Lecture 3: Frontier Exploration

Question 1

What are the initial things to consider when beginning frontier exploration? 6 things

Answer 1

No guarantee of success
High risk - high reward
Desk studies
Basin screening
Field studies
Buy/Farm in/out

Question 2

Give two potential issues with frontier exploration

Answer 2

Technical e.g. deep water, Gulf of Mexico

Political e.g. Mexico

Question 3

What does acquisition of acreage allow?

Answer 3

Obtaining rights to explore and produce hydrocarbons

Question 4

What can early installed production facilities allow?

Answer 4

Can be hired to companies which reach production at a later stage

Question 5

What are the licencing rounds?

Answer 5

Bid based on finance
Bid based on technical programme
Time limit before relinquishment
Annual fees

Question 6

When might tax incentives be offered?

Answer 6

When there are no proven reservoirs

Question 7

Give an advantage and two disadvantages of farm ins

Answer 7

Advantage:
Quick
Disadvantage:
Expensive entrance or exit from licence
May involve paying most/all of cost of drilling a well

Question 8

Seeps are. A direct hydrocarbon indicator. How might this occur? Three things

Answer 8

Seal failure
Tertiary migration
Dissipation in the near surface

Question 9

Name and describe two methods of trap leaks

Answer 9

Capillary failure: under hydrostatic conditions

Fracture failure: under/over-pressure conditions

Question 10

Give an example of a direct hydrocarbon indicator (DHI) in seismic data for gas and oil

Answer 10

Gas - flat spots

Oil - suitable trap geometry

Question 11

Seismic studies are expensive, name three different types

Answer 11

Spec surveys
Multi-client surveys
Proprietary surveys