guarantees that any of the equations, schematics, or devices discussed will perform as expected or that they will give the desired results. Some www.ihs.com/reservoirsolutions information contained herein may be inaccurate or may vary from standard measurements. FRONT COVER Greely Fiord, Ellesmere Island, Nunavut. Interbedded marine shelf , The CSPG expressly disclaims any and all liability for the acts, omissions, or conduct of any third-party user of information contained in this publication. Under no circumstances shall the CSPG and its officers, directors, siltstone, and sandstone of the Blind Fiord Formation, Greely Fiord, northern employees, and agents be liable for any injury, loss, damage, or expense arising in any manner whatsoever Ellesmere Island. A major sequence boundary occurs at the top of the sandstone from the acts, omissions, or conduct of any third-party user. ©2009 IHS Inc. All rights reserved. unit in the middle of the cliff. Photo by Ashton Embry. Design and Layout by Sundog Printing. Printed in Canada by Sundog Printing. RESERVOIR ISSUE 3 • MARCH 2010 3 Think outside the computer screen.

Choose from over 50 exciting field seminars, short courses and online programs all designed with the goal of helping you explore and better understand the science of this industry. Please see the AAPG website for complete descriptions and registration information. Below are the highlights of courses coming up very soon. Make your plans now before seats get filled!

Short Courses: Field Seminars: Deep-Water Siliciclastic Reservoirs, California MAY Essentials of Subsurface Mapping APRIL Location: Begins in Palo Alto and ends at the Location: Houston, TX airport in San Francisco, California 11-13 Instructor: Richard Banks 17-22 Leaders: Stephan Graham and Donald R. Lowe Reservoir Engineering for Clastic Reservoir Facies and Sequence Stratigraphic Analysis of MAY Petroleum Geologists APRIL Alluvial-Plain, Shoreface, Deltaic, and Shelf Depositional Systems Location: Houston, TX Location: Begins and ends in Salt Lake City, Utah 17-18 Instructor: Richard G. Green 24-30 Leader: Thomas A. Ryer Fundamentals of MAY Petroleum Geology MAY Play Concepts and Controls on Porosity in Carbonate Reservoir Analogs Location: Houston, TX Location: Almeria Region, SE Spain, begins and ends in Las Negras, Spain 19-21 Instructor: Stephen L Bend 16-21 Leaders: Evan K. Franseen, Robert H. Goldstein, Mateu Esteban

Exploring for Bypassed Pay in Complex Carbonate Reservoirs: The Role of Fracturing, Facies and Tectonics JUNE Old Wells Using DST Data MAY 30 Location: Begins in Naples and ends at Rome International Airport (Italy) Location: Wichita, KS -JUNE 5 Leaders: Raffaele Di Cuia, Davide Casabianca, Claudio Turrini 7-9 Instructor: Hugh Reid The Petroleum Industry: Folding, Thrusting and Syntectonic Sedimentation: JUNE Upstream & Downstream JUNE Perspectives from Classic Localities of the Central Pyrenees Location: Dallas, TX Location: Spain 9-10 Instructor: Stephen L. Bend 7-11 Leaders: Antonio Teixell, Antonio Barnolas

E-Symposia: Online Courses: Biomass Energy Basics – Seismic Stratigraphy and Seismic Geomorphology: Applications LAUNCH DATE APR and Workflows for Lithology Prediction Using 3D Seismic Data A Renewable Energy Time: 2:00 p.m. for the live event APR 1 Certificate Course 29 Instructor: Henry Posamentier Instructor: Theresa Coffman

Last Chance: New Date! Field Safety Course for Field Trip Leaders Practical Salt Tectonics MARCH Location: Houston, Texas APRIL Location: New Orleans, with the AAPG Convention! 25-26 Instructors: Kevin Bohacs, Stephen Oliveri, Robert Clarke 9-11 Instructor: Mark Rowan

Assessement of Unconventional Shale Basic Well Log Analysis APRIL Resources Using Geochemistry APRIL Location: Austin, Texas Location: New Orleans, with the AAPG Convention! Instructors: George Asquith and Dan Krygowski 10-11 Instructor: Dan Jarvie 27-30

More Science Than You Can Shake A Pick At.

For more information on any AAPG Education programs, call 918-560-2650 or toll-free 1-888-338-3387, or visit www.aapg.org/education. Since 1927... EXECUTIVE COMMENT A message from the CSPG Program Director, Scott Leroux

CSPG Programs CSPG moving forward EXECUTIVE Moving into my second year on the CSPG role will oversee the divisions and help President Executive I am pleased to be working promote technical knowledge sharing and John Varsek • Cenovus Energy [email protected] Tel: (403) 645-5417 with an excellent, energetic new slate of development of new field seminars and 2010 volunteers including Brett Norris, help streamline the Divisions. With the Vice President the incoming Assistant Program Director. I assistance of the new Volunteer Management Kirk Osadetz • Geological Survey of Canada, Calgary would like to take this opportunity to thank System Chair, the coordinator will assist in [email protected] Tel: (403) 292-7022 Randy Rice for his generous contribution to filling vacant positions, consolidate inactive the Society and for getting me up to speed divisions, and help the individual Division Past President in this Program Director role. chairs interact with each other and the Graeme Bloy • Canada Capital Energy Corporation [email protected] Tel: (403) 975-5784 Executive. We are also looking for ways to Much has already been said about the encourage some of the Divisions to take on Finance Director challenges the CSPG has faced in this relevant and topics that could be Greg Lynch • Shell Canada Ltd. economic downturn. Several of the most parlayed into future convention themes. A [email protected] Tel: (403) 691-3111 recent executive comments have addressed natural (albeit hopeful) progression could the fiscal challenges and how our Society lead to future special publications, field Assistant Finance Director is managing through the uncertainty. We seminars, and even a Gussow conference or Darren Aldridge • Baker Hughes are seeing close to a 30% decrease in many special core conference. [email protected] Tel: (403) 537-3505 of the metrics (membership, convention Program Director profits, sponsorship, etc.), but these are Technical Luncheons Scott Leroux • EnCana Corporation offset by savings due to efficiencies and The Technical Luncheon Committee [email protected] Tel: (403) 645-2000 associated cost reductions. continues to run an impressive program and the attendance remains strong through ASSISTANT Program Director Part of our responsibility as a society is the downturn. We have had another Brett Norris • TransGlobe Energy Corp. to promote and advance the science of amazing lineup of talks on subjects such as [email protected] Tel: (403) 264-9896 petroleum geology and foster professional Geomodeling and Sedimentology, to more SERVICE DIRECTOR development of the members. Thankfully, diverse topics such as Avalanches, Mars, and Ayaz Gulamhussein • NuVista Energy Ltd. the desire to receive training and develop Meteorite impacts. The speaker lineup has [email protected] Tel: (403) 538-8510 professionally remains as strong as ever. As been superb again this past year and cost the Program Director, my job is to link the savings have been realized by the CSPG staff Assistant Service Director various technical committees and programs through on-line ticketing and operating the Richard Thom • Core Laboratories Canada Ltd. with the CSPG Executive and to foster the equipment for our own webcasts. The 2010 [email protected] Tel: (403) 250-4052 growth and improvement in each. Listed program again promises to be a diverse and Outreach Director below are some of the 2009 highlights and relevant selection of top quality speakers Mike DesRoches • Talisman Energy Inc. technical revitalization initiatives planned and subjects. [email protected] Tel: (403) 513-6843 for 2010. Conventions and Conferences ASSISTANT Outreach Director Technical Divisions This year’s GeoCanada 2010 is a once-in-a- Steve Dryer • Consultant The CSPG currently has 12 Technical decade convention that brings together the [email protected] Tel: (403) 969-2292 Divisions. The divisions represent a broad entire spectrum of Earth Science professions, Communications Director spectrum of geological interest and have including the traditional participants (CSPG, Stephen Hubbard • University of Calgary traditionally offered lunchtime and evening CSEG, and CWLS). The short course and [email protected] Tel: (403) 220-6236 talks that are well organized and attended. field seminar component can now be viewed One specific focus this year will be to use through the convention website: http:// ASSISTANT Communications Director the Divisions as a platform to feed into some www.geocanada2010.ca/. The convention is Jim Barclay • ConocoPhillips of our other programs in an attempt to slated to offer a record 35 short courses and [email protected] Tel: (403) 532-3889 bolster the technical content. The Executive 21 field seminars this year. This expanded Executive Director is currently recruiting for a newly created program managed by a dedicated volunteer Lis Bjeld • CSPG position called the “Technical Division committee promises to make GeoCanada [email protected] Tel: (403) 513-1228 Chairs Coordinator.” This new leadership (Continued on page 7...)

RESERVOIR ISSUE 3 • MARCH 2010 5 APEGGA 20 ANNUAL GENERAL MEETING 10 AND CONFERENCE ENGINEERING AND GEOSCIENCE PROFESSIONALS ENGAGED. DIVERSE. INSPIRED. APRIL 15 - 17, 2010

Information: Shaw Conference 780-426-3990 • 800-661-7020 Centre, Edmonton www.apegga.org

APEGGA_Conference.indd 1 1/12/10 1:04:31 PM Since 1927... (...Continued from page 5) mentioned, this group services all of the 2010 a huge technical success and Canada’s continuing education courses at both the greatest conference on Earth Sciences. annual (Joint) convention and fall Education Week. To compliment this year’s AAPG The 2009 Gussow Conference: Engineering (ICE) conference running September 12-15, Sustainable Oil Sands Development, held 2010, CSPG is offering its Education Week this past October was not only popular, short courses as well as its own full slate but turned a profit. This was the fifth of fall field seminars and a core conference. Gussow Conference, a topic-specific mini- This means 2010 provides one of the most conference. With the expanded GeoCanada diversified training opportunities CSPG has conference this spring and the AAPG ever offered. International Conference & Exhibition (ICE) both running in Calgary this fall 2010, it was In closing, I would like to thank all of the decided that we would be taking a break volunteers under the Programs portfolio from the Gussow Conference this year. for their hard work and dedication. Without CORPORATE you, CSPG’s membership would not enjoy all MEMBERS Continuing Education of the great technical programs that are the The Continuing Education (Con-Ed) backbone of CSPG. As we move forward as Committee is responsible for another superbly a Society, we are revitalizing the technical run flagship CSPG program. Outgoing chair program, creating new program synergies Apache Canada Ltd. and 2009 Tracks Award winner Travis Hobbs and defining new volunteer roles that offer and the ever-growing volunteer committee technical and leadership development. Please Baker Atlas (of approximately 12 members) have done consider the benefits that you have received an exemplary job building the Continuing through your membership in CSPG and Canadian Natural Resources Education program into a smoothly run and promote the value of what you have learned. profitable endeavor. The Committee has Let your employer know that you have Limited assembled a line-up of world-class affordable gained knowledge from a course or talk. If a short courses and field seminars that serve CSPG paper has helped you with an idea or Casey & Associates the membership well. This year the chair a field seminar has aided your interpretation, position duties will be split between Carrie let it be known. The CSPG exists for its ConocoPhillips Canada Limited Jeanes (Short Courses), and a soon-to-be- members. We need your continued support announced Field Seminar Chair. As previously in order to move forward! Fugro Airborne Surveys Corp. geoLOGIC systems ltd.

IHS

Imperial Oil Resources

MJ Systems

Murphy Oil Company

Nexen Inc.

Petrocraft Products Ltd

Pulspetrol

Provident Energy Ltd.

Shell Canada Limited

Sproule Associates Limited

Suncor Energy Inc.

Total E&P Canada Limited

Tourmaline Oil Corp.

AS OF JANUARY 29, 2010

RESERVOIR ISSUE 3 • MARCH 2010 7 TECHNICAL LUNCHEONS MARCH Luncheon Webcasts sponsored by

recently felt compelled to warn letter-writers century greenhouse gas composition of the The disinterested to tone down the heated rhetoric), and atmosphere and global mean , polarized to the extent that there is not much (2) greenhouse warming theory, and its observer’s dialogue between factions other than insults incorporation into general circulation models, on websites. that can explain 20th-century warming, (3) 50-minute guide declining outgoing (space-bound) radiation at To some extent each faction mounts its the wavelength bands at which greenhouse to the global own conferences and publishes peer-reviewed gases absorb energy, (4) increasing downward research in its own friendly journals, and longwave radiation as CO2 levels increase, warming debate each faction has spokes-heroes who cherry- suggesting increasing greenhouse effect (4) pick evidence or exaggerate to support a observed patterns of surface and atmospheric AUTHOR point of view. The debate is complicated warming that are predicted by greenhouse Jerry Osborn by fusion of several questions that are not warming theory, and (5) suggestions that University of Calgary, Dept. of Geoscience always separated by debaters (Is it warming? recent/current warming is anomalous, as Is warming anthropogenic? If so, what should evidence. The latter point was the foundation 11:30 am, Tuesday, March 9, 2010 the social response be? If climate is always of the hockey-stick-curve controversy a few Telus Convention Centre, Calgary, Alberta changing naturally anyway should we attempt years ago, one of the more colourful episodes to mitigate anthropogenic climate change? of the global warming debate. Please note: Should we worry about potentially calamitous The cut-off date for ticket sales is ‘tipping points’ for which there is some, but Skeptics of anthropogenic warming make 1:00 pm, Thursday, March 4, 2010. not robust, evidence?). Left-wing and right- mainly negative arguments, seeking to find fault CSPG Member Ticket Price: $38.00 + GST. wing political allies on the two sides of the in the concepts that it’s getting warmer and/ Non-Member Ticket Price: $45.00 + GST. debate use the issue as a prop to promote or that warming is significantly anthropogenic. global governance/justice and free enterprise, The most-promoted argument currently is Each CSPG Technical Luncheon is 1 APEGGA respectively. Scientific and social issues are that global warming stopped in 1998 or PDH credit. Tickets may be purchased mixed to the degree that interpretations 2005 (depending on the data set). Skeptics online at http://www.cspg.org/events/events- of science are influenced by social/political most often cite solar forcing, either directly luncheons.cfm. philosophy. through irradiance variations, or indirectly via cosmic-ray modulation of ionization in the The great majority of climate scientists are The result is wildly varying views on scientific atmosphere, which influences cloud formation, convinced that warming over the last few issues, defensiveness and entrenchment of as the cause of 20th-century warming. Most decades is largely due to anthropogenic scientists, diversions over hockey sticks and solar and atmospheric physicists agree that effects, and many think that serious, oil-company funding, significant filtering of there is some solar influence on climate, and perhaps catastrophic, climatically induced information in electronic and print media, incorporate it in general circulation models, problems await humanity in this century. and immense public confusion, as each side but see little evidence that either the direct or But a small minority of actively publishing belittles the other in an attempt to sway the indirect hypothesis can explain post-1975 climate scientists, a considerable number of public opinion. The scientific debate has largely warming. scientists in other fields, many politicians, as been consumed by the political debate, as well as some significant proportion of the illustrated by the recent ‘climate-gate’ e-mail This brief overview of the politics and science general public, remain skeptical, and debate hacking incident, whose political significance involved in the debate over greenhouse-gas- continues in a variety of venues that include far outweighs its scientific significance. generated warming will be delivered from a scientific journals, the web, pop print media, point of view that is disinterested politically television, think tanks, houses of governments, Given the entanglement of politics in the and without vested interests scientifically. courtrooms, schools, churches, and in the case science, evaluation of the latter is best of Alberta, the PEGG (APEGGA’s newspaper). considered totally divorced from social issues. BIOGRAPHY The debate is fierce, bitter, and often personal Champions of anthropogenic warming cite Jerry Osborn is a Professor of Geology in the (in the PEGG the President of APEGGA (1) general correspondence between 20th- Geoscience Department at the University of Calgary. His interests are surficial and Quaternary Improve your and Decision Making geology, with forays into geomorphology and engineering geology, and, on the side, interactions Join our three-day executive seminar between science and society. His main line of MANAGING RISKS & research is Holocene climate change using glacial- to improve your risk management and history and lake-sediment proxies. Consulting STRATEGIC DECISIONS strategic decision making skills. For activities have included aggregate searches, in Petroleum Exploration & Production over 20 years, this seminar has provided mass-movement analysis, flood participants with a “hands-on” approach analysis, and studies of river migration as applied APRIL 5-7, 2010 to boundary-law litigation. Included in the to the most modern techniques in risk MICHAEL R. WALLS, PH.D. – INSTRUCTOR thousands of students that have passed through COLORADO SCHOOL OF MINES management and strategic decision his introductory geology courses at the University GOLDEN, COLORADO making for all aspects of petroleum of Calgary are many petroleum geologists working exploration and production. in Calgary. When time allows he searches for the perfect pumpkin pie recipe and teaches his kids http://outreach.mines.edu/cont_ed/mrsd.htm the value of listening to Bob Dylan.

8 RESERVOIR ISSUE 3 • MARCH 2010 TECHNICAL LUNCHEONS MARCH Luncheon Webcasts sponsored by

At Saleski, Osum has identified 21 sections in geological investigations related to thermal How an within its lands in Township 85 Range 18W4 development of the Cold Lake Taiga Project and that would make an ideal area for commercial the Wabasca area bitumen-saturated carbonates. underground development using an underground well Prior to this she was the subsurface team lead for recovery system. In this area, the Grosmont the thermal development of the approach to C and D reservoirs have predictable and Heavy Oil In-situ project with Shell Canada. easily correlatable associations of reservoir commercial facies and an aggregate average net pay Alan Abrams is the Vice President of Under- bitumen of 34 meters (>12% porosity, <50% Sw). ground Operations at Osum Oilsands Corp., Importantly, the tunneling medium within the where he is responsible for providing overall development of of the Grosmont B appears to be direction for the application of the ‘Underground’ continuous and unkarsted, and the shaley non- technique for in situ development, including both the Grosmont reservoir base of the Grosmont C interval technology development and target assessment. appears to be capable of acting as a basal He has over 30 years experience in underground Formation could seal to bitumen development in the reservoir tunneling and shaft-sinking construction including above. The massive bitumen deposit, the a wide array of projects in the heavy civil and maximize predictable nature of the reservoir units, and mining industries. profitability and the tunneling media in this area combine to make this an ideal area with which to plan Peter Putnam is a geologist with thirty years minimize this development concept. of global petroleum experience who has had substantial exposure to all aspects of the thermal environmental The proposed underground well recovery recovery business. He currently holds the position system utilizes concepts which were developed of Senior Vice President, Geoscience for Osum. footprint within the McMurray Formation oilsands at He is also the non-executive chairman of Petrel the Underground Test Facility (UTF) near Ft. Robertson Consulting Ltd and the chairman SPEAKERS McMurray. The transformation of the proven and managing director of Central European Jen Russel-Houston recovery method at the UTF into a commercial Petroleum Ltd. Putnam is a past-president of Osum Oil Sands Corp. production platform offers a viable, cost the CSPG. effective alternative to conventional surface- Alan Abrams based thermal techniques and it also has Osum Oil Sands Corp. significant environmental benefits. By placing the network of roads, pipelines, and wellpads NEW SHORTER CO-AUTHOR below ground in the tunnel complex, the DST COURSE Peter Putnam surface footprint is reduced by an estimated (3 1/2 days) Osum Oil Sands Corp. 86 percent as compared to conventional in situ development. The ability to operate at fROm HUgH REiD 11:30 am, Tuesday, March 23, 2010 minimal formation as demonstrated April 6-9 And Oct. 18-21, 2010 Telus Convention Centre, Calgary, Alberta at the UTF, combined with a centralized pumping system versus hundreds of in-line, Please note: The cut-off date for ticket downhole pumps, provides for potential Other Courses Below: sales is 1:00 pm, Thursday, March 18, 2010. lower fuel usage, corresponding greenhouse CSPG Member Ticket Price: $38.00 + GST. gas emissions, and considerable decreased 16 WAYS TO IDENTIFY Non-Member Ticket Price: $45.00 + GST. operating costs. Sustaining capital costs are BYPASSED PAY FROM estimated to be 25% less due to reduced DST DATA Each CSPG Technical Luncheon is 1 APEGGA PDH drilling costs, centralized pumping, and (More advanced, for those credit. Tickets may be purchased online at http:// aggregate production. Additionally, the ability www.cspg.org/events/events-luncheons.cfm. to operate year-round in a 15º C ambient “comfortable” with DST charts) climate eliminates many cold-weather- April 21-22, 2010 (2 days) In north- near the town of related issues and offers the potential for Wabiskaw (the ‘Saleski’ region), substantial increased productivity. Finally, the wellpairs bitumen resources are hosted within the do not penetrate the overlying cap rock HYDRODYNAMICS . The interval or near-surface aquifers. In light of today’s SEMINAR of interest is formed of four regionally challenges to develop oil sands resources (Oil & Gas Finding Aspects) consistent parasequences of carbonate in a greener and more efficient manner, the April 26-29, 2010 (4 days) platform origin; the upper two (Grosmont environmental and operational advantages C, D) form the major bitumen reservoirs offered by the underground well recovery and the basal two (Grosmont A, B) form system create the potential to change the in-house courses available. potential tunneling media. This presentation way we look at bitumen extraction. For course outline visit: describes a commercial development concept www.hughwreid.com that places the wellheads within a tunnel BIOGRAPHY system located in the Grosmont B limestone Jen Russel-Houston is the Geoscience Manager at 262-1261 below the Grosmont C and D reservoirs. Osum Oilsands Corp., where she leads the team

RESERVOIR ISSUE 3 • MARCH 2010 9 TECHNICAL LUNCHEONS APRIL Luncheon Webcasts sponsored by

Please note: The cut-off date for ticket as bacterial disease of rocks, we suggest is The biogenic sales is 1:00 pm, Monday, April 12, 2010. the primary driving for dissolution of CSPG Member Ticket Price: $38.00 + GST. in the Bahamas. hypothesis: Non-Member Ticket Price: $45.00 + GST. Biography microbial acids Each CSPG Technical Luncheon is 1 APEGGA Stephanie Jutta Schwabe received her B.A. in PDH credit. Tickets may be purchased Geology from the College of Charleston in 1990, and gas as an online at https://www.cspg.org/eSeries/source/ her M.Sc. from Mississippi State University in Events/index.cfm. 1992, and her Ph.D. in Biogeochemistry from the explanation for University of Bristol, UK in 1999. She also earned The current explanation for the formation of a J.D. with focus in International Environmental the dissolution caves in the Bahamas is that mixing of CaCO3- Law and Maritime Law from the University of supersaturated seawater with CaCO3-saturated Queensland, Australia in 2003. She was admitted and forming of groundwater creates under-saturated mixed to the Queensland Bar, both as a Barrister and water that is capable of dissolving the limestone Mediator the same year. She is also a consultant pores and caves to produce large voids. We now know that the on environmental issues and modern day carbonate mixing of these bodies of water cannot dissolve rocks, primarily working with Bahamians who are in limestone limestone unless there is a continuous source fighting to save their environment. of acids to overcome the buffering effects SPEAKER of the limestone. Similarly, rainwater that is A native of Charleston South Carolina, Dr. Schwabe Stephanie Schwabe slightly acidic via incorporation of atmospheric has been diving for over 25 years in the Bahamas,

Department of Earth and and soil CO2 cannot remain acidic during its and is the founder and director of the Rob Palmer Environmental Sciences, passage through the vadose zone, a time frame Blue Holes Foundation, named after her husband, University of Kentucky that may be as long as two months. following his death. She became a celebrity in the dangerous world of , fighting powerful 11:30 am, Thursday, April 15, 2010 Interstitial bacteria are the obvious sources interests to protect the “blue holes” of the Bahamas Telus Convention Centre of the acids needed to initiate and maintain and, as a result, her adventurous stories have been Calgary, Alberta acidic meteoric and ground-water conditions. featured in a book titled, “Women of Discovery: We have shown that sterile-caught rainwater A Celebration of Intrepid Women Who Explored on San Salvador Island contains 103 bacteria/ the World”; “The Third Man Factor,” which New Issue of Bulletin of ml before contact with the ground, has a pH describes near death experiences of explorers; Canadian Petroleum Geology of 5.6, and is buffered within three minutes “Champions for Change, Athletes Making a World Visit the Members Only section of CSPG’s following contact with limestone. The pH of Difference,” a UN publication; and a soon-to- website (www.cspg.org) to view volume 57, number 3 of the Bulletin of Canadian Petroleum of dripstone water, measured as it exits a be-released book titled, “Women under ,” Geology. CSPG members receive digital access stalactite, contained >104 bacteria colony- describing what women have to endure in the to current and archived issues of the Bulletin. forming-units (cfu)/ml and had a pH of 6.7. The mostly male-dominated world of diving. She has Interested in purchasing a hard-copy from CSPG’s pH of a small pool directly below the dripping just finished writing her own book titled; “Living in bookstore? Contact us at (403) 264-5610 for stalactite had a pH of 7.7. We hypothesize Darkness: A Woman’s scientific and exploratory more information. that the dissolution capacity of vadose water adventures into the Black and Blue Holes of the Volume 57 Number 3 Contents is controlled by the assimilation of bacterially Bahamas,” published by Greyhound Press. Depositional facies framework, evolution, and generated acids, produced by bacteria living in reservoir architecture of the Upper Devonian Jean Marie Member (Redknife Formation) in the July the pores of the host rock. Abundant bacteria Her work and adventures have been recorded by Lake area of northeastern , by J. have been documented in the vadose zone Discovery, Discovery Animal Planet, German and Wendte, D. Sargent, A. Byrnes, and I. Al-Aasm. (>106 cfu), in phreatic water (>106), and French National Television, World of Wonder, Basin-scale distribution of authigenic clay minerals in the rock walls of caves (>106). In an air- Beyond (an Australian Production company), in the Late Maastrichtian–Early Paleocene fluvial filled cave, 2.2 g CO2 /kg/day was measured BBC on a series called ‘Oceans,’ and several strata of the Alberta foredeep: implications for coming out of the cave ceiling, and 770ppm other international and national TV programs. burial depth, by A. Khidir and O. Catuneanu. CO2 was generated by a 0.5 g sample of cave She recently finished working with NHK Japan Fault/fracture controlled hydrothermal dolo- wall rock held in a sealed container. These Television generating a science film project mitization and associated diagenesis of the same gases generated by bacteria are also on the geological story of how the islands and Upper Devonian Jean Marie Member (Redknife Formation) in the July Lake area of northeastern forming pores as large as two centimetres underwater caves of the Bahamas formed. British Columbia, by J. Wendte, I. Al-Aasm, G. Chi, in unconsolidated sediments. The bacterial and D. Sargent. mucilage glues the carbonate grains together She taught Geology, Environmental Geology, and An allostratigraphic framework for a and as microbial gases accumulate within this Environmental Science and Policy at the College retrogradational delta complex: the uppermost mucilage, it expanses generating large pores of Charleston for five years. In 2007 she went to Dunvegan Formation () in subsurface within the sediment. the University of San Diego where she taught and outcrop, Alberta and British Columbia, by M.J. Hay, and A.G. Plint. Geological , Environmental Geology, Although this research is considered novel, we History of Climate Change, and Environmental Petroleum source rock potential of Whitehorse trough: a frontier basin in south-central Yukon, have discovered that as early as 1904, scientists Law and Policy at the School of Peace and Justice, by G.W. Lowey, D.G.F. Long, M.G. Fowler, A.R. had discovered that interstitial bacteria were and has recently began teaching at the University Sweet, and M.J. Orchard. responsible for the disintegration of building of Kentucky in the Department of Earth and stones in England. What they characterized Environmental Sciences.

10 RESERVOIR ISSUE 3 • MARCH 2010 TECHNICAL LUNCHEONS APRIL Luncheon Webcasts sponsored by

Biography Granite to grass Harris Cander works in BP America’s Exploration and Technology Group and has roots: focused the past few years on global and domestic exploration for unconventional understanding the resources. Since joining BP (Amoco) in 1991, Cander has worked in a variety of international geologic history of and domestic exploration, production, and unconventional commercial roles as well as carbon dioxide sequestration projects. resource basins Cander is the current co-chairman of the AAPG from bottom to top Unconventional Research Group and a past co- chairman of the AAPG Carbonates Research SPEAKER isotope data, pressure history, seismic, and Group. He has published on unconventional Harris Cander reservoir quality. Linkages will be made resources, overpressure and hydrocarbon BP America from microscopic scale observations to occurrence in offshore Trinidad, exploration in AAPG Distinguished Lecturer tectonic-scale processes. Examples will central Europe, and carbonate diagenesis. His be given from various North American talk on carbonate porosity evolution won the 11:30 am basins that illustrate how mega-scale award for best presentation at the 1992 SEPM Tuesday, April 27, 2010 features such as basement architecture and annual meeting. Calgary, TELUS Convention Centre Precambrian rift history have a first-order Calgary, Alberta and transcendent effect on the evolution Cander received his Ph.D. in Geology from the and occurrence of unconventional resource University of Texas at Austin in 1991 and MBA Please note: The cut-off date for ticket fairways, including a strong influence on from Rice University in 2002. He lives in West sales is 1:00 pm, April 22, 2010. CSPG petroleum generation and entrapment as University Place, Texas, with his wife, Chris, Member Ticket Price: $38.00 + GST. well as changes in reservoir rock during and children, Sasha and Joshua. Non-Member Ticket Price: $45.00 + GST. post-orogenic uplift.

Each CSPG Technical Luncheon is 1 APEGGA PDH credit. Tickets may be purchased online at https://www.cspg.org/eSeries/source/ Events/index.cfm.

The competition for unconventional resources in North America has resulted, in some cases, in acquisition of acreage prior to a thorough understanding of subsurface technical risks or identification of fairway boundaries and sweet spots. Indeed, the term “resource play” implies to some that subsurface risks are either minimized or irreducible. As well, the term “unconventional gas” connotes that little is to be gained from application of conventional principles of basin evolution and petroleum generation, migration, and entrapment. Under these circumstances, the value of regional geologic understanding of an entire basin prior to acreage capture can be overlooked and the focus turned Never underestimate the value of a good translator. to completions technology and post-well Nothing lost in translation. So much gained. Clear, precise geological analysis. definition for conventional and non-conventional reservoirs. This lecture will discuss the importance of understanding a basin from basement to surface – granite to grass roots – in the search for unconventional fairways. The www.oilsandsimaging.com 403.237.6686 lecture will include a holistic integration 100, 1100-8th Avenue SW, Calgary, AB T2P 3T8 of data and interpretations from basin modeling, petroleum migration modeling, gas

RESERVOIR ISSUE 3 • MARCH 2010 11

DIVISION TALKS INTERNATIONAL Division Sponsored by

Tectonics and hydrocarbon systems of the East Gobi Basin,

Mongolia

SPEAKER Five structural episodes are recognized: 1) Dr. Gary L. Prost pre- northeast-directed shortening ConocoPhillips Canada that formed the tectonic fabric; 2) Middle Jurassic to Early rifting along 12:00 Noon, Wednesday, March 10, 2010 northeast trends that formed the sub- Encana Amphitheatre, 2nd Floor basins of the East Gobi Basin; 3) late East End of the Calgary Tower Complex Early Cretaceous north-south shortening 1st Street and 9th Avenue S.E. and inversion on existing normal faults; Calgary, Alberta shortening caused left-lateral and reverse displacements on northeast-trending faults; Mapping and seismic data in the East Gobi 4) Middle Cretaceous uplift and erosion, basin reveal a structural and burial history followed by 5) east-west shortening and member of the Zuunbayan Formation should for basins adjacent to the Zuunbayan and right-lateral movement on northeast faults. be mature over large areas. Oil migrated Tsagaan Els oil fields. The tectonic framework Folds formed by inversion over Late Jurassic- from mature source areas toward several was combined with available well and outcrop Early Cretaceous normal faults. traps, including the Zuunbayan and Tsagaan data to model the timing and magnitude of Els fields. Modeling suggests that early oil was hydrocarbon generation. Modeling suggests that the bituminous generated in the Zuunbayan and Tsagaan Els area because of Cretaceous burial. Although generation began in Early Cretaceous, peak generation occurred between 100-90 Ma. DOUG CANT GEOLOGICAL CONSULTING Generation continued at a decreasing rate to SHORT COURSES 2010 the present. Kerogen maturity suggests that oil is the most likely product. Calculations of SUBSURFACE TECHNIQUES - LOG CORRELATIONS, CORES, hydrocarbon volumes generated indicate that SEQUENCE STRATIGRAPHY 22, 23 MARCH the Unegt basin may have generated up to 86 Well-log cross-sections-datums, correlations, and criteria for evaluating billion BOE. Marine, non-marine and channel correlations, with exercises How to log and interpret cores of major clastic facies of the Alberta Basin Integration of core interpretation and cross-sections BIOGRAPHY Subsurface sequence stratigraphy on logs and cores, minimal theory Gary Prost received his Ph.D. in Geology from REGISTRATION: $1375 the Colorado School of Mines and works for MANNVILLE EXPLORATION 19, 20, 21 APRIL ConocoPhillips Canada. He has held Team Sub-Cretaceous , overall internal stratigraphy Leader positions for both the Parsons Lake Gas Detailed sequence stratigraphy (), sedimentology, trap types, Development Project and recently the Arctic regional context, and play types of all subunits Exploration program. Over 28 years in the Well-log correlation and core examples of all major units energy industry, he has worked for the U.S. REGISTRATION: $1690 Geological Survey, Superior Oil, Amoco, and ROCK CREEK EXPLORATION 26 APRIL Gulf Canada and is author of Remote Sensing Stratigraphy, sedimentology, reservoir facies, paleostructures for Geologists and English–Spanish Glossary of Identifying the Rock Creek vs. Lower,Mannville Geoscience Terms. Internal correlation and reservoir mapping techniques, three types of traps REGISTRATION: $850 There is no charge for this attending this talk. BOOK CLIFFS FIELD SEMINAR - CLASTIC FACIES, SEQUENCE Please bring your lunch. The facilities for the STRATIGRAPHY,UTAH-for companies MAYor SEPT-OCT talk are provided complimentary of EnCana and World’s best outcrops of fluvial, deltaic, shoreline and shelf sands refreshments by Geochemtech Inc. For further Ferron Sand coal bed methane-facies and trapping Unconformities on reservoir scales-sequence stratigraphy unravelled information or if you would like to give a talk, Unconventional gas plays-non-marine to shallow marine examples please contact Bob Potter at (403) 863-9738 Alberta Basin analogs on each outcrop or [email protected], or Trent Rehill at REGISTRATION: $2600 (403) 606-6717 or [email protected]. Or visit For information/registration, call (403)949-3810, or [email protected] our new Facebook page (“CSPG International 10% discount-3or more registrations. Courses can be given in-house. Division”).

12 RESERVOIR ISSUE 3 • MARCH 2010 DIVISION TALKS STRUCTURAL Division Sponsored by

between faults can be used as a guide to define be from Paleozoic carbonate and Cretaceous Earthquakes the structural grain in the Alberta Plains. sandstone fields. distributed in A map-based approach and some Biography outstanding results will be outlined with Jean-Yves Chatellier obtained a Ph.D. in tectonics regular patterns three selected structural directions common from Paris VI University and worked around the world in Alberta, North 93, North 9 and North 72 for 18 years before setting down in Calgary. In the linked to degrees. The former corresponds to deep- past 20 years he has studied earthquake patterns seated faults commonly reactivated in left- in Greece, Romania, southeast Asia, Australasia, hydrocarbon lateral strike-slip, the other two directions and Venezuela. Since 2003 he has focused his are respectively the antithetic and synthetic attention to North America while working at Tecto sweet-spots in the Riedel shears. Examples of hydrocarbon Sedi Integrated. He is employed as an explorationist WCSB sweet spots linked to such earthquakes will by Talisman Energy in Calgary.

SPEAKER Jean-Yves Chatellier Talisman Energy

12:00 noon. Thursday, March 11, 2010 Room LPW-910, Livingston Place West 250 2nd St SW, Calgary, Alberta

Alternate fault activity can be demonstrated using 4-D views of earthquakes in areas where seismic events are frequent. Examples studied and published by the author includes the December 26, 2004 Aceh earthquake that led to the infamous tsunami and the New Madrid Seismic Zone in the central part of the USA known for a sudden 90 degree change in river pattern in 1812.

For this subsequent study, the available government data that was used encompasses 11,800 earthquakes in Western Canada, 1,024 of which are located in Alberta.

In British Columbia (BC) many major west- plunging and south-plunging seismic planes are easily identified. A 3-D earthquake analysis in Eastern BC shows a series of large seismic trends of similar strikes but variable dips, and with similar directions to hydrocarbon trends from the Alberta Foothills Service Excellence In Alberta, the number of earthquakes recorded does not allow identification of any CGGVeritas is committed to service excellence to help you make timely decisions. major plane encompassing many seismic events. Our highly experienced technical staff and a dedicated R&D team provide you with the However, 2-D and 3-D analyses covering acquisition, imaging and data library services you need to get optimum results. Alberta, BC, and part of Montana unraveled deep-seated patterns of direct interest to the Count on CGGVeritas to help you explore, develop and produce with confidence. oil industry: many anomalous producers are perfectly aligned with seismicity trends.

Thus, in Alberta a different series of rules and methods had to be applied to unravel patterns of interest. Rule 1: as earthquakes are Contact: commonly at the crossing between faults, each Tel: +1 403 205 6000 cggveritas.com earthquake site can be used to define two separate fault trends. Rule 2: regular spacing

RESERVOIR ISSUE 3 • MARCH 2010 13 DIVISION TALKS PALAEONTOLOGY Division Sponsored by

10:30 – 11:00 AM localities of northern Texas. There will PALEO 2010: Talk: Reconstruction of Scows Used be a brief introduction to the history of in Early Paleontological Research collecting in the of Texas. This Annual and a Commemorative Expedition will be followed by a survey of the most Planned for 2010 common fossils found. Small collections of Paleontology Speaker: Darren Tanke, Royal Tyrrell Museum fossils from a few localities will be provided for workshop participants to examine and Symposium 11:00 – 12:00 PM identify. Screenwashed sediments may also Talk: History, Mystery and Baywatch: be available for participants to examine for Paleo 2010 is presented in conjunction with Illustrating the Animals of the fossil remains. the CSPG Palaeontology Division, Alberta Burgess Shale Palaeontological Society, and Mount Royal Speaker: Marianne Collins, ArtoFact Jason Anderson is a paleontologist and University Earth Sciences Department Assistant Professor with the Faculty 12:00 – 1:30 PM of Veterinary Medicine at the University Lectures and Poster Displays: Lunch Break and Poster Session of Calgary. He is Associate Editor of the Saturday, March 13, 2010 Journal of Paleontology, co-editor of Major 8:30 AM – 5:00 PM 1:30 – 2:00 PM Transitions in Vertebrate Evolution (with Talk: Changing the Face of Hans-Dieter Sues), and a contributing Workshops: Tyrannosaur Rear Ends: Tail Muscle author to Prehistoric Life, The McGraw- Sunday March 14, 2010 Reconstruction in Theropod Dinosaurs Hill Yearbook of Science and Technology 9:00 AM – 4:00 PM Speaker: Scott Persons, University of Alberta 2009, and the McGraw-Hill Encyclopedia of Science, 10th Edition. He is the author of Mount Royal University 2:00 – 2:30 PM over 30 articles on the early evolution of 4825 Mount Royal Gate SW Talk: Komodo Dragons Paleozoic tetrapods. Calgary, Alberta Speaker: Eva Koppelhuis, University of Alberta 1:00 – 4:00 PM Saturday lecture events and poster viewings 2:30 – 3:00 PM Workshop: Make-a-Saurus are free and require no registration. Sunday Talk: My ankylosaur is a big dumb Presenter: Brian Cooley workshops do require registration and tank! Ankylosaur reconstructions in Cost: $25 per person (materials included) minor fee. the scientific literature and popular media Description: Using a variety of simple Lectures: Saturday, March 13 Speakers: Victoria Arbour, Mike Burns, materials and methods, participants will learn University of Alberta how to make their own dinosaur which they Held in Jenkins Theatre will be able to take home at the end of the 3:00 – 4:00 PM workshop. Children should wear clothes that Speakers confirmed so far include Talk: Dinosaurs in Science and Art they don’t mind getting dirty. (talk titles are tentative): Speaker: Philip Currie, University of Alberta Brian Cooley has been making sculptures 8:30 – 8:45 AM 4:00 – 4:15 PM: Coffee Break of dinosaurs for over twenty-five years. His Talk: Introduction sculptures may be seen in museums all over Speaker: APS President Wayne Braunberger 4:15 – 5:15 PM the world, most notably the Royal Tyrrell Talk: Dinosaurs of the Lost Museum of Palaeontology in Drumheller, 8:45 – 9:15 AM of Laramidia Alberta. He and his wife, Mary Ann Wilson, Talk: New Zealand’s Fossils: Remnants Speaker: Scott Sampson, Utah Museum of are co-authors of the children’s book Make- of a Lost Continent Natural History, University of Utah A-Saurus. Speaker: Craig Dylke Book signing afterwards To register for workshops contact Mona Marsovsky 9:15 – 9:45 AM (403) 547-0182 or [email protected]. Make Talk: Using High Dynamic Range WORKSHOPS: SUNDAY, MARCH 14 cheques payable to the Alberta Palaeontological Imaging in Vertebrate Paleontology Society, P.O. Box 35111, Sarcee Postal Outlet, Speakers: Danielle Fraser, Jordan Mallon, Room B213, Mount Royal University Calgary Alberta, Canada T3E 7C7. Deadline for Rob Furr, and Jessica M. Theodor, University workshop registration is March 1st, 2010. of Calgary 9:00 – 12:00 PM Workshop: Permian Vertebrate For information on the lecture program please 9:45 – 10:15 AM Fossils from North Central Texas contact Philip Benham (Philip.Benham@shell. Talk: The Art, Culture and Science of Presenter: Jason Anderson, University of Calgary com) or phone (403) 691-3343. Iniskims Cost: $15 per person Speaker: Lisa Bohach, FMA Heritage To inquire about submitting a poster please Description: This workshop will cover contact Wayne Braunberger (president@ 10:15 – 10:30 AM: Coffee Break the faunas typical for the classic Permian albertaplaeo.org) or phone (403) 278-5154.

14 RESERVOIR ISSUE 3 • MARCH 2010

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RESERVOIR ISSUE 3 • MARCH 2010 15 INTERPRETATION OF TRANSGRESSIVE BARRIER-BEACH, SHOREFACE, LAGOON AND ESTUARY RESERVOIRS – USE OF MODERN ANALOGUES: PART 2 – Sand-Body Depositional Geometries | by Gerry Reinson

IINTRODUCTION This article focuses on the types of sand bodies likely to be generated and preserved in the various transgressive scenarios discussed in Part 1. Facies sequences, which are important distinguishing characteristics in the rock record, are presented along with hypothetical log signatures, for each of the sub-environments and depositional settings. Variability of the facies successions is emphasized in order to demonstrate that the most constant characteristic of transgressive coastal deposits is in fact their variability.

The three-dimensional geometry of coastal sand bodies and their internal variations will reflect the geomorphological orientations and size spectrum illustrated in the examples given in Part 1. Lateral and vertical contacts (i.e., bounding surfaces) are extremely important both in defining a reservoir’s extent and understanding the controls on reservoir occurrence and quality. The complexities of the sand-body geometries are illustrated here through the use of modern examples from Prince Edward Island and New Brunswick.

FACIES SEQUENCES AND PRESERVATION POTENTIAL Figure 1 illustrates the “end-member” facies successions likely to be generated in transgressive coastal settings featuring mainland-attached beach segments; lagoonal estuaries; and large, open-ended or funnel-shaped, drowned river valleys. It is emphasized that the simplest succession in terms of lithofacies variation will be the mainland-attached deposit. This is the result of the presence of a limited number of sub-environments due to the minimal amount of available accommodation space. Conversely, the most complex lithofacies successions will be those generated in Figure 1. Generalized “end-member” facies successions characteristic of transgressive coastal settings – estuary settings, because of the complexities mainland-attached beach/shoreface, barrier-island/lagoonal, and open-ended estuary. of sub-environments due to much higher available accommodation space. Estuary The preservation potential of coastal facies the progradational (regressive) model. This facies sequences may vary substantially from under transgressive conditions has been a was due in large part to the popularity of the those illustrated in Figure 1, depending on hot topic over the past several decades as Galveston barrier-island stratigraphic model location within the estuary itself. This will sedimentological principles and facies analysis published by Bernard et al. (1962). This be demonstrated in the examples discussed evolved. Many of the early interpretations of paradigm generated much negativity toward later. ancient coastal deposits were dominated by the likelihood of transgressive sequences

16 RESERVOIR ISSUE 3 • MARCH 2010 being preserved in the rock record. For example, Klein (1974) considered that only a thin ‘ravinement’ lag deposit could be the only record of preservation of transgressive deposits in rock successions (an example of ravinement lag is shown in Figure 1).

In spite of the popular paradigm of that time, several early workers were on to the preservation potential of transgressive deposits (Fischer, 1961; Kraft, 1971), and suggested that the rate of relative sea- level rise should govern the amount of preservation. That is, slow but continuous sea-level rise will lead to shoreface retreat, whereas rapid relative rise should result in complete (Figure 2). It should be apparent that these early workers were basically alluding to rate of increase of accommodation space. As mentioned Figure 2. Diagram illustrating the importance of relative rate of sea-level rise in controlling the amount and previously, in areas adjacent to re-entrants type of deposit that will be preserved during transgression (from Reinson,1992, modified after Elliott, 1986 and Rampino and Sanders, 1980). such as bays and river mouths, the accommodation space is strongly affected by sea-level fluctuations.

It should be stressed that most of the supratidal and subaerial deposits that are seen forming at present, although demonstrating how these sedimentary processes operate, will not be preserved, but rather lost to erosion under continuing transgressive conditions. Landward re-working of such deposits will be most prevalent in river- or bay-mouth positions, where accommodation space is sufficient enough to receive and retain the sediments.

MAINLAND-ATTACHED BEACH/ SHOREFACE An example of a modern setting that could generate the mainland-attached shoreface successions depicted in Figures 1 is the beach segment depicted in Figure 3. Note the hypothetical cross-section situated normal to shore, and the various gamma ray log signatures that could occur across depositional strike. Such a transgressive deposit would usually display the following characteristics: 1) have a sharp-based bounding surface for most of its width, 2) consist of a single lithofacies (sand or gravel) and, 3) taper off to seaward as the deposit “shaled-out”. There are many examples of such linear, along-shore extensive, but laterally-narrow reservoirs in the Cardium, Viking, Ostracod, and Bluesky formations of the Western Canada Sedimentary Basin. In fact, these transgressive sharp-based shoreface (TSBS) deposits comprise one of the most prolific hydrocarbon-bearing reservoir types in the Lower Cretaceous and much of the Jurassic as well.

Figure 3. The modern setting at Brackley Beach, Prince Edward Island, illustrating the formation of a sharp- (Continued on page 18...) based, linear, shoreface/beach deposit.

RESERVOIR ISSUE 3 • MARCH 2010 17 (...Continued from page 17) LAGOONAL ESTUARIES The coastal segment encompassing the Tabusintac – Miramichi depositional system in northeast New Brunswick (Figure 4) includes an example of a lagoonal estuary and a large embayment- fronted river valley (Miramichi). For comparison, the surface area of Tabusintac Bay is 36 km2 compared to the 295 km2 area of Miramichi Bay inside the barrier islands. A drainage-basin area of 770 km2 for the Tabusintac system is rather minimal compared to the 14,000 km2 drainage-basin area of the Miramichi. As discussed in Part 1 of this series, such differences in drainage-basin size alone, dramatically control the large differences in sand-body geometry and scale, between the two estuary systems.

In the Tabusintac scenario one would expect to find a complex sediment body, generally 5 to 10 metres thick, orientated oblique to sub-parallel to depositional strike (Figure 5). Lithofacies would tend to vary, as would reservoir grade, from cleaner sand or gravelly sand seaward, to muddier sand of lesser reservoir quality, in a landward direction. Thick, high-grade, reservoir channel-fill deposits could be expected to be present, encased within the ‘muddier’ lagoonal facies. The facies successions would vary significantly over short distances as illustrated by the hypothetical gamma-ray log profiles in Figure 5.

DROWNED RIVER-VALLEY ESTUARY The large Miramichi Estuary is similar in geomorphology and depositional aspect to many high-microtidal to low-macrotidal estuaries occurring worldwide, including Delaware Bay, Chesapeake Bay, James River estuary, and Severn estuary, to name a few. The sediment distribution in the Miramichi consists of a 10 to 20 metre-thick, lobate to semi-circular, marine-derived, tidal-delta/shoreface sand and gravel deposit situated seaward of a central mud basin(Figure 6). In this scenario, the barrier islands would be totally removed during transgressive erosion, and much of the wide bay mouth would be filled with this reworked sand, which would onlap the bay muds. Facies successions would vary substantially depending on location within the system, as indicated by the hypothetical gamma-ray log signatures (Figure 6). Note that all types of log signatures could be present in such a system from bell-shaped to funnel-shaped to blocky and composite - thus a specific log signature should not be used exclusively as a definitive tool for interpreting estuaries, or any environment for Figure 4: Satellite image of the northeast New Brunswick coast showing the large Miramichi estuary, and the lagoonal estuaries, Tabusintac and Tracadie that matter. (Source: Department of Natural Resources Canada).

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18 RESERVOIR ISSUE 3 • MARCH 2010 The three depositional settings, Brackley Beach, Tabusintac Estuary, and Miramichi Estuary, clearly exhibit a divergent range of sand bodies in terms of scale, orientation, lithofacies complexities, and geometries. Accordingly, under transgressive conditions the resultant reservoir bodies will display these very divergent characteristics. The modern examples discussed here are not meant to be definitive, but rather to stress that it is very tenuous to “jump” on one model, “pigeon-hole” a specific log signature, or rely on “trendology” mapping, to interpret transgressive coastal sand bodies in the subsurface rock record.

Part 3 of this series of articles will deal with the aspects of subsurface mapping of such sand bodies, with respect both to recognizing, and predicting, their depositional trends. Figure 5: Sediment distribution within the Tabusintac lagoonal estuary system, northeast New Brunswick. REFERENCES Hypothetical gamma-ray profiles are depicted to illustrate the variability of lithofacies successions in close Bernard, H.A., LeBlanc, R.J. and Major, C.F. proximity. 1962. Recent and Pleistocene Geology of southeast Texas, In: Geology of the Gulf Coast and Central Texas and Guidebook of Excursions. Houston Geological Society and Geological Society of America annual meeting, 1962, Houston, Texas, p. 175-205.

Elliott, T. 1986. Clastic shorelines, In: Sedimentary Environments and Facies. H.G. Reading, (ed.). Oxford, Blackwell Scientific Publications, p. 143-177.

Fischer, A.G. 1961. Stratigraphic record of transgressing seas in light of sedimentation on Atlantic coast of New Jersey. American Association of Petroleum Geologists, Bulletin, v. 45, p. 1656-1666.

Klein, G. deV. 1974. Estimating water depths from analysis of barrier-island and deltaic sedimentary sequences. Geology, v. 2, p. 409- 412.

Kraft, J.C. 1971. Sedimentary facies patterns and geologic history of a Holocene marine transgression. Geological Society of America, Bulletin, v. 82, p. 2131-2158.

Rampino, M.R. and Sanders, J.E. 1980. Holocene transgression in south-central Long Island, New York. Journal of Sedimentary Petrology, v. 50, p. 1063-1080.

Reinson, G.E. 1992. Transgressive barrier- island and estuarine systems, In: Facies Models, Response to Sea-Level Change. R.G. Walker and N.P. James, (eds.). St. John’s, Figure 6: Sediment distribution within the Miramichi estuary, northeast New Brunswick. A series of Newfoundland, Geological Association of hypothetical gamma-ray profiles are shown to to demonstrate the variability in lithofacies successions from Canada, p. 179-194. the central basin seaward into the shoreface.

RESERVOIR ISSUE 3 • MARCH 2010 19 remote sensing for geologists IV Disasters, change detection, and becoming RS literate | by Dr. Mryka Hall-Beyer

Last month I promised to wrap up the Disaster response requires many different visible/infrared. Having seven satellites on series with advice about remote sensing kinds of information, and so is in the realm tap allows for more frequent viewing, since (RS) training and education. The Haitian of Geographic Information Systems (GIS). each satellite will be in the right position earthquake of January 12, 2010 intervened, These articles are about RS, so let’s look at a different time. As we saw last month, and there has been much in the media about at how images figure in the relief and Radar can acquire images both at night and imagery and spatial information systems. rebuilding effort. Obviously, one can’t (yet!) through clouds. Radar is excellent for human So instead, here is more about the role get satellite imagery using mass-market artefacts such as buildings and roads, making of images in disaster relief, and something electronics. International cooperation in it appropriate for urban applications. It is about the particular processing techniques acquiring imagery for disasters started in also good at detecting landslides, flooding, useful in disaster relief. They can also be 1999 when the European Space Agency and rubble. High spatial resolution imagery applied to other geological questions. initiated the “International Charter on boasts pixels smaller than 10m, down to Space and Major Disasters.” Canada joined 50cm. At the higher-resolution end, these About a decade ago, I had a graduate student in 2000 and some US government agencies images are as detailed as anything we would curious about possible contributions of in 2004. Since then, most nations with space get from air photos, and allow individual spatial technology to serving aid agencies. He programs have signed on, most recently people to be picked out and counted (though used Haiti as a difficult-case example to test China in 2007. Any government faced with not personally identified). Figure 1 shows feasibility. He concluded that a system would a disaster, or relief agencies concerned, the power of these images, especially when have to be maintained outside the country can activate the network. Trained people stacked to show before and after. (infrastructure problems), that accessibility evaluate what imagery is needed and acquire would have to be through a non-local and deploy it (International Charter, 2010). During the rescue phase, the images are communications system such as satellite Experts are available to extract information mostly interpreted visually and displayed in phones, and the biggest problem would and produce maps in a format useful to the background of other data. Has building be getting agreement from data producers workers on the ground. X collapsed? Where are unblocked routes to making it available. At the time, such between A and B? Where are people a system seemed impractical. During the In the case of the Haitian earthquake, congregating and do they have shelter? As intervening years huge amounts of data have the Charter acquired imagery from seven time goes on, other requirements take over become public and mass-market consumers satellites. They decided on two kinds of and need more detailed and automated seeking quite different effects have put images: Radar and high spatial-resolution image processing. Algorithms are developed technology and skills in the hands of a broad cross-section of people everywhere. People on the ground with smart phones can upload data to the web “cloud” where it is immediately available to everyone. Google Earth overlays can be constructed and made accessible. Applications can automatically map the location of tweets sent from GPS- equipped iPhones. We can only wish that such applications could be even quicker, but compared to the logistical challenge faced without any of the information provided by these aids, they are great steps forward. Although publicizing real-time websites in a print medium is dangerous, I would mention http://www.gisuser.com/content/ category/1/152/2/ (accessed January 20), which lists publicly available spatial tools and imagery, and allows upload of new initiatives. In addition, calls have gone out over professional nets for any Haitian data potentially useful to the recovery efforts. The earthquake is a first for the power of public, web-based spatial data and I predict Figure 1. Before and after images of Port-au-Prince Haiti, using a 50cm spatial resolution satellite image from Digital Globes’ Worldview satellite. Building height and profile can be estimated from shadows. Notice in particular the it will spur non-emergency data sharing in people visible on the streets to the right, as opposed to car traffic on the “before” streets. Notice also the falsity of the other areas. popular myth that one can read car licence plates at this resolution! (Source: Digital Globe at http://www.digitalglobe. com/index.php/27/Sample+Imagery+Gallery. The contents of this site may change over time.)

20 RESERVOIR ISSUE 3 • MARCH 2010 to track damage for planning reconstruction. They may collect surrogates for various socio-economic data (building average size and density, for example), and create databases that may help with preventing future disasters. How many buildings are destroyed in various sub-sections of the city (the satellites cannot of course see interior damage)? These maps may suggest further questions to ask. Does the damage pattern have some spatial consistency that would indicate something about the underlying rock, the movement during the earthquake, or soil consolidation? On the other hand, were patterns more physically random, indicating perhaps spotty adherence to building codes or the effects of different structural materials? Without knowing the spatial patterns, it would be much harder to get answers.

We are mainly concerned in these questions with two image processing techniques: change detection and “object-oriented” procedures (abbreviated as GeoBIA which stands for “Geo-Object-Based Image Analysis”). As with all other image information extraction, the crux of both is to try to express numerically what the human eye and trained Figure 2: Images near the epicentre of Haiti’s January 12 2010 earthquake, used for change detection. Top image Jan. judgement may see intuitively. Both are 15 2010; bottom image Sept. 14 2008. Sensor is NASA’s EO-1 Advanced Land Imager (ALI), a Landsat-like sensor very important in responding to disasters, with 30m resolution and 9 visible-infrared spectral bands. (Source: NASA Earth Observatory http://earthobservatory. especially in the rebuilding phases. nasa.gov, natural hazards collection).

Change Detection to deal with inaccuracies in each image’s such as size of a unit or what it is next Figure 2 presents the change detection classification. On the good side, we would to. GeoBIA is the research area that tries problem: before and after images. The task end up with complete land cover maps that to overcome this problem. The goal is to is to locate landslides. Each image is an we could use later or for other purposes. automate collecting pixels into packages array of digital numbers attached to pixel that correspond to something we would call locations - a matrix - so the simplest step Nevertheless, we still don’t have the final an “object” in the real world. If we could do would be to simply subtract one image answer. A change in river course might cause that, we could measure objects’ size, shape from the other, and differences would pixels to move from vegetated to bare earth. and relationships. Of course we still have represent change at each pixel location. One Or, look at the square bare area in the centre spectral data for the objects. How do we would do this for each of an appropriate right of the top image. It certainly represents get a computer to package our pixels? selection of available wavelength bands. Like a change from vegetated to bare earth. But, unsupervised classification (see the second is a landslide likely to have that shape and Packaging “natural” pixels is not too hard. article of this series), the raw results do location, or might this be a newly cleared Many natural objects – say a lake – are not specify what kind of change is significant field or a clear-cut in the forest? Perhaps composed of the same material, so they for our purposes. Just looking at figure 2, we could bring a digital elevation model into are the same colour (spectral signature). you can see that clouds have changed, as the image and automatically constrain our We could start with each pixel and work has overall image brightness. We certainly potential landslide identification by slope outwards from it until we encounter a sudden don’t care about that. In addition, the north thresholds. Moral of the story: to extract change, and draw our object boundary there. bank of Rivière Momance was vegetated information from images you need to know When it comes to more variable objects, in 2008 but bare in 2010. This is probably local conditions and processes. You also say a forest, it is a bit more difficult. Here, a seasonal difference, not a permanent need to think clearly about what is possible, we ask if adding a neighbouring pixel to change, so not of interest. We want certain and apply a bit of “art” to the science. the growing object would make it more or kinds of changes, from darker to brighter Sounds like Geology! less homogeneous, and we have to rather earth or from vegetated to bare earth. We arbitrarily set some boundaries about the could train the computer to only classify GeoBIA maximum heterogeneity we will allow. We can these changes, so long as we could locate Go back to that squarish bare area on also constrain the largest or smallest object one or more clear examples. In another figure 2. Shape signalled that it might not we will create, and make size hierarchies approach, we might completely classify each be a landslide. Satellite images consist of (cars are small objects within larger parking image separately, and then see what pixels perfectly square pixels of identical size. lots, for example). A good summary of have changed from chosen classes to other What could “shape” mean in that context? GeoBIA is in Hay and Castilla (2008). chosen classes. In this case, we would have It’s not only shape: we can’t use hints (Continued on page 22...)

RESERVOIR ISSUE 3 • MARCH 2010 21 (...Continued from page 21) Very high spatial resolution images, especially of mainly human artefacts, make object-creation problems. The higher the resolution, the more detail we can see. The more spatial detail, the less homogeneous the desired object is likely to be and the harder to “decide” where to draw the boundary. Zoom in your gaze on your bookshelf, from one m2 areas to one cm2 areas, to see what I mean. If you’re like me, just compare detail with and without your glasses! At high resolution, shadows come into play. Look back at figure 1. How might an object-forming algorithm deal with that rooftop with letters written on it? What about a roof with variegated-colour gravel or a rooftop garden? Where might the computer draw the edge of that building in the upper left that casts a shadow? At least in the “before” picture, looking for buildings, we might specify that object You’ve got the edges would have to have straight lines. In the after-image, with collapsed buildings and rubble-filled streets, drawing object *Mark of Schlumberger. © 2010 Schlumberger. 10-IS-0058 Schlumberger. © 2010 Schlumberger. of *Mark power of Petrel. boundaries would be even harder. A human interpreter might have trouble discerning a building’s condition after the earthquake – and how many buildings need to be rapidly evaluated when organizing relief! So far, A unified seismic-to- GeoBIA is in its infancy, but object creation simulation for algorithms are improving all the time. Geological applications of geothermal operations. change detection and GeoBIA Let’s get back to the main point of this series, which is how you can use these techniques in more everyday geological applications. Change detection is of course useful for any dynamic surface, such as earth movement or volcanic or glacial phenomena. I have heard Geophysics. Geology. Reservoir Engineering. a lot recently about detecting ephemeral hydrocarbon seeps. If we can recognize the Petrel* gives you an advantage no other application can offer—a powerful material itself or some surface surrogate integrated workflow from seismic to simulation. This enables you to model (such as slicks or damaged vegetation), then complex geologic structures with pinchouts and truncated faults—and easily we can use successive images to see when it incorporate new data to update the model and rerun ECLIPSE* simulations appears and perhaps point to what controls the flow. The main problem in studies of this at any time. That really makes the difference in understanding complex kind is the temporal and spatial scale. If doing geothermal resources. reconnaissance over a large area, one would “With Petrel and its integrated workflow, we can exploit the complete need coarser spatial resolution, which often comes with quite a reasonable temporal reservoir potential and minimize the exploration risk in geothermal operations.” repeat rate. However, will pixel sizes be Dr. Zoltan Timar-Geng, Geologist small enough to identify the phenomenon? On the other hand, spatially detailed images GEOenergie Bayern GmbH are small in extent and expensive, and do www.slb.com/petrel2009 not come with regular repeats in the past for comparison purposes.

GeoBIA today is finding applications mainly in forestry and urban areas. Size, shape, and proximity of “objects” are not the best way to identify most geologic phenomena. Yes, we could map, say, pink

22 RESERVOIR ISSUE 3 • MARCH 2010 granite masses contacting black basalt flows. survey large areas at a single moment, and Pobst (2001) and Sabins (2007), especially But in this case, identification by colour then focus in on details with higher spatial for geology and theory related to RS of each individual pixel would create just resolution images. Training and experience of geological materials. Commonly used as good a map – or perhaps better – as are vitally important to figuring out what university texts include Lillesand et al. one built of objects. I cannot offhand think surface features might do the trick, and (2004), Campbell (2008), and J.R. Jensen of geological applications where GeoBIA to go right to the most helpful images and (2004). Lillesand is an all-purpose text would be the most advantageous way to techniques. Finally, you now have some idea including manual image interpretation go. However, new techniques invite new of the various images available and what and photogrammetry. Campbell is more applications, and surely some are out there each is good for. quantitative and engineering oriented. awaiting discovery. One interesting area Jensen focuses on image interpretation recent GeoBIA application is in defining Finding out more and project development. For more the extent of lunar craters, to the end of There remains an obvious question: how to advanced and detailed information, extracting maps of crater density and hence acquire the expertise. You may have basic check publications from the American lunar surface ages (Yue et al., 2008). RS knowledge and simply need additional Society for Photogrammetry and Remote information about a particular wavelength Sensing (ASPRS, 2009). Rencz (1999) is Remote Sensing training and range, technique or theory. If targeted a comprehensive ASPRS text relating information specific knowledge is your main need, the specifically to geology. A quick search of I hope these articles have given you a best places to go are online tutorials. For online bookstores by topic will yield many broad outline of what satellite imagery and a lighter tone and especially for Radar more specialized texts. Finally, there is its analysis can do for various geological applications, I would recommend the Canada an online spectral library showing nearly applications. What is visible on the surface, Centre for Remote Sensing tutorials (CCRS, 2,400 laboratory spectra, mostly of rocks to our eyes or in another of the instrumented 2010). For more comprehensive information, and minerals (CIT, 1999). It got its start wavelength ranges, that will give me the including some exercises, NASA maintains in developing RS procedures for mapping answer I need? We can enlist other available N. Short’s tutorials (NASA, 2010). With Mars’ surface. data, especially surface topography, as long as some practical experience and just these it is in pixel format. Once we have identified (and a lot of time and work!), it would be You can’t really understand RS without our surface object, we need to find out its possible to become an accomplished user doing some hands-on work. This means characteristic reflectance or emission, and of RS. software. If all you want is to look at then implement algorithms to flag pixels are images, obtain them in .tif format for having the desired spectra. Advantages of For textbooks, here are a few suggestions single bands and .jpg for three-band colour satellite imagery are the ability to quickly to start you off. I have already mentioned (Continued on page 24...)

RESERVOIR ISSUE 3 • MARCH 2010 23 (...Continued from page 23) Looking at the specialized software, I will for Radar and maintains this advantage. combinations. Most are available this way. mention the most common, and comment The third, used especially for hyperspectral Any web browser or photo viewer should from my own experience. Things are imagery (images with dozens to hundreds be adequate, although files may be larger constantly being improved. Any one of of wavelength bands) and for automating than these viewers are accustomed to. If you these will provide all the functionality most complex repeated processes is ENVI are a digital photography aficionado, you users could want, but they are expensive (ENVI, 2010). can open individual band files or multiple- and highly complex, and may not be best band files and visually enhance them within adapted to a self-taught newcomer! On To learn more systematically about popular photo-preparation software. While the advantage side, there are low-cost RS, you need a course. Sometimes you they may have some quantitative capacity, versions for students enrolled in courses. find RS in Geography or Earth Science they were not designed for image analysis, One or more is usually available at any lab, (usually with an applications emphasis) and especially dealing with more than three school, or company that regularly deals sometimes in Engineering (usually with an colour bands or classification. with imagery. algorithm or sensor design emphasis). At an undergraduate level, some universities There is some software for which image On the inexpensive end, Idrisi (Clark Labs, will have separate RS courses, but the processing is a “sideline.” They are not 2010) is less than $1,500 and is aimed introductory levels are often lumped in as versatile as full-blown image software, mainly at raster GIS and environmental with other quantitative techniques, such but if you have access and skill in them, modelling, but has complete image analysis as GIS or cartography. There are some they would be the way to go. Surveying or capacities. It has recently incorporated programs, like our course-based Master’s drafting programs (CAD) are one example. object-based analysis (segmentation) in its of GIS at the University of Calgary (plug!), Many offices, even K-12 classrooms, have Taiga release. which include intensive introductory GIS software. These products are mainly graduate-level RS courses. We are planning designed to handle vector data. Although There are three major multi-purpose to offer the RS course online starting next they do perform many raster functions, RS software products. One company year. There are also online courses offered finding what you want beyond visualization is ERDAS, which produces Imagine and by universities in the US or in Europe: is difficult if you are not already an expert. ERMapper (ERDAS, 2010). The latter is one source of information is http://www. There are also various freeware products, developed with geological applications in spatialhydrology.com/coursesonline.html. but in my experience most of them are not mind. The second is PCI Geomatica (PCI, stable and usually lack the ability to do more 2010). As a Canadian company, PCI was You can pick up good RS skills at many than basic manipulation. among the first to develop tools specifically technical schools at the college level. In

Our client, an internationally renowned provider of integrated exploration and development geoscience consulting services, requires the expertise and guidance of two seasoned petroleum geoscientists to join the Firm. Consulting to a variety of client organizations with exciting and innovative exploration and development projects within Canada and around the globe, you will apply your technical expertise in the hands-on, pivotal leadership roles of CHIEF GEOLOGIST Suite 225 404 – 6th Ave. S.W. CHIEF GEOPHYSICIST Calgary, Alberta T2P 0R9 The Chief Geologist will be technically proficient and familiar with basin assessment, risk management and play and P: 403-266-8800 prospect development techniques. Ideally, your background will include a broad range of geoscience expertise including hydrocarbon systems analysis, sequence stratigraphy, seismic interpretation, geochemistry, reservoir Email: rob@rjderkitt associates.com characterization, proficiency with workstations and familiarity with a host of exploration and economic analysis

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24 RESERVOIR ISSUE 3 • MARCH 2010 general, university courses will teach you Jensen, J. R. 2004. Introductory Digital Image Pobst, G. 2001. Remote Sensing for Geologists: a lot more theory, preparing you to make Processing. 3rd Edition. Prentice Hall. A Guide to Image Interpretation. Taylor and independent decisions. College courses Francis, 2001. will be heavier on software practicalities. Lillesand, T.M., Kiefer, R.W., and Chipman, J.W. The basics will certainly be there in either 2004. Remote Sensing and Image Interpretation. Rencz, A.B. 1999. Remote Sensing for the case. 5th Ed. John Wiley and Sons. Earth Sciences. Volume 3 of Manual of Remote Sensing. John Wiley and Sons. I hope that these articles have been useful National Aeronautics and Space Administration in clearing up some misconceptions, and (NASA). 2010. Dr. Nicholas Short’s Remote Sabins, F.F. 2007. Remote Sensing: Principles giving you an idea of the many applications Sensing Tutorials. http://rst.gsfc.nasa.gov/. and Interpretation. 3rd Ed. of RS. Thanks to everyone who has sent Accessed 2010-01-20. me suggestions. Anyone who has further Yue, Z., Liu, J.Z. and Wu, G.G. 2008. Automated questions, would like information about our PCI Geomatics 2010. http://www.pcigeomatics. detection of lunar craters based on object- MGIS program at the University of Calgary, com/. Accessed 2010-01-20. oriented approach. Chinese Science Bulletin. or would just like to chat about the subject, v. 53, no. 23, p. 3699-3704. is welcome to contact me at mhallbey@ ucalgary.ca.

REFERENCES American Society for Photogrammetry and Remote Sensing (ASPRS). 2009. Publications Catalogue. http://www.asprs.org/ publications/2009PubsCatalog.pdf. Accessed 2010-01-20.

Campbell, J.B. 2008. Introduction to Remote Sensing. 4th ed. The Guilford Press.

Canadian Centre for Remote Sensing (CCRS). tutorials http://www.ccrs.nrcan.gc.ca/resource/ tutor/fundam/index_e.php. Accessed 2010-01-20.

Clark Labs. 2010. Meeting the challenges of environmental decision-making with GIS. http:// www.clarklabs.org/index.cfm. Accessed 2010- 01-20.

California Institute of Technology (CIT), Jet Propulsion Laboratory. 1999. The ASTER Spectral Library v. 2.0. http://speclib.jpl.nasa. gov/. Accessed 2010-01-22.

Environment for Visualizing Images (ENVI). 2010. http://www.ittvis.com/ProductServices / CSPG would like to thank Dave Russum, ENVI.aspx. Accessed 2010-01-20. Vice President Geoscience of Earth Resource Data Analysis System (ERDAS). AJM Petroleum Consultants, 2010. Products. http://www.erdas.com/ Products/tabid/56/Default.aspx. Accessed for the Technical Luncheon presentation 2010-01-20. he delivered Thursday, January 21, 2010, entitled Hay, G. and Castilla, G. 2008. Geographic “Unconventional Gas Reservoirs: Object-Based Image Analysis (GEOBIA): A new name for a new discipline. In: Th. Blaschke, S. How Important are they to North America?” Lang, and G. Hay (eds.). Object-Based Image Analysis: Spatial Concepts for Knowledge-Driven Remote Sensing Applications. Springer. p. 75-89.

International Charter (Space and Major Disasters). 2010. About the charter. http:// www.disasterscharter.org/web/charter/about. Accessed 2010-01-19.

RESERVOIR ISSUE 3 • MARCH 2010 25 petroleum economics FOR GEOLOGISTS Part 6 – Royalties and Taxes | by Colin Yeo, P.Geol. and Lionel Derochie, P.Eng.

Division of interests and royalties received and paid are entered on this input sheet in Value Navigator Alberta Royalty Framework Oil Well Royalties As a Function of Oil Rate & Price

Working interest in the 60% revenue stream and costs 50% Royalty income from various sources 40% Royalties payable to others (but not to the Crown) 30%

20%

10%

Various drilling incentives may be selected here for 0% royalty adjustments or 0 25 50 75 100 125 150 175 200 225 250 credits Oil Rate - BOPD

Well depth used to $30 $40 $50 $60 $70 $80 $90 $100 $110 $120 calculate Royalty Depth By selecting Alberta, Crown and 2009, Alberta royalties will be calculated, net Factor is entered on of gas cost allowance, and deducted from the revenue stream another input sheet Figure 1. Value Navigator’s royalty input screen captures provincial or federal tax Figure 2. Alberta oil royalties as a function of price and well productivity. regimes, ownership in the revenue stream, ownership of the capital and operating costs, royalties received, royalties paid, and incentives applicable to the well. Introduction when economically evaluating a prospect, the have a working interest ownership in the In the last installment, we addressed capital bonus is considered an up-front capital cost resulting production. Usually their share is and operating costs. Three additional types like seismic or drilling. If drilling is successful, proportionate to their investment although of costs may be encountered during oil and a predetermined royalty rate, payable to the sometimes a capital investment may be gas production, namely royalties paid to the Crown, is applied to the production stream. disproportionately higher for one partner in resource owner, royalties paid contractually order for that party to gain late entry into an to others, and taxes paid on income to First Nations mineral rights are auctioned in evolving play. provincial and federal governments. a similar manner to Crown sales. Individuals and companies that own mineral rights, When evaluating an opportunity, it is In western Canada, provincial governments through historic land grants from the Crown very important to identify and quantify all (representing the Crown), first nations, or through purchase from previous owners, encumbrances and working interest parties individuals, and companies may own title often issue leases to other companies. An and their respective takes on production to the subsurface minerals, including oil initial bonus payment is made to the owner or revenue. Evaluation software, like Value and gas, and have the right to extract and and a royalty rate is negotiated between Navigator, will calculate Crown and First sell them. Exploring for and developing the parties at the outset. The rate can vary Nations royalties and provides the flexibility oil and gas reserves requires significant between owners and may change over time to manually enter unique freehold lessor capital and is not without risk of failure. It due to changing economic conditions. Even royalties and GORRs. Figure 1 shows Value also requires technical expertise so most provinces have been known to vary royalty Navigator’s royalty input panels. resource owners are unable or unwilling to rates arbitrarily, making it difficult to forecast engage in development activities directly but, a cash-flow stream with any certainty. Royalties because they recognize the potential value of Royalties are an important component of their resource, they encourage industry to Divisions of Interest a provincial government’s revenue stream, conduct operations on their title lands. Mineral ownership sets up divisions of especially in a resource-intensive economy interest. The mineral owner who only takes such as that in western Canada. Royalties To develop their resources, mineral owners a royalty is said to have a royalty interest in provide the necessary funds for social programs lease their rights to industry and, in return, the production stream. The mineral owner and infrastructure for the residents of the receive a portion of the resulting production may take the product in kind but more province. Provincial governments take care to or revenue stream. The most common likely will take a percentage of the revenue balance the rights of its citizens to the resource method of obtaining mineral rights leases generated through sales. Another type of wealth they own with the need of industry to is to purchase them at a Crown land sale royalty interest is an overriding royalty paid achieve a reasonable rate of return on its where a company or individual competitively to an existing lessee who has taken a lease invested risk capital as it develops the resource. bids for the right to obtain a lease offered by from a mineral owner or who entered into Royalty rates are generally set using a sliding a province. Sealed cash bids are submitted some contractual agreement with a new scale that is a function of both commodity on a specific date and the highest bidder, not lessee. Such royalties are often termed a price and well productivity. In some instances, necessarily the company or individual that “GORR” (Gross Over-riding Royalty) and rates have been adjusted to compete with requested the mineral rights posting, wins a must be applied as a deduction to the gross those levied in other jurisdictions since capital lease for the Crown’s mineral rights. The cash revenue. The lessee and its partners who will always flow to places where the rate of bid (also called a bonus) is not a royalty and invest capital in the prospect are said to return is maximized.

26 RESERVOIR ISSUE 3 • MARCH 2010 Alberta Royalty Framework Alberta Royalty Framework Gas Well Royalties for a DF = 1 Gas Well Royalties for a DF = 4 As a Function of Gas Rate & Price As a Function of Gas Rate & Price

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

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0% 0% 0 500 1,000 1,500 2,000 2,500 3,000 0 500 1,000 1,500 2,000 2,500 3,000 Sales Gas Rate - mcfd Sales Gas Rate - mcfd

$2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00

Figure 3. Alberta gas royalties as a function of price and well productivity. The Figure 4. Alberta gas royalties as a function of price and well productivity. The depth factor (DF) is 1, as explained below. depth factor (DF) is 4. Compare Figure 4 with Figure 3 to see the difference in royalty rates between smaller and larger depth factors. Using Alberta as an example, we will see rates are about 27%. Conversely, an oil gas wells and include long-leg and multi- how these various factors play out. As well producing 60 bopd will pay a maximum lateral horizontal gas wells in recognition mentioned, conventional oil royalties are a royalty of 50% if the oil price is $120 per of the increased risk capital associated with function of oil price and well productivity. barrel or more. drilling and completing these wells. A depth Figure 2 is a graph of conventional oil factor of 1 applies to all wells that have a royalties as a function of oil price and oil As shown in figures 3 and 4, gas well measured depth less than or equal to 2,000 well production. As shown, royalty rates royalty rates are a function of price, well m and a depth factor of 4 applies to all wells never exceed 50%. At $80 per barrel, the productivity, and a depth factor. The depth that have a measured depth greater than royalty rate reaches its maximum when well factor ranges between 1 and 4 and is or equal to 4,000 m. Wells with measured production meets or exceeds 130 barrels of calculated using the measured depth of the depths between 2,000 and 4,000 m will oil per day (bopd). At the same production well. All other things being equal, depth have a depth factor somewhere between rate, but with an oil price of $30, royalty factors are used to reduce royalties for deep 1 and 4. (Continued on page 28...) BC Gas Well BC Oil Well New Lands Base 9 Royalties Third Tier Royalties

30 BC Gas Well 30 BC Oil Well New Lands Base 9 Royalties Third Tier Royalties 25 25

30 30 20 20

25 25 15 15

20 20 10 10

15 15 5 5

10 10 0 0 - 250 500 750 1,000 1,250 1,500 - 50 100 150 200 250 300 350 400 450 500 5 5 2 $/mcf 3 $/mcf 4 $/mcf 6 $/mcf 8 $/mcf 10 $/mcf 50 $/bbl 75 $/bbl 100 $/bbl

0 0 - 250 500 750 1,000 1,250 1,500 - 50 100 150 200 250 300 350 400 450 500

2 $/mcf 3 $/mcf 4 $/mcf 6 $/mcf 8 $/mcf 10 $/mcf 50 $/bbl 75 $/bbl 100 $/bbl

Saskatchewan Gas Well Oil Well Fourth Tier Royalties Fourth Tier Royalties

50 Saskatchewan Gas Well 50 Saskatchewan Oil Well 45 Fourth Tier Royalties 45 Fourth Tier Royalties

40 40 50 50 35 35 45 45 30 30 40 40 25 25 35 35 20 20 30 30 15 15 25 25 10 10 20 20 5 5 15 15 0 0 10- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 10- 50 100 150 200 250 300 350 400 450 500

5 2 $/mcf 3 $/mcf 4 $/mcf 6 $/mcf 8 $/mcf 10 $/mcf 5 50 $/bbl 75 $/bbl 100 $/bbl

0 0 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 - 50 100 150 200 250 300 350 400 450 500

Figure 5. Oil and gas royalties2 $/mcf in British3 $/mcf Columbia4 $/mcf and6 $/mcf Saskatchewan8 $/mcf 10 $/mcf as a function of price and well productivity. On these graphs,50 $/bbl BC75 $/bbl royalties100 $/bbl are somewhat price insensitive.

RESERVOIR ISSUE 3 • MARCH 2010 27 Gas Well Royalty Comparison Oil Well Royalty Comparison For 6 $/mcf Pricing For 75 $/bbl Pricing

40 Gas Well Royalty Comparison 60 Oil Well Royalty Comparison For 6 $/mcf Pricing For 75 $/bbl Pricing 35 50 3040 60 40 2535 50

2030 30 40 1525 20 1020 30 10 155 20 100 0 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 - 100 200 300 400 500 10 5 Alberta DF=4 BC Sask Alberta BC Sask

0 0 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 - 100 200 300 400 500

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Gas Well Royalty Comparison For 6 $/mcf Pricing

40 Gas Well Royalty Comparison For 6 $/mcf Pricing Alberta DF 4 35

4030

25 Alberta DF 4 35

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155 Alberta DF 1

100 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 5 Alberta DF 1 Alberta DF=1 BC Sask

0 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Figure 6. Comparative royalty rates betweenAlberta DF=1 the BCthree westernSask provinces. (...Continued from page 27) achieved. The royalty range is a function of the implementation of enhanced oil recovery

As shown in figure 3 for example, at a West Texas Intermediate prices between schemes such a Hydrocarbon or CO2 Miscible depth factor of 1, gas well royalties reach $55 and $120 per barrel. Floods as well as Alkali--Polymer a maximum rate of 37% for a gas price of (ASP) Floods to mention a few. $6 per Mcf at a well rate of 600 Mcf/d. In Incentives comparison, at $18 per Mcf, the royalty rate It is very important to determine if the well As a result of the economic downturn, will hit a maximum rate of 50% at well rate being analyzed qualifies for one or more of Alberta launched two new incentive of 300 Mcf/d. At this same well rate of 300 the many incentive programs offered by the programs. The first is the Drilling Royalty Mcf/d, the royalty rate is only 25% for a gas provinces because this will significantly boost Credit program that provides for a $200 price of $6 per Mcf. the economic attributes of the prospect. per meter drilled royalty credit and the There are several programs that can reduce second is the New Well Royalty Reduction As shown in Figure 4, a gas well with a depth royalties through exploration and application Program that caps the royalty at a maximum factor of 4 will see royalties reach a maximum of innovative technology that results 5% on the first 50,000 barrels of oil or rate of 37% for a gas price of $6 per Mcf at in incremental oil and gas production. In 500 MMcf of gas production within the a well rate of 2,300 Mcf/d. At a price of $18 Alberta, for example, the Deep Exploratory first 12 months. Together, these programs per Mcf, the royalty rate hits a maximum of Oil Well Program provides royalty relief encourage new drilling and new production 50% at a well rate of 1,300 Mcf/d. on the first 12 months of production up to that spurs economic activity while generating one million dollars for the first exploratory royalty revenue for the Province. At $6 per Mcf, a gas well producing at 300 well in a pool. This program levies reduced Mcf/d with a depth factor of 4 will hit the royalties on oil production from new, deeper Although the focus of this discussion has minimum royalty rate of 5%. At $18 per Mcf, producing zones that are encountered below been on Alberta’s royalty regime, the other the royalty rate will be 22% for a gas well 2,000 m TVD. The Natural Gas Deep Drilling provinces and territories have similar royalty with a depth factor of 4 producing at this Program provides a royalty credit for gas charges and incentive programs customized same rate of 300 Mcf/d. wells that have a producing interval that is to the jurisdiction. For reference, Figure 5 deeper than 2,500 m TVD. This royalty credit shows royalty rates as a function of price Natural gas liquids are levied a fixed royalty; is in addition to the royalty relief already and productivity in British Columbia and butane and propane at 30%, and pentane provided through depth factor adjustments. Saskatchewan. Figure 6 compares oil and gas plus at 40%. The Innovative Energy Technology Program royalties between all three provinces. provides for royalty adjustments on oil and Oil sand production is charged a sliding scale gas production through increased recovery Adjustments to Royalties royalty rate of between 1% and 9% if the using new technologies. Alberta has also Gas cost allowance (GCA) is a deduction to producer has not yet reached payout on the maintained the Enhanced Oil Recover y Royalt y gross royalties on gas wells that compensate project and 25% to 40% if payout has been program that provides royalty incentives for the producer for gathering, compressing,

28 RESERVOIR ISSUE 3 • MARCH 2010 and processing the Crown’s share of natural recall from the previous discussion on capital Summary gas and natural gas liquids. There is a costs that investments are assigned to various This discussion on royalties and taxes has been comprehensive listing of allowable costs that tax categories: COGPE (mineral land and deliberately kept at a high level. For specific can be charged to the Crown based on gas reserves), CEE (exploration expense), CDE details and calculations, the reader is directed to composition and geographical location. (development expense), and CCA (capital the following official government websites: cost allowance) on tangible assets such as gas • Alberta: www.energy.gov.ab.ca/About_us/1293.asp If a producer owns a gas plant, a capital cost plants and pipelines. There are specific rules • British Columbia: www.em.gov.bc.ca/subwebs/ allowance, custom processing adjustment as to how much capital in each category can resourcerev/royataxs/handbook/default.htm factor, and operating cost allowance can be be written off against income. For example, • Saskatchewan: www.ir.gov.sk.ca/oilgasroyaltytax charged to the Crown. If the producer is a COGPE is written off at a rate of 10% user of a third-party gas plant, then a custom declining balance while 100% of CEE capital Economic evaluation software is adept at keeping processing cost allowance may be charged. can be written off in one year. Taxable income, track of changing royalty rates as production This gas cost allowance is an off-set to the calculated by subtracting all deductions from and price vary, incentive programs are applied royalties payable to the Crown. revenue, is multiplied by the corresponding and federal, provincial and mineral taxes are federal and provincial tax rates. deducted. However, the evaluator must ensure Taxes that critical well information is correct and that eligible incentive programs are identified. So far, we have considered most of the Freehold Mineral Tax Evaluators should perform quick checks on elements comprising a cash-flow stream. A Freehold Mineral Tax is applied to all royalties shown in the summary output to There is one other consideration we must production from freehold leases and is payable ensure they are reasonable and correct. take into account, namely provincial and to the province. It is based on production federal taxes payable on taxable income. volumes from the lease. This tax, which is Taxable income is the amount that remains really a form of provincial royalty, is deductible Support for this series is provided by Energy after all eligible deductible expenses have been from revenue in calculating taxable income. Navigator who have reviewed articles, supplied deducted from the gross revenue. As we have technical consultation, and critiqued manuscripts. discussed, revenue is derived from oil and gas After Tax NPV We thank them for their help. sales, natural gas processing income, royalty We are now able to calculate an annual interest income, and freehold income. These cash flow stream before and after deducting income streams are all fully taxable. income taxes. By discounting both the before and after tax annual cash flows and summing Only a portion of capital costs is allowed to them, before tax and after tax net present be deducted in any particular tax year. You will values can be derived.

Positi on Available - SENIOR GEOLOGIST / ENGINEER

Job Descripti on Compensati on 1. Work with Senior Oil & Gas  nancial analysts on speci c Compensati on will initi ally be a guaranteed salary with bene ts, at company related drilling programs. an above-average level for relati ve age and experience. Aft er a 2. Detailed analysis of emerging plays and evaluati on of probati onary period, this person will parti cipate in a discreti onary comparati ve economics. performance-based bonus program. 3. Frequent presentati ons at the  rm’s Sales and Trading meeti ngs.

Experience/Educati on Requirement Start Date ASAP Locati on • The candidate should have a B.Sc. in Geology or Engineering with Calgary, Alberta a minimum of  ve years of experience in the oil and gas industry. Internati onal E&P experience would also be an asset. Applicati ons • A solid understanding of geology and/or reservoir engineering, (no phone calls please) including knowledge of WCSB strati graphy and trapping Please email résumés to: mechanisms for a variety of reservoir types, as well as reservoir [email protected] performance characteristi cs. Att enti on: Trudy Lui • A familiarity with seismic data interpretati on would be an asset. • The candidate must have a high degree of familiarity with GeoScout or a similar search/mapping program. Peters & Co. Limited • Highly competent with respect to economic analysis. 2300 Jamieson Place • Good oral and writt en communicati on skills required. 308 Fourth Avenue S.W. • Membership in APEGGA is required. Calgary, Alberta

RESERVOIR ISSUE 3 • MARCH 2010 29 WIUGC 2010 | By Markus Ebner and Sandra Rosenthal

It was the start of the winter semester Best Undergraduate Sedimentology Best Graduate Poster: Andrew Kingston, for geoscience students when they took Presentation (CSPG Award) and Best University of Saskatchewan, “High-resolution a break from their classes to attend the Undergraduate Presentation: Matthew stable-isotope profiles from bivalves: a proxy 2010 Western Inter-University Geological W. Demski, University of , “The for the seasonal timing of tsunami events.” Conference (WIUGC) January 7 – 9, 2010. - Boundary in the Williston This year’s conference was in Saskatoon, Basin Outcrop Belt of Central Manitoba: Best Graduate Presentation: Andrew hosted by the University of Saskatchewan’s New Data and Reinterpretations.” Kingston, University of Saskatchewan, Ore Gangue. The students at the University “-isotope records from archaeological of Saskatchewan on the WIUGC organizing Best Graduate Sedimentology Presentation bivalves as a proxy for Holocene climate committee are commended on a well (CSPG Award): Greg Baniak, University change on the coast of British Columbia.” organized and professionally run conference. of Alberta, “Facies Characteristics and Depositional Models for Highly Bioturbated CSPG continues to provide support for our A joint CSPG-CSEG University Outreach Siliclastic Strata: an example from the Upper future geoscientists, and we encourage all contingent consisting of Markus Ebner, Jurassic Ula Formation, Norwegian North CSPG/CSEG affiliated companies who plan Sandra Rosenthal, Stephen Kotkas, and Sea.” on employing students and new hires, or who Lori Barth attended to raise the profile of simply want to raise their profile, to attend our respective societies, and to encourage Best Geophysical Presentation (CSEG award): future WIUGC conferences. students to consider a career in petroleum Cassandra Tycholiz, University of Manitoba, geoscience. The CSPG/CSEG booths were “Geoelectric Response of the Crust and WIUGC 2010: Student Review a big draw for students who were curious Upper Mantle, Lake Nipigon, Ontario.” By: Tyler Tolton-Ropchan and Rae Keim about careers in petroleum exploration and On behalf the 46th annual WIUGC planning development, opportunities for research, and Best Undergraduate Poster (tie): Adam committee, I would like to thank all of the simply about living and working in Calgary. Larsen, University of Saskatchewan, “The delegates and sponsors for making this year’s Between our outreach programs, a total of Making of a Geologic Boulder Map of the event a success. This year we had more than $2,900 in prizes and sponsorship monies was University of Saskatchewan Campus” and 120 delegates from universities across western donated to this year’s WIUGC. Aisyah Abdkahar, University of Manitoba, Canada: University of Alberta, Brandon “Pb-Pb isotope signature of the Flin Flon University, University of British Columbia, Congratulations to all delegates who paleosols: Implications for oxidative University of Manitoba, University of Northern presented their research, and especially to weathering at ~1.85 Ga.” British Columbia, University of Regina and of the following award winners: course the University of Saskatchewan.

SponsoRS Title Sponsor: Areva Resources Canada; Our client, a successful E&P Company with significant production and land holdings throughout South America, is seeking an energetic and experienced Eclogite Sponsorship Level: Cameco geologist to join its Exploration team as Corporation, Association of Professional Engineers & Geoscientists of Saskatchewan, The Ore Ganugue Alumni, and Natural SENIOR EXPLORATION Sciences & Engineering Research Council of Canada; Granulite Sponsorship Level: GEOLOGIST Canadian Society of Petroleum Geologists, Suite 225 Canadian Society of Exploration Geophysicists, 404 – 6th Ave. S.W. Working closely with the VP Exploration and a multi-disciplinary exploration Calgary, Alberta University of Saskatchewan: Department of T2P 0R9 team, the Senior Geologist will take a proactive, hands-on leadership role with: the Geological Sciences, and Claude Resources; exploration for oil; the exploitation of the company’s operated reservoirs; the P: 403-266-8800 Greenschist Sponsorship Level: Sigma development of bitumen resources; and, the development of new exploration Exploration Inc., Trident Exploration Corp., Email: rob@rjderkitt targets in other South American Basins. D. M. Kent Consulting Geologist Ltd., North associates.com A professional Geologist with at least ten years of combined clastic and carbonate Rim Exploration Ltd., and Canadian Institute R depositional systems experience, the ideal candidate will be recognized for their of Mining, Metallurgy, and Petroleum; Tour

. creative and innovative generation of prospects, which have led to hydrocarbon Sponsors: PCS -Cory and ShoreGold. A J discoveries within the complex reservoirs and formations found within fold and .

S thrust belt and foreland basin environments. Technically proficient with the We would like to give a special thanks to D integration of seismic and geological data in addition to conducting log analysis S those who participated in judging our technical and DST evaluations, the Geologist will possess a working expertise with a variety E

O of geological software packages (Petra) and geophysical interpretation concepts and presentations and posters. Thank you Lori R be cognizant of all of the engineering issues associated with a prospect’s viability. Barth, Sandra Rosenthal, Markus Ebner, w C Kevin Ansdell (Current U of S Geological K Possessing well-developed communication, negotiation and presentation skills, you

I Sciences Department Head), and Mel Stauffer . r j d e k i t a s o c m

A will demonstrate the organizational and prioritization abilities required to analyze I (Professor Emeritis U of S). We would also T and evaluate the large number of exploration and acquisition prospects in a timely T and confidential manner. Flexible, open-minded and possessing cultural sensitivity, like to thank our keynote speakers: luncheon T E you will display a mature, enthusiastic and participative work outlook in the speaker, Vincent Martin, CEO of Areva

S Resources Canada, and banquet speaker, Mel a achievement of your team’s goals and objectives by generating viable new exploration prospects in addition to supporting an aggressive development drilling Stauffer. n

I program. Given the international makeup of the Exploration team, preference will N d be given to those candidates with a good working knowledge of Spanish. As the The WIUGC planning committee wishes C successful candidate, you can expect a moderate amount of travel to the Company’s Brandon University the best of luck planning South American office and other international locations as required. Interested . the 47th annual WIUGC. We will see you in candidates are encouraged to respond in complete confidence to Rob Derkitt. Januar y 2011.

30D O C K E T RESERVOIR: ZRJ-18187 ISSUE 3 • MARCHAD#: 2010 PUB: CSPG NAME: SR GEO DATE: JAN 19 COLOUR: BLACK SIZE: 1/3 SQ BOOKING: JAN 21 THIS ADVERTISEMENT PREPARED BY TRIGGER CO. GEOcanada 2010 Luncheon Speakers

GeoCanada 2010 will offer two Industry Luncheon presentations. If you are interested in learning more about the s p e a ke r s o r b u y i n g t i c ke t s t o e i t h e r o f t h e s e events, visit http://www.geocanada2010. ca/. New this year: reserve a table at either luncheon. Contact Tanya at (403) 513-1226 to learn more!

Ray Zahab On November 1, 2006 Ray and two other runners set out on an epic expedition to cross the Sahara Desert by foot. One hundred and eleven days after leaving the coast of Senegal they made history by Ray Zahab. Brent Butt. dipping their toes into the Red Sea and raising the bar of all that we consider On January 7, 2009 Ray and two other Brent Butt possible. The epic expedition had the trio Canadians broke the world speed record Brent Butt is one of the top comedians running an average of 70km a day, without for unsupported expedition from Hercules working today. He has performed his stand- a single day of rest. National Geographic Inlet to the South Pole. In the process, up show to sold-out audiences across this tracked this epic expedition by web, Ray became the first person to trek to country. He is also the creator, head writer, and the documentary film “Running the the South Pole on this traditional 1,130 km and star of the CTV smash hit television Sahara” – narrated and produced by Matt route solely on foot using snowshoes. show Corner Gas. Damon – will raise awareness for the drinking water situation in northern Ray will speak Monday, May 10, 2010 at Brent will speak Wednesday, May 12, 2010 Africa. GeoCanada 2010. at GeoCanada 2010.

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RESERVOIR ISSUE 3 • MARCH 2010 31 GEOcanada 2010 Short Courses

See below for the exciting list of GeoCanada Geosteering Planning Land 2010 Short Courses. Please note that you (Logging While Drilling) 3-D Seismic Surveys must be registered as a full Convention Presenter: Sue Bruce Instructor: Andreas Cordsen delegate in order to register for any of the Date: May 5, 2010 Dates: May 6 – 7, 2010 short courses listed below. Registration opens Cost: $500 Cost: $800 March 1 at http://www.geocanada2010.ca/. Max. Attendance: 30 Max. Attendance: 20

Basic Petroleum Economics Sequence Stratigraphy: Microseismic Instructor: Dave Volek Principles and Applications Presenter: TBA Date: May 3, 2010 Instructor: Octavian Catuneanu Date: May 7, 2010 Cost: $500 Dates: May 5 – May 7, 2010 Cost: $500 Max. Attendance: 14 Cost: $975 Max. Attendance: 30 Max. Attendance: 25 Shale Gas Critical Fundamentals, Unconventional Techniques and Tools for Borehole Imaging (By-Passed) Pay Exploration Analysis Presenters: Grant Sha, Paul Elliott, Presenter: Brian Stambaugh Instructor: Basim Faraj Carlos de Silva Date: May 7, 2010 (AM) Date: May 3, 2010 Date: May 6, 2010 Cost: $250 Cost: $675 Cost: $500 Max. Attendance: 30 Max. Attendance: 30 Max. Attendance: 30 NMR Logging Methods Acoustics Shale Gas Petrophysics: Using Presenter: Brian Stambaugh Presenters: John Walsh, Doug Patterson Clustering and Mineral-Based Date: May 7, 2010 (PM) Date: May 3, 2010 Interpretation: The Easy Way Cost: $250 Cost: $500 Presenter: Bob Everett Max. Attendance: 30 Max. Attendance: 30 Date: May 6, 2010 Cost: $500 Fault-Controlled Hydrothermal Editing Logs for Geophysical Purposes Max. Attendance: 30 Dolomite-Leached Limestone Presenter: Ross Crain Exploration Play Date: May 3, 2010 Risk and Uncertainty Analysis for Instructor: Jack Wendte and Graham Davies Cost: $500 the Assessment of Unconventional Date: May 7, 2010 Max. Attendance: 30 Resource Plays Cost: $500 Instructor: Gary Citron or Bob Turner Max. Attendance: 20 Facies and Depositional Date: May 6, 2010 Environments in Core Cost: $675 Theriak-Domino: A Fast, Automatic, Instructor: Bill Arnott Max. Attendance: 25 and Easy-To-Use Phase Diagram Dates: May 3 – May 5, 2010 Calculator Based on Free Energy Cost: $1,350 Practical Sequence Stratigraphy: Minimization Max. Attendance: 20 Concepts and Applications Instructor: Christian de Capitani Instructor: Ashton Embry Dates: May 8 – 9, 2010 Carbonate Petrophysics Dates: May 6 and May 7, 2010 Cost: $300 Delegate, $100 Student Presenter: Gene Ballay Cost: $725 Max. Attendance: 30 Dates: May 3 – 5, 2010 Max. Attendance: 25 Cost: $1,000 Concepts, Models, and Case Studies Max. Attendance: 30 An Introduction to of Dolomitization – with Applications Petroleum Geostatistics to Hydrocarbon Exploration Using Ancient Logs to Find Instructor: Clayton Deutsch and Development By-Passed Pay Dates: May 6 – May 7, 2010 Instructors: Hans Machel and Jay Gregg Presenter: Ross Crain Cost: $825 Dates: May 11 – 12, 2009 Date: May 4, 2010 Max. Attendance: 25 Cost: $1200 Cost: $500 Max. Attendance: 20 Max. Attendance: 30 Seismic Attributes for Prospect Identification and Reservoir Integrated Basin and Borehole Geophysics: Characterization Play Analysis Theory and Practice Instructor: Satinder Chopra Instructor: Bob Stewart Instructor: Ronald C. Hinds and Dates: May 6 – 7, 2010 Cost: $20 per student (student only course) Richard D. Kuzmiski Cost: $800 Dates: May 13 – 14, 2010 Dates: May 4 – 5, 2010 Max. Attendance: 20 Max. Attendance: 30 students Cost: $800 Max. Attendance: 20

32 RESERVOIR ISSUE 3 • MARCH 2010 Microseismic Boot Camp Canada Rocks: The Geologic History of Canada’s Sedimentary Basins Instructor: Shawn Maxwell Instructor: Andrew Miall Date: May 14, 2010 Dates: May 17 – 18, 2010 Cost: $400 Cost: $850 Max. Attendance: 20 Max. Attendance: 25

Kimberlites and Related Rocks in the Seismic Interpretation of Structural Styles and Interpretation Western Canada Sedimentary Basin Structural Styles Techniques in Fold-Thrust Belts Instructors: Roy Eccles and George Read Instructor: Mark Cooper and Marian Warren Instructor: Shankar Mitra Date: May 15, 2010 Dates: May 17 – 21, 2010 Dates: May 19 – 21, 2010 Cost: $300 Delegate, $100 Student Cost: $2,250 Cost: $1,350 Max. Attendance: TBA Max. Attendance: 25 Max. Attendance: 25

Geomechanical Aspects of Memory Techniques The Stratigraphic Setting of Lower Instructor: Bruce Lee Carbon Sequestration and and Middle Strata, Western Date: May 18, 2010 CO2 Enhanced Oil Recovery Cost: $395 Canada Sedimentary Basin Instructor: Pat McLellan and Chris Hawkes Max. Attendance: 25 Instructor: Jim Dixon Date: May 17, 2009 Date: May 21, 2009 (AM) Cost: $500 The Geology of Sandstone Reservoirs Cost: $375 Max. Attendance: 25 Instructor: Godfried Wasser Max. Attendance: 20 Dates: May 18 – 21, 2010 Design, Processing, and Interpretation Cost: $1,300 of Magnetic, Gravity, and Electrical Max. Attendance: 15 Methods in Hydrocarbon Exploration and Development Sequence stratigraphy: A Practical Instructor: Ted Glenn Understanding of Basinal Controls in Mapping and Exploration Dates: May 17 – 18, 2010 Instructor: Andrew Miall Cost: $800 Dates: May 19 – 20, 2010 Max Attendance: 20 Cost: $850 Max. Attendance: 25

APEGGA Position PAPEr on AlbErtA’s ProvinciAl EnErGy strAtEGy

APEGGA supports the vision and directions established in Alberta’s Provincial Energy Strategy — 2008, and will work with the government plus provincial departments and agencies to meet the many technical challenges of implementing the strategy. Representing professionals, APEGGA will contribute to public dialogue and, when requested, will nominate expert, non- partisan Members to serve on high level code bodies, advisory agencies and governance boards. APEGGA will also inform and encourage Members to implement progressive best practices with respect to clean energy production and wise energy use.

For more information visit www.apegga.org.

APEGGA

RESERVOIR ISSUE 3 • MARCH 2010 33 GEOcanada 2010 Field Trips

See below for the exciting list of GeoCanada The Hydrogeology of Southwestern Analogues for Foothills Oil and 2010 Field Trips. Please note that you must Alberta: Where the Prairies Meet the Gas Drilling in Low Permeability be registered as a full Convention delegate Mountains Carbonates, Moose Mountain in order to register for any of the field trips Leader: Jamie Freeman and Bill Wilmot Leaders: Andrew Newson and listed below. Registration opens March 1 at Dates: May 8 – 9, 2010 Deborah Sanderson http://www.geocanada2010.ca/. Cost: $700 Date: Monday, May 17, 2010 Max. Attendance: TBA Cost: $375 PRE-CONVENTION FIELD TRIPS Max. Attendance: 17 Glaciation and Climate Change in the Siliciclastic Depositional Systems Leader: Dr. Nat Rutter From Turner Valley to the Calgary in the Cretaceous Book Cliffs Utah Dates: May 8 – 9, 2010 Landslide: Three Ages of Deformation – Colorado: Applications to the Cost: $425 Laramide, Pleistocene and Present Subsurface Max. Attendance: TBA Leader: Peter Jones Leader: Simon Pattison Date: May 17, 2010 Date: May 3 – 7, 2010 Thermal and Mineral Springs of the Cost: $375 Cost: $2,300 Canadian Rockies Max. Attendance: 25 Max. Attendance: 14 Instructor: Stephen Grasby Trip begins and ends in Grand Junction CO. Dates: May 9, 2010 Geology of the Athabasca Oil Sands Airfare not included Cost: $140 Leader: Murray Gingras and Mike Ranger Max. Attendance: TBA Date: May 17 – 19, 2010 Structures and Hydrocarbons in the Cost: $2,950 “Undeformed” Southern Plains Post-Convention Field Trips Max. Attendance: 14 Leader: Marian Warren Dates: May 4 – 5, 2010 Barrovian and Buchan Metamorphism The Triassic of Northeastern and their Tectonic Juxtaposition, Cost: $650 British Columbia: Sedimentary Southeastern British Columbia Max. Attendance: 19 Characteristics and Stratigraphic Leaders: David R.M. Pattison, David P. Architecture of Conventional and Moynihan, and Christopher R.M. McFarlane Geoscience of Saskatchewan Potash Unconventional Reservoir Successions Deposits Dates: May 13 – 16, 2010 Cost: $575 Leader: John-Paul Zonneveld Leader: Jason Berenyi and Chao Yang Dates: May 17 – 20, 2010 Dates: May 5 – 6, 2010 Max. Attendance: 20 Cost: $3,110 Cost: $660 Max. Attendance: 14 Max. Attendance: 16 City of Calgary Wastewater Treatment – Pine Creek Facility Trip begins and ends in Fort St. John. Trip attendees will need to arrange travel to and Instructor: Domi Diaz Airfare not included. from Saskatchewan Dates: May 14, 2010 Cost: $50 Horseshoe Canyon Student Field Trip Geological Walking Tour – The Max. Attendance: TBA Leader: Dennis Meloche Building Rocks of Calgary Dates: May 18 Leader: Bill Ayrton Contrasting the Reservoirs of Braided Cost: $80 Date: May 6, 2010 (PM) vs. Meandering Depositional Systems Max. Attendance: 35 Cost: $150 Leader: Jon Noad Max. Attendance: 30 Dates: May 14 – 15, 2010 Virgelle Member at Writing-on-Stone Cost: $525 Provincial Park, : Fluvial Architecture and Reservoir Max. Attendance: 13 Considerations of Anastomosed Analogue for a Hydrocarbon Reservoir and Meander River Deposits (Lower Turtle Mountain (Crowsnest Pass) Leader: Rudi Meyer Tertiary Porcupine Hills and Structure trip “The Rise and Fall of Dates: May 18 – 19, 2010 Upper Cretaceous Dinosaur Park Turtle Mountain” Cost: $550 Formations), Southern Alberta Leaders: Willem Langenberg and Tim Hartel Max. Attendance: 14 Leaders: Derald Smith and Peter Putnam Dates: May 14 (pm) – 15, 2010 Dates: May 6 – 7, 2010 Cost: $350 Bakken/Sappington formation along Cost: $750 Max. Attendance: 25 Montana’s Rocky Mountain Front Max. Attendance: 20 Leader: Ted Doughty A Revised Regional Stratigraphy Date: TBA Shales and Sandstones of the Upper and Stratigraphic Architecture for Cost: TBA Cretaceous in the Southern Alberta the Horseshoe Canyon Formation: Max. Attendance: TBA Foothills Outcrop and Subsurface Leaders: Per Kent Pedersen and Karsten Nielsen Leader: David Eberth Date: May 7 – 8, 2010 Dates: May 15 – 16, 2010 Cost: $700 Cost: $750 Max. Attendance: 35 Max. Attendance: 25

34 RESERVOIR ISSUE 3 • MARCH 2010 Earth Science for society at GeoCanada 2010 | By Helen Isaac

In May 2010, geoscientists from across We are organizing a series of two-hour We need many guides so please consider Canada will gather in Calgary, Alberta for visits from junior high school students, offering a few hours of your time to this a once-in-a-decade opportunity to share modeled after the successful Kids in worthy cause of introducing to young experiences and knowledge at our annual Science Program that was offered for people the rewards of Earth Science that joint convention GeoCanada 2010. As part the last several years. As of early January you have enjoyed yourself! To volunteer of this major event, numerous geoscience 2010, over 1,800 students have already as a guide please email helen.isaac@ volunteers are busily organizing Earth been signed up by their eager teachers! ucalgary.ca Science for Society, a two-day exhibit Volunteer guides will accompany the in the BMO Centre Corral designed to students around the exhibits, answer expose junior high school students and their questions and enjoy the company of the public to the geosciences through a enthusiastic budding young geoscientists. variety of hands-on exhibits. Five themed pavilions with a focus on Earth Science, “Resources and You,” “Energy for Us,” “One Dynamic Earth,” “Your Career?” and “Our Future!,” will give exhibitors the chance to showcase their organizations not only to convention delegates but also to the public and the 2,000 junior high school students we will bring to this event. This is a great opportunity for exhibitors or sponsors to advertise their products or services to the public and to convention delegates.

The objectives of Earth Science for Society are to:

• Expose students and the public to various aspects of Earth Sciences in a fun, educational, and interactive way; • Inform students about education and career options; • Demonstrate how Earth Science plays a critical role in our society; • Make the connection between responsible resource development and the things we use every day.

The exhibits will be open on Monday, May 10 from 9:30 am to 8:30 pm and on Tuesday, May 11 from 9:30 am to 3:30 pm. Admission is free. All delegates are encouraged to bring their family and friends and spread the word to the public.

RESERVOIR ISSUE 3 • MARCH 2010 35 CONVOCATION ADDRESS | By Raymond Price

This convocation address was presented June 9, 2009 to students at the University of Calgary graduating from the Faculties of Science and Graduate Studies.

Eminent Chancellor Cuthbertson, President Weingarten, distinguished guests, fellow graduates, ladies and gentlemen, it is a great honour to become part of the distinguished community of individuals who have received degrees from the University of Calgary. I am sincerely grateful for that honour.

It is also a special honour for me to have the opportunity to address the women and men from the Faculties of Science and G r a d u a t e S t u d i e s , w h o s e s c i e n t i f i c e x p e r t i s e and knowledge are about to be formally recognized by the granting of a degree from the University of Calgary. I offer each one of you my sincere congratulations, and my best wishes as you set out to apply your talents in our rapidly changing world.

In my address this afternoon, I would like to share with you some thoughts about the present challenges and the emerging in scientific knowledge and expertise, and capita consumption of energy resources opportunities that our rapidly changing in science education. These investments by residents in your home area - starting world presents for you. I offer two take- set an example that will affect international with the years just before the arrival of the home messages. science, including Canadian science. first Europeans, and continuing at multiple- year intervals to include the arrival of the The first is: now that your qualifications We live in a time of accelerating global first European settlers, the introduction as scientists have been established, your change – change that is rooted in the of wood-burning steam power, railroads, scientific expertise and knowledge are unprecedented growth in the human the use of coal, the onset of urban and needed to help find innovative scientific p o p u l a t i o n a n d i n t h e p e r c a p i t a c o n s u m p t i o n then rural electrification, use of petroleum answers and solutions for the challenges of energy, mineral, freshwater, agricultural and internal combustion vehicles, natural we all face because of rapid growth in and ecological resources. In 1955, when I gas, highway transport services, and air the human population, and increasingly received my B.Sc., the human population transport, and concluding with your own rapid technological, economic and social on Spaceship Earth was [approximately] annual present-day direct and indirect changes in our global society, especially 2.8 billion. By [around] 1995, before I personal energy consumption - including the challenges presented by the associated retired from teaching, it doubled to more the energy that is required to produce deterioration and disruptions of our fragile than 5.6 billion. It is now about 7.0 billion. and transport all the things that you buy human habitat - a vanishingly thin near According to the U.N. Commission on as well as the energy required to meet surface layer on our lonely blue planet - Population and Development, the rate your transportation, heating and electrical Spaceship Earth. of growth has been decreasing since it power needs, at home and at work. This reached its highest level (2.04% per year) in kind of analysis leads to the conclusion that The second message is that as you leave the late 1960s; but nevertheless, the total the per capita growth in consumption of your university studies in the midst of population can be expected to continue to food, energy, mineral, water, and ecological a global recession, extraordinary, new increase - to eight billion in 2028, and nine resources in Canada and other developed and unexpected opportunities for your billion in 2054 - before stabilizing at just counties, has probably been of the same participation in innovative scientific and above 10 billion after 2200. order of magnitude as the growth in technological developments and applications the global population; and furthermore are emerging because of that global The rapid growth in the human population that this growth in per capita resource recession. The impact of the recession has been accompanied by a corresponding consumption amplifies substantially the has expanded the commitment from growth in the per capita demand for effects of growth in the human population. the Obama administration to transform natural resources, particularly food, Now that globalization is making it feasible American science and innovation with energy, mineral, freshwater, and ecological for people in the very populous developing unparalleled, large, long-term investments resources. Think about the changes in per countries, like China and India, to aspire to

36 RESERVOIR ISSUE 3 • MARCH 2010 the same levels of profligate consumption of resources that are well established in many of the developed countries. What do you think will be the consequences AAPG CANADA REGION - of many, many more people consuming resources the way we have been doing? VOLUNTEERS WANTED!

Energy, mineral, freshwater, and most food The Canada Region of the American Association of Petroleum resources are geographically restricted and Geologists (AAPG) needs you – if you are a member of the AAPG unequally distributed among nations, and and interested in volunteering please consider how you can assist. also within nations. Some nations and some regions are well endowed and can 2010 will be a busy year for the Canada Region with the AAPG export what they do not require; others International Convention and Exhibition being held in Calgary and must import part or all of what they with growing interest in the Imperial Barrel Award program for require. Ecological resources are different. students. They provide the ecological goods and services that are generated by healthy ecosystems and are beneficial to humans Most current volunteers are from Calgary but representation from and all other living things. These goods across the country is desired – and it would be great to lower the and services include purification of air average age of the group! and water, decomposition and dispersion of wastes, maintenance of biodiversity, Members of the Canada Region are wanted to serve on various and overall maintenance of a sustainable committees, and if you are an Active, Honorary or Emeritus Member global habitat for human life on Earth. The of the AAPG you are also eligible to take advantage of one or both of global oceans and Earth’s atmosphere are the opportunities below. good examples of ecological resources that are held in common, as a birthright, by all human beings. No one group has 1) Call for Nominations for Officers for the Canada right of ownership and control over them; Region and everyone is responsible for ensuring Officer positions, including that of President, will be falling vacant for that they are sustainable. However, both the 2010-2011 term. These officers serve on the Region’s Executive the shared ownership and the shared responsibility are commonly overlooked. Committee, a body that helps promote AAPG services in Canada and provides feedback to AAPG HQ, amongst other responsibilities. Growth in per capita consumption of resources within a burgeoning human 2) Call for Nominations for Delegates, AAPG House population is adversely affecting our global of Delegates ecological resources, and thereby, the people who depend on them. Carbon The Canada Region is currently represented in the AAPG House of pollution, mainly as gaseous emissions from Delegates by thirteen Delegates from the Region, and there will be a the use of fossil fuels, has emerged as number of vacancies in these 3-year positions for the coming term of the most important culprit. Abnormally office (2010-2013). There are also additional opportunities to serve high accumulations of carbon dioxide and as Alternate Delegates. The House of Delegates of the AAPG is methane that are accumulating rapidly in responsible for all legislative functions of the Association, within the the global atmosphere are already causing scope of the AAPG’s Constitution and Bylaws. As a group, the HOD abnormal global climate warming as well is an influential body and serving as a Delegate is a great way to get as ecologically harmful global acidification involved in the workings of the AAPG. Canadian Region Delegates of the oceans. These effects will continue for some time after the emissions have also participate in the Executive Committee of the Region. stopped. In June 2008, the presidents of the Academies of Science of the G8 Interested? Want more information? Want to submit your + 5 (Canada-France-Germany-Italy-Japan- name – or that of another candidate? Russia-the United Kingdom and the U.S.A) Then for any of these opportunities please contact one of the following + (Brazil-China-India-Mexico and South (as soon as possible and preferably before March 31st, 2010): Africa) signed a joint statement calling on world leaders to implement an accelerated Paul English, Secretary transition to a low-carbon society in order to limit the threat of global change. The AAPG Canada Region (403) 699-5374 Joint Academies of Sciences represent the [email protected] leading scientists of those 13 countries. Or Dave Dolph, President With this brief overview of some of the AAPG Canada Region (403) 699-4301 global change challenges that merit your [email protected] (Continued on page 38...)

RESERVOIR ISSUE 3 • MARCH 2010 37 (...Continued from page 37) opinion, become even more of an historical promote breakthroughs in energy and attention, let us turn our attention to landmark than President John Kennedy’s medicine, and improve education in math some important emerging opportunities 1961 declaration that the United States and science.” for meeting these challenges. would overtake the Soviet Union in the A transformational scientific renaissance space race by sending a man to the moon This initiative represents the largest is underway in the U.S.A. It was described and returning him safely to the Earth. investment in science and innovation in by President Barack Obama, on April American history. And it is underway 27th, 2009, in his address on: “Science President Obama said, “I’m here today to now. Through the American Recovery and and Innovation,” presented at the 146th set this goal: We will devote more than Reinvestment Act, the U.S. government Annual Meeting of the National Academy three percent of our GDP to research and is already providing the largest single of Sciences in Washington, D.C. The development. We will not just meet, but we boost to investment in basic research public policy statements presented in will exceed the level achieved at the height in American history. It has doubled the this address will have enormous impact of the space race – through policies that budgets of key agencies including the on the entire global scientific enterprise, invest in basic and applied research, create National Science Foundation, the National including Canadian science. They will, in my new incentives for private innovation, Institute of Standards and Technology and the Department of Energy’s Office of Science. To those who say that in a deep recession, the U.S. cannot afford to invest in science, or that research is somehow a luxury at moments defined by necessity, President Obama’s reply is, “I fundamentally disagree. Science is more essential for our prosperity, our security, our health, our AND environment, and our quality of life than it BAKKEN has ever been.”

While setting a goal for the United States BEYOND! to reduce the nation’s carbon pollution by more than 80% by 2050, he said: “in no area Williston Basin Petroleum will innovation be more important than in the development of new technologies to produce, use and save energy, which Conference & Expo is why my administration has made an unprecedented commitment to developing Civic Center • Bismarck, North Dakota a 21st century clean energy economy, and why we put a scientist in charge of the

May 2 May Department of Energy. Our future on this planet depends on our willingness to th address the challenge posed by carbon ND - 4 largest oil producing state pollution. And our future as a nation depends on our willingness to embrace Bakken - Three Forks - Lodgepole Core Workshops this challenge as an opportunity to lead -

4 the world in pursuit of new discovery…the 75+ Speakers - US and Canadian officials , nation that leads the world in 21st century 2010 and industry leaders clean energy will be the nation that leads in 300+ Exhibits - Indoor and Outdoor the 21st century global economy.” President Obama concluded his remarks by stressing the importance of international cooperation and collaboration in the Sponsorships available at www.ndoil.org pursuit of these goals, and by urging the Academy members to join him in creative For agenda, hotel and other general efforts to engage young people in science. information, visit www.ndoil.org I conclude my remarks with two Hosted by: ND Petroleum Council, ND Department of Mineral Resources, Saskatchewan Ministry of Energy and Resources observations: My fellow graduates, our dysfunctional global society needs you General registration opens and your newly acquired expertise and knowledge to help it become functional again, and Barack Obama has explained to the world how your talents can be, and February 17, 2010 must be, put to work, especially during a at www.ndoil.org deep recession.

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