Licence P1851 Relinquishment Report Jan 2014 P1851 Relinquishment Report Document last updated 21-01-2014 10:03 GMT P1851 Relinquishment Report 1 Licence Data 1 2 Synopsis 3 3 Exploration Activities 5 4 Exploration Analysis 6 4.1 Play Elements 4.2 Prospectivity 4.2.1 Balblair Prospect 4.2.2 Dalwhinnie Lead 7 9 9 14 5 Conclusions 16 6 Clearance 17 List of figures 1.1 2.1 3.1 4.1 4.2 4.3 4.4 P1851 Summary Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Regional tectoinc map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Seismic Datbase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Base Basalt Depth Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Lava Escarpments - Seismic Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Seismic Line FSB99-214D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Geoseismic section through Balblair Prospect & Dalwhinnie lead. . . . . . . . . . . . . . . . 12 List of tables 1.1 4.1 4.2 4.3 4.4 4.5 Licence summary table. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Risk & Resource summary table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Balblair Prospect Risk table. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Balblair Prospect Resource table. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Summary risk table for Dalwhinnie Lead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Dalwhinnie Lead volumetric parameters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 1 Licence Data Table 1.1 Table 1.1 Licence summary table. Fig. 1.1 1 Licence Data 1 Fig. 1.1 P1851 Summary Map 1 Licence Data 2 2 Synopsis Licence P1851 (blocks 223/26, 223/27, 219/2 & 219/3) was acquired in the 26th licence round, and surrendered in November 2013 with the work programme being fully completed. The regional and tectonic geology of the area is shown in Fig. 2.1 as well as the location of the P1851 licence The main prospective focus, the "Balblair" prospect is a shallow 4-way dip structure at base basalt level, and below a major basalt escarpment. The initial hope was that exploration success at Lagavulin to the west (217/15-1Z) would have further opened up the sub-basalt play, with Balblair and the neighbouring prospect, Ardbeg (P1852) holding valuable upside reserves. Unfortunately drilling results at Lagavulin were not supportive, and along with other negative sub-basalt drilling results in the Faroese sector (e.g. Brugden, Ann Marie and William) has now significantly downgraded this deep, high risk play. 2 Synopsis 3 Fig. 2.1 Regional tectoinc map.. A map illustrating the structural framework of the Northern West of Shetland area, including oceanic spreading centres, continental/ocean boundaries, continental crust with main sedimentary basins and structural highs. 2 Synopsis 4 3 Exploration Activities As part of the agreed firm work programme, Faroe Petroleum, and it partner E.ON E&P Ltd, acquired 400km of long offset data, and licensed a further 200km of the same data from TGS Nopec. The map in Fig. 3.1 shows the location of the 2D Seismic as depicted within the 26th round application document. X/Y: Meters 480000 3°W 500000 520000 540000 2°W 560000 580000 1°W 600000 620000 640000 0°W 660000 N 680000 Faroe Non-Operated 7040000 7040000 Licenced Acreage Acreage applied for Study Area 7020000 7020000 Seismic Database 0 40 km 7000000 222 221 63°N 7000000 223 63°N 6980000 6980000 6960000 6960000 6940000 6940000 6920000 6920000 219/21-1 6900000 6880000 219 218 217 216 62°N 214/4-1 209/4-1A 219/28-1 214/9-1 2D Acquisition 208/15-1A 2D Acquisition / Licence from Ardbeg Application 208 214 6820000 480000 500000 3°W 520000 540000 6860000 209/9-1A 2D Licence L 560000 2°W 209/6-1 209/12-1 208/15-2 L 580000 620000 210/13-1 6840000 LL M Seismic 210Database Map 209 600000 1°W 640000 6880000 62°N 210/4-1 209/3-1A 6860000 6840000 6900000 219/27-1 219/28-2Z 660000 0°W 680000 M 6820000 Fig. 3.1 Seismic Datbase 3 Exploration Activities 5 4 Exploration Analysis 4 Exploration Analysis 6 4.1 Play Elements Source The organic rich marine mudstones of the Late Jurassic Kimmeridge Clay formation are regarded as the principal oil source rocks within the FSB region. In the area of interest, wells drilled have encountered up to 295.5m of the Kimmeridge Clay formation. The more gas prone mudstones of the Middle - Late Jurassic Heather formation (Bathonian and Oxfordian) locally underlie the Kimmeridge Clay Formation in the FSB and have also been penetrated by wells. Proof that the Kimmeridge source rock is widespread in the area of interest lies in the presence of a biomarker (28,30 Bisnorhopane) in a wide range of relative concentrations in oils analysed from the Faroe - Shetland region. This biomarker is known to occur only in the Kimmeridge Clay formation. Burial history modelling of Late Jurassic source rocks indicate that most of the FSB area should be either gas mature or at least post mature for oil. However, it is mostly oil that has been found so far. A suitable explanation for this phenomenon could be that the rapid Palaeocene subsidence induced over-pressure which inhibited further thermal maturation, causing subsequent oil generation from the Jurassic source rocks. Hydrocarbon Migration Hydrocarbon migration has been predominantly vertical, the conduits being non sealing faults. Thus, the producing oil/gas fields lay within the geographical boundary of the mature source rocks (DECC 2010). There is evidence of an active hydrocarbon migration system in the FSB. Gas accumulations in the Eocene have been drilled into. Furthermore, the Middle to Late Miocene compression event created an elongate ridge in the middle of the FSB which was a focus for migrating hydrocarbons. In addition to this, many vertical disturbed zones (hydrothermal vents/gas escape conduits) have been observed. These could very well be migration pathways from source rocks beneath the basalts. Reservoir Due to the lack of well control, there is a high amount of uncertainty regarding the presence and extent of reservoirs. However, based on well penetrations elsewhere in the FSB there is potential for reservoir development beneath the basalt cover; Pre-rift strata: Middle Jurassic sandstones preserved on a fault terrace flanking the Rona ridge have yielded oil and gas shows. Also, the Solan and Strathmore discoveries, southeast of the FSB contain oil in Jurassic and Triassic reservoirs within the West of Shetland basin. the pre-rift prospects would be effectively sealed by Upper Jurassic or Cretaceous mudstones. The Rona formation has been proved within the Solan and West Shetland basins. They are Kimmeridgian to Tithonian in age (Late Jurassic), resting on Lewisian basement, Middle Triassic and Lower Jurassic rocks. Core analysis from well 205/22-1A indicates porosities less than 10% and permeability usually less than 10mD. The Rona formation is overlain by the Kimmeridge Clay Formation which acts as an effective source and seal. Devonian and even fractured basement rocks may provide additional reservoir targets. Syn-rift strata: At least 12 wells have encountered oil/gas shows in Upper Jurassic or Lower Cretaceous shallow marine sandstones in the FSB. Uneconomic gas discoveries in the basin have Lower Cretaceous, syn-rift apron fan and basin floor sandstones as their reservoirs. Upper Cretaceous mudstones exceeding 3800m in thickness provide excellent seals throughout most of the region. 4.1 Play Elements 7 Post-rift strata: Upper Cretaceous slope - apron sandstones (Cenomanian - Turonian) occur 327m thick along the Eastern flank of the FSB, stacked against the Rona fault,with the possibility of detached fan complexes down-dip. However, these sands thin westwards, where basalt thicknesses are substantial. Seal The Upper Jurassic has proven thermally mature (source) and immature mudstones as effective seals. The Cretaceous mudstones of the Shetland group also provide effective, laterally continuous seals. In the Early Palaeocene, basinal mud, particularly regionally extensive Major Flooding Surfaces, are believed to provide effective seals. (Ebdon et al. 1995) The extensive Palaeocene basalts in this region also act as potential seals. Traps Structural, stratigraphic and combination traps have been found in the Faroe - Shetland Basin. The rifting in the FSB during the Mesozoic which caused break up followed by post rift subsidence during the Palaeocene resulted in basin floor bathymetric depressions above the hanging walls of Northeast Southwest trending extensional faults (Cartwright et al. 2004). Some Mesozoic accumulations are therefore likely to be trapped structurally in rotated fault blocks, rollover anticlines, etc. The terminal fans that filled these bathymetric depressions also have the potential to pinch out forming stratigraphic traps as well. Compression during the Late Miocene caused contractional reactivation of the Mesozoic extensional faults and folding of the overlying Palaeocene and Middle Miocene post rift sediments into a series of Northeast - Southwest striking anticlinal domes. This switch from hanging wall bathymetric depressions to anticlinal domes has led to present day effective traps. The anticlines also acted as foci for gas migration. However, the time of compression and differential uplift may be a negative factor by causing the hydrocarbon phase to spill during structural reorganization. The hydrocarbon may have either escaped via seeps or migrated updip into shallower traps (Cartwright et al. 2004). 4.1 Play Elements 8 4.2 Prospectivity Table 4.1 Table 4.1 Risk & Resource summary table 4.2.1 Balblair Prospect Description The Balblair prospect is a 4-way dip closed structure at base basalt level. Mapping of of the top basalt event is straightforward, however the base basalt event is more subjective. What it does clearly show hoever is the presence of two lava escarpments which cross the acreage and the structural closures of Balblair and Dalwhinnie are located directly beneath these escarpments (Fig. 4.1). The basalt layer can be seen to become thinner over Balblair by onlap, suggesting that Balblair formed a structural high prior to deposition of the basalt in the Early Eocene. The overlying escarpment (labelled Escarpment 2) is observed on a parallel section (FSB2000-101) to have internal clinoform character and to be related only to the youngest lava flow Fig. 4.2. The Balblair structure is illustrated by seismic line FSB99-214D Fig. 4.3 and the geoseimic section shown (Fig. 4.4). The primary reservoirs are assumed to be Palaeocene or Mesozoic in age, sitting beneath the basalt closure. 4.2 Prospectivity 9 1ºW 0º48’W 0º36’W 0º24’W 0º12’W 0º 0º12’E 0º24’E 0º36’E 63º20’N N 0º48’E 4D 21 9B9 FS Acreage applied for 0 40 km 2 10 000 B2 FS -2500 Balblair 63º10’N 63º10’N Escarpment 2 -6500 63ºN 63ºN 223 222 Dalwhinnie 219 218 62º50’N 62º50’N Escarpment 1 62º40’N 62º40’N Base Basalt Depth Structure (m) 1ºW 0º48’W 0º36’W 0º24’W 0º12’W 0º 0º12’E 0º24’E 0º36’E 0º48’E Fig. 4.1 Base Basalt Depth Structure.. Outline showing Balblair prospect & Dalwhinnie Lead. 4.2.1 Balblair Prospect 10 Fig. 4.2 Lava Escarpments - Seismic Detail. Illustrating the internal clinoform character of the lava escarpments. Data from TGS. 4.2.1 Balblair Prospect 11 Fig. 4.3 Seismic Line FSB99-214D. This line illustrates the Balblair and Dalwhinnie structures. Data from TGS. 223/21 TWT NW (ms) 223/26 223/27 223/28 219/3 SE Blocks Applied For 1500 1500 2000 2000 e Mid Pleistocen Sea Bed Escarpment 1 Escarpment 2 2500 2500 Mid Miocene 3000 3500 3000 Top Basalt 4000 3500 Basalt Base 4000 4500 4500 5000 5000 5500 5500 Balblair Sub Basalt High Dalwhinnie Sub Basalt High 6000 6000 0 6500 20 km 6500 Fig. 4.4 Geoseismic section through Balblair Prospect & Dalwhinnie lead. Risking Table 4.2 4.2.1 Balblair Prospect 12 Table 4.2 Balblair Prospect Risk table. Resources Table 4.3 Table 4.3 Balblair Prospect Resource table. 4.2.1 Balblair Prospect 13 4.2.2 Dalwhinnie Lead Description The Dalwhinnie Lead is a structural closure at the Base Basalt in the two way time domain but after depth conversion it is much less secure (Fig. 4.1). This uncertainty is compounded by the lack of seismic coverage in this area. The structure is tentatively mapped with the crest at 3000m and up to 250m of vertical relief. The overlying basalt section varies from 1000m to less than 200m in thickness across the structure associated with the lava escarpment (Fig. 4.2). The seismic (Fig. 4.3) and geoseismic (Fig. 4.4) sections illustrate the Dalwhinne lead. Risking Table 4.4 Table 4.4 Summary risk table for Dalwhinnie Lead. Resources Table 4.5 4.2.2 Dalwhinnie Lead 14 Table 4.5 Dalwhinnie Lead volumetric parameters.. The percentage of on block reserves refers to the blocks directly applied for within this application. 4.2.2 Dalwhinnie Lead 15 5 Conclusions The 2D seismic acquisition, whilst helping to provide more control on the mapping of the Balblair & Dalwhinnie feature was not able to significantly de-risk the prospectivity. Major uncertainty still exists with the identification of the base basalt seismic marker, and the interpretation of the underlying Palaeocene and Mesozoic structures and with it the identification of potential reservoir packages. The sub-basalt play has now been the target of a number of exploration wells such as William (6005/13-1) and Brugden (6104/21-1), and more recently Ann Marie (6004/8a-1), Lagavulin (217/15-1Z), and the Brugden re-drill (6104/21-2). The common theme from these results is that the basaltic sequence (basalt and associated hyaloclastites etc) are far thicker than first anticipated, and that any potential reservoirs are too deep to have a viable preserved porosity and for that reason, the sub-basalt play is now effectively dead. 5 Conclusions 16 6 Clearance Faroe Petroleum, as operator of License P1852 has approved this relinquishment report for publication by the DECC. Permission to show the seismic lines contained within this report has also been obtained from TGS. 6 Clearance 17
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