assessment of hydrocarbon potential in cooper basin, australia

ASSESSMENT OF HYDROCARBON POTENTIAL IN COOPER BASIN, AUSTRALIAUniversity of Miami Rosenstiel School of Marine and Atmospheric ScienceTeam Members: Putri el AkmalCaitlin Augustin (Team Captain)Ben GalfondPaul HaganDeniz Kula

April 12, 2013

Executive Summary• Economic viability

• Multiple revenue streams• Oil and Gas Generation

• Primary play is the Patchawarra formation

• Secondary plays are the Mooga and Tirrawarra formations

• Prospects• Hurricane: 71% chance of success• Ibis: 76% chance of success• Sebastian: 80% chance of

success• Leads

• Merrimelia Formation• Coal Seam Gas

Sebastian 116.77 MMBOE

Hurricane 28.54 MMBOE

Ibis 58.04 MMBOE

Reynolds et all, 2006

Location: Southeast Australia•Study area•Data given

• 3D seismic• Well logs• Well reports

Introduction

Exploration History

• 40% success rate for gas exploration• 18% success rate for oil exploration• Underexplored relative to other basins• Focus on “low hanging fruit”• Commercial standards

•1.23 MMBOE Oil•.638 MMBOE Gas

0 50 100 150 200 250 300 350 400 450 5000

20

40

60

80

100

120

140

160

180

Cooper Basin Gas Commercial Success Rate

Gas Exploration WellsG

as D

isco

verie

s

0 100 200 300 400 500 600 7000

20

40

60

80

100

120

140

Cooper Basin Oil Commercial Success Rate

Oil Exploration Wells

Oil

Dis

cove

ries

0 50 100 150 200 250 3001960

1965

1971

1976

1982

1987

1993

1998

2004

2009

2014

Cumulative Commercial Discoveries Oil and Gas

Expl

orat

ion

Year

Introduction

REGIONAL CONTEXTTectonic setting • Regional context • Analogues

• Proterozoic basement of volcanics, radiogenic elements and granitic intrusions

• Earliest tectonic evidence is tensional rifting

• Compressional foreland basin throughout the remainder of sedimentary deposition

The Basin Complex

Hallman, et al, 2007


Regional Context • Integrated Petroleum System • Technical Interpretations • Risk Assessment, Hydrocarbon Occurrence, Volumetrics and Technical Recommendations

Warburton Development

• Tasman Line – paleo east coast• Cambrian-Ordovician deposition

• Early volcanics• Marine & terrestrial deposits

• Compressional folding and faulting

Roberts, et al, 1990



UnderlyingCompressional Structures•Patchawarra Trough •Merimella high•Nappamerri Trough

•Troughs fill during Cooper deposition•Create closures and angular unconformities

Image: DMITRE, AustraliaPearson Scott Foresman, 2007


Cooper Development

Alexander, et al, PGSA vol 4


Apak, et al, 1997


Eromanga Development

Alexander, Sansom, Cotton, 1996



Analogue – Junggar Basin China

• Same compressive regime• Foreland basin

• Rejuvenated faults• Permian and Triassic hydrocarbons• Lacustrine and fluvial deposition• Channel sand reservoirs• Oil and Gas reserves

• Over 100 billion m3 (630 billion MMBOE) of Kelameili gas field is confirmed by the National Mineral Reserves Committee

• Annual production capacity 710 million m3 (4465 million MMBOE) at the end of 2009

China National Petroleum Corporation

Sun, et al, 2010


INTEGRATED PETROLEUM SYSTEM ANALYSISSource • Generation • Reservoir • Trap Formation • Seal • Migration

Generation Window

Mix of Type II/III kerogens, from lacustrine and

terrigenous sources (C/D/E) results in narrow oil window

and dominantly gas production


Thermal Models

• Cooba well logs reported an average thermal gradient of 2.8 °F/100’• AFTA and ZFTA show that this high gradient is a recent thermal spike• A thermal gradient of 2.1 °F/100’, closer to historical steady state, best fits our data


Source Maturation: Below the Nappamerri seal

• Tirrawarra formation in our seismic range is peak mature for oil but only early mature for gas

• Patchawarra maturity is very similar to Tirrawarra, peak mature for oil, but too early for significant gas.

(6.2 miles)


(6.2 miles)

• Large, deep gas kitchen down-dip from our study area is likely gas source for Tirrawarra and Patchawarra formations

Source Maturation:Below the Nappamerri seal


(62 miles)

Map generated in Trinity with data provided by DMITRE

Source Maturation: Mooga Maturation

• Mooga is not mature, and any hydrocarbons would have had to migrated up from deeper source rock.

• Nappamerri maturation is early oil, residual gas likely migration from regional gas kitchen.

(6.2 miles)


(6.2 miles)

Patchawarra Facies Analysis

• Primary play target• Tested pay in all three wells• Large coal source• interbedded sandstone reservoir


3200.00 3300.00 3400.00 3500.00 3600.00 3700.00 3800.00 3900.00 4000.00 4100.00 4200.007000

7500

8000

8500

9000

9500 Pressure (psig)

dept

h (ft

adj

uste

d fo

r kb)

Pressure v. Depth

PlotCooba

Water Gradient

Slope=.43

Seals

Gas GradientSlope=.1


1500 1750 2000 2250 2500 2750 3000 3250 3500 3750 4000 4250 4500 4750 50005000

5500

6000

6500

7000

7500

8000

8500

9000

9500

10000

Pressure v. Depth

PlotMeranji

Water Gradient

Slope=.43

Seals



3600 3700 3800 3900 4000 4100 4200 4300 44008000

8100

8200

8300

8400

8500

8600

8700

8800

Pressure v. Depth

PlotPelican

Water Gradient

Slope=.43

Seals



TECHNICAL INTERPRETATIONSWell-log interpretation • Consistency of seismic • Geologic concepts • Play Element Maps

Well Analysis



Well Log CorrelationDT DT DTGR GR LLD GR LLD

L.C

arbo

n

L.C

arbo

nıfe

E.

Per

mıa

n

Per

mıa

nE

.Tria s

M.J

uras

L.Ju

raE

arly

to L

ate

Cre

tace

ous

4.21 miles 4.76 miles

5000 ft 5000 ft 5000 ft

10000 ft 10000 ft

7500 ft 7500 ft 7500 ft

Residualgas only


Residualgas and oil

Seismic Ties


GR RHOBDTLLD

Cadna-owieEarly Cretaous

Nappameri SealEarly Trassic

NamurMiddle Jurassic-E.Creta

Patchawarra CoalEarly Permian

Tirrawarra Sandstone

Late Carboniferous-E.P

Cross Section


1)Fault Type: Transpressional Fault2) Uplift: Folding to Eromanga3)Erosion:Patchawarra and Toolache

A B

B

A

Stratigraphic Traps


Stratigraphic Trap:Patchawarra Formation

A BPelican

B

A

Pinch out

Play Events Charts


#1: Tirrawarra

#2: Patchawarra

#3: Mooga

Play #1 Tirrawarra Formation• Pelican well is

shown to be outside of structural closure despite flowing water and showing hydrocarbons

• Cooba contains shows tight gas, yet no trap


(6.2 miles)

Play #1 Tirrawarra Formation• SW in the Tirrawarra was 70-80% with good porosity of 10-14%• Produced 204’ of slightly gas cut mud with oil film.• Well has hydrocarbons, but the good porosity and high rate of water

production combined with moderately high SW indicate that Pelican well is in a trap, it is in the bottom of the transition zone close to free water.


Play #1 Tirrawarra Formation

• To include the Pelican in the trap, we can extend the trap as shown.

• This indicates the structure may close in the Northeast, creating a much larger trap.

• Cooba’s 4-way closure is believed to extend beyond our map.

• Meranji tests and logs also reveal gas and oil shows and it is thus in the trap


(6.2 miles)

Tirrawarra Play

Source: oil and gas mature

.9

Reservoir: tested pay, traps

1

Seal: Murtee shale

.83

Play Risk

.75

SourceSeal

Reservoir

DMITRE, Australia


Play #2 Patchawarra Formation

• Cooba 4-way again is outside the scope of our seismic, though hydrocarbon presence lets us know it is in a trap

• Meranji is tight, but has movable gas and condensate, fitting with our seismic interpretation of being in a trap


(6.2 miles)

Play #2 PatchawarraFormation

• Pelican well logs corroborate the structural trap at this level, as the SW measured at the well logs agree with expected SW values 60ft above free water from pseudo capillary pressure estimates

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 10

50

100

150

200

250

300

350

400

450

500

Pseudo Capillary Pressure Relationship (Drainage direction)HC Column Height (Meters) (method of Hawkins, Luffel, and Harris, 1993)

Patchwarra 1Patchawarra 2Patchawarra 3Patchawarra 4

Non-wetting phase saturation (%)

Equi

vale

nt H

C C

olum

n H

eigh

t (m

eter

s)


Play #2: Patchawarra Play

Source: oil and gas mature

.9


.83

Seal: Nappamerri Shale

1

Play Risk

.75

SourceSeal

Reservoir

DMITRE, Australia


Play #3 : Mooga Formation

• Pelican is reported to be water saturated with only trace oil and gas, indicating it is likely just outside the trap as mapped

• Cooba logs show gas that is interpreted as residual

• Meranji tests movable oil, confirming it is in the trap


(6.2 miles)

Play #3: Mooga Formation

Source: immature, oil migrates to reservoir

.3


1

Seal: Cadna-owie formation

1

Play Risk

.3

Source SealReservoirDMITRE, Australia


RISK ASSESSMENT, HYDROCARBON OCCURRENCE, VOLUMETRICS AND TECHNICAL RECOMMENDATIONS

Prospect Locations


Prospect Locations• Each prospect reaches three plays• Each prospect is in a trap on each play


(6.2 miles)

(6.2 miles)

(6.2 miles)

Hurricane Prospect: Traps

Patchawarra and Tirrawarra are stratigraphic traps against the unconformity


Mooga is a 4-way trap

Hurricane Prospect: Play and RiskTrap .9

Porosity .8

Sw .8

Reservoir Quality

1

x .58

Trap .9Porosity .8

Sw .8Reservoir

Quality1

X .58

Trap .9

Porosity .8

Sw .8

Reservoir Quality

.9

x .52

Mooga

Tirrawarra

PatchawarraFormation GCOS (Play

Risk x Prospect Risk)

Mooga .17

Patchawarra .43

Tirrawarra .39


Hurricane Prospect: Probability and

Volumetrics

FormationMin

RecoverableMMBOE

Most Likely

RecoverableMMBOE

Max Recoverable MMBOE

Tirrawarra 5.45 9.01 13.48

Tirrawarra, 25% CO2

3.93 6.83 10.11

Patchawarra 9.51 15.680 23.47

Patchawarra, 25% CO2

7.13 11.76 17.61

Mooga(Oil) 6.04 9.95 14.85

71% probability

that we will be successful in

one of the three plays

Volumetrics calculated using Palisade @Risk softwareRecovery factor of 21% oil, 64% gas (DMITRE, Australia)Lithology and facies information from well logs


Ibis Prospect: Traps

4-way closures, possibly bounded by faults


A B

BA

Ibis Prospect: Play and RiskTrap 1

Porosity .8

Sw .8

Reservoir Quality

1

x .64

Trap 1

Porosity .8

Sw .8

Reservoir Quality

1

x .64

Trap 1

Porosity .8

Sw .8

Reservoir Quality

.9

x .58

Mooga

Tirrawarra



Mooga .19

Patchawarra .49

Tirrawarra .44


Ibis Prospect: Probability and

Volumetrics

76% probability



FormationMin

RecoverableMMBOE

Most Likely

RecoverableMMBOE


Tirrawarra 24.54 16.28 16.38Tirrawarra, 25% CO2 18.41 12.21 12.29

Patchawarra 30.813 51.118 76.158

Patchawarra, 25% CO2 23.10 38.34 57.19

Mooga(Oil) 4.55 7.49 11.18



Sebastian Prospect: Traps

A B

B

unconformity

Merimelia Fm Limit of Tirrawarra Ss +

Patchawarra Coal (Pinch out )

A

TirrawarraPatchawarra

AA

• Stratigraphic traps• East-west compression oblique to NE trending basement

features


Sebastian Prospect: Play and RiskTrap 1

Porosity .9

Sw .9

Reservoir Quality

1

x .81

Trap 1

Porosity .9

Sw .9

Reservoir Quality

1

x .81

Trap .6

Porosity .9

Sw .9

Reservoir Quality

.9

x .44

Mooga

Tirrawarra



Mooga .24

Patchawarra .61

Tirrawarra .35


Sebastian Prospect: Probability and

Volumetrics

80% probability



FormationMin

RecoverableMMBOE

Most Likely

RecoverableMMBOE


Tirrawarra 23.66 39.205 58.59Tirrawarra, 25% CO2 17.75 29.4 43.94

Patchawarra 22.793 15.288 9.279Patchawarra,

25% CO2 6.96 11.47 17.09

Mooga 45.985 75.901 113.483



New Technologies• Hydraulic fracturing

effectively creates permeability in tight rock by inducing fractures to release and conduct hydrocarbons

• Our targeted reservoirs all have good porosity and hold hydrocarbons; hydraulic fracturing will allow us to extract this large volume from tight rock previously deemed noncommercial

(Suchy and Newell,2012)


Mid Term Lead: Merimellia Formation

• Near the large gas kitchen

• Similar structures to the Patchawarra and Tirrawarra

• Deep formation, poor seismic—not low hanging fruit, which is why it has not been explored

DMITRE, Australia


Long Term Lead: Coal Seam Gas

•Depth of 1800 M•Natural closure of the cleat system

•Thick early Permian coal seams in the Patchawarra Trough are target

5.0% 90.0% 5.0%

1.24 9.76

02

46

810

1214

1618

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

0.18

Recoverable

Recoverable

Minimum0.251Maximum17.14Mean 4.67Std Dev 2.64Values 5000

Volumetrics for a sample basin, 550 acre flooding plainMin 13.993

Most Likely 38.65

Max 25.464

DMITRE, Australia


STEPS TO SUCCESS AND CONCLUSIONS

Next Steps

• Data needs• Deeper, higher resolution seismic to explore deeper plays and look at channel sands

• Well data from prospect wells to determine if they are in pressure communication in large traps (Mooga formation)

• Contingency plans• Drought prone region, will negotiate water rights to the Cooper’s Creek with neighboring tenements

Steps to Success and Conclusions

Political and Economic Environment

• Political Environment• New tenements for sale• Global increase in demand for hydrocarbon products

• Australian demand for energy independence

• Economic Environment• Technological improvements• Substantial network of buyers for unconventionals

• Increased market value of oil/gas


Refining and ShippingAvailable gas and liquids pipelines exist from prospect sites to processing facilities in Mooba


Diverse revenue streams

$$$

Oil

Wet Gas

Shale Gas

Unconventionals

Coal Seam Gas

Carbon

Dioxide


Executive Summary• Economic viability

• Multiple revenue streams• Oil and Gas Generation

• Primary play is the Patchawarra formation

• Secondary plays are the Mooga and Tirrawarra formations

• Prospects• Hurricane: 71% chance of success• Ibis: 76% chance of success• Sebastian: 80% chance of success

• Leads• Merrimelia Formation• Coal Seam Gas

Sebastian 116.77 MMBOE

Hurricane 28.54 MMBOE

Ibis 58.04 MMBOE


THANK YOU FOR YOUR TIME

QUESTIONS?Special thanks to:

John Dolson, Chris Piela, Ralf WegerPalisade, Zetaware

assessment of hydrocarbon potential in cooper basin, australia

Documents

hydrocarbon occurrence

technical recommendationshttp

mmboe reynolds et

cooper basin

gas exploration

mmboe oil

mmboe gas introductionhttp

success rate