17 Understanding Reserves and Resources: Part 3 – Estimating Reserves 23 The Developed Professional 28 The Purpose and Goals of Proposed Amendments to the CSPG's By-Laws
$10.00 NOVEMBER 2011 VOLUME 38, ISSUE 10 Canadian Publication Mail Contract – 40070050
RESERVOIR ISSUE 10 • NOVEMBER 2011 1 Since 1927...
Follow the Leader.
The global industry leader in critical information and insight, IHS continues to invest in the progress of the Canadian energy market so you can get from discovery to drilling in record time. By updating, improving and streamlining our Canadian products and services, we have delivered workflow integration between IHS PETRA® and IHS AccuMap®; created solutions for better access to global resources, from well log databases to subject matter experts; and continued to provide transparency and insight to Canadian energy businesses that need actionable information.
See how IHS is investing in Canada at www.followihs.com. Since 1927...
November 2011 – VOLUME 38, ISSUE 10
ARTICLES
Understanding Reserves and Resources Part 3 – Estimating Reserves ...... 17
CSPG OFFICE The Developed Professional ...... 23 #110, 333 – 5th Avenue SW Calgary, Alberta, Canada T2P 3B6 CSPG University Outreach: Welcome to the New Academic Year ...... 25 Tel: 403-264-5610 Web: www.cspg.org Office hours: Monday to Friday, 8:30am to 4:00pm Another Great Year at CSPG Mixed Golf ...... 26
Executive Director: Lis Bjeld The Purpose and Goals of Proposed Amendments to the CSPG By-Laws ...... 28 Tel: 403-513-1235, Email: [email protected] Member Services: Dayna Rhoads Tel: 403-513-1225, Email: [email protected] 23rd Annual CSPG/CSEG 10K and 5K Road Race and Fun Run ...... 30 Communications and Publications: Caitlin Young Tel: 403-513-1230, Email: [email protected] Bulletin of Canadian Petroleum Geology ...... 32 Accounting and Office Administration: Kasandra Klein Tel: 403-513-1233, Email: [email protected] Programs Development: Aileen Lozie 2010 Geological Calendar ...... 34 Tel: 403-513-1227, Email: [email protected] Member Liaison: Bea McDowell Tel: 403-513-1226, Email: [email protected] DEPARTMENTS Corporate Sponsorship: Lis Bjeld Tel: 403-513-1232, Email: [email protected] Executive Comment ...... 5 EDITORS/AUTHORS Please submit RESERVOIR articles to the CSPG office. Technical Luncheons ...... 9 Submission deadline is the 23rd day of the month, two months prior to issue date. (e.g., January 23 for the March issue). Division Talks ...... 13 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 ...... 16, 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 Caitlin Young, Publications Coordinator, CSPG Tel: 403-513-1230, Email: [email protected],
ADVERTISING Advertising inquiries should be directed to Caitlin Young, email: [email protected]. The deadline to reserve advertising space is the 23rd day of the month, two months prior to issue date.
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 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 publisher. Additional copies of the RESERVOIR are available at the CSPG office. 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. 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 information contained herein may be inaccurate or may vary from standard measurements. FRONT COVER The CSPG expressly disclaims any and all liability for the acts, omissions, or conduct of any third-party user Abbot Pass, taken from Yukness Mountain, Lake O’Hara, Yoho National Park, B.C. of information contained in this publication. Under no circumstances shall the CSPG and its officers, directors, Photo by David Thomson. employees, and agents be liable for any injury, loss, damage, or expense arising in any manner whatsoever from the acts, omissions, or conduct of any third-party user. Design and Layout by Sundog Printing. Printed in Canada by Sundog Printing. RESERVOIR ISSUE 10 • NOVEMBER 2011 3 Since 1927...
Proudly brought to you by Professionals in Geoscience and Engineering
we make a difference www.apegga.org Since 1927... EXECUTIVE COMMENT A message from Assistant Services Director Michelle Hawke
Change is the only constant CSPG EXECUTIVE I’m sitting in the airport departures By the time this column is published, the lounge, waiting for my plane to board. I second annual Future Prospects event PRESIDENT glance around, and notice that the young for young geoscientists will have taken Kirk Osadetz • Geological Survey of Canada, Calgary [email protected] Tel: (403) 292-7022 woman sitting to my right is busily typing place. This year, the event was held at away on a smartphone. The older couple Belgo Brasserie on October 13th. This VICE PRESIDENT sitting next to my left are surfing the net event gave geology students and early Robin Mann • AJM Petroleum Consultants on an iPad. The woman and two school- career geoscientists an opportunity to [email protected] Tel: (403) 648-3210 age children sitting across from me each network with their peers and senior PAST PRESIDENT have either a smartphone or an iPad. In CSPG volunteers while learning more John Varsek • Cenovus Energy fact, a quick glance around shows that the about the Society, what it does, and how [email protected] Tel: (403) 645-5417 vast majority of people are busily engaged it can their support career development. FINANCE DIRECTOR with an electronic communications device By reaching out to our younger, and even Darren Aldridge • Baker Hughes Incorporated of some sort. to future members, we hope to encourage [email protected] Tel: (403) 537-3400 them to bring their energy and ideas to So what’s my point? Only a very short the table and help us to keep the CSPG a ASSISTANT FINANCE DIRECTOR Andrea Hood • geoLOGIC systems ltd. time ago, this technology simply wasn’t vital and thriving scientific society in the [email protected] Tel: (403) 262-1992 available to the average person, or it years to come. A big thank you goes out didn’t exist at all. A few years ago, it would to the volunteers and sponsors who made PROGRAM DIRECTOR have been unthinkable to be able to carry this event possible. Brett Norris • TransGlobe Energy Corp. [email protected] Tel: (403) 264-9896 such a powerful device in your pocket or purse, but now its commonplace. Change Speaking of volunteering, if you’ve ever ASSISTANT PROGRAM DIRECTOR happens quickly, and with change comes thought about volunteering for the CSPG, Jon Noad • Murphy Oil Corporation the need to learn new skills, rethink old but didn’t know what might be involved or [email protected] Tel: (403) 294-8829 ideas, and adapt. So what does that mean who to contact, wonder no further! As SERVICES DIRECTOR for the CSPG? part of the Volunteer Management System Chris Seibel • Nexen Inc. initiative, committee chairs are now being [email protected] Tel: (403) 699-4558 By now, everyone has heard about the asked on a regular basis to provide a ASSISTANT SERVICES DIRECTOR demographic shift that our industry is going list of volunteer opportunities that are Proudly brought to you Michelle Hawke • Apache Canada Ltd. through, as the baby boomers ready for currently available within their committee, [email protected] Tel: (403) 261-1200 retirement over the next decade or so, along with a brief job description, so by Professionals in Geoscience and Engineering and the large influx of recent graduates that potential volunteers can make an COMMUNICATIONS DIRECTOR Jim Barclay • ConocoPhillips Canada establish their careers. As a volunteer- informed decision about whether the [email protected] Tel: (403) 532-3889 based professional organization, the CSPG’s role is right for them before making a activities should always be a direct reflection commitment. The Volunteer Management ASSISTANT COMMUNICATIONS DIRECTOR of the professional interests, aspirations and System initiative was brought about to Stephen Hubbard • University of Calgary [email protected] Tel: (403) 220-6236 needs of the membership. The only way rectify a communication disconnect that to ensure that we accomplish that goal is had existed between CSPG support staff, OUTREACH DIRECTOR to have a representative population of the committees, and the general membership Steve Dryer • Whiskey Jack Resources Inc. membership actively involved in running at large, regarding what roles were available [email protected] Tel: (403) 969-2292 the CSPG. And right now, that means and how to go about volunteering for ASSISTANT OUTREACH DIRECTOR encouraging more young geoscientists to them. VMS will act as a communications we make a difference www.apegga.org Simon Haynes • Statoil Canada Ltd. become involved, bringing with them fresh facilitator between these groups, and [email protected] Tel: (403) 724-0364 ideas and perspectives, and helping to will hopefully result in faster and better EXECUTIVE DIRECTOR ensure that the Society remains relevant to volunteer placement. These opportunities Lis Bjeld • CSPG all members at all career stages. (Continued on page 7...) [email protected] Tel: (403) 264-5610
RESERVOIR ISSUE 10 • NOVEMBER 2011 5 Since 1927...
Safer, Broader, Better
CGGVeritas provides powerful broadband solutions for both Marine and Land through the combination of equipment, unique acquisition techniques and imaging technology (patents pending). Our BroadSeis™ and EmphaSeis™ solutions provide a clearer and finer image of your reservoir.
Safer, Broader, Better Get to Know Our SeisAble Benefits cggveritas.com/broadband Since 1927... (...Continued from page 5) on the website in the near future, and are being posted online, so if you are please consider nominating an outstanding interested in becoming more involved with colleague for recognition. your CSPG, please have a look and see if your ideal role is waiting for you. As for future initiatives, the Member Services Directors are in the process In other news, the Member Services of putting together another Membership directors, along with the Awards Survey. The last survey was conducted in Committee Chairs and the Past President, 2009 and provided a wealth of information have been busy reviewing the CSPG that has helped to guide the direction Awards. Awards are important to the of the CSPG, but as was noted at the CSPG – they are the vehicle through which beginning of this column, change happens we honour outstanding contributions quickly and constantly, and it is important to advancing petroleum geoscience to keep up! So when the survey comes CORPORATE knowledge, and show appreciation for out, please take the time to participate SPONSORS the valuable efforts of our volunteers. It and make your voice heard. We are was decided that the slate of awards that looking forward to hearing from you. DIAMOND we currently have generally does a good IHS job of recognizing excellence within the GEOLOGIC SYSTEMS LTD. membership, but could use some minor SCHLUMBERGER CANADA LTD. tweaking and clarification with regards to eligibility and selection criteria. It was also PLATINUM decided that we could do a better job of AGAT LABORATORIES providing information on the history of CENOVUS the awards and the people for whom they CONOCOPHILLIPS are named. So, look for the revamped descriptions and criteria for the awards NEXEN INC. TALISMAN ENERGY POGGENPOHL
GOLD CSPG Professional APEGGA CSPG EDUCATIONAL TRUST FUND Development DEVON CANADA ENCANA Your best resource for Petroleum Education IMPERIAL OIL SHELL WEATHERFORD LABORATORIES Interested in running a
SILVER Short Course or Field Seminar? ARC FINANCIAL CORPORATION Safer, Broader, Better JEWELSUITE CSPG is looking for Geoscientist Professionals to instruct:
ROXAR short courses CGGVeritas provides powerful broadband solutions for both Marine and Land through the combination field seminars BRONZE of equipment, unique acquisition techniques and imaging technology (patents pending). Our BroadSeis™ webinars BLUEBACK RESERVOIR and EmphaSeis™ solutions provide a clearer and finer image of your reservoir. PARADIGM If you are interested in running GEOVARIANCES a course, seminar, webinar or CSEG FOUNDATION are looking for additional RPS BOYD PETROSEARCH information please contact:
HALLIBURTON ENERGY SERVICES AILEEN LOZIE SUNCOR ENERGY [email protected] SUNDOG PRINTING Safer, Broader, Better TUCKER WIRELINE SERVICES Canada’s Energy Geoscientists Get to Know Our SeisAble Benefits cggveritas.com/broadband AS OF OCTOBER 10, 2011 RESERVOIR ISSUE 10 • NOVEMBER 2011 7 They can copy us. They just can’t be us. If imitation is the sincerest form of flattery, we’re one flattered group. Drawing on a quarter century of oil and gas experience, geoLOGIC continues to be the market leader in data, software solutions and support. And while we lead the way, our competitors desperately create parity products, sometimes years after us. For details on how geoLOGIC leads the way, visit www.geoLOGIC.com/leader
Leading the way with customer-driven data, integrated software and services for your upstream decision-making needs. geoSCOUT | gDC | petroCUBE at www.geoLOGIC.com TECHNICAL LUNCHEONS NOVEMBER LUNCHEON Webcasts sponsored by
Please check the CSPG website periodically Suter obtained Bachelor’s degrees in chemistry Geological for the abstract for this Technical Luncheon. and geology, and a Master’s degree in geology from the University of Texas at Austin, followed characterization BIOGRAPHY by a Ph.D. in geology from Louisiana State John R. Suter is a Principal Stratigrapher with University. John’s early geologic experience was of the caprock the Oil Sands Business Unit of ConocoPhillips as a marine geologist working the Quaternary Canada. He is primarily responsible for the of the northern Gulf of Mexico for the USGS interval at regional assessment and interpretation of oil and the Louisiana Geological Survey. From 1981 sands deposits within the Athabasca Basin, as to 1988, working with high-resolution seismic Surmont well as coordinating and conducting technical and vibracore data, he mapped and developed studies on individual properties. Prior to coming sequence stratigraphic models for incised SPEAKER to the Oil Sands, Suter toiled in the Subsurface valleys, shelf-phase and shelf-margin deltas, and John Suter Technology Division of ConocoPhillips in shelf and shoreline deposits. While in Louisiana, Professor of Geology Houston, TX. His primary expertise is in clastic Suter was deeply involved in coastal geology University of Toronto facies and sequence stratigraphy. John has issues concerning the Mississippi Delta and over thirty years of domestic and international associated shorelines, including shoreline erosion 11: 30 am experience, having worked projects involving and hurricane impact assessment. During this Tuesday, November 8, 2011 source, seal, and reservoir for conventional time he served as the North American Vice- Calgary, TELUS Convention Centre and non-conventional deposits at exploration, President of the INQUA Shoreline commission, Calgary, Alberta appraisal, development, and production scales and represented the United States on several in multiple basins. Other than Oil Sands, he UNESCO-IGCP sea level and coastal evolution Please note: The cut-off date for ticket sales has most recently worked in the North Sea, projects. Suter joined Exxon Production is 1:00 pm, Thursday, November 3, 2011. eastern Greenland, Canadian Arctic, Lower Research in 1988 and Conoco, Inc. in 1994, and CSPG Member Ticket Price: $42.00 + GST. 48 USA, and Venezuela. He has published was “merged” into ConocoPhillips in 2002. He Non-Member Ticket Price: $45.00 + GST. numerous papers, organized multiple research transferred to ConocoPhillips Canada in 2009. conferences, and has taught a variety of short He was named an AAPG Distinguished Lecturer Each CSPG Technical Luncheon is 1 APEGGA course, field schools, and core workshops, both for 2001-2002 and was the SEPM Councilor for PDH credit. Tickets may be purchased online at internally, for various national oil companies, Research in 2002-2004. www.cspg.org. and for scientific societies and universities.
Tuesday, December 6, 2011 They can copy us. They just can’t be us. Social Networking 10:30 – 11:30 am Technical Luncheon 11:30 – 1:00 pm If imitation is the sincerest form of flattery, we’re one flattered group. Drawing on a quarter century of oil and gas experience, geoLOGIC continues geolo to be the market leader in data, software solutions and support. And while we lead the way, our competitors desperately create parity products, sometimes years after us. For details on how geoLOGIC leads the way, visit www.geoLOGIC.com/leader
Book your Corporate Table TODAY
Leading the way with customer-driven data, integrated software This is a sellout social event that and services for your upstream decision-making needs. you don’t want to miss! Tickets are available at www.CSPG.org geoSCOUT | gDC | petroCUBE at www.geoLOGIC.com Canada’s Energy Geoscientists
RESERVOIR ISSUE 10 • NOVEMBER 2011 9 TECHNICAL LUNCHEONS NOVEMBER LUNCHEON Webcasts sponsored by
Please note: The cut-off date for ticket sales The definition of two regional aquifers and Geostatistical is 1:00 pm, Thursday, November 23, 2011. one aquitard emerged from the application CSPG Member Ticket Price: $42.00 + GST. the aquifer-aquitard cut-off criteria. The rendering of Non-Member Ticket Price: $45.00 + GST. lowermost unit is correlative to sandstone of the Haynes Member (Demchuk and the architecture Each CSPG Technical Luncheon is 1 APEGGA Hills, 1991) and we refer to it as the PDH credit. Tickets may be purchased online Haynes aquifer. Overlying the Haynes of hydro- at www.cspg.org. aquifer is a regionally extensive mudstone- and siltstone-dominated unit correlative stratigraphic The Paskapoo Formation is one of the to the Lacombe Member (Demchuk and largest and most intensely used bedrock Hills, 1991), which we refer to as the units within aquifer systems in Alberta, yet little is Lacombe aquitard. The uppermost unit known about the internal architecture is a sand-dominated complex, which the Paskapoo of the major hydrostratigraphic units we herein name the Sunchild aquifer. contained within. This study applies a Planimetric maps have been constructed Formation, computer-based geostatistical analysis of showing approximate lateral distributions more than 35,000 borehole logs from the and structural and erosional surfaces of Alberta petroleum and water well industries to each of these hydrostratigraphic units. define the internal geometry of sandstone Recently collected airborne resistivity SPEAKER bodies that can be considered regional data helped to both define and confirm Laurence Andriashek aquifers. Sand abundance was determined the subcrop geometries of each of these ERCB by cut-offs on digital gamma-ray logs units. and from an expert-based classification 11: 30 am of sandiness from drillers’ lithologs, The combination of isopach and Tuesday, November 28, 2011 and averaged in a series of 25 metre- structural surface maps for each of the Calgary, TELUS Convention Centre thick slices extending through 750 m of hydrostratigraphic units provides insights Calgary, Alberta sediment within the Paskapoo Formation. into the tectonic history and evolution of Analysis of this set of three-dimensional sedimentation of the Paskapoo Formation. sand data reveals information on the The relatively uniformly thick but relative abundance of sand found in splay deformed surface of the Haynes aquifer and channel depositional settings. indicates deposition prior to a reactivated phase of mountain-building to the west. A 3D variogram analysis of the sand-slice The Lacombe aquitard, which forms the data enabled the construction of a regional bulk of the Paskapoo Formation occupies 3D model of the subsurface distribution of the foreland accommodation space sand and mud in the Paskapoo Formation. created during maximum tectonic activity. An analysis of the thickness of sand An apparent vertical propagation of sand intervals in boreholes, and a workflow from the Haynes Member upward into using minimodels, were used to determine the Lacombe Member along the eastern the geometry of channel and splay sand edge of the foothills possibly marks the bodies at a local scale within the Paskapoo focus of sedimentation eastward from the Formation. To delineate those parts of rising Cordilllera. The undeformed upper the sand distribution model that would Sunchild aquifer onlaps the Lacombe constitute an aquifer, we first derived aquitard and extends as a wedge east into ♦ horizontal and vertical permeabilities the plains. Subsequent erosion during the from the minimodels, and determined that mid to late Paleogene results in all three ♦ sand bodies in the Paskapoo Formation units subcropping beneath a Quaternary ♦ likely become hydraulically connected sedimentary cover. in horizontal and vertical dimensions ♦ when sand abundances exceed 55% of the volume. Applying the >55% sand abundance cut-off as the criteria that defines an aquifer, we tested our model to see what shape and volume of rock was represented by this sand-abundance value. We similarly determined that vertical permeability is significantly reduced when sand abundances fall below 35%, and used this criterion to define our clay, or aquitard, units.
10 RESERVOIR ISSUE 10 • NOVEMBER 2011 TECHNICAL LUNCHEONS DECEMBER LUNCHEON Webcasts sponsored by
shutting down the oil sands industry, but and delivered a report in June 2011 Environmental preventing the building of pipelines to serve containing twenty recommendations, most Canada’s export market. of them centred on the establishment of management of an independent Environmental Monitoring In the summer of 2010, protests of a similar Commission. The government appears to the Alberta oil nature were accompanied by the release of have accepted these recommendations, but a disturbing research report by respected the current state of political uncertainty in sands: new federal environmentalist David Schindler (University Alberta (as of late September 2011) has so far of Alberta) demonstrating that water prevented any specific government actions to pollution studies being carried out at the implement the recommendations. and provincial behest of the Government of Alberta and the oil sands industry were not accurately Environment Canada scientists were initiatives reporting the presence of pollutants that instructed by the Minister in December may be responsible for deformities in the 2010 to start developing a science plan for a SPEAKER freshwater fish population. There were also full-scale environmental monitoring program Andrew D. Miall, FRSC continuing fears about unusual cancers in the to deal with air, water, groundwater, and Professor of Geology, University of Toronto First Nations population at Fort Chipewyan, all other related environmental issues. The which is downstream from the oil sands details of this plan were released by current Tuesday, December 6, 2011 development area. Environment Minister, The Hon. Peter Kent, 10:30 am, Annual Holiday Social presented in two stages, in March and in July 2011. It by geoLOGIC systems ltd. In response to these concerns, federal remains to be determined how the federal 11: 30 am, Technical Luncheon presentation Environment Minister, The Hon. Jim Prentice and provincial governments integrate their Calgary TELUS Convention Centre established the Oil Sands Advisory Panel in environmental work. While the Alberta Calgary, Alberta October 2010. The completion of studies by government is responsible for managing the this panel coincided with the release of an environmental impact of the oil sands projects, Join us for this year’s CSPG Annual Holiday independent report on the “Environmental the federal government has responsibility Social. This is a sellout social event that you don’t and health impacts of Canada’s oil sands for the health and welfare of Aboriginal want to miss. Buy your tickets early! industry” by the Royal Society of Canada communities, for the health of Canada’s in December 2010. Both the federal study fisheries, and for trans-boundary pollution Please note: The cut-off date for ticket sales and the RSC study concluded that many of issues, such as the air pollution thought to be is 1:00 pm, Wednesday, November 30, 2011. the environmental concerns being voiced by causing acid-rain problems in Saskatchewan. CSPG Member Ticket Price: $45.00 + GST. activists were overstated, but that considerable At this time, Alberta does not have the Non-Member Ticket Price: $45.00 + GST. further research was necessary, that existing fully trained scientists and well-equipped regulation and management methods were laboratories that still exist at Environment Each CSPG Technical Luncheon is 1 APEGGA inadequate, and that much more extensive Canada (despite years of cutbacks), and PDH credit. Tickets may be purchased online at and more sophisticated scientific monitoring so a significant degree of federal-provincial www.cspg.org. of the industry was required. cooperation will be required to answer the legitimate environmental concerns. There have been repeated environmental In January 2011, Alberta Environment protests in the US and Europe about “Canada’s Minister, The Hon. Rob Renner established Studies indicate that air and water pollution dirty oil.” Recent protests in Washington the Alberta Environmental Monitoring can be managed effectively as long as the and elsewhere have been aimed at not only Panel, which built on these earlier studies (Continued on page 12...)
Putting rock theory into practice
In Situ Oil Sands; Oil Carbonates; Unconventional Tight Oil & Gas; Conventional Oil & Gas; and more. Discover how we can transform your seismic to success – providing greater understanding of your reservoir. oilsandsimaging.com | 400, 736-8 Ave SW Calgary | 1.403.237.6686 Advanced Reservoir Characterization
RESERVOIR ISSUE 10 • NOVEMBER 2011 11 (...Continued from page 11) necessary, properly planned field sampling is carried out first. It is the poor quality of the initial field work, plus the lack of high-quality Petrel 2011 analytical laboratory standards that has, to E&P SOFTWARE PLATFORM this point, inhibited proper environmental management. The massive disruption caused by surface mining can be managed by appropriate restoration work, but up to this time, investment in restoration has been inadequate. Increasing efficiencies in energy and water Deliver confident reserves estimates use are steadily reducing the environmental footprint of oil sands projects, although the total footprint continues to expand with each new project. Suncor has developed a new treatment protocol for the mine tailings that promises to considerably speed up the process of drying out and restoring tailings ponds. Meanwhile, considerable research
11-IS-0381 is still required to understand the possible environmental implications of new in-situ extraction procedures. Schlumberger.
2011 Contrary to claims by the protesters in © Washington and elsewhere, effective environmental management by industry and government can be achieved, but industry Schlumberger.
of spokespersons have made it clear that they want proper direction and leadership.
are marks are Millions of dollars are already being spent in
Impact this area, but it has not been spent well, and it is to be hoped, with the appropriate political response to the two major government
and Measurable and panel studies and the RSC report, that
Petrel this world-class energy resource can be managed in a way that will place Alberta and Canada in a leadership position with regard Test the limits of all your key parameters; accurately assess to the administration of one of the world’s remaining large fossil-fuel energy resources. structural complexity, stratigraphic features, fluid contacts, BIOGRAPHY and property distributions—in one application. Andrew D. Miall, B.Sc., Ph.D., D.Sc., FRSC, is Professor of Geology at the University of Toronto, Deliver confident decisions—with Petrel. and the inaugural incumbent of the Gordon Stollery Chair in Basin Analysis and Petroleum Geology. He was educated in London (UK) and Ottawa, and has worked for Shell Canada and J. C. Sproule and Associates. From 1972-1979 he was a Research Scientist with the Geological Survey of Canada, Calgary, carrying out regional basin studies in 403-294-4300 the Arctic Islands. He is the holder of a Higher www.slb.com/petrel2011 Doctorate (D.Sc.) from University of London and an Honorary Doctorate from the University of Global Expertise | Innovative Technology | Measurable Impact Pretoria. He was inducted into the Royal Society of Canada in 1995 and has served terms as Vice-President (2005-2007) and President (2007- 2009) of the Academy of Science. Andrew is the author of Principles of Sedimentary Basin Analysis, The Geology of Fluvial Deposits, and The Geology of Stratigraphic Sequences. He is the co-author (with Nick Eyles) of Canada Rocks: the Geologic Journey. He is currently devoting much of his time to speaking and writing about issues at the nexus of energy and the environment. He was a member of the federal Oil Sands Advisory Panel (October- December 2010) and the Alberta Environmental Monitoring Panel (January-June 2011) .
12 RESERVOIR ISSUE 10 • NOVEMBER 2011 DIVISION TALKS INTERNATIONAL DIVISION Sponsored by The Mogollon Formation of the Talara Basin in northern Peru; a potential resource play in an established basin
SPEAKER Jeff Tooth Exploration Advisor, KNOC The Mogollon Formation of the Talara Basin, Northern Peru: a Potential Resource Play in an Established Basin. 12:00 Noon Jeff Tooth, KNOC GTRC Calgary and Mario Chavez, SAVIA Peru, S.A. Production from all Formations in the Pena Wednesday November 9th, 2011 Negra Field (2011) . Nexen Plus 15 Conference Centre Nexen Annex Building layers is underway. Sedimentological studies wellsite geology in South America and the Middle 7th Ave. and 7th Street SW of outcrop and subsurface facies have East before moving to Canada where he joined Calgary, Alberta determined that the Mogollon Formation Diamond Shamrock, later Maxus and Kerr- belongs to a submarine canyon system, where McGee, as a geologist. Over the next 14 years, KNOC has a 50% working interest in Savia the preferential direction of sedimentation is he held various positions within the company S.A. Peru. The company’s assets located both from north to south, with a secondary east including exploration manager and international onshore and offshore in northwest Peru, to west source. Offshore, the Mogollon new ventures lead. He ultimately became Vice consist of one operational block (Block Z-2B) is present from the Máncora area in the President of Kerr-McGee Canada. and an additional ten exploration blocks. As north to Sechura in the south, covering shown in Figure 1, there are six fields on approximately ninety square kilometres. Jeff joined Husky Oil as VP Exploration, moved to production within Block Z-2B producing JM Huber Canada as Vice President Exploration, 15,000 bopd with cumulative production of The Mogollon reservoir has strong then moving into the role of President to lead 341 MMstb as of May 2011. depositional and structural controls that the sale of the company. After a career with influence reservoir quality and productivity. major companies, Jeff joined with colleagues OOIP for Block Z-2B was recently estimated start several small independent oil companies, to be at 3.836 billion barrels and is the Structurally, the Pena Negra field is a complex including Canstar Exploration and Trigger subject of further petrophysical study (Jan. fault-bounded anticline with the axis aligned Resources. He joined KNOC GTRC in January 2011) . The Pena Negra field, which includes NE-SW. Internal normal faults with throws 2011 as Exploration Advisor for International both onshore and offshore blocks, is the of several hundred feet divide the field Projects. largest field in Block Z-2B. The Mogollon into distinct pressure regimes, which are Formation is the major productive unit in currently being studied for water-flooding There is no charge. Please bring your lunch. The the field with estimated reserves of 763 and other pressure maintenance schemes. facilities for the talk are provided complimentary [MMBO] and a RF of 10%. This is a world- The stresses caused by the active subduction of Nexen, coffee by IHS, and refreshments by class reservoir from a storage capacity point of the Pacific plate greatly influence the Geochemtech Inc. For further information or of view but the relatively low recovery factor orientation of the proposed horizontal wells if you would like to give a talk, please contact is a result of the poor primary permeability as does the bedding inclination within fault Bob Potter at (403) 863-9738 or ropotter@ in the producing zone. This reservoir is blocks. A pilot program of three long-reach telusplanet.net or Trent Rehill at (403) 606 - 6717 currently being modeled and preliminary wells is proposed to test improved primary or [email protected]. Or visit our new Face results are presented for a horizontal drilling recovery methods. Book page (“CSPG International Division”). program, which forms part of the future recovery optimization scheme. Comparisons with North American fields and their developments are made as working The Mogollon reservoir has a number of geological and engineering models for the productive layers within the thick sand Pena Negra field. package, which range from 600 to 1,400 feet in the Pena Negra field. Presently, several BIOGRAPHY informal layers are recognized, and reservoir Jeff Tooth graduated with B.Sc. Honors Geology level, integrated geological, petrophysical, and M.Sc. Petrology from QMC, University of and engineering mapping of these sand London. He started his career doing field and
RESERVOIR ISSUE 10 • NOVEMBER 2011 13 DIVISION TALKS GEOMODELING DIVISION Sponsored by
has expanded beyond just as an input like seismic, outcrop analogue, production Determining the to the simulator. Key deliverables now data, etc. into reservoir modeling work. include resource estimate, well planning, truth from field development planning, and uncertainty The key to incorporating more geology into analysis and management. Increased reservoir models is by interpolating reservoir circumstantial popularity has led to development of newer properties fieldwide with an appropriate tools for reservoir modeling work and has facies model(s). Facies modeling is the means evidence: also brought newer challenges. One of by which critical reservoir architecture the critical challenges we face in reservoir and heterogeneity can be captured in a techniques for modeling work today is the incorporation geomodel. This talk will use Petrel (publicly of more geology into geomodels. This is available geomodeling software) to illustrate incorporating especially true of geomodels designed to some of the techniques that can be used to assess reservoir behavior and performance create complex reservoir architectures for and preserving in the simulator or uncertainties different depositional systems. Additional associated with reservoir architecture and data requirements will also be discussed. more geological heterogeneities. Reasons for this range from Advantages and limitations of the methods the difficulty of doing so, time constraints, will be discussed. Issues of layering and information and improper definition of modeling objective, uncertainty analysis and management will data in reservoir and skill level of the modeler. also be raised. Classical indicator simulation techniques BIOGRAPHY models cannot produce realistic geological outcome Seyi Fatoke obtained his B.Sc. and M.Sc. in that shows genetic linkage between facies. geology from Obafemi Awolowo University, SPEAKER Such models cannot adequately represent Nigeria and a Ph.D. in geology from the University Oluwaseyi Fatoke, Ph.D., P.Geol. the complex nature of the facies geometry of Houston. He started his oil and gas career in ConocoPhillips Canada and architecture, and the dynamic behavior 1992 as a Sedimentologist involved in core and in the modeled reservoir is therefore not sidewall samples description and interpretation. 12:00 Noon a highly confident assessment of potential He joined Shell Nigeria in 1994 as a production Wednesday, November 16, 2011 geological reality but rather a “virtual geologist responsible for well planning, well TBD (Check the CSPG website reality” that has no impact on fluid flow. operations, and field development study and for updated information.) To better assess reservoir uncertainty, planning for several fields and wells in the Niger plan targeted wells, assess reservoir Delta. He transferred to Shell Research Centre, Reservoir modeling (geomodeling) is behavior and performance, as well as Rijswijk, The Netherlands in 1997, where he gaining more acceptance and popularity predict hydrocarbon recovery during field was involved in reservoir modeling for Niger currently amongst geologists compared to development planning, reservoir models Delta and North Sea fields, development of the 1980s and ‘90s when it was the remit need to capture appropriate geological workflows and methods for modeling inclined/ of specialized geologists. The field grew out information at as many scales as possible growth faults as well as methodology for of the recognition that more oil and gas can within the limits of the chosen grid uncertainty analysis and management. He be extracted economically from existing resolution. The basic data for reservoir continued with reservoir modeling work in reservoirs if the geology can be quantified modeling work is structure and well data. Shell Nigeria and Shell Deepwater Centre in adequately for reservoir simulation Well data is at best limited and often Houston as one of the specialists involved in purposes. However, the deliverables biased. There is, therefore, the need to the development of modeling techniques for expected from reservoir modeling work incorporate additional circumstantial data incorporating seismic and outcrop data in reservoir modeling workflow. Since 2008, he has been a geomodeling specialist in ConocoPhillips Canada, providing reservoir modeling solutions for conventional and unconventional reservoirs, as well as coaching and mentoring geomodelers.
INFORMATION There is no charge for the Division talk and we welcome non-members of the CSPG. Please bring your lunch. For details or to present a talk in the future, please contact Weishan Ren at (403) 724-0325, e-mail: [email protected].
14 RESERVOIR ISSUE 10 • NOVEMBER 2011 DIVISION TALKS PALEONTOLOGY DIVISION Sponsored by
hypothesis is as likely as a dozen others. four years of undergraduate and two years of How to rescue There are potential solutions. Comparative graduate work at the University of Alberta, anatomy and embryology of living jawed he has been under the caring supervision of early vertebrate and jawless vertebrates offer a wealth Philip Currie, invertebrate zoologist Rich Palmer, of information to identify evolutionarily developmental biologist Sally Leys, ichthyologist evolution from shared, but extensively modified, structures Alison Murray, and marine ecologist Richard among these animals. This information feeds Strathmann. In their labs, he was involved in long-dead into interpretation of fossils of extinct various projects, including anatomy of early jawless vertebrates, which in turn maps vertebrates, systematics of tyrannosaurs, soft ancestors distribution of the character across the tissues in ankylosaurs, biomechanics of marine tree of vertebrates. I take this approach invertebrate larvae, ecology of intertidal snails, SPEAKER using the deep-sea dwelling, slimy hagfishes and development of fishes. He has spent the Tetsuto Miyashita as a model. The greatest challenge lying last two field seasons leading a team of students University of Alberta Graduate Student ahead is in getting the hagfishes to spawn and collecting Daspletosaurus from the Milk in captivity so that their development can River Natural Area. 7:30 PM be documented. I will introduce efforts Friday, January 20th, 2012 undertaken at a marine station on the West INFORMATION: Mount Royal University, Room B108 Coast to obtain elusive hagfish embryos. This event is jointly presented by the Alberta Palaeontological Society, Mount Royal The origin and early evolution of vertebrates BIOGRAPHY University, and the CSPG Palaeontology is undoubtedly one of the final frontiers Tetsuto Miyashita is M.Sc. student at the Division. For details or to present a talk in in vertebrate paleontology. The past University of Alberta. A book by the prominent the future please contact CSPG Paleo Division decade has seen several breakthroughs in Canadian dinosaur paleontologist Philip Currie Chair Philip Benham at 403-691-3343 or APS the ancestry of vertebrates and that of – a Christmas gift from parents when he Coordinator Harold Whittaker at 403-286- jawed vertebrates. Curiously, though, each was ten – sparked his dream of becoming 0349 or contact programs@albertapaleo. of these major discoveries provides little a paleontologist. He moved to Drumheller, org. Visit the APS website for confirmation of answer to the lingering questions about Alberta, at age 16 to volunteer for Royal Tyrrell event times and upcoming speakers: http:// the ancestries of these animals, but seems Museum of Palaeontology. Subsequently, during www.albertapaleo.org/ to only complicate the questions further. For example, it is now a consensus that sea squirts, not amphioxus, are the closest relatives of vertebrates. This significant Advisors to the Resource Sector... finding knocks off amphioxus from the Leading with Ideas! model of the vertebrate ancestor. That is, it is unlikely that the first vertebrate looked like an amphioxus. But how is it possible to reconstruct the vertebrate ancestor using fish and sea squirts, two animals with such Providing fully-integrated geoscience services since 1987 disparate body plans? » Multi-Client Projects » Well Completions & Frac Database A major obstacle to the origin and early » GIS Mapping / Data evolution of vertebrates is the fact that » Information Products too few vertebrate lineages survived to » Geoscience Consulting » Software today. Aside from unhelpful, dissimilar relatives such as sea squirts, a huge gap Visit Us at exists within vertebrates between the CURC 2011 jawed-vertebrate lineage and the hagfish- BOOTH lamprey lineage. This gap is only sparsely filled in with rare, exceptional fossils of #414 extinct jawless vertebrates. But these fossil jawless vertebrates suggest that the missing morphological diversity could equal the morphological diversity of living jawed vertebrates! Understandably, Canadian finding a place for each of these lineages in a phylogenetic tree (so that the tree Discovery Ltd. predicts an evolutionary scenario) is not an easy task: the diversity is so great that T 403.269.3644 every single combination of the lineages www.canadiandiscovery.com presents a number of improbable character distributions, and one phylogenetic
RESERVOIR ISSUE 10 • NOVEMBER 2011 15
ROCK SHOP
FARHAT HYDERI, P.Geol. President / CEO
3300, 205 - 5th Ave SW Calgary, AB T2P 2V7 Tel 403 726 0666 SABLE PETROLEUM Fax 403 264 1262 CONSULTANTS INC. Cell 403 819 2516 Domestic and International Shale Gas/Oil Shales WELLSITE GEOLOGICAL [email protected] Conventional Vertical and Horizontal Wells Coal Bed Methane SUPERVISION SABLECONSULTANTS.COM Oil Sands - SAGD/Coring Programs Project Supervision Conventional Wells Heavy Oil/Oil Sands SAGD Horizontal Email: [email protected] Tel: (403) 262-9229 Fax: (403) 265-0377 Coring Programs Coal Bed Methane Project Supervision Website: www.progeoconsultants.com
WE ARE HIRING BOTH JUNIOR AND EXPERIENCED
MCLEAY GEOLOGICAL CONVENTIONAL AND UNCONVENTIONAL WELLSITE GEOLOGICAL SUPERVISION SERVING THE CANADIAN PETROLEUM INDUSTRY FOR OVER 25 YEARS
Global Leaders in Wellsite Geology Serving the petroleum industry for over 25 years
II Conventional Vertical / Horizontal Wells
II Unconventional Heavy Oil / CBM Wells
II International WSG / Operations Geology 17084
(403) 263-0449 www.rpsgroup.com/energy
RockWell Consulting We are hiring... Quad Operations Limited SPECIALIZED IN GEOLOGICAL WELLSITE SUPERVISION - Africa AND CORE ANALYSIS - GOM World Leaders in Wellsite Geology petrographical & sedimentological descriptions for samples (thin section - fluid inclusion studies) - Europe conventional vertical/horizontal wells operations geology - Middle East - South America our best friend and most valuable partner is our client Stephan C. Dragomir president [email protected] www.geok2.com - phone: 403.831.9941 - [email protected] UNDERSTANDING RESERVES AND RESOURCES Part 3 – Estimating Reserves | By Colin Yeo, P.Geol. and Lionel Derochie, P.Eng.
So far, we have addressed the Petroleum Those accumulations that do not yield a • analogous pools or wells, Resources Management System and been positive after-tax net present value are • volumetric calculation, focused on distinguishing between reserves deemed to be uneconomic and classified as • production decline analysis, and resources. Now we will turn our contingent resource. • material balance, attention to that part of the resource • statistical. spectrum that has a profound impact on any ESTIMATING RESERVE SIZE oil and gas company, that being reserves. There are five methods for estimating the The analogous pool methodology is based on As geoscientists, we consider reserves size of a hydrocarbon accumulation: (Continued on page 18...) to be volumes of crude oil, natural gas and associated by-products but it is the cash flow over time generated from the sale of these reserves that is crucial to company management, lenders and investors. Don’t forget We won’t go into great detail about the mechanics of generating a cash-flow forecast (please see the Reservoir series “Petroleum to vote! Economics for Geologists” for details) but we will address the many considerations that must be taken into account when forecasting CSPG Executive Committee 2012 a cash flow stream.
Before leaving resources to focus on reserves, we should remember that reserves are finite volumes of hydrocarbons that Polls open on will be depleted to generate a cash flow. The accuracy of the reserve estimate is a function of where we are in the life cycle of Tuesday, November 1 the producing entity. The natural progression is to produce the proven reserve, convert the contingent resource, and discover the prospective resource. Running for Vice-President:
DISCOUNTED CASH FLOW METHODOLOGY Paul MacKay Bruce Shultz, Shale Exploration and Adjunct Professor, Huron Energy Corp By definition, reserves must be economic and University of Calgary “being economic” means that the net present value of the cash flow stream generated from the sale of the hydrocarbon volume from the accumulation must be greater than zero. Annual production forecasts are linked with estimated product prices to generate Running for Assistant Finance Director: an annual gross revenue forecast. Crown or Lessor royalties as well as gross overriding David Clyde Samantha Etherington royalties are deducted from the revenue MJ Systems CNRL stream. Operating costs are also deducted. Capital costs required to support predicted production (wells, recompletions, facilities, etc.) are also subtracted from the revenue stream. The residual is the before-tax annual You may also exercise your vote on proposed cash flow. Calculating and subtracting federal amended bylaws commencing November 1. and provincial income tax generates an after- tax cash flow. The future annual after-tax cash flow is discounted and summed up to the point where the property becomes Voting members will be sent an email with instructions uneconomic and, as such, an after-tax net for online voting on October 31. present value is determined. The sum of the annually produced volumes is the reserve.
RESERVOIR ISSUE 10 • NOVEMBER 2011 17 (...Continued from page 17) produced and an associated porosity value Material balance is an estimation technique the assumption that those accumulations to that permeability is determined from the that utilizes reservoir pressures that that have characteristics and attributes crossplot. Correlative well log porosity and are measured as fluids are progressively in common will show similar production a maximum water saturation (often defined withdrawn from the reservoir. A common behaviour. These pools may have been by relative permeability measurements) technique for gas wells is plotting P/Z deposited at the same time by common will define net pay thickness from well logs. (the value of pressure divided by the gas processes; have the same constituent Pressure, temperature, gas compressibility, compressibility at that pressure) against the mineralogy, grain size, and pore structure; and formation volume factor can be directly volume of cumulative gas produced. The have undergone similar diagenetic histories; measured or inferred from offset well data. best-fit straight-line trend through the P/Z and received the same petroleum charge. Drainage area and pool size is determined data points intersects with the cumulative Such similarities would imply that areal from mapping, well log correlations, and produced gas volume axis (pressure = 0) extent, initial volumes, initial productivity, facies analysis. and establishes the original-gas-in-place of decline rates, recovery factor, and the accumulation. producing hydrocarbon-water ratios will Production decline analysis is the preferred be similar. This technique is useful if other method for determining reserves but And then there is the statistical method, reserve data is not available or production is only possible after a well has been which is commonly used in resource- is in early stages. It also provides a good on production for a reasonable length type plays such as CBM, shallow gas, and reality check against the other methods. of time and a decline trend has been shale gas. With a large number of wells established. Production decline occurs producing within a small geographical area, Volumetric calculations of original- due to pressure depletion or replacement a mean or average well can be generated hydrocarbon-in-place are made by by another fluid as hydrocarbons are by time-normalizing actual production and determining the pore volume available removed from the reservoir. The trend of comparing the variance between wells. to hold hydrocarbons using geological, declining production is extrapolated to an If the standard deviation is low, reserves petrophysical, and engineering data. economic limit (operating cash flow = 0) from the type well can be applied to Several factors enter into this calculation. and this trend is used to forecast future each well drilled without the necessity of First, net pay cutoffs must be defined production that provides the basis for an evaluating each well individually. by using regionally appropriate and economic evaluation. Curve fitting (best- formation-specific porosity-permeability fit line through historical production) is UNCERTAINTY IN RESERVE crossplots from core data. A minimum the most common technique but type EVALUATION permeability value is chosen based on curve matching has application in low Within each of the five estimation the characteristics of the fluid being permeability reservoirs. techniques above, there is uncertainty
ROCK SHOP
section township
1413 15 yevrus 16 nip 34333231 35 36
101112 9 2627282930 25 Strip Log Log Manager Jocelyn Lampron, P. Geol. 765 8 2322212019 24 President & CEO HorizontalCD Log Log Viewer 234 BA 18 17 16 15 14 13 Wellsite Geological Supervision ph: 403.266.3132 lsdMud Log Log Analysis *Conventional Wells-Heavy Oil/SAGD cell: 403.818.8549 CD 1110987 12 N *Coal Bed Methane Wells www.hopewellpetroleum.com BA CD *Domestic & International Supervision [email protected] Suite 102, 7370 Sierra Morena Blvd SW, Calgary, AB T3H23456 4H9BA *On & Offshore Geological Supervision 906, 505 6 St. SW Calgary, AB T2P-1X5 [email protected] 1-800-447-1534 (403) 237-9189
Excellence in Geological Services for Over 20 Years Integrated Reservoir Studies for All Resource Types 4D Geomodelling & Geosteering Conventional Wells Horizontal Well Path Planning • Horizontal Wells - Spearfish Infill Well Placement Studies - Viking ® SMART4D Modelling Software - Bakken - Cardium 910, 396 11th Ave SW Calgary, AB Canada Email: [email protected] - Horn River Shale Gas www.uogc.com 403.265.0111 www.serpaconsulting.com
18 RESERVOIR ISSUE 10 • NOVEMBER 2011 water saturation was 20% or less and therefore a value of 20% was used for the proven (1P) volumetric calculation. Water saturation calculations from the logs at 02-26 indicated that the water saturation could be as low as 10%. Therefore, a value of 15% was used for the proven plus probable (2P) volumetric calculation and a value of 10% was used for the proven plus probable plus possible (3P) calculation. Using the different porosity cutoffs lead to different pay thicknesses for the volumetric calculations for the 1P, 2P, and 3P reserve categories. Figure 1 contains the log suite for 02-26.
Figure 2 is the input table for volumetric calculations and the corresponding OGIP calculated from the inputs. These were the estimates made in 1999 following the drilling of the 02-26 well. As shown, the OGIP for the Section ranged from a value of 8.67 Bcf for the 1P level to a value of 11.44 Figure 1. Well logs from 02-26 and 12-26 showing the zone of interest and cutoffs used. Bcf for the 3P level. Assuming an ultimate recovery factor of 85%, the corresponding around the actual value of each factor a 12% porosity cutoff to define reservoir RGIP’s range from 7.37 bcf at the proven used in the reserve determination. For quality rock and a resistivity cutoff of 5 1P level to 9.72 bcf at the possible 3P level. example, in the volumetric technique that ohm-meters was deemed to be reservoir. In 2001, 12-26 was drilled as an infill well relies primarily on wellbore data, inputs As such, both these criteria were used in and the wellbore parameters from 12-26 such as pay thickness, porosity, water the proven (1P) volumetric calculation. did not materially change OGIP volumes saturation, and drainage area must be However, regional analogue data indicated for Section 26. extrapolated between wells even though it that rock with porosity as low as 6% is well understood that these variables can could flow gas at economic rates. Given The purpose of the exercise now is to change rapidly, and sometimes dramatically, this information, it was decided that a 9% compare the current reserve estimates between control points. Applying the porosity cutoff would be used to define that are derived from production decline principles discussed previously, it is the probable (2P) reserves level and 6% analysis using twelve years of production understood that at the proven reserve cutoff would be used for the possible (3P) history to the volumetric estimates that (1P) level there is a 90% probability that reserves level. There was also additional were made at the time the pool was the actual reserves recovered will meet uncertainty pertaining to the value for discovered. Figure 3 (page 20) shows a or exceed the reserve volume booked the initial water saturation for the pool. rate-time plot and a rate-cumulative plot for that category. Similarly, at the proved Based on analogue data, there was a high for both wells. In both cases, the wells plus probable (2P) level there is a 50% degree of confidence that the value for (Continued on page 20...) probability and at the proved plus probable plus possible (3P) level there is only a 10% probability. Because there is uncertainty, it is advisable that the range of the reserve estimate be stated and, if possible, the estimates from two or more techniques should be used to support the reserve booking.
To illustrate this point, consider a single section, Section 26, penetrated by two producing wells. For simplicity, this will be considered to be a single producing entity on 640 acres. We will be addressing producing proven, probable, and possible reserve categories.
The discovery well, 02-26, was drilled and placed onstream in early 1999. At that time, a volumetric estimate of OGIP was made. Based on regional core data, a high degree of confidence was placed on using Figure 2. Parameters used in calculating OGIP for Section 26.
RESERVOIR ISSUE 10 • NOVEMBER 2011 19 (...Continued from page 19) have exhibited very good decline trends that were easily extrapolated to provide a production forecast. Although there are very good trends established for these wells, there still remains some uncertainty as to what trend-line the wells will actually follow in the future. Knowing that a decline exponent (n) of 0 would predict the most conservative estimate of estimated ultimate recovery (EUR), it was decided that an n of 0 would be used for the 1P reserve level, whereas an n of 0.1 would be used for 2P reserves and an n of 0.2 for 3P reserves. In Figure 4, the current EUR reserves estimated from decline analysis are being compared to the volumetric estimates that were made at the time of discovery. The decline analysis is indicating that the proven 1P EUR’s for the two wells on Section 26 are on track to ultimately produce 8.27 Bcf, An Integrated which is a volume that actually exceeds the 7.37 bcf RGIP volumetric estimate that was initially made for the proven 1P reserves calculation. In fact, the 1P decline analysis Figure 3. Production decline analysis on 02-26 and 12-26. Workflow Solution estimate is actually better aligned with the 2P volumetric estimate that was made Get the full picture with comprehensive integration 12 years ago. The 1P volumetric reserves are now shown to be too conservative of IHS PETRA®, IHS PetraSeis® and IHS GeoSyn™. compared to the projected EUR for Section 26. This is not unexpected given that there was a 90% probability that the actual EUR was going to meet or exceed the 1P estimate at that time. It should also be noted that the 3P volumetric estimate of 9.72 bcf is higher than the 3P decline analysis EUR of 8.57 bcf. The wider range in volumetric reserve estimates is the result of much higher uncertainties with geological parameters.
The fact that the 3P reserve estimate from decline analysis is lower than the 3P volumetric estimate made at discovery would suggest that it would have been a mistake at that time to have used a 6% porosity cut-off even though there Figure 4. Comparison between volumetric estimates of recoverable gas in place and estimated ultimate recovery were examples of wells in the area that from production decline analysis over Section 26. were producing from 6% porosity rock. When these three solutions seamlessly connect, geological and seismic Similarly, it would have equally have been and conservative estimates of the input with the appropriate confidence level while a mistake to have used a value of 10% for values and to modify them as more data providing a sense of how big these reserves workflows are streamlined with easy-to-interpret data and modeling the initial water saturation even though becomes available. It would be risky to could ultimately be. tools. This integrated bundle allows you to access, view and manipulate Sw calculations from the 2-26 well were take the most optimistic values for the information within the same project; create multidimensional seismic indicating 10%. As such, the original 1P inputs in the early stages of a property REFERENCES models and synthetics; improve workflow collaboration; and deliver and 2P volumetric estimates using more development. Society of Petroleum Evaluation Engineers conservative assumptions have turned out (Calgary Chapter). 2007. Canadian Oil and comprehensive proposals for new prospects. Get to the field faster with to be very good estimates of the EUR that Within the resource spectrum, reserves Gas Evaluation Handbook. Calgary, Alberta: seismic, well, production, log and economic data at your fingertips. Section 26 is likely to ultimately attain. must meet very specific conditions Society of Petroleum Evaluation Engineers because they carry implied monetary value (Calgary Chapter) and Canadian Institute of CONCLUSION that establishes the net asset value of a Mining, Metallurgy & Petroleum (Petroleum In the life cycle of a producing entity, company, provides collateral for lenders Society). See more solutions at www.ihs.com/cspg-1 the reserves are reviewed and updated and provides the basis of share value for regularly and therefore it is prudent on the investors. Much care needs to be taken part of the evaluator to make reasonable by evaluators to establish those volumes
20 RESERVOIR ISSUE 10 • NOVEMBER 2011 An Integrated Workflow Solution
Get the full picture with comprehensive integration of IHS PETRA®, IHS PetraSeis® and IHS GeoSyn™.
When these three solutions seamlessly connect, geological and seismic workflows are streamlined with easy-to-interpret data and modeling tools. This integrated bundle allows you to access, view and manipulate information within the same project; create multidimensional seismic models and synthetics; improve workflow collaboration; and deliver comprehensive proposals for new prospects. Get to the field faster with seismic, well, production, log and economic data at your fingertips.
See more solutions at www.ihs.com/cspg-1
RESERVOIR ISSUE 10 • NOVEMBER 2011 21 9 th ANNUAL WINTER EDUCATION CONFERENCE HOUSTON, TX • FEBRUARY 13-17, 2012 Five Great Days of the Finest Geoscience Training for One Low Price
Courses include: • Deepwater Sedimentation Hosted by the • Exploration for Deep-Water Sands Using Norris Conference Center: Seismic Sequence Methodology 803 Town & Country Lane • Carbonate Reservoir Geology Houston, TX 77024 • Seismic Imaging of Carbonates Phone: 713-590-0950 • Carbonate Depositional Systems Fax: 713-590-0961 • Quick Guide to Carbonate Well Log Analysis Special group rate at nearby • Interpretation of 3D Seismic Data Hotel Sorella • Seismic Amplitude Interpretation Registration and • Seismic Stratigraphy and Seismic Geomorphology information: • Evaluation and Quantitative Modeling of Fractured Reservoirs Toll-free (U.S. and Canada) • Hydraulic Fracturing of Shales 888-338-3387, or 918-560-2650 • Surface Geochemical Exploration For Oil And Gas Fax: 918-560-2678 (Four concurrent sessions each day – mix and match according to E-mail: [email protected] your interests and training needs. Buffet lunch and refreshments Download a registration form at: included each day.) www.aapg.org/education/wec.cfm Small AAPG Bookstore open during breaks each day
Price through Price increase Tuition for the week: 1/16/2012 after 1/16/2012 AAPG Members...... $1795 $1895 Non Members...... $1895 $1995 Individual Courses ...... $475/day $525/day SIGN UP NOW! (Your five-day badge can be transferred to a friend or colleague if you can't attend all five days.) BY BECOMING AN AAPG MEMBER SAVE $200 AND REGISTERING BEFORE JAN. 16th THE DEVELOPED PROFESSIONAL | By Tom Sneddon, Manager of Geoscience Affairs, APEGGA Calgary Compulsory Professional Development easier. The near-term “Big Ones” are the countries, including France and Norway. (CPD) continues to be a somewhat Gussow Conference in Banff (October 3, 4, The topic is a hot one in the geoscience controversial topic in Professional Geology. and 5; it will be over by the time you read community: “Closing the Gap – Advances It is hard to do all that stuff and still have time this) and the Honourary Address November in Applied Geomodelling for Hydrocarbon to do the work one was hired to do. 2. The Honourary Address will appear in Reservoirs.” Edmonton for the first time this November The argument is somewhat circular in that 1 as Geo Day 2011. A pilot presentation The rise of the Asset Team in the oil to keep the work one was hired to do, featuring Susan Eaton, P.Geol. P.Geoph. to and gas business has changed the way the working professional must stay at the science teachers and other interested people geologists, geophysicists, and engineers work bleeding edge of geoscience. That means a last year suggested a significant event was in a fundamental way. All three must now fair amount of time invested in finding out needed in that city. work together to get the best guess at what is new in the geoscience world and how much of what kind of fluids exist in fulfilling obligations to presenting results, While I am revealing my personal choices for both conventional geometric reservoirs and techniques, and so forth to one’s professional CPD events, please remember that APEGGA the numerous categories of unconventional peers to keep the ball rolling. Professional doesn’t endorse any particular event or PD plays. Historically, while geologists had their development is an investment of time and, provider, as each Professional should have a contribution to make to reservoir evaluation like most investments, the dollar payoff is PD plan that addresses her or his personal and drainage design, those areas were sometime in the future. scope of practice and professional interests. considered to be the petroleum engineers’ As a regulator, APEGGA must not appear turf. Geologists and geophysicists worked Further, once a year APEGGA wants to know to be promoting third parties in any way somewhat closer together, but usually what you have been up to, CPD-wise. For that might be construed as favouring one squabbled over whether a particular pick was instance, my report goes in November, and provider, event or course over any other. If real or not, from a stratigraphic perspective. October is rapidly approaching (October? I’m in doubt, call. We can discuss your options. not finished with June yet!) However, with all Times have changed. Now the Asset Team the events that contribute to making Alberta First the Gussow: David Garner, P.Geoph., takes collegial responsibility for predicting geoscience the most exciting in the country, and his outstanding team have attracted reservoir performance and finding ways it does make earning CPD hours that much delegates to Banff from a number of (Continued on page 24...)
for information contact: GeoEdges Inc. Joel Harding at 403 870 8122 Detailed and accurate geology at your fingertips in Petra, email [email protected] GeoGraphix, ArcGIS, AccuMap, GeoScout and other applications www.geoedges.com
Western Canada: Slave Point, Swan Hills, Leduc, Grosmont, Jean Marie, Horn River Shales, Elkton, Shunda, Pekisko, Banff, Mississippian subcrops and anhydrite barriers in SE Sask., Bakken, Three Forks, Montney, Halfway, Charlie Lake, Rock Creek, Shaunavon, BQ/Gething, Bluesky, Glauconitic, Lloyd, Sparky, Colony, Viking, Cardium, Horseshoe Canyon and Western Canada Mannville CBM, Oilsands Areas, Outcrops Geological Edge Set US Rockies & Williston: Red River, Mississippian subcrops & anhydrite barriers (Bluell, Sherwood, Rival, etc), Bakken, Three Forks, Cutbank, Sunburst, Tyler, Heath, Muddy, Dakota, Sussex, Shannon, Parkman, Almond, Lewis, Frontier, Niobrara, Mesaverde shorelines, Minnelusa, Gothic, Hovenweep, Ismay, Desert Creek, Field Outlines, Outcrops
Appalachian Basin North American Shales: Shale plays characterized by O&G fields, Geological Edge Set formation limit, outcrop, subcrop, structure, isopach, maturity, stratigraphic cross-sections. Includes: Marcellus, Rhinestreet, Huron, New Albany, Antrim, Utica-Collingwood, Barnett, Northern US Rockies Eagleford, Niobrara, Gothic, Hovenweep, Mowry, Bakken, & Williston Basin Three Forks, Monterey, Montney, Horn River, Colorado Geological Edge Set Appalachian Basin: PreCambrian, Trenton, Utica-Collingwood, Medina-Clinton, Tuscarora, Marcellus, Onondaga Structure, Geneseo, Huron, Antrim, New Albny, Rhinestreet, Sonyea, Cleveland, Venango, Bradford, Elk, Berea, Weir, Big Injun, Formation limits, Outcrops, Allegheny Thrust, Cincinatti Arch, Field outlines
Deliverables include: -Shapefiles and AccuMap map features -hard copy maps, manual, pdf cross-sections -Petra Thematic Map projects, GeoGraphix projects, ArcView North American Shales map and layers files Geological Edge Set -bi-annual updates and additions to mapping -technical support
RESERVOIR ISSUE 10 • NOVEMBER 2011 23 (...Continued from page 23) achieved with input from the whole range November 2 will see the annual Honourary of producing petroleum and/or natural of exploration and production specialists. Address sponsored by CSPG, CSEG, and gas that previous generations didn’t even It also means that geologists must become APEGGA. As usual, the public portion of the know was there. It requires a high level of more adept at geostatistics and geodynamics event will come off in the evening at the Southern team work and respect for the other guy’s than heretofore. Do I hear shuddering from Alberta Jubilee Auditorium, with doors opening expertise. the math-phobic folks out there? The place at 7:30PM. The topic this year will be “Fire and to learn about all these topics will be the Ice – Adapting to Planetary Change,” starring Much of the credit for ensuring team work Gussow, October 3 through 5 (all counting geologists Jeff Bond of the Yukon Geological pays is derived from the Canadian Securities as CPD hours in my diary). Survey and Dr. Catherine Hickson. Administrators policy called National Instrument 51-101 and its companion The various Divisions of CSPG will have a Jeff is a Pleistocene specialist (the cool document, the Canadian Oil and Gas number of brown-bag presentations over professional) and Catherine is a volcanologist Evaluation Handbook. Correct classification the winter that should also help (more CPD (the fire-side professional) who is presently of a company’s resources and evaluation hours). Ignorance is a disease that can be a principal in a geothermal energy company of their economic potential over a range cured, or at least treated with a weekly dose based in Vancouver. Details are available on of possible product prices can only be of brown baggers. the CSPG website. Tickets can be obtained on the CSPG website for members, the APEGGA website for everyone, or at the door. Prices: Adults $15 advance, $20 at the door; Students $5 in advance, $10 at the door; Children 12 & under free. More enjoyable CPD hours and you get to be a hero to offspring/nephews/nieces/neighbourhood kids at the same time.
The Edmonton version of the event will be held November 1 at the Northern Alberta Jubilee Auditorium, and will be free for school children, but this year there will not be a public presentation. It will be sponsored by APEGGA, with acknowledgements to CSPG and CSEG. The Edmonton Geological Society will provide volunteers (CPD hours for volunteering).
All CSPG and Edmonton Geological Society events are potential earners for CPD hours, easing the time demand issues somewhat and allowing some important socializing and fun in the process. Your local APEGGA branch activities fall into the same categories.
The serious side of CPD is rooted in the need for all technical professionals to keep their intellectual tools sharp and to be innovative in their scope of practice. The Canadian economy depends upon geoscientists and engineers to continue to deliver the energy and mineral products it needs to remain competitive in the world. The economy is also becoming more reliant on our ability to export our intellectual resources through exploring foreign lands and consulting with fellow professionals abroad to find the most effective solutions to resource development and environmental challenges. It is interesting to note that other jurisdictions, notably British Columbia, have adopted the Alberta CPD model. It seems to work and the outcomes are pretty impressive.
We must be competent in our science, be able to lead, to solve technical and business problems, and to communicate effectively on the global stage. The alternative is to be out of business.
24 RESERVOIR ISSUE 10 • NOVEMBER 2011 CSPG UNIVERSITY OUTREACH: Welcome to the New Academic Year | By Mark Rabin, Aaron Grimeau, Sandra Rosenthal
The air has cooled, the leaves are turning, bridging the student/industry gap with plays in Alberta to deepwater, subsalt plays summer is a fading memory, and the fall our message of opportunity, learning and in the Gulf of Mexico to Geological Survey semester is well underway. Students are continuing education, getting dirty in the of Canada research on methane hydrates, no back into the swing of things navigating field, mentorship, scholarships, conferences, two presentations are the same, and this may their scholastic duties, social lives, and job networking, and of course the value of be the first time that students are exposed hunting. They have been facing the daunting volunteering; true volunteer spirit is what has to the oil and gas industry. This is an exciting fall recruitment campaigns and the stress of made the CSPG what it is today. We also feel program that is well received by lecturers, starting their careers, whether with summer that contact with students is one of the most geology departments, and students alike. We or full-time jobs, in a few short months. important pillars of our society, as they will are always looking for industry professionals be the new membership base that will carry who would be interested in participating The CSPG University Outreach Committee the CSPG forward for the next 75 years. We in these lecture tours (hint, hint) so please is also back in full force and hard at work can all learn from this experience. don’t hesitate to get in touch with us if you reaching out to geoscience students across are interested in participating (as a lecturer Canada and engaging them in meaningful The University Outreach Committee’s or as a school). Lecture tours happen in the ways. We too were bright-eyed students not flagship program is the Lecture Tour series. fall and winter semesters of every school so long ago and we fully understand the range We send industry professionals and academic year. of decisions and opportunities students are gurus, who graciously volunteer their time, faced with. Like many industries in Canada on a lecture tour of interested universities in Change is happening everywhere around us, and around the globe, the petroleum industry a particular region of Canada, to present their and the University Outreach Committee’s is facing a talent shortfall that will need to be work and interests to keen geology students. dedicated and motivated group of young filled by new, keen grads. These graduates This is an opportunity for students to come industry professionals takes on this challenge will require training and mentoring by the in direct contact with the faces of the oil with an enthusiasm for the geosciences, more experienced generation. The CSPG and gas industry and see the high quality of intent on communicating our passion to post- University Outreach Committee stands scientific work that is produced on a daily secondary students from British Columbia to at the crossroads of this generational gap basis. With projects ranging from carbonate Newfoundland. and the heart of our approach is to place ourselves in the shoes of Geology students of all ages from first year to soon-to-be grads and help in that transition, using what we ourselves have learned in industry.
Our biggest challenge lies in finding the best ways to communicate the Society’s message to our student members. Over the course of the academic year, our committee comes in contact with hundreds of students whom we meet face to face at the three conferences we help sponsor and attend (AUGC on the east coast in October, AESRC in central Canada in March, and WIUGC in Western Canada in January). We also attend career fairs, organize lecture tours in all regions of Canada, and support student events and field trips.
The CSPG has approximately 500 student members and we communicate with them through our monthly newsletter, CSPG website, online student surveys, and regular e-mails with student-focused content such as sponsorship and scholarships, events, and conferences. We are always willing to listen and learn from our student members on what they would like to see and expect from our committee.
This committee is one of the unique things about our Society because there aren’t many non-profit groups like us that are
RESERVOIR ISSUE 10 • NOVEMBER 2011 25 ANOTHER GREAT YEAR at CSPG Mixed Golf | By David Caldwell
A huge thanks to the golf committee for helping out with their time and efforts again this year. Assisting as Chairpersons were Brenda Pearson from Birchcliff Energy and David Caldwell from Command Equipment. David Middleton from Suncor created all of the signs for the tournament and Penny Christensen from Schlumberger organized all of the prizes for every hole competition, teams, and random prize giveaways. Norm Hopkins bought all of the trophies for each winning team. Darin Brazel from IHS Energy Systems helped out tremendously with the sponsorship drive.
Thanks to Dayna Rhoads at the CSPG office Despite the poor Calgary weather all Schlumberger was the official scoring system for being instrumental in helping out the summer long, we still managed to get in sponsor who posted scores and results at committee with registration and anything a decent round of golf at the 22nd annual the banquet. CL Consultants sponsored all else we needed. CSPG Mixed Golf Tournament this year. of the golf carts while Rigsat Gas Detection Once again, Lynx Ridge hosted a great sponsored the Driving Range. Exova once Hope to see everyone again next year. It tournament and the course conditions were again stepped forward to sponsor the was sold out again this year, so make sure exceptional. This made it easier for more breakfast while MJ Systems helped co- you register early. of the hackers out on the course. That is sponsor the banquet meal. why we are known as the fun tournament, although there is still a bit of competitive edge with some teams.
The winning team for gross score was the team of David Caldwell, Jimmy Dowhaniuk, Mike Newton, and Dan Krpan. The winning team for best Net Score was Bob Septhon, Jordan Biss, Joerg Wittenberg, and Brittany Muys.
The most honest team this year went to Norm Hopkins, Robert Paul, Lisa Stickle, and Luis Leote.
A huge thanks to IHS Energy for stepping up as the Tournament Sponsor. Thanks again to Canada Brokerlink who has been our tournament sponsor for the past 21 years. It is great to still have them involved at a Silver level. Other big sponsors who returned to the event again this year were Tucker Wireline and GLJ Petroleum Consultants. Without big sponsors like these, the tournament would not be a huge success. We had the most sponsors ever on Par 3’s this past year as well. IHS sat on Hole 5 and greeted players with drinks and snacks. Roke Technologies and Cougar Consultants had a BBQ and drinks for golfers on Hole 8. On the back nine, Sensor Geophysical served beverages for golfers on Hole 12 while Energy Navigator sponsored Hole 14 and AGAT Laboratories had drinks and snacks for golfers on hole number 17.
26 RESERVOIR ISSUE 10 • NOVEMBER 2011 22nd Annual CSPG Mixed Golf Tournament Thank you to our valuable sponsors!
PLATINUM SPONSOR GOLD SPONSORS
SILVER SPONSORS HOLE SPONSORS
Prize Donors
Edge Technologies RBC Securities Genesis Executive Global Energy Total Gas Halliburton THE PURPOSE AND GOALS of Proposed Amendments to the CSPG’s By-Laws
October’s Reservoir notified you of Proposed by-law amendments seek to 3. Address Executive Committee plans to amend the CSPG’s by-laws, in achieve five outcomes: workload and effectiveness issues. conjunction with elections this November. 1. Broaden the Mission of the Society 4. Attempt, as is possible legally, to These amendments are proposed to ensure and adopt a trade name to better protect Society assets for the benefit appropriate practices are used to preserve reflect and recognize the diverse of the Membership into the future. our members’ best interest (see: Article practice of current and future 5. Strengthen democratic values and II, http://www.cspg.org/about/governance- members engaged in “Energy provide foresight for future CSPG bylaws.cfm). The goal is to ensure the Geoscience” in sedimentary basins. success and “good governance.” “Good Governance” of the CSPG. 2. Simplify individual voting membership classes. Proposed amendments affect five of sixteen by-laws articles. Minor changes affect another three articles. Eight by-law articles remain unchanged. NeuraMap Major proposals affect: • ARTICLE I: NAME Trash your Digitizing Table • ARTICLE II: MISSION AND GOALS • ARTICLE III: MEMBERSHIP • ARTICLE VI: OFFICERS • ARTICLE VII: COMMITTEES
Minor changes including the provision of clarity and gender-inclusive language are: • ARTICLE X: DUES AND FINANCE • ARTICLE XI: SEAL AND CERTIFICATION OF DOCUMENTS • ARTICLE XVI: DISPOSITION OF ASSETS
In Article I the legal name “Canadian Society of Petroleum Geologists” and the standard abbreviation CSPG remain unchanged. The device of the CSPG remains unchanged. It proposed that we adopt additionally the trade name “CSPG: Canada’s Energy No need to have that old digitizing table getting in Geoscientists.” This change will make us the way. Let NeuraMap do your digitizing, volumetrics more inclusive of members’ scientific practise, and reserves on your computer whether you are using while recognizing the diverse aspects of hand-drawn maps or digital maps. Take advantage members’ current employment and our of auto-tracing technology and make your workflow Divisional structure. This proposal is akin to easier with NeuraMap. the adoption by the American Association of Petroleum Geologists of the trade name “AAPG: An International Organization.” It • Automated tracing reflects a growing awareness and recognition • Automated shot-point capture that the pore space and rocks in sedimentary • Interactive editing and reporting basins contain many additional energy assets, including storage, geothermal energy, • Geo-Reference and re-project maps and coal resources. Many employers view • Calculate Volumetrics and Reserves themselves as “Energy Companies” with a diversified energy resource portfolio. The www.NeuraMap.com term Geoscientist similarly portrays the irreversible trend toward our use of diverse geoscientific tools. Since the beginning of the Society we have employed geological, geophysical, and engineering tools to accomplish our work. Wireline logs and © Neuralog • 2011 • www.neuralog.com • 1.281.240.2525 • 1.800.364.8728 drillstem tests are prominent examples of where geologists employ non-geological techniques.
28 RESERVOIR ISSUE 10 • NOVEMBER 2011 This leads to Article II where the Missions (from, Creating an Effective Board of 4. Volunteer Management, chaired by and Goals of the Society are proposed Directors;Pacific Continental Bank, the President-elect. to change from “geology” and “petroleum http://www.therightbank.com/home/ 5. Finance, chaired by the Finance geology” to “Energy Geoscience”. This fiFiles/static/documents/resources_ Director. is consistent with impending changes of white_board_developmentL.pdf 6. Planning and Priorities, chaired by Provincial professional organizations, such the Finance Director-elect. as APEGGA. It is also reflects the range We believe in elected Officers and 7. Scientific and Technical Programs. of scientific practise of our members. The Directors, while preserving business 8. Membership and Member Services. use of the word Canadian reflects our continuity. Following a modern corporate 9. Communications and Publications. continuing commitment to be a national governance model we propose a limited 10. Outreach and Public Awareness. scientific society that strives to maintain its number of Officers, essential for business position as the best national geoscientific continuity, assisted by an annually revitalized We propose to change Article X to align society globally. Directorate. In reality we use such a our by-laws with the long-established governance model currently, but the By- CSPG practise of placing financial assets Currently almost half our regular members Laws and certain titles are aligned to neither with “subsidiaries” of “Chartered Banks are women. Regardless, our by-laws current practise nor a modern governance and Trust Companies.” Likewise, assuming should be gender inclusive. Likewise, we philosophy. that the CSPG Education Trust could be will continue to recognize, appreciate, and the likely recipient of residual CSPG assets, celebrate the efforts of our Long-Time The proposed Officers are: President, we propose to change Article XVI such Members, but our membership structure President-elect, Past-President, Finance that in the event of our dissolution, the should not discriminate based on members’ Director, and Finance Director-Elect. We recipient of CSPG assets would not be age or length of membership. This leads propose that, each year, the Membership the “profession of geology” but that it to changes affecting Article III, and the elect both a President-elect, to serve will be a registered charity or non-profit introduction of gender-inclusive language three years successively in the Presidential organization working for the “promotion throughout. This will reduce the number roles, and a Finance Director-elect who of Geoscience or Geoscience Education.” of voting membership classes, as it is both will serve two years successively in the A final resolution will request that you fair and democratic that all voting members Financial roles. give approval to minor, non-consequential receive similar basic benefits. Already many changes that may be required by the federal emeritus members pay regular dues. By Directors must take an interest in both regulator once we make application to consolidating regular and emeritus members specific aspects and the general good of register the amended by-laws. as a single class of voting regular members, the Society. To strengthen Director roles we seek to create an inclusive and equitable we propose that the Membership elect Again, I recommend you reacquaint yourself membership structure. It remains important by preferential ballot, each year, about with the by-laws (http://www.cspg.org/ to considering students as prospective half the Directors-at-Large for a two-year about/governance-bylaws.cfm). A “redline” future voting members, associates as valued, term. One addition we propose is that of the proposed changes was posted on the but non-scientist, non-voting members, Directors not work in individual portfolios, CSPG website in October. You now have the and voting honorary membership as but that they work collaboratively as chairs opportunity to consider and vote for these a recognition award. The AAPG is also and members of standing committees that changes in conjunction with elections. Even considering a reduction of its membership will replace and augment the four current once you have voted for and approved some classes following similar lines. portfolios (Program, Services, Outreach, or all of the approved by-law amendments Communications). the changes will not come into effect until Changes to Articles III and VI affect the they are vetted by government regulators Executive, the Directors, and their work. Currently we have seven Directors, and legally registered. Competition among CSPG duties, work, and excluding the Officers. We propose that family responsibilities can be overwhelmingly the Directors-at-Large each year be at Thanks again for your interest and patience. challenging when Directors are assigned least five but not more than 16 depending The process of changing our by-laws is individual portfolio responsibilities. Our own on anticipated workload as identified prior neither simple nor easy. With your help experience, in Convention, Divisions, and to the call for nominations. Subsequent to and support we can provide a future Events, shows that we achieve more when we each election the President will populate framework for the continuing success, work collectively using committee structure. Standing Committees with the returning impact, and value of the CSPG. and newly elected Directors. Through The most successful non-profit these committees, the Directors will both organizations are often those whose pursue their personal passionate interests directors approach the organization as while advancing the general work of the a business. … The key lies in developing Society. a clear picture of the needs of the organization, recruiting the leadership We propose the following Board of Director who meets these needs, ensuring Standing Committees: they understand what is expected of 1. Governance, chaired by the them, and holding them accountable President. for the responsibilities. Through these 2. Nominations and Elections, chaired endeavours, non-profit organizations by the Past President. stand a much better chance of surviving 3. Staff Compensation and Benefits, and flourishing. chaired by the Past President.
RESERVOIR ISSUE 10 • NOVEMBER 2011 29 23RD ANNUAL CSPG/CSEG 10K and 5K Roadrace and Fun Run | By Mike Cardell, Committee Chair
On a perfect fall afternoon September 14th, Here’s a summary of the 2011 the annual CSPG/CSEG roadrace and CSPG, CSEG, and CAPL winners from 2011: fun run took place along the Bow River TOP MALE CSPG 10K RESULTS Pathway. The temperature was ideal for running, and a very enthusiastic group of PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER 1 37:34.27 1 Francois TREMBLAY 1/4 1/20 M-U29 CSPG 170 runners bolted from the start line. 2 42:59.89 101 Cole WEBSTER 2/4 2/20 M-U29 CSPG This year marked our fourth year for 3 43:27.46 90 Claus SITZLER 1/4 3/20 M4049 CSPG the 5K, and again we saw an increase in 4 43:44.99 55 P. Scott KERFORD 1/7 4/20 M50+ CSPG participants to 59 runners. This should be 5 44:45.04 33 Jim GARDNER 1/5 5/20 M3039 CSPG the last year that both 5 and 10 Km racers TOP FEMALE CSPG 10K RESULTS have to maneuver through the construction detours for the long-awaited Peace Bridge. PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER 1 47:11.16 72 Jane MARZETTI 1/2 1/7 F-U29 CSPG I know our race volunteers, decked out 2 48:35.26 122 Justin SAGEN 1/4 2/7 F3039 CSPG in their bright orange safety vests, aided 3 49:27.41 7 Angela BASKERVILLE 2/4 3/7 F3039 CSPG the runners in negotiating the route. Once 4 49:56.33 66 Erin LINLEY 3/4 4/7 F3039 CSPG again, to assist, or perhaps confuse the 5 51:15.34 84 Holly ROSE 2/2 5/7 F-U29 CSPG runners, distances were marked uniquely TOP MALE CSEG 10K RESULTS in geologic time. Like every year, it’s great to see a mix of competitive and first- PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER 1 42:37.74 79 Darryl PARRY 1/5 1/16 M4049 CSEG time runners. Winning Time provided a 2 43:19.95 92 Greg SOLVBJERG 2/5 2/16 M4049 CSEG new format for chip timing with the chip 3 45:09.92 27 Robert FERGUSON 3/5 3/16 M4049 CSEG mounted on the runners’ race bib. We 4 50:01.49 24 John DUHAULT 1/7 4/16 M50+ CSEG returned to The Calgary Curling Club for 5 50:27.64 6 Ken MACDONALD 2/7 5/16 M50+ CSEG the post-race awards party, where the mix TOP FEMALE CSEG 10K RESULTS of racers and volunteers enjoyed plenty of cold beverages and tasty pizza. The PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER 1 42:47.17 50 Rhonda JEWETT 1/1 1/11 F3039 CSEG evening was topped off with door prizes, 2 46:57.65 29 Shirley FLEMING 1/3 2/11 F4049 CSEG awards, and of course our now famous 3 47:12.97 22 Sara DOBEK 1/4 3/11 F-U29 CSEG sock-toss. Through great sponsorship and 4 47:38.23 26 Jen ELGAR 2/4 4/11 F-U29 CSEG strong participation, we are once again 5 51:22.12 38 Lorna HAWLEY 1/3 5/11 F50+ CSEG able to contribute to the CSPG educational TOP MALE CAPL 10K RESULTS trust fund, and to the YMCA strong kids foundation! PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER 1 40:59.43 51 Justin KANGARLOO 1/1 1/11 M-U29 CAPL 2 41:16.05 13 Dan CICERO 1/4 2/11 M3039 CAPL I would like to thank all the volunteers 3 41:32.57 10 Dave BRACEY 1/3 3/11 M50+ CAPL and sponsors who helped make this event 4 42:41.06 105 Ken YOUNG 2/3 4/11 M50+ CAPL a success! We have acknowledged our 5 45:35.44 19 Mark DARRAH 2/4 5/11 M3039 CAPL sponsors on a separate page. Thank you TOP FEMALE CAPL 10K RESULTS also to all the runners. It was a pleasure cheering you in at the finish line. PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER 1 43:08.21 2 Kellie D’HONDT 1/3 1/6 F3039 CAPL 2 47:15.65 30 Jessie FLETCHER 2/3 2/6 F3039 CAPL Finally a huge thank-you to our group on 3 51:43.58 39 Stephanie HAY 3/3 3/6 F3039 CAPL the committee that made this all work: 4 52:41.45 124 Arlene GORMAN 1/2 4/6 F50+ CAPL Mike Cardell, Kathy Waters, Jocelyn 5 54:54.81 5 Margaret ARISS 2/2 5/6 F50+ CAPL Frankow, Carol Laws, Kathy Taerum, Greg 5K OVERALL TOP 3 MALE Hayden, Tim Burk, Armin Schafer, and Dayna Rhoads at the CSPG office. As well, PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER 1 21:42.05 1558 Nathan BAKER 1/5 1/23 M3039 CSEG thanks to Nick Wiggins and the staff at the 2 21:55.98 1517 Barrie DARGIE 1/6 2/23 M50+ CSPG Eau Claire YMCA for their hospitality. 3 24:04.96 1519 Jami FOX 2/5 3/23 M3039 None 4 24:54.71 9 John BODNARUK 1/7 4/23 M4049 None For more information on run times and 5 25:12.52 1564 Arim SCHAFER 2/7 5/23 M4049 CSEG placement, please see www.winningtime.ca. 5K OVERALL TOP 3 FEMALE We look forward to seeing you next PLACE TIME RACE# NAME DIV/TOT SEX/TOT DIV MEMBER year for the 24th annual; race date will 1 22:08.38 1532 Annie HIRD 1/6 1/36 F3039 None be September 12, 2012. Thank you. Mike 2 22:13.27 129 Cindy KOO 2/6 2/36 F3039 None Cardell Race Director ([email protected]). 3 22:28.37 1559 Donna DIXON 1/6 3/36 F4049 None 4 24:05.98 1508 Courtney BOGSTIE 1/16 4/36 F-U29 None 5 25:09.24 1536 Jessa-Lyn LAGROIX 2/16 5/38 F-U29 CSEG
30 RESERVOIR ISSUE 10 • NOVEMBER 2011 2011 CSPG/CSEG 10K & 5K Road Race Thank You 2011 Road Race Sponsors
GOLD SPONSORS
SILVER SPONSORS
BRONZE SPONSORS
VOLUME 59 NO. 1 MARCH 2011
Now available to view online
PUBLISHED QUARTERLY IN CALGARY, ALBERTA BY THE CANADIAN SOCIETY OF PETROLEUM GEOLOGISTS BULLETIN OF CANADIAN PETROLEUM GEOLOGY
V emulo ,95 .oN 1 HCRAM 1102 Office of Publication: Canadian Society of Petroleum Geologists 600, 640 - 8th Avenue SW, Calgary, Alberta, Canada T2P 1G7 Canadian Publications Mail Product Sales Agreement No. 40070050 Return postage guaranteed. VOLUME 59 NO. 1 MARCH 2011 CONTENTS
J.F. LERBEKMO and N. LEHTOLA Magnetostratigraphy of the Bearpaw and Blood Reserve formations on the St. Mary River: Evidence for the effect of the Sweetgrass Arch...... 1
G.R. DIX and C. JOLICOEUR Tectonostratigraphic framework of Upper Ordovician source rocks, Ottawa Embayment (eastern Ontario) ...... 7
R.T. LEMISKI, J, HOVIKOSKI, S.G. PEMBERTON and M. GINGRAS Sedimentological, ichnological and reservoir characteristics of the low-permeability, gas-charged Alderson Member (Hatton gas field, southwest Saskatchewan): Implications for resource development ...... 27
JAMES DIETRICH, DENIS LAVOIE, PETER HANNIGAN, NICOLAS PINET, SÉBASTIEN CASTONGUAY, PETER GILES and ANTHONY HAMBLIN Geological setting and resource potential of conventional petroleum plays 54 in Paleozoic basins in eastern Canada......
Now available to view online CITATIONS ...... 85
To view the current issue of the Bulletin online, login at www.cspg.org then click on “Bulletin - Current Issue”
To view past issues of the Bulletin, click on “Bulletin (Datapages)” or “Bulletin (GeoScienceWorld)”
PUBLISHED QUARTERLY IN CALGARY, ALBERTA BY THE CANADIAN SOCIETY OF PETROLEUM GEOLOGISTS ISSN 0007-4802 Since 1927... 2010 GEOLOGICAL CALENDAR | By Markus Ebner, Calendar Committee Chair Want sealed frameworks from geological and geophysical data in minutes, not weeks? Speed Up
CORPORATE MEMBERS APACHE CANADA LTD. APEGGA BAKER ATLAS BDO CANADA LLP CANADIAN NATURAL RESOURCES LTD. CASEY & ASSOCIATES CONOCOPHILLIPS CANADA LIMITED DEVON CANADA CORPORATION ENERPLUS CORPORATION This November issue of the Reservoir, you panel was unanimous in the decision for the EXXON MOBIL UPSTREAM RESEARCH will be receiving a copy of the CSPG’s award. COMPANY 2012 Geological Calendar, distributed to GEOLOGIC SYSTEMS LTD. our members. As always, the calendar For the Best Structural Geology Photo, GEOSTRATA RESOURCES INC. displays a diverse variety of impressive Peggy Hodgkins wins for her shot of HUNT OIL COMPANY OF CANADA geological images from around the globe, as Whaleback Ridge in Yoho National Park, BC. HUSKY ENERGY INC. photographed by our members. The photograph nicely captures a beautiful IHS fold in the Cambrian Sullivan and Waterfowl IMPERIAL OIL RESOURCES Reviewing the calendar, some of the highlights formations, which is backdropped by a glacier this year are a shot by Colin Martindale of and blue skies. As a runner-up to best JEWELSUITE the Khoman Chalk in Egypt’s White Desert structural photo, a calendar regular, Phil KKD OIL SANDS PARTNERSHIP of wind-sculpted blocks or ‘hoodoos’, which Benham entered a shot of a tight, anticlinal LITTLE ROCK DOCUMENT SYSTEMS compares nicely to Derrick Midwinters’s shot fold in the Nikanassin Formation, near MJ SYSTEMS of Sandstone hoodoos on Ellef Ringnes Island, Grande Cache, AB. MURPHY OIL COMPANY Nunavut. A number of winning entrants this NEXEN INC. year are photographs from Australia and Congratulations again to both Michael and PENN WEST PETROLEUM LTD. New Zealand – apparently a hotspot for our Peggy, who will both receive prize money DecisionSpace® Desktop software automatically generates members. A great aerial shot of the Twelve of $200. Also, congratulations to all of PETROCRAFT PRODUCTS LTD. accurate sealed frameworks in about a minute. PLUSPETROL S.A Apostles in Port Campbell National Park, our other photographers that made it ® ROXAR Australia is taken by Steve Metzger. into the 2012 calendar. All of the calendar As geoscientists interpret data, Landmark’s new unified DecisionSpace Desktop software automatically constructs photographs will be available on the CSPG RPS ENERGY CANADA LTD. fault networks, seals horizons against the fault network and generates a sealed framework. When geologists make As with previous years, a panel of judges website as downloadable wallpapers. SCHLUMBERGER selects 14 images (14 for this year, as we picks or geophysicists interpret sections, watch live updates ripple through the framework and then create SHELL CANADA LIMITED started a 16-month calendar this year) for I would like to thank everyone who took the accurate, report-quality maps instantly. What once took hours, or even days, now takes just a minute. SPROULE ASSOCIATES LIMITED publication and also chose the winners of our time to enter photographs for submission in So speed up your cycle time. Get better answers faster. Visit halliburton.com/decisionspacedesktop. SUNCOR ENERGY INC. photo contest for the Best Photo, as well as this year’s calendar. Thanks also go to Darin TALISMAN ENERGY INC. our subcategory this year of Best Structural McBeath, Aaron Grimeau, Mark Radomski, TOTAL E&P CANADA LTD. Geology Photo. Mark Taylor, Steve Metzger, Ryan MacCauley, TOURMALINE OIL CORP. and Phil Benham for lending their geological ™ Winner of the Best Photo this year goes to and photographic knowledge to the judging AS OF OCTOBER 10, 2011 High Science Simplified Michael Lam for his great shot of Mammoth panel and making this year’s selection process CSPG welcomes our 2011 Corporate Members! Hot Springs in Yellowstone National Park, as exciting as always. Thanks to Caitlin Young The benefits of being a corporate member include: • Recognition in the monthly Reservoir and quarterly Wyoming. The photograph is taken with at the CSPG office for making the calendar Bulletin excellent lighting, which perfectly highlights organizationally successful and keeping things • One associate membership the travertine terraces. It was chosen for the running smoothly. • Reserved tables at the technical luncheons with your amazing image and is something that is rarely company logo • One free pass to the CSPG Core Conference seen as an entry subject to the committee. Thank-you to the sponsors of the CSPG …and more! Contact Kasandra Klein at Kasandra. This is Michael’s second year in a row taking calendar as well as our members, who help [email protected] to be a corporate member today! the best shot, but the tally from the judging make this project possible. © 2011 Halliburton. All rights reserved.
34 RESERVOIR ISSUEISSUE 104 •• APRIL NOVEMBER 2011 2011 Want sealed frameworks from geological and geophysical data in minutes, not weeks? Speed Up
DecisionSpace® Desktop software automatically generates accurate sealed frameworks in about a minute. As geoscientists interpret data, Landmark’s new unified DecisionSpace® Desktop software automatically constructs fault networks, seals horizons against the fault network and generates a sealed framework. When geologists make picks or geophysicists interpret sections, watch live updates ripple through the framework and then create accurate, report-quality maps instantly. What once took hours, or even days, now takes just a minute. So speed up your cycle time. Get better answers faster. Visit halliburton.com/decisionspacedesktop.
High Science Simplified™
© 2011 Halliburton. All rights reserved. The Blueback Toolbox Maximize your Petrel investment
The Blueback Toolbox suite of Petrel* plug-ins contains Petrel functionality features that are not available in standard Petrel. The Blueback Toolbox contains 4 modules where all features has been developed based on request from Petrel users around the world.
GEOLOGY TOOLBOX - Facies proportion maps - 3D grid QC - Fault info
GEOPHYSICS TOOLBOX - Merge 3D cubes - Dip indicator - Frequency spectrum
PROJECT MANAGEMENT TOOLBOX - Project report - Project scanner - Import interpretation
RESERVOIR ENGINEERING TOOLBOX - Sw modeling - Interactive well picker - Contact back calculation
*Mark of Schlumberger
Learn how to maximize your Petrel investment with the Blueback Toolbox
[email protected] | +1 403 538 4821 www.blueback-reservoir.com