ASSET EVALUATIONS for A&D and M&A Activities
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ASSET EVALUATIONS For A&D and M&A activities cgg.com Asset Evaluations for A&D and M&A Activities The CGG A&D and M&A team provides integrated subsurface evaluation consulting services to assist in the acquisition, divestiture and merger of mineral assets. Our experienced reservoir geologists, petrophysicists, geophysicists, reservoir engineers and economists have completed evaluation projects across the globe, providing integrated multi-disciplinary subsurface data sets that reveal critical insights into the producibility of assets. Our clients are small independents, IOCs and NOCs, covering brownfield development (rejuvenation) and greenfield prospecting (exploration) for onshore, offshore, unconventional and conventional fields. 2 Asset evaluations for A&D and M&A activities CGG Asset Evaluations The standardized and succinct approach adopted by CGG’s A&D and M&A team delivers the data-driven subsurface interpretation required to provide quantitative asset valuations for conventional and unconventional resource plays. $ 1 2 3 4 5 Multi- Unique HPC for OOIP Streamlined Optimized disciplinary workfl ows & massive calculations history production & team seismic models matching recovery The above generalized workfl ow highlights control are also critical aspects to evaluate how well log data and regional geological as areas of unidentifi ed pay can be quickly understanding are used to generate regional identifi ed. Where seismic data is available, correlations of key formations to highlight our team of reservoir geophysicists use CGG’s reservoir continuity and thickness. This industry-leading reservoir characterization interpretation, coupled with petrophysical software to perform fast seismic inversions, analysis, provides a key insight into lithology, identifying high-porosity reservoirs away porosity, water/oil saturations and relative from well control points. Our geophysical brittleness across an asset. The organic approach can also identify geobodies in the geochemistry and petroleum systems analyses subsurface that may host signifi cant oil and deliver critical interpretations and predictions gas accumulations. Additionally, if an asset is relating to either/both the in-situ source rock driven or affected by fractures or faulting, our properties (e.g. maturity, type, expulsion) workfl ows can quickly identify and map these and the understanding of potential migrated features – of particular importance for those hydrocarbon accumulations that may have assets where water production or disposal and occurred. Reservoir properties away from well H2S is a challenge. The following pages summarize selected case studies, as well as CGG’s data library that can be used as part of an asset evaluation study. Asset evaluations for A&D and M&A activities 3 Asset Evaluations for A&D and M&A Activities CGG Data Library Seismic Data CGG hosts an extensive multi-client 3D onshore seismic data library within the main hydrocarbon basins of the United States, which has been used by multiple E&P companies to explore and develop assets. If an asset is located onshore US, and is covered by a CGG 3D seismic survey, CGG can provide data images to assist in A&D and M&A activities. By sharing samples of the available data, clients can validate the high quality of the 3D seismic data over their asset. 4 Asset evaluations for A&D and M&A activities Digital Geoscience Over the past 10 years, CGG’s subsurface characterization team have generated a global sub- surface database of rock and log data to assist in the generation of basin-to-formation specifi c evaluation studies. These studies have led to the collection of public subsurface data and the acquisition of new rock data via CGG’s organic and inorganic laboratories. This data, combined with CGG’s expertise in reservoir geology, petrophysics, geophysics and reservoir engineering, has led to the development of industry-acknowledged surface interpretation and risking products. Additionally, CGG completes proprietary subsurface characterization studies for small and large E&P companies across the Lower 48 and globally, further adding to the experience of our subsurface team. Asset Marketing When the opportunity arises, CGG will write, compile and publish technical articles with industry- recognized publications. This has proven to be a valuable and cost-effective way of further promoting the asset, as well as increasing its marketing reach and exposure to a larger audience. Asset Evaluation Deliverables Industry-renowned data coupled with reservoir characterization expertise provides unrivaled support for your asset. If your asset is located within an area covered by CGG’s multi-client seismic data, a high-defi nition seismic section image will be provided to enhance subsurface understanding and promotion. We include an integrated reservoir characterization study, with regional correlations, isopach mapping, geochemistry evaluations, petrophysical analysis, fault analysis, and seismic inversions. We deliver original oil-in-place volumes that can be used for economic assessments, valuations and commercial reserves. Marketing and data room support from CGG’s subsurface experts help in the development and technical promotion of your asset. Asset evaluations for A&D and M&A activities 5 Case Study 1 Asset Sale – Midland Basin CHALLENGE SOLUTION RESULTS • Midland Basin Eastern • Regional correlation of • Delivery of an integrated Shelf asset located in the Wolfcamp Formation subsurface evaluation Sterling County across Sterling and study within 30 days Glasscock Counties • Wolfcamp ‘conventional’ • Delivery of OOIP volumes asset, outside core • New rock analyses to for economic calculations Wolfcamp Basin collect key rock property development information (mineralogy, • Delivery of detailed TOC, maturity) subsurface marketing • Vertical well development material for VDR’s and with logs, cuttings • Petrophysical modeling of potential buyers and 3D seismic data key vertical wells • CGG’s subsurface team • Develop a fast subsurface • Geophysical coherency available to deliver study evaluation to highlight analysis of seismic results to potential buyers the production potential volumes in person or via video of the asset conference • Isopach mapping and OOIP calculations 6 Asset evaluations for A&D and M&A activities Case Study 2 Asset Development & Sale – Midland Basin CHALLENGE SOLUTION RESULTS • Midland Basin asset • Regional correlation of the • Delivery of an integrated located in Howard County Wolfcamp and Spraberry subsurface evaluation Formation across Howard study within 30 days • Wolfcamp and Spraberry and Martin Counties (300+ Formation targets under wells) • Delivery of OOIP volumes the town of Big Spring for economic calculations • Petrophysical modeling • Complex geology in East of key vertical wells, • Delivery of detailed Midland Basin Shelf calibrated to available subsurface marketing core data material for VDR’s and • Urbanized asset with potential buyers limited well control; only • Deterministic seismic on the city limits inversion using CGG’s 3D • CGG’s subsurface team available to deliver study • Evaluate lateral well seismic data to identify lateral well target zones results to potential buyers placement and frac in person or via video height growth - how • Geostatistical seismic conference many lateral wells can be inversion to resolve fi ne- drilled to effectively drain bed heterogeneity • Generation of hydrocarbon from the deterministic and Wolfcamp and Spraberry • Perform 1D mechanical geostatistical seismic earth modeling and inversion models to simulate fracture identify and validate stimulation to evaluate lateral drilling targets vertical frac growth height based on optimum rock properties • Lateral well cuttings analysis generating pseudo-elastic logs as an input to optimized completion designs - coupled with the geostatistical inversion model Asset evaluations for A&D and M&A activities 7 Case Study 3 Prospect Portfolio Generation – Middle East ReservesCHALLENGE AssessmentSOLUTION RESULTS Location:Integrated Nuqrah geoscience SEDEX approach to boost reserves Solution by FALCON Plus • Kuwait: Partition Zone • Fully integrated approach; • 50 new risked and between Kuwait & Saudi 2.5 years ranked prospects & leads Arabia • Regional seismic & including single-well • Focus on entire gravity/magnetic economics and cashfl ow stratigraphic column interpretation, well forecasts INDUSTRY CHALLENGES • 4,600 km2 new high-res. ties and sequence • Extension of petroleum 3D seismic, 120 wells, stratigraphic correlation province life well into the 21st century Renewalprevious reports Evaluation• Rock physics modeling Uncertainty & analysis • Seismic attribute analysis • Better understanding of Declining reserves usher in Finding the most profi table In greenfithe hydrocarbon eld exploration, habitat • Generate a new greenfi eld • All as input to a very the need to accurately identify reserves (liquids or gas) requires it isof a mustthe studyto know area what newprospect areas of portfolio prospectivity, (risked andetailed integrated 3D geoscience petroleum modeling hydrocarbon volumes are in consistently,volumes & from single- basin to approachsystems to identify model type, as volume, place,• More as well detailed as the probability knowledge basin to renew reserves. location, and stratigraphic layer. of successful production. well economics) of 50 the building block of the hydrocarbon types, prospects/leads to prospect/ lead spatial distribution and INTEGRATED GEOSCIENCE SOLUTIONSidentifi