P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
Relinquishment Report
for
Licence P1849
Blocks 214/5C, 214/9D and 214/10B
March 2015
OMV (U.K.) Limited
Page 1 of 10
P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
Licence Information
Licence Synopsis
Work Programme Summary
Database
Prospectivity update
Further Technical Work Undertaken
Resource & Risk Summary
Conclusions
Clearance
List of Figures
Figure 1. P1849 Licence Location Map
Figure 2. P1849 Seismic Database
Figure 3. Seismic Cross Section of Typhoon Extension
Figure 4. Typhoon Depth Structure & Amplitude Maps
List of Tables
Table 1. Resource Summary
Table 2. Risk Summary
Page 2 of 10
P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
P1849 DECC Relinquishment Report
OMV (U.K.) Ltd.
1. Licence Information
Licence Number: P1849
Licence Round: 26th Seaward Licensing Round
Licence Type: Frontier
Block Numbers: 214/5c, 9d and 10b
2. Licence Synopsis
Licence Status
UK offshore Licence P1849 was awarded to OMV, Dana Petroleum and Rocksource in the 26th
Licence Round on the 10th of January 2011 as a Frontier Licence.
The License required that a 50% (or total) relinquishment be made before January 2015 with a drill
or drop decision or full relinquishment decision to be made up until end of phase 1 in January 2017.
The licence was principally acquired to examine the exploration potential of the Lower
Eocene/Upper Palaeocene stratigraphy. An AvO anomaly was identified as being distinct from
Palaeocene Lavas and formed the primary “Typhoon Extension” lead. Following analyses
developed from the geological work programme (which included licencing new seismic, seismic
reprocessing and other studies) OMV and partners took the decision to relinquish Licence P1849
due to the high exploration risk of the main leads. The key risk for Typhoon Extension was deemed
to be reservoir presence and quality; concluded from key studies which are summarised below.
 The observed negative AvO (amplitude variation with offset) response is not supportive of
hydrocarbon presence. The AvO response is best interpreted as a lithological signature.
Given the discontinuous nature of the AvO response - coals are interpreted. This
interpretation is supported by geological studies which suggest a terrestrial to marginal
marine depositional environment.
 An EEI (extended elastic impedance) study investigated amplitude variation across angle
gathers. The study was designed to ascertain whether an AvO response could be related to
a possible fluid effect. Results showed that the AvO response is most likely a lithological
(and not a fluid sensitive) amplitude response.
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P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
Figure 1: P1849 Licence Location Map
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P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
3. Work Programme Summary
OMV and its partners Dana Petroleum and Rocksource have undertaken an extensive exploration
programme in order to understand the level of prospectivity of licence P1849. The initial firm work
commitment was as follows:
Initial Work Programme:
a. 304 sq km 3D seismic re-processing
i.
Complete. OMV purchased the PGS MegaMerge Plus seismic data
b. Drill or drop to 3700 m or Top Lamba Formation
i. Decided to drop
Other:
a. Volcanic Study
i.
Complete. Igneous intrusive and extrusive history of the NE Faroe-Shetland Basin
(Nick Schofield, University of Birmingham, now University of Aberdeen, VMRC).
b. AvO & EEI Study
i.
Complete. A study was completed to analyze the amplitude variation across angle
gathers to ascertain whether AvO behavior exists and whether it could be related
to a fluid effect with a review of preliminary AvO models.
304 sq km 3D seismic re-processing
In 2011 OMV and its partners purchased 304 sq km of PGS MegaMerge Plus seismic data and the
associated reprocessing. The seismic aided interpretation and provided a more comprehensive tie to
the PGS MegaMerge 3D dataset. In particular the 2011 reprocessed 3D seismic provided a clearer
image of the intra-basalt and sub-basalt reflectors for AvO analysis. OMV also used regional gravity
and magnetic data to aid interpretation of the deeper strata.
Drill or Drop to 3700 m or Top Lamba Formation
The commitment is outstanding. In 2014, partners agreed that future prospectivity was limited in the
P1849 licence. The work was peer reviewed at OMV Head Office in September 2014 with a
recommendation, supported by partners, to relinquish the licence. Subsequently the licence was
dropped.
Volcanic Study
OMV mapped interpreted igneous bodies, which were identified in the new 3D seismic dataset on the
licence, in collaboration with Dr Nick Schofield (Durham University) which was part of a greater study
with the Volcanic Margin Research Consortium (VMRC). The aim of the work was to quantify the
location and nature of all the igneous bodies contained within the 1435 sq km of PGS MegaMerge
Plus 3D dataset with particular focus paid to the new 304 sq km of 3D seismic and T40 age igneous
body encountered in well 214/9-1.
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P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
AvO and EEI Study
AvO (Amplitude vs Offset) and EEI (extended elastic impedance) studies were performed to analyze
the amplitude variation across angle gathers to ascertain whether AvO behavior exists and whether it
could be related to a fluid effect - with a review of preliminary AvO models completed on a previous
dataset.
4. Database
The database used in the evaluation of licence P1849 can be seen in Figure 2.
Figure 2: P1849 Seismic Database
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P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
5. Prospectivity Update:
The most prospective target in Licence P1849 was identified as a Lower Eocene/Upper Palaeocene
lead named Typhoon Extension.
Early work identified the Typhoon Extension lead which is defined by an amplitude-versus-offset
(AvO) anomaly. This anomaly is distinct from the lava in well 214/9-1 and was thought to be a
stratigraphic trap with T45 sands distinguished by a dimming of amplitude with offset.
As part of the work programme, PGS MegaSurvey Plus 3D seismic data was licenced over the area.
These data include a reprocessed version of the original MegaSurvey data, with improved imaging of
the Palaeocene (as well as pre-stack data allowing further investigation of fluid effects by analysis of
offset data). A considerable amount of work was carried out on the pre-stack data to identify and
interpret any AvO anomaly that might be present. The initial interpretation identified an increase in
seismic amplitude at Top Flett level. It was thought that this increase in amplitude might be related to
the presence of sand and/or gas, and could be a continuation of the gas identified in 214/9-1
discovery. However; new work on the AvO response from the Typhoon Extension does not seem to
indicate gas and it is more likely a lithological signature. New geophysics work would suggest that
this response is caused by a coal horizon; which fits with the geological model of a marginal
marine/terrestrial environment and the observed discontinuous character of the anomaly. The
geophysical work has therefore greatly increased the risk for reservoir presence.
Two small Middle Eocene Leads were also identified but these are small and show no direct
hydrocarbon indicators like those observed in Tobermory.
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P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
Figure 3: Seismic Cross Section – Typhoon Extension
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P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
High
Low
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
3000 m
4000 m
Figure 4: Typhoon Time Depth Structure & Amplitude Maps
6. Further Technical Work Undertaken
Volcanic Study
OMV undertook an assessment of the igneous bodies identified in the newly interpreted 3D seismic
dataset on the licence in collaboration with Dr Nick Schofield (Volcanic Margin Research Consortium
(VMRC)). The aim was to quantify the location and nature of all the igneous bodies contained within
the 1435 sq km of PGS MegaMerge Plus 3D dataset - with particular focus paid to the T40 age
igneous body encountered in well 214/9-1.
AvO and EEI Study
A study was completed to analyse the amplitude variation across angle gathers to ascertain whether
AvO behaviour exists and if it could be related to a fluid effect with a review of preliminary AvO
models. This provided a simple but robust means of driving lithological and fluid sensitive seismic
impedance volumes. The study concluded that an amplitude anomaly is clear and distinct from an
igneous body which was intercepted by well 214/9-1, and corresponds with the Top Flett Formation in
the Typhoon Extension lead. The AvO response does not seem to indicate gas but is better
explained by a lithological signature.
Page 9 of 10
P1849 (Frontier Licence) Relinquishment
Blocks 214/5C, 9D, 10B
th
26 Licence Round
OMV (op) 50%
Dana Petroleum 35%
Rocksource 15%
7. Resource and Risk Summary
Table 1. Resource Summary
Prospect,
Lead,
Discovery
Name
P,
L,
D
Stratigraphic
Level
Unrisked Recoverable
resources
Low
Typhoon
Extension
L
Flett
Gas BCF
Central
79
422
Geological
Chance of
Success (%)
High
911
10
The Geological Chance of Success was calculated as 10% for Typhoon Extension. Chance factors
are presented below.
Table 2. Risk Summary
Chance Factor
Risk (%)
Source & Migration
Reservoir Presence
Reservoir Quality
Seal Presence
Structure & Trap
HC Quality
Total
0.85
0.5 (critical risk)
0.5 (critical risk)
0.8
0.6 (critical risk)
1.0
0.1
The risk is too high to progress the prospect any further.
8. Conclusions
Following the results from seismic interpretation on the PGS MegaMerge Plus seismic data, AvO
analysis and a volcanic study, the partnership concludes that there is no commercially viable
prospectivity remaining within the licence area and wishes to relinquish the P1849 licence.
9. Clearance
OMV (U.K.) Limited confirms that DECC is free to publish this document and that any third party
ownership rights have been cleared for publication.
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