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NORTH SEA FIELDS ATLAS

A geoscience, engineering and economics review


of oil and gas fields in production and under development
Introduction

A geoscience, engineering and economics review of oil and gas fields


in production and under development in the North Sea
This volume is the most recent update of a comprehensive discounted to the first year of the project. The other two reports
compendium of the important characteristics of oil, gas and are discounted to 1st January 1996. All three reports are in
condensate fields in the North Sea originally released in 1989 by sterling terms deflated (both historically and future) to 1st January
Energy Resource Consultants. 1996.

The study was initially updated in 1990 and 1992 and in this 1996 The cash flow reports presented include an annual net present
version, now describes over 110 fields and complexes of fields in value column which is expressed using a 10 per cent. discount rate
terms of the salient geological features of the accumulation, a applied to real (deflated) cash flows. Life of field NPVs are also
synopsis of the reservoir and facilities engineering aspects of the provided using a range of discount rates applied to both real and
field and the results of basic economic modelling. nominal cash flows. In addition to annual liquids and gas
production volumes (expressed in thousands of barrels per day,
The study covers the producing fields and many of the fields under and millions of standard cubic feet per day) we have also shown
development on the UK, Danish, Dutch and Norwegian volumes of tariffed product expressed as barrels of oil equivalent
continental shelves. per day (converted on the basis of 6,000 standard cubic feet equals
1 barrel of oil).
The study is based on released data.The Department of Trade and
Industry in the UK arranges for the public release of most data The study has been carried out by Energy Resource Consultants,
related to wells drilled in the UK sector of the North Sea five a division of PGS Reservoir Limited. Energy Resource Consultants
years after well completion. In the Danish and Norwegian sectors offers a unique range of products and services and has performed
of the North Sea most well data are available five years after well projects in support of diverse objectives. These include:
completion, while in the Dutch sector, released well data are
available ten years after well completion. In addition to well data licence round evaluations
released in this way, much data relating to producing fields is exploration consultancy
published by companies involved in field development or finds its basin modelling
way into the public domain through technical papers or company interpretive seismic processing
reports. integrated field studies
independent expert and equity support
It should be noted that the structure maps used in the Stratigraphy reservoir characterisation
and Structure section have been entirely sourced from the public reservoir simulation
domain. It has therefore been necessary to rely on the latest development planning
published map. As a result, field outlines and well positions can reserves evaluation
sometimes vary from the local field map presented on page 1 of production forecasting
each chapter. This gives the most up to date representation of the bank financing and stock market quotation
wells drilled and field extent. acquisitions/disposals and mergers
facilities layout, scheduling and cost studies
Capital and operating cost estimates are based on public domain UK and international economic evaluation services
information supplemented by our own estimates. The economic
modelling has been carried out on a project basis with each field Energy Resource Consultants has studied almost all areas of the
considered in isolation for tax purposes where appropriate. UKCS and virtually every producing field in the North Sea, with
the exception of the single owner fields. It is stressed that none of
Gas prices used have been derived where relevant, from an the confidential information which has come into the possession
assumed oil price of $17 bbl in 1996, increasing by 4 per cent. per of Energy Resource Consultants during proprietary consultancy
annum in nominal terms thereafter, and an exchange rate of 1 studies has been used in this study.
=US$1.55 in 1996, and US$1.50 thereafter.
Energy Resource Consultants is a major force in the petroleum
Modelling is presented for full field life (where possible) and from industry with offices in Marlow, Aberdeen, Norway, Abu Dhabi and
the beginning of 1996 with an assumed inflation rate of 4 per cent. the USA.
from 1996. Post tax cash flows are subsequently deflated at 4 per
cent. per annum to establish a real cash column. Copyright

A number of the fields in the Dutch sector are grouped in a so No part of this report may be reproduced by or for any other
called Joint Development Area (JDA). The fields include K7, K8, company, organisation or individual without the written consent of
K11, K14, K15, and L13. The development costs and production of Energy Resource Consultants.
fields in the JDA are amalgamated and distributed among the
participating companies. There are at present five participating
companies in the JDA (NAM, CLAM, Clyde Petroleum, Oranje
Nassau Energie and EBN) and their interest in the agreement is
determined by their reserves which are recognised as
economically recoverable in the individual JDA licences. The
interests were previously adjusted annually. However, the JDA
partners have agreed to freeze their equity interests for five years Energy Resource Consultants
from 1st January 1994, in order to avoid the complex procedure Chapel House, Liston Road,
of redetermining equity every year.This unusual arrangement must Marlow, Bucks
be borne in mind when reviewing the economic analysis of the JDA
SL7 1XJ
fields.

Three sets of economics are presented in each chapter. The Full Energy Resource Consultants is a division of PGS Reservoir Limited
Field Life Economic Indicators report is expressed in sterling
Go To
Contents Location Map

United Kingdom Norway


Alba Lyell Aasgard Complex
Alwyn North Machar Balder
Amethyst Magnus Brage
Andrew Markham Cod
Anglia Maureen Draugen
Argyll, Duncan & Innes Miller Ekofisk Complex
Armada Complex Montrose & Arbroath Embla
Audrey Morecambe Frigg Complex
Auk Murchison Gullfaks
Balmoral Murdoch Gyda
Barque & Clipper Nelson Heidrun
Beatrice Ninian & Columba Heimdal
Beryl Area Pickerill Hild
Brae North & East Piper Oseberg & Veslefrikk
Brae South & Central Ravenspurn North Sleipner
Brent Rough Snorre
Britannia Schooner Statfjord Complex
Bruce Scott Troll
Buchan Sean Ula
Caister Strathspey
Claymore & Scapa T Block
Cleeton & Ravenspurn Tartan Area Netherlands
South Thames Complex
Clyde Thistle, Deveron & Don F2a, F3 & F6
Cormorant V Fields F15a
Dunlin Victor K4b/K5a
Eider & Tern Viking K6, L4 & L7
Emerald Welland K7, K8 & K11
Esmond Complex Welton K12
Everest West Sole K13
Forties Wytch Farm K14
Fulmar K15
Galleon K17
Gannet & Guillemot L2
Gryphon L8
Heather L10
Hewett L12/L15
Hudson L13
Humbly Grove P6
Hutton Q1
North West Hutton
Indefatigable
Ivanhoe & Rob Roy Denmark
Kittiwake
Leman Dan, Gorm & Tyra
Lomond
Field Index

Chapter Fields included in Fields included in


economic modelling tariff modelling
United Kingdom

Alba Alba
Alwyn North Alwyn North
Dunbar
Ellon
Grant
Amethyst Amethyst East
Amethyst West
Andrew Andrew Cyrus
Anglia Anglia
Argyll, Duncan & Innes Argyll, Duncan & Innes
Armada Complex Drake
Fleming
Hawkins
Audrey Audrey Ann
Auk Auk
Balmoral Balmoral
Glamis
Barque & Clipper Barque Galleon
Clipper
Beatrice Beatrice
Beryl Area Beryl A & B Nevis
Ness
Brae North & East East Brae
Brae South & Central North Brae Balmoral/Glamis
Central Brae Birch
South Brae East Brae
Beinn Heimdal
Miller
T Block
Brent Brent
Britannia Britannia
Bruce Bruce
Buchan Buchan
Caister Caister (Carboniferous)
Caister (Bunter)
Claymore & Scapa Claymore
Scapa
Cleeton & Ravenspurn South Cleeton Johnston
Ravenspurn South Ravenspurn North
Clyde Clyde
Leven
Medwin
Cormorant Cormorant Central Eider
Cormorant North Hudson
Cormorant South Pelican
Tern
Dunlin Dunlin Osprey
Eider & Tern Eider
Tern Hudson
Emerald Emerald
Esmond Esmond
Forbes
Gordon
Everest Everest
Forties Forties
Fulmar Fulmar Clyde
Gannet
Nelson
Medwin
Leven
Field Index

Chapter Fields included in Fields included in


economic modelling tariff modelling

Galleon
Gannet & Guillemot Gannet A
Gannet B
Gannet C
Gannet D
Guillemot
Teal
Gryphon Gryphon
Heather Heather
Hewett Hewett
Della
Hudson Hudson
Humbly Grove Humbly Grove
Hutton Hutton
North West Hutton North West Hutton
Indefatigable Indefatigable Bessemer & Beaufort
Baird Davy
Ivanhoe & Rob Roy Ivanhoe
Rob Roy
Kittiwake Kittiwake
Leman Leman Camelot
Lomond Lomond Erskine
Lyell Lyell
Machar Machar
Magnus Magnus
Markham Markham J6
Windermere
Maureen Maureen
Miller Miller
Montrose & Arbroath Montrose
Arbroath
Morecambe Morecambe North
Morecambe South
Murchison Murchison
Murdoch Murdoch
Nelson Nelson
Ninian Ninian Lyell
Columba B Staffa
Columba D Strathspey
Pickerill Pickerill
Piper Piper Chanter
Highlander
Ivanhoe/Rob Roy
Petronella
Saltire
Scapa (33 per cent.)
Tartan
Ravenspurn North Ravenspurn North Johnston
Rough Rough
Schooner Schooner
Scott Scott
Scott South
Sean Sean North Sean East
Sean South
Strathspey Strathspey
T Block Thelma
Tiffany
Toni
Field Index

Chapter Fields included in Fields included in


economic modelling tariff modelling

Tartan Area Tartan


Highlander
Petronella
Thames Complex Thames & Wensum Gawain
Bure Orwell
Yare Tristan
Welland
Thistle, Deveron & Don Thistle
Deveron
Don
V Fields Valiant North
Valiant South
Vanguard
Vulcan
Victor Victor
Viking Viking Victor
Welland Tristan Tristan
Welland North West
Welland South
Welton Welton
West Sole West Sole Hyde
Newsham
Wytch Farm Wytch Farm

Norway

Aasgard Complex Midgard Heidrun


Smorbukk
Smorbukk South
Balder Balder
Brage Brage
Cod Cod
Draugen Draugen
Ekofisk Complex Albuskjell Embla
Edda Ula
Ekofisk Cod
Eldfisk Gyda
Tor
West Ekofisk
Tommeliten
Hod
Valhall
Embla Embla
Frigg Complex Frigg
East Frigg
North East Frigg
Lille Frigg
Froy
Odin
Gullfaks Gullfaks Tordis
Gullfaks West Vigdis
Gyda Gyda
Heidrun Heidrun
Heimdal Heimdal
Hild
Oseberg & Veslefrikk Oseberg
Gamma North
Veslefrikk
Field Index - Netherlands

Chapter Fields included in Fields included in


economic modelling tariff modelling

Sleipner Sleipner East


Sleipner West
Snorre Snorre
Vigdis
Statfjord Complex Statfjord
Statfjord East Gullfaks
Statfjord North Snorre oil
Troll Troll East & Togi
Troll West Gas
Troll West Oil
Ula Ula

Netherlands

F2a, F3 & F6 F2a, F3 & F6


F15a F15a
K4b/K5a K4b, K5a
K6, L4 & L7 K6, L4, L7
K7, K8 & K11 K7, K8, K11
K12 K12
K13 K13 Halfweg
K4b
K5a
K10a
K10b
Markham
K14 K14fa
K14fb
K15 K15
K17 K17
L2 L2
L8 L8
L10 L10, L11a
L12/L15 L12
L15
L13 L13
P6 P6 P12
Q1 Q1 Halfweg

Denmark

Dan, Gorm, & Tyra Dagmar


Dan
Gorm
Harald
Kraka
Regnar
Roar
Rolf
Skjold
Svend
Tyra
Valdemar
Legend

Lithologies Sedimentary Structures

yyy
Mudstone.......................................................... Massive.............................................................

yyy
Silty Mudstone.................................................. Horizontal bedding............................................

Sandstone......................................................... Cross-bedding...................................................
V V V
V V V
Anhydrite........................................................... Graded bedding................................................

Dolomite............................................................ Wavy nodular bedding......................................

yyy
Limestone......................................................... Flaser bedding..................................................

Conglomerate (with sand matrix)...................... Current ripples..................................................

Conglomerate (without sand matrix)................. Wave ripples.....................................................

Adhesion ripples...............................................

Qualifiers Scour................................................................

Argillaceous.................................................................. Convolute bedding............................................

Mud Clast..................................................................... Load ball...........................................................

.
Ooid.............................................................................. Sand dyke.........................................................

Pebbly.......................................................................... Water escape structures (dishes and pillars)....

Carbonaceous.............................................................. Ruptured lamina................................................

Calcareous................................................................... Slump structure.................................................

Dolomitic....................................................................... Flame structure.................................................


V
()
V ()
Anhydritic...................................................................... Mottling.............................................................

Burrows.............................................................

Accessories
Bioturbation.......................................................
A - Anhydrite M - Mica
frac.
Si - Silica H - Halite Fracture.............................................................

Fossils in general..............................................

Field Symbols Plant debris.......................................................

Root..................................................................
Gas field, pipeline.......................

.......................Oil field, pipeline

Condensate field, pipeline.......... Panel Diagram

Evaporites

Carbonates

Well Symbols Mudstones


Siltstones, mudstones
and minor sandstones
Drilling Abandoned Oil Well
Sandstones
Oil Well Abandoned Oil Show
Conglomerates
Gas Well Gas Show

Oil & Gas Well Oil & Gas Show

Abandoned Well or Tight Hole Gas & Condensate

Platform Subsea Completion


15/30 Conoco 16/26 Chevron 16/27a Phillips SUMMARY
0 4 km
22 The Alba field lies entirely within block 16/26 approximately 200 km
19 PARLIAMENT northeast of Aberdeen in the UK sector of the North Sea. The field was
4
4 discovered in 1984 by Well 16/26-5 which was drilled to investigate a Lower
Cretaceous gas/condensate play now called Britannia. Oil was discovered
25
1 7 in sands of Eocene age at depths of around 6100 feet. Eighteen further
13
3 appraisal wells have been drilled on the structure and showed the reservoir
8 to be made up of a complex series of unconsolidated submarine channel
BRITANNIA
10 2
sands, which were deposited in a northwest - southeast trend, forming a
21 9 16/27b Chevron reservoir 8 km long and 1.5 km wide. The oil is relatively heavy at 20
6 5 14 4
15 3 degrees API, heavier than most other North Sea oils currently being
5
11 6 6 produced or under development. Oil is piped to a purpose built floating
9
23A ALBA storage unit (FSU) prior to transport to shore by shuttle tanker. This avoids
17 18 16 16/27a
10 5 Lasmo the problem of available pipeline capacity as well as blending the slightly
24 acidic Alba crude. Annex B approval was granted in 1991, being the first
7 Eocene field to obtain approval and development has been phased. Phase
20 3
8
one involved a steel platform located near Well 16/26-6 in the northern end
12 of the field. Production started from this platform in January 1994.
21/5a 22/1b 22/2a Premier Development plans for the southern area have yet to be finalised, although
2 6
Conoco Amoco
6
they will use extended reach wells drilled either from the existing northern
8 platform or from a new bridge-linked platform. Production is anticipated to
4,4A start in 1996.
21/5c 7 The current interests in the Alba field in per cent are:-
Rel. 5

22/1a
CHESTNUT Conoco Petroleum (Alba) Ltd 2.35
5
Amoco 2,2A 8 Amerada Hess Ltd 2.25
3 4 Aran Energy Exploration Ltd (Statoil) 5.00
Chevron UK Ltd* 33.17
22/2b Clyde Conoco (UK) Ltd 9.33
3
Fina Petroleum Development Ltd 12.65
Santa Fe Exploration (UK) Ltd 11.75
Unilon Oil Explorations Ltd (Bay trust Oil Explorations Ltd 8.00
Union Texas Petroleum Ltd 15.50

operator *

LOCAL SETTING

RESERVOIR CHARACTERISTICS The Alba oil field is located in the south western part of the Witch Ground
Graben between the Fladen Ground Spur to the north and the Renee Ridge
Fluid Properties to the south, approximately 200 km northeast of Aberdeen in the UK sector
of the North Sea. It lies very close to the junction of the outer Moray Firth,
Oil Gravity (degrees API) 20 with the South Viking Graben and the Central Graben.
The Lower Cretaceous Britannia field underlies the Alba field and
Gas Oil Ratio (scf/stb) 130 - 180
extends over blocks 16/27a, 16/27b, 16/26, 15/30 and 15/29a. The majority
Bubble Point Pressure, Pb (psig) 2330 of surrounding producing fields are of Paleocene age, with the Balmoral
Formation Volume Factor at Pi (rb/stb) 1.12 accumulation lying 10 km to the north, and Cyrus, Maureen and Moira at 15
Oil Compressibility (vol/vol/psi) 6 x 10 -6 and 25 km distant to the northeast. The Forties field is 20 km to the
Reservoir Pressure, Pi (psig) 2865 southeast and Everest lies 40 km to the southwest. The Chestnut
At Datum Depth of (ft TVDSS) 6274 accumulation 5 km to the southeast occurs in a similar Eocene sandstone
Reservoir Temperature (F) 170 reservoir, and lies along the same northwest- southeast trend. The Britannia
field is discussed elsewhere in this report.
Rock Properties

Rock Type Sandstone


Stratigraphic Unit Nauchlan Sand, Horda Formation
FIELD DESCRIPTION
Geological Age Eocene
Porosity Range (per cent.) 20 - 42 The Alba field is a stratigraphic trap trending northwest-southeast. The
Permeability Range (md) 700 - 10000 reservoir is within Middle Eocene sands assigned to the Nauchlan Sand
Connate Water Saturation (per cent.) Unit of the Horda Formation.
Oil Water contact - Main Field area (ft TVDSS) 6465 The sands were deposited from high density turbidity and liquified
North Western compartment (ft TVDSS) 6314 sediment currents that flowed down the palaeoslope of the Witch Ground
Graben in a northwest-southeast direction. The sands were deposited in a
Depth to top Structure (ft TVDSS) 6100
sea-floor topographic low giving the now linear channel like reservoir
geometry. The sands are generally thought to be of similar age but in Well
Reserves 16/26-5 can be seen to be younger. Porosities and permeabilities are
excellent (averaging 35 per cent. and 2800 md), although the sands are
Total Oil Reserves (MMstb) 370 almost completely uncompacted and unconsolidated, which could result in
Est. Oil Production to 31.12.95 (MMstb) 41 potential sand production problems.
Remaining Oil Reserves (MMstb) 329 Plans for the development of the field originally involved the use of two
platforms to allow tapping of all the reserves in the elongate reservoir. Only
Production the northern platform has actually been constructed with five wells pre-
drilled before its installation. As further wells were brought on stream, since
Water Depth (feet) 453 start up at the beginning of 1994, a plateau of 70,000/80,000 b/d was
Production Start Date 1994 achieved in 1995. Slot sharing has been used for the first time in the North
Peak Gas Production Oil (stb/day) 85000 Sea and provides additional slots on the platform thus leaving conventional
slots available to drill portions of the southern area, up to 18,500 feet from
Platforms 1
Alba Northern Platform. This is basically Phase 2 of the development of
Number of Wells - Producers 15 Alba, with plans involving the drilling of extended reach production wells
Planned Water injectors 5 from the existing Alba Northern facility. Modifications to the existing
Gas Injectors platform, in order to handle additional fluid streams, were started in mid
Oil Export Via Floating Storage Unit 1995, with extended reach wells expected from late 1995/early 1996.
and shuttle tanker The oil produced is dense and viscous, with a low GOR. Highly deviated
and horizontal wells will be utilised, gravel packed in an attempt to reduce
solids production from the relatively unconsolidated reservoir. Water
injection has been in place from first production to maintain reservoir
pressure and artificial lift (ESPs) will be used to enhance recovery.
The small Parliament accumulation was discovered by Well 16/26-25 in
October 1993. This lies 6 km northeast of Alba North platform and may be
developed as a satellite to Alba.
STRATIGRAPHY AND STRUCTURE

ALBA The reservoir in the Alba field comprises a series of shallow, unconsolidated

UNITED KINGDOM
TOP NAUCHLAN SAND sands assigned to the Nauchlan Sand of the Middle Eocene Horda Formation.
DEPTH STRUCTURE These sands are difficult to identify on the original seismic lines and before Well
16/26-5 was drilled they had not been perceived as a target horizon and were
00 0 2 km
61 15 unidentified in this area. More modern higher quality seismic, however, has allowed

Alba
5
(Contours in feet TVDSS) the detection of these sands between two seismic and lithostratigraphic markers.
6 The lower marker is an intra middle Eocene event termed the "Blue Horizon" by the
630 0
Operator, which can be recognised regionally both biostratigraphically and
200

6
OWC @ 6465 seismically. The upper marker is the Top Eocene or Oligocene unconformity, which
is a major hiatus in the North Sea where part of the Late Eocene section is missing.

63

64
OWC @ 6314

00
The Oligocene unconformity can be seen to be domed over the sands in the field

00
area and as such forms an anticlinal structure plunging in a northwest - southeast
10Y direction down the axis of the field. The sands were probably deposited in relative
Limit of sand deposition 64
00 bathymetric lows along which the submarine currents flowed with limited incision.
7
The migration of the current channels down the slope together with deposition of
7Y
thick sands within the channels and differential compaction of the sands relative to
6300
the surrounding mudstone sequences probably resulted in the bifurcation and re-
6400
routing of the channels and could account for the separate accumulations seen in
0 OWC @ 6465 the field.
630 8Z
12 The Alba field has three possibly separate hydrocarbon accumulations; the main
64
00 8
field area centred on Well 16/26-10Y, a small accumulation to the northwest centred
6500
on Well 16/26-15 and a small accumulation to the southwest centred on Well 16/26-
12. All can be interpreted to have separate oil water contacts. The sands in Well
16/26 16/26-5 can be seen to be younger than those in the rest of the field and were
(Modified after Mattingly GA and Bretthauer HH, 1990 and Newton and Flanagan, 1993) probably deposited from a separate diverted channel system.

SEDIMENTOLOGY AND DEPOSITIONAL INTERPRETATIVE STRUCTURAL CROSS SECTION


ENVIRONMENT
16/26-6 16/26-5 16/26-2 16/26-1
The Alba field reservoir was deposited in the Feet SW NE
Middle Eocene at a time when low sea levels 5000
allowed the progradation of a clastic shelf towards OLIGOCENE
the edge of the deep water basin. This allowed 7000
EOCENE
Nauchlan Sand
the supply of large quantities of relatively coarse
PALEOCENE
material onto the south easterly dipping ramp of 9000
the Witch Ground Graben area by means of high
density turbidity currents and liquified sediment UPPER CRETACEOUS
11000
flows.
These sediment bearing currents flowed in 13000
? DEVONIAN

migrating sinuous channels (probably palaeo- LOWER CRETACEOUS


FLADEN GROUND
SPUR
bathymetric depressions) across the submarine 15000 U R ASSIC
U P P E R T O MID D L E J
ramp. Sands would only be deposited in a small
0 2 km
part of the channel at any one time and deposition 17000
of thick sequences of sand could result in the
channel changing direction thus moving the locus
of sand deposition with time. The younger sands
in Well 16/26-5 appear to have been deposited from a channel that was swinging to represent sediment deposited from the traction part of a waning turbidity current.
the east away from the main northwest - southeast trend of the main channels. Erosion at the base of each sand unit appears to have been minimal. Many of the
Three facies can be recognised: thinly bedded sub parallel to parallel laminated primary sedimentary structures in the reservoir have been distorted by water escape
sands, thick structureless sands and rippled sands. The laminated sands are thin processes occurring just after deposition (minor effects, particularly evident in the
units of light grey sands which have slightly erosional bases locally cutting into thin rippled facies) or after burial, when the disturbance was much more severe,
medium grey mudstones, and are up to several inches thick. These are succeeded obliterating primary structures and leaving water escape vents through the sand
by the structureless sands, which can be up to several feet thick. These sands either units. Some of the thin sands above the main sand body may have been injected into
have sharp tops or grade upwards into the rippled sands, which are thought to the surrounding mudstones during these dewatering events.

REPRESENTATIVE WELL SECTION - 16/26-6

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 100 ROCK 1.95 2.95

AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 10 20 45 -15

Hemipelagic mudstones and massive


sandstones.
Mudstones act as permeability barriers
rubble
frac.
16/26-6 S Hemipelagic mudstones interbedded with
6150
thin siltstones and massive sandstones
S
deposited from distal/marginal marine
submarine sediment gravity flows and
s
turbidity currents/liquified flows.
s

Geometry
S
6200

Thinly interbedded sheet/lensoid sands and


S sheet mudstones

rubble s and k
s High and k retained in uncompacted,
poorly cemented sands.
frac.
6250

M Massive sandstone sequence composed of


frac.
NAUCHLAN SAND UNIT

() amalgamated beds deposited from


HORDA FORMATION

submarine, high density, turbidity currents/


MIDDLE EOCENE

liquified flows.
Sediments liquified after deposition
M
() resulting in indistinct bed boundaries and
6300

rubble
poorly defined water escape structures.
()
Geometry
Sheet lensoid sand 210' thick, 4-5 km wide
() and more than 10km long.

rubble and k
6350

High and k retained in uncompacted and


poorly cemented sands, locally reduced by
() increased detrital content or cementation.
6400

rubble

() ()
M
6450

()

S Hemipelagic mudstones with thin graded


S
siltstones deposited from distal submarine
rubble
sediment gravity flows.
S
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
NW
10000 + +++++++++++
16/26-5 + +++ +++++ ++
++
++
+++ ++
++
+ +++++++
+ + +++++
+ ++ +
++
+ +
Alba 16/26-6
SE
++ +
+ +
+ +
1000
16/26-7
16/26-8Z 16/26-8 +
16/26-10Y

100

PERMEABILITY (md.)
Horda Formation
Middle Eocene
10

Nauchlan Sand
1

0.1

200 feet

0.01
The Nauchlan Sand can be subdivided into two main units. The sand unit seen in the
0 10 20 30 40 50
main part of the field varies in thickness from 200 to 400 feet reflecting primary depositional
POROSITY (per cent.)
thickness. Thickness variation is caused by the migration of submarine channels across the
palaeo-slope and the position of the section relative to the axis of the depositional
palaeolow. The channels can be seen to bifurcate locally (eg between Wells 16/26-8 and The porosity and permeability of the reservoir rocks are
16/26-12), and may result in the development of separate accumulations (as seen in Well dependent primarily on depositional facies with negligible control by
16/26-5). A younger sand can be seen in Well 16/26-5 (110 feet thick) which is laterally diagenetic factors. The cleanest and coarsest sands exhibit the best
equivalent to thin sands seen elsewhere in the field (eg Well 16/26-7) above the main sand reservoir qualities. The sands as a whole are massive and
unit. This unit probably represents deposition from a younger channel which was deflected structureless, only moderately compacted and are generally
away from the main field area by previous sand deposition. unconsolidated. Core porosity ranges from 20 to 42 per cent.,
Porosity and permeability are excellent, although the unconsolidated nature of the averaging 35 per cent., and permeability ranges from 700 md to
reservoir may result in production problems. 10000 md, averaging 2800 md.
The reservoir is stratigraphically sealed in all directions, with the sands shaling out to the
northwest and the southeast along the line of the field, with the lateral extent of the reservoir
defined by the depositional edge of the sands beyond which mudstones were deposited,
and which form the lateral seal to the reservoir. The vertical seal is provided by mudstones
of the overlying Horda and Lark Formations.

FLUID PROPERTIES RESERVOIR PRESSURE

The Eocene sands of the Alba field contain a moderately heavy oil of approximately 20 The Alba field has an initial reservoir pressure of 2865 psia at a
degrees API. It has little natural drive and has little associated gas, with a solution gas ratio datum depth of 6274 feet subsea and is normally pressured. The
of 130-180 scf/stb. The fluid formation volume factor is 1.12 rb/stb at initial reservoir reservoir is a low relief structure with an oil water contact at 6465 feet
pressure. The fluid is slightly acidic and contains higher than average quantities of heavy subsea in the main part of the field and at 6314 feet in the separate
metals. structure to the north west.

The average composition of the Eocene reservoir fluid is as follows:


6300
Component Mol %
N2 0.11
CO2 0.17 0.358 psi/ft
C1 36.67
C2 1.59 6400

C3 0.45
C4 0.30
DEPTH (feet TVDSS)

C5 0.30 OWC @ 6465 ft TVDSS


C6 0.54
6500
C7+ 59.87

0.454 psi/ft

6600

6700
2800 2850 2900 2950 3000
CONTROLS ON RECOVERY INITIAL RESERVOIR PRESSURE (psig)

The main influence on the recovery of oil from the Alba field is the viscosity of the crude
oil combined with the high quality but friable Eocene reservoir sands which are underlain by
water. The oil has little natural drive, and its viscous nature combined with the friable nature
of the sands will result in the production wells being very susceptible to water coning,
although the use of horizontal wells will reduce this effect. These factors mean that the
recovery factor will be lower than would otherwise be expected for a reservoir of this quality,
estimated at some 40 per cent.
FACILITIES SPECIFICATIONS

Water Depth 453

UNITED KINGDOM
(feet)
Platform Type 8 legged steel jacket
Function drilling/production/accomodation

Alba
Jacket weight 17000
(tonnes)
Total; Weight 45200
(tonnes)
Accomodation 144
Well slots 24
Wells 20
production 15
water injection 5

PROCESSING AND EXPORT SPECIFICATIONS

Maximum Oil Throughput 75000


(tonnes)
Oil Export 12" x 3Km pipeline to Alba FSU

(A Chevron Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
100
Pre Corporation Tax

Net Present Value 1,754.51 856.47 542.03 390.31 272.21 141.55 5.71
Net Present Value (Deflated) 1,302.29 597.08 350.10 230.81 137.94 35.27 -70.85

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio 1.82 1.10 0.79 0.61 0.46 0.26 0.01
Profit/Inv Ratio (Deflated) 1.29 0.72 0.47 0.34 0.21 0.06 -0.14
NPV/Unit Oil Equiv. 4.74 4.03 3.42 2.96 2.45 1.63 0.10 75
NPV/Unit Oil Equiv. (Deflated) 4.29 3.27 2.52 1.97 1.39 0.45 -1.28

Payback Year 1998


Nominal Rate Of Return % 20.29
Real Rate Of Return % 16.35

Post Corporation Tax 50

Net Present Value 1,136.13 538.03 321.66 215.95 133.12 41.02 -54.83
Net Present Value (Deflated) 836.53 350.72 177.18 92.81 26.95 -45.84 -120.47
Profit/Inv Ratio 1.18 0.69 0.47 0.34 0.22 0.08 -0.12
Profit/Inv Ratio (Deflated) 0.83 0.42 0.24 0.13 0.04 -0.08 -0.24
NPV/Unit Oil Equiv. 3.07 2.53 2.03 1.64 1.20 0.47 -0.92 25
NPV/Unit Oil Equiv. (Deflated) 2.76 1.92 1.28 0.79 0.27 -0.58 -2.17

Nominal Rate Of Return % 16.79


Real Rate Of Return % 12.99

Earnings Data
0
Gross Revenue 4,515.03 2,469.21 1,794.24 1,472.30 1,221.18 939.18 631.48 1990 2000 2010 2020
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 83.08 42.27 27.80 21.02 15.93 10.56 5.42 Year
Corporation Tax 618.39 318.44 220.38 174.36 139.09 100.53 60.54
Capital Expenditure 961.97 776.06 690.27 641.18 597.47 540.39 463.09
Operating Costs 1,715.47 794.41 534.14 419.79 335.57 246.69 157.27

Gross Revenue (Deflated) 3,555.06 2,045.56 1,524.55 1,269.81 1,067.55 835.81 575.83
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 62.49 30.24 19.60 14.74 11.12 7.34 3.76
Corporation Tax (Deflated) 465.76 246.36 172.92 138.00 110.98 81.11 49.63
Capital Expenditure (Deflated) 1,013.14 825.67 738.40 688.20 643.33 584.45 504.16
Operating Costs (Deflated) 1,177.13 592.58 416.45 336.07 275.16 208.75 138.75

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1990 0.0 0.0 0.0 15.0 0.0 0.0 0.0 -15.0 -29.5 0.0 0.0 0.0
1991 0.0 0.0 0.0 110.0 0.0 0.0 0.0 -110.0 -183.0 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1992 0.0 0.0 0.0 225.0 0.0 0.0 0.0 -225.0 -327.6 0.0 0.0 0.0
1993 0.0 0.0 0.0 210.0 0.0 0.0 0.0 -210.0 -272.8 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1994 149.3 0.0 43.0 60.0 0.0 0.0 0.0 46.3 54.8 44.0 0.0 0.0
1995 239.4 0.0 52.6 25.0 0.0 0.0 0.0 161.8 173.2 69.0 0.0 0.0
Pre Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
388.7 0.0 95.6 645.0 0.0 0.0 0.0 -351.9 -585.0 41.2 0.0 0.0
Net Present Value 2,106.44 1,592.94 1,367.59 1,243.22 1,135.70 1,000.30 826.90
Net Present Value (Deflated) 1,710.95 1,314.51 1,140.58 1,044.21 960.55 854.52 717.22 1996 255.2 0.0 53.7 85.0 0.0 0.0 0.0 116.5 112.1 75.0 0.0 0.0
NPV/Unit Oil Equiv. 6.41 6.58 6.59 6.58 6.55 6.49 6.37 1997 310.8 0.0 57.7 104.0 0.0 3.0 3.0 146.1 125.2 85.0 0.0 0.0
1998 311.8 0.0 64.9 64.9 0.0 54.8 54.8 127.2 97.0 82.0 0.0 0.0
Post Corporation Tax 1999 316.4 0.0 67.1 33.8 0.0 54.6 54.6 161.0 109.2 80.0 0.0 0.0
2000 304.3 0.0 68.5 29.3 0.0 59.3 59.3 147.3 88.9 74.0 0.0 0.0
Net Present Value 1,488.06 1,166.20 1,017.88 934.33 861.16 767.77 646.13 2001 283.1 0.0 69.6 0.0 0.0 58.2 58.2 155.4 83.5 66.2 0.0 0.0
Net Present Value (Deflated) 1,245.19 984.37 866.18 799.73 741.48 666.91 569.03 2002 268.2 0.0 71.0 0.0 0.0 55.7 55.7 141.5 67.7 60.3 0.0 0.0
NPV/Unit Oil Equiv. 4.53 4.82 4.91 4.94 4.97 4.98 4.97 2003 253.9 0.0 72.5 0.0 0.0 54.0 54.0 127.4 54.2 54.9 0.0 0.0
2004 240.0 0.0 74.2 0.0 28.8 51.6 80.4 85.4 32.4 49.9 0.0 0.0
Earnings Data 2005 224.6 0.0 75.9 0.0 27.0 36.8 63.7 84.9 28.6 44.9 0.0 0.0
2006 210.1 0.0 76.2 0.0 17.4 36.1 53.6 80.4 24.1 40.4 0.0 0.0
Gross Revenue 4,126.36 2,903.06 2,430.91 2,184.97 1,980.11 1,731.58 1,427.14 2007 196.9 0.0 76.3 0.0 8.6 35.5 44.1 76.5 20.4 36.4 0.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 176.1 0.0 76.2 0.0 1.3 34.9 36.2 63.7 15.1 31.3 0.0 0.0
Petroleum Revenue Tax 83.08 56.64 44.11 37.24 31.43 24.42 16.17 2009 155.6 0.0 76.3 0.0 0.0 31.0 31.0 48.3 10.2 26.6 0.0 0.0
Corporation Tax 618.39 426.74 349.71 308.89 274.54 232.53 180.76 2010 137.5 0.0 76.0 0.0 0.0 24.7 24.7 36.7 6.9 22.6 0.0 0.0
Capital Expenditure 316.97 289.05 274.51 265.61 257.26 245.69 228.59 2011 121.5 0.0 76.4 0.0 24.3 17.2 41.5 3.6 0.6 19.2 0.0 0.0
Operating Costs 1,619.87 964.43 744.69 638.91 555.72 461.18 355.47 2012 107.2 0.0 76.7 0.0 16.6 6.6 23.3 7.3 1.1 16.3 0.0 0.0
2013 95.1 0.0 76.8 0.0 10.3 4.4 14.7 3.6 0.5 13.9 0.0 0.0
Gross Revenue (Deflated) 3,151.05 2,319.20 1,986.32 1,809.31 1,659.59 1,474.69 1,242.35 2014 84.0 0.0 75.8 0.0 5.0 2.6 7.6 0.6 0.1 11.8 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2015 74.0 0.0 71.7 0.0 1.7 1.0 2.7 -0.4 -0.0 10.0 0.0 0.0
Petroleum Revenue Tax (Deflated) 62.49 40.53 31.11 26.11 21.94 16.98 11.22 Remain
Corporation Tax (Deflated) 465.76 330.14 274.40 244.48 219.06 187.61 148.19 2016 0.0 0.0 186.2 0.0 -58.0 -3.5 -61.5 -124.7 -11.7 0.0 0.0 0.0
Capital Expenditure (Deflated) 300.00 274.37 260.99 252.77 245.07 234.38 218.56
Operating Costs (Deflated) 1,077.60 689.80 553.65 486.22 432.03 368.82 295.35 Total 4,126.4 0.0 1,619.9 317.0 83.1 618.4 701.5 1,488.1 866.2 328.8 0.0 0.0

These cash flows include Alba field only


6 1
C
4 SUMMARY
5A
COLUMBA 8 7
B NINIAN 8
The Alwyn fields are located in Quadrant 3 some 145 km east of the
3/7d 3/7a 3/8a Ranger 3/8b 3/9c 3/9a B
6 3/10b 3/10c Shetland Islands in the UK Sector of the Northern North Sea. The Alwyn
Rel Chev. 2 Lasmo Con Total Lasmo Amoco
S 1 A 2 North field was discovered in 1975 by Well 3/9a-1 which encountered
8,8A 1 1 oil and gas in Middle Jurassic Brent Group sandstones and condensate
COLUMBA D 2 ALWYN 2 in Lower Jurassic Statfjord Formation sandstones. The Alwyn South
5
4
NORTH field was discovered in 1973 by Well 3/14a-1 which encountered oil.
6,6A 6
5 1 11 Alwyn South West has since been renamed Dunbar and the Alwyn
5
3 13
STAFFA South East gas/condensate accumulations, which were discovered in
9 10,14 3 8 1973 by Well 3/15-2, have subsequently been renamed the Ellon and
COLUMBA E 7 3/9b Grant fields.
3/7b Chevron British Development of the Alwyn North field began in 1985 involving two
3/7c Gas
Chev.
7 12
steel platforms. First production of oil was achieved in November 1987
7
3/10a and gas, in January 1988. Initially only the northwest, north and east
6 Total
3 10 compartments (Brent reservoir) were developed.
3/8c Chevron 4 Additional reserves were identified in the southwest compartments
3/12b Shell 3/12a Shell 3/13a Chevron 3 3/14a Total 3/15 Total
(Brent and Statfjord reservoirs) to the south of Alwyn North. The
2 1
accumulations lie within the Alwyn North ring fence. These have been
DUNBAR 7 ELLON developed using three subsea wells tied back to the Alwyn North
14 15 11 6 6
4 platform and came onstream in May 1992.
8 4
10 2
The current interests in the Alwyn North field in per cent. are:-
13
4 1 3
2,2a,2b Total Oil Marine plc * 33.33
5
Elf (SNEA) 66.67
2 12 GRANT
1 3/14e
Total
1 operator *
0 4 km
3 3/14b
3/13b Amerada Total 5

LOCAL SETTING

The Alwyn North field is located in the North Viking Graben and is
one of the most southerly of the fields in the Brent Area. The closest
producing fields are the Staffa and Ninian fields to the west and the
RESERVOIR CHARACTERISTICS Brent field to the north in Quadrant 211. Strathspey, situated to the
north, is an oil and gas field which started oil production in 1993.
Fluid Properties BRENT STATFJORD To the south is situated the Dunbar oil and gas field and the Alwyn
South East gas/condensate accumulations (now called Ellon and
Gas Gravity S.G. (air=1) 0.67 Grant). Dunbar has been developed as a tieback to the Alwyn North B
Oil/Condensate Gravity (API) 35.4-39.0 52 processing platform. Ellon (previously known as Alwyn South East) has
Condensate Gas Ratio (bbl/MMscf) 92 been exploited by subsea tieback to Dunbar and Grant is expected to
Gas/Oil Ratio (scf/stb) 995-1720 be developed in a similar manner.
Dew Point Pressure (psig) 6904
Bubble Point Pressure, Pb (psig) 3471-4637
Formation Volume Factor at Pi (rb/stb) 1.551-1.951
Original Reservoir Pressure, Pi (psig) 6560 7314
At Datum Depth of (ft TVDSS) 10630 11400
Reservoir Temperature (F) 235 247

Rock Properties

Rock Type ---------------------------- Sandstone -------------------------


Stratigraphic Unit Brent Group Statfjord Formation FIELD DESCRIPTION
Geological Age Middle Jurassic Lower Jurassic
Porosity Range (per cent.) -------------------------------- 15-22 ----------------------------- The Alwyn North field is a series of tilted fault-blocks defined by
Permeability Range (md) ------------------------------ 10-1000 --------------------------- north-south trending faults. The reservoir occurs within Lower and
Connate Water Saturation (per cent.) ----------------------------------- 20 -------------------------------- Middle Jurassic sandstones of the Statfjord Formation and Brent Group,
Hydrocarbon Water Contact (ft TVDSS) 10321-10630 11745 which average 850 to 950 feet in thickness. Fluvial sediments of Triassic
Depth to Top of Structure (ft TVDSS) 9500 11100 age are transitional with the shallow marine and deltaic sandstones of
the Jurassic Formations. At this location the Brent Group is dominated
Reserves Alwyn Dunbar Ellon Grant by the thicker Tarbert and Ness Formations. Due to the thinness of the
Oil Gas Oil Gas Oil Gas Oil Gas oil column, most of the oil is contained in the upper part of the Brent
Group sands, where reservoir quality is good. The gas bearing reservoir
Total Reserves (MMstb, Bcf) 230 950 120 510 6 180 8 200 is the Statfjord Formation. Porosities are moderate to good and
Est. Production to 31.12.95 (MMstb, Bcf) 210 705 14 32 1 14 0 0 permeabilities are generally good.
Remaining Reserves (MMstb, Bcf) 20 245 106 478 5 160 8 200 The Brent reservoir contains oil with a high GOR of up to 1720
scf/stb. Recovery is expected to be good under waterflood due to the
Production good reservoir quality in the upper part of the Brent Group. The Statfjord
reservoir contains gas condensate with a CGR of 92 bbl/MMscf and is
being developed by natural depletion.
Water depth (feet) ---------------------------------- 427 -------------------------------
The Dunbar field (formerly known as Alwyn South West) lies some
Production Start Date ----------------------- November 1987 --------------------
10 km southwest of Alwyn North and has been developed as a satellite,
Peak Production (Oil) (stb/day) -------------------------------- 94000 -----------------------------
with a minimally manned platform. Other than test separation all
Peak Production (Gas) (MMscf/day) ---------------------------------- 280 ------------------------------
processing is undertaken at Alwyn North.
Platform(s) --- 2 Steel jackets + 3 subsea completions - To the east of Dunbar are the two fields making up the Alwyn South
Number of Wells -Producers ----------------------------------- 24 --------------------------------
East development. Ellon and Grant are both gas/condensate
Water injectors ------------------------------------ 9 ---------------------------------
accumulations. Ellon was considered too small to be developed
Gas injectors ------------------------------
----------------------------------- separately and so has been exploited by subsea tieback to the Dunbar
Oil and NGL Export Pipeline to Ninian for landing at Sullom Voe platform. Grant will also be developed in this way in the late 1990s. Both
Gas Export Pipeline to Frigg for landing at St. Fergus Ellon and Dunbar started producing in December 1994 with all output
being piped to the NAB processing platform on Alwyn North. The output
from Dunbar and Ellon has offset the production turn down from Alwyn
North and the continued contribution from all three fields (Dunbar, Ellon
& Grant) will prolong the life of this "mature" field.
STRATIGRAPHY AND STRUCTURE
ALWYN NORTH
DEPTH STRUCTURE The Alwyn North structure consists of a series of tilted fault-blocks. These are defined by north -

UNITED KINGDOM
Alwyn North
43
south trending faults which downthrow to the east, and by east-west or east northeast-west

OWC 31
0 3 km
southwest trending cross faults. Reservoirs in the field are Brent Group and Statfjord Formation
(Contours in metres)
BRENT EAST
sandstones.
BRENT NORTH The Brent Group is of Middle Jurassic age. It overlies the Lower Jurassic mudstones of the Dunlin
Group which in turn overlie the Upper Triassic-Lower Jurassic Statfjord Formation. The Brent Group
8 6
3/4a 3/5 generally thins towards the crests of fault-blocks, largely as a result of erosion. The Brent Group is
3/9a 3/10b generally overlain by the Heather Formation, although in extremely crestal positions the Kimmeridge
Clay Formation or Lower Cretaceous sediments may rest on truncated Brent Group, Dunlin Group,
and Statfjord Formation sequences, depending upon the degree of truncation.

323 1
4
STATFJORD
Five compartments have been recognised within Alwyn North:

OWC
BRENT
NORTHWEST 1 Northwest compartment - Brent Group reservoir limited to the west by dip and to the north, south

O WC
and east by faults.
5
North compartment - Brent Group reservoir dipping to the west and north and faulted to the east

323 3
2 and south.
East compartment - westward and southward dipping Brent Group erosively truncated to the east.

OWC 3
Faulted and eroded towards the north.

GOC
Southwest compartment - westerly dipping Brent Group, limited by faulting to the north and by dip,

224

3580
faulting and erosion towards the east and south.
6
Statfjord compartment - the easternmost compartment has a Statfjord Formation reservoir which
OWC 3224 3 Truncation of dips towards the west. Eastwards, the Statfjord Formation is erosively truncated, whilst to the
Statfjord Reservoir
south erosion and faulting limit the compartment. The northern limit of the compartment is formed
by a zone of faulting.
BRENT
SOUTHWEST

3/9b Truncation of
Ness Reservoir

(Modified after Inglis I and Gerard J, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION

SEDIMENTOLOGY AND DEPOSITIONAL 3/9a-6 3/9a-2 3/9a-5


ENVIRONMENT 3/9b 3/9a 3/9a 3/10b
Metres
SW NE
During the Late Triassic the continental alluvial
plain sediments of the Cormorant Formation were 3000
deposited. The Statfjord Formation conformably TACEO
US
D CRE
overlies the Cormorant Formation and the RY AN
TERTIA
boundary can be difficult to recognise. The lower 3500
Fm.
Clay
parts of the Statfjord Formation represent a Kim.
r and
H eathe
continuation of alluvial plain conditions. Fluvial
channel sandstones are interbedded with 4000 p
Grou
Brent
sheetflood sandstones and channel abandonment G ro up
Dunlin
and overbank mudstones. The upper part of the rd Fm
.
Statfjo
Statfjord Formation consists of coastal plain and 4500

shallow marine sandstones which record the onset RASS


IC
PRE JU
of a major marine transgression. Continued
transgression resulted in widespread deposition of 5000
offshore marine mudstones in the Lower Jurassic (After Jourden et al,1987) 0 1 2 3 km
(Dunlin Group). Overlying these is a progradational
sequence of argillaceous and micaceous shoreface
sandstones which are assigned to the Rannoch
Formation. Capping this progradational sequence are the relatively coarse upper sandstones, mudstones and coals of the Ness Formation. Overlying these are the
shoreface, foreshore, backshore and tidal channel sandstones of the Etive transgressive, shallow marine, burrowed and commonly cross-laminated
Formation. These shallow marine sandstones are overlain by the interbedded deltaic sandstones of the Tarbert Formation.

REPRESENTATIVE WELL SECTION - 3/9a-1

CORE
DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) ROCK ( g/cc )
DESCRIPTION 0 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER


150 UNIT NEUTRON
VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 5 25 45 -15
10000
Transgressive and nearshore sandstones
with minor, thin mudstones.
10600

3/9a-1 Si Si
Geometry
Broad sheetlike sand-body composed of
Si Si stacked lobate to sheetlike sandstones.
Locally thin, lenticular mudstones are
present.
Si
TARBERT FORMATION

M
and K
Porosity and permeability moderate to
M good in upper and lower parts, poor to
moderate in middle part of interval.
M
M

M
10700
MIDDLE JURASSIC

M
BRENT GROUP

M
M

Delta plain sandstones, mudstones and


10800

coals.

Geometry
NESS FORMATION

Lobate to sheetlike and ribbonlike


sandbodies interbedded with variably
extensive mudstones.

and K
M M and K moderate to good in cleaner
sandstones and poor to moderate in
thinner, finer grained and more argillaceous
sandstones.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

3/9a-1 3/9a-4
10000

Alwyn North
1

Tarbert
1000

Ness
100
3/9a-5

Cromer
Knoll

PERMEABILITY (md.)
3/9a-2

2
10

Dunlin Group
3
4
5

1
1. Heather Formation

Stat. Fm.
2. Etive Formation
3. Rannoch Formation
4. Broom Formation
5. Dunlin Group
0.1

3/9a-3
Due to the complex and
steeply dipping structure
of the field, the relatively 0.01
thick Brent Group sequence 0 10 20 30

(850 - 950 feet) and the thin POROSITY (per cent.)

0
hydro- carbon column (max -
395 feet), hydrocarbons are
100 mainly confined to the Tarbert The upper Massive sandstone of the Tarbert Formation has
Formation and the upper part of the porosities of about 21 per cent., with the Micaceous and Basal
200 Ness Formation (except in the Statfjord Sandstones having slightly lower porosities (generally 20 per cent.).
compartment). The Tarbert Formation Permeability in the Massive and Basal sandstones is generally good
300 feet
can be subdivided into three (100-1000 md), whilst the permeability of the Micaceous sandstone
lithostratigraphic units which form the is generally poor to moderate.
basis of the reservoir zonation: The primary controls on porosity and permeability appear to be
Basal sandstone (20 - 36 feet), textural, with porosity and permeability being better in the coarser
consisting of medium to coarse grained, grained, less argillaceous sandstones. Some reduction in reservoir
sandstone. quality has been caused by diagenesis.The main diagenetic
Micaceous sandstone (33 - 72 feet), minerals are authigenic feldspars, silica overgrowths, pyrite, chlorite
consisting of fine to locally medium grained, and kaolinite. However, the relatively early emplacement of
commonly planar laminated, locally burrowed hydrocarbons in Alwyn North (Late Cretaceous) has helped to
and bioturbated sandstones. protect the reservoirs from later diagenetic phases which affect
Massive sandstone (120 - 170 feet), the uppermost part of the Tarbert Formation, Alwyn South and Alwyn South East.
consisting of medium to coarse and locally very coarse grained sandstones.
The three sub-units of the Tarbert Formation occur across most of the field, only being
absent towards the east where erosively truncated.
Sandstones within the Ness Formation are generally relatively thin, only rarely more than
10 feet thick. The sandstones are only rarely stacked, usually being separated by
mudstones, and interconnectivity is expected to be poor. Sandbody geometry is extremely
variable with fluvial channel sandstones having ribbon geometry whilst channel margin,
mouthbar and crevasse splay sandstones have lobate to sheetlike geometries.
RESERVOIR PRESSURE

FLUID PROPERTIES Data indicate separate pressure regimes in the Brent and
Statfjord reservoirs. Based on a hydrostatic gradient to surface of
The North Alwyn field contains a conventional black oil in the Brent Group and a gas 0.451 psi/ft the Brent and Statfjord reservoirs are overpressured by
condensate in the deeper Statfjord Formation. 1770 and 2070 psi respectively.
The reservoir pressure is 6560 psig at 10630 feet TVDSS in the
Brent reservoir and 7314 psig at 11400 feet TVDSS in the Statfjord
1.4 20
Vol. of Retrograde Liquid reservoir.
VOLUME OF RETROGRADE LIQUID (%)

18
1.3
Z
GAS DEVIATION FACTOR Z

16

14
1.2
10000
12 Brent
1.1 10 OWC @ 10321 ft TVDSS
8
1.0 OWC @ 10600 ft TVDSS
6 OWC @ 10630 ft TVDSS

4 Statfjord
0.9
11000
2
DEPTH (feet TVDSS)

Statfjord reservoir @ 247F 0.135 psi/ft


0.8 0
1000 2000 3000 4000 5000 6000 7000 8000

PRESSURE (psig)
GWC @ 11745 ft TVDSS

12000
CONTROLS ON RECOVERY 0.451 psi/ft

The Brent reservoir has been developed with a water injection scheme and some 25
wells (producers and injectors) have been drilled to date, including some infill wells. The
high quality and good continuity of the Tarbert sands containing most of the oil should
ensure a high recovery factor. 13000
6300 6500 6700 6900 7100 7300 7500 7700
The gas condensate bearing Statfjord reservoir is being developed under natural
depletion using 12 production wells. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

NAA NAB Subsea

UNITED KINGDOM
Alwyn North
Completion

Water Depth 427 427 427


(feet)
Platform Type steel jacket steel jacket single, wet,
non-TFL
Function drilling/accommodation production oil/gas production

Jacket Weight 18500 14700


(tonnes)
Total Weight 42500 35000
(tonnes)

Accommodation 216
(324 on temporary basis)

Well Slots 40
Wells 29 2

PROCESSING AND EXPORT SPECIFICATIONS

Throughput
Oil (bbl/day) -------------100000 -----------------
(A Total Photograph)
Gas (MMscf/day) ----------------630 --------------------

Oil Export 12" x 15 km pipeline to Ninian 3 flowlines all


Gas Export 24" x 112 km pipeline to Frigg 6" x 5.5 km
connected to
existing 6" risers
at platform end


@@@@



@
FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 100 500


Liquid
Net Present Value 4,031.72 1,668.71 939.98 614.12 374.68 127.25 -104.05
Net Present Value (Deflated) 3,533.30 1,293.51 605.16 297.20 71.20 -160.98 -372.77 Gas

@@@@


Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 1.58 0.93 0.63 0.46 0.31 0.12 -0.12
Profit/Inv Ratio (Deflated) 1.04 0.52 0.29 0.16 0.04 -0.11 -0.30 400
NPV/Unit Oil Equiv. 6.01 4.86 3.90 3.18 2.39 1.09 -1.40 75
NPV/Unit Oil Equiv. (Deflated) 5.14 3.47 2.26 1.36 0.40 -1.18 -4.20

Payback Year 1991


Nominal Rate Of Return % 17.29 300
Real Rate Of Return % 12.78

Post Corporation Tax 50

@@@@


Net Present Value 2,585.44 1,027.76 528.09 302.25 135.68 -36.36 -195.22
200
Net Present Value (Deflated) 2,212.09 678.85 200.28 -13.91 -170.43 -329.37 -468.90
Profit/Inv Ratio 1.01 0.57 0.35 0.23 0.11 -0.03 -0.23
Profit/Inv Ratio (Deflated) 0.65 0.28 0.10 -0.01 -0.10 -0.22 -0.38
NPV/Unit Oil Equiv. 3.85 2.99 2.19 1.56 0.86 -0.31 -2.62 25
NPV/Unit Oil Equiv. (Deflated) 3.22 1.82 0.75 -0.06 -0.95 -2.42 -5.28
100
Nominal Rate Of Return % 14.24
Real Rate Of Return % 9.85 Alwyn North only

0 0
Gross Revenue 9,672.21 4,634.47 3,155.33 2,489.67 1,990.96 1,455.30 905.94 1985 1990 1995 2000 2005 2010 2015 2020
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 103.75 51.64 34.54 26.59 20.57 14.12 7.71 Year
Corporation Tax 1,446.29 640.95 411.89 311.88 239.00 163.61 91.17
Capital Expenditure 2,554.95 1,793.60 1,493.80 1,336.22 1,204.17 1,042.98 843.91
Operating Costs 2,981.78 1,120.51 687.00 512.73 391.53 270.94 158.36

Gross Revenue (Deflated) 9,384.90 4,825.55 3,396.32 2,731.00 2,220.73 1,658.49 1,061.99
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 104.56 52.11 34.88 26.86 20.79 14.28 7.81
Corporation Tax (Deflated) 1,321.21 614.66 404.89 311.12 241.63 168.38 96.13 CASH FLOW REPORT
Capital Expenditure (Deflated) 3,382.10 2,465.02 2,092.77 1,893.50 1,724.20 1,514.11 1,248.34
Operating Costs (Deflated) 2,364.94 1,014.92 663.51 513.43 404.53 291.09 178.61 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1982 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -244.7 0.0 0.0 0.0
1983 0.0 0.0 0.0 100.0 0.0 0.0 0.0 -100.0 -435.7 0.0 0.0 0.0
1984 0.0 0.0 0.0 225.0 0.0 0.0 0.0 -225.0 -872.9 0.0 0.0 0.0
1985 0.0 0.0 0.0 325.0 0.0 0.0 0.0 -325.0 -1,122.5 0.0 0.0 0.0
1986 0.0 0.0 0.0 350.0 0.0 0.0 0.0 -350.0 -1,076.3 0.0 0.0 0.0
1987 0.0 0.0 0.0 275.0 0.0 0.0 0.0 -275.0 -752.9 0.0 0.0 0.0
1988 395.4 0.0 74.8 100.0 0.0 0.0 0.0 220.6 537.7 75.1 226.2 0.0
1989 549.6 0.0 78.2 25.0 0.0 0.0 0.0 446.4 968.8 90.1 248.2 0.0
1990 649.5 0.0 79.9 40.0 0.0 0.0 0.0 529.6 1,023.1 94.1 255.2 0.0
1991 606.4 0.0 83.6 45.0 0.0 55.6 55.6 422.3 726.4 92.1 279.2 0.0
1992 538.7 0.0 82.3 75.0 0.0 145.9 145.9 235.5 360.6 82.0 258.0 0.0
ECONOMIC INDICATORS FROM 1/1/1993 1993 512.4 0.0 83.2 240.0 0.0 123.7 123.7 65.6 89.4 67.0 276.0 0.0
1994 378.1 0.0 83.5 315.0 0.0 101.6 101.6 -122.0 -148.1 45.9 232.7 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1995 525.4 0.0 109.7 135.0 47.9 41.2 89.1 191.6 207.1 70.0 280.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Pre Corporation Tax 4,155.6 0.0 675.2 2,300.0 47.9 468.0 515.9 664.5 -740.0 224.9 750.3 0.0

Net Present Value 2,884.72 2,378.27 2,119.34 1,967.92 1,832.35 1,655.52 1,419.10 1996 539.0 0.0 104.6 75.0 44.3 64.6 108.8 250.6 241.1 68.3 280.1 0.0
Net Present Value (Deflated) 2,522.02 2,066.65 1,847.92 1,721.98 1,609.92 1,464.17 1,268.98 1997 523.6 0.0 100.3 98.8 22.7 83.8 106.5 218.0 186.8 57.4 280.5 0.0
NPV/Unit Oil Equiv. 8.99 9.56 9.68 9.71 9.71 9.67 9.57 1998 500.7 0.0 104.6 81.1 3.5 90.9 94.4 220.6 168.2 47.7 280.1 0.0
1999 509.2 0.0 109.8 0.0 0.0 92.0 92.0 307.5 208.8 41.3 297.2 0.0
Post Corporation Tax 2000 430.1 0.0 104.8 0.0 0.0 102.8 102.8 222.5 134.5 29.2 260.3 0.0
2001 386.3 0.0 103.9 0.0 0.0 85.6 85.6 196.8 105.9 24.4 228.4 0.0
Net Present Value 1,911.24 1,647.33 1,490.27 1,394.26 1,306.23 1,188.98 1,028.65 2002 352.3 0.0 104.2 0.0 0.0 76.9 76.9 171.3 82.1 21.3 200.7 0.0
Net Present Value (Deflated) 1,735.67 1,460.08 1,318.49 1,235.05 1,159.78 1,060.65 925.97 2003 322.0 0.0 104.8 0.0 0.0 69.6 69.6 147.5 62.9 18.6 176.9 0.0
NPV/Unit Oil Equiv. 5.96 6.62 6.81 6.88 6.92 6.95 6.93 2004 295.0 0.0 106.1 0.0 0.0 62.5 62.5 126.5 48.0 16.3 156.2 0.0
2005 271.3 0.0 107.2 0.0 0.0 55.5 55.5 108.7 36.7 14.4 138.2 0.0
Earnings Data 2006 242.4 0.0 107.7 0.0 0.0 49.0 49.0 85.7 25.8 11.5 122.5 0.0
2007 218.2 0.0 109.1 0.0 0.0 40.6 40.6 68.6 18.4 9.3 108.9 0.0
Gross Revenue 5,516.62 4,083.26 3,511.27 3,207.32 2,950.24 2,632.68 2,233.21 2008 200.8 0.0 110.3 0.0 0.0 33.1 33.1 57.4 13.7 8.1 96.9 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 169.9 0.0 102.0 0.0 0.0 27.7 27.7 40.2 8.5 7.1 76.6 0.0
Petroleum Revenue Tax 70.37 67.31 65.63 64.56 63.54 62.08 59.83 2010 141.0 0.0 88.0 0.0 0.0 20.8 20.8 32.2 6.1 6.2 58.8 0.0
Corporation Tax 973.48 730.94 629.07 573.67 526.12 466.55 390.45 2011 91.4 0.0 83.3 0.0 0.0 16.2 16.2 -8.1 -1.4 0.0 53.5 0.0
Capital Expenditure 254.95 236.85 227.14 221.09 215.35 207.27 195.07 2012 86.4 0.0 84.4 0.0 0.0 1.8 1.8 0.2 0.0 0.0 48.6 0.0
Operating Costs 2,306.58 1,400.82 1,099.16 953.74 839.00 707.80 559.21 2013 62.6 0.0 60.4 0.0 0.0 -0.0 -0.0 2.3 0.3 0.0 33.9 0.0
2014 60.4 0.0 59.1 0.0 0.0 0.2 0.2 1.0 0.1 0.0 31.4 0.0
Gross Revenue (Deflated) 4,398.88 3,388.46 2,970.48 2,743.91 2,549.48 2,305.30 1,990.90 2015 58.0 0.0 57.3 0.0 0.0 0.0 0.0 0.7 0.1 0.0 29.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2016 55.9 0.0 53.0 0.0 0.0 -0.1 -0.1 3.0 0.3 0.0 26.9 0.0
Petroleum Revenue Tax (Deflated) 69.24 66.27 64.63 63.60 62.61 61.19 59.00 Remain
Corporation Tax (Deflated) 786.35 606.57 529.42 486.94 450.14 403.52 343.01 2017 0.0 0.0 341.8 0.0 0.0 0.0 0.0 -341.8 -28.7 0.0 0.0 0.0
Capital Expenditure (Deflated) 245.03 227.90 218.71 212.98 207.53 199.87 188.30
Operating Costs (Deflated) 1,562.59 1,027.64 839.22 745.35 669.42 580.07 474.62 Total 5,516.6 0.0 2,306.6 254.9 70.4 973.5 1,043.9 1,911.2 1,318.5 139.1 1,089.7 0.0

These cash flows include Alwyn North, Dunbar, Grant and Ellon fields
47/8a BG 2 5 3 47/9c 47/10 BP SUMMARY
3 5A Mustang

1 The Amethyst field consists of three separate structures A, B and C


6 3 located approximately 50 km east of Easington in the UK sector of the
47/9b BG 1 Southern North Sea.
47/9a BG 5 The C structure was discovered in 1970 by Well 47/13a-1, the A
MERCURY
2
structure in 1972 by Well 47/14a-1 and the B structure in 1973 by Well
AMETHYST 47/15a-2. The structures have subsequently been appraised by a
WEST further 15 wells and have been shown to be mainly in Block 47/14a,
C extending into Blocks 47/13a, 47/8a, 47/9a and 47/15a.
8
7 First gas was produced in October 1990 from the first two unmanned
47/13a Arco 47/15b BG platforms. Two second phase unmanned production platforms came on
1 9 AMETHYST stream in October 1991 and October 1992. The platforms are remotely
2
4 6 controlled from the Rough terminal at Easington.
3 C1D A Amethyst has been unitised and current interests in per cent. are:-
8
A2D 1
A1D
3 BP Petroleum Development Ltd. * 21.35
1,7 5
2
AMETHYST British Gas plc 24.15
47/13b BP
EAST Enterprise Oil plc 24.05
Arco British Co. Ltd 14.10
47/14a BP B1D 4
B Amerada Hess Ltd. 6.48
47/14b Amerada
3 Murphy Petroleum Ltd 7.40
2
Fina Petroleum North Sea 2.47

47/14c Rel.
operator *

47/15a BG
0 5 km 47/19 Rel. 47/20 Shell

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Amethyst field is one of the most westerly of the Southern North
Sea gas fields, located to the southwest of the Dowsing Fault Zone.
Gas Gravity S.G. (air =1) 0.61-0.65 Gas is found in Rotliegendes sandstones in an area where
Condensate Gas Ratio (bbl/MMscf) 7 (17 in the C structure) deposition of mixed fluvial and aeolian sandstones occurred.
Gas Expansion Factor (vol/vol) 232 Nearby accumulations include Rough, Hyde, Hoton and West Sole
Reservoir Pressure Pi (psig) 4080 (A) 4200 (C) which are all Rotliegendes Group sandstone reservoirs. Reservoir
at Datum Depth of (ft TVDSS) 8900 quality in this area is typically moderate to poor reflecting the
predominance of fluvial sandstones. Reservoir quality of West Sole,
Reservoir Temperature (F) 195
Hyde and Hoton, which are located northeast of the Dowsing Fault Zone
in the Sole Pit, is poor. However Rough, which is on the same side of
Rock Properties
the Dowsing Fault Zone as Amethyst, has better reservoir quality.
Rock Type Sandstone
Stratigraphic Unit Rotliegendes Group
Geological Age Lower Permian
Porosity Range (per cent.) 12-22
Permeability Range (md) 1-250
Connate Water Saturation (per cent.) 20-50
Gas Water Contact (ft TVDSS) (approx.) 9049 (A + B), 8980-9017 (C)
Depth to Top of Structure (ft TVDSS) (approx.) 8765 (approx.)

Reserves

Total Gas Reserves (Bcf) 740


Total NGL Reserves (MMstb) 5.2
Est. Gas Production to 31.12.95 (Bcf) 311
Est. NGL Production to 31.12.95 (MMstb) 2.2
Remaining Gas Reserves (Bcf) 429
Remaining NGL Reserves (MMstb) 3.0

Production

Water Depth (feet) 80-95 FIELD DESCRIPTION


Production Start Date October 1990
Peak Gas Production (yrly average)* (MMscf/day) 168 in 1993 The Amethyst field consists of three structures which are generally
Peak NGL Production (yrly average) (Mbbl/d) 1 low relief with fault and dip closure. The reservoir is made up of
Achieved in 1992 sandstones of the Lower Permian, Rotliegendes Group. The
Platform(s) 4 unmanned steel jackets sandstones are typically between 50 and 75 feet thick in the Amethyst
Number of Wells 20 area. Carboniferous sandstones are found beneath the Rotliegendes
Gas and NGL Export 30" x 49km pipeline but have proved generally to be tight on test. Reservoir quality is
to Easington moderate but locally poor.
The reservoir fluid is a gas with a relatively high condensate yield.
* A swing factor of 167 per cent. exists in the BG contract which means 300 MMscf/day can Variations in condensate yield have been noted between wells,
suggesting that the reservoir is compartmentalised. A moderate
recovery factor is expected because of the low relief, moderate
reservoir quality and the indicated reservoir compartmentalisation.
The initial development drilling is now complete, although there may
be scope for further drilling to access poorly drained areas of the field.
gas compression was installed in late 1995. At least one other discovery
has recently been made nearby which may be produced through the
Amethyst facilities.
STRUCTURE AND STRATIGRAPHY

AMETHYST The Amethyst field comprises three gas-bearing areas A, B

UNITED KINGDOM
TOP ROTLIEGENDES and C. The structures are low relief with fault and dip

Amethyst
DEPTH STRUCTURE closure. The gas is found in the Leman Sandstone
Formation (Rotliegendes Group) which was encountered at
0 4 km
9017 a depth of 8862 feet (TVDSS) in Well 47/14a-1. The
8900 (Contours in feet) reservoir section is between 50 and 75 feet thick, and is
7
47/8a 47/9a 47/10b sealed by the overlying carbonates of the Zechstein Group.
89

90
8
890 0 SEDIMENTOLOGY AND DEPOSITIONAL

89
00
0

00
9
1 ENVIRONMENT
C1D
3 4
A SITE The Leman Sandstone Formation at Amethyst represents a
8900

90 049
7 6 series of mixed fluvial and aeolian sandstones deposited in

00
9
8
C SITE 901 3
0
880 A2D
9000
47/15b
a hot, semi-arid desert setting. The unit comprises clean,
7 A1D cross-bedded and well sorted aeolian dune sandstones and
1 1
2 horizontally bedded interdune sandstones, interbedded with

0
8800

900
5
locally argillaceous and poorly sorted fluvial sandstones.
9
This sequence represents the periodic development of
904
tracts of wadi sedimentation in an otherwise dry aeolian

9049
B SITE
dune field.

00
89
47/14a
4
3
B1D

49
90
2

47/13a 47/15a
(Modified after Garland CR, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION

47/14a-2 47/14a-1 47/14a-3


Feet SW NE

TERTIARY/QUATERNARY
Chalk Group

2000

Cromer Knoll Group JURASSIC


4000

TRIASSIC

6000
Top Bunter

8000 Zechstein Group PERMIAN

US
10000
Rotliegendes Group CARBONIFERO

0 0.5 1 km

REPRESENTATIVE WELL SECTION - 47/14a-1


DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15
MIDDLE MAGNESIAN LST
KUPFERSCHIEFER FM

V V V
Shallow marine/marginal marine carbonates
ZECHSTEIN

V V
V V V overlying sapropelic marine mudstone.
Geometry
Laterally extensive sheet geometry non
reservoir sediments
8850
PERMIAN
ROTLIEGENDES GROUP
LEMAN SANDSTONE FM

Aeolian dune and possible minor fluvial


sandstones
Geometry
Laterally extensive sheet sandstone.
8900

47/14a-1 and K
and K moderate to good, K locally poor,
reduced by diagenesis.

Fluvial/Wadi sandstones.
8950

Probable delta plain mudstones and minor


sandstones.
Geometry
CARBONIFEROUS

Laterally extensive non reservoir mudstones


containing thin sheet-like to lenticular
sandbodies.
9000
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

NW 10000
47/14-4
47/14a-3

Amethyst
Leman Sandstone Formation
Zec
hste
in G 1000
rou
p
47/14a-1
SE
47/14-5

100

PERMEABILITY (md.)
US
NIFERO
CARBO
100
10

200 feet
47/14a-2

No stratigraphic or major facies subdivisions are recognised within the Leman


Sandstone Formation in the Amethyst field area. The reservoir section has a simple overall
sheetlike geometry, with internal interdigitations of aeolian dune and wadi sandstones, of 0.1
both laterally extensive sheet and restricted, lenticular geometries. Their complex
geometries probably contribute to the compartmentalisation of the reservoir, as deduced A Structure
from pressure data, although fault compartmentalisation is considered to be the primary B Structure
control. The Leman Sandstone Formation is relatively thin, ranging from about 50 to under C Structure
100 feet in thickness, and is laterally extensive. 0.01
0 10 20 30

POROSITY (per cent.)

Porosity values are commonly moderate to good, 12 to 22 per


cent. Permeability values are poor to good, typically 1 to 250 md.
Trends in porosity and permeability values are controlled by grain
size, sorting and detrital clay content, and hence by facies
distribution. As a result, the clean and well-sorted aeolian dune
sandstones generally have better reservoir quality than the locally
argillaceous and poorly sorted fluvial sandstones. Some reduction in
permeability has probably resulted from the development of fibrous
illite, kaolinite and mineral cements.

FLUID PROPERTIES

The Amethyst field contains a high calorific value gas with relatively high condensate
yield compared with other fields of the Southern North Sea. Condensate gas ratios of RESERVOIR PRESSURE
approximately 7 bbl/MMscf and 17 bbl/MMscf have been recorded on the A and C structures
respectively. A separator gas composition obtained during testing of Well 43/13-1 is listed The pressure results from the drill stem tests on the A structure
below. indicate an approximate reservoir pressure of 4080 psig. Well
47/14a-2 had an initial reservoir pressure approximately 50 psi
higher and showed depletion on test indicating that the reservoir may
COMPOSITION 1.05 be compartmentalised. The available data for the C structure
(mol. %) 43/13-1
indicate a reservoir pressure higher than that of the main A structure.
CO2 0.70
GAS DEVIATION FACTOR Z

N2 2.40
H2S -
C1 87.46
C2 5.76
C3 2.16 0.95
C4 0.83
C5 0.29
C6 0.15 8700
C7+ 0.25
S.G. (AIR=1.0) 0.65
C.V. (Btu/scf) 1099
A STRUCTURE
@ 195 F (from correlation) 47/14a-3 A STRUCTURE
0.85 47/14a-2
0 1000 2000 3000 4000 8800
5000
PRESSURE (psig)
DEPTH (feet TVDSS)

0.08 psi/ft C STRUCTURE


47/13a-1
8900

West
GWC @ 8980 ft TVDSS
East
9000 GWC @ 9017 ft TVDSS

A and B Structures
GWC @ 9049 ft TVDSS

CONTROLS ON RECOVERY
9100
4050 4100 4150 4200 4250
The recovery factor is expected to be moderate (about 70 to 75 per cent.), resulting from:
INITIAL RESERVOIR PRESSURE (psia)

predominantly poor and moderate permeability in fluvial wadi and aeolian sandstones,
affected by diagenetic cements and clays
highly variable well productivities
compartmentalisation of the field, as indicated by pressure data
installation of compression facilities (onshore)
FACILITIES SPECIFICATIONS

Water Depth 79-95

UNITED KINGDOM
(feet)

Amethyst
No. of Platforms 4
Platform Type steel piled jacket
Function unmanned wellhead
platforms

Well Slots 4 x 12
Wells Planned 29

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput 300


(MMscf/day)

Gas Export 30" x 49 km pipeline to Easington


terminal

The first two platforms, A1D and A2D on Amethyst East, were installed in
July 1989 and started production in October 1990. Two further satellite plat-
forms have since been installed: B1D (East) on stream in October 1991, and
C1D (West) with a start up in October 1992. All four platforms are completely
unmanned with gas exported to, and electrical power imported from, the con-
trol centre at the Rough terminal at Easington. No processing is carried out
offshore.

(Photograph by British Petroleum)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 200

Net Present Value 584.62 345.33 250.42 201.39 161.18 113.75 59.03
Net Present Value (Deflated) 515.36 289.28 200.88 155.32 117.98 73.92 23.09
Profit/Inv Ratio 2.11 1.44 1.14 0.96 0.81 0.61 0.35
Profit/Inv Ratio (Deflated) 1.48 0.95 0.71 0.58 0.46 0.31 0.11 Average Annual Daily Gas Rate (MMscf/day)
NPV/Unit Oil Equiv. 4.56 4.22 3.87 3.60 3.31 2.83 1.97 150
NPV/Unit Oil Equiv. (Deflated) 4.21 3.56 3.07 2.72 2.35 1.76 0.72

Payback Year 1993


Nominal Rate Of Return % 30.26
Real Rate Of Return % 23.31

Post Corporation Tax 100

Net Present Value 372.21 221.26 157.87 124.44 96.69 63.61 24.99
Net Present Value (Deflated) 325.15 174.98 114.36 82.74 56.65 25.70 -10.16
Profit/Inv Ratio 1.34 0.93 0.72 0.59 0.48 0.34 0.15
Profit/Inv Ratio (Deflated) 0.93 0.57 0.40 0.31 0.22 0.11 -0.05
NPV/Unit Oil Equiv. 2.90 2.70 2.44 2.23 1.98 1.58 0.83 50
NPV/Unit Oil Equiv. (Deflated) 2.65 2.15 1.75 1.45 1.13 0.61 -0.32

Nominal Rate Of Return % 25.02


Real Rate Of Return % 18.34

Earnings Data
0
Gross Revenue 1,553.91 951.82 736.90 629.61 542.99 441.68 324.20 1985 1990 1995 2000 2005 2010 2015
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 94.13 60.08 45.26 37.47 31.07 23.57 15.11 Year
Corporation Tax 212.41 124.07 92.55 76.95 64.48 50.14 34.03
Capital Expenditure 276.90 239.10 220.59 209.64 199.63 186.17 167.12
Operating Costs 598.27 307.30 220.63 181.12 151.11 118.20 82.95

Gross Revenue (Deflated) 1,436.42 920.01 727.96 629.94 549.55 453.87 340.19
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 92.06 56.39 42.09 34.75 28.78 21.84 14.04
Corporation Tax (Deflated) 190.21 114.30 86.53 72.58 61.33 48.22 33.25
Capital Expenditure (Deflated) 349.27 304.75 282.75 269.65 257.63 241.39 218.22
Operating Costs (Deflated) 479.73 269.59 202.23 170.22 145.16 116.72 84.85 CASH FLOW REPORT
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1988 0.0 0.0 0.0 21.9 0.0 0.0 0.0 -21.9 -57.9 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1989 0.0 0.0 0.0 85.0 0.0 0.0 0.0 -85.0 -194.7 0.0 0.0 0.0
1990 34.1 0.0 9.1 60.0 0.0 0.0 0.0 -35.0 -68.9 0.0 65.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1991 101.5 0.0 21.0 35.0 0.0 0.0 0.0 45.5 75.7 1.0 154.0 0.0
1992 103.8 0.0 23.7 30.0 0.0 2.1 2.1 48.0 69.8 1.1 161.0 0.0
Pre Corporation Tax 1993 109.5 0.0 26.8 5.0 0.0 15.5 15.5 62.3 80.9 1.3 168.0 0.0
1994 100.9 0.0 25.1 18.0 0.0 18.7 18.7 39.1 46.3 1.3 145.0 0.0
Net Present Value 430.92 372.12 340.13 320.75 302.95 279.05 245.80 1995 108.9 0.0 27.4 17.0 0.0 17.0 17.0 47.5 50.8 1.4 160.0 0.0
Net Present Value (Deflated) 391.08 334.82 306.19 289.19 273.73 253.11 224.55 Total To Start Of Discounting ( 1/JAN/1996)
NPV/Unit Oil Equiv. 5.82 6.31 6.47 6.55 6.61 6.67 6.71 558.7 0.0 133.1 271.9 0.0 53.3 53.3 100.4 2.1 2.2 311.3 0.0

Post Corporation Tax 1996 113.2 0.0 27.4 5.0 14.9 19.5 34.4 46.4 44.7 1.4 160.0 0.0
1997 117.8 0.0 28.5 0.0 24.3 16.3 40.6 48.7 41.7 1.4 160.0 0.0
Net Present Value 271.83 246.37 229.05 217.84 207.17 192.40 171.13 1998 111.4 0.0 27.9 0.0 22.7 16.5 39.2 44.3 33.8 1.4 145.0 0.0
Net Present Value (Deflated) 257.07 226.67 209.60 199.10 189.35 176.10 157.34 1999 98.6 0.0 26.3 0.0 16.8 17.0 33.7 38.5 26.2 1.3 123.0 0.0
NPV/Unit Oil Equiv. 3.67 4.17 4.36 4.45 4.52 4.60 4.67 2000 83.2 0.0 24.8 0.0 9.3 16.2 25.5 32.8 19.8 0.3 103.0 0.0
2001 72.8 0.0 23.6 0.0 4.6 14.8 19.4 29.8 16.0 0.2 87.0 0.0
Earnings Data 2002 63.6 0.0 22.6 0.0 1.4 13.5 14.9 26.2 12.5 0.2 73.0 0.0
2003 56.3 0.0 22.0 0.0 0.2 12.2 12.4 21.9 9.3 0.2 62.0 0.0
Gross Revenue 995.21 768.26 673.34 621.68 577.26 521.38 449.36 2004 48.8 0.0 21.4 0.0 7.2 10.3 17.5 9.9 3.8 0.1 52.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 44.0 0.0 20.7 0.0 7.0 5.8 12.7 10.6 3.6 0.1 45.0 0.0
Petroleum Revenue Tax 94.13 88.77 83.77 80.32 76.93 72.11 64.98 2006 37.7 0.0 19.5 0.0 5.4 5.0 10.4 7.8 2.3 0.1 37.0 0.0
Corporation Tax 159.09 125.75 111.09 102.92 95.78 86.66 74.68 2007 32.9 0.0 18.5 0.0 4.1 4.0 8.1 6.3 1.7 0.1 31.0 0.0
Capital Expenditure 5.00 4.88 4.81 4.77 4.72 4.66 4.56 2008 28.7 0.0 17.8 0.0 3.0 3.2 6.2 4.7 1.1 0.1 26.0 0.0
Operating Costs 465.17 302.50 244.63 215.84 192.65 165.55 134.01 2009 26.5 0.0 17.2 0.0 2.4 2.5 4.9 4.4 0.9 0.1 23.0 0.0
2010 22.3 0.0 16.5 0.0 1.4 2.2 3.5 2.3 0.4 0.0 19.0 0.0
Gross Revenue (Deflated) 821.65 654.09 582.03 542.19 507.53 463.35 405.27 2011 19.6 0.0 15.9 0.0 0.5 1.4 2.0 1.6 0.3 0.0 16.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2012 17.8 0.0 15.4 0.0 0.1 1.0 1.1 1.2 0.2 0.0 14.0 0.0
Petroleum Revenue Tax (Deflated) 92.06 83.31 77.91 74.49 71.26 66.80 60.35 Remain
Corporation Tax (Deflated) 134.01 108.15 96.60 90.10 84.38 77.01 67.20 2013 0.0 0.0 98.9 0.0 -31.0 -2.4 -33.4 -65.5 -8.7 0.0 0.0 0.0
Capital Expenditure (Deflated) 5.00 4.88 4.81 4.77 4.72 4.66 4.56
Operating Costs (Deflated) 333.51 231.08 193.11 173.74 157.82 138.77 115.81 Total 995.2 0.0 465.2 5.0 94.1 159.1 253.2 271.8 209.6 2.6 429.2 0.0

These cash flows comprise Amethyst East and West fields


16/27a Phillips 16/28 BP 16/29d SUMMARY
Rel.
The Andrew field is located in Quadrant 16 some 200 km northeast
3
of Aberdeen in the UK sector of the North Sea. The field was discovered
BRITANNIA 11,13 9 in 1974 by Well 16/28-1 which encountered oil in sandstones of
Paleocene age. The field contains a free gas cap and appraisal drilling
7 4
has indicated an underlying Lower Cretaceous gas/condensate
CYRUS accumulation. Development of the field has been delayed for a number
15 6
14 MABEL 4 of years due to its marginal economics. Production startup will now be
16/27b Chevron 7,7a
2 in mid 1996. Export of oil will be via the Forties pipeline and gas export
4 via CATS (Central Area Transmission System). Development of a single
3
6 8 steel platform on Andrew will also provide facilities for the nearby Cyrus
field which was originally developed using BP's SWOPS vessel. Two
1 12
24 16/27a Lasmo new horizontal wells at Cyrus are planned with first oil expected shortly
5 2,2A 6,6A
16
ANDREW after Andrew in early 1997 and recoverable reserves set in the order of
1,1A MARIA
ALBA 28 million barrels.
3
5 The current interests in the Andrew field in per cent. are:
8 16/29a
Phillips
22/2a Premier 22/2c Clyde 22/3b Mobil 22/4b
BP* 60.00
6 LASMO 17.41
Mobil
6
8 Mitsubishi Corporation 12.00
Clyde 7.15
7 22/3a BP Goal Petroleum plc 3.44
5
2
5
CHESTNUT The current interest in the Cyrus field in per cent. are:-
5
BP* 100.00
3 4,4A
0 4 km operator *
22/2b Clyde

LOCAL SETTING

The Andrew field is located in Blocks 16/27a and 16/28 at the


southern extremity of the South Viking Graben, just to the north of the
Fisher Bank Basin. The field is positioned on the triple junction between
the Witch Ground Graben to the northwest, the Central Graben to the
south and the South Viking Graben to the north. The main reservoir
RESERVOIR CHARACTERISTICS interval comprises sandstones and mudstones of Paleocene age
assigned to the Andrew Formation of the Paleocene Montrose Group.
Fluid Properties Nearby accumulations include the Cyrus field located some 5 km to the
north-northeast which also contains hydrocarbons in the Andrew
Oil Gravity (API) 41 Formation and the producing Maureen field some 20 km to the
Gas Oil Ratio (scf/stb) 898 northeast which contains hydrocarbons in the stratigraphically older
Bubble Point Pressure, Pb (psig) Maureen Formation of the Montrose Group. Two other smaller
Formation Volume Factor at Pi (rb/stb) 1.522 accumulations, Mabel and Moira are present in the vicinity of the
Oil Compressibility (vol/vol/psi) Maureen field and also contain oil in Paleocene reservoirs. Moira and
Reservoir Pressure, Pi (psig) 3716 Cyrus have commenced production although Cyrus has subsequently
at Datum Depth of (ft TVDSS) 8189 been shut in temporarily. The large Britannia accumulation lies
Reservoir Temperature (F) 260 immediately to the west of the Andrew field and extends west to Block
15/29. The accumulation contains wet gas in Lower Cretaceous
Rock Properties turbiditic sandstones of the Cromer Knoll Group. The Britannia reservoir
sands occur in Andrew and have tested gas condensate. It is probable
Rock Type Sandstone that the Lower Cretaceous reservoir in the Andrew structure is separate
Stratigraphic Unit Andrew Formation to Britannia. The Alba field which overlies part of Britannia came
Geological Age Paleocene onstream in January 1994, producing from Eocene sandstones. The
Porosity Range (per cent.) 19-26 small Chestnut accumulation also contains oil in this reservoir.
Permeability Range (md) 100-1000
Connate Water Saturation (per cent.) 34-46
Gas Oil Contact (ft TVDSS) 8189
Oil Water Contact (ft TVDSS) 8397

Reserves
FIELD DESCRIPTION
Total Oil & NGL/Gas Reserves (MMstb, Bcf) 119/135
Est. Production to 31.12.95 (MMstb, Bcf) 0 The Andrew field is a salt induced domal anticline structure. The
Remaining Oil & NGL/Gas Reserves (MMstb, Bcf) 119/135 Main Paleocene reservoir section is a sequence of interbedded mid-fan
channel sandstones that were deposited by turbidity currents in a
Production submarine fan environment. Significant basin plain mudstones are also
developed. Porosities and permeabilities of the reservoir sands are
Water Depth (feet) 377 good and contain a saturated light oil with a correspondingly high gas
Anticipated Production Start Date July 1996 oil ratio and formation volume factor. The field is normally pressured and
Anticipated Peak Oil Production (stb/day) 54000 contains a free gas cap entirely underlain by oil. The gas oil contact lies
Anticipated Peak Gas Production (MMscf/day) 30 at 8189 feet TVDSS and the oil water contact lies at 8397 feet TVDSS.
Anticipated Platforms 1 + 1 subsea satellite The production start-up has been constantly revised in order to make
cost savings. Production is now anticipated in July 1996 with export of
Anticipated Number of Wells 20
associated gas to Scottish Power or reinjected to maintain a consistent
Anticipated Oil Export 10" x 16 km spur to
supply. Andrew is being developed using a steel platform, with Cyrus,
Brae/Forties pipeline
which is 8 kms northeast of Andrew, redeveloped as a subsea tieback
Anticipated Gas Export 8" x 44 km gas line into CATS
to the platform. Costs have been reduced by the use of up-to-date
lightweight platform designs as well as a horizontal drilling programme.
The latter has reduced the number of pre-drilled wells considered
necessary, thus leaving slots available for additional water injectors.
This has increased the expected recovery rate to over 40 per cent.
Plateau production of 50,000 b/d of oil and 30 MMcfd of gas is
anticipated from Andrew shortly after start-up. Cyrus is planned to start
production soon after Andrew in 1997, with peak output of around
18,000 b/d in 1997. No plans exist at present for development of the
underlying Cretaceous gas condensate accumulation.
STRUCTURE AND STRATIGRAPHY

The reservoir sandstones of the Andrew field occur 7RE ANDREW

UNITED KINGDOM
within the Paleocene Montrose Group. The Montrose 00 TOP FORTIES/
Group may be divided into three main lithostratigraphic 85 0
0 ANDREW FORMATION
units, the Forties, Andrew and Maureen Formations. In the 84

Andrew
Andrew field the Andrew Formation has developed more DEPTH STRUCTURE
extensively than the stratigraphically younger Forties 0 2 km
Formation or the older Maureen Formation. The 00
83 (Contours in feet TVDSS)
sediments were deposited in the centre of the basin as
part of submarine fan complex that was sourced from the
6RE
west-northwest. The Andrew Formation exhibits 16/27b
2 1ST
preferential development in the Andrew field area, as a
result of its position in relation to the fan complex. The

839 7
Forties and Maureen Formations are developed to a

WC
lesser extent. The overlying basinal mudstones of the
00
Rogaland Group Lista Formation provide the vertical seal 1A 81 189 O
8
to the reservoir. The structure is a domal anticline and is OC8200
G
principally a structural trap that overlies a Zechstein salt 8300
dome. The structure measures approximately three to four
kilometres in diameter and exhibits dip closure on all 840
0
5
sides. 0
850
The deeper Lower Cretaceous accumulation is held in
turbiditic sandstones of the Cromer Knoll Group.

SEDIMENTOLOGY AND DEPOSITIONAL


ENVIRONMENT

The Andrew Formation consists of massively-bedded 16/27a 16/28


channelised turbiditic sandstones deposited as mid-fan
channel sequences in a deep water submarine fan
environment. The sandstones are generally very fine to
medium grained, poorly sorted and locally argillaceous.
They contain numerous mudclasts and soft sediment INTERPRETATIVE STRUCTURAL CROSS SECTION
deformation structures dominated by dewatering structures and
slumps. Original depositional structures are mostly obscured 16/27-4 16/27-2 16/28-1 16/28-6 16/28-7 16/28-3
although planar lamination and current ripples are present Feet SW NE
towards the top of individual units. The reservoir interval 0
comprises a sequence of fining upwards sandstone bodies with
minor overbank silty turbidites and interchannel basinal
mudstones, and were deposited by fluidised/liquefied gravity flow Hordaland and Nordland
4000
processes. Minor calcite cements are present and the sandstones Groups
are variably micaceous. The thickness of the sequence is highly
variable due to the coalescence of individual channel sandstones.
The position and thickness of individual lobes of the submarine 8000
Montrose and Rogaland Groups
fan were principally controlled by palaeotopography which was in
turn controlled by differential compaction of previously deposited Chalk Group
sand lobes and the synchronous movement of the underlying salt 12000
Zechstein
diapir. Group Cromer Knoll Group
The sediment source is believed to have been the East 0 2 3 km
Shetland Platform and Moray Firth areas which were exposed 16000
during Tertiary times. The Maureen Formation is not well
developed in the Andrew field and does not show the
characteristic locally derived olisthostromal limestones which are
present in the Maureen field to the east. This variable nature
illustrates the importance of the timing of halokinesis, the
REPRESENTATIVE WELL SECTION - 16/27a-1A

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 100 ROCK 1.95 2.95

AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 10 20 45 -15

Basinal marine mudstones with minor thin


distal turbidites. non reservoir
Stacked mid fan channel sandstones with

ROGALAND GROUP
LISTA FORMATION
M minor interbedded inter-channel marine
mudstones

8300
Geometry
M Broad ribbon to sheet geometry sandbody.
Lower siltstone sequence also shows sheet
geometry

and k
Moderate and k except at basal
M M sequence which forms partial vertical flow 8350
barrier

16/27a-1A M
M

Stacked mid fan channel sandstones


comprising fining upward sequences
8400

Geometry
M M
Broad ribbon to sheet geometry composed
of coalescing sand ribbons. Three fining
ANDREW/FORTIES FORMATION

upwards sequences observed from base


M M
and k
MONTROSE GROUP

8450

Moderate and k in clean sandstones,


severely reduced in finer argillaceous and
PALEOCENE

M M
micaceous sandstones and laterally
impersistent carbonate cemented horizons

M M
8500

M M
8550

M
8600

M M

M M M
8650

M M
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
E
16/28-6 10000
16/28-1
16/27a-1A

Balder Fm
W

Rogaland Gp.
16/27a-2

Andrew

Lista Sele
Fm Fm
1000

Forties/Andrew Formation
Montrose Group
100

PERMEABILITY (md.)
Maureen
Fm
0

Ekofisk Fm
Chalk Gp
10
200

400 feet

The sediments of the Andrew field form a thick, stacked sequence of broad ribbon to
sheet like sand bodies that comprise coalesced sand ribbons. Individual fining upwards
sand bodies are in the region of 60 feet thick and major coalesced lobate sand bodies are 0.1
up to 600 feet thick. Interdigitated with these massive sand units are minor thin sheet like
silty sand layers which may be channel abandonment facies or overbank deposits, the latter
of which are typically 10 feet thick. These thin horizons are of poor permeability and present 16/27a-1A
partial barriers to vertical flow. Towards the top of the sequence the sandstones become 16/28-5
interdigitated with basinal marine mudstones and develop into the Lista Formation as a 0.01
0 10 20 30
result of the waning of sediment influx into the area. Carbonate concretions and minor
POROSITY (per cent.)
limestones are not laterally continuous and will therefore only act as minor baffles to vertical
flow.
Porosity and permeability values are typically good,
predominantly 19 to 26 per cent. and 100 to 1000 md respectively.
The porosity values are consistent with sandstones that have not
undergone extensive burial and diagenesis. Primary depositional
characteristics therefore exert the strongest control on present
porosity and permeability distribution. The restricted diagenetic
effects are minimal, being confined to minor quartz overgrowths and
authigenic kaolinite development. Individual sand units generally
show a small decrease in permeability towards the top of each unit
FLUID PROPERTIES in response to an increased argillaceous content.
The Andrew field oil is a saturated light oil with a solution gas oil ratio of 898 scf/stb. The
formation volume factor is 1.522 rb/stb and viscosity is 0.4 cp. The gas expansion factor is
217 scf/Bcf and gas viscosity is 0.023 cp.

1000 1.8 1.8


GOR
RESERVOIR PRESSURE
800 1.4 1.4
Available RFT data do not clearly indicate either reservoir
B0
pressures or contact positions and pressures are taken from DST
GOR (scf/stb)

600 1.0 1.0


B0 (rb/stb)

data. Both the gas oil and oil water contacts are identifiable from
0 (cp)

wireline logs at 8189 and 8397 feet TVDSS respectively. DST data
400 0.8 0.8 give pressures of 3716 psia at the gas oil contact and 3760 psia at
the oil water contact. The reservoir is normally pressured with a
0
200 0.4 0.4
regional aquifer pressure gradient of 0.443 psi/ft. The pressure
gradient in the reservoir is 0.288.

0 0 0.0

0 1000 2000 3000 4000

PRESSURE (psig) 8000

8100
DEPTH (feet TVDSS)

GOC @ 8189 ft TVDSS


8200

CONTROLS ON RECOVERY
0.288 psi/ft
8300
The success of development of the Andrew field will be determined by the interaction of
geological, production and technological factors which are listed below. Should these
factors interact favourably, oil recovery is expected to be good, in the region of 40 per cent.
8400 OWC @ 8397 ft TVDSS
The structural relief of the reservoir is moderate, there is minimal faulting and porosities 0.443 psi/ft
and permeabilities are good.

There have been excellent production test results from the Andrew Formation, although 8500

the oil column is relatively thin. The thin oil column gives the potential for water coning, 3700 3720 3740 3760 3780 3800

but this may be restricted by the interdigitated nature of the shales and to a lesser extent INITIAL RESERVOIR PRESSURE (psig)

carbonates, which serve to restrict vertical reservoir permeability.

The field is being developed using horizontal well technology. Sweep efficiency is
planned to be maximised using a balanced offtake of oil and free gas. The net result of
this is expected to be a reduction in the required number of wells, which will help improve
the economic viability of the field.
POTENTIAL FACILITIES SPECIFICATIONS

Andrew Cyrus

UNITED KINGDOM
Water Depth 377 361

Andrew
(feet)
Platform Type Steel gravity base Subsea satellite
Function Production/Drilling/
Quarters (PDQ)
Jacket Weight 7500
(tonnes)
Total Weight 18-20000
(tonnes)

Photograph/Schematic
POTENTIAL PROCESSING AND EXPORT
Not Available SPECIFICATIONS

Oil throughput 40000


(bbl/day)
Gas throughput 30
(MMScf/day)

Oil Export 10" x 16km spur to 10" x 6.5km link


Brae to Forties System pipline to
Andrew
Gas Export 8" x 44km 4" x 6.5km link
gas lift line to
Andrew

Note: Andrew facilities may include extra capacity for the potential
development of the deeper Cretaceous accumulation.

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

@


Pre Corporation Tax

Net Present Value 863.66 570.11 442.63 372.99 313.44 239.75 148.79
Net Present Value (Deflated) 714.95 462.13 353.31 294.08 243.55 181.17 104.43
Profit/Inv Ratio 2.26 1.70 1.41 1.25 1.10 0.90 0.62 PRODUCTION PERFORMANCE
Profit/Inv Ratio (Deflated) 1.83 1.34 1.10 0.96 0.83 0.66 0.42 PROJECTED
NPV/Unit Oil Equiv. 6.09 5.76 5.46 5.22 4.96 4.52 3.68
NPV/Unit Oil Equiv. (Deflated) 5.89 5.37 4.97 4.67 4.35 3.83 2.88 60 100
Liquid
Payback Year 1998
Nominal Rate Of Return % 37.48 Gas

@@@@


Real Rate Of Return % 32.78
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


50
Post Corporation Tax
75
Net Present Value 556.11 366.12 281.07 233.98 193.37 142.69 79.52
Net Present Value (Deflated) 461.86 293.09 218.89 178.12 143.13 99.70 45.96 40
Profit/Inv Ratio 1.46 1.09 0.90 0.78 0.68 0.53 0.33
Profit/Inv Ratio (Deflated) 1.18 0.85 0.68 0.58 0.49 0.36 0.19
NPV/Unit Oil Equiv. 3.92 3.70 3.47 3.28 3.06 2.69 1.97
NPV/Unit Oil Equiv. (Deflated) 3.80 3.41 3.08 2.83 2.56 2.11 1.27 30 50

@@@@


Nominal Rate Of Return % 31.02
Real Rate Of Return % 26.55

Earnings Data 20

Gross Revenue 1,939.04 1,327.12 1,076.91 943.33 830.47 691.94 521.05 25


Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10
Corporation Tax 307.56 203.99 161.56 139.01 120.07 97.06 69.27
Capital Expenditure 381.62 336.32 313.02 298.84 285.64 267.49 241.01
Operating Costs 693.76 420.69 321.27 271.50 231.38 184.69 131.25
0 0
Gross Revenue (Deflated) 1,635.07 1,139.12 932.96 821.87 727.36 610.42 464.52
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 2000 2005 2010 2015
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 253.09 169.03 134.42 115.96 100.42 81.47 58.48 Year
Capital Expenditure (Deflated) 390.65 344.78 321.15 306.77 293.37 274.92 247.99
Operating Costs (Deflated) 529.47 332.22 258.51 221.02 190.44 154.33 112.09

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% CASH FLOW REPORT
Pre Corporation Tax Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Net Present Value 1,133.66 942.33 847.45 791.37 740.38 672.35 577.86 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Net Present Value (Deflated) 995.60 828.59 746.57 698.23 654.34 595.80 514.41
NPV/Unit Oil Equiv. 7.99 8.23 8.30 8.33 8.34 8.33 8.28 1993 0.0 0.0 0.0 20.0 0.0 0.0 0.0 -20.0 -26.0 0.0 0.0 0.0
1994 0.0 0.0 0.0 70.0 0.0 0.0 0.0 -70.0 -82.9 0.0 0.0 0.0
Post Corporation Tax 1995 0.0 0.0 0.0 180.0 0.0 0.0 0.0 -180.0 -192.6 0.0 0.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value 826.11 706.19 643.94 606.35 571.69 524.73 458.16 0.0 0.0 0.0 270.0 0.0 0.0 0.0 -270.0 -301.5 0.0 0.0 0.0
Net Present Value (Deflated) 742.51 632.91 577.25 543.89 513.26 471.89 413.36
NPV/Unit Oil Equiv. 5.82 6.17 6.31 6.38 6.44 6.50 6.57 1996 98.7 0.0 23.5 80.0 0.0 0.0 0.0 -4.8 -4.6 22.0 12.0 6.0
1997 261.5 0.0 50.2 20.8 0.0 0.0 0.0 190.5 163.2 54.0 30.0 18.0
Earnings Data 1998 268.3 0.0 52.3 10.8 0.0 26.1 26.1 179.1 136.5 54.0 30.0 12.0
1999 277.1 0.0 54.4 0.0 0.0 56.9 56.9 165.8 112.5 54.0 30.0 9.0
Gross Revenue 1,939.04 1,536.31 1,356.60 1,255.57 1,166.75 1,052.35 900.38 2000 219.4 0.0 49.7 0.0 0.0 62.7 62.7 107.0 64.6 39.9 30.0 6.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 175.6 0.0 46.3 0.0 0.0 47.9 47.9 81.4 43.8 29.5 30.0 4.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 142.6 0.0 44.0 0.0 0.0 36.6 36.6 62.0 29.7 21.8 30.0 3.0
Corporation Tax 307.56 236.14 203.52 185.02 168.69 147.62 119.70 2003 117.2 0.0 42.6 0.0 0.0 28.0 28.0 46.6 19.8 16.1 30.0 2.0
Capital Expenditure 111.62 106.98 104.44 102.83 101.29 99.10 95.71 2004 97.8 0.0 41.8 0.0 0.0 21.2 21.2 34.8 13.2 11.9 30.0 1.0
Operating Costs 693.76 487.00 404.71 361.37 325.07 280.90 226.81 2005 84.5 0.0 41.7 0.0 0.0 15.9 15.9 26.9 9.1 8.9 30.0 1.0
2006 73.5 0.0 41.1 0.0 0.0 12.2 12.2 20.2 6.1 6.5 30.0 1.0
Gross Revenue (Deflated) 1,635.07 1,318.68 1,175.27 1,093.91 1,021.88 928.38 802.69 2007 65.6 0.0 40.9 0.0 0.0 9.3 9.3 15.4 4.1 4.9 30.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 57.3 0.0 40.3 0.0 0.0 7.1 7.1 9.9 2.3 3.6 27.9 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 253.09 195.68 169.33 154.34 141.08 123.91 101.05 2009 0.0 0.0 124.9 0.0 0.0 -16.3 -16.3 -108.6 -23.0 0.0 0.0 0.0
Capital Expenditure (Deflated) 110.00 105.51 103.05 101.49 100.00 97.87 94.58
Operating Costs (Deflated) 529.47 384.58 325.64 294.18 267.55 234.71 193.70 Total 1,939.0 0.0 693.8 111.6 0.0 307.6 307.6 826.1 577.2 119.4 135.0 23.0

These cash flows include Andrew field only, plus Cyrus tariff income
48/18a Mobil 48/19a SUMMARY
11 Shell
6 CLIPPER The Anglia field is located in the UK sector of the Southern North Sea
2 approximately 80 km northeast of Bacton.
11 Anglia was discovered by Well 48/18b-1 in early 1972 and further
5
PT PW appraisal work showed that the structure extended into 48/19b to the
48/18b Ranger
east.
1 Annex B approval was granted in October 1990 and first gas was
EXCALIBUR achieved in December 1991. First phase development involved an
unmanned platform and six producing wells in the east of the field and
10 4
3 second phase development of the western area by means of a subsea
4
manifold development. Production from the western area started in
ANGLIA 3
CLIPPER October 1993 from horizontal Well 48/18b-9. A second well in the
LANCELOT 48/19cSOUTH western area was drilled in 1995.
Shell
7 The use of horizontal wells to improve productivity has proved
3
18d 1 9
8
successful. Gas is exported via the LOGGS pipeline to Theddlethorpe.
Rel. 7,10,12 Current interests in the Anglia field in per cent. are:-
5 9
6
2 Amerada Hess Ltd 29.29
12 Ranger Oil UK Ltd * 37.91
48/18c Arco 48/19b Ranger 48/19d Amerada Santos 32.80
8
2 operator *

48/23a
Arco
0 5 km

48/23b Conoco 48/24b Amerada

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties Anglia is a small gas field situated in the Sole Pit area of the
Southern Gas Basin. Gas in this area is found in the Rotliegendes
Gas Gravity S.G (air =1) 0.58 Group with reservoir quality being typically poor due to the tight sands.
Condensate Gas Ratio (bbl/MMscf) 1 Nearby fields include Barque and Clipper immediately to the north,
Gas Expansion Factor (vol/vol) 230 the 'V' fields to the east and Hewett approximately 30 km to the south.
Reservoir Pressure, Pi (psig) 4000 Like Anglia, the Barque, Clipper and 'V' fields produce from the
at Datum Depth of (ft TVDSS) 8650 Rotliegendes. Fields in the Hewett area also produce from the
Reservoir Temperature (F) 185 Rotliegendes but the Hewett field itself is primarily a Triassic reservoir.

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Rotliegendes Group
Geological Age Lower Permian
Porosity Range (per cent.) 3-18
Permeability Range (md) 0.1-10 (locally up to 200)
Connate Water Saturation (per cent.) 40
Depth to Top of Structure (ft TVDSS) 8500
Gas Water Contact (ft TVDSS) 8790

Reserves

Total Gas Reserves (Bcf) 250


Est. Gas Production to 31.12.95 (Bcf) 76
Remaining Gas Reserves (Bcf) 174

Production

Water Depth (feet) 74 FIELD DESCRIPTION


Production Start Date December 1991
Peak Gas Production (yrly average) (MMscf/day) 53 in 1992 The Anglia field comprises a northwest-southeast orientated fault
Platform(s) 1 steel jacket bounded structure within the Dowsing Fault Zone. Gas is present within
Number of Wells 8 (6 platform, 2 subsea (West Early Permian sandstones of the Rotliegendes Group, sealed by
extension)) Zechstein evaporites. The reservoir sandstones comprise dominantly
aeolian and fluvial facies. The Leman Sandstone Formation can be
zoned into four units on the basis of sedimentary facies, with overall
sheetlike geometry. Thin mudstones contribute to poorer reservoir
quality in the lower units. Log porosities are moderate to good in unit 3,
and moderate to poor in the other units.
The field contains a dry gas with low concentrations of inert gases
and is normally pressured.
Development of the field involves extensive use of horizontal wells to
increase the productivity of the relatively low permeability Rotliegendes
in this area. Well 48/18b-9, in the western area of the field, boosted
productivity via a 2940 feet horizontal section in the Rotliegendes. Well
48/19b-A3z drilled into the southeast of the field in 1991, has a
horizontal section in excess of 3500 feet. Horizontal wells have enabled
the number of wells in the phase two western development plan to be
cut from an initial estimate of four wells to three, of which two have been
drilled to date.
STRUCTURE AND STRATIGRAPHY

The reservoir in the Anglia field comprises sandstones of Early Permian age The field is a complex northwest to southeast trending fault-bounded structure

UNITED KINGDOM
which are assigned to the Rotliegendes Group, Leman Sandstone Formation. A thick located within the Dowsing Fault Zone, close to the axis of inversion. This axis
Zechstein evaporite sequence forms the vertical seal to the reservoir. Coals and represents the area of maximum uplift in Late Cretaceous to Early Tertiary times.
carbonaceous mudstones of the underlying Carboniferous sediments provided the

Anglia
source for the gas.

INTERPRETATIVE STRUCTURAL CROSS SECTION

48/18b-2 48/18b-1

Feet
S N
0

QUATERNARY and TERTIARY EARLY CRETACEOUS

2000
JURASSIC

4000
UPPER - LOWER TRIASSIC

6000 Top Bunter


LOWER TRIASSIC

8000 Zechstein Group


Rotliegendes Group
PRE-PERMIAN

10000
0 1 miles

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Anglia field is located within an area where the Rotliegendes Group argillaceous (sheet flood) and thick and coarser grained (channel fill).
sediments comprise dominantly aeolian and fluvial facies, south of a parallel belt of Four units can be recognised on the basis of facies characteristics. The lower two
lake margin sabkha and lacustrine sediments. units comprise mixed aeolian and fluvial facies. The third unit which is dominated by
These sediments were deposited in a hot, semi-desert setting within the Southern aeolian facies sandstones is overlain by the Weissliegend unit of probable reworked
Permian Basin. The sediments comprise, clean, well sorted aeolian dune Rotliegendes sandstones.
sandstones, more argillaceous, interdune and lake margin sabkha sandstones with
minor, thin lacustrine mudstones and fluvial sandstones which are thin and

REPRESENTATIVE WELL SECTION - 48/18b-1

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON
(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15
V Marine evaporitic dolomites and sapropelic
V mudstones. Non reservoir interval.
1
Dominantly aeolian dune sandstones with
minor, thin argillaceous interdune
sediments. Capped by probable reworked
Rotligendes sandstones (Weissliegend).
8700

48/18b-1 Geometry
Sheet like sediment body.

and K
Generally moderate to good. Reduced
8750

and K towards top due to cementation


within Weissliegend.
LEMAN SANDSTONE FORMATION
8800
ROTLIEGENDES GROUP

Fluvial sheet flood and channel fill


PERMIAN

sandstones with minor, thin lake margin


sabkha and possible lacustrine mudstones,
overlying and underlying aeolian dune
sandstones.
8850

Geometry
Stacked, sheet geometry fluvial and
aeolian sediment bodies.

and K
Generally moderate, locally poor in more
8900

argillaceous sediments.
8950

Aeolian dune sandstones.


Geometry
Sheet like sand body.
and K
Moderate to poor.

1. ZECHSTEIN GROUP
RESERVOIR GEOLOGY N POROSITY - PERMEABILITY CHARACTERISTICS
48/18b-1

1 10000

Unit 4
Anglia

Unit 3
1000
S
48/18b-2

Leman Sandstone Formation


100

Rotliegendes Group
Unit 2

PERMEABILITY (md.)
10

Unit 1
Unit 1
0.1
Unit 2
2
Unit 3

Unit 4
1. Zechstein Group
0.01
2. Carboniferous 0 10 20 30

POROSITY (per cent.)

0
Porosity values in the reservoir section are typically between 3
100
and 18 per cent. Trends in porosity and permeability are likely to be
200 feet controlled by the primary textural characteristics, grain size, sorting
and detrital clay content and hence by facies distribution. The best
porosity and permeability values occur in the cleaner, better sorted,
aeolian and fluvial sandstones.
Porosity and permeability generally range from 3 to 18 per cent.
The Leman Sandstone Formation can be subdivided into four units based on and 0.1 to 100md. However, the fluvial dominated units have poorer
sedimentary facies and this forms the basis of the reservoir layering. These four units reservoir characteristics (<15 per cent. and <10md), with the poorest
consist of two lower units (1 and 2) comprising fluvial and aeolian facies, a middle unit (3) reservoir occurring in the Weissliegend (Unit 4) likely to be a result
dominated by aeolian sandstones and an upper unit (4) of Weissliegend, probable marine of diagenetic cementation.
reworked sandstones.
Rotliegendes sandstones in these layers have an overall sheetlike geometry with a
complex internal architecture resulting from the interstratification and stacking of laterally
extensive aeolian, sabkha and sheetflood sandstones and more laterally restricted,
channel-fill sandbodies. Thin mudstones within units 1 and 2 are likely to be laterally
impersistent, but in combination contribute to the poorer reservoir quality of the lower units. RESERVOIR PRESSURE
The Leman Sandstone Formation is 483 feet thick in Well 48/18b-1 and 551 feet thick in
Well 48/18b-2, just to the south of the Anglia field. Regionally the Rotliegendes Group The Anglia field is normally pressured relative to a hydrostatic
thickens to the northeast. Reservoir quality is markedly better in the eastern area of the field gradient of 0.46 psi/ft. RFT data indicate a gas gradient of 0.07 psi/ft.
than in the west.

FLUID PROPERTIES
8450

The Anglia field contains a high calorific value dry gas with a condensate gas ratio of 1
bbl/MMscf. The average gas composition for the Anglia field, showing the high proportion of
methane and low inert gas content, is tabulated below.
0.07 psi/ft

1.0
COMPOSITION Average 8600
DEPTH (feet TVDSS)

(mol. %)
GAS DEVIATION FACTOR Z

CO2 0.32
N2 0.97
H2S Zi = 0.94
C1 95.90 0.95
C2 2.13
8750
C3 0.33
C4 0.16 GWC @ 8790 ft TVDSS
C5 0.47
C6+
S.G (Air = 1.0) 0.58 0.90 0.46 psi/ft
C.V. (Btu/scf) 1028
@ 185F (from correlation)
8900
0 1000 2000 3000 4000 5000 6000 3900 3950 4000 4050 4100 4150 4200
PRESSURE (psig) INITIAL RESERVOIR PRESSURE (psig)

CONTROLS ON RECOVERY

Recovery from the Anglia field is expected to be poor to moderate. The principal
factors affecting the recovery are as follows.

poor to moderate reservoir porosities and permeabilities, with the poorest use of horizontal wells to increase well productivities, particularly in the western
reservoir section in the western area of the field area
sheetlike geometry of the reservoir sandstones uncertainty associated with installation of compression facilities to allow a low
laterally impersistent non reservoir intervals within the reservoir section reservoir pressure at abandonment to be achieved
low risk of significant water influx due to probability of faulting and low
reservoir permeability
FACILITIES SPECIFICATIONS

East West

UNITED KINGDOM
Water Depth 74 102

Anglia
(feet)

Platform Type steel jacket subsea


manifold

Function minimum facilities -


wellhead platform
Total weight of structure (tonnes) 2025 -
Accommodation emergency only

Platform slots 6
Platform wells 5 up to 5 (planned)

PROCESSING AND EXPORT SPECIFICATIONS

Peak Gas Throughput 110


(MMscfday)

Gas Export 12" x 24 km to LOGGS then


to Theddlethorpe

The three-legged jacket was placed in the eastern section of the field and first
gas was in December 1991. The gas is exported through the LOGGS system and
the Theddlethorpe terminal. The facility is remotely controlled from this terminal. A
subsea manifold has been placed in the western sector and two wells drilled to
date.
(This is a Ranger photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 60

Net Present Value 224.00 125.73 88.45 69.58 54.32 36.61 16.67
Net Present Value (Deflated) 181.82 98.74 67.24 51.25 38.30 23.21 6.14

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 1.85 1.20 0.91 0.76 0.62 0.45 0.23
Profit/Inv Ratio (Deflated) 1.34 0.84 0.62 0.49 0.39 0.25 0.07
NPV/Unit Oil Equiv. 5.38 4.64 4.08 3.68 3.27 2.64 1.57 45
NPV/Unit Oil Equiv. (Deflated) 4.86 3.90 3.26 2.82 2.37 1.70 0.58

Payback Year 1996


Nominal Rate Of Return % 27.43
Real Rate Of Return % 22.59

Post Corporation Tax 30

Net Present Value 150.08 82.08 55.90 42.56 31.73 19.11 4.86
Net Present Value (Deflated) 119.71 61.37 39.02 27.63 18.38 7.60 -4.60
Profit/Inv Ratio 1.24 0.78 0.58 0.46 0.36 0.23 0.07
Profit/Inv Ratio (Deflated) 0.88 0.52 0.36 0.27 0.19 0.08 -0.06
NPV/Unit Oil Equiv. 3.60 3.03 2.58 2.25 1.91 1.38 0.46 15
NPV/Unit Oil Equiv. (Deflated) 3.20 2.42 1.89 1.52 1.14 0.55 -0.43

Nominal Rate Of Return % 22.45


Real Rate Of Return % 17.82

Earnings Data
0
Gross Revenue 538.52 335.88 262.79 226.16 196.51 161.73 121.21 1990 1995 2000 2005 2010 2015
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 73.92 43.64 32.55 27.02 22.59 17.50 11.81
Capital Expenditure 121.00 104.75 96.68 91.88 87.47 81.52 73.06
Operating Costs 193.52 105.41 77.67 64.71 54.72 43.60 31.48

Gross Revenue (Deflated) 467.67 305.07 244.14 212.94 187.28 156.64 120.01
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 62.11 37.37 28.22 23.62 19.92 15.62 10.74
Capital Expenditure (Deflated) 135.29 117.77 109.05 103.84 99.05 92.58 83.35
Operating Costs (Deflated) 150.56 88.56 67.86 57.85 49.93 40.85 30.53

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
ECONOMIC INDICATORS FROM 1/1/1996 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1990 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -19.7 0.0 0.0 0.0
1991 2.6 0.0 1.4 40.0 0.0 0.0 0.0 -38.8 -64.6 0.0 4.0 0.0
Pre Corporation Tax 1992 33.2 0.0 7.2 15.0 0.0 0.0 0.0 11.0 16.0 0.0 53.0 0.0
1993 33.4 0.0 7.2 10.0 0.0 0.0 0.0 16.1 21.0 0.0 53.0 0.0
Net Present Value 237.23 190.35 168.37 155.82 144.71 130.34 111.27 1994 30.9 0.0 7.9 30.0 0.0 4.7 4.7 -11.7 -13.8 0.0 46.0 0.0
Net Present Value (Deflated) 202.33 163.66 145.74 135.52 126.47 114.74 99.09 1995 34.2 0.0 8.7 10.0 0.0 2.2 2.2 13.3 14.2 0.0 52.0 0.0
NPV/Unit Oil Equiv. 8.18 8.53 8.63 8.67 8.69 8.70 8.66 Total To Start Of Discounting ( 1/JAN/1996)
134.2 0.0 32.4 115.0 0.0 6.9 6.9 -20.1 -46.9 0.0 75.9 0.0
Post Corporation Tax
1996 34.8 0.0 8.6 6.0 0.0 3.5 3.5 16.7 16.1 0.0 51.0 0.0
Net Present Value 170.17 139.13 124.24 115.64 107.97 97.97 84.55 1997 36.2 0.0 8.9 0.0 0.0 4.5 4.5 22.8 19.5 0.0 51.0 0.0
Net Present Value (Deflated) 147.40 121.20 108.84 101.73 95.40 87.13 75.97 1998 37.6 0.0 9.3 0.0 0.0 5.9 5.9 22.5 17.1 0.0 51.0 0.0
NPV/Unit Oil Equiv. 5.87 6.23 6.37 6.43 6.48 6.54 6.58 1999 36.7 0.0 9.2 0.0 0.0 7.0 7.0 20.5 13.9 0.0 47.9 0.0
2000 33.7 0.0 8.9 0.0 0.0 7.3 7.3 17.4 10.5 0.0 42.2 0.0
Earnings Data 2001 30.8 0.0 8.7 0.0 0.0 6.8 6.8 15.3 8.2 0.0 37.2 0.0
2002 28.3 0.0 8.4 0.0 0.0 6.3 6.3 13.6 6.5 0.0 32.8 0.0
Gross Revenue 404.36 301.62 259.35 236.59 217.21 193.12 162.65 2003 25.9 0.0 8.2 0.0 0.0 5.8 5.8 11.9 5.1 0.0 28.9 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 23.7 0.0 8.0 0.0 0.0 5.3 5.3 10.4 3.9 0.0 25.4 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 21.7 0.0 7.7 0.0 0.0 4.8 4.8 9.2 3.1 0.0 22.4 0.0
Corporation Tax 67.06 51.22 44.13 40.18 36.73 32.37 26.72 2006 19.8 0.0 7.3 0.0 0.0 4.3 4.3 8.3 2.5 0.0 19.7 0.0
Capital Expenditure 6.00 5.86 5.77 5.72 5.67 5.60 5.48 2007 18.2 0.0 7.0 0.0 0.0 3.9 3.9 7.3 2.0 0.0 17.4 0.0
Operating Costs 161.12 105.42 85.21 75.06 66.84 57.19 45.90 2008 16.6 0.0 6.6 0.0 0.0 3.5 3.5 6.5 1.5 0.0 15.3 0.0
2009 15.3 0.0 6.2 0.0 0.0 3.2 3.2 5.9 1.2 0.0 13.5 0.0
Gross Revenue (Deflated) 324.22 249.77 218.37 201.22 186.45 167.85 143.87 2010 14.0 0.0 5.7 0.0 0.0 2.9 2.9 5.3 1.0 0.0 11.9 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2011 11.0 0.0 5.1 0.0 0.0 2.6 2.6 3.3 0.5 0.0 9.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 54.93 42.46 36.90 33.79 31.07 27.62 23.12 2012 0.0 0.0 37.5 0.0 0.0 -10.6 -10.6 -26.8 -4.0 0.0 0.0 0.0
Capital Expenditure (Deflated) 6.00 5.86 5.77 5.72 5.67 5.60 5.48
Operating Costs (Deflated) 115.89 80.26 66.85 59.97 54.30 47.51 39.30 Total 404.4 0.0 161.1 6.0 0.0 67.1 67.1 170.2 108.8 0.0 174.0 0.0

These cash flows include Anglia field only


30/24 Hamilton 30/25b Shell SUMMARY
32 36
The Argyll, Duncan and Innes fields lie in close proximity to one
24
27 another in Quadrant 30, some 320 km southeast of Aberdeen in the UK
INNES Sector of the North Sea. Argyll was the first UK oil field to produce from
35
the North Sea, start-up occurring in June 1975, from the Transworld 58
30/25a Hamilton (TW58) floating production facility. Duncan was discovered 6 km from
4 Argyll in 1980 and production began via the TW58 in late 1983. In
7
March 1985 the TW58 was replaced by a larger vessel, the Deep Sea
38 Pioneer, to facilitate water injection into Duncan and this released the
former vessel for use at Innes. Innes was discovered 11 km from Argyll
21
2 in early 1983 and began production in November 1985. Innes was later
19 29 4 26 183 developed by means of a subsea satellite manifold producing to the
30 20 10 3 central floating production facility (RPF). This was more cost effective.
14 1
15 6 5 13
22 17 25 29 All three fields have now ceased production: Innes in February 1991,
33 28 A 16
23 8 ARGYLL Argyll and Duncan in October 1992. The whole complex was
DUNCAN 11
31 2 1 12 abandoned in July 1993.
34,37
30/29a Agip 30/30 Shell The current interests in block 30/24 in per cent. are :-
2
1
Hamilton (BHP)* 36.00
1 Elf (SNEA) 25.00
Texaco North Sea UK Ltd 24.00
IRIS
LASMO 12.50
Monument Exploration
30/29b Agip and Production Ltd 2.50

operator *
0 4 km 2
1

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties ARGYLL DUNCAN Argyll, Duncan and Innes are located at the southern extremity of the
Central Graben and produced from different geological horizons. Argyll,
Oil Gravity (API) 38 38 in common with the Auk field to the northwest, produced from Zechstein
Gas/Oil Ratio (scf/stb) 250 460 carbonates and Rotliegendes sandstones. Duncan, like Clyde to the
Bubble Point Pressure, Pb (psig) 800 1920 northwest, produced from Upper Jurassic sands. The small Innes field
Formation Volume Factor at Pi (rb/stb) 1.12 1.32 produced from the Rotliegendes.
Oil Compressibility (vol/vol/psi) 9 x 10-6 11 x 10-6 The nearest fields to the northeast, across the UK-Norway border,
are the Cretaceous chalk fields of the Ekofisk Complex and to the east
Original Reservoir Pressure, Pi (psig) 5300 5150
the stand alone Angus development. Other nearby discoveries include
At Datum Depth of (ft TVDSS) 8900 9000
Iris (30/29) and wells on Block 30/18.
Reservoir Temperature (F) 255 250

Rock Properties

Rock Type Carbonates/Sandstones Sandstone


Stratigraphic Unit Zechstein/Rotliegendes Group Fulmar Formation
Geological Age -------------- Permian ------------- Jurassic
Porosity Range (per cent.) 8-18,12-28 20-25
Permeability Range (md) 0.1-100,10-1000 1-1000
Connate Water Saturation (per cent.) 50 25-35
Oil Water Contact (ft TVDSS) 9550 -----
Depth to Top of Structure (ft TVDSS) 8700 9100

Reserves

Total Reserves (MMstb) 74 17


Total Oil Reserves (MMstb) ---------------------------------- 97* ------------------------------
Oil Production to 31/12/95 (MMstb) ---------------------------------- 97 --------------------------------
Remaining Oil Reserves (MMstb) ----------------------------------- 0 --------------------------------- FIELD DESCRIPTION
(*Inc. Innes 6 MMstb)
The Argyll field consists of a horst trending northeast-southwest and
is almost wholly contained in Block 30/24. The field is a tilted structural
Production trap bounded by faults to the northeast, northwest and and southeast
and dip closed to the west. The reservoir cap rock consists of Triassic
Water depth (feet) --------------------------------- 250 ------------------------------- siltstones and Cretaceous chalks. The main oil reservoir is of Permian
Production Start Date June 1975 November 1983 age, comprising the Zechstein carbonates and the underlying
Peak Production (Oil and NGL) (stb/day) 31,000 Rotliegendes sandstone. A second minor reservoir of Jurassic age has
Platform(s) Floating Production Facility been found on the western side of the Argyll horst. Gas lift was initiated
Number of Wells - Producers 9 5 in 1985 to maintain output during the latter stages of the fields'
production.
Water injectors 2
Reservoir quality is moderate to good and the low GOR oil is
Gas injectors
produced by virtue of a strong natural aquifer.
Oil and NGL Export ----------------------- Shuttle Tankers ---------------------
The Duncan field contained oil of good quality in Jurassic Fulmar
Gas Export ------------------------------- Flared -----------------------------
sands.
The small Innes field produced oil from the Rotliegendes via two
wells. Production from Innes was originally via the TW58 but from
January 1987 began producing via subsea flowlines tied back to the
Deep Sea Pioneer.
Innes, Argyll and Duncan have now ceased production and were
fully abandoned in 1993.
Argyll, Duncan & Innes
STRUCTURE AND STRATIGRAPHY

91
The Argyll field is located on a south westerly dipping high relief fault

UNITED KINGDOM
0 2
50

87 900 9
0 89 bounded block, along the western margin of the Central Graben. It is cut by

0
0
93

865
860
numerous small north northwest-south southeast and northeast- southwest
0 trending faults resulting in the formation of an intensively faulted and
30/25a-2

90 00
complex structure.

88
00
89
9105 The main reservoirs were fractured Zechstein carbonates (Argyll

875
9

87
1 89
Formation) and Rotliegendes sandstone (Auk Formation), which are

00
0
9
00 3

8800
91 9089 89 10 0 0
870 9

50
5
87
87 8
7 encountered at depths ranging from 8700 to 9400 feet TVDSS. These thin

91
26 5
83 89 18 updip to a culmination adjacent to the main northwest-trending fault

00
830

87
825 00

5
88

50
88

83
895 905 0
905 00 bounding the field to the northeast. The Zechstein carbonates were the main
90
0 00 producing zone, with 100 to 300 feet of net pay and a 131 to 167 feet oil

88
90
00

9150
88

890
89 90 column. The gross thickness of the oil column in the Rotliegendes

0
13

840

89

0
sandstones varied from 131 to 367 feet. The Zechstein carbonates and

50
5 89

8900
8450
14
Rotliegendes sandstones are progressively sealed by Zechstein evaporites

89
9200

50 89
91

89
25
(Turbot Bank Formation), Triassic mudstones (Smith Bank Formation) and

92
6

00
Chalk (Valhall/Tor Formations) in a northeasterly direction.

885
20

915
9450

9300

0
The Upper Jurassic, Fulmar Formation constitutes the reservoir in the

0
915

885
16
37 Duncan field, sealed by overlying Cretaceous mudstones and chalks.

8900
8850
31
95

11

8850
9
00

28
8
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
89

8900
91
940

90
95
The Zechstein carbonates consist predominantly of dolomites deposited
00

00
0

39 8850 12
90

within a basinal environment. Interbedded salts precipitated between the


9300

2 dolomites have been subsequently dissolved resulting in collapse of the


92

0
955
89
00
950

dolomites. It has not been established to which Zechstein cycle(s) the


94

34
890 00
0

91 dolomites should be assigned.


9100

0
ARGYLL The Rotliegendes Group sediments comprise shallow desert lake
92

5
90
91
0
900 mudstones and marginal cross-bedded aeolian dune sandstones at the
TOP AUK FORMATION
930

95
DEPTH STRUCTURE base. They are overlain by low-sinuosity and braided alluvial, current rippled,
0

9200 94
9400

92

fining upwards sandstones and thinly bedded sheetflood sandstones. These


00

95 9300 93 0 1 km
00 are capped by argillaceous aeolian interdune sandstones and coarser
93

9500
00

94 9400 (Contours in feet TVDSS) grained, cross-bedded aeolian dune sandstones. The alluvial systems
00
95

advanced northward from the Mid-North Sea High source area over a low-
00
95

lying plain with an ephemeral desert lake and marginal aeolian dune fields.
The Upper Jurassic, Fulmar Formation comprises shallow marine
(From Robson D, 1991)
sandstones which are clean and fine to medium grained. These sediments
are interpreted to have been emplaced by storm processes.

INTERPRETATIVE STRUCTURAL CROSS SECTION

30/24-8 30/24-6 30/24-5 30/24-3


Feet SW NE
5000

6000

7000 Top Horda Formation

8000 Top Balder Formation or equivalent


Humber Group
9000 Top Chalk Gro
up
up
Rotliegendes Gro
10000 TRIASSIC Old Red Sandstone Base C
Zechstein Group romer K
noll Grp
PRE-CRETACEOUS .
11000

0 1 km

REPRESENTATIVE WELL SECTION - 30/24-15 - DUNCAN


CORE

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) ROCK ( g/cc )
DESCRIPTION 0 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY 150


30/24-15 CALIPER UNIT NEUTRON
VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


Marine mudstones forming laterally extensive 3
non-reservoir horizon
9450

Shallow marine sandstones possibly emplaced


UPPER JURASSIC

FULMAR FORMATION
HUMBER GROUP

by storm processes. Light grey and brown, fine


to medium grained, with moderately sorted,
subangular to subrounded grains. Locally
cemented and calcareous. Light brown oil
staining.
9500

Geometry
Laterally extensive sheet like sandbody.

and K
and K likely to be moderate to good.

Desert lake mudstones forming laterally


30/24-5 extensive non-reservoir horizon. 1 2 4

1. TRIASSIC 3. KIMM. CLAY FM.


2. "TRIASSIC GROUP" 4. SMITH BANK FM.
REPRESENTATIVE WELL SECTION - 30/24-5 - ARGYLL
M Low sinuosity fluvial channel and sheet
ROTLIEGENDES GROUP ZECHSTEIN GRP.
KUPF. FM.

M flood sandstones; interbedded with


overbank-flood plain muds.
M

Geometry
9100

M Elongate, lenticular and thin, sheet like


sandbodies with minor thin laterally
PERMIAN

impersistent mudstones which may act as


M
vertical permeability baffles.

and K
AUK FORMATION

M M Moderate porosity and moderate to good


9150

permeability preserved within fluvial


M channel sandstones. Trends in porosity
and permeability controlled by primary
depositional characteristics and
M cementation.
MM
M
Argyll, Duncan & Innes
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

30/24-15
10000
1 4 1. Chalk Group
2 5 2. Cromer Knoll Group

Humber Gp.
6 3. Rotliegendes Group
4. Tor Formation
7 5. Valhall Formation
6. Kimmeridge Clay Formation
7. Fulmar Formation 1000

Triassic Gp.
8. Smith Bank Formation
8 9. Argyll Formation
10. Kupferschiefer Formation
11. Zechstein Group
12. ?Old Red Sandstone

Turbot Bank Fm.


13. Ekofisk Formation 100

Zechstein Gp.
30/24-8

PERMEABILITY (md.)
9 30/24-6
10 10
Auk Fm.

30/24-5
3
13
30/24-3

1 1
4
11 9

Rotliegendes Gp.
Auk Fm.
0.1
0

12
100

0.01
0 10 20 30
200 feet
POROSITY (per cent.)

Zechstein Carbonates - average log porosities range from 8 to 18


per cent. whilst core porosities average only 5 per cent. The latter
are not, however, considered representative, as much of the
reservoir porosity is contributed by vugs and fractures.
No stratigraphic or facies subdivisions have been reported for the Zechstein carbonates. Rotliegendes sandstones - the 'Alpha' and 'Beta' unit sandstones
The reservoir characteristics of the Rotliegendes sandstones are controlled by both have generally moderate to good porosity (17 to 28 per cent.) and
facies types and diagenetic histories. The sequence can be subdivided into two reservoir good to very good permeabilities (300 to 3000 md). The 'Gamma'
genetic units (i) the 'Alpha' and 'Beta' units consisting mainly of fairly homogeneous laterally unit fluvial channel and aeolian dune sandstones have moderate to
extensive aeolian influenced sandstones, confined to the central fairway (the Alpha Graben) good porosities (12 to 28 per cent.) while permeabilities can be good
in the field, and (ii) the 'Gamma' unit of variable lithology consisting of laterally restricted (up to 1000 md).
fluvial channel, alluvial plain, desert lake and minor dune facies, in which variations in the Trends in porosity and permeability are controlled by facies type
depositional processes and diagenesis principally control the reservoir characteristics. and diagenetic history. The clean 'Alpha' and 'Beta' unit sands have
The 'Alpha' unit reaches a maximum thickness of 113 feet in the Alpha Graben and is excellent reservoir characteristics with only minor authigenic
stratigraphically thinned or truncated by faulting to the northeast and southwest. The cements and clays. The 'Gamma' unit displays rapid vertical and
underlying 'Beta' unit has a maximum thickness of 35 feet. The thickest (about 550 feet) horizontal variations in reservoir quality. The fluvial sands in the
interval of the 'Gamma' unit occurs along the east side of the field, thinning to the north. north are characterised by extensive quartz overgrowths and
The Upper Jurassic, Fulmar Formation forms a relatively thin, but laterally extensive, kaolinite, whilst in the south and west dolomite cement and illite are
sheetlike sandbody. It thins to zero to the east where it onlaps towards the crest of the Argyll present, although good secondary porosity is also present.
structure. Fulmar Formation - porosities are good, typically 20 to 25 per
cent. and permeability values range from 1 to 1000 md. Trends are
FLUID PROPERTIES controlled by the primary textural characteristics of grain size and
clay content.
Rotliegendes and Zechstein oils in Argyll appear to have similar PVT properties except
that the oil viscosity in the Zechstein may be somewhat lower than that in the Rotliegendes
at around 0.8 cp. Oil in Duncan has a higher GOR and formation volume factor than that in RESERVOIR PRESSURE
Argyll.
Pressure data from wells drilled on Argyll before the start of
production indicate a considerable spread. Based on PVT data, an
oil gradient of 0.32 psi/ft was to be expected. The Zechstein and
Rotliegendes horizons appear to be in pressure communication and
500 1.5 4
were initially overpressured by some 1100 psi.
Duncan GOR The Duncan field was similarly overpressured with an oil gradient
of 0.32 psi/ft.
400 1.4 Duncan B0
3
GOR (scf/stb)

300 1.3 8500


B0 (rb/stb)

Argyll GOR
0 (cp)

200 1.2 Argyll 0

Argyll B0 Argyll - Rotliegendes and Zechstein


1 (Pressure Data Range)
100 1.1
Duncan 0
@ 255 F (Argyll) 9000
DEPTH (feet TVDSS)

@ 250 F (Duncan)
0 1.0 0
0 1000 2000 3000 4000 5000 6000

PRESSURE (psig)
Duncan - Jurassic
0.32 psi/ft
9500
CONTROLS ON RECOVERY

Recovery estimates for Argyll steadily increased during the field's life as infill drilling
proved extremely successful in this highly complex faulted field.
A strong natural aquifer provided pressure support and this combined with gas lift
allowed a high recovery factor to be achieved. 10000
5000 5100 5200 5300 5400 5500
The good to excellent Jurassic sand quality in Duncan allowed a moderate to high
recovery factor to be achieved. INITIAL RESERVOIR PRESSURE (psig)
Argyll, Duncan & Innes
FACILITIES SPECIFICATIONS

Water Depth 250

UNITED KINGDOM
(feet)
Platform Type floating production facility
Function production/accommodation

Jacket Weight
(tonnes)
Total Weight
(tonnes)

Accommodation 100

Well Slots 16
Wells 9 (Argyll) + flowlines from
Duncan manifold & Innes

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 70000


(bbl/day)

Oil Export loading buoy + shuttle tankers


Gas Export flared

Note: Innes ceased production in 1991, Argyll and Duncan ceased in 1992.
All three were abandoned in 1993.

(Reproduced by permission of Hamilton Brothers Oil and Gas)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL

Pre Corporation Tax 40

Net Present Value 464.49 299.32 234.41 200.67 172.78 139.44 99.95
Net Present Value (Deflated) 990.02 662.18 529.43 459.00 399.77 327.42 238.67
Profit/Inv Ratio 1.55 1.49 1.45 1.42 1.40 1.35 1.26

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio (Deflated) 1.40 1.28 1.21 1.16 1.11 1.03 0.90
NPV/Unit Oil Equiv. 4.79 4.71 4.61 4.53 4.43 4.27 3.97
30
NPV/Unit Oil Equiv. (Deflated) 4.31 4.01 3.80 3.65 3.51 3.29 2.92

Payback Year 1976


Nominal Rate Of Return % 94.44
Real Rate Of Return % 68.52

Post Corporation Tax 20

Net Present Value 245.32 162.72 129.25 111.57 96.78 78.87 57.23
Net Present Value (Deflated) 548.79 374.08 301.34 262.14 228.79 187.48 135.74
Profit/Inv Ratio 0.82 0.81 0.80 0.79 0.78 0.76 0.72
Profit/Inv Ratio (Deflated) 0.77 0.73 0.69 0.66 0.64 0.59 0.51
NPV/Unit Oil Equiv. 2.53 2.56 2.54 2.52 2.48 2.42 2.28
NPV/Unit Oil Equiv. (Deflated) 2.39 2.26 2.16 2.09 2.01 1.88 1.66 10

Nominal Rate Of Return % 80.28


Real Rate Of Return % 56.40

Earnings Data
0
Gross Revenue 1,315.70 830.95 647.54 553.94 477.52 387.41 282.61
Royalty 104.25 67.47 53.04 45.56 39.38 32.01 23.32 1970 1975 1980 1985 1990 1995
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 219.17 136.60 105.16 89.10 76.00 60.57 42.72 Year
Capital Expenditure 299.75 200.81 161.47 140.91 123.85 103.41 79.17
Operating Costs 447.20 263.35 198.61 166.80 141.51 112.55 80.18

Gross Revenue (Deflated) 2,786.97 1,888.96 1,535.32 1,350.28 1,196.13 1,009.80 784.31
Royalty (Deflated) 225.06 153.60 124.81 109.59 96.84 81.34 62.47
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 441.22 288.10 228.09 196.86 170.98 139.95 102.93
Capital Expenditure (Deflated) 708.93 515.66 437.01 395.24 360.12 317.28 264.93
Operating Costs (Deflated) 862.96 557.54 444.08 386.45 339.40 283.75 218.24

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
ECONOMIC INDICATORS FROM 1/1/1996 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
1974 0.0 0.0 0.0 17.4 0.0 0.0 0.0 -17.4 -532.8 0.0 0.0 0.0
Pre Corporation Tax 1975 20.4 0.8 7.0 11.9 0.0 0.0 0.8 0.6 16.3 10.0 0.0 0.0
1976 58.7 3.7 14.7 4.0 0.0 0.0 3.7 36.3 707.5 22.6 0.0 0.0
Net Present Value 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1977 55.3 5.6 14.7 5.0 0.0 8.6 14.2 21.4 332.0 16.7 0.0 0.0
Net Present Value (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1978 36.1 4.1 14.6 6.0 0.0 15.7 19.9 -4.4 -54.2 13.6 0.0 0.0
NPV/Unit Oil Equiv. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1979 59.2 4.4 12.7 10.0 0.0 6.5 10.9 25.6 270.7 16.6 0.0 0.0
1980 85.8 7.5 11.7 12.4 0.0 16.0 23.5 38.1 329.1 15.6 0.0 0.0
Post Corporation Tax 1981 64.6 7.3 24.0 27.5 0.0 27.3 34.6 -21.5 -145.6 9.6 0.0 0.0
1982 109.0 7.9 36.9 28.3 0.0 4.0 11.9 31.9 178.7 15.7 0.0 0.0
Net Present Value 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1983 120.1 10.5 35.0 42.3 0.0 17.4 27.8 15.0 71.7 16.5 0.0 0.0
Net Present Value (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1984 159.6 12.4 39.1 84.8 0.0 16.3 28.7 7.0 29.7 19.1 0.0 0.0
NPV/Unit Oil Equiv. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1985 243.5 19.6 39.2 40.1 0.0 17.2 36.7 127.5 476.2 31.4 0.0 0.0
1986 82.0 14.5 34.6 10.1 0.0 63.2 77.8 -40.5 -132.1 22.7 0.0 0.0
Earnings Data 1987 69.9 4.3 25.0 0.0 0.0 11.7 16.0 28.9 84.4 17.0 0.0 0.0
1988 37.3 2.2 25.1 0.0 0.0 11.8 14.0 -1.9 -4.9 12.0 0.0 0.0
Gross Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1989 36.5 0.4 22.3 0.0 0.0 2.2 2.6 11.6 26.6 9.0 0.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1990 38.5 0.8 26.4 0.0 0.0 3.4 4.1 8.0 15.8 8.0 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1991 20.9 0.5 26.3 0.0 0.0 2.8 3.3 -8.7 -14.5 5.0 0.0 0.0
Corporation Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1992 18.3 0.0 23.0 0.0 0.0 -2.6 -2.6 -2.0 -3.0 4.6 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1993 0.0 -2.3 14.9 0.0 0.0 -2.2 -4.6 -10.3 -13.4 0.0 0.0 0.0
Operating Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1994 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
1995 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Gross Revenue (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total To Start Of Discounting ( 1/JAN/1996)
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,315.7 104.3 447.2 299.7 0.0 219.2 323.4 245.3 1,638.3 97.0 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1996 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

These cash flows include Argyll, Duncan and Innes fields (now abandoned)
4
SUMMARY
8
MOIRA
8 16/29c
The Armada complex of gas/condensate fields comprises Fleming,
7
FENRIS Drake and Hawkins which have a large areal extent, straddling three UK
11 Phillips
blocks in the Central North Sea (16/29a, 16/29c, 22/4a, 22/5a and
MARIA 15/12b Statoil
22/5b). The group of fields are situated some 250 km east of Aberdeen.
The first well, 22/5a-1, was drilled in 1980; this discovery has
9
7 subsequently been named Hawkins. Well 22/5b-2 drilled in 1982
16/29a Phillips 15/12d Statoil
3
discovered Drake. Both of these discoveries were at Upper Jurassic
22/4b Mobil 1 6/3
2
level. It was not until Well 22/4a-3 was drilled in 1987 that Fleming was
HAWKINS discovered, thus demonstrating the presence of a Paleocene reservoir
3 above the previous discoveries. In total, 12 exploration and appraisal
wells were drilled on and around the discoveries up to 1989. These
ARMADA 5 1 were followed by a 3D seismic survey carried out in 1992 to delineate
COMPLEX the areal extent of the whole complex.
9 12 All three fields contain gas condensate and will be developed via a
5
1 10 8 single platform with extended reach wells to drain the outlying parts of
the reservoir. Start up is expected in October 1997, with reserves
4 DRAKE expected to last approximately 20 years. Wet gas will be taken to the
2
4,4A FLEMING 7 CATS riser platform at Everest and then on to Teesside for processing
22/5b 2
into sales gas and NGLs. Heavier produced liquids will be separated
British Gas offshore and exported via Everest and Forties to Cruden Bay.
The current interests in the Armada complex in per cent are:-
11
13 Agip 5.58
Amoco 18.20
6 British Gas plc* 46.27
Fina 11.53
Phillips 11.45
Yorkshire Energy 6.97
22/4a Phillips 22/5a Amoco 22/5c Rel.
operator *

The unitisation of the whole complex is fixed and will not be subject
to future redetermination.

LOCAL SETTING

The Fleming, Drake and Hawkins fields (the Armada Complex) lie on
the northeastern flank of the Central Graben approximately 250 km east
northeast of Aberdeen and 20 km north of the Everest field.
RESERVOIR CHARACTERISTICS The Fleming field reservoir section comprises Paleocene Maureen
Formation sandstones and interbedded shales. The reservoir partially
Fluid Properties overlies and extends beyond the Drake and Hawkins fields. The
Fleming Drake Hawkins reservoir for both these underlying accumulations is the Upper Jurassic
Ula Formation which is represented by a thick sandstone interval.
The complex is close to the boundary of the UK and Norwegian
Gas Gravity (air=1) 0.67 to 0.69
sectors of the North Sea and as such, is positioned between the
Condensate Gravity (API) 48 to 56 45 to 50 45 to 50 Maureen and Moira fields to the north-northeast and Everest to the
Condensate Gas Ratio (stb/MMscf) 30 to 75 50 (approx.) 45 to 50 south. The Maureen and Moira fields also comprise the Paleocene
Gas Expansion Factor, Eg @ Pi (scf/rcf) 215 (approx.) 265 (approx.) 255 (approx.) Maureen Formation reservoir whereas Maria is a deep Jurassic
Reservoir Pressure Pi (psia) 4110 (approx.) 6020 (approx.) 5560 (approx.) discovery below Moira. The Everest field, some 20 km to the south has
At Datum Depth of (ft TVDSS) 9191 11322 10137 accumulations in the Paleocene Forties and Andrew Formations. Its
Reservoir Temperature (F) 256 285 260 proximity will provide a convenient entry point to the CATS pipeline for
the transportation of gas to Teesside.
Rock Properties

Rock Type Sandstone Sandstone Sandstone FIELD DESCRIPTION


Stratigraphic Unit Maureen Formation Ula Formation Ula Formation
Geological Age Paleocene U. Jurassic U. Jurassic The Armada complex lies on the eastern edge of the Central
Porosity Average (per cent.) 13-32 12-30 - Graben. Although depth structure map data are not available, well data
Permeability Range (md) 1-1000 1-2000 - indicate that the Fleming field is a combination dip and stratigraphic
Connate Water Saturation (per cent.) - - - closure at the easterly limit of the Paleocene sand occurrence. As such
Hydrocarbon Water Contact (ft TVDSS) 9191 11322 10137 it consists of an elongate wedge of sands, thinning from over 200 feet
Depth to Top of Structure (ft TVDSS) in the west to zero at the easterly limit. Reservoir quality is moderate to
good with porosities of 13 to 32 per cent. and core permeabilities of 1 to
1000 md. The Drake and Hawkins fields comprise smaller probable fault
Reserves and dip closed Jurassic fault block accumulations, with the reservoir
comprising the approximately 500 feet thick Ula Sandstone. Reservoir
Total Liquid/Gas Reserves (MMstb, Bcf) 17, 420 25, 600 7, 180 quality is variable, being best at Drake where porosity ranges from 12
Est. Liquid/Gas Production to 31.12.95 (MMstb, Bcf) 0, 0 0, 0 0, 0 to 30 per cent., and core permeabilities from 1 to 2000 md, comparable
Remaining Liquid/Gas Reserves (MMstb, Bcf) 17, 420 25, 600 7, 180 with the quality of Fleming.
The reservoirs contain gas condensates and have produced at rates
Production of 23-40 MMscf/day of gas and 800 to 1800 bbl/day of 46 to 56 degrees
API gravity condensate, giving a condensate gas ratio of some 45 to 75
Water Depth (feet) 290 barrels of liquid per MMscf of gas.
Production Start Date October 1997 Development plans for this area are centred around a single manned
Peak Production (Gas & NGL) (MMscf/d, Mstb/d) 300, 17 production, quarters and wellhead platform with start up anticipated for
Platform(s) 1 October 1997.
Armada will be developed in three phases. Phase One will comprise
Number of Wells Up to 20
the pre-drilling of up to 10 wells through a template and installation of
Gas Export CATS to Teesside platform and tiebacks with export pipelines. Extended reach drilling
Liquid Export Forties pipeline techniques will allow drainage of all three reservoirs from a single
drilling site with up to 20 wells. Phase Two is expected to begin in the
year 2000, and will involve drilling of up to seven additional wells,
subject to performance of the Phase One pre-drilling. Phase Three will
comprise the re-configuration of the export compression system to
provide both booster and export compression.
Gas will be processed on the Armada platform and exported via the
Everest riser platform to two subsea pipelines connected to the Central
Area Transmission System (CATS) riser platform. Gas and NGL will
then be transported to an expanded processing plant at Teesside.
Condensate will join the Everest and Lomond condensate at the
Everest riser platform and be transported to the Forties System for
export to Cruden Bay.
STRATIGRAPHY AND STRUCTURE

Armada Complex
The Armada complex lies on the northeastern edge of the Central Graben. There The Drake field comprises a probable tilted fault block trap which is sealed by dip

UNITED KINGDOM
are three separate accumulations - Fleming, Drake and Hawkins. and fault closure. The Hawkins field represents a salt-generated elongate dome and
At present, no published top reservoir depth structure maps are available. is also a combination fault and dip closure. Both fields are Upper Jurassic Ula
However well data indicate that the Fleming field is a north-south elongate shaped Formation accumulations which are sealed by the Heather and Kimmeridge Clay
accumulation and represents a combination dip and stratigraphic trap, with closure Formation shales, or Cretaceous shales where subcrop occurs due to Base
probably being pinch-out to the east and dip closure to the north, south and west. Cretaceous erosion.
The field is a Paleocene accumulation in the Maureen Formation of the Montrose
Group. It is sealed by the overlying Lista mudstones.
INTERPRETATIVE STRUCTURAL CROSS SECTION
FLEMING FIELD

HAWKINS FIELD DRAKE FIELD


16/29-7 16/29-9 22/5-1 22/5-4 22/5-2
Feet

7000

8000 Maureen Sandstone Member


TERTIARY
9000

10000
UPPER CRETACEOUS
Chalk Group
11000 LOWER CRETACEOUS

12000 Cromer Knoll Group


JURASSIC
Salt diapir
13000 PERMIAN Ula Sandstone Formation
Zechstein Group
14000 TRIASSIC and older
0 2 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Paleocene Maureen Formation sediments of the Fleming field represent the Upper Jurassic sedimentation occurred in a subsiding shallow marine shelf environment
deposites of a series of high density turbidites, and associated marine shales. The upon which a thick sequence of shallow marine, largely bioturbated and variably
turbidites were supplied from the west, and flowed into the Central Graben via the argillaceous sandstones accumulated. These sands are common along the eastern
Witch Ground Graben area. Sand bearing flows were "channelled" by sea-floor flank of the Central Graben, and similar sediments occur at Ula and Gyda fields to
topography along the linear axis of the Central Graben. On the edges of the the southeast. The complex of shallow marine environments was eventually
submarine basin, sand onlapped the sides of the basin and pinched out to the east drowned by Late Jurassic subsidence and the sands were buried by Upper Jurassic
as turbidites decellerated and deposited their sediment in response to the sea floor shales. Late Jurassic fault block rotation resulted in uplift of the basin margins and
incline. The Paleocene sand sequence at Fleming clearly shows this effect, thinning differential erosion of the Jurassic sequence below the Base Cretaceous
and pinching out onto the inferred basin margin slope to the east, and thickening into unconformity. As a result, erosion is likely to play a role in defining the thickness and
the basin to the west. Later sedimentation of the Andrew and Forties Formation extent of the Ula Sandstone reservoirs.
sequences, dominated by thick sands at fields such as
Forties and Nelson to the west, were confined to the axis REPRESENTATIVE WELL SECTION - 22/5a-10 (FLEMING)
of the basin, and a sequence of shale equivalents (the
Lista Formation) were deposited at the relative high

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
location of Fleming. 0 150 ROCK 1.95 2.95

AGE
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON
(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15

Marine shales

LISTA FM
Blanket of impermeable shales forming
caprock
22/5a-10

9150
Interbedded turbidite sands and marine
shales forming a relatively complex
geometry and moderate quality reservoir
sequence

MONTROSE GROUP
High density turbidite sandstone organised
into stacked sequences, with minor marine

PALEOCENE

MAUREEN FORMATION
9200
shales.

Geometry
Sheet geometry unit, thinning and pinching
out to the east, and thickening to the west.
Internal sandbody geometry may range
from sheetlike to lobate.

9250
and K
Good reservoir quality in thickly bedded
sands

Interbedded thin turbidite sandstones and


massive shales showing variable, but 9300
overall poor reservoir quality

REPRESENTATIVE WELL SECTION - 22/5a-1 (HAWKINS)


DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15

Marine shales
22/5a-1 Laterally extensive caprock
1
9950

Shallow marine sandstones probably


comprising a complex of shoreface and
nearshore facies
ULA SANDSTONE FORMATION
UPPER JURASSIC
HUMBER GROUP

10000

Geometry
Initially a blanket of shallow marine sand,
now affected by differential later erosion
particularly on structural highs

and K
Locally moderate and good reservoir
quality where sands are clean, but often
10050

poor quality where sands are argillaceous


10100

1. HEATHER FM.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Armada Complex
NNW SSE 10000

16/29-9 22/4-3 22/5a-1A 22/5-10 22/5b-4 22/5-11

1000
4
2

100
3 5

PERMEABILITY (md.)
0 Top Tor
Formation
10

1. Lista Formation
2. Maureen Formation
3. Ekofisk Formation
50 ft 4. Montrose Group
5. Chalk Group
1

The Fleming field reservoir sandstones can be interpreted as a series of relatively sheet
0.1
geometry sandstone units, separated by shales, which pinch out to the east. Detailed sand
body correlations are somewhat subjective given the thinness of the overall sequence and
the clearly defined sensitivity of sand thickness to sea-floor topographic effects. It cannot
Jurassic Sst.
therefore be discounted that the sands represent a series of overlapping lobeate geometry
Paleocene Sst.
units and that connectivity is much more tortuous. 0.01
The thinness of the sand sequence, and the height of the structure result in much of the 0 10 20 30 40
reservoir being full to base, and thus, it is only underlain by its aquifer in a narrow belt to the POROSITY (per cent.)
west.
In the Ula Sandstone, the thick shallow marine sand units tend to be of a more sheet
geometry nature. The thickness of the sand ensures that much of the structure is underlain In the Fleming reservoir porosity and permeability typically fall in
by the aquifer. Internal connectivity is expected to be very good. Of the two Jurassic the ranges 13-32 per cent. and 1-1000 md respectively. This is very
reservoirs, the sequence at Hawkins is more complex. Here, muddy poor reservoir quality similar to the Jurassic field characteristics, where values occur in the
sands separate the two principal reservoir sands. At Drake, this muddy unit does not occur, ranges 12-30 per cent. and 1-2000 md respectively in the Drake
the entire section being a single major sandstone sequence. field. Variation in porosity and permeability within each reservoir are
related to variation in textural characteristics and therefore facies
variations (grain size, sorting and mud content). The higher values
FLUID PROPERTIES occur in the cleaner, coarser grained and better sorted sands. The
lower values occur in the finer grained and muddy sandstones.
The reservoirs of the Armada field contain lean gas condensates with specific gravities Despite the significant difference in the age of the Fleming and
typically in the range 0.67 to 0.69 (air = 1). The results of four wells tested in the Paleocene Drake/Hawkins reservoir sediments, the overall range and
Fleming field indicate a condensate gas ratio in the range 30 to 75 stb/MMscf with a magnitude of porosity and permeability is similar. Porosity loss due
condensate gravity in the range 48 to 56 degrees API. From correlations, the gas expansion to cementation in the Jurassic sands has probably been partially
factor, Eg, for Fleming is approximately 215 scf/rcf at reservoir conditions (4110 psia, 256 offset by grain dissolution and secondary porosity generation. The
degrees F). Two well tests in the Drake field indicated a condensate gas ratio of development of overpressure in the reservoir has also helped to
approximately 50 stb/MMscf with a condensate gravity in the range 45 to 50 degrees API. offset the effects of porosity destruction due to deeper burial and
Correlations give a gas expansion factor of approximately 265 scf/rcf at reservoir conditions compaction. The Drake reservoir is of better quality than Hawkins
(6020 psia, 285 degrees F). For Hawkins various tests on Well 22/05a-1 indicate a due to the latter having a thicker sequence of muddy, and therefore,
condensate gas ratio between 45 and 50 stb/MMscf with a condensate gravity between 45 lower permeability sands.
and 50 degrees API. The gas expansion factor from correlations is 255 scf/rcf at reservoir
conditions (5560 psia, 260 degrees F).

400 1.2
GAS EXPANSION FACTOR (scf/rcf)

GAS DEVIATION FACTOR Z

300 1.1
RESERVOIR PRESSURE

200 z factor 1.0 Fleming field is normally pressured, whereas Drake and Hawkins
fields are overpressured by some 1000-1200 psi. relative to an
average hydrostatic gradient to surface of 0.45 psi/ft.
100 0.9

Eg
@ 270F
0 0.8 8300
0 2000 4000 6000
Fleming Paleocene Reservoir
PRESSURE (psig)
0.091 psi/ft

HWC @ 9191 ft TVDSS


9300
0.434 psi/ft Hawkins Jurassic
Reservoir
DEPTH (feet TVDSS)

CONTROLS ON RECOVERY 0.116 psi/ft

GWC @ 10137 ft TVDSS


Recovery from the Armada fields is expected to be moderately good, in the range 70 to 10300
80 per cent., obtained by pressure depletion. In the Paleocene, Fleming, reservoir the sands 0.477 psi/ft (inferred)

are distal, relatively thin and are interbedded with shales. Sand geometry is thought to be
sheetlike, but a different interpretation might indicate more complex, less continuous Drake Jurassic Reservoir 0.116 psi/ft
sandbody geometries. As a result we would expect the recovery to be poorer than in the
11300 GWC @ 11322 ft TVDSS
more sand rich oil fields to the west. Water influx from the well connected and large regional
0.477 psi/ft
aquifer is also a possibility but should not influence the recovery to any great extent.
Deviated wells should, however, allow good areal contact with the reservoir.
The Drake reservoir is a high net to gross sandstone with no interbedded shales. This
together with good productivity and high initial pressure should lead to good recovery. 12300
The Hawkins reservoir has characteristics similar to Drake, but has a much higher 3900 4400 4900 5400 5900 6400 6900
proportion of poor quality sand. Recovery is therefore expected to be lower than at Drake. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Armada Complex
UNITED KINGDOM
Water Depth 290
(feet)
Platform Type 4 legged, steel jacket with integrated deck
Function Production, accommodation wellhead

Accommodation N/K

Well slots 20
Wells planned 15-20 development wells

PROCESSING AND EXPORT SPECIFICATIONS


Photograph/Schematic Gas Throughput The Armada system will produce around 350 MMcf/day.
Not Available (MMscf/day) CATS has capacity of 1,600 MMcfd - although
must also export output from Everest Lomond and J-Block

Gas Export 1 x 20 pipeline to CATS, then


36 x 400km CATS pipeline to Teesside

Condensate Throughput 20,000


(b/d)

Condensate Export 1 x 10 pipeline to Everest then


14 pipeline via the Everest and Forties systems to
Cruden Bay, then onwards to Grangemouth for processing

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates

Pre Corporation Tax

Net Present Value


0.00%

1,703.91
5.00%

911.58
8.00%

624.49
10.00%

482.86
12.00%

370.66
15.00%

243.73
20.00%

106.88
y 50
PRODUCTION PERFORMANCE
PROJECTED

Liquid

Gas
300

yyyy
Net Present Value (Deflated) 1,184.01 614.57 407.84 305.74 224.82 133.34 35.13
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 2.58 1.70 1.31 1.09 0.90 0.65 0.33 250
40
Profit/Inv Ratio (Deflated) 1.86 1.18 0.87 0.70 0.55 0.36 0.11
NPV/Unit Oil Equiv. 6.85 6.08 5.48 5.04 4.57 3.80 2.40
NPV/Unit Oil Equiv. (Deflated) 6.27 5.23 4.50 3.97 3.42 2.54 0.95
200
Payback Year 2000
Nominal Rate Of Return % 27.57 30
Real Rate Of Return % 22.77
150
Post Corporation Tax

yyyy
Net Present Value 1,119.46 592.29 396.72 299.29 221.67 133.44 38.07 20
Net Present Value (Deflated) 773.62 385.82 242.86 171.87 115.47 51.67 -16.51
Profit/Inv Ratio 1.70 1.11 0.83 0.67 0.54 0.36 0.12 100
Profit/Inv Ratio (Deflated) 1.22 0.74 0.52 0.39 0.28 0.14 -0.05
NPV/Unit Oil Equiv. 4.50 3.95 3.48 3.12 2.73 2.08 0.85
NPV/Unit Oil Equiv. (Deflated) 4.09 3.29 2.68 2.23 1.76 0.98 -0.44 10
50
Nominal Rate Of Return % 23.13
Real Rate Of Return % 18.51

Earnings Data 0 0
Gross Revenue 3,915.88 2,271.23 1,692.17 1,407.02 1,179.81 918.91 626.22 1995 2000 2005 2010 2015 2020
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 584.46 319.29 227.77 183.57 148.99 110.28 68.81
Capital Expenditure 659.37 535.24 477.11 443.53 413.42 373.75 319.33
Operating Costs 1,552.60 824.40 590.57 480.63 395.74 301.44 200.01

Gross Revenue (Deflated) 2,881.87 1,732.33 1,314.29 1,104.75 935.62 738.55 512.89
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 410.39 228.75 164.97 133.87 109.35 81.67 51.64
Capital Expenditure (Deflated) 636.42 521.41 466.93 435.26 406.74 368.95 316.74
Operating Costs (Deflated) 1,061.44 596.35 439.53 363.75 304.06 236.25 161.02

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
ECONOMIC INDICATORS FROM 1/1/1996
1993 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1994 0.0 0.0 0.0 30.0 0.0 0.0 0.0 -30.0 -35.5 0.0 0.0 0.0
1995 0.0 0.0 0.0 160.0 0.0 0.0 0.0 -160.0 -171.2 0.0 0.0 0.0
Pre Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
0.0 0.0 0.0 190.0 0.0 0.0 0.0 -190.0 -206.8 0.0 0.0 0.0
Net Present Value 1,893.91 1,251.50 986.62 845.10 725.63 579.26 399.39
Net Present Value (Deflated) 1,380.43 914.34 720.52 616.27 527.75 418.53 282.81 1996 0.0 0.0 0.0 200.0 0.0 0.0 0.0 -200.0 -192.5 0.0 0.0 0.0
NPV/Unit Oil Equiv. 7.61 7.21 6.88 6.63 6.36 5.94 5.18 1997 71.5 0.0 22.9 156.0 0.0 0.0 0.0 -107.3 -92.0 4.1 75.0 0.0
1998 298.0 0.0 88.5 0.0 0.0 0.0 0.0 209.5 159.7 16.5 300.0 0.0
Post Corporation Tax 1999 305.1 0.0 91.2 0.0 0.0 0.0 0.0 213.9 145.2 15.0 300.0 0.0
2000 314.4 0.0 94.3 0.0 0.0 32.5 32.5 187.6 113.3 14.1 300.0 0.0
Net Present Value 1,309.46 881.88 699.70 600.78 516.32 411.53 280.49 2001 323.9 0.0 97.5 30.5 0.0 58.4 58.4 137.6 73.9 13.2 300.0 0.0
Net Present Value (Deflated) 970.04 649.53 512.70 438.09 374.12 294.32 193.58 2002 333.7 0.0 100.8 69.7 0.0 61.5 61.5 101.6 48.6 12.3 300.0 0.0
NPV/Unit Oil Equiv. 5.26 5.08 4.88 4.71 4.53 4.22 3.64 2003 343.7 0.0 104.2 13.2 0.0 61.2 61.2 165.1 70.3 11.4 300.0 0.0
2004 301.0 0.0 95.1 0.0 0.0 66.2 66.2 139.7 52.9 9.4 253.3 0.0
Earnings Data 2005 263.4 0.0 87.4 0.0 0.0 58.4 58.4 117.7 39.7 7.7 213.8 0.0
2006 230.5 0.0 80.8 0.0 0.0 50.9 50.9 98.8 29.7 6.3 180.5 0.0
Gross Revenue 3,915.88 2,629.23 2,131.64 1,872.74 1,657.55 1,397.55 1,082.10 2007 201.9 0.0 75.1 0.0 0.0 44.0 44.0 82.8 22.1 5.2 152.4 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 176.4 0.0 70.4 0.0 0.0 37.8 37.8 68.2 16.2 4.2 128.6 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 154.8 0.0 66.4 0.0 0.0 31.9 31.9 56.4 11.9 3.5 108.6 0.0
Corporation Tax 584.46 369.62 286.92 244.33 209.32 167.73 118.90 2010 135.2 0.0 63.2 0.0 0.0 26.9 26.9 45.1 8.5 2.8 91.7 0.0
Capital Expenditure 469.37 423.38 401.07 387.92 375.94 359.85 337.10 2011 118.4 0.0 59.7 0.0 0.0 22.1 22.1 36.6 6.1 2.3 77.4 0.0
Operating Costs 1,552.60 954.34 743.94 639.72 555.98 458.45 345.61 2012 103.7 0.0 56.5 0.0 0.0 18.1 18.1 29.1 4.3 1.9 65.3 0.0
2013 90.6 0.0 54.1 0.0 0.0 14.6 14.6 21.9 2.9 1.5 55.2 0.0
Gross Revenue (Deflated) 2,881.87 2,005.39 1,655.63 1,470.42 1,314.48 1,123.25 886.27 2014 79.8 0.0 52.0 0.0 0.0 11.3 11.3 16.4 1.9 1.3 46.6 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2015 70.0 0.0 50.3 0.0 0.0 8.6 8.6 11.1 1.2 1.1 39.3 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 410.39 264.80 207.82 178.18 153.63 124.21 89.23 2016 0.0 0.0 142.4 0.0 0.0 -19.9 -19.9 -122.5 -11.5 0.0 0.0 0.0
Capital Expenditure (Deflated) 440.00 400.70 381.43 370.00 359.54 345.40 325.22
Operating Costs (Deflated) 1,061.44 690.35 553.68 484.15 427.18 359.31 278.25 Total 3915.9 0.0 1552.6 469.4 0.0 584.5 584.5 1309.5 512.7 48.8 1200.0 0.0

These cash flows include Flemming, Drake and Hawkins fields


48/15b BG 49/11b Conoco SUMMARY
0 5 km
8
The Audrey field is located approximately 120 km east of
Theddlethorpe in the Southern North Sea in some 90 feet of water.
7 The field was discovered in 1976 by Well 49/11a-1 and has
subsequently been appraised by six wells which also showed that the
49/11a Phillips field extends into Block 48/15a.
ENSIGN 3 The first phase of Audrey development was based on a single
48/15a Conoco unmanned production platform tied into the Lincolnshire Offshore Gas
1 Gathering System (LOGGS) at the North Valiant field. Production began
6 in September 1988.
2
A second unmanned platform was installed in early 1990. The two
3 AUDREY platforms are joined by a 2.8 mile, 14" diameter gas export line and a 3"
4
1 diameter methonal import line. Maximum delivery capacity from the two
platforms is 450 MMscf/day.
6
ALEXANDRA A final redetermination of the Audrey field occurred in 1995. It has
9 been reported that, as from 1st October 1995 the partners in Block
GALLEON 2
48/15a would have an equity interest of 61.6% with the Block 49/11a
4 partners having the remaining 38.4%.
5 ALISON Current interests in the field in per cent. are:-

6 Phillips Petroleum Co. UK Ltd* 13.45


1
Agip (UK) Ltd 5.76
5 Fina Petroleum North Sea 16.44
5 British Gas plc 2.77
SWARTE
Conoco Ltd 30.78
E
PowerGen 30.78
3
2 3 FRIGATE operator *
48/20a Shell 49/16 Conoco

note: figures all rounded to two decimal places

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Audrey field is located in the central part of the Southern North
Sea Basin, just to the northeast of the Sole Pit axis of inversion.
Gas Gravity S.G. (air =1) 0.60 The Rotliegendes reservoir section is a mixed sequence of fluvial,
Condensate Gas Ratio (bbl/MMscf) 1.7 aeolian, sabkha and lacustrine sediments reflecting the proximity of the
Gas Expansion Factor (vol/vol) 228 field to the southern margin of the Silverpit Lake.
Reservoir Pressure Pi (psig) 4110 (approx.) Neighbouring accumulations include the Sole Pit fields (Galleon and
at Datum Depth of (ft TVDSS) 8850 Clipper), Alison, Alexandra, Viking and Ann. These are all Rotliegendes
Reservoir Temperature (F) 190 sandstone reservoirs.
Reservoir quality in this area is typically moderate. Poor permeability
Rock Properties sandstones are found to the southwest in the Sole Pit fields, nearer to
the Sole Pit axis of inversion. Accumulations immediately to the
Rock Type Sandstone southeast, Alexandra and Alison, have similar reservoir characteristics,
Stratigraphic Unit Rotliegendes Group but reservoir quality improves in the Viking fields to the south.
Geological Age Permian
Porosity Range (per cent.) 10-20
Permeability Range (md) 0.5-50
Connate Water Saturation (per cent.) 40 (approx.)
Water up to (ft TVDSS) 9025
Depth to Top of Structure (ft TVDSS) N/A

Reserves
Audrey Ann Alison
Total Gas Reserves (Bcf) 700 130 75
Est. Gas Production to 31.12.1995 (Bcf) 487 45 0
Remaining Gas Reserves (Bcf) 213 85 75 FIELD DESCRIPTION

Production The Audrey field is a complex anticlinal structure, dip closed on all
sides.
The central axis of the field is overlain by a massive "salt wall" of
Water Depth (feet) 90
Zechstein evaporites, adversely affecting seismic interpretation in this
Production Start Date September 1988
area. The reservoir lithology consists of moderate to poor quality lake
Peak Gas Production (yrly average) (MMscf/day) 235 in 1990
margin sabkha and aeolian sands of the Leman Sandstone Formation.
Peak NGL Production (yrly average) (stb/d) 400 in 1990
The sandstones are about 600 feet thick in Well 49/11a-1. Porosities
Platform(s) 2 x unmanned are typically moderate to good and permeabilities are moderate to poor.
steel jackets DSTs carried out in Well 49/11a-1 flowed at a maximum gas rate of 18.7
Number of Slots 18 MMscf/day.
Gas and NGL Export Gas sent to The field has been developed with two unmanned platforms
N. Valiant, then to Theddlethorpe controlled from the North Valiant facilities. First gas was produced from
via LOGGS the first development phase platform in September 1988 and from the
second phase platform in September 1990.
Ann, situated to the northeast of Audrey was discovered by Well
49/6a-1 in 1966 and has been developed with a subsea template,
controlled from Audrey. Production commenced in October 1993 from
two horizontal wells. Output has proved to be successful with estimated
recoverable reserves of 130 Bcf and gas exported via a riser platform to
the Loggs pipeline.
The Alison field discovered by Well 49/11a-4 in 1986, is estimated to
contain 75 Bcf of sales gas and has been developed jointly by Phillips
and Conoco via a single horizontal well through a subsea template tied
back to the pipeline between Ann and the Loggs riser platform.
Production commenced in October 1995 and is controlled by umbilical
from Audrey.
STRUCTURE AND STRATIGRAPHY

The Audrey field is a complex anticlinal structure with dip closure on all sides. The is encountered at approximately 8740 feet TVDSS in Well 49/11a-1 and water is

UNITED KINGDOM
central axis of the field is overlain by a massive salt wall of Zechstein Evaporites found up to 9025 feet TVDSS in this well. The reservoir is sealed by the overlying
which results in poor seismic data quality and difficulty in interpretation. evaporites of the Zechstein Group.

Audrey
Gas is contained in the Leman Sandstone Formation (Rotliegendes Group), which

SCHEMATIC WELL CORRELATION

AUDREY
49/11a-1 49/16-6

Feet NW SE
0
TERTIARY/QUATERNARY

Chalk Group
2000
JURASSIC

4000
TRIASSIC

6000
Top Bunter

8000 Zechstein Group


Rotliegendes Group
10000 CARBONIFEROUS

0 1 2 3 4 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

In the Audrey field area, the Leman Sandstone Formation represents continental, Four units can be recognised based on facies characteristics. The basal unit
fluvial, aeolian, inland sabkha and lacustrine sediments deposited in a hot semi-arid comprises predominantly fluvial sandstones and is overlain by a thick sequence of
desert setting within the Southern Permian Basin. The sediments comprise clean, aeolian dune sandstones. The third unit is a thick section of interbedded inland
cross-bedded and well sorted aeolian dune sandstones, horizontally laminated and sabkha/lake margin, fluvial and minor aeolian sandstones. This unit also contains
adhesion rippled interdune and lake margin sabkha argillaceous sandstones and thin thin fluvial and possibly lacustrine mudstones and siltstones. The Weissliegend
cross-bedded to thick, structureless locally argillaceous fluvial sandstones. The section of probable reworked Rotliegendes sandstones forms a thin unit at the top of
argillaceous sabkha sandstones locally grade into argillaceous siltstone and the reservoir.
mudstone of lacustrine facies.

REPRESENTATIVE WELL SECTION - 49/11a-1

CORE

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) ROCK ( g/cc )
DESCRIPTION 1.95 2.95
CLAY

AGE
0 150
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON
VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


GRP.
KUPF.

Marine evaporitic mudstones overlying


ZECH.

FM

sapropelic marine mudstone. Laterally


extensive, non reservoir interval.
Probable reworked Rotliegendes sandstones
(Weissliegend)
Inland sabkha/lake margin, sheetflood and
minor aeolian dune sandstones with fluvial
and possible lacustrine mudstones.

Geometry
Stacked sheet geometry fluvial and aeolian
8900

sandbodies with thin, possibly laterally


49/11a-1 extensive mudstones (on field scale)

and K
moderate, locally poor, rarely good. K
poor to very poor, locally moderate.
LEMAN SANDSTONE FORMATION

Mudstones may form vertical K baffles or


barriers.
ROTLIEGENDES GROUP

Inland sabkha/lake margin siltstones and


PERMIAN

mudstones with lake margin, argillaceous


M sandstones and sheetflood sandstones.
9000

Geometry
Sheet geometry sandbodies interbedded
with sheetlike mudstones and siltstones.

and K
generally poor, locally moderate. K very
poor, unit may form vertical K baffle or
barrier.

Inland sabkha/lake margin deposits. Sheetflood


9100

sandstones with minor fluvial and possibly


lacustrine mudstones.

Geometry
Stacked sheet geometry sandbodies with
thin, possibly laterally extensive mudstones.

and K
moderate to poor. K poor to very poor,
locally moderate. Mudstones may form
vertical K baffles or barriers.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000
AUDREY FIELD VIKING FIELDS

Audrey
Zechstein Group
Probable reworked Rotlie
gendes (Weissliegend)
1000
Dominantly inla
nd sabkha/lake

Leman Sandstone Formation


margin and fluv
ial sandstone
s

Rotliegendes Group
Fluvial and aeolian
sandstones 100

Dominantly aeolian dune sandstones

PERMEABILITY (md.)
Dominantly fluvial sandstones
10
CARBONIFEROUS 0

49/11a-1 100 49/16-6

200 feet
1

The Leman Sandstone Formation can be subdivided into four units based on
sedimentary facies and this forms the basis of the reservoir layering.
These four units consist of a basal fluvial unit, a middle aeolian section and an upper 0.1
sabkha and fluvial dominated unit containing minor aeolian sandstones. These are capped
by the marine reworked Weissliegend. These are likely to have sheetlike geometries
extending across the Audrey field area. As the third of these units is generally more
argillaceous, containing thin mudstones, it is likely to have poorer reservoir quality and may
restrict vertical flow. 0.01
Rotliegendes sandstones of these layers have an overall sheetlike geometry, but with a 0 10 20 30

complex internal architecture resulting from the interstratification and stacking of laterally POROSITY (per cent.)
extensive aeolian, sabkha and sheetflood sandstones and more laterally restricted, minor
fluvial channel sandstones.
Thin mudstones and siltstones within the upper unit (below the Weissliegend) are likely Porosity values are generally moderate to good, typically 10 to 20
to be laterally impersistent, but contribute to the overall poorer reservoir quality of the unit. per cent. and permeability values are typically very poor to
The Leman Sandstone Formation is 667 feet thick in Audrey field Well 49/11a-1 and moderate; 0.5 to 50 md. Trends in porosity and permeability values
shows an overall westward thickening, and eastward thinning towards the Viking field. are controlled by the primary textural characteristics of grain size,
sorting and detrital clay content, and hence by facies distribution.
The inland sabkha/lake margin facies sediments therefore display
the poorest reservoir quality. The best porosity and permeability
values occur in the cleaner aeolian and fluvial sandstones. The
development of diagenetic cements locally reduces porosity and
permeability, particularly in the more argillaceous facies.

FLUID PROPERTIES RESERVOIR PRESSURE

The Audrey field contains a high calorific value dry gas consisting of approximately 93 Based on a hydrostatic pressure gradient to surface of 0.46 psi/ft
per cent. methane, two per cent. non hydrocarbons and no hydrogen sulphide. A the Audrey field is normally pressured. However, because the
condensate gas ratio of approximately 1.7 bbl/MMscf was measured during testing. formation water in this field is salt saturated, the local water pressure
The recombined wellstream composition from DST 3 on Well 49/11a-1 is listed below. gradient is somewhat higher at 0.51 psi/ft. Water is seen up to an
approximate depth of 9025 feet in Well 49/11a-1 and from the DST
results, the reservoir pressure is approximately 4110 psig at 8850
COMPOSITION 1.05 feet TVDSS.
(mol. %) 49/11a-1

CO2 0.19
GAS DEVIATION FACTOR Z

8800
N2 2.22
H2S - 1.00
C1 92.81 Zi = 0.98
C2 3.29
8850
C3 0.75
C4 0.32
C5 0.12
C6 0.06 0.95
8900
DEPTH (feet TVDSS)

C7+ 0.24
S.G. (AIR=1.0) 0.60 0.075 psi/ft
C.V. (Btu/scf) 1040
8950
@ 190F (from 49/11a-1)
0.90
0 1000 2000 3000 4000
5000
PRESSURE (psig) 9000

Water up to 9025 feet TVDSS

9050

9100
4100 4150
4200
CONTROLS ON RECOVERY INITIAL RESERVOIR PRESSURE (psig)

The recovery factor is expected to be moderate to good (approximately 85 per cent.),


resulting from:

moderate to good individual well flow rates


drainage of low permeability sandstones by interbedded higher permeability sandstones
the installation of compression

Excess water and sand production problems have occurred in some wells; the operator is
installing facilities to cope with these production problems.
FACILITIES SPECIFICATIONS

AUDREY A AUDREY 2

UNITED KINGDOM
Water Depth 87 75

Audrey
(feet)
Platform Type four leg steel jackets and sub-sea templates

Jacket Weight 899 740


(tonnes)
Topside Weight 887 800
(tonnes)

Accommodation -------- Emergency only -------

Well Slots 12 + 1 subsea 6


Wells 9 + 1 subsea 6

PROCESSING AND EXPORT SPECIFICATIONS

Peak Gas Capacity 450


(MMscf/day)

Gas Export 14" x 5 km pipeline from Audrey 2 to Audrey 1


20" x 17 km pipeline from Audrey 1 to North Valiant
36" x 120 km LOGGS line from North Valiant to
Theddlethorpe.
8" x 500m flowline from sub-sea well to Audrey 1

Note: The Audrey facilities include a sub-sea well located approximately 500

y
metres from the Audrey 1 platform. This well was necessary to guar-
antee ability to meet contractual demands following drilling delays.

(Reproduced by permission of Phillips Petroleum)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 2.0 250


Liquid
Net Present Value 436.77 278.08 214.90 181.82 154.31 121.23 81.74
Net Present Value (Deflated) 448.39 285.46 220.03 185.56 156.76 121.92 79.97 Gas

yyyy
Average Annual Daily Liquid Rate (Mbbl/day)

Profit/Inv Ratio 3.08 2.30 1.94 1.74 1.55 1.32 1.00

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 2.27 1.68 1.41 1.25 1.11 0.93 0.68 200
NPV/Unit Oil Equiv. 3.71 3.48 3.31 3.19 3.06 2.87 2.53
1.5
NPV/Unit Oil Equiv. (Deflated) 3.47 3.16 2.95 2.81 2.66 2.44 2.06

Payback Year 1990


Nominal Rate Of Return % 53.20 150
Real Rate Of Return % 44.98

Post Corporation Tax 1.0

yyyy
Net Present Value 291.14 185.07 142.33 119.80 101.00 78.28 50.99
100
Net Present Value (Deflated) 297.90 187.64 142.92 119.24 99.39 75.28 46.14
Profit/Inv Ratio 2.05 1.53 1.29 1.14 1.02 0.85 0.62
Profit/Inv Ratio (Deflated) 1.51 1.10 0.91 0.80 0.70 0.57 0.39
NPV/Unit Oil Equiv. 2.47 2.31 2.19 2.10 2.00 1.85 1.58 0.5
NPV/Unit Oil Equiv. (Deflated) 2.30 2.08 1.92 1.80 1.69 1.51 1.19
50
Nominal Rate Of Return % 44.37
Real Rate Of Return % 36.74

Earnings Data
0 0
Gross Revenue 1,258.22 825.81 659.10 572.61 500.91 414.65 310.87 1985 1990 1995 2000 2005 2010
Royalty 0.99 0.88 0.82 0.78 0.75 0.70 0.63
Petroleum Revenue Tax 260.24 170.21 133.95 114.87 98.98 79.82 56.91 Year
Corporation Tax 145.63 93.01 72.58 62.02 53.31 42.95 30.74
Capital Expenditure 141.90 120.87 110.71 104.74 99.31 92.03 81.79
Operating Costs 418.32 255.77 198.72 170.39 147.57 120.88 89.81

Gross Revenue (Deflated) 1,339.54 908.12 736.94 646.70 571.04 478.79 365.69
Royalty (Deflated) 1.47 1.30 1.21 1.16 1.11 1.04 0.93
Petroleum Revenue Tax (Deflated) 271.50 178.95 141.56 121.82 105.31 85.33 61.28
Corporation Tax (Deflated) 150.49 97.81 77.11 66.32 57.38 46.64 33.83
Capital Expenditure (Deflated) 197.37 169.99 156.59 148.64 141.37 131.57 117.67
Operating Costs (Deflated) 420.81 272.42 217.55 189.52 166.48 138.92 105.85

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
ECONOMIC INDICATORS FROM 1/1/1996 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1986 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -16.3 0.0 0.0 0.0
1987 0.0 0.0 0.0 40.0 0.0 0.0 0.0 -40.0 -116.8 0.0 0.0 0.0
Pre Corporation Tax 1988 31.4 1.0 10.4 30.0 0.0 0.0 1.0 -10.0 -26.4 0.1 61.0 0.0
1989 78.7 0.0 27.6 26.3 0.0 0.0 0.0 24.8 56.9 0.3 178.1 0.0
Net Present Value 173.91 155.98 146.35 140.41 134.86 127.19 116.04 1990 123.8 0.0 33.7 16.6 0.0 8.7 8.7 64.9 127.6 0.4 233.5 0.0
Net Present Value (Deflated) 162.49 145.51 136.60 131.16 126.10 119.14 109.04 1991 130.8 0.0 35.5 11.0 31.8 24.7 56.5 27.7 46.1 0.3 202.9 0.0
NPV/Unit Oil Equiv. 4.87 5.12 5.22 5.28 5.33 5.38 5.44 1992 119.1 0.0 29.8 0.0 42.4 13.3 55.7 33.6 48.9 0.3 189.0 0.0
1993 119.8 0.0 29.5 5.0 55.3 9.4 64.6 20.7 26.8 0.3 188.0 2.5
Post Corporation Tax 1994 95.6 0.0 27.2 0.0 21.5 12.3 33.8 34.7 41.0 0.2 139.0 7.8
1995 97.3 0.0 26.0 3.0 25.2 11.7 37.0 31.4 33.6 0.2 144.0 10.0
Net Present Value 108.41 98.27 92.67 89.17 85.87 81.27 74.52 Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value (Deflated) 102.19 92.31 87.02 83.76 80.70 76.48 70.31 796.6 1.0 219.7 136.9 176.1 80.1 257.2 182.7 221.5 0.8 487.5 7.4
NPV/Unit Oil Equiv. 3.03 3.22 3.31 3.35 3.39 3.44 3.50
1996 92.6 0.0 24.3 5.0 22.9 13.0 36.0 27.4 26.3 0.2 132.0 8.3
Earnings Data 1997 76.0 0.0 20.9 0.0 18.7 13.1 31.9 23.2 19.9 0.2 103.7 7.5
1998 61.9 0.0 18.3 0.0 12.9 10.7 23.7 20.0 15.2 0.1 81.5 6.0
Gross Revenue 461.66 387.75 353.65 334.12 316.70 293.88 262.80 1999 50.7 0.0 16.2 0.0 7.7 9.4 17.1 17.4 11.8 0.1 64.1 4.7
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 41.5 0.0 14.5 0.0 3.4 8.3 11.7 15.3 9.2 0.1 50.3 3.8
Petroleum Revenue Tax 84.13 76.03 71.48 68.64 65.97 62.28 56.91 2001 34.0 0.0 13.2 0.0 10.4 6.9 17.2 3.6 2.0 0.1 39.6 3.0
Corporation Tax 65.50 57.71 53.68 51.24 48.99 45.92 41.52 2002 27.8 0.0 12.0 0.0 8.1 3.0 11.2 4.6 2.2 0.1 31.1 2.3
Capital Expenditure 5.00 4.88 4.81 4.77 4.72 4.66 4.56 2003 22.4 0.0 11.1 0.0 5.8 2.3 8.2 3.2 1.4 0.0 24.4 1.8
Operating Costs 198.62 150.86 131.02 120.30 111.15 99.75 85.29 2004 18.4 0.0 10.0 0.0 4.2 1.7 5.9 2.4 0.9 0.0 19.2 1.5
2005 14.6 0.0 9.3 0.0 2.9 1.2 4.2 1.2 0.4 0.0 15.1 0.0
Gross Revenue (Deflated) 408.23 348.19 320.11 303.89 289.34 270.13 243.70 2006 12.0 0.0 8.6 0.0 1.9 0.7 2.6 0.8 0.2 0.0 11.9 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2007 9.7 0.0 8.2 0.0 0.9 0.4 1.4 0.2 0.0 0.0 9.3 0.0
Petroleum Revenue Tax (Deflated) 79.12 71.11 66.83 64.21 61.77 58.42 53.58 Remain
Corporation Tax (Deflated) 60.30 53.21 49.59 47.40 45.39 42.65 38.73 2008 0.0 0.0 32.0 0.0 -15.9 -5.4 -21.2 -10.8 -2.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 5.00 4.88 4.81 4.77 4.72 4.66 4.56
Operating Costs (Deflated) 161.62 126.69 111.86 103.75 96.75 87.92 76.50 Total 461.7 0.0 198.6 5.0 84.1 65.5 149.6 108.4 87.0 0.3 212.5 14.2

These cash flows include Audrey field only, plus Ann tariff income
30/11b Amoco 30/12b Amoco SUMMARY
6 2
4 The Auk field is located in Quadrant 30 some 270 km east southeast
HALLEY of Aberdeen in the UK Sector of the North Sea. Auk was discovered in
3 1971 by Well 30/16-1 which encountered oil in Permian dolomites of the
Zechstein Group. Subsequent wells encountered oil in underlying
30/16 Shell A 30/17b BP Rotliegendes sandstones.
AD Development of the field began in 1974 and involves one steel
FULMAR 6
7
LEVEN platform. First oil was produced in December 1975 and peak oil
9 production was achieved in 1977. Oil is piped to St. Fergus via the
7 Fulmar oil field. The field is now at a mature phase of production.
5 8 6
2 CLYDE
The current interests in the Auk field in per cent. are:-
5
12 13
3
RD/Shell UK Ltd * 50.00
4
MEDWIN Esso Exploration & Production Ltd 50.00

4 operator *
1 3 AUK
A 1
2 9 10

11 8 JANICE
AUK SE
10

30/17a Phillips
30/21 Shell 30/22b Mobil
0 5 km

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Auk field is located on a fault-bounded terrace on the western
margin of the southwest Central Graben. The nearest fields are Fulmar
Oil Gravity (API) 38 and Clyde, approximately 10 km to the northeast, both of which produce
Gas/Oil Ratio (scf/stb) 155 oil from Jurassic sandstones. The nearest field that produced from a
Zechstein horizon was the Argyll field some 50 km to the southeast. The
Bubble Point Pressure, Pb (psig) 800
Josephine and J-Block discoveries, 25 km to the northeast, contain
Formation Volume Factor at Pi (rb/stb) 1.1
hydrocarbons in a series of formations ranging from the Paleocene to
Oil Compressibility (vol/vol/psi) 8.0 x 10-6
the Triassic. In the Norwegian sector, some 60 km to the east, lie a
Original Reservoir Pressure, Pi (psig) 4067
number of chalk reservoirs including Ekofisk and Valhall.
At Datum Depth of (ft TVDSS) 7600
Reservoir Temperature (F) 200

Rock Properties

Rock Type Carbonate Sandstone


Stratigraphic Unit Zechstein Group Rotliegendes Group
Geological Age Permian
Porosity Range (per cent.) 12-16 15-25
Permeability Range (md) 5000-20000 1-10
Connate Water Saturation (per cent.) 20-50
Oil Water Contact (ft TVDSS) 7750 7750
Depth to Top of Structure (ft TVDSS) 7500

Reserves

Total Oil Reserves (MMstb) 120


Est. Oil Production to 31.12.95 (MMstb) 103
Remaining Oil Reserves (MMstb) 17

Production FIELD DESCRIPTION

Water depth (feet) --------------------------- 274-282 ------------------------ The Auk field is a horst structure. The reservoir formations are
Production Start Date ---------------------------- Dec-75 -------------------------- Zechstein dolomites (Argyll Formation) and Rotliegendes sandstones
Peak Production (Oil and NGL) (stb/day) ----------------------------- 47000 ------------------------- (Auk Formation). Average thickness in the Zechstein is some 30 feet
Platform(s) ----------------------- 1 steel jacket--------------------- with the majority of the oil being contained in vugular porosity. Reservoir
Number of Wells - Producers -------------------------------- 12 -----------------------------
permeability is from fractures and solution channels as matrix
Water Injectors permeability is very poor. The Rotliegendes is oil bearing over part of
Gas Injectors the field and tested oil at rates of up to 5000 stb/day.
The reservoir fluid is a low viscosity, undersaturated 38 degree API
Oil and NGL Export -------------------- Pipeline to Fulmar ---------------
oil with a gas oil ratio of 155 scf/stb. A strong water drive provides the
Gas Export ------------------------------ Flared -------------------------
main production mechanism with the majority of the reserves lying in the
Zechstein reservoir.
Production began in December 1975 and approximately 87 per cent.
of the reserves have so far been produced.
The field's production has been boosted by artificial lift pumps
installed in two or three wells. Following Annex B approval for a gas lift
programme in 1991, a gas treatment and compression facility was
installed in 1992.
The Auk southeast accumulation, tested by Wells 30/16-8 to -12, is
small and there are currently no plans to develop it.
30/16 STRATIGRAPHY AND STRUCTURE
0 8000 AUK
820
TOP ROTLIEGENDES The Auk field is situated on the upthrown side of the Tarty fault, on the

UNITED KINGDOM
0
DEPTH STRUCTURE western margin of the Central Graben. The Auk field structure is a horst with
800 0 2 km
7800 Permian reservoir rocks in a structurally high position relative to Upper
OWC 7704
(Contours in feet TVDSS) Jurassic source rocks. The field produces oil from Upper Permian Zechstein
12
00 carbonates at 7500 feet TVDSS with the OWC at 7750 feet TVDSS. Oil has

Auk
78

SOGRA
7600 also been discovered in Lower Permian, Rotliegendes sandstones, which

UT BE
7600
were the original target.

FA

H- N B ONE
4

WE O
UL
00
6 In Block 30/16, the western margin of the Central Graben is expressed as

78

ST UN
60
7 ? a series of eastwards-hading en-echelon faults which displace Cretaceous

CE DAR
OWC

Z
and older rocks. Younger rocks show rapid eastwards thickening, while

NT Y
RA
Zechstein salt and Triassic sandstone exhibit thinning trends. Despite the

L
00
westwards uplift of the younger potential cap rock, trap forming conditions

7600
82 1 arise as a result of offsetting at the major boundary faults. In the area where
3 two offset faults overlap, there is a tendency for a minor 'back basin' to be

80
00
84
00 PLATFORM formed, closed to the south and open down-plunge towards the graben. In

0
800
this area, west-hading secondary faults have formed and have been
important in trapping westward migrating oil.

00
00

740
80
86
9

0
00
88

OWC 7750
2
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

7600
82
00

7600
84

The lowermost parts of the Zechstein carbonates, overlying the


00

?
Kupferschiefer, are rich in detrital material, but this decreases rapidly
86 ?
00 8 upwards. The carbonates display a peloidal-oncolitic fabric with stromatolitic
8400
lamination, together with anhydrite crystal moulds. This suggests deposition
11
in an evaporitic, hypersaline intertidal to supratidal sabkha environment. A

7750
0 880
900 0

00
mudstone layer locally separates the lower Zechstein dolomite from the

76

0
OWC
780
10A upper Zechstein dolomites which are highly brecciated. This mudstone may
0

represent the insoluble residue remaining after dissolution of an intervening


880
92

00 evaporitic sequence followed by the collapse-brecciation of the overlying


00

78
upper Zechstein dolomites.
00
The underlying Rotliegendes sandstones were deposited by migrating
80 aeolian dune and dune base sandstones.
(From Trewin, NH and Bromwell G, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION

Feet 30/16-11 30/16-9 30/17a-4


SW NE
5000

6000 TERTIARY

7000
Chalk Group
Valhall Formation
8000 Auk Formation

9000
Old Red Sandstone Kimm. Clay Fm.
10000 Fulmar Formation

TRIASSIC
11000

Zechstein Group
12000

13000

0 1 2 km

REPRESENTATIVE WELL SECTION - 30/16-2

CORE
7550 DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 1.95 2.95
CLAY

AGE

0 150
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT
VC

VF

(PERCENT) (md) (Inches)


M
C

B C P 40 0 0.1 10000 5 25
ZECHSTEIN GP.
U. PERMIAN

30/16-2 Marine carbonates and mudstones overlying


ARGYLL FM.

a thin transgressive mudstone. Laterally


extensive non-reservoir interval.

Aeolian dune and dune base sandstones.


7600

M
KUPF.

Geometry
Laterally extensive sheet geometry
UPPER ROTLIEGENDES GROUP

M
sandbody.

Py and K
Py
and K generally moderate to good,
LOWER PERMIAN

7650
AUK FORMATION

Si reduced due to diagenetic cements and


compaction.
Py
Si
M
Py
7700

Si
M

Si
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
30/16-12
10000
1 4

Valhall Formation 30/16-9

Smith Bank Gp.


Triassic Gp.
Auk 30/16-3
1000

2 5

Auk Fm.
3

100

PERMEABILITY (md.)
0
Smith Bank Formation
10
30/16-11
Kupferschiefer
100 Formation
30/16-10

1 4
200 feet 1
2 5

0.1

Rotliegendes Gp.

Auk Fm.
1. Chalk Group
2. Zechstein Group
3. Rotliegendes Group
4. Hod Formation
0.01
5. Argyll Formation
0 10 20 30
6. Kupferschiefer Formation
POROSITY (per cent.)

Porosity values in the dolomite are generally moderate, typically


12 to 16 per cent. Matrix permeability is poor though fracture
permeability values are excellent, typically 5000 to 20000 md.
No stratigraphic subdivisions are recognised within the Zechstein carbonate sequence. Porosity within the Lower Dolomite consists principally of vuggy
Layering is therefore carried out on the basis of lithological correlations. Within some wells and fenestral porosity, together with some intercrystalline porosity.
the dolomites are separated by a thin (4 feet) mudstone horizon. The Lower Dolomite layer As a result of collapse brecciation the Upper Dolomite layer is also
corresponds to intertidal to supratidal sabkha deposits. likely to be highly fractured. As a result conventional core analysis
The dolomite layers have an overall sheet-like geometry, but truncation and thinning results are unlikely to be representative of the macro-scale formation
have occurred locally as a result of erosion. The intervening mudstone layer appears to be properties.
variable in thickness and may locally restrict vertical flow. The Zechstein sequence reaches Porosity values in the Rotliegendes are generally moderate to
a maximum thickness of 132 feet within Well 30/16-1, whilst locally being absent in Wells good, typically 15 per cent. to 25 per cent. Permeability values are
30/16-4, -5 and -9. The Rotliegendes sandstones form a thick, laterally extensive sheet typically poor to moderate (1 to 10 md).
geometry sandbody.

FLUID PROPERTIES

The Auk reservoir fluid properties appear to be consistent in the Zechstein and
Rotliegendes reservoirs. The oil has a low GOR and is moderately light with an oil gravity
of 38 degrees API.
RESERVOIR PRESSURE
200 1.16 1.3

The Auk reservoirs appear to have a single pressure regime with


1.14 GOR a common oil water contact in the Zechstein and Rotliegendes
150 B0 (from correlation) 1.2 reservoirs. The reservoir is overpressured by about 550 psi.
GOR (scf/stb)

1.12
B0 (rb/stb)

0 (cp)

100 0 1.1
7500
1.10

50 1.0
1.08

7600
@ 200 F
0 1.06 0.9
0 1000 2000 3000 4000 5000
DEPTH (feetTVDSS)

PRESSURE (psig) 0.39 psi/ft

7700

CONTROLS ON RECOVERY
OWC @ 7750 ft TVDSS

Recovery in the Auk field is mainly from the Lower Zechstein, with minor recovery from
0.46 psi/ft
the Rotliegendes sands. No recovery is expected from the Upper Zechstein interval. 7800

The field is now in a mature phase of production. The principal factors affecting recovery
are:
7900
the good secondary porosity and high permeability (2 to 10 Darcies) of the Lower 4060 4080 4100 4120 4140 4160
Zechstein leads to high productivity from that interval. This has been largely destroyed
INITIAL RESERVOIR PRESSURE (psig)
by clay infill in the Upper Zechstein. Permeability in the Rotliegendes interval, between
1 and 10 md, is too low for sustained direct production, although production is believed
to occur via the partially depleted Lower Zechstein interval
the strong natural aquifer drive from the underlying Rotliegendes provides efficient
reservoir pressure support
pressure continuity within the reservoir ensures that oil is efficiently swept by the
encroaching aquifer
artificial lift and a recent infill drilling programme have maintained oil production levels
and extended the field life.
FACILITIES SPECIFICATIONS

Water Depth 274-282

UNITED KINGDOM
(feet)
Platform Type steel jacket
Function drilling/production/

Auk
accommodation

Jacket Weight 3414


(tonnes)
Total Weight 14339
(tonnes)

Accommodation 74

Well Slots 12
Wells 12

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 80000


(bbl/day)

Oil Export 8" x 12 km pipeline to Fulmar's


offshore loading system
Gas Export Currently flared (gas lift programme
being installed)

(Reproduced by permission of Shell U.K. Ltd))

FULL FIELD ECONOMIC INDICATORS PRODUCTION PERFORMANCE


HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00%
20.00%
50
Pre Corporation Tax

Net Present Value 506.29 307.48 232.59 194.68 163.92 127.90 86.40

Average Annual Daily Liquid Rate (Mbbl/day)


Net Present Value (Deflated) 1,137.98 709.85 542.83 456.06 384.22 298.12 195.68
Profit/Inv Ratio 1.85 1.84 1.78 1.73 1.67 1.57 1.39 40
Profit/Inv Ratio (Deflated) 1.54 1.36 1.23 1.15 1.07 0.95 0.76
NPV/Unit Oil Equiv. 4.22 4.67 4.74 4.73 4.69 4.58 4.31
NPV/Unit Oil Equiv. (Deflated) 4.28 4.17 4.00 3.87 3.72 3.47 3.03

Payback Year 1977 30


Nominal Rate Of Return % 68.68
Real Rate Of Return % 47.19

Post Corporation Tax


20
Net Present Value 246.02 158.27 122.14 103.28 87.68 69.06 47.01
Net Present Value (Deflated) 593.81 377.13 288.68 241.78 202.41 154.50 96.27
Profit/Inv Ratio 0.90 0.95 0.94 0.92 0.90 0.85 0.76
Profit/Inv Ratio (Deflated) 0.80 0.72 0.66 0.61 0.56 0.49 0.37
NPV/Unit Oil Equiv. 2.05 2.40 2.49 2.51 2.51 2.47 2.35 10
NPV/Unit Oil Equiv. (Deflated) 2.23 2.21 2.13 2.05 1.96 1.80 1.49

Nominal Rate Of Return % 58.13


Real Rate Of Return % 37.80

Earnings Data 0
1975 1980 1985 1990 1995 2000 2005
Gross Revenue 1,455.08 778.11 567.21 468.35 391.74 305.84 211.41
Royalty 111.94 64.50 48.18 40.21 33.88 26.62 18.45 Year
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 260.27 149.21 110.46 91.41 76.24 58.84 39.39
Capital Expenditure 273.00 166.98 130.31 112.29 97.89 81.21 62.05
Operating Costs 563.86 239.15 156.13 121.17 96.05 70.11 44.52

Gross Revenue (Deflated) 2,980.40 1,826.96 1,419.48 1,215.30 1,049.49 853.83 623.55
Royalty (Deflated) 246.86 155.70 121.70 104.32 90.06 73.09 52.98
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 CASH FLOW REPORT
Corporation Tax (Deflated) 544.17 332.72 254.15 214.28 181.81 143.62 99.40
Capital Expenditure (Deflated) 739.80 523.48 440.03 396.32 359.69 314.82 258.97 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Operating Costs (Deflated) 855.76 437.93 314.92 258.59 215.52 167.80 115.92 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1972 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -209.0 0.0 0.0 0.0
1973 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -181.1 0.0 0.0 0.0
1974 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -305.9 0.0 0.0 0.0
1975 0.0 0.0 0.0 20.0 0.0 0.0 0.0 -20.0 -523.7 0.0 0.0 0.0
1976 62.3 2.8 10.0 15.0 0.0 0.0 2.8 34.5 673.1 24.0 0.0 0.0
1977 155.7 12.0 15.0 18.0 0.0 0.0 12.0 110.7 1,715.8 47.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1978 66.3 11.7 17.0 15.0 0.0 48.2 59.9 -25.6 -316.3 25.0 0.0 0.0
1979 64.2 5.7 18.0 15.0 0.0 14.7 20.5 10.7 113.5 18.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1980 77.0 6.2 20.0 15.0 0.0 13.4 19.5 22.4 193.5 14.0 0.0 0.0
1981 94.2 7.8 20.0 15.0 0.0 18.3 26.1 33.1 224.3 14.0 0.0 0.0
Pre Corporation Tax 1982 97.2 9.0 20.0 15.0 0.0 26.2 35.2 27.0 151.6 14.0 0.0 0.0
1983 94.7 8.9 20.0 10.0 0.0 27.6 36.5 28.1 134.6 13.0 0.0 0.0
Net Present Value 2.05 13.14 17.68 20.05 22.00 24.28 26.76 1984 100.3 9.3 20.0 5.0 0.0 28.2 37.5 37.8 160.0 12.0 0.0 0.0
Net Present Value (Deflated) 11.61 19.59 22.76 24.39 25.69 27.16 28.64 1985 77.6 8.5 20.0 5.0 0.0 30.7 39.2 13.3 49.8 10.0 0.0 0.0
NPV/Unit Oil Equiv. 0.12 0.90 1.29 1.53 1.75 2.05 2.48 1986 36.1 4.7 18.5 20.0 0.0 19.5 24.2 -26.6 -86.7 10.0 0.0 0.0
1987 41.1 2.3 18.8 40.0 0.0 3.1 5.4 -23.1 -67.3 10.0 0.0 0.0
Post Corporation Tax 1988 31.0 1.7 18.7 5.0 0.0 2.1 3.8 3.5 9.3 10.0 0.0 0.0
1989 24.3 0.9 17.4 5.0 0.0 -0.2 0.7 1.3 2.9 6.0 0.0 0.0
Net Present Value -14.74 -2.49 2.71 5.50 7.85 10.70 14.06 1990 43.4 1.8 18.7 0.0 0.0 -1.3 0.5 24.2 47.6 9.0 0.0 0.0
Net Present Value (Deflated) -4.55 4.58 8.40 10.43 12.13 14.15 16.47 1991 37.6 2.7 18.9 0.0 0.0 4.8 7.6 11.1 18.5 9.0 0.0 0.0
NPV/Unit Oil Equiv. -0.89 -0.17 0.20 0.42 0.62 0.90 1.30 1992 27.9 1.9 18.2 5.0 0.0 3.5 5.4 -0.7 -1.1 7.0 0.0 0.0
1993 33.1 1.6 18.8 25.0 0.0 0.9 2.5 -13.2 -17.2 8.0 0.0 0.0
Earnings Data 1994 41.5 2.2 20.5 5.0 0.0 0.7 2.9 13.0 15.4 11.0 0.0 0.0
1995 46.3 3.1 21.0 0.0 0.0 3.0 6.2 19.1 20.4 12.0 0.0 0.0
Gross Revenue 203.44 178.69 166.30 158.88 152.05 142.79 129.54 Total To Start Of Discounting ( 1/JAN/1996)
Royalty 7.03 7.54 7.68 7.71 7.71 7.67 7.52 1,251.6 104.9 369.5 273.0 0.0 243.5 348.4 260.8 1,822.2 103.3 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 16.78 15.63 14.97 14.55 14.15 13.58 12.70 1996 41.6 3.5 20.0 0.0 0.0 4.9 8.4 13.3 12.8 10.4 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 39.2 3.1 19.8 0.0 0.0 4.4 7.5 11.9 10.2 9.1 0.0 0.0
Operating Costs 194.36 158.01 140.95 131.12 122.34 110.84 95.26 1998 35.3 2.8 19.8 0.0 0.0 4.1 7.0 8.6 6.6 7.9 0.0 0.0
1999 32.1 2.4 19.6 0.0 0.0 3.3 5.7 6.8 4.6 6.9 0.0 0.0
Gross Revenue (Deflated) 186.73 164.90 153.94 147.36 141.29 133.04 121.21 2000 29.0 2.1 19.7 0.0 0.0 2.7 4.7 4.6 2.8 6.0 0.0 0.0
Royalty (Deflated) 7.63 7.86 7.87 7.84 7.79 7.69 7.46 2001 26.2 1.8 19.6 0.0 0.0 1.9 3.7 2.8 1.5 5.2 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 16.17 15.01 14.37 13.96 13.57 13.01 12.17 2002 0.0 -8.6 75.9 0.0 0.0 -4.6 -13.2 -62.7 -30.0 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 167.49 137.46 123.30 115.13 107.81 98.19 85.12 Total 203.4 7.0 194.4 0.0 0.0 16.8 23.8 -14.7 8.4 16.6 0.0 0.0

These cash flows include Auk field only


15/25c Conoco 16/21d Arco 16/22 Total SUMMARY

4 The Balmoral field is located in Quadrant 16, approximately 220 km


northeast of Aberdeen in the UK sector of the North Sea. The field was
1 16/21b Arco discovered in 1975 by Well 16/21-1 which encountered oil in the Late
25 Paleocene Andrew Formation sandstone. Subsequently, the Jurassic
21 1 Glamis field was discovered in 1982 by Well 16/21a-6.
BLENHEIM Annex B approval for the Balmoral field was given in 1983 to use a
purpose built floating production vessel and first oil was produced in
5
12 November 1986. Production from Glamis began in July, 1989 using the
7
Balmoral facilities.
BALMORAL 2 A small Paleocene accumulation, named Blair, lies between
3 20A STIRLING
15/25a Balmoral and Glamis. Approval for the development of Blair as a
Shell 1
9 satellite to Balmoral was granted in March 1990 and it produced until
23 4,22
June 1990 when it watered out. It has since been abandoned. An
additional Paleocene oil discovery, named Blenheim, was made with
3 16/21a Sun 16/21c Arco
Well 16/21b-21 in December 1990. Development of Blenheim is via a
separate floating production, storage and offloading vessel and start up
19 BLAIR was in early March 1995. Anticipated reserves of Blenheim are in the
BLAIR 13 15
WEST 18 6 8 order of 20-25 million barrels of oil.
17 GLAMIS
15/25b Conoco A small Devonian oil accumulation, named Stirling, underlies the
15/30 Conoco 16/26 Chevron 16/27a Phillips Balmoral field. The reservoir sands are tight, but productivity has been
22
locally enhanced by natural fracturing. After an appraisal programme
which included long term production testing, the small reserves in
Stirling are now being produced through two wells.
19
The current interests in the Balmoral and Glamis fields in per cent.
4 PARLIAMENT are:-
0 4 km

13 25 1 Balmoral
Sun* 58.99
Deminex 12.47
Clyde 12.47
Summit 6.75
Pentex Oil 6.65
Goal 2.67

Glamis
Sun* 62.00
Deminex 15.00
Clyde 15.00
RESERVOIR CHARACTERISTICS Pentex Oil 8.00

operator *
Fluid Properties BALMORAL GLAMIS
Approximately 85 per cent. of the reserves are attributable to Block
Oil Gravity (API) 36 40
16/21a and 15 per cent. to Block 16/21b.
Gas/Oil Ratio (scf/stb) 380 750
Bubble Point Pressure, Pb (psig) 1450 3210
Formation Volume Factor at Pi (rb/stb) 1.26 1.64
Oil Compressibility (vol/vol/psi) 12 x 10-6
Original Reservoir Pressure, Pi (psig) 3165 4562
At Datum Depth of (ft TVDSS) 7000 10050
Reservoir Temperature (C) 207 119 LOCAL SETTING

Rock Properties The Balmoral field is located on the southern flank of the Palaeozoic
Fladen Ground Spur, a northwest-southeast trending extension of the
Rock Type Sandstone Sandstone Shetland Platform. To the south in Quadrant 21 is the Forties field, and
Stratigraphic Unit Andrew Formation Piper Formation to the southeast in Quadrant 16 is the Maureen field, both of which
Geological Age Paleocene Upper Jurassic produce from Paleocene sandstones. Also to the southeast, the Andrew
Porosity Range (per cent.) 25-32 15 and Cyrus fields have discovered oil in Paleocene sands. To the
Permeability Range (md) 300-2000 40-1500 northeast are the Jurassic Brae Formation fields; the Brae fields
Connate Water Saturation (per cent.) 10-20 themselves some 60 km to the north, and the
Oil Water Contact (ft TVDSS) 7050 10306 T-Block discoveries some 20 km in the same direction.
Depth to Top of Structure (ft TVDSS) 6900 10000

Reserves

Total Oil Reserves* (MMstb) 105 20


Est. Production to 31.12.95 (MMstb) 90 18
Remaining Oil Reserves (MMstb) 15 2 FIELD DESCRIPTION

Production The Balmoral field consists of turbiditic marine sandstones in a


simple anticlinal trap. The reservoir is in the Paleocene Andrew
Water depth (feet) 470-482 500 Formation averaging some 400 feet in thickness. Porosities and
Production Start Date November 1986 July 1989 permeabilities are good, the major variations being due to facies type
Peak Production (Oil) (stb/day) 37000 in 1990 12000 in 1990 and particularly authigenic clay content, with the best porosity and
Platform Floating Production Subsea completions permeability occurring high in the oil column, and grading down as oil
Facility + Subsea completions saturation falls. The Glamis field is an east-west trending feature to the
Number of Wells - Producers 13 2 south, containing oil in Jurassic sandstones.
Water injectors 6 1 The Balmoral reservoir comprises a low relief structure and contains
Gas injectors an undersaturated oil of low viscosity. The field, which is now in an
advanced stage of production, has produced in excess of original
Oil and NGL Export Pipeline to Brae-Forties Via
expectations.
trunkline to Cruden Bay Balmoral
Production began in November 1986 and approximately 85 per cent.
Gas Export
of the reserves had been produced by the end of 1995.
Glamis contains reserves of 20 MMstb and has been developed
* excludes Blair and Stirling
using three subsea wells tied back to the Balmoral manifold. Two of the
wells are producers, the third an injector. The field came on production
in July 1989, and oil is exported via the Brae/Forties link to Cruden Bay.
Problems were experienced with scale early on in production so the
wells were re-entered and side-tracked in 1993. The field is now in an
advanced stage of decline.
STRATIGRAPHY AND STRUCTURE

The Balmoral field oil accumulation occurs within the BALMORAL

UNITED KINGDOM
Late Paleocene Montrose Group, Andrew Formation TOP ANDREW
sandstones. The Montrose Group in the Balmoral area 7200

Balmoral
16/21b DEPTH STRUCTURE
forms a relatively thin (<900 feet) sequence due to its
16/21d 0 2 km

71
position over the southwestern flank of the Palaeozoic 7100

00
Fladen Ground Spur. Montrose Group thicknesses (Contours in feet TVDSS)
increase to the south where the Paleocene basin overlies
the Mesozoic Witch Ground Graben axis. The Andrew
5
Formation reservoir sandstones are overlain by 12
7000
approximately 260 feet of Lista and Sele Formation marine 16/21a

O
7200

W
mudstones which form the seal. Above these is the basal

C
7

70
tuff member of the Balder Formation, a regionally important 7100

50
71
16/21c

00
seismic and lithostratigraphic marker horizon. The
Balmoral structure is a result of drape over a Palaeozoic 7000
2
high. Closure has been generated by differential
compaction of mudstones over a major channel sandbody 3
complex, orientated northwest-southeast, passing through
the centre of the field. In addition, closure may be locally 1 73
00
aided by pinch-out of reservoir lithologies. 7000 B4
71
00
72
00
The Glamis field is an east-west trending structural 0
710

O
closure to the south of the Balmoral field, within which oil

W
C
70
has been discovered in Jurassic sandstones. 4A

50
73 0
74

00
75
SEDIMENTOLOGY AND DEPOSITIONAL

0
00
ENVIRONMENT

The sandstones of the Andrew Formation are turbidites


deposited on a submarine ramp that prograded along the
trend of the Witch Ground Graben. Four correlatable (After Tonkin and Fraser, 1991)

lithostratigraphic units can be distinguished within the


Andrew Formation in Balmoral. Unit I consists of interbedded sharp based, generally in Units III and IV represent local abandonment phases.
clean, fine and medium grained turbidite sandstones and marine mudstones which Unit III sandstones are similar to those of Unit II, but the initially higher proportion
were deposited at the distal margin of the prograding ramp. In some wells sandstone of unstable volcanic grains has resulted in the preferential formation of grain coating
beds thicken upwards, suggesting the progradation of lobes from the margin of the clays. These sandstones are therefore generally more argillaceous and friable.
ramp. Unit IV consists of weakly indurated, sharp based, generally clean, fine to
Unit II contains a lower proportion of mudstone beds than Unit 1. Thick (several medium grained turbidite sandstones interbedded with minor marine mudstones.
feet) massive sandstone bodies are predominant. The massive sandstones were The massive sandstone bodies represent turbidites deposited on the prograding
deposited by turbidity currents flowing down the ramp and being confined within, ramp.
although not actively eroding, channels. Sandstones are generally clean, fine and
medium grained, exhibiting fluid-escape structures. Mudstones in Unit II like those

INTERPRETATIVE STRUCTURAL CROSS SECTION

16/21-1 16/21a-2
Feet SW NE

4000

5000

6000

Rogaland Group

7000

Maureen Formation Andrew Formation

8000
Cromer Knoll Group
"Old Red Sandstone" Ekofisk Formation Tor Formation Hod Formation

0 0.5 1 km
9000

REPRESENTATIVE WELL SECTION - 16/21a-2

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 1.95 2.95
CLAY

AGE

16/21a-2 LITH INTERPRETATION POROSITY PERMEABILITY 150


CALIPER UNIT NEUTRON
VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


Laterally extensive, deep water marine
mudstones. Non-reservoir.
High density turbidite sandstones overlain
by mudstones and thin sheetflood turbidite
ROGALAND GP.
LISTA FM.

sandstones.

Geometry
Broad, elongate, lenticular and sheetlike
sandbodies with thin, sheetlike to lenticular
7100

mudstones.

and K
and K of sandstones good, locally poor
UPPER PALEOCENE

where calcite cemented. Mudstones form


local restrictions to vertical flow.
ANDREW FORMATION

Interchannel marine mudstones with thinly


MONTROSE GROUP

interbedded sheetflood turbidite


sandstones, interbedded with thicker
M turbidite sandstones.

M Geometry
7200

Sheetlike to lenticular, impermeable


M mudstones with sheetlike and broad,
elongate, lenticular sandbodies.
M
and K
Mudstones form vertical permeability
barriers. and K of sandstones likely to
be good where uncemented.
M
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
16/21a-2
1. Balder Formation 10000
16/21b-5
2. Sele Formation

Balmoral
3. Lista Formation
4. Ekofisk Formation
16/21a-3

Bald 16/21-1 1000


er F
orm 16/21c-4A
atio
n
Sele

Rogaland Gp.
Form 1
ation
2
Lista
Form IV 100
ation 3

III

PERMEABILITY (md.)
Andrew Formation
II
10

Montrose Group.
I

Maureen Fm.
1

Chalk Gp.
0

Maureen Fm. 0.1

100 feet
4
Ekofisk Fm.

0.01
The fourway subdivision into lithostratigraphic units forms the basis of the Andrew 0 10 20 30 40
Formation zonation in the Balmoral field. The major sandstone bodies predominantly have
POROSITY (per cent.)
ribbon geometries and are orientated northwest-southeast along the axis of the field. The
highest sandstone/mudstone ratios occur in sections along the axis of the field.
Mudstones are generally laterally impersistent except in Unit l and towards the northeast Porosities and permeabilities in Balmoral are typically good to
where the sandstone/mudstone ratio is lower. Isochores of net and gross sand thickness very good, ranging from 25 to 32 per cent., and 300 to 2000 md
trend northwest-southeast, parallel to the palaeocurrent direction and the flank of the Fladen respectively.
Ground Spur. Porosity and permeability are primarily controlled by the burial
Nodules of calcite-cemented sandstone do not form widespread permeability barriers but depth and the initial texture and composition of the sandstones. A
may act as baffles to fluid migration. primary palaeoenvironmental control is related to grain size, sorting,
and content of detrital clay and mica. Higher porosities and
permeabilities are associated with coarser grained, better sorted
sandstones which contain less detrital clay and mica. Even subtle
variations in detrital clay content associated with dewatering
structures in "massive" sandstone bodies have a measurable effect
FLUID PROPERTIES on permeabilities and water saturations.
Quartz overgrowth cement causes Unit IV to have slightly lower
The Balmoral field contains a relatively low shrinkage undersaturated black oil with a (by about 4 per cent. of total rock volume) measured porosities than
separator corrected gas oil ratio of 380 scf/stb. Unit III. The higher content of authigenic chlorite and kaolinite in Unit
III (related to initially higher contents of unstable volcanic grains)
results in lower permeabilities and macroporosities and higher water
0.9 saturations than in Unit IV.
500
BALMORAL
1.30 B0
0.8
400 1.28 GOR
GOR (scf/stb)

1.26
0 (cp)

300 1.24 0.7


B0 (rb/stb)

1.22

1.20
200 0.6
1.18 RESERVOIR PRESSURE
0
1.16
@ 207F Based on a water pressure gradient to surface of 0.451 psi/ft, the
100 1.14 0.5
0 1000 2000 3000 4000 5000
oil in the Balmoral field is normally pressured. The PVT data imply
an oil pressure gradient of 0.311 psi/ft.
PRESSURE (psig)

6000

0.311 psi/ft
CONTROLS ON RECOVERY

Balmoral is a low relief field underlain by an active aquifer. Production performance to


DEPTH (feet TVDSS)

date has been in excess of expectations. The recovery factor in the Balmoral field is
expected to be very good at over 45 per cent. resulting from: 7000 OWC @ 7050 ft TVDSS

good to very good porosities and permeabilities in the reservoir and aquifer sandstones
marginally favourable fluid displacement characteristics with pressure support from
water injection 0.451 psi/ft
stacked, laterally thinning, sheet to broad ribbon geometry sandbodies, separated by
thin laterally discontinuous impermeable mudstones, which have created effective
baffles to the vertical movement of water into the production wells.

The presence of bottom water in this low relief structure has resulted in water coning, 8000
2000 3000 4000
although in some wells the presence of impermeable shales has inhibited the development
of water cones. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

BALMORAL GLAMIS

UNITED KINGDOM
Balmoral
Water Depth 470-482 500
(feet)
Platform Type semi-submersible subsea
vessel completions
Function production/
accommodation
Displacement 34000
(tonnes)
Accommodation 120
Wells 10

The field has 13 producing wells and six water injection wells. 10 producing wells are
through the 14 slot template, the other nine wells are subsea tied backs.

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 60000


(bbl/day)

Oil Export 14" x 15 km pipeline to 8 km flowlines


tie into Brae-Forties Trunkline to Balmoral

(A Sun Oil Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00%
20.00%
50
Pre Corporation Tax

Net Present Value 261.64 77.58 6.85 -28.90 -57.54 -90.08 -124.43

Average Annual Daily Liquid Rate (Mbbl/day)


Net Present Value (Deflated) 135.71 -67.08 -142.89 -180.35 -209.69 -241.83 -272.95
Profit/Inv Ratio 0.54 0.18 0.02 -0.08 -0.16 -0.26 -0.41 40
Profit/Inv Ratio (Deflated) 0.17 -0.09 -0.22 -0.29 -0.35 -0.43 -0.53
NPV/Unit Oil Equiv. 2.09 0.95 0.11 -0.52 -1.20 -2.31 -4.39
NPV/Unit Oil Equiv. (Deflated) 0.89 -0.66 -1.76 -2.55 -3.40 -4.78 -7.32

Payback Year 1991 30


Nominal Rate Of Return % 8.35
Real Rate Of Return % 3.01

Post Corporation Tax


20
Net Present Value 166.91 23.64 -32.24 -60.63 -83.42 -109.29 -136.37
Net Present Value (Deflated) 36.36 -123.87 -184.13 -213.87 -237.06 -262.19 -285.64 Balmoral only
Profit/Inv Ratio 0.34 0.06 -0.08 -0.16 -0.23 -0.32 -0.45
Profit/Inv Ratio (Deflated) 0.05 -0.17 -0.28 -0.34 -0.39 -0.46 -0.56
NPV/Unit Oil Equiv. 1.33 0.29 -0.50 -1.09 -1.74 -2.80 -4.81
10
NPV/Unit Oil Equiv. (Deflated) 0.24 -1.22 -2.26 -3.03 -3.85 -5.18 -7.66

Nominal Rate Of Return % 6.15


Real Rate Of Return % 0.91

Earnings Data 0
1985 1990 1995 2000 2005
Gross Revenue 1,405.58 911.83 718.31 617.44 533.74 433.17 313.01
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 94.73 53.94 39.09 31.73 25.88 19.21 11.94
Capital Expenditure 489.00 429.14 398.77 380.43 363.43 340.17 306.45
Operating Costs 654.93 405.11 312.69 265.91 227.85 183.08 131.00

Gross Revenue (Deflated) 1,702.12 1,131.31 902.70 782.08 681.10 558.48 409.74
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 99.35 56.79 41.24 33.52 27.37 20.36 12.69
Capital Expenditure (Deflated) 803.89 708.80 660.24 630.82 603.48 565.97 511.37
Operating Costs (Deflated) 762.52 489.59 385.35 331.61 287.30 234.34 171.32

CASH FLOW REPORT


ECONOMIC INDICATORS FROM 1/1/1996
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Pre Corporation Tax
1983 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -119.6 0.0 0.0 0.0
Net Present Value 27.01 30.11 31.24 31.78 32.17 32.54 32.73 1984 0.0 0.0 0.0 120.0 0.0 0.0 0.0 -120.0 -508.3 0.0 0.0 0.0
Net Present Value (Deflated) 30.21 32.21 32.86 33.13 33.29 33.38 33.21 1985 0.0 0.0 0.0 165.0 0.0 0.0 0.0 -165.0 -616.0 0.0 0.0 0.0
NPV/Unit Oil Equiv. 1.55 1.92 2.11 2.23 2.34 2.49 2.72 1986 3.6 0.0 10.8 140.0 0.0 0.0 0.0 -147.2 -480.0 1.0 0.0 0.0
1987 131.6 0.0 51.9 25.0 0.0 0.0 0.0 54.7 159.8 32.0 0.0 0.0
Post Corporation Tax 1988 108.7 0.0 54.4 0.0 0.0 0.0 0.0 54.3 143.4 35.0 0.0 0.0
1989 162.2 0.0 60.5 0.0 0.0 0.0 0.0 101.7 233.0 40.0 0.0 0.0
Net Present Value 6.21 10.52 12.31 13.26 14.05 14.98 16.01 1990 236.1 0.0 69.2 0.0 0.0 0.0 0.0 166.9 328.4 49.0 0.0 0.0
Net Present Value (Deflated) 10.00 13.15 14.44 15.10 15.65 16.27 16.91 1991 158.6 0.0 59.1 10.0 0.0 0.0 0.0 89.5 148.9 38.0 0.0 0.0
NPV/Unit Oil Equiv. 0.36 0.67 0.83 0.93 1.02 1.15 1.33 1992 127.4 0.0 52.7 2.0 0.0 20.6 20.6 52.0 75.8 32.0 0.0 0.0
1993 107.6 0.0 42.9 2.0 0.0 20.2 20.2 42.5 55.3 26.0 0.0 0.0
Earnings Data 1994 90.5 0.0 36.1 0.0 0.0 17.8 17.8 36.5 43.2 24.0 0.0 0.0
1995 69.0 0.0 34.0 0.0 0.0 15.3 15.3 19.7 21.1 17.9 0.0 0.0
Gross Revenue 210.34 187.97 176.65 169.82 163.50 154.87 142.39 Total To Start Of Discounting ( 1/JAN/1996)
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,195.2 0.0 471.6 489.0 0.0 73.9 73.9 160.7 -515.2 107.6 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 20.80 19.59 18.93 18.52 18.12 17.57 16.71 1996 55.6 0.0 32.2 0.0 0.0 9.6 9.6 13.9 13.3 13.9 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 46.9 0.0 30.8 0.0 0.0 6.3 6.3 9.9 8.4 10.9 0.0 0.0
Operating Costs 183.33 157.87 145.41 138.04 131.33 122.33 109.67 1998 38.5 0.0 29.0 0.0 0.0 4.2 4.2 5.3 4.0 8.6 0.0 0.0
1999 27.5 0.0 29.2 0.0 0.0 2.3 2.3 -4.0 -2.7 5.9 0.0 0.0
Gross Revenue (Deflated) 195.88 175.90 165.75 159.62 153.94 146.15 134.87 2000 22.7 0.0 21.9 0.0 0.0 -1.4 -1.4 2.2 1.4 4.7 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 19.1 0.0 18.2 0.0 0.0 -0.1 -0.1 1.1 0.6 3.8 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 20.21 19.05 18.42 18.02 17.65 17.11 16.29 2002 0.0 0.0 22.1 0.0 0.0 0.0 0.0 -22.1 -10.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 165.67 143.70 132.90 126.49 120.64 112.78 101.66 Total 210.3 0.0 183.3 0.0 0.0 20.8 20.8 6.2 14.4 17.4 0.0 0.0

These cash flows include Balmoral and Glamis fields


48/12a 48/13a Shell SUMMARY
Mobil 0 5 km
BARQUE
The Barque and Clipper fields are located in the UK sector of the
"J" STRUCTURE Southern North Sea approximately 100 km east of Theddlethorpe.
6,6a 2
9 4,7,7a Barque was discovered in 1966 by Well 48/13a-1 and Clipper some two
BARQUE 1 ENSIGN 48/15b BG years later in 1968 by Well 48/19a-1. Subsequent appraisal has shown
SOUTH 3,3a 48/15a Conoco that Barque extends into Block 48/14. Clipper lies mainly in Block 48/19
5 2 and extends into Block 48/20a to the east.
6
Approval for development was granted in 1988 and first gas was
BARQUE produced from Clipper in October 1990. Production from Barque started
GALAHAD EXTENSION 1 GALLEON in 1991 and the Barque extension, developed by means of a new
2
48/13c Rel. minimal facilities platform installed in late 1995, commenced output in
3 4 9
November 1995.
8 Current interests in the blocks containing Barque and Clipper in per
48/13b Mobil 48/14a Shell 5 cent. are :-
48/17a 48/18a Mobil 48/19a Shell 48/20a Shell
Mobil 11 6
RD/Shell UK Ltd. * 50.00
EXCALIBUR CLIPPER 2 1
Esso Expl. and Prod UK Ltd. 50.00
11 11
5
PT PW operator *
48/18b Ranger 1 2
4,4a

10 13
2 4 4
3
9 6 ANGLIA 48/19c
Shell CLIPPER
LANCELOT 7 3 9
d 1 9 8 SOUTH
6 7,10,12
5
6
48/17c 12 2
Arco 48/18c Arco 48/19b Ranger 48/19d Amerada 48/20b Conoco LOCAL SETTING

Barque and Clipper are two separate accumulations which comprise


the core of the Sole Pit area, located in the centre of the Southern North
Sea Basin. Gas in the Sole Pit area is found in the Rotliegendes
sandstones. Reservoir quality is typically poor due to the tightness of
the reservoir sands.
Nearby accumulations include Anglia to the south, Audrey and the V
fields to the east, West Sole, Amethyst and the "Village" fields to the
west. All of the numerous fields in the area produce from the
Rotliegendes sandstone.

RESERVOIR CHARACTERISTICS

BARQUE CLIPPER
Fluid Properties

Gas Gravity S.G (air =1) 0.59 0.59


Condensate Gas Ratio (bbl/MMscf) N/A N/A FIELD DESCRIPTION
Gas Expansion Factor (vol/vol) 230 235
Reservoir Pressure, Pi (psig) 3750 3850 These fields are northwest-southeast orientated, elongate fault
at Datum Depth of (ft TVDSS) 7892 8480 blocks which are associated with smaller, gas bearing structures.
Reservoir Temperature (F) 172 169 Continental sandstones of the Leman Sandstone Formation of the
Rotliegendes Group constitute the reservoir. Reservoir quality is
Rock Properties generally poor to moderate but is enhanced by natural fractures. All
wells will be stimulated by acidisation or hydraulic fracturing.
Rock Type Sandstone The fields contain dry gas, are normally pressured and are being
Stratigraphic Unit Rotliegendes Group developed together. Production commenced in October 1990. Gas
Geological Age Lower Permian export is by pipeline to Bacton via Clipper. The installation of the
Porosity Range (per cent.) 9-17 7-17 compression platform on Clipper was completed in 1994.
Permeability Range (md) 0.1-10 0.1-100 Phase II development has been formally approved since January
Connate Water Saturation (per cent.) N/A 8332 1994 and will be centred around two structures, Barque Extension and
Gas Water Contact (ft TVDSS) 8471 - 8727 8790 Barque South. Barque South came on stream in October 1994 and
Depth to Top of Structure (ft TVDSS) 7500 7500 Barque Extension started up in November 1995. The Barque Extension
wells will be drilled from a new 15 slot wellhead platform (PL) which will
Reserves be not normally manned and operated from the Clipper complex. These
two structures have been estimated at adding over 550 Bcf to existing
Total Gas Reserves (Bcf) 1340 760 reserves, and further increases may be made by the inclusion of three
Est. Gas Production to 31.12.95 (Bcf) ------------------------ 380----------------------- long-reach wells.
Remaining Gas Reserves (Bcf) ------------------------1720 ---------------------- The other structures in the Sole Pit area include Galleon which came
onstream in October 1994 and is covered in detail in a separate chapter,
Production as well as Ensign.
Other fields nearby include a collection of small/medium gas fields
Water Depth (feet) 73 named after Arthurian legend-Excalibur, Lancelot, Guinevere and
Production Start Date October 1990 Galahad. Lancelot was discovered in 1985 and has been developed
Peak Gas Production (yrly average) (MMscf/day) 350 utilising one unmanned central processing platform and a second
Platform(s) 3 steel jackets (2 unmanned) satellite platform on Guinevere after its discovery in 1988. Both fields
1 compression platform on Clipper came on stream in July 1993 and have estimated recoverable reserves
Number of Wells 37 (planned) + 3 long reach of 210 Bcf for Lancelot and 70 Bcf for Guinevere. Gas is exported via
Gas and NGL Export Gas pipeline to Bacton via Clipper pipeline to Bacton for processing.
Excalibur is located between the Pickerill and Anglia fields and has
been developed by an unmanned platform since its discovery in 1985.
Production started in October 1994 with estimated reserves of 250 Bcf
of gas, which is exported by spurline to Lancelot then on to Bacton.
Galahad is a small gas field located north-east of
Lancelot/Guinevere, which was first discovered in 1975 by Well 48/12-
2 and extended into Block 48/13 in 1982. Galahad has recently been
successfully appraised by the first multilateral well in the UKCS.
Reserves are estimated to be about 150 Bcf of sales gas and
production started in November 1995. Gas will be exported via tieback
to the existing Lancelot pipeline and on to Bacton.
STRUCTURE AND STRATIGRAPHY

Barque & Clipper


BARQUE AND CLIPPER The Barque and Clipper fields lie in the Sole Pit Basin about 65 km to the

UNITED KINGDOM
6 TOP ROTLIEGENDES northeast of the Norfolk coastline. Both fields are elongate in a northwest to
southeast direction as are the neighbouring Galleon field and Frigate discovery.

84
GW
DEPTH STRUCTURE

00
C8
72 The J structure adjoins the northeastern margin of the Barque field. It was tested
7 2a
7a 0 4 km
4
by Wells 48/13-1 and 48/14-3 and is considered to be non-commercial at present.
48/13a
(Contours in feet) A small gas-bearing structure occurs to the south of the Clipper field and has been
48/13c GWC 8571 drilled by the Well 48/19a-3.
5
The crest of the Barque and Clipper field structures are both around 7500 to 8000
780
feet TVDSS. The Leman Sandstone Formation forms the reservoir, ranging in
BARQUE 0 thickness from 737 feet to 954 feet in the Barque field and the J structure, and
GW
C8
4 thickens to the northwest. It is 680 feet thick and 748 feet thick in the Clipper Wells

71
48/19-1 and 48/19a-2A respectively.
1 The structures are mainly fault closed to the northeast and dip closed to the

80
southwest, and they are sealed by evaporites and mudstones of the Zechstein

00
GWC 8471
Group.
48/14
48/19b 48/19a

GWC 8332

6
GWC 8790

5 2a
48/19c 00
82

848000
00
1 820
0
CLIPPER
82
00

84
00
GWC 8700 4

8400
GWC 8520

3
48/20a
8400

GDT 8475 8200 48/20b

(Modified after Farmer RT & Hillier AP, 1991)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Leman Sandstone Formation comprises a variety of facies which may be The desert lake/sabkha deposits consist of adhesion rippled argillaceous
grouped into aeolian, ephemeral fluvial and desert lake assemblages. The aeolian sandstones and siltstones which accumulated on the margins of the Silverpit Lake.
dune sandstones are fine and medium grained, cross bedded and become more These lacustrine facies become more prevalent towards the north.
abundant towards the southeast. In the Clipper area relatively thick and well sorted A largely structureless sandstone unit (Weissliegend) occurs, at least locally in
dune foreset sandstones are separated by thinner, slightly argillaceous dune this area, at the top of the Leman Sandstone Formation and is considered to
base/wet interdune sandstones. The latter tend to be less well sorted and may be represent the partial reworking of the aeolian/fluvial sands during the transgression
bimodally laminated and adhesion rippled. of the Zechstein Sea. The interval is easily recognised in core (e.g. in Well 48/19a-
The wadi deposits consist of cross bedded, parallel laminated and structureless 3) but is difficult to identify on wireline logs alone.
sandstones which form sharp based units containing mudstone clasts. Both elongate
channel filling bodies and more laterally extensive sheetflood deposits are present.
Wadi deposits predominate towards the southwest.

REPRESENTATIVE WELL SECTION - 48/13a-4

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 5 25 45 -15

Transgressive marine mudstone 1 2


Stacked sheetflood and wadi channel
48/13a-4 sandstones with minor aeolian sand sheet
sandstones, and thin playa lake/
interchannel mudstones.
..
7900

Geometry
Elongate, lenticular and lobate to sheetlike
sandstones, stacked and coalesced into a
.. .. .. thick, sheetlike sandbody which
.. .. incorporates thin, lenticular to sheetlike
.. .. mudstones.
7950

.. ..
.. .. .. .. and K
.. .. .. varies from poor to good, mainly due to
variations in grain size, sorting, detrital
.. ..
..
LEMAN SANDSTONE FORMATION

clay content and local dolomite cementation.


K generally poor due to authigenic illite.
Compaction has also reduced and K
ROTLIEGENDES GROUP

8000

.. ..
PERMIAN

..

.. ..
8050

..
..
..
.. ..
8100

.. .. ..
.. ..
8150

....

1. ZECHSTEIN GROUP
2. KUPFERSCHIEFER FM.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Barque & Clipper


NW 48/13a-4
SE
10000
48/13a-2A
48/13-1

Fluvial sandstones

Playa lake mudstones 1000


Fluvial sandstones
Fluvial sandstones
Braidplain sediments

Playa lake mudstones


100

Leman Sandstone Formation


Rotliegendes Group
Fluvial sandstones Fluvial sandstones

PERMEABILITY (md.)
Playa lake mudstones
Interdune sabkha sediments Aeolian sandstones

10
Playa lake mudstones

Aeolian sandstones
Aeolian sandstones

Interdune sabkha sediments

Fluvial sandstones 1
Playa lake mudstones

Braidplain sediments
Fluvial sandstones
Fluvial sandstones
0.1
0
Playa lake mudstones
Barque
100
Clipper
Braidplain sediments
0.01
0 10 20 30
200 feet
POROSITY (per cent.)

The reservoir zonation is based on the relative abundance of aeolian, wadi and sabkha Porosities are generally moderate or poor in the reservoir
deposits. Three zones have been recognised: sandstones (e.g. 2 to 20 per cent. in Well 48/13a-4) and average
- an upper zone (300 to 400 feet thick), including the Weissliegend at the top which is values are 10.5 per cent. in the upper zone, 12.5 per cent. in the
dominated by aeolian sandstones in Clipper but contains mainly wadi and sabkha deposits middle zone and 9 per cent. in the lower zone. Permeabilities are
in the Barque Field. generally very poor (e.g. mostly in the range 0.04 to 0.32 md in Well
- a middle zone (150 to 300 feet thick), which is dominated by aeolian sandstones. 48/13a-4) but natural fractures are present in the reservoir and these
- a lower zone (150 to 300 feet thick) which consists mainly of wadi and sheetflood dominate the flow behaviour of the wells in which they occur.
sandstones with minor aeolian and sabkha deposits. Tensional and dilation shear fractures are the most important types
The aeolian sandstones occur as lenticular to lobate and sheetlike units which are since they are open or only partly cemented and occur in swarms.
commonly stacked to form thick sandbodies. Ephemeral channel-filling sandbodies are Tensional fractures only occur in the upper reservoir zone, but
elongate whereas sheetflood sandstones have more sheetlike geometries and may be dilational shear fractures occur throughout the reservoir. The
stacked to form thick sandbodies. The geometry of more argillaceous interdune sabkha and dilational shear fractures are always partly cemented by quartz,
desert lake deposits varies from lenticular to laterally extensive. anhydrite, dolomite and/or barite. In some wells, flow rates have
The middle and lower zones are notably thicker in 48/13a-2A in the northwestern part of been greatly increased by hydraulic fracturing and acidisation.
the Barque field than in 48/13a-4 and 48/13-1 to the southeast. The 'matrix' porosities and permeabilities are partly facies
controlled with the high values tending to occur in the cleaner,
coarser grained and better sorted aeolian sandstones. The
argillaceous sandstones and siltstones (deposited in interdune
FLUID PROPERTIES
sabkhas and desert lake margins) tend to have the poorest
porosities and permeabilities. Initial porosity and permeability have
The two fields contain dry gases. No gas gravity data are available. Examination of data
been greatly reduced by compaction (at palaeo-depths as great as
for nearby fields suggests that the gas gravity is likely to be approximately 0.59.
16000 feet TVDSS) and cementation by dolomite, haematite,
anhydrite, quartz and filamentous illite. The uppermost part of the
Leman Sandstone Formation is preferentially dolomite cemented
1.00 and the degree of cementation tends to decrease with depth.
GAS DEVIATION FACTOR Z

Zi = 0.92
RESERVOIR PRESSURE
0.95

Relative to a hydrostatic gradient to surface of 0.45 psi/ft, the


Clipper field is normally pressured and the Barque field is
Barque overpressured by 200 psi.
0.90 Clipper

Barque
Barque @ 172 F (from correlation)
Clipper @ 169 F (from correlation) 7800 0.07 psi/ft
0.85

0 1000 2000 3000 4000 5000 GDT@ 7892 ft TVDSS


PRESSURE (psig) 0.45 psi/ft
8000
DEPTH (feet TVDSS)

CONTROLS ON RECOVERY 8200

Recovery from the Barque and Clipper fields is expected to be poor to moderate. The Clipper
principal factors affecting the recovery are as follows.
8400
0.07 psi/ft
poor to very poor matrix permeabilities enhanced by well developed natural
fracture systems
generally areally extensive sand bodies with some areally extensive mudstones 8600 GDT@ 8585 ft TVDSS
which may act as baffles or barriers to vertical flow
significant faulting in the area limiting aquifer influx but also possibly 0.45 psi/ft

compartmentalising the reservoir


the installation of compression facilities on Clipper in 1994 8800

use of a large number of wells, including extended reach wells 3700 3800 3900 4000
acidisation or fracturing of all wells INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Barque & Clipper


CLIPPER BARQUE BARQUE

UNITED KINGDOM
PW PT PC PB PL

Water Depth 72 72 72 72
(feet)
Platform Type -------------------- steel jackets ---------------- steel jacket
Function wellhead process/ compression wellhead
accomm. satellite

Jacket Weight 1191 919 455 925


(tonnes)
Total Weight of Structure 4404 5661 2789 4442 2000
(tonnes)

Accommodation 48 (14 emergency)


(24 emergency
in portacabin
extension)

Well Slots 30 18 15
Wells 25 15

PROCESSING AND EXPORT SPECIFICATIONS

CLIPPER PW BARQUE PB

Gas Throughput 300 170


(MMscf/day)
(A Charles Hodge Photograph)

Gas Export PC and PW Bridge to PT 16" x 24km line to PT


24" x 73km pipeline from PT to Bacton

The Barque PL minimum facilities platform will be installed in 1995.

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 360

Net Present Value 2,620.49 1,742.54 1,353.99 1,131.18 928.54 649.90 217.87
Net Present Value (Deflated) 1,907.46 1,213.10 881.40 679.66 487.12 206.32 -267.38

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 2.94 1.68 1.18 0.92 0.70 0.44 0.12 300
Profit/Inv Ratio (Deflated) 1.85 0.99 0.64 0.46 0.30 0.11 -0.12
NPV/Unit Oil Equiv. 7.49 6.44 5.58 4.93 4.24 3.13 1.10
NPV/Unit Oil Equiv. (Deflated) 6.67 5.12 4.02 3.22 2.37 1.04 -1.37
240
Payback Year 1996
Nominal Rate Of Return % 22.55
Real Rate Of Return % 17.21

Post Corporation Tax 180

Net Present Value 1,726.37 1,141.28 861.08 693.60 536.47 312.31 -54.09
Net Present Value (Deflated) 1,248.33 745.64 488.22 325.40 165.46 -75.49 -499.79
Profit/Inv Ratio 1.94 1.10 0.75 0.56 0.41 0.21 -0.03 120
Profit/Inv Ratio (Deflated) 1.21 0.61 0.36 0.22 0.10 -0.04 -0.23
NPV/Unit Oil Equiv. 4.93 4.22 3.55 3.02 2.45 1.50 -0.27
NPV/Unit Oil Equiv. (Deflated) 4.36 3.15 2.22 1.54 0.81 -0.38 -2.56
60
Nominal Rate Of Return % 19.27
Real Rate Of Return % 14.07

Earnings Data
0
Gross Revenue 5,848.41 4,039.80 3,440.77 3,156.07 2,936.03 2,694.53 2,450.62 1985 1990 1995 2000 2005 2010 2015 2020
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 986.65 570.79 417.53 342.13 282.58 215.31 142.18 Year
Corporation Tax 894.13 601.26 492.91 437.57 392.07 337.59 271.96
Capital Expenditure 890.52 1,039.13 1,147.90 1,229.56 1,319.16 1,469.72 1,769.20
Operating Costs 1,350.75 687.33 521.35 453.20 405.75 359.60 321.37

Gross Revenue (Deflated) 4,366.14 3,301.58 2,937.17 2,762.54 2,627.82 2,482.32 2,346.05 CASH FLOW REPORT
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 648.16 377.48 279.70 231.52 193.25 149.64 101.41 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Corporation Tax (Deflated) 659.13 467.46 393.18 354.26 321.66 281.81 232.41 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Capital Expenditure (Deflated) 1,029.39 1,227.58 1,372.40 1,481.13 1,600.51 1,801.32 2,201.69 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Operating Costs (Deflated) 781.13 483.41 403.67 370.22 346.94 325.04 310.33
1987 0.00 0.00 0.00 10.00 0.00 0.00 0.00 -10.00 -29.19 0.00 0.00 0.00
1988 0.00 0.00 0.00 50.00 0.00 0.00 0.00 -50.00 -132.13 0.00 0.00 0.00
1989 0.00 0.00 0.00 120.00 0.00 0.00 0.00 -120.00 -274.85 0.00 0.00 0.00
1990 15.74 0.00 6.50 120.00 0.00 0.00 0.00 -110.76 -217.96 0.00 30.00 0.00
1991 80.03 0.00 15.80 95.00 0.00 0.00 0.00 -30.77 -51.19 0.00 125.00 0.00
1992 116.99 0.00 16.60 84.00 0.00 0.00 0.00 16.39 23.87 0.00 187.00 0.00
1993 113.33 0.00 17.40 51.00 0.00 0.00 0.00 44.93 58.38 0.00 180.00 0.00
1994 116.98 0.00 19.50 90.00 0.00 0.00 0.00 7.48 8.86 0.00 170.00 4.35
1995 237.61 0.00 21.00 130.00 0.00 0.00 0.00 86.61 92.70 0.00 350.00 11.67
Total To Start Of Discounting ( 1/JAN/1996)

680.68 0.00 96.80 750.00 0.00 0.00 0.00 -166.12 -521.52 0.00 380.33 5.85

1996 253.82 0.00 24.00 0.00 0.00 31.60 31.60 198.22 190.74 0.00 350.00 21.67
1997 263.87 0.00 24.96 46.80 8.60 54.24 62.83 129.28 110.75 0.00 350.00 21.67
1998 274.31 0.00 25.97 48.69 -3.31 57.03 53.72 145.93 111.31 0.00 350.00 21.67
1999 285.17 0.00 27.02 45.03 4.98 62.89 67.87 145.26 98.64 0.00 350.00 21.67
ECONOMIC INDICATORS FROM 1/1/1996 2000 303.12 0.00 28.11 0.00 21.01 65.15 86.16 188.85 114.18 0.00 350.00 30.00
2001 290.74 0.00 29.24 0.00 18.47 69.18 87.65 173.85 93.58 0.00 320.60 30.00
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 2002 279.07 0.00 30.42 0.00 73.97 62.88 136.85 111.79 53.58 0.00 293.70 30.00
2003 267.99 0.00 31.65 0.00 54.80 55.11 109.92 126.42 53.94 0.00 269.00 30.00
Pre Corporation Tax 2004 257.64 0.00 32.93 0.00 50.28 54.50 104.77 119.94 45.56 0.00 246.50 30.00
2005 247.80 0.00 34.26 0.00 93.11 47.40 140.51 73.03 24.70 0.00 225.80 30.00
Net Present Value 2,786.62 2,010.74 1,698.49 1,533.79 1,395.67 1,227.06 1,018.96 2006 236.91 0.00 35.64 0.00 74.36 40.80 115.15 86.11 25.93 0.00 206.90 28.34
Net Present Value (Deflated) 2,178.94 1,627.75 1,402.91 1,282.54 1,180.30 1,053.49 893.20 2007 226.43 0.00 37.08 0.00 78.59 39.92 118.51 70.84 18.99 0.00 189.50 26.76
NPV/Unit Oil Equiv. 9.72 10.06 10.15 10.18 10.20 10.22 10.22 2008 216.48 0.00 38.58 0.00 74.75 34.32 109.07 68.83 16.43 0.00 173.60 25.28
2009 207.06 0.00 40.14 0.00 68.61 33.08 101.69 65.23 13.86 0.00 159.10 23.87
Post Corporation Tax 2010 197.94 0.00 40.72 0.00 83.24 29.32 112.57 44.66 8.45 0.00 145.70 22.55
2011 189.34 0.00 41.46 0.00 73.80 25.51 99.30 48.58 8.18 0.00 133.50 21.30
Net Present Value 1,892.49 1,409.48 1,205.58 1,096.21 1,003.60 889.47 747.00 2012 181.10 0.00 41.81 0.00 69.39 24.17 93.56 45.73 6.86 0.00 122.30 20.11
Net Present Value (Deflated) 1,519.81 1,160.29 1,009.73 928.28 858.64 771.68 660.79 2013 173.31 0.00 42.32 0.00 65.17 22.91 88.08 42.91 5.73 0.00 112.10 19.00
NPV/Unit Oil Equiv. 6.60 7.05 7.20 7.28 7.34 7.41 7.49 2014 165.82 0.00 43.22 0.00 60.94 21.66 82.60 40.00 4.75 0.00 102.70 17.94
2015 158.68 0.00 43.90 0.00 56.93 20.37 77.30 37.48 3.97 0.00 94.10 16.95
Earnings Data 2016 151.84 0.00 44.35 0.00 53.19 19.15 72.34 35.15 3.31 0.00 86.20 16.00
2017 145.37 0.00 45.00 0.00 49.56 18.01 67.57 32.80 2.75 0.00 79.00 15.12
Gross Revenue 5,167.74 3,283.40 2,634.83 2,315.30 2,058.90 1,759.89 1,411.65 2018 23.12 0.00 154.14 0.00 -58.49 16.89 -41.60 -89.42 -6.68 0.00 0.00 14.28
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2019 22.71 0.00 12.42 0.00 3.83 -21.36 -17.53 27.81 1.85 0.00 0.00 13.49
Petroleum Revenue Tax 986.65 570.79 417.53 342.13 282.58 215.31 142.18 2020 22.31 0.00 12.93 0.00 3.32 2.13 5.46 3.93 0.23 0.00 0.00 12.74
Corporation Tax 894.13 601.26 492.91 437.57 392.07 337.59 271.96 2021 21.91 0.00 13.45 0.00 2.81 2.01 4.82 3.65 0.19 0.00 0.00 12.03
Capital Expenditure 140.52 124.56 116.26 111.19 106.45 99.89 90.26 2022 21.52 0.00 13.99 0.00 2.28 1.88 4.17 3.37 0.16 0.00 0.00 11.36
Operating Costs 1,253.95 577.31 402.56 328.19 274.20 217.63 160.25 2023 21.14 0.00 14.56 0.00 1.75 1.75 3.50 3.09 0.13 0.00 0.00 10.73
2024 20.77 0.00 15.14 0.00 1.20 1.62 2.82 2.80 0.10 0.00 0.00 10.14
Gross Revenue (Deflated) 3,632.01 2,482.68 2,062.68 1,848.88 1,673.24 1,462.88 1,208.70 2025 20.40 0.00 15.76 0.00 0.65 1.49 2.13 2.51 0.08 0.00 0.00 9.57
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2026 20.04 0.00 16.39 0.00 0.10 1.35 1.45 2.20 0.06 0.00 0.00 9.04
Petroleum Revenue Tax (Deflated) 648.16 377.48 279.70 231.52 193.25 149.64 101.41 Remain
Corporation Tax (Deflated) 659.13 467.46 393.18 354.26 321.66 281.81 232.41 2027 0.00 0.00 202.39 0.00 -101.22 -2.83 -104.05 -98.33 -2.58 0.00 0.00 0.00
Capital Expenditure (Deflated) 130.05 115.42 107.81 103.15 98.80 92.77 83.92
Operating Costs (Deflated) 674.85 362.04 272.26 231.67 200.89 166.98 130.17 Total 5,167.74 0.00 1,253.95 140.52 986.65 894.13 1,880.78 1,892.49 1,009.73 0.00 1,719.26 227.49

These cash flows include Barque and Clipper fields, plus Galleon tariff income
11/24 11/25b Rel. 12/21d Rel. 12/21b Rel.
SUMMARY
Premier
Consolidated The Beatrice field is located in Quadrant 11, approximately 100 km
northeast of Inverness in the Inner Moray Firth, in the UK Sector of the
5 North Sea. The field was discovered by Well 11/30-1 in 1976 which
2 encountered oil in Lower and Middle Jurassic sandstones.
Development of the field involving four steel platforms began in 1979
12/21c 4 with first production of oil in September 1981. The field is now in a
BP mature stage of production. Only the A platform is manned.
11/29 11/30b Rel. 11/30a BP 12/26 Mobil The current interests in the Beatrice field in per cent. are:-
Open
B BP Petroleum Development Ltd * 43.00
3 Deminex UK Oil and Gas Ltd 22.00
Kerr-McGee Oil (UK) plc 25.00
1 Hunt Oil (UK) Ltd 7.50
5 7
10 Hunt (NPI) 2.50
A
2
2 BEATRICE operator *
C,9 8

3
4

0 4 km
6

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties Beatrice is located centrally in the Inner Moray Firth Basin only 20
km from the coast, and as such is the only North Sea oil field whose
Oil Gravity (API) 39 platforms are visible from land. The field is the only one in the Inner
Gas/Oil Ratio (scf/stb) 126 Moray Firth. The nearest producing field is Claymore, also a Jurassic
Bubble Point Pressure, Pb (psig) 635 producer, 160 km distant. The Middle to Lower Jurassic sandstones that
Formation Volume Factor at Pi (rb/stb) 1.09 produce in the Beatrice field do not extend to the Outer Moray Firth,
Oil Compressibility (vol/vol/psi) 1.0 x 10-5 where production is from Upper to Middle Jurassic and Cretaceous
Original Reservoir Pressure, Pi (psig) 3030 sandstones.
At Datum Depth of (ft TVDSS) 6784
Reservoir Temperature (F) 178

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Carron Member, Orrin Fm.
Geological Age Lower, Middle Jurassic
Porosity Range (per cent.) 12-20
Permeability Range (md) 1-1000
Connate Water Saturation (per cent.) 6-12
Oil Water Contact (ft TVDSS) 6784
Depth to Top of Structure (ft TVDSS) 5950

Reserves

Total Oil Reserves (MMstb) 155


Est. Oil Production to 31.12.95 (MMstb) 144
Remaining Oil Reserves (MMstb) 11

Production

Water depth (feet) 151


Production Start Date September 1981
Peak Production (Oil) (stb/day) 54000 in 1985
Platform(s) 4 Steel jackets
Number of Wells - Producers 32 FIELD DESCRIPTION
Water Injectors 10
Gas Injectors Beatrice is a multi-layered faulted anticline with slight dip reversal.
Oil and NGL Export Pipeline to Nigg terminal The reservoirs occur within marine sandstones of the Lower to Middle
Gas Export Jurassic "Carron Member", "Brora Coal", "Orrin" and "Fleet"
Formations. Overall thickness averages 700 to 800 feet. Porosities and
permeabilities are generally moderate to good, with locally poorer
reservoir quality due to widespread quartz cementation.
The reservoirs contain a crude oil of paraffinic type, with a high wax
content, high pour point and low GOR. Consequently the system has
little natural energy and water injection is used to supplement the
primary reservoir energy. Down-hole electric pumps are used in the
production wells thus providing artificial lift. Production began from the
A platform in 1981 and from the B platform in May 1984. The field is now
at an advanced stage of decline.
STRATIGRAPHY AND STRUCTURE 11/25b 11/25a 12/21a

The Beatrice field is a multilayered reservoir with BEATRICE

UNITED KINGDOM
12/26
hydrocarbons being produced from sandstones of Lower TOP CARRON MEMBER
and Middle Jurassic age. The three principal reservoir DEPTH STRUCTURE

Beatrice
units are the "Carron Member", "Brora Coal Formation"
0 2 km
and "Orrin Formation".
The Beatrice structure is a faulted anticline with slight (Contours in feet TVDSS) B 3
dip reversal. It developed principally during the Late 65
00
Jurassic, although slight thinning of older units such as
the Triassic, may indicate some prior activity. Activity on
the Beatrice fault ceased during the Volgian and did not 11/30b 67
84
influence Early Cretaceous sedimentation. Late C
11/30a W 7
O
Paleocene uplift and erosion retilted the Beatrice 1
structure but did not initiate regrowth on the Beatrice 00
00 60
Fault. 5 65
The reservoir units are sealed by mudstones of the
A
"Brora Coal Formation" and "Uppat Formation" (Middle
and Middle to Upper Jurassic).

00
60
2

00
65
SEDIMENTOLOGY AND DEPOSITIONAL C
ENVIRONMENT

The Lower Jurassic "Fleet Formation" represents the


first phase of deposition under more humid and marine
conditions, following the cessation of continental
sedimentation during the Triassic. This coastal plain 11/30b
facies assemblage comprises fining-upwards, cross
laminated, locally current rippled and rootletted fluvial
(After Linsley, Potter, McNab, Racher, 1980)
sandstones interbedded with mudstones and, rarely,
coals. Minor developments of shallow marine sediments
may indicate localised marine incursion. The base of the
"Orrin Formation" marks the base of a major marine transgression with consequent subsidence and sedimentation resumed during the Bathonian with the deposition of
deposition of transgressive and nearshore bar shallow marine sandstones and alluvial plain sediments of the "Brora Coal Formation". These fluvial channel,
interbedded shelly, marine mudstones. A phase of shoreface progradation is channel margin and flood generated sandstones are interbedded with channel
represented by a coarsening upwards sequence of shelly, marine mudstones abandonment and interchannel mudstones and coals.
grading into locally burrowed, locally trough cross-laminated sandstones. These Subsequent transgression in the Callovian is reflected by the deposition of a
sediments are overlain by thinly bedded lagoon-associated sandstones and sequence of sharply bounded, locally oolitic nearshore bar and shallow marine sheet
mudstones and stacked, cross- laminated tidal /distributary channel sandstones. sandstones interbedded with mudstones, overlain by a coarsening upwards
The area was uplifted during the early part of the Middle Jurassic, and sequence of offshore mudstones and locally burrowed shoreface sandstones.

INTERPRETATIVE STRUCTURAL CROSS SECTION


Feet 11/30-1
NW SE
0

LOWER CRETACEOUS
2000

4000
Claymore Sandstone Member Heather Formation
Kimmeridge Clay Formation
6000

Uppat Formation
8000
up
bin Gro
Dunro
SIC
10000 TRIAS
Brora Coal Fm. 0 1 2 3 km
12000

REPRESENTATIVE WELL SECTION - 11/30-2


DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
ROCK
11/30-2 0
(API Units)
1.95
( g/cc )
2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER


150
UNIT NEUTRON
(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 5 25 45 -15
Py M 10000
Laterally extensive offshore marine mudstones.
M Py
Progradational sequence of offshore mudstones
U. CALLOVIAN-LWR. MOST

overlain by transition zone to middle/upper


6350

shoreface sandstones.
OXFORDIAN

Geometry
Elongate, lenticular sand body overlying
extensive mudstones.
HUMBER GROUP
" UPPAT FORMATION"
"CARRON MEMBER"

and K
6400

M
of sandstones moderate, K of sandstones
generally good, locally moderate.
LWR.-M. CALLOVIAN

Py Nearshore bar sandstones with interbar


S M marine mudstones.
6450

Geometry
Elongate, lenticular sand bodies interbedded
with mudstones of various lateral extent.
S and K
M and K generally very poor to poor, locally
S good.
Mudstones

Tidal/distributary channel sandstones.


SINEMURIAN-U. PLIENSBACHIAN

Geometry
Elongate, lenticular sandbody.
"DUNROBIN GROUP"

M M and K
and K moderate to good.
M M
"ORRIN FM."
6900

Shoreface and washover lobe sandstones


overlain by lagoon shoreface sandstones.
Geometry
Laterally extensive sheetlike sediment
body.
and K
6950

Generally moderate to poor, locally good.


M
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
11/30-6 11/30-2 11/30-5 11/30-1 11/30-7 11/30-3
10000

Uppat Fm.
Beatrice

Humber Group
Carron Mbr.
1000

Brora Coal Formation


100

PERMEABILITY (md.)
F

10

Orrin Formation
FAULTED OUT
1

Dunrobin Group
Fleet Formation
0.1

? 0.01
0 10 20 30

POROSITY (per cent.)


The "Carron Member" consists of shoreface and shallow marine sheet and bar
sandstones and is made up of two laterally extensive sandstone dominated layers (A and The primary controls on porosity and permeability are textural.
B), separated by a laterally extensive, mudstone dominated layer. The member ranges in Thus, both porosity and permeability increase with increased grain
thickness from 77 feet in the southwest of the block, to around 150 feet in the Beatrice field size and sorting and decreased detrital clay content. Superimposed
area. on these controls are the effects of diagenesis: principally
The "Brora Coal Formation" is a thick sequence of predominantly argillaceous compaction, quartz cementation and, to a lesser extent kaolinite
sediments, within which fluvial channel sandstones, which constitute the reservoir, form cementation.
vertically and horizontally isolated sandbodies. The formation ranges in thickness from 262 Porosities and permeabilities are generally less than 20 per cent.
to 392 feet. and 200 md respectively in the "Carron Member", although locally
The predominantly shoreface sandstones in the upper part of the "Orrin Formation" form permeabilities are significantly higher (up to 1000 md). Porosities
a laterally extensive sheet geometry sandbody, underlain by laterally extensive offshore and permeabilities of the "Fleet", "Orrin" and "Brora Coal"
marine mudstones. The lower part of the formation comprises interbedded thin, sheetlike Formations are generally less than 15 per cent. and less than 50 md
units of transgressive and nearshore bar sandstones and marine mudstones. Porosity and respectively, although permeabilities are locally significantly higher
permeability characteristics generally deteriorate towards the base of the formation. The (up to 900 md). The poorer reservoir quality of the "Fleet", "Orrin"
formation ranges in thickness from 240 to 305 feet, although it is absent due to faulting in and "Brora Coal" Formations is principally related to the abundant
Well 11/30-7. and widespread quartz cementation. Kaolinite is also significant in
Reservoir sandstones in the upper part of the "Fleet Formation" are relatively thin, the "Orrin" and "Brora Coal" Formations where it blocks intergranular
sheetlike units, separated by thin sheet geometry layers of mudstone and coal. pores and pore throats.

FLUID PROPERTIES

The Beatrice crude oil is light with a gravity of 39 degrees API. The oil has a wax content
of 17 per cent. and, as a result, a high pour point temperature of 24 degrees Centigrade.
The oil viscosity at reservoir conditions is 2.2 cp. The gas oil ratio of the oil is 126 scf/stb
and the bubble point pressure of the reservoir fluid is 635 psig. RESERVOIR PRESSURE

150 1.2 6 At initial conditions, the Beatrice field was normally pressured
GOR with an average gradient to surface of 0.45 psi/ft. RFT pressures
5 measured during field production show that the reservoir is
120
responding well to production with RFT pressures showing good
4 pressure continuity in zones 'A' and 'H' ("Carron Member" and "Orrin
GOR (scf/stb)

90 B0 Formation"). Poorer continuity is evident in the lower zones 'B', 'I'


B0 (rb/stb)

0 (cp)

1.1 3
and 'J', ("Carron Member", "Orrin" and "Fleet" Formations) which
have lower permeability and are of more variable quality.
60
0 2

30
1 5000

@ 178F
0 1.0 0
0 1500 3000 4500

PRESSURE (psig)

6000 0.39 psi/ft


DEPTH (feet TVDSS)

CONTROLS ON RECOVERY

Recovery in the Beatrice field is expected to be moderate to good. The principal


characteristics of the field affecting recovery are: OWC @ 6784 ft TVDSS
7000
Moderate well productivities necessitating the use of a relatively high development well
density.
0.45 psi/ft
Low primary reservoir energy which has been supplemented by water injection and use
of downhole pumps on production wells.
The good pressure continuity in zones 'A' and 'H' ("Carron Member" and "Orrin
Formation") indicates that a good sweep efficiency should be achieved in these zones.
Poorer continuity is evident in the lower zones 'B', 'I'and 'J' ("Carron Member", "Orrin" 8000
0 1000 2000 3000 4000
and "Fleet" Formations), which have lower permeability and are of more variable quality;
a lower recovery factor is expected in these zones. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

A B C

UNITED KINGDOM
Water Depth 151 151 165

Beatrice
(feet)
Platform Type twin steel steel jacket steel jacket
jackets-bridge
linked
Function drilling/prod./ drilling/ wellheads for
accom. accom. water injection

Jacket Weight 2300/2300 1500 515


(tonnes approx.)
Total Weight 12100/11300 6500 1350
(tonnes)

Accommodation 200 68 emergency only


(now unmanned)

Well Slots 32 12 4
Well Producers 22 8 2
Planned Injectors 8 2

(A Britoil Photograph)
PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput ------------------ 100000 -----------------


(bbl/day)

Oil Export 16" x 67 km 6" x 5.4km


pipeline to pipeline to
Nigg Beatrice A

FULL FIELD LIFE ECONOMIC INDICATORS Power is imported from the mainland through a submarine cable.
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 572.50 329.43 224.44 168.06 120.73 63.70 -3.24
Net Present Value (Deflated) 584.28 203.48 47.36 -34.23 -101.29 -179.87 -267.35
Profit/Inv Ratio 0.86 0.59 0.44 0.35 0.27 0.15 -0.01
Profit/Inv Ratio (Deflated) 0.38 0.15 0.04 -0.03 -0.09 -0.18 -0.30
NPV/Unit Oil Equiv. 3.70 3.41 3.00 2.64 2.21 1.45 -0.10 PRODUCTION PERFORMANCE
NPV/Unit Oil Equiv. (Deflated) 2.52 1.36 0.40 -0.34 -1.15 -2.50 -5.11 HISTORICAL AND PROJECTED
Payback Year 1985 60
Nominal Rate Of Return % 19.70
Real Rate Of Return % 9.11

Post Corporation Tax


Average Annual Daily Liquid Rate (Mbbl/day)
50
Net Present Value 324.85 176.02 107.60 70.06 38.18 -0.60 -46.43
Net Present Value (Deflated) 218.37 -25.43 -127.87 -181.66 -225.84 -277.27 -333.15
Profit/Inv Ratio 0.49 0.32 0.21 0.15 0.09 -0.00 -0.13
Profit/Inv Ratio (Deflated) 0.14 -0.02 -0.11 -0.16 -0.21 -0.27 -0.37 40
NPV/Unit Oil Equiv. 2.10 1.82 1.44 1.10 0.70 -0.01 -1.48
NPV/Unit Oil Equiv. (Deflated) 0.94 -0.17 -1.08 -1.78 -2.56 -3.86 -6.37

Nominal Rate Of Return % 14.95 30


Real Rate Of Return % 4.37

Earnings Data

Gross Revenue 2,300.59 1,498.06 1,187.18 1,025.43 891.14 729.36 534.69 20


Royalty 160.63 107.77 85.89 74.22 64.40 52.44 37.91
Petroleum Revenue Tax 58.21 45.92 39.10 35.04 31.38 26.62 20.33
Corporation Tax 247.65 153.41 116.84 98.00 82.55 64.30 43.19
Capital Expenditure 665.00 557.92 506.20 475.86 448.33 411.61 360.36 10
Operating Costs 832.75 447.85 323.48 264.84 219.47 168.95 114.35

Gross Revenue (Deflated) 3,604.52 2,426.50 1,953.74 1,703.23 1,492.55 1,235.12 919.36
Royalty (Deflated) 257.05 174.24 139.81 121.36 105.76 86.65 63.22 0
Petroleum Revenue Tax (Deflated) 107.63 81.53 68.72 61.34 54.80 46.38 35.39
Corporation Tax (Deflated) 365.91 228.91 175.23 147.43 124.55 97.40 65.80 1980 1985 1990 1995 2000
Capital Expenditure (Deflated) 1,551.43 1,325.41 1,214.55 1,148.90 1,088.94 1,008.28 894.29
Operating Costs (Deflated) 1,081.50 623.76 467.40 391.26 330.89 261.76 184.00 Year

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
ECONOMIC INDICATORS FROM 1/1/1996 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1978 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -309.1 0.0 0.0 0.0
1979 0.0 0.0 0.0 100.0 0.0 0.0 0.0 -100.0 -1,056.5 0.0 0.0 0.0
Pre Corporation Tax 1980 0.0 0.0 0.0 180.0 0.0 0.0 0.0 -180.0 -1,553.4 0.0 0.0 0.0
1981 26.9 0.0 7.5 125.0 0.0 0.0 0.0 -105.6 -716.2 4.0 0.0 0.0
Net Present Value -75.08 -60.08 -52.82 -48.56 -44.71 -39.61 -32.57 1982 194.4 3.3 40.0 65.0 0.0 0.0 13.6 75.7 424.8 28.0 0.0 0.0
Net Present Value (Deflated) -63.94 -51.15 -44.96 -41.33 -38.04 -33.69 -27.69 1983 233.0 17.3 40.0 75.0 14.5 0.0 33.0 85.1 406.9 32.0 0.0 0.0
NPV/Unit Oil Equiv. -7.09 -6.21 -5.74 -5.45 -5.18 -4.80 -4.23 1984 401.2 29.6 42.0 50.0 29.9 0.0 59.5 249.7 1,057.8 48.0 0.0 0.0
1985 418.8 40.9 44.0 20.0 19.9 15.6 76.5 278.4 1,039.2 54.0 0.0 0.0
Post Corporation Tax 1986 158.8 25.8 46.0 15.0 15.5 111.6 152.8 -55.0 -179.4 44.0 0.0 0.0
1987 144.0 8.8 48.0 5.0 2.2 34.3 45.3 45.7 133.4 35.0 0.0 0.0
Net Present Value -74.24 -59.29 -52.04 -47.80 -43.96 -38.87 -31.86 1988 93.1 5.0 50.0 5.0 -33.3 28.4 0.1 38.1 100.5 30.0 0.0 0.0
Net Present Value (Deflated) -63.12 -50.37 -44.19 -40.57 -37.30 -32.96 -26.99 1989 105.4 4.3 50.0 0.0 7.4 11.5 23.2 32.2 73.7 26.0 0.0 0.0
NPV/Unit Oil Equiv. -7.01 -6.12 -5.65 -5.36 -5.09 -4.71 -4.14 1990 120.4 8.4 47.5 0.0 10.6 13.1 32.2 40.8 80.3 25.0 0.0 0.0
1991 87.6 8.2 45.1 0.0 2.1 16.4 26.7 15.9 26.4 21.0 0.0 0.0
Earnings Data 1992 59.7 5.2 42.9 0.0 0.0 11.1 16.3 0.5 0.8 15.0 0.0 0.0
1993 53.8 3.6 40.7 0.0 0.0 3.6 7.3 5.9 7.6 13.0 0.0 0.0
Gross Revenue 125.53 114.46 108.66 105.09 101.75 97.10 90.22 1994 41.5 2.8 37.5 0.0 0.0 2.7 5.5 -1.6 -1.9 11.0 0.0 0.0
Royalty -4.58 -2.91 -2.13 -1.68 -1.28 -0.77 -0.08 1995 36.2 2.0 35.6 0.0 0.0 0.2 2.2 -1.6 -1.7 9.4 0.0 0.0
Petroleum Revenue Tax -10.74 -8.62 -7.59 -6.99 -6.45 -5.72 -4.73 Total To Start Of Discounting ( 1/JAN/1996)
Corporation Tax -0.84 -0.80 -0.78 -0.76 -0.75 -0.73 -0.71 2,175.1 165.2 616.8 665.0 68.9 248.5 494.1 399.1 -466.8 144.3 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs 215.92 186.07 171.20 162.33 154.19 143.20 127.59 1996 34.0 1.8 32.1 0.0 0.0 -0.7 1.2 0.8 0.8 8.5 0.0 0.0
1997 32.7 1.8 30.0 0.0 0.0 -0.2 1.7 1.0 0.9 7.6 0.0 0.0
Gross Revenue (Deflated) 118.80 108.57 103.21 99.91 96.82 92.51 86.13 1998 30.4 1.8 28.1 0.0 0.0 0.1 1.9 0.4 0.3 6.8 0.0 0.0
Royalty (Deflated) -3.26 -1.89 -1.24 -0.87 -0.55 -0.12 0.44 1999 28.4 1.6 26.3 0.0 0.0 0.1 1.7 0.3 0.2 6.1 0.0 0.0
Petroleum Revenue Tax (Deflated) -9.17 -7.36 -6.48 -5.97 -5.51 -4.89 -4.04 Remain
Corporation Tax (Deflated) -0.82 -0.78 -0.76 -0.75 -0.74 -0.72 -0.70 2000 0.0 -11.6 99.4 0.0 -10.7 -0.2 -22.6 -76.8 -46.4 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 195.17 168.97 155.89 148.08 140.91 131.21 117.41 Total 125.5 -4.6 215.9 0.0 -10.7 -0.8 -16.2 -74.2 -44.2 10.6 0.0 0.0

These cash flows include Beatrice field only


9/12b Conoco 9/13d Mobil 54 16
40 9/14a Total
SUMMARY
LINNHE
The Beryl field is located in Quadrant 9, approximately 350 km
10
northeast of Aberdeen, in the UK Sector of the northern North Sea. The
9 Beryl A accumulation was discovered in 1972 by Well 9/13-1
9/12a 11 3,3A 29 22
Amerada encountering oil and gas in Jurassic and Triassic sandstones of the
7 12 14A Beryl and Skagerrak Formations. Subsequently the Beryl B
B accumulation and the Ness field were discovered by Wells 9/13-7 and
15 9A
13 3,3RE 9/13b-28 in 1975 and 1986 respectively.
19
47 50BERYL B Development of Beryl A began in 1973 and first oil production was
25
13b
33
achieved in June 1976. First production from the B accumulation was in
30,32,34 20B July 1984 and from the Ness field in August 1987. Linnhe, a small oil
53 17 TAY
8
23
6A,6 26
field to the north of Beryl started up in October 1989 and ceased
2
production in December 1991 due to disappointing performance. It has
A 9/14b BP
NESS 9/13b 52 5 since been abandoned. Nevis, first discovered by Well 9/13a-4 in 1974,
1 will start production after 1996.
28,31,46 Mobil A BERYL A
Ninety per cent. of Beryl's gas reserves have been contracted to
5 18,27,39 British Gas. First delivery of gas started in October 1992 via the SAGE
36,37 8 16 1
2 pipeline to the St. Fergus terminal. The Beryl group and the Brae group
1 4
each have a 50% share in the SAGE pipeline.
NEVIS 4
KATRINE 24 The current interests in the Beryl and Ness fields in per cent. are:-
9/13c
9/13a Mobil 5 Mobil
Mobil North Sea Ltd * 45.00
9/17a Mobil 9/18a 9/19 Conoco
Amerada Hess Ltd 20.00
6 1 Enterprise Oil plc 20.00
BUCKLAND OMV 5.00
5
2 British Gas 10.00
9/17b Fina 9/18d Rel. 9/18c 0 4 km
6 3,3A 7
Kerr
McGee operator *

LOCAL SETTING

The Beryl field is located on the edge of the South Viking Graben,
separated from it by a horst-like continuation of the Crawford Spur.
Hydrocarbon types vary considerably in the Beryl area. While Beryl
itself contains black oil with a high gas oil ratio, the Bruce field to the
north contains gas condensate, as does Heimdal to the east in
RESERVOIR CHARACTERISTICS Quadrant 25 of the Norwegian sector. To the northeast lies the Frigg gas
field, straddling the median line in Quadrant 10 of the UK Sector and
Fluid Properties Quadrant 25 of the Norwegian Sector. To the south are located the
BERYL A BERYL B Gryphon and Harding oil fields.
Oil Gravity (API) ----------------------------- 36 -----------------------------
Gas/Oil Ratio (scf/stb) ----------------------- 700-1300 -----------------------
Bubble Point Pressure, Pb (psig) ---------------------- 3000-4000 ----------------------
Formation Volume Factor at Pi (rb/stb) ----------------------- 1.40-1.71 -----------------------
Oil compressibility (vol/vol/psi) ----------------------- 15 x 10-6 ------------------------
Original Reservoir Pressure, Pi (psig) --------------------------- 4900 --------------------------- FIELD DESCRIPTION
At Datum Depth of (ft TVDSS) -------------------------- 10500 --------------------------
Reservoir Temperature (F) ---------------------------- 220 ---------------------------- The Beryl group of fields comprises a series of steeply dipping tilted
fault blocks. The reservoirs occur within marine sandstones which
Rock Properties grade from the Triassic/Jurassic Skagerrak Formation through the
Jurassic Beryl Formation layers. Average thickness is some 300 feet.
Rock Type ---------------------- Sandstone ---------------------- Porosities and permeabilities vary widely from moderate in the Triassic
Stratigraphic Unit ------- Beryl & Statfjord Formations ------- sandstones to good in the Jurassic Beryl C Formation. Diagenetic
Geological Age --------------- Jurassic & Triassic --------------- effects have reduced the porosities and permeabilities in Beryl A as
Porosity Range (per cent.) -------------------------- 10-23 -------------------------- compared with Beryl B.
Permeability Range (md) ------------------------ 10-1000 ------------------------ Beryl A and Beryl B are each being developed using both water and
Connate Water Saturation (per cent.) -------------------------- 12-20 -------------------------- gas injection. Beryl B has a primary gas cap whilst a secondary gas cap
Gas Oil Contact (ft TVDSS) ------------------------- 110880 ------------------------- has now formed in Beryl A. The reservoirs have generally high dips and
Oil Water Contact (ft TVDSS) -------- 11500 (East), 11300 (West) -------- contain black oils with varying degrees of undersaturation and high gas
Depth to Top of Structure (ft TVDSS) -------------------------- 10000 --------------------------
oil ratios. This combination favoured recovery by gas injection but with
the beginning of sales gas exports in October 1992, water injection is
Reserves now paramount although some gas is still re-injected.
A riser tower has been installed close to Beryl A platform to provide
Beryl Ness Linnhe
a more efficient service for gas export. This facility will also be able to
Total Oil Reserves (MMstb) 900 30 1
deal with gas from other neighbouring fields such as Nevis. The small
Total NGL Reserves (MMstb) 100 -- --
Ness field lies to the west of the main Beryl field. The Ness field,
Total Gas Reserves (Bcf) 1400 -- --
producing from the Beryl Jurassic reservoir, is tied back to Beryl B and
Est. Oil Production to 31.12.95 (MMstb) 637 28 1
has estimated recoverable reserves of 30 MMbbl of oil and 15 Bcf of
Est. NGL Production to 31.12.95 (MMstb) 31 -- -- gas. The Nevis accumulation, which contains oil and gas in the Heather,
Est. Gas Production to 31.12.95 (Bcf) 430 -- -- Beryl and Triassic Skagerrak Formations, received development
Remaining Oil Reserves (MMstb) 263 2 0 approval in September 1995 and first oil is planned for October 1996.
Remaining NGL Reserves (MMstb) 69 -- -- The development will be phased with the first phase comprising two
Remaining Gas Reserves (Bcf) 970 -- -- subsea wells tied back 7 kms to processing facilities on the Beryl Alpha
platform. It is thought to have recoverable reserves of 30 MMbbl of oil,
Production 150 Bcf of gas and 10 MMbbl of condensate.
The Buckland accumulation is located 8 km to the south of Beryl A
Water depth (feet) 390 390 and may be a candidate for development by means of a subsea
Production Start Date June 1976 July 1984 completion tied back to Beryl B. Four to six wells will be required to
Peak Production (Oil and NGL) (stb/day) 112000 57000 develop the discovery, with water injection used to enhance recovery.
Platform(s) 1 Concrete gravity + 1 Steel Jacket There are no plans for development until the end of the century.
1 riser + 3 subsea satellites Tay, a Triassic structure to the East of Beryl, has been developed by
Number of Wells - Producers 26 15 extended reach drilled from the Beryl Alpha platform. The prospect has
Water Injectors 3 5 been targeted since 1995 with other appraisal wells expected to the
Gas Injectors 3 1 east.
Oil Export ----------------- Tanker loading ------------------ The small Katrine discovery to the southwest may be brought
Gas and NGL Export ------ SAGE pipeline to St. Fergus -------- onstream in the next few years.
STRATIGRAPHY AND STRUCTURE
BERYL 120
00

The reservoir rocks in the Beryl fields comprise sandstones of the Callovian Beryl TOP MID-JURASSIC

UNITED KINGDOM
D Formation, Bathonian Beryl C Formation, Hettangian-Pliensbachian Beryl A -TRIASSIC 9/13d

Beryl Area
Formation and Triassic Skagerrak Formation. Sandstones and mudstones of the DEPTH STRUCTURE

130
B10
Triassic Group form the stratigraphically lowest reservoir rocks. They are commonly

00
22
truncated but in places pass conformably into the Lower Jurassic sandstones of the 0 2 km
0
00 7
Beryl A Formation. 11

00
(Contours in feet TVDSS)
B5
Laterally persistent marine mudstones of Toarcian age, termed the Beryl B

110
Formation, separate the reservoir rocks of the Beryl A Formation from the main B3
B
Middle Jurassic reservoir sandstones (Beryl C Formation). An important phase of
0
Bajocian erosion is marked by a truncation surface at the top of the Beryl B 15
00
13
Formation. 10
WEST FLANK
00 EAST FLANK
An erosional surface is locally developed at the top of the Bathonian Beryl C 0

10000
Formation and separates the sediments of Beryl C from the Callovian marine
sandstones of the Beryl D Formation. Beryl C Formation rocks are onlapped by the 950
0
Beryl D Formation which locally rests on sediments as old as Triassic.

0
1100

12
A major erosional phase corresponds to the late Kimmerian uncomformity and

00
0
causes Cretaceous Shetland Group sediments to overlie truncated Triassic NESS 9/14a
sandstones/ mudstones in crestal areas. Elsewhere Heather or Kimmeridge Clay

10000
9/14b
Formation mudstones form the seal.
The structural framework of the area comprises a broad, faulted terrace termed 28A
the Beryl Embayment, separated from the South Viking Graben by a horst-like 9/13b 1
northerly continuation of the Crawford Spur. The closures comprise a series of A 0
00
17
relatively steeply dipping tilted fault blocks draped by sealing Jurassic or Cretaceous

11
mudstones.

00
9000
WEST FLANK

0
EAST FLANK 0
00
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT NEVIS 18 HORST 16
KATRINE
The oldest reservoir sandstones in the Beryl area are assigned to the Triassic
Skagerrak Formation. This formation comprises fining upwards and minor 4
coarsening upwards sandstones representing fluvial channel and overbank

120
35

0
sequences. High sinuosity channels are expected to occur in the axial portions of the

1000

00
00

11
basin, probably formed by flow towards the northeast. Major coarsening upward

1100
9/12a 9/13a 9/13c
units of bioturbated sandstones with shell fragments are interpreted as prograding

0
9/17a 9/18a 9/19
lake shoreline sediments, capped by planar laminated, sheetflood sandstones.
These interbedded mudstones commonly contain caliche horizons.
(After Robertson G, 1992)
The lower part of Beryl A comprises fining and coarsening upwards sandstones
representing fluvial channel, levee and crevasse splay sandstones with evidence of
rootlet penetration. The upper part, consisting of coarsening upward sandstones and coals and separated by lagoonal mudstones. They include minor fining upward
a glauconitic horizon, may represent coastal alluvial fan sediments overlain by a distributary channel sands.
marine omission surface and shoreline/shallow marine sandstones. Units 3 and 4 comprise major lagoonal delta sequences composed of coarsening
Beryl B marine mudstones form a laterally extensive unit between the Beryl A and upwards mouth bar and delta shoreline sands cut by fining upward distributary
C reservoir sandstones, although the unit may be absent in crestal areas of fault channel sands. These are separated by mudstones with brackish and fluctuating
blocks. Beryl C is subdivided into four stratigraphic units. The lower two units salinity palynofloras. Beryl D, the uppermost reservoir unit, is a relatively fine
comprise repeated coarsening upward lagoon/delta shoreline sandstones capped by grained, argillaceous shallow marine sandstone.

INTERPRETATIVE STRUCTURAL CROSS SECTION


Feet
9/13-11 9/13-3A 9/13-7 9/13-12 9/13-14A
WNW ESE
0
Frigg Equivalent

4000 Balder Formation Sand Unit


JURASSIC Maureen Formation
Heimdal Formation Lista Formation
8000
Valhall Fm. Heather Formation Beryl D Shetland Group Kimmeridge
Old Red
Kim. Clay Fm. Clay Fm.
Sandstone Heather Formation TRIASSIC
12000 Beryl C Beryl A Beryl B JURASSIC
TRIASSIC Beryl D

16000
0 1 2 3 km

9/13-12 REPRESENTATIVE WELL SECTION - 9/13-12


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER


150 UNIT NEUTRON
VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


S Shallow marine sheet sandstone.
BERYL D

M
Geometry
S Laterally extensive sheet.
S Gl and K
moderate to poor, K very poor, locally poor.
M
Lagoon shoreline and probable distributary
LWR CALLOVIAN
HUMBER GRP.

S Py channel complex sediments.


M
Geometry
Laterally persistent sheet sand with thin
argillaceous horizons.
M
11200

and K
M generally moderate to good, K generally
good to very good.
M Argillaceous horizons form relatively low
permeability layers.
UPPER BAJOCIAN LOWER BATHONIAN
FLADEN GROUP

(
) Py Lagoon/bay mudstones with thin storm
BERYL C

emplaced sandstones overlying probable


11300

( lagoon delta mouth bar complex


) sandstones
Geometry
Sheet sandstones with thin laterally
impersistent mudstones, overlain by
laterally persistent mudstones with thin
sheet and lenticular sandstones.
and K
of sandstones good to moderate in
Py
lower part, generally moderate to poor in
upper part. K of sandstones good to very
good in lower part, moderate to poor and
M locally very poor in upper part. Mudstones
M in upper part likely to restrict vertical flow.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
9/13a-7 9/13a-12
9/13d-3A
10000

Beryl Area
9/13d-13
9/13a-14
Beryl D
Heather Kimmeridge
Formation Clay Fm.

1000
4
Beryl C(4) TRIASSIC

100
2

TRIASSIC

PERMEABILITY (md.)
Beryl C(3)

10

Beryl C(2)
Beryl B

1
The lithostratigraphic
units previously described
correspond to reservoir zones. The Triassic
reservoir sandstones form sheetlike to lobate Beryl C(1)
and elongate, lenticular sandbodies which may 0.1
locally be stacked and coalesced to form thicker,
sheetlike units. Sand-shale ratios are commonly
low and interbedded mudstones may therefore form
Beryl B
laterally extensive permeability barriers. The sediments
in the lower part of Beryl A have similar geometries to 0.01
those of the Triassic. The glauconitic horizon at the top 0 10 20 30
of this unit may act as a restriction to vertical flow. The POROSITY (per cent.)
upper part of Beryl A is likely to consist of a sheetlike
sediment body. Both parts of Beryl A thicken towards the east.
Beryl B mudstones form a laterally persistent vertical permeability barrier. The occurrence of hydrocarbons in diverse Jurassic and Triassic
Reservoir zonation in the Beryl C main reservoir sand is based on the recognition of reservoirs in the Beryl field gives rise to very large variations in
regressive sandbodies, separated by mudstones. However, due to variable onlap onto porosity and permeability.
synsedimentary tilted fault blocks and variable amounts of truncation, correlation of sand The Triassic Skagerrak Formation has the lowest matrix
sequences may be difficult. The Beryl C Formation has been subdivided into four reservoir porosities and permeabilities but locally there is enhancement
units. Units 1 and 2 comprise elongate, lenticular and sheetlike to lobate sandbodies with caused by fracturing. The Beryl C Formation has the best properties
interbedded sheetlike to lobate mudstones. The broad, elongate, lenticular and lobate to with typical properties being 20-23 per cent. porosity and 500-2000
sheetlike sandbodies in Units 3 and 4 are commonly stacked and coalesced to form a md permeability. The other units are generally poorer with typical
thicker, sheetlike unit including thin mudstones. porosities and permeabilities of 16 per cent. and 400 to 500 md in
Beryl D consists of a laterally extensive, sheetlike sandbody of up to 110 feet in Beryl A and 22 to 23 per cent. and 500 to 1000 md in Beryl B. This
thickness, but the fine grained, argillaceous sediments have poor reservoir quality. variation reflects primary petrophysical characteristics related to
facies distribution.
Primary reservoir characteristics in the Triassic sandstones have
FLUID PROPERTIES been strongly overprinted by diagenetic cements and clays. The
major secondary controls on reservoir quality are moderate to
The Beryl field contains a saturated black oil which in Beryl B is in contact with a primary severe compaction, common dolomite cement, tangentially
gas cap. Gas oil ratios are highest in the Upper Beryl (1300 scf/stb) but decline to 700 orientated grain-coating clays which reduce pore throat dimensions,
scf/stb in the deeper reservoirs. The producing gas oil ratio was initially around 1300 scf/stb and patchy calcite. The centres of pores and pore throats are free of
in the Upper Beryl but had increased to around 2000 scf/stb by 1984 as the reservoir clays, and so moderate to good permeabilities (up to 200 md) are
pressure fell below the bubble point. maintained when porosities are moderate (10 to 15 per cent). Pores
are however locally occluded by dead oil or bitumen which behaves
2.1
like an intergranular cement.
1.8 Ferroan dolomite cementation is locally important in Beryl B.
1500 2.0
1.6
1.9 GOR

1.8 1.4
B0
GOR (scf/stb)

1.7
1000 1.2
B0 (rb/stb)

1.6
0 (cp)

1.0
1.5
1.4 0.8
500
1.3
0.6 RESERVOIR PRESSURE
1.2
0
0.4
1.1 Based on a water pressure gradient to surface of 0.45 psi/ft, the
@ 220F
0 1.0 0.2 Beryl field is normally pressured.
0 1000 2000 3000 4000 5000 6000 7000

PRESSURE (psig)
9000

CONTROLS ON RECOVERY Beryl B


0.05 psi/ft
The overall recovery in the Beryl field is expected to be good with good to very good 10000

recovery from the Upper Beryl but only poor to moderate recovery from the lower reservoirs
as a result of:
DEPTH (feet TVDSS)

excellent reservoir properties in the Upper Beryl 11000


GOC @ 10880 ft TVDSS
poorer porosities and permeabilities in the lower reservoirs 0.28 psi/ft

reservoir sandstones have sheet geometries but tend to thin up structure and are OWC @ 11300 ft TVDSS
frequently truncated by erosion in the crestal areas
reservoir rocks have, in general, high structural relief and the formations have a high dip
angle 12000 0.45 psi/ft
good gravity segregation resulting from the high dip angle and the microscopic
properties of the reservoir rock leads to effective recovery in the Upper Beryl under both
gas and water injection
13000
The initiation of gas sales in 1992 has introduced a complexity in the reservoir
3000 5000 7000
management of the field; offtake strategy must now seek to sustain gas sales delivery at the
same time as maintaining oil production and enhancing ultimate oil reserves. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

BERYL A BERYL B

UNITED KINGDOM
Beryl Area
Water Depth 390 390
(feet)
Platform Type concrete gravity steel jacket steel jacket
Function drilling/production/ riser drilling/production/
accommodation/ tower accommodation
compression Gas exports

Jacket Weight 200000 5500 13250


(tonnes)
Total Weight 228000 6500 35050
(tonnes) + 300000 ballast

Accommodation 396 200

Well Slots 40 21
Wells 32 21
(+ 3 subsea) (+ 4 subsea)

(This is a Mobil Photograph) PROCESSING AND EXPORT SPECIFICATIONS

Throughput


@@@

Oil (bbl/day) 300000 (including B) 100000
Gas (MMscf/day) 150 130

Oil Export tanker loading 20" x 8 km pipeline


to Beryl A

Gas and NGL Export 30" x 340 km pipeline to St. Fergus

@@@




@
FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 150 400


Liquid
Net Present Value 3,298.53 1,491.38 985.42 763.56 599.84 426.03 248.72
Net Present Value (Deflated) 4,638.29 2,214.49 1,464.08 1,114.36 844.87 545.39 222.88 Gas

@@@


Profit/Inv Ratio 1.52 1.30 1.18 1.11 1.03 0.92 0.74

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


125
Profit/Inv Ratio (Deflated) 1.10 0.82 0.67 0.58 0.49 0.37 0.19
NPV/Unit Oil Equiv. 2.61 2.95 3.06 3.10 3.10 3.06 2.86 300
NPV/Unit Oil Equiv. (Deflated) 2.77 2.72 2.55 2.39 2.19 1.84 1.10

Payback Year 1979 100


Nominal Rate Of Return % 44.40
Real Rate Of Return % 26.02
Beryl only 200
Post Corporation Tax 75

@@@


Net Present Value 1,944.25 870.43 568.72 436.92 339.92 237.11 132.02
Net Present Value (Deflated) 2,647.83 1,188.79 738.00 528.03 366.16 186.00 -8.51
Profit/Inv Ratio 0.90 0.76 0.68 0.63 0.58 0.51 0.39 50
Profit/Inv Ratio (Deflated) 0.63 0.44 0.34 0.27 0.21 0.13 -0.01
NPV/Unit Oil Equiv. 1.54 1.72 1.77 1.77 1.76 1.70 1.52 100
NPV/Unit Oil Equiv. (Deflated) 1.58 1.46 1.29 1.13 0.95 0.63 -0.04

Nominal Rate Of Return % 37.17 25


Real Rate Of Return % 19.72

Earnings Data
0 0
Gross Revenue 16,231.85 6,543.30 4,208.65 3,242.40 2,553.48 1,846.21 1,152.80
1975 1980 1985 1990 1995 2000 2005 2010 2015
Royalty 1,369.20 582.51 380.18 294.40 232.41 168.03 104.19
Petroleum Revenue Tax 3,555.03 1,571.74 1,019.96 781.35 607.94 428.07 252.31
Year
Corporation Tax 1,354.28 620.95 416.71 326.65 259.92 188.92 116.70
Capital Expenditure 2,171.76 1,143.80 832.95 690.56 582.30 463.64 337.25
Operating Costs 5,633.58 1,623.03 888.79 626.69 458.07 303.04 171.25

Gross Revenue (Deflated) 21,502.72 10,521.71 7,413.55 6,011.78 4,950.69 3,788.31 2,546.84 CASH FLOW REPORT
Royalty (Deflated) 1,889.88 939.78 661.46 534.61 438.14 332.18 219.10
Petroleum Revenue Tax (Deflated) 4,933.75 2,389.05 1,630.40 1,286.97 1,028.65 750.00 462.80 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Corporation Tax (Deflated) 1,990.47 1,025.69 726.08 586.33 478.72 359.39 231.39 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Capital Expenditure (Deflated) 4,235.80 2,702.50 2,181.75 1,925.90 1,720.59 1,480.56 1,198.76 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Operating Costs (Deflated) 5,379.88 2,002.44 1,263.82 970.25 765.71 559.80 361.23
1973 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -362.2 0.0 0.0 0.0
1974 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -1,529.6 0.0 0.0 0.0
1975 0.0 0.0 0.0 100.0 0.0 0.0 0.0 -100.0 -2,618.3 0.0 0.0 0.0
1976 20.8 0.0 20.0 75.0 0.0 0.0 0.0 -74.2 -1,447.3 8.0 0.0 0.0
1977 205.4 7.6 25.0 30.0 0.0 0.0 7.6 142.8 2,212.4 62.0 0.0 0.0
1978 145.9 16.5 30.0 40.0 0.0 0.0 16.5 59.4 734.8 55.0 0.0 0.0
1979 342.8 24.3 35.0 40.0 0.0 0.0 24.3 243.5 2,572.5 96.1 0.0 0.0
1980 616.2 53.0 40.0 50.0 100.1 100.6 253.7 272.5 2,352.1 112.1 0.0 0.0
1981 655.2 71.4 50.0 125.0 231.5 115.3 418.2 -32.1 -217.4 97.4 0.0 0.0
1982 633.1 70.3 60.0 150.0 126.1 77.7 274.1 49.3 276.3 91.2 0.0 0.0
1983 573.8 63.0 70.0 125.0 198.1 72.8 333.8 35.0 167.6 78.8 0.0 0.0
1984 744.7 68.4 90.0 125.0 259.7 67.7 395.8 134.0 567.5 89.1 0.0 0.0
1985 788.0 80.7 100.0 75.0 328.4 91.6 500.7 112.4 419.5 101.6 0.0 0.0
1986 344.1 54.9 105.0 50.0 140.9 89.5 285.2 -96.2 -313.7 95.3 0.0 0.0
1987 415.9 29.5 112.0 100.0 96.7 32.3 158.5 45.4 132.6 101.1 0.0 0.0
1988 360.5 26.9 115.5 81.0 59.5 46.1 132.5 31.5 83.1 116.1 0.0 0.0
1989 454.6 27.5 118.0 58.0 106.8 41.9 176.2 102.4 234.5 112.1 0.0 0.0
1990 511.2 37.6 118.0 83.0 160.4 45.4 243.4 66.8 131.4 106.1 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1991 434.5 38.0 118.5 148.0 97.4 41.2 176.7 -8.7 -14.5 104.1 0.0 0.0
1992 481.7 37.1 121.7 190.0 88.9 39.3 165.3 4.8 6.9 115.7 52.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1993 697.8 52.4 152.5 85.0 251.8 39.4 343.6 116.7 151.6 129.4 384.0 0.0
1994 613.3 60.2 155.0 70.0 139.2 45.0 244.3 144.0 170.5 117.2 383.0 0.0
Pre Corporation Tax 1995 621.2 56.5 154.9 60.0 173.1 47.5 277.1 129.2 138.2 117.7 360.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value 987.14 863.11 790.32 745.46 703.96 648.00 570.02 9,660.7 875.9 1,791.1 1,920.0 2,558.5 993.1 4,427.5 1,318.3 3,848.5 695.7 430.3 0.0
Net Present Value (Deflated) 905.98 778.12 711.45 671.65 635.38 587.03 520.14
NPV/Unit Oil Equiv. 1.99 2.32 2.46 2.52 2.58 2.64 2.71 1996 581.3 55.5 151.8 60.0 161.5 48.5 265.5 104.0 100.0 106.0 321.5 3.0
1997 559.5 52.0 155.0 46.8 151.1 45.6 248.7 109.0 93.4 95.4 287.1 10.0
Post Corporation Tax 1998 521.7 48.4 158.4 43.3 136.7 43.8 229.0 91.0 69.4 85.9 256.4 7.0
1999 497.9 45.0 162.1 33.8 126.7 39.2 211.0 91.1 61.8 77.4 229.0 23.0
Net Present Value 625.95 573.45 532.34 505.22 479.27 443.28 391.72 2000 458.1 42.2 175.5 29.3 112.0 36.3 190.5 62.7 37.9 68.8 204.6 16.0
Net Present Value (Deflated) 598.14 526.18 484.67 459.10 435.39 403.31 358.23 2001 425.4 38.8 168.6 0.0 107.0 25.3 171.0 85.7 46.1 62.0 182.7 10.0
NPV/Unit Oil Equiv. 1.26 1.54 1.65 1.71 1.76 1.81 1.87 2002 396.9 35.4 173.8 0.0 94.9 25.5 155.9 67.3 32.2 56.0 163.2 7.0
2003 369.1 32.2 179.2 0.0 80.8 23.2 136.2 53.7 22.9 50.4 145.7 4.0
Earnings Data 2004 344.4 29.1 185.0 0.0 67.6 20.1 116.8 42.6 16.2 45.5 130.1 2.0
2005 320.6 26.2 189.7 0.0 55.3 17.0 98.5 32.4 10.9 41.0 116.2 0.0
Gross Revenue 6,571.18 4,700.04 3,976.61 3,599.33 3,284.67 2,902.24 2,432.09 2006 299.5 23.5 196.0 0.0 43.0 13.8 80.2 23.3 7.0 36.9 103.8 0.0
Royalty 493.26 382.27 334.01 307.43 284.46 255.49 218.22 2007 280.4 20.7 202.9 38.6 15.6 10.6 46.9 -8.0 -2.2 33.3 92.7 0.0
Petroleum Revenue Tax 996.55 882.44 810.13 764.74 722.39 664.96 584.57 2008 262.1 17.7 209.9 0.0 16.4 10.7 44.9 7.3 1.7 30.0 82.8 0.0
Corporation Tax 361.19 289.66 257.98 240.24 224.69 204.72 178.30 2009 245.5 15.2 217.4 0.0 9.1 1.9 26.2 1.8 0.4 27.1 73.9 0.0
Capital Expenditure 251.76 214.38 197.58 188.05 179.57 168.48 153.29 2010 229.5 13.4 203.6 0.0 6.6 -0.6 19.4 6.5 1.2 24.4 66.0 0.0
Operating Costs 3,842.48 2,357.84 1,844.57 1,593.66 1,394.30 1,165.32 906.00 2011 214.7 12.5 190.5 0.0 6.1 -0.1 18.5 5.6 0.9 22.0 59.0 0.0
2012 201.2 11.8 178.4 0.0 5.8 0.3 17.9 5.0 0.7 19.9 52.7 0.0
Gross Revenue (Deflated) 5,094.41 3,815.96 3,303.36 3,030.33 2,799.00 2,512.62 2,151.09 2013 187.8 11.0 167.0 0.0 5.2 0.6 16.9 4.0 0.5 17.9 47.0 0.0
Royalty (Deflated) 408.98 323.88 286.64 265.99 248.02 225.16 195.32 2014 175.5 10.2 156.2 0.0 4.8 0.8 15.8 3.5 0.4 16.1 42.0 0.0
Petroleum Revenue Tax (Deflated) 924.92 798.05 730.09 689.25 651.91 602.04 533.02 Remain
Corporation Tax (Deflated) 307.83 251.94 226.78 212.56 199.99 183.72 161.91 2015 0.0 -47.7 421.4 0.0 -209.8 -1.4 -258.9 -162.5 -17.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 225.16 195.52 181.83 173.93 166.84 157.44 144.33
Operating Costs (Deflated) 2,629.38 1,720.39 1,393.35 1,229.51 1,096.84 940.95 758.27 Total 6,571.2 493.3 3,842.5 251.8 996.5 361.2 1,851.0 625.9 484.7 334.3 969.6 29.9

These cash flows include Beryl A + B and Ness fields, plus Nevis tariff income
16/2b Fina 16/2a Marathon 16/3d Enterprise 15/2 SUMMARY
1 16/3a Marathon Amoco
0 5 km 1
EAST BRAE 2
The North Brae field is located in Quadrant 16, some 250 km
5
northeast of Aberdeen, in the UK Sector of the Northern North Sea. The
3
E. Prospect East Brae field is located some 15 km to the northeast. North Brae was
4,4A 7 discovered in 1975 by Well 16/7-1 encountering gas condensate in the
6
16/1 16/2c Jurassic Brae sandstones. Development of North Brae began in 1987
Kerr McGee Kerr McGee 16/3b Marathon with start of production through the Brae B platform in April 1988. East
16/6a 16/7a 11 16/8c Brae was discovered in 1980 by Well 16/3a-1 which also encountered
Conoco Marathon NORTH Marathon
gas condensate in the Brae Formation. East Brae started production in
16 30
BRAE 13 December 1993. Both fields have been developed under gas re-
SEDGEWICK 19 BEINN
18 5 injection schemes; gas sales have now commenced from North Brae.
14 B
3 2 1 The other major fields and discoveries in the area are Miller and
31 17 KINGFISHER Kingfisher, South Brae and Central Brae. These are discussed
2
4 WEST7 8,8a elsewhere in this volume.
BRAE 9 16/7b 9z
32 BP 28 4 1 Beinn, located in Middle Jurassic sandstones started production in
27 6,7 1994, and has been exploited via wells drilled directly from North Brae.
3 20 1 15/5 Norsk Hydro
29 Other minor discoveries such as Cairngorm (discovered with Well
22 MILLER
23 16/3a-11) and Braemar (located in Block 16/3c and 9/28b) exist in the
CENTRAL 15
24 A 12 Brae area, but no development plans exist for them at present. The
4,4A 6 Paleocene reservoir in West Brae (reserves estimated of around 15
BRAE 2
13 MMbbl) is expected to be developed in conjunction with Sedgwick (30
SOUTH 25 5,5d
A 21 3 MMbbl), involving either a subsea tie-back to North Brae or a floating
12 10 production vessel. Start up is not expected until 1997.
10 26
8
1 KM 16/8b 16/8a SELE The current interests in the North Brae and East Brae fields in per
11 33 7c Conoco Shell
cent. are:-
5 3 10 16/13a BP
12 2,2a
ENOCH 5 4 NORTH EAST
13
1 16/12a 16/13b
16/11a BP Lasmo 16/12b KM Phillips 3 4
Marathon Oil North Sea (GB) Ltd * 38.00 35.84
BP Petroleum Development Ltd 20.00 25.58
Bow Valley Exploration (UK) Ltd 14.00 13.28
Kerr McGee Corporation 8.00 7.46
British Gas plc 7.70 6.49
L.L.& E. (UK) Ltd 6.30 5.89
Sands Petroleum 4.00 3.82
British Borneo 2.00 1.64

operator *

RESERVOIR CHARACTERISTICS

Fluid Properties NORTH BRAE EAST BRAE

Condensate Gas Ratio (bbl/MMscf) 230


Dew Point Pressure, Pd (psig) 5500-6500
Original Reservoir Pressure, Pi (psig) 6850 c.7400 LOCAL SETTING
At Datum Depth of (ft TVDSS) 12450 c.13600
o
Reservoir Temperature ( F) 245 The North Brae field is located on the western edge of the South
Viking Graben just to the east of the Fladen Ground Spur. East Brae is
Rock Properties located to the northeast in a similar position on the edge of the South
Viking Graben. To the south are the oil-bearing South and Central Brae
Rock Type ---------------- Sandstone ---------------- fields. To the west is the West Brae discovery, with oil in both Paleocene
Stratigraphic Unit ---------------------- Brae --------------------- and Devonian sands. To the north of the East Brae field in Quadrant 9
Geological Age ------------------- Jurassic ------------------ is the Crawford field, a Triassic and Jurassic oil field which ceased
Porosity Range (per cent.) --------------10-25 (av. 15) --------------- production in December 1990. To the south is the Miller oil field, which
Permeability Range (md) 1-4000 1-1000 came on stream in June 1992.
Connate Water Saturation (per cent.) 14 10-20
Gas Water Contact (ft TVDSS) 12475
Depth to Top of Structure (ft TVDSS) 11830 13000

Reserves

NORTH BRAE EAST BRAE BEINN


Total Oil & NGLReserves (MMbbl) 155 250 25 FIELD DESCRIPTION
Total Gas Reserves (Bcf) 700 1280 200
Est. Oil & NGL Production to 31.12.95 (MMbbl) 134 55 8 The North and East Brae fields are contained in the north to
Est. Gas Production to 31.12.95 (Bcf) 95 0 28 northeast trending fault zone which forms the western margin of the
Remaining Oil & NGL Reserves (MMbbl) 21 195 17 South Viking Graben. The reservoir comprises three main facies types.
Remaining Gas Reserves (Bcf) 700 1280 200 The best of these is a sandstone of moderate porosity but good
permeability. The second facies type is a conglomerate of pebble to
boulder size particles cemented in sands. The third facies is the "tiger
Production stripe" which consists of thin laminations of sand and shale, of poor
porosity and permeability.
Water depth (feet) 326 381 The reservoirs contain gas condensate. The North Brae dry gas has
Production Start Date April 1988 December 1993 been re-injected and the liquids piped ashore via South Brae.
Production of condensate began in April 1988. Since the onset of gas
Peak Production (Oil and NGL) (stb/day) 78000 86000
sales in 1994, the remainder of the dry gas not needed for sales is
Platform(s) Steel jacket Steel jacket
recycled in the East Brae reservoir to maintain pressure.
Number of Wells - Producers 13 13
East Brae is being developed by gas cycling with additional gas
Gas Injectors 5 4
being injected from North Brae to maximise liquids recovery. Production
Oil and NGL Export Pipeline to South Brae Pipeline to
started in December 1993, with export via South Brae. First delivery of
South Brae sales gas from the Brae area started in October 1994 and is exported
Gas Export Sales gas via Initially re-injected from Beryl to St. Fergus via the "Scottish Area Gas Evacuation" (SAGE)
SAGE pipeline Sales gas via pipeline. Additional gas has been purchased from Tiffany, Toni and Birch
SAGE pipeline for injection into North Brae and subsequent sale. The Brae group and
the Beryl group each have a 50 per cent. share in the SAGE pipeline.
The Beinn gas condensate field, to the north-east of North Brae
came on stream in 1994 using wells drilled from the Brae B platform.
Appraisal and development of Beinn is ongoing. The Bracken prospect
which underlies North Brae is under appraisal.
16/7a STRUCTURE AND STRATIGRAPHY
12700

Brae North & East


In the North and East Brae fields, hydrocarbons are

UNITED KINGDOM
125

0
1310
00
contained in the Upper Jurassic conglomerates and
1290
0 sandstones of the Brae Formation. The sediments of the
Depositional Limit
12700 of Reservoir Brae Formation pass laterally into the mudstones of the
5 12500 Kimmeridge Clay Formation towards the axial regions of
12400 16
the South Viking Graben, and overlie shales of the
12300 Heather Formation. The "hot shales" of the upper part of
12200 the Kimmeridge Clay Formation cap the reservoir in both
19
12100 fields. The reservoir rocks are Kimmeridgian to Volgian in
12000 age. They represent a series of overlapping submarine
11900
fans which are genetically associated with the listric,
BRAE B
1 graben margin fault scarp systems to the west. Traps are
14
formed in these sediments by differential compaction of
4 75 the distal and lateral mudstone dominated sediments
12
C around proximal cones of conglomerate dominated

HW
0
17B 70 sediment. This combination of structural and stratigraphic
12 16/8a

0
trap is further complicated by faulting.

90
Reservoir Limit 16/8b

12
7
NORTH BRAE
BRAE FORMATION
DEPTH STRUCTURE
0 1 km

(Contours in feet TVDSS)

(Modified after Stephenson MA,1991)

SEDIMENTOLOGY AND DEPOSITIONAL INTERPRETATIVE STRUCTURAL CROSS SECTION


ENVIRONMENT
16/7a-5 16/7-1
Reservoir sequences in the North Brae field comprise WNW ESE
conglomerates (both clast and matrix supported), fine to coarse Feet
grained sandstones and interbedded fine grained sandstones 0
and mudstones.
The facies assemblage as a whole is indicative of a
Hordaland and Nordland Groups
submarine fan setting, sediment possibly being supplied via a 4000
small fan-delta located at the basin margin.
The East Brae field comprises similar sediments to North
Brae, but lacks the conglomerates. This sequence also 8000 PALEOCENE
represents submarine fan deposits. Shetland Group
The conglomerates and coarse sandstones with minor Cromer Knoll Group
12000
conglomerates represent depositional lobe and, commonly,
channelised sediments. The thinly interbedded sandstones and Brae and Kim. Clay Fms.
mudstones represent more distal, turbidite sediments, and/or
16000
those deposited in between channel-lobe sequences. JURASSIC and ?TRIASSIC

20000
DEVONIAN
and older

0 2 4 km

REPRESENTATIVE WELL SECTION - 16/7a-14


DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
0 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER


150 UNIT NEUTRON
16/7a-14 (PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15

Inner fan channel and lobe conglomerates


and minor sandstones.

Geometry
Major clastic wedge composed of linguoid,
clast supported conglomerate bodies and
more laterally persistent lobate, matrix
supported conglomerates and sandstones.

and K
generally moderate, locally poor. K
extremely variable, very poor to good.
12500
KIMMERIDGIAN?- VOLGIAN

BRAE FORMATION
HUMBER GROUP

Mid fan to inner fan channel and lobe


sandstones and conglomerates, with
interbedded turbidite sandstones and thin
mudstones in the upper part.

Geometry
Major clastic wedge composed of lobate
sandstones and conglomerates.
12600

and K
generally moderate, locally poor. K
variable, generally moderate to good,
becoming poor to very poor in the upper
part.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Brae North & East


16/7a-16
16/7a-5
10000

1 4 5

16/7a-19

1000

KIM. CLAY FM.


F F

16/7a-14

UPPER JURASSIC
100

HUMBER GROUP

PERMEABILITY (md.)
10

BRAE FORMATION
Old
Red 16/7a-7
Sand
-stone
T.D

T.D
1

?
2

0 0.1
3

200 feet Tiger Stripe


1. Valhall Formation
Sandstone
2. Heather Formation
0.01
3. Hugin Formation
4. Cromer Knoll Group 0 10 20 30
T.D
5. Lower Cretaceous
? POROSITY (per cent.)

Within the North and East Brae fields, reservoir Porosities within the Brae Formation are highly variable,
zonation is dependent on the recognition of depending on lithology and facies.
laterally extensive mudstone horizons that reflect The more thinly bedded sandstones within the mudstones are
periods of relative inactivity on the fan surface. generally tight due to extreme compaction and quartz cementation.
T.D
The resultant reservoir units form large, fan-like The clast-supported conglomerates contribute little porosity and
sediment bodies. permeability due to the predominance of non-reservoir tight
The conglomerate and coarse sandstones form sandstone, mudstone and other clasts.
elongate, linguoid sediment bodies, orientated The more thickly bedded sandstones have moderate porosities (8
approximately normal to graben margin faults. These sediment bodies are enveloped by the to 20 per cent.) and permeabilities (0.1 to 50 md). The major controls
thinly interlaminated sandstone and mudstone facies. They are, however, likely to coalesce on trends in porosity and permeability values are primary textural
close to the graben margin faults, and some may also coalesce in the mid-fan region. characteristics and hence facies. Good quality reservoir units exhibit
This should result in tortuous pressure communication through the entire system distal and lateral fining into the argillaceous facies, where diagenesis
although faulting may cause some compartmentalisation. has been particularly severe.

FLUID PROPERTIES
RESERVOIR PRESSURE
The North Brae field contains a rich gas condensate with a condensate gas ratio which
increases with depth up to 280 bbl/MMscf at the base of the reservoir. The reservoir fluid Based on a water pressure gradient to surface of 0.45 psi/ft, both
contains approximately 8 per cent. carbon dioxide. North and East Brae appear to be overpressured by about 1270 psi.
The East Brae field has a fluid gravity of 39-49 API and a gas oil ratio of 2,500-9,000
scf/bbl. The reservoir fluid contains approximately 4 to 6 per cent. carbon dioxide.

11800

7000
INITIAL RESERVOIR
CONDITIONS
6000 12000 North Brae

5000
PRESSURE (psig)

0.20 psi/ft
DEPTH (feet TVDSS)

4000 12200
40 25 10 0

3000
D
UI

2000
12400
Q
LI
%

1000 GWC @ 12475 ft TVDSS

0
12600
-400 -200 0 200 400 600 800 0.45 psi/ft
TEMPERATURE (F)
Lab Data
Simulated/extrapolated Data 12800
6700 6800 6900 7000

INITIAL RESERVOIR PRESSURE (psig)


CONTROLS ON RECOVERY

Condensate recovery is being maximised by re-injection of dry gas and the ultimate
liquid recovery will depend on the uniformity of the injected gas flood front. In the case of
North Brae, which is now at a mature stage of production, ultimate liquids reserves are
better defined from production performance. Early dry gas breakthrough due to reservoir
stratification and possible internal faulting occurred at North Brae and may occur at East
Brae, which is at an early stage of development. Liquid recovery in East Brae is being
optimised by initial completion of wells low on the structure where CGR values are highest.
Horizontal drilling has had some success in North Brae and may be considered for East
Brae.
FACILITIES SPECIFICATIONS

Brae North & East


NORTH BRAE EAST BRAE

UNITED KINGDOM
Water Depth 326 381
(feet)
Platform Type steel jacket steel jacket
Function drilling/production/ drilling/production/
accommodation accomodation

Jacket weight 18900 9308


(tonnes)
Total Weight 66540 35500
(tonnes)

Accommodation 240 160

Well slots 34 30
Wells 18 17

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 84000 120000


(bbl/day)

Oil Export 18"x12 km pipeline 18"x14.5 km pipeline


to South Brae to junction near
North Brae onward
to South Brae
Gas Export 18"x12 km 30"x 20 km spur
(A Marathon Photograph) pipeline to East to the SAGE

@
@@@@

Brae for injection pipeline

@@@@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 100 400


Liquid
Net Present Value 3,068.66 1,441.71 913.92 667.87 480.51 277.65 71.81
Gas
Net Present Value (Deflated) 2,187.70 1,002.82 610.28 425.28 283.39 128.68 -29.22

Average Annual Daily Gas Rate (MMscf/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 3.62 1.97 1.36 1.05 0.80 0.50 0.15
Profit/Inv Ratio (Deflated) 2.35 1.25 0.82 0.61 0.43 0.21 -0.05

@@@@


NPV/Unit Oil Equiv. 6.62 5.73 5.02 4.47 3.88 2.91 1.11 75 300
NPV/Unit Oil Equiv. (Deflated) 6.04 4.84 3.95 3.31 2.62 1.51 -0.49

Payback Year 1997


Nominal Rate Of Return % 22.85
Real Rate Of Return % 18.81
50 200
Post Corporation Tax

Net Present Value 2,056.00 952.56 586.54 414.02 281.72 137.47 -9.84
Net Present Value (Deflated) 1,463.95 641.47 363.93 232.01 130.34 19.06 -94.58
Profit/Inv Ratio 2.42 1.30 0.87 0.65 0.47 0.25 -0.02
Profit/Inv Ratio (Deflated) 1.57 0.80 0.49 0.33 0.20 0.03 -0.17
NPV/Unit Oil Equiv. 4.44 3.79 3.22 2.77 2.28 1.44 -0.15 25 100
NPV/Unit Oil Equiv. (Deflated) 4.04 3.10 2.36 1.80 1.20 0.22 -1.59

Nominal Rate Of Return % 19.55


Real Rate Of Return % 15.65

Earnings Data
0 0
Gross Revenue 7,362.24 3,739.12 2,609.75 2,090.05 1,695.81 1,267.46 822.03 1990 1995 2000 2005 2010 2015 2020
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 1,213.00 513.99 315.62 230.47 169.67 108.73 53.68 Year
Corporation Tax 1,012.66 489.15 327.38 253.84 198.79 140.18 81.65
Capital Expenditure 848.50 730.85 671.29 635.43 602.30 557.17 492.34
Operating Costs 2,232.08 1,052.57 708.93 556.28 443.33 323.90 204.20

Gross Revenue (Deflated) 5,457.71 2,929.37 2,108.40 1,721.22 1,421.94 1,089.42 731.92
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 780.91 335.72 207.89 152.63 112.96 72.94 36.44
Corporation Tax (Deflated) 723.74 361.35 246.36 193.27 153.04 109.62 65.35
Capital Expenditure (Deflated) 932.78 805.34 740.76 701.85 665.89 616.87 546.38
Operating Costs (Deflated) 1,556.33 785.49 549.46 441.46 359.71 270.93 178.33

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1990 0.0 0.0 0.0 40.0 0.0 0.0 0.0 -40.0 -78.7 0.0 0.0 0.0
1991 0.0 0.0 0.0 73.5 0.0 0.0 0.0 -73.5 -122.3 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1992 0.0 0.0 0.0 235.0 0.0 0.0 0.0 -235.0 -342.2 0.0 0.0 0.0
1993 1.2 0.0 8.2 350.0 0.0 0.0 0.0 -357.0 -463.8 0.3 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1994 245.0 0.0 57.6 150.0 0.0 0.0 0.0 37.4 44.3 65.0 0.0 0.0
1995 331.6 0.0 69.1 0.0 0.0 0.0 0.0 262.5 280.9 86.0 0.0 0.0
Pre Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
577.8 0.0 134.9 848.5 0.0 0.0 0.0 -405.6 -681.7 55.2 0.0 0.0
Net Present Value 3,474.24 2,448.71 2,040.85 1,826.20 1,646.60 1,428.27 1,161.63
Net Present Value (Deflated) 2,659.94 1,941.85 1,650.18 1,494.67 1,363.21 1,201.41 1,000.01 1996 301.5 0.0 63.2 0.0 0.0 0.0 0.0 238.3 229.3 75.3 0.0 0.0
NPV/Unit Oil Equiv. 8.51 8.77 8.89 8.95 9.00 9.07 9.14 1997 283.9 0.0 60.4 0.0 0.0 26.7 26.7 196.8 168.6 66.0 0.0 0.0
1998 258.6 0.0 58.0 0.0 0.0 53.3 53.3 147.3 112.3 57.8 0.0 0.0
Post Corporation Tax 1999 235.4 0.0 55.9 0.0 0.0 50.8 50.8 128.6 87.3 50.6 0.0 0.0
2000 321.0 0.0 79.9 0.0 0.0 47.7 47.7 193.4 116.8 44.3 120.0 0.0
Net Present Value 2,461.58 1,793.21 1,521.34 1,376.51 1,254.23 1,104.03 917.82 2001 318.2 0.0 82.2 0.0 0.0 70.9 70.9 165.1 88.7 38.8 133.0 0.0
Net Present Value (Deflated) 1,936.19 1,457.61 1,259.24 1,152.29 1,061.13 947.85 804.86 2002 399.2 0.0 104.7 0.0 26.0 71.4 97.4 197.1 94.3 34.0 230.0 0.0
NPV/Unit Oil Equiv. 6.03 6.42 6.63 6.75 6.86 7.01 7.22 2003 453.5 0.0 120.5 0.0 97.6 81.8 179.4 153.5 65.3 29.8 291.0 0.0
2004 490.3 0.0 132.1 0.0 121.3 69.0 190.3 167.9 63.6 26.1 329.0 0.0
Earnings Data 2005 516.7 0.0 141.2 0.0 128.5 74.8 203.3 172.2 58.1 22.8 353.0 0.0
2006 538.4 0.0 148.8 0.0 133.5 79.1 212.6 177.0 53.1 20.0 369.0 0.0
Gross Revenue 6,784.41 4,406.01 3,520.27 3,070.66 2,704.26 2,272.22 1,767.32 2007 555.9 0.0 155.8 0.0 136.8 82.7 219.5 180.7 48.3 17.5 379.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 474.8 0.0 138.7 0.0 109.3 85.6 194.9 141.2 33.6 15.3 306.1 0.0
Petroleum Revenue Tax 1,213.00 688.79 500.85 408.30 334.89 251.50 160.29 2009 406.1 0.0 124.4 0.0 133.7 76.1 209.8 71.9 15.2 13.4 247.2 0.0
Corporation Tax 1,012.66 655.51 519.51 449.70 392.38 324.24 243.81 2010 348.1 0.0 111.9 0.0 122.4 45.8 168.2 68.0 12.8 11.8 199.6 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2011 298.2 0.0 101.2 0.0 102.2 38.5 140.7 56.3 9.4 10.3 161.2 0.0
Operating Costs 2,097.18 1,268.50 978.58 836.16 722.76 592.44 445.39 2012 186.2 0.0 83.2 0.0 60.3 32.1 92.4 10.5 1.6 0.0 130.2 0.0
2013 156.4 0.0 76.6 0.0 42.0 16.7 58.8 21.0 2.8 0.0 105.1 0.0
Gross Revenue (Deflated) 4,856.46 3,296.16 2,699.20 2,391.25 2,137.18 1,833.09 1,469.61 2014 131.4 0.0 71.1 0.0 32.0 13.0 44.9 15.4 1.8 0.0 84.9 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2015 110.5 0.0 66.6 0.0 23.5 9.8 33.3 10.6 1.1 0.0 68.6 0.0
Petroleum Revenue Tax (Deflated) 780.91 449.90 329.90 270.40 222.96 168.71 108.79 Remain
Corporation Tax (Deflated) 723.74 484.24 390.94 342.38 302.08 253.56 195.15 2016 0.0 0.0 120.5 0.0 -56.1 -13.1 -69.2 -51.3 -4.8 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 1,415.61 904.41 719.13 626.19 551.01 462.97 360.80 Total 6784.4 0.0 2097.2 0.0 1213.0 1012.7 2225.7 2461.6 1259.2 194.8 1280.0 0.0

These cash flows include East Brae only


16/2b Ent. 16/2a Marathon 16/3d Enterprise 15/2 SUMMARY
1 16/3a Marathon Amoco
0 5 km 1
EAST BRAE The South and Central Brae fields are located in Quadrant 16, some
2 5
220 km northeast of Aberdeen in the UK Sector of the Northern North
3
E. Prospect Sea. South Brae was discovered in 1977 by Well 16/7a-8 which
4,4A 7 encountered oil in sands of Jurassic age. Development drilling
6
16/1 16/2c commenced in 1982 with first oil in July 1983. Production is via a single
Kerr McGee Kerr McGee 16/3b Marathon fixed platform with oil being pumped to Forties and thence to Cruden
16/6a 16/7a 11 16/8c Bay. The NGLs associated with this production are spiked into the oil
Conoco Marathon NORTH Marathon stream and any excess gas is piped to North Brae for injection. The
16 30
BRAE 13 Central Brae accumulation was discovered in 1976 by Well 16/7-3 and
SEDGEWICK 19 BEINN
18 5 is being produced as a subsea satellite to the South Brae platform.
14 B
3 2 1 The current interests in Block 16/7a in per cent. are:-
31 17 KINGFISHER
4 2 7 8,8a Marathon Oil North Sea (GB) Ltd * 38.00
9 16/7b 9z
BP 28 4 1 BP Petroleum Development Ltd 20.00
WEST 32
6,7 Bow Valley Exploration (UK) Ltd 14.00
BRAE 27, 20 1 15/5 Norsk Hydro
3 29 Kerr McGee Corporation 8.00
22 MILLER
23 British Gas plc 7.70
CENTRAL 15
24 A 12 L.L & E. (UK) Ltd 6.30
4,4A 6 Sands Petroleum 4.00
BRAE 2
13 British Borneo 2.00
SOUTH 25 5,5d
A 21 3
12 10 operator *
10 26
8
1 KM 16/8b 16/8a SELE
11 33 7c Conoco Shell
5 3 10 16/13a BP
12 2,2a
ENOCH 5 4
13
1 16/12a 16/13b 4 LOCAL SETTING
16/11a BP Lasmo 16/12b KM Phillips 3

The South and Central Brae fields are located in Block 16/7a on the
western margin of the South Viking Graben in the Northern North Sea.
The reservoir section comprises conglomerates and sandstones of the
Jurassic (Oxfordian-Volgian) Brae Formation of Jurassic age. There are
a further three fields in the Brae group, the South Brae field being the
most southerly. The North and West Brae fields are both in Block 16/7a
whereas the East Brae field is north northeast of South Brae and
straddles Blocks 16/3a and 16/3b. North Brae and East Brae are
discussed elsewhere in this volume. All the fields are distinct from each
other and all except West Brae have the same geological setting. West
Brae has oil and gas in reservoirs of Paleocene age with production
RESERVOIR CHARACTERISTICS start up anticipated for 1997. The Miller field is located to the east of
South Brae and contains oil in a reservoir section of similar age to that
Fluid Properties SOUTH BRAE CENTRAL BRAE of South Brae.
The North and East Brae fields contain rich gas condensate whilst
Oil Gravity (API) 33 33 South and Central Brae and Miller are oil fields.
Gas/Oil Ratio (scf/stb) 1343 1415
Bubble Point Pressure, Pb (psig) 3702 4100
Formation Volume Factor at Pi (rb/stb) 1.733 1.77
Oil Compressibility (vol/vol/psi) 16.5 x 10-6
Original Reservoir Pressure, Pi (psig) 7114 7043 FIELD DESCRIPTION
At Datum Depth of (ft TVDSS) 12740 12600
Reservoir Temperature (F) 240 246 The South and Central Brae fields comprise a number of overlapping
submarine fans controlled by a graben-margin fault scarp and
Rock Properties
associated marginal uplift zone. The Brae Formation in the area is
Kimmeridgian to mid-Volgian in age. The reservoir consists of three
Rock Type Sandstone main facies types, the best of which, from a reservoir quality standpoint,
Stratigraphic Unit Brae is represented by moderate porosity, relatively high permeability and
Geological Age Jurassic poorly sorted clean sandstones. The second facies type represents a
Porosity Range (per cent.) 8-18 (av. 11.5) poorer reservoir environment consisting of conglomerates comprising
Permeability Range (md) 2-500 1-1000 non-permeable pebble to boulder sized particles cemented in moderate
Connate Water Saturation (per cent.) 14 20 quality sands. The third facies type, the poorest in reservoir quality,
Oil Water Contact (ft TVDSS) 13488 13426 consists of thin laminations of sand and shale known as the "tiger stripe"
Depth to Top of Structure (ft TVDSS) 11821 11750 facies.
The fields contain an under-saturated oil of 33 degrees API gravity
Reserves with an average gas oil ratio of approximately 1400 scf/stb. An oil water
contact in South Brae has been identified at 13488 ft TVDSS.
Total Oil and NGL Reserves (MMstb) 245 45 Production from South Brae commenced in July 1983 with the
Est. Oil and NGL Production to 31.12.95 (MMstb) 225 32 productivities from the individual wells, particularly those at crestal
Remaining Oil and NGL Reserves (MMstb) 20 13 locations, being excellent. Produced gas is piped to North Brae for
injection. Aquifer influx into the South Brae reservoir appears to be
Production limited and the pressure in the reservoir declined until water injection
commenced in mid 1984.
Water depth (feet) 367 351 The oil is spiked with NGLs and pumped to Forties where it enters
Production Start Date July 1983 September 1989 the main Forties line to Cruden Bay. Central Brae was put on production
Peak Production (Oil and NGL) (stb/day) 103000 in 1986 18000 in 1992 in September 1989. The subsea development is tied back to the Brae A
Platform(s) Steel jacket Subsea template platform on South Brae. Brae A also receives liquid production from
Number of Wells - Producers 15 5 North Brae and East Brae as well.
Water injectors 14 1 The Enoch/Sele Paleocene discovery is situated to the southeast of
Gas injectors 2 the Brae and Miller fields and may be developed by a subsea system
Oil and NGL Export Pipeline to Forties Tied back tied back to either Brae or Miller. There are no firm plans for
Gas Export Pipeline to North Brae to South Brae development at present.
The Birch field came on stream in September 1995 with water
injection and treatment services being provided by the Brae A platform.
Birch oil joins the production from six other third party fields already
being transported through the Brae pipeline system to the Forties field.
The other "Tree" fields such as Larch, Pine and Elm may be developed
in a similar manner.
Gas which has been purchased from the T block fields is received at
the Brae A platform. Excess gas from the Birch and T Block not used for
fuel is transferred to the Brae B platform for sale or re-injection into
North Brae.
Brae South & Central
STRATIGRAPHY AND STRUCTURE
9 Limit of
Central Brae The Brae Formation in the South and Central Brae area is Kimmeridgian to

UNITED KINGDOM
CENTRAL AND SOUTH BRAE

12800

OW
Reservoir mid-Volgian in age. It represents a series of overlapping submarine fans
TOP BRAE FORMATION

132

C1
forming a sequence greater than 2000 feet thick. The formation interdigitates
DEPTH STRUCTURE

00

342
00 with the Kimmeridge Clay Formation in the axial part of the South Viking

128
126

124
16/7a

6
12
0 2 km Graben and is genetically associated with the listric, graben-margin fault scarp

00
00
00
16/7b
3

0
(Contours in feet TVDSS) CENTRAL BRAE systems which form the western field boundary. The formation is overlain by the
"hot shale" of the Kimmeridge Clay Formation, which seals the reservoir units.
22
A major phase of late Jurassic crustal extension across the South Viking
Graben was expressed by large scale movement on western graben-margin
listric faults. Very rapid subsidence close to the western graben-margin faults
together with the formation of a graben margin uplift zone, provides the
15
Limit of structural controls on Brae Formation sedimentation.
Central Brae
Reservoir Traps were formed in these sediments by differential compaction of the
Limit of
South Brae 6 distal and lateral mudstone dominated sediments around a proximal cone of
Reservoir conglomerate dominated sediment. This combination structural-stratigraphic

12
20
trap is further complicated by faulting.

124
0
00

136
00
Western SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

134
12400
Bounding
Fault

00
132
The Brae Formation in South and Central Brae represents a series of

1300

00
1280
overlapping submarine fans. The depositional model has its basis in the

0
12 13

0
12200 40
0
recognition of a single fining upward megasequence from boulder to pebble
conglomerates and coarse sandstones at the base to thinly interbedded, very
0
1200

BRAE A
12 21 fine grained, current rippled, turbidite sandstones and mudstones at the top of
SOUTH BRAE 12000 10 the formation. This megasequence is composed of a series of composite fining
0
upward sequences representing channelised submarine fan-lobes which are
8 20
12 themselves composed of graded units representing individual depositional
events. The fining upward megasequence (entire Brae section) is interpreted
1280 00

as recording the east-west propagation of successive faults in the graben-


0

0
126

1260

11 8
13
48 margin fault zone. The basal Brae Formation conglomerates - breccias are
C 00
OW 136 therefore more proximal than the upper Brae Formation sediments.
0
? 1300
43/26a
Limit of
South Brae 16/12a 16/12c

00
132

3
13400

140
Reservoir
00

(Modified after Roberts MJ, Turner CC & Allen PJ, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION


Feet 16/7a-12 16/7a-10
WNW ESE
0

Hordaland + Nordland Groups


Rogaland Group
5000

Montrose Group

10000 Shetland Group Cromer Knoll Group


Old Red
Sandstone and older
Basement Kimmeridge Clay Fm.
15000 Brae Fm.

JURASSIC + ? TRIASSIC
20000

0 1 2 3 km

25000

REPRESENTATIVE WELL SECTION - 16/7a-8


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER


150 UNIT NEUTRON
VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P
16/7a-8 40 0 0.1 10000 5 25 45 -15

M Interfan sandstones and mudstones.


Geometry
Thin sheet sandstones and mudstones.
M
and K
M and K poor and very poor.
12550

Inner fan channel and lobe conglomerates


and sandstones.

Geometry
Major clastic wedge composed of linguoid
clast supported conglomerates and more
laterally persistent lobate matrix supported
KIMMERIDGIAN - MIDDLE VOLGIAN

conglomerates and sandstones.

and K
generally moderate, locally poor.
BRAE FORMATION

K extremely variable, very poor to good.


HUMBER GROUP

12650

M
Inner fan channel and lobe conglomerates
and sandstones, overlain by thin unit of
interfan marine mudstones and thin turbidite
sandstones.
Geometry
12750

Major clastic wedge composed of lobate


sandstones capped by relatively impersistent
mudstone/sandstone intercalation.
and K
and K generally moderate. K locally poor
to good. and K poor in upper, argillaceous
M unit.
Brae South & Central
RESERVOIR GEOLOGY 16/7a-13 POROSITY - PERMEABILITY CHARACTERISTICS

10000

1000

16/7a-12

100

16/7a-10

PERMEABILITY (md.)
10

16/7a-11
F
0.1

0.01
0 10 20 30
300 feet
POROSITY (per cent.)

Porosities within the Brae Formation are highly variable


depending on the lithology and facies. The more thinly bedded
The Brae Formation in the South and sandstones within the mudstone are mostly tight due to extreme
Central Brae area comprises a series of compaction and quartz cementation.
elongate linguoid conglomerate-sandstone The more thickly bedded sandstones have moderate porosities
16/7a-8
sediment bodies orientated approximately (15-20 per cent.) and poor to good permeabilities (10-1000 md). The
normal to the graben-margin faults. These major factors which have reduced reservoir quality are compaction,
coarse clastic sediment bodies are with associated abundant quartz overgrowth cement and patchy,
enveloped by interlaminated mudstone and though fairly abundant, illite. Clast supported conglomerates
very fine sandstone facies and are divided contribute little, due to predominance of non-reservoir clasts.
into four reservoir zones by the recognition Secondary porosity developed in sandstone clasts, as a result of
of laterally persistent interlaminated mudstone and very fine grained sandstone units which feldspar dissolution, does not result in enhanced reservoir potential,
are likely to control pressure depletion patterns. However, most of the coarse clastic as the pores are isolated within cemented, low permeability clasts.
sediment bodies probably coalesce close to the graben-margin faults where post- The two main controls on porosity and permeability are the distal
depositional faulting and brecciation are an added complication. Some of these coarse and lateral fining into argillaceous facies, where diagenesis has been
clastic sediment bodies also coalesce away from the graben-margin before they thin and particularly severe, and the low original bulk rock porosity and
fine into non-reservoir sediments. Therefore, there is likely to be tortuous pressure permeability of clast supported boulder conglomerates which
communication throughout the system. dominate the proximal inner-fan facies.

FLUID PROPERTIES RESERVOIR PRESSURE

The reservoir fluid of South Brae is highly compressible and the low in-situ oil viscosity The South Brae reservoir is overpressured by approximately
leads to favourable displacement characteristics under water injection. The reservoir fluid 1230 psi. The original oil water contact is at approximately 13488
shows compositional variation with depth, the deeper oil containing a larger proportion of feet TVDSS. The initial oil water contact in Central Brae is 13426 feet
heavy hydrocarbon fractions. The high solution GOR leads to the additional recovery of TVDSS, and the reservoir is overpressured by approximately 1245
NGLs equivalent to approximately 13 per cent. of the produced crude oil stream. The psi.
reservoir fluid of Central Brae is similar to that of South Brae but has a slightly higher GOR.

2.0 1.2 11000


1500 GOR
1.9 1.1

1.8 B0 1.0 South Brae

1.7 0.9
1000
GOR (scf/stb)

1.6 0.8
B0 (rb/stb)

0 (cp)

1.5 0.7
DEPTH (feet TVDSS)

0.295 psi/ft
1.4 0.6
500 1.3 0.5
13000
1.2 0.4

1.1 0 0.3 OWC @ 13488 ft TVDSS


@ 244F
0 1.0 0.2
0 1000 2000 3000 4000 5000 6000 7000 8000
PRESSURE (psig) 0.45 psi/ft

CONTROLS ON RECOVERY
15000
The South Brae field has proved to be geologically more complex than originally expected. 5000 7000 9000
The field has responded well to water injection following the initial pressure decline, which INITIAL RESERVOIR PRESSURE (psig)
should ensure efficient recovery from the sandstone and conglomerate facies. It is likely,
however, that the majority of the oil in the "tiger stripe" facies is being by-passed. The field is
now at an advanced stage of decline; infill drilling, well sidetracking is ongoing. A pilot water
alternating gas (WAG) injection scheme is also being implemented.
Controls on recovery from Central Brae are expected to be similar to those of South Brae.
Brae South & Central
FACILITIES SPECIFICATIONS

SOUTH BRAE CENTRAL BRAE

UNITED KINGDOM
Water Depth 367 351
(feet)
Platform Type steel jacket subsea template
Function drilling/production/ drilling/production
accommodation

Jacket Weight 18600


(tonnes)
Jacket Height 404
(feet)
Topside Weight 38000
(tonnes)

Accommodation 368

Well Slots 46 10
Wells producers 15 5
water injectors 14 1
gas injectors 2

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 134000 20000


(bbl/day)

(A Marathon Photograph) Oil Export 30" x 118 km pipeline 2x6"x7 km pipelines


to Forties to South Brae
Gas Export 18" x 12 km pipeline
to North Brae

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 150 500


Liquid
Net Present Value 3,452.05 1,460.49 858.70 589.90 391.89 185.99 -9.82
Net Present Value (Deflated) 3,237.52 1,171.18 539.33 256.29 48.08 -166.78 -364.98 Gas

@@


Profit/Inv Ratio 1.44 0.85 0.59 0.45 0.33 0.18 -0.01

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


125
Profit/Inv Ratio (Deflated) 0.80 0.38 0.20 0.11 0.02 -0.09 -0.23 400
NPV/Unit Oil Equiv. 5.57 4.50 3.72 3.16 2.57 1.61 -0.13
NPV/Unit Oil Equiv. (Deflated) 4.33 2.81 1.76 1.02 0.23 -1.03 -3.32
100
Payback Year 1989
Nominal Rate Of Return % 19.64 300
Real Rate Of Return % 12.56
North Brae only
Post Corporation Tax 75

@@


Net Present Value 2,246.86 920.93 509.80 324.54 187.56 45.00 -89.61
200
Net Present Value (Deflated) 1,986.51 580.85 146.65 -47.61 -189.76 -334.61 -463.07
Profit/Inv Ratio 0.93 0.54 0.35 0.25 0.16 0.04 -0.11 50
Profit/Inv Ratio (Deflated) 0.49 0.19 0.06 -0.02 -0.09 -0.17 -0.29
NPV/Unit Oil Equiv. 3.62 2.84 2.21 1.74 1.23 0.39 -1.19
NPV/Unit Oil Equiv. (Deflated) 2.66 1.39 0.48 -0.19 -0.90 -2.06 -4.22
100
25
Nominal Rate Of Return % 16.31
Real Rate Of Return % 9.45

Earnings Data
0 0
Gross Revenue 10,391.98 5,084.21 3,535.16 2,837.01 2,311.92 1,743.42 1,149.26
1980 1990 2000 2010
Royalty 657.41 340.55 239.69 192.97 157.37 118.45 77.49
Petroleum Revenue Tax 613.88 266.05 162.86 119.75 89.90 61.14 36.35
Year
Corporation Tax 1,205.19 539.56 348.90 265.36 204.32 140.99 79.79
Capital Expenditure 2,403.89 1,713.97 1,446.07 1,302.73 1,180.34 1,027.25 831.52
Operating Costs 3,264.76 1,303.15 827.85 631.65 492.42 350.59 213.72

Gross Revenue (Deflated) 11,812.83 6,364.24 4,637.14 3,823.03 3,190.77 2,481.33 1,702.81
Royalty (Deflated) 784.27 431.12 314.49 258.89 215.52 166.73 113.22
Petroleum Revenue Tax (Deflated) 626.73 271.03 173.90 133.64 105.55 77.85 52.42 CASH FLOW REPORT
Corporation Tax (Deflated) 1,251.01 590.33 392.68 303.90 237.84 167.83 98.09
Capital Expenditure (Deflated) 4,070.54 3,067.33 2,642.86 2,408.64 2,205.08 1,946.11 1,608.10 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Operating Costs (Deflated) 3,093.77 1,423.58 966.57 765.57 616.54 457.43 294.04 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1979 0.0 0.0 0.0 7.0 0.0 0.0 0.0 -7.0 -74.0 0.0 0.0 0.0
1980 0.0 0.0 0.0 120.0 0.0 0.0 0.0 -120.0 -1035.6 0.0 0.0 0.0
1981 0.0 0.0 0.0 269.0 0.0 0.0 0.0 -269.0 -1824.7 0.0 0.0 0.0
1982 0.0 0.0 0.0 271.0 0.0 0.0 0.0 -271.0 -1519.7 0.0 0.0 0.0
1983 139.9 0.0 16.8 191.0 0.0 0.0 0.0 -67.8 -324.5 19.2 0.0 0.0
1984 642.6 31.8 66.1 118.0 58.2 0.0 90.0 368.5 1561.0 76.9 0.0 0.0
1985 657.3 63.0 70.7 318.0 38.7 0.0 101.6 166.9 623.2 84.7 0.0 0.0
1986 379.0 42.6 80.0 319.0 32.7 9.3 84.7 -104.7 -341.4 103.1 0.0 7.0
1987 419.2 24.3 77.8 270.0 7.5 49.7 81.6 -10.2 -29.7 96.1 0.0 40.0
1988 385.1 21.5 105.1 227.0 -137.1 57.5 -58.2 111.2 293.9 114.9 0.0 45.0
1989 500.0 23.7 120.5 80.0 0.0 32.3 56.0 243.6 558.0 115.8 0.0 48.0
1990 669.7 41.0 134.0 15.0 0.0 70.5 111.5 409.2 805.2 131.0 0.0 58.0
1991 455.3 42.5 123.6 0.0 0.0 126.5 169.0 162.7 270.7 101.0 0.0 47.0
ECONOMIC INDICATORS FROM 1/1/1996 1992 367.6 29.4 117.7 0.0 0.0 70.6 99.9 150.0 218.4 80.0 0.0 98.0
1993 320.1 22.9 114.8 20.0 0.0 52.9 75.9 109.5 142.2 60.6 0.0 159.7
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1994 368.2 24.3 116.5 15.0 0.0 43.2 67.5 169.1 200.2 55.0 57.0 279.8
1995 546.6 33.0 122.5 5.0 0.0 59.8 92.8 326.2 349.1 52.0 280.0 322.9
Pre Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
5850.8 400.1 1266.2 2245.0 0.0 572.2 972.3 1367.3 -127.5 398.0 123.0 403.5
Net Present Value 1,512.55 1,301.59 1,195.06 1,131.64 1,073.73 996.14 887.77
Net Present Value (Deflated) 1,366.90 1,179.22 1,086.03 1,030.85 980.59 913.33 819.34 1996 536.1 38.2 118.9 0.0 98.0 115.7 251.9 165.2 159.0 44.4 280.0 310.2
NPV/Unit Oil Equiv. 7.51 7.71 7.78 7.82 7.85 7.89 7.92 1997 496.5 36.4 119.0 0.0 107.8 77.2 221.4 156.1 133.7 35.4 280.0 254.7
1998 455.3 35.2 120.0 0.0 90.8 71.8 197.8 137.6 104.9 28.3 280.0 193.8
Post Corporation Tax 1999 422.6 34.1 121.7 0.0 76.3 65.6 176.0 124.9 84.8 22.7 280.0 146.3
2000 424.4 33.3 122.9 0.0 75.3 60.3 169.0 132.6 80.2 18.2 280.0 132.0
Net Present Value 879.56 783.09 728.27 694.10 662.02 617.88 554.27 2001 401.5 32.9 121.4 0.0 71.1 61.0 164.9 115.2 62.0 14.7 265.9 111.3
Net Present Value (Deflated) 818.02 721.53 670.10 638.74 609.65 570.00 513.38 2002 312.5 27.5 120.9 0.0 77.8 52.4 157.8 33.8 16.2 11.8 169.8 95.7
NPV/Unit Oil Equiv. 4.37 4.64 4.74 4.80 4.84 4.89 4.95 2003 262.5 19.0 121.2 0.0 49.5 33.1 101.6 39.8 17.0 9.6 109.4 95.6
2004 228.7 13.3 120.4 0.0 36.8 25.2 75.3 33.1 12.6 7.8 71.0 94.8
Earnings Data 2005 179.5 8.2 69.8 0.0 41.1 19.8 69.1 40.6 13.7 2.6 46.6 81.7
2006 167.9 4.5 69.5 0.0 40.0 19.8 64.3 34.1 10.3 2.0 30.9 81.5
Gross Revenue 4,541.21 3,496.26 3,060.83 2,824.09 2,620.58 2,364.64 2,034.74 2007 150.5 2.7 68.4 0.0 36.2 17.8 56.6 25.5 6.8 0.0 20.8 80.7
Royalty 257.28 224.21 205.15 193.43 182.60 168.00 147.59 2008 124.2 1.4 68.7 0.0 25.5 14.5 41.4 14.2 3.4 0.0 14.1 66.3
Petroleum Revenue Tax 613.88 577.52 536.55 508.33 480.95 442.77 388.21 2009 90.8 0.5 67.7 158.9 4.3 10.0 14.9 -150.7 -32.0 0.0 0.0 54.6
Corporation Tax 632.99 518.50 466.79 437.54 411.70 378.26 333.50 2010 77.2 0.0 63.6 0.0 0.0 -5.8 -5.8 19.4 3.7 0.0 0.0 45.0
Capital Expenditure 158.89 82.23 56.22 43.88 34.41 24.08 13.56 2011 65.7 0.0 62.9 0.0 0.0 -5.5 -5.5 8.2 1.4 0.0 0.0 37.2
Operating Costs 1,998.60 1,310.70 1,067.86 946.81 848.89 733.65 597.61 2012 46.3 0.0 62.2 0.0 0.0 0.0 0.0 -15.9 -2.4 0.0 0.0 21.7
2013 38.9 -0.4 61.5 0.0 0.0 0.0 -0.4 -22.2 -3.0 0.0 0.0 17.5
Gross Revenue (Deflated) 3,740.83 2,972.12 2,641.98 2,459.50 2,300.75 2,098.35 1,832.43 2014 32.6 -1.1 60.7 0.0 0.0 0.0 -1.1 -27.0 -3.2 0.0 0.0 14.2
Royalty (Deflated) 235.44 201.94 184.54 174.15 164.67 152.01 134.44 2015 27.4 -1.8 60.0 0.0 0.0 0.0 -1.8 -30.8 -3.3 0.0 0.0 11.4
Petroleum Revenue Tax (Deflated) 601.29 529.86 486.14 459.00 433.85 399.93 352.71 Remain
Corporation Tax (Deflated) 548.88 457.69 415.93 392.11 370.94 343.33 305.96 2016 0.0 -26.7 197.2 0.0 -216.6 0.0 -243.3 46.1 4.3 0.0 0.0 0.0
Capital Expenditure (Deflated) 95.42 49.38 33.76 26.35 20.66 14.46 8.14
Operating Costs (Deflated) 1,441.78 1,011.72 851.51 769.14 700.97 618.62 517.80 Total 4541.2 257.3 1998.6 158.9 613.9 633.0 1504.2 879.6 670.1 72.0 777.0 710.3

These cash flows include Brae N+S+C and Beinn, plus tariff income from Brae East, Miller, Balmoral, Glamis, Heimdal, Birch,
and T Block fields
211/23b Amerada 211/24a OMV 24c Con. SUMMARY
1 STATFJORD
4 5 The Brent field is located in Quadrant 211 some 170 km northeast of
6 25a the Shetland Islands in the UK Sector of the Northern North Sea. The
24b Con. Con. 33/12a Statoil
211/28b Rel. 211/29 Shell 33/12b Statoil field was discovered in 1971 by Well 211/29-1 which encountered oil in
10
Middle Jurassic sands of the Brent Group. Subsequent wells revealed
7
a gas cap in the Brent reservoir. Gas and oil were also found in the
deeper Statfjord Formation.
3
D Development of the Brent field began in 1972 and involves one steel
211/28a and three concrete platforms. First oil was produced in November 1976
Conoco 1 and peak production was achieved in 1986. Oil is piped to the Sullom
Voe terminal via the Cormorant oil field.
The field is currently undergoing a major redevelopment with a view
1 C to optimising gas production in the next century. Upon completion of the
platform refurbishment programme in 1997, the reservoirs will undergo
7 6 8 a depressurisation development strategy to maximise gas sales.
5
The Brent field extends south beyond 211/29 into Texaco owned
BRENT Block 3/4a. Shell and Esso bought Texaco's interest in this northern
7
area of 3/4a in November 1991.
2 B
9 The current interests in the Brent field in per cent. are:-
Flare
A Shell Uk Ltd * 50.00
4 Esso Exploration and Production Ltd 50.00
0 4 km
operator *

18 211/30 Shell
3/3 Chevron 3/4b Rel. 1 2,3 3/4a 3/5b Rel. 29/3 Rel.
Texaco
11

LOCAL SETTING

The Brent field is located in the North Viking Graben close to the
median boundary with Norway. Brent was the first major discovery in the
area and is surrounded by fields such as Ninian, Dunlin, Hutton, North
West Hutton, Statfjord and Gullfaks all of which lie within a 20 km
radius. Fields within a 50 km radius include Magnus, Thistle, Alwyn and
RESERVOIR CHARACTERISTICS Alwyn North, Columba, Cormorant, Lyell and Heather. All these fields
contain oil in sandstones of the Brent Group and/or Statfjord
Fluid Properties BRENT STATFJORD Formations. Magnus field also lies within 50 km of Brent, to the north.
Here the reservoir is an Upper Jurassic sandstone.
Oil Gravity (API) 36 38.5
Gas/Oil Ratio (scf/stb) 1500-1700 1000-3000
Bubble Point Pressure, Pb (psig) 4000-5750 4400-5650
Formation Volume Factor at Pi (rb/stb) 2.0 2.3
Oil Compressibility (vol/vol/psi) 16 x 10-6 18 x 10-6
Original Reservoir Pressure, Pi (psig) 5770 6115
At Datum Depth of (ft TVDSS) 8700 9400 FIELD DESCRIPTION
Reservoir Temperature (F) 204 218
The Brent field comprises a westerly tilted and partially eroded fault-
Rock Properties block which is unconformably overlain by sealing Kimmeridgian shale
and is both structurally and stratigraphically closed.
Rock Type ------------------ Sandstone --------------------- Hydrocarbons are found in two horizons, the Middle Jurassic Brent
Stratigraphic Unit Brent Statfjord sand sequence and the deeper, Lower Jurassic Statfjord sand
Geological Age -------------------- Jurassic ----------------------- sequence.
Porosity Range (per cent.) 7-37 10-26 The reservoir quality varies considerably in both these sequences
Permeability Range (md) up to 8000 up to 5500 and ranges between poor and very good; in general, however, reservoir
Connate Water Saturation (per cent.) quality is good.
Gas Oil Contact (ft TVDSS) 8575 9300 The total thickness of the Jurassic in the Brent field (including the
Oil Water Contact (ft TVDSS) 9050 9680 Dunlin shales) is some 2500 feet of which some 1200 feet is considered
Depth to Top of Structure (ft TVDSS) 8300 8850 net reservoir.
Both reservoirs contain saturated black oil with overlying gas caps.
Reserves OIL + NGL SALES GAS The API gravity of the oil varies between 36 and 38.5 degrees. The
GOR in the Brent reservoir is between 1500 and 1700 scf/stb and in the
Total Reserves (MMstb, Bcf) 2120 4400 Statfjord reservoir is between 1000 and 3000 scf/stb.
Est. Production to 31.12.1995 (MMstb, Bcf) 1754 2266 The main production mechanism for the Brent field is water injection
Remaining Reserves (MMstb, Bcf) 366 2134 in a staggered line drive sequence. This production mechanism was
preferred over gas injection because the permeability distribution within
Production the reservoir (higher at the crest) and the mobility ratio were both more
favourable to water injection. However, during the late 1990s water
Water depth (feet) ------------------- 459-466 ----------------------
injection will cease, with water ultimately being pumped out of the
Production Start Date ------------- November 1976 --------------- reservoir to reduce the pressure. Originally the vast bulk of oil was
Peak Production (Oil and NGL) (stb/day) ------------ 477,000 in 1986 --------------- exported via the SPAR loading buoy, as well as being piped to the
Sullom Voe terminal via the Cormorant oil field. Oil production has
Peak Production (Gas) (MMscf/day) ---------------- 660 in 2002 --------------------
declined sharply from peak rates and gas sales have become more
Platform(s) Steel jacket + 3 Concrete gravity
important in recent years. Oil production through the SPAR buoy
Number of Wells - Producers ------------------------- 88 --------------------------
ceased in 1991.
Water Injectors ------------------------- 39 --------------------------
Due to the change in production priorities from oil to gas in recent
Gas Injectors -------------------------17 ---------------------------
years, the Brent platforms were redeveloped in the mid 1990's with new
Gas and Condensate Export 36" pipeline to Sullom voe via facilities to allow the reservoir to be operated at lower pressures. This
Cormorant has extended the field's gas plateau and allows further oil recovery as
Gas Export 36 Pipeline to St. Fergus via well as significant additional gas recovery. Interim upgrades to the
FLAGS platforms occurred prior to the main refurbishments that started in 1994.
This scheme will boost gas production to around 600 MMscf/day, by the
turn of the century utilising only the B, C and D platforms and cutting
manning levels by abut 45 per cent. to around 150. From 1997
depressurisation will take place in two phases, and will extend field life
for another 20 years.
STRATIGRAPHY AND STRUCTURE
211/29 Reservoirs in the Brent field are the Brent Group sandstones and the

9000

UNITED KINGDOM
Statfjord Formation sandstones. The Statfjord Formation is of Rhaetian to
Hettangian-Sinemurian (Triassic to Early Jurassic) age and overlies several

00
90
thousand feet of Triassic sandstones and mudstones. The Statfjord Formation

Brent
is, in turn, overlain by the Lower Jurassic offshore mudstones of the Dunlin
Group. Overlying these are the marine and deltaic sediments of the Brent
Group. The Brent Group is erosively truncated towards the crest of the Brent
3 D structure, being absent from crestal areas where Cretaceous sediments rest on
the Dunlin Group and Statfjord Formation.

8500
The Brent structure is a north-south trending fault block which dips towards

8500
the west. It is bounded to the east by a major north-south trending fault which
down throws towards the east. There is some subdivision of the field by broadly
northwest-southeast trending faults.

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT


1 C

The Statfjord Formation represents a transition from the alluvial plain


sediments of the underlying Triassic Group. The basal part of the formation is
dominated by fluvial sediments whilst the upper part is dominated by coastal
6 5 and shallow marine sediments. Continued transgression during the Lower
Jurassic resulted in the deposition of widespread offshore mudstones.
9500

9000 The Brent Group represents the deposits of a northward prograding shallow

8500

8500
7 marine and deltaic complex. At the base are the medium to coarse grained,
variably pebbly sandstones of the Broom Formation. These represent stacked
OWC 9050

GOC 8575

GOC 8575
sublittoral sheet sandstones deposited in front of the advancing shallow marine
B
deltaic complex.
2
They are overlain by a major progradational shoreface sequence. The lower
part of this sequence comprises very fine to fine grained, variably argillaceous
and micaceous sandstones of the Rannoch Formation. These represent lower
A BRENT to middle shoreface sandstones. Overlying these are the coarser, cleaner
4 sandstones of the Etive Formation. These represent upper shoreface to
TOP BRENT SAND
foreshore and tidally influenced channel deposits.
DEPTH STRUCTURE The Ness Formation, which succeeds the Etive Formation, was deposited in
a delta plain setting. Distributary channel, crevasse splay, mouth bar and
0 2 km
lagoon/bay shoreface sandstones are interbedded with lagoon/bay and
(Contours in feet TVDSS) floodplain lake mudstones and coals.
At the top of the Brent Group is a sheetlike development of transgressive
and shallow marine sandstones - the Tarbert Formation. This represents the
(After Bowen)
transgression and abandonment of the Brent delta in response to Callovian
sea-level rise.

INTERPRETATIVE STRUCTURAL CROSS SECTION

211/29-1 211/29-3 211/29-2 211/29-4 211/29-5


Feet
W E
4000

6000 UPPER CRETACEOUS + TERTIARY

UPPER JURASSIC
8000

Brent Group Dunlin Grou


p
tion
10000 Statfjord Forma LOWER CRETACEOUS

Pre - Statfjord

12000
0 1 km

211/29-2
REPRESENTATIVE WELL SECTION - 211/29-2
CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


Py
Delta plain sediments comprising fluvial
channel, mouth bar, levee and crevasse
Py
splay sandstones interbedded with lagoon
and/or bay mudstones and coals.

Geometry
8850
NESS FORMATION

Ribbonlike and lobate to sheetlike


sandstones interbedded with laterally
extensive mudstones and coals.

and K
and K of sandstones variable, locally
good.

Py Py
MIDDLE JURASSIC

Py
BRENT GROUP

S S
8950

S S Py

Py Major distributary channel sandstone overlying


a thin coal.
Geometry
Ribbonlike sandbody
and K
Generally good to locally very good
Py
Py

Tidal channel and nearshore/backshore


9050

Py sandstones with thin mudstones


ETIVE FM

Geometry
Py Ribbonlike and lenticular sandbodies
stacked and coalesced into a sheetlike
sandbody.
and K
and K good to very good.
Py
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
211/29-3 211/29-1 211/29-2 3/4-1
10000
2 4

Tarbert Fm.
Brent
1000
F

1. Lower Jurassic
2. Humber Group

Ness Fm.
100
3. Dunlin Group
4. Heather Formation
5. Broom Formation
MIDDLE JURASSIC

PERMEABILITY (md.)
Brent Group

10
Etive Fm.

0
1
Rannoch Fm.

100

5 0.1
200 fe
1 3

0.01
The Broom Formation forms a sheetlike unit about 30 to 50 feet thick. Towards the base 0 10 20 30 40

of the unit there are often thin mudstones interbedded with the sandstones. Carbonate POROSITY (per cent.)
cemented horizons are relatively common. Because of these factors net to gross ratios are
variable (commonly greater than 0.5 per cent.).
The overlying Rannoch Formation varies between about 100 and 140 feet in thickness In the Broom Formation porosity and permeability are commonly
and forms a sheetlike sandbody. In the Brent field the Rannoch Formation commonly has reduced by the presence of extensive calcite cement. As a result,
net to gross ratios greater than 0.8 per cent. This reflects its relatively coarse, clean nature average porosity is commonly less than 20 per cent. whilst
(in contrast to Ninian for example). It is overlain by the Etive Formation which is a sheetlike permeability is generally less than 10 md. The overlying Rannoch
sandbody 50 to 60 feet thick. It consists of upper shoreface to foreshore sandstones which Formation is characterised by better porosity and permeability.
are locally incised by elongate, lenticular units of particularly coarse and clean tidal channel Average porosity is commonly within the range 20 to 25 per cent.
sandstones. whilst permeability is commonly greater than 50 md. Locally there
Within the Ness Formation (approximately 450 to 600 feet thick) there are a variety of are cemented horizons with severely reduced porosity and
sandbody types. The most favourable with regard to reservoir quality are distributary permeability. Porosity and permeability are often poor in the
channel, mouthbar and lagoon/bay shoreface sandstones. Channel sandstones have uppermost part of the Rannoch Formation due to an increase in mica
broadly ribbonlike geometry although lateral and vertical stacking and coalescence may and/or detrital clay content.
locally produce units with a tabular geometry. Mouth bar and lagoon/bay shoreface units Within the Etive Formation porosity and permeability are
have lenticular to sheetlike geometries. Locally, where incised by distributary channel generally good to excellent. This reflects the relatively clean, coarse
sandstones, interconnected sandbodies probably occur. However, in general, sand bodies nature of the sand body. Tidal channel sandstones display
are interbedded with and separated by laterally extensive mudstones. particularly favourable porosities (generally >30 per cent.) and
The uppermost unit of the Brent Group, the Tarbert Formation, forms a sheetlike permeabilities (often > 1000 md).
development of shallow marine sandstones approximately 70 to 100 feet thick. Within this Porosity and permeability are quite variable in the Ness
unit, two broad subunits can be distinguished: Formation, largely reflecting primary textural characteristics. In
a lower subunit comprising transgressive and tidal channel sandstones thicker distributary channel, mouthbar or lagoon/bay shoreface
an upper subunit comprising a progradational shoreface sequence. sandstones porosities are generally good to very good (20 to 25 per
cent.) and permeability is generally greater than 100 md.
FLUID PROPERTIES Within the Tarbert Formation average porosity and permeability
are generally moderate to good (porosity 15 to 20 per cent.,
Both Brent and Statfjord reservoirs contain high GOR volatile oils together with a gas permeability 100 md). However, there is commonly a good deal of
cap. Both reservoirs appear to show a compositional variation with depth. The Statfjord variation within a Tarbert Formation sequence, with the lower
reservoir also shows an unusual feature of a continuum between gas and oil phases. The transgressive/tidal channel unit having good to locally excellent
reservoir fluid changes from gas to oil without any distinct gas oil contact. average porosities and permeabilities, whilst the progradational
shoreface unit is characterised by vertical porosity and permeability
2500 2.5 0.8 profiles which increase upwards.
Statfjord B0

2000
Statfjord GOR 0.6
Brent B0
RESERVOIR PRESSURE
2.0
GOR (scf/stb)

1500
B0 (rb/stb)

Separate pressure regimes exist in the Brent and Statfjord


0 (cp)

Brent GOR
0.4 reservoirs within the Brent field. Both reservoirs are overpressured
1000 Brent 0 by about 1600 psi above normal hydrostatic pressure.
1.5
0.2
500 8000
Statfjord 0

Brent @ 204 F (from correlation)


Statfjord @ 218 F (from correlation)
0 1.0 0.0
0 2000 4000 6000 8000
8500 Brent
PRESSURE (psig) 0.12 psi/ft
GOC @ 8575 ft TVDSS
CONTROLS ON RECOVERY
DEPTH (feet TVDSS)

0.25 psi/ft
The recovery factor in both Brent and Statfjord reservoirs is expected to be very good,
probably about 55 per cent. for the oil and 80 per cent. for the gas. This is due to the 9000
OWC @ 9050 ft TVDSS
following factors:- 0.46 psi/ft Statfjord
The high permeability, between 10 and 4000 md in the Brent reservoir and between 100 0.12 psi/ft
and 5000 md in the Statfjord reservoir GOC @ 9300 ft TVDSS
The moderate dip, about 9 degrees in both reservoirs, which assists gravity segregation
under immiscible displacement 9500 0.23 psi/ft
The favourable mobility ratio as a result of low oil viscosities
OWC @ 9680 ft TVDSS
The moderately low residual oil saturations, about 25 per cent 0.46 psi/ft
The nature of the fluid system in the Statfjord reservoir means that it is self miscible and
can be miscibly displaced by a lean injection gas. The production scheme for this
10000
reservoir uses crestal gas injection to ensure a high recovery.
5600 5800 6000 6200 6400
The planned lowering of the reservoir pressure after 1997, so maximising gas recovery
and oil recovery by way of extending the field life. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Platform A B C D

UNITED KINGDOM
Water Depth -------------------- 459-466 ----------------------
(feet)

Brent
Platform Type steel jacket ------- concrete gravity---------
Function drilling/accommodation/production/storage

Jacket (Topside) Weight 14225 (23194) (21330) (22433)


(tonnes)
Total Weight 40164 195257 319471 207107
(tonnes)

Accommodation 141 162 200 186

Well Slots 28 38 40 48
Wells 27 36 38 43

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 100000 150000 150000 150000


(bbl/day)
Gas Throughput 200 320 350 350
(MMscf/day)

Oil Export 30 x 34 km pipeline to Cormorant (onwards to Sullom Voe)


Gas Export 36 x 450 km pipeline to St Fergus via FLAGS


@@@



@
(Reproduced by permission of Shell U.K. Ltd)
PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED

500 1000
Liquid

FULL FIELD LIFE ECONOMIC INDICATORS Gas

@@@


Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 800
400
Pre Corporation Tax

Net Present Value 10,167.26 4,959.18 3,323.02 2,560.94 1,976.80 1,335.14 662.68
Net Present Value (Deflated) 12,898.90 5,744.69 3,384.98 2,266.68 1,403.86 456.36 -517.73
300 600
Profit/Inv Ratio 1.66 1.37 1.17 1.04 0.91 0.73 0.46
Profit/Inv Ratio (Deflated) 0.96 0.61 0.43 0.31 0.21 0.08 -0.11
NPV/Unit Oil Equiv. 3.56 3.68 3.63 3.55 3.42 3.15 2.48
NPV/Unit Oil Equiv. (Deflated) 3.16 2.67 2.19 1.80 1.35 0.58 -0.98

@@@


Payback Year 1982 200 400
Nominal Rate Of Return % 31.59
Real Rate Of Return % 16.97

Post Corporation Tax


100 200
Net Present Value 5,947.91 2,863.82 1,885.49 1,427.16 1,074.21 684.32 272.64
Net Present Value (Deflated) 6,759.00 2,526.01 1,127.33 465.15 -44.39 -600.35 -1,160.21
Profit/Inv Ratio 0.97 0.79 0.66 0.58 0.50 0.38 0.19
Profit/Inv Ratio (Deflated) 0.51 0.27 0.14 0.06 -0.01 -0.10 -0.24
NPV/Unit Oil Equiv. 2.08 2.13 2.06 1.98 1.86 1.61 1.02 0 0
NPV/Unit Oil Equiv. (Deflated) 1.65 1.17 0.73 0.37 -0.04 -0.76 -2.20
1975 1980 1995 1990 1995 2000 2005 2010
Nominal Rate Of Return % 26.05
Real Rate Of Return % 11.80 Year

Earnings Data

Gross Revenue 37,698.41 18,105.43 12,449.81 9,904.81 7,991.13 5,920.39 3,764.65


Royalty 3,545.78 1,717.33 1,173.79 927.39 741.80 541.26 334.16
Petroleum Revenue Tax 9,135.40 4,233.94 2,799.40 2,160.20 1,686.37 1,185.42 686.94
Corporation Tax 4,219.36 2,095.35 1,437.53 1,133.77 902.59 650.82 390.03 CASH FLOW REPORT
Capital Expenditure 6,133.85 3,632.74 2,839.51 2,461.76 2,164.24 1,822.26 1,427.48
Operating Costs 8,018.77 3,094.51 1,942.56 1,474.69 1,145.82 813.73 495.99 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Gross Revenue (Deflated) 54,737.16 29,346.73 21,218.85 17,365.21 14,363.08 10,990.04 7,303.11 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Royalty (Deflated) 5,108.66 2,687.38 1,908.50 1,540.77 1,255.98 939.03 598.94
Petroleum Revenue Tax (Deflated) 12,413.42 6,121.51 4,169.09 3,271.21 2,590.91 1,854.62 1,099.58 1974 0.0 0.0 0.0 19.0 0.0 0.0 0.0 -19.0 -581.3 0.0 0.0 0.0
Corporation Tax (Deflated) 6,139.90 3,218.68 2,257.65 1,801.53 1,448.25 1,056.71 642.48 1975 0.0 0.0 0.0 220.0 0.0 0.0 0.0 -220.0 -5,760.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 13,379.57 9,418.99 7,961.11 7,205.79 6,573.79 5,797.24 4,817.89 1976 7.8 0.0 10.0 350.0 0.0 0.0 0.0 -352.2 -6,868.0 3.0 0.0 0.0
Operating Costs (Deflated) 9,498.78 4,408.08 3,027.04 2,419.08 1,966.96 1,481.59 977.79 1977 86.1 0.0 30.0 495.0 0.0 0.0 0.0 -438.9 -6,800.6 26.0 0.0 0.0
1978 204.5 0.0 50.0 440.0 0.0 0.0 0.0 -285.5 -3,529.8 77.1 0.0 0.0
1979 638.9 20.6 75.0 330.0 0.0 0.0 20.6 213.3 2,253.5 179.1 0.0 0.0
1980 770.1 56.9 140.0 330.0 0.0 0.0 56.9 243.2 2,098.6 140.1 0.0 0.0
1981 1,548.5 106.8 180.0 360.0 0.0 0.0 361.6 646.9 4,388.2 230.2 0.0 0.0
1982 2,208.7 191.0 210.0 350.0 0.0 0.0 592.0 1,056.7 5,925.7 322.2 217.1 0.0
1983 2,972.3 274.6 250.0 330.0 462.3 358.1 1,136.4 1,255.9 6,008.3 401.2 454.3 0.0
1984 3,606.4 359.4 275.0 165.0 1,189.8 810.0 2,359.2 807.2 3,419.3 427.3 482.3 0.0
1985 3,710.7 407.4 300.0 150.0 1,549.1 609.7 2,566.2 694.5 2,592.7 474.3 472.3 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1986 1,872.0 301.3 315.0 100.0 517.7 561.5 1,380.5 76.4 249.2 476.3 470.3 0.0
1987 1,891.3 189.9 331.0 95.0 283.8 375.0 848.7 616.6 1,799.8 421.3 466.3 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1988 1,287.5 157.6 279.0 55.0 860.6 247.2 1,265.4 -311.9 -824.2 342.2 499.3 0.0
1989 1,047.0 109.9 279.0 55.0 463.8 80.0 653.7 59.3 135.9 203.1 456.3 0.0
Pre Corporation Tax 1990 552.6 67.1 272.0 165.0 99.6 63.9 230.6 -115.0 -226.4 77.0 330.2 0.0
1991 938.3 62.3 265.2 125.0 260.0 46.8 369.1 179.0 297.7 183.1 343.2 0.0
Net Present Value 2,211.63 1,880.45 1,709.32 1,606.73 1,512.79 1,386.75 1,210.95 1992 1,195.7 104.3 258.6 95.0 474.4 58.9 637.6 204.5 297.8 233.0 489.0 0.0
Net Present Value (Deflated) 1,979.22 1,678.06 1,527.08 1,437.52 1,355.96 1,247.02 1,095.56 1993 1,313.6 128.4 252.1 250.0 507.7 69.5 705.5 106.0 137.8 232.0 600.0 0.0
NPV/Unit Oil Equiv. 3.07 3.22 3.28 3.30 3.31 3.33 3.33 1994 1,039.5 117.3 245.8 310.0 166.7 122.3 406.3 77.4 91.6 198.0 477.0 0.0
1995 909.8 89.6 239.7 415.0 107.1 107.2 304.0 -48.9 -52.3 160.0 450.0 0.0
Post Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
27,801.4 2,744.3 4,257.4 5,204.0 6,942.7 3,510.1 13,894.5 4,445.5 5,053.3 1,754.4 2,265.8 0.0
Net Present Value 1,502.39 1,305.55 1,195.77 1,128.06 1,064.99 978.99 856.82
Net Present Value (Deflated) 1,369.81 1,176.67 1,075.50 1,014.42 958.18 882.27 775.44 1996 1,054.4 87.2 233.7 310.0 185.4 87.7 360.4 150.3 144.7 179.5 497.6 0.0
NPV/Unit Oil Equiv. 2.08 2.24 2.29 2.32 2.33 2.35 2.35 1997 1,140.4 99.3 236.9 218.4 275.2 86.7 461.2 223.8 191.8 179.5 523.1 0.0
1998 1,174.9 105.7 240.3 162.3 324.6 86.8 517.1 255.2 194.6 168.5 565.9 0.0
Earnings Data 1999 993.8 96.9 243.8 56.3 309.2 88.9 495.0 198.7 134.8 115.7 569.6 0.0
2000 883.7 81.6 203.0 58.6 278.4 58.5 418.5 203.7 123.0 82.8 569.6 0.0
Gross Revenue 9,896.97 7,809.67 6,892.58 6,381.52 5,935.17 5,364.72 4,615.36 2001 897.3 78.6 205.8 60.9 274.7 59.2 412.5 218.1 117.2 68.1 621.2 0.0
Royalty 801.44 658.68 590.40 550.84 515.42 468.97 406.03 2002 909.5 82.5 208.8 63.4 276.2 68.3 427.0 210.4 100.6 55.6 660.4 0.0
Petroleum Revenue Tax 2,192.69 1,853.83 1,676.94 1,570.67 1,473.33 1,342.81 1,161.27 2003 708.8 73.4 211.8 0.0 228.4 75.0 376.8 120.2 51.2 38.1 512.9 0.0
Corporation Tax 709.24 574.90 513.54 478.67 447.80 407.76 354.13 2004 603.0 57.8 214.9 0.0 176.9 43.8 278.5 109.6 41.5 35.2 398.8 0.0
Capital Expenditure 929.85 836.38 789.52 761.40 735.46 700.14 649.26 2005 471.7 45.6 218.0 0.0 118.9 34.4 198.9 54.8 18.5 24.9 307.9 0.0
Operating Costs 3,761.37 2,580.32 2,126.40 1,891.88 1,698.18 1,466.05 1,187.84 2006 362.6 32.3 221.1 0.0 67.0 19.9 119.2 22.3 6.7 18.3 228.0 0.0
2007 269.4 21.3 207.1 0.0 29.4 7.3 58.0 4.3 1.2 14.6 155.0 0.0
Gross Revenue (Deflated) 8,315.30 6,700.76 5,979.55 5,573.77 5,216.75 4,756.52 4,144.11 2008 239.5 14.9 204.6 0.0 13.0 -1.2 26.7 8.2 1.9 11.0 140.0 0.0
Royalty (Deflated) 697.01 576.84 519.76 486.74 457.16 418.33 365.52 2009 187.9 11.5 175.6 0.0 3.1 -3.1 11.5 0.7 0.2 10.0 97.0 0.0
Petroleum Revenue Tax (Deflated) 1,953.92 1,642.68 1,486.25 1,393.50 1,309.14 1,196.70 1,041.03 Remain
Corporation Tax (Deflated) 609.41 501.39 451.58 423.11 397.78 364.75 320.12 2010 0.0 -87.1 736.0 0.0 -367.8 -3.0 -457.9 -278.1 -52.4 0.0 0.0 0.0
Capital Expenditure (Deflated) 870.00 787.42 745.77 720.69 697.48 665.78 619.89
Operating Costs (Deflated) 2,815.16 2,015.76 1,700.69 1,535.31 1,397.00 1,228.69 1,022.12 Total 9,897.0 801.4 3,761.4 929.8 2,192.7 709.2 3,703.4 1,502.4 1,075.5 365.7 2,134.2 0.0

These cash flows include Brent field only


16/21d Arco 4 SUMMARY
1
5 25
2
15/25b Con.
BLENHEIM 1 Britannia is the largest undeveloped gas/condensate field on the UK
Con. 21 5
15/ 2 15/25c 5 Continental Shelf. It is situated 200 kms northeast of Aberdeen at the
24b 7
Con. 16/21b 3 2 junction of the Witch Ground, Central and South Viking Grabens. The
Arco
20a BALMORAL reservoir was discovered by Well 15/30-1 drilled in 1975. However, it was
1 4,22
9 a 23 3
2 not until 1987 that the full potential was confirmed. Appraisal drilling was
4 3
4
18
19 Ar. followed by a field-wide 3D seismic survey carried out in 1991 and 1992 and
13
15
16/21c
8 the results have enabled more accurate development plans to be
15/24a Ham. 15/25a Shell 6 Arco 16/22 assembled.
17
15/29a Tex. 22 GLAMIS 16/27a(N) Phil. The field will be exploited via a steel drilling, production, accommodation
PTARMIGAN 9 4 19 platform and a 17 km remote subsea production manifold. Wet gas export
4
PARLIAMENT will be achieved by a new dedicated 26 pipeline to St. Fergus. The wet gas
BOSUN 13 1 7 will be processed into dry gas and NGL sales products. Produced
2 6 2 25
2
condensates will be separated offshore and exported via a 12 pipeline to
7 3 8 1
5
5
10 21 the Forties pipeline system. The gas pipeline will have a capacity of 740,000
10 7 5 15 11 14 9 4
5 3
6
ANDREW MMscf/d, and the condensate line will handle up to 76,000 barrels per day.
2,2a
9
23a Britannia was given government approval in December 1994 and is
24
17 10 16 16/27a(S) 16 unique in that the operatorship is shared between two companies (Conoco
BRITANNIA 5
4 Lasmo 1,1a
20 ALBA 7
16/27b 3 and Chevron). Development drilling has commenced. Production start up is
12 5
15/29b Con. 15/30 16/26 Chev. 8 Chev. anticipated for October 1998 and gas reserves are to be sold entirely to the
5 4 21/5a Con. 2 22/1b Amoco 5
independent gas market.
6
The current interests in the Britannia field in per cent are:
8 CHESTNUT
4,4a 10
7
5 *Conoco (UK) Ltd 42.41
8 5
3 4 22/2a *Chevron UK Limited 30.20
2,2a
21/4b 3 3
Prem. 22/2c Union Texas Petroleum Holdings Inc 9.42
22/1a
Con. Amoco 4
Clyde Santa Fe Exploration (UK) Limited 9.01
2 21/5c Con. 7 1,1a 9
1
Phillips Petroleum Company UK Limited 6.78
1 21/4a Fina 22/2b 3 2 Texaco North Sea UK Limited 2.18
21/5b Fina 1 22/1c Clyde
joint operators *

LOCAL SETTING

Britannia, previously known as Kilda and Lapworth, is located in the


Central North Sea some 200 kms north east of Aberdeen. The field sprawls
across four blocks (15/29a, 15/30, 16/26, 16/27a and 16/27b) and underlies
the Alba oil reservoir which is currently on stream.
The reservoir is of Lower Cretaceous age and comprises sandstones of
the Kopervik Member of the Sola Formation.
The field is surrounded by smaller oil and gas accumulations at Eocene,
RESERVOIR CHARACTERISTICS Paleocene, Cretaceous and Jurassic levels - Bosun and Alder due west in
Block 15/29, Ptarmigan and Parliament to the north in blocks 15/29 and
Fluid Properties 16/26 respectively, and Cyrus and Andrew to the east in block 16/28. Other
discoveries may be made in this area, due to the continued drilling
Gas Gravity SG(air=1) 0.70 programme and further extension of the Britannia field.
Condensate Gas Ratio (bbl/MMscf)) 6-120
Gas Expansion Factor @ Pi (scf/rcf) 270
Reservoir Pressure Pi (psia) 6081 FIELD DESCRIPTION
At Datum Depth of (ft TVDSS) 12744
Reservoir Temperature (F) 250 The Britannia reservoir is a large elongate structure with predominantly
dip and stratigraphic closure at Lower Cretaceous Kopervik Sandstone
Rock Properties level. No published structure map information is available, but released well
data indicates a northward pinchout and stratigraphic closure and a
southern dip closure. The reservoir section is typically up to 600 feet thick,
Rock Type Sandstone
consisting of correlatable sandstone units separated by correlatable shales.
Stratigraphic Unit Kopervik Formation Porosities and permeabilities are fair to moderate, with values typically of 5-
Geological Age Lower Cretaceous 18 per cent. and 0.1 - 10 md respectively.
Average Porosity (per cent.) 5-18 The reservoir contains a gas condensate which has tested at 12-36
Average Permeability (md) 0.1-10 MMscf/day of gas and up to 3700 b/d of 35-55 API gravity condensate. The
Average Water Saturation (per cent.) condensate gas ratio is in the range 60 to 120 barrels per million standard
Gas Water Contact (ft TVDSS) approx. 13125 (variable) cubic feet, though some tests suggest that it is higher. The gas condensate
Depth to Top of Structure (ft TVDSS) approx. is underlain by a thin oil rim.
Britannia is currently the largest undeveloped gas/condensate discovery
Reserves in the UK Sector of the North Sea. Estimated recoverable reserves are
approximately 2.8 trillion standard cubic feet of natural gas and up to 147
Total Reserves (Gas, NGLs) (Bcf, MMstb) 2800, 147 million barrels of condensate and natural gas liquids. Production was
originally scheduled for 1997, but has been delayed for a year due to the
Gas/NGL Production to 31.12.95 (Bcf, MMstb) 0, 0
complexities involved in the development of such an extensive field. These
Remaining Gas/NGL Reserves (Bcf, MMstb) 2800, 147 included finding a buyer for the huge gas reserves as well as co-ordinating
the objectives of such a large number of partners. The latter problem was
Production overcome in November 1994 with the establishment of Britannia Operator
Limited, (BOL) a company owned 50/50 by Chevron and Conoco. This was
Water Depth (feet) 450 formed after a unique agreement, to allow BOL to act as the single operator
Production Start Date October 1998 in the development of the field.
Peak Gas/condensate Production (MMscf/d, Mstb/d) 550, 44 The delay in development also allowed more time for the partners
Achieved in 1999 (expected) involved in the project to pursue opportunities to cut costs and to
Platform(s) 1 + one or two subsea templates concentrate on extra commercial options for the sale of the gas and
Number of Wells 45 (anticipated) associated liquids. It was eventually decided in late 1994 that most of the
Gas and NGL Export Gas via pipeline to St. Fergus gas produced in Britannias expected 30 year life would be purchased by a
small group of private sector buyers other than British Gas plc.
Liquids via Forties pipeline system
The Britannia development will consist of a steel drilling production and
accommodation platform and a subsea manifold centre some 15km to the
west, together with offtake pipelines and onshore processing. A smaller
subsea satellite may be included in the future. To exploit the field fully it is
considered that approximately 45 development wells may be required,
although up to a total of 63 wells (28 subsea and 35 platform) could be used
in the distant future if subsea clusters are tied into the development. It is
considered that 17 of these wells will be pre-drilled, thus enabling sales
targets to be met from day one of production.
Condensate from the field will be transported onshore via the Forties
Pipeline System, whilst gas and gas liquids will be transported to and
processed at Mobil's SAGE.
STRATIGRAPHY AND STRUCTURE

The Britannia field is located at the southeastern end of the Witch Ground Graben associated basin margin uplift. This uplift led to the rejuvenation of sediment

UNITED KINGDOM
at the junction with the South Viking and Central Grabens. sources, either in the Fladen Ground Spur area to the north, or more likely the Witch
The reservoir is combination dip and stratigraphic closure, with sands pinching Ground Graben/Moray Firth area to the northwest. The Kopervik sandstones are

Britannia
out to the north against the Fladen Ground Spur, and dipping below the hydrocarbon localised in extent, and are thought to represent a regressive stage within the larger
water contact to the south. At the time of publication, no detailed top structure map Aptian transgression which culminated in the later deposition of the Upper
was available in published literature. Cretaceous chalk. The main seal for the reservoir are thick shale dominated
The reservoir is comprised of Lower Cretaceous Kopervik Member of the Sola sequences of the upper part of the Sola Formation. The reservoir is buried below a
Formation sands, which are Late Barremian to Late Aptian in age. The sandstone thick sequence of Upper Cretaceous chalk and Tertiary sandstones and shales.
deposition is believed to be initiated by Early Cretaceous tectonic movements and

INTERPRETATIVE STRUCTURAL CROSS SECTION


Britannia Field
S N

TERTIARY

Chalk Group
UPPER CRETACEOUS

Cromer Knoll Gp

Kopervick Sandstone Member


LOWER CRETACEOUS

JURASSIC and older

(After Bisewski, 1990)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Kopervik sandstone sequence represents deposition within an oxygenated, The Kopervik Sandstone Member comprises three informal units; the Reservoir
open marine, deep sea setting which matured into a more restricted environment. Unit at the base, which is then overlain by the shaley Hedbergella Marker, which is
Sediment was supplied via high density sand rich turbidity currents, either from the itself followed by the Ratty Unit. The Kopervik sands are generally poorly sorted,
north, northwest or a combination of the two. Turbidites flowed down sea-floor pale coloured, mainly fine to medium grained and are associated with dark grey, non-
palaeoslopes and concentrated their deposition in the seafloor topographic low in the calcareous shales. The sands show many features characteristic of deposition and
axis of the basin. Northward pinch out represents probable onlap of the sands onto deformation from high density turbidity currents. The sands are sharp based, often
the relatively high basin margin areas, where turbidite flows were uncommon and poorly sorted, often structureless, but locally with water escape structures, slump
where deposited sediment was unstable. Intervals of correlatable shale probably structures, current ripples and intraformational rip-up mudclasts.
reflect periods of quiescence in between periods of sand supply, allowing blankets of
marine shale to accumulate.

REPRESENTATIVE WELL SECTION - 16/26-3

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) ROCK ( g/cc )
0 150 1.95 2.95

AGE
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON
(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15
Marine chalky limestone forming a regionally
extensive blanket

Marine shale, forming a sheet geometry


UPPER CRETACEOUS
CHALK GROUP

top seal to the reservoir


16/26-3

Marine turbidite sandstones and marine shales


12600

Geometry
Sheet to lenticular geometry sands pinching
out to the north
and K
Moderate and poor in thin sands
Marine shale forming a sheet geometry,
laterally extensive unit

Marine, thick, stacked turbidite sandstones


and minor shales
KOPERVIK SANDSTONE MEMBER

Geometry
CROMER KNOLL GROUP

12700

Sheet geometry sand unit, thinning and


LOWER CRETACEOUS

pinching out to the north

and K
Generally moderate in the sands, except
where locally cemented and argillaceous

Marine shale forming a sheet geometry unit


12800

interbedded with thin turbidite sandstones

Stacked, turbidite sandstone sequence

Geometry
Sheet geometry sandstone, thinning to
the north

and K
Generally moderate in clean sands, poor
where cemented and/or muddy
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
15/29-3 15/30-2 16/26-2 16/26-9 16/27B-4Z
16/26-3 10000
4

Britannia
1
1000

Cromer Knoll Group


100
2
5

PERMEABILITY (md.)
0

10
3
100 ft

1. Ratty unit
2. Hedbergella marker
3. Reservoir unit
1
4. Argillaceous unit
5. Kopervik sandstone 6
6. Unit V

The Kopervik Sandstone Member contains the deposits of a variety of gravity flow and 0.1
related facies. The section can be subdivided into three broad depositional events with a
basal part dominated by liquefied sands and slumped deposits associated with steep and
unstable slopes. The middle section is dominated by clean, high density turbidites, and the Well 16/26-3
upper part is characterised by thinly interbedded sands and shales reflecting sedimentation Well 15/30-3
from a waning sediment supply. 0.01
Within the three fold reservoir subdivision, additional sand and shale correlations can be 0 10 20 30
made, at least locally, further to subdivide the sequence. POROSITY (per cent.)
Reservoir quality is largely linked to facies type, with the best quality in the cleanest and
coarsest grained sands. However, overall the reservoir quality has been reduced to the
observed level due to a combination of deep burial and the development of a wide range of Porosity and permeability trends are principally controlled by
mineral cements and clays. As a result, reservoir quality shows a relatively restricted range primary facies variations. The liquefied sands and debris flow sands
of typically 10 to 18 per cent., and 0.1 to 10md. offer little in the way of reservoir quality material due to high detrital
The principal facies types are as follows: clay content and poor sorting. The laminated facies of the turbidites
Debris flow sands; these are rare and are possibly linked with localised fault movement offer intermediate reservoir quality sands and the cleaner turbidite
which penetrated the muddy sea bed substrate, or sediment instability on the basin floor. sands show the best reservoir quality.
Liquefied sands; these are common although their distribution is interpreted to be related However, deep burial and abundant authigenic cements and
to steep, active palaeoslopes. The sands appear grey in core due to high detrital clay clays have served to reduce the overall magnitude of reservoir
content with occasional off-white streaks which represent deformed water escape pillars. quality to that observed. Pervasive calcite and quartz cements,
High density turbidites; these represent the main reservoir quality sands and are the together with chlorite and kaolinite clays are the main cementing
most abundant sandstone facies. Detrital clay content is commonly minimal and porosities phases. Local concretionary calcite cements totally obliterate
and permeabilities are therefore optimal. These display water escape structures. porosity, but these are local effects only.
A more clay-prone facies comprises laminated sands with moderate reservoir quality and
the muddiest facies component comprises centimetre to decimetre scale interbedded sands
and shales.

FLUID PROPERTIES RESERVOIR PRESSURE

The Britannia field contains a moderately rich gas condensate accumulation. There is The reservoir is slightly overpressured relative to a hydrostatic
some variation in gas properties across the field. Well 16/26-3, in the east of the field, has gradient to surface of 0.45 psi/ft. From released well data a
a dew point of 5902 psia, some 30 psi less than the initial reservoir pressure, and a gas hydrocarbon-water contact is identified at 13125 feet TVDSS,
gravity of 0.70 (air =1) whereas Well 15/30-1, in the west of the field, has a dew point of though some data suggest that different contacts may occur, and
5660 psia some 420 psi less than initial reservoir pressure.The gas expansion factor, Eg, at that there may be some field compartmentalisation.
the initial reservoir pressure is approximately 270 scf/rcf. Well condensate gas ratios varied
on test, typically in the range 60 to 120 stb/MMscf, and the field CGR is forecast to be 95
stb/MMscf at peak production. 11000

Composition West East 1.2 400


(15/30-1) (16/26-3)
(DST 1) (DST 3)
GAS EXPANSION FACTOR (scf/rcf)

(mol %) (mol %)
GAS DEVIATION FACTOR, Z

1.1 300
N2 0.70 0.32
DEPTH (feet TVDSS)

CO2 1.77 1.99 12000


C1 76.58 81.95 Eg 0.14 psi/ft
C2 6.49 6.99
C3 3.19 2.81 1.0 200
iC4 0.51 0.48 z factor
nC4 1.26 0.94
iC5 0.42 0.27
nC5 0.61 0.36 0.9 100
C6 1.00 0.42 13000
C7/C7+ 7.47 0.77 HWC @ 13125 ft TVDSS
C8 0.61 Based on Well 16/26-3 composition
C9 0.37 PVT data from correlations
0.8 0
C10+ 1.72 0.47 psi/ft
0 2000 4000 6000
100.00 100.00 PRESSURE (psig)

14000
5700 5900 6100 6300 6500
CONTROLS ON RECOVERY INITIAL RESERVOIR PRESSURE (psig)

Recovery of wet gas should not be adversely affected if the field proves to be
compartmentalised providing that sufficient wells are drilled and the spacing adjusted so
that each compartment is adequately drained. Recovery factors of 70 to 75 per cent should
be possible by a process of natural depletion. The main control on the recovery will be the
degree of connectivity of the reservoir sands, both laterally and vertically. A combination of
faulting, layered shales and discrete sand bodies (turbidites) make this a highly complex
reservoir. The operator recognises this fact and has allowed for spare drilling slots should
extra wells be required to adequately drain the field.
FACILITIES SPECIFICATIONS

SCHEMATIC FIELD LAYOUT

UNITED KINGDOM
Water Depth 450
15/29a Texaco (feet)

Britannia
Platform Type steel jacket, 8 legged + remote subsea template
Function drilling/production/accommodation

Jacket Weight 19000


(tonnes)
16/27a Total Weight 47600
Phillips (tonnes)
16/27b
Chevron
Accommodation 140 max

Well Slots 50 (14 subsea, 36 jacket)


Wells Planned 45 (14 subsea, 31 platform)
16/26
16/27a
15/29b Conoco 15/30 Conoco Chevron Phillips PROCESSING AND EXPORT SPECIFICATIONS

Gas Export Throughput 740


26" Gas Export line 12" Condensate
(MMscf/day)
to St.Fergus Export line to Forties

Gas Export 26 x 195 km pipeline to St Fergus

Condensate Throughput
(Mbbl/day) 70

y
Condensate Export 12 x 45km spur to the Forties pipeline system

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
100 600
Pre Corporation Tax Liquid
Net Present Value 6,214.58 2,926.14 1,870.50 1,382.39 1,013.26 617.13 221.31 Gas

yyyy
Net Present Value (Deflated) 3,885.96 1,787.92 1,103.96 785.17 542.98 282.25 22.23

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 3.80 2.23 1.61 1.29 1.02 0.69 0.29 500
Profit/Inv Ratio (Deflated) 2.48 1.41 0.98 0.75 0.56 0.32 0.03
NPV/Unit Oil Equiv. 10.13 8.92 7.94 7.21 6.42 5.16 2.82 75
NPV/Unit Oil Equiv. (Deflated) 9.21 7.51 6.30 5.43 4.51 3.04 0.36
400
Payback Year 2001
Nominal Rate Of Return % 25.38
Real Rate Of Return % 20.63
50 300
Post Corporation Tax

yyyy
Net Present Value 4,093.57 1,921.85 1,203.31 867.17 611.32 335.34 59.02
Net Present Value (Deflated) 2,562.57 1,135.65 661.93 439.79 270.64 88.59 -91.53
200
Profit/Inv Ratio 2.50 1.46 1.04 0.81 0.61 0.38 0.08
Profit/Inv Ratio (Deflated) 1.64 0.90 0.59 0.42 0.28 0.10 -0.12
NPV/Unit Oil Equiv. 6.67 5.86 5.11 4.52 3.87 2.80 0.75 25
NPV/Unit Oil Equiv. (Deflated) 6.07 4.77 3.78 3.04 2.25 0.96 -1.48
100
Nominal Rate Of Return % 21.66
Real Rate Of Return % 17.05

Earnings Data 0 0
Gross Revenue 10,792.37 5,364.44 3,723.51 2,972.78 2,403.48 1,783.45 1,134.83 1995 2000 2005 2010 2015 2020 2025 2030
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 2,121.01 1,004.29 667.19 515.22 401.94 281.79 162.29
Capital Expenditure 1,636.18 1,312.10 1,160.46 1,073.04 994.81 892.10 752.15
Operating Costs 2,941.60 1,126.21 692.56 517.36 395.42 274.22 161.37

Gross Revenue (Deflated) 6,984.12 3,715.03 2,660.88 2,162.46 1,775.86 1,344.42 878.38
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 1,323.39 652.27 442.03 345.38 272.33 193.66 113.76
Capital Expenditure (Deflated) 1,565.18 1,264.89 1,123.15 1,041.05 967.33 870.15 737.02
Operating Costs (Deflated) 1,532.97 662.23 433.77 336.24 265.56 192.02 119.14

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1993 0.0 0.0 0.0 35.0 0.0 0.0 0.0 -35.0 -45.5 0.0 0.0 0.0
1994 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -59.2 0.0 0.0 0.0
1995 0.0 0.0 0.0 165.0 0.0 0.0 0.0 -165.0 -176.6 0.0 0.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
0.0 0.0 0.0 250.0 0.0 0.0 0.0 -250.0 -281.3 0.0 0.0 0.0

1996 0.0 0.0 0.0 480.0 0.0 0.0 0.0 -480.0 -461.9 0.0 0.0 0.0
1997 0.0 0.0 0.0 416.0 0.0 0.0 0.0 -416.0 -356.4 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1998 135.8 0.0 23.9 243.4 0.0 0.0 0.0 -131.5 -100.3 10.6 125.0 0.0
1999 613.1 0.0 71.8 56.3 0.0 0.0 0.0 485.0 329.1 44.0 550.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 2000 628.7 0.0 74.1 35.1 0.0 0.0 0.0 519.5 313.7 41.3 550.0 0.0
2001 644.2 0.0 76.4 36.6 0.0 57.0 57.0 474.3 254.9 38.5 550.0 0.0
Pre Corporation Tax 2002 660.3 0.0 78.8 38.0 0.0 147.6 147.6 395.8 189.3 35.8 550.0 0.0
2003 676.3 0.0 81.2 39.6 0.0 158.9 158.9 396.6 168.8 33.0 550.0 0.0
Net Present Value 6,464.58 3,649.78 2,626.31 2,115.11 1,703.90 1,226.83 684.11 2004 692.8 0.0 83.8 41.2 0.0 168.4 168.4 399.5 151.4 30.3 550.0 0.0
Net Present Value (Deflated) 4,146.14 2,342.99 1,671.93 1,331.74 1,055.00 729.74 353.06 2005 711.7 0.0 86.5 0.0 0.0 176.6 176.6 448.7 151.3 28.1 550.0 0.0
NPV/Unit Oil Equiv. 10.54 9.61 8.85 8.28 7.69 6.74 5.05 2006 643.8 0.0 88.5 0.0 0.0 188.0 188.0 367.2 110.2 22.8 484.4 0.0
2007 584.2 0.0 90.9 0.0 0.0 169.5 169.5 323.8 86.5 18.8 426.6 0.0
Post Corporation Tax 2008 529.9 0.0 93.4 0.0 0.0 152.5 152.5 284.0 67.5 15.4 375.7 0.0
2009 482.3 0.0 96.3 0.0 0.0 136.3 136.3 249.7 52.8 12.9 330.9 0.0
Net Present Value 4,343.57 2,487.19 1,785.84 1,429.36 1,139.20 798.26 403.67 2010 439.1 0.0 99.5 0.0 0.0 121.6 121.6 218.0 41.0 10.8 291.4 0.0
Net Present Value (Deflated) 2,822.76 1,587.91 1,115.10 872.04 672.39 435.22 156.49 2011 399.6 0.0 102.8 0.0 0.0 107.7 107.7 189.1 31.7 9.0 256.6 0.0
NPV/Unit Oil Equiv. 7.08 6.55 6.02 5.60 5.14 4.38 2.98 2012 363.8 0.0 106.4 0.0 0.0 94.7 94.7 162.7 24.3 7.5 226.0 0.0
2013 333.4 0.0 110.3 0.0 0.0 82.5 82.5 140.6 18.7 6.6 199.1 0.0
Earnings Data 2014 305.4 0.0 114.6 0.0 0.0 71.8 71.8 119.0 14.1 5.8 175.3 0.0
2015 279.8 0.0 115.8 0.0 0.0 61.6 61.6 102.4 10.8 5.1 154.4 0.0
Gross Revenue 10,792.37 6,210.01 4,690.56 3,956.77 3,376.72 2,712.40 1,960.99 2016 256.4 0.0 117.4 0.0 0.0 53.1 53.1 86.0 8.0 4.5 136.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2017 235.2 0.0 118.9 0.0 0.0 45.1 45.1 71.2 5.9 4.0 119.8 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2018 215.4 0.0 120.4 0.0 0.0 37.8 37.8 57.2 4.2 3.5 105.5 0.0
Corporation Tax 2,121.01 1,162.59 840.47 685.76 564.70 428.57 280.44 2019 197.4 0.0 122.0 0.0 0.0 30.9 30.9 44.5 2.9 3.1 92.9 0.0
Capital Expenditure 1,386.18 1,256.50 1,191.82 1,153.06 1,117.29 1,068.52 998.03 2020 180.6 0.0 120.2 0.0 0.0 24.6 24.6 35.9 2.1 2.7 81.8 0.0
Operating Costs 2,941.60 1,303.73 872.43 688.60 555.53 417.05 278.85 2021 165.6 0.0 118.9 0.0 0.0 19.7 19.7 27.0 1.4 2.4 72.0 0.0
2022 151.8 0.0 117.2 0.0 0.0 15.2 15.2 19.3 0.9 2.1 63.5 0.0
Gross Revenue (Deflated) 6,984.12 4,300.61 3,351.94 2,878.24 2,494.96 2,044.70 1,517.85 2023 138.6 0.0 116.2 0.0 0.0 11.3 11.3 11.2 0.5 1.8 55.9 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2024 127.1 0.0 114.5 0.0 0.0 7.3 7.3 5.3 0.2 1.6 49.2 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 1,323.39 755.08 556.83 459.70 382.61 294.53 196.57 2025 0.0 0.0 280.7 0.0 0.0 -18.6 -18.6 -262.1 -8.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 1,305.00 1,191.01 1,133.58 1,098.96 1,066.88 1,022.92 958.92
Operating Costs (Deflated) 1,532.97 766.61 546.43 447.54 373.09 292.04 205.87 Total 10,792.4 0.0 2,941.6 1,386.2 0.0 2,121.0 2,121.0 4,343.6 1,115.1 146.7 2,800.3 0.0

These cash flows include Britannia field only


9/3 Rel. 9/4b Rel. 9/4a Amoco 9/4c 9/5b SUMMARY
Amoco Rel.

9/8b Rel. 9/9c Amoco 9/10a The Bruce field is located in Quadrant 9 approximately 350 km northeast
Total of Aberdeen in the UK Sector of the North Sea. The field was discovered in
1974 by Well 9/8a-1 and since that time over 25 wells have been drilled to
5(BP) delineate this complex structure which extends over Blocks 9/8a, 9/9b and
9/9a. It contains gas condensate in thick good quality Jurassic sands, with
minor oil in the Statfjord Formation.
The Annex B was accepted in September 1990, with start up of oil
9/9b BP 3 9/9a Total production in May 1993 and gas production in August 1993. The field is
4
3 9 developed by 2 bridge linked steel platforms on the eastern part of the field
11 (installed in May 1992), operating by simple pressure depletion.
7 9/10c
8 Rel. Phase 2 of the development was expected to be a subsea production
5 2
2 unit located in the western part of the field tied back to the Bruce production
9/8a 13 14 platform. However, good reservoir and production performance and the
Hamilton
13
12 7 6 1 current underlifting of gas by British Gas means there is no immediate need
6 for the Western Area Development (WAD) project. Therefore, the start-up
1 12 4
date has been deferred from 1997 to 1998. Further, there is a possibility that
BRUCE 10 1,1A the western area may now be developed by extended reach drilling from the
9 existing platform. Any future developments (such as WAD and the
3 exploitation of a recently discovered oil pool located in the North Central
8 area around Well A13) are likely to require modifications for handling
14
KEITH 10 additional quantities of oil.
11 9/10b
Wet gas from the field is transported to St. Fergus via the Frigg line.
15,17
9/9d Mobil Total Liquids are transported to Forties by a 24" pipeline and on to Cruden Bay.
9/13d Mobil 54 16 40 9/14a Total 9/15a A unitisation agreement between the participating companies has been
Total reached. The split of reserves between Blocks 9/8a, 9/9a and 9/9b is
LINNHE 0 4 km approximately 26:33:41.
The current interests in Blocks 9/8a, 9/9a and 9/9b in per cent. are:-

BLOCK 9/8a (unitised 26%)


Deminex UK Oil and Gas Ltd 8.34
BP Exploration Operating Company Ltd 30.33
Elf (SNEA) 23.33
BHP-Hamilton Oil Great Britain plc * 36.33
Total Oil Marine plc 1.67

BLOCK 9/9a (unitised 33%)


Elf (SNEA) 66.67
Total Oil Marine plc* 33.33
RESERVOIR CHARACTERISTICS
BLOCK 9/9b (unitised 41%)
Deminex UK Oil and Gas Ltd 3.68
Fluid Properties
BP Exploration Operating Company Ltd** 70.60
Elf (SNEA) 10.29
Condensate Gas Ratio (bbl/MMscf) 100 BHP-Hamilton Oil Great Britain plc 14.70
Dew Point Pressure (psig) 5700 TOTAL Oil Marine plc 0.73
Original Reservoir Pressure, Pi (psig) 5800
At Datum Depth of (ft TVDSS) 12500 Block operator *
Reservoir Temperature (F) 220 Field operator **

Rock Properties

Rock Type Sandstone LOCAL SETTING


Stratigraphic Unit Beryl
Geological Age Middle Jurassic The Bruce field lies in the Beryl Embayment of the South Viking Graben
Porosity Range (per cent.) 10-20 immediately north of the producing Beryl oil and gas fields which also
Permeability Range (md) 10-2000 produce from Middle Jurassic reservoir sands. The Heimdal field to the
Connate Water Saturation (per cent.) 15-30 southeast across the UK-Norwegian boundary contains gas in the
Gas Water Contact (ft TVDSS) 12418 (main)/>12864 (West) Paleocene whilst the giant Frigg field to the northeast contains gas in the
Depth to Top of Structure (ft TVDSS) Eocene.

Reserves

Total Oil and NGL Reserves (MMstb) 215 FIELD DESCRIPTION


Total Gas Reserves (Bcf) 2600
Est. Oil & NGL Production to 31.12.95. (MMstb) 45 The Bruce field structure is controlled by major regional northeast-
Est. Gas Production to 31.12.95. (Bcf) 363 southwest trending faults. Drilling results also indicate a high density of
Remaining Oill & NGL Reserves (MMstb) 170 intra-field faults. Gas condensate is contained in Middle Jurassic Beryl C
Remaining Gas Reserves (Bcf) 2237 sands (locally referred to as the Bruce Formation) over 1000 feet thick,
deposited in a fluvially dominated delta system. Porosity and permeability
Production are moderate to good such that high initial well offtake rates are generally
achieved. Due to reservoir compartmentalisation, however, careful well
Water depth (feet) 387 placement will be required to achieve efficient drainage. In addition to the
Production Start Date May 1993 Jurassic reservoir, to the north east is a shallower high pressure
Peak Production - gas/condensate pocket in the Shetland Group (Turonian), and an oil pocket
Oil and Condensate/Gas (stb/day)/(MMscf/day) 53000/500 in the east occurs in the Statfjord horizon. Production from the oil bearing
Platforms 2 bridge linked steel jackets Statfjord horizon began in May 1993, ahead of planned start-up, and is
+ 1 planned subsea completion transported via pipeline direct to Forties and onto Cruden Bay.
Number of Wells 32 slots Reservoir compartmentalisation also precludes large scale gas re-
Liquids Export 150 km pipeline to Forties injection for optimisation of condensate recovery and the development plan
involves pressure depletion only. Well results indicate variability in
onwards to Cruden Bay
producing condensate-gas ratios although, averaging around 100
Gas Export Frigg pipeline to
bbl/MMscf, the reservoir fluid is clearly rich in liquids.
St. Fergus
The field is operated by BP on behalf of partners in Blocks 9/8a, 9/9b and
9/9a and first gas was produced in October 1993. British Gas is contracted
to buy 90 per cent. of the field's gas production. The remaining 10 per cent.
fuels a Northamptonshire electricity generating station. At the time this was
the first direct contract between a North Sea producer and an independent
generator. The Keith oil discovery to the south is regarded as being
separate from Bruce and may be developed by a subsea tieback to Bruce;
production from Keith is not expected until at least 1998.
STRATIGRAPHY AND STRUCTURE
EASTERN
The principal reservoir horizon in the Bruce field is the TERRACES

UNITED KINGDOM
Brent Group, Beryl C Formation sandstone, of Middle
Jurassic Bathonian age. These sediments overlie Dunlin 4
3750
3750

Group mudstones, Statfjord Formation sandstones or 9/8a 9/9b 9/9a

Bruce
0
sediments of the Triassic Group. The overlying sandstones

375
of the Beryl D Formation form poorer quality reservoir rocks. 3
3
Well 9/8-1 encountered 800 feet of gas condensate bearing
3500 9 3500
sands at a depth of around 12300 feet TVDSS. The structure
has a culmination more than 500 feet above this. The 0
400

3750
Heather Formation mudstones seal the reservoir. 2B
3750 13Z 8
The Bruce field is located in the Beryl Embayment close 5

3500
50
to the western margin of the South Viking Graben. Northeast 2 32
WESTERN

32
- southwest trending listric faults, sub-parallel to the margin

50
13
FLANK 7
of the East Shetland Platform and down throwing to the east CENTRAL 1

0
14

375
6
define the Beryl Embayment and dissect the Bruce field 6AZ PANEL
area.

3750
12
EASTERN
The Bruce structure is bounded by a complex 325
0
HIGH
combination of dip and fault closure. 4Z

SEDIMENTOLOGY AND DEPOSITIONAL BRUCE


50 0

4250
37 10 350
ENVIRONMENT 9 TOP BERYL FORMATION
DEPTH STRUCTURE
The lower part of Beryl C represents an interval of 8 9/9d 0 2 km
interbedded lagoonal back sandstones and mudstones
overlain by a unit of delta shoreline sandstones. This lower (Contours in metres)

section is commonly capped by a laterally extensive


(From Beckley A, et al 1991)
(fieldwide) coal, representing temporary abandonment of the
deltaic lobe. A relatively thick, widespread sand unit of
medium to coarse grained, clean, cross-bedded sandstones
comprising stacked marine and locally normally graded units is interpreted as delta bioturbated sandstones with minor mudstones represent shoreface shallow marine
shoreline sandstones. These distributary channel and mouth bar sandstones form deposits and locally contain cleaner, coarser grained barrier bar or shoal
the principal reservoir unit in the Bruce field. A sharp upwards increase in gamma log sandstones. Low energy, more argillaceous marine sediments become dominant
reading and decrease in porosity and permeability (in core) are observed in the towards the top of the Beryl D.
overlying Beryl D sediments. These generally argillaceous, commonly burrowed and

INTERPRETATIVE STRUCTURAL CROSS SECTION

9/8-5
Feet
W E

TERTIARY

5000
BASEMENT PALEOCENE UPPER CRETACEOUS

10000
JURASSIC

TRIASSIC
15000
Zechstein Group

20000
0 1 2 3 4 5 km

REPRESENTATIVE WELL SECTION - 9/8a-7A


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY


9/8a-7A UNIT NEUTRON
VC

VF

(PERCENT) (md) (Limestone units)


M
C

B C P 40 0 0.1 10000 45 -15

Shoreface/shallow marine sandstones with


BERYL D FORMATION

thin marine mudstones.


HUMBER GROUP

12700

Geometry
Broad, sheetlike sediment body including
thin, laterally extensive mudstones.

and K
of sandstones poor to moderate, K of
sandstones very poor, locally good.
Mudstones and argillaceous horizons may
act as vertical K baffles.

Delta shoreline sandstones comprising


distributary channel and mouth bar sandstones
with rare thin interchannel/bay mudstones.
MIDDLE JURASSIC

12800

Geometry
Elongate, lenticular sandstones stacked and
coalesced to form sheet geometry sediment
body.
BERYL C FORMATION

and K
BRENT GROUP

generally moderate, locally poor,


becoming moderate to very good. Locally
very poor to poor.
12900
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
9/8-2
10000
9/8-7A
i on
at
rm
Fo

Bruce
r
he
at
W He
9/8-1 1000

5
A. Heather Formation
B. Triassic Group

100
4

PERMEABILITY (md.)
E
3 9/9-2
10
A

Humber Group
2

1
TD

Beryl D
Dunlin Group 1

0
Statfjord Formation
100

Brent Group
Beryl C
Cormorant Formation 200 feet
0.1

TD
B
TD

0.01
0 10 20 30
The sediments of the Beryl C and D Formations which comprise the reservoir rocks in
POROSITY (per cent.)
the Bruce field can be subdivided into five reservoir zones based on the sedimentological
lithostratigraphic units. The basal zone corresponds to the interbedded lagoon and
backshore sediments at the base of Beryl C which occur mainly in the west of the area. The Porosities in Bruce field reservoir sandstones are generally
second zone comprises a laterally extensive sheet of delta shoreline sandstones capped by moderate to good, typically 10 to 20 per cent. Permeabilities are
a fieldwide coal or equivalent muddy horizon. commonly good, typically ranging from 10 to 2000 md.
The third zone corresponds to the principal reservoir horizon of delta shoreline The main controls on trends in porosity and permeability values
sediments and forms a relatively thick, sheetlike unit of stacked and coalesced broad, are the primary textural characteristics and hence facies. The better
elongate, lenticular sandbodies. The fourth and fifth zones, at the top of the reservoir reservoir quality sediments are the delta shoreline sandstones of
section, comprise laterally extensive units of poorer reservoir quality sandstones with minor units 2 and 3, with lower values observed in the finer grained, more
mudstones. The sediments become increasingly argillaceous towards the upper part of the argillaceous units 1, 4 and 5.
section and unit 5 may be non-reservoir over most of the area. Intervals of cleaner, coarser
sandstones in unit 4 are likely to represent lenticular sandbodies, isolated within the more
argillaceous sediments.

FLUID PROPERTIES RESERVOIR PRESSURE

The Bruce field contains a rich gas condensate which probably exhibits a compositional Based on available well data, it is apparent that at least two
variation with depth. Samples from Well 9/8-7A exhibit a dew point pressure of around 5700 separate pressure regimes exist with different hydrocarbon-water
psig and a maximum retrograde liquid saturation of 17 per cent. contacts. Well 9/9-2 encountered a contact at 12418 feet TVDSS
whilst wells in the west of the field gas condensate was encountered
to at least 12864 feet TVDSS.
1.2 20
VOLUME OF RETROGRADE LIQUID (%)

Vol. of Retrograde Liquid


11500
GAS DEVIATION FACTOR Z

1.1 15

1.0 10 9/9-2

12000
DEPTH (feet TVDSS)

0.9 5 0.15 psi/ft


Z
9/8-6A

0.8 0
HWC @ 12418 ft TVDSS
0 1000 2000 3000 4000 5000 6000
12500
PRESSURE (psig) 9/8-7A 0.45 psi/ft

13000
5000 5500 6000 6500 7000
CONTROLS ON RECOVERY INITIAL RESERVOIR PRESSURE (psig)

Wet gas recovery is primarily dependent upon the eventual reservoir abandonment
pressure. This is controlled by permeability which, in this geological setting, is likely to be
quite variable across a field as large as Bruce. In addition, the field is apparently
compartmentalised by faulting which may prevent efficient drainage if development well
density is insufficient. Taking these factors into account, the wet gas recovery factor for
Bruce is expected to be moderate to good.
Retrograde condensate liquid will drop out as the reservoir pressure is reduced and this
could adversely effect well productivity, although permeability is likely to be sufficiently high
to sustain adequate production rates.
FACILITIES SPECIFICATIONS

UNITED KINGDOM
Water Depth ---------------------------- 387 -------------------------
(feet)
Platforms 2 bridge linked steel jackets

Bruce
Function Production Utilities & Drilling
Accommodation

Jacket Weight 9600 7700


(tonnes)
Total Weight 32725 18500
Accommodation 160

Well Slots 32
Wells 11 18

PROCESSING AND EXPORT SPECIFICATIONS

Liquid Throughput 240000


(peak) bbl/day)

Gas Throughput 525


(peak) (MMscf/day)

(A BP Photograph) Gas Export 32" x 6 km line connecting to Frigg St. Fergus


line

y
Liquid Export 24 x 248 km pipeline to Forties Unity Riser

yyyy
FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 100 500


Liquid
Net Present Value 2,723.53 1,300.46 802.40 562.22 375.40 168.93 -44.92
Net Present Value (Deflated) 2,054.85 894.38 488.66 293.03 141.02 -26.41 -197.77 Gas

yyyy
Profit/Inv Ratio 1.87 1.09 0.75 0.56 0.40 0.20 -0.06

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 1.27 0.67 0.40 0.26 0.13 -0.03 -0.23 400
NPV/Unit Oil Equiv. 4.20 3.58 3.00 2.55 2.04 1.18 -0.46
75
NPV/Unit Oil Equiv. (Deflated) 3.80 2.82 2.05 1.47 0.84 -0.20 -2.16

Payback Year 1997


Nominal Rate Of Return % 18.67
300
Real Rate Of Return % 14.45

Post Corporation Tax 50

yyyy
Net Present Value 1,778.85 816.44 468.54 298.73 165.78 18.14 -134.89
Net Present Value (Deflated) 1,317.58 506.68 217.68 77.47 -31.72 -151.91 -273.71 200
Profit/Inv Ratio 1.22 0.69 0.44 0.30 0.18 0.02 -0.18
Profit/Inv Ratio (Deflated) 0.82 0.38 0.18 0.07 -0.03 -0.15 -0.32
NPV/Unit Oil Equiv. 2.74 2.25 1.75 1.35 0.90 0.13 -1.39
NPV/Unit Oil Equiv. (Deflated) 2.44 1.60 0.91 0.39 -0.19 -1.15 -2.99 25
100
Nominal Rate Of Return % 15.46
Real Rate Of Return % 11.37

Earnings Data
0 0
Gross Revenue 7,914.12 4,201.33 3,011.13 2,450.97 2,017.93 1,536.26 1,017.49
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1990 2000 2010 2020
Petroleum Revenue Tax 535.03 256.78 165.82 124.47 93.87 62.07 32.00
Corporation Tax 944.68 484.02 333.86 263.49 209.62 150.79 89.97 Year
Capital Expenditure 1,453.53 1,190.95 1,070.40 1,001.29 939.55 858.43 747.14
Operating Costs 3,202.04 1,453.14 972.51 762.99 609.10 446.83 283.26

Gross Revenue (Deflated) 6,312.55 3,544.23 2,609.74 2,157.77 1,801.57 1,396.89 948.29
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 398.17 186.76 120.15 90.16 68.05 45.11 23.40
Corporation Tax (Deflated) 737.26 387.70 270.98 215.56 172.74 125.50 75.94
Capital Expenditure (Deflated) 1,616.21 1,343.53 1,216.01 1,142.18 1,075.75 987.73 865.64
Operating Costs (Deflated) 2,243.32 1,119.57 784.92 632.39 516.75 390.45 257.02

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1989 0.0 0.0 0.0 15.0 0.0 0.0 0.0 -15.0 -34.4 0.0 0.0 0.0
1990 0.0 0.0 0.0 205.0 0.0 0.0 0.0 -205.0 -403.4 0.0 0.0 0.0
1991 0.0 0.0 0.0 350.0 0.0 0.0 0.0 -350.0 -582.2 0.0 0.0 0.0
1992 0.0 0.0 0.0 465.0 0.0 0.0 0.0 -465.0 -677.1 0.0 0.0 0.0
1993 152.4 0.0 23.2 125.0 0.0 0.0 0.0 4.2 5.5 21.0 133.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1994 382.9 0.0 106.5 45.0 0.0 0.0 0.0 231.4 273.9 52.6 361.0 0.0
1995 448.8 0.0 122.0 25.0 0.0 0.0 0.0 301.8 323.0 47.7 500.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% Total To Start Of Discounting ( 1/JAN/1996)
984.0 0.0 251.7 1,230.0 0.0 0.0 0.0 -497.7 -1,094.7 44.3 362.8 0.0
Pre Corporation Tax
1996 470.2 0.0 122.4 10.0 0.0 0.0 0.0 337.8 325.1 48.7 500.0 0.0
Net Present Value 3,221.21 2,543.22 2,238.18 2,067.58 1,918.63 1,728.73 1,480.84 1997 495.4 0.0 127.3 0.0 0.0 40.2 40.2 327.9 280.9 48.7 500.0 0.0
Net Present Value (Deflated) 2,709.54 2,172.89 1,932.20 1,797.10 1,678.60 1,526.53 1,325.67 1998 515.2 0.0 132.4 10.8 0.0 98.2 98.2 273.7 208.6 48.7 500.0 0.0
NPV/Unit Oil Equiv. 5.93 6.36 6.53 6.62 6.69 6.78 6.88 1999 510.6 0.0 135.8 73.2 3.0 107.0 110.0 191.6 130.0 43.3 500.0 0.0
2000 507.7 0.0 139.4 111.3 0.0 103.9 103.9 153.1 92.5 38.5 500.0 0.0
Post Corporation Tax 2001 507.8 0.0 143.4 18.3 0.0 97.5 97.5 248.5 133.6 34.5 500.0 0.0
2002 509.2 0.0 147.7 0.0 104.9 100.7 205.6 155.8 74.5 30.9 500.0 0.0
Net Present Value 2,276.53 1,862.16 1,666.01 1,554.12 1,455.23 1,327.62 1,158.45 2003 453.3 0.0 139.9 0.0 107.9 62.0 170.0 143.4 61.1 26.7 426.4 0.0
Net Present Value (Deflated) 1,972.28 1,627.36 1,467.79 1,377.03 1,296.72 1,192.69 1,053.56 2004 403.8 0.0 133.2 0.0 85.1 58.4 143.6 127.0 48.1 23.1 363.5 0.0
NPV/Unit Oil Equiv. 4.19 4.66 4.86 4.97 5.07 5.20 5.38 2005 359.2 0.0 127.9 0.0 64.7 54.3 119.0 112.3 37.9 19.9 310.0 0.0
2006 319.9 0.0 123.4 0.0 46.2 50.1 96.3 100.2 30.1 17.2 264.3 0.0
Earnings Data 2007 285.1 0.0 119.7 0.0 29.4 46.1 75.5 89.9 24.0 14.9 225.4 0.0
2008 254.1 0.0 117.0 0.0 14.0 42.4 56.4 80.7 19.2 12.9 192.2 0.0
Gross Revenue 6,930.11 4,867.76 4,079.74 3,670.48 3,329.96 2,916.96 2,410.56 2009 226.1 0.0 114.9 0.0 76.0 29.5 105.4 5.8 1.2 11.1 163.9 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2010 200.7 0.0 113.6 0.0 45.8 16.4 62.2 24.9 4.7 9.5 139.7 0.0
Petroleum Revenue Tax 535.03 361.31 284.19 242.56 207.52 165.12 114.68 2011 179.5 0.0 112.8 0.0 35.3 12.9 48.2 18.6 3.1 8.3 119.2 0.0
Corporation Tax 944.68 681.06 572.17 513.46 463.39 401.11 322.39 2012 159.9 0.0 112.6 0.0 25.5 9.9 35.4 11.9 1.8 7.2 101.6 0.0
Capital Expenditure 223.53 184.32 165.10 153.75 143.42 129.61 110.33 2013 142.4 0.0 108.7 0.0 18.1 7.0 25.1 8.6 1.1 6.2 86.6 0.0
Operating Costs 2,950.34 1,778.91 1,392.27 1,206.58 1,060.39 893.50 704.72 2014 126.5 0.0 104.8 0.0 12.0 4.9 16.9 4.8 0.6 5.3 73.9 0.0
2015 113.5 0.0 101.4 0.0 7.0 3.1 10.1 2.1 0.2 4.7 63.0 0.0
Gross Revenue (Deflated) 5,283.18 3,894.46 3,341.07 3,046.94 2,798.07 2,490.43 2,103.07 2016 100.7 0.0 98.4 0.0 2.1 1.7 3.7 -1.4 -0.1 4.0 53.7 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2017 89.2 0.0 89.1 0.0 0.3 0.1 0.4 -0.3 -0.0 3.4 45.8 0.0
Petroleum Revenue Tax (Deflated) 398.17 262.79 205.92 175.70 150.44 120.00 83.85 Remain
Corporation Tax (Deflated) 737.26 545.54 464.41 420.07 381.88 333.84 272.11 2018 0.0 0.0 284.4 0.0 -142.2 -1.8 -144.0 -140.4 -10.4 0.0 0.0 0.0
Capital Expenditure (Deflated) 195.00 161.15 144.54 134.72 125.79 113.83 97.13
Operating Costs (Deflated) 1,980.47 1,297.64 1,058.41 939.42 843.24 730.07 596.42 Total 6,930.1 0.0 2,950.3 223.5 535.0 944.7 1,479.7 2,276.5 1,467.8 170.7 2,237.2 0.0

These cash flows include Bruce field only


14/30b Amerada Hess 15/26b BP SUMMARY

The Buchan field is located in Quadrants 20 and 21, approximately


20/5c Amerada Hess 21/1a BP 16
150 km northeast of Aberdeen, in the Outer Moray Firth. The field was
12 discovered by Well 21/1-1 in 1974 encountering oil in the Devonian
Buchan Formation.
NORTH Development began in 1980 using a converted semi-submersible rig
BUCHAN with first oil production in May 1981. A 12" pipeline transports oil to
3 Forties. This succeeded a catenary anchor leg mooring (CALM) in late
15 1986.
5 The current unitised interests in the Buchan field in per cent. are:-

BP Petroleum Development Ltd * 65.00


2 Goal Petroleum plc 17.25
13
2,4,6,7,9,11 Brabant UK Ltd 16.85
1
20/5b Texaco 1 Tuskar 0.90
A 3
21/1b Shell
4 A unitisation agreement in August 1982 allocated 90.76 per cent. to
8
BUCHAN Block 21/1 and 9.24 per cent. to Block 20/5.
20/5a Texaco
operator *
17

10b 20/10a Arco 21/6a BP 1 21/6b


Rel. Phillips
0 4 km

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Buchan field is located in the Outer Moray Firth Basin. The
reservoir occurs in a horst block of the Devonian Old Red Sandstone
Oil Gravity (API) 33 underlying Lower Cretaceous formations. Buchan is the only field in the
Gas/Oil Ratio (scf/stb) 330 area producing from the Devonian. To the northwest are situated
Bubble Point Pressure, Pb (psig) 1350 several Jurassic fields in the Witch Ground Graben: Claymore, Piper
Formation Volume Factor at Pi (rb/stb) 1.20 and the Tartan group of fields. To the southeast the Forties field
Oil Compressibility (vol/vol/psi) 10 x 10-6 produces from the Paleocene Forties Formation.
Original Reservoir Pressure, Pi (psig) 7650
At Datum Depth of (ft TVDSS) 10000
Reservoir Temperature (F) 222

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Buchan
Geological Age Devonian
Porosity Range (per cent.) 5-15
Permeability Range (md) 0.1-100
Connate Water Saturation (per cent.) 25-30
Oil Water Contact (ft TVDSS) 10380
Depth to Top of Structure (ft TVDSS) 8500

Reserves

Total Reserves (MMstb) 110


Est. Production to 31.12.1995 (MMstb) 100
Remaining Reserves (MMstb) 10

Production
FIELD DESCRIPTION
Water depth (feet) 387
Production Start Date May 1981 Buchan produces from Devonian sandstones developed within a
Peak Production (Oil) (stb/day) 32000 horst block bounding the southern margin of the Buchan Graben. The
Platform(s) Semi-Submersible reservoir occurs within alluvial plain deposits of Late Devonian age and
Number of Wells - Producers 5 up to 1500 feet in thickness. Porosity is low but the reservoir is highly
Subsea Satellite Producers 5 fractured and macroscopic permeabilities are much higher than those of
Oil and NGL Export Pipeline to Forties the matrix sandstone. The reservoir contains a black oil of moderate
Gas Export viscosity. Production start-up from the Buchan Alpha floating production
facility occurred in 1981 to a single buoy mooring with oil export by
tanker. This was superceded in 1986 by the installation of a 54 km
pipeline to Forties.
The recovery mechanism benefits from replenishment of the
fractures from the lower permeability matrix. A gas lift programme was
initiated in 1985 in order to maintain production levels.
Another accumulation, North Buchan, was discovered by Well
21/1a-12. Further appraisal is required to determine its size and
reserves.
To date some 90 per cent. of the Buchan reserves have been
produced.
STRATIGRAPHY AND STRUCTURE 20/5a 21/1a

The reservoir in the Buchan field comprises

UNITED KINGDOM
PRT FENCE
fractured Devonian sandstones which are referred to
as the Buchan Formation of the Upper Old Red
31

Buchan
Sandstone Group. These sediments are of 00 00 3400
33 OW
C3
uppermost Devonian age (upper Famennian to lower 165 3300 340
11 0
Tournaisian). 0
34
00 300 320 13 3200
3 0
Structurally the field is developed within a horst 270 3100
2800
block which bounds the southern margin of the 4 A
6
00 00
Buchan Graben. Definition of the structure began 00 32 31 1 7ST 2ST 3

3200
34

2900
2700
00

0
during the Oxfordian and it continued to be active into 33

300
1 14

3100

2900
3000
the Cretaceous. As a result, the Upper Devonian 00

28
10 270
0 31

00
9
Buchan Formation is draped by a thin sequence of
3200 30 3400
Lower Cretaceous and locally thin Kimmeridge Clay 8 00 00

31
31

00
Formation mudstones, which seal the reservoir. 0
310
00
34

00
3300
OWC 3165

33
SEDIMENTOLOGY AND DEPOSITIONAL 3200
ENVIRONMENT

The Buchan Formation was deposited as part of BUCHAN


an extensive alluvial plain which formed in response TOP BUCHAN FORMATION PRT FENCE
to regional sagging in the British Isles area during the DEPTH STRUCTURE
uppermost Devonian and Lower Carboniferous. Local
0 2 km
sediment sourcing may be indicated by the presence
of possible alluvial fan facies. In the Buchan field,
(Contours in metres)
stacked sequences of major channel deposits
comprising fining-upwards, cross-bedded, locally (After Edwards CW, 1991)
current rippled sandstones occur interbedded with
minor channel, channel margin and thinly bedded
laminated and current rippled sheetflood sandstones, with occasional, The generally sand-rich nature of the formation, with the presence of
generally thin, channel abandonment and overbank mudstones. Semi-arid stacked channel sequences, is indicative of a braided fluvial system, with
climatic conditions are indicated, both by the 'flash' nature of sedimentation channel tracts flanked by interchannel areas where minor channelised flow
and by the development of caliche horizons ('cornstones'). The latter are and sheetfloods developed in response to flood-stage drainage.
often only represented as intraformational conglomerate lags at the bases
of channel and sheetflood units.

INTERPRETATIVE STRUCTURAL CROSS SECTION


21/1-5 21/1-2
Feet
NW SE
0

POST PALEOCENE
2000

4000
PALEOCENE
6000

8000 UPPER CRETACEOUS

10000 DEVONIAN
(Buchan Formation)
LOWER CRETACEOUS
12000
Kimm. Clay Fm.
n
Formatio
14000 Heather
Piper/Sgiath Fm.

16000 Pentlan d Formation 0 1 2 3 km

REPRESENTATIVE WELL SECTION - 21/1-6


CORE CORE ANALYSIS DATA GAMMA RAY

DEPTH (feet)
DENSITY
(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0 10000 5 25 45 -15

Channel margin and sheetflood


sandstones with minor mudstones forming
part of alluvial plain sequence.

Geometry
9800

M
21/1-6 Lenticular to sheetlike sand units stacked
and coalesced to form thick, sheet
geometry sediment body, including thin,
frac. laterally impersistent mudstones.

rubble and K
poor to moderate, becoming moderate
in lower part.
K generally very poor to poor. Mudstones
UPPER OLD RED SANDSTONE GROUP

may locally restrict vertical flow.


and K enhanced due to fracturing.
BUCHAN FORMATION
9900
DEVONIAN

frac.

rubble
10000

frac.
rubble
(
)
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000

Buchan
1000
Ephemeral lake
Minor mudstone in mudstones
channel tract

100

PERMEABILITY (md.)
10

Stacked sheetflood
Stacked channel fill sandstones
sequences

The alluvial plain sediments of the Buchan Formation form a thick, sheetlike sediment 0.1

body. This is internally composed of elongate, lenticular channel-fill sandbodies and


sheetlike to lobate sheetflood sandstones with minor, thin mudstones of variable, but
generally limited lateral extent. Zonation of the reservoir on the basis of facies or lithology
is not considered to be significant in Buchan, as high well productivities result from a well
distributed, relatively high permeability fracture system, oil being replenished by fluid from 0.01
0 10 20 30
the relatively low permeability matrix.
POROSITY (per cent.)

The reservoir rock is characterised by a matrix of very poor


permeability and poor to moderate porosity plus a high density of
fracturing with poor porosity (increased in the oil zone) but moderate
permeability. Matrix porosities and permeabilities are about 10 per
cent. and less than 1 md respectively, and fracture permeabilities
range up to 100 md.
As well as compaction effects, porosity and permeability are
principally reduced by the combined effects of quartz, dolomite,
calcite, illite and chlorite cements, which block pores and pore
throats. Intergranular porosity is best preserved where grain-coating
clays have restricted quartz cementation. Fractures in the water
zone are generally cemented, but are locally only partially cemented
FLUID PROPERTIES (pyrite, quartz, dolomite) and preserve porosity. In the oil zone,
abundant fracture porosity (and thus permeability) enhances
The reservoir fluid is a moderately light black oil. Oil gravity is 33 degrees API and GOR connectivity between intergranular pores.
330 scf/stb. The oil viscosity is moderate, about 1.5 cp at reservoir conditions.

400 1.40 4.0

1.35 B0

300 1.30 GOR 3.0


GOR (scf/stb)

1.25
B0 (rb/stb)

0 (cp)

200 1.20 2.0

1.15

100 1.10 0 1.0


RESERVOIR PRESSURE
1.05
@ 222F (from correlation) The initial Buchan reservoir pressure was 7650 psig at a datum
0 1.00 0.0
0 1000 2000 3000 4000 5000 6000 7000 8000
depth of 10000 ft TVDSS, overpressured by some 3000 psig relative
to a hydrostatic gradient to surface of 0.45 psi/ft.
PRESSURE (psig)

8000

8500

9000
DEPTH (feet TVDSS)

0.34 psi/ft

9500

CONTROLS ON RECOVERY 10000

Buchan is being produced by primary depletion, a relatively efficient process by normal OWC @ 10380 ft TVDSS
standards due to the high degree of original over-pressure. Adequate well productivity is 10500

provided by the well distributed fracture system and it appears that productivity has been 0.478 psi/ft
sustained as reservoir pressure drops, implying no significant closure of fractures.
The oil production rate has declined less rapidly than originally anticipated. This is 11000
6500 7000 7500 8000 8500
probably due to some degree of aquifer pressure support, and/or a higher oil initially in place
than currently mapped. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

UNITED KINGDOM
A Platform

Buchan
Water Depth 387
(feet)
Platform Type converted semi-submersible
Function production/accommodation

Displacement 19300
(tonnes)

Accommodation 112
Subsea Template:
Well Slots 8
Wells 4 on template + 5 subsea

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 72000


(bbl/day)

Oil Export 12.75" x 54 km pipeline to Forties

(Reproduced by permission of BP)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 40

Net Present Value 569.95 336.55 246.22 199.64 161.35 115.96 63.03
Net Present Value (Deflated) 725.42 379.50 244.74 175.15 118.02 50.52 -27.18

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio 1.73 1.24 1.01 0.88 0.76 0.60 0.37
Profit/Inv Ratio (Deflated) 0.87 0.54 0.38 0.29 0.21 0.10 -0.06
NPV/Unit Oil Equiv. 5.18 5.15 4.97 4.78 4.54 4.10 3.15 30
NPV/Unit Oil Equiv. (Deflated) 4.35 3.62 2.99 2.50 1.95 1.03 -0.76

Payback Year 1982


Nominal Rate Of Return % 31.70
Real Rate Of Return % 17.98

Post Corporation Tax 20

Net Present Value 329.11 190.50 135.53 106.87 83.16 54.83 21.53
Net Present Value (Deflated) 358.81 151.45 69.79 27.49 -7.25 -48.22 -94.99
Profit/Inv Ratio 1.00 0.70 0.56 0.47 0.39 0.28 0.13
Profit/Inv Ratio (Deflated) 0.43 0.21 0.11 0.05 -0.01 -0.09 -0.20
NPV/Unit Oil Equiv. 2.99 2.92 2.73 2.56 2.34 1.94 1.08 10
NPV/Unit Oil Equiv. (Deflated) 2.15 1.44 0.85 0.39 -0.12 -0.98 -2.65

Nominal Rate Of Return % 24.93


Real Rate Of Return % 11.55

Earnings Data
0
Gross Revenue 1,596.78 998.56 778.61 667.02 575.90 467.99 340.79 1980 1985 1990 1995 2000 2005
Royalty 128.10 80.74 63.01 53.95 46.52 37.70 27.26
Petroleum Revenue Tax 23.03 16.12 13.14 11.51 10.11 8.37 6.18 Year
Corporation Tax 240.84 146.06 110.69 92.76 78.20 61.13 41.51
Capital Expenditure 330.00 271.00 243.48 227.62 213.42 194.74 169.17
Operating Costs 531.41 282.86 202.90 165.28 136.22 103.94 69.20

Gross Revenue (Deflated) 2,556.18 1,682.55 1,344.37 1,168.06 1,021.28 843.68 628.20
Royalty (Deflated) 205.05 134.89 107.47 93.13 81.18 66.71 49.17
Petroleum Revenue Tax (Deflated) 40.46 28.42 23.22 20.36 17.91 14.85 11.00
Corporation Tax (Deflated) 366.61 228.06 174.96 147.66 125.27 98.74 67.80
Capital Expenditure (Deflated) 836.67 705.93 643.29 606.63 573.42 529.14 467.29
Operating Costs (Deflated) 717.93 409.56 304.48 253.39 212.96 166.79 115.13

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

ECONOMIC INDICATORS FROM 1/1/1996 1977 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -155.0 0.0 0.0 0.0
1978 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -618.2 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1979 0.0 0.0 0.0 75.0 0.0 0.0 0.0 -75.0 -792.4 0.0 0.0 0.0
1980 0.0 0.0 0.0 65.0 0.0 0.0 0.0 -65.0 -560.9 0.0 0.0 0.0
Pre Corporation Tax 1981 188.4 7.7 15.0 50.0 0.0 0.0 17.4 105.9 718.5 28.0 0.0 0.0
1982 152.7 16.6 25.0 5.0 0.0 0.0 20.8 101.9 571.3 22.0 0.0 0.0
Net Present Value 0.56 3.81 5.23 6.02 6.69 7.52 8.53 1983 233.0 18.8 30.0 5.0 14.5 0.3 33.9 164.1 785.0 32.0 0.0 0.0
Net Present Value (Deflated) 3.34 5.85 6.94 7.53 8.03 8.64 9.36 1984 150.5 18.4 35.0 25.0 3.4 79.0 100.7 -10.3 -43.6 18.0 0.0 0.0
NPV/Unit Oil Equiv. 0.06 0.42 0.61 0.72 0.83 0.99 1.21 1985 135.7 11.8 40.0 20.0 0.0 38.0 49.8 25.9 96.7 17.5 0.0 0.0
1986 83.0 8.1 20.0 15.0 4.2 30.0 42.3 5.8 18.8 23.0 0.0 0.0
Post Corporation Tax 1987 86.4 5.4 32.1 10.0 1.0 16.1 22.5 21.8 63.6 21.0 0.0 0.0
1988 62.1 3.7 33.1 0.0 0.0 14.6 18.3 10.7 28.2 20.0 0.0 0.0
Net Present Value -7.74 -4.09 -2.42 -1.49 -0.67 0.38 1.72 1989 48.7 2.6 28.7 0.0 0.0 7.4 10.0 9.9 22.8 12.0 0.0 0.0
Net Present Value (Deflated) -4.79 -1.87 -0.54 0.20 0.85 1.67 2.72 1990 86.7 5.4 32.0 0.0 0.0 4.5 9.9 44.9 88.3 18.0 0.0 0.0
NPV/Unit Oil Equiv. -0.77 -0.45 -0.28 -0.18 -0.08 0.05 0.24 1991 70.9 6.8 30.2 0.0 0.0 15.0 21.9 18.9 31.4 17.0 0.0 0.0
1992 51.7 4.9 27.6 0.0 0.0 10.8 15.7 8.4 12.3 13.0 0.0 0.0
Earnings Data 1993 45.5 3.8 25.0 0.0 0.0 6.1 9.8 10.7 13.9 11.0 0.0 0.0
1994 45.2 3.7 23.4 0.0 0.0 5.2 8.8 13.0 15.4 12.0 0.0 0.0
Gross Revenue 121.45 109.08 102.74 98.89 95.30 90.38 83.19 1995 34.7 3.3 20.4 0.0 0.0 5.6 8.9 5.4 5.8 9.0 0.0 0.0
Royalty 6.98 6.61 6.40 6.26 6.13 5.93 5.63 Total To Start Of Discounting ( 1/JAN/1996)
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,475.3 121.1 417.5 330.0 23.0 232.5 391.0 336.8 301.7 99.8 0.0 0.0
Corporation Tax 8.30 7.89 7.66 7.51 7.36 7.14 6.81
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1996 30.4 2.6 19.3 0.0 0.0 3.6 6.1 5.0 4.8 7.6 0.0 0.0
Operating Costs 113.91 98.66 91.10 86.60 82.48 76.92 69.03 1997 27.5 2.2 18.9 0.0 0.0 2.7 4.9 3.7 3.2 6.4 0.0 0.0
1998 24.2 1.8 18.7 0.0 0.0 2.0 3.9 1.6 1.2 5.4 0.0 0.0
Gross Revenue (Deflated) 113.53 102.35 96.60 93.10 89.84 85.36 78.81 1999 20.9 1.4 18.6 0.0 0.0 1.2 2.6 -0.2 -0.1 4.5 0.0 0.0
Royalty (Deflated) 6.82 6.44 6.23 6.09 5.96 5.76 5.46 2000 18.4 1.1 17.1 0.0 0.0 0.3 1.4 -0.1 -0.1 3.8 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 8.13 7.72 7.48 7.33 7.18 6.97 6.64 2001 0.0 -2.2 21.3 0.0 0.0 -1.5 -3.6 -17.7 -9.5 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 103.37 90.06 83.43 79.48 75.86 70.96 63.99 Total 121.4 7.0 113.9 0.0 0.0 8.3 15.3 -7.7 -0.5 10.1 0.0 0.0

These cash flows include Buchan field only


44/16 Lasmo 44/17 Conoco 44/18 Arco SUMMARY
44/21b Amerada 44/22c Conoco 10 44/23b Arco
8 The Caister field is located in the Silverpit Basin of the Southern
0 5 km HUNTER
8 North Sea Gas Basin some 150 km northeast of Dimlington. The field is
6 MURDOCH located entirely within Block 44/23a and was discovered in 1967 by Well
3 44/23a-1. Gas was first encountered in the Triassic Bunter Sandstone
44/21a Conoco 2 44/22a
3
Con. but subsequent drilling in 1984 showed another gas accumulation in the
BOULTON 7 4 1 Carboniferous Westphalian 'A' and 'B' sequences. The Triassic
5 7,7a
5 accumulation partly overlies the Carboniferous structure.
2 4 CAISTER Annex B approval was granted in April 1992 and the field started gas
10
6 production in 1993. The field has been developed in conjunction with
7 2
44/21c 44/22b Conoco 9 the nearby Murdoch field in Block 44/22a and is termed the Caister
Mustang 9 1 6 Murdoch System (CMS). The fields are operated separately and gas
3
1 4,4a,4RE 8 export is to Theddlethorpe via a shared pipeline.
5
44/23a Total
Participants in the field in per cent are:
44/26b Lasmo 44/27a 44/27c 44/ 44/28d 44/28a
Lasmo Mustang 27b Conoco
3 Shell Canadian Occidental 30.00
Las. LASMO 21.00
Total * 49.00
4
4
SCHOONER operator *
2 KETCH
44/26a 2
Shell 1
3

1 2,2a
1

5 44/28b
44/26c Amoco 44/28c Lasmo Shell

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Caister field is located in the Silverpit Basin area of the Southern
Bunter Carboniferous North Sea Gas Basin and contains gas in both the Triassic Bunter
Gas Gravity S.G.(air=1) 0.625 0.696 Sandstone and the Carboniferous Westphalian horizons. The nearest
Condensate Gas Ratio (bbl/MMscf) 1.6 20 producing gas fields, other than the nearby Murdoch field, are the
Gas Expansion Factor (vol/vol) 135 285 Esmond Complex, some 60 km to the northwest, which produces from
Reservoir Pressure, Pi (psig) 2048 6155 the Triassic Bunter sandstone, and the Rotliegendes Ravenspurn and
at Datum Depth of (ft TVDSS) 4363 12000 Ann/Audrey fields which lie some 90 km to the west and 50 km to the
Reservoir Temperature (F) 130 235 south respectively. The Markham field lies approximately 50 km to the
southeast and also contains gas in the Rotliegendes. The Murdoch field
Rock Properties is located just to the northwest of Caister and contains gas in the
Carboniferous but not in the Triassic.
Rock Type Sandstone Sandstone
Stratigraphic Unit Bunter Sandstone Fm Westphalian B Fm
Geological Age Early Triassic Carboniferous
Porosity Range (per cent.) 10 to 35 5 to 16
Permeability Range (md) 1 to 1000 0.1 to 100
Connate Water Saturation (per cent.) 20 30
Lowest Tested Gas (ft TVDSS) 4484 12084
Highest Gas (ft TVDSS) 4357 11905
Gas Water Contact (ft TVDSS) 4545 12105
FIELD DESCRIPTION
Reserves
The Caister field structure at the Triassic reservoir horizon is a
Total Gas Reserves (Bcf) -------------------------- 300 --------------------------- northwest-southeast elongated dome that is dip closed. The Bunter
Est. Gas Production to 31.12.95 (Bcf) --------------------------- 83 ---------------------------- reservoir interval comprises a sequence of interbedded sandstones,
Remaining Gas Reserves (Bcf) -------------------------- 217 --------------------------- siltstones and claystones deposited in a distal braidplain environment.
Seal is provided by the overlying Haisborough Group shales. Porosity
Production and permeability values are good. The gas held in the Bunter sediments
is dry with a high nitrogen content. No condensate was recovered. The
Water Depth (feet) 141 discovery well, 44/23a-1, was abandoned due to a blow out after testing
Production Start Date October 1993 the Bunter horizon and Well 44/23a-2 was drilled to plug the well. The
Peak Gas Production (yrly average) (MMscf/day) 120 in 1995 reservoir exhibits some depletion as a result of this blow out and
Platforms 1 not normally manned therefore shows a shift in the position of the gas water contact.
steel jacket The Carboniferous structure is a faulted northwest to southeast
Number of Wells 8 (including one appraisal well) trending anticline which exhibits both dip and fault closure. The
Gas Export Pipeline to Theddlethorpe structure lies on the same structural trend as the Murdoch field. The gas
bearing horizons are fluvial sediments of early Westphalian 'B' age and
the main reservoir horizon is termed the Caister Sand. The Caister
Sand is probably a laterally impersistent equivalent of the Murdoch
Sandstone, which forms the reservoir in the Murdoch field. Top reservoir
seal is provided by the shales of the Permian Silverpit Formation.
Porosity and permeability values are moderate. The Carboniferous
structure contains a wet gas with a moderate nitrogen content and
minor condensate.
The field consists of a single, not normally manned platform, with a
10 slot capacity. Eight wells have been drilled including one appraisal
well. Conoco (UK) Ltd have invested in development of a new
compressor or platform to boost capacity and this is anticipated in the
late 1990's. The field is part of the Caister Murdoch system (CMS) and
gas is exported by pipeline to Theddlethorpe.
CAISTER CAISTER
44/23b TOP BUNTER SAND 44/23b TOP CAISTER SAND

UNITED KINGDOM
DEPTH STRUCTURE DEPTH STRUCTURE

00
0 2 km 0 2 km

39

Caister
0
380

36
(Contours in metres) (Contours in metres)

00
4
4

37
00
7 7 370
0
3800

19
00
18
00
36

17
00

00
16
2 9
2

00
15
1 6

00
9 1

14
6

00
3

37
3

00

40
00
38
00

38
5

00
14
5

00
39

15
00

39
00
16

00
00
17
00
18

4000
00

38
00
44/23a 44/23a
(After Ritchie JS & Pratsides P, 1986) (After Ritchie JS & Pratsides P, 1986)

STRATIGRAPHY AND STRUCTURE

The Caister field Carboniferous structure lies on the same structural trend as the Below the reservoir horizon lies the Bunter Shale Formation which overlies
Murdoch field. The strike slip faulting that generated the structural trap is interpreted the Permian Zechstein evaporites and Rotliegendes Group Silverpit Formation
as being of early Permian age and is oriented in a northwest-southeast trend, shales.
following a secondary Hercynian alignment. The structure shows a complex It is thought that the Bunter sandstone trap was charged by gas from the
combination of dip and fault closure. It is principally dip closed to the southwest and Carboniferous Coal Measures Group via a salt evacuation 'window' in the Zechstein
fault closed against a major reverse fault to the northeast. The anticline is faulted Group approximately 10 km east of the structure. The structure is not full to spill.
along its major axis (NW/SE) although the displacement still allows reservoir The Carboniferous gas bearing horizons are fluvial sediments of early
communication. The area of closure covers some 6 km2 and the centre of the Westphalian 'B' age. A single stacked sand body approximately 90 feet thick forms
accumulation is offset approximately 2 km to the northwest from the overlying the main reservoir horizon and is termed the Caister Sand. Correlation is facilitated
Triassic structure. The Triassic structure is a dip closed domal anticline elongated in by the presence of a strongly developed lower Westphalian 'B' coal horizon which
a northwest-southeast orientation and shows an area of closure of some 15 km2. It lies above the Caister Sand unit. Potential exists for other gas bearing sandstones
takes its shape from an underlying non-piercing salt swell. No significant faulting is in the Westphalian 'B' sequence although none have been encountered which are as
developed at this level. laterally extensive as the main sand horizon. Lateral seals to sandstone units are
The Triassic gas is encountered in the fluvial distal braidplain sediments of the provided by interformational Westphalian claystones.
Bunter Sandstone Formation of the Bacton Group. The cap rock is provided by the The shales of the Silverpit Formation form the cap rock to the Carboniferous
overlying conformable Haisborough Group shales and evaporites. The structure reservoir which subcrops below the Rotliegendes Group at the Hercynian
shows a total gas column of approximately 200 feet although the overall thickness of Unconformity surface.
the Bunter Sandstone is 500 feet.

BUNTER - REPRESENTATIVE WELL SECTION - 44/23a-3

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95

AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 5 25 45 -15

Playa lake / flood plain sediments

Lake margin floodplain with distal

HAISBOROUGH GROUP
DOWSING FORMATION
sheetfloods

4500
Geometry
Sheetlike sandbodies

UPPER MEMBER
and k
Variable but generally good. Halite cement
influences distribution
44/23a-3

4550
4600
Distal braid plain dominated by medial
sheetflood

Geometry
BUNTER SANDSTONE FORMATION

Laterally extensive sheetlike sand bodies


BACTON GROUP

sealing shales sheetlike


4650
MIDDLE MEMBER

and k
Variable but good to excellent
4700

Distal braid plain dominated by prograding


LOWER TRIASSIC

proximal sheetfloods
4750

Geometry
Laterally extensive sheetlike sand body

and k
Variable but generally good
4800
LOWER MEMBER

4850
4900
BUNTER SHALE

Lacustrine / flood plain


INTERPRETATIVE STRUCTURAL CROSS SECTION

MURDOCH CAISTER
44/21-1 44/22a-3 44/22a-1 44/23a-2 44/23a-1 44/24-1
Feet W E

Caister 0
TERTIARY

Chalk Group Cromer Knoll Group

roup
5000 Haisb orough G
TRIASSIC stone
r Sand
Bunte
ale
Bunter Sh

PERMIAN Zechstein Group


10000
Rotliegendes Group
?

S
EROU

CARBONIFEROUS - REPRESENTATIVE WELL SECTION - 44/23a-5


44/23a-5

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.90

AGE
CLAY
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON

VC

VF
(PERCENT) (md) (Inches) (Limestone units)
B C P

M
C
F
40 0 0.1 10000 5 25 45 -15

Fining upwards channel sequence


developing to channel abandonment
Geometry
Tabular sand unit
and k moderate, decreasing upwards

CARBONIFEROUS

12450
WESTPHALIAN 'B'
Channel abandonment with coal (horizon)
Stacked fluvial sandstone complex with

CAISTER SAND
minor overbank sediments
Geometry
Tabular sand unit comprising incised fining
upwards cycles with localised
sheet like overbank sandy siltstones.

12500
and k
generally moderate, locally poor.
k variable but generally moderate Both
and k decrease towards top of fining
upwards sequences
Inter-channel delta plain muds

NW SE SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT


44/23a-4 44/23a-1 44/23a-3 44/23a-5

The Triassic reservoir interval comprises a sequence of interbedded


Haisborough Gp. sandstones, siltstones and claystones that were deposited in a distal
braidplain environment in a semi-arid continental setting. The sequence is
dominated by distal sheetflood deposits but minor braided channel
sandstones are present as relatively thin interbeds. The sediment source
was to the south of the field and the distal location of the accumulation
Mid. Member Upper Member

resulted in the overall argillaceous nature of the Bunter Sandstone


Formation. The sandstones are silty to very fine grained, moderately to well
sorted and subrounded. Occasional medium and coarse grained sandstones
are present in the lower parts of the sequence and overall the sequence
Bunter Sandstone

fines upwards. Patchy calcite, anhydrite and halite cements are present,
particularly in the upper parts of the formation.
The Carboniferous reservoir interval comprises a sequence of
sandstones, siltstones, claystones and coals that were deposited in an upper
Lower Member

delta plain environment. The sequence presents a broad upward fining


Triassic

evolution with the development of stacked channel sandstone units that


resulted from major influxes of coarser sediment and which form the
reservoir horizons. A single stacked channel sandstone complex, the Caister
Sand unit, forms the main reservoir horizon and is located at the base of the
Westphalian 'B' interval. Correlation of the unit is aided by the presence of a
Bunter Shale

well developed coal at the top of the Caister Sand unit. Underlying the
stacked channel unit is a laterally extensive horizontally laminated,
TD
argillaceous siltstone unit of Westphalian 'A' age that is interpreted as a
TD shallow water lacustrine deposit. Close to the base of this unit is a
correlatable coal horizon. This gross sediment package correlates with the
NON-SCALE NON-SCALE sequence observed in the Murdoch field. Above the Caister Sand are two
SECTION SECTION
thinner stacked channel units that developed during subsequent periods of
sediment influx that were less protracted than the Caister Sand unit event,
and have formed less laterally extensive sandstone units.
0

50 RESERVOIR GEOLOGY
100 feet
The available well data for the Bunter Sandstone interval indicate
Her
cyn
ian excellent lateral continuity of the depositional units. The sequence as a
Unc
onfo
rmit
whole shows a thickness of approximately 500 feet. An overall large scale
y lower, middle and upper Bunter subdivision can be made on the basis of
Permian

large-scale sequences. The middle sequence exhibits a correlatable


mudstone sequence over the area of the field which is interpreted as the
Westphalian 'B' Coal
development of a localised desert lake. These mudstone horizons are
interpreted to be permeability barriers, which separate the reservoir into
distinct pressure regimes.
The Carboniferous reservoir interval shows development of the main
Caister Sand stacked channel unit and a thinner overlying channel unit.
These units are of approximately 100 and 35 feet average thickness
Westphalian 'B'
Carboniferous

respectively. The Caister Sand probably extends over the entire area of
closure of the structure whilst the upper sand body is interpreted as being of
a more restricted lateral extent. Both these bodies are thickest in the region
of Well 44/23-7 and thin to the southeast. Potential exists for the presence of
other channel sand units. Thinner sandstone bodies such as levees and
crevasse splay sediments will show very restricted lateral development and
Caister Sand
Westph. 'A'

Westphalian 'A' Coal exhibit poor reservoir potential. The overall sequence, excluding the Caister
Sand unit, shows a complex reservoir architecture resulting in poor
connectivity between sand bodies.
POROSITY - PERMEABILITY CHARACTERISTICS

Porosity values in the Bunter sequence as a whole are good (10 to 35 per cent.) Porosity values in the Carboniferous stacked channel sandstone reservoir units

UNITED KINGDOM
and average approximately 20 per cent. Permeability values are also good (1 to over are poor to moderate (5 to 16 per cent.) and average approximately 12 per cent.
1000 md) and average approximately 100 md. Values are dependent both upon Permeability values are poor to moderate (0.1 to 100) and average approximately 5
primary depositional textures and subsequent development of diagenetic cements md. The Westphalian reservoir intervals show a complex pore development history

Caister
and pore filling clays. The presence of halite cements in the Bunter Sandstone and porosity is expected to be mostly mouldic secondary generated by labile grain
Formation results in the requirement for special core treatment to generate valid dissolution. Overbank and inter channel sediments are of non-reservoir quality.
results. Gas in the reservoir partly halted halite porosity occlusion, and the GWC
interface produces a seismic DHI (direct hydrocarbon indicator) as a result.

10000 10000
Bunter Carboniferous

1000 1000

100 100 +
+
++ +
+
+
PERMEABILITY (md.)

PERMEABILITY (md.)
+ + +
+ +
+ + ++
10 + ++
10 + +
+ +
+ ++ +
++
++
+ + ++
+ +
+
+ ++ +
1 1 + +++ + ++
+
+ ++ +
+ +
+
+ +++ + ++
+ +
+ +++ +
0.1 + +
0.1
44/23a-1
+ +
+
44/23a-3 +
+ +
44/23a-5
0.01 0.01
0 10 20 30 40 0 10 20 30

POROSITY (per cent.) POROSITY (per cent.)

RESERVOIR PRESSURE

Initial reservoir pressure prior to the Well 44/23a-1 blow-out in the Bunter this horizon will behave as two separate pressure regimes.The reservoir appears to
reservoir is indicated by DST data from Well 44/23a-1 and was 2184 psig at a datum have been overpressured by approximately 220 psi at original reservoir conditions,
depth of 4363 feet TVDSS. Reservoir pressure at this depth is 2048 psig from based on a pressure gradient of 0.45 psi/ft.
interpretation of RFT data and indicates a pressure loss of 136 psig. Pressure Pressures from RFT and DST data in the Carboniferous interval indicate a gas
discontinuity is observed within the middle Bunter horizons across the sealing shale water contact at a depth of 12105 feet TVDSS. Reservoir pressure is 6155 psig at a
unit as a result of the blow-out. Residual gas saturations below the RFT defined datum depth of 12000 feet TVDSS. Some uncertainty exists concerning the
contact at 4545 feet TVDSS suggest that the contact has elevated by at least some continuity of this contact over the area of closure. The Carboniferous reservoir is
29 feet in response to the blow-out related pressure depletion. The middle Bunter overpressured by approximately 700 psi, based on a pressure gradient of 0.45 psi/ft.
shale horizons that are present at the base of the gas leg in the crestal areas of the
structure are permeability barriers and suggest that the reservoir above and below

Bunter Carboniferous

4300 11800

4350 Initial gas 0.34 psi/ft


pressure before 12000
blow out
GWC @ 12105 ft TVDSS
0.045 psi/ft
4400
12200
DEPTH (feet TVDSS)

DEPTH (feet TVDSS)

136 psi
4450

12400 0.45 psi/ft

4500

GWC @ 4545 ft TVDSS 12600


4550

0.54 psi/ft 12800


4600

4650 13000
2000 2050 2100 2150 2200 5800 6000 6200 6400 6600
INITIAL RESERVOIR PRESSURE (psig) INITIAL RESERVOIR PRESSURE (psig)
Bunter Carboniferous

1.00 0.020 1.20 0.04

Z factor

GAS DEVIATION FACTOR Z

GAS DEVIATION FACTOR Z


Z factor

1.10 0.03
Viscosity Viscosity

0 (cp)

0 (cp)
0.95 0.015

1.00 0.02

0.90 0.010 0.90 0.01


0 600 1200 1800 2400 0 2000 4000 6000 8000

PRESSURE (psig) PRESSURE (psig)

FLUID PROPERTIES

The Bunter accumulation gas is a dry gas with negligible condensate and a high
nitrogen content. Gas viscosity is 0.016 cp. The Carboniferous gas is a wet gas with a
moderate condensate ratio and moderate nitrogen content. The viscosity is 0.028 cp.

Bunter Carboniferous
Composition 44/23a-3 44/23a-5
(mol. %)

CO2 0.05 2.79


N2 14.74 5.78
H 2S - -
H2 0.02 -
C1 83.78 81.75
C2 0.98 5.54
C3 0.21 1.94
C4 0.08 0.75
C5 0.05 0.33
C6 0.02 0.23
C 7+ 0.03 0.89
S.G. (Air=1.0) 0.625 0.696
C.V. (Btu/scf) 878 1080

CONTROLS ON RECOVERY

Recovery from the Bunter interval above the present gas water contact is Recovery from the Carboniferous interval is also expected to be moderate. The
expected to be moderate, in the region of 80 per cent. Some additional gas may be main controls on recovery are:
recovered from the interval between the present gas water contact and the pre blow- poor to moderate reservoir quality
out contact. Ultimate recovery depends upon the following: good internal communication within the sand unit facilitates recovery by
common good permeabilities in sheetlike sandstone units depletion
water influx drive, facilitated by simple unfaulted domal structure, as evidenced restricted aquifer volume resulting from the fault bounded nature of the structure
by the rise in gas water contact following the blowout of Well 44/23-1 capacity for installation of compression facilities - anticipated in the late 1990s
presence of laterally continuous sheetlike, impermeable mudstone at base of the
gas bearing interval
installation of compression facilities - anticipated in the late 1990s
the potential for trapped gas mobilisation below the current gas water contact
FACILITIES SPECIFICATIONS

Water Depth 135

UNITED KINGDOM
CAISTER (feet)
PLATFORM SCHEMATIC Platform Type 4 leg steel jacket

Caister
Function Production

Jacket Weight 1150


(tonnes)

H Total Weight of Structure 2300


(tonnes)

Accommodation Not normally manned


Control Via Theddlethorpe
Well Slots 10
Wells Planned 8

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput 140


(MMscf/day)

Gas Export 16" x 12km pipeline to Murdoch


26" x 180 km pipeline Murdoch to
Theddlethorpe
(capacity of 750 MMscf/day)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 125

Net Present Value 275.98 205.10 165.66 140.27 115.43 78.87 18.85
Net Present Value (Deflated) 231.05 162.91 124.30 99.15 74.32 37.37 -24.31
Profit/Inv Ratio 1.38 0.88 0.65 0.52 0.41 0.26 0.05

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 1.05 0.64 0.45 0.34 0.24 0.11 -0.06 100
NPV/Unit Oil Equiv. 5.52 4.53 3.84 3.34 2.82 1.99 0.49
NPV/Unit Oil Equiv. (Deflated) 4.95 3.79 3.01 2.45 1.88 0.97 -0.65

Payback Year 1996


Nominal Rate Of Return % 21.57 75
Real Rate Of Return % 18.04

Post Corporation Tax

Net Present Value 182.68 128.21 96.57 75.73 54.97 23.81 -28.79
Net Present Value (Deflated) 149.67 95.29 63.26 41.96 20.59 -11.76 -67.06 50
Profit/Inv Ratio 0.91 0.55 0.38 0.28 0.19 0.08 -0.08
Profit/Inv Ratio (Deflated) 0.68 0.37 0.23 0.14 0.07 -0.03 -0.17
NPV/Unit Oil Equiv. 3.65 2.83 2.24 1.80 1.34 0.60 -0.76
NPV/Unit Oil Equiv. (Deflated) 3.20 2.22 1.53 1.04 0.52 -0.30 -1.79
25
Nominal Rate Of Return % 17.28
Real Rate Of Return % 13.91

Earnings Data
0
Gross Revenue 610.20 542.71 512.82 496.20 481.78 463.59 440.54 1990 1995 2000 2005 2010
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 93.29 76.89 69.09 64.55 60.46 55.07 47.64
Capital Expenditure 200.00 232.51 253.77 268.71 284.28 308.87 353.24
Operating Costs 134.22 105.10 93.39 87.22 82.07 75.85 68.45

Gross Revenue (Deflated) 562.19 509.28 485.78 472.71 461.39 447.15 429.28
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 81.38 67.62 61.03 57.19 53.72 49.12 42.76
Capital Expenditure (Deflated) 219.61 255.55 279.07 295.60 312.84 340.06 389.24
Operating Costs (Deflated) 111.53 90.83 82.41 77.96 74.23 69.72 64.34

ECONOMIC INDICATORS FROM 1/1/1996


CASH FLOW REPORT
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Pre Corporation Tax Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Net Present Value 346.34 301.19 278.87 265.64 253.56 237.32 214.46
Net Present Value (Deflated) 315.49 276.15 256.71 245.16 234.61 220.40 200.31 1991 0.0 0.0 0.0 15.0 0.0 0.0 0.0 -15.0 -25.0 0.0 0.0 0.0
NPV/Unit Oil Equiv. 9.57 9.80 9.90 9.95 10.00 10.05 10.10 1992 0.0 0.0 0.0 95.0 0.0 0.0 0.0 -95.0 -138.3 0.0 0.0 0.0
1993 12.0 0.0 2.7 80.0 0.0 0.0 0.0 -70.7 -91.9 0.0 19.0 0.0
Post Corporation Tax 1994 59.1 0.0 8.2 10.0 0.0 0.0 0.0 40.9 48.5 0.0 88.0 0.0
1995 78.8 0.0 9.4 0.0 0.0 0.0 0.0 69.4 74.3 0.0 120.0 0.0
Net Present Value 253.05 224.30 209.79 201.09 193.09 182.26 166.82 Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value (Deflated) 234.11 208.53 195.67 187.97 180.89 171.28 157.55 149.9 0.0 20.3 200.0 0.0 0.0 0.0 -70.4 -132.4 0.0 82.9 0.0
NPV/Unit Oil Equiv. 6.99 7.30 7.45 7.53 7.61 7.71 7.86
1996 81.9 0.0 9.4 0.0 0.0 0.9 0.9 71.7 69.0 0.0 120.0 0.0
Earnings Data 1997 78.1 0.0 9.4 0.0 0.0 17.9 17.9 50.8 43.5 0.0 110.0 0.0
1998 63.7 0.0 8.9 0.0 0.0 18.2 18.2 36.7 28.0 0.0 86.3 0.0
Gross Revenue 460.26 384.78 350.02 330.11 312.37 289.16 257.57 1999 51.9 0.0 8.4 0.0 0.0 14.7 14.7 28.8 19.6 0.0 67.7 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 42.3 0.0 8.2 0.0 0.0 11.8 11.8 22.3 13.5 0.0 53.1 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 34.6 0.0 7.9 0.0 0.0 9.4 9.4 17.3 9.3 0.0 41.7 0.0
Corporation Tax 93.29 76.89 69.09 64.55 60.46 55.07 47.64 2002 28.2 0.0 7.9 0.0 0.0 7.4 7.4 13.0 6.2 0.0 32.7 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2003 22.9 0.0 7.6 0.0 0.0 5.6 5.6 9.7 4.1 0.0 25.6 0.0
Operating Costs 113.92 83.59 71.14 64.47 58.81 51.83 43.11 2004 18.7 0.0 7.1 0.0 0.0 4.2 4.2 7.3 2.8 0.0 20.1 0.0
2005 15.3 0.0 6.9 0.0 0.0 3.2 3.2 5.2 1.8 0.0 15.8 0.0
Gross Revenue (Deflated) 405.80 344.48 315.85 299.32 284.50 264.97 238.11 2006 12.4 0.0 6.7 0.0 0.0 2.3 2.3 3.4 1.0 0.0 12.3 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2007 10.1 0.0 6.3 0.0 0.0 1.5 1.5 2.3 0.6 0.0 9.7 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 81.38 67.62 61.03 57.19 53.72 49.12 42.76 2008 0.0 0.0 19.2 0.0 0.0 -3.9 -3.9 -15.3 -3.7 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 90.31 68.33 59.14 54.15 49.89 44.57 37.80 Total 460.3 0.0 113.9 0.0 0.0 93.3 93.3 253.0 195.7 0.0 217.2 0.0

These cash flows include Caister Carboniferous and Caister Bunter ring fences only
14/13 Rel. 14/14a Texaco 14/15a Texaco 14/15b SUMMARY
1 Rel.
4
The Claymore and Scapa fields are located in Quadrant 14,
2
1 approximately 180 km northeast of Aberdeen, in the Outer Moray Firth. The
Claymore field was discovered by Well 14/19-2 in 1974 which encountered
3 oil in the Upper Jurassic, Claymore Sandstone Member and the Lower
Cretaceous Spey Sandstone Formation. Subsequent appraisal showed the
field to extend into Block 14/20. The Scapa field was discovered by Well
14/18a 14/19 Elf-Enterprise 14 14/20 Texaco 14/19-9 in 1975 encountering oil in the Lower Cretaceous, Spey Sandstone
Elf-Ent. 16
WEST 8 Formation.
CLAYMORE NORTH
23 B Development of Claymore began in 1976 with one steel platform, with
29
6A,7 first oil production in November 1977. Scapa was developed using a subsea
24 17 template tied back to the Claymore platform in 1986. First production from
19 23
CLAYMORE Scapa via a deviated well from Claymore was in September 1985. In mid
3 1
A 4 1995, the new Claymore Accommodation platform was installed in order to
WEST 5 2 24 replace facilities on the existing production platform. This provides
25,28 4
SCAPA 15 temporary safe refuge in line with recent UK offshore safely regulations, as
18,20 19 SOUTH 20 recommended in the Cullen report. It also provides accommodation for 250
6 8 22 9 17 and is linked to the production platform via 100m connecting bridge.
HIGHLANDER 8 Further subsea templates were installed in the north and south of the
SCAPA 26
12,13, Claymore field proper, for water injection purposes. The North Template
14/18b Rel. 11 14,15 also acts as a manifold to remotely completed subsea injectors.
12,12A
5 The current interests in the Claymore and Scapa fields in per cent. are:-
30
18,21,28 CLAYMORE SCAPA
D PROSPECT
10
27 10 Elf Enterprise Caledonia Ltd * 23.40 36.50
1,16
0 4 km
PETRONELLA Texaco Britain Ltd 17.70 23.50
2
11
Union Texas Petroleum Ltd 20.00 20.00
Lasmo (TSP) Ltd 20.00 20.00
Atlantic Resources (UK) Ltd 0.50
AGIP (UK) Ltd 2.50
Croft Exploration Ltd 0.69
Brabant Oilex Ltd 1.00
DNO Offshore Ltd 1.00
DSM Energy (UK) Ltd 5.00
Ranger Oil (UK) Ltd 4.19
Total Oil Marine plc 0.60
Sands Petroleum 3.43

operator *
RESERVOIR CHARACTERISTICS
Note: all percentages rounded to two decimal places
Fluid Properties CLAYMORE* SCAPA

Oil Gravity (API) 30 32


Gas/Oil Ratio (scf/stb) 120 250
Bubble Point Pressure, Pb (psig) 500 1100
Formation Volume Factor at Pi (rb/stb) 1.05 1.15 LOCAL SETTING
Oil Compressibility (vol/vol/psi) 4.4 x 10-6 7.5 x 10-6
Original Reservoir Pressure, Pi (psig) 4275 4000 The Claymore and Scapa fields are located toward the western end of
At Datum Depth of (ft TVDSS) 9400 8835 the Witch Ground Graben in the Outer Moray Firth. The Tartan-Highlander
Reservoir Temperature (F) 170 185 complex of fields located in Blocks 14/20 and 15/16 and the Piper field
located in Block 15/17, to the east, produce from the Upper Jurassic sands
Rock Properties of the slightly older Piper Formation, although some reserves are found in
the Spey Sandstone Formation of the Highlander field. The Spey Sandstone
Rock Type Sandstone Sandstone reservoir in these fields is the only oil reservoir of Cretaceous age in the
Stratigraphic Unit Claymore Spey area.
Geological Age Upper Jurassic Cretaceous
Porosity Range (per cent.) 15-25 18-27
Permeability Range (md) 10-1000 200-700
Connate Water Saturation (per cent.) 10-15 20-25
Oil Water Contact (ft TVDSS) 8655 9398
Depth to Top of Structure (ft TVDSS) 7900 8500 FIELD DESCRIPTION

* Jurassic fluid and rock properties illustrated for Claymore The Claymore and Scapa fields comprise four tilted fault-blocks - three
within the Claymore field, and one in the Scapa field. There are four oil-
Reserves bearing horizons, of which two are of good reservoir quality and contain the
majority of the reserves. The Upper Jurassic Claymore Sandstone member
Total Oil Reserves (MMstb) 560 90 is the main reservoir sand in the Claymore field, where porosities and
Est. Production to 31.12.1995 (MMstb) 427 74 permeabilities are moderate to good. The Cretaceous Spey Sandstone
Remaining Oil Reserves (MMstb) 133 16 Formation is the reservoir sand in the Scapa field, and the secondary
reservoir in the Claymore field, with good porosities and permeabilities.
Production The Jurassic reservoir contains a relatively viscous oil with a gas oil ratio
of about 120 scf/stb, and the Cretaceous reservoir contains a rather less
Water depth (feet) 361-397 385 viscous oil with a gas oil ratio of about 250 scf/stb. Both reservoirs are very
undersaturated and, due to the low natural energy of the reservoir, gas lift
Production Start Date November 1977 September 1985
and water injection are essential to achieve reasonable recovery factors.
Peak Production (Oil and NGL) (stb/day) 100000 28000
Gas is imported from Tartan for use as fuel and to facilitate start up of gas
Platform (s) 2 Steel jacket 2 Sub-sea templates
lift. Most of the gas volume used, however, originates from Claymore and is
Number of Wells - Producers 32 8 (inc. deviated well
recycled.
from Claymore)
Production began in November 1977 and to date approximately 76 per
Water injectors (including template cent. of the reserves have been produced. Minor oil accumulations are
& remote wells) 16 4 present in Upper Permian carbonates and Carboniferous sandstones.
Gas injectors Further accumulations have been discovered since 1990 in the form of
Oil and NGL Export Pipeline to Flotta Pipeline to Claymore West Claymore and West Scapa. Appraisal drilling still continues on West
Gas Export Gas imported from Claymore; if viable, reserves maybe exploited via subsea tieback to the
Tartan Claymore platform. West Scapa on the other hand is already being
developed using two wells tied back through the subsea template manifold.
Owing to the extension of drilling and new discoveries in the area, as well
as a tightening of UK offshore safety regulations, there has been the
installation of a new 250 bed accommodation platform on Claymore.
STRATIGRAPHY AND STRUCTURE 14/19

Claymore & Scapa


CLAYMORE 14
The Claymore field has four oil-bearing horizons, the main reservoirs being the COMPOSITE

UNITED KINGDOM
13
Upper Jurassic Claymore Sandstone Member, and the Lower Cretaceous Spey DEPTH STRUCTURE
Sandstone Formation. Relatively minor accumulations exist in the Carboniferous 16
0 2 km 90

O
Forth Formation and the Permian Halibut Bank Formation (Zechstein). Well 14/19-9 00

W
8

C
discovered oil in the Spey Sandstone Formation in a separate accumulation to the (Contours in feet TVDSS)

93
950
98
south of Claymore (Scapa Field). The Claymore field can be areally sub-divided into

00

0
95
the Main Area Claymore (MAC), Central Area Claymore (CAC) and the Northern 7

0
Template

00
Area Claymore (NAC). The main area is developed on the dip-flank of a tilted fault

10
85
00
block, the crest of which occupies CAC (Wells 14/19-1 and 14/19-6a). The northern, 6A
faulted margin of this fault block defines the southern margin of NAC. As a result of NORTHERN
fault-block rotation and crestal erosion, the stratigraphic units display complex AREA
900
onlapping relationships towards the crest of the tilted fault block. The Scapa field is C 0

700
situated between the Claymore Horst (to the southwest) and the Claymore field (to

EN

0
R

T
the northeast) and is developed within a major fault trough to the northeast of the AL 1
Claymore Horst. In the Claymore field, the Jurassic reservoir is sealed by the 75 AR
mudstones of the Kimmeridge Clay Formation and the Cretaceous reservoir is 3
00 EA
sealed by the overlying mudstones of the Valhall Formation.
5
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
8000 2
Alluvial plain deposits of the Lower Carboniferous Forth Formation form a 4
reservoir in CAC. Fining-upwards fluvial channel sequences of varying scale with 15 MAIN AREA
laterally equivalent thin bedded, current rippled channel margin and sheet flood OWC 8655
9000
sandstones and associated overbank mudstones and coals comprise the reservoir 18
section. The overlying Zechstein Group was deposited within an evaporitic marine 0
9500 19 900
basin and hydrocarbons are produced in CAC from limestones with dissolution
porosity. The principal reservoir units in the Claymore field are the Upper Jurassic 17
9
Claymore Sandstone Member and the Lower Cretaceous Spey Sandstone
Formation. These both consist of thickly and thinly bedded, sharply bounded,
commonly massive submarine gravity flow (ie turbidites) sandstones interbedded NORTHERN AREA - TOP LOWER CRETACEOUS SAND STRUCTURE
CENTRAL AREA - BASE VALHALL STRUCTURE
with and laterally equivalent to fan margin sandstones, siltstones and mudstones. MAIN AREA - TOP JURASSIC SAND STRUCTURE
Concurrent with rapid, fault-controlled subsidence, submarine fan progradation into CLAYMORE PRT BOUNDARY
the area took place during the Late Kimmeridgian to Early Volgian, sourced largely
from the Claymore Horst to the southwest. Fan sequences thin onto the flanks of the (After Maher CE & Harker SD, 1987)

CAC fault block and thicken towards the southwest. In the rapidly subsiding trough
to the north of CAC crest (NAC), a thick Kimmeridge Clay Formation with a well
developed Claymore Sandstone Member sequence was deposited. The Lower After initial progradation of the Spey Sandstone Formation fan across CAC during
Cretaceous sequence thickens to the southwest, towards the Scapa field, and thins the latest Ryazanian to Hauterivian, submarine fan sedimentation was largely
onto the crest of CAC, where the contact between the Kimmeridge Clay and Lower restricted to the area immediately adjacent to the Claymore Horst.
Cretaceous becomes increasingly unconformable, as a result of crestal erosion.

INTERPRETATIVE STRUCTURAL CROSS SECTION


14/19-11 14/19-9 14/19-1 14/19-6A
Feet
SW NE

0
POST PALEOCENE
2000

4000 PALEOCENE

6000 Tay F
orma
tion

8000 UPPER CRETACEOUS

Spey Sst. Fm. tion


a
10000 h Form LOWER CRETACEOUS
Kim. Clay Fm. Fort Zechstein

12000
Piper/Sgiath Fm.
14000 0 1 2 3 km

REPRESENTATIVE WELL SECTION - 14/19-6A

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


14/19-6A
LWR. HAUTERIVIAN - BARREMIAN

Stacked sandy, high density turbidite


SPEY SANDSTONE FORMATION

sandstones with interbedded turbiditic


and/or hemipelagic mudstones.
CROMER KNOLL GROUP

Geometry
Elongate lenticular sandbodies forming
8850

part of a clastic wedge incorporating thin


14/19-2 mudstones.
M
and K
M
and K generally good.
(
) M
8900

REPRESENTATIVE WELL SECTION - 14/19-2


Lower to middle fan association of sandy,
KIMM. CLAY FM. (Clay. Sst. Mbr.)

high density turbidite sandstones and


sediment gravity flow sandstones with thin
interbedded hemipelagic and turbiditic
M mudstones.
8600

Py
HUMBER GROUP
LOWER VOLGIAN

frac.
Geometry
M Elongate, lenticular and lobate to sheetlike
M M sandbodies with minor, thin sheetlike
frac. mudstones, forming part of clastic wedge.

and K
8650

and K generally good, locally moderate.

M
Py
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Claymore & Scapa


14/19-9 14/19-5 14/19-6A 14/19-7
F 10000

Valhall 'B' Formation

Albian
1000

Aptian
Cromer Knoll Group
Valhall 'A' Fm.
100

Bar.
Hauterivian-Upmst. Ryaz.

PERMEABILITY (md.)
Spey Sst. Fm.
10

14/19-2
F

0.1
14/19-4

Kim.-L. Volgian
2

Humber Group
Cretaceous
1 100 Jurassic
3
0.01
200 feet 0 10 20 30
POROSITY (per cent.)
1. Kimmeridge Clay Formation
2. Claymore Argillaceous Member
3. Claymore Sandstone Member Formation properties vary among the four reservoirs. The
Jurassic reservoir exhibits porosities from 15 to 25 per cent. and the
permeabilities vary between 10 md and 1000 md. The Cretaceous
reservoir porosities vary between 18 per cent. and 27 per cent., and
The Claymore Sandstone Member reservoir sandstones
permeabilities between 200 md and 700 md. In the Zechstein
comprise elongate, lenticular high density turbidite
reservoir, porosity and permeability are variable; porosity varies
sandstones, commonly stacked and coalesced into part of a
between 5 per cent. and 19 per cent. and permeabilities between 20
clastic wedge. Sediment gravity flow sandstones form
md and 900 md. However, matrix porosities and permeabilities in the
discrete sandbodies with lobate to sheetlike geometry and are
Zechstein are generally low, with values at the higher ends of the
only locally stacked into thick units. Interbedded, thin mudstones have sheet geometry and
scale being accounted for by local fracturing. The Zechstein and
are of variable lateral extent. Overall, the sequence forms two main clastic wedges, to the
Carboniferous is generally taken to be non reservoir.
northeast of the Claymore Horst and to the northeast of the CAC fault block. Geometries of
The primary controls on porosity and permeability in the two main
sandbodies are similar for the Spey Sandstone Formation.The Carboniferous reservoir has,
reservoir bodies are textural. Thus, both porosity and permeability
in general, poor reservoir potential, with poor connectivity and low permeability.
increases with increasing grain size, sorting and decreasing detrital
The Zechstein reservoir, restricted in occurrence to CAC, occurs within carbonates
clay content. Superimposed on these textural controls are the effects
containing solution porosity and makes only minor contributions to overall field productivity.
of diagenesis, which are principally compaction and quartz
overgrowth cementation in the Claymore field.
FLUID PROPERTIES
RESERVOIR PRESSURE
The oil in the main Claymore Upper Jurassic reservoir is relatively viscous, varying from
4 cp at initial reservoir pressure to 2.8 cp at bubble point pressure. The Cretaceous reservoir
The Claymore field is divided into two pressure regimes with
fluid is less viscous, at about 1 cp at initial reservoir pressure, as are the oils in the
different oil water contacts. These are the main reservoir and the
Carboniferous and Zechstein formations. All oils are very undersaturated. The gas oil ratio
northern area reservoir. Both areas are normally pressured, with a
is about 120 scf/stb in the Jurassic reservoir, and about 250 scf/stb in the Cretaceous
gradient to surface of 0.47 psi/ft.
reservoirs.

250 1.25 5.0 6000


GOR (Spey Sandstone)
4.5
Spey Sandstone
200 1.20 0 (Claymore Sandstone) 4.0
7000
3.5
B0 (Spey Sandstone)
GOR (scf/stb)

150 1.15 3.0


B0 (rb/stb)

0.35 psi/ft
0 (cp)

GOR (Claymore Sandstone) 2.5 8000 Claymore


Sandstone
DEPTH (feet TVDSS)

100 1.10 2.0


OWC (Claymore Sandstone) @ 8655 ft TVDSS
B0 (Claymore Sandstone) 1.5
9000
50 1.05 1.0
0 (Spey Sandstone) OWC (Spey Sandstone) @ 9398 ft TVDSS
@ 163F (Claymore Sandstone) 0.5
@ 185F (Spey Sandstone from correlation) 10000
0 1.10 0.0
0 1000 2000 3000 4000 5000
0.47 psi/ft
PRESSURE (psig)
11000
CONTROLS ON RECOVERY

All reservoirs are very undersaturated. Because of the low natural energy of the 12000
reservoir, gas lift and water injection are essential to achieve reasonable well rates 3000 4000 5000 6000

and recovery factors. The Zechstein and Carboniferous formations are generally non INITIAL RESERVOIR PRESSURE (psig)
reservoir.
The Jurassic reservoir recovery is expected to be moderate to good for the
reasons listed below: sands to poor in the lower sands for the following reasons:
it is a layered system which results in selective sweeping of the reservoir. the upper massive sands have good potential for secondary recovery, with good
reservoir porosities and permeabilities vary from moderate to very good. reservoir continuity and favourable reservoir characteristics.
the oil water mobility ratio is unfavourable. the mobility ratio is favourable.
the lower sands have much poorer reservoir characteristics and have limited
The Cretaceous reservoir recovery potential varies from good in the upper recovery potential.
FACILITIES SPECIFICATIONS

Claymore & Scapa


CLAYMORE A SCAPA CLAYMORE CLAYMORE CLAYMORE

UNITED KINGDOM
NORTH SOUTH ACCOMMODATION
PLATFORM (CAP)

Water Depth 361 385 367 397 360


(feet)
Platform Type steel jacket subsea template subsea template subsea template accommodation
Function drilling/production/ wellhead injection template template and module linked
accommodation and manifold manifold to Claymore A
by connecting
bridge
Jacket Weight 12200 4000
(tonnes)
Total Weight 35000 960 260 260 8700
(tonnes)
Accommodation 250
Wells 36 12 10 10
Producers 24 8*1
Injectors (water) 12*2 4 4*3 4*4

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 160000


(An Occidental International Oil Inc. Photograph) (bbl/day)
Oil Export 30" x 12 km 2 x 10" x 10km
pipeline pipelines
to Flotta T to Claymore A

*1 note one of these wells is deviated from Claymore


*2 note two of these wells are for water disposal into a non oil bearing structure
*3 note two of these are remote wells tied in via the template
*4 note one well is deviated from Claymore A, one an off template producer and two are off
template injectors

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% PRODUCTION PERFORMANCE
Pre Corporation Tax HISTORICAL AND PROJECTED

Net Present Value 2,199.24 1,194.47 850.04 682.71 550.46 399.79 232.37 125
Net Present Value (Deflated) 3,285.52 1,695.70 1,123.18 837.57 608.00 342.33 43.33
Profit/Inv Ratio 1.66 1.49 1.34 1.23 1.12 0.95 0.69
Profit/Inv Ratio (Deflated) 1.07 0.75 0.58 0.47 0.37 0.23 0.03
NPV/Unit Oil Equiv. 3.38 3.73 3.78 3.75 3.68 3.50 3.03

Average Annual Daily Liquid Rate (Mbbl/day)


NPV/Unit Oil Equiv. (Deflated) 3.27 2.98 2.63 2.33 1.99 1.41 0.25 100
Payback Year 1980
Nominal Rate Of Return % 37.64
Real Rate Of Return % 20.98

Post Corporation Tax 75

Net Present Value 1,233.50 660.89 463.79 367.73 291.51 204.12 105.86
Net Present Value (Deflated) 1,704.80 780.89 446.06 278.22 142.81 -14.53 -192.17
Profit/Inv Ratio 0.93 0.82 0.73 0.66 0.59 0.49 0.31
Profit/Inv Ratio (Deflated) 0.55 0.35 0.23 0.16 0.09 -0.01 -0.15 50
NPV/Unit Oil Equiv. 1.90 2.06 2.06 2.02 1.95 1.79 1.38
NPV/Unit Oil Equiv. (Deflated) 1.70 1.37 1.04 0.77 0.47 -0.06 -1.12

Nominal Rate Of Return % 30.52


Real Rate Of Return % 14.68 25

Earnings Data

Gross Revenue 9,215.20 4,605.26 3,263.68 2,650.63 2,182.77 1,666.34 1,110.81 Claymore only
Royalty 705.33 384.05 279.83 229.94 190.79 146.42 97.37 0
Petroleum Revenue Tax 1,629.84 941.85 689.27 563.90 463.90 349.46 222.93
Corporation Tax 965.74 533.58 386.24 314.98 258.95 195.67 126.51 1975 1985 1995 2005 2015
Capital Expenditure 1,326.85 803.97 634.82 554.33 491.26 419.44 337.87
Operating Costs 3,154.85 1,146.96 703.11 527.85 406.93 287.09 174.78 Year

Gross Revenue (Deflated) 14,269.84 8,120.58 6,081.82 5,090.59 4,302.65 3,395.29 2,365.33
Royalty (Deflated) 1,174.56 692.71 522.08 437.05 368.56 288.86 197.72
Petroleum Revenue Tax (Deflated) 2,761.58 1,614.02 1,191.00 979.24 809.19 613.14 394.23
Corporation Tax (Deflated) 1,580.72 914.80 677.12 559.35 465.19 356.86 235.50 CASH FLOW REPORT
Capital Expenditure (Deflated) 3,084.10 2,249.79 1,942.34 1,783.61 1,651.16 1,488.76 1,283.74
Operating Costs (Deflated) 3,550.57 1,589.64 1,081.18 861.62 700.12 528.33 351.23 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1974 0.0 0.0 0.0 35.0 0.0 0.0 0.0 -35.0 -1,070.7 0.0 0.0 0.0
1975 0.0 0.0 0.0 55.0 0.0 0.0 0.0 -55.0 -1,440.1 0.0 0.0 0.0
1976 0.0 0.0 0.0 140.0 0.0 0.0 0.0 -140.0 -2,730.0 0.0 0.0 0.0
1977 22.5 0.0 7.5 115.0 0.0 0.0 0.0 -100.0 -1,549.2 6.8 0.0 0.0
1978 158.4 2.9 31.5 50.0 0.0 0.0 2.9 73.9 914.1 59.7 0.0 0.0
1979 284.0 19.8 43.9 30.0 0.0 0.0 19.8 190.3 2,010.6 79.6 0.0 0.0
1980 481.0 39.0 51.4 55.0 0.0 0.0 39.0 335.6 2,895.9 87.5 0.0 0.0
1981 602.1 57.8 62.1 75.0 20.4 127.1 205.3 175.2 1,188.4 89.5 0.0 0.0
1982 663.0 67.8 74.0 25.0 164.8 118.7 351.2 108.7 609.4 95.5 0.0 0.0
1983 680.8 72.3 75.6 25.0 307.5 104.9 484.7 85.0 406.7 93.5 0.0 0.0
1984 831.7 82.7 79.9 25.0 389.3 113.9 585.9 140.8 596.6 99.5 0.0 0.0
1985 687.2 82.8 83.4 20.0 337.3 104.1 524.3 59.5 222.2 88.6 0.0 0.0
1986 309.8 50.3 90.3 75.0 143.0 81.7 275.0 -130.6 -425.9 85.8 0.0 0.0
1987 436.4 31.0 107.6 30.0 133.2 23.2 187.3 111.5 325.5 106.1 0.0 0.0
1988 145.9 20.9 87.8 25.0 26.3 45.7 92.8 -59.7 -157.7 47.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1989 64.9 3.2 70.2 30.0 0.0 10.0 13.2 -48.5 -111.1 16.0 0.0 0.0
1990 313.2 5.2 94.2 45.0 0.0 -10.6 -5.4 179.3 352.9 65.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1991 317.2 17.5 103.1 120.0 0.0 60.0 77.5 16.6 27.5 76.0 0.0 0.0
1992 294.5 15.6 108.7 70.0 0.0 47.8 63.5 52.3 76.2 74.0 0.0 0.0
Pre Corporation Tax 1993 306.3 14.2 108.5 100.0 0.0 38.0 52.2 45.6 59.2 74.0 0.0 0.0
1994 256.3 12.5 105.6 65.0 0.0 38.1 50.6 35.1 41.6 68.0 0.0 0.0
Net Present Value 195.62 193.81 186.73 181.13 175.28 166.50 152.77 1995 231.3 10.2 100.9 60.0 0.0 24.2 34.4 36.0 38.6 60.0 0.0 0.0
Net Present Value (Deflated) 199.40 187.05 177.79 171.57 165.50 156.85 143.90 Total To Start Of Discounting ( 1/JAN/1996)
NPV/Unit Oil Equiv. 1.31 1.70 1.88 1.98 2.07 2.18 2.32 7,086.4 605.8 1,486.2 1,270.0 1,521.7 926.9 3,054.4 1,076.7 2,280.6 500.8 0.0 0.0

Post Corporation Tax 1996 209.4 9.5 97.2 30.0 21.7 17.0 48.1 34.0 32.7 52.3 0.0 0.0
1997 197.5 8.9 97.9 10.4 26.4 8.1 43.4 45.8 39.2 45.9 0.0 0.0
Net Present Value 156.81 157.66 152.04 147.37 142.40 134.86 122.99 1998 181.2 8.5 98.6 10.8 23.7 6.1 38.3 33.5 25.6 40.5 0.0 0.0
Net Present Value (Deflated) 162.00 152.25 144.39 139.06 133.82 126.34 115.13 1999 167.5 8.1 99.6 5.6 21.4 5.0 34.5 27.7 18.8 36.0 0.0 0.0
NPV/Unit Oil Equiv. 1.05 1.39 1.53 1.61 1.68 1.76 1.86 2000 155.3 8.0 101.2 0.0 19.6 3.3 30.9 23.2 14.0 32.1 0.0 0.0
2001 144.4 7.8 98.8 0.0 17.4 1.8 27.0 18.6 10.0 28.7 0.0 0.0
Earnings Data 2002 122.5 7.8 101.0 0.0 15.1 1.6 24.5 -3.1 -1.5 23.4 0.0 0.0
2003 117.0 7.8 83.7 0.0 13.1 -6.1 14.8 18.5 7.9 21.5 0.0 0.0
Gross Revenue 2,128.79 1,558.85 1,332.20 1,212.37 1,111.52 987.78 833.83 2004 111.5 7.6 82.5 0.0 11.1 1.7 20.4 8.6 3.3 19.7 0.0 0.0
Royalty 99.55 76.27 66.02 60.36 55.46 49.30 41.41 2005 105.9 7.2 81.2 0.0 9.2 1.6 18.1 6.6 2.2 18.0 0.0 0.0
Petroleum Revenue Tax 108.13 117.42 114.43 111.01 107.05 100.75 90.52 2006 101.0 6.1 98.0 0.0 1.7 1.5 9.2 -6.3 -1.9 16.5 0.0 0.0
Corporation Tax 38.81 36.16 34.69 33.76 32.88 31.64 29.78 2007 96.8 5.2 91.9 0.0 0.0 -1.8 3.4 1.4 0.4 15.2 0.0 0.0
Capital Expenditure 56.85 53.27 51.36 50.18 49.06 47.49 45.13 2008 92.0 5.1 86.3 0.0 0.0 -0.9 4.2 1.5 0.4 13.9 0.0 0.0
Operating Costs 1,668.65 1,118.08 913.66 809.69 724.67 623.74 504.00 2009 87.4 4.9 80.8 0.0 0.0 0.0 4.9 1.7 0.4 12.7 0.0 0.0
2010 83.8 4.8 76.0 0.0 1.1 0.0 5.9 1.8 0.3 11.7 0.0 0.0
Gross Revenue (Deflated) 1,683.00 1,282.68 1,118.60 1,030.28 954.94 861.01 741.37 2011 79.7 4.7 71.1 0.0 1.9 0.0 6.6 1.9 0.3 10.7 0.0 0.0
Royalty (Deflated) 81.83 63.76 55.83 51.43 47.62 42.78 36.54 2012 75.9 4.5 66.9 0.0 2.2 0.3 7.1 2.0 0.3 9.8 0.0 0.0
Petroleum Revenue Tax (Deflated) 119.78 114.69 108.50 104.04 99.57 93.11 83.42 Remain
Corporation Tax (Deflated) 37.40 34.80 33.39 32.51 31.68 30.51 28.76 2013 0.0 -17.2 155.8 0.0 -77.5 -0.3 -95.0 -60.8 -8.1 0.0 0.0 0.0
Capital Expenditure (Deflated) 55.01 51.64 49.85 48.74 47.68 46.21 43.98
Operating Costs (Deflated) 1,226.99 865.54 726.64 654.51 594.57 522.05 433.53 Total 2,128.8 99.5 1,668.6 56.8 108.1 38.8 246.5 156.8 144.4 149.1 0.0 0.0

These cash flows include Claymore and Scapa fields


42/24 Phillips 42/25 BP 43/21 Bow Valley SUMMARY
0 5 km
The Cleeton and Ravenspurn South fields are located approximately
60 km northeast of Easington in the UK sector of the Southern North
Sea. Ravenspurn South was discovered by BP in 1976 with Well 42/30-
1. The smaller Cleeton field was discovered in 1983 by Well 42/29-2.
Cleeton came onstream for the 1988/89 gas contract year and
42/29 BP 42/30 BP 43/26b Hamilton 43/27 Ravenspurn South commenced production in October 1989. The
Hamilton remaining Ravenspurn South platforms came onstream during 1990.
The Cleeton and Ravenspurn South fields are located in the west of
3 6 5 RAVENSPURN the Southern North Sea. Ravenspurn South is believed to be similar to
NORTH Ravenspurn North in that it is geologically complex and has areas of low
6,7,8
7 9 permeability. The reservoir in Cleeton is of better quality and is better
ST3 4 understood.
7 JOHNSTON Ravenspurn North and Ravenspurn South are treated as a single
3
RC 1 1 3 field for tax purposes.
2 9 RB ST2 8
5 2 2 An offshore compression platform will be installed during 1996 to
CP 5 1
CW extend field life and take advantage of third party opportunities in the
CP RA
WT 6 2 area.
4 4 British Petroleum Development Limited is the operator and owns 100
CLEETON RAVENSPURN 43/26a Hamilton
5 SOUTH per cent. of the Cleeton and Ravenspurn South development.
48/1 Amerada Hess 48/2a Amoco
4 BHP is developing Ravenspurn North as a separate project which
6 4 came on stream in 1990.
NEPTUNE 47/5a BP
The small portion of Ravenspurn South that extends into Block
47/4b BG 43/26a has been acquired by BP in return for a reduced stake in the
47/4a BG 1
2 Ravenspurn North development.
1 BABBAGE
47/5b Arco 2

RESERVOIR CHARACTERISTICS LOCAL SETTING

CLEETON RAVENSPURN Cleeton and Ravenspurn South lie in the northern part of the
SOUTH Southern Gas basin. Ravenspurn North and Johnston lie to the north
Fluid Properties and east of the fields and the Wollaston and Frobisher accumulations
are situated to the northwest and southwest respectively. The Rough
field lies approximately 30 km to the southwest and contains gas in
Gas Gravity S.G (air =1) 0.608 0.595
Lower Permian Rotliegendes sandstone. West Sole lies a similar
Condensate Gas Ratio (bbl/MMscf) 2.6 2.0 distance to the southeast and produces from the same horizon. The
Gas Expansion Factor (vol/vol) 245 250 nearest fields to the northeast are the Bunter sandstone fields of Lower
Reservoir Pressure, Pi (psig) 4136 4486 Triassic age that make up the Esmond complex.
at Datum Depth of (ft TVDSS) 9207 9705 Cleeton and Ravenspurn make up two of the four accumulations
Reservoir Temperature (F) 172 200 known as the 'Village Area'. The remaining fields in this group are Hyde
and Hoton.
Rock Properties

Rock Type --------------- Sandstone ------------


Stratigraphic Unit ------- Rotliegendes Group ----
Geological Age ----------- Lower Permian --------
Porosity Range (per cent.) 10-20 12-14
Permeability Range (md) <1-2000 0.1-90
Connate Water Saturation (per cent.) 17 39-49
Lowest Gas (ft TVDSS) 9343 10170
Highest Gas (ft TVDSS) 9090 9055

Reserves

Total Gas Reserves (Bcf) 310 700


Est. Gas Production to 31.12.95 (Bcf) ----------------------486--------------------
Remaining Gas Reserves (Bcf) ----------------------524--------------------

Production
FIELD DESCRIPTION
Water Depth (feet) ----------------- 118-150 --------------
Production Start Date October 1988 October 1989 The Cleeton and Ravenspurn South accumulations are anticlinal,
Peak Gas Production (yrly average) (MMscf/day) 208 in 1991 fault and dip closed structures. The larger Ravenspurn South structure
Platform(s) 2 3 exhibits particularly high relief. The principal gas reservoir is the Lower
Leman Sandstone Formation of the Rotliegendes Group. The
1 compression platform
sandstones are mainly fluvial wadi and sheetflood deposits with minor
(due to be installed in 1996) playa lake mudstones. Similar, more thickly developed playa lake
Number of Wells ---------------------- 31 ------------------ mudstones of the Silverpit Formation form the overlying reservoir seal.
Gas and NGL Export Gas pipeline direct to Dimlington Reservoir quality is variable but generally poor to moderate. Fracture
stimulation of Ravenspurn South wells has been successful resulting in
a much lower number of wells required for field development. The
reservoir quality of the Cleeton field is generally better than that of the
Ravenspurn South field.
The fields contain dry gases. The Cleeton field is normally pressured
and the Ravenspurn South field is overpressured by approximately 120
psi.
The Wollaston accumulation to the northwest of Cleeton is currently
being appraised and may be tied back to the Cleeton facility.
Cleeton & Ravenspurn South
STRUCTURE AND STRATIGRAPHY

The Ravenspurn South gas field lies in Block 42/30. The CLEETON AND

UNITED KINGDOM
Cleeton gas field is in the southeast corner of Block 42/29. RAVENSPURN SOUTH
The Ravenspurn South structure is a high relief, TOP ROTLIEGENDES
northwest-southeast trending anticline with a series of DEPTH STRUCTURE
similar trending faults. Structural closure is by a 3

31
0 4 km

00
combination of limiting faults and dip closure. The areally
smaller Cleeton field is a similar anticlinal structure with (Contours in metres)

30
axial trending faults and a combination of dip and fault

00
RAVENSPURN
closure. R-C
SOUTH
Gas is encountered in the Ravenspurn South structure in 3
3Z C1 GD 3200
the Lower Leman Sandstone Formation (Rotliegendes T3
100
Group), at around 9055 feet TVDSS towards the crest of the 3000
R-B
structure. The thickness of the formation varies between 1

GW
B1 30
200 feet and 330 feet. The gas bearing sandstones are 00

30
C
28C4 29

00
29
generally sealed above and below by the Silverpit 48 B2 00

00
31
Formation and Carboniferous mudstones respectively. A 2
31 2 00
C2Z 00 A2
similar situation occurs in the Cleeton structure with the

29
32

00
A1
crestal areas of the structure at around 9090 feet TVDSS, 00
C5 C1 R-A
and a formation thickness of 200 to 390 feet. The Silverpit 4 CLEETON

30 0
31
00
Formation and Carboniferous mudstones form seals above

0
C3 4
and below.
2900
42/29 42/30 43/26a
SEDIMENTOLOGY AND DEPOSITIONAL 47/4b 47/5a 48/1
ENVIRONMENT

The Ravenspurn South and Cleeton structures lie in the


northwestern part of the Sole Pit area. This area has
undergone an extensive and complex geological history, the (Modified from Heinrich R.D.,1991)
tectonic trends having been established during the late
Carboniferous and early Permian. Deposition of the
Rotliegendes Group sediments were controlled by these trends.
The Rotliegendes Group in the Ravenspurn South and Cleeton areas consists of than in the Cleeton area where they are thinner and less well defined.
an interbedded series of fluvial, aeolian and playa lake/sabkha sediments deposited The Lower Leman Sandstone Formation is overlain by the Silverpit Formation
in a hot, semi-arid desert environment. which consists of argillaceous sediments deposited in a desert lake environment.
The Lower Leman Sandstone Formation comprises mainly fine to medium Interbedded, associated inland sabkha/lake margin, thin bedded sandstone and
grained, locally coarse grained and argillaceous fluvial sandstones deposited across thicker sequences of argillaceous siltstone and mudstone are present.
floodplains and in incised wadis. Subordinate, well sorted, fine to medium grained The Upper Leman Sandstone Formation is only tentatively recognised in Well
sandstones represent aeolian dune forms and thin bedded, argillaceous sandstones 42/30-1 on the Ravenspurn South structure. It consists of sandstone which is
and mudstones represent playa lake and lake margin sediments. The playa lake and probably of fluvial origin.
lake margin deposits are more prominently developed in the Ravenspurn South area

INTERPRETATIVE STRUCTURAL CROSS SECTION

CLEETON RAVENSPURN SOUTH RAVENSPURN NORTH


42/29-2 42/30-1 42/30-4
Feet WSW ENE

0
Chalk Group
2000 Cromer Knoll Group
JURASSIC
4000
Haisbor
ough G
roup
TRIASSIC
6000
Bacton
Group

8000
Zechstei
n Group
10000 PERMIAN

Rotliegendes Group
12000
CARBONIFEROUS

0 1.5 3 km

REPRESENTATIVE WELL SECTION - 42/29-2


DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15

Fluvial and minor aeolian sandstones and


playa lake/sabkha deposits.
Geometry
9350

Stacked sheet and lobate sand bodies and


variably extensive mudstones.
42/29-2 and K
predominantly moderate. K variably poor
LEMAN SANDSTONE FORMATION

to moderate.
Fluvial and aeolian dune sandstones with
ROTLIEGENDES GROUP

minor playa lake mudstones.


9400

Geometry
Laterally extensive sheet sandstones.
PERMIAN

and K
mainly good but decreasing upward,
9450

locally poor. K commonly ranges from poor


to good.
9500

Non-reservoir alluvial plain deposits.


1

1. CARBONIFEROUS
Cleeton & Ravenspurn South
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
E
RAVENSPURN NORTH
10000
42/30-2

RAVENSPURN SOUTH

Silverpit Formation
42/30-1
ULS
1000

Rotliegendes Group
p
rou
in G
W hste
Zec

sst. Formation
Lower Leman
CLEETON 100

42/29-2

PERMEABILITY (md.)
ULS - Upper Leman 10
Sandstone Formation
0

200
OUS
IFER
BON 1
CAR

400 feet

0.1

A series of six facies units can be recognised and correlated in most wells on the
Ravenspurn South structure. These reflect variations in the proportions of quartzose
sandstone, argillaceous sandstone and mudstone and have contrasting reservoir quality.
The sandstone units are laterally extensive across the structure and the individual thin 0.01
bedded mudstones are likely to be impersistent and not provide field-wide permeability 0 10 20 30
barriers. Communication exists within the reservoir, both horizontally and vertically. A POROSITY (per cent.)
complex internal sediment architecture exists resulting from the interstratification and
stacking of extensive fluvial sheetflood and aeolian sandstones and more laterally restricted
fluvial channel sandstones and individual thin playa lake mudstones. This produces a Porosity values in the Cleeton structure are mainly moderate to
preferential direction of transmissibility in the horizontal plane and along dune slip face good (10 to 20 per cent.), averaging about 14 to 15 per cent. The
laminae through the sandstone-dominated intervals. better porosity is encountered in the lower part of the Lower Leman
Facies and reservoir zones are less well defined in the Cleeton structure and the interval Sandstone Formation. Permeability varies markedly from very poor
can be treated as a single reservoir sandstone. Sandstone sequences are thickly developed to good (less than 1 md to greater than 2000 md). Trends in porosity
with minor, thin, laterally impersistent mudstones. Horizontal reservoir communication will values are controlled by the primary textural characteristics, grain
be better than in the vertical plane due to the interdigitating sedimentary relationships. size, sorting and detrital clay content i.e. facies distribution. A
Vertical reservoir quality contrasts are less marked than in the Ravenspurn South structure diagenetic overprint is present on this control which severely
with better vertical communication. reduces permeability. Heavy carbonate cementation destroys
reservoir quality in an interval towards the base of the formation in
Well 42/29-2, although this may be concretionary cementation.
Fibrous pore lining and pore filling authigenic illite may be the cause
of low permeability in some sandstones higher in the formation.
Minor quartz, anhydrite and carbonate cements and authigenic
kaolinite are also expected to be present.
Porosity in the Ravenspurn South structure is generally poor to
moderate with similar poor to moderate permeability. Permeability
FLUID PROPERTIES may be locally high in aeolian sandstone horizons. Controls on
porosity and permeability are the primary textural characteristics and
The two fields contain dry gases. The gas gravities are 0.608 in Cleeton and 0.595 in hence, facies distribution as in the Cleeton structure. Similar
Ravenspurn South. diagenetic characteristics are also expected. The poorer reservoir
quality of the Ravenspurn South structure, compared to the Cleeton
structure, is due mainly to the increased argillaceous content of the
1.00
reservoir interval.
Ravenspurn South
Zi = 0.97
GAS DEVIATION FACTOR Z

0.95

Zi = 0.94 RESERVOIR PRESSURE


0.90 Cleeton
Relative to a hydrostatic gradient to surface of 0.45 psi/ft, the
Cleeton field is normally pressured and the Ravenspurn South field
0.85 is overpressured by approximately 120 psi.

Ravenspurn South @ 192 F (from correlation)


Cleeton @ 172 F (from correlation) 9000
0.80
0 1000 2000 3000 4000 5000 Cleeton

PRESSURE (psig) 0.25 psi/ft


9200

GDT@ 9343 ft TVDSS


9400
DEPTH (feet TVDSS)

0.45 psi/ft
CONTROLS ON RECOVERY
9600
Recovery from the Cleeton and Ravenspurn South fields is expected to be fair to
moderate. The principal factors affecting the recovery are as follows.
9800 Ravenspurn South
poor to good reservoir properties in Cleeton and poor to moderate reservoir
properties in Ravenspurn South
areally extensive sheet geometry reservoir sandstones, interbedded with 10000 0.23 psi/ft
some impersistent mudstones in Ravenspurn South
significant faulting in the area reducing the probability of water influx but GDT@ 10170 ft TVDSS
0.45 psi/ft
increasing the possibility of reservoir compartmentalisation 10200
installation of compression in 1996 4100 4200 4300 4400 4500 4600 4700
moderate well productivity greatly enhanced by hydraulic fracturing INITIAL RESERVOIR PRESSURE (psig)
Cleeton & Ravenspurn South
FACILITIES SPECIFICATIONS

RAVENSPURN

UNITED KINGDOM
CLEETON CLEETON SOUTH
P/Q W A, B, C

Water Depth 165 165 165


(feet)
Platform Type -------------- steel piled jackets -------------

Function process/ wellhead wellhead


accommodation satellite

Jacket Weight 3100 1140 1740 - 1900


(tonnes)
Total Weight of Structure 11400 2430 4000 - 4260
(tonnes)

Accommodation short term provision for emergency only

Well Slots 9 54
Wells 5 26

PROCESSING AND EXPORT SPECIFICATIONS

CLEETON RAVENSPURN SOUTH


W A, B, C

Gas Throughput 500 N/A


(MMscf/day)

Gas Export bridge link 16" line to


from W to P/Q Cleeton
36" x 56 km pipeline from Cleeton P/Q
to Dimlington (2000 MMscf/day capacity)

(This is a BP photograph)
A wellhead tower bridge linked to the central processing and accommodation platform
to accommodate compression facilities will be installed in 1996.

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 250

Net Present Value 907.05 351.52 163.92 75.96 9.29 -61.72 -129.98
Net Present Value (Deflated) 643.25 126.58 -43.12 -120.94 -178.60 -237.69 -289.17
Average Annual Daily Gas Rate (MMscf/day)
Profit/Inv Ratio 1.37 0.63 0.32 0.16 0.02 -0.15 -0.35
Profit/Inv Ratio (Deflated) 0.67 0.15 -0.06 -0.17 -0.26 -0.38 -0.52 200
NPV/Unit Oil Equiv. 5.39 3.62 2.26 1.26 0.18 -1.55 -4.73
NPV/Unit Oil Equiv. (Deflated) 3.72 1.23 -0.55 -1.83 -3.18 -5.33 -9.19

Payback Year 1995


Nominal Rate Of Return % 12.33 150
Real Rate Of Return % 7.10

Post Corporation Tax

Net Present Value 593.83 201.66 65.01 0.22 -49.16 -101.88 -152.17 100
Net Present Value (Deflated) 355.25 -12.75 -135.64 -192.06 -233.67 -275.72 -310.33
Profit/Inv Ratio 0.90 0.36 0.13 0.00 -0.11 -0.24 -0.41
Profit/Inv Ratio (Deflated) 0.37 -0.02 -0.18 -0.27 -0.34 -0.44 -0.56
NPV/Unit Oil Equiv. 3.53 2.08 0.90 0.00 -0.97 -2.56 -5.53
NPV/Unit Oil Equiv. (Deflated) 2.06 -0.12 -1.73 -2.91 -4.16 -6.18 -9.87
50
Nominal Rate Of Return % 10.01
Real Rate Of Return % 4.75

Earnings Data
0
Gross Revenue 2,219.25 1,208.79 875.47 716.65 592.95 454.33 303.71 1985 1990 1995 2000 2005 2010
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 42.90 20.74 12.78 9.21 6.63 4.06 1.82 Year
Corporation Tax 313.22 149.86 98.91 75.75 58.45 40.16 22.19
Capital Expenditure 660.00 560.19 511.71 483.08 456.95 421.80 372.02
Operating Costs 609.29 276.34 187.06 148.40 120.08 90.19 59.84 CASH FLOW REPORT
Gross Revenue (Deflated) 2,195.89 1,240.75 916.19 758.95 634.94 493.99 337.66 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Petroleum Revenue Tax (Deflated) 40.78 18.23 11.01 7.87 5.63 3.43 1.54 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Corporation Tax (Deflated) 288.00 139.32 92.51 71.11 55.07 38.02 21.16
Capital Expenditure (Deflated) 965.01 826.04 757.54 716.77 679.38 628.79 556.60 1985 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -37.3 0.0 0.0 0.0
Operating Costs (Deflated) 546.84 269.91 190.77 155.25 128.53 99.47 68.70 1986 0.0 0.0 0.0 55.0 0.0 0.0 0.0 -55.0 -179.4 0.0 0.0 0.0
1987 0.0 0.0 0.0 315.0 0.0 0.0 0.0 -315.0 -919.4 0.0 0.0 0.0
1988 13.8 0.0 10.0 150.0 0.0 0.0 0.0 -146.2 -386.3 0.0 27.0 0.0
1989 50.3 0.0 20.0 60.0 0.0 0.0 0.0 -29.7 -68.1 0.0 115.0 0.0
1990 102.8 0.0 20.0 20.0 0.0 0.0 0.0 62.8 123.6 0.0 196.0 11.5
1991 144.7 0.0 21.0 10.0 0.0 0.0 0.0 113.7 189.1 0.0 208.0 41.0
1992 131.9 0.0 20.0 0.0 0.0 0.0 0.0 111.9 163.0 0.0 191.0 42.5
ECONOMIC INDICATORS FROM 1/1/1996 1993 142.5 0.0 20.0 0.0 0.0 0.0 0.0 122.5 159.1 0.0 204.0 46.2
1994 149.2 0.0 20.0 1.0 0.0 0.0 0.0 128.2 151.7 0.0 206.0 34.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1995 132.5 0.0 20.0 14.0 0.0 19.2 19.2 79.3 84.9 0.0 185.0 33.3
Total To Start Of Discounting ( 1/JAN/1996)
Pre Corporation Tax 867.6 0.0 151.0 635.0 0.0 19.2 19.2 62.4 -719.2 0.0 486.2 76.1

Net Present Value 825.46 700.19 636.43 598.73 564.56 519.25 456.94 1996 153.7 0.0 20.0 25.0 0.0 29.8 29.8 78.9 76.3 0.0 200.0 50.0
Net Present Value (Deflated) 775.38 656.84 598.11 563.62 532.45 491.16 434.32 1997 152.7 0.0 20.8 0.0 0.0 36.5 36.5 95.3 83.4 0.0 190.0 50.0
NPV/Unit Oil Equiv. 9.46 10.01 10.20 10.30 10.38 10.46 10.54 1998 147.9 0.0 21.6 0.0 0.0 37.8 37.8 88.4 69.9 0.0 177.0 46.7
1999 132.3 0.0 22.5 0.0 0.0 37.4 37.4 72.4 51.8 0.0 151.7 41.5
Post Corporation Tax 2000 118.6 0.0 23.4 0.0 0.0 33.0 33.0 62.1 40.1 0.0 130.1 37.0
2001 105.8 0.0 24.4 0.0 0.0 29.0 29.0 52.4 30.6 0.0 111.6 31.8
Net Present Value 531.41 463.54 425.74 402.73 381.53 352.99 313.08 2002 93.8 0.0 25.4 0.0 14.4 25.1 39.5 29.0 15.3 0.0 95.1 27.5
Net Present Value (Deflated) 507.13 438.79 402.93 381.43 361.78 335.44 298.70 2003 84.3 0.0 26.4 0.0 14.1 15.4 29.5 28.5 13.6 0.0 82.3 23.6
NPV/Unit Oil Equiv. 6.09 6.62 6.83 6.93 7.01 7.11 7.22 2004 74.6 0.0 27.4 0.0 9.8 13.7 23.5 23.6 10.2 0.0 69.8 20.4
2005 67.2 0.0 27.1 0.0 6.4 11.8 18.2 21.9 8.5 0.0 60.6 17.6
Earnings Data 2006 59.2 0.0 26.7 0.0 3.2 10.8 14.0 18.5 6.5 0.0 51.3 15.0
2007 52.9 0.0 26.6 0.0 8.3 9.4 17.8 8.6 2.7 0.0 44.0 13.1
Gross Revenue 1,351.66 1,050.18 921.75 851.26 790.33 713.29 613.46 2008 46.7 0.0 26.2 0.0 8.0 5.2 13.2 7.3 2.1 0.0 38.4 9.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 41.2 0.0 25.9 0.0 6.0 4.0 10.0 5.2 1.4 0.0 32.5 7.8
Petroleum Revenue Tax 42.90 35.48 29.80 26.26 23.05 18.89 13.56 2010 4.0 0.0 27.4 0.0 1.1 3.0 4.0 -27.4 -6.5 0.0 0.0 6.8
Corporation Tax 294.04 236.66 210.69 196.00 183.03 166.26 143.86 2011 3.6 0.0 3.4 0.0 0.0 -8.0 -8.0 8.1 1.7 0.0 0.0 5.8
Capital Expenditure 25.00 24.40 24.06 23.84 23.62 23.31 22.82 2012 3.2 0.0 3.0 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 5.1
Operating Costs 458.29 290.11 231.46 202.44 179.09 151.84 120.14 2013 2.9 0.0 2.7 0.0 0.0 0.0 0.0 0.2 0.0 0.0 0.0 4.4
2014 2.6 0.0 2.0 0.0 0.0 0.0 0.0 0.6 0.1 0.0 0.0 3.8
Gross Revenue (Deflated) 1,209.67 955.76 846.06 785.37 732.59 665.38 577.41 2015 2.4 0.0 2.1 0.0 0.0 0.2 0.2 0.1 0.0 0.0 0.0 3.3
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2016 2.1 0.0 2.0 0.0 0.0 0.1 0.1 0.1 0.0 0.0 0.0 2.8
Petroleum Revenue Tax (Deflated) 40.78 31.18 25.68 22.44 19.59 15.96 11.41 Remain
Corporation Tax (Deflated) 268.25 218.06 195.18 182.18 170.67 155.72 135.62 2017 0.0 0.0 71.1 0.0 -28.4 -0.2 -28.6 -42.5 -4.9 0.0 0.0 0.0
Capital Expenditure (Deflated) 25.14 24.53 24.19 23.97 23.75 23.44 22.95
Operating Costs (Deflated) 368.37 243.21 198.09 175.34 156.80 134.83 108.73 Total 1,351.7 0.0 458.3 25.0 42.9 294.0 336.9 531.4 402.9 0.0 523.6 154.4

These cash flows include Cleeton and Ravenspurn South fields, plus Ravenspurn North and Johnston tariff income.
30/11b Amoco 30/12b Amoco SUMMARY
6 2
4 The Clyde field is located in Quadrant 30 some 280 km east
HALLEY southeast of Aberdeen in the UK Sector of the Northern North Sea. The
3 field was discovered in 1975 by Well 30/17b-2 which encountered oil in
Upper Jurassic sands of the Fulmar Formation.
30/16 Shell A 30/17b BP Development of Clyde began in 1984 and involves one steel
6
AD platform. First oil was produced in March 1987 and peak oil production
FULMAR LEVEN was achieved in 1988. Oil is piped to the Fulmar oil field where it is
7 9 loaded onto tankers.
7 The current interests in the Clyde field in per cent. are:-
5 8 6
2 CLYDE
BP Petroleum Development Ltd * 51.00
5
13
3
RD/Shell UK Ltd 24.50
4
Esso Exploration & Production Ltd 24.50
MEDWIN
4 operator *
1 3 AUK
A 1
2 9 10

12 8 JANICE
AUK SE
10

30/17a Phillips
30/21 Shell 30/22b Mobil
0 5 km

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Clyde field is located in a fault-bounded terrace on the western
margin of the South West Central Graben. The nearest fields are
Oil Gravity (API) 37-38 Fulmar, approximately 7 km to the west, which produces oil from
Gas/Oil Ratio (scf/stb) 340-490 Jurassic sandstones, and Auk some 10 km to the southwest which
Bubble Point Pressure, Pb (psig) 1722-2370 contains oil in Zechstein dolomites and Rotliegendes sandstone. The
Formation Volume Factor at Pi (rb/stb) 1.25-1.32 Argyll and Innes fields lie 45 km and 35 km to the southeast
Oil Compressibility (vol/vol/psi) 14.6 x 10-6 respectively. The Josephine and J-Block discoveries, 25 km to the
north, contain hydrocarbons in a series of formations ranging from the
Original Reservoir Pressure, Pi (psig) 6405
Paleocene to the Triassic. In the Norwegian sector some 50 km to the
At Datum Depth of (ft TVDSS) 12000
east lie a number of chalk reservoirs including Ekofisk and Valhall.
Reservoir Temperature (F) 290

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Fulmar
Geological Age Jurassic
Porosity (per cent.) 15-25
Permeability (md) 1-500
Average Water Saturation (per cent.) 15
Oil Water Contact (ft TVDSS) 12570
Depth to Top of Structure (ft TVDSS) 12250

Reserves Clyde Leven Medwin


Oil + NGL Gas Oil
FIELD DESCRIPTION
Reserves (MMstb) 125 33 7 1.5
Est. Production to 31.12.95 (MMstb) 99 24 4 1 The Clyde field is a north-south trending anticline with general dip
Remaining Reserves (MMstb) 26 9 3 0.5 closure augmented by local fault closure. The reservoir comprises
Fulmar Formation sandstones of Upper Jurassic age which pinch out to
Production the northeast of the accumulation. In general the clean sandstones
have good primary porosities and permeabilities range from moderate
Water depth (feet) 262 to excellent.
Production Start Date March 1987 Two oil types are present. In the west and south of the field, the
Peak Production (Oil and NGL) (stb/day) 51000 in 1988 uppermost sand unit is separated from the underlying sands by a shale
Platform(s) Steel jacket and contains a 37 degrees API gravity oil with a gas oil ratio of 340
Number of Wells - Producers 15 scf/stb.
Water injectors 6 The oil within the bulk of the reservoir has an API gravity of 38
degrees and a gas oil ratio of 490 scf/stb. Water injection is used as a
Gas injectors
secondary recovery mechanism.
Oil and NGL Export Pipeline to Fulmar offshore
As well as the main Beta structure the Clyde area has two other
loading system
Jurassic accumulations. Gamma was discovered by Well 30/17b-5 and
Gas Export Pipeline to St. Fergus via Fulmar
has been developed by long reach deviated drilling from the Clyde
platform. This area has been renamed Medwin and commenced
production in March 1994. The Alpha structure was discovered by Well
30/17b-9 and started production in September 1992 via a deviated well
from the Clyde platform. This satellite has been renamed Leven and
produces from Jurassic sandstones similar, but of slightly poorer
reservoir quality, to those of Clyde. It is expected to produce oil until
2002, following the completion of a dual water injector/producer.
STRATIGRAPHY AND STRUCTURE

CLYDE The Clyde field is situated on the southwestern margin of the Central

UNITED KINGDOM
TOP FULMAR FORMATION Graben, to the southeast of the Fulmar field. Upper Jurassic sandstones of
DEPTH STRUCTURE the Fulmar Formation comprise the reservoir rocks. These sands are
underlain by Triassic sandstones and overlain by mudstones of the

Clyde
0 1 km
Kimmeridge Clay Formation which, in conjunction with complex faulting,
(Contours in feet TVDSS) form the seal. A series of northwest-southeast trending en-echelon fault
terraces stepping down from the Auk Ridge and complemented by antithetic
faults characterise the structural framework of the area. The trap is a dip
Edge of truncation of Fulmar Formation and fault closed structure on a down faulted terrace adjacent to the Auk
OWC 12570
Ridge fault system, which forms the main graben boundary in the area.
130
30/17b-9Y 00
12
75
0

12750 12
0 50
1250 0

30/17b-7
12
25
0 30/17b-2

O W C1
125

125
00

127
30/17b-6Z

00 0
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
25
50

7
0
50
12
The sandstones of the Fulmar Formation are generally very fine and fine

2570
grained, argillaceous, locally glauconitic, burrowed and bioturbated.
Rhaxella sponge spicules and macrofossils are locally present. The

C1
0
0 75 sandstones lack primary sedimentary structures except for locally
50 O W12
12 preserved planar horizontal lamination and current ripples. The sandstones
are organised into weakly defined coarsening and fining upwards units.
Locally, the sequence includes silty, bioturbated mudstones. These
sediments are interpreted as a sequence of storm emplaced, sublittoral
30/17b-3
sandstones, representing the lateral migration of a shelf sand sheet
complex. The Fulmar Formation sandstones pass laterally into basinal
12500 mudstones of the Kimmeridge Clay and Heather Formations to the east and
12750 northeast of the field.

(Modified after Stevens DA and Wallis RJ, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION


30/17b-6 30/17b-7
Feet WSW ENE

7000

8000 TERTIARY/QUATERNARY

Top Horda Formation


9000
Top Balder Formation or equivalent
10000

11000 Chalk Group


Top Hod Formation

12000 Valhal Formation

Fulmar Formation
13000
Kimmeridge Clay Formation TRIASSIC

0 1 2 km
14000

REPRESENTATIVE WELL SECTION - 30/17b-3

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Stacked progradational sequences of


distal to proximal storm generated, shallow
marine sheet sandstones.
30/17b-3
Geometry
Thin, sheetlike sand units, stacked and
12500

coalesced to form laterally extensive,


sheet geometry sediment body.

and K
and K range between moderate and
very good, largely reflecting original
textural characteristics (grain size, detrital
clay content).
FULMAR FORMATION
UPPER JURASSIC
HUMBER GROUP

12600
12700
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
30/17b-7
Chalk 10000
Group

Clyde

Kimm. Clay Fm.


1000
Datum : Top Fulmar

n
io
at

n
io
m

at
r
Fo

rm
100
ay

Fo
Cl

Humber Group
ay
ge

Cl
id
er

eg
id
m

Fulmar Formation

PERMEABILITY (md.)
er
m
Ki

m
m
Ki
10

Fulmar
Formation

Triassic Grp.
30/17b-5

TRIASSIC 0.1

0
0.01
0 10 20 30

30/17b-3 100 POROSITY (per cent.)


TRIASSIC

TD
200 feet Porosities are generally moderate to good typically ranging from
30/17b-2 15 to 25 per cent. Permeabilities are commonly moderate to good,
typically from 1 to 500 md.
Primary textural characteristics control trends in porosity and
30/17b-8 permeability values and finer, more argillaceous sediments have
poorer reservoir quality. Locally, porosity and permeability may be
In the Clyde field area, the Fulmar Formation is composed of thin, sheetlike sand units, significantly enhanced by secondary dissolution of sponge spicules
stacked and coalesced to form thick, laterally extensive sheet geometry sediment bodies, and other macrofossils. This may provide the explanation for a high
locally including thin mudstones of variable lateral extent. More extensive mudstones and permeability streak observed within the sequence in some wells.
argillaceous horizons probably form vertical permeability baffles or barriers. Zonation of the
reservoir may be possible on the basis of stratigraphic correlation. However, in sandstone
dominated sequences, the petrophysical distinctions between layers are likely to be of less
significance.
If the high permeability streaks recognised in some wells are due to secondary
dissolution of sponge spicules, they are likely to comprise lensoid sediment bodies of limited
lateral extent.

FLUID PROPERTIES RESERVOIR PRESSURE

The Clyde field contains two types of black oil. In the west and south of the field, the The Clyde field is overpressured by some 920 psi at the oil water
uppermost sand unit is separated from the underlying sands by a shale and contains, a 37 contact based on a hydrostatic gradient to surface of 0.45 psi/ft. The
degrees API gravity oil with a gas oil ratio of 340 scf/bbl. The oil within the bulk of the plot below shows the pressure regime in the bulk of the reservoir.
reservoir has an API gravity of 38 degrees and a gas oil ratio of 490 scf/bbl. The pressure There is evidence for an OWC some 40 feet higher in the west and
dependent properties of this latter oil type are illustrated below. south of the field corresponding to the area of different PVT
properties.

500 1.5 GOR 0.7


12000

B0
400 1.4 0.6
GOR (scf/stb)

B0 (rb/stb)

0 (cp)

300 1.3 0.5


0.30 psi/ft
DEPTH (feet TVDSS)

0
200 1.2 0.4
12500
OWC @ 12570 ft TVDSS
@ 297 F
100 1.1 0.3
0 2000 4000 6000 8000

PRESSURE (psig) 0.45 psi/ft

13000
CONTROLS ON RECOVERY 6300 6500 6700 6900
INITIAL RESERVOIR PRESSURE (psig)
The majority of the oil in place in Clyde is contained in two sand units separated by
shales and interbedded silty sands of non-reservoir quality. Although the structure is
relatively simple, at least two different oil water contacts have been identified suggesting
large scale reservoir compartmentalisation.
The two reservoir quality sand units exhibit good porosity and permeability
characteristics which, combined with a favourable mobility ratio to water-flooding, should
lead to a good recovery factor.
FACILITIES SPECIFICATIONS

Water Depth 262

UNITED KINGDOM
(feet)
Platform Type steel jacket
Function drilling/production/

Clyde
accommodation

Jacket weight 12300


(tonnes)
Total Weight 23304
(tonnes)

Accommodation 205

Well slots 30
Wells 21

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 60000


(bbl/day)

Oil Export 16" x 10 km pipeline to Fulmar


offshore loading system
Gas Export 16 x 10 km pipeline to Fulmar
(onwards to St. Fergus)

(A Britoil Photograph)

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 60 100


Liquid
Net Present Value 346.13 139.73 62.67 24.60 -5.32 -38.48 -72.09
Net Present Value (Deflated) 269.82 38.08 -45.30 -85.43 -116.21 -149.03 -179.35 Gas

@@

@@@


Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 0.62 0.31 0.16 0.07 -0.02 -0.12 -0.27 50
Profit/Inv Ratio (Deflated) 0.31 0.05 -0.07 -0.14 -0.21 -0.29 -0.41
NPV/Unit Oil Equiv. 2.36 1.58 0.94 0.44 -0.11 -1.03 -2.79 75
NPV/Unit Oil Equiv. (Deflated) 1.55 0.35 -0.54 -1.20 -1.91 -3.07 -5.26
40
Payback Year 1991
Nominal Rate Of Return % 11.61
Real Rate Of Return % 6.23

Post Corporation Tax 30 50

@@

@
@@@

Net Present Value 207.51 64.37 9.29 -18.16 -39.78 -63.68 -87.43
Net Present Value (Deflated) 123.97 -42.04 -102.38 -131.32 -153.32 -176.29 -196.06
Profit/Inv Ratio 0.37 0.14 0.02 -0.05 -0.12 -0.21 -0.33 20
Profit/Inv Ratio (Deflated) 0.14 -0.06 -0.16 -0.22 -0.27 -0.35 -0.45 Clyde only
NPV/Unit Oil Equiv. 1.41 0.73 0.14 -0.32 -0.84 -1.70 -3.38 25
NPV/Unit Oil Equiv. (Deflated) 0.71 -0.39 -1.22 -1.85 -2.52 -3.64 -5.75
10
Nominal Rate Of Return % 8.63
Real Rate Of Return % 3.42

Earnings Data
0 0
Gross Revenue 1,643.64 978.58 737.38 616.86 519.88 407.34 279.38 1985 1990 1995 2000 2005
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 138.61 75.36 53.38 42.76 34.46 25.19 15.34
Capital Expenditure 555.00 447.52 397.55 368.83 343.16 309.51 263.68
Operating Costs 742.51 391.33 277.16 223.43 182.04 136.32 87.79

Gross Revenue (Deflated) 1,932.60 1,190.23 912.92 772.01 657.20 522.06 365.21
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 145.85 80.12 57.08 45.89 37.11 27.26 16.71
Capital Expenditure (Deflated) 880.17 719.53 643.72 599.77 560.26 508.09 436.35
Operating Costs (Deflated) 782.61 432.62 314.50 257.67 213.15 163.00 108.21

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
ECONOMIC INDICATORS FROM 1/1/1996 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
1982 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -56.1 0.0 0.0 0.0
Pre Corporation Tax 1983 0.0 0.0 0.0 40.0 0.0 0.0 0.0 -40.0 -191.4 0.0 0.0 0.0
1984 0.0 0.0 0.0 100.0 0.0 0.0 0.0 -100.0 -423.6 0.0 0.0 0.0
Net Present Value 71.66 81.24 84.17 85.31 85.95 86.18 85.22 1985 0.0 0.0 0.0 125.0 0.0 0.0 0.0 -125.0 -466.6 0.0 0.0 0.0
Net Present Value (Deflated) 81.45 86.61 87.72 87.90 87.75 87.03 84.98 1986 0.0 0.0 0.0 115.0 0.0 0.0 0.0 -115.0 -375.0 0.0 0.0 0.0
NPV/Unit Oil Equiv. 2.17 2.81 3.12 3.31 3.48 3.72 4.04 1987 144.9 0.0 28.4 60.0 0.0 0.0 0.0 56.5 164.8 34.0 9.0 0.0
1988 171.5 0.0 46.1 25.0 0.0 0.0 0.0 100.4 265.4 51.0 23.0 0.0
Post Corporation Tax 1989 147.3 0.0 39.5 20.0 0.0 0.0 0.0 87.8 201.0 35.0 9.0 0.0
1990 183.1 0.0 42.3 5.0 0.0 0.0 0.0 135.8 267.2 38.0 0.0 0.0
Net Present Value 25.25 39.12 44.31 46.85 48.80 50.86 52.60 1991 143.8 0.0 41.8 5.0 0.0 26.1 26.1 70.9 117.9 34.0 3.0 0.0
Net Present Value (Deflated) 37.67 46.82 50.04 51.52 52.59 53.56 54.01 1992 123.4 0.0 43.0 50.0 0.0 26.4 26.4 4.0 5.8 31.0 0.0 0.0
NPV/Unit Oil Equiv. 0.77 1.35 1.64 1.82 1.98 2.19 2.49 1993 131.7 0.0 62.1 0.0 0.0 16.8 16.8 52.8 68.7 31.0 5.0 0.0
1994 93.1 0.0 54.5 0.0 0.0 15.7 15.7 23.0 27.2 23.4 7.0 0.0
Earnings Data 1995 96.4 0.0 48.0 0.0 0.0 7.3 7.3 41.1 44.0 23.2 9.5 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Gross Revenue 408.47 355.97 330.05 314.64 300.55 281.54 254.61 1,235.2 0.0 405.7 555.0 0.0 92.2 92.2 182.3 -350.8 109.7 23.9 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1996 84.2 0.0 41.8 0.0 0.0 11.9 11.9 30.5 29.3 19.6 7.5 0.0
Corporation Tax 46.41 42.13 39.86 38.46 37.15 35.32 32.61 1997 75.6 0.0 39.3 0.0 0.0 10.9 10.9 25.4 21.7 16.5 5.8 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 67.1 0.0 37.1 0.0 0.0 9.7 9.7 20.4 15.5 14.2 4.4 0.0
Operating Costs 336.81 274.73 245.87 229.33 214.59 195.36 169.39 1999 57.6 0.0 36.0 0.0 0.0 8.2 8.2 13.4 9.1 11.8 3.2 0.0
2000 51.2 0.0 34.8 0.0 0.0 5.8 5.8 10.6 6.4 10.2 2.1 0.0
Gross Revenue (Deflated) 372.70 326.99 304.31 290.80 278.41 261.65 237.82 2001 40.9 0.0 37.6 0.0 0.0 4.4 4.4 -1.2 -0.7 7.9 1.2 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 31.9 0.0 31.2 0.0 0.0 0.1 0.1 0.6 0.3 6.0 0.5 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 43.78 39.78 37.68 36.38 35.16 33.47 30.96 2003 0.0 0.0 79.0 0.0 0.0 -4.5 -4.5 -74.5 -31.8 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 291.25 240.38 216.59 202.90 190.66 174.62 152.84 Total 408.5 0.0 336.8 0.0 0.0 46.4 46.4 25.3 50.0 31.5 9.0 0.0

These cash flows include Clyde, Leven and Medwin fields


211/22a SUMMARY
7 Deminex
1 210/ 211/21b Shell The Cormorant fields are located in Quadrant 211, some 145 km
A 25e 15
Rel.
4 northeast of the Shetland Islands in the UK Sector of the Northern North
211/22b Sea. Cormorant South was discovered by Well 211/26-1 in September
3 Deminex
5
1972, which encountered oil in Middle Jurassic Brent Group
TERN sandstones. Subsequently, Central Cormorant was discovered in 1974
2
NORTH B by Well 211/21-2 and North Cormorant in 1975 by Well 211/21-3A.
210/25a Shell 6,6A
210/25d Rel.
CORMORANT Development of the Cormorant fields began in May 1978. A concrete
6,6A gravity structure is being used to develop South Cormorant and a steel
5 2 jacket to develop North Cormorant. First production from South
Cormorant was achieved in December 1979. North Cormorant was put
9,12,14
on production in February 1982.
CENTRAL 10 Central Cormorant is a subsea development, exploited using an
CORMORANT 13
8 underwater manifold centre (UMC). The UMC was installed in 1982 and
1,1A
2 Central Cormorant started production in May 1983. The UMC is tied
211/21a Shell
back to and controlled from the A platform on South Cormorant. All three
210/25b Arco 6
210/30b Amoco C 211/26a Shell 211/27 Amoco areas produce gas in association with oil. Well performance has been
5 characterised by high initial rates but rapid declines. Water injection is
3 N.W.HUTTON used to maintain reservoir pressure. The fields are now well into the
8 decline phase of production.
211/26b Rel. 7 The current interests in the Cormorant fields in per cent. are:-
1
3 RD/Shell UK Ltd * 50.00
A 10 Esso Exploration & Production UK Ltd 50.00
A
4,4A
2 9
0 4 km 5,5A operator *
3
SOUTH
CORMORANT

RESERVOIR CHARACTERISTICS LOCAL SETTING

The Cormorant fields are located on the western side of the North
Fluid Properties NORTH SOUTH & Viking Graben. They lie in the western part of the Brent province. The
CENTRAL closest producing fields are North West Hutton to the southeast, Eider
to the north, Tern to the northwest and the Pelican discovery to the
Oil Gravity (oAPI) ----------------------------------- 36 -------------------------------- south.
Gas/Oil Ratio (scf/stb) ---------------------------------- 375 -------------------------------
Bubble Point Pressure, Pb (psig) --------------------------------- 1700 ------------------------------
Formation Volume Factor at Pi (rb/stb) ---------------------------------- 1.3 --------------------------------
Oil Compressibility (vol/vol/psi)
Original Reservoir Pressure, Pi (psig) 5243 4890
At Datum Depth of (ft TVDSS) 9200 8800
Reservoir Temperature (F)

Rock Properties

Rock Type ---------------------------- Sandstone --------------------------


Stratigraphic Unit -------------------------- Brent Group ------------------------
Geological Age ------------------------ Middle Jurassic ----------------------
Porosity Range (per cent.) -------------------------------- 12-22 ------------------------------
Permeability Range (md) ------------------------------ 10-1000 ----------------------------
Connate Water Saturation (per cent.) ----------------------------------- 20 ---------------------------------
Oil Water Contact (ft TVDSS) 9498 9106
Depth to Top of Structure (ft TVDSS) --------------------------------- 8900 -------------------------------

Reserves

Total Oil & NGL Reserves (MMstb) 413 219


Total Gas Reserves (Bcf) 28 20
Est. Oil & NGL Production to 31.12.95(MMstb) 324 162
Est. Gas Production to 31.12.95 (Bcf) 26 20
Remaining Oil & NGL Reserves (MMstb) 89 57
Remaining Gas Reserves (Bcf) 2 0
FIELD DESCRIPTION
Production
The Cormorant fields are three separate accumulations defined by
north-south trending faults. Further faults compartmentalise the
Water depth (feet) 528 492-499
reservoir. The reservoir occurs within shallow marine and delta plain
Production Start Date February 1982 December 1979/May 1983
sandstones of the Middle Jurassic Brent Group which average about
Peak Production (Oil and NGL) (stb/day) 108000 47000
250 feet in thickness. Porosities and permeabilities are generally
Platform(s) 2 + UMC manifold
moderate to good.
Number of Wells - Producers 20 6 (C), 10 (S) The reservoir contains a black oil with API gravity averaging 36
Water injectors 12 3 (C), 9 (S) degrees, and GOR averaging about 375 scf/bbl.
Gas injectors A discovery known as Pelican (Wells 211/26-12 and 13) lies to the
Oil and NGL Export Pipeline to Sullom Voe south of Cormorant. It is being developed as a subsea tieback to the
Gas Export Feeder to WELGAS link to the South Cormorant A platform with start up expected in 1996.
FLAGS system The Cormorant A platform is the collecting point in the Brent pipeline
system and as such, will remain in place until all fields involved in the
system have ceased production. This is expected in the early 21st
century.
211/21b 211/21a 211/22a STRATIGRAPHY AND STRUCTURE
211/22b
The Cormorant area comprises three separate accumulations which are

UNITED KINGDOM
defined by north northwest-south southeast or north northeast-south southwest

9000

Cormorant
4A trending faults. Within the major accumulations there are north-south to
northeast- southwest trending faults which further compartmentalise the
3A
reservoir.
The reservoir is formed of Brent Group sandstones. The Brent Group
consists of a Middle Jurassic shallow-marine and deltaic complex which
B
prograded northwards over the offshore mudstones of the Dunlin Group. The
6 lower four formations (Broom, Rannoch, Etive, Ness) of the Brent Group are
usually present. The uppermost formation, the Tarbert Formation, is commonly
5 absent. This is mainly due to erosion of the section from the crestal areas of the
field overlying Upper Jurassic mudstones form the seal.

9000
2

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

1A The Brent Group forms an overall northward prograding shallow marine and
8 deltaic complex. The Broom Formation at the base consists of stacked
sublittoral sheet sandstones which have been thoroughly bioturbated. The
overlying Rannoch and Etive Formations comprise a coarsening and cleaning
6 upward shoreface sequence which starts with the micaceous and argillaceous
211/26b 211/26a 211/27
C lower to middle shoreface sandstones of the Rannoch Formation and is capped
by the coarser, strongly cross-bedded upper shoreface, foreshore and
10000

backshore sandstones of the Etive Formation.


The Rannoch and Etive Formations thin towards the southwest. This is due
to the development and preservation of back-barrier lagoonal facies in this area.
0
950

7
0

As a consequence the Ness Formation consists of interbedded mudstones and


900

1 sandstones. The lower part of the Ness Formation comprises back-barrier


CORMORANT lagoonal sediments, with lagoonal mudstones and coals overlain by lagoon
TOP BRENT SAND shoreface sandstones. This is overlain by an extensive lagoonal mudstone, the
10500
10000

2
DEPTH STRUCTURE Mid Ness shale.
A
0 4 km The upper parts of the Ness Formation comprise interbedded channel and
crevasse splay sandstones and floodplain/bay mudstones.
3 (Contours in feet TVDSS)
Locally the top of the Brent Group is formed by the transgressive shallow
marine sandstones of the Tarbert Formation.

(Modified after Taylor DJ and Dietvorst JPA, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION

Feet
211/21-4A 211/21-3A 211/21-2 211/26a-6 211/26-1 211/26-2

N S
8000
LOWER CRETACEOUS
UPPER CRETACEOUS

9000
UPPER JURASSIC
Brent Group

10000
Cormorant Formation
Statfjord Fm.
Dunlin Gp.

11000
BASEMENT

0 1 2 3 4 km
12000

REPRESENTATIVE WELL SECTION - 211/21-2


CORE CORE ANALYSIS DATA GAMMA RAY
9300 DEPTH (feet)
DENSITY
(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Delta plain sediments comprising mouth


S Py
bar or lagoon shoreface sandstones
interbedded with lagoon/bay mudstones
211/21-2 Py
and thin crevasse splay sandstones.
NESS FORMATION

Py

Geometry
Lenticular to lobate and sheetlike
sandstones, interbedded with laterally
Py persistent mudstones.

and K
and K good to very good in thicker
sandstones, poor to moderate in thin
9400

S sandstones.
S S
Py
MIDDLE JURASSIC

Py
BRENT GROUP

Upper shoreface to backshore sandstones.


ETIVE FM.

Geometry
Lenticular to lobate sandstones coalesced
into a more sheetlike unit.
Py and K
Py Generally good to very good.
Py

Lower to middle shoreface sandstones.

Geometry
9500

Py
RANNOCH FM.

Sheetlike sandbody orientated parallel to


palaeo-shoreline.

and K
LOWER JURASSIC

Generally moderate to good, locally very


DUNLIN GROUP

poor to poor where calcite cemented.

S Stacked sublittoral sheet sandstones.


S
BROOM FM.

Geometry
Sheetlike sandbody.
and K
Generally good, poor to moderate where
9600

calcite cemented.
Py
S
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000
211/21-2 211/21-1A 211/26-1 211/26-2 211/26-3

Cormorant
1
211/21-3A

NESS FM

MIDDLE JURASSIC
BRENT GROUP
1000

? 2

3
100
4

JURASSIC
DUNLIN
GROUP
LOWER

PERMEABILITY (md.)
1. Tarbert Formation
2. Etive Formation
0 3. Rannoch Formation
4. Broom Formation 10

100 feet

1
The Broom Formation consists of sandstones which form a sheetlike sandbody 15 to 40
feet thick. This sand sheet thins towards Well 211/26-1. The sands are often poorly
cemented and may give rise to sand production problems.
The Rannoch Formation, together with the overlying Etive Formation, forms a thick
sandbody which developed broadly parallel to the palaeo-shoreline. Locally, there are thin 0.1
mudstones at the base of the Rannoch Formation which form a vertical permeability barrier.
The top of the Rannoch Formation is commonly marked by a thin (<3 feet), highly
micaceous horizon which probably acts as a vertical permeability baffle. Cemented horizons
are present within the Rannoch Formation, probably largely reflecting the early dissolution
of shell debris and precipitation of carbonate cement. Both the Rannoch and Etive 0.01
Formations thin towards the southwest. Within the Ness Formation, lagoon shoreface 0 10 20 30 40
sequences are expected to have a broad, lobate to sheetlike geometry with an upward POROSITY (per cent.)
increasing vertical permeability profile. These are sealed by the Mid Ness Shale. In the
Upper Ness Formation sandbodies vary from 2 to 15 feet in thickness and consist of
channel mouth bar, levee and crevasse splay sandstones with ribbonlike, lobate and Within the Broom Formation porosity and permeability vary from
sheetlike geometries. Interbedded mudstones probably restrict sandbody interconnectivity. good (20 to 30 per cent., greater than 100 md) to poor (less than 10
Where present, the Tarbert Formation forms a sheetlike sandbody which may per cent., less than 10 md) reflecting the presence of calcite
incorporate thin mudstones. cemented horizons. Early calcite cement, derived from shelly
material, locally forms 'doggers' or more extensive horizons with little
or no porosity. Similar horizons may locally occur in the Etive and
Rannoch Formations. Within the Rannoch Formation porosity and
permeability generally increase upwards, from about 10 per cent.
and 10 md near the base of the unit to about 20 per cent. and 100
md near the top. At the top of the unit there is a thin, relatively low
RESERVOIR PRESSURE permeability horizon (generally less than 50 md). The cleaner and
coarser grained Etive Formation displays the most favourable
Data indicate separate pressure regimes in North Cormorant and South Cormorant. porosities and permeabilities, with porosity commonly about 25 per
Based on a hydrostatic gradient to surface of 0.451 psi/ft, the North and South cent. and permeability often exceeding 1000 md, and locally
Cormorant reservoirs are overpressured by 1050 and 880 psi respectively. approaching 4000 md.
The reservoir pressure is 5243 psig at 9200 feet TVDSS in the North Cormorant Within the Ness Formation the range of porosity and permeability
reservoir and 4890 psig at 8800 feet TVDSS in the South Cormorant reservoir. is commonly 10 to 20 per cent., less than 10 md to 100 md. However,
in lagoon shoreface sequences porosity may be greater than 25 per
cent. with permeability 1000 md or more.
8600

8800
SOUTH
0.309 psi/ft
9000
FLUID PROPERTIES
DEPTH (feet TVDSS)

OWC @ 9106 ft TVDSS The Cormorant field contains a conventional black oil with a
9200 solution gas oil ratio of 375 scf/stb and a stock tank oil gravity of 36
0.451 psi/ft
NORTH degrees API. The formation volume factor of 1.3 rb/stb and the
bubble point pressure of 1700 psig have been determined from
0.309 psi/ft
9400 correlations.
ODT @ 9498 ft TVDSS

9600 0.451 psi/ft

9800
4800 4900 5000 5100 5200 5300 5400 5500

INITIAL RESERVOIR PRESSURE (psig)

CONTROLS ON RECOVERY

Recovery is expected to be moderate to good in the Cormorant fields.


Careful reservoir management is required because the layered nature of the reservoir
with strong vertical permeability contrasts leads to uneven water advance in the various
producing units. This can lead to water override and premature water breakthrough in the
producing wells. Faulting also compartmentalises the reservoir, reducing the sweep
efficiency. Further drilling is expected in order to exploit reserves neglected due to lack of
reservoir communication.
FACILITIES SPECIFICATIONS

NORTH CENTRAL SOUTH

UNITED KINGDOM
Cormorant
Water Depth 528 499 492
(feet)
Platform Type steel jacket subsea concrete
manifold gravity
Function drilling/production/ drilling/production/ drilling/production/
accommodation satellite tie in accommodation/
storage

Jacket Weight 24562


(tonnes)
Total Weight 47130 327005
(tonnes)

Accommodation 228 0 206

Well slots 40 9 36
Wells 32 9 19

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput (bbl/d) 180000 50000 1000000

Gas Throughput 30 25 30
(A Shell Photograph)
(MMscf/d)

Oil Export 20" x 16 km pipeline 2x7 km pipeline 36" x 161 km pipeline


to Cormorant S. to Cormorant S. to Sullom Voe
Gas Export 10" x 25 km feeder 16" x 40 km WELGAS
to WELGAS pipeline pipeline to Brent

FULL FIELD ECONOMIC INDICATORS N. Cormorant exports gas to Tern and receives Tern oil.



@
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00%
20.00%
PRODUCTION PERFORMANCE
Pre Corporation Tax
HISTORICAL AND PROJECTED
Net Present Value 2,838.58 1,233.32 736.31 511.61 344.67 169.50 1.21
Net Present Value (Deflated) 2,791.93 805.10 196.72 -73.79 -270.43 -468.48 -638.57 175 100
Profit/Inv Ratio 1.39 0.87 0.63 0.50 0.38 0.22 0.00 Liquid
Profit/Inv Ratio (Deflated) 0.60 0.24 0.07 -0.03 -0.11 -0.22 -0.37
NPV/Unit Oil Equiv. 4.43 4.00 3.51 3.09 2.61 1.77 0.02 Gas

@@


NPV/Unit Oil Equiv. (Deflated) 3.21 1.78 0.62 -0.29 -1.30 -3.03 -6.51 150

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Payback Year 1984 75
Nominal Rate Of Return % 20.05 125
Real Rate Of Return % 9.39

Post Corporation Tax


100
Net Present Value 1,743.51 727.86 403.69 256.03 146.16 31.20 -77.57
Net Present Value (Deflated) 1,380.28 116.33 -268.24 -436.18 -555.40 -670.13 -755.71 50
Profit/Inv Ratio 0.85 0.51 0.35 0.25 0.16 0.04 -0.13

@@@


Profit/Inv Ratio (Deflated) 0.30 0.03 -0.09 -0.17 -0.23 -0.32 -0.44 75
NPV/Unit Oil Equiv. 2.72 2.36 1.92 1.55 1.11 0.33 -1.32
NPV/Unit Oil Equiv. (Deflated) 1.59 0.26 -0.84 -1.70 -2.67 -4.33 -7.71

Nominal Rate Of Return % 16.10 50


25
Real Rate Of Return % 5.76

Earnings Data 25
Gross Revenue 9,228.05 4,533.31 3,132.65 2,493.84 2,009.87 1,482.91 931.80
Royalty 212.66 102.14 69.16 54.29 43.15 31.21 19.02
Petroleum Revenue Tax 1,464.26 749.85 520.70 413.56 331.40 241.23 146.82 0 0
Corporation Tax 1,095.07 505.46 332.62 255.58 198.50 138.30 78.78
Capital Expenditure 2,045.00 1,413.80 1,161.36 1,027.67 915.17 777.45 607.61 1975 1980 1985 1990 1995 2000 2005 2010
Operating Costs 2,655.18 1,025.68 638.25 480.74 370.27 259.25 154.05
Year
Gross Revenue (Deflated) 12,786.37 6,835.17 4,903.69 3,985.37 3,270.03 2,468.09 1,597.76
Royalty (Deflated) 285.96 147.19 103.18 82.62 66.82 49.39 30.93
Petroleum Revenue Tax (Deflated) 2,094.40 1,120.47 793.90 637.62 515.89 380.04 234.79
Corporation Tax (Deflated) 1,411.64 688.77 464.96 362.39 284.97 201.65 117.14 CASH FLOW REPORT
Capital Expenditure (Deflated) 4,637.76 3,417.60 2,905.20 2,626.34 2,386.94 2,086.95 1,704.12
Operating Costs (Deflated) 2,952.03 1,328.05 891.17 700.82 560.56 411.80 260.43 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1975 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -654.6 0.0 0.0 0.0
1976 0.0 0.0 0.0 65.0 0.0 0.0 0.0 -65.0 -1,267.5 0.0 0.0 0.0
1977 0.0 0.0 0.0 115.0 0.0 0.0 0.0 -115.0 -1,782.0 0.0 0.0 0.0
1978 0.0 0.0 0.0 125.0 0.0 0.0 0.0 -125.0 -1,545.5 0.0 0.0 0.0
1979 3.6 0.0 5.0 130.0 0.0 0.0 0.0 -131.4 -1,388.6 1.0 0.0 0.0
1980 124.8 0.0 30.0 255.0 0.0 0.0 0.0 -160.2 -1,382.7 23.0 0.0 0.0
1981 104.2 0.8 35.0 205.0 0.0 0.0 0.8 -136.6 -926.5 15.7 0.0 0.0
1982 313.3 3.9 68.0 250.0 0.0 0.0 3.9 -19.4 -108.9 45.5 1.0 0.0
1983 586.1 12.3 75.0 200.0 49.0 0.0 61.3 248.3 1,187.8 80.7 8.0 0.0
ECONOMIC INDICATORS FROM 1/JAN/1996 1984 1,102.6 23.0 82.0 150.0 98.6 0.0 121.6 749.0 3,173.1 132.1 15.0 0.0
1985 1,195.9 28.5 90.0 125.0 419.2 100.0 547.6 433.2 1,617.3 153.9 23.0 0.0
1986 590.4 20.5 96.0 95.0 156.9 233.8 411.2 -11.8 -38.6 160.2 29.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1987 552.3 11.0 100.0 85.0 177.9 112.8 301.6 65.7 191.9 132.3 21.0 0.0
1988 420.6 10.5 104.0 35.0 39.7 87.0 137.1 144.5 381.8 133.4 16.0 5.0
Pre Corporation Tax 1989 294.6 4.5 105.0 35.0 66.3 56.8 127.6 27.0 61.9 73.1 1.0 56.6
1990 426.1 1.8 103.0 35.0 85.2 30.2 117.3 170.8 336.2 88.8 3.0 75.0
Net Present Value 624.58 592.48 565.17 545.98 526.72 498.50 454.87 1991 244.0 7.1 95.0 20.0 17.1 62.9 87.2 41.8 69.5 59.0 0.3 88.0
Net Present Value (Deflated) 612.62 564.66 534.02 514.02 494.69 467.25 426.16 1992 209.5 6.5 93.0 15.0 0.0 35.3 41.8 59.7 86.9 52.8 2.0 106.0
NPV/Unit Oil Equiv. 4.25 5.02 5.38 5.59 5.76 5.99 6.28 1993 215.2 5.5 90.0 15.0 4.8 25.9 36.2 74.0 96.1 50.6 2.8 131.0
1994 249.1 5.4 80.0 50.0 2.4 29.4 37.2 81.9 97.0 65.0 1.0 129.0
Post Corporation Tax 1995 282.8 7.8 70.0 15.0 56.5 39.8 104.1 93.7 100.3 62.9 3.6 121.7
Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value 343.25 358.22 353.19 346.89 339.20 326.22 303.44 6,915.0 149.1 1,321.0 2,045.0 1,173.6 813.7 2,136.4 1,400.3 -1,694.8 485.5 46.2 260.0
Net Present Value (Deflated) 365.24 356.54 344.57 335.41 325.83 311.30 287.96
NPV/Unit Oil Equiv. 2.33 3.04 3.36 3.55 3.71 3.92 4.19 1996 279.0 8.8 70.0 0.0 60.5 37.7 107.0 101.9 98.1 56.2 2.5 132.7
1997 278.5 8.8 72.8 0.0 55.6 39.1 103.5 102.2 87.6 50.3 1.6 121.9
Earnings Data 1998 256.6 8.7 75.7 0.0 48.3 41.7 98.8 82.1 62.6 45.2 0.7 99.8
1999 232.1 8.6 78.8 0.0 41.2 37.4 87.1 66.2 44.9 40.6 0.0 77.7
Gross Revenue 2,313.03 1,835.79 1,624.92 1,507.14 1,404.13 1,272.31 1,098.92 2000 211.4 8.4 82.0 0.0 34.7 31.7 74.8 54.6 33.0 36.5 0.0 60.5
Royalty 63.59 55.48 50.96 48.16 45.54 41.97 36.89 2001 193.6 8.3 85.3 0.0 28.9 26.7 63.9 44.4 23.9 32.9 0.0 47.1
Petroleum Revenue Tax 290.67 260.73 243.74 233.10 223.06 209.17 188.96 2002 177.3 7.9 88.7 0.0 23.4 22.2 53.5 35.0 16.8 29.6 0.0 33.8
Corporation Tax 281.33 234.26 211.98 199.09 187.52 172.28 151.44 2003 163.3 7.3 87.8 0.0 19.3 18.0 44.7 30.8 13.2 26.7 0.0 26.4
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 143.5 6.2 86.7 0.0 15.8 15.5 37.6 19.2 7.3 24.2 0.0 15.6
Operating Costs 1,334.18 927.10 765.06 679.91 608.81 522.67 418.21 2005 134.2 5.3 85.7 0.0 12.7 11.2 29.3 19.2 6.5 21.9 0.0 12.2
2006 125.8 5.0 84.7 0.0 10.0 9.8 24.8 16.4 4.9 19.9 0.0 9.5
Gross Revenue (Deflated) 1,955.00 1,583.08 1,416.36 1,322.44 1,239.74 1,133.06 991.03 2007 117.8 4.8 83.7 0.0 7.1 8.4 20.4 13.7 3.7 18.0 0.0 3.1
Royalty (Deflated) 58.20 50.23 46.04 43.50 41.16 37.99 33.53 Remain
Petroleum Revenue Tax (Deflated) 271.91 241.98 225.90 216.04 206.84 194.22 176.03 2008 0.0 -24.7 352.2 0.0 -66.8 -18.2 -109.7 -242.5 -57.9 0.0 0.0 2.5
Corporation Tax (Deflated) 247.38 208.12 189.46 178.61 168.85 155.96 138.20
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 2,313.0 63.6 1,334.2 0.0 290.7 281.3 635.6 343.3 344.6 146.7 1.8 234.6

These cash flows include Cormorant S+C+N, and tariff income from Eider, Tern, Hudson and Pelican
211/18b Enterprise 211/18a 211/19a 33/9b SUMMARY
BP Conoco Statoil
17 6
6 3 The Dunlin field is located in Quadrant 211 some 180 km northeast
4
19,20
of the Shetland Islands in the UK Sector of the Northern North Sea. The
THISTLE 2 A field was discovered in 1973 by Well 211/23a-1 which encountered oil
8 MURCHISON in Middle Jurassic sands of the Brent Group. The smaller Osprey field
33/9c
3 Mobil to the north was discovered in 1974 by Well 211/23a-3.
7 Development of Dunlin began in 1974 and involves one concrete
A
1
1 211/19b Rel. gravity platform. First oil was produced in August 1978 and peak oil
2 5 production was achieved in 1979. Oil is piped to the Sullom Voe
DEVERON 4 terminal via the Cormorant field. This has proved to be very successful.
7
The Osprey field has been developed as a subsea tie back to Dunlin.
9 First oil production occurred in January 1991.
211/23b Amerada 4 211/24a OMV 211/24c Conoco The current interests in the Dunlin field in per cent. are:-
8
7
OSPREY
3 RD/Shell UK Ltd * 10.93
2 Esso Exploration & Production Ltd 10.93
Oryx (UK) Energy Ltd 26.05
5
Aran Energy Exploration (Statoil) 26.05
DUNLIN A
OMV 26.05
7
11 211/23a Shell 1 operator *
3

Note: Percentages rounded to two decimal places


211/24b
5 Conoco
2

0 4 km
12 6

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties Dunlin / Osprey The Dunlin and Osprey fields are located in the North Viking Graben,
close to the median boundary with Norway. Dunlin and Osprey are
Oil Gravity (API) 31-36 surrounded by fields such as Ninian, Brent, Hutton and North West
Gas/Oil Ratio (scf/stb) 100-240 Hutton, Statfjord, Don, Thistle and Murchison, all of which lie within a 20
Bubble Point Pressure, Pb (psig) 560-960 km radius. Fields within a 50 km radius include Alwyn North, Lyell,
Formation Volume Factor at Pi (rb/stb) 1.07-1.15 Heather and Cormorant. All these fields contain oil in sandstones of the
Oil Compressibility (vol/vol/psi) 7.75 x 10-6 Brent Group and/or Statfjord Formations.
Original Reservoir Pressure, Pi (psig) 6020/5900
At Datum Depth of (ft TVDSS) 9000/8800
Reservoir Temperature (F) 210

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group
Geological Age Middle Jurassic
Porosity Range (per cent.) 18-28
Permeability Range (md) 10-2000
Connate Water Saturation (per cent.) 15-60
Oil Water Contact (ft TVDSS) 9165-9205(D)/8910(O)
Depth to Top of Structure (ft TVDSS) 8600 FIELD DESCRIPTION

Reserves The Dunlin field comprises a series of tilted, fault bounded horst
Dunlin Osprey blocks, the main horst containing 90 per cent. of the oil initially in place.
Total Reserves (Oil and NGL) (MMstb) 406 94 In common with other fields in the North Viking Graben, oil production
Est. Production to 31.12.95 (MMstb) 345 49 is from sands of the Brent Group of Middle Jurassic age. The best
Remaining Reserves (Oil and NGL) (MMstb) 61 45 reservoir characteristics are found in the Etive and Ness Formations,
although the latter is highly stratified. The Rannoch Formation is highly
Production micaceous and has poor reservoir quality. In the Dunlin field the Tarbert
is absent in parts of the east and south due to erosion.
Water depth (feet) 495 The oil is highly undersaturated and its properties vary by fault block.
Production Start Date August 1978/January 1991 The average oil API gravity is 35.7 degrees and the average gas/oil ratio
Peak Production (Oil and NGL) (stb/day) 116000 is 220 scf/stb. The highly stratified nature of the reservoir has led to high
Platform(s) 1 Concrete Gravity water cut production over the life of the field, though this is not expected
Number of Wells - Producers 32 to result in loss of ultimate recovery. Gas production from Osprey is
Water Injectors 7
used as fuel on Dunlin A.
Gas injectors
In July 1990 a successful horizontal well was drilled to a total depth
Oil and NGL Export 36" Pipeline to Sullom Voe
via Cormorant of 12770 ft with 2010 ft drilled horizontally. Production rates of 5000
Gas Export Flared stb/day are three times better than would be expected from a
conventional well in this reservoir. As a result, other horizontal wells
have been drilled successfully to exploit oil development in the poorer
quality reservoir intervals. Production began in 1978 and to date
approximately 85 per cent. of the Dunlin and Osprey reserves of 406
MMstb have been produced. Osprey has estimated oil and NGL
reserves of 94 MMstb.
In 1994, there was a seven-week shutdown to permit upgrading of
some platform facilities - the main element of this being the replacement
of part of the living quarters with a new unit incorporating the temporary
safe refuge recommended by the Cullen Report. Platform refurbishment
should be largely complete by the end of 1995.
STRATIGRAPHY AND STRUCTURE

Brent Group (Middle Jurassic) sandstones form the reservoir of the Dunlin field.

UNITED KINGDOM
211/23 211/24
The Brent Group is sibdivided into five formations; Broom, Rannoch, Etive, Ness and 9
4 DUNLIN
8
Tarbert. These are present across most of the field. However, Middle-Upper Jurassic 7 TOP BRENT SAND
erosion of the crestal parts of the Dunlin structure have resulted in the local absence OSPREY

Dunlin
DEPTH STRUCTURE
of the upper part of the Brent Group (Tarbert Formation, upper part of Ness 0 (Contours in feet)
950
Formation). The Brent Group ovelies the Lower Jurassic offshore mudstones of the 3
Dunlin Group and is in turn overlain by offshore mudstones of the Heather 9 30
0
9400
Formation. 9300
0
920 9300
The Dunlin structure is a highly faulted broadly north-south trending fault block. It 9200
2
is defined by north-south trending faults to the east and west and by an east-west
trending fault complex to the south. Minor faults which parallel the trend of these 9000
major faults may lead to some compartmentalisation of the reservoir.

93
00
Erosional limit
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT 00 of Brent Group

94
95

00
95
After the deposition of the offshore marine mudstones of the Lower Jurassic

00
A
Dunlin Group, the Brent Group represents the progradation and abandonment of a DUNLIN
1
major shallow marine and deltaic complex.

0
970
The Broom Formation at the base of the Brent Group consists of medium to very
coarse grained, pebbly sandstones which are wavy laminated and/or cross-bedded. 8700
These may either represent stacked storm generated sublittoral sheet sandstones or

94
0
else their nearshore equivalent.

960

00
3
Overlying these is the coarsening-upward, prograditional sequence of the

93
00
Rannoch Formation. In the lower part thin, wavy laminated, burrowed mudstones are
interbedded with wave and current rippled, burrowed, very fine grained, argillaceous
sandstones. These are overlain by very fine to fine grained, variably argillaceous and

9500
micaceous, planar laminated and cross-bedded sandstones. These sediments form 5
a progradational shoreface sequence, from offshore/transition zone at the base to

9200
Onset of Brent Group
middle shoreface at the top. erosion
The Etive Formation, which overlies the Rannoch Formation, consists of less 2

micaceous and argillaceous, generally fine to medium grained, locally coarse 0 2 km

grained sandstones. Locally the base of the Etive Formation is marked by a pebbly,
6
erosive base overlain by fining upward sequences. Generally, the Etive Formation
consists of planar laminated and/or cross-bedded sequences.
The Etive Formation represents the upper shoreface to backshore part of the
(After Baube, 1983)
progradational shoreface. Locally tidal inlet or tidally influenced distributaries may
have been active. Continued progradation resulted in the shallow marine sediments
being overlain by the delta plain sediments of the Ness Formation. Lagoon/bay to medium grained, locally coarse grained and pebbly, variably argillaceous and
shoreface, distributary channel, mouth bar and crevasse splay sandstones are micaceous, planar laminated and/or cross bedded sandstones. These are
interbedded with lagoon/bay floodplain mudstones and coals. interpreted as shallow marine sandstones deposited during the transgression and
The uppermost part of the Brent Group (the Tarbert Formation) consists of fine abandonment of the Brent delta.

INTERPRETATIVE STRUCTURAL CROSS SECTION


OSPREY FIELD DUNLIN FIELD
211/23-7 211/24-2 211/23-1 211/23-2 211/23-6
Feet
N S
4000
TERTIARY
?
6000

UPPER CRETACEOUS
LOWER CRETACEOUS Brent Group UPPER JURASSIC
8000

10000
Dunlin Group
Statfjord Formation Cormorant Formation
12000

0 1 2 3 km

REPRESENTATIVE WELL SECTION - 211/24-2


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


211/24-2
Delta plain sediments comprising fluvial channel,
crevasse splay and mouth-bar or lagoon
shoreface sandstones interbedded with
lagoon/bay mudstones and coals.

Geometry
NESS FM.
9350

Ribbon like to lobate or sheetlike


sandstones with laterally persistent
mudstones.

and K
Generally moderate to good.
MIDDLE JURASSIC

Upper shoreface, foreshore and possibly


BRENT GROUP

backshore sandstones.

Geometry
ETIVE FM.

Laterally extensive sheetlike sandbody.


9450

and K
generally good, K good to very good.

M
Middle shoreface sandstones.
RANNOCH FM.

Geometry
Laterally extensive sheetlike sandbody.
M Py
M
and K
Py
9550

M Py Both and K generally good, locally


poor where calcite cemented.
Py
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
211/24-3 F
F 10000

Dunlin 100
1000

211/23-7
211/24-2 200 feet
N 211/23-1 211/23-2
211/23-3 Heather Fm. S
F
211/23-6 100
Tarbert Fm. 1

Ness Formation

PERMEABILITY (md.)
10
Etive
Formation

MIDDLE JURASSIC
Brent Group
Rannoch
Formation 1

Broom Fm. 0.1

2 3

1. Humber Group
2. Dunlin Group
3. Lower Jurassic 0.01
0 10 20 30

POROSITY (per cent.)

The Broom Formation consists of a sheetlike development which varies from 20 feet to The Broom Formation is characterised by good porosity (average
70 feet in thickness. Locally concretionary calcite cements are developed, consequently net c.25 per cent.) and generally good permeability (generally >500 md).
to gross ratios range between 0 .75 and 1.0. Overlying this is the Rannoch Formation. Locally, porosity and permeability are severely reduced by
Thickness ranges between 140 feet and 220 feet. The relatively low net gross ratios concretionary calcite cements.
(generally about 0.6) reflect the very argillaceous nature of the lower part of the formation. The Rannoch Formation is characterised by upwards increasing
The Etive Formation is a sheetlike sandbody which ranges between 80 feet and 110 feet porosity and permeability trends. In the lower part of the formation,
in thickness. The high net to gross ratios (up to 0.95) reflect the good reservoir quality of the sandstones generally display poor to moderate porosity (<20 per
unit. Within the heterolithic Ness Formation there are a variety of sand bodies. The lower cent.) and permeability (<100 md). Thin mudstones form vertical
part of the Ness Formation commonly has relatively thick (30 to 40 feet), sheetlike mouth permeability barriers.
bar sandstones. The middle and upper parts of the Ness Formation are typified by thinner The upper part of the Rannoch Formation displays moderate to
sand bodies which are interbedded with laterally extensive mudstones and coals. The net good porosity (averages range between 20 and 33 per cent.) and
to gross ratio (0.25 to 0.5) reflect the heterolithic nature of the Ness Formation. permeability (100 to 500 md).
The Tarbert Formation ranges between zero and 75 feet in thickness. Thickness The Etive Formation has good to very good average porosities
variation largely reflects post-Brent Group erosion. The Tarbert Formation generally fines (25 to 30 per cent.) and permeabilities (generally >1000 md). This
upward, being coarser and less argillaceous in the lower part. The upper part of the reflects the relatively coarse, clean nature of the unit.
formation is commonly very fine to fine grained and argillaceous. As a result net to gross Within the Ness Formation both porosity and permeability are
ratios range between about 0.75 and 0.9. variable, largely reflecting primary textural characteristics (grain size,
detrital clay content).
Thicker sandstones (>10 feet) commonly display good to very
good porosity (25 to 30 per cent.) and permeability (>1000 md).
Porosities and permeabilities in the Tarbert Formation range
Fluid Properties between good and excellent (20 to 30 per cent.; 250 md to 5000 md),
largely reflecting primary textural variations. Locally, concretionary
The Dunlin and Osprey fields contain a low shrinkage undersaturated black oil. Fluid calcite cements occlude virtually all porosity and severely reduce
properties vary between Dunlin and Osprey and between different fault blocks in the Dunlin permeability.
field. Oil gravity is between 31 and 36 degrees API and GOR varies between 100 and 240
scf/stb. RESERVOIR PRESSURE

Data include separate pressure regimes in the Dunlin and Osprey


200 1.15 1.6
Rs reservoirs. Based on a water pressure gradient to surface of 0.451
psi/ft these reservoirs are overpressured by over 1900 psi. The
reservoir pressure is 6020 psig at 9000 feet TVDSS in the Dunlin
150 1.4
B0 reservoir and 5900 psig at 8800 feet TVDSS in the Osprey reservoir.
1.1
B0 (rb/stb)
Rs (scf/stb)

0 (cp)

100 1.2
8700
1.05
50 0 1.0
Osprey
8800

@ 210 F 0.35 psi/ft


0 1.0 0.8
0 2000 4000 6000 8000 8900
OWC @ 8910 ft TVDSS
DEPTH (feet TVDSS)

PRESSURE (psig) 0.451 psi/ft


Dunlin
9000

CONTROLS ON RECOVERY 0.35 psi/ft


9100

Recovery in the Dunlin field is expected to be good, between 40 and 45 per cent. The
OWC @ 9165 ft TVDSS
good recovery is due to the following:-
9200 0.451 psi/ft
average permeabilities are generally good, although wide variations exist within zones
favourable water oil mobility ratio ensuring good displacement under water flooding.
9300
5850 5900 5950 6000 6050 6100 6150
As with similar Brent type reservoirs, wells will have to produce to high water cuts to
ensure that low permeability strata are swept. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Water Depth 495

UNITED KINGDOM
(feet)
Platform Type concrete gravity

Dunlin
Function drilling/production/
accommodation/storage

Topsides weight 15886


(tonnes)
Total Weight 252001
(tonnes)

Accommodation 164

Well slots 48
Wells 39

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 150000


(bbl/day)

Oil Export 24" x 35 km pipeline to Cormorant


A platform, onwards to Sullom Voe
Gas Export flared

(Reproduced by permission of Shell U.K. Ltd)


PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED

125

FULL FIELD LIFE ECONOMIC INDICATORS

Average Annual Daily Liquid Rate (Mbbl/day)


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
100
Pre Corporation Tax

Net Present Value 1,652.20 959.84 712.64 588.76 488.46 370.88 234.91
Net Present Value (Deflated) 2,826.79 1,622.46 1,165.13 929.82 736.37 506.64 238.28
Profit/Inv Ratio 2.50 2.05 1.79 1.63 1.48 1.27 0.96 75
Profit/Inv Ratio (Deflated) 1.46 1.05 0.85 0.73 0.62 0.47 0.25
NPV/Unit Oil Equiv. 4.07 4.29 4.30 4.27 4.21 4.07 3.71
NPV/Unit Oil Equiv. (Deflated) 3.93 3.68 3.41 3.19 2.93 2.50 1.63

Payback Year 1979


50
Nominal Rate Of Return % 45.16
Real Rate Of Return % 27.56

Post Corporation Tax

Net Present Value 899.95 525.40 389.51 320.70 264.48 197.83 119.37 25
Net Present Value (Deflated) 1,516.81 829.58 563.90 425.78 311.39 174.47 13.05
Profit/Inv Ratio 1.36 1.12 0.98 0.89 0.80 0.68 0.49
Profit/Inv Ratio (Deflated) 0.78 0.54 0.41 0.33 0.26 0.16 0.01
NPV/Unit Oil Equiv. 2.22 2.35 2.35 2.33 2.28 2.17 1.89
NPV/Unit Oil Equiv. (Deflated) 2.11 1.88 1.65 1.46 1.24 0.86 0.09 0
1975 1980 1985 1990 1995 2000 2005 2010
Nominal Rate Of Return % 37.05
Real Rate Of Return % 20.52
Year
Earnings Data

Gross Revenue 5,899.45 3,307.27 2,461.97 2,053.50 1,729.88 1,358.28 937.84


Royalty 596.07 337.78 250.55 208.04 174.28 135.52 91.92
Petroleum Revenue Tax 1,778.52 995.43 727.16 596.61 493.38 375.86 245.82
Corporation Tax 752.26 434.44 323.13 268.07 223.98 173.05 115.54 CASH FLOW REPORT
Capital Expenditure 660.00 468.92 397.55 360.51 329.54 291.55 243.73
Operating Costs 1,025.37 418.84 273.24 212.56 168.92 123.54 78.13 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Gross Revenue (Deflated) 10,464.06 6,443.50 4,984.68 4,244.96 3,640.49 2,924.14 2,081.00 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Royalty (Deflated) 1,046.70 636.88 487.27 411.62 350.06 277.58 193.32
Petroleum Revenue Tax (Deflated) 2,963.37 1,739.11 1,297.76 1,077.43 900.20 694.79 462.25 1974 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -305.9 0.0 0.0 0.0
Corporation Tax (Deflated) 1,309.97 792.88 601.23 504.04 424.98 332.17 225.22 1975 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -1,309.1 0.0 0.0 0.0
Capital Expenditure (Deflated) 1,940.50 1,538.71 1,368.06 1,273.29 1,190.22 1,082.98 938.82 1976 0.0 0.0 0.0 90.0 0.0 0.0 0.0 -90.0 -1,755.0 0.0 0.0 0.0
Operating Costs (Deflated) 1,294.69 641.20 454.83 370.04 305.39 234.01 157.05 1977 0.0 0.0 0.0 100.0 0.0 0.0 0.0 -100.0 -1,549.5 0.0 0.0 0.0
1978 37.1 0.0 10.0 85.0 0.0 0.0 0.0 -57.9 -715.4 14.0 0.0 0.0
1979 414.2 20.3 21.0 50.0 0.0 0.0 20.3 322.8 3,410.8 116.1 0.0 0.0
1980 583.2 55.7 26.0 20.0 0.0 0.0 55.7 481.5 4,155.6 106.1 0.0 0.0
1981 639.7 69.4 32.0 20.0 246.8 182.5 590.0 -2.3 -15.5 95.1 0.0 0.0
1982 566.4 68.0 37.0 20.0 212.4 93.6 461.3 48.1 269.7 82.1 0.0 0.0
1983 536.3 61.1 43.0 20.0 293.3 84.6 447.6 25.7 123.0 74.1 0.0 0.0
1984 540.0 59.1 49.0 20.0 248.9 79.5 387.5 83.5 353.8 65.0 0.0 0.0
1985 409.3 51.0 52.0 15.0 182.3 77.9 311.2 31.1 116.2 53.1 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1986 151.0 28.0 48.0 15.0 55.3 56.9 140.1 -52.1 -169.9 42.1 0.0 0.0
1987 213.0 17.4 47.0 15.0 59.6 19.3 96.4 54.6 159.3 52.1 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1988 157.4 18.5 38.0 10.0 51.1 24.4 94.0 15.4 40.8 51.0 0.0 0.0
1989 157.2 15.4 38.0 10.0 41.7 16.8 73.8 35.3 80.9 39.0 0.0 0.0
Pre Corporation Tax 1990 167.6 16.3 36.0 0.0 48.4 19.1 83.7 47.9 94.2 35.0 0.0 0.0
1991 107.9 14.1 20.0 0.0 74.0 13.6 101.8 -13.9 -23.1 26.0 0.0 0.0
Net Present Value 169.28 145.96 133.40 125.77 118.74 109.27 96.02 1992 111.1 11.4 20.0 10.0 53.1 4.7 69.2 11.9 17.3 28.1 0.0 0.0
Net Present Value (Deflated) 153.31 131.20 119.92 113.19 107.05 98.83 87.41 1993 96.6 10.6 20.0 60.0 14.1 7.0 31.6 -15.0 -19.5 23.5 0.0 0.0
NPV/Unit Oil Equiv. 2.75 3.06 3.19 3.27 3.33 3.40 3.49 1994 81.3 8.2 20.0 40.0 6.0 14.2 28.4 -7.0 -8.3 21.7 0.0 0.0
1995 78.2 6.8 20.0 0.0 22.3 7.4 36.5 21.7 23.2 20.4 0.0 0.0
Post Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
5,047.7 531.2 577.0 660.0 1,609.2 701.4 3,029.2 781.5 2,973.5 344.7 0.0 0.0
Net Present Value 118.46 107.38 100.18 95.53 91.08 84.89 75.87
Net Present Value (Deflated) 111.90 99.25 92.14 87.74 83.63 78.01 69.97 1996 75.6 6.6 20.0 0.0 24.7 2.4 33.7 21.8 21.0 19.0 0.0 0.0
NPV/Unit Oil Equiv. 1.93 2.25 2.40 2.48 2.55 2.64 2.76 1997 78.6 6.8 20.8 0.0 25.2 3.5 35.5 22.3 19.1 18.4 0.0 0.0
1998 75.2 6.9 21.6 0.0 23.8 4.9 35.6 18.0 13.7 16.9 0.0 0.0
Earnings Data 1999 72.2 6.5 22.5 0.0 22.0 5.2 33.6 16.0 10.9 15.6 0.0 0.0
2000 69.7 6.2 23.4 0.0 20.4 5.2 31.8 14.5 8.8 14.5 0.0 0.0
Gross Revenue 851.75 642.17 553.96 506.00 464.88 413.45 347.98 2001 67.0 6.0 24.4 0.0 18.6 5.2 29.9 12.7 6.9 13.4 0.0 0.0
Royalty 64.82 51.94 45.93 42.50 39.46 35.53 30.32 2002 64.1 6.1 25.4 0.0 16.7 4.9 27.7 11.0 5.3 12.3 0.0 0.0
Petroleum Revenue Tax 169.28 147.85 135.67 128.13 121.12 111.58 98.11 2003 61.2 5.9 26.4 0.0 14.9 4.6 25.3 9.5 4.0 11.3 0.0 0.0
Corporation Tax 50.82 38.59 33.22 30.24 27.66 24.38 20.15 2004 59.1 5.5 27.4 0.0 13.4 4.2 23.1 8.5 3.2 10.5 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 56.7 5.2 27.1 0.0 12.4 3.9 21.5 8.1 2.7 9.7 0.0 0.0
Operating Costs 448.37 296.42 238.97 209.60 185.56 157.07 123.53 2006 52.3 4.8 26.9 0.0 10.8 3.7 19.3 6.1 1.8 8.6 0.0 0.0
2007 45.0 4.1 26.4 0.0 8.0 3.2 15.3 3.3 0.9 7.1 0.0 0.0
Gross Revenue (Deflated) 689.25 533.97 467.38 430.78 399.12 359.12 307.38 2008 40.2 3.4 26.2 0.0 5.8 2.3 11.5 2.5 0.6 6.1 0.0 0.0
Royalty (Deflated) 55.21 44.64 39.74 36.95 34.47 31.27 26.99 2009 34.9 2.7 25.9 0.0 3.7 1.7 8.1 0.9 0.2 5.1 0.0 0.0
Petroleum Revenue Tax (Deflated) 155.02 133.59 122.34 115.56 109.35 100.98 89.30 Remain
Corporation Tax (Deflated) 41.41 31.96 27.78 25.45 23.41 20.82 17.44 2010 0.0 -11.8 103.9 0.0 -51.3 -3.9 -67.0 -36.9 -6.9 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 325.71 224.53 185.38 165.08 148.26 128.03 103.68 Total 851.7 64.8 448.4 0.0 169.3 50.8 284.9 118.5 92.1 61.5 0.0 0.0

These cash flows include Dunlin field only


210/20a Amoco 211/16b Mobil 211/17a SUMMARY
1 2 Total
211/16a Shell The Eider and Tern fields are located in Quadrants 211 and 210
3,3A 3
respectively, some 150 km northeast of the Shetland Islands in the
North Viking Graben area of the North Sea. Eider was discovered in
5 1976 by Well 211/16-2 and Tern in 1975 by Well 210/25-1.
0 4 km
Both fields export their oil to North Cormorant from where it is piped
6 to Sullom Voe via the Brent pipeline system. For development, Eider
EIDER uses an unmanned production facility remotely controlled from North
Cormorant. Tern is developed by means of a conventional steel
2 platform.
S.W. EIDER Production from Eider started in November 1988 and production
1 4 from Tern in June 1989. The South West accumulation (2 km south west
210/20b Rel.
of the Eider platform) may be delevoped in the future but there are no
210/25c Rel. 211/21a Shell 211/22a
11 Deminex firm plans at present.
The current interests in both fields in per cent. are:-
4
3 RD/Shell UK Exploration and Production Ltd * 50.00
8
7 Esso Exploration and Production Ltd 50.00

1 A 210/ 211/21b Shell operator *


TERN 25e 15
4
Rel.
5 N. CORMORANT
3

2
N
6,6A 6,6A CENTRAL
210/25a Shell 210/25d Rel. 5 CORMORANT

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties TERN EIDER The Eider and Tern fields produce from the Middle Jurassic Brent
Group sands of the North Viking Graben. The Cormorant field to the
Oil Gravity (API) 35 34 south also produces from the Middle Jurassic Brent and is of similar
Gas/Oil Ratio (scf/stb) 177 195 quality. To the east in Blocks 211/18 and 211/23 the Thistle, Don,
Bubble Point Pressure, Pb (psig) 963 880 Deveron and Dunlin fields all produce from the Middle Jurassic. The
Formation Volume Factor at Pi (rb/stb) 1.1 1.1 Hudson field is west of Tern in Block 210/24 and produces oil from
Oil Compressibility (vol/vol/psi) Jurassic Brent Group sands.
Original Reservoir Pressure, Pi (psig) 3656 5205
At Datum Depth of (ft TVDSS) 8000 8750
Reservoir Temperature (F) 200 225

Rock Properties

Rock Type Sandstone -------------------------


---------------------------
Stratigraphic Unit -------------------------- Brent
Group -------------------------
Geological Age ----------------------- Middle Jurassic ----------------------
Porosity Range (per cent.) 21-26/14-24 20-28/13-24
Permeability Range (md) 100-1000/1-2000 1-600/0.1-600
Connate Water Saturation (per cent.) 33/17-45 19-26/45-67
Oil Water Contact (ft TVDSS) 8064-8260 9033
Depth to Top of Structure (ft TVDSS) 7780 8600

Reserves

Total Oil Reserves (MMstb) 250 100


Est. Oil Production to 31.12.95 (MMstb) 143 83
Remaining Oil Reserves (MMstb) 107 17
FIELD DESCRIPTION
Production
Both Eider and Tern are low relief tilted fault block structures. The
Water depth (feet) 548 517 reservoirs in both fields occur in the Middle Jurassic Brent Group,
Production Start Date June 1989 November 1988 averaging 200 feet in thickness. Porosities and permeabilities are
Peak Production (Oil) (stb/day) 74000 41000 moderate to good.
The reservoirs contain undersaturated oil. Viscosity is moderately
Platform(s) 1 steel 1 steel
low and gas oil ratios vary between 170 and 200 scf/stb. This yields
Number of Wells - Producers 12 7
reasonably favourable waterflood conditions.
Water injectors 10 7
Gas lift is available on Tern with gas being imported from the FLAGS
Gas injectors
system via North Cormorant. Gas and water injection have been used
Oil and NGL Export Pipeline to Sullom Voe Pipeline to Sullom Voe
on Tern from the start of production. Water injection on Eider
via the North Cormorant via the North commenced in 1989 with water imported from Tern. Produced gas from
Platform Cormorant Platform Eider is only used for power generation.
The Hudson field is a small oil accumulation 11 km to the west of
Gas Export 8" gasline to North Cormorant Tern. It has been developed in two phases. Phase 1 involved 2 subsea
and entry into the western leg of wells tied into the floating production vessel Petrojarl with first oil
the FLAGS system achieved in July 1993. From January 1995, Phase 2 of the development
has involved 6 subsea wells tied into the Tern facilities. Tern provides
crude stabilisation, gas lift and water injection. All production from this
phase of development is being processed using new facilities installed
on Tern and is then exported via the Brent system to Sullom Voe.
STRATIGRAPHY AND STRUCTURE

EIDER AND TERN The reservoir in these fields is formed by Brent Group (Middle Jurassic)

UNITED KINGDOM
94

Eider & Tern


sandstones. These overlie the offshore marine mudstones of the Dunlin

00
TOP BRENT

92
Group (Lower Jurassic) and are in turn overlain by shallow marine

00
OWC 9033 DEPTH STRUCTURE
5
mudstones of the Heather Formation. The Brent Group is sub-divided into
0 2 km
five formations, which are, from top to bottom:

9200

930
6 (Contours in feet TVDSS) - Tarbert Formation

0
- Ness Formation

910
- Etive Formation

0
8800
- Rannoch Formation
2
EIDER - Broom Formation
A Locally the Tarbert Formation is absent, due to Middle Jurassic erosion
associated with the early rotation of fault blocks.

0
890

0
4

920
211/16a
211/21a 0

0
00

930
10 SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
3
The Brent Group represents the deposits of a northward prograding
deltaic and shallow marine complex and, in the upper part, delta

00
85
00 abandonment and marine transgression. The Broom Formation at the base
78
210/25b comprises stacked sublittoral sheet sands which mark the onset of delta
210/25a 210/25c progradation shoreface sequence of offshore mudstones to lower/middle
1 A shoreface sandstones. The overlying Etive Formation comprises the upper
part of the progradational shoreface sequence, consisting of upper
shoreface, foreshore and backshore sandstones which, at least locally (eg.
00
95 8100 Well 211/16-2) overlie tidal channel sandstones.

0
5

00
These shallow marine sandstones are succeeded by the delta plain

10
0
90
00 50
8200 10 sediments of the Ness Formation. This unit comprises fluvial channel, mouth
bar and crevasse splay sandstones which are interbedded with lagoon/bay
00 and floodplain mudstones. The uppermost part of the Brent Group, the
TERN 83 2
85 ODT 8233
Tarbert Formation, marks the onset of marine transgression and consists of
00
shallow marine sandstones.
87
00 WUT 8284

(Modified after Wensrich MD, Eastwood KM, van Panhuys CD, Smart JM, 1991
and van Panhuys-Sigler M, Baumann A, Holland TC, 1991)

SCHEMATIC WELL CORRELATION - EIDER FIELD SCHEMATIC WELL CORRELATION - TERN FIELD
211/16-1 211/16-4 211/16-2 210/25-2 210/25-1 210/25-3
Feet SW NE S N Feet

7500 7000

UPPER CRETACEOUS LOWER CRETACEOUS


8000 LOWER CRETACEOUS UPPER CRETACEOUS 7500

Humber Group
8500 8000
Humber Group
Brent Group
9000 Dunlin Group 8500
Brent Group

Statfjord Formation TRIASSIC


9500 Statfjord Formation Dunlin Group 9000
TRIASSIC
0 1 km 0 1 km
10000

REPRESENTATIVE WELL SECTION - 211/16-4


DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
0 150 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
211/16-4 40 0 0.1 10000 5 25 45 -15

Offshore mudstones. 1 2
MIDDLE JURASSIC

8950

Stacked fluvial distributary channel


BRENT GROUP
TARBERT FM.

sandstones.
Geometry
Sandstones stacked into a sheetlike
sandbody.
and K
Expected moderate due to compaction
9000

and diagenesis.

1. HUMBER GROUP
2. HEATHER FORMATION

Delta plain sediments. 3


Upper shoreface sandstones.
4
9100

Geometry
Sheetlike sandbody.
MIDDLE JURASSIC

M M
BRENT GROUP

and K
Expected good.
RANNOCH FM.

Lower to middle shoreface sandstones


and offshore mudstones.
9150

Geometry
Thick, sheetlike sandbody.
M
and K
Expected poor to locally moderate,
reflecting detrital clay, mica and local
calcite cement.
M

3. NESS FORMATION
4. ETIVE FORMATION
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
TERN EIDER
SW NE 10000

Eider & Tern


210/25-2 210/25-1 210/25-3 211/16-1 211/16-4

1 2

3 ?
1000
?

Ness
Middle Jurassic
Brent Group
100

PERMEABILITY (md.)
4 ? ?

TRIASSIC
10

8 7
0
1

F 1. Humber Group
F 50
2. Heather Formation
3.Tarbert Formation
4. Etive Formation
The Broom Formation consists of about 20 5. Rannoch Formation
100 feet 0.1
feet of fine to coarse grained, locally pebbly 6. Broom Formation
sandstones. It forms a sheetlike sandbody 7. Dunlin Group
8. Lower Jurassic
which is succeeded by the basal Rannoch
Shale. Eider
The Rannoch Formation ranges from about 50 to 100 feet in thickness. It typically Tern
consists of very fine to fine grained, variably argillaceous and micaceous sandstones which 0.01
0 10 20 30
coarsen upwards from a basal offshore mudstone.
The Etive Formation consists of a sheetlike sandbody which ranges from about 10 to 600 POROSITY (per cent.)

feet in thickness. It is composed of fine to coarse grained, relatively clean sandstones.


These are overlain by the heterolithic Ness Formation. This formation ranges between
about 10 and 60 feet in thickness. Within this unit there are a variety of sandbody types. The Although the Broom Formation comprises relatively coarse
most favourable reservoir units consist of major fluvial distributary sandstones which vary sandstones, porosity and permeability are impaired by the
from about 30 to 75 feet in thickness. These are multistorey and multilateral sandbodies development of carbonate cements, probably sourced by the
which have a lenticular to sheetlike geometry. dissolution of skeletal carbonate material. Porosity and permeability
The shallow marine sandstones of the Tarbert Formation form a sheetlike sandbody generally both increase upwards in the Rannoch Formation,
which is locally absent due to erosion. reflecting the overall coarsening upwards trend. However, because
of the fine grain size, the high detrital clay content and the high mica
content of these sandstones, porosity and permeability are generally
FLUID PROPERTIES poor to locally moderate. Carbonate cemented horizons result in
severe local porosity and permeability reduction.
The Eider and Tern fields contain a moderately light oil of low GOR. Viscosity is The coarse, clean, well sorted sandstones of the Etive Formation
moderately low. are expected to have good to excellent porosity and permeability, as
are the major distributary channel sandstones within the Ness
Formation. Other Ness Formation sandstones (crevasse splay,
200 1.14 Eider GOR 1.3 mouth bar) are generally finer grained, more argillaceous and more
Tern GOR micaceous and consequently have reduced porosity and
1.12 permeability. The Tarbert Formation is expected to display poor to
150 Eider B0 moderate porosity and permeability, largely reflecting primary
Tern 0
textural characters. Locally, carbonate cemented horizons reduce
GOR (scf/stb)

1.10
B0 (rb/stb)

Tern B0
porosity and permeability.
0 (cp)

100 1.2

1.08
Eider 0
50
1.06

RESERVOIR PRESSURE
@ ??? F
0 1.04 1.1
0 1000 2000 3000 4000 5000 The Eider field is overpressured by about 1000 psi relative to a
PRESSURE (psig) hydrostatic gradient of 0.45 psi/ft. The depth of the oil water contact
is 9033 feet.
The Tern field is normally pressured with a gradient to surface of
CONTROLS ON RECOVERY 0.45 psi/ft. The depth of the oil water contact is difficult to determine
but is around 8260 feet in the south of the field. It may be as shallow
Eider as 8064 feet in the north of the field.
A good recovery factor of 45 to 50 per cent. is expected in the Lower Brent, with lower
recovery (ca 35 per cent.) in the Upper Brent. 7800
The good recovery factor in the Lower Brent is due to the following:- TERN

0.34 psi/ft
The mobility ratio of about unity.
The moderately good permeability of between 1 and 600 md.
OWC @ 8064 (North) - 8260 (South) ft TVDSS
The moderate residual oil saturations of 28 per cent. leading to a microscopic recovery 8200
factor of about 65 per cent.
DEPTH (feet TVDSS)

The moderate recovery factor in the Upper Brent is due to the lower overall permeability 0.45 psi/ft
and poorer sand continuity compared with the Lower Brent.
8600

Tern
A moderately good recovery factor of some 40 per cent. of oil in place is expected in the
EIDER
Tern field in both Upper and Lower Brent formations. This is due to: 0.37 psi/ft
9000
A water/oil mobility ratio of approximately unity. OWC @ 9033 ft TVDSS

A moderate residual oil saturation leading to a microscopic recovery factor of 60 per


cent. 0.45 psi/ft

A permeability varying between 1 md and 2 Darcies, with 50 per cent. of oil in rock of
permeability less than 50 md. 9400
The low relief of the reservoir, which has a dip angle of only 2 degrees. 3500 4000 4500 5000 5500
The low natural energy of the reservoir. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

EIDER TERN

UNITED KINGDOM
Eider & Tern
Water Depth 517 548
(feet)
Function unmanned,drilling drilling/prod.
& prod. satellite & accom.

Jacket Weight 18650 24000


(tonnes)
Jacket Height 591 738
(feet)
Total Weight 41350 53250
(tonnes)

Accommodation 76 for drilling 179

Well Slots 24 30
Wells producers 7 12
water injectors 7 10

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 53,000 55,000


(bbl/day)
Oil Export 12" x 13 km pipeline to 16" x 13 km pipeline to
N.Cormorant and N.Cormorant and
into the Brent system into the Brent system

Gas Import 8" gas line from North


Cormorant and entry
into the western leg
of the FLAGS system

(A Shell Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 125

Net Present Value 1,835.51 982.40 667.98 511.81 387.64 246.88 95.30
Net Present Value (Deflated) 1,712.28 849.83 535.35 380.31 257.90 120.59 -23.97

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio 2.21 1.46 1.12 0.92 0.75 0.53 0.24
Profit/Inv Ratio (Deflated) 1.41 0.85 0.60 0.46 0.33 0.17 -0.04 100
NPV/Unit Oil Equiv. 5.25 4.72 4.28 3.93 3.55 2.90 1.66
NPV/Unit Oil Equiv. (Deflated) 4.62 3.76 3.12 2.64 2.11 1.26 -0.36

Payback Year 1992


Nominal Rate Of Return % 25.62 75
Real Rate Of Return % 18.94

Post Corporation Tax

Net Present Value 1,200.66 631.76 417.07 309.42 223.39 125.50 20.02 50
Net Present Value (Deflated) 1,081.99 497.55 281.65 174.86 90.55 -3.74 -101.68
Profit/Inv Ratio 1.45 0.94 0.70 0.56 0.43 0.27 0.05
Profit/Inv Ratio (Deflated) 0.89 0.50 0.32 0.21 0.12 -0.01 -0.17
NPV/Unit Oil Equiv. 3.43 3.04 2.67 2.38 2.04 1.48 0.35
NPV/Unit Oil Equiv. (Deflated) 2.92 2.20 1.64 1.21 0.74 -0.04 -1.54
25
Nominal Rate Of Return % 21.37 Eider only
Real Rate Of Return % 14.86

Earnings Data
0
Gross Revenue 4,324.39 2,524.86 1,879.36 1,559.24 1,303.25 1,008.60 678.06 1985 1990 1995 2000 2005 2010
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 409.80 228.17 163.20 131.35 106.22 77.92 47.49 Year
Corporation Tax 634.85 350.64 250.92 202.39 164.25 121.38 75.28
Capital Expenditure 830.00 673.27 598.86 555.62 516.69 465.24 394.49
Operating Costs 1,249.08 641.01 449.32 360.47 292.69 218.56 140.78

Gross Revenue (Deflated) 4,520.66 2,712.77 2,048.77 1,715.09 1,445.64 1,131.99 774.34
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 412.35 230.53 165.27 133.21 107.88 79.30 48.49
Corporation Tax (Deflated) 630.30 352.28 253.70 205.45 167.36 124.33 77.70
Capital Expenditure (Deflated) 1,216.37 994.45 888.12 826.02 769.94 695.51 592.58
Operating Costs (Deflated) 1,179.67 637.96 460.04 375.55 309.92 236.60 157.24

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
ECONOMIC INDICATORS FROM 1/1/1996
1984 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -42.4 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1985 0.0 0.0 0.0 40.0 0.0 0.0 0.0 -40.0 -149.3 0.0 0.0 0.0
1986 0.0 0.0 0.0 110.0 0.0 0.0 0.0 -110.0 -358.7 0.0 0.0 0.0
Pre Corporation Tax 1987 0.0 0.0 0.0 225.0 0.0 0.0 0.0 -225.0 -656.7 0.0 0.0 0.0
1988 15.5 0.0 7.0 215.0 0.0 0.0 0.0 -206.5 -545.6 5.0 0.0 0.0
Net Present Value 750.86 696.78 664.57 643.81 623.77 595.25 551.99 1989 229.5 0.0 47.0 135.0 0.0 0.0 0.0 47.5 108.8 56.6 0.0 0.0
Net Present Value (Deflated) 721.70 664.95 632.93 612.70 593.41 566.25 525.53 1990 361.4 0.0 70.0 45.0 0.0 0.0 0.0 246.3 484.8 75.0 0.0 0.0
NPV/Unit Oil Equiv. 6.03 6.46 6.66 6.77 6.86 6.98 7.13 1991 367.3 0.0 72.0 10.0 0.0 0.8 0.8 284.4 473.1 88.0 0.0 0.0
1992 421.9 0.0 71.0 10.0 4.1 72.4 76.5 264.3 384.9 106.0 0.0 0.0
Post Corporation Tax 1993 418.0 0.0 67.0 0.0 42.6 94.1 136.7 214.4 278.5 101.0 0.0 0.0
1994 373.2 0.0 63.0 10.0 78.4 77.7 156.2 144.0 170.5 99.0 0.0 0.0
Net Present Value 431.04 415.63 402.69 393.44 383.98 369.79 347.00 1995 375.2 0.0 63.0 10.0 72.1 70.0 142.1 160.1 171.3 86.7 0.0 35.0
Net Present Value (Deflated) 427.82 405.04 390.04 379.99 370.09 355.67 333.21 Total To Start Of Discounting ( 1/JAN/1996)
NPV/Unit Oil Equiv. 3.46 3.86 4.04 4.14 4.22 4.34 4.48 2,561.9 0.0 460.0 820.0 197.2 315.0 512.3 769.6 319.2 225.3 0.0 12.8

Earnings Data 1996 377.6 0.0 63.0 10.0 88.6 68.5 157.1 147.5 141.9 83.7 0.0 35.0
1997 319.6 0.0 65.5 0.0 68.8 65.3 134.1 120.0 102.8 64.9 0.0 32.0
Gross Revenue 1,762.49 1,508.09 1,387.64 1,317.64 1,254.56 1,170.97 1,055.21 1998 257.2 0.0 67.7 0.0 39.4 56.7 96.1 93.4 71.2 50.3 0.0 24.5
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1999 207.6 0.0 70.1 0.0 14.0 46.7 60.7 76.8 52.1 39.1 0.0 18.8
Petroleum Revenue Tax 212.55 198.49 190.99 186.32 181.91 175.70 166.36 2000 167.1 0.0 72.5 0.0 1.8 38.8 40.6 54.0 32.7 30.3 0.0 14.4
Corporation Tax 319.82 281.15 261.88 250.37 239.79 225.46 204.99 2001 134.7 0.0 75.1 0.0 0.0 28.6 28.6 31.0 16.7 23.5 0.0 11.1
Capital Expenditure 10.00 9.76 9.62 9.53 9.45 9.33 9.13 2002 93.7 0.0 108.4 0.0 0.0 17.7 17.7 -32.5 -15.6 15.4 0.0 8.5
Operating Costs 789.08 603.06 522.46 477.97 439.43 390.69 327.74 2003 75.7 0.0 57.1 0.0 0.0 -8.0 -8.0 26.6 11.3 12.0 0.0 6.5
2004 52.6 0.0 49.4 0.0 0.0 5.5 5.5 -2.2 -0.8 9.3 0.0 0.0
Gross Revenue (Deflated) 1,583.79 1,371.38 1,269.70 1,210.23 1,156.39 1,084.62 984.39 2005 42.4 0.0 41.4 0.0 0.0 0.6 0.6 0.4 0.1 7.2 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2006 34.3 0.0 34.2 0.0 0.0 -0.1 -0.1 0.2 0.1 5.6 0.0 0.0
Petroleum Revenue Tax (Deflated) 205.12 191.89 184.81 180.41 176.24 170.37 161.53 Remain
Corporation Tax (Deflated) 293.88 259.90 242.89 232.71 223.33 210.58 192.32 2007 0.0 0.0 84.7 0.0 0.0 -0.5 -0.5 -84.2 -22.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 10.00 9.76 9.62 9.53 9.45 9.33 9.13
Operating Costs (Deflated) 646.97 504.79 442.34 407.59 377.29 338.67 288.20 Total 1,762.5 0.0 789.1 10.0 212.6 319.8 532.4 431.0 390.0 124.6 0.0 55.0

These cash flows include Eider and Tern fields and Tariff income from Hudson
2/9 2/10c Rel. 3/6a Rel. SUMMARY
1
1
The Emerald field is located in Quadrants 2 and 3 some 110 km due
west of the Shetland Islands in the UK Sector of the North Sea. The field
2
extends over four UK blocks and was discovered in 1978 by Well 2/10a-
5 4 which encountered oil and an overlying gas cap in sandstones of
2/10a 3/6b Amoco Jurassic age.
Chevron
The current interests in the Emerald field in per cent. are:-

8 Midland & Scottish Resources * 98.73


6 Midland & Scottish Group 1.27
4 operator *
EMERALD
2/10b Rel. 7 Development of the field has been achieved by the use of six subsea
2/14 2/15a Neste 1 3/11c Shell producers and 5 injectors tied back to a floating production unit (FPF),
3 the "Emerald Producer", which came into position in 1991. The field
5 came onstream in August 1992 and reached 18,000 b/d peak
production in 1993. All oil is sold to the Finnish State Oil Company,
Neste Oy, and is exported by tanker. Oil production rates have been
2/15b Rel
disappointing and the field is expected to be abandoned in 1996.
2
4
2,2A
3/11b Neste
3/11a Amoco

0 4 km

1
3/11d Rel.

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Emerald field is located on a broad, faulted terrace between the
East Shetland Platform and the East Shetland Basin. The nearest fields
Oil Gravity (API) 24 are the oil producing Heather, Lyell, Ninian and Alwyn fields of the Brent
Gas/Oil Ratio (scf/stb) 220 Group, all of which lie within a 30 km radius to the north and west of
Bubble Point Pressure, Pb (psig) 2195 Emerald. Emerald is one of the most westerly of all the fields in the
Formation Volume Factor at Pi (rb/stb) 1.086 Brent Group dominated region, and is unusual in that production is from
Original Reservoir Pressure, Pi (psig) 2375 a Callovian reservoir, and not the Brent Group.
At Datum Depth of (ft TVDSS) 5300
Reservoir Temperature (F) 145

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Emerald
Geological Age Jurassic
Porosity Range (per cent.) 25-30
Permeability Range (md) 100-1000
Connate Water Saturation (per cent.) 5-30
Gas Oil Contact (ft TVDSS) 5375
Oil Water Contact (ft TVDSS) 5580
Depth to Top of Structure (ft TVDSS) 5250

Reserves

Total Reserves (Oil & NGL) (MMstb) 17.5


Est. Production to 31.12.95 (MMstb) 16.4
Remaining Reserves (Oil & NGL) (MMstb) 1.1 FIELD DESCRIPTION

Production The Emerald field structure, which is of low relief, is bounded to the
east by a major northwest-southeast trending fault and is dip closed
Water depth (feet) 500 elsewhere. Hydrocarbons are found in thin Jurassic, Callovian
Production Start Date August 1992 sandstones at depths of between 5250 and 5580 feet TVDSS overlain
Peak Production (Oil) (stb/day) 18000 by silts and shales of the Heather and Kimmeridge Clay Formations.
Platform(s) Semi-submersible Gross reservoir thickness is in the order of 50 feet and the reservoir
Number of Wells - Producers 7 quality is moderate to good with porosities of between 25 and 30 per
Water injectors 4 cent. and permeabilities of between 100 and 1000 md.
Gas injectors The reservoir contains a saturated black oil of 24 degrees API gravity
and a gas oil ratio of 220 scf/stb. Because of the structural topography
Oil and NGL Export Tanker loaded from FSU
of the field there are two separate gas caps.
Gas Export
A horizontal well drilled into the field in 1989 had double the
productivity of a conventional well in the field. Highly deviated wells
have played a significant role in field development.
The main production mechanism for the Emerald field is water
injection, which has been used from the outset. Abandonment, due to
disappointing oil production rates, was anticipated for early 1995.
However, following the drilling of infill wells, the decline in oil rate has
been less steep and field life is now expected to extend into 1996.
Recovered gas is not being sold but will be used for lift purposes to aid
oil recovery.
650
STRATIGRAPHY AND STRUCTURE
0
6300 The Emerald field is located on the eastern edge of the Transitional Shelf,

UNITED KINGDOM
a broad faulted terrace on the west of the East Shetland Platform. Emerald
comprises one of the rotated fault blocks into which the Transitional Shelf has

00

Emerald
58
560
0 been subdivided. It is bounded to the east by a major northwest-southeast
trending fault. The field is compartmentalised by broadly sub-parallel

61
00
northwest-southeast trending faults and by faults which trend north-south.
00
Because of the structural topography of the field there are two separate gas

59
54

00
caps, one in the northwest and one in the central and eastern part of the field.
4 5700 The basement consists of metamorphosed Devonian Old Red Sandstone
OWC 5580
and Precambrian gneiss. These are overlain by transgressive, shallow

54
0
40

00
5 5300 marine Lower Jurassic calcareous sandstones, conglomerates, mudstones,
siltstones and limestones. These are unconformably overlain by the Emerald
54
5400
00 Sandstone. This unit, which forms the reservoir of the Emerald field, is of

GO

5200
Callovian age. It consists of transgressive and shallow marine sediments

C5
580 7
0 deposited as a sublittoral sandsheet which correspond to the post-Brent

375
5300
2/10a 3/6b Group transgression observed in the East Shetland Basin.
2/15a 3/11b During Oxfordian times continued transgression/subsidence resulted in
1 5200
55 offshore mudstones of the Heather Formation becoming widespread. The
00
550
0 subsequent development of an anoxic basin in the Kimmeridgian resulted in
Kimmeridge Clay deposition, which continued into the Ryazanian. These

56
00
5500 Upper Jurassic formations form a seal to the underlying reservoir.
540
0 Following a phase of Lower Cretaceous fault block rotation which
550
5800
0
3
produced southwestward tilting in the Emerald area, the Shetland Group
(Upper Cretaceous) was deposited. The area remained stable during the

55
5700

00
Late Cretaceous. Uplift of the Scottish mainland and the East Shetland
Platform during the Paleocene resulted in subsidence in the area and tilting

540
5800
to the northeast. The resumption of clastic supply to the area in the Tertiary

0
is represented by a thick development of deltaic and submarine fan type
EMERALD sediments.
TOP EMERALD SANDSTONE
DEPTH STRUCTURE 570
0
0 1 km

(Contours in feet TVDSS)

(Modified after Stewart D M and Faulkner A J G, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION

2/10a-4 2/15-1 3/11b-3 3/11b-4AZ


Feet NW SE

5250

TERTIARY
5350
UPPER CRETACEOUS
Kimmeridge Clay Formation

5450

ation
Form
ther
5550 Hea
ne
dsto
San
rald
Eme

5650

5750

0 2 km
5850
(After Wheatly et al, 1987)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Emerald Sandstone is of shallow marine origin, deposited during a Callovian nearby land mass) whilst the upper part represents a more offshore setting. The
transgression of the Transitional Shelf. Basal conglomerates lie unconformably on base of the upper unit is often marked by a thin and poorly sorted sandstone, this
the basement in all wells. Overlying the conglomerates the Emerald Sandstone often appears as a peak on the gamma ray, due to the presence of heavy minerals.
consists of medium to very fine grained, bioturbated sandstones which contain shell Over the Emerald field area the sandstones retain a constant thickness and
fragments and woody material. The basal part of the Emerald Sandstone is coarser nature. Due to the fining upwards from the Lower to the Upper Sandstone the lower
and cleaner than the upper part, with a low clay content. It is possible that the lower unit is more porous and permeable.
part was deposited in a near-shore environment (the woody fragments suggesting a

2/15-1

REPRESENTATIVE WELL SECTION - 2/15-1


5600 DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
0 150 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15
Offshore mudstones. 1 2
Emerald Sandstone

Shallow marine sandstones deposited


Middle Jurassic

Humber Group

after Callovian transgression.


Geometry
Sheetlike sandbody.
and K
Good to very good in lower part reflecting
5650

coarse, clean nature of sandstone,


probably poorer in upper part.
BASEMENT

1. HUMBER GROUP 2. HEATHER FORMATION


RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
2/10a-4 2/15-1 3/11b-3 3/11b-4Z
10000

Oxfordian-Volgian
1

Humber Gp.
Emerald

Emerald Sandstone Heather Fm.


1000

Humber Gp.
Callovian
Old Red Sandstone 100
(Devonian)

Basement

PERMEABILITY (md.)
?
0

1. Kimmeridge Clay Formation 10

50

100 feet 1

The Emerald Sandstone is a sheetlike sandbody, generally between 40 and 60 feet in 0.1
thickness across the Transitional Shelf. Most of this thickness variation is ascribed to
topography of the underlying basement surface.

0.01
0 10 20 30 40

POROSITY (per cent.)

The lower unit of the Emerald Sandstone, which is coarser and


cleaner, has an average porosity of about 30 per cent., and an
average permeability of about 900 md. The finer grained, more
argillaceous upper unit has an average porosity of about 27 per cent.
with an average permeability of about 160 md.

FLUID PROPERTIES RESERVOIR PRESSURE

The Emerald field contains a saturated black oil of 24 degrees API gravity with Data indicate the presence of a gas cap overlying the black oil.
associated gas caps, and a gas oil ratio of approximately 220 scf/stb. A plot of the fluid Based on a water pressure gradient to surface of 0.45 psi/ft the
properties has been derived from correlations and is shown below. Emerald field is normally pressured with a reservoir pressure of 2375
psig at 5300 feet TVDSS.

300 1.10 12
B0 5200

1.08 10
Rs

200
1.06 8
B0 (rb/stb)
Rs (scf/stb)

0 (cp)

5400
1.04 6
DEPTH (feet TVDSS)

100 0.374 psi/ft

1.02 0 4

@ 145F
0 1.00 2 OWC @ 5580 ft TVDSS
0 1000 2000 3000 4000 5600

PRESSURE (psig)

0.45 psi/ft

5800
2300 2400 2500 2600

INITIAL RESERVOIR PRESSURE (psig)

CONTROLS ON RECOVERY

Recovery in the Emerald field is expected to be low. This is due to the following factors:
the heavy nature of the reservoir fluid and the unfavourable oil water mobility ratio which
will limit recovery under waterflood.
the reservoir is thin and there is significant faulting and structural discontinuity.
permeability increases towards the base of the reservoir, which will tend to increase
under-running of water and promote early water break through in producing wells.
the presence of the gas caps and the shallow relief of the field has led to early gas
breakthrough and excess gas production.
FACILITIES SPECIFICATIONS

Water Depth 492

UNITED KINGDOM
(feet)
Platform Type semi-submersible

Emerald
Function floating production facility
+ accommodation

Topsides weight
(tonnes)
Total Weight
(tonnes)

Accommodation 100

Well slots
Wells 11
-Producers 7
-Injectors 4

PROCESSING AND EXPORT SPECIFICATIONS


(A Midland & Scottish Resources Photograph)

Oil Throughput 55000


(bbl/day)

Oil Export Tanker loaded from FSU

Gas Export

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value -118.95 -108.96 -103.36 -99.79 -96.35 -91.44 -83.88
Net Present Value (Deflated) -156.58 -142.86 -135.26 -130.45 -125.83 -119.27 -109.26
Profit/Inv Ratio -0.60 -0.64 -0.66 -0.67 -0.69 -0.71 -0.73
Profit/Inv Ratio (Deflated) -0.64 -0.68 -0.70 -0.71 -0.73 -0.74 -0.77
NPV/Unit Oil Equiv. -6.79 -8.37 -9.42 -10.16 -10.92 -12.14 -14.34
NPV/Unit Oil Equiv. (Deflated) -8.42 -10.32 -11.58 -12.47 -13.39 -14.85 -17.49

Payback Year 2088


Nominal Rate Of Return % -500.00
PRODUCTION PERFORMANCE
Real Rate Of Return % -500.00 HISTORICAL AND PROJECTED
Post Corporation Tax 20
Net Present Value -118.95 -108.96 -103.36 -99.79 -96.35 -91.44 -83.88
Net Present Value (Deflated) -156.58 -142.86 -135.26 -130.45 -125.83 -119.27 -109.26
Profit/Inv Ratio -0.60 -0.64 -0.66 -0.67 -0.69 -0.71 -0.73
Profit/Inv Ratio (Deflated) -0.64 -0.68 -0.70 -0.71 -0.73 -0.74 -0.77 Average Annual Daily Liquid Rate (Mbbl/day)
NPV/Unit Oil Equiv. -6.79 -8.37 -9.42 -10.16 -10.92 -12.14 -14.34
NPV/Unit Oil Equiv. (Deflated) -8.42 -10.32 -11.58 -12.47 -13.39 -14.85 -17.49 15

Nominal Rate Of Return % -500.00


Real Rate Of Return % -500.00

Earnings Data
10
Gross Revenue 190.45 141.60 119.49 107.03 96.10 82.10 63.83
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Capital Expenditure 199.50 171.13 156.83 148.25 140.33 129.57 114.17
Operating Costs 109.90 79.44 66.02 58.58 52.12 43.97 33.54
5
Gross Revenue (Deflated) 202.33 150.65 127.23 114.02 102.43 87.58 68.17
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Capital Expenditure (Deflated) 243.89 210.14 193.08 182.83 173.36 160.47 141.97
Operating Costs (Deflated) 115.02 83.38 69.40 61.64 54.90 46.38 35.46 0
1991 1992 1993 1994 1995 1996 1997

Year

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value -10.39 -9.66 -9.26 -9.01 -8.76 -8.42 -7.90
Net Present Value (Deflated) -9.99 -9.28 -8.90 -8.66 -8.43 -8.10 -7.60
NPV/Unit Oil Equiv. -9.49 -9.04 -8.79 -8.63 -8.47 -8.25 -7.91
CASH FLOW REPORT
Post Corporation Tax
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Net Present Value -10.39 -9.66 -9.26 -9.01 -8.76 -8.42 -7.90 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Net Present Value (Deflated) -9.99 -9.28 -8.90 -8.66 -8.43 -8.10 -7.60 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
NPV/Unit Oil Equiv. -9.49 -9.04 -8.79 -8.63 -8.47 -8.25 -7.91
1988 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -13.2 0.0 0.0 0.0
Earnings Data 1989 0.0 0.0 0.0 30.0 0.0 0.0 0.0 -30.0 -68.7 0.0 0.0 0.0
1990 0.0 0.0 0.0 35.0 0.0 0.0 0.0 -35.0 -68.9 0.0 0.0 0.0
Gross Revenue 12.01 11.72 11.56 11.45 11.35 11.20 10.96 1991 0.0 0.0 0.0 94.5 0.0 0.0 0.0 -94.5 -157.2 0.0 0.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1992 27.9 0.0 15.0 25.0 0.0 0.0 0.0 -12.1 -17.7 7.0 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1993 74.5 0.0 25.0 10.0 0.0 0.0 0.0 39.5 51.3 18.0 0.0 0.0
Corporation Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1994 45.2 0.0 25.0 0.0 0.0 0.0 0.0 20.2 24.0 12.0 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 30.8 0.0 22.5 0.0 0.0 0.0 0.0 8.3 8.9 8.0 0.0 0.0
Operating Costs 22.40 21.38 20.81 20.46 20.11 19.62 18.87 Total To Start Of Discounting ( 1/JAN/1996)

Gross Revenue (Deflated) 12.01 11.72 11.56 11.45 11.35 11.20 10.96 178.4 0.0 87.5 199.5 0.0 0.0 0.0 -108.6 -241.5 16.4 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1996 12.0 0.0 12.0 0.0 0.0 0.0 0.0 0.0 0.0 3.0 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 0.0 0.0 10.4 0.0 0.0 0.0 0.0 -10.4 -8.9 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 22.00 21.01 20.46 20.11 19.78 19.30 18.56 Total 12.0 0.0 22.4 0.0 0.0 0.0 0.0 -10.4 -8.9 1.1 0.0 0.0

These cash flows include Emerald field only


43/7 43/8b EDC 43/9 EDC 43/10 Arco SUMMARY
Amoco
0 5 km
2
The Esmond gas complex comprising the Esmond, Forbes and
Gordon fields is located in Quadrant 43, approximately 190 km east of
Newcastle in the UK sector of the Southern North Sea. The Gordon field
43/8a Ham. was discovered by Well 43/20-1 in June 1969 encountering gas in
FORBES Lower Triassic, Middle Bunter Sandstone. Subsequently, the Forbes
and Esmond fields were discovered by Wells 43/8-1 and 43/13a-1 in
1
1970 and June 1982 respectively.
3 AW Development of the complex involving four steel platforms began in
43/12b 43/13a Ham. 43/14 Conoco 43/15b Conoco 1983 with first gas in June 1985. Production ceased in 1995.
Rel.
The interests in the Esmond complex in per cent. are:-

Hamilton Oil Corporation* 60.00


43/12a 3 Elf Oil and Gas Ltd 25.00
Lasmo 1 3 ESMOND LASMO 12.50
2
Monument Oil and Gas Ltd 2.50
CP CW 43/15a Hamilton
43/13c Rel. operator *
GORDON
1 4 CAVENDISH 1
43/13b Lasmo NORTHWEST 2
43/17b 43/18a Total 43/19 Lasmo 43/20a Hamilton
Rel. 1
BW
2 1
CAVENDISH
1

43/17a
BG 43/20b Premier

RESERVOIR CHARACTERISTICS LOCAL SETTING

The Esmond Complex produces from Triassic Bunter Sandstones


Fluid Properties ESMOND FORBES GORDON and is located on the southern margin of the Mid North Sea High. They
are the most northerly gas fields in the Southern North Sea. The nearest
Gas Gravity S.G. (air =1) 0.60 0.62 0.62 gas accumulations are the Murdoch and Caister fields to the southwest,
Condensate Gas Ratio (bbl/MMscf) ----------------------- Negligible ------------------------
which both produce from Carboniferous Sandstones. Caister, in
Gas Expansion Factor (vol/vol) 154 180 169 addition, produces from the Bunter Sandstone.
Reservoir Pressure, Pi (psig) 2265 2795 2605 The Hewett fields, located in Quadrant 48 to the south, are the only
other reservoirs in the UK sector producing from the Bunter Sandstone.
at Datum Depth of (ft TVDSS) 4600 5700 5300
All the other fields in vicinity of the Esmond Complex produce from
Reservoir Temperature (F) 135 146 142
Rotliegendes reservoirs.
Rock Properties

Rock Type ---------------------- Sandstone ------------------------


Formation ---------- Middle Bunter Formation ------------
Geological Age ------------------- Lower Triassic --------------------
Porosity Range (per cent.) 12-24 15-25 14-21
Permeability Range (md) 10-500
Connate Water Saturation (per cent.) -------------------------- 12-25 ----------------------------
Gas Water Contact (ft TVDSS) 4783 5770 5400
Depth to Top of Structure (ft TVDSS) 4450 5600 5150

Reserves
Gas Initially in Place (Bcf) ---------------------------- 643 ------------------------------
Total Gas Reserves (Bcf) 326 46 137
Est. Gas Production to 31.12.95 (Bcf) 326 46 137
Remaining Gas Reserves (Bcf) 0 0 0 FIELD DESCRIPTION

Production All three fields in the Esmond complex are salt induced domal
structures with four way dip closure. The reservoirs occur within
Water depth (feet) 100 80 55 sandstones of the Lower Triassic, Middle Bunter Sandstone which
Production Start Date June 1985 averages 400 to 500 feet in thickness. Reservoir sandstones form
Peak Gas Production (yrly average) (MMscf/day) --------------------- 215 in 1987 ----------------------- laterally continuous sheetlike units. The desert-lake mudstones present
Platform(s) 2 steel 1 steel 1 steel towards the top of the reservoir section form the only widespread barrier
jackets jacket jacket to vertical communication. Porosities and permeabilities are generally
Number of Wells 7 3 3 moderate to good, but reservoir quality is adversely affected by the
Gas Export Pipeline to Bacton shore terminal presence of halite cement.
The reservoirs contain a very dry gas with only small amounts of
condensate recovered during testing of the exploration wells. All three
fields contain high levels of nitrogen of between 8 and 15 mol. per cent.
with no reported hydrogen sulphide.
Production began in June 1985 and averaged 213 MMscf/day until
1991 when production went into decline.
The Forbes field was significantly affected by water influx. This led to
a reduction in the reserves attributed to the complex.
Production from Forbes ceased in February 1993 and from Esmond
and Gordon at the end of March 1995. The platforms are likely to be
decommissioned and removed in 1996. The pipeline will remain in
place. Gas from the Trent and Tyne fields will be evacuated through the
pipeline, which has been renamed EAGLES (East Anglia Gas and
Liquids Evacuation System).
43/8a STRATIGRAPHY AND STRUCTURE

Esmond Complex
The Esmond complex fields are relatively simple salt induced, domal

UNITED KINGDOM
ESMOND COMPLEX FORBES FIELD anticlines with no faulting apparent at top reservoir level. The local
TOP STRUCTURE stratigraphy is summarised below.
5900
(Contours in feet) The Middle Bunter Sandstone reservoir is some 400 to 500 feet thick and
5800
is sealed by the Rt Halite. The presence of gas in the Esmond complex
GWC
structures was indicated by a bright spot on the seismic sections which
delineated the extent of the gas-bearing sandstones.
43/12 43/13a 5700

3 1
GWC

2
1
3
4500 43/13a 43/13b

4600
4700
4800
2
UPPER
ESMOND FIELD CRETACEOUS
GEOSEISMIC CROSS-SECTION ACROSS
43/13b
3
THE ESMOND FIELD

43/15b 44/11 LOWER 43/13a-1


CRETACEOUS

43/15a JURASSIC W E
4
IC TWT
JURASS (secs)
KEUPER
TRIASSIC
1.0
helkalk
MUSC 5 Intra-Musc

TRIASSIC
1 nter
RT Middle Bu

MIDDLE
1.5
BUNTER 6
43/20a 5 2 44/16
G 30
55 WC0 1 Zechstein Group
00 LOWER
BUNTER
GORDON FIELD
7 2.0
PERMIAN Rotliegendes Group
(After Bifani ,1986) (Scale in 1000' s feet)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Bunter Sandstone in the Southern North Sea area is generally recognised as Sediment was most probably sourced from the south and west, off the Pennine
having been deposited by fluviatile processes in an arid or semi-arid, continental High. To the north of the Esmond area, the Bunter Sandstones pass laterally into a
setting. mudstone dominated succession indicating the development of a permanent desert
The reservoir section present within the fields of the Esmond complex is lake. Sediment sourcing from a generally southerly direction is further indicated by
consistent with this overall braid-plain setting, and comprises cross-bedded channel regional thickness and facies distribution patterns.
fill sandbodies interstratified with non-channelised sheet-flood deposits. Towards the
top of the reservoir section, a regionally extensive mudstone horizon represents the
widespread development of a perennial desert lake.

REPRESENTATIVE WELL SECTION - 43/13a-2

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
0 (API Units) 150 ROCK 1.95 (g/cc) 2.95
LITH INTERPRETATION
AGE

POROSITY PERMEABILITY NEUTRON


CALIPER
43/13a-2 (PERCENT) (md)
(Inches)
UNIT
(Limestone units)
40 0 0.1 10000 5 25 45 -15
Desert lake mudstones. Laterally extensive.
Non-reservoir
H
Alluvial plain sandstones. Laterally extensive sheetlike
H H
sandbody.
H and K controlled by development of halite
cement.

Desert lake mudstone.


6000

Laterally extensive sealing shale.


Non-reservoir.
BUNTER SANDSTONE FORMATION

H H Alluvial plain, sheet flood and minor channel


H
sandstones.
H
H
H
Geometry
H
H
Laterally extensive sheetlike sandbody.
LOWER TRIASSIC
BACTON GROUP

H and K
and K controlled by the distribution of halite,
H carbonate and anhydrite cements.
H
6100

H
Alluvial plain,braided channel and minor sheet
H
flood sandstone.

H Geometry
H Forms a laterally extensive sheetlike sandbody.
H
and K
H and K controlled principally by the distribution
H
of halite,carbonate and anhydrite cements.
6200

H
H H
H

H H
H
H

Alluvial plain, sheet-flood and minor channel-fill


sandstones. Forms a laterally extensive,sheetlike
H sandbody. and K controlled principally by the
distribution of halite, carbonate and anhydrite
H cements.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Esmond Complex
GORDON Rt Fm.
10000
ESMOND FORBES 43/20a-1
43/13a-2 43/8a-1
Haisb. Gp.

t. 1000
in ss
al pla sert
Alluiv y de
in antl nes
Do m sto
mud Dominantly sheetflood
lake
Sheetflood and channel fill

Bunter Sandstone Formation


y sandst. and siltst.
n tl
ina sandstones
Dom lood
etf 100
she tones

Bacton Group
ds ?
san
l fill
nne lood
Cha sheetf
s

PERMEABILITY (md.)
and stone
d
san Dom
inan
tly s
hee 10
tfloo
0 d sa
nds
tone
s an
d sil
tsto
nes

100
1

200 feet
?
0.1
The braid plain depositional model developed for the greater Esmond
area predicts excellent lateral continuity of reservoir layers.
The reservoir layers recognised in the Esmond field as constituting
significant large-scale sequences can be correlated with confidence
Cores affected by Halite Dissolution
throughout the area. The reservoir sequence as a whole and each reservoir 0.01
T.D. layer, with the exception of the desert-lake mudstone horizon, show a 0 10 20 30
thickening to the south. POROSITY (per cent.)
Local thickness variations may reflect subtle controls exerted by
contemporaneous halokinesis. Concomitant with the thickness variations
resulting from early salt movement, lateral facies variations are to be Porosity and permeability show a wide range of values. Both are
expected, with sequences containing a higher proportion of channel fill, as strongly influenced by the textural characteristics of the reservoir
opposed to sheetflood deposits, developed in areas away from any sandstone, these reflecting variations in depositional process. Grain
developing salt induced structure. size, sorting, detrital clay and mica content will provide the most
significant controls on porosity and permeability.
Secondary diagenetic controls are exerted by the variable
FLUID PROPERTIES development of halite and carbonate cements, together with the
effects of compaction and the growth of illite rims around detrital
The Esmond complex fields contain a very dry gas with only traces of condensate grains.
recovered during testing of the exploration wells. Listed below are reported gas Halite cementation is locally significant and requires the use of oil
compositions in mol per cent. showing high nitrogen levels in Esmond, similar to those based muds and special core treatment to produce valid core
recorded in the Bunter sands of the Hewett field. analysis results. The above results indicate where incorrect
treatment of the cores has resulted in halite dissolution.
1.05
GAS DEVIATION FACTOR Z

RESERVOIR PRESSURE

0.95 The Esmond complex reservoirs are normally pressured with an


average gradient to surface of 0.475 psi/ft. The local Bunter
Zi = 0.91
Sandstone aquifer gradient is 0.53 psi/ft which corresponds to a salt
Zi = 0.88 saturated water of 300,000 ppm NaCl concentration.

Forbes 43/8-1 @ 146 F (from correlation)


Esmond 43/13a-1 @ 135 F (from correlation) 4500
0.85
0 1000 2000 3000 4000 5000 0.05 psi/ft

PRESSURE (psig)
ESMOND GWC @ 4783 ft TVDSS
COMPOSITION ESMOND FORBES GORDON
(mol. %) 43/13a-1 43/8-1 43/20-1
5000 0.53 psi/ft
DEPTH (feet TVDSS)

CO2 0.34 0.13 0.04


N2 7.54 14.22 14.99
H2S - - -
He 0.07 0.17 0.08 0.06 psi/ft
C1 90.58 84.36 84.13
C2 1.17 0.83 0.50
GORDON GWC @ 5400 ft TVDSS
C3 0.20 0.14 0.08
C4 0.07 0.05 0.11 5500
C5 0.03 0.02 0.07
0.06 psi/ft
C6 - 0.01 -
C7+ - 0.07 -
S.G. (AIR=1.0) 0.60 0.62 0.62 FORBES GWC @ 5770 ft TVDSS
C.V. (Btu/scf) 944 877 867

6000
2000 2500 3000
CONTROLS ON RECOVERY
INITIAL RESERVOIR PRESSURE (psig)
The recovery factor achieved for the fields of the Esmond complex, which are
now abandoned, ranged from poor (in the case of Forbes) to very good (in the case
of Esmond):

common moderate to good permeabilities in braided fluvial and sheet flood relatively simple sheet geometry reservoir sandstones, separated by a laterally
sandstones persistent, vertically impermeable mudstone sequence, which is not detrimental
the impact of water influx which occurred in the all three fields due to the simple to overall recovery, as permeabilities are equally good above and below the
domal structures and lack of faulting in the aquifer, the Forbes field which is the mudstone
smallest of three, was most adversely affected by water influx compression facilities
very high offtake rates reducing the impact of water influx
FACILITIES SPECIFICATIONS

Esmond Complex
ESMOND ESMOND FORBES GORDON

UNITED KINGDOM
'CP' 'CW' 'AW' 'BW'

Water Depth 102 102 75.5 56


(feet)
Platform Type ------------------------- steel piled jackets -------------------------
Function accommodation
production wellhead wellhead wellhead

Jacket Weight 1912 1049 991 857


(tonnes)
Total Weight of Structure 7872 3200 4050 3900
(tonnes)

Accommodation 51 8 8
(emergency) (emergency)

Well Slots 12 9 9
Wells 7 3 3

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput ------------------------------- 200 (DCQ) ------------------------------


(MMscf/day) ------------------------------- 334 (peak) -------------------------------

Gas Export 24" x 202km via bridge 10" x 11.5 km 12" x 35 km


line to Bacton to 'CP' line to 'CP' line to 'CP'
terminal

(Reproduced by permission of Hamilton Brothers Oil and Gas Ltd)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
250
Pre Corporation Tax

Net Present Value 327.90 372.05 380.80 374.42 354.66 291.33 52.82
Net Present Value (Deflated) 365.53 366.44 325.00 270.60 187.90 -5.45 -593.24
Average Annual Daily Gas Rate (MMscf/day)
Profit/Inv Ratio 1.01 0.66 0.50 0.40 0.31 0.19 0.02 200
Profit/Inv Ratio (Deflated) 0.65 0.38 0.25 0.17 0.09 -0.00 -0.14
NPV/Unit Oil Equiv. 3.87 3.14 2.64 2.27 1.89 1.28 0.17
NPV/Unit Oil Equiv. (Deflated) 3.11 2.20 1.59 1.15 0.70 -0.02 -1.30

Payback Year 1988


Nominal Rate Of Return % 20.72 150
Real Rate Of Return % 14.93

Post Corporation Tax

Net Present Value 211.56 224.63 211.68 189.42 152.56 61.11 -231.57 100
Net Present Value (Deflated) 223.23 185.45 116.89 42.57 -61.62 -290.40 -946.67
Profit/Inv Ratio 0.65 0.40 0.28 0.20 0.13 0.04 -0.09
Profit/Inv Ratio (Deflated) 0.40 0.19 0.09 0.03 -0.03 -0.11 -0.22
NPV/Unit Oil Equiv. 2.50 1.90 1.47 1.15 0.81 0.27 -0.74
NPV/Unit Oil Equiv. (Deflated) 1.90 1.11 0.57 0.18 -0.23 -0.88 -2.07 50

Nominal Rate Of Return % 16.39


Real Rate Of Return % 10.90

Earnings Data 0
Gross Revenue 892.06 1,246.16 1,520.18 1,734.09 1,976.67 2,402.15 3,310.77 1980 1985 1990 1995 2000
Royalty 28.52 42.85 54.24 63.26 73.59 91.92 131.62
Petroleum Revenue Tax 23.64 30.14 34.71 38.07 41.69 47.65 59.16 Year
Corporation Tax 116.34 147.42 169.11 185.00 202.10 230.22 284.40
Capital Expenditure 325.10 560.95 769.28 945.30 1,157.57 1,558.85 2,519.96
Operating Costs 186.90 240.17 281.15 313.05 349.16 412.39 547.20

Gross Revenue (Deflated) 1,234.80 1,749.56 2,150.97 2,465.74 2,823.90 3,454.68 4,809.90
Royalty (Deflated) 43.26 65.06 82.40 96.14 111.89 139.83 200.40
Petroleum Revenue Tax (Deflated) 29.27 37.42 43.15 47.36 51.91 59.41 73.91
Corporation Tax (Deflated) 142.30 180.98 208.12 228.03 249.52 284.94 353.43
Capital Expenditure (Deflated) 558.91 966.18 1,326.39 1,630.97 1,998.51 2,693.86 4,361.24
Operating Costs (Deflated) 237.83 314.47 374.03 420.66 473.69 567.03 767.59

ECONOMIC INDICATORS FROM 1/1/96 CASH FLOW REPORT


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Pre Corporation Tax MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Net Present Value -36.23 -35.36 -34.86 -34.54 -34.23 -33.78 -33.07 1983 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -239.2 0.0 0.0 0.0
Net Present Value (Deflated) -36.23 -35.36 -34.86 -34.54 -34.23 -33.78 -33.07 1984 0.0 0.0 0.0 150.0 0.0 0.0 0.0 -150.0 -635.4 0.0 0.0 0.0
NPV/Unit Oil Equiv. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1985 56.3 0.6 10.0 100.0 0.0 0.0 0.6 -54.2 -202.4 0.0 85.0 0.0
1986 114.0 5.6 18.0 15.1 0.1 0.0 5.7 75.2 245.2 0.0 180.5 0.0
Post Corporation Tax 1987 141.3 10.7 17.1 10.0 0.1 0.0 10.7 103.5 302.1 0.0 215.1 0.0
1988 127.3 11.7 16.0 0.0 -0.1 0.0 11.6 99.7 263.5 0.0 185.1 0.0
Net Present Value -25.57 -24.96 -24.61 -24.38 -24.16 -23.85 -23.35 1989 107.4 0.0 16.0 0.0 0.0 22.1 22.1 69.4 158.9 0.0 200.1 0.0
Net Present Value (Deflated) -25.57 -24.96 -24.61 -24.38 -24.16 -23.85 -23.35 1990 122.1 0.0 16.0 0.0 15.0 28.4 43.4 62.7 123.4 0.0 196.1 0.0
NPV/Unit Oil Equiv. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1991 102.9 0.0 15.6 0.0 6.1 27.7 33.9 53.4 88.9 0.0 156.1 0.0
1992 57.5 0.0 15.0 0.0 0.6 26.1 26.7 15.7 22.9 0.0 83.0 0.0
Earnings Data 1993 36.2 0.0 12.4 0.0 1.8 12.1 13.9 9.9 12.9 0.0 51.3 0.0
1994 25.6 0.0 11.8 0.0 0.0 6.9 6.9 7.0 8.3 0.0 38.0 0.0
Gross Revenue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 1.9 0.0 4.0 0.0 0.0 3.8 3.8 -5.9 -6.3 0.0 2.7 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total To Start Of Discounting ( 1/JAN/1996)
Petroleum Revenue Tax -1.77 -1.73 -1.70 -1.69 -1.67 -1.65 -1.62 892.6 28.5 151.9 325.1 23.6 127.0 179.2 236.5 142.8 0.0 508.4 0.0
Corporation Tax -10.66 -10.40 -10.25 -10.16 -10.07 -9.94 -9.73
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Operating Costs 38.00 37.08 36.57 36.23 35.91 35.44 34.69 1996 0.0 0.0 38.0 0.0 -1.8 -10.7 -12.4 -25.6 -24.6 0.0 0.0 0.0

Gross Revenue (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total 0.0 0.0 38.0 0.0 -1.8 -10.7 -12.4 -25.6 -24.6 0.0 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) -1.77 -1.73 -1.70 -1.69 -1.67 -1.65 -1.62
Corporation Tax (Deflated) -10.66 -10.40 -10.25 -10.16 -10.07 -9.94 -9.73 These cash flows include Esmond, Forbes and Gordon fields only
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 38.00 37.08 36.57 36.23 35.91 35.44 34.69
22/4a Phillips 22/5a 22/5c SUMMARY
Amoco Rel.
0 4 km
The Everest gas condensate field was discovered in 1982 by Well
22/10a-2 which encountered gas condensate in Forties Formation
22/9 Amoco 22/10a 22/10c Rel. submarine fan sandstones. Further appraisal drilling identified four
Amoco structures and encountered further hydrocarbons in Andrew Formation
NORTHEAST sandstones to the North. Annex B approval was granted in 1991, and
2,2a first gas was achieved in 1993. Four separate accumulations can be
EVEREST
EVEREST 1 identified: North and South Everest whose reservoirs are located in the
Forties Formation, and East and North East Everest whose reservoirs
are located in the Andrew Formation. The field has been developed by
NORTH
means of two steel, bridge linked platforms and exports wet gas to
EVEREST 2
Teesside by means of the Central Area Transmission System ('CATS')
3 pipeline. Heavier hydrocarbons are evacuated to the Forties complex.
5 The field straddles three blocks with agreed unitisation.
EAST Current interests in the field are as follows:
3 EVEREST
4
22/9 22/10a 22/14a Everest
22/10b
SOUTH Amerada
EVEREST
British Gas plc 61.11 61.11 5.75 57.79
4 1 Amoco UK Petroleum Ltd* 22.22 22.22 4.25 21.14
Amerada Hess Ltd 16.67 16.67 50.00 18.67
Phillips Petroleum Co. UK Ltd 16.89 1.01
Fina Exploration Ltd 14.48 0.87
Agip (UK) Ltd 8.63 0.52
6
Assumed
22/14c 22/14a Amerada
2
22/15 Total unitisation split 44% 50% 6%
Rel.

operator *

RESERVOIR CHARACTERISTICS LOCAL SETTING

The Everest gas condensate field is located on the Eastern Margin


Fluid Properties North East of the Central Graben, around 225 km east northeast of Aberdeen,
& South & North East straddling Blocks 22/9, 22/10a and 22/14a. It has been developed in
association with the Lomond field, which lies 50 km to the south
Gas Gravity S.G.(air=1) 0.68 - southeast. Lomond and Everest form the backbone of the 'CATS'
Condensate/Gas ratio (bbl/MMscf) 45 - project, which started transporting gas in 1993. Similar accumulations
Gas Expansion Factor (vol/vol) 1.63 - occur in Sleipner East 65 km to the north and in the Armada area 20 km
Saturation Pressure (psig) 3850 - to the northeast. Forties, to which the liquids from Everest and Lomond
Gas oil ratio (scf/stb) - 940 are evacuated, lies 50 km to the west.
Oil Gravity (degrees API) - 37
Bubble Point Pressure (psig) - 3604
Reservoir Pressure, Pi (psig) 3900 3990 (NE), 3961 (E)
at Datum Depth of (ft TVDSS) 8500 8600
Reservoir Temperature (F) 250 250

Rock Properties

Rock Type Sandstone Sandstone


Stratigraphic Unit Montrose Group Montrose Group
Forties Formation Andrew Formation FIELD DESCRIPTION
Geological Age Paleocene Paleocene
Porosity Range (per cent.) 15-26 15-26 The Everest field is a combined structural and stratigraphic trap. The
Permeability Range (md) 1-70 1-70 gas condensate reservoir is of Paleocene age in Forties and Andrew
Connate Water Saturation (per cent.) 38-47 42-49 Formations of the Montrose Group. The submarine sandstones are
Depth to top Structure (ft TVDSS) 8400 8500 draped over underlying Jaeren basement blocks, which have controlled
Hydrocarbon Water Contact (ft TVDSS) >8610(S)-8617(N) 8741(E)->8779(NE) deposition, and result in closure to the north and east with sandstone
shale out. Dip closure occurs to the west and south. The turbiditic
Reserves sandstones of the Forties Formation form the primary reservoir. These
NGL Gas were laid down in an inner to mid fan setting and can be seen to be
Total Reserves (MMstb, Bcf) 24 650 divided into two distinct geographic units, separated by a
Est. Production to 31.12.95 (Bcf) 6 108 palaeotopographic high. These define the reservoirs in South and North
Remaining Gas Reserves (Bcf) 18 542 Everest.
The more distal sandstones of the underlying Andrew Formation
Production (mid to outer fan) provide the reservoir for the East and Northeast
Everest accumulations which, from pressure data, can be seen to be
Water Depth (feet) 289 separate. The East accumulation has a 50 foot thick oil (37 degrees
Production Start Date April 1993 API) column, but to date has only been tested by one well (22/10a-3).
Peak Gas Production (MMscf/day) 130 Everest, like Lomond, is a fairly lean gas condensate with a low
condensate gas ratio, and as a result blowdown will be utilised for
Platforms Steel jacket, bridge linked
recovery rather than recycling. Everest gas contains little CO2 and
to 'CATS' riser platform
virtually no H2S and is utilised in a new power station on Teesside,
Number of Well slots platform 21
which uses 270 MMscfd of gas from both Lomond and Everest. Pre-
template 11
drilling of wells through the already installed template allowed rapid
(10 predrilled)
production once the platform was installed. Further field drilling will take
Gas Export Via 'CATS' to Teesside
place by jackup or tender assisted from the platform.
Heavier Liquid Export To Forties and onto Cruden Bay The southern area may be developed in the late nineties (1996-
1998) by a limited facilities platform. The northeast accumulation may
also be developed by a subsea completion, dependent on production
experience.
STRATIGRAPHY AND STRUCTURE
EVEREST EVEREST
The Everest field is a combined structural stratigraphic TOP FORTIES FM TOP ANDREW FM

UNITED KINGDOM
trap, with gas condensate being trapped in Paleocene DEPTH STRUCTURE DEPTH STRUCTURE
turbiditic sandstone of the Montrose Group, Forties and 22/4
GDT 8779
0 4 km 0 4 km
Andrew Formations. The trap is formed by pinch out and

Everest
GWC @ 8617
shaling out of the sandstones to the north and east against (Contours in feet TVDSS) (Contours in feet TVDSS)
the Jaeren Basin Margin High against which the sandstone
2,2a
lobes abut, with dip closure down the gentle southwesterly Northeast Everest
00 22/4 22/5a
plunging anticlinal nose. 89 00
88 22/9 22/10a 22/10b

86 00
Lista Formation hemipelagic shales act as the seal for

87
00
2
the Andrew Formation. The Forties Formation is sealed by ? Pressure Barrier
8500
the Upper Paleocene Sele Formation.

89 9000
2,2a

00
The hydrocarbons have been sourced from the Upper 3
1
Jurassic Kimmeridge Clay Formation, which was deeply 3 5

83
buried in the Central Graben. Generation occurred during

00
2
the Tertiary, with migration probably via the graben 4 North Everest 00
South 85
boundary faults.

84
Everest

00
850 3
0
0 5
SEDIMENTOLOGY AND DEPOSITIONAL 1 850 00 3 850
86 0 0
ENVIRONMENT

00
4 870

87
4 00
86

850
0 0
Maureen, Andrew and Forties Formations were 87

0
deposited by turbidity currents on a submarine ramp, East

86

00
0 Everest

00
during the Paleocene. Post chalk deposition occurred in 1 90

88
22/9 22/10a 22/10b 8
4
three main phases: 22/14a 22/15
2 OWC @ 8741
(1) Maureen Formation: Mid to outer fan deposition in GDT 8610
an open marine environment. As a result of the similar
depositional environments and facies, Maureen Formation Depositional Limit of Quality Reservoir Sandstones
Northern Limit of Forties Formation (Shale out) Northern Limit of Andrew Formation (Shale out)
sediments are very difficult to distinguish from sediments
of the overlying Andrew Formation. (Modified after O'Connor and Walker, 1993)

(2) Andrew Formation: This formation is characterised


by coalescence of individual mid to outer fan sandstone lobes into complex sheet like elongate northwest - southeast trending Forties sandstone fairways can be seen on
bodies, with lobe fringe and hemipelagic mudstones acting as permeability barriers. seismic, separated by a thin to non-existent sand interval (seen in Well 22/9-1),
Two main sheet bodies (Upper and Lower Andrew) can be recognised. The representing interlobe deposition over a palaeotopographic high. Lobe edges are
formation thins to the northeast and can be seen to onlap Chalk Group sediments. defined by rapid formational thinning, and sandstone shale out. Both Top Forties and
(3) Forties Formation: Large fan unit resulting in deposition of inner to mid fan, intra formational events can be seen to onlap the Jaeren High and other palaeo
thick channelised and lobate sandstone. Sand deposition was controlled by basin highs, forming the up dip trapping mechanism for the field.
topography, with the thickest developments occurring in topographic lows. Two

INTERPRETATIVE STRUCTURAL CROSS SECTION


NORTH EVEREST
SOUTH EVEREST EAST EVEREST
22/14a-2 22/9-4 22/9-1 22/9-3 22/10a-4 22/10a-3 22/10a-2
Feet SW NE

7500
Horda Formation
Rogaland Group
8500 Forties Formation
Andrew Formation
9500

Maureen Formation Chalk Group


10500 TRIASSIC

11500 Group PERMIAN


Humber

DEVONIAN
12500
N
PERMIA
13500
0 1 2 km
14500

REPRESENTATIVE WELL SECTION - 22/10a-3

CORE CORE ANALYSIS DATA GAMMA RAY DEPTH (feet) DENSITY


(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

22/10a-3 B C P (PERCENT) (md) (Inches) (Limestone units)


M
C
F

40 0 0.1 10000 5 25 45 -15

Laterally extensive mudstones. 5 1 2


LOWER TO UPPER PALEOCENE

Geometry
Laterally extensive sheetlike mudstones,
ANDREW FORMATION

interdigitated with thin sheet sandstones


MONTROSE GROUP

passing laterally into ribbon sandstones.


8700

and k
Fair to good in the clean sandstones.
Mudstones act as vertical permeability
barriers.
Calcite and silica cementing common.
slk.
8750

Geometry
8900

Laterally extensive sheet mudstones with


6
thin sheet sandstones passing into ribbon
LOWER TO UPPER PALEOCENE

frac. sandstones.
and k
MONTROSE GROUP

Generally poor due to detrital and


authigenic clays and calcite cement.
8950
MAUREEN FORMATION

frac. Mudstones act as significant vertical


permeability barriers.

Geometry
Ribbon sandstones laterally linked into
sheets. Laterally impersistent mudstones
9000

and local chalk blocks.


and k
Fair to good with local silica cementation.

4 3
1. ROGALAND GROUP 2. LISTA FORMATION 3. CHALK GROUP 4. UPPER CRETACEOUS
5. UPPER PALEOCENE 6. ANDREW FORMATION
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
East Everest
22/10a-3
10000
NW SE
North Everest East Everest

Everest
22/9-2 22/10a-4

South Everest
22/9-1 1000
An
dre
w

Low
er A
ndr
ew
100

Ma
ure
Fo en

PERMEABILITY (md.)
rtie
s

10

An
dre
w
1

Low
er A
ndr 0.1
ew

0
Mau
reen Andrew
100
Maureen
0.01
200 feet 0 10 20 30
POROSITY (per cent.)

Reservoir quality, porosity and permeability in particular, are


The Forties Formation can be subdivided into three main units; a lower shale unit, the generally controlled by depositional facies, with the original
main Forties sandstone and an upper siltstone unit. The Forties sandstone unit is the main character of the sandstone being particularly important. The more
field reservoir and represents deposition in two northwest-southeast trending channel lobe argillaceous sandstones can be seen to have reduced permeability
complexes containing massive sandstone up to 80' thick. The northern lobe was deposited with chlorite authigenesis having a major permeability reducing
in a mid to outer fan setting with the southern lobe in an inner to mid fan environment. The effect in the finer grained sandstones of the outer fan environments.
more proximal deposits are thicker bedded and cleaner, and consequently have better In addition, carbonate cementation plays an important porosity
reservoir potential (net to gross averages 0.67 in South Everest and 0.55 in North Everest). occluding role. Grain dissolution is known to increase the reservoir
The topographic lows which these lobes occupied periodically filled and sandstone quality (particularly porosity) of the cleaner sandstones.
deposition became more widespread, with minor lobe abandonment resulting in thin In the northeast and east areas (mid to outer fan/lobe fringe
mudstone sequences. The shale and siltstone units are considered to be non reservoir. environment) where, argillaceous content is high and sorting is poor,
The Andrew Formation is a more distal tubidite system, and can be subdivided into four the reservoirs have moderate permeabilities and porosities (15-20
units; a lower shale, a lower sandstone, an upper shale and an upper sandstone. Both per cent.). The effects of compaction in the outer fan environments
shales represent highstand mudstones and are non reservoir. The two sandstones are thick can also have a major effect.
bedded sheet-like bodies up to 50' thick. They were deposited in mid to outer fan In the southern main Forties sandstone lobes and in the Lower
environments with frequent fan abandonment and hemipelagic mudstone sequences. The Andrew sequences, permeabilities are much higher (10-100 md) and
lower unit tends to be cleaner and thicker, and has the best reservoir conditions. The porosities range from 20-28 per cent.
presence of the intra sand mudstone units results in reservoir compartmentalisation, with
multiple hydrocarbon water contacts and varying pressure regimes within each unit. RESERVOIR PRESSURE
The Maureen Formation is generally very similar in nature to the Andrew Formation and
cannot easily be distinguished. To date where identified it has always been water wet. The Everest field consists of four separate accumulations. North
In both Forties and Andrew Formations water saturation is reasonably high, resulting and South Everest may be within the same pressure regimes
from the good reservoir quality and low structural relief. (although they are apparently unconnected) with Northeast and East
both in separate regimes. All accumulations appear to be normally
FLUID PROPERTIES pressured, with a gradient to surface of 0.45 psi/ft.
North and South Everest contain gas condensate with a gas
The Forties Formation reservoirs contain gas condensate with a specific gravity of water contact in the North accumulation at 8617 ft TVDSS and gas
approximately 0.68 (air=1) and a condensate gas ratio of 45 bbl/MMscf at a saturation down to 8610 ft TVDSS in the south. The hydrocarbon zone does not
pressure of 3850 psig. The Andrew Formation displays three gas zones in Northeast appear to be flat, but is controlled by the quality, geometry and
Everest and two in East Everest. The gas composition appears to vary slightly between the continuity of sandstone bodies close to the gas water contact.
compartments. East Everest also has a 51 foot oil column. The oil has an API gravity of 37 East and Northeast Everest appear to be separated by
degrees and a bubble point pressure of 3604 psig. It has a gas oil ratio of 940 scf/stb. stratigraphic pressure barrier. Gas is found in both Upper and Lower
Andrew sandstones with a thin oil rim (51 feet) in the lower unit. The
oil water contact occurs at 8741 ft TVDSS. Northeast Everest
contains gas condensate in the Upper Andrew sandstone and in two
1.30 1.5 zones in the Lower Andrew, down to 8779 ft TVDSS. No oil leg is
found in the Lower Andrew sandstones of Northeast Everest.
GAS DEVIATION FACTOR Z

8200
0 (cp)

Northeast Z NORTH EVEREST


0.96 0.8
North Z 8400 0.14 psi/ft
South Z
EAST EVEREST
0 East
8600 GWC @ 0.08 psi/ft
DEPTH (feet TVDSS)

8617 ft TVDSS
GOC @ 8690 ft TVDSS
0.27 psi/ft
0.89 0.1 OWC @ 8741 ft TVDSS
8800
0 1000 2000 3000 4000 5000 6000

PRESSURE (psig)
0.45 psi/ft
9000

CONTROLS ON RECOVERY
9200 0.45 psi/ft
The better reservoir quality of the Forties and Lower Andrew sandstones as a result of
grain dissolution and limited pore clogging by argillaceous and chloritic material should
result in good recovery factors for those units, despite the low structural relief of the field.
9400
The poorer permeability of Upper Andrew, however, will result in only fair to moderate
recovery. 3800 3900 4000 4100 4200 4300
Across the field in general the gas recovery factor is expected to be over 65 per cent. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

UNITED KINGDOM
Water Depth 289 289
(feet)

Everest
Platform Type 2 bridge linked steel jackets
Function Drilling/prod/comp/accom. Riser for CATS
Jacket Weight 5000 2820
(tonnes)
Total Weight 14300 5600
(tonnes)

Accommodation 35

Well Slots (platform) 21


Well Slots (template) 11

PROCESSING AND EXPORT SPECIFICATIONS

Condensate Throughput 12600


(bbl/day)
Gas Throughput 200
(MMScf/day)
(An Amoco Photograph)

Gas Export 36 x 415 km CATS

y
(Central Area Transmission System)
pipeline to Teeside
Heavier Liquid Export 14 x 63 km pipeline to Forties, MOL tie-in
then to Cruden Bay

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
25 150
Pre Corporation Tax
Liquid
Net Present Value 656.74 173.96 7.61 -69.82 -127.65 -187.35 -240.03 Gas

yyy
Net Present Value (Deflated) 354.10 -35.32 -162.82 -220.30 -261.92 -302.71 -333.65

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 0.73 0.23 0.01 -0.11 -0.21 -0.33 -0.48 125
Profit/Inv Ratio (Deflated) 0.35 -0.04 -0.20 -0.29 -0.37 -0.46 -0.58 20
NPV/Unit Oil Equiv. 4.97 2.30 0.14 -1.49 -3.26 -6.13 -11.45
NPV/Unit Oil Equiv. (Deflated) 3.16 -0.53 -3.21 -5.16 -7.24 -10.57 -16.68
100
Payback Year 2001
Nominal Rate Of Return % 8.17 15
Real Rate Of Return % 4.36
75
Post Corporation Tax

yyy
Net Present Value 385.79 52.41 -69.64 -127.52 -171.08 -216.12 -255.00 10
Net Present Value (Deflated) 164.08 -122.02 -218.42 -262.06 -293.52 -323.79 -344.74
Profit/Inv Ratio 0.43 0.07 -0.10 -0.20 -0.28 -0.38 -0.51 50
Profit/Inv Ratio (Deflated) 0.16 -0.14 -0.27 -0.35 -0.41 -0.49 -0.60
NPV/Unit Oil Equiv. 2.92 0.69 -1.24 -2.73 -4.37 -7.07 -12.17
NPV/Unit Oil Equiv. (Deflated) 1.47 -1.82 -4.31 -6.14 -8.11 -11.31 -17.23 5
25
Nominal Rate Of Return % 6.15
Real Rate Of Return % 2.45

Earnings Data
0 0
Gross Revenue 2,304.54 1,247.49 901.21 736.70 608.77 465.67 310.47 1990 1995 2000 2005 2010 2015 2020
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 270.95 121.55 77.25 57.70 43.44 28.77 14.97
Capital Expenditure 903.23 762.44 693.79 653.24 616.27 566.64 496.68
Operating Costs 744.57 311.10 199.81 153.28 120.15 86.38 53.82

Gross Revenue (Deflated) 1,867.50 1,062.78 787.05 652.83 546.64 425.51 290.57
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 190.02 86.70 55.60 41.76 31.60 21.08 11.09
Capital Expenditure (Deflated) 1,026.16 871.61 795.72 750.73 709.59 654.18 575.70
Operating Costs (Deflated) 487.24 226.50 154.15 122.41 98.97 74.04 48.53

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1989 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -22.9 0.0 0.0 0.0
1990 0.0 0.0 0.0 90.0 0.0 0.0 0.0 -90.0 -177.1 0.0 0.0 0.0
1991 0.0 0.0 0.0 325.0 0.0 0.0 0.0 -325.0 -540.6 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1992 0.0 0.0 0.0 300.0 0.0 0.0 0.0 -300.0 -436.9 0.0 0.0 0.0
1993 70.1 0.0 11.7 50.0 0.0 0.0 0.0 8.4 10.9 3.6 70.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1994 109.1 0.0 19.9 30.0 0.0 0.0 0.0 59.2 70.1 5.6 107.0 0.0
1995 126.0 0.0 20.2 0.0 0.0 0.0 0.0 105.8 113.2 6.1 120.0 0.0
Pre Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
305.1 0.0 51.8 805.0 0.0 0.0 0.0 -551.7 -983.3 5.6 108.4 0.0
Net Present Value 1,208.42 955.36 832.72 762.55 700.63 621.14 517.23
Net Present Value (Deflated) 1,019.70 804.20 704.27 647.71 598.00 534.27 450.70 1996 140.6 0.0 20.2 30.0 0.0 0.0 0.0 90.4 87.0 6.2 130.0 0.0
NPV/Unit Oil Equiv. 11.15 11.77 11.88 11.90 11.87 11.79 11.59 1997 145.7 0.0 20.8 52.0 0.0 0.0 0.0 72.9 62.4 5.8 130.0 0.0
1998 150.3 0.0 21.4 16.2 0.0 0.0 0.0 112.6 85.9 5.4 130.0 0.0
Post Corporation Tax 1999 155.0 0.0 22.0 0.0 0.0 0.0 0.0 133.0 90.3 5.0 130.0 0.0
2000 159.8 0.0 22.6 0.0 0.0 0.0 0.0 137.2 82.9 4.6 130.0 0.0
Net Present Value 937.47 784.32 700.33 650.11 604.60 544.62 463.59 2001 165.9 0.0 23.4 0.0 0.0 26.0 26.0 116.4 62.6 4.5 130.0 0.0
Net Present Value (Deflated) 829.68 682.21 608.98 566.34 528.14 478.19 410.97 2002 147.8 0.0 23.7 0.0 0.0 40.1 40.1 84.1 40.2 3.7 111.9 0.0
NPV/Unit Oil Equiv. 8.65 9.66 10.00 10.14 10.25 10.34 10.39 2003 132.0 0.0 24.3 0.0 0.0 35.7 35.7 72.0 30.6 3.1 96.3 0.0
2004 117.8 0.0 24.8 0.0 0.0 31.6 31.6 61.3 23.2 2.6 82.8 0.0
Earnings Data 2005 104.9 0.0 25.4 0.0 0.0 27.7 27.7 51.8 17.5 2.1 71.3 0.0
2006 93.8 0.0 26.1 0.0 0.0 24.0 24.0 43.6 13.1 1.8 61.3 0.0
Gross Revenue 1,999.42 1,429.74 1,206.23 1,088.72 990.18 869.70 720.56 2007 83.8 0.0 26.9 0.0 0.0 20.7 20.7 36.2 9.7 1.5 52.8 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 75.0 0.0 27.8 0.0 0.0 17.5 17.5 29.6 7.0 1.3 45.4 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 67.1 0.0 28.8 0.0 0.0 14.6 14.6 23.7 5.0 1.1 39.1 0.0
Corporation Tax 270.95 171.03 132.39 112.44 96.03 76.52 53.63 2010 59.7 0.0 29.8 0.0 0.0 11.9 11.9 18.0 3.4 0.9 33.6 0.0
Capital Expenditure 98.23 91.97 88.59 86.47 84.44 81.58 77.23 2011 49.4 0.0 28.4 0.0 0.0 9.4 9.4 11.6 1.9 0.0 28.9 0.0
Operating Costs 692.77 382.42 284.93 239.71 205.11 166.97 126.10 2012 44.2 0.0 28.1 0.0 0.0 6.5 6.5 9.7 1.4 0.0 24.9 0.0
2013 39.5 0.0 27.6 0.0 0.0 5.0 5.0 6.9 0.9 0.0 21.4 0.0
Gross Revenue (Deflated) 1,547.61 1,153.86 993.86 908.07 835.07 744.34 629.34 2014 35.4 0.0 27.3 0.0 0.0 3.7 3.7 4.3 0.5 0.0 18.4 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2015 31.8 0.0 27.1 0.0 0.0 2.5 2.5 2.1 0.2 0.0 15.9 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 190.02 121.99 95.28 81.38 69.86 56.08 39.73 2016 0.0 0.0 186.2 0.0 0.0 -6.2 -6.2 -180.0 -16.8 0.0 0.0 0.0
Capital Expenditure (Deflated) 95.00 89.03 85.79 83.76 81.83 79.10 74.93
Operating Costs (Deflated) 432.90 260.64 203.80 176.59 155.24 130.97 103.71 Total 1,999.4 0.0 692.8 98.2 0.0 270.9 270.9 937.5 609.0 18.1 541.7 0.0

These cash flows comprise Everest field only


21/9 BP 21/10 BP 22/6b BP SUMMARY

0 4 km The Forties field is located in Quadrants 21 and 22 some 190 km


7 13
north east of Aberdeen in the UK Sector of the Central North Sea. The
4 field was discovered in 1970 by Well 21/10-1 which encountered oil in
8
the Paleocene Forties formation. The southeast extension of the field
into Block 22/6 was discovered by Well 22/6-1 in 1971.
FORTIES Development of Forties began in 1974 involving four steel platforms
6
and first oil production was achieved in September 1975. Development
2 22/6a Shell of the southeast extension began in 1984 involving one unmanned steel
FB platform with first production in 1987. A total of five platforms have been
utilised. The current interests in the Forties field in per cent. are:-
6
3,3A FA 1
FC BP* 92.58
FD 4
2,3 6 Exxon 2.61
NELSON RD/Shell 2.61
5 FE
1 10
5 British Borneo 0.75
1
7
Cairn 0.50
8
Amerada Hess 0.45
12 LEPCO 0.25
5 S.E.FORTIES Brabant 0.25
9
5 2 5 operator *
2

3
3
4 4,4A

21/14a BP 21/15b Amerada 21/15a BP 22/11 Enterprise

LOCAL SETTING

The Forties field is located near the northern end of the Forties-
Montrose Ridge, within the Central Graben. The nearest field is Nelson
in Block 22/11 which also has oil in the Forties Formation. Montrose and
Arbroath fields, which are further to the southeast in Quadrant 22, also
RESERVOIR CHARACTERISTICS produce from sands of Paleocene age. To the southwest lies the
Kittiwake field which produces from Jurassic sands. To the northwest is
Fluid Properties the Buchan field, producing from Devonian sandstones, and to the north
lies the Alba field in Quadrant 16, with oil in sands of Eocene age.
Oil Gravity (API) 37
Gas/Oil Ratio (scf/stb) 344
Bubble Point Pressure, Pb (psig) 1100-1350
Formation Volume Factor at Pi (rb/stb) 1.20
Oil Compressibility (vol/vol/psi) 10 x 10-6
Original Reservoir Pressure, Pi (psig) 3215
At Datum Depth of (TVDSS) 7135
Reservoir Temperature (F) 205

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Forties
Geological Age Paleocene
Porosity (per cent.) 22-30 FIELD DESCRIPTION
Permeability (md) 100-4000
Average Water Saturation (per cent.) 12-25 The Forties reservoir occurs in a domal structure (four-way dip
Oil Water Contact (ft TVDSS) 7274 closed). The reservoir occurs within Paleocene sandstones of the
Depth to Top of Structure (ft TVDSS) 6690 Forties Formation, which averages up to 850 feet in thickness, and is
formed of sand and shale members deposited on a submarine ramp.
Reserves The Forties Sand Member forms the entire thickness in the north, with
a secondary sand member, the 'Charlie Sand', appearing to the west
Total Reserves (Oil & NGL) (MMstb) 2550 and south together with the 'Charlie Shale' member. In the southeast
Est. Production to 31.12.95 (MMstb) 2307 extension of the field, sand quality is not as good as in the main field.
Remaining Reserves (Oil & NGL) (MMstb) 243 Porosities and permeabilities are good to very good.
The reservoir contains an undersaturated oil with a GOR of 344
Production scf/stb. As the oil column thickness (550 feet) is less than the thickness
of the reservoir sand, the reservoir is totally underlain by the aquifer.
Water depth (feet) 348-417 Water injection has been used, however, to maintain pressure above
Production Start Date September 1975 2500 psig. A programme of installation of gas lift facilities in the main
Peak Production (Oil and NGL) (stb/day) 506000 field has been ongoing since 1990, initially shallow gas lift and then
Platform(s) 5 Steel jackets deep gas lift being installed. As Forties Echo does not have the
Number of Wells - Producers 78 capability for water injection or a gas lift programme, pumps have been
Water injectors 26 installed on 10 of the production wells to assist oil flow. An infill deviated
Gas injectors drilling programme was started in 1992. This infill programme is now
Oil and NGL Export Pipeline to Cruden Bay almost complete with some considerable success in exploiting isolated
Gas Export pockets of oil. However, in the case of the northwest area, identified by
Well 21/10-8 in 1989, it is unlikely that any development via a deviated
well will be possible. Therefore, future production seems uncertain.
Production of oil began in September 1975, and the field is now in
decline with over 90 per cent. of the reserves produced to date. Oil is
transported to Cruden Bay by 36" diameter pipeline. The 'Unity' riser
platform was installed to the west of the field in July 1992. This forms
part of the Forties pipeline upgrade and expansion, and was tied into
the system in March 1993. The unity riser platform has enhanced the
use of the Forties oil pipeline by third parties.
STRATIGRAPHY AND STRUCTURE 21/10 22/6a
OWC
2127 metres FORTIES
The Forties field is located along the crest of the (7274 feet)

UNITED KINGDOM
eastsoutheast trending Forties-Montrose High, within the TOP PALEOCENE
Central Graben. Hydrocarbons are found in the Paleocene DEPTH STRUCTURE
22 23
50

Forties
sandstones of the Forties Formation. The initial OWC was 2 00

22
at 7274 feet TVDSS with a vertical closure of about 550

50
22
feet. The Forties-Montrose High was a positive feature FB 00
during the Eocene when trapping occurred. Structural
closure probably results from differential compaction of
sediments draped over the Forties-Montrose High, 21
00
although faults to the west of the high show evidence of
Eocene movement and this may have contributed to the
FA
closure. The maximum structural dip on the flanks of the
3a FD 1
structure is about 10 degrees and no significant faulting is FC 4
recorded at the reservoir horizon. Trapping may be partly 2100 2,3
stratigraphic if the reservoir sands shale out over the crests FE
of rotated fault blocks. The seal is formed by overlying
5 5
mudstones of the Rogaland Group (Balder and Sele
Formations) and overlying and interbedded mudstones of 8 1
7
the Lista and Forties Formations.
2250
SEDIMENTOLOGY AND DEPOSITIONAL
ENVIRONMENT
0 3 km
The sediments of the Forties Formation were deposited
mainly by turbidity currents on a submarine ramp during the (Contours in metres) 2 300

Late Paleocene. The sediments can be subdivided into four 22/6a


main facies associations as follows: (After Walmsley)

A is characterised by interbedded sandstones and


mudstones. Sharp-based, fine to medium grained
sandstones with parallel and current ripple laminations are interbedded with thin, are interpreted as distal turbidites.
grey, laminated mudstones. These sediments are interpreted as proximal turbidites. D is characterised by waxy, greenish grey, bioturbated mudstones interpreted as
B comprises mainly sandstone with minor pebbly sandstone and rare, thin hemipelagic deposits.
mudstone interbeds. The sandstones are generally massive with sparse fluid escape The Forties Shale Member, which forms part of the reservoir, comprises mainly
structures and are interpreted as high density turbidite sandstones deposited in facies associations D and C. The Forties Sandstone Member including the Charlie
broad, shallow channels. Sand, is dominated by facies associations A and B but is commonly capped by a
C is dominated by grey laminated mudstones with thin, interbedded, sharp-based shale unit representing a major abandonment phase.
sandstones. The sandstones are commonly parallel or current-ripple laminated and

SW INTERPRETATIVE STRUCTURAL CROSS SECTION NE

21/14-1 21/9-1 21/10-3A 21/10-5 22/1a-3 22/2-1


Feet

2000
Upper Hordaland Group/Nordland Group
4000

6000
Horda Formation

8000
Chalk Group Montrose and Rogaland Groups

10000
Fladen Group

12000

Cromer Knoll Group


14000
0 5 10 km
Humber Group

REPRESENTATIVE WELL SECTION - 21/10-5 DEPTH (feet)

CORE CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


M
Hemipelagic and low density turbiditic
mudstones with thin turbiditic sandstones.
21/10-5 Geometry
Laterally extensive mudstones with thin,
S lobate sandbodies. Mudstones pass
M
laterally into thicker sandstones elsewhere
in the field.
S M and K
S Non reservoir horizon.

M High density turbiditic sandstones with thin,


low density turbiditic mudstones.
7300

Geometry
S Individual sand units have ribbon
geometries and are amalgamated to form
FORTIES FORMATION
UPPER PALEOCENE
MONTROSE GROUP

M an elongate, lobate sand body. Sandstones


in upper part have sheet geometries with
rubble poor vertical and lateral continuity.
M S

and K
K Py and K of sandstones good to very good.
K Mudstones in upper part may act as vertical
permeability baffles or barriers.
loose sand
and rubble
7400

S
M
loose sand K
and rubble

loose sand
Unconfined turbiditic sandstones with thin
low density turbiditic mudstones.
Geometry
Sheet geometry sandstones and
mudstones.
and K
generally good, K variable from very poor
7500

M to good. Vertical permeability restricted due


S
to argillaceous horizons.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
21/10-3A
10000

S.E. Forties
Balder Formation

Forties
21/10-1
Sele Fm.

Charlie 1000
Sand
22/6-4

Charlie Shale

100

PERMEABILITY (md.)
TD 10

100 22/6a-5
1
200 1
3
2
300 feet

Forties Sandst. Mbr.


0.1
Andrew
Formation TD

Forties Formation
Montrose Group
Main Field
South East Field
Maureen Formation 0.01
21/10-5
0 10 20 30 40

4 POROSITY (per cent.)


1. Balder Formation
2. Sele Formation
The Forties Formation has been subdivided into the 5
3. Rogaland Group Porosities and permeabilities are generally good, typically 25 per
4. Forties Shale Mbr.
Forties Sandstone Member and the Forties Shale 5. Andrew Formation
cent. and 400 to 4000 md.
Member. The Forties Sandstone Member contains the TD
Trends in porosity and permeability values are controlled by
majority of the reserves. The Shale Member is primary textural characteristics and hence facies. The better sorted
generally thinner than 300 feet but locally may be up to and/or coarser grained sandstones of facies associations A and B
800 feet in thickness. The Sandstone Member comprises predominantly good reservoir have the better reservoir quality. Average porosity and permeability
quality sandstones and has a maximum thickness of 850 feet. The main part of this member values are 25 per cent. and 400 md for A and 24 per cent. and 600
forms the 'Main Sand Unit' which varies in thickness from 200 feet in the west to 850 feet in md for B. The generally finer grained sandstones of facies
the north where it forms the entire member. Thick broad, elongate and thinner, sheet-like association C have average porosity and permeability values of 17.5
sandbodies are commonly stacked and coalesced to form, thick, more sheet-like sediment per cent. and 10 md respectively. Mudstones within the 'Main Sand
bodies including thin mudstones, generally of limited lateral extent. The 'Main Sand Unit' is Unit' are generally laterally impersistent and will not form significant
overlain by the 'Upper Shale Unit' in the central part of the field. This mudstone dominated restrictions to vertical flow. The 'Charlie Shale Unit' forms a vertical
unit varies from 0 to 100 feet in thickness. In the western part of the field area, the upper permeability barrier in the western part of the field.
part of the Forties Sandstone Member comprise the 'Charlie Sand Unit' overlying the
'Charlie Shale Unit'. The 'Charlie Sand Unit' has a maximum thickness of 250 feet and
passes rapidly into mudstones and thin sandstones to the east. It is vertically isolated from
the 'Main Sand Unit' by non-reservoir mudstones and thin sandstones of the 'Charlie Shale
Unit'. The 'Charlie Shale Unit' is typically 50 to 100 feet thick and is correlatable over the
western part of the field, where it represents a major abandonment phase. RESERVOIR PRESSURE

The Forties field is normally pressured relative to hydrostatic


gradient of 0.44 psi/ft. An oil gradient of 0.32 psi/ft is implied by the
FLUID PROPERTIES reservoir fluid properties.

The Forties field contains an undersaturated 37 degrees API gravity oil with an average
gas oil ratio of approximately 344 scf/stb. Well 21/10-3A in the west of the field tested oil 6600
with a GOR of 330 scf/stb, properties for which are presented below.

6800
400 1.25 1.6

GOR
1.4 0.32 psi/ft
7000
300 1.20 B0
DEPTH (feet TVDSS)

1.2
GOR (scf/stb)

B0 (rb/stb)

7200
0 (cp)

200 1.15 1.0


OWC @ 7274 ft TVDSS

0.8 7400
100 1.10
0.6 0.44 psi/ft
0
7600
@ 205 F
0 1.05 0.4
0 1000 2000 3000 4000

PRESSURE (psig) 7800


3000 3100 3200 3300 3400 3500

INITIAL RESERVOIR PRESSURE (psig)

CONTROLS ON RECOVERY

Recovery factor for the field is expected to be high at approximately 60 per cent.
for the reasons listed below:
Sand quality is very good. The reservoir comprises two major sand packages the expectation that the field will produce to higher limiting water cuts than were
with excellent internal connectivity, separated by the impermeable Charlie Shale. previously anticipated. Additional artificial lift and water handling facilities have
The field is structurally a very simple anticline with no significant faulting. Both been necessary to achieve the current reserves estimate, together with an infill
these factors lead to very high waterflood sweep efficiency. drilling programme. A major programme of artificial lift based on gas lift in the
Reserve estimates were significantly revised upwards in the 1980s, based on main field area and ESP facilities in Southeast Forties has been installed.
FACILITIES SPECIFICATIONS

FA, FB, FC, FD FE UNITY

UNITED KINGDOM
Water Depth 348-417 312 395

Forties
(feet)
Platform Type steel jacket steel jacket steel jacket
Function drilling/production/ production riser
accommodation
Jacket Weights ca. 13000 8000 7500
(tonnes)
Total Weights ca. 30000 13700 10300
(tonnes)

Accommodation 150 Emergency only for 20

Well Slots 30-33 16


Wells 21-24 14

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 155000 60000


(bbl/day)

Oil Export 36" x 172 km pipeline from Forties 12" x 5Km


FC to Cruden Bay pipeline to FA
Gas Export

PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED

600

(A BP Photograph)

Average Annual Daily Liquid Rate (Mbbl/day)


500

FULL FIELD LIFE ECONOMIC INDICATORS 400

Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax 300


Net Present Value 7,726.77 4,662.12 3,517.55 2,939.41 2,470.40 1,920.77 1,286.40
Net Present Value (Deflated) 17,260.83 10,645.41 8,076.93 6,744.48 5,642.60 4,324.28 2,762.17
Profit/Inv Ratio 2.70 2.89 2.85 2.77 2.66 2.47 2.09
Profit/Inv Ratio (Deflated) 2.32 2.02 1.79 1.64 1.49 1.27 0.95 200
NPV/Unit Oil Equiv. 3.03 3.37 3.49 3.54 3.57 3.58 3.53
NPV/Unit Oil Equiv. (Deflated) 3.32 3.37 3.33 3.27 3.20 3.05 2.73

Payback Year 1977 100


Nominal Rate Of Return % 64.41
Real Rate Of Return % 43.67

Post Corporation Tax 0


Net Present Value 4,001.20 2,543.64 1,961.74 1,659.64 1,409.75 1,110.25 753.08 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Net Present Value (Deflated) 9,641.71 6,066.68 4,619.41 3,852.20 3,207.84 2,423.39 1,471.58
Profit/Inv Ratio 1.40 1.58 1.59 1.56 1.52 1.43 1.23 Year
Profit/Inv Ratio (Deflated) 1.30 1.15 1.02 0.93 0.85 0.71 0.51
NPV/Unit Oil Equiv. 1.57 1.84 1.95 2.00 2.04 2.07 2.07
NPV/Unit Oil Equiv. (Deflated) 1.86 1.92 1.90 1.87 1.82 1.71 1.45

Nominal Rate Of Return % 56.03


Real Rate Of Return % 36.19 CASH FLOW REPORT
Earnings Data Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Gross Revenue 35,098.85 18,771.28 13,533.23 11,045.56 9,106.83 6,930.36 4,560.08 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Royalty 3,760.16 2,060.43 1,483.86 1,206.51 989.47 745.68 481.49
Petroleum Revenue Tax 14,904.30 8,192.84 5,851.62 4,719.52 3,833.38 2,840.90 1,775.88 1972 0.0 0.0 0.0 55.0 0.0 0.0 0.0 -55.0 -2,298.6 0.0 0.0 0.0
Corporation Tax 3,725.57 2,118.48 1,555.80 1,279.77 1,060.65 810.52 533.32 1973 0.0 0.0 0.0 115.0 0.0 0.0 0.0 -115.0 -4,164.9 0.0 0.0 0.0
Capital Expenditure 2,865.14 1,612.66 1,234.63 1,060.52 926.99 778.28 614.03 1974 0.0 0.0 0.0 175.0 0.0 0.0 0.0 -175.0 -5,353.7 0.0 0.0 0.0
Operating Costs 4,634.23 1,504.76 889.63 657.46 501.10 349.24 209.59 1975 25.0 0.0 5.0 185.0 0.0 0.0 0.0 -165.0 -4,319.2 12.3 0.0 0.0
1976 459.5 17.3 35.0 200.0 0.0 0.0 17.3 207.2 4,040.6 176.9 0.0 0.0
Gross Revenue (Deflated) 67,747.14 39,877.13 30,031.69 25,141.25 21,213.41 16,658.19 11,473.69 1977 1,369.3 101.9 45.0 60.0 0.0 0.0 101.9 1,162.4 18,011.8 413.4 0.0 0.0
Royalty (Deflated) 7,274.07 4,240.25 3,156.93 2,620.01 2,190.56 1,695.93 1,140.33 1978 1,336.6 155.6 55.0 90.0 276.3 369.6 801.5 390.1 4,823.1 503.9 0.0 0.0
Petroleum Revenue Tax (Deflated) 27,961.99 15,878.87 11,573.73 9,456.18 7,776.30 5,864.66 3,764.82 1979 1,797.7 180.6 75.0 100.0 609.8 325.3 1,115.7 507.0 5,355.9 503.9 0.0 0.0
Corporation Tax (Deflated) 7,619.12 4,578.73 3,457.52 2,892.28 2,434.76 1,900.88 1,290.60 1980 2,781.4 268.8 95.0 100.0 1,162.0 316.1 1,746.9 839.5 7,245.1 506.0 0.0 0.0
Capital Expenditure (Deflated) 7,424.67 5,280.70 4,512.82 4,120.37 3,794.74 3,397.54 2,899.13 1981 3,154.9 352.2 100.0 60.0 1,554.8 384.6 2,835.6 159.4 1,081.0 469.0 0.0 0.0
Operating Costs (Deflated) 5,308.10 2,290.57 1,549.76 1,234.04 1,002.78 757.03 503.13 1982 3,156.0 375.3 105.0 35.0 1,360.6 338.5 2,678.2 337.7 1,893.9 454.6 0.0 0.0
1983 3,249.8 382.9 110.0 35.0 2,195.9 342.7 2,981.9 123.0 588.3 446.3 0.0 0.0
1984 3,489.7 406.2 115.0 75.0 2,075.1 369.9 2,851.2 448.5 1,899.9 417.5 0.0 0.0
1985 2,935.7 386.9 115.0 150.0 1,759.3 367.9 2,514.1 156.6 584.6 378.5 0.0 0.0
1986 1,228.2 244.5 115.0 150.0 821.2 287.4 1,353.1 -389.9 -1,271.6 340.2 0.0 0.0
1987 1,344.7 144.4 120.0 45.0 742.8 105.3 992.5 187.2 546.5 326.9 0.0 0.0
1988 904.7 124.6 120.0 30.0 545.1 87.7 757.4 -2.7 -7.1 291.4 0.0 0.0
1989 854.8 94.4 120.0 155.0 390.2 51.9 536.4 43.4 99.4 210.8 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1990 908.7 93.3 125.0 125.0 411.7 71.4 576.4 82.2 161.8 188.6 0.0 0.0
1991 701.6 82.6 125.0 145.0 300.0 61.5 444.0 -12.5 -20.7 168.1 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1992 618.1 63.0 125.0 290.0 140.0 44.8 247.8 -44.8 -65.2 155.3 0.0 0.0
1993 497.1 48.4 120.0 145.0 137.5 58.9 244.8 -12.7 -16.5 120.1 0.0 0.0
Pre Corporation Tax 1994 468.5 39.5 115.0 65.0 104.7 22.9 167.1 121.4 143.8 124.3 0.0 0.0
1995 435.7 36.9 110.0 60.0 117.0 20.9 174.8 90.9 97.3 113.0 0.0 0.0
Net Present Value 215.57 296.90 308.47 308.93 305.98 297.86 280.20 Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value (Deflated) 294.81 315.50 311.37 305.66 298.72 287.21 267.66 31,717.8 3,599.4 2,050.0 2,645.0 14,703.9 3,627.2 23,138.8 3,884.0 29,055.5 2,307.2 0.0 0.0
NPV/Unit Oil Equiv. 0.89 1.56 1.83 1.98 2.10 2.24 2.42
1996 390.7 32.7 105.0 30.0 113.2 21.5 167.4 88.3 85.0 97.6 0.0 0.0
Post Corporation Tax 1997 362.7 29.0 109.2 31.2 100.2 17.4 146.6 75.7 64.9 84.3 0.0 0.0
1998 325.7 26.1 113.6 32.5 81.4 17.5 124.9 54.7 41.7 72.8 0.0 0.0
Net Present Value 117.17 210.49 228.08 232.14 232.50 228.88 217.62 1999 292.7 22.5 118.2 33.8 63.2 15.0 100.8 39.9 27.1 62.9 0.0 0.0
Net Present Value (Deflated) 204.51 235.80 236.99 234.47 230.46 222.94 209.10 2000 262.8 20.0 117.1 29.3 50.8 12.1 82.9 33.5 20.2 54.3 0.0 0.0
NPV/Unit Oil Equiv. 0.48 1.11 1.36 1.49 1.60 1.73 1.88 2001 236.0 18.3 121.8 24.4 38.6 9.2 66.0 23.8 12.8 46.9 0.0 0.0
2002 211.9 15.6 126.8 19.0 27.9 5.7 49.2 17.0 8.1 40.5 0.0 0.0
Earnings Data 2003 190.5 13.1 125.3 13.2 21.1 2.5 36.7 15.3 6.5 35.0 0.0 0.0
2004 171.5 10.9 130.4 6.9 13.7 0.6 25.2 9.1 3.4 30.3 0.0 0.0
Gross Revenue 3,381.04 2,549.94 2,212.66 2,032.02 1,878.44 1,687.67 1,445.90 2005 153.6 8.5 135.6 0.0 6.6 -2.0 13.1 4.9 1.6 26.1 0.0 0.0
Royalty 160.72 153.53 144.31 137.76 131.29 122.09 108.63 2006 138.3 6.4 141.1 0.0 1.0 -1.1 6.3 -9.0 -2.7 22.6 0.0 0.0
Petroleum Revenue Tax 200.38 319.29 337.91 340.16 337.66 328.80 308.30 2007 124.1 4.5 146.8 0.0 0.0 0.0 4.5 -27.1 -7.2 19.5 0.0 0.0
Corporation Tax 98.40 86.40 80.39 76.79 73.48 68.99 62.58 2008 111.2 4.5 104.5 0.0 0.0 0.0 4.5 2.2 0.5 16.8 0.0 0.0
Capital Expenditure 220.14 185.14 168.41 158.65 149.84 138.16 122.00 2009 99.8 5.1 97.0 0.0 0.0 0.0 5.1 -2.3 -0.5 14.5 0.0 0.0
Operating Costs 2,584.23 1,595.08 1,253.56 1,086.53 953.67 800.76 626.79 2010 90.2 4.7 87.0 0.0 0.0 0.0 4.7 -1.5 -0.3 12.6 0.0 0.0
2011 81.2 4.6 72.4 0.0 0.0 0.0 4.6 4.2 0.7 10.9 0.0 0.0
Gross Revenue (Deflated) 2,733.74 2,139.69 1,890.75 1,754.96 1,637.93 1,490.27 1,298.87 2012 72.8 4.4 65.9 0.0 0.0 0.0 4.4 2.5 0.4 9.4 0.0 0.0
Royalty (Deflated) 159.23 143.09 132.78 126.25 120.12 111.72 99.81 2013 65.2 3.9 58.8 0.0 0.0 0.0 3.9 2.5 0.3 8.1 0.0 0.0
Petroleum Revenue Tax (Deflated) 313.59 346.87 343.67 337.45 329.52 316.11 293.17 Remain
Corporation Tax (Deflated) 90.30 79.70 74.38 71.19 68.26 64.27 58.56 2014 0.0 -74.1 607.7 0.0 -317.3 0.0 -391.4 -216.4 -25.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 195.00 165.53 151.35 143.05 135.53 125.53 111.61
Operating Costs (Deflated) 1,771.12 1,168.69 951.57 842.54 754.05 649.69 526.61 Total 3,381.0 160.7 2,584.2 220.1 200.4 98.4 459.5 117.2 237.0 242.8 0.0 0.0

These cash flows include Forties field only. No tariffing income nor pipeline and terminal costs are included
30/11b Amoco 30/12b Amoco SUMMARY
6 2
4 The Fulmar field is located in Quadrant 30 some 270 km east
HALLEY southeast of Aberdeen. The field was discovered in 1975 by Well 30/16-
3 6 which encountered oil in Upper Jurassic sands of the Fulmar
Formation.
30/16 Shell A 30/17b BP Development of the Fulmar field began in 1978 and involves two
6
AD steel platforms: Platform A is the main processing facility and AD acts
FULMAR LEVEN as a wellhead protector. First oil was produced in February 1982 and
7 9 peak oil production was achieved in 1986. Oil is currently exported via
7 tankers although discussions are underway between Phillips and Shell
5 8 6
2 CLYDE
about diverting oil production from Fulmar field through the Judy oil
export line to join Norpipe. The decision is imminent and exports
5
13
3
through the Judy pipeline may begin in 1996 or 1997. This will make the
4
Fulmar Floating Storage Unit (FSU) redundant, although at present,
MEDWIN
there are no immediate plans for its disposal. Gas is exported to St
4 Fergus via a 20" pipeline. First gas was produced in July 1986, although
1 3 AUK in the latter years of the field's life, all gas production will be needed as
A 1 platform fuel, so ending its export.
2 9 10 The current interests in the Fulmar field in per cent. are:-

12 8 JANICE Shell UK Ltd * 45.25


AUK SE Esso Exploration & Production Ltd 45.25
Amoco UK Exploration Co. 9.50
10

operator *
30/17a Phillips
30/21 Shell 30/22b Mobil
0 5 km

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Fulmar field is located on a fault-bounded terrace on the


western margin of the South West Central Graben. The nearest fields
Oil Gravity (API) 40 are Clyde, approximately 7 km to the southeast, which produces oil from
Gas/Oil Ratio (scf/stb) 600-650 Jurassic sandstones and Auk, some 10 km to the southwest, which
Bubble Point Pressure, Pb (psig) 1800 contains oil in Zechstein dolomites and Rotliegendes sandstone. The
Formation Volume Factor at Pi (rb/stb) 1.39 Argyll and Innes fields lie 52 and 42 km to the southeast respectively.
Oil Compressibility (vol/vol/psi) 11.1 x 10-6 The Josephine and J-Block accumulations, 25 km to the north, contain
Original Reservoir Pressure, Pi (psig) 5808 hydrocarbons in a series of formations ranging from the Paleocene to
At Datum Depth of (ft TVDSS) 10840 the Triassic. In the Norwegian sector, some 55 km to the east, lie a
Reservoir Temperature (F) 260 number of chalk reservoirs including Ekofisk and Valhall.

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Fulmar
Geological Age Jurassic
Porosity Range (per cent.) 18-30
Permeability Range (md) 5-2000
Connate Water Saturation (per cent.) 15-35
Oil Water Contact (ft TVDSS) 10590/10840
Depth to Top of Structure (ft TVDSS) 10000

Reserves OIL + NGL GAS

Reserves (MMstb, Bcf) 573 155


Est. Production to 31.12.95 (MMstb, Bcf) 548 139
Remaining Reserves (MMstb, Bcf) 25 16
FIELD DESCRIPTION
Production
The Fulmar field is a dome-shaped structure with steeply-dipping
Water depth (feet) 275 flanks particularly to the southwest. The reservoir comprises a
Production Start Date February 1982 sequence of Upper Jurassic sands sealed by Kimmeridgian shales in
Peak Production (Oil and NGL) (stb/day) 171000 the western part of the field and Upper Cretaceous chalks elsewhere.
Platform(s) 2 Steel jackets These Fulmar sands are made up of the Ribble, Mersey, Clyde, Lydell,
Number of Wells - Producers 16 5 Usk and Forth units, of which the Ribble, Mersey and Lydell have the
Water injectors 14 best reservoir quality. The pay zone has an average thickness of 580
Gas injectors 3 feet and two different OWCs have been encountered within the field,
Oil and NGL Export Currently Offshore loading to tankers; associated with separate fault blocks.
tie back to Norpipe expected The reservoir oil is undersaturated with a gravity of 40 degrees API
in 1996 and a GOR of 600-650 scf/stb.
Gas Export Pipeline to St. Fergus The reservoir is underlain by a small aquifer and water injection
provides the predominant recovery mechanism. The first water injection
well was in place by December 1982.
From July 1982 produced solution gas was reinjected resulting in a
secondary gas cap. Since July 1986 the gas has been exported to St.
Fergus.
To date some 96 per cent. of the oil reserves have been produced.
The Janice accumulation to the south, which is currently undergoing
appraisal, may be developed using a subsea tieback to Fulmar.
30/11b 30/12b STRATIGRAPHY AND STRUCTURE

The Fulmar field contains oil and gas in the Upper

UNITED KINGDOM
Jurassic sandstones of the Fulmar Formation with additional
OWC 10590
accumulations in the Kimmeridge Sand Member of the

Fulmar
Kimmeridge Clay Formation, which is Volgian in age. The
10400
Fulmar Formation is between 500 and 1100 feet thick in the
30/16 30/17b Fulmar field area. The Fulmar structure is a dome anticline
10200 with prominent dipping flanks situated on a fault-bounded
10000
terrace which forms the western margin to the Central
Graben, adjacent to the Auk Ridge. The Fulmar structure
appears to show the influence of both halokinesis and

100
10

00
A extensional tectonics and is transected by a series of

40
10 2
10

0
northwest-southeast trending eastwards dipping normal

00
10
80

100
60
0
faults, parallel to the Auk Ridge. Subsidiary, westward-

00
6
hading antithetic faults are also present. Reservoir units are
progressively truncated towards crestal areas, particularly in
7
the north and northeast of the area. The overlying
Kimmeridge Clay Formation mudstones form the seal in the
OWC 10840 FULMAR
western flank of the field, while the eastern flank is
40
0
0
TOP FULMAR SAND unconformably overlain by Chalk Group sediments. The
10 06
0
1 DEPTH STRUCTURE OWC is at 10840 feet TVDSS within the main structure,
00
108
0 1 km although a fault-bounded block in the northern area of the
field has an OWC at 10590 feet TVDSS.
(Contours in feet TVDSS)

(After Valenti, Buckles and Stockbridge and Gray, 1991)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The principal reservoir horizon in the Fulmar field is the Oxfordian to and bivalve remains form stacked coarsening and fining upwards sequences. They
Kimmeridgian Fulmar Formation. These sediments accumulated in a tectonically are generally restricted to the upper part of the Fulmar Formation on the northern
active basin and are interpreted as storm-emplaced, shallow marine shelf and eastern flanks of the field (Clyde Member), and represent "distal", shallow
sandstones, possibly sourced from the Auk Ridge to the west. The Fulmar Formation marine shelf sandstones. A sand unit developed within the Kimmeridge Clay
comprises very fine grained, argillaceous, locally glauconitic, bioturbated Formation on the west flank of the field forms a subordinate reservoir horizon. These
sandstones, fine grained, generally massive or mottled sandstones and fine to sandstones are massive, graded and parallel laminated and are interpreted as
medium grained, massive, locally cross bedded sandstones. These sediments turbiditic sandstones deposited in a deeper marine, euxinic setting, below storm
represent upwards coarsening, major regressive sequences of "distal" to "proximal" wave base. The Kimmeridge Clay Formation mudstones separate these sandstones
shallow marine shelf sandstones (Forth, Usk and Lydell Members). Units of poorly from the Fulmar Formation.
sorted, fine grained, argillaceous, bioturbated sandstones with siliceous sponge

INTERPRETATIVE STRUCTURAL CROSS SECTION


Feet SW NE
AUK RIDGE SOUTHWEST CENTRAL GRABEN

TERTIARY
5000

PERMIAN
10000
Kimmeridge Clay Formation Fulmar Formation
Chalk Group
TRIASSIC

Zechstein Group

15000
0 1 2 3 km (After Johnson et al 1986)

REPRESENTATIVE WELL SECTION - 30/16-6


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

30/16-6 LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


Laterally extensive marine mudstone.
Storm generated, shallow marine sheet
sandstones possibly forming progradational
sequences.

Geometry
Thin, sheetlike sand units, stacked and
coalesced to form laterally extensive, sheet
Py geometry sediment body.
10400

and K
and K expected to be moderate in upper
part, becoming poor in lower part. Silica
cements in very fine and fine grained,
argillaceous sandstones have reduced
MIDDLE KIMMERIDGIAN

and K.
FULMAR FORMATION
HUMBER GROUP

10500

Si

Si
10600

Si
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
W
30/16-7 10000

30/16-6

Kimmeridge Clay Formation


30/16-FA13
Kimmeridge

Fulmar
Clay
Formation

1000
E 4
Ribble Mbr.
30/16-FA09
30/16-FA10

Chalk Group 7
6

Humber Group
UPPER JURASSIC
Avon Mbr.
Mersey 100
3 5
Member Clyde Mbr. 1

Fulmar Formation
2

PERMEABILITY (md.)
Lydell member
10

Usk
"Triassic Group"
Smith Bank Fm.

Member
TRIASSIC

Forth "Triassic Group"


Member
1. Some Lydell and Mersey
0
2. Some Lydell and Mersey, All of Usk
3. Some Lydell
0.1
100 4. All Ribble and Avon, some Lydell
5. Some Clyde
6. Forth
200 feet 7. Some Clyde

0.01
The reservoir sands in the Fulmar Field can be subdivided into reservoir zones on the 0 10 20 30 40
basis of lithofacies distribution. The uppermost unit of turbiditic sandstones forms a wedge
POROSITY (per cent.)
in the western flank of the field, and is referred to as the Ribble Member. The Avon Member
mudstones form a unit 30 to 40 feet thick separating the Ribble Member from the Fulmar
Formation. Five zones are recognised within the Fulmar Formation. The lower three units, The Ribble Member sandstones have the best reservoir quality
the Forth, Usk and Lydell members, relate to the major coarsening upwards sequence of with very good porosities of 25 to 30 per cent. and very good
sandstones recognised in the central and eastern parts of the area. The uppermost Mersey permeabilities of 1000 to 10000 md. Fulmar Formation sandstones
Member is present in the west and passes eastwards into the finer grained, more have moderate to very good porosities ranging from 10 to 30 per
argillaceous sandstones of the Clyde Member. Sandstones within zones comprise thin, cent. and very poor to very good permeabilities ranging from < 0.1 to
sheetlike units which are stacked and coalesced to form thicker, sheet geometry units. 40000 md. Distribution of porosity and permeability values is
Sediments rich in siliceous sponge remains may form more elongate, lenticular sediment principally controlled by primary textural characteristics and hence
bodies. No significant field-wide restrictions to vertical flow appear to exist within the Fulmar by facies. Thus the more argillaceous and finer grained Forth
Formation. Member generally has the poorest reservoir quality with poor to
moderate porosities (12-15 per cent.) and very poor permeabilities
(<0.1 md). The Usk and Clyde Members have moderate to good
porosities (15-20 per cent.) and poor to good permeabilities (1-1000
md). The Lydell and Mersey Members are generally the coarsest
grained sediments in the Fulmar Formation and exhibit the best
FLUID PROPERTIES reservoir quality. Porosities are good (20-30 per cent.) and
permeabilities are good to very good (500-4000 md). Bioturbated
The Fulmar field contains a moderately light oil. It has a moderately low viscosity and intervals rich in detrital clay are likely to contain dolomite cement
high GOR. It is undersaturated at initial reservoir conditions. A slight variation in fluid which further reduces porosities in the poor reservoir quality units.
properties with depth has been noted. Laboratory miscibility tests have shown the reservoir Dissolution of siliceous sponge spicules may locally enhance
fluid to be miscible with the Fulmar solution gas, miscibility pressure being about 3500 psi. reservoir quality.

800 1.5 0.7


B0
RESERVOIR PRESSURE
GOR

600 1.4 0.6


Two oil water contacts exist within the Fulmar field, at 10840 feet
TVDSS in the main part of the field and at 10590 feet TVDSS in a
GOR (scf/stb)

B0 (rb/stb)

fault bounded block in the northern area of the field. The main OWC
0 (cp)

400 1.3 0.5


appears to coincide with the spill point of the main structure. The
hydrocarbon columns appear to be in pressure communication. The
Fulmar field is approximately 1000 psi overpressured. A secondary
200 1.2 0.4
gas cap has been formed by gas injection since production
0
commenced.
@ 260 F
0 1.1 0.3
0 2000 4000 6000 8000
10000
PRESSURE (psig)

10200

0.28 psi/ft
CONTROLS ON RECOVERY
DEPTH (feet TVDSS)

10400
Overall recovery factors are expected to be very good in the Fulmar field, in excess of
50 per cent. Recovery is expected to be excellent in the Lydell sand, very good in the
Northern Area
Mersey sand, good in the Ribble and Usk sands and poor in the Clyde sand. The high
10600 OWC @ 10590 ft TVDSS
expected recovery is due to the following factors:

the high average permeability which varies from 5 md to 10 Darcies over the field; over 0.48 psi/ft

80 per cent. of the reservoir consists of high permeability sands. 10800 Main Field
the favourable water oil mobility ratio, calculated to be 0.86; this ensures a good OWC @ 10840 ft TVDSS
displacement under waterflood. 0.48 psi/ft
the moderate to high structural dip, varying between 25 in the south-west, 12 in the
11000
south and 8 in the east; this assists gravity segregation under combined water and gas
5500 5600 5700 5800 5900 6000
injection.
the misciblility between injected gas and the reservoir oil which assists oil displacement. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

A AD

UNITED KINGDOM
Water Depth 274 274

Fulmar
(feet)
Platform Type steel jacket steel jacket
Function drilling/production/ wellhead jacket
accommodation/
compression
Jacket Weight 12400 1406
(tonnes)
Total Weight 45310 3016
(tonnes)

Accommodation 229 0

Well Slots 36 6
Wells 33 5

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 200000


(bbl/day)

Oil Export ------offshore loading to tankers ----


Gas Export 20" x 288 km pipeline to St. Fergus

(A Shell Photograph)

@
FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 200 250


Liquid
Net Present Value 2,057.41 1,180.59 861.19 701.35 572.68 423.57 255.09
Net Present Value (Deflated) 2,762.67 1,539.80 1,084.50 854.53 668.50 452.20 208.00 Gas

@@@


Average Annual Daily Liquid Rate (Mbbl/day)
Profit/Inv Ratio 1.68 1.41 1.25 1.15 1.04 0.90 0.68

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 1.19 0.90 0.74 0.64 0.55 0.42 0.24 200
NPV/Unit Oil Equiv. 3.44 3.45 3.42 3.38 3.33 3.23 2.95 150
NPV/Unit Oil Equiv. (Deflated) 3.21 3.03 2.85 2.70 2.52 2.20 1.51

Payback Year 1983


Nominal Rate Of Return % 41.52 150
Real Rate Of Return % 27.68

Post Corporation Tax 100

@@@


Net Present Value 1,234.12 706.37 511.37 412.98 333.31 240.38 134.50
100
Net Present Value (Deflated) 1,573.04 832.75 554.72 413.77 299.57 166.70 17.16
Profit/Inv Ratio 1.01 0.85 0.74 0.67 0.61 0.51 0.36
Profit/Inv Ratio (Deflated) 0.68 0.49 0.38 0.31 0.25 0.16 0.02
NPV/Unit Oil Equiv. 2.06 2.06 2.03 1.99 1.94 1.83 1.55 50
NPV/Unit Oil Equiv. (Deflated) 1.83 1.64 1.46 1.31 1.13 0.81 0.12
50
Nominal Rate Of Return % 34.19
Real Rate Of Return % 20.77

Earnings Data
0 0
Gross Revenue 8,576.89 4,978.29 3,706.66 3,079.00 2,578.03 2,001.82 1,354.37 1980 1985 1990 1995 2000 2005
Royalty 844.09 494.14 367.51 304.54 254.11 196.03 130.88
Petroleum Revenue Tax 3,009.82 1,779.89 1,321.48 1,091.28 906.17 692.51 453.40 Year
Corporation Tax 823.29 474.22 349.82 288.36 239.37 183.19 120.60
Capital Expenditure 1,225.50 835.82 688.40 611.96 548.33 471.03 375.87
Operating Costs 1,389.69 649.53 435.37 340.36 270.06 195.67 120.97

Gross Revenue (Deflated) 12,530.66 7,581.44 5,761.92 4,844.60 4,101.28 3,231.73 2,231.58
Royalty (Deflated) 1,238.70 747.19 564.67 472.52 397.89 310.81 211.28
Petroleum Revenue Tax (Deflated) 4,453.57 2,672.68 2,003.11 1,664.50 1,390.60 1,072.09 711.44
Corporation Tax (Deflated) 1,189.63 707.05 529.78 440.75 368.94 285.50 190.84
Capital Expenditure (Deflated) 2,323.72 1,709.37 1,459.59 1,324.96 1,209.78 1,065.51 880.42
Operating Costs (Deflated) 1,652.94 837.03 585.68 469.99 381.98 285.82 184.74
CASH FLOW REPORT
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1977 0.0 0.0 0.0 15.0 0.0 0.0 0.0 -15.0 -232.4 0.0 0.0 0.0
1978 0.0 0.0 0.0 35.0 0.0 0.0 0.0 -35.0 -432.7 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1979 0.0 0.0 0.0 90.0 0.0 0.0 0.0 -90.0 -950.8 0.0 0.0 0.0
1980 0.0 0.0 0.0 130.0 0.0 0.0 0.0 -130.0 -1121.9 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1981 0.0 0.0 0.0 160.0 0.0 0.0 0.0 -160.0 -1085.3 0.0 0.0 0.0
1982 388.8 15.3 35.0 75.0 0.0 0.0 60.0 218.7 1226.5 56.0 0.0 0.0
Pre Corporation Tax 1983 867.3 68.7 50.0 40.0 117.6 0.0 191.9 585.3 2800.2 119.1 0.0 0.0
1984 1054.0 109.1 50.0 160.0 393.6 149.3 651.9 192.1 813.6 126.1 0.0 0.0
Net Present Value 113.14 100.36 93.39 89.04 84.91 79.11 70.42 1985 854.0 106.0 65.0 160.0 364.6 141.3 612.0 17.0 63.3 110.1 0.0 0.0
Net Present Value (Deflated) 104.80 92.53 85.91 81.80 77.91 72.46 64.33 1986 625.3 77.6 60.0 40.0 324.8 104.8 507.1 18.2 59.3 172.1 19.0 0.0
NPV/Unit Oil Equiv. 4.15 4.03 3.95 3.89 3.83 3.74 3.57 1987 722.9 69.7 60.0 20.0 378.3 53.1 501.1 141.8 413.8 170.1 40.0 35.5
1988 511.4 63.0 60.0 20.0 284.7 58.1 405.7 25.6 67.7 154.6 30.0 54.8
Post Corporation Tax 1989 493.9 48.5 75.0 25.0 233.2 40.1 321.8 72.1 165.1 116.4 26.0 36.5
1990 742.2 65.0 65.0 10.5 366.6 41.4 473.0 193.7 381.2 148.3 44.0 38.0
Net Present Value 63.15 53.40 48.10 44.79 41.66 37.28 30.75 1991 474.8 66.6 67.0 20.0 252.5 59.3 378.3 9.5 15.9 107.7 32.0 34.5
Net Present Value (Deflated) 56.33 46.99 41.97 38.86 35.93 31.84 25.78 1992 380.2 44.4 69.0 5.0 174.7 39.0 258.1 48.1 70.0 87.1 62.0 30.0
NPV/Unit Oil Equiv. 2.31 2.15 2.03 1.96 1.88 1.76 1.56 1993 301.4 34.9 70.0 15.0 109.4 29.7 174.0 42.4 55.1 59.1 61.0 61.8
1994 248.3 27.3 70.0 25.0 57.0 30.7 115.0 38.3 45.4 47.1 41.0 83.6
Earnings Data 1995 194.8 19.1 70.0 60.0 21.0 26.5 66.6 -1.8 -1.9 28.2 24.7 107.4
Total To Start Of Discounting ( 1/JAN/1996)
Gross Revenue 717.59 635.77 594.72 570.10 547.41 516.55 472.26 7859.3 815.2 866.0 1105.5 3077.9 773.3 4716.8 1171.0 2352.0 548.2 138.6 176.0
Royalty 28.88 29.22 29.03 28.79 28.50 27.96 26.94
Petroleum Revenue Tax -68.12 -44.35 -34.24 -28.78 -24.13 -18.43 -11.46 1996 172.3 13.0 68.3 120.0 2.5 22.4 37.9 -54.0 -51.9 21.6 17.8 105.8
Corporation Tax 49.99 46.96 45.30 44.25 43.25 41.83 39.67 1997 150.5 10.4 69.2 0.0 0.0 13.4 23.8 57.6 49.3 16.4 12.4 96.2
Capital Expenditure 120.00 117.11 115.47 114.42 113.39 111.90 109.54 1998 127.6 8.2 70.2 0.0 8.3 10.9 27.4 29.9 22.8 12.5 8.3 83.8
Operating Costs 523.69 433.43 391.07 366.63 344.75 316.00 276.81 1999 105.3 6.0 71.3 0.0 4.1 2.9 13.0 21.1 14.3 9.6 5.2 69.2
2000 89.2 4.2 64.4 0.0 0.0 2.4 6.6 18.3 11.0 7.2 1.1 61.5
Gross Revenue (Deflated) 663.28 590.95 554.51 532.60 512.36 484.77 445.03 2001 40.9 1.8 36.6 0.0 0.0 1.6 3.4 0.9 0.5 0.0 0.0 44.8
Royalty (Deflated) 29.82 29.48 29.01 28.64 28.22 27.57 26.41 2002 31.8 0.0 25.4 0.0 0.0 -2.6 -2.6 9.1 4.4 0.0 0.0 33.6
Petroleum Revenue Tax (Deflated) -49.14 -31.37 -23.85 -19.78 -16.34 -12.12 -6.99 Remain
Corporation Tax (Deflated) 48.48 45.54 43.94 42.93 41.97 40.62 38.55 2003 0.0 -14.8 118.4 0.0 -83.0 -0.9 -98.7 -19.7 -8.4 0.0 0.0 20.6
Capital Expenditure (Deflated) 120.00 117.11 115.47 114.42 113.39 111.90 109.54
Operating Costs (Deflated) 457.80 383.22 347.96 327.53 309.17 284.96 251.73 Total 717.6 28.9 523.7 120.0 -68.1 50.0 10.7 63.2 42.0 24.6 16.4 188.1

These cash flows include Fulmar field plus tariff income from Nelson, Gannet, Clyde, Leven and Medwin. Some tariff streams
extend beyond 2002 when system availability becomes uncertain
'J' STRUCTURE 48/15b SUMMARY
British Gas
AUDREY 3
3,3A 2
1
The Galleon field is located in the Sole Pit area of the Southern Gas
Basin approximately 120 km east of Theddlethorpe. The structure was
6 2 discovered by Well 48/20a-1 in 1969 (gas shows) and Well 48/15a-5 in
3
1985 (successful gas test). The structure has been further appraised by
1 ENSIGN 1
three wells which show that the field extends across Blocks 48/14,
BARQUE 4 48/15 and 48/20. Furthermore, the southern area of the field comprises
EXTENSION a separate fault block, namely Frigate, which has a much shallower gas
2
water contact to that of the main field. Development comprises two
4 9 phases. The first phase of the field development was completed in
5
49/11 1994, with the installation of a minimum facilities platform in the
48/14 Shell 48/15a Conoco Phillips
southeastern part of the field. This is controlled from the Clipper
48/19a Shell
11 platform. A second phase will occur before the end of the decade with
6 1
5
the installation of a further platform in the northwestern area of the field
5 2 following further reservoir appraisal work. Gas is exported to Bacton.
5 Production commenced as planned in October 1994.
1 The current interests in the Galleon field in per cent. are:-
CLIPPER
2 3 11
Conoco 10.00
3 GALLEON Esso 40.00
4
Powergen 10.00
3 4
CLIPPER RD/Shell* 40.00
8
SOUTH 7
7,10,12
* operator
48/19c
Shell
8 2 Currently the unitisation split for Galleon is Shell 40 per cent, Esso
6 9 40 per cent., Conoco 10 per cent. and Powergen 10 per cent. This is
ANGLIA 49/16
48/19b Ranger 48/19d Amerada 48/20 Shell N.VALIANT Conoco subject to redetermination.

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Galleon field is situated in the Sole Pit area in the western area
of the Southern North Sea. The field is in 82 feet of water, 80 kms
Gas Gravity S.G. (air =1) 0.594 northeast of Bacton on the Norfolk Coast. It is surrounded by existing
Gas Expansion Factor (vol/vol) 0.0045 fields, including the undeveloped Ensign discovery to the north, Barque
Reservoir Pressure, Pi (psia) 3813 to the northwest, Clipper to the southwest, North Valiant to the
at Datum Depth of (ft TVDSS) southeast and finally Audrey to the northeast, all containing gas in the
Reservoir Temperature (F) 174 Rotliegendes. Reservoir quality in the area is typically moderate to poor.
Poor permeability fields are found to the southwest, in the area of the
Rock Properties Sole Pit inversion axis, and to the north, where the reservoir becomes
progressively more argillaceous. Reservoir quality typically improves to
Rock Type Sandstone the southwest, where the reservoir becomes dominated by better
Stratigraphic Unit Rotliegendes Group quality sandstone facies.
Geological Age Lower Permian
Porosity Range (per cent.) 8-20
Permeability Range (md) 0.1-50 predominantly
Average Water Saturation (per cent.)
Gas Water Contact (ft TVDSS) 8420 (8258 in Frigate fault block)
Depth to Top of Structure (ft TVDSS) 7800

Reserves

Total Gas Reserves (Bcf) 1400


Est. Gas Production to 31.12.95 (Bcf) 35.1 FIELD DESCRIPTION
Remaining Gas Reserves (Bcf) 1364.9
The Galleon field is a complex dip and fault closed structure. The
reservoir lithology consists of a complex of poor reservoir quality lake
Production
margin sabkha and ephemeral fluvial sands, together with moderate
quality aeolian sands of the Rotliegendes Leman Sandstone Formation.
Water depth (feet) 80
The better quality aeolian sands are developed preferentially in the
Production Start Date October 1994
southeastern area of the field. This sequence is approximately 1000
Peak Gas Production (yrly average) (MMscf/day) 180 feet thick at Galleon. Porosity and permeability are typically poor, locally
Planned for 2000 moderate.
Platform(s) 2 The first phase of the Galleon development, completed in 1994, has
Number of Wells 12 planned for phase one, a 15-slot, minimum facilities wellhead platform (PM) located in the
possibly eight for phase two southeastern part of the field. The platform is remotely controlled and
Gas and NGL Export via Clipper to Bacton exports gas to a new platform (PM) bridge linked to the existing Clipper
complex 13 km away. The new installation has provided metering and
compression. Gas is then transported through the 24 inch diameter Sole
Pit export line to Bacton. The field started up in October 1994, at a rate
of 190 MMscf/day and is expected to plateau at 130 MMscf/day with a
field life of approximately 30 years.
The second phase of development will involve the installation of a
second satellite wellhead platform to be placed in the northwestern part
of the field. This will also be tied back to, and controlled from, the
Clipper platforms. The exact size, location and timing of phase two will
depend on the results of ongoing appraisal work including the
evaluation of 3D seismic data, production experience from the present
Galleon wells and gas sales opportunities. First gas from the phase two
platform is expected in late 1998/early 1999 and it is anticipated that a
further eight horizontal wells will be drilled to fully exploit the area.
Production from these additional wells could boost plateau levels to 180
MMscf/day.
STRATIGRAPHY AND STRUCTURE

The Galleon field is located in the Sole Pit area of the Southern North Sea. The TVDSS, and a maximum gas column of approximately 600 feet. The Galleon

UNITED KINGDOM
area is characterised by northwest to southeast trending faults giving rise to a accumulation is separated from the Frigate fault block by a fault which seals and
complex of elongate fault blocks at Rotliegendes Group level which is reflected in the supports a markedly different gas water contact between the two blocks.

Galleon
field's long axis being parallel to this grain. The accumulation is delineated by both The reservoir is the Lower Permian Rotliegendes Group sandstone. The
normal faulting and dip closure with the reservoir top at approximately 7800 ft overlying evaporitic Zechstein Group acts as a seal.

INTERPRETATIVE STRUCTURAL CROSS SECTION


48/14-4 48/20a-1 48/20a-5
Feet
0
TERTIARY
1000
JURASSIC
UPPER CRETACEOUS
2000

3000
TRIASSIC
4000 Haisborough Group

5000

6000 TRIASSIC Bacton Group

7000
PERMIAN Zechstein Group
8000
PERMIAN Rotliegendes Group
9000
CARBONIFEROUS
10000 0 2 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Rotliegendes Group represents a series of clastic facies types, deposited The reservoir sequence is capped by a generally massive sandstone (the
within a semi-arid environment. Weissliegend) which tends to be well cemented and of poor reservoir quality. The
Three main facies assemblages occur at Galleon, namely aeolian, fluvial and layer is interpreted to represent a partial reworking of sands by the influx of the
sabkha. The aeolian deposits comprise dune and interdune sandstones, and are Zechstein Sea.
typically clean, well sorted sandstones forming the main productive layers in an Four main reservoir units can be recognised based on facies characteristics. The
otherwise poor quality reservoir. uppermost is a thin sand interpreted to represent sand reworking during Zechstein
The fluvial deposits are typically clean to argillaceous, generally poorly sorted transgression. Below this, the upper part of the reservoir is dominated by
sandstones and comprise relatively poor quality reservoir. interbedded fluvial and sabkha (in the north) and aeolian and sabkha (in the south)
The sabkha deposits are typically very poorly sorted, muddy sandstones with sediments. Below this unit is a thick sequence of aeolian dune sands, and at the
poor reservoir quality. base is a fluvial dominated unit.

REPRESENTATIVE WELL SECTION - 48/14-4

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95

AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C

40 0 0.01 1000 5 25 45 -15


Evaporites and anoxic shale

Probable reworked ZECHSTEIN GROUP


KUPFERSCHIEFER FM
sandstones

8000

Fluvial wadi sandstones and sabkha


sediments

Geometry
48/14-4 Laterally impersistent fluvial sands, passing
8050

laterally into better quality aeolian sands

and k
Moderate in fluvial sands, improving
laterally into aeolian sands
8100
LEMAN SANDSTONE FORMATION
ROTLIEGENDES GROUP

8150
PERMIAN

Interbedded sabkha and minor aeolian


() dune sandstones

Geometry
8200

Lenticular to sheet geometry muddy sabkha


and dune sands

and k
Good in clean aeolian sands, and poor in
muddy, poorly sorted sabkha sands
8250
8300

Aeolian dune
Geometry
Sheet geometry dune complex

and k
Good quality clean, well sorted sandstones
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

NW SE 10000
48/14-4 48/15a-5 48/20-1 48/20a-5 48/20a-3A

Galleon
1 3

Rotliegendes Group
1000

100
2 5

PERMEABILITY (md.)
0
1. Zechstein Group
2. Coal Measures Group
Fluvial and Interdune / Sabkha deposits 10
3. LATE PERMIAN
Aeolian dune deposits 4. EARLY PERMIAN
5. CARBONIFEROUS
600 ft

The reservoir can be divided into a broad four fold zonation based on the abundance of
aeolian, fluvial and sabkha deposits.
These four units consist of a basal fluvial-dominated section, overlain by an aeolian dune
sandstone unit, a mixed fluvial, dune and sabkha unit and thin uppermost marine reworked
0.1
sand. Reservoir quality is best in the aeolian sands developed in the middle two units.
These aeolian dune deposits are best developed in the southeast part of the field where
they are thicker and more abundant. They gradually decrease in abundance to the
48/14-4
northwest as the aeolian influence decreases and a more fluvial and sabkha dominated
environment prevails. 48/20a-5
Fluvial deposits are most common in the lower part of the reservoir where they 0.01
unconformably overly the Carboniferous sequence and vary in thickness from 190 to 230 0 10 20 30

feet. The sands display poor reservoir quality. The sabkha deposits are more abundant in POROSITY (per cent.)
the upper section of the reservoir. These sands also have poor reservoir quality.
The zones have overall sheetlike geometry across the field, showing a general facies Porosity values are typically poor to moderate, mainly in the
controlled improvement in reservoir quality towards the southeast. range 5 to 18 per cent. Permeability values are typically poor to at
Thin sabkha facies, muddy sandstones form correlatable sheet geometry units in the best moderate, ranging from 0.1 md to approximately 50 md in the
upper part of the reservoir, and will therefore influence vertical permeability, and possibly better quality southeast. Locally, values up to 1000 md occur, but
depletion characteristics on production. these are individual core measurements in otherwise poor to
moderate quality reservoir.
The main control on porosity and permeability magnitude and
trends is the primary sedimentary texture (grain size, sorting, clay
content) and therefore the initial depositional environment. The
FLUID PROPERTIES upper part of the reservoir, which contains the most sabkha deposits,
displays porosities varying from 5 per cent. in the northwest to 13 per
The Galleon field contains a dry gas with a density of 0.594 (air=1). The gas expansion cent. in the southeast, as the sabkha and fluvial influence diminishes
factor at initial conditions (3813 psia and 174 degrees F) is 223 scf/rcf. and aeolian sands become more common. Permeabilities show a
similar increasing trend.
The middle part of the Rotliegendes is dominated by good quality
aeolian dune deposits and this is reflected in generally good
Composition
Mol % Mol Wt
porosities of between 10 per cent. (northwest) and 15 per cent.
(southeast) and permeabilities between 10 to 50 md (northwest) to
N2 1.34 locally 100's md (southeast).
CO2 0.35
C1 94.32 The lower, more fluvial zone displays poor reservoir
C2 2.82 characteristics with porosities ranging from 2 per cent. to 12 per
C3 0.54 cent. and very low permeabilities.
iC4 0.09
nC4 0.11 The data displayed in the cross-plot shows Well 48/14-4 which is
iC5 0.05 located in the northwestern part of the field, where porosity and
nC5 0.04 permeability characteristics are at the low end of the field range,
C6 0.06
C7 0.12 107.9 (C7+) while Well 48/20a-5 displays more favourable reservoir
C8 0.08 characteristics.
C9 0.03
C10 0.01
C11 0.01 RESERVOIR PRESSURE
C12+ 0.03 139
100.00 17.209
Relative to a hydrostatic gradient of 0.45 psi/ft, the Galleon field
is normally pressured.
Pressure data within the field show that marked gas and water
400 1.0 0.025
pressure differences occur between the Frigate and Galleon field
fault blocks, giving rise to a shallower gas water contact of 8258 feet
GAS EXPANSION FACTOR (scf/rcf)

TVDSS in the Frigate structure. Within the main Galleon field area,
GAS DEVIATION FACTOR, Z

300 pressure data indicate a gas water contact of 8420 feet TVDSS.
GAS VISCOSITY (cp)

z factor 0.020

Eg 7800
200 1.0 g

0.015
100
8000
0.071 psi/ft
Based on Constant Mass Study
for Well 48/15a-5
DEPTH (feet TVDSS)

0 0.9 0.010
0 1000 2000 3000 4000 8200
PRESSURE (psig) Frigate GOC @ 8258 ft TVDSS

8400 Galleon GOC @ 8420 ft TVDSS

CONTROLS ON RECOVERY 0.44 psi/ft

8600
The Galleon field comprises generally poor quality reservoir which is better in the
southeastern part of the field and is also locally enhanced by the presence of aeolian
reservoir facies. Recovery will be dependent on the success of highly deviated/horizontal
wells in establishing long term commercially sustainable flow rates and connecting with the 8800
better quality but localised aeolian reservoir facies. A low gas recovery factor in the range 3725 3775 3825 3875 3925 3975 4025 4075
of 50-60 per cent. is expected. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

PN PM

UNITED KINGDOM
Water Depth 80 70

Galleon
(feet)
Platform Type Steel jacket Steel jacket
Function wellhead production platform metering &
compression

Jacket Weight 880 1100


(tonnes)

Total Weight 2700 4400


Photograph/Schematic (tonnes)
Not Available
Accommodation not normally manned none
Well Slots 15
Wells planned 12

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput 180


(MMscf/day)

y
Gas Export 24 x 72 km to Bacton
teminal via Clipper PM
platform

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 2.0 200


Liquid
Net Present Value 1,947.07 765.73 455.56 324.40 230.67 135.62 46.92
Net Present Value (Deflated) 1,137.94 465.52 275.66 192.56 131.86 69.04 9.24 Gas

yyyy
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 3.99 2.12 1.47 1.16 0.90 0.60 0.25
Profit/Inv Ratio (Deflated) 2.44 1.31 0.90 0.69 0.51 0.30 0.05
NPV/Unit Oil Equiv. 8.25 7.07 6.20 5.58 4.92 3.89 2.08 1.5 150
NPV/Unit Oil Equiv. (Deflated) 7.37 5.91 4.92 4.22 3.50 2.39 0.48

Payback Year 2000


Nominal Rate Of Return % 25.46
Real Rate Of Return % 21.21

Post Corporation Tax 1.0 100

yyyy
Net Present Value 1,304.53 510.02 297.38 206.72 141.63 75.41 13.64
Net Present Value (Deflated) 763.04 302.09 170.19 112.20 69.80 25.95 -15.41
Profit/Inv Ratio 2.67 1.41 0.96 0.74 0.55 0.33 0.07
Profit/Inv Ratio (Deflated) 1.64 0.85 0.55 0.40 0.27 0.11 -0.08
NPV/Unit Oil Equiv. 5.52 4.71 4.05 3.55 3.02 2.16 0.60 0.5 50
NPV/Unit Oil Equiv. (Deflated) 4.95 3.83 3.03 2.46 1.85 0.90 -0.79

Nominal Rate Of Return % 21.83


Real Rate Of Return % 17.70

Earnings Data
0 0
Gross Revenue 4,439.09 1,798.08 1,146.98 877.40 685.99 491.09 303.06 1990 2000 2010 2020 2030
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 1,077.18 335.81 177.28 118.42 80.41 46.26 19.64 Year
Corporation Tax 642.53 255.71 158.18 117.69 89.04 60.21 33.28
Capital Expenditure 488.40 361.13 309.04 280.67 256.16 225.15 184.80
Operating Costs 926.44 335.41 205.09 153.91 118.75 84.06 51.70

Gross Revenue (Deflated) 2,617.47 1,204.00 817.03 647.38 521.96 388.51 252.00
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 517.28 171.34 93.40 63.61 43.97 25.90 11.36
Corporation Tax
Capital Expenditure
(Deflated)
(Deflated)
374.90
465.50
163.43
354.65
105.47
306.88
80.35
280.32
62.07
257.10
43.09
227.37
24.65
188.16
CASH FLOW REPORT
Operating Costs (Deflated) 496.75 212.50 141.09 110.89 89.03 66.20 43.23 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1991 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
1992 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -14.6 0.0 0.0 0.0
1993 0.0 0.0 0.0 80.0 0.0 0.0 0.0 -80.0 -103.9 0.0 0.0 0.0
1994 17.7 0.0 6.4 110.0 0.0 0.0 0.0 -98.7 -116.9 0.1 26.1 0.0
1995 46.4 0.0 9.6 20.0 0.0 0.0 0.0 16.8 17.9 0.1 70.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
64.1 0.0 16.0 220.0 0.0 0.0 0.0 -171.9 -217.4 0.1 35.1 0.0

1996 89.5 0.0 14.0 20.0 0.0 0.0 0.0 55.5 53.4 0.3 130.0 0.0
1997 93.1 0.0 14.6 31.2 0.0 0.0 0.0 47.3 40.5 0.3 130.0 0.0
1998 96.8 0.0 15.1 97.4 0.0 9.7 9.7 -25.5 -19.5 0.3 130.0 0.0
1999 100.6 0.0 17.4 61.9 0.0 10.8 10.8 10.5 7.1 0.3 130.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 2000 144.8 0.0 22.4 17.6 0.0 10.2 10.2 94.6 57.2 0.4 180.0 0.0
2001 150.5 0.0 23.3 8.5 0.0 26.0 26.0 92.7 49.8 0.4 180.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 2002 156.5 0.0 24.2 0.0 0.0 30.5 30.5 101.7 48.7 0.4 180.0 0.0
2003 162.6 0.0 25.2 0.0 0.3 35.0 35.3 102.1 43.5 0.4 180.0 0.0
Pre Corporation Tax 2004 169.1 0.0 26.2 0.0 3.9 38.8 42.7 100.2 38.0 0.4 180.0 0.0
2005 175.8 0.0 27.3 0.0 8.4 40.7 49.1 99.4 33.5 0.4 180.0 0.0
Net Present Value 2,119.02 1,168.55 872.80 734.24 626.85 506.31 373.28 2006 172.6 0.0 27.3 0.0 49.8 42.3 92.2 53.1 15.9 0.3 170.0 0.0
Net Present Value (Deflated) 1,321.67 798.54 622.46 536.48 467.90 388.51 297.28 2007 169.4 0.0 27.3 0.0 57.5 25.7 83.2 58.9 15.7 0.3 160.6 0.0
NPV/Unit Oil Equiv. 9.20 8.84 8.59 8.41 8.23 7.97 7.56 2008 166.4 0.0 27.5 0.0 55.3 26.0 81.3 57.5 13.7 0.3 151.7 0.0
2009 163.4 0.0 27.6 0.0 53.2 26.2 79.4 56.4 11.9 0.3 143.2 0.0
Post Corporation Tax 2010 160.4 0.0 27.7 0.0 51.1 26.2 77.3 55.4 10.4 0.3 135.3 0.0
2011 157.5 0.0 27.7 0.0 49.0 26.2 75.2 54.6 9.1 0.3 127.8 0.0
Net Present Value 1,476.48 842.20 640.38 544.71 469.93 385.21 290.46 2012 154.6 0.0 27.9 0.0 60.6 26.1 86.8 40.0 6.0 0.2 120.7 0.0
Net Present Value (Deflated) 946.78 589.96 467.50 407.07 358.52 301.84 235.94 2013 151.8 0.0 28.0 0.0 62.2 20.4 82.6 41.2 5.5 0.2 114.0 0.0
NPV/Unit Oil Equiv. 6.41 6.37 6.30 6.24 6.17 6.07 5.88 2014 149.1 0.0 28.3 0.0 60.7 20.1 80.7 40.0 4.7 0.2 107.7 0.0
2015 146.3 0.0 28.4 31.8 46.3 19.6 65.9 20.1 2.1 0.2 101.7 0.0
Earnings Data 2016 143.7 0.0 28.7 0.0 54.8 21.9 76.7 38.3 3.6 0.2 96.0 0.0
2017 141.1 0.0 28.9 0.0 56.3 16.8 73.2 39.0 3.2 0.2 90.7 0.0
Gross Revenue 4,375.04 2,228.32 1,617.26 1,344.04 1,138.92 916.23 680.08 2018 138.5 0.0 29.4 0.0 54.8 16.9 71.8 37.4 2.8 0.2 85.7 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2019 136.0 0.0 29.6 0.0 53.5 16.8 70.3 36.1 2.4 0.2 80.9 0.0
Petroleum Revenue Tax 1,077.18 428.59 260.49 190.72 141.71 93.05 48.88 2020 133.5 0.0 30.0 0.0 52.0 16.7 68.7 34.8 2.0 0.2 76.4 0.0
Corporation Tax 642.53 326.35 232.43 189.54 156.92 121.10 82.82 2021 131.1 0.0 30.4 0.0 50.6 16.4 67.0 33.7 1.8 0.1 72.2 0.0
Capital Expenditure 268.40 219.82 199.78 188.65 178.83 165.98 148.20 2022 128.8 0.0 30.8 0.0 49.2 16.1 65.4 32.6 1.5 0.1 68.2 0.0
Operating Costs 910.44 411.36 284.19 230.42 191.53 150.89 109.72 2023 126.4 0.0 31.2 0.0 47.9 15.8 63.7 31.6 1.3 0.1 64.4 0.0
2024 124.1 0.0 31.5 0.0 46.5 15.4 62.0 30.6 1.1 0.1 60.8 0.0
Gross Revenue (Deflated) 2,551.07 1,467.65 1,129.93 971.01 847.23 707.21 550.21 2025 121.8 0.0 32.1 0.0 45.1 15.1 60.2 29.5 1.0 0.1 57.4 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2026 119.6 0.0 32.8 0.0 43.7 14.6 58.3 28.5 0.8 0.1 54.3 0.0
Petroleum Revenue Tax (Deflated) 517.28 218.67 137.24 102.45 77.49 52.10 28.28 Remain
Corporation Tax (Deflated) 374.90 208.58 154.97 129.41 109.38 86.67 61.35 2027 0.0 0.0 87.7 0.0 -35.7 -0.6 -36.3 -51.4 -1.3 0.0 0.0 0.0
Capital Expenditure (Deflated) 232.00 196.62 180.77 171.64 163.40 152.38 136.79
Operating Costs (Deflated) 480.11 253.81 189.45 160.44 138.44 114.21 87.86 Total 4,375.0 0.0 910.4 268.4 1,077.2 642.5 1,719.7 1,476.5 467.5 2.7 1,364.9 0.0

These cash flows include Galleon field only


21/24 Texaco 21/25 Shell 22/21 Shell SUMMARY
12
9A 5,5RE
The Gannet, Guillemot and Teal fields are located in Quadrants 21 and 22
4 some 190 km east of Aberdeen in the Central Graben, UK sector of the North
8 TEAL Sea. The Guillemot fields (A,B,C and D) lie to the southwest of Gannet (A,B,C
GANNET D and D) and contain oil, gas and gas condensate in Eocene, Paleocene and
11 Jurassic reservoirs. Teal lies due north of Guillemot A in Block 21/25.
1,1A
4 Gannet A was discovered by Well 22/21-3 in 1978 and encountered oil and
TEAL gas in Eocene sands. Gannet B was discovered by Well 21/25-1 in 1979 and
8 tested gas and gas condensate from Eocene and Paleocene sands. Gannet C
SOUTH 10
was discovered in 1982 by Well 21/30-6A and produced oil from Paleocene
Forties sands. Gannet D was discovered in August 1987 by Well 22/21-5RE and
GANNET B produces oil and gas from Eocene and Paleocene sands.
B1 4 7
1 1 5 The Guillemot field was discovered in 1978 by Well 21/24-1 (Guillemot B was
3 7 GANNET A formerly Gannet West) which encountered oil in an areally extensive Eocene
6 A
3 3 2 reservoir. The following year Well 21/25-2 also encountered oil in Jurassic sands
2 2 5 B2 (Guillemot A). Guillemot C was discovered in 1982 by Well 21/30-4 (Eocene) and
8 6 8 10 7 C1 2 22/26a Shell Guillemot D (Triassic) by Well 21/30-13 in 1988.
7 C3
3 C2 Original plans involved development of the entire Gannet-Guillemot complex
GUILLEMOT B 9,9A 6 together with the Kittiwake field to the north. Following the oil price collapse in
5 C4 GANNET C 1986, it was decided to develop Kittiwake in isolation. Kittiwake subsequently
GUILLEMOT A
gained Annex B approval in 1987 and start up was in September 1990.
GUILLEMOT C Teal was discovered by Well 21/25-8 in 1989, with Teal South located by Well
19 2 GUILLEMOT D 21/25-10 drilled in 1992. Original development plans for the Teal complex
4 13,13A 22/26b Mobil
involved a Floating Production Storage and Offtake Facility (FPSO) used in
1 1 conjuntion with the Mallard field to the northwest. However, the development will
15
21/29a Texaco 11 now take place through the Guillemot field instead.
3 14
2 A revised scheme for Gannet development received Annex B approval in
17 1989. The development utilises a single platform in the Gannet A area with the
1
12 16 other Gannet accumulations developed using subsea manifolds. First production
18 0 6 km occurred in October 1992 from the B and C subsea satellites with output from D
21/29c Shell
9 GANNET and the main field A starting in 1993. Oil is piped through Gannet A to Fulmar
21/29b Shell SW 21/30 Shell FSU, and gas via the Fulmar gas line to St. Fergus. A number of nearby wells in
Blocks 21/19, 29/2a, and 22/27 have discovered oil and may utilise the existing
Gannet infrastructure and facilities. The Gannet South West accumulation with its
heavier oil is thought to be uncommercial.
The Guillemot, Teal and Teal South fields will be exploited via multiwell
subsea completions tied back to a FPSO facility located midway between Teal
and Guillemot A. This will make the FPSO the largest of its kind dealing with
output from the whole Guillemot complex and the Teal area. Other discoveries
such as Mallard and Bligh may also be tied in at a later date.
First production from Teal and Guillemot A is anticipated at the end of
1996/early 1997, with start up from Teal South sometime in 1999. Guillemot B
and D are not expected onstream until the end of the century due to the large
areal extent of the reservoir (especially the Eocene reservoir B) requiring further
appraisal.
RESERVOIR CHARACTERISTICS The current interests in the Gannet fields in per cent. are:-
Fluid Properties GANNET A GUILLEMOT A RD/Shell UK Exploration and Production Ltd * 50.00
Eocene Jurassic Esso Exploration and Production Ltd 50.00

Oil Gravity (API) 40 37 The current interests in the Guillemot fields in per cent. are:-
GOR/CGR (scf/stb)/(bbl/MMscf) 380
Saturation Pressure, Pb/Pd (psig) c.3300 c.6000 Exxon 35.86
Formation Volume Factor at Pi (rb/stb) RD/Shell* 35.86
Oil Compressibility (vol/vol/psi) Chevron 11.25
Texaco 11.25
Original Reservoir Pressure, Pi (psig) 3300 6000
Deminex 2.15
At Datum Depth of (ft TVDSS) 7300 8400 Kerr McGee 2.21
Reservoir Temperature (F) 222 Oryx 1.42
Rock Properties operator *

Rock Type -------------------- Sandstone -------------------- Most of the Guillemot reserves lie within the Shell/Esso blocks but 10 per
Stratigraphic Unit Tay Formation Fulmar Formation cent. also lies in Blocks 21/24 and 21/29a operated by Texaco. No unitisation
Geological Age Eocene Upper Jurassic agreement has been made.
Porosity Range (per cent.) 20-35 10-35
Permeability Range (md) 1-6000 0.1-1000 LOCAL SETTING
Connate Water Saturation (per cent.)
Gas Oil Contact (ft TVDSS) c.7250 The Gannet, Guillemot and Teal fields are located on the western platform of
the Central North Sea Graben straddling Blocks 21/25, 22/21, 21/30 and 22/26a.
Oil Water Contact (ft TVDSS) c.7300 8456 (south)
To the north in Block 21/18 Kittiwake contains oil in Jurassic Fulmar sands and
8600 (north) to the northeast in Block 22/17 and 18 Montrose and Arbroath contain oil in the
late Paleocene Forties Formation.
Reserves GANNET GUILLEMOT*
FIELD DESCRIPTION
Total Oil and Reserves (MMstb) 160 92
Total Gas Reserves (Bcf) 450 45 The reservoir within the Gannet A field occurs in Eocene Tay sandstones.
Est. Oil Production to 31.12.95 (MMstb) 54 These are stratigraphically closed to the west and dip closed in all other
Est. Gas Production to 31.12.95 (Bcf) 85 directions. It contains a gas column of about 100 feet in thickness underlain by
Remaining Oil Reserves (MMstb) 106 92 an oil column of about 50 feet in thickness.
Remaining Gas Reserves (Bcf) 365 45 Net to gross ratios within the Tay Formation are moderate to good in Gannet
A and B, averaging between 0.5 and 0.7 and decreasing to the west. In the
* Reserves include Teal and Teal South Paleocene formations net to gross ratios are generally good, increasing from
about 0.65 in the north to 0.8 in the east.
Gannet A, B, C and D are being depleted by natural drive, with gas lift utilised
Production to enhance oil recovery from A, C and D if necessary. Excess gas can be
reinjected if required. The use of horizontal wells may reduce the total number of
Water depth (feet) -------------------------- 312 --------------------------- wells required, for example, Gannet C has been developed with only seven
Production Start Date 1992 end 1996/early 1997 horizontal wells required instead of the expected ten deviated wells. When
Peak Production (Oil and NGL) (stb/day) 65000 50000 completed the Gannet complex will constitute the largest subsea development in
Platform(s) Platform & 3 satellite one floating the UK sector of the North Sea.
well clusters The Guillemot A field reservoirs occur in the Eocene and also in the Upper
Number of Wells - Producers 36 planned 4 (plus 2 on Teal Jurassic Fulmar Formation. Guillemot B is an extension of the Guillemot A
and 1 on Teal South) Eocene reservoir which contains oil in a low relief structure dipping to the south
Water injectors 2 (and 1 on Teal with complex combined structural and stratigraphic traps. The Jurassic Fulmar
and 1 on Teal South) Sand reservoir in Guillemot A is within an anticlinal structure containing saturated
Oil and NGL Export Pipeline to Fulmar and offshore oil. Guillemot D contains oil in the Triassic. Guillemot C (Eocene) contains
heavier oil (21 API) and is less productive and probably uneconomic.
loading
The new discovery Bligh lies approximately 5 km east in Block 21/20a. This
In Fulmar line to St Fergus lies in close proximity to the Christian prospect to the north in Block 21/20b as
well as Mallard in 21/19. All three accumulations may be developed through
Teal's FPSO or indeed Kittiwake, although no plans exist at present and any
decision made will be subject to further appraisal.
Gannet & Guillemot
STRATIGRAPHY AND STRUCTURE
GUILLEMOT A GANNET A
The Gannet fields are situated on both sides of the TOP FULMAR SANDS TOP TAY

UNITED KINGDOM
northwest-southeast trending Gannet Fault which Unconformity
DEPTH STRUCTURE DEPTH STRUCTURE
separates the Central Graben from the Long Forties
Platform. Hydrocarbons are contained within two OWC 8600
0 2 km 0 2 km
stratigraphic levels, the Upper Paleocene Forties Formation (Contours in feet TVDSS) (Contours in feet TVDSS)
and sandstones within the Sele, Balder and Horda
Formations (Tay Formation : Nar and Breydon Members).
Gannet A is the largest structure of the Gannet fields. 3

90
00
The Tay Formation structure is a simple elongated
2
northwest-southeast trending low-relief anticline with dips

85
4

00

95
of 1-4 degrees. Closure maybe partly stratigraphic due to

00

75
00
5710'N
pinch out of Tay Upper Sands onto the salt-induced highs of
850

80
Gannet B and C. 0 5

00
8
Gannet B contains both sequences. Both owe their

O
GO
reservoir structure to the salt diapir which pierces them. The

W
C7

72

C
25

8500

73
0

50
Tay Formation is dip closed against it, although some 90

00
00 72
00
stratigraphic closure may occur to the southwest. The 3
Forties structure is completely dip closed. The two
reservoirs are vertically sealed from each other by the Sele 3

71
2
5710'N

50
Formation shales. 850
0
The Gannet C Forties Formation reservoir displays a LIMIT OF

720
OWC 8456
circular dip closure around a narrow piercing salt diapir. The TAY SANDS

0
reservoir is sealed by the overlying Sele Formation shales. 2

900
Guillemot A is on the upthrown side of the Gannet Fault. 00

0
90
Hydrocarbons are contained within three sequences, the
Jurassic Fulmar sands, the Paleocene Forties Formation
and the Eocene Tay Formation. 048'E 1 00'E

The Fulmar accumulation is an anticlinal structure (After Armstrong, Ten Have Johnson, 1987)
trending north northwest-south southeast, underlain by a
Zechstein salt ridge of similar trend. Faulting along the
flanks of the salt ridge is almost entirely pre-Cretaceous.
The seal for the Fulmar Formation is the overlying Kimmeridge clay. The Tay accumulation is a low relief structure dipping mainly to the northeast with
The Forties accumulation in Guillemot C has a simple domal structure mainly complex combined structural stratigraphic traps.
resulting from mid-Tertiary salt re-activation. The Sele Formation acts as a seal to the
sequence.

SEDIMENTOLOGY AND DEPOSITIONAL


INTERPRETATIVE TWT CROSS SECTION ENVIRONMENT

GUILLEMOT A GANNET B GANNET A The Upper Jurassic, Fulmar Formation represents a


Time in 21/29b-7 21/25-1 21/25-4 sequence of shallow marine sandstones probably deposited
Seconds W E by storm processes, forming a sand ridge/sheet complex on
the shelf area to the west of the Central Graben. The
0.0
sediments comprise very fine to fine grained, commonly
argillaceous sandstones with rare primary structures due to
extensive bioturbation. The lower part of the sequence is finer
grained and more argillaceous compared with the upper part.
1.0 A basal coarser lag may represent local reworking during the
initial transgression.
Top Rogaland Group
The Paleocene/Eocene Tay Formation comprises a
Top Forties Formation sequence of deep water, submarine fan sandstones deposited
2.0
Tay Fm. in a trough confined by syndepositional highs and sourced
from the north and west. Three main sand developments
representing phases of submarine fan progradation are
Zechstein Top Chalk separated by laterally extensive, fan abandonment
TRIASSIC Group Base Cretaceous mudstones. The lower sands comprise massive, fine grained
3.0 Unconformity
JURASSIC
sands with mudclast conglomerates which are laterally
equivalent to the mudstones and tuffs of part of the Sele and
Rotliegendes Group Balder Formations. The middle sands (Nar Member) comprise
a laterally extensive sequence of thick bedded, generally
4.0 massive sandstones, fining and thinning towards the top. The
0 1 2 3 4 km
upper sands (Breydon Member) found in Gannet A consist of
a sequence that passes from suprafan channel/lobe deposits
in the northwest to interbedded outer fan sands and shales to
the southeast.

REPRESENTATIVE WELL SECTION - 21/25-2 (GUILLEMOT A)


21/25-2
CORE
6050 DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


M Sandstones deposited by turbidity currents in
( cmt palaeotopographic low. Thin mudstones and
FORTIES FORMATION

)
UPPER PALEOCENE
MONTROSE GROUP

M
M sandstones deposited by low density turbidity
currents.
M
Geometry
S
M Sheetlike sandbody composed of
amalgamated ribbon geometry sand units and
M
thinner, sheetlike sandstones and mudstones.
6100

rubble M and K
and K very good to good in clean
M S sandstones. Lower values in thinner more
argillaceous sandstones. Mudstones may
rubble baffle vertical permeability.

21/25-2
Euxinic marine mudstones. Laterally
KIMM. CLAY FM.

extensive non-reservoir interval.

Storm generated, shallow marine sheet


sandstones forming part of a sand
UPPER JURASSIC

ridge/sheet complex.
8200
FULMAR FM.

( Geometry
)
Thin, sheetlike sand units,stacked and
(
) coalesced to form laterally extensive,
HUMBER GP.

(
) sheet geometry sediment body.
(
( ) and K
)
and K generally good, locally moderate.
8250

(
( )
)
Gannet & Guillemot
RESERVOIR GEOLOGY GANNET A POROSITY - PERMEABILITY CHARACTERISTICS
22/21-3

10000

er
mb
1. Horda/Balder? Formation Me s)
y d on S and
2. Hordaland/Rogaland? Group r
Bre Uppe
3. Rogaland Group a y
GANNET B (T
1000
21/25-1

es
GUILLEMOT mudston
Top red
21/25-2

PERMEABILITY (md.)
Hordaland Group

Sele Horda Formation


s)
wer Sand
er (Tay Lo
Nar Memb nds) 100
Fm. Nar Mbr. le Sa
(Tay Midd

3
Montrose Group

Se
Formation

le
Forties

10
Montrose Rogaland

Maureen Lista Fm.

Hordaland
Group

Group
Horda
Fm.
Formation
Group

1 2
0

Rogaland
Fulmar

Sele Fm.

Group
100 Tay
1
? 0 10 20 30 40 50
200 feet
POROSITY (per cent.)

GUILLEMOT

Montrose Group
21/30-3

Forties Fm.
In the Fulmar Formation porosity values are generally moderate to
good, typically 10 to 30 per cent; permeabilities are commonly moderate
Two main reservoir units can be distinguished to good ranging from 1 to 1000md. Trends are controlled by primary
in the Fulmar Formation: an upper, slightly textural characteristics. The best reservoir quality is found in the
coarser, better sorted, permeable unit and a coarsest, cleanest section of the upper unit, where average zone
lower, more argillaceous, poorly permeable unit, porosities range from 16 to 33 per cent. decreasing to between 8 and 26
which overlies the basal, coarser grained lag. per cent. at the base of the reservoir. Permeabilities similarly decrease
Maureen

These units are laterally extensive in the from 10 to 3000 md at the top of the section to 0.1 to 100 md at the base.
Fm.

Guillemot B field area, forming a lens shaped In the Tay Formation, porosities are generally good, ranging from 20
sediment body up to 260 feet thick. The Forties GANNET SOUTH
to 35 per cent. Permeabilities are typically high, 100 to 6000 md. Trends
Formation extends over the whole complex and 21/30-2 are controlled by primary textural characteristics and hence facies.
the sheetlike deposit can be split into inner fan, Average porosities for the upper sands (Breydon Member) in Gannet
mid-fan and outer-fan deposits. The inner fan represents thick channel sands of excellent reservoir A are good to very good (20 to 36 per cent.). Permeabilities are also
quality and is present in Guillemot C. The mid-fan deposits exhibit a high net sand content within multi good to very good. Both porosity and permeability decrease towards the
storey massive sands in both Gannet B and C. The outer fan sequence is characterised by thin southeast as the sequence thins, and net to gross ratios decrease.
turbidite sands with moderate reservoir quality.
The Tay Formation comprises an accumulation of up to 1000 feet of sand. The three main sand
developments are separated by laterally extensive shale units which can be correlated between fields
in the Gannet area. RESERVOIR PRESSURE
The lower sands are present in Gannet A and are absent in Gannet C. The middle sands (Nar
Member) are extensive with sands best developed in Gannet B and C. The 'Upper Tay Shale Unit' of Gannet A appears to be normally pressured. Guillemot A is
50 to 75 feet in thickness, separates the middle sands from the upper sands (Breydon Member). The ovepressured by about 2000 psi relative to a hydrostatic pressure
upper sands form major reservoirs in Gannet A. Good reservoir quality, suprafan channel/lobe gradient of 0.45 psi/ft.
deposits are present in the northwest of Gannet A, with poorer quality outer fan deposits in the
southeast of Gannet A. The Breydon member thins towards the west and is represented by a
relatively thin sequence of interbedded sands and shales in Gannet C.
6000
FLUID PROPERTIES

The Tay Formation contains a moderately rich condensate in Gannet B and D with a condensate
gas ratio of about 40 bbl/MMscf. The Fulmar sands contain a saturated light oil.
In Guillemot A, the Fulmar sands contain an undersaturated, overpressured oil. The Tay Formation
of Guillemot B contains gas with the oil rims while the Forties Formation of Guillemot C contains an
7000
undersaturated heavy oil (21oAPI) Gannet A
DEPTH (feet TVDSS)

0.075 psi/ft GOC @ 7250 ft TVDSS


OWC @ 7300 ft TVDSS
300 4000
0.35 psi/ft
Guillemot A

3000 0.35 psi/ft


8000
200 0.45 psi/ft
Eg Tay
Eg (scf/rcf)

Rs (scf/stb)

2000 OWC @ 8456 ft TVDSS


Rs Fulmar
0.45 psi/ft
100
1000
9000
3000 4000 5000 6000 7000

INITIAL RESERVOIR PRESSURE (psig)


0 0
0 1000 2000 3000 4000 5000

PRESSURE (psig)

CONTROLS ON RECOVERY

Gannet A
Recovery within the Gannet A field is expected to be moderate to good. The principal principally due to:
factors which ensure a good recovery factor are the overall good permeability and The good permeability in the reservoir
continuity within the structure. Because of the large size of the gas cap it is likely that The moderately favourable mobility ratio under waterflooding conditions
compression will be installed leading to a low reservoir abandonment pressure. Water The good reservoir continuity
influx into the reservoir, trapping considerable quantities of gas, will adversely affect the Recovery is expected to be reduced by bypassing of oil in the low permeability sands
recovery factor. as a result of the wide variations in reservoir permeability. Bypassing will be reduced to
Guillemot A some extent by the persistent mudstones forming vertical permeability baffles between
Overall oil recovery in Guillemot A is expected to be moderate to good. This is the layers.
Gannet & Guillemot
FACILITIES SPECIFICATIONS

GANNET D GANNET GUILLEMOT/TEAL


SCHEMATIC FIELD LAYOUT

UNITED KINGDOM
Water Depth 312 312
(feet)
TO Platform Type steel jacket floating
ST. FERGUS GANNET A
Function drilling/prod. Floating/Production/Storage/
& accom. Offloading Facility (FPSO)
GANNET B Tender
Support
2 x 6" Gas Pipelines Topsides Weight 9669
B1 TO (tonnes)
DRILLING 20" Gas GANNET D Total Weight 30000
Diverter
CENTRE B2 Pipeline (tonnes)
DRILLING SSIV 2 x 6" Oil & 4"
CENTRE Test Pipelines
Bundle
Accommodation 40 55
C1 1
DRILLING
16" Oil Pipeline
Well Slots 24
CENTRE
C3 Bundle Wells planned 36 (30 oil, 6 gas) 12
DRILLING Bundle 2 Wells 17
CENTRE 3
C2
Producers 17 (15 oil, 2 gas) 7
DRILLING Existing Fulmar Spare slots 13
Bundle
4 CENTRE 20" Gas Pipeline

GANNET C TO FULMAR A
C4 PROCESSING AND EXPORT SPECIFICATIONS
DRILLING
CENTRE Oil Throughput 56000 55000
(bbl/day)
Oil Export 16" x 107 km pipeline to Fulmar FSU via Shuttle tanker

Gas Export 20" x 1.9 km pipeline to connect via Fulmar pipeline


to Fulmar - St Fergus pipeline to St Fergus

Note : drilling equipment is minimal to save weight. The drilling operation is


to be aided by tender support/semi-submersible.

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 1,210.48 609.78 383.84 270.94 181.08 79.53 -28.07
Net Present Value (Deflated) 965.01 437.24 241.74 145.03 68.75 -16.36 -104.15

@
Profit/Inv Ratio 0.85 0.55 0.40 0.31 0.22 0.11 -0.05
Profit/Inv Ratio (Deflated) 0.63 0.37 0.23 0.15 0.08 -0.02 -0.16
NPV/Unit Oil Equiv. 3.66 2.94 2.40 2.00 1.56 0.86 -0.43
NPV/Unit Oil Equiv. (Deflated) 3.19 2.27 1.61 1.13 0.63 -0.19 -1.67
PRODUCTION PERFORMANCE
Payback Year 1998 HISTORICAL AND PROJECTED
Nominal Rate Of Return % 18.39
Real Rate Of Return % 14.33 80 250
Liquid
Post Corporation Tax
Gas

@@@@


Net Present Value 780.13 357.69 198.52 119.19 56.32 -14.16 -87.28
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Net Present Value (Deflated) 589.36 216.75 79.42 11.99 -40.75 -98.72 -156.35
Profit/Inv Ratio 0.55 0.32 0.21 0.14 0.07 -0.02 -0.15 200
Profit/Inv Ratio (Deflated) 0.39 0.18 0.08 0.01 -0.05 -0.13 -0.24 60
NPV/Unit Oil Equiv. 2.36 1.73 1.24 0.88 0.49 -0.15 -1.35
NPV/Unit Oil Equiv. (Deflated) 1.95 1.12 0.53 0.09 -0.37 -1.12 -2.50

Nominal Rate Of Return % 14.31 150


Real Rate Of Return % 10.41
40
Earnings Data

@@@@


Gross Revenue 3,948.44 2,434.67 1,862.40 1,570.68 1,332.82 1,053.07 729.74 100
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 430.35 252.09 185.32 151.75 124.76 93.69 59.21
Capital Expenditure 1,421.45 1,104.82 959.99 877.74 805.04 711.01 585.95 20
Operating Costs 1,316.51 720.07 518.57 422.00 346.71 262.53 171.87 50
Gross Revenue (Deflated) 3,566.41 2,240.13 1,730.52 1,468.38 1,253.19 998.13 699.99
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 375.65 220.48 162.32 133.05 109.50 82.36 52.20 0
0
Capital Expenditure (Deflated) 1,521.72 1,191.98 1,040.43 954.11 877.63 778.43 645.90
Operating Costs (Deflated) 1,079.69 610.92 448.35 369.24 306.82 236.05 158.25 1990 1995 2000 2005 2010

Year

ECONOMIC INDICATORS FROM 1/1/1996 CASH FLOW REPORT


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Pre Corporation Tax MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Net Present Value 1,664.98 1,424.98 1,301.49 1,226.94 1,158.08 1,064.49 930.95 1989 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -22.9 0.0 0.0 0.0
Net Present Value (Deflated) 1,498.55 1,280.93 1,170.28 1,103.77 1,042.48 959.34 840.88 1990 0.0 0.0 0.0 60.0 0.0 0.0 0.0 -60.0 -118.1 0.0 0.0 0.0
NPV/Unit Oil Equiv. 6.34 6.51 6.56 6.58 6.58 6.57 6.51 1991 0.0 0.0 0.0 170.0 0.0 0.0 0.0 -170.0 -282.8 0.0 0.0 0.0
1992 5.4 0.0 5.2 255.2 0.0 0.0 0.0 -255.0 -371.4 1.2 1.2 0.0
Post Corporation Tax 1993 178.0 0.0 43.2 198.4 0.0 0.0 0.0 -63.6 -82.6 35.2 63.2 0.0
1994 227.2 0.0 44.4 92.0 0.0 0.0 0.0 90.8 107.5 50.0 73.2 0.0
Net Present Value 1,234.63 1,070.26 983.89 931.23 882.27 815.28 718.79 1995 291.2 0.0 45.6 232.2 0.0 0.0 0.0 13.4 14.3 62.0 95.2 0.0
Net Present Value (Deflated) 1,122.90 970.68 892.09 844.50 800.41 740.25 653.84 Total To Start Of Discounting ( 1/JAN/1996)
NPV/Unit Oil Equiv. 4.70 4.89 4.96 4.99 5.01 5.03 5.03 701.7 0.0 138.4 1,017.8 0.0 0.0 0.0 -454.5 -756.0 54.2 85.0 0.0

Earnings Data 1996 315.2 0.0 51.0 272.6 0.0 0.0 0.0 -8.4 -8.1 65.2 95.2 0.0
1997 499.3 0.0 86.2 109.4 0.0 24.3 24.3 279.4 239.3 100.0 116.7 0.0
Gross Revenue 3,246.73 2,675.59 2,411.47 2,259.96 2,124.76 1,947.59 1,706.28 1998 546.2 0.0 95.4 21.6 0.0 83.0 83.0 346.1 264.0 105.2 122.8 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1999 482.4 0.0 97.0 0.0 0.0 107.0 107.0 278.4 189.0 86.8 122.8 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 368.1 0.0 99.0 0.0 0.0 95.9 95.9 173.3 104.8 60.4 114.0 0.0
Corporation Tax 430.35 354.72 317.61 295.71 275.80 249.21 212.16 2001 284.3 0.0 101.1 0.0 0.0 65.3 65.3 117.9 63.4 41.7 107.7 0.0
Capital Expenditure 403.65 386.87 377.64 371.80 366.19 358.18 345.80 2002 219.5 0.0 104.1 0.0 0.0 42.8 42.8 72.6 34.8 29.2 92.8 0.0
Operating Costs 1,178.11 863.74 732.34 661.23 600.50 524.92 429.54 2003 171.1 0.0 107.2 0.0 0.0 24.9 24.9 39.0 16.6 20.4 80.4 0.0
2004 135.2 0.0 105.2 0.0 0.0 11.2 11.2 18.8 7.1 14.3 69.8 0.0
Gross Revenue (Deflated) 2,830.16 2,364.38 2,146.16 2,020.05 1,906.88 1,757.64 1,552.47 2005 67.3 0.0 101.8 0.0 0.0 2.5 2.5 -36.9 -12.5 3.2 60.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2006 59.7 0.0 51.7 0.0 0.0 -26.5 -26.5 34.6 10.4 2.4 53.6 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2007 51.8 0.0 50.1 0.0 0.0 0.9 0.9 0.8 0.2 1.6 47.6 0.0
Corporation Tax (Deflated) 375.65 310.24 278.19 259.27 242.07 219.09 187.04 2008 46.5 0.0 45.0 0.0 0.0 -0.8 -0.8 2.2 0.5 1.2 42.4 0.0
Capital Expenditure (Deflated) 397.81 381.52 372.55 366.87 361.41 353.61 341.56 Remain
Operating Costs (Deflated) 933.80 701.94 603.33 549.41 503.00 444.69 370.03 2009 0.0 0.0 83.3 0.0 0.0 -0.1 -0.1 -83.1 -17.7 0.0 0.0 0.0

Total 3,246.7 0.0 1,178.1 403.6 0.0 430.4 430.4 1,234.6 892.1 194.0 410.9 0.0

These cash flows include Gannet A, B, C & D and Guillemot and Teal fields
6 1 9/19 Conoco SUMMARY
BUCKLAND
3 9/18a
5
2 The Gryphon oil field is located in Block 9/18b, approximately 150
6 9/18d 9/ 3,3A 7 km southeast of Shetland. The field was discovered by Well 9/18b-7 in
Mobil 18c 18
KM 6 1987, and since this time has been appraised by over 20 wells and a 3D
5 9/17b 4 1 2
Mobil seismic survey. It was originally intended to be developed in conjuction
2
SORBY 10 with the Harding field (previously known as Forth) but this option was
9/18b
15
4 5,5A 11 eventually abandoned in favour of development as a stand-alone facility
Kerr using the Gryphon A monohull production vessel. This is offloaded by
3 McGee 3 shuttle tankers to the BP terminal at Nigg. Start up was in October 1993.
4
21 17 9 Excess gas is reinjected to the reservoir; water injection commenced
23 10 19 3 shortly after the start of oil production. The field is currently producing
26 8 8
1 22 14
from 8 horizontal wells.
9/17c 9/17a 4 20 13 25
9/16a Rel. Rel. Mobil 12 9 GRYPHON
11,16 The current interests in the Gryphon field in per cent are:
5
20 6 28
12 17 27 9/24a Sante Fe (Kuwait) 25.00
Hamilton
26 13 Aran Energy 15.00
HARDING 7 3
11 Cairn Energy 10.00
16 10 15
4 Clyde 21.50
18 24
3 Kerr McGee* 25.00
24/9 Fina
22
2 8
1 Rel. Oranje Nassau 3.50
21 9/24c
23
9/23b
25 9/24b * operator
1 9 BP
2
1 2
CRAWFORD
9/23c19 9/23a
9/21 Rel. 9/22 Mobil Mobil Hamilton
9/26 Rel. 9/27b Mobil 14 1 24/12 Rel.

LOCAL SETTING

The Gryphon oil field is situated 320 km northeast of Aberdeen, in


Block 9/18b, on the western margin of the South Viking Graben. The
reservoir comprises shallow high porosity and high permeability sands
RESERVOIR CHARACTERISTICS of the earliest Eocene Balder Formation. The sandstones are thick,
massive, well-sorted sands deposited from high-density gravity flows in
Fluid Properties a submarine setting.
The Gryphon accumulation is one of several Eocene reservoir
Oil Gravity (oAPI) 21.6 discoveries south of Beryl. Others include Gryphon South, Harding,
Gas/Oil Ratio (scf/stb) 274 Alba and a number of isolated small accumulations around the Gryphon
Bubble Point Pressure, (psia) 2501 field. Other fields in the region include Beryl and Nevis to the north and
Crawford to the south. All of these fields have reservoirs that are
Formation Volume Factor at pi (rb/stb) 1.118
principally of Jurassic or Triassic age.
Original Reservoir Pressure, Pi (psia) 2544
At Datum Depth of (ft TVDSS) 5653
Reservoir Temperature (F) 282

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Balder Formation
Geological Age Eocene
Porosity Range (per cent.) about 30
Permeability Range (md) 3-10
Connate Water Saturation (per cent.) FIELD DESCRIPTION
Gas oil Contact (ft TVDSS) 5541
Oil Water Contact (ft TVDSS) 5734 The Gryphon field is a complex combination dip and stratigraphically
Depth to Top of Structure (ft TVDSS) approx. 5350 closed trap formed on the northwestern edge of the Crawford Spur. The
principal reservoir is the Eocene Balder Formation. The reservoir
Reserves consists of high porosity and permeability submarine high density
turbidite sands which have an unusual irregular mounded and laterally
Ultimate Oil Reserves (MMstb) 87 impersistent geometry.
Est. Oil Production to 31.12.95 (MMstb) 30 The field was discovered in 1987 by Well 9/18b-7 which tested 22
Remaining Oil Reserves (MMstb) 57 API gravity oil at over 6800 b/d. The reservoir oil is a relatively viscous
(6 cp) fluid with an initial gas oil ratio of 270 scf/stb. The initial reservoir
Production pressure was 2544 psia at 5650 feet TVDSS. The field also has a free
gas cap in the Balder sands and a larger, connected gas volume in the
Water Depth (feet) 370 overlying Frigg Formation sands. At present the gas is used for fuel,
Production Start Date October 1993 flared and reinjected through a crestal gas injection well.
Peak Production (Oil & NGL) (stb/day) 57,000 in Dec 1994 Start up occurred in 1993 with the field being exploited by a floating
Platform(s) 1 floating production/ production and storage vessel anchored to the seabed. The subsea
storage/offloading system development section has made use of the provision for water and gas
injection, in order to boost recovery pressure, thus allowing production
Number of Wells
levels to be increased. The crude is offloaded to bow loading shuttle
Production 8
tankers, ready for export to the Nigg Terminal on the Cromarty Firth. At
Water Injectors 4
present nearly all gas is utilised in production (for gas injection, gas lift
Gas Injectors 1
and fuel requirements) so sales volumes are currently not considered to
Export of Oil via offshore loading
be viable. The remaining amount is flared subject to limits by the
facilities to shuttle tankers Department of Trade and Industry.
to Nigg terminal Additional discoveries in the area include those at Well 9/18b-25 and
Well 9/18b-26. There are also further Gryphon satellites including lobes
to the south and west. These could be developed as potential subsea
tiebacks, although plans have not been confirmed as yet. Any small
satellite discovery within easy reach of the Gryphon production facility
could prove useful in prolonging the life of the field, past the expected
20 years.
STRATIGRAPHY AND STRUCTURE

The Gryphon field is located on the northwestern flank of the Crawford

UNITED KINGDOM
GRYPHON
Spur to the south of the Beryl Embayment. Submarine high density turbidites
TOP BALDER SAND
flowed down the palaeoslope from the west and accumulated as a complex

Gryphon
DEPTH STRUCTURE series of lobate sand 'pods', preferentially deposited in sea-floor topographic
0 1 km lows. Subsequent re-mobilisation and slumping, together with differential
(Contours in feet TVDSS) compaction has led to the current geometry. The sands therefore form
combination dip and stratigraphic closures with a preferential northwest to
southeast elongation, parallel to the original transport direction.
The reservoir is of Eocene age comprising mainly the sands of the Balder
Formation, with additional reserves in the Frigg Formation. The Balder sands
21

57 00
comprise a sand rich sequence within which laterally impersistent shale units

57 50
50
A8Z

56
9/18a
occur. The reservoir is overlain by sands of the Eocene Frigg Formation and
ultimately is sealed by overlying Eocene shales. The reservoir overburden

55
9/18b

00
comprises a thick sequence of Eocene to Pleistocene shales and
A8 19Y
A13Z
17Z sandstones.
17Y 17 00
10 56
A13
A6 SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
5700 A1Z 17X
560 A1

56
0 The Gryphon field Balder sandstone is dominated by a massive, relatively
OW

00
545 24Y 11 8
19
57 573
0
structureless and texturally uniform sequence of sandstones. These are
C

7
00 4

A2Z A2 A7/A7Y
24Z interpreted to represent the amalgamation of numerous individual high
A10Z A11Z A12
A3X
A3 A12Z density turbidite sands derived from a texturally uniform shelf sediment
24 A11
A10Y 11Z 19Z source area to the west. The density currents, with sand rich load, flowed
A10
55
GOC 4 1 0 down through gullies in the slope and deposited their sediment in sea floor
14 60
5 00 topographic lows upon deceleration in the Gryphon area due to the presence
57 13Z
13Y of the relative high of the Crawford Ridge to the east. Subsequent sands
were offset from earlier ones due to differential compaction of the sand and
20 mud sequences. Intervening shale horizons appear laterally impersistent,
Closure effected by sand pinchout
(other areas dip closed) thus allowing for good internal reservoir communication.
OW

9 The Frigg Formation sands, deposited above the Balder, are thickest off
C
57

34
the flanks of the main Balder sand accumulation further emphasising the
GOC 5541
importance of differential compaction on the accumulation of successive
16
12 sands. Over the crest of Gryphon, the Frigg sands are relatively thin and of
56
5800

5700

00

poor quality.

INTERPRETATIVE STRUCTURAL CROSS SECTION


Gryphon Field

NW 9/18d 9/18b 9/19 SE

TWT (secs)
1.0

1.5
Frigg Fm
Balder Fm
2.0 Sele Fm

Montrose Group
2.5
Pre-Tertiary

3.0 0 2 km
(After Newman et al, 1993)

REPRESENTATIVE WELL SECTION - 9/18b-7


DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.01 10000 5 25 45 -15
HORDALAND GROUP
HORDA FORMATION

Marine shale forming caprock to reservoir


sands.
5400

Thin, laterally impersistent turbidites with


9/18b-7 good reservoir quality.
5450

Marine shale forming sheet geometry unit


overlying main reservoir sand.
5500

Thick sequence of high density "turbidite"


sandstones.

Geometry
Lobate geometry sand sequence deposited
in sea-floor topograhic low. Sand sequence
expected to be well interconnected with
BALDER FORMATION
ROGALAND GROUP

interbedded shales representing lenticular


5550

laterally impersistant units.


EOCENE

and K
Exellent porosity and permeability preserved
in fine grained, clean, moderately to well
sorted, uncemented and largely
unconsolidated sands.
5600
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
W E
10000

Horda Formation
Frigg Sandstone
developed on

Gryphon
flanks of field
1 9/18b-13y
9/18b-14 9/18b-7
9/18b-11 9/18b-13z
9/18b-10
1000

Balder Formation
Moray / Rogaland Group
100

PERMEABILITY (md.)
Sele Formation
0
10

Principal "high density" turbidite sandstone reservoir sandbodies


1. Stronsay / Hordaland Group
200 ft

The Balder sand reservoir shows marked lateral thickness variations from hundreds of
feet of sand, to sand free shale sections over relatively short distances. This is principally
due to the aggradation of the sands being preferentially focused on the sea-floor 0.1
topographic low areas, with the relative highs characterised by thin sands or shales. Internal
subdivision of the reservoir is difficult and ill defined. This is probably due to the lateral
impersistence of intra-reservoir shales, and the overall amalgamation and good
interconnectivity of the reservoir sands.
Within the sandstone units, net to gross ratio is very high, with only the interbedded 0.01
0 5 10 15 20 25 30 35 40 45
shales representing non-net lithology. Porosity and hydrocarbon saturation are
correspondingly high, aided by the relative lack of interstitial clay, the good sorting and the POROSITY (per cent.)

unconsolidated nature of the sands.


The Gryphon sands display excellent porosity and permeability
characteristics. Their minimal clay content, cement content, and
good sorting has led to porosities averaging between 30 and 38 per
cent. Permeabilities are correspondingly high with little variance
outside 3 to 10 Darcies.

FLUID PROPERTIES RESERVOIR PRESSURE

Gryphon field contains a saturated, moderately viscous (6 cp), 21.6 degrees API oil The Gryphon field is normally pressured based on a water
overlain by gas. There is some variation of oil properties with depth due to gravity gradient to surface of 0.45 psi/ft. The gas oil and oil water contacts
segregation of the different hydrocarbon components, but the variation of bubble point with are well defined by RFT data and logs at 5541 feet and 5734 feet
depth is not significant. The saturation pressure is 2501 psia at which the solution GOR is TVDSS respectively.
274 scf/stb and the oil formation volume factor is 1.118 rb/stb. The reservoir fluid has an
unfavourable mobility ratio to both gas and water displacement.

5000

300 1.20 20 0.05 psi/ft


GOR

250
5500
DEPTH (feet TVDSS)

1.15 15 GOC @ 5541 ft TVDSS


GAS VISCOSITY (cp)

200 0.37 psi/ft


B0
GOR (scf/stb)

B0 (rb/stb)

OWC @ 5734 ft TVDSS


150 1.10 10

0.45 psi/ft
100 0
6000
1.05 5
50

0 1.00 0
0 1000 2000 3000 4000 5000

PRESSURE (psig) 6500


2400 2500 2600 2700 2800
INITIAL RESERVOIR PRESSURE (psig)

CONTROLS ON RECOVERY

The oil recovery factor in Gryphon is expected to be moderate, in the order of 40 per
cent. This is attributable to the following:-

excellent quality, laterally continuous reservoir sandstones


an oil column of 193 ft, overlain by a gas cap, has lead to early breakthrough of gas and
water into the production wells; the tendency to cone gas and oil has been mitigated by
the drilling of horizontal production wells.
the moderately high in situ oil viscosity leads to unfavourable displacement
characteristics under water as well as gas flooding.
FACILITIES SPECIFICATIONS

GRYPHON A VESSEL SUBSEA COMPLETIONS

UNITED KINGDOM
Water Depth 370 370

Gryphon
Shuttle tanker
(feet)
Platform Type Floating Subsea cluster connected
SCHEMATIC FIELD LAYOUT
FPSO to central manifold
Function Production storage, offloading Production
Anchor chains
Displacement 126000
Wellheads and control (tonnes)
distribution base
Accommodation UK - normal crew
Flexible risers

Well slots
Buoyancy arches Wells producers 8
water injectors 4
gas injectors 1
water supply 1
Flexible flowlines

Riser bases
PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 60000


(bopd)
Oil Export Shuttle Tanker from Gryphon A Vessel to Nigg Terminal

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 219.75 150.29 115.91 95.85 77.90 54.52 23.51
Net Present Value (Deflated) 203.96 132.71 98.58 78.93 61.49 38.94 9.33
Profit/Inv Ratio 0.76 0.56 0.46 0.39 0.32 0.24 0.11
Profit/Inv Ratio (Deflated) 0.66 0.46 0.36 0.30 0.24 0.16 0.04
NPV/Unit Oil Equiv. 2.53 2.27 2.03 1.85 1.65 1.31 0.69
NPV/Unit Oil Equiv. (Deflated) 2.47 2.08 1.79 1.56 1.33 0.95 0.28

Payback Year 1996


Nominal Rate Of Return % 25.09 PRODUCTION PERFORMANCE
Real Rate Of Return % 21.95 HISTORICAL AND PROJECTED
Post Corporation Tax 50
Net Present Value 123.11 80.40 57.71 44.13 31.78 15.46 -6.51
Net Present Value (Deflated) 115.22 68.08 44.57 30.81 18.48 2.40 -18.90
Profit/Inv Ratio 0.42 0.30 0.23 0.18 0.13 0.07 -0.03
Average Annual Daily Liquid Rate (Mbbl/day)

Profit/Inv Ratio (Deflated) 0.37 0.24 0.16 0.12 0.07 0.01 -0.08
40
NPV/Unit Oil Equiv. 1.41 1.22 1.01 0.85 0.67 0.37 -0.19
NPV/Unit Oil Equiv. (Deflated) 1.40 1.07 0.81 0.61 0.40 0.06 -0.56

Nominal Rate Of Return % 18.37


Real Rate Of Return % 15.50
30
Earnings Data

Gross Revenue 894.60 670.10 572.51 518.49 471.58 412.04 334.74


Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20
Corporation Tax 96.64 69.89 58.19 51.72 46.12 39.06 30.02
Capital Expenditure 290.00 267.01 254.72 247.08 239.83 229.66 214.32
Operating Costs 384.85 252.81 201.88 175.56 153.84 127.86 96.90

Gross Revenue (Deflated) 838.86 638.31 549.81 500.40 457.21 401.99 329.53 10
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 88.74 64.62 54.01 48.12 43.01 36.54 28.23
Capital Expenditure (Deflated) 309.99 285.59 272.54 264.42 256.73 245.91 229.59
Operating Costs (Deflated) 324.91 220.01 178.68 157.04 138.99 117.14 90.61 0
1990 1995 2000 2005 2010

Year

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax CASH FLOW REPORT


Net Present Value 273.27 259.50 249.68 242.96 236.24 226.36 210.83 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Net Present Value (Deflated) 267.80 250.49 239.79 232.79 225.97 216.18 201.14 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
NPV/Unit Oil Equiv. 4.82 5.34 5.59 5.73 5.85 6.00 6.20 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Post Corporation Tax 1992 0.0 0.0 0.0 20.0 0.0 0.0 0.0 -20.0 -29.1 0.0 0.0 0.0
1993 0.0 0.0 3.0 220.0 0.0 0.0 0.0 -223.0 -289.7 0.0 0.0 0.0
Net Present Value 177.60 175.54 171.52 168.25 164.70 159.09 149.63 1994 149.3 0.0 28.0 30.0 0.0 0.0 0.0 91.3 108.0 44.0 0.0 0.0
Net Present Value (Deflated) 180.06 172.97 167.36 163.39 159.36 153.34 143.70 1995 135.3 0.0 27.1 10.0 0.0 1.0 1.0 97.2 104.1 39.0 0.0 0.0
NPV/Unit Oil Equiv. 3.13 3.61 3.84 3.96 4.08 4.22 4.40 Total To Start Of Discounting ( 1/JAN/1996)
284.6 0.0 58.1 280.0 0.0 1.0 1.0 -54.5 -106.7 30.3 0.0 0.0
Earnings Data
1996 116.4 0.0 26.2 10.0 0.0 22.1 22.1 58.1 55.9 34.2 0.0 0.0
Gross Revenue 610.02 515.26 470.74 445.00 421.91 391.47 349.67 1997 100.6 0.0 26.0 0.0 0.0 18.7 18.7 55.8 47.8 27.5 0.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 84.4 0.0 26.0 0.0 0.0 16.3 16.3 42.1 32.1 22.2 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1999 70.4 0.0 26.2 0.0 0.0 13.1 13.1 31.1 21.1 17.8 0.0 0.0
Corporation Tax 95.66 83.96 78.16 74.71 71.54 67.27 61.19 2000 59.2 0.0 26.5 0.0 0.0 9.9 9.9 22.8 13.8 14.4 0.0 0.0
Capital Expenditure 10.00 9.76 9.62 9.53 9.45 9.33 9.13 2001 49.6 0.0 26.3 0.0 0.0 7.3 7.3 16.0 8.6 11.6 0.0 0.0
Operating Costs 326.75 246.00 211.44 192.51 176.22 155.78 129.71 2002 41.4 0.0 26.2 0.0 0.0 5.1 5.1 10.0 4.8 9.3 0.0 0.0
2003 34.7 0.0 26.2 0.0 0.0 3.0 3.0 5.4 2.3 7.5 0.0 0.0
Gross Revenue (Deflated) 542.05 463.66 426.46 404.82 385.32 359.47 323.68 2004 28.9 0.0 26.3 0.0 0.0 1.3 1.3 1.2 0.5 6.0 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 24.5 0.0 24.1 0.0 0.0 -0.3 -0.3 0.7 0.2 4.9 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 87.74 77.52 72.44 69.40 66.61 62.84 57.44 2006 0.0 0.0 66.6 0.0 0.0 -1.0 -1.0 -65.6 -19.7 0.0 0.0 0.0
Capital Expenditure (Deflated) 10.00 9.76 9.62 9.53 9.45 9.33 9.13
Operating Costs (Deflated) 264.25 203.41 177.05 162.50 149.90 133.97 113.41 Total 610.0 0.0 326.8 10.0 0.0 95.7 95.7 177.6 167.4 56.7 0.0 0.0

These cash flows include Gryphon field only


210/29a 29b 30a Amoco 210/30c Rel. 211/26a Shell SUMMARY
Elf-Enterprise Rel.
2 13 The Heather field is located in Quadrant 2, some 120 km northeast
PELICAN 4 of the Shetland Islands in the UK Sector of the Northern North Sea. The
field was discovered by Well 2/5-1 in 1973 which encountered oil in
Middle Jurassic sandstones.
Development of Heather involving a single steel platform began in
1977 with first oil production in October 1978.
A number of prospects exist in the vicinity of the Heather field itself.
2/4 Rel.
NORTHWEST 2/5 Unocal 3/1a Total These are the "Heather Fairway" between the main field and Northwest
HEATHER 12,14 Heather, West Heather and Southwest Heather. The reserves of the
3 four prospects together are expected to be of the order of 10 MMstb.
Heather Fairway and Northwest Heather are in pressure connection
13 3/1b Rel. with Heather and are now producing. The Fairway and Northwest
WEST A
1 Heather extensions are being exploited using deviated wells. The
HEATHER 2
15 southwest accumulation is considered uneconomic for development.
4
6 West Heather, which was discovered in 1977 by the Well 2/5-8B and
5 7
abandoned shortly after with oil shows, is currently being considered for
17 9 appraisal/development. However, no commitment or firm plans have
2 8
been made to drill in the block due to the complex nature of this
structure.
HEATHER If West Heather development is unsuccessful or does not occur, it is
1 likely that the Heather field will be abandoned by 1997; successful
exploitation of West Heather should extend the field life.
The current interests in the Heather field in per cent. are:-
0 4 km SOUTHWEST
11 HEATHER Unocal UK Ltd * 31.25
16 Texaco Exploration Ltd 31.25
10
British Gas plc 31.25
2/4b Rel.
DNO (Heather Oilfield) Ltd 6.25

operator *

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Heather field is located on the western side of the North Viking
Graben close to the East Shetland Platform, and is one of the most
Oil Gravity (API) 35 westerly of the fields in the Brent Province.
Gas/Oil Ratio (scf/stb) 650 The closest fields in this area are, to the northeast, Cormorant and
Bubble Point Pressure, Pb (psig) 3200 North West Hutton in Quadrant 211 and to the east, Lyell and Ninian in
Formation Volume Factor at Pi (rb/stb) 1.38 Quadrant 3. The small Emerald oil field is situated to the south in
Oil Compressibility (vol/vol/psi) Not known Quadrants 2 and 3.
Original Reservoir Pressure, Pi (psig) 5050
At Datum Depth of (TVDSS) 10650
Reservoir Temperature (F) 225

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group
Geological Age Middle Jurassic
Porosity Range (per cent.) 12-24
Permeability Range (md) 2-200
Connate Water Saturation (per cent.) 22
Oil Water Contact (ft TVDSS) 10885
Depth to Top of Structure (ft TVDSS) 9500

Reserves

Total Reserves (Oil & NGL) (MMstb) 112


Est. Production to 31.12.95 (MMstb) 109
Remaining Reserves (Oil & NGL) (MMstb) 3

Production

Water depth (feet) 469


Production Start Date October 1978
Peak Production (Oil and NGL) (stb/day) 36000
Platform(s) Steel jacket FIELD DESCRIPTION
Number of Wells - Producers 27
Water injectors 10 Heather is a tilted fault-block structure delineated by faults in the
Gas injectors south and east. The reservoir occurs within shallow marine and deltaic
Oil and NGL Export Pipeline to Ninian for landing sandstones of the Middle Jurassic Brent Group which average 125 to
370 feet in thickness. Reservoir sandstones are of variable character,
at Sullom Voe
from narrow fluvial channels to sheetlike sandbodies. Interbedding of
Gas Export Gas imported from WELGAS
mudstones will adversely affect reservoir pressure communication.
The reservoir is extensively faulted. Porosity and permeability are
generally moderate.
The reservoir contains a black oil with a gas oil ratio of 650 scf/stb.
The gas was initially re-injected into the reservoir but Heather now
imports fuel gas from the WELGAS system. Water injection is used to
maintain pressure.
Production began in October 1978, and to date some 97 per cent. of
the reserves have been produced.
2/5
STRATIGRAPHY AND STRUCTURE

The reservoir of the Heather field consists of Brent Group sandstones comprising,

UNITED KINGDOM
HEATHER from base to top, Broom, Rannoch, Etive, Ness and Tarbert Formations. The Brent
TOP BRENT GROUP Group overlies about 150 feet of Dunlin Group mudstones. Overlying the Brent Group

Heather
DEPTH STRUCTURE are the Heather and Kimmeridge Clay Formations. The Heather Formation rests
0 2 km uncomformably on the Brent Group, the degree of unconformity increasing towards
3
(Contours in feet TVDSS)
the crest of the Heather structure. There is similar erosive truncation of the Brent
Group over the crest of Northwest Heather.
The Heather structure is a north westerly tilted fault-block. It is delineated by two
sets of faults; a set of southwest-northeast trending normal faults to the south and a
set of south southwest-north northeast trending normal faults to the east. The
structure grew during the Middle to Upper Jurassic, as evidenced by the patterns of
Brent Group erosion and preservation, and was reactivated in the Upper Jurassic-

5
88
Lower Cretaceous. The main Heather structure is subdivided by a series of broadly

10
C
southwest-northeast trending faults. These appear to act as partial seals which impair

OW
1
reservoir communication.

0
1050
0
00
2 10 SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Brent Group represents the deposits of a northerly prograding coastal plain
and delta system. A suite of shallow marine and deltaic facies overlies the offshore

9500
4 marine mudstones of the Dunlin Group. Initially sublittoral sheet sandstones of the
Broom Formation were deposited, representing sand deposited from storm currents
derived sands sourced from the East Shetland Platform. The overlying Rannoch and
7 Etive Formations comprise very fine and fine grained, argillaceous and micaceous
sandstones overlain by clean, medium to coarse grained sandstones. These
sediments form a progradational shoreface sequence, probably consisting of delta
front and barrier sands. The heterolithic Ness Formation consists of a complex of
9 coastal/delta plain sediments and the Tarbert Formation sand records transgression
and eventual delta abandonment.

(After Gary and Barnes, 1981)

INTERPRETATIVE STRUCTURAL CROSS SECTION


2/5-2 2/5-1 2/5-4 2/5-7
Feet
W E

8000

UPPER CRETACEOUS

9000

LOWER CRETACEOUS

10000
UPPER JURASSIC

Statfjord Formation
and TRIASSIC
Brent Group

11000 Dunlin Group

0 1 km
12000

REPRESENTATIVE WELL SECTION - 2/5-2


CORE
10700 DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Transgressive sandstones overlying delta plain


sediments with fluvial channel and crevasse 1
splay sandstones interbedded with floodplain
BROOM FM. RANNOCH FM. ETIVE FM. NESS FORMATION

Py lake and saline bay deposits. Possibly overlain


2/5-2 by transgressive sheet sandstone and marine
mudstones.
Geometry
Ribbonlike and lobate to sheetlike, poorly
10750

interconnected sandstones.
and K
Poor to moderate , K generally very poor to
Py poor, locally moderate.
Py
MIDDLE JURASSIC

Progradational sequence of shoreface


BRENT GROUP

sandstones.
10800

Geometry
Broad, sheetlike sandbody orientated
M parallel to palaeo-shoreline.
M and K
M
and K generally moderate to good, very
M
poor to poor where calcite cemented.
Py
Py M
10850

Stacked sublittoral sheet sandstones.


Geometry
Sheetlike sandbody.
and K
10900

Generally poor due to extensive calcite cement,


locally moderate to good.
DUNLIN GP.
LWR. JUR.

Fe Py Offshore marine mudstones.


Py Fe
Py W
Gl Gl

1. TARBERT FM.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
2/5-3
10000
1 3
0

Heather

TARBERT FM.
2/5-13Z
1000

100 feet

NESS FORMATION

MIDDLE JURASSIC
BRENT GROUP
100
2/5-2 2/5-1
?

PERMEABILITY (md.)
ETIVE
FM.
10

BROOM
FM.
1
4 5

2/5-4

1. Heather Formation 0.1


2. Rannoch Formation
3. Humber Group
4. Dunlin Group
5. Lower Jurassic

0.01
0 10 20 30

POROSITY (per cent.)

The thickness of the Brent Group varies across the Heather structure, from about 125 to Average porosities within the Broom, Rannoch and Etive
370 feet. This largely reflects erosional truncation of the Brent Group due to crestal stripping Formations are typically moderate to good (11-20 per cent.) and
of the rotating fault block. The Tarbert and Ness Formations are progressively eroded permeabilities are also commonly moderate to good. Locally,
towards the crest of the structure so most of the oil in place is found in the Broom, Rannoch, extensive calcite cemented horizons occlude porosity. These
and Etive Formations. These three units have sheetlike geometries and have combined horizons are particularly well developed in the Broom Formation
thicknesses of between 125 and 180 feet. away from the crest of the structure. Permeability in the Broom
The Broom Formation varies from 25 to 50 feet in thickness, forming a laterally extensive formation ranges from 10 to 100 md, except where calcite cemented
sheetlike sediment body. The micaceous and argillaceous sandstones of the Rannoch and tight. Similar calcite cemented horizons also occur within the
Formation and the good reservoir quality sandstones of the Etive Formation form a thick, Rannoch Formation and the lower part of the Etive Formation. It is
broad, elongate to sheetlike sediment body. Within the Ness Formation sandbody geometry possible that these cemented horizons are associated with the
is extremely variable, from narrow ribbonlike bodies (fluvial channels) to lobate and development of a palaeo-OWC.
sheetlike sandbodies (channel margin complexes, crevasse-splay sandstones). The Rannoch Formation is generally finer grained than the other
Interbedded mudstones are expected to be of significant lateral extent, resulting in relatively two units and is commonly micaceous and argillaceous. It has
poor intercommunication between sandbodies. The Tarbert Formation sandstones originally average porosities of between 14 and 20 per cent. Kaolinite and illite
formed a laterally extensive, sheetlike sediment body, although crestal erosion has resulted are important in reducing permeability in the very fine and fine
in the truncation and local removal of this formation. grained Rannoch Formation sandstones. Permeability values rarely
The Heather structure is extensively faulted, with a set of northeast-southwest trending exceed 10 md.
faults compartmentalising the reservoir. The Etive Formation sandstones, which are mainly medium to
coarse grained and clean, have the best reservoir quality, with
average porosities varying from 15 to 20 per cent. and with
permeability of approximately 100 md.

FLUID PROPERTIES RESERVOIR PRESSURE

The Heather field contains a conventional black oil with a solution gas oil ratio of 650 The Heather field had an initial reservoir pressure of 5050 psig at
scf/stb and a stock tank oil gravity of 35 API. The formation volume factor of 1.38 rb/stb and 10650 feet TVDSS .This is overpressured by approximately 210 psi
the bubble point pressure of 3200 psig have been determined from correlations. relative to a normal water gradient to surface of 0.44 psi/ft.

10600

10700
DEPTH (feet TVDSS)

0.3 psi/ft

10800

CONTROLS ON RECOVERY OWC @ 10885 ft TVDSS


10900

Recovery is expected to be only moderate in the Heather field, due to impairment of 0.44 psi/ft
areal sweep efficiency by extensive intra-field faulting.
Careful reservoir management is required because the layered nature of the reservoir,
with strong vertical permeability contrasts, leading to uneven water advance in the various 11000
5000 5050 5100 5150 5200
producing units. This can lead to water override and premature water breakthrough in the
producing wells. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

UNITED KINGDOM
Water Depth 469
(feet)

Heather
Platform Type steel jacket
Function drilling/production/
accommodation

Jacket Weight 17000


(tonnes)
Total Weight 45000
(tonnes)
Accommodation 180

Well Slots 40 + 3 conductors


Wells 37

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 60000


(bbl/day)
Oil Export 16" x 35 km pipeline to Ninian Central

Gas Import 6" x 19.5km pipeline importing


gas from WELGAS

(A Unocal Photograph))

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 40

Net Present Value 612.44 332.94 224.84 169.58 124.65 72.32 13.57
Net Present Value (Deflated) 633.18 182.82 12.84 -72.36 -140.29 -217.10 -297.92

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio 1.41 0.96 0.73 0.59 0.47 0.30 0.07
Profit/Inv Ratio (Deflated) 0.47 0.16 0.01 -0.07 -0.15 -0.26 -0.40
NPV/Unit Oil Equiv. 5.50 4.98 4.42 3.96 3.43 2.51 0.67 30
NPV/Unit Oil Equiv. (Deflated) 3.22 1.46 0.13 -0.86 -1.94 -3.71 -7.04

Payback Year 1982


Nominal Rate Of Return % 21.62
Real Rate Of Return % 8.27

Post Corporation Tax 20

Net Present Value 337.12 173.25 107.66 73.62 45.68 12.86 -24.26
Net Present Value (Deflated) 190.63 -76.76 -178.74 -229.79 -270.26 -315.39 -360.87
Profit/Inv Ratio 0.77 0.50 0.35 0.26 0.17 0.05 -0.12
Profit/Inv Ratio (Deflated) 0.14 -0.07 -0.17 -0.24 -0.30 -0.37 -0.48
NPV/Unit Oil Equiv. 3.03 2.59 2.12 1.72 1.26 0.45 -1.20 10
NPV/Unit Oil Equiv. (Deflated) 0.97 -0.61 -1.83 -2.75 -3.74 -5.39 -8.52

Nominal Rate Of Return % 16.47


Real Rate Of Return % 3.26

Earnings Data
0
Gross Revenue 1,673.16 1,034.51 795.45 673.72 574.37 457.16 320.68 1975 1980 1985 1990 1995 2000
Royalty 135.74 83.32 63.36 53.17 44.85 35.07 23.81
Petroleum Revenue Tax 25.86 16.23 12.41 10.42 8.79 6.84 4.58 Year
Corporation Tax 275.33 159.69 117.18 95.96 78.97 59.46 37.84
Capital Expenditure 435.00 346.23 307.16 285.27 266.06 241.29 208.29
Operating Costs 434.30 234.94 170.71 140.45 117.02 90.91 62.57

Gross Revenue (Deflated) 3,009.91 1,939.93 1,523.52 1,307.02 1,127.63 912.39 655.70
Royalty (Deflated) 234.83 147.21 113.22 95.66 81.23 64.10 44.09
Petroleum Revenue Tax (Deflated) 44.96 28.27 21.64 18.20 15.35 11.97 8.02
Corporation Tax (Deflated) 442.55 259.58 191.58 157.43 129.97 98.29 62.95
Capital Expenditure (Deflated) 1,342.97 1,125.64 1,024.70 966.48 914.24 845.25 750.04
Operating Costs (Deflated) 693.46 413.60 316.59 268.83 230.62 186.31 135.41

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
ECONOMIC INDICATORS FROM 1/1/1996 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1975 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -654.6 0.0 0.0 0.0
1976 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -975.0 0.0 0.0 0.0
Pre Corporation Tax 1977 0.0 0.0 0.0 100.0 0.0 0.0 0.0 -100.0 -1,549.5 0.0 0.0 0.0
1978 5.2 0.0 10.0 50.0 0.0 0.0 0.0 -54.8 -677.3 2.0 0.0 0.0
Net Present Value -33.54 -31.00 -29.63 -28.76 -27.93 -26.76 -24.97 1979 63.4 0.0 20.0 50.0 0.0 0.0 0.0 -6.6 -69.7 18.0 0.0 0.0
Net Present Value (Deflated) -32.11 -29.68 -28.35 -27.52 -26.73 -25.60 -23.88 1980 86.8 1.7 25.0 25.0 0.0 0.0 1.7 35.1 303.1 16.0 0.0 0.0
NPV/Unit Oil Equiv. -15.06 -14.27 -13.83 -13.55 -13.28 -12.89 -12.29 1981 172.5 10.7 25.0 20.0 0.0 0.0 17.8 109.7 743.9 26.0 0.0 0.0
1982 246.6 20.6 24.0 30.0 0.0 0.0 41.1 151.5 849.3 36.0 0.0 0.0
Post Corporation Tax 1983 201.8 22.4 23.0 25.0 9.4 23.4 57.5 96.3 460.8 28.1 0.0 0.0
1984 214.3 20.4 22.0 20.0 6.7 67.8 94.9 77.4 328.0 26.0 0.0 0.0
Net Present Value -31.31 -29.01 -27.75 -26.96 -26.21 -25.14 -23.50 1985 183.6 19.4 21.0 15.0 7.6 65.0 92.0 55.6 207.6 24.0 0.0 0.0
Net Present Value (Deflated) -30.03 -27.81 -26.61 -25.85 -25.12 -24.10 -22.53 1986 78.3 11.9 20.0 0.0 2.3 51.2 65.4 -7.0 -22.9 22.0 0.0 0.0
NPV/Unit Oil Equiv. -14.06 -13.35 -12.95 -12.70 -12.46 -12.11 -11.56 1987 77.5 6.5 20.0 0.0 0.2 18.0 24.7 32.8 95.6 19.1 0.0 0.0
1988 45.9 4.9 21.0 5.0 -0.4 17.1 21.7 -1.8 -4.7 15.0 0.0 0.0
Earnings Data 1989 48.1 3.2 21.0 5.0 0.0 6.8 10.0 12.1 27.6 12.0 0.0 0.0
1990 52.3 3.8 21.0 10.0 0.0 7.2 10.9 10.3 20.3 11.0 0.0 0.0
Gross Revenue 24.30 23.71 23.38 23.17 22.96 22.66 22.18 1991 41.2 3.5 20.7 5.0 0.0 7.6 11.2 4.4 7.3 10.0 0.0 0.0
Royalty -2.96 -2.68 -2.53 -2.44 -2.34 -2.22 -2.02 1992 35.3 2.7 20.4 0.0 0.0 4.2 6.9 8.1 11.7 9.0 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1993 38.1 2.7 20.1 0.0 0.0 2.9 5.6 12.4 16.1 9.3 0.0 0.0
Corporation Tax -2.22 -2.00 -1.88 -1.80 -1.73 -1.62 -1.47 1994 30.7 2.5 19.8 0.0 0.0 4.1 6.6 4.3 5.1 8.2 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 27.3 1.9 19.5 0.0 0.0 2.2 4.1 3.7 3.9 7.1 0.0 0.0
Operating Costs 60.80 57.40 55.54 54.36 53.24 51.64 49.17 Total To Start Of Discounting ( 1/JAN/1996)
1,648.9 138.7 373.5 435.0 25.9 277.6 471.9 368.4 -873.1 109.1 0.0 0.0
Gross Revenue (Deflated) 24.30 23.71 23.38 23.17 22.96 22.66 22.18
Royalty (Deflated) -2.79 -2.52 -2.38 -2.29 -2.20 -2.08 -1.89 1996 24.3 1.5 19.2 0.0 0.0 1.5 3.0 2.1 2.0 6.1 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) -2.08 -1.87 -1.75 -1.67 -1.61 -1.51 -1.36 1997 0.0 -4.5 41.6 0.0 0.0 -3.7 -8.2 -33.4 -28.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 59.20 55.91 54.11 52.98 51.89 50.34 47.96 Total 24.3 -3.0 60.8 0.0 0.0 -2.2 -5.2 -31.3 -26.6 2.2 0.0 0.0

These cash flows include Heather field only


48/28a Arco 48/29 Arco 48/30 Phillips SUMMARY
12
8 The fields comprising the Hewett complex are located in Blocks
9 DAWN 48/28a, 48/29, 48/30 and 52/5a approximately 30 km off the coast of
East Anglia in the UK sector of the Southern North Sea.
6 The field was discovered in October 1966 by Well 48/29-1 which
DEBORAH encountered gas in the Triassic Bunter and Hewett sandstones and also
(C) in the underlying Zechstein dolomites. First production from the Hewett
1 BIG DOTTY
(A) 5 8,13 field began in 1969 and development of the field (including the Big
3 2 Dotty, Little Dotty, Della, Deborah, and Dawn satellites which produce
5 11
4 7 mainly from the Rotliegendes) has been achieved with six fixed
DELLA platforms and a number of subsea completions. Della produced first gas
1 6
3 in November 1988 and more recently in 1994, the Dawn discovery was
2 N.HEWETT made with Well 49/29-9 which is located 5km northwest of Big Dotty.
48/28b Rel. B
The Big Dotty, Little Dotty and Deborah satellites have been
1 LITTLE
9 rechristened Areas A, B, and C respectively.
DOTTY The Little Dotty satellite produces from both Upper Bunter and
HEWETT (B) Rotliegendes whereas the other three produce from the Rotliegendes
AT only. The field life of Hewett has been extended by the production of gas
from the underlying Zechstein (Zechsteinkalk) carbonates.
1 The current interests in the Hewett area in per cent. are:-
2
Phillips Petroleum Co UK Ltd.* 18.97
AGIP (UK) Ltd. 8.13
ARCO British Ltd. 19.85
3 Sun Oil Co Ltd. 10.69
52/4a Phillips 52/5a Phillips British Gas plc 3.91
Deminex UK Oil and Gas Ltd. 4.60
Fina Exploration Ltd. 18.56
0 5 km LASMO North Sea plc 4.60
Mobil 10.69
52/3 Rel. 52/4b Rel. 52/5b Mobil

operator *

RESERVOIR CHARACTERISTICS LOCAL SETTING

HEWETT FIELD The Hewett fields are located in the south of the Southern North Sea
Basin to the southwest of the Dowsing Fault Zone. The reservoirs
Fluid Properties Bunter Hewett produce from Triassic Bunter and Hewett sandstones, Lower Permian
Rotliegendes sandstones and Upper Permian Zechstein dolomites. All
Gas Gravity S.G. (air =1) 0.65 0.61 neighbouring accumulations only produce from Rotliegendes sandstone
Condensate Gas Ratio (bbl/MMscf) 3.2 4.8 horizons. The nearest Triassic production is found approximately 150
Gas Expansion Factor (vol/vol) 97 140 km to the north in the Esmond Complex and to the east in the K13 and
Reservoir Pressure, Pi (psig) 1355 2000 P6 fields in the Dutch sector.
at Datum Depth of (ft TVDSS) 2650 4350 The reservoir quality of the Rotliegendes sandstone in this area is
Reservoir Temperature (F) 114 134 generally moderate as in the Leman field and the 'V' fields located on
the Sole pit axis of inversion. The Hewett field satellites, located on and
Rock Properties to the southwest of the Dowsing Fault Zone, exhibit moderate to good
porosities and permeabilities.
Rock Type ---------------------------- Sandstone ------------------------
Stratigraphic Unit Bunter Sst. Fm. Hewett Sst. Bed
Geological Age ------------------------------- Triassic --------------------------
Porosity Range (per cent.) -------------------------------- 15-30 ----------------------------
Permeability Range (md) ----------------------------- 100-5000 -------------------------
Connate Water Saturation (per cent.) 15-25 N/A
Gas Water Contact (ft TVDSS) 3010 4450
Depth to Top of Structure (ft TVDSS) 2700 4000 FIELD DESCRIPTION

Reserves HEWETT AREA The main Hewett field produces from three horizons, the Bunter and
(inc. A, B, C and DELLA) Hewett Triassic sandstones and the Zechstein dolomite. The Area A, B,
and C satellites produce from Rotliegendes sandstones, with Area B
Total Gas Reserves (Bcf) 4236 also producing from the Bunter Sandstone Formation.
Total NGL Reserves (MMstb) 16 The Bunter and Hewett reservoirs of the main Hewett field are
Est. Gas Production to 31.12.95 (Bcf) 3843 structural traps. Both are anticlines trending northwest to southeast,
Est. NGL Production to 31.12.95 (MMstb) 15 bounded by faults to the northeast and southwest.
Remaining Gas Reserves (Bcf) 393 Porosities and permeabilities in the Triassic sandstones are good to
Remaining NGL Reserves (MMstb) 1 very good. The Rotliegendes reservoirs of the satellite fields display
moderate to good porosities and permeabilities with the exception of the
Production Deborah reservoir which has poorer properties.
The reservoirs were originally normally pressured with each
Water depth (feet) 80-120 accumulation displaying different gas compositions. The gas in both the
Production Start Date 1969 Triassic reservoirs and the Rotliegendes reservoir of Area A has a high
Peak Gas Production (yrly average) (MMscf/day) 780 nitrogen content. The gas in the Bunter sands of the main Hewett field
contains hydrogen sulphide requiring onshore treatment.
Achieved in 1976
Production from the Hewett field began in 1969. The field is now in
Platform(s) 5 steel jackets
decline with approximately 90 per cent. of ultimate reserves produced.
1 accommodation platform
The satellite field Della, which was discovered in 1987, has been
Number of Wells 27 platform + 4 subsea wells
developed by tying back the discovery well as a subsea satellite
Gas and NGL Export 2 x 30" pipelines to Bacton Shore
producer. It produced first gas in November 1988, and has ultimate
Terminal reserves of 60 Bcf of gas. The Dawn discovery was brought on
production in late 1995, with ultimate gas reserves assessed as 30 Bcf.
Recent drilling in the main Hewett field has focused on the
development of the fractured Zechstein carbonate formation. The
Zechstein reservoir has low matrix porosity and permeability, but well
productivities are enhanced by natural fracturing.
STRATIGRAPHY AND STRUCTURE 48/28 48/29 48/30
HEWETT
The Hewett field is a structural trap comprising a TOP BUNTER SANDSTONE

UNITED KINGDOM
northwest-southeast trending anticline at both principal DEPTH STRUCTURE
reservoir levels. The structure is fault bounded to the 34
00
6
(Contours in feet)

Hewett
northeast and southwest.
1
The gas is principally found in the Triassic, Bunter 5
Sandstone Formation and the Triassic, Hewett 3 2
Sandstone Bed (Brockelshiefer Member; Bunter Shale 4
5
7
Formation) with a minor but potentially significant
contribution from the Permian Hauptdolomit. The 1
3
6
average depth to the Bunter Sandstone Formation is
2
2900 feet, and to the Hewett Sandstone Bed is 4150 feet.
30
Maximum observed gross pay thicknesses are 323 feet 00
32 1
(Bunter) and 202 feet (Hewett). The Hewett sandstone 00

reservoir is sealed by the mudstones of the Bunter Shale


Formation and the Bunter sandstone reservoir is sealed
by the mudstones and evaporites of the Dowsing 52/3 52/4
1
52/5
Formation (Haisborough Group). 28
00
2
SEDIMENTOLOGY AND DEPOSITIONAL
ENVIRONMENT
3

34
32

00
00
The Hewett Sandstone Bed represents a wedge of
continental alluvial sediment developed within the Bunter
Shale lacustrine basin probably sourced from the London
Brabant Massif to the southwest. This is a local 0 5 km

development within the Brockelshiefer Member


comprising a stacked series of braided fluvial, sheetflood (Alter Cumming and Wyndham, 1981)
and channel sandstones. It passes laterally into more
argillaceous and silty lake margin/inland sabkha
sediments. In the Hewett field area, the Lower Shaly
Sand Unit consists of sheetflood and lake margin/inland
sabkha sandstones and minor siltstones. The Main Clean Sand Unit INTERPRETATIVE STRUCTURAL CROSS SECTION
comprises stacked braided fluvial channel-fill sandbodies, and the 52/5-1
overlying Upper Shaly Sand Unit represents a section of sheetflood and
lake margin/inland sabkha sandstones and siltstones.The sheetflood Feet SW NE
0
sandstones which dominate the upper and lower units are generally TERTIARY
finer grained, and often more argillaceous than the channel sandstones U. CRETACEOUS
L. CRETA
CEOUS
of the middle, Main Clean Unit.
The Bunter Sandstone Formation represents a thick sheet of alluvial 2000
TRIASSIC JURASSIC
sediment which resulted from progradation across the Bunter Shale
lacustrine basin. The formation comprises a stacked series of
Bunter Sandstone
sheetflood and braided fluvial channel sandstones with a basal,
relatively thin, more argillaceous unit of distal braidplain and lake Hewett Sandstone
4000
margin/inland sabkha sandstones, siltstones and mudstones. Two
Zechstein Group
similar argillaceous units are developed within the reservoir section
towards the southeastern end of the field. Rotliegendes Group
6000 CARBONIFEROUS

0 1 2 3 km

REPRESENTATIVE WELL SECTION - 48/29-2


CORE

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT
VC

VF

(PERCENT) (md) (Inches)


M
C

B C P 40 0 0.1 10000 5 25
V
V
Desert lake mudstones.
V Laterally extensive non-reservoir interval.
HAISBOROUGH GP.

Sheet flood and low sinuosity,braided fluvial


channel sandstones.
3050

Geometry
Thin,sheetlike,flood generated sandstones
I with more elongate lenticular channel fill
M I units,coalesced to form laterally extensive,
sheet geometry sandbody.
BUNTER SANDSTONE FORMATION

I
and K
48/29-2 and K of sandstones generally good,
3100

I
BACTON GROUP

locally moderate to very good.


I
TRIASSIC

I
3150
BACTON GROUP; BUNTER SHALE FORMATION

Laterally extensive,sheet geometry,distal


BROCKELSHIEFER MBR.; HEWETT SST.BED

sheet flood sandstones and lake margin


Sheet flood sandstones
Low sinuosity, braided fluvial channel
sandstones.
Geometry
4150

Elongate lenticular sandbodies possibly


coalesced to form more extensive sheetlike
sandbody.
TRIASSIC

and K
moderate to good.
Sheetflood and possible lake margin
sandstones with thin mudstone
partings.
4200

Geometry
Laterally extensive sheet geometry
sediment body.
and K
and K moderate to good in upper part,
moderate to poor in lower, more
argillaceous section.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
52/5-1 SE
52/5-2
0
10000
on
NW 100 rmati
sin g Fo
48/29-3 200 feet 48/29-2 Dow

Hewett

Bunter Sandstone
Formation
in
raidpla
antly b
Domin ones
sandst diments
1000
margin se
plain/lake
Distal braid

100
Dominantly desert lake mudstones

Bunter Shale Formation


Brockelshiefer Member

PERMEABILITY (md.)
Hewett Sandstone Bed

d
Upper Shaly San
Main Clean Sand 10
Lower Shaly Sand

Zechstein Group

The Hewett sandstone reservoir is subdivided into three units based on facies and these 1
units form the basis of the reservoir layering. The Lower and Upper Shaly Units are
generally thin and consist of poorer reservoir quality sandstones than the Main Clean Unit.
All three units are laterally extensive in the Hewett field area. The Lower Shaly Unit may
locally thicken, possibly due to the presence of laterally restricted channel sandbodies (Well
48/29-2). 0.1
Reservoir sandstones within layers have an overall sheet like geometry but with a
complex internal architecture resulting from the interstratification and stacking of laterally
extensive sheetflood sandstones and more laterally restricted channel-fill sandbodies.Thin
Hewett
mudstones and siltstones developed within layers will probably be lenticular to sheetlike and
Bunter
laterally impersistent. 0.01
The Bunter sandstone reservoir section comprises a basal argillaceous unit of 0 10 20 30
sandstones, siltstones and mudstones, overlain by a thick, generally massive sandstone
POROSITY (per cent.)
section. Two thin argillaceous units are developed towards the southeastern end of the field.
The sandstones form a thick sheet geometry sandbody, but with a complex internal
architecture resulting from the interstratification and stacking of laterally extensive Porosity and permeability values for the Triassic reservoirs are
sheetflood sandstones and more laterally restricted channel-fill sandbodies. The thin moderate to very good, with average values which are good (Bunter,
argillaceous units may form local vertical permeability baffles or barriers. 25.7 per cent.; Hewett, 21.4 per cent.) and good to very good
(Bunter, 474 md; Hewett 1310 md) respectively.
Trends in porosity and permeability values are controlled by the
FLUID PROPERTIES primary textural characteristics of grain size, sorting and detrital clay
content, and hence by facies. The braided fluvial channel facies
Fields of the Hewett area contain dry gas, with the Hewett and Bunter sands of the main generally have the best reservoir quality, and distal braid plain/inland
Hewett field having liquid gas ratios of 4.8 and 3.2 bbl/MMscf respectively. These two sabkha sheetflood sandstones typically have poorer reservoir
reservoirs contain gas of strikingly different compositions with 8.4 per cent. N2 and 0.02 per quality.
cent. H2S in the Bunter sands reservoir compared with 2.36 per cent. N2 with no H2S in the Diagenetic modification is not severe in either Bunter or Hewett
Hewett reservoir. Reported wellstream compositions for the Hewett fields are listed below: sandstones, with only minor occlusion of porosity and permeability
due to localised development of halite cement.
Porosities in Rotliegendes satellite fields are generally moderate
to very good (Area C 10 - 20 per cent.; Area B 16 - 25 per cent.), with
1.00 moderate to very good permeabilities (10 - >1000 md).
GAS DEVIATION FACTOR Z

RESERVOIR PRESSURE

The separate fields of Hewett were all originally normally


0.90
pressured with a hydrostatic gradient to surface of 0.46 psi/ft.
Zi = 0.87
Zi = 0.85

2000

Hewett SS @ 134F 0.03 psi/ft


Bunter SS @ 114F
0.80 3000 Hewett Field Bunter SS GWC @ 3010 ft TVDSS
0 1000 2000 3000 4000
5000 0.04 psi/ft
PRESSURE (psig) Area B Bunter GWC @ 3675 ft TVDSS
DEPTH (feet TVDSS)

COMPOSITION HEWETT HEWETT AREA C AREA A AREA B AREA B 4000


BUNTER HEWETT SS BUNTER ROT 0.045 psi/ft
(mol. %) 52/5-1X 48/30-8 48/29-6 48/30-1X 48/30-4 Hewett Field Hewett SS
GWC @ 4450 ft TVDSS
CO2 0.08 0.02 - 0.08 0.13 0.21 0.46 psi/ft
5000
N2 8.40 2.36 0.61 3.22 2.70 1.22
H2S 0.02 - - - 0.02 -
He - - - 0.07 0.06 - 0.06 psi/ft
C1 83.19 92.13 94.4 86.97 91.64 94.51
Area A GWC @ 5845 ft TVDSS Area B Rotliegendes SS
C2 5.32 3.56 3.75 5.06 3.78 2.93 6000 Area C GWC @ 6090 ft TVDSS GWC @ 5940 ft TVDSS
C3 2.14 0.85 0.74 2.23 0.96 0.50
C4 0.36 0.38 0.26 1.01 0.41 0.18
C5 0.08 0.18 0.12 0.41 0.15 0.06
C6 0.13 0.13 0.09 0.25 0.04 0.03
C7+ 0.28 0.39 0.03 0.70 0.11 0.36 7000
S.G.(AIR=1.0) 0.65 0.61 0.59 0.66 0.61 0.59 1000 2000 3000 4000
C.V.(Btu/scf) 1025 1047 1056 1115 1042 1046
INITIAL RESERVOIR PRESSURE (psig)
(Sep gas)

CONTROLS ON RECOVERY

The overall recovery factor from the Hewett fields is expected to be very good
(above 90 per cent.), resulting from:

predominantly good to very good permeabilities in Triassic braided fluvial and compression, enabling very low abandonment pressures to be achieved.
sheetflood sandstones.
relatively simple sheet geometry Triassic reservoir sandstones with no laterally The recovery factor from the Zechstein carbonate will be moderate, reflecting the
extensive permeability barriers within either of the reservoir sandstone poor matrix reservoir quality and the variable density of fracturing within the reservoir
sequences. area. The Rotliegendes reservoir quality in the satellite fields is generally good. The
faulting of the reservoir at top Bunter Sandstone level, limiting water influx from recovery factor will vary from poor, where water influx has adversely influenced
the aquifer. production performance, to very good where water influx is minimal.
FACILITIES SPECIFICATIONS

TERMINAL PRODUCTION ACCOMMODATION

UNITED KINGDOM
(FTP) (52/5A, 48/29A, B, C) (Q)

Hewett
Water Depth (feet) 80 80-123 79
Platform type ------------- 8 leg steel jacket------------- 4 leg steel jacket

Function terminal production/ accommodation


accom./process wellhead/accom.

Accommodation 44 24 44

Well Slots 32
Wells 27

Platforms B and C now unmanned

PROCESSING AND EXPORT SPECIFICATIONS

Peak Gas Throughput --------------------------------------- 1460 -----------------------------------------


(MMscf/day)

y
Gas Export 2 x 30" x 30 km 24" pipeline to A
pipelines to 2 x 16" pipelines from
Bacton Shore A to FTP
(Reproduced by permission of Phillips Petroleum)
terminal

The Hewett field facilities comprise four production platforms 52/5-A, 48/29-A,
48/29-B and 48/29-C tied back to a central terminal platform 49/29-FTP.
Additionally there are four satellite sub-sea wells tied back to the main platform. An
accommodation platform was installed in December 1992. PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED
Gas export is achieved via two 30" pipelines to the Bacton Shore terminal
where the compression facilities are located. Increased production from the low 20 800
Liquid
pressure wells is ingeniously achieved offshore with venturi nozzles which are
supplied with high pressure gas from other less depleted reservoirs in the Hewett Gas

yyyy
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


field.
15 600

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
10 400
Pre Corporation Tax

yyyy
Net Present Value 976.63 450.49 295.59 226.90 176.18 122.71 69.48
Net Present Value (Deflated) 2,390.69 1,228.78 850.32 671.12 532.12 377.21 210.69
Profit/Inv Ratio 3.28 3.39 3.23 3.06 2.84 2.49 1.88
Profit/Inv Ratio (Deflated) 2.96 2.41 2.03 1.80 1.57 1.26 0.84
NPV/Unit Oil Equiv. 1.35 1.21 1.10 1.03 0.96 0.86 0.71 5 200
NPV/Unit Oil Equiv. (Deflated) 0.99 0.82 0.72 0.67 0.61 0.53 0.40

Payback Year 1972


Nominal Rate Of Return % 47.73
Real Rate Of Return % 36.62
0 0
Post Corporation Tax
1965 1975 1985 1995 2005 2015
Net Present Value 501.62 241.03 159.72 123.10 95.80 66.74 37.33
Net Present Value (Deflated) 1,324.95 691.22 478.19 375.74 295.35 204.51 104.78 Year
Profit/Inv Ratio 1.69 1.81 1.75 1.66 1.55 1.35 1.01
Profit/Inv Ratio (Deflated) 1.64 1.35 1.14 1.01 0.87 0.69 0.42
NPV/Unit Oil Equiv. 0.70 0.65 0.60 0.56 0.52 0.47 0.38
NPV/Unit Oil Equiv. (Deflated) 0.55 0.46 0.41 0.37 0.34 0.29 0.20

Nominal Rate Of Return % 41.15


Real Rate Of Return % 30.82
CASH FLOW REPORT
Earnings Data
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Gross Revenue 2,232.24 886.12 560.96 427.10 332.31 236.05 143.65 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Royalty 190.12 81.60 52.58 40.20 31.27 22.07 13.15 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 475.01 209.46 135.87 103.80 80.37 55.97 32.15 1967 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -403.9 0.0 0.0 0.0
Capital Expenditure 297.68 133.00 91.49 74.23 61.94 49.35 36.98 1968 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -728.2 0.0 0.0 0.0
Operating Costs 767.82 221.03 121.30 85.76 62.92 41.92 24.04 1969 4.4 0.0 2.0 10.0 0.0 0.0 0.0 -7.6 -488.1 0.4 100.1 0.0
1970 8.5 0.3 2.6 0.0 0.0 0.0 0.3 5.6 316.6 0.7 180.1 0.0
Gross Revenue (Deflated) 4,710.04 2,407.04 1,724.13 1,409.89 1,169.19 902.64 614.79 1971 16.3 1.0 3.2 5.0 0.0 0.0 1.0 7.1 349.9 1.3 325.2 0.0
Royalty (Deflated) 428.04 220.44 156.36 126.63 103.84 78.66 51.77 1972 27.2 2.1 3.8 10.0 0.0 0.0 2.1 11.4 475.3 2.0 500.3 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1973 32.2 2.9 4.4 10.0 0.0 0.1 3.0 14.8 537.8 2.2 550.4 0.0
Corporation Tax (Deflated) 1,065.74 537.56 372.13 295.37 236.77 172.70 105.91 1974 43.5 3.8 5.0 5.0 0.0 7.6 11.4 22.0 674.1 2.7 680.5 0.0
Capital Expenditure (Deflated) 808.29 510.49 417.89 373.80 338.93 298.49 250.90 1975 55.4 5.1 6.7 0.0 0.0 15.1 20.2 28.5 746.4 3.0 740.5 0.0
Operating Costs (Deflated) 1,083.02 447.33 299.55 238.34 194.30 148.27 101.43 1976 72.6 6.9 8.3 5.0 0.0 22.3 29.2 30.2 588.2 3.1 780.5 0.0
1977 84.4 8.6 10.0 5.0 0.0 26.8 35.4 34.0 527.2 3.1 770.5 0.0
1978 78.6 8.9 11.3 10.0 0.0 31.2 40.1 17.1 211.7 2.4 610.4 0.0
1979 85.2 8.8 12.5 10.0 0.0 25.4 34.2 28.6 301.8 2.4 600.4 0.0
1980 103.7 10.2 13.8 5.0 0.0 27.9 38.1 46.8 404.0 2.5 630.4 0.0
1981 95.9 10.8 15.0 10.0 0.0 38.2 49.1 21.8 147.6 2.0 490.3 0.0
1982 86.7 9.7 16.3 5.0 0.0 31.5 41.2 24.2 135.8 1.6 400.3 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1983 88.1 9.1 17.5 0.0 0.0 29.3 38.4 32.2 153.9 1.5 375.3 0.0
1984 88.9 9.2 18.8 5.0 0.0 31.0 40.2 24.9 105.6 1.4 360.2 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1985 82.3 8.7 20.0 5.0 0.0 26.3 35.0 22.3 83.2 1.3 320.2 0.0
1986 80.5 8.2 19.0 20.0 0.0 21.0 29.2 12.3 40.0 1.2 310.2 0.0
Pre Corporation Tax 1987 70.0 7.3 18.0 20.0 0.0 16.8 24.2 7.8 22.9 1.0 260.2 0.0
1988 55.5 5.7 17.5 20.0 0.0 12.7 18.4 -0.4 -1.1 0.8 200.1 0.0
Net Present Value 56.16 77.93 83.49 85.34 86.15 85.99 83.55 1989 55.7 4.6 18.4 10.0 0.0 7.5 12.2 15.1 34.7 0.6 176.1 0.0
Net Present Value (Deflated) 76.71 86.50 87.95 87.86 87.20 85.48 81.58 1990 74.4 5.7 19.3 10.0 0.0 7.5 13.2 31.9 62.7 0.8 215.1 0.0
NPV/Unit Oil Equiv. 0.85 1.45 1.74 1.90 2.05 2.24 2.49 1991 87.1 7.6 20.3 15.0 0.0 12.8 20.3 31.5 52.4 0.9 240.2 0.0
1992 79.6 7.6 21.3 45.0 0.0 15.5 23.1 -9.8 -14.3 0.8 212.0 0.0
Post Corporation Tax 1993 73.5 6.3 21.5 15.0 0.0 10.3 16.6 20.4 26.5 0.7 192.0 0.0
1994 49.4 4.4 21.5 5.0 0.0 9.0 13.4 9.5 11.3 0.4 136.0 0.0
Net Present Value 10.09 38.72 47.61 51.41 53.98 56.17 57.00 1995 62.9 3.9 21.5 10.0 0.0 3.1 7.0 24.3 26.0 0.3 170.0 0.0
Net Present Value (Deflated) 35.51 51.14 55.43 57.01 57.87 58.17 57.11 Total To Start Of Discounting ( 1/JAN/1996)
NPV/Unit Oil Equiv. 0.15 0.72 0.99 1.14 1.28 1.46 1.70 1,742.5 167.5 369.5 285.0 0.0 428.9 596.5 491.5 4,400.0 15.0 3,842.5 0.0

Earnings Data 1996 59.2 4.7 21.5 0.0 0.0 7.4 12.1 25.6 24.6 0.3 153.8 0.0
1997 55.8 4.4 22.4 0.0 0.0 7.4 11.9 21.6 18.5 0.3 139.1 0.0
Gross Revenue 489.73 390.13 345.62 320.62 298.69 270.51 233.30 1998 52.6 4.1 23.3 0.0 0.0 7.0 11.1 18.2 13.9 0.3 125.8 0.0
Royalty 22.57 21.41 20.39 19.67 18.94 17.87 16.21 1999 49.3 3.8 24.2 0.0 0.0 6.4 10.2 14.9 10.1 0.2 113.8 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2000 46.4 3.6 25.2 0.0 0.0 5.6 9.2 12.1 7.3 0.2 102.9 0.0
Corporation Tax 46.07 39.20 35.88 33.94 32.17 29.82 26.55 2001 43.7 3.5 26.2 0.0 0.0 4.7 8.2 9.3 5.0 0.2 93.1 0.0
Capital Expenditure 12.68 9.23 7.69 6.82 6.07 5.11 3.88 2002 41.2 3.1 27.3 12.7 0.0 3.9 7.0 -5.7 -2.7 0.2 84.2 0.0
Operating Costs 398.32 281.56 234.05 208.79 187.52 161.54 129.66 2003 38.9 2.7 27.7 0.0 0.0 2.0 4.7 6.5 2.8 0.2 76.2 0.0
2004 36.3 2.4 28.0 0.0 0.0 1.6 4.0 4.3 1.6 0.1 68.9 0.0
Gross Revenue (Deflated) 414.77 336.42 301.00 280.96 263.27 240.39 209.86 2005 34.2 2.1 28.4 0.0 0.0 1.1 3.1 2.6 0.9 0.1 62.3 0.0
Royalty (Deflated) 22.14 20.35 19.19 18.43 17.70 16.66 15.09 2006 32.2 1.8 28.8 0.0 0.0 0.6 2.4 1.0 0.3 0.1 56.4 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 41.20 35.36 32.52 30.85 29.33 27.30 24.47 2007 0.0 -13.6 115.5 0.0 0.0 -1.61 -15.20 -100.26 -26.78 0.0 0.0 0.0
Capital Expenditure (Deflated) 10.00 7.28 6.06 5.38 4.79 4.03 3.06
Operating Costs (Deflated) 305.92 222.30 187.79 169.28 153.58 134.23 110.14 Total 489.7 22.6 398.3 12.7 0.0 46.07 68.64 10.09 55.43 0.8 392.9 0.0

These cash flows include Hewett and Della fields


SUMMARY
0 4 km
211/16b
210/19b Rel. 210/20b Rel. Mobil The Hudson oil field is located in the UK Sector of the Northern North
210/24c Rel. 210/25c Rel. 211/21a Sea, lying in some 525 feet of water. It was originally discovered by Well
Shell 210/24a-2 in 1977, but was considered uncommercial until 1987 when
4
a complete oil bearing Brent sequence was found, by Well 210/24a-3.
3 Development has been phased with first oil produced in July 1993 using
8 the Petrojarl-1 floating production vessel. During this phase oil was
7 offshore-loaded using shuttle tankers. The second phase which
210/24b commenced in January 1995 involves a subsea tieback to the Tern
BP 1 A
TERN 211/21b
platform with the Tern facilities providing gas lift and water injection as
Shell
5 well as processing the produced fluids for onward export via the Brent
6 2 System to Sullom Voe.
HUDSON The current interests in the Hudson field in per cent. are:
3
4 2 210/
25e Amerada Hess* 28.46
Rel.
CIECO 25.77
6,6A
1,1a 7 Exxon 12.88
Mobil 20.00
210/25a RD/Shell 12.88
Shell
5 * operator

7
210/24a Amerada 210/25d Rel. 210/25b Arco
210/29b Rel. 210/30a 210/30b Amoco 211/26b
Amoco 3 Rel.

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Hudson oil field lies predominantly in Block 210/24a in the East
Shetland Basin of the Northern North Sea. The reservoir comprises
Oil Gravity (API) 33 sandstones of the Middle Jurassic Brent Group and as such the field is
Gas/Oil Ratio (scf/stb) 177 the most westerly producing Brent accumulation to date. The nearest
Bubble Point Pressure, Pb (psia) 910 producing field is Tern, some 11 km to the east. It is through the
Formation Volume Factor at Pi (rb/stb) 1.137 Cormorant/Tern complex that oil is exported via the Brent System to
Original Reservoir Pressure, Pi (psia) 3012 Sullom Voe.
At Datum Depth of (ft TVDSS) 6600
Reservoir Temperature (F) 161

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group
Geological Age Middle Jurassic
Porosity Range (per cent.) 15-32
Permeability Range (md) 10-10000
Connate Water Saturation (per cent.) 15-30
Oil Water Contact (ft TVDSS) 6706-7270
Depth to Top of Structure (ft TVDSS) approximately 6300

Reserves

Ultimate Oil Reserves (MMstb) 85


Est. Oil Production to 31.12.95 (MMstb) 30 FIELD DESCRIPTION
Remaining Oil Reserves (MMstb) 55
Although no published structure maps are available, operator
Production provided information show Hudson to be a relatively simple tilted fault
block structure, similar to those at the nearby Tern and Eider fields. The
Water depth (feet) 515 reservoir occurs in the Middle Jurassic Brent Group, with a total
Production Start Date July 1993 thickness of some 350 feet. Porosities and permeabilities are good. The
Peak Production (Oil and NGL) (stb/day) 35000 reservoir contains a 33 degrees API oil. Viscosity is 1.82 cp at initial
Platform(s) 1 sub-sea template formation pressure with an initial gas oil ratio of 177 scf/stb. This yields
Number of Wells 6 producers, 2 injectors favourable waterflood conditions.
Oil and NGL Export Pipeline to North Cormorant via Tern Hudson was brought on stream in July 1993 in a phased
development initially utilising a floating production vessel. This enabled
the future development strategy to be adjusted according to experience
and performance. Eventually a subsea installation was decided upon
and this was tied back to the Tern facilities ready for start up in January
1995. Two further appraisal wells have been drilled since the discovery
well, and to date five producers and two injectors have been completed.
Flow rates have been improved and maintained, using gas lift and water
injection provided by the Tern facilities. The second phase of production
utilises seven subsea wells and the plateau production rate is expected
to average some 35,000 stb/day, with an anticipated field life of 10-12
years.
Oil was originally shuttled to shore by tankers, but since the start of
Phase II in early 1995, a pipeline to the Brent System via Tern has been
used.
STRATIGRAPHY AND STRUCTURE complex and, in the upper part, delta abandonment
and marine transgression phases of sedimentation.
Hudson field is an easterly dipping fault block, The Broom Formation at the base represents

UNITED KINGDOM
bounded to the west by a major down to the west stacked sub-littoral sheet sands which mark the
boundary fault. The field is dip closed to the east. It onset of Middle Jurassic coarse clastic deposition.

Hudson
is a typical Brent province trap and as is the case in The Broom sediments are interpreted to have been
many other Brent fields, is likely to show erosion of derived from the East Shetland Platform to the
the reservoir from the crestal parts of the structure. west, and form a northeasterly thinning wedge. The
The reservoir in the Hudson field comprises the Rannoch and Etive Formations represent the
Middle Jurassic Brent Group. It overlies a Lower shoreface and foreshore/shoreline components of
Jurassic sequence of Dunlin Group shales, a thin the prograding delta shoreline. The Rannoch
sandy Statfjord Formation and an unknown Formation consists of a complex of variably 6 2
thickness of Triassic sediments. The reservoir is top micaceous wave reworked marine sands and are
sealed by the shales of the overlying Upper succeeded by the clean high quality sands of the
Jurassic Humber Group and Lower Etive Formation. The Etive comprises a lower 3

7000
Cretaceous Cromer Knoll Group. The section is coarse grained, probable tidal channel/inlet
buried to its present day depth by 5000 to 6000 feet sequence overlain by a finer grained foreshore
of Tertiary and Upper Cretaceous Shetland Group. deposit. The two are separated by a thin coaly unit,
The Brent Group is subdivided into five principal indicating that progradation was not necessarily a

650
formations, namely the Tarbert, Ness, Etive, simple single event. The sediments of the Ness

0
4A
Rannoch and Broom. At Hudson the lower three Formation comprise the delta plain facies. At
formations represent the principal reservoir sands. Hudson the Ness consists of a series of mud
It is expected that the Tarbert Formation may be dominated delta plain or embayment shales, with a
locally absent due to erosion on the structure crest. single correlatable mid-Ness sand unit. This is
interpreted to represent a possible minor shoreline 7
progradation or lagoon/bay fill sequence. The
SEDIMENTOLOGY AND DEPOSITIONAL Tarbert sediments were deposited during a phase of HUDSON
ENVIRONMENT marine transgression and minor reprogradation SCHEMATIC
which occurred during the final abandonment and DEPTH STRUCTURE
The Brent Group represents the deposits of a drowning phase. 0 1 km
northerly prograding deltaic and shallow marine
(Contours in feet TVDSS)

(Modified from that supplied by the operator)

INTERPRETATIVE STRUCTURAL CROSS SECTION


210/24-2 210/24a-3 210/24b-7
Feet
2000

3000

4000 TERTIARY

5000
CRETACEOUS
CRETACEOUS Chalk Group
Chalk Group
LOWER CRETACEOUS
Cromer Knoll Group
6000

Humber Group
7000 Brent Group
TRIASSIC Statfjord Formation

8000
Dunlin Group
0 1 km

REPRESENTATIVE WELL SECTION - 210/24a-3

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
0 150 ROCK 1.95 2.95

AGE
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON
(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15

Blanket of impermeable shales


6 4 1

Sheet sand eroded from crest 2


6450
Delta plain sediments
NESS FORMATION

210/24a-3
Geometry
Lagoon/bay fill sand sheet isolated
by shales
6500

and k
Good in clean sands, poor everwhere else

Shoreline sandstones
6550
ETIVE FM.

Geometry
Sheet of clean sands
MIDDLE JURASSIC
BRENT GROUP

and k
Excellent quality with very high permeability
at base
6600

M M Shoreface sandstones
RANNOCH FORMATION

M
Geometry
Sheet of micaceous sands

and k
6650

M M
Good quality except where very micaceous
M or calcite cemented

M M
M
Shallow marine sandstones
6700
BROOM FORMATION

Geometry
Sheet of clean sands

and k
Generally good
6750

Blanket of impermeable shales


7 5 3

1. HEATHER FORMATION 2. TARBERT FORMATION 3. DRAKE FORMATION 4. HUMBER GROUP


5. DUNLIN GROUP 6. MIDDLE-UPPER JURASSIC 7. LOWER JURASSIC
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000
210/24-2 210/24a-3 210/24b-7
Upper reservoir
1 probably faulted

Hudson
out in

Ness Fm
Well 210/24b-7

1000

Etive Fm
Brent Group
?

100
m
m

Broom Fm Rannoch Fm
m
m m

PERMEABILITY (md.)
m
m m
m
0
10

1. Tarbert Fm
100 ft
1

The Broom Formation consists of some 50 to 80 feet of coarse grained, good reservoir
quality sand which forms a correlatable sheet across the field. The Rannoch Formation
Tarbert
forms a similar sheet geometry unit, 70 to 85 feet thick, but consists of variable and 0.1
Ness
generally poorer quality micaceous sands. The high quality sands of the Etive Formation
Etive
also show a broad sheet geometry, 70 to 85 feet thick, with markedly higher permeability in
the lower part where the sands are coarsest grained. The heterolithic Ness Formation Rannoch

consists of three main units. These are upper and lower shale dominated units separated Broom
by a thin, 20 foot thick, sheet sandstone unit. The uppermost Tarbert Formation also 0.01
0 5 10 15 20 25 30 35
comprises a sheet geometry sand. Reservoir complexity is expected to be most severe in
POROSITY (per cent.)
the Tarbert and Ness Formations. The Tarbert may be absent from the structure crest due
to erosion, and the thin sands of the upper reservoir, although depositionally sheetlike, will
be more prone to discontinuity due to intra-reservoir faulting.
Porosity and permeability are excellent in this shallow Brent
reservoir.
Sandstone porosities show a relatively restricted range,
predominantly from 15 to 30 per cent., whereas permeability values
typically range from 1md to 10 Darcies. Permeability is highest in the
lower Etive Formation where the sands are clean and coarse
grained. However, the coarse grained sands of the Broom
Formation, although slightly muddy, also have high permeability. The
sandstones of the Ness and Rannoch Formations show wide ranges
in permeability due to the wide range of textural types (grain size and
sorting), mud content and mica content present in these formations.
FLUID PROPERTIES Sedimentary facies type therefore controls both the magnitude
and trends in reservoir quality. Diagenetic effects are of minor
The 33 degrees API gravity oil in the Hudson field has a viscosity of 1.82 cp at the initial importance, with reservoir quality only locally severely reduced
formation pressure of 3012 psia and 1.47 cp at the saturation pressure of 910 psia. The oil where nodular calcite cements are developed. These tend to occur
formation volume factor at saturation pressure is 1.137 rb/stb and the in situ fluid density at most frequently in the Rannoch Formation.
the initial reservoir pressure is 0.811 g/cm3. The initial gas oil ratio is 177 scf/stb.

200 1.20 2.0


RESERVOIR PRESSURE
GOR

The Hudson field is normally pressured relative to a gradient to


150 1.15 1.5
Bo surface of 0.45 psi/ft. The depth of the oil water contacts in the Lower
GAS VISCOSITY (cp)

Brent (Etive, Rannoch and Broom Formations), Ness and Tarbert


GOR (scf/stb)

Bo (rb/stb)

Formations are interpreted to differ. The Tarbert and Ness Formation


100 1.10 1.0
sands are at a higher depth corrected pressure relative to the Lower
Brent and deeper oil water contact are interpreted for these units.
0
The observed pressure differences between formations require the
50 1.05 0.5
Upper Ness and Lower Ness shales to be sealing.

0 1.00 0.0
0 500 1000 1500
PRESSURE (psig)

6000

6500 0.34 psi/ft


DEPTH (feet TVDSS)

Lower Brent OWC


@ 6706 ft TVDSS

CONTROLS ON RECOVERY 7000


0.43 psi/ft

The oil recovery factor in the Etive, Rannoch and Broom Formations, which contain most Ness OWC @ 7185 ft TVDSS
of the reserves, is expected to be relatively good, over 40 per cent. This is due to the Tarbert OWC
generally very good quality reservoir sandstones and marginally favourable/neutral oil @ 7270 ft TVDSS

mobility ratio to water flooding, offset to some extent by the limited number of wells which
will impact on the areal sweep efficiency. A much lower recovery factor is expected for the 7500
overlying Ness and Tarbert sands due to their more variable reservoir quality and 2900 3100 3300 3500
discontinuous nature. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS
Tern Platform
SCHEMATIC FIELD LAYOUT

UNITED KINGDOM
Water Depth 515
(feet)

Hudson
Production Facility Type Subsea Manifold
8-inch Water Injection Function production, water injection, gas lift
2x10-inch Production
8-inch Production/Test
6-inch Gas lift
Total Weight 270
(tonnes)
Hudson Control and
Chemical Accommodation N/A
Injection
Umbilicals
Controlling Host Tern platform
Phase 2 Well Slots 8
Wells

s
km
Phase 1 Wells - production 6

.0
Wells

11
Future
U1
- water injection 2

Manifold

2x8-inch Production /Test EXPORT SPECIFICATIONS


Control and Chemical with 2x2-inch gas lift
Injection Umbilicals
Liquids export 11km 10 pipeline to Tern then to
1.7 kms
Sullom Voe via Brent System

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 331.96 246.46 206.97 184.53 164.73 139.24 105.75
Net Present Value (Deflated) 313.27 231.79 194.30 173.03 154.27 130.15 98.48
Profit/Inv Ratio 1.70 1.42 1.27 1.18 1.10 0.99 0.83
Profit/Inv Ratio (Deflated) 1.52 1.26 1.13 1.05 0.97 0.87 0.73
NPV/Unit Oil Equiv. 3.93 3.74 3.61 3.51 3.41 3.25 2.98
NPV/Unit Oil Equiv. (Deflated) 3.84 3.61 3.46 3.35 3.24 3.07 2.78

Payback Year 1995


Nominal Rate Of Return % 83.73 PRODUCTION PERFORMANCE
Real Rate Of Return % 78.78 HISTORICAL AND PROJECTED
Post Corporation Tax 40
Net Present Value 212.84 157.57 131.65 116.82 103.67 86.68 64.25
Net Present Value (Deflated) 201.38 147.83 122.92 108.71 96.15 79.95 58.63
Profit/Inv Ratio 1.09 0.91 0.81 0.75 0.69 0.61 0.50
Average Annual Daily Liquid Rate (Mbbl/day)

Profit/Inv Ratio (Deflated) 0.98 0.80 0.71 0.66 0.61 0.54 0.43
NPV/Unit Oil Equiv. 2.52 2.39 2.30 2.22 2.15 2.02 1.81
NPV/Unit Oil Equiv. (Deflated) 2.47 2.30 2.19 2.10 2.02 1.88 1.65 30

Nominal Rate Of Return % 62.84


Real Rate Of Return % 58.39

Earnings Data
20
Gross Revenue 989.76 762.36 660.18 602.66 552.11 487.15 401.40
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 119.12 88.90 75.33 67.71 61.06 52.56 41.51
Capital Expenditure 195.20 174.00 162.96 156.20 149.87 141.10 128.17
Operating Costs 462.60 341.90 290.25 261.93 237.52 206.82 167.48
10
Gross Revenue (Deflated) 947.70 737.86 642.70 588.84 541.32 479.95 398.37
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 111.89 83.96 71.38 64.31 58.12 50.20 39.85
Capital Expenditure (Deflated) 205.99 183.79 172.21 165.11 158.47 149.26 135.68
Operating Costs (Deflated) 428.44 322.28 276.18 250.70 228.58 200.55 164.21 0
1990 1995 2000 2005

Year

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 327.07 298.99 283.75 274.25 265.24 252.63 233.79 CASH FLOW REPORT
Net Present Value (Deflated) 310.29 283.42 269.01 260.06 251.61 239.80 222.24
NPV/Unit Oil Equiv. 5.99 6.21 6.31 6.37 6.43 6.49 6.58 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Post Corporation Tax MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Net Present Value 225.57 209.44 200.30 194.49 188.92 180.99 168.93 1992 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -7.3 0.0 0.0 0.0
Net Present Value (Deflated) 216.76 200.66 191.74 186.12 180.75 173.17 161.72 1993 70.4 0.0 28.1 55.0 0.0 0.0 0.0 -12.7 -16.5 17.0 0.0 0.0
NPV/Unit Oil Equiv. 4.13 4.35 4.46 4.52 4.58 4.65 4.76 1994 113.1 0.0 47.5 110.0 0.0 8.7 8.7 -53.1 -62.9 30.0 0.0 0.0
1995 134.9 0.0 52.9 15.0 0.0 8.9 8.9 58.1 62.2 35.0 0.0 0.0
Earnings Data Total To Start Of Discounting ( 1/JAN/1996)
318.4 0.0 128.5 185.0 0.0 17.6 17.6 -12.7 -24.5 29.9 0.0 0.0
Gross Revenue 671.38 587.22 545.72 521.07 498.51 468.07 424.88
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1996 140.1 0.0 52.9 5.0 0.0 16.3 16.3 65.9 63.4 35.0 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 137.7 0.0 51.4 5.2 0.0 20.3 20.3 60.8 52.1 32.0 0.0 0.0
Corporation Tax 101.50 89.55 83.45 79.75 76.32 71.64 64.86 1998 125.3 0.0 44.0 0.0 0.0 21.7 21.7 59.6 45.4 28.0 0.0 0.0
Capital Expenditure 10.20 9.71 9.44 9.27 9.11 8.88 8.52 1999 91.2 0.0 38.3 0.0 0.0 21.7 21.7 31.2 21.2 19.6 0.0 0.0
Operating Costs 334.10 278.52 252.53 237.55 224.15 206.56 182.57 2000 66.4 0.0 33.8 0.0 0.0 13.6 13.6 18.9 11.4 13.7 0.0 0.0
2001 48.3 0.0 29.6 0.0 0.0 7.9 7.9 10.8 5.8 9.6 0.0 0.0
Gross Revenue (Deflated) 614.03 540.92 504.66 483.04 463.20 436.35 398.06 2002 35.2 0.0 26.2 0.0 0.0 4.0 4.0 4.9 2.4 6.7 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2003 27.2 0.0 23.6 0.0 0.0 1.3 1.3 2.3 1.0 5.0 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 93.53 82.77 77.27 73.94 70.85 66.63 60.52 2004 0.0 0.0 34.2 0.0 0.0 -5.4 -5.4 -28.8 -10.9 0.0 0.0 0.0
Capital Expenditure (Deflated) 10.00 9.53 9.27 9.10 8.94 8.72 8.37
Operating Costs (Deflated) 293.74 247.97 226.38 213.88 202.65 187.83 167.45 Total 671.4 0.0 334.1 10.2 0.0 101.5 101.5 225.6 191.7 54.6 0.0 0.0

These cash flows include Hudson field only


RESERVOIR CHARACTERISTICS
Normandy
PL 116a PL 116b Cairn EXL 223
Farleigh Wallop-1
Herriard
1 2 Cairn
Shalford-1 Fluid Properties
Hester's
Inwood Copse-1 Copse-1
Bramley-1 Oil Gravity (API) 39
HUMBLY GROVE Gas Oil Ratio (scf/stb) 370
PL 232 East EXL 167 GODLEY Bubble Point Pressure, Pb (psig) 1480
PL 233
Pentex STOCKBRIDGE Open Worldham EDC
1 BRIDGE Formation Volume Factor at Pi (rb/stb) 1.17
PL 202b
2 4
8 Bordon-1 1 Reservoir Pressure, Pi (psig) 1510
2,2z PL 203
at Datum Depth of (ft TVDSS) 3325
PL 114
EXL 169 Reservoir Temperature (F) 120
Old Alresford-1
PL 249 Avington-1
EXL 193 Rock Properties
Cluff Winchester-1 Rogate-1
EXL 261 Cairn
EXL 192 Rock Type Limestone
Lomer-1 PL 211a PL 204
Stratigraphic Unit Great Oolite Group
BAXTER'S Geological Age Middle Jurassic
EXL 263
Cairn Minstead-1 COPSE Porosity Range (per cent.) <10-24
Clanfield-1 EXL 195 Permeability Range (md) 0.1-500
EXL 170 Hinton
Manor-1 Chilgrove-1 Connate Water Saturation (per cent.) 40
PL 240
4 HORNDEAN Cairn SINGLETON Gas Oil Contact (ft TVDSS) 3320
Hedge 3 1 2
End-1 PL 211c Cairn EXL 222
Free Water Level (ft TVDSS) 3680
EXL 170
Potwell-1
Cairn Depth to Top of Structure (ft TVDSS) 3280
Crockerhill-1 EXL 196
HAMBLE 2
Portsdown
REFINERY 1 EXL 241 EXL 225 Cairn Reserves
Lee on Cairn
Solent-1 Lidsey-1 Middleton-1
EXL Total Oil and Gas Reserves (MMstb, Bcf) 6, 8
093 EXL 094
Open
Est. Oil & Gas Production to 31.12.95 (MMstb, Bcf) 4, 3
Rel.
Remaining Oil and Gas Reserves (MMstb, Bcf) 2, 5

Production
Bottom
Copse-1
Production Start Date May 1986
Open Peak Oil Production (yrly average) (stb/day) 1350 in 1987
1 Peak Gas Production (yrly average) (MMscf/d) 1
Arreton E N G L I S H C H A N N E L
2
Well Sites 3
Number of Wells 15
PL 087 EDC
Open 0 10 km Oil Export 6" x 6.5km pipeline to
Gas Export Holybourne. Some export
by road or tankers.
Reinjected or used for
generation of electricity
exported to local grid.

SUMMARY 0 5 km
Open

The Humbly Grove field is a small onshore oil field discovered in


1980 by Well Humbly Grove 1 (HG1-X1). Situated in North Hampshire,
the field lies wholly within PL116b. Appraisal wells confirmed the
existence of an oil reservoir overlain by a gas cap and drilling in 1983 Odiham - 1
confirmed the commercial nature of the field.
The Department of Energy approved the Annex B in January 1985
and production started in May 1986. Early production performance was
very disappointing due to earlier than expected gas breakthrough. The
excess gas is now being used for electricity generation.
The field has two markedly different zones of Middle Jurassic Great
Oolite limestone. The upper zone has relatively high permeability PL 116b Cairn EXL 167
EDC
compared with the lower zone. A second, deeper Triassic Rhaetic Farleigh Wallop - 1
reservoir was penetrated some 860 feet below the Great Oolite. It was 1 Herriard
originally thought to be gas bearing but an appraisal well drilled in 1986 2 Hester's Copse - 1
flowed 140 b/d of oil. Permanent production consent was gained in Inwood Copse - 1
HG A1 HG X1
October 1987 but increasing H2S and water content resulted in the
Rhaetic being shut in. Current field oil production rates are HUMBLY GROVE
approximately 1000 stb/d. Horizontal wells have been drilled during the
mid 1990s to increase output and extend field life. The well sites are tied
back to a central gathering and production station at Western Common.
Drainholes have been drilled (one on Herriard and two on Humbly
EXL 192
Grove) in order to increase field production. This programme is proving
to be successful with the first one drilled in October 1994 increasing
production back above 1000 stb/d.
The current interests in the Humbly Grove field in per cent. are:-

Edinburgh Oil & Gas 7.50


Cairn* 79.84 FIELD DESCRIPTIONS
EDC 12.66
The Humbly Grove field is an east-west trending tilted horst. The principal reservoir is
operator * the limestone of the Middle Jurassic Great Oolite Group. The reservoir has a 75 feet thick
gas column overlying a 360 feet thick oil column down to the free water level. However,
the effective oil water contact is interpreted at 3430 feet TVDSS, giving an oil column
height of only 110 feet. It is sealed by Oxford Clay Group shales. A smaller hydrocarbon
accumulation also occurs in a deeper Triassic limestone/sandstone reservoir.
The Great Oolite reservoir can be divided into six field-wide zones with sheet-like
geometry. The zonation is based on depositionally controlled layering. Reservoir quality
varies depending on argillaceous content. Porosity values vary from poor to good but are
generally moderate. A horizontal permeability interface produced by structurally controlled
diagenesis cuts across this zonation. Permeability below the interface is much lower than
that above due to calcite cementation. The interface may be associated with a palaeo-oil
water contact.
The field contains a moderately light oil and is normally pressured. The central
gathering and production station provides gas lift facilities where there are a number of
LOCAL SETTING infield pipelines. Two lines are for crude and one each for gas lift and reinjection. There
is also provision for water injection which is currently used.
A number of other small fields have been identified in the Humbly Production began in 1986 and peaked at some 1400 stb/day, over 1000 stb/day below
Grove area. The Herriard structure to the northwest has been in the planned rate. The decline in the oil rate has been arrested in the last two years due
production since October 1987. Another satellite, Hesters Copse, to the to the success of further drilling. Approximately 66 per cent. of the oil reserves have been
northeast of Humbly Grove proved a disappointment and development produced to date. As oil production declines it is likely that the gas will be used solely for
plans have been abandoned. export and reinjection will be phased out altogether.
STRUCTURE AND STRATIGRAPHY
PL 116b Cairn
HUMBLY GROVE
The Humbly Grove field is located on the northwest

Humbly Grove
STRUCTURE

UNITED KINGDOM
flank of the Weald Basin, approximately 11 km southeast
(Contours in feet)
of Basingstoke, Hampshire.
The field is an east-west trending tilted horst, fault 0 1 km
closed to the north and south, with dip closure to the east
and west. It is 50 hectares in area and has low relief. The
top of the reservoir in the crestal well occurs at 3245 ft

33
50
TVDSS. There is a 75 foot thick gas cap and a total oil
column 360 feet in thickness, which includes a long
A3

3300
transition zone above a predicted free water level. The

3300
effective oil water contact is interpreted at 3430 feet

3350
3450
TVDSS. C2

3400

0
Hydrocarbons occur in limestones in the upper part of A1 X5

335
A4
the Middle Jurassic Great Oolite Group. The average
X2

0
reservoir thickness is approximately 180 feet. The C4

340
A5 A2 X4

3450
reservoir is sealed by the shales of the Oxford Clay Group.
0
A smaller hydrocarbon accumulation also occurs in a A7 335
C1 X1
deeper, Triassic (`Rhaetic) limestone/sandstone Permeability
C3
reservoir. Interface A6

345 X3
SEDIMENTOLOGY AND DEPOSITIONAL 0
0
ENVIRONMENT 345

The Great Oolite Group in the Humbly Grove area


comprises shallow marine oolitic limestones and
subordinate mudstones, dolomites and sandstones. The
(Modified after Hancock and Mithen, 1987)
principal reservoir lithology is oolitic lime grainstone, most
thickly developed in the Great Oolite Limestone
Formation. These oolitic grainstones were deposited in shallow subtidal and tidally carbonate and terrigenous sediments, which occur particularly in the Forest Marble,
influenced shoals on a gently southwestward-dipping ramp. Finer grained, muddier Hesters Copse and Fullers Earth Formations, were deposited in less agitated outer
shelf/foreshoal and backshoal/lagoon environments.

INTERPRETATIVE STRUCTURAL CROSS SECTION


HG-A1
Feet
SE NW

UPPER CRETACEOUS

1000

LOWER CRETACEOUS
2000

3000

4000 Great Oolite Group

LOWER JURASSIC

5000
TRIASSIC
CARBONIFEROUS

0 1 km

HG-X1
REPRESENTATIVE WELL SECTION - HG-X1
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.1 10000 5 25 45 -15

Marine siltstone and shale, deposited in an


open marine inner to outer shelf
CALLOVIAN

environment. Non-reservoir.
2
1
3800

Marine limestones, deposited as oolitic


tidal bars. Interbedded shales deposited
in the intervening troughs. Lenticular 3
reservoir geometry.
3850
GREAT OOLITE LIMESTONE FORMATION

Marine oolitic limestones, deposited as


shallow sub-tidal and tidally influenced
shoals.
GREAT OOLITE GROUP

Geometry
Laterally extensive sheet geometry.
3900
BATHONIAN

and K
Moderate porosity. Very poor to poor
permeability below the permeabilty
interface, rising to moderate above this
surface.
3950

Marine limestones and dolomites, deposited


4000

in a quiet shelf lagoon. Non-reservoir.


4

1. OXFORD CLAY GROUP


2. KELLAWAYS SAND
3. L. CORNBRASH/FOREST MARBLE
4. HESTER'S COPSE FM.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
HG-A1
10000

Humbly Grove
E
W
HG-X1
HG-A2
Oxford Cla
y

1000

Kellaways Clay Oxford Clay Gp


Kellaways
Sand
Lower Cornbrash
/Forest Marble
100

}
I

PERMEABILITY (md.)
Herriard Me
mber
10

Great Oolite Limestone Fm


II

III
Hodding
ton Mem

Great Oolite Group


ber

}
IV

Humbly 1
Grove M
ember
V

Hester's Copse Fm
0.1

Fuller's Ea
rth
0
0.01
0 10 20 30
POROSITY (per cent.)
50 feet

The Great Oolite Group was deposited as a series of small-scale progradational Porosity values in the Upper Great Oolite Group reservoir range
sequences. The resultant depositionally controlled layering forms the basis of the from poor to good, but are mainly moderate, both above and below
subdivision of the Upper Great Oolite reservoir into six reservoir zones (in descending order, the permeability interface.
the Lower Cornbrash/Forest Marble and Great Oolite Limestone, Zones I to V), each of Permeability above the permeability interface ranges from very
which has a fieldwide sheet-like geometry. poor to very good, but is mostly moderate. In the underlying lower
Zones I, II, IV and V mainly comprise oolitic lime grainstones, deposited in active and permeability interval, permeability is mostly very poor. Reservoir
abandoned shoal and backshoal environments. Zone III consists of argillaceous quality is controlled both by the facies-controlled distribution of
wackestone/packstone deposited in a foreshoal setting. The Lower Cornbrash/Forest grainstones within the upper Great Oolite Group and by the degree
Marble comprises interbedded oolitic limestones and terrigenous mudstones, deposited on of calcite cementation which occurred during burial. The most
tidally influenced sand bars and in less agitated troughs separating adjacent bars. The important control on permeability is the extent to which intergranular
reservoir limestones only form 20-50 per cent. of the latter zone and individual limestones porosity in grainstones has been occluded by calcite cement. More
may be laterally discontinuous. extensive cementation of intergranular porosity below the sharp,
As a result of structurally controlled diagenesis, the depositionally controlled reservoir horizontal permeability interface has greatly reduced permeability.
zones I, II, III and IV are subdivided by a horizontal permeability interface into higher Higher permeability occurs in the crestal area of the field, above the
permeability layers developed in crestal areas and lower permeability layers developed permeability interface, where interconnected macroporosity has not
downflank, below this surface. The permeability interface is related to the degree of calcite been completely destroyed by cementation.
cementation of the reservoir grainstones, cementation being more extensive beneath this Reservoir quality may be appreciably enhanced by natural
horizontal surface. It is likely that the permeability interface is related to a palaeo- fracturing in some areas of the field.
hydrocarbon water contact, increased cementation having occurred in the water leg
beneath this contact.

RESERVOIR PRESSURE
FLUID PROPERTIES
Relative to a hydrostatic gradient of 0.44 psi/ft to surface, the
Humbly Grove contains a saturated moderately light oil, with an API gravity of 39 Humbly Grove field is normally pressured. PVT data indicate oil and
degrees, in contact with a 75 ft gas cap. The GOR is 370 scf/stb. The oil viscosity is 0.85 gas gradients of 0.33 psi/ft and 0.04 psi/ft respectively.
cp at initial reservoir conditions.

1.20
3000
400 3.5

B0
1.15 0.04 psi/ft
300 GOR
GOR (scf/stb)

2.5
B0 (rb/stb)

0 (cp)

GOC@ 3320 ft TVDSS


DEPTH (feet TVDSS)

200 1.10

1.5
0.33 psi/ft
100 3500
0
1.05

@ 120 F (from correlation)


0 0.5 FWL @ 3680 ft TVDSS
0 500 1000 1500 2000 2500 3000

PRESSURE (psig)

0.44 psi/ft
CONTROLS ON RECOVERY
4000
The recovery factor will be much greater for the higher permeability reservoir
1400 1500 1600 1700
developed above the permeability interface than for the lower permeability reservoir
INITIAL RESERVOIR PRESSURE (psig)
developed below this surface. Above the permeability interface, the recovery factor
is expected to be moderate as a result of:
generally moderate permeabilities.
the predominance of interconnected macropores, greater than 20 m in size. A sharp downgrading of the recovery factor occurred shortly after the onset of
Below the permeability interface, the recovery factor is expected to be poor because production. The field performance subsequently has stabilised. Horizontal drainholes
of: have recently been drilled, sustaining production rates; further application of this
the very poor permeabilities. technology may offer potential for improving the recovery.
the predominance of small, poorly connected, intragranular micropores less than
20 m in size.
FACILITIES SPECIFICATIONS

A gathering station at Weston Green provides facilities for

Humbly Grove
UNITED KINGDOM
three phase separation and gas compression for gas lift
and re-injection. A total of 15 wells are being used to
exploit the field.

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput N/A


(bbl/day)
Gas Throughput N/A
(MMscf/day)
Oil Export 6" x 6.5km pipeline to Holybourne
transport terminal
then exported from loading point by
road/rail tankers

Gas Export to 3.5 MW power generation


plant

(This is a Kelt photograph)

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 2 5


Liquid
Net Present Value 10.12 -0.79 -4.72 -6.63 -8.13 -9.77 -11.44
Net Present Value (Deflated) -1.58 -12.40 -16.20 -18.01 -19.40 -20.87 -22.23 Gas

@@@@


Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 0.34 -0.03 -0.18 -0.27 -0.34 -0.42 -0.53
Profit/Inv Ratio (Deflated) -0.03 -0.28 -0.38 -0.44 -0.49 -0.55 -0.63 4
NPV/Unit Oil Equiv. 1.35 -0.17 -1.34 -2.20 -3.11 -4.56 -7.14
NPV/Unit Oil Equiv. (Deflated) -0.19 -2.33 -3.80 -4.84 -5.91 -7.58 -10.49

Payback Year 1996


Nominal Rate Of Return % 4.51 3
Real Rate Of Return % -500.00

Post Corporation Tax 1

@@@@


Net Present Value 6.78 -2.42 -5.79 -7.45 -8.75 -10.20 -11.67 2
Net Present Value (Deflated) -4.64 -13.89 -17.18 -18.76 -19.97 -21.26 -22.44
Profit/Inv Ratio 0.23 -0.09 -0.22 -0.30 -0.36 -0.44 -0.55
Profit/Inv Ratio (Deflated) -0.10 -0.31 -0.41 -0.46 -0.50 -0.56 -0.64
NPV/Unit Oil Equiv. 0.90 -0.53 -1.65 -2.47 -3.35 -4.76 -7.28
NPV/Unit Oil Equiv. (Deflated) -0.56 -2.61 -4.03 -5.04 -6.08 -7.72 -10.59
1
Nominal Rate Of Return % 3.37
Real Rate Of Return % -500.00

Earnings Data
0 0
Gross Revenue 81.97 48.59 37.36 31.88 27.53 22.49 16.72 1985 1995 2005 2015
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 3.34 1.63 1.07 0.82 0.63 0.42 0.23
Capital Expenditure 30.00 27.24 25.81 24.95 24.14 23.03 21.39
Operating Costs 41.85 22.15 16.27 13.57 11.51 9.24 6.77

Gross Revenue (Deflated) 88.27 56.35 44.87 39.07 34.34 28.72 22.01
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 3.06 1.49 0.98 0.75 0.57 0.39 0.21
Capital Expenditure (Deflated) 48.79 44.49 42.27 40.92 39.65 37.90 35.32
Operating Costs (Deflated) 41.06 24.26 18.80 16.17 14.09 11.69 8.93

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1984 0.0 0.0 0.0 7.0 0.0 0.0 0.0 -7.0 -29.7 0.0 0.0 0.0
1985 0.0 0.0 0.0 12.0 0.0 0.0 0.0 -12.0 -44.8 0.0 0.0 0.0
1986 3.6 0.0 1.5 6.0 0.0 0.0 0.0 -3.9 -12.7 1.0 0.0 0.0
1987 5.8 0.0 2.5 1.0 0.0 0.0 0.0 2.3 6.6 1.4 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1988 4.1 0.0 2.5 1.0 0.0 0.0 0.0 0.6 1.6 1.3 0.2 0.0
1989 5.1 0.0 2.0 3.0 0.0 0.0 0.0 0.1 0.2 1.2 0.8 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1990 6.6 0.0 1.3 0.0 0.0 0.0 0.0 5.3 10.4 1.3 1.0 0.0
1991 4.5 0.0 1.4 0.0 0.0 0.0 0.0 3.1 5.1 1.0 1.0 0.0
Pre Corporation Tax 1992 3.9 0.0 1.5 0.0 0.0 0.0 0.0 2.4 3.5 0.9 1.0 0.0
1993 4.9 0.0 1.5 0.0 0.0 0.0 0.0 3.4 4.4 1.1 1.0 0.0
Net Present Value 10.16 9.19 8.62 8.27 7.94 7.49 6.83 1994 4.5 0.0 1.5 0.0 0.0 0.0 0.0 3.0 3.6 1.1 1.0 0.0
Net Present Value (Deflated) 9.57 8.57 8.04 7.72 7.42 7.01 6.42 1995 4.2 0.0 1.5 0.0 0.0 0.0 0.0 2.7 2.9 1.0 1.0 0.0
NPV/Unit Oil Equiv. 3.45 4.04 4.33 4.49 4.64 4.83 5.09 Total To Start Of Discounting ( 1/JAN/1996)
47.2 0.0 17.2 30.0 0.0 0.0 0.0 -0.0 -48.8 4.1 2.6 0.0
Post Corporation Tax
1996 4.0 0.0 1.5 0.0 0.0 0.4 0.4 2.1 2.0 0.9 1.0 0.0
Net Present Value 6.83 6.26 5.92 5.71 5.50 5.22 4.80 1997 3.8 0.0 1.6 0.0 0.0 0.7 0.7 1.6 1.3 0.8 1.0 0.0
Net Present Value (Deflated) 6.50 5.90 5.58 5.37 5.19 4.93 4.55 1998 3.5 0.0 1.6 0.0 0.0 0.7 0.7 1.2 0.9 0.7 1.0 0.0
NPV/Unit Oil Equiv. 2.32 2.76 2.97 3.10 3.21 3.37 3.58 1999 2.8 0.0 1.7 0.0 0.0 0.6 0.6 0.5 0.3 0.5 1.0 0.0
2000 2.9 0.0 1.8 0.0 0.0 0.3 0.3 0.8 0.5 0.5 1.0 0.0
Earnings Data 2001 2.5 0.0 1.8 0.0 0.0 0.3 0.3 0.3 0.2 0.4 1.0 0.0
2002 2.1 0.0 1.6 0.0 0.0 0.2 0.2 0.2 0.1 0.3 1.0 0.0
Gross Revenue 34.81 26.38 22.92 21.06 19.48 17.50 15.00 2003 2.1 0.0 1.6 0.0 0.0 0.1 0.1 0.4 0.2 0.3 1.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 1.7 0.0 1.5 0.0 0.0 0.2 0.2 -0.0 -0.0 0.2 1.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 1.7 0.0 1.4 0.0 0.0 0.0 0.0 0.3 0.1 0.2 1.0 0.0
Corporation Tax 3.34 2.93 2.70 2.57 2.44 2.27 2.02 2006 1.2 0.0 1.3 0.0 0.0 0.1 0.1 -0.2 -0.1 0.1 1.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2007 1.2 0.0 1.2 0.0 0.0 -0.1 -0.1 0.0 0.0 0.1 1.0 0.0
Operating Costs 24.65 17.19 14.29 12.79 11.53 10.02 8.17 2008 1.3 0.0 1.1 0.0 0.0 -0.0 -0.0 0.2 0.0 0.1 1.0 0.0
2009 1.3 0.0 1.0 0.0 0.0 0.0 0.0 0.3 0.1 0.1 1.0 0.0
Gross Revenue (Deflated) 28.26 22.17 19.60 18.20 16.99 15.46 13.47 2010 1.4 0.0 1.0 0.0 0.0 0.1 0.1 0.2 0.0 0.1 1.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2011 1.4 0.0 0.9 0.0 0.0 0.1 0.1 0.4 0.1 0.1 1.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 3.06 2.67 2.47 2.35 2.23 2.08 1.87 2012 0.0 0.0 1.9 0.0 0.0 -0.4 -0.4 -1.4 -0.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 18.69 13.60 11.56 10.48 9.57 8.45 7.05 Total 34.8 0.0 24.6 0.0 0.0 3.3 3.3 6.8 5.6 2.0 5.8 0.0

These cash flows include Humbly Grove only


8 211/22a 2 211/22a Deminex 211/23b Amerada SUMMARY
Deminex 22b
Deminex The Hutton field is located in Quadrant 211 some 155 km northeast
211/27 Amoco 211/28a Conoco 28b Rel. of the Shetland Islands. The field was discovered in 1973 by Well
C 211/28-1A which encountered oil in Middle Jurassic sands of the Brent
SOUTH
CORMORANT 8 N.W.HUTTON Group.
Development of Hutton began in 1980 and involves one tension leg
7
platform (TLP) - the first of its kind in the North Sea. First oil was
3 produced in August 1984 and peak oil production was achieved in 1986.
A 10
Oil rates declined sharply after 1986. Water injection and produced
6
water handling facilities were upgraded in the early 1990s, which
4,4A
9 2,3 arrested the rate of decline. An appraisal/development well drilled in
5,5A 1995 has realised additional reserves in a previously undeveloped fault
7
5 block in the field. Oil is piped to the Sullom Voe terminal via North West
7
1 Hutton and Cormorant. With the possible abandonment of North West
4 Hutton before Hutton, a new pipeline section will be needed to bypass
11 A HUTTON
6 North West Hutton.
12 The current interests in the Hutton field in per cent. are:-
1a
PELICAN
Oryx * 44.34
13
Chevron 22.17
4 CIECO 8.63
2
12 LASMO 8.63
Mobil North Sea Ltd 6.70
211/26a Shell Amerada Hess Ltd 6.05
3/1a Total 3/2 Conoco 3/3 Chevron British Gas plc 3.48

LYELL 7
0 4 km operator *

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Hutton field is located in the North Viking Graben close to the
median boundary with Norway. Hutton is surrounded by fields such as
Oil Gravity (API) 35 Ninian, Brent, North West Hutton, Dunlin, Cormorant and Lyell all of
Gas/Oil Ratio (scf/stb) 100-150 which lie within a 20 km radius. Fields within a 50 km radius include
Bubble Point Pressure, Pb (psig) 732 Heather, Alwyn and North Alwyn and Gullfaks and Statfjord in the
Formation Volume Factor at Pi (rb/stb) 1.089 Norwegian sector. All these fields contain oil in sandstones of the Brent
Oil Compressibility (vol/vol/psi) 6.6 x 10-6 and/or Statfjord Formations.
Original Reservoir Pressure, Pi (psig) 6227
At Datum Depth of (TVDSS) 9200
Reservoir Temperature (F) 230

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group
Geological Age Jurassic
Porosity Range (per cent.) 18-27
Permeability Range (md) 20-4000
Connate Water Saturation (per cent.) 7-19
Oil Water Contact (ft TVDSS) 10033-10100
Depth to Top of Structure (ft TVDSS) 9300

Reserves

Total Reserves (Oil & NGL) (MMstb) 196


Est. Production to 31.12.95 (MMstb) 173
Remaining Reserves (Oil & NGL) (MMstb) 22

Production FIELD DESCRIPTION

Water depth (feet) 486 The Hutton field is formed by a southwesterly dipping, tilted fault
Production Start Date August 1984 block bounded by faults to the east, northwest and southeast and with
Peak Production (Oil) (stb/day) 75000 dip closure to the southwest. Northeast-southwest trending faults divide
the field into three major fault blocks. The southern fault block has
Platform(s) Semi-submersible TLP
complete reservoir separation across the fault plane. The typical five
structure
fold Brent sand sequence, is present in the field. There is a westerly
Number of Wells - Producers 14
down-dip reduction in permeability in the Broom and Rannoch
Water injectors 15
Formations.
Gas injectors
An additional high permeability sand member, the Etive-Rannoch
Oil and NGL Export 36" pipeline to Sullom Voe via complex, has been identified.
North West Hutton and The recovery from the Etive is likely to be good. Moderate recovery
South Cormorant is likely from the Ness where sediment body geometries are complex
Gas Export Flared and poorly interconnected. The Rannoch and Broom are less significant
reservoir units and only contain about 20 per cent. of the reserves.
Production began in 1984 and to date just under 90 per cent. of the
reserves have been produced. Renewed development activity,
particularly around the newly appraised area of the field, coupled with a
recent decrease in operating costs should extend the field life into the
next century.
STRATIGRAPHY AND STRUCTURE

The hydrocarbon reservoirs of the Hutton field are the Brent Group (Middle Jurassic)
HUTTON

UNITED KINGDOM
sandstones. These overlie Dunlin Group (Lower Jurassic) mudstones and are overlain by

1000
TOP BRENT GROUP Upper Jurassic mudstones of the Humber Group. Within the Brent Group five formations

0
DEPTH STRUCTURE can be recognised: Broom, Rannoch, Etive, Ness and Tarbert. Towards the crest of the

9800

Hutton
0 2 km
Hutton structure there is erosion of the Brent Group, such that locally the Tarbert
3 Formation and parts of the Ness Formation have been removed.
(Contours in feet TVDSS)
2
The Hutton structure is a northeast-southwest elongate fault block, bounded to the north,
the west and the east by major faults. Within the field, faults parallel to these major

98
bounding faults are expected to compartmentalise the reservoir.

00

9600
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

95
'A' FAULT
The Broom Formation, at the base of the Brent Group, overlies the offshore mudstones

00
BLOCK
of the Dunlin Group. It consists of medium to coarse grained, locally pebbly, cross-bedded

9900
sandstones, often with thin interbedded mudstones. The sediments of this formation
represent stacked storm-generated sheet sandstones and thin waning flow mudstones.
00 00
96 97 They are overlain by coarsening and cleaning-upward sequences of the Rannoch
1 'B' FAULT Formation. This formation consists of very fine to fine grained, variably argillaceous and

OWC 10100
BLOCK variably micaceous sandstones. In the basal, finer grained, more argillaceous part of the
97 formation the sandstones are bioturbated and may locally grade into mudstones. In the
00
upper part of the Rannoch Formation the sandstones are commonly cross-bedded. This

98

0
4 sequence represents a progradational sequence of offshore/transition zone to middle

920
00
shoreface sediments.
The Rannoch Formation is overlain by the coarser, cleaner upper shoreface to foreshore
9300 sandstones of the Etive Formation. In Well 211/27-2 there is an extremely thick sequence
94
00 of sandstones above the Rannoch Formation (c.190 feet). These appear to represent a
950
0 particularly thick sequence of Etive Formation sandstones. In general the Etive Formation
00
96 is between 40 feet and 60 feet thick. It is possible that this sequence is in part
980
1 contemporaneous with the Ness Formation. Clearly there was differential subsidence
9700
during Brent Group deposition in the Hutton area which may have led to local variations
0

00
'C' FAULT 99 in the pattern of deposition.
BLOCK The succeeding Ness Formation generally consists of interbedded sandstones,
99 mudstones and coals. These represent delta plain sediments, with distributary channel,
00
lagoon/bay shoreface, mouth bars, levee and crevasse splay sandstones which are
0
00 interbedded with lagoon/bay and floodplain lake mudstones and coals. The Ness
10
C
Formation is divided into Upper and Lower subunits by an extensive Mid Ness Shale,
OW representing a marine incursion across the area.
The uppermost unit of the Brent Group, the Tarbert Formation, is locally absent due to
2 erosion particularly in the crestal areas of the field. However, originally it was probably a
211/27 211/28
widespread development of shallow marine sandstones deposited during the onset of a
phase of eustatic sea-level rise and delta abandonment.
(Modified after Haig D Brian, 1991)
Overall the Brent Group consists of the deposits of a northward prograding shallow
marine and deltaic complex with subsequent delta abandonment.

INTERPRETATIVE STRUCTURAL CROSS SECTION


NORTH WEST HUTTON HUTTON
211/27-8 211/27-3 211/27-6 211/27-7 211/28-1A 211/28-5 211/28-6
Feet

9000

UPPER CRETACEOUS

10000

LOWER CRETACEOUS

11000 Humber Group


p
r ou
e rG
mb p
Hu ou Brent Group
12000 Gr p
r e nt ou
B
n Gr
nl i on Dunlin Grou
p
Du ati
rm
t Fo
13000 n on
ora rmati
Statfjord Fo
Corm
CENTRAL AND
WESTERN LOBE 0 3 km
14000 EASTERN LOBE

REPRESENTATIVE WELL SECTION - 211/28-1A

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


211/28-1A (API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Delta plain sediments comprising distributary


channel, mouth bar and crevasse splay
9800

sandstones interbedded with interdistributary


bay and/or floodplain mudstones.

Geometry
NESS FORMATION

Sandstones of varied geometry (ribbonlike,


lenticular, sheetlike) interbedded with laterally
extensive mudstones.

and K
Poor to good, largely reflecting primary textural
characteristics.
9900
MIDDLE JURASSIC
BRENT GROUP

Upper shoreface sandstones.


ETIVE FM.

Geometry
Broad, sheetlike unit.
and K
Generally good.

Lower to middle shoreface sandstones with


RANNOCH FORMATION

intervals of upper shoreface sandstones.


10000

Geometry
Thick, sheetlike sandbody.

and K
S S Poor to good, reflecting primary textural
characteristics and local calcite cement.

Generally good. 1
1. BRENT GROUP
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
211/27-2 211/27-1A 211/28-1A 211/28-2
10000

Hutton

Heather Fm.
Humber Gp.
1000

MIDDLE JURASSIC

Ness Fm.
100

Etive Fm.
Brent Group

PERMEABILITY (md.)
F F
Rannoch Fm. 10
LOWER JURASSIC

0
Dunlin Gp.
Broom Fm.

100 feet

0.1

The Broom Formation consists of a sheetlike sand body which ranges from about 20 feet
to 50 feet in thickness. Net to gross ratio is generally >0.7, reflecting the relatively coarse,
clean nature of the sand body. Variations largely reflect the presence of calcite cement
0.01
horizons and the local presence of thin mudstones. 0 10 20 30 40
The Rannoch Formation also has a sheetlike geometry. This unit ranges from about 20
POROSITY (per cent.)
feet to 70 feet in thickness. Net to gross ratios are expected to vary between about 0.4 and
0.7, largely reflecting the presence of very fine grained, argillaceous sandstones in the lower
part of the unit, the development of calcite cemented horizons and common mica rich The Broom Formation is expected to have average porosities in
horizons. the range 20-25 per cent., reflecting its relatively coarse, clean
Overlying the Rannoch Formation is the sheetlike development of the Etive Formation. nature. There is, however, an extremely large amount of variation
Better net to gross values (generally >0.7) are found, reflecting the cleaner nature of the within Broom Formation sequences as a result of calcite
sandstones. This unit is generally 40 to 60 feet thick, although locally (Well 211/27-2) it may cementation. Permeability generally ranges between 50 and 500
be up to 190 feet thick. These thickness variations appear to reflect local subsidence md. Locally there is severe permeability reduction due to extensive
variations during deposition. calcite cementation.
The Ness Formation varies between about 5 feet and 150 feet in thickness. This largely The coarsening and cleaning-upwards Rannoch Formation is
reflects post-Brent erosional truncation. Net to gross ratio ranges between 0 and 0.7, characterised by upward improving porosity and permeability trends,
reflecting variations in the amount of interbedded mudstone and coal. Individual sandstones with porosity and permeability generally being poor to moderate in
within the Ness Formation display a marked range of thickness but most are less than 30 the lower part of the unit (15-20 per cent., <100 md) improving to
feet thick. As a result of the variety of sand body types, sandstones have a variety of good in the upper part (20-25 per cent., 100-500 md). The Etive
geometries, with ribbonlike channel sandstones and more sheetlike lagoon/bay shoreface Formation generally has good porosity (20-25 per cent.) and
and mouth bar sandstones being the most important reservoirs. Interbedded mudstones permeability (100 md or greater) reflecting its relatively clean nature.
have significant lateral extents, resulting in strong vertical zonation of the Ness Formation. Sandstones within the Ness Formation display a wide range of
The Tarbert Formation is up to about 25 feet thick, although it is commonly truncated or porosity/permeability characteristics, largely as a result of primary
eroded. Where present it appears to be a relatively clean sandstone which is expected to textural characteristics (grain size, detrital clay content etc.).
have good net to gross ratios (generally >0.8). Channel, mouth bar and lagoon/bay shoreface sandstones display
the best porosities and permeabilities, with average porosity
commonly 20-25 per cent. and permeability commonly >1000 md.
FLUID PROPERTIES Both porosity (25 per cent.) and permeability (commonly >1000
md) are good to excellent in the Tarbert Formation.
The Hutton field contains a highly undersaturated oil of 35 API gravity with gas oil ratio
averaging 150 scf/stb.

RESERVOIR PRESSURE
160 1.12 2.0
GOR Based on a hydrostatic gradient to surface of 0.45 psi, the Hutton
140
field is overpressured by approximately 2000 psi. A pressure
1.11
B0 gradient of 0.33 psi exists in the oil leg.
120
The field is compartmentalised with OWCs varying from 10033 to
GOR (scf/stb)

1.10 10100 ft TVDSS between fault blocks.


B0 (rb/stb)

0 (cp)

100 1.5

1.09
80
9000
1.08
60
0
@ 230 F
40 1.07 1.0
0 2000 4000 6000 8000 9500
PRESSURE (psig) 0.33 psi/ft
DEPTH (feet TVDSS)

CONTROLS ON RECOVERY 10000


OWC @ 10100 ft TVDSS

Hutton is being developed using water injection, producers and injectors being sited such
0.45 psi/ft
that the three main fault blocks comprising the field are efficiently swept. All the Brent units
are of reservoir quality with the exception of the Rannoch which has much reduced
10500
permeability due to the presence of mica. The upper units (Tarbert and Upper Ness) are
eroded in the crestal north-eastern area of the structure. Both the Etive and Ness units
exhibit severe internal permeability contrasts which leads to by-passing of oil by injected
water and associated reduction in sweep efficiency.
Initial development strategy included peripheral water injection which was largely 11000
6200 6400 6600 6800
unsuccessful. Oil production rates early in the field life did not increase when injectors were
drilled. This problem has apparently now been overcome. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

UNITED KINGDOM
Water Depth 486
(feet)

Hutton
Platform Type semi-submersible TLP structure
Function drilling/production/
accommodation

Deck Weight 17700


(tonnes)
Total Platform Displacement 61580
(tonnes)

Accommodation 239

Well Slots 32
Wells -Producers 14
-Injectors (water) 15
-Spares 3

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 110000


(bbl/day)

Oil Export 12" x 6km pipeline


to N.W. Hutton onwards to Cormorant and Sullom Voe
Gas Export flared

(Reproduced by courtesy of Conoco (U.K.) Ltd)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 80

Net Present Value 373.35 75.52 -36.25 -92.00 -136.25 -185.88 -237.10
Net Present Value (Deflated) 93.62 -278.93 -414.47 -480.18 -530.78 -584.72 -633.52
Profit/Inv Ratio 0.33 0.08 -0.04 -0.11 -0.18 -0.26 -0.37

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio (Deflated) 0.04 -0.15 -0.24 -0.30 -0.35 -0.41 -0.50
NPV/Unit Oil Equiv. 1.91 0.61 -0.38 -1.13 -1.95 -3.31 -5.92 60
NPV/Unit Oil Equiv. (Deflated) 0.35 -1.61 -3.02 -4.07 -5.19 -7.03 -10.49

Payback Year 1989


Nominal Rate Of Return % 6.91
Real Rate Of Return % 1.00

Post Corporation Tax 40

Net Present Value 235.75 0.26 -89.67 -134.83 -170.77 -211.11 -252.43
Net Present Value (Deflated) -67.70 -368.18 -478.23 -531.50 -572.31 -615.25 -652.24
Profit/Inv Ratio 0.21 0.00 -0.10 -0.16 -0.22 -0.29 -0.40
Profit/Inv Ratio (Deflated) -0.03 -0.20 -0.28 -0.33 -0.38 -0.43 -0.52
NPV/Unit Oil Equiv. 1.21 0.00 -0.94 -1.66 -2.45 -3.76 -6.30 20
NPV/Unit Oil Equiv. (Deflated) -0.25 -2.12 -3.49 -4.50 -5.60 -7.39 -10.80

Nominal Rate Of Return % 5.01


Real Rate Of Return % -500.00

Earnings Data
0
Gross Revenue 2,405.02 1,550.26 1,222.74 1,053.47 913.61 746.02 545.74 1980 1985 1990 1995 2000
Royalty 133.96 85.62 67.05 57.46 49.54 40.09 28.85
Petroleum Revenue Tax 0.00 3.71 4.79 5.20 5.44 5.57 5.39
Year
Corporation Tax 137.59 75.27 53.42 42.83 34.52 25.23 15.34
Capital Expenditure 1,133.40 956.70 872.36 823.00 778.25 718.46 634.60
Operating Costs 764.31 428.71 314.80 259.82 216.63 167.78 114.01

Gross Revenue (Deflated) 3,374.30 2,251.37 1,806.01 1,571.47 1,375.05 1,136.09 844.52
Royalty (Deflated) 186.65 122.87 97.64 84.40 73.34 59.95 43.74
Petroleum Revenue Tax (Deflated) 5.74 9.85 10.81 11.06 11.10 10.87 10.04
Corporation Tax (Deflated) 161.31 89.25 63.76 51.32 41.53 30.53 18.71
Capital Expenditure (Deflated) 2,154.07 1,845.69 1,695.36 1,606.40 1,525.12 1,415.59 1,260.16
Operating Costs (Deflated) 934.22 551.89 416.67 349.80 296.27 234.40 164.09

CASH FLOW REPORT


ECONOMIC INDICATORS FROM 1/1/1996 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Pre Corporation Tax 1980 0.0 0.0 0.0 20.0 0.0 0.0 0.0 -20.0 -172.6 0.0 0.0 0.0
1981 0.0 0.0 0.0 220.0 0.0 0.0 0.0 -220.0 -1,492.3 0.0 0.0 0.0
Net Present Value 23.62 29.33 31.88 33.30 34.52 36.03 37.87 1982 0.0 0.0 0.0 375.0 0.0 0.0 0.0 -375.0 -2,102.9 0.0 0.0 0.0
Net Present Value (Deflated) 28.95 33.44 35.41 36.49 37.41 38.52 39.81 1983 0.0 0.0 0.0 225.0 0.0 0.0 0.0 -225.0 -1,076.4 0.0 0.0 0.0
NPV/Unit Oil Equiv. 1.06 1.42 1.62 1.74 1.85 2.01 2.25 1984 196.3 0.0 13.0 100.0 3.6 0.0 3.6 79.7 337.7 23.7 0.0 0.0
1985 451.3 22.3 73.0 50.0 16.0 0.0 38.3 290.1 1,082.8 58.7 0.0 0.0
Post Corporation Tax 1986 276.7 27.7 67.0 45.0 20.0 0.0 47.8 116.9 381.3 77.3 0.0 0.0
1987 260.2 16.9 50.0 25.0 5.1 0.0 22.0 163.2 476.4 63.8 0.0 0.0
Net Present Value 1.28 7.45 10.34 11.99 13.45 15.33 17.79 1988 199.7 13.6 40.0 10.0 -44.8 0.0 -31.2 181.0 478.2 64.9 0.0 0.0
Net Present Value (Deflated) 6.53 11.61 13.96 15.30 16.48 17.99 19.94 1989 169.7 9.1 36.0 10.0 0.0 13.9 23.0 100.7 230.6 42.2 0.0 0.0
NPV/Unit Oil Equiv. 0.06 0.36 0.52 0.62 0.72 0.85 1.06 1990 142.8 6.4 36.0 15.8 0.0 38.5 44.8 46.1 90.7 29.9 0.0 0.0
1991 76.6 2.6 50.0 11.0 0.0 29.4 32.0 -16.4 -27.2 18.5 0.0 0.0
Earnings Data 1992 89.2 0.0 45.0 11.6 0.0 3.9 3.9 28.7 41.8 22.6 0.0 0.0
1993 92.8 5.5 45.0 5.0 0.0 9.3 14.8 28.0 36.4 22.6 0.0 0.0
Gross Revenue 259.17 238.93 228.26 221.68 215.48 206.83 193.93 1994 96.1 7.2 45.0 10.0 0.0 9.7 16.8 24.2 28.7 25.7 0.0 0.0
Royalty 15.14 14.70 14.41 14.22 14.03 13.74 13.26 1995 94.4 7.6 43.9 0.0 0.0 10.7 18.2 32.3 34.6 24.7 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total To Start Of Discounting ( 1/JAN/1996)
Corporation Tax 22.34 21.88 21.55 21.31 21.07 20.71 20.08 2,145.9 118.8 543.9 1,133.4 0.0 115.3 234.1 234.5 -1,652.3 173.2 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs 220.41 194.91 181.97 174.16 166.93 157.06 142.80 1996 89.8 7.5 42.8 0.0 0.0 11.4 18.9 28.1 27.0 22.6 0.0 0.0
1997 71.6 6.2 43.4 0.0 0.0 11.0 17.2 11.1 9.5 16.8 0.0 0.0
Gross Revenue (Deflated) 247.48 228.67 218.73 212.59 206.81 198.73 186.68 1998 55.4 4.2 42.2 0.0 0.0 6.1 10.3 2.9 2.2 12.5 0.0 0.0
Royalty (Deflated) 15.08 14.58 14.28 14.07 13.87 13.56 13.07 1999 42.4 2.7 39.4 0.0 0.0 2.1 4.8 -1.8 -1.2 9.2 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 22.42 21.84 21.45 21.19 20.93 20.53 19.87 2000 0.0 -5.5 52.6 0.0 0.0 -8.1 -13.7 -39.0 -23.5 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 203.45 180.64 169.04 162.03 155.53 146.65 133.80 Total 259.2 15.1 220.4 0.0 0.0 22.3 37.5 1.3 14.0 22.3 0.0 0.0

These cash flows include Hutton field only


8 211/22a 2 211/22a Deminex 211/23b Amerada SUMMARY
Deminex 22b
Deminex The North West Hutton field lies in Quadrant 211, some 130 km
211/27 Amoco 211/28a Conoco 28b Rel. northeast of the Shetland Islands in approximately 470 feet of water.
C The field was discovered in 1975 by Well 211/27-3 which encountered
SOUTH
CORMORANT 8 N.W.HUTTON oil bearing sands in the Jurassic Brent Group. Following appraisal
drilling, a subsea template was installed in 1979 from which seven
7
production wells were pre-drilled. A single steel jacket was installed
3 during 1980 and 1981 and oil production began in April 1983, quickly
rising to 60000 stb/day from the seven pre-drilled wells. This rate
A 10 6
however was never sustained. Despite an active drilling programme
4,4A production rates peaked at 53000 stb/day in 1986 and have since
9 2,3
5,5A decreased steadily to an extent that production looks likely to cease
7
5 soon.
7
1 The geological complexity of the field poses significant development
problems and a very low recovery factor by normal Brent reservoir
11 4 HUTTON
A standards has been experienced.
6
12 The current interests in the North West Hutton field are:-
1a
PELICAN
Amerada Hess Ltd 28.46
13 Amoco (UK) Exploration Company * 25.77
4 CIECO UK Ltd 25.77
2
12 Mobil North Sea Limited 20.00

211/26a Shell operator *


3/1a Total 3/2 Conoco 3/3 Chevron

LYELL 7
0 4 km

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties North West Hutton is surrounded by several other large oil fields.
These include Hutton, Ninian, Cormorant, Dunlin and Thistle all of which
Oil Gravity (API) 34-37 produce from the same Jurassic Brent deltaic sequence. Reservoir
Gas/Oil Ratio (scf/stb) 300-600 quality is typical of the Brent Group, being very variable and dependent
Bubble Point Pressure, Pb (psig) 1500-2300 on the depositional histories of the individual units which make up the
Formation Volume Factor at Pi (rb/stb) 1.2-1.4 Brent. Permeability contrast between units, however, is extreme and
Oil Compressibility (vol/vol/psi) 11 x 10-6 this, combined with reservoir compartmentalisation by faulting, leads to
unusually severe problems with sweep efficiency and premature
Original Reservoir Pressure, Pi (psig) 7700
breakthrough of injected water.
At Datum Depth of (ft TVDSS) 12000
Reservoir Temperature (F) 255

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group
Geological Age Jurassic
Porosity Range (per cent.) 13-20
Permeability Range (md) 1-1000
Connate Water Saturation (per cent.) 20-45
Oil Water Contact (ft TVDSS) 12934 (West) - 11859 (East)

Depth to Top of Structure (ft TVDSS) 11000

Reserves
Oil & NGL Gas
Total Reserves (MMstb, Bcf) 125 12
Est. Production to 31.12.95 (MMstb, Bcf) 123 12
Remaining Reserves (Oil & NGL) (MMstb, Bcf) 2 0 FIELD DESCRIPTION

Production North West Hutton is structurally complex, being controlled by major


northwest-southeast trending faults with significant intra-field faulting.
Water depth (feet) 473 The Brent deltaic sequence exhibits permeabilities ranging from 1 md to
Production Start Date April 1983 several Darcies and this contrast leads to problems with premature
Peak Production (Oil and NGL) (stb/day) 53000 injected water breakthrough, especially in the fluvially dominated Ness
Platform(s) Steel jacket unit. Permeability falls markedly at depths below around 11500 feet
Number of Wells - Producers 22 TVDSS due to diagenesis, and as a result the northern, structurally high
portion of the field provides most of the productivity.
Water injectors 10
The field is divided into at least two separate pressure systems, the
Gas injectors
east of the field having an oil water contact at around 11859 feet TVDSS
Oil and NGL Export Pipeline to Cormorant
and the west at 12934 feet TVDSS. PVT properties are also variable
Gas Export Utilised as platform fuel
across the field, with the GOR ranging from 300 scf/stb to 600 scf/stb.
and gas injection
Water injection was started in February 1984 and by December 1985
all producing wells were being continuously gas lifted. Production rates
have been poorer than originally expected although abandonment in
1993 was postponed due to a plateau in declining output and a
reduction in operating costs.
Sales gas was originally transported to the WELGAS/FLAGS
pipeline. Since February 1989, however, gas has been used for platform
fuel and gas injection purposes.
13
STRATIGRAPHY AND STRUCTURE

Northwest Hutton
75
0
NORTH WEST HUTTON The reservoir in North West Hutton is provided by Brent Group (Middle Jurassic)

UNITED KINGDOM
TOP BRENT GROUP SANDSTONE sandstones. The five formations of the Brent Group are generally present, except
8 DEPTH STRUCTURE where the structural development of the field in the Upper Jurassic has led to erosion
0 1 km of the Tarbert Formation and partial erosion of the Ness Formation.
The North West Hutton structure is a westward dipping fault block bounded by major
(Contours in feet TVDSS)

0
0
faults to the north and the east. Within the field there is additional faulting parallel to

1250
1225
0
140 0
these major fault trends resulting in compartmentalisation, and the development of

0
many oil water contacts.

1275
3

11750
4
293
C1
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

OW
11250
11 1125
50
0
0 The Broom Formation, at the base of the Brent Group consists of medium to coarse
211/27-4A 211/27-10 211/27-6 grained, generally poorly sorted sandstones. They are considered to represent
0 0
OUTER WEST LOBE 105 stacked sublittoral sheet sandstones. Overlying these are the variably argillaceous
INNER and micaceous, fine grained sandstones of the Rannoch Formation. The lowermost
WEST LOBE CENTRAL
LOBE part of the Rannoch Formation may be formed by a mudstone which grades up into
0
00 sandstones. The Rannoch Formation represents a lower to middle shoreface
0
25

12
0

211/27-9
12

sequence. It is capped by the fine to medium grained, generally cleaner and less
50

EAST LOBE

50
12

107
11500
211/27-5A micaceous sandstones of the Etive Formation.

9
1185
These sandstones mainly represent the upper shoreface portion of a prograding
11750
7
delta front. Locally there are tidal channel sandstones at the base of the Etive

OWC
Formation in the northern part of the field.
12
00
0 Succeeding these shallow marine sandstones are the interbedded sandstones,
2 50
12 mudstones and coals of the Ness Formation. The Ness Formation is divided into
Upper Ness and Lower Ness by the Mid Ness Shale. This is a 20 to 30 feet thick
brackish/marine mudstone, representing a temporary marine incursion in the area.

0
1125
In both the Lower Ness and Upper Ness there are distributary channel, mouthbar,
11500

0
1075
11
levee and crevasse splay sandstones which are interbedded with lagoon/bay and/or
floodplain lake mudstones and coals.
At the top of the Brent Group are the transgressive and shallow marine sandstones
of the Tarbert Formation.
Overall the Brent Group comprises the deposits of a northward prograding shallow
marine and deltaic complex and the deposits associated with delta abandonment due
Note: No single OWC is present in the field. It ranges from 12934ft
Note: in the west to 11859ft in the east to marine transgression in latest Bathonian to earliest Callovian times.
211/27
(Modified after Johnes and Gauer, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION


NORTH WEST HUTTON HUTTON
211/27-8 211/27-3 211/27-6 211/27-7 211/28-1A 211/28-5 211/28-6
Feet

9000

UPPER CRETACEOUS

10000

LOWER CRETACEOUS

11000 Humber Group


p
ou
r Gr
m be
Hu p
ou Brent Group
12000 Gr p
nt u
Bre Gro
n n
nli tio Dunlin Grou
p
Du r ma
Fo
13000
r a nt rmation
o Statfjord Fo
C orm
CENTRAL AND
WESTERN LOBE 0 3 km
14000 EASTERN LOBE

REPRESENTATIVE WELL SECTION - 211/27-10

CORE
DEPTH (feet)

211/27-10 CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Delta plain sediments consisting of distributary 1


S channel, levee and crevasse splay sandstones
interbedded with lagoon/bay and or floodplain
11550

S
lake mudstones and coals.
( M
) Geometry
( Ribbonlike channel sandstones with lobate to
)
M sheetlike levee and crevasse splay
S sandstones separated by laterally extensive
mudstones.
11600

and K
NESS FORMATION

M Generally poor to moderate, varying largely as


a function of primary textural characteristics.
(
)
MIDDLE JURASSIC

11650
BRENT GROUP

(
) (
)
(
)
(
)
11700

(
)

(
)
11750

Upper shoreface to backshore sandstones.


ETIVE FM.
RANNOCH FM.

M Geometry
Sheetlike sandbody.
M and K
( M
) Generally good, reflecting coarse, clean
11800

nature of sandstones.
M
Middle shoreface sandstones with sheetlike
M M geometry and poor to moderate and K.
1. TARBERT FORMATION
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Northwest Hutton
10000
211/27-8 211/27-10 211/27-6
211/27-4A
.
er Fm
1 Heath .
rt Fm
Tarbe

Humber Gp.
1000

Tarbert Fm.
0 Ness 100
Formation

MIDDLE JURASSIC

Ness Fm.

PERMEABILITY (md.)
Brent Gp.

10
100 feet
Etive Fm.

.
Fm
ive 1
Et

m.
hF
noc
Ran
Rannoch Fm.

F
LOWER JURASSIC

Fm .
Broom 0.1
Dunlin Gp.

2
1. Heather Formation
2. Broom Formation
0.01
0 10 20 30

POROSITY (per cent.)

The Broom Formation forms a sheetlike sandbody, only absent where faulted out (e.g. Average porosity of net sand generally ranges between about 15
Well 211/27-6). It generally ranges between 30 and 50 feet in thickness. Overlying the per cent. and 25 per cent. in North West Hutton, reflecting the
Broom Formation are mudstones or argillaceous sandstones of the basal Rannoch relatively deep burial of the Brent Group (11500-13500 feet). Within
Formation. The Rannoch sandbody ranges between 40 and 70 feet in thickness (except both the Broom and the Etive Formations, average porosities are
where faulted). Because of its fine grained, argillaceous, micaceous nature, net to gross commonly slightly higher (20 to 25 per cent.) as a consequence of
ratio varies between about 0.1 and 0.7. their coarser, cleaner nature.
The Etive Formation, generally 30 to 60 feet thick, has generally better net to gross ratios Permeabilities correlate with porosities, generally being poor to
than the underlying Rannoch Formation, reflecting its generally less argillaceous nature. Net moderate in the Rannoch and Tarbert Formations, variable in the
to gross ratios range between about 0.5 and 0.9. Ness Formation (commonly <10 md, locally > 1000 md) and better
Within the Ness Formation there are a variety of sandbody types. As a consequence in the Etive and Broom Formations (generally 10-100 md). Locally,
sandbody geometries are varied. Channel sandbodies have ribbonlike geometries except within the shallow marine sandstones, there are calcite cemented
where coalescence and stacking of channels results in tabular sandbodies. Mouth bar horizons where porosity and permeability are severely reduced.
sandbodies have lenticular to sheetlike geometries.
These sandstones are interbedded with and separated by mudstones which are
expected to be laterally persistent, at least at field-scale. The Mid Ness Shale forms an
important permeability barrier.
The Tarbert Formation varies from zero (where eroded) to 30 feet in thickness. It was
originally a sheetlike sandbody which now forms a series of erosively defined wedges. Net
to gross ratios generally range between 0.6 and 1.0.

FLUID PROPERTIES RESERVOIR PRESSURE

Available data indicate variable PVT properties across the field with GOR varying from Data indicate several separate pressure regimes across North
300-600 scf/stb. The relationships shown are applicable to an intermediate oil which may be West Hutton, all over-pressured by around 2000 psi. Wells in the
taken as a general indication of PVT properties. west of the field exhibit pressure consistent with an oil water contact
at around 12934 feet TVDSS whilst those in the east exhibit
pressures consistent with a shallower contact at around 11859 feet
600 1.6 1.8 TVDSS.

GOR
10500
400 1.4 1.4 West
GOR (scf/stb)

B0
B0 (rb/stb)

0 (cp)

11000

200 1.2 1.0


East
11500
DEPTH (feet TVDSS)

0 0.37 psi/ft

OWC @ 0.37 psi/ft


@ 255 F 11859 ft TVDSS
0 1.0 0.6 12000
0 2000 4000 6000 8000 0.45 psi/ft

PRESSURE (psig)
12500

OWC @ 12934 ft TVDSS


13000
0.45 psi/ft
CONTROLS ON RECOVERY

It is apparent that only a low recovery factor will be achieved. Oil initially in place is of 13500
the order of 1000 MMstb but ultimate recovery will not exceed 125 MMstb. This is due to 7200 7400 7600 7800 8000 8200
two main factors:- INITIAL RESERVOIR PRESSURE (psig)
Approximately 70 per cent. of STOIIP is in the Ness Formation where extreme
permeability contrasts allow injected water to bypass large volumes of oil.
The remaining STOIIP is in low permeability units beneath the Ness; oil displacement
from these units is inefficient due to injection water travelling preferentially through the Ness.
These factors, combined with severe intra-field faulting reduce both areal and vertical
sweep efficiencies leading to a poor overall recovery factor.
FACILITIES SPECIFICATIONS

Northwest Hutton
Water Depth 473

UNITED KINGDOM
(feet)
Platform Type steel jacket
Function drilling/production/
accommodation

Jacket Weight 12600


(tonnes)
Total Weight 39000
(tonnes)

Accommodation 224

Well Slots 40
Wells 32

PROCESSING AND EXPORT SPECIFICATIONS

(An Amoco (U.K.) Photograph) Oil Throughput 130000


(bbl/day)

Oil Export 20" x 13 km pipeline to Cormorant


Gas Export 10" x 11 km pipeline to WELGAS 'T'
into FLAGS - but all gas now used
for fuel or injection

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 328.19 193.21 129.69 94.11 63.35 25.11 -21.68
Net Present Value (Deflated) 339.52 112.15 12.37 -41.69 -87.28 -142.30 -206.25

@


Profit/Inv Ratio 0.42 0.31 0.23 0.18 0.13 0.06 -0.06
Profit/Inv Ratio (Deflated) 0.22 0.09 0.01 -0.04 -0.09 -0.15 -0.25
NPV/Unit Oil Equiv. 2.57 2.26 1.89 1.58 1.22 0.58 -0.68
NPV/Unit Oil Equiv. (Deflated) 1.74 0.84 0.11 -0.44 -1.05 -2.05 -3.97
PRODUCTION PERFORMANCE
Payback Year 1985 HISTORICAL AND PROJECTED
Nominal Rate Of Return % 17.43
Real Rate Of Return % 8.43 60 50
Liquid
Post Corporation Tax
Gas

@@@


Net Present Value 154.05 76.82 37.40 14.74 -5.10 -30.01 -60.62 Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Net Present Value (Deflated) 73.39 -65.86 -128.86 -163.19 -192.12 -226.77 -265.99 50
Profit/Inv Ratio 0.20 0.12 0.07 0.03 -0.01 -0.07 -0.16 40
Profit/Inv Ratio (Deflated) 0.05 -0.05 -0.11 -0.15 -0.19 -0.24 -0.33
NPV/Unit Oil Equiv. 1.21 0.90 0.55 0.25 -0.10 -0.70 -1.91
NPV/Unit Oil Equiv. (Deflated) 0.38 -0.49 -1.19 -1.72 -2.30 -3.27 -5.12 40

Nominal Rate Of Return % 11.46 30


Real Rate Of Return % 2.44
30
Earnings Data

@@@


Gross Revenue 1,852.55 1,287.88 1,053.48 927.13 819.57 686.35 519.84 20
Royalty 107.76 81.56 68.91 61.64 55.20 46.90 36.04
Petroleum Revenue Tax 0.00 11.23 14.38 15.56 16.21 16.49 15.81 20
Corporation Tax 174.14 116.40 92.29 79.37 68.45 55.12 38.93
Capital Expenditure 775.00 626.44 558.81 520.29 486.05 441.38 380.80
Operating Costs 641.60 375.44 281.69 235.53 198.74 156.47 108.88 10
10
Gross Revenue (Deflated) 2,936.55 2,082.04 1,719.45 1,521.70 1,351.98 1,139.87 871.42
Royalty (Deflated) 185.74 138.59 116.62 104.15 93.17 79.10 60.79
Petroleum Revenue Tax (Deflated) 21.12 32.91 35.31 35.75 35.57 34.47 31.45
Corporation Tax (Deflated) 266.13 178.01 141.23 121.50 104.84 84.48 59.74
0 0
Capital Expenditure (Deflated) 1,533.95 1,272.95 1,150.79 1,080.11 1,016.60 932.64 816.70
Operating Costs (Deflated) 856.22 525.44 404.36 343.37 293.93 235.95 168.74 1980 1985 1990 1995 2000

Year

ECONOMIC INDICATORS FROM 1/1/1996 CASH FLOW REPORT


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Pre Corporation Tax MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Net Present Value -82.32 -76.52 -73.36 -71.37 -69.47 -66.77 -62.65 1979 0.0 0.0 0.0 20.0 0.0 0.0 0.0 -20.0 -211.3 0.0 0.0 0.0
Net Present Value (Deflated) -79.16 -73.58 -70.54 -68.63 -66.80 -64.21 -60.25 1980 0.0 0.0 0.0 85.0 0.0 0.0 0.0 -85.0 -733.5 0.0 0.0 0.0
NPV/Unit Oil Equiv. -35.24 -33.57 -32.64 -32.04 -31.47 -30.65 -29.38 1981 0.0 0.0 0.0 200.0 0.0 0.0 0.0 -200.0 -1,356.6 0.0 0.0 0.0
1982 0.0 0.0 0.0 145.0 0.0 0.0 0.0 -145.0 -813.1 0.0 0.0 0.0
Post Corporation Tax 1983 294.3 9.1 45.0 75.0 24.2 0.0 33.4 140.9 674.3 41.1 2.0 0.0
1984 389.1 32.2 50.0 60.0 30.4 0.0 62.6 216.5 917.2 47.0 13.0 0.0
Net Present Value -82.32 -76.52 -73.36 -71.37 -69.47 -66.77 -62.65 1985 391.2 37.5 50.0 60.0 18.6 0.0 56.1 225.1 840.4 51.1 8.0 0.0
Net Present Value (Deflated) -79.16 -73.58 -70.54 -68.63 -66.80 -64.21 -60.25 1986 189.8 25.0 45.0 30.0 15.1 91.5 131.5 -16.7 -54.3 53.1 6.0 0.0
NPV/Unit Oil Equiv. -35.24 -33.57 -32.64 -32.04 -31.47 -30.65 -29.38 1987 121.7 8.6 40.0 10.0 3.0 41.4 53.0 18.7 54.6 30.0 2.0 0.0
1988 98.2 3.4 42.0 15.0 -91.2 22.0 -65.8 107.0 282.7 32.0 2.0 0.0
Earnings Data 1989 71.7 1.0 42.0 15.0 0.0 13.9 15.0 -0.3 -0.7 18.0 0.0 0.0
1990 90.0 0.0 40.0 25.0 0.0 5.3 5.3 19.7 38.7 19.0 0.0 0.0
Gross Revenue 25.14 24.53 24.19 23.97 23.76 23.44 22.95 1991 36.9 0.7 38.0 25.0 0.0 11.0 11.7 -37.8 -62.9 9.0 0.0 0.0
Royalty -11.14 -10.34 -9.90 -9.63 -9.37 -8.99 -8.43 1992 41.5 0.0 36.0 10.0 0.0 -6.9 -6.9 2.4 3.5 10.6 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1993 47.6 0.3 34.0 0.0 0.0 -3.9 -3.6 17.2 22.3 11.7 0.0 0.0
Corporation Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1994 27.4 1.0 32.0 0.0 0.0 -0.1 0.9 -5.4 -6.4 7.4 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 28.1 0.0 29.0 0.0 0.0 0.0 0.0 -0.9 -1.0 7.4 0.0 0.0
Operating Costs 118.60 111.39 107.45 104.97 102.59 99.21 94.03 Total To Start Of Discounting ( 1/JAN/1996)
1,827.4 118.9 523.0 775.0 0.0 174.1 293.0 236.4 -406.2 123.2 12.0 0.0
Gross Revenue (Deflated) 25.14 24.53 24.19 23.97 23.76 23.44 22.95
Royalty (Deflated) -10.70 -9.93 -9.51 -9.25 -8.99 -8.64 -8.09 1996 25.1 0.3 25.0 0.0 0.0 0.0 0.3 -0.2 -0.2 6.4 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 0.0 -11.5 93.6 0.0 0.0 0.0 -11.5 -82.1 -70.4 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 115.00 108.05 104.24 101.85 99.55 96.29 91.29 Total 25.1 -11.1 118.6 0.0 0.0 0.0 -11.1 -82.3 -70.5 2.3 0.0 0.0

These cash flows include N W Hutton field only


49/18 Amoco 49/19 Shell SUMMARY
0 4 km
The Indefatigable field lies in Blocks 49/18, 48/19, 49/23 and 49/24
D
VIKING SOUTH in the UK sector of the Southern North Sea, approximately 90 km
2
northeast of Bacton on the UK coast.
The field was discovered in June 1966 with Well 49/18-1 which found
2 gas in Rotliegendes sandstones and subsequent appraisal has shown
INDEFATIGABLE that the field extends into four blocks. First gas was achieved in
B 4 NORTH EAST September 1971 and to date a total of 15 platforms have been used to
3 develop the field.
1 Like the Leman field, Indefatigable is not unitised. In effect, the
3 revenues resulting from production from each area accrue to the group
A which owns the area.
M INDEFATIGABLE The D platform has been used to exploit South West Indefatigable.
4 5
1 Compression platform and facilities have been installed during 1995 to
2 increase recoverable reserves and halt decline. There has also been
VICTOR development of surrounding small satellite structures in the
1 AT J 4 Indefatigable area. These include Bessemer, Baird, Bell and Davy.
C 3 Baird came onstream in December 1993 peaking rapidly at 50 MMcfd
in 1994. Bessemer, discovered by Well 49/23-5, started productions in
2 D5 16 October 1995 and has been exploited by means of an AMOSS platform
3 L
8 N tied back to Indefatigable. Davy commenced production in October
K 1995, with gas exported via tie-back to Indefatigable. Finally, Bell, to the
2
south of Indefatigable was discovered by 49/23-8 in 1993, but is not
SOUTHWEST expected to be developed until 1997.
1
INDE. The current interests in the Indefatigable field in per cent. are:
4 BAIRD SOUTHEAST
8 18
INDE. BLOCKS 49/18 AND 49/23 (59.25%)
BELL 4
6
CALLISTO BESSEMER NORTH SEAN Amoco (UK) Petroleum Ltd.* 30.769
5 6 British Gas plc 30.769
49/23 Amoco 49/24 Shell Amerada Hess Ltd 23.077
Enterprise Oil plc 15.385

BLOCKS 49/19 AND 49/24 (40.75%)

Shell UK Ltd.* 50.000


Esso Expl. and Prod. UK Ltd. 50.000

operator *

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Indefatigable field is located in the central part of the Southern
North Sea Basin, to the northeast of the Sole Pit axis of inversion. The
reservoir section consists of Rotliegendes sandstones located in the
Gas Gravity S.G. (air =1) 0.61 main Rotliegendes dune field but close to an area dominated by fluvial
Condensate Gas Ratio (bbl/MMscf) 3 sediments. The section therefore comprises a mixed sequence of
Gas Expansion Factor (vol/vol) 232 aeolian and fluvial sandstones with minor interdune and fluvial
Reservoir Pressure Pi (psig) 4105 (4025 in 49/25-2) sediments.
at Datum Depth of (ft TVDSS) 8850 There are a number of accumulations in the proximity of
Reservoir Temperature (F) 195 Indefatigable which are all Rotliegendes Group sandstone reservoirs.
The reservoir quality in this area of the North Sea is generally good. The
Sean field to the southeast has particularly good permeability
Rock Properties
sandstones. To the northwest, in the Viking field area, good quality
reservoirs are found, but the porosity and permeability tend to worsen
Rock Type Sandstone as the southern limit of the Silverpit Formation is approached.
Stratigraphic Unit Rotliegendes Group
Geological Age Lower Permian
Porosity Range (per cent.) 11-25
Permeability Range (md) 0.5-2000
Connate Water Saturation (per cent.) 20 (approx.) FIELD DESCRIPTION
Gas Water Contact (ft TVDSS) 8880 (8708 in 49/24-2)
Depth to Top of Structure (ft TVDSS) 7550 The Indefatigable field is a heavily faulted anticline with its major axis
running northwest to southeast, approximately 25 km long and 10 km
Reserves wide. To the west of the main field there is a satellite structure around
Indefatigable Baird Bessemer Davy Well 49/23-2 known as South West Indefatigable which is now being
developed. This is a northwest to southeast trending pericline. Around
Total Gas Reserves (Bcf) 4644 50 130 150 Well 49/24-2 there is a small domal satellite structure.
Total NGL Reserves (MMstb) 9 Gas is found normally pressured in the Lower Permian,
Est. Gas Production to 31.12.95 (Bcf) 4194 17 4 6 Rotliegendes Group. The reservoir consists mainly of aeolian dune
Est. NGL Production to 31.12.95 (MMstb) 8 sands which vary in thickness from 150 to 450 feet. This is overlain by
Remaining Gas Reserves (Bcf) 450 33 126 144 Kupferschiefer shale, carbonates and evaporites of the Zechstein
Remaining NGL Reserves (MMstb) 1 Group which form the seal to the reservoir. Porosities are moderate to
locally very good, and permeabilities are widely variable from very poor
to very good.
Production
A gas-water contact is found in the main field at approximately 8880
ft TVDSS and at 8770 and 8708 ft TVDSS in the satellite structures to
Water Depth (feet) 100-120 the west and east respectively. The gas zone is only partly underlain by
Production Start Date September 1971 water and because of the considerable faulting, field aquifer support is
Peak Gas Production (yrly average) (MMscf/day) 665 unlikely to be large.
Achieved in 1980 The field was brought onstream in 1971 and to date approximately
Platform(s) Amoco 10 90 per cent. of the total reserves have been produced.
Shell 5 The nearby Bessemer accumulation was discovered in 1989 by Well
49/23-5 and has been developed by means of a single steel AMOSS
Number of Wells 62 platform tied into Indefatigable by 16" pipeline. Production started in
Gas and NGL Export 30" pipeline to Bacton October 1995, with peaking expected in 1996. The small Beaufort field
terminal via Leman will be developed as a single-well tieback to Bessemer.
Davy, 43 km southeast of Indefatigable is remotely controlled and
gas exported via Indefatigable. Production started in 1995 via four wells.
Baird has been developed by extended reach well (49/23-8D5)
drilled from Inde D platform and came on stream in December 1993,
with gas transported via 16" pipeline to the Inde C production complex.
Bell, a small accumulation discovered in 1993, has yet to be
developed although use of an AMOSS is expected with gas exported
via Indefatigable in 1997.
STRUCTURE AND STRATIGRAPHY 49/18 Amoco 49/19 Shell/Esso

The main reservoir of the Indefatigable field is the

Indefatigable
UNITED KINGDOM
Lower Permian Rotliegendes sandstone although gas- 8800

bearing Carboniferous sandstones have also been 2 TOP ROTLIEGENDES


encountered. The Rotliegendes varies in thickness from STRUCTURE
approximately 150-450 feet. The field consists of a 8400 (Contours in feet)
northwest to southeast trending, complex faulted horst 80
00
880
block with 3 separate structures: the main area with high 0 1

8800
relief, the 49/23-2 area with low relief and the 49/24-2

76
3

00
area also with low relief. The main area forms a broad 86
00 840
anticline 25 km long by approximately 3 km wide with its

84
0 GWC - 8880'

88
00

00
crest at approximately 7550 feet TVDSS. The gas-water 840
approx.
0
contact is at approximately 8880 feet below sea level
2A
giving a maximum gas column of approximately 1330
feet, although pay thicknesses range up to only 420 feet. 8800

86
The 49/23-2 area structure, Southwest Indefatigable,

00
49/23 Amoco 0 8400 49/24 Shell/Esso
consists of several domes and basins trending northwest 88
0
1
to southeast for approximately 8 km. The highest relief of

0
8 40
the structure is at 8570 feet TVDSS with a gas-water
contact at 8770 feet TVDSS. The 49/24-2 structure is a 88
00 84 8800
3
small domal horst. Its crest is at approximately 8570 feet 00 84
00
TVDSS and it has a gas-water contact at 8708 feet 2 16
TVDSS. The main horst area is divided into several blocks
by north to south trending faults with its flank area partially 2

860
GWC - 8708'
bounded by northwest to southeast trending faults. The

0
approx.
GWC - 8770'
49/24-2 area is isolated from the main horst by a narrow approx.
northwest to southeast trending graben. The reservoir 0 5 km

sandstones are sealed by Zechstein evaporites and


carbonates.
(After France,1975)

INTERPRETATIVE STRUCTURAL CROSS SECTION


49/23-2 49/23-1 49/18-1
Feet SW NE
0
TERTIARY/QUATERNARY
Chalk Group
2000

4000 JURASSIC Cromer Knoll Group TRIASSIC

6000
Zechstein Group PERMIAN
8000 Rotliegendes
Group
10000 CARBONIFEROUS

0 1 2 3 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Permian Rotliegendes Group reservoir sandstone represents a sequence of strata. This unit comprises extra-formational conglomerates and coarse, horizontally
alluvial plain sandstones, mudstones and conglomerates deposited in a hot semi- and locally trough cross-bedded sandstones interpreted as interdigitated aeolian and
arid desert setting. This basin was bounded by the London Brabant Massif in the fluvial deposits formed by periodic flooding of wadis; a lower middle unit of massive,
south and southwest, by the mid-North Sea and Ringkobing - Fyn highs in the north horizontally laminated, adhesion rippled, and cross bedded sandstones and thin
and by an area of Pennine uplift in the west. The sequence comprises well sorted, mudstones, interpreted as a mixed sequence of interbedded aeolian dune, and
clean, cross-bedded aeolian dune sandstones, interbedded with less well sorted, aeolian interdune sandstones, and fluvial streamflow/streamflood sandstones and
locally argillaceous interdune sands, and poorly sorted fluvial sediments.The mudstones; an upper middle unit of low to high angle cross bedded sandstones
sandstones represent arid desert sediments whose deposition was abruptly interpreted as stacked aeolian dunes; and a topmost unit of grey, massive and faintly
terminated by the inflooding of the Zechstein Sea. bedded sandstones interpreted as aeolian sandstones reworked by flooding of the
The Rotliegendes sequence in the Indefatigable field consists of the following basin by the Zechstein Sea ("Weissliegend").
lithostratigraphic units: a basal unit which lies unconformably on Carboniferous

REPRESENTATIVE WELL SECTION - 49/18-3


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 1.95 2.95
CLAY

AGE

0 150
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON
VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Marine evaporites overlying anoxic marine


PERMIAN
UPPER

shale.

Marine reworked aeolian sandstones.Sheet


geometry. Moderate porosity, poor to very
good permeability.
ZECHSTEIN

8850

Aeolian dune and adhesion rippled wet


interdune sandstones interbedded with
fluvial wadi channel sandstones.

Geometry
Laterally extensive sheet geometry aeolian
sandstones and lenticular to sheet geometry
49/18-3
LEMAN SANDSTONE FORMATION

fluvial sandstones.
ROTLIEGENDES GROUP

and K
Moderate and locally good porosity and
LOWER PERMIAN

permeability preserved in aeolian dune


sandstones. Permeability locally poor and
very poor in interdune sandstones.
8950

Moderate to good porosity and variable very


poor to very good permeability in fluvial
sandstones.
CARBONIFEROUS

9050
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Indefatigable
10000
49/18-3

A M - Marine reworked sandstone


A - Stacked aeolian dune sandstone
A/F A/F - Mixed sequence of aeolian dune and
interdune sandstones and fluvial 1000
M sandstones and mudstones
B - Basal unit of coarse fluvial wadi
49/19-2A sandstones
B

100

PERMEABILITY (md.)
100 49/23-3
10
200 feet 49/24-16

A 49/24-2
M
1
A/F
B
A/F

0.1

The Rotliegendes Group in the Indefatigable field can be subdivided into four facies
based on lithostratigraphic units. These are a thin basal fluvial sandstone, a generally thick
interbedded fluvial and aeolian sequence, a stacked aeolian dunal unit and a thin 0.01
uppermost marine reworked unit (Weissliegend). Each unit has an overall sheetlike 0 10 20 30
geometry. Within these units fluvial, aeolian and minor lacustrine facies units have complex POROSITY (per cent.)
interdigitating sheet to lenticular geometries. Vertically impermeable lithologies are laterally
restricted and do not form barriers to vertical fluid flow.
Within the northeastern area of the field, the Rotliegendes attains a maximum thickness
Porosity values are moderate to very good, typically 11 - 25 per
of 450 feet, and thins to less than 150 feet towards the southwest. This thickness variation
cent. Permeability values range from very poor to very good, but are
is mirrored by the lithostratigraphic subunits, although the Weissliegend maintains a thin
predominantly moderate to very good (up to 2000 md).
sheetlike geometry.
Trends in porosity and permeability values are controlled by grain
size, sorting and detrital clay content, and therefore facies
distribution.
The predominance of texturally mature aeolian dune sandstones,
(with little diagenetic modification by clays or cement) is reflected in
the common good to very good permeability values. Porosity and
permeability are lower in less well sorted, locally argillaceous and
commonly preferentially cemented fluvial and interdune sands.
FLUID PROPERTIES

The Indefatigable field contains a dry gas with a producing condensate gas ratio of 3
bbl/MMscf. A separator gas composition which was sampled during testing of Well 49/19-
2A is shown below.

RESERVOIR PRESSURE
COMPOSITION 1.05
At initial reservoir conditions the Indefatigable field was normally
(mol. %) 49/19-2A
pressured with an average hydrostatic gradient to surface of 0.47
CO2 0.52 psi/ft. The reservoir pressure for S.E Indefatigable is included on the
GAS DEVIATION FACTOR Z

N2 2.73 diagram below. It has a shallower GWC and therefore a lower


H2S -
C1 91.80
1.00 reservoir pressure.
C2 3.39 Zi = 0.96
C3 0.85
C4 0.36
8000
C5 0.13
C6 0.06 0.95
C7+ 0.16
S.G. (AIR=1.0) 0.61
C.V. (Btu/scf) 1037 Main structure

@ 195F (from correlation)


0.90
0 1000 2000 3000 4000 5000
DEPTH (feet TVDSS)

PRESSURE (psig)

8500
S.E. Indefatigable 0.075 psi/ft

0.075 psi/ft

GWC @ -8708 ft TVDSS


Approx

GWC @ -8880 ft TVDSS Approx


CONTROLS ON RECOVERY
9000
The recovery factor is expected to be very good (above 90 per cent.), resulting from: 4000 4050 4100 4150 4200

INITIAL RESERVOIR PRESSURE (psig)


common good and very good permeabilities in predominantly aeolian and subordinate
fluvial wadi sandstones
a simple sheetlike reservoir sand geometry with no vertical permeability barriers
drainage of low permeability sandstones through interbedded and enveloping higher
permeability sandstones
a complex fault system, dissecting the reservoir, limiting potential aquifer influx
extensive production and compression facilities, allowing drainage of all areas of the
field to a very low abandonment pressure
FACILITIES SPECIFICATIONS

AMOCO/GC(E) SHELL/ESSO

Indefatigable
UNITED KINGDOM
Water Depth 93-102 98
(feet)
Platform Complexes 3 5
Platforms per Complex 2, 3 1, 2
Number of Platforms 10 6
Platform Type steel jackets + steel jackets
1 jackup

Jacket Weights 241-938 450-568


(tonnes)
Topside Weights 803-6718 520-3114
(tonnes)

Accommodation (total) 155 65

Wells 28 29
Well Slots 30 32

PROCESSING AND EXPORT SPECIFICATIONS

y
Peak Gas Throughput 1200 MMscf/day design capacity
(A Shell Photograph) (MMscf/day) from compression platform

Gas Export 30" x 35.8 km pipeline to Leman 49/27


Amoco operates three production complexes and one satellite wellhead platform. It also has a BT Platform thence on to Bacton
three platform compression oil terminal complex, AQ, AC, AT. The Shell development consists of one
production complex and tower platforms. Gas is exported via the Amoco/BT platform on Leman but
passes first to the locally owned AT platform. Demanding projects are being undertaken.

PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED

10 700
Liquid

Gas

yyyy
FULL FIELD LIFE ECONOMIC INDICATORS 600

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


8
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
500
Pre Corporation Tax

Net Present Value 982.41 486.32 310.12 229.82 170.37 108.35 48.57 6
Net Present Value (Deflated) 2,066.61 916.59 541.14 367.85 237.01 96.70 -43.94 400
Profit/Inv Ratio 1.93 2.21 2.08 1.91 1.70 1.35 0.79
Profit/Inv Ratio (Deflated) 1.69 1.19 0.84 0.63 0.44 0.20 -0.10
NPV/Unit Oil Equiv. 1.24 1.27 1.17 1.08 0.98 0.83 0.56

yyyy
NPV/Unit Oil Equiv. (Deflated) 0.99 0.74 0.58 0.46 0.35 0.18 -0.11 300
4
Payback Year 1975
Nominal Rate Of Return % 30.24 200
Real Rate Of Return % 18.07

Post Corporation Tax 2 Indefatigable only


100
Net Present Value 454.41 259.39 166.93 122.67 89.19 53.66 18.81
Net Present Value (Deflated) 1,083.56 454.51 235.01 131.74 52.96 -32.28 -118.27
Profit/Inv Ratio 0.89 1.18 1.12 1.02 0.89 0.67 0.31
Profit/Inv Ratio (Deflated) 0.89 0.59 0.37 0.23 0.10 -0.07 -0.28 0 0
NPV/Unit Oil Equiv. 0.57 0.68 0.63 0.58 0.52 0.41 0.22
1970 1975 1980 1985 1990 1995 2000 2005 2010
NPV/Unit Oil Equiv. (Deflated) 0.52 0.37 0.25 0.17 0.08 -0.06 -0.30
Year
Nominal Rate Of Return % 25.16
Real Rate Of Return % 13.72

Earnings Data

Gross Revenue 2,996.43 1,142.11 700.03 520.95 396.15 272.17 157.46 CASH FLOW REPORT
Royalty 211.45 94.92 60.27 45.26 34.45 23.45 13.12
Petroleum Revenue Tax 40.86 8.74 3.61 2.03 1.16 0.51 0.14 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Corporation Tax 528.00 226.93 143.19 107.15 81.18 54.69 29.76 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Capital Expenditure 508.00 219.93 149.05 120.28 100.25 80.33 61.59 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Operating Costs 1,253.72 332.20 176.97 123.56 89.92 59.53 34.05
1968 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -728.2 0.0 0.0 0.0
Gross Revenue (Deflated) 5,276.50 2,502.16 1,722.30 1,375.35 1,116.25 837.54 548.42 1969 0.0 0.0 0.0 15.0 0.0 0.0 0.0 -15.0 -968.9 0.0 0.0 0.0
Royalty (Deflated) 424.39 206.46 140.03 110.01 87.54 63.51 39.11 1970 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -1,423.4 0.0 0.0 0.0
Petroleum Revenue Tax (Deflated) 36.12 7.81 3.24 1.83 1.05 0.46 0.13 1971 0.8 0.0 4.0 20.0 0.0 0.0 0.0 -23.2 -1,150.2 0.1 15.5 0.0
Corporation Tax (Deflated) 983.05 462.08 306.13 236.11 184.06 128.97 74.33 1972 23.5 0.0 6.0 4.0 0.0 0.0 0.0 13.5 565.0 0.9 436.4 0.0
Capital Expenditure (Deflated) 1,219.69 773.23 643.14 583.30 536.93 484.02 422.06 1973 25.6 1.0 7.1 2.0 0.0 0.0 1.0 15.5 560.7 0.9 441.2 0.0
Operating Costs (Deflated) 1,529.68 598.06 394.73 312.36 253.72 192.85 131.07 1974 33.9 2.2 8.3 0.0 0.0 0.0 2.2 23.4 715.2 1.1 537.0 0.0
1975 44.6 3.4 9.4 0.0 0.0 0.0 3.4 31.8 832.1 1.2 604.7 0.0
1976 56.3 4.8 10.6 0.0 0.0 4.6 9.4 36.3 708.5 1.3 614.4 0.0
1977 70.4 6.4 11.7 0.0 0.0 20.9 27.3 31.4 486.3 1.3 655.9 0.0
1978 78.2 7.7 12.9 3.0 0.0 26.8 34.4 27.9 344.8 1.3 624.1 0.0
1979 79.6 8.4 15.0 10.0 0.0 28.2 36.6 18.1 191.0 1.2 581.1 0.0
1980 104.4 10.1 16.5 12.0 0.0 23.9 34.0 41.8 361.1 1.3 665.5 0.0
1981 100.9 11.2 18.0 15.0 0.0 33.5 44.6 23.3 158.0 1.1 543.1 0.0
1982 114.4 11.6 19.5 2.0 0.0 29.7 41.2 51.7 289.8 1.1 553.4 0.0
1983 102.0 11.5 21.0 2.0 0.0 41.9 53.4 25.6 122.5 0.9 454.7 0.0
1984 127.6 12.2 21.8 35.0 0.0 34.5 46.7 24.2 102.4 1.1 540.8 0.0
1985 126.5 13.2 22.7 35.0 0.0 29.5 42.7 26.0 97.2 1.0 515.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1986 152.5 14.3 23.6 30.0 0.0 28.7 43.0 55.9 182.2 1.2 598.5 0.0
1987 164.3 16.4 24.0 5.0 0.0 35.8 52.2 83.1 242.6 1.3 622.1 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1988 117.4 14.2 25.2 35.0 0.0 39.5 53.7 3.5 9.2 0.8 430.4 0.0
1989 128.0 11.6 26.5 28.0 0.0 22.6 34.2 39.3 90.0 0.8 410.1 0.0
Pre Corporation Tax 1990 135.3 12.4 26.5 40.0 0.0 24.5 37.0 31.9 62.7 0.9 397.0 0.0
1991 135.1 12.6 27.8 0.0 0.0 24.5 37.1 70.2 116.7 0.8 377.2 0.0
Net Present Value -98.52 19.25 54.68 69.91 80.54 90.45 97.24 1992 134.3 12.6 29.2 0.0 0.0 25.4 38.0 67.1 97.7 0.7 362.5 0.0
Net Present Value (Deflated) 2.90 65.73 83.52 90.68 95.29 98.91 99.73 1993 102.8 10.8 30.2 20.0 0.0 25.9 36.7 15.9 20.6 0.5 270.6 0.0
NPV/Unit Oil Equiv. -1.21 0.29 0.93 1.28 1.57 1.92 2.35 1994 56.0 5.2 32.2 50.0 0.0 16.0 21.2 -47.4 -56.1 0.2 139.2 0.0
1995 63.4 1.3 33.1 100.0 1.0 -0.6 1.8 -71.5 -76.6 0.2 145.0 4.7
Post Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
2,277.7 214.9 482.8 498.0 1.0 516.0 731.9 565.0 1,952.6 8.5 4,210.4 1.7
Net Present Value -110.55 8.79 45.06 60.82 71.94 82.55 90.38
Net Present Value (Deflated) -8.08 56.25 74.83 82.49 87.57 91.84 93.63 1996 100.9 2.6 38.5 10.0 4.7 -4.9 2.3 50.0 48.1 0.4 210.0 19.2
NPV/Unit Oil Equiv. -1.36 0.13 0.77 1.11 1.40 1.75 2.19 1997 96.0 4.4 40.0 0.0 5.6 5.8 15.8 40.1 34.4 0.3 188.0 19.2
1998 83.7 4.0 40.6 0.0 5.9 6.6 16.5 26.7 20.3 0.3 157.6 19.2
Earnings Data 1999 74.2 3.7 41.5 0.0 6.1 4.6 14.3 18.3 12.4 0.2 133.7 19.2
2000 58.4 3.0 41.0 0.0 5.3 2.8 11.1 6.3 3.8 0.2 106.8 15.3
Gross Revenue 718.73 572.15 508.45 473.12 442.34 403.09 351.59 2001 52.0 2.2 42.6 0.0 4.2 -0.8 5.6 3.7 2.0 0.2 93.7 11.5
Royalty -3.49 7.72 10.59 11.63 12.22 12.55 12.26 2002 46.4 1.8 38.6 0.0 3.2 -1.5 3.6 4.2 2.0 0.2 82.2 8.5
Petroleum Revenue Tax 39.82 33.20 30.06 28.24 26.60 24.44 21.47 2003 41.3 2.0 34.9 0.0 2.5 -0.5 4.0 2.3 1.0 0.1 72.2 6.3
Corporation Tax 12.04 10.47 9.62 9.10 8.60 7.90 6.86 2004 37.1 2.3 31.6 0.0 2.0 0.0 4.3 1.2 0.4 0.1 63.3 4.8
Capital Expenditure 10.00 9.76 9.62 9.53 9.45 9.33 9.13 2005 30.5 2.0 28.6 0.0 0.4 0.0 2.3 -0.4 -0.1 0.1 55.6 0.0
Operating Costs 770.92 502.23 403.50 353.80 313.53 266.33 211.50 2006 27.9 1.6 25.9 0.0 0.0 0.0 1.6 0.4 0.1 0.1 48.8 0.0
2007 25.5 1.5 23.5 0.0 0.0 0.0 1.5 0.6 0.2 0.1 42.8 0.0
Gross Revenue (Deflated) 608.68 496.30 446.46 418.49 393.91 362.23 320.01 2008 23.4 1.4 21.2 0.0 0.0 0.0 1.4 0.8 0.2 0.1 37.6 0.0
Royalty (Deflated) 6.39 11.50 12.53 12.77 12.79 12.54 11.79 2009 21.4 1.3 19.2 0.0 0.0 0.0 1.3 0.9 0.2 0.1 33.0 0.0
Petroleum Revenue Tax (Deflated) 35.05 29.52 26.88 25.34 23.95 22.11 19.56 Remain
Corporation Tax (Deflated) 10.98 9.49 8.69 8.19 7.73 7.07 6.10 2010 0.0 -37.3 303.0 0.0 0.0 0.0 -37.3 -265.8 -50.3 0.0 0.0 0.0
Capital Expenditure (Deflated) 10.00 9.76 9.62 9.53 9.45 9.33 9.13
Operating Costs (Deflated) 554.34 379.78 313.91 280.16 252.43 219.34 179.80 Total 718.7 -3.5 770.9 10.0 39.8 12.0 48.4 -110.6 74.8 0.9 483.7 45.0

These cash flows include Indefatigable and Baird fields, plus Bessemer and Davy tariff income
1,11,13,16 4,4A 24 SUMMARY
17
22
TARTAN 2,2A 15/16 WESTRAY
7 Texaco 15/17 Elf-Ent.
The Ivanhoe and Rob Roy fields are located in Quadrant 15
15/21a Amerada Hess 15/22 Amoco approximately 180 km northeast of Aberdeen, in the Outer Moray Firth
49
area of the North Sea. Ivanhoe was discovered in 1975 by Well 15/21a-
7
47 3 which encountered oil in the Upper Jurassic Piper Formation. The
PERTH area was considered uncommercial until discovery of Rob Roy by Well
6
15/21a-11 in 1984.
39
SCOTT Development of the fields using a single semi-submersible vessel
15/21b 8
Amerada Hess 36 3 7 and 3 subsea manifolds began in 1987 and first oil was produced in July
35 1989. The small Hamish field commenced production in 1990 from one
2 20
15 well tied back through the Rob Roy subsea manifold.
4,5
38 The current interests in the Ivanhoe, Rob Roy and Hamish fields in
34 per cent. are:-
GAMMA 43
6 46 44 9
45 SOUTH SCOTT Deminex UK Oil and Gas Ltd 43.33
51,52 MARMION 1 Kerr McGee Oil (UK) plc 10.83
41 50 Pict (Premier) 3.75
1 48
13 11 10
5
Amerada Hess Ltd * 42.08
HAMISH TELFORD
37 21
10 2
12 operator *
4 11 54
40
9 8 12A 42
10 ROB ROY
13
3,42 14
IVANHOE
14/26b BP 15/26a Deminex 15/27 Phillips
6
0 4 km

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties IVANHOE ROB ROY The Ivanhoe and Rob Roy fields are located south of the Halibut
Horst in the Outer Moray Firth Basin. To the north, in Quadrant 15, the
Oil Gravity (API) 33 39 (41*) Tartan and Piper fields also produce from the Upper Jurassic Piper
Gas/Oil Ratio (scf/stb) 340 613 (1390*) Formation. To the southeast, in Quadrant 15, the Renee and Glenn
Bubble Point Pressure, Pb (psig) 1840 1914 (3474*) discoveries also contain oil in Upper Jurassic Sandstones. To the south,
Formation Volume Factor at Pi (rb/stb) 1.2 1.37 (1.8*) in Quadrant 21, the Buchan field produces oil from the fractured Late
Oil Compressibility (vol/vol/psi) 6.8 x 10-6 Devonian Buchan Formation. Scott, a substantial Upper Jurassic oil
Original Reservoir Pressure, Pi (psig) 3560 3510 field to the north commenced production in September 1993.
At Datum Depth of (ft TVDSS) 8000 8000
Reservoir Temperature (F) 189 175

Rock Properties

Rock Type --------------------- Sandstone ---------------------


Stratigraphic Unit Piper Formation -----------------
-----------------
Geological Age ------------------ Upper Jurassic -----------------
Porosity Range (per cent.) -------------------------- 20-30 -------------------------
Permeability Range (md) ---------------------- 100-4000 ----------------------
Connate Water Saturation (per cent.) --------------------------- 5-20 --------------------------
Oil Water Contact (ft TVDSS) 8040 7994 (7926*)
Depth to Top of Structure (ft TVDSS) 7670 7560 FIELD DESCRIPTION

Reserves The Ivanhoe and Rob Roy fields are two separate faulted structures.
Ivanhoe Rob Roy Hamish The reservoir sands are within the Upper Jurassic Piper Formation
Total Oil Reserves (MMstb) ---------------------------- 160 -------------------------- which averages 400 to 850 feet in thickness. These marine sandstones
Total Gas Reserves (Bcf) ----------------------------- 60 --------------------------- vary from relatively argillaceous sands of good porosity but poor
Est. Oil Production to 31.12.95 (MMstb) ---------------------------- 137 -------------------------- permeability to clean sands of excellent porosity and permeability.
Est. Gas Production to 31.12.95 (Bcf) ----------------------------- 52 --------------------------- Two separate reservoirs can be identified: an upper 'Supra Piper'
Remaining Oil Reserves (MMstb) ----------------------------- 23 --------------------------- and a lower 'Main Piper' sandstone unit. These two units have been
Remaining Gas Reserves (Bcf) ------------------------------ 8 ---------------------------- faulted into juxtaposition in Ivanhoe with a common oil water contact at
8040 feet. The Rob Roy field however has no communication between
Production the two units and has two oil water contacts at 7926 and 7994 feet.
All of the reservoirs are undersaturated except the Rob Roy Supra
Water depth (feet) ---------------------------- 459 -------------------------
Piper which is 100 psi above saturation pressure.
Production Start Date ----------------------- July 1989 --------------------
The undersaturated, generally high quality reservoirs have oil of low
Peak Production (stb/day) -------------------------- 64000 -----------------------
viscosity and favourable mobility ratio for water flooding. This, and good
well productivities indicate that a very high recovery factor will be
Platform(s) -------- Floating Production Facility ------
achieved. Gas lift is anticipated as the most likely artificial mechanism
Number of Wells - Producers 3 5
to be used once watercut becomes excessive. It will not be utilised in
Water Injectors 3 3
Rob Roy Supra Piper. Production from the fields began in July
Gas Injectors
1989.Since its peak performance in 1992, production from both Ivanhoe
Oil and NGL Export ------------- Pipeline to Claymore -----------
and Rob Roy has experienced a fairly swift decline and a final output is
Gas Export ---------------- Pipeline to Tartan --------------
anticipated in 1999.
A small satellite discovery named Hamish was discovered by Well
* indicates Supra Piper reservoir in Rob Roy field. 15/21b-21. Annex B approval for its development as a Rob Roy satellite
was granted in February 1990 with production starting immediately. A
single well was used, tied to the Rob Roy subsea manifold and
production ceased in 1994.
STRATIGRAPHY AND STRUCTURE

Ivanhoe & Rob Roy


IVANHOE AND ROB ROY
The Upper Jurassic, Piper Formation forms the

UNITED KINGDOM
TOP SUPRA PIPER
reservoir in the Rob Roy/Ivanhoe fields area. The
reservoir sandstones are Upper Oxfordian to Middle DEPTH STRUCTURE
Kimmeridgian in age, and commonly overlie the coastal 0 1 km OWC 7926
plain sediments of the Sgiath Formation. A minor
(Contours in feet TVDSS)
stratigraphic break separates the Piper Formation from

0
790
the overlying Kimmeridge Clay Formation mudstones ROB ROY

7700
7800
which form the seal and no major truncation of reservoir 76
00
MANIFOLD

7900
sands is apparent. Rob Roy and Ivanhoe are located on 9 25 24
4
a complex, probably highly faulted terrace, downthrown 00 11
80
from the Halibut Horst to the north by the major South

00

0
800
0
82
770 16

810
Halibut Fault. Early production data suggest that the 0 31
800 18 0
faults in the field are not barriers to in-field 00 8 790
00
80 19 77
00
0 12A
78
communication. IVANHOE 78

79
78 00
MANIFOLD 80

00
80 00 790 7900
00 50 0 14
800
SEDIMENTOLOGY AND DEPOSITIONAL 10 80 13 0 8000
ENVIRONMENT 7800 26
00 8100
790 81
0 33 00
The Piper Formation sediments in the Rob Roy and 3 82 8200
8000
Ivanhoe area represent the components of stacked, 820
0
shoreface progradation sequences. Two major 83
00
regressive sequences are recognised, separated and OWC 8040
capped by transgressive sequences. Unit 1, the lower
unit, comprises a basal unit of marine mudstones,
overlain by a repeated sequence of relatively coarse
grained clean shoreface and shoreface attached bar
sandstones. The unit thickens to the north and northwest, (After Parker RH, 1991)

towards the South Halibut Fault, indicating a


depositional tectonic control on deposition. Unit 2
represents a single progradation sequence. The basal (Unit 2) fossiliferous marine bioturbated sandstones. Unit 3, the uppermost unit, comprises a single, thin,
mudstone unit appears to maintain a consistent thickness in the area. The transgressive sandstone sequence. The sandstones are coarse grained to pebbly,
mudstones pass upwards into very fine to fine grained, argillaceous burrowed and commonly forming a fining upward unit.

INTERPRETATIVE STRUCTURAL CROSS SECTION


15/21-3 15/21-1 15/21-6 15/22-3
Feet
SW NE

2000 POST PALEOCENE

4000

Chalk Group
6000 PALEOCENE

TRIASSIC
8000
Piper Fm. UPPER CRETACEOUS
oup
Zechstein Gr LOWER CRETACEOU
10000 S
DEVONIAN
Kimmeridge Clay Formation

12000
Rattray Formation

14000
0 1 2 3 km

WELL SECTION - 15/21-4 *


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Euxinic marine mudstones. Laterally extensive


non-reservoir interval.
KIMMERIDGIAN

Transgressive sandstone overlying transition


rubble zone and lower to middle shoreface sandstones
8000

M showing a progradational sequence.


15/21-4 M
Geometry
M Broad sheetlike sandbody, elongate parallel to
frac. palaeo-shoreline.
(
(
) and K
) M
generally moderate, locally good. K very poor
(
) M to poor.
M
UPPER OXFORDIAN - LOWER KIMMERIDGIAN

M
PIPER FORMATION
HUMBER GROUP

Py M
8100

( Py
rubble )
Progradational sequence of nearshore bar or
shoreface sandstones.

Geometry
Sheetlike to broad, elongate lenticular
sandbodies, elongate parallel or oblique to
palaeo-shorelines.

and K
Expected and K moderate to good. profile
likely to show upward increase due to increasing
8200

grain size and decrease in detrital clay content.

* Availaible data are from an argillaceous well section.


RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Ivanhoe & Rob Roy


15/21-4
10000 Supra Piper
Main Piper
Argillaceous Sand

1000

15/21-3
15/21-1 100
Unit 3

Unit 2

PERMEABILITY (md.)
10

15/21-5 Unit 1

0.1

100

200 feet
0.01
0 10 20 30

POROSITY (per cent.)

The principal controls on porosity and permeability are textural.


Thus, both porosity and permeability increase with increased grain
size, sorting and decreased detrital clay content. Superimposed on
these controls are the effects of diagenesis, which are mainly
compaction and quartz cementation in the Rob Roy/Ivanhoe fields.
The threefold subdivision of the Piper Formation into two major regressive units (Main The samples studied from the relatively argillaceous sandstones
Piper) and an upper transgressive unit (Supra Piper) forms the basis of the reservoir (4 to 25 per cent. detrital clay matrix) generally have low
zonation in the Rob Roy/Ivanhoe fields. Unit 1 ranges in thickness from 216 to 655 feet, permeabilities (<10 md), although porosities may reach 30 per cent.
forming a thick sheetlike sediment body, thickening towards the north and northwest. Unit 2 The main Piper reservoir however has clean sandstones with good
represents a single progradational sequence varying in thickness from 79 to 160 feet, porosity (20 to 30 per cent.) and excellent permeability (up to 10
thickening towards the southeast. The basal mudstones form a laterally extensive vertical darcies) The 'Supra Piper' well sorted massive sandstones are
permeability barrier. Unit 3 comprises a thin trangressive sandstone sequence, ranging in thought to have the highest porosities and permeabilities of the
thickness from 2 to 18 feet. The reservoir sandstones form a thin, sheetlike sandbody, reservoir units. They become thinner and more argillaceous to the
directly overlying the sandstones of Unit 2, but generally having higher porosity and North West and towards the Rob Roy field, where the permeabilities
permeability values. rarely exceed one Darcy. Compaction is most significant in
argillaceous sandstones since grain-contact dissolution is most
severe where grain-coating detrital clays are present. Porosity
enhancement, due to quartz corrosion and feldspar dissolution, is
FLUID PROPERTIES locally important, especially in clean sandstones.
Quartz overgrowth is not sufficiently abundant to reduce porosity
The Ivanhoe reservoir fluid is an undersaturated oil with an in situ viscosity of about 1.25 and permeability significantly. It serves mainly to maintain a rigid
cp. The oil gravity is 33 degrees API, gas oil ratio is about 340 scf/stb and bubble point grain framework. Kaolinite may reduce permeability by blocking pore
pressure is about 1840 psig. The main Piper reservoir in Rob Roy is also undersaturated throats, especially where it occurs in loose aggregates within
with a gas oil ratio of 613 scf/stb, a gravity of 39 degrees API and a bubble point pressure intergranular porosity.
of 1914 psig. The Supra-Piper formation however is saturated with a gravity of 41 degrees
API, bubble point of 3474 psig and a gas oil ratio of 1390 scf/stb.
Ivanhoe Main Piper properties are detailed below: RESERVOIR PRESSURE

400 1.4 5.0 The Ivanhoe field and Rob Roy Main Piper reservoir are normally
pressured assuming a gradient to surface of 0.45 psi/ft. The Rob
4.5
GOR Roy Supra Piper reservoir however is approximately 100 psi
4.0
300 overpressured.
3.5
GOR (scf/stb)

B0 3.0
B0 (rb/stb)

0 (cp)

200 1.2 2.5 7000

2.0

1.5
100 7250
0
1.0
IVANHOE ROB ROY SUPRA PIPER
0.5
@ 189F 7500
0 1.0 0.0
DEPTH (feet TVDSS)

0 1000 2000 3000 4000 5000


0.26 psi/ft
0.33 psi/ft
PRESSURE (psig)
7750

CONTROLS ON RECOVERY OWC @ 7926 ft TVDSS


8000
OWC @ 8040 ft TVDSS
Very high recovery factors are expected for both of the Rob Roy and Ivanhoe fields. This
is due to the favourable reservoir characteristics including: 0.45 psi/ft
8250
0.45 psi/ft
generally excellent reservoir permeabilities
low residual oil saturations
favourable mobility ratio for waterflooding 8500

the sheetlike geometry of the Piper reservoir sands and the presence of mudstone 3000 3200 3400 3600 3800 4000

horizons which act as vertical permeability baffles INITIAL RESERVOIR PRESSURE (psia)
FACILITIES SPECIFICATIONS

Ivanhoe & Rob Roy


Water Depth 459

UNITED KINGDOM
(feet)
Platform Type semi-submersible
Function production/
accommodation
Displacement 27067
(tonnes)

Accommodation 100

Well slots 24
Wells 14

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 60000 (design)


(bbl/day)

Oil Export 14" x 39 km pipeline to Claymore


then to Flotta terminal
Gas Export 8" x 22 km pipeline to Tartan
then to St. Fergus
(An Amerada-Hess Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 902.78 592.27 460.33 388.74 327.69 252.23 158.89
Net Present Value (Deflated) 919.87 585.52 443.36 366.23 300.51 219.35 119.26

@


Profit/Inv Ratio 2.57 1.89 1.56 1.38 1.21 0.98 0.68
Profit/Inv Ratio (Deflated) 1.78 1.26 1.02 0.87 0.75 0.58 0.34
NPV/Unit Oil Equiv. 5.33 4.95 4.68 4.48 4.26 3.91 3.24
NPV/Unit Oil Equiv. (Deflated) 4.84 4.32 3.95 3.68 3.40 2.94 2.08
PRODUCTION PERFORMANCE
Payback Year 1991 HISTORICAL AND PROJECTED
Nominal Rate Of Return % 38.21
Real Rate Of Return % 30.23 70 100
Liquid
Post Corporation Tax
Gas

@@@


Net Present Value 602.80 390.20 298.88 249.04 206.37 153.39 87.48 60
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Net Present Value (Deflated) 599.56 368.65 269.58 215.58 169.43 112.27 41.57
Profit/Inv Ratio 1.72 1.24 1.02 0.88 0.76 0.60 0.37
Profit/Inv Ratio (Deflated) 1.16 0.80 0.62 0.51 0.42 0.30 0.12 75
NPV/Unit Oil Equiv. 3.56 3.26 3.04 2.87 2.68 2.38 1.78 50
NPV/Unit Oil Equiv. (Deflated) 3.16 2.72 2.40 2.17 1.92 1.50 0.73

Nominal Rate Of Return % 31.75


40
Real Rate Of Return % 24.13
50
Earnings Data

@@@


30
Gross Revenue 1,870.71 1,324.32 1,091.56 964.65 855.86 720.21 549.35
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 116.57 81.71 66.60 58.31 51.19 42.30 31.14
Corporation Tax 299.98 202.07 161.45 139.70 121.32 98.84 71.40 20
Capital Expenditure 351.00 313.66 294.34 282.54 271.51 256.27 233.86 25
Operating Costs 500.36 336.68 270.29 235.07 205.47 169.41 125.47

Gross Revenue (Deflated) 2,104.15 1,507.51 1,250.88 1,110.17 989.02 837.17 644.40 10
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 126.45 88.71 72.35 63.36 55.64 46.00 33.89
Corporation Tax (Deflated) 320.30 216.87 173.78 150.65 131.08 107.08 77.69 0 0
Capital Expenditure (Deflated) 517.48 463.70 435.76 418.65 402.65 380.49 347.82
Operating Costs (Deflated) 540.36 369.58 299.42 261.92 230.22 191.33 143.44 1985 1990 1995 2000

Year

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax CASH FLOW REPORT


Net Present Value 124.14 119.28 116.49 114.68 112.92 110.36 106.32 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Net Present Value (Deflated) 122.61 117.68 114.87 113.06 111.30 108.75 104.75 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
NPV/Unit Oil Equiv. 5.24 5.40 5.48 5.53 5.58 5.65 5.75 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Post Corporation Tax 1986 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -77.1 0.0 0.0 0.0
1987 0.0 0.0 0.0 110.0 0.0 0.0 0.0 -110.0 -301.2 0.0 0.0 0.0
Net Present Value 61.51 59.43 58.21 57.41 56.62 55.46 53.62 1988 0.0 0.0 0.0 150.0 0.0 0.0 0.0 -150.0 -365.6 0.0 0.0 0.0
Net Present Value (Deflated) 61.03 58.87 57.61 56.80 56.00 54.83 52.98 1989 114.1 0.0 22.5 50.0 0.0 0.0 0.0 41.6 90.3 27.6 7.3 0.0
NPV/Unit Oil Equiv. 2.59 2.69 2.74 2.77 2.80 2.84 2.90 1990 297.2 0.0 51.3 10.0 0.0 0.0 0.0 235.9 455.7 60.7 15.3 0.0
1991 269.0 0.0 54.6 0.0 0.0 45.1 45.1 169.3 291.3 63.3 15.2 0.0
Earnings Data 1992 263.9 0.0 60.8 3.0 45.9 55.6 101.5 98.6 151.0 64.0 28.0 0.0
1993 273.8 0.0 60.1 0.0 44.9 44.5 89.4 124.3 169.4 64.0 26.0 0.0
Gross Revenue 269.10 250.04 239.93 233.68 227.77 219.50 207.11 1994 220.6 0.0 57.0 0.0 15.0 51.3 66.3 97.3 118.1 56.0 27.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 163.1 0.0 49.1 3.0 3.2 43.3 46.5 64.4 69.6 40.0 24.2 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total To Start Of Discounting ( 1/JAN/1996)
Corporation Tax 62.63 59.85 58.28 57.27 56.30 54.89 52.70 1,601.6 0.0 355.4 351.0 109.0 239.8 348.8 546.4 601.6 137.1 52.2 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs 144.96 130.76 123.45 119.00 114.85 109.14 100.79 1996 109.4 0.0 39.0 0.0 0.0 33.6 33.6 36.8 35.4 26.0 14.0 0.0
1997 76.1 0.0 33.4 0.0 0.0 20.2 20.2 22.4 19.2 17.0 7.4 0.0
Gross Revenue (Deflated) 258.64 240.81 231.35 225.48 219.93 212.17 200.51 1998 49.2 0.0 28.3 0.0 0.0 11.8 11.8 9.0 6.9 11.0 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1999 34.4 0.0 26.7 0.0 0.0 5.2 5.2 2.5 1.7 7.4 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 61.59 58.81 57.26 56.26 55.30 53.92 51.77 2000 0.0 0.0 17.5 0.0 0.0 -8.3 -8.3 -9.3 -5.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 136.03 123.13 116.48 112.42 108.64 103.42 95.77 Total 269.1 0.0 145.0 0.0 0.0 62.6 62.6 61.5 57.6 22.4 7.8 0.0

These cash flows include Ivanhoe and Robroy fields


21/12 Shell 21/13a Shell 21/13c Rel. 21/14b Chevron SUMMARY

1 2 The Kittiwake field lies wholly in Block 21/18a, approximately 150 km


2 northeast of Aberdeen. Discovered in 1981 by Well 21/18-2a,
development of the Kittiwake field began in 1987.
3 Original plans involved the development of Kittiwake in association
with the Gannet-Guillemot complex. However, following the 1986 oil
21/13b Shell 3 price collapse it was decided to develop Kittiwake in isolation. The
1 Annex B was submitted in 1989 and production commenced in
4 September 1990.
The development has been made commercially viable by using a
21/17a Shell 21/18a Shell 21/19 Shell single slimline steel jacket. Kittiwake has proved to be one of the most
KITTIWAKE cost effective field developments in the North Sea, and reached a peak
3 1
2,2a of 33000 b/d in 1992. It has since been in decline, with output expected
6
4 to cease by the end of the century.
4 The current interests in Block 21/18a in per cent. are as follows:-
3
2 RD/Shell UK Ltd * 50.00
Esso Expl. and Prod UK Ltd 50.00

8 operator *
21/17b Shell
1 7

0 5 km

21/18b Phillips

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Kittiwake field lies near the western edge of a northwestern lobe
of the Central Graben. The field produces from Upper Jurassic Fulmar
Oil Gravity (API) 38.5 sands at a depth of 10000 ft TVDSS and is sourced from the
Gas Oil Ratio (scf/stb) 360 Kimmeridge Clay Formation. The development of structures in the area
Bubble Point Pressure, Pb (psig) 1830 is principally associated with the diapiric movement of Zechstein salt.
Formation Volume Factor at Pi (rb/stb) 1.2 Nearby fields include Forties and Montrose, both of which produce from
Reservoir Pressure, Pi (psig) 6500 the Paleocene. To the south lies the cluster of Gannet fields, which are
at Datum Depth of (ft TVDSS) 10005 productive from Eocene and Jurassic sands.
Reservoir Temperature (F) 228

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Fulmar Formation
Geological Age Upper Jurassic
Porosity Range (per cent.) 10-30
Permeability Range (md) 0.1-2000
Connate Water Saturation (per cent.) 11-70
Oil Water Contact (ft TVDSS) 10450
Depth to Top of Structure (ft TVDSS) 9748

Reserves

Total Oil & NGL Reserves (MMstb) 70


Total Gas Reserves (Bcf) 7
Est. Oil & NGL Production to 31.12.95 (MMstb) 57
Est. Gas Production to 31.12.95 (Bcf) 7
Remaining Oil & NGL Reserves (MMstb) 13
Remaining Gas Reserves (Bcf) 0

Production
FIELD DESCRIPTION
Water Depth (feet) 279
Production Start Date September 1990 The Kittiwake field produces from the Upper Jurassic Fulmar
Peak Production (Oil and NGL) (stb/day) 33,000 Formation sandstones. Non-produceable oil is also present in the
Platform(s) Single slimline jacket. Triassic Skagerrak Formation. The reservoir is sealed by the
Number of Wells - Producers 5 Kimmeridge Clay Formation. Porosities are mainly moderate to good
and permeabilities are mainly good to very good, although poorer
Water injectors 5
values occur in argillaceous reservoir units and where dolomite
Gas injectors
cementation is extensive. The reservoir is overpressured by
Oil Export Offshore loading
approximately 2000 psi and the GOR is 360 scf/stb.
Gas & NGL export Via Fulmar line to St. Fergus
The field is being developed using a single slimline jacket weighing
6000 tonnes, which was put into place in 1990. All wells have been
drilled from the central platform with 5 producing wells: 4 produce from
the eastern part of the reservoir and the fifth from the western area. Five
water injectors are positioned at the edge of the field. There are 6 spare
slots on the platform. Oil is transported by tankers from the Exposed
Location Single Buoy Mooring System (ELSBM), whilst gas and NGLs
are exported via the Fulmar gas pipeline to St. Fergus.
STRUCTURE AND STRATIGRAPHY

The Kittiwake field lies on a structural terrace just to KITTIWAKE

UNITED KINGDOM
the west of the Gannet Fault, the main fault bounding the TOP FULMAR SAND (UNIT 2)
DEPTH STRUCTURE

Kittiwake
western margin of the Central Graben. The domal
structure is elongated in an east-west direction and is 0 1 km
about 6 kilometres long and 2 kilometres wide. The crest (Contours in feet TVDSS)
of the structure is at about 9750 feet TVDSS and oil
extends down to 10450 feet TVDSS.
The main reservoir is the Fulmar Formation which
00
ranges in thickness from 161 feet to 208 feet, being 107
10300
thinner to the east. Oil has also been tested at low rates
0
from the underlying Skagerrak Formation which has 1050 10000
generally poor reservoir properties in this field. 107 10

10
10300 00 90

30
0
The structure is related to/generated by the

0
10300
underlying diapiric movement of Zechstein salt. The 21/18-6 21/18-2A 21/18-4
1100
reservoir is sealed by Kimmeridge Clay Formation 0
mudstones. 00

10
10100 1

10
10

50
30
Thinning of the sandstones results in stratigraphic

0
0
trapping in the western and southern parts of the field. OWC 10450
Base Cretaceous
Erosion Edge
SEDIMENTOLOGY AND DEPOSITIONAL
ENVIRONMENT

The Fulmar sandstones are mainly fine and medium


grained but range from very fine to very coarse and are
locally granular. They are generally heavily bioturbated.
Sharp based graded beds, low-angle cross bedding and
21/18
bivalve fragments are locally present.
(Modified after Glennie K W and Armstrong L A, 1991)
The sands of the Fulmar Formation were deposited in
shoreline to shallow-marine environments by storm
generated currents. The sands were heavily bioturbated
during fair weather periods. Significant variations in grain size sorting and detrital The red sandstones of the Skagerrak Formation are mainly very fine and fine
clay content occur between the reservoir layers within the formation. These may be grained, variably argillaceous, micaceous and contain mudstone clasts. They are
related to the distance from the palaeo-shoreline, with the more argillaceous, finer sharp based, graded beds which are parallel laminated and current rippled and are
grained sandstones being deposited more distally. Eustatic sea-level variations may interpreted as sheetflood deposits. They have formed laterally extensive, sheetlike
have played a dominant role in controlling the transgressive and regressive sand bodies. A semi-arid distal braidplain environment is inferred. The sandstones
sequences. Further variations in reservoir properties between the subunits are are generally well cemented resulting in low reservoir potential.
controlled by the degree of carbonate cementation.

INTERPRETATIVE STRUCTURAL CROSS SECTION

21/18-2A 21/18-4 21/19-1A


Feet W E

2000
Nordland and Hordaland
Groups (undiff.)

4000

Horda Formation
6000

Chalk Group
8000 Rogaland and Montrose Groups

10000

Zechstein Group Cromer Knoll Group


12000

Salt Swell Humber Group


Salt Swell
'Triassic Group' Zechstein Group
14000
0 2 4 km

REPRESENTATIVE WELL SECTION - 21/18-3


DEPTH (feet)

CORE CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 5 25 45 -15

Stacked shelf sandstones probably


() emplaced by storm generated currents.
21/18-3
() ()
()
10200

..... ()
FULMAR FORMATION

()
UPPER JURASSIC
HUMBER GROUP

10250

()

()
10300

()

()
Gl
M Stacked sheetflood sandstones deposited
frac.
'TRIASSIC GROUP'

on a distal braidplain.
SKAGERRAK FM.
10350
TRIASSIC

M
frac.
RESERVOIR GEOLOGY POROSITY-PERMEABILITY CHARACTERISTICS
W

21/18-3
10000

Kittiwake
E

21/18-4

Kimm. Clay
Formation
1000
ation

Humber Group
orm
all F
Valh m.
21/18-2A eC lay F
eridg
Kimm Fm.
'Hot' Clay

Fulmar
ge
erid
imm
ty K
o o l' sil n it 5 100
'C U
3
Unit
4

'Triassic' Group
Unit Unit
2

PERMEABILITY (md.)
Skagerrak
1
Unit
10

Zechstein Gp.
tones
muds
mitic alt
0 c a n d dolo o v e rl ying s
driti tone
Anhy d muds
te a n 1
A nhydri
100 feet

0.1
The Fulmar Formation can be divided into five units based on detrital clay content and
consequent gamma ray response. Unit 1 consists of very argillaceous, mainly very fine
grained sandstones whose log responses are commonly similar to those of the underlying
Skagerrak Formation. Unit 2 consists of the cleanest, relatively coarse grained sandstones
which sharply/erosively overlie Unit 1 in some wells. Units 3,4 and 5 are progressively more 0.01

argillaceous and their tops are picked at sharp changes in gamma ray log response. The 0 10 20 30
thicknesses of the reservoir units show generally small variations between the available
wells. The overall thickness of the Fulmar Formation is uniform (about 200 feet) in Wells Variations in porosity and permeability can be related to facies
21/18-2A, 3 and 4 but it is relatively thin in Well 21/18-4A (161 feet). No significant characteristics (mainly grain size and original detrital clay content)
mudstones were observed in the available cores but relatively fine grained, argillaceous and dolomite cementation. The higher values of porosity (25 to 31
units may hinder vertical communication in the more argillaceous units. per cent.) and permeability (500 to 2000 md) tend to occur in the
cleaner, coarser grained sandstones. However poikilotopic dolomite
cementation may cause severe reductions (down to about 11 per
cent. porosity and less than 10md permeability). Extensive dolomite
cementation is common in Unit 2, occurs at the top of Unit 4 and
locally occurs in other units. The more argillaceous, finer grained
sandstones tend to have moderate porosities and poor or very poor
permeabilities.

FLUID PROPERTIES

The Kittiwake field contains an undersaturated moderately light oil with a gravity of 38.5
degrees API and GOR of 360 scf/stb.

400 1.25

GOR
1.1

300 1.20 B0
0.9
GOR (scf/stb)

B0 (rb/stb)

0.8 RESERVOIR PRESSURE


200 1.15
0 (cp)

0.7 Based on an original pressure of 6500 psig at 10005 feet TVDSS


and assuming a hydrostatic gradient to surface of 0.45 psi/ft, the
0.6
100 1.10 Kittiwake field is overpressured by approximately 2000 psi. .
0.5
0
@ 228 F (from correlation)
0 1.05
9000
0 1000 2000 3000 4000 5000 6000 7000
PRESSURE (psig)
0.32 psi/ft

10000
DEPTH (feet TVDSS)

OWC @ 10450 ft TVDSS

CONTROLS ON RECOVERY 11000

0.45 psi/ft
A moderate to good recovery factor is expected for the Kittiwake field. The porosity and
permeability of the Fulmar sands which constitute the reservoir in the field are generally
good. The sheet like sands are also expected to have good areal continuity. In conjunction
with the favourable mobility ratio, these factors will enhance the efficiency of the waterflood.
An unfavourable factor in this context is the decreasing upwards nature towards the top of 12000
the permeability profile which is likely to promote under-running of oil by water. An overall 5000 6000 7000 8000
recovery factor of the order of 40 per cent. is expected. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Water Depth 279

UNITED KINGDOM
(feet)

Kittiwake
Platform type steel jacket
Function drilling/production/accommodation

Jacket weight 6250


(tonnes)
Total weight 15500
(tonnes)
Accommodation 80

Well slots 16
Wells 5 producers
5 water injectors

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 36000


(Mstb/day)
Gas throughput 6
(MMscf/day)
Oil export 8" x 2 km line to ELSBM
Gas export 4" x 2 km line to connect to
the Fulmar gas line to
St Fergus
(A Shell Photograph)

ELSBM = Exposed Location Single Buoy Mooring system, previously used on Auk
development.

FULL FIELD LIFE ECONOMIC INDICATORS


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

@


Net Present Value 224.57 128.68 87.90 65.90 47.29 24.59 -2.63
Net Present Value (Deflated) 181.55 84.25 43.53 21.82 3.64 -18.22 -43.72
Profit/Inv Ratio 0.83 0.55 0.41 0.32 0.24 0.14 -0.02
Profit/Inv Ratio (Deflated) 0.50 0.27 0.15 0.08 0.01 -0.07 -0.20
NPV/Unit Oil Equiv. 3.17 2.56 2.12 1.80 1.46 0.90 -0.13 PRODUCTION PERFORMANCE
NPV/Unit Oil Equiv. (Deflated) 2.39 1.55 0.97 0.55 0.10 -0.61 -1.93 HISTORICAL AND PROJECTED
Payback Year 1993 35 20
Nominal Rate Of Return % 19.41
Liquid
Real Rate Of Return % 12.45
Gas

@@@


Post Corporation Tax
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Net Present Value 146.34 75.57 45.47 29.25 15.56 -1.09 -20.91
Net Present Value (Deflated) 99.70 28.80 -0.72 -16.39 -29.43 -44.97 -62.75 15
Profit/Inv Ratio 0.54 0.32 0.21 0.14 0.08 -0.01 -0.13 25
Profit/Inv Ratio (Deflated) 0.28 0.09 -0.00 -0.06 -0.11 -0.18 -0.29
NPV/Unit Oil Equiv. 2.07 1.50 1.10 0.80 0.48 -0.04 -1.01
NPV/Unit Oil Equiv. (Deflated) 1.31 0.53 -0.02 -0.41 -0.83 -1.51 -2.77 20
Nominal Rate Of Return % 14.78 10
Real Rate Of Return % 7.92

@@@


15
Earnings Data

Gross Revenue 765.74 544.12 448.68 396.38 351.40 295.15 224.09


Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5
Corporation Tax 78.23 53.11 42.43 36.65 31.73 25.69 18.27
Capital Expenditure 270.00 233.12 214.59 203.47 193.23 179.31 159.36
Operating Costs 271.17 182.32 146.19 127.00 110.88 91.25 67.36 5

Gross Revenue (Deflated) 821.74 587.85 486.58 430.92 382.93 322.75 246.37
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0 0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 81.85 55.45 44.26 38.21 33.07 26.76 19.03 1985 1990 1995 2000
Capital Expenditure (Deflated) 359.86 312.65 288.81 274.46 261.20 243.14 217.14
Operating Costs (Deflated) 280.33 190.95 154.24 134.64 118.09 97.82 72.95 Year

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 33.41 36.21 37.48 38.18 38.79 39.54 40.43 CASH FLOW REPORT
Net Present Value (Deflated) 36.45 38.68 39.66 40.20 40.65 41.19 41.79
NPV/Unit Oil Equiv. 2.58 2.96 3.16 3.29 3.41 3.58 3.84 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Post Corporation Tax MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Net Present Value 12.35 14.54 15.57 16.16 16.69 17.36 18.24 1987 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -14.6 0.0 0.0 0.0
Net Present Value (Deflated) 14.45 16.27 17.11 17.59 18.01 18.55 19.23 1988 0.0 0.0 0.0 65.0 0.0 0.0 0.0 -65.0 -171.8 0.0 0.0 0.0
NPV/Unit Oil Equiv. 0.95 1.19 1.31 1.39 1.47 1.57 1.73 1989 0.0 0.0 0.0 75.0 0.0 0.0 0.0 -75.0 -171.8 0.0 0.0 0.0
1990 23.5 0.0 11.3 60.0 0.0 0.0 0.0 -47.8 -94.0 5.0 0.0 0.0
Earnings Data 1991 118.7 0.0 27.9 35.0 0.0 0.0 0.0 55.8 92.8 28.9 1.0 0.0
1992 115.2 0.0 29.9 25.0 0.0 0.0 0.0 60.3 87.9 29.1 3.9 0.0
Gross Revenue 145.98 137.59 133.05 130.21 127.50 123.68 117.85 1993 128.8 0.0 30.3 5.0 0.0 9.0 9.0 84.5 109.8 31.2 4.6 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1994 125.9 0.0 30.7 0.0 0.0 23.5 23.5 71.7 84.9 33.4 5.2 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 107.6 0.0 28.5 0.0 0.0 24.7 24.7 54.4 58.2 28.0 3.6 0.0
Corporation Tax 21.06 21.67 21.90 22.02 22.10 22.17 22.19 Total To Start Of Discounting ( 1/JAN/1996)
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 619.8 0.0 158.6 270.0 0.0 57.2 57.2 134.0 -18.6 56.8 6.7 0.0
Operating Costs 112.57 101.38 95.58 92.03 88.72 84.14 77.42
1996 69.3 0.0 25.6 0.0 0.0 21.1 21.1 22.6 21.8 17.7 0.0 0.0
Gross Revenue (Deflated) 141.93 133.92 129.59 126.88 124.29 120.63 115.05 1997 47.2 0.0 24.2 0.0 0.0 10.6 10.6 12.3 10.5 11.2 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 29.5 0.0 23.4 0.0 0.0 4.7 4.7 1.4 1.1 6.6 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 22.01 22.42 22.55 22.61 22.64 22.64 22.56 1999 0.0 0.0 39.4 0.0 0.0 -15.4 -15.4 -24.0 -16.3 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 105.47 95.24 89.93 86.68 83.64 79.44 73.26 Total 146.0 0.0 112.6 0.0 0.0 21.1 21.1 12.3 17.1 13.0 0.0 0.0

These cash flows include Kittiwake field only


25b 49/21 Conoco 49/22 Conoco 49/23 SUMMARY
Amoco
The Leman field is located in the UK sector of the Southern North
1 Sea approximately 50 km off Bacton on the UK coast. The field was
discovered in April 1966 with Well 49/26-1 and after further appraisal in
30 49/26 Shell 49/27 Amoco 49/28 Arco Block 49/26 it was shown to extend into Block 49/27 with Well 49/27-1.
Phill. Subsequent appraisal has shown the field extends into Blocks 49/28,
4 53/1a and 53/2. The west of the field in Block 49/26 is operated by Shell
4 and the other blocks, referred to as the East Leman Unit (ELU) are
G 2 8 operated by Amoco. Production began in July 1968 from the Shell/Esso
5 26 side and one year later from the ELU. Development of the field has
C BURE involved some 33 platforms.
A
F
BT/BK
The Leman field is not unitised. In effect, the revenues which result
1 17 from production from the part of the field in each block accrue to the
B E group which has interests in the block.
A 3 The current interests in the Leman field in per cent. are:
E
14 B
3 1 F G BLOCKS 49/26 (49.72%)
4 1 Shell UK Ltd.* 50.00
J C
LEMAN Esso Expl. and Prod. UK Ltd. 50.00
D 2 D 2
H
25 EAST LEMAN UNIT (50.28%)
5a 53/1a Mobil 3c 3a Amoco (UK) Petroleum Ltd 47.00
Phill. CADOR 1 Ham. Amo.
2
British Gas plc 11.00
7
6 Amerada Hess Ltd. 21.75
CAMELOT 8 3 Enterprise Oil plc. 14.40
7 CAMELOT
NORTH 1 10 Mobil North Sea Ltd. 4.42
NORTH EAST
6 4
5 Arco British Ltd. 0.80
5b 53/1b Mobil 4 0 5 km
British Sun Oil Company Ltd. 0.42
Mob. 3 11 8 Deminex UK Oil & Gas Ltd. 0.20
9
53/2 Mobil
operator *

note - all percentages are rounded to two decimal places.

LOCAL SETTING

The Leman field is located in the southern part of the Southern North
Sea Basin, on the Sole Pit axis of inversion.
Gas is found in Rotliegendes Group sandstones located in the main
RESERVOIR CHARACTERISTICS aeolian dune belt. The reservoir section comprises predominantly
aeolian sandstones with only minor fluvial sediments in the basal part of
Fluid Properties the sequence.
Nearby accumulations are generally Rotliegendes sandstone
Gas Gravity S.G. (air =1) 0.585 reservoirs, although the Hewett field and its satellites also produce from
Condensate Gas Ratio (bbl/MMscf) 0.7 Triassic sandstones and Zechstein dolomites.
Gas Expansion Factor (vol/vol) 212 The reservoir quality of the Rotliegendes in this area is quite
Reservoir Pressure Pi (psig) 3020 variable. Poor to moderate quality sandstones are found in the Leman
at Datum Depth of (ft TVDSS) 6700 field with better quality found in both the Thames complex located to the
Reservoir Temperature (F) 125 east and the Hewett area to the west. Vulcan to the northwest, also lying
on the Sole Pit axis of inversion has poor reservoir quality.
Rock Properties

Rock Type Sandstone


Stratigraphic Unit Rotliegendes Group
Geological Age Lower Permian FIELD DESCRIPTION
Porosity Range (per cent.) 8-20
Permeability Range (md) 0.1-100 The Leman field is a large anticline approximately 30 km by 13 km
Connate Water Saturation (per cent.) 30-45 in extent. The main axis of the anticline is from the northwest to
Gas Water Contact (ft TVDSS) 6700 (approx.) southeast and the structure is highly faulted in the same direction. The
Depth to Top of Structure (ft TVDSS) 5900 (approx.) reservoir comprises sandstones of the Rotliegendes, Lower Leman
Sandstone Formation which is between 600 and 900 feet thick. The
Reserves reservoir section can be typically split into three units: a lower unit of
Leman Camelot mainly wadi deposits, a main middle unit of aeolian sandstones which
Total Gas Reserves (Bcf) 11226 350 contains the bulk of the reserves and an upper reworked unit. This is
Total NGL Reserves (MMstb) 8 overlain by the Kupfershiefer and Zechstein evaporites which form the
Est. Gas Production to 31.12.95 (Bcf) 9906 154 seal to the reservoir. Porosities of the reservoir sandstones are
Est. NGL Production to 31.12.95 (MMstb) 7 moderate to good and permeabilities are moderate to poor.
Remaining Gas Reserves (Bcf) 1320 196 A dry gas with a relatively low condensate gas ratio was initially
Remaining NGL Reserves (MMstb) 1 found to be normally pressured. The gas is almost completely underlain
by water with a contact originally at 6700 feet subsea.
Production Production began in 1968 and to date approximately 88 per cent. of
the reserves have been produced. Field development has involved a
Water Depth (feet) 60-130 total of 33 platforms,with a major compression programme (started in
Production Start Date Shell/Esso July 1968 the mid seventies and still continuing) resulting in maintained production
East Leman July 1969 levels.
Peak Gas Production (yrly average) (MMscf/day) 1530 Plans by Amoco to install two more platforms in the mid nineties
Achieved in 1977 have been shelved and instead a major demanning exercise has been
started. Shell's central compression complex is being refurbished and
Platform(s) 33 mainly
processing from at least six of the Shell platforms is being transferred to
steel piled jackets
that centre. It is anticipated that this will result in considerable savings
Number of Wells 181
both in terms of manpower and maintenance.
Gas and NGL Export three 30" pipelines
Camelot to the south is made up of five fields and has been
to Bacton Shore terminal
developed on a phased basis with first gas production commencing in
October 1989 via an unmanned platform tied back to Leman. The
second phase involved the exploitation of Northeast Camelot which was
developed by a separate satellite platform and came onstream in
December 1992 with Cador following in 1993, by use of extended reach
drilling. The final stage of development involves the south east area,
where output is anticipated in 1997. Gas from Camelot is exported via
12.75" pipeline to the East Leman platform complex.
STRUCTURE AND STRATIGRAPHY

The Leman gas field is located in a high relief,

UNITED KINGDOM
49/26 49/27
large northwest to southeast trending faulted anticline
6800 700
0
LEMAN in the Anglo-Dutch sub basin. It comprises a gas
TOP ROTLIEGENDES accumulation in the Lower Permian, Rotliegendes

Leman
4
660
0 STRUCTURE Group, Leman Sandstone Formation which is
4 2
(Contours in feet) encountered at a depth of approximately 5900 feet
TVDSS at the crest of the structure. The gas-water

65
5
63 contact is at approximately 6700 feet TVDSS and the

00
63 00
00 61
00 reservoir is 600 to 900 feet thick. The maximum gross
gas column is 800 feet.

65
00

17
The Leman Bank structure is 13 km wide and 30
km long. The entire area is faulted, faults being less
59
00
62 0
common in the northwestern area.The principal
0 6 40 0
60 00 3 orientation of the faults is broadly west-northwest to
61 00 east-southeast, although minor north-south cross
14
3 faults are also recognised. Faulting has generated

630

65 0
64

00
horst and graben structures and faults are both

0
61

0
00
65 00

66
sealing and non sealing. Sealing faults are a barrier to

0 0
65
650 4

00
0 1
horizontal gas migration. The reservoir is sealed by

64
00
1500 feet of Zechstein evaporites.
70 65 63 00
00 00
64
00

2
0 5 km

(After Van Veen, 1975)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT INTERPRETATIVE STRUCTURAL CROSS SECTION

The Leman Sandstone Formation which forms the reservoir of the field
comprises a sequence of alluvial plain sandstones, mudstones and 49/26-25 49/27-3
conglomerates deposited in a hot semi-arid desert setting. The basin was
Feet SW NE
bounded by the London Brabant Massif in the south and southwest, by the 0
mid North Sea and Ringkobing-Fyn highs in the north and by an area of TERTIARY
Pennine uplift in the west. The sequence comprises predominantly well CRETACEOUS
JURASSIC
sorted, clean aeolian dune sandstones, with subordinate less well sorted- 2000
locally argillaceous interdune and fluvial sands. The sequence comprises TRIASSIC

three lithostratigraphic units, recognised on the basis of facies.


The basal member comprises fluvial and aeolian sediments which 4000
infilled local topographic hollows in the top Carboniferous strata. These
are interpreted to have been deposited in wadis cut into the underlying Zechstein Group
Carboniferous rocks. 6000
The middle unit consists of dune bedded sandstones. Individual dune
units (which are usually <100 feet thick) typically contain a thin basal part Rotliegendes Group

of horizontally bedded sandstone, a thick middle part of cross-bedded 8000 CARBONIFEROUS


sandstone and an upper part of structureless, very porous sandstone.
These units are interpreted to represent stacked aeolian dunes comprising
basal reworked dune deposits and upper slumped and reworked dune 10000
sands. 0 1 2 3 km

The uppermost unit of the Leman sandstone is relatively thin and


comprises grey cemented and structureless sandstones interpreted to
have formed by reworking of pre-existing sediments during flooding of the
basin by the Zechstein sea ('Weissliegend').

REPRESENTATIVE WELL SECTION - 49/26-25

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Marine reworked aeolian dunes.


Geometry
Sheet geometry .
and K
Moderate porosity ,very poor to moderate
6500

permeability.

Stacked aeolian dunes.

Geometry
Laterally extensive sheet geometry.
49/26-25
LEMAN SANDSTONE FORMATION

and K
generally moderate but locally poor in low
ROTLIEGENDES GROUP

angle dune base sandstones. K generally


moderate to good but locally poor to very
LOWER PERMIAN

poor in low angle dune base sandstones.


6600
6700
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000
M 49/26-2
M Marine Reworked Member; cemented sandstones
A Aeolian Sandstone Member; stacked aeolian 49/28-1 M
dune sandstones

Leman
B Basal Member ; predominantly fluvial conglomerates,
sandstones and mudstones.
1000
A
A
M 49/27-C1

100
B

49/26-25

PERMEABILITY (md.)
B
A
M
0 10

100

200 feet
A
1

0.1
B

Correlation of the three-fold lithostratigraphic subdivision defined above (Basal, Aeolian


and Marine Members) is difficult as the unit boundaries are transitional. However, each unit
displays overall sheet-like geometry with internal geometries varying as follows. 0.01
The sandstones and conglomerates of the Basal Member display laterally restricted 0 10 20 30
lenticular geometries. Interbedded mudstones are likely to be laterally impersistent. In POROSITY (per cent.)
contrast, the sandstones of the Aeolian and Marine Members display laterally extensive
sheet-like geometries.
Porosity values are poor to good, typically 8 - 20 per cent.
The Leman Sandstone as a whole varies in thickness from 555 to 930 feet, and is
Permeability values range from very poor to good, showing a wide
thickest along the crest of the structure. The Basal Member increases in thickness (up to
spread, but with most of the values in the range 0.1 - 100 md. Trends
299 feet) towards the northwest of the field, its thickness being controlled by the topography
in porosity and permeability are controlled by variations in grain size,
of the underlying Carboniferous unconformity surface. The Aeolian Member is generally 450
sorting and detrital clay content, and hence facies distribution. Well
to 650 feet thick and is thickest along the crest of the Leman structure. The Marine Member
sorted aeolian dune sands show the best reservoir quality.
is generally less than 50 feet thick but reaches thicknesses of up to 120 feet in places. Its
Preferential cementation of less well sorted and locally argillaceous
thickness variations may be due to the presence of relict dune relief at the time of the
fluvial and dune bottom set sandstones accentuates this effect.
Zechstein marine incursion.
The development of fibrous illite and enhanced compaction due
to deep palaeo-burial have reduced porosity and permeability
overall, relative to texturally similar sandstones away from the Sole
Pit and axis of inversion.

FLUID PROPERTIES

The Leman field contains a dry gas with a producing condensate gas ratio of
approximately 0.7 bbl/MMscf. The reported data indicate no variation in gas composition
across the field.
A reported separator gas composition is listed below.
RESERVOIR PRESSURE

At initial reservoir pressure the Leman field was normally


COMPOSITION 1.10
(mol. %) pressured with an average gradient to surface of 0.45 psi/ft

CO2 0.04
GAS DEVIATION FACTOR Z

N2 1.26
H2S - 6000
1.00
He 0.02
C1 95.05
C2 2.86
C3 0.49
C4 0.17
C5 0.90 Zi = 0.86
0.05
C6 0.02
DEPTH (feet TVDSS)

C7+ 0.04 0.065 psi/ft


S.G. (AIR=1.0) 0.59
C.V. (Btu/scf) 1033
@ 125F (from correlation)
0.80 6500
0 1000 2000 3000 4000 5000

PRESSURE (psig)

GWC @ -6700 ft TVDSS

7000
CONTROLS ON RECOVERY
2900 2950 3000 3050 3100

The recovery factor is expected to be moderately good (some 85 per cent.) INITIAL RESERVOIR PRESSURE (psig)

a simple sheet-like reservoir sand geometry with no vertical permeability barriers.


limited expected water influx from the aquifer due to reservoir size and faulting.
predominantly poor and moderate permeabilities in aeolian dune sandstones reduced
by fibrous illite development and deep burial induced compaction; this results in large
pressure gradients in the reservoir.
a large number of production wells.
compression facilities to achieve low abandonment pressure.
FACILITIES SPECIFICATIONS

BLOCK 49/27 BLOCK 49/26

UNITED KINGDOM
PLATFORMS PLATFORMS

Water Depth 110 62-131

Leman
(feet)
Platform Complexes 9 8
Platforms per Complex 1-5 1-4
Number of Platforms 18 15
Platform Type steel piled jackets steel piled jackets
and jackup platforms
Jacket Weights 251-960 205-1220
(tonnes)
Topside Weights 616-4160 100-5000
(tonnes)
Accommodation 125 142

Well 92 123
Well Slots 90 91

PROCESSING AND EXPORT SPECIFICATIONS

y
Gas Throughput 900 900
(MMscf/day)
Peak Capacity 2700
(MMscf/day)
Gas Export 3 x 30" x 35 km pipelines to Bacton

PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED

5 1600
Liquid

Gas

yyyy
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


4
1200
(A Shell Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS 800

yyyy
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
2
Pre Corporation Tax

Net Present Value 2,510.17 1,012.17 609.11 439.00 317.67 194.59 78.64
Net Present Value (Deflated) 5,300.79 2,220.37 1,292.42 870.93 553.97 213.68 -130.31 400
Profit/Inv Ratio 2.06 2.06 1.86 1.67 1.45 1.10 0.56 1
Profit/Inv Ratio (Deflated) 1.74 1.15 0.80 0.59 0.40 0.17 -0.12
NPV/Unit Oil Equiv. 1.34 1.14 0.99 0.88 0.78 0.63 0.38
NPV/Unit Oil Equiv. (Deflated) 0.88 0.62 0.47 0.37 0.27 0.13 -0.11

Payback Year 1974 0 0


Nominal Rate Of Return % 27.58
Real Rate Of Return % 17.73 1965 1975 1985 1995 2005 2015

Post Corporation Tax Year

Net Present Value 1,291.23 533.05 315.36 222.17 155.17 86.57 20.92
Net Present Value (Deflated) 2,828.18 1,090.80 550.13 300.72 111.05 -95.09 -306.63
Profit/Inv Ratio 1.06 1.08 0.96 0.84 0.71 0.49 0.15
Profit/Inv Ratio (Deflated) 0.93 0.57 0.34 0.20 0.08 -0.08 -0.28
NPV/Unit Oil Equiv. 0.69 0.60 0.51 0.45 0.38 0.28 0.10 CASH FLOW REPORT
NPV/Unit Oil Equiv. (Deflated) 0.47 0.30 0.20 0.13 0.05 -0.06 -0.26
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Nominal Rate Of Return % 22.66 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Real Rate Of Return % 13.48 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Earnings Data 1966 0.0 0.0 0.0 35.0 0.0 0.0 0.0 -35.0 -3,167.3 0.0 0.0 0.0
1967 0.0 0.0 0.0 40.0 0.0 0.0 0.0 -40.0 -3,230.8 0.0 0.0 0.0
Gross Revenue 6,389.49 2,224.12 1,323.44 972.75 733.87 501.40 290.68 1968 6.0 0.0 4.0 40.0 0.0 0.0 0.0 -38.0 -2,765.8 0.1 144.1 0.0
Royalty 517.44 196.46 118.65 87.17 65.32 43.78 24.18 1969 12.2 0.0 7.0 30.0 0.0 0.0 0.0 -24.8 -1,600.7 0.2 280.2 0.0
Petroleum Revenue Tax 39.53 8.98 3.90 2.28 1.35 0.63 0.19 1970 34.9 0.0 7.0 25.0 0.0 0.0 0.0 2.9 163.6 0.5 755.5 0.0
Corporation Tax 1,106.41 466.89 290.36 215.36 161.85 107.83 57.69 1971 61.4 2.1 9.0 15.0 0.0 0.0 2.1 35.3 1,748.6 0.9 1,250.9 0.0
Capital Expenditure 1,216.98 492.11 327.22 262.94 219.47 177.59 139.66 1972 68.0 5.2 10.0 5.0 0.0 0.0 5.2 47.8 1,995.9 0.9 1,270.9 0.0
Operating Costs 2,105.37 514.39 264.57 181.36 130.06 84.79 48.02 1973 73.1 5.9 11.3 5.0 0.0 0.0 5.9 50.9 1,842.1 0.9 1,270.9 0.0
1974 95.3 7.6 12.7 0.0 0.0 0.0 7.6 75.0 2,294.1 1.1 1,521.0 0.0
Gross Revenue (Deflated) 12,098.20 5,652.53 3,903.67 3,131.81 2,556.48 1,937.04 1,290.91 1975 106.7 9.8 14.0 0.0 0.0 36.1 45.9 46.8 1,224.2 1.0 1,461.0 0.0
Royalty (Deflated) 1,037.10 478.81 321.52 251.96 200.39 145.56 90.02 1976 137.0 12.8 16.0 0.0 0.0 42.7 55.5 65.5 1,277.8 1.1 1,511.0 0.0
Petroleum Revenue Tax (Deflated) 39.12 9.20 4.06 2.40 1.44 0.68 0.21 1977 162.1 16.8 18.0 0.0 0.0 55.1 71.8 72.3 1,120.2 1.1 1,531.0 0.0
Corporation Tax (Deflated) 2,472.61 1,129.57 742.29 570.21 442.91 308.77 176.32 1978 174.5 19.3 19.5 0.0 0.0 65.4 84.6 70.4 870.5 1.0 1,421.0 0.0
Capital Expenditure (Deflated) 3,052.01 1,927.80 1,617.01 1,476.81 1,369.13 1,246.70 1,102.50 1979 179.0 20.4 21.0 0.0 0.0 70.2 90.6 67.4 712.2 0.9 1,340.9 0.0
Operating Costs (Deflated) 2,669.17 1,016.37 668.66 529.71 431.56 330.42 228.49 1980 138.2 18.1 24.0 5.0 0.0 71.4 89.4 19.8 170.9 0.6 910.6 0.0
1981 231.8 21.0 30.0 10.0 0.0 48.8 69.8 122.0 827.7 0.9 1,290.9 0.0
1982 228.7 26.3 30.0 15.0 0.0 85.9 112.2 71.5 401.0 0.8 1,140.8 0.0
1983 254.9 27.6 30.0 5.0 0.0 82.0 109.6 110.3 527.8 0.8 1,170.8 0.0
1984 204.5 25.8 35.0 20.0 0.0 96.3 122.1 27.4 116.2 0.6 897.0 0.0
1985 253.1 24.9 40.0 70.0 0.0 60.6 85.5 57.6 215.1 0.7 1,060.7 0.0
1986 246.6 25.9 45.0 250.0 0.0 60.0 85.8 -134.2 -437.8 0.7 980.7 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1987 275.7 24.5 45.0 60.0 0.0 33.1 57.6 113.1 330.3 0.7 1,060.7 0.0
1988 245.9 23.8 45.0 50.0 0.0 49.2 73.0 77.9 205.9 0.6 910.6 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1989 212.3 19.4 50.0 31.5 0.6 41.5 61.4 69.4 158.9 0.5 682.5 3.8
1990 272.7 20.4 55.0 165.0 2.9 31.9 55.1 -2.4 -4.8 0.6 796.5 11.8
Pre Corporation Tax 1991 248.3 20.9 60.0 50.0 3.1 37.6 61.6 76.7 127.5 0.5 687.8 10.5
1992 214.6 16.8 63.0 50.0 3.8 30.8 51.4 50.1 73.0 0.4 568.0 12.8
Net Present Value 361.07 399.52 392.94 383.09 370.95 350.74 316.65 1993 162.3 11.4 63.0 50.0 2.9 21.6 35.8 13.4 17.4 0.3 422.0 8.7
Net Present Value (Deflated) 406.40 395.03 376.07 361.77 347.11 325.47 292.24 1994 127.2 6.6 63.0 70.0 1.8 8.4 16.8 -22.6 -26.8 0.2 342.0 10.0
NPV/Unit Oil Equiv. 1.63 2.36 2.66 2.82 2.95 3.11 3.28 1995 175.3 8.7 60.0 30.0 2.7 -2.6 8.8 76.5 81.9 0.3 460.0 12.5
Total To Start Of Discounting ( 1/JAN/1996)
Post Corporation Tax 4,602.7 421.9 887.5 1,126.5 17.8 1,026.1 1,465.7 1,123.0 5,268.7 6.9 9,906.1 25.6

Net Present Value 168.22 251.33 264.26 265.24 262.49 254.22 235.60 1996 167.1 11.9 58.0 0.0 2.9 14.6 29.4 79.7 76.7 0.3 420.4 12.5
Net Present Value (Deflated) 247.78 270.77 267.01 261.21 253.96 241.80 221.01 1997 159.6 11.5 60.3 36.4 3.1 17.2 31.8 31.1 26.7 0.3 384.2 12.5
NPV/Unit Oil Equiv. 0.76 1.49 1.79 1.95 2.09 2.25 2.44 1998 152.2 11.6 43.3 0.0 3.2 14.7 29.4 79.4 60.6 0.2 351.1 12.5
1999 144.0 12.5 45.0 0.0 2.8 20.7 35.9 63.1 42.8 0.2 320.8 10.3
Earnings Data 2000 136.5 11.9 46.8 0.0 2.3 20.2 34.5 55.2 33.3 0.2 293.2 8.7
2001 129.3 11.4 48.7 0.0 1.9 19.3 32.7 47.9 25.8 0.2 267.9 7.2
Gross Revenue 1,786.77 1,327.92 1,139.36 1,038.10 952.02 845.32 711.06 2002 122.7 11.0 50.7 0.0 1.6 18.1 30.6 41.4 19.8 0.2 244.9 6.0
Royalty 95.57 84.02 76.68 72.03 67.66 61.70 53.32 2003 116.4 10.5 52.8 0.0 1.3 16.5 28.3 35.3 15.0 0.2 223.8 5.0
Petroleum Revenue Tax 21.77 17.92 16.16 15.15 14.25 13.08 11.50 2004 110.0 9.8 54.9 0.0 1.0 14.8 25.6 29.5 11.2 0.1 204.5 4.2
Corporation Tax 192.85 148.19 128.67 117.85 108.45 96.52 81.05 2005 104.4 9.0 57.1 0.0 0.8 13.0 22.7 24.5 8.3 0.1 186.9 3.5
Capital Expenditure 90.48 64.69 54.75 49.62 45.40 40.36 34.33 2006 99.0 8.3 59.4 0.0 0.5 11.2 20.0 19.6 5.9 0.1 170.8 2.8
Operating Costs 1,217.87 761.77 598.84 518.22 453.76 379.44 295.26 2007 94.0 7.3 61.8 54.1 0.3 9.3 16.9 -38.8 -10.4 0.1 156.1 2.3
2008 89.2 5.6 64.3 0.0 0.2 3.2 9.0 15.9 3.8 0.1 142.6 2.0
Gross Revenue (Deflated) 1,428.41 1,096.43 956.89 880.93 815.68 733.79 628.80 2009 83.2 4.8 66.9 0.0 0.0 2.5 7.3 9.0 1.9 0.1 130.3 0.0
Royalty (Deflated) 88.15 75.26 68.26 64.03 60.15 54.95 47.76 2010 79.2 4.0 69.6 0.0 0.0 1.0 5.0 4.5 0.9 0.1 119.1 0.0
Petroleum Revenue Tax (Deflated) 18.94 15.83 14.39 13.55 12.81 11.83 10.49 Remain
Corporation Tax (Deflated) 158.62 124.26 109.06 100.57 93.15 83.67 71.23 2011 0.0 -45.4 378.2 0.0 0.0 -3.56 -48.96 -329.24 -55.17 0.0 0.0 0.0
Capital Expenditure (Deflated) 70.00 52.50 45.63 42.03 39.04 35.40 30.93
Operating Costs (Deflated) 844.92 557.81 452.54 399.54 356.58 306.15 247.37 Total 1,786.8 95.6 1,217.9 90.5 21.8 192.85 310.19 168.22 267.01 0.9 1,320.1 32.7

These cash flows include Leman field only, plus Camelot tariff income
23/16d 7/7 Statoil 7/8 SUMMARY
4
3 Hess Con .
3
5
MUNGO The Lomond gas condensate field is located in Quadrant 23 some
5
260 km due east of Aberdeen in the UK Sector of the Northern North
6 2 Sea. Lomond was discovered in 1972 by Well 23/21-1 which
encountered gas condensate in sandstones of Paleocene age.
Further gas was encountered in 1984, but it was not until 1987 that
gas condensate was discovered by Well 23/21-4 on the north eastern
22/20 23/17 flank of the salt induced domal structure.
BP 23/16a BP Amerada
Development involves a single integrated steel platform installed in
22/25b 23/21 Amoco 23/22b Agip
Shell June 1992, tied via Everest to 'CATS' (Central Area Transmission
System). Production commenced in 1993, upon commissioning in
Teesside of a new power station, which is contracted to buy all gas
1 output from both Lomond and Everest.
1 The current interests in the Lomond field in per cent. are:-
22/25a
BP LOMOND
3,4
2 Amoco UK Exploration Co. * 22.22
British Gas plc 50.00
Amerada Hess Ltd 16.67
BG North Sea Holdings Ltd 11.11
7/10 7/10d
4 Amoco Am.
operator *

0 4 km
23/22a BP
MEDAN 2
3

LOCAL SETTING
RESERVOIR CHARACTERISTICS
The Lomond gas condensate field is located close to the UK-
Fluid Properties Norwegian border on the eastern side of the Central Graben. The
nearest hydrocarbon accumulations are the Mungo and Monan fields
Gas Gravity S.G. (air =1) 0.66 10-15 km to the northwest and the Pierce and Medan discoveries 10-15
Condensate/Gas Ratio (bbl/MMscf) 55 km to the south. To the west, at a distance of between 30 and 45 km lie
Gas Expansion Factor (scf/rcf) 240 the Marnock gas condensate discovery and the Montrose and Arbroath
Dew Point Pressure (psig) oil fields, all of which contain hydrocarbons in sandstones of Paleocene
Original Reservoir Pressure, Pi (psig) 4715 age. The Erskine HP/HT gas condensate discovery lies 23 km to the
At Datum Depth of (ft TVDSS) 9180 south. Erskine will be developed by a not normally manned platform
Reservoir Temperature (F) 236 controlled from Lomond. Gas and condensate from Erskine will be
processed on the Lomond platform
Rock Properties Everest is a gas condensate field which lies approximately 50 km
north-northwest of Lomond.
Rock Type Sandstone
Stratigraphic Unit Forties Formation
Geological Age Paleocene
Porosity Range (per cent.) 15-25
Permeability Range (md) 0.1-100
Connate Water Saturation (per cent.) 30-50
Hydrocarbon Water Contact (ft TVDSS) 8990-9450
Depth to Top of Structure (ft TVDSS) 8250

Reserves

Total Reserves (Gas, NGL) (Bcf, MMbbl) 450, 14


Est. Production to 31.12.1995 (Gas, NGL) (Bcf, MMbbl) 95,3
Remaining Reserves (Gas, NGL) (Bcf, MMbbl) 355,11

Production

Water depth (feet) 285


Production Start Date 1993
Peak Production (MMscf/day) 120 FIELD DESCRIPTION
Platform(s) 1
Number of Wells - Producers 14 The Lomond field is a domal structure underlain by a salt pillar. The
Water injectors reservoir comprises Forties Formation sandstones of Paleocene age
Gas injectors with reservoir porosity being moderate and permeability varying from
Oil and NGL Export Forties via North Everest riser poor to moderate. Average thickness of the Forties Formation is over
Gas Export Teesside via CATS 600 feet.
The reservoir fluid is a gas condensate with a condensate/gas ratio
of approximately 55 bbl/MMscf. Variable gas water contacts exist,
probably associated with different fault blocks in the field.
It is intended that development of the field will be by simple pressure
depletion with minor gas recycling towards the end of the field life. Pre-
drilling of wells enabled rapid production build up once the platform was
installed.
Lomond gas contains little CO2 and virtually no H2S and is intended
for use in a new power station at Teesside which uses 270 MMscf/day
gas from both Lomond and Everest. Production rates from the platforms
are held in check, depending on the power station requirements.
STRATIGRAPHY AND STRUCTURE

The main reservoir in the Lomond field is the gas bearing, Upper Paleocene, size within Paleocene sandstones. It is underlain by a salt diapir at depth, close to

UNITED KINGDOM
Forties Formation. Gas was also tested from the Chalk Group and minor oil shows the eastern margin of the Central Graben. The reservoir is sealed by the overlying
were recorded in Triassic sandstones. The structure is a culmination of moderate mudstones of the Rogaland Group.

Lomond
INTERPRETATIVE STRUCTURAL CROSS SECTION

23/21-1 23/22-1
Feet
W E

2000

4000 TERTIARY

6000 Top Horda Formation


Top Balder Formation
8000

10000
TRIASSIC JURASSIC
12000 Chalk Group
oll Gr oup
14000 Cromer Kn Salt diapir at depth

0 1 2 3 4 5 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The sediments of the Forties Formation were deposited mainly by turbidity based, fine grained sandstones and laminated mudstones are interpreted as
currents on a submarine ramp during the Late Paleocene. The main facies relatively proximal classical turbidites. Thin, laterally impersistent mudstones are
associations comprise the following: locally present.
The majority of the reservoir section comprises generally massive sandstones, Sections dominated by laminated mudstones containing numerous graded silt
which are poorly sorted, with scattered glauconite grains and locally common and very fine sandstone beds are recognised. These sediments are interpreted
mudclasts. These are interpreted as high density turbidite sandstones deposited as relatively distal classical turbidites and inter-turbidite mudstones. Units of
in broad, shallow channels. Units characterised by interbedded sharp greenish grey, bioturbated mudstones represent hemipelagic deposits.

REPRESENTATIVE WELL SECTION - 23/21-1

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY UNIT NEUTRON


VC

VF

(PERCENT) (md) (Limestone units)


M
C

B C P 40 0 0.1 10000 45 -15


23/21-1 Non-reservoir. Laterally extensive
mudstones.
8400
ROGALAND GROUP
SELE FORMATION

Thickly bedded high density, turbidite


sandstones and thinly bedded, low density
turbidite sandstones with minor, thin inter-
turbidite mudstones.
Geometry
Individual sand units with ribbon geometry
are amalgamated to form broad, elongate
8450

to lobate sandbodies interbedded with


thinner, more sheetlike sandbodies. Thin
mudstones are unlikely to be laterally
extensive.
and K
moderate to good and K poor to
moderate in thickly bedded sandstones.
8500

and K generally poor in thinly bedded


UPPER PALEOCENE

sandstones. Mudstones will form vertical


permeability baffles.
FORTIES FORMATION
MONTROSE GROUP

8550
8600
8650
RESERVOIR GEOLOGY POROSITY-PERMEABILITY CHARACTERISTICS
23/21-1
10000

Lomond 100

1000
200 feet

23/21-2

100
23/22-1

Sele Balder
Fm. Fm.
Rogaland
Group

PERMEABILITY (md.)
10

?Andrew-Forties Formations

Montrose Group
1

0.1

Ekofisk Maureen
Fm. Fm.
Chalk
Gp.
0.01
0 10 20 30

POROSITY (per cent.)

The Forties Formation in the Lomond field forms a thick sheetlike sediment body, Porosities in the Forties Formation in the Lomond field are
internally composed of elongate, lenticular channel sandbodies and thinner, more sheetlike, generally moderate, typically ranging from 18 to 20 per cent.
inter-channel sandstones interbedded with thin, generally laterally impersistent mudstones. Permeabilities are commonly poor to moderate, ranging from 0.1 to
The channel sandstones have the best reservoir quality. These sandstones dominate the 100 md. Trends in porosity and permeability values are controlled by
sequence in the centre of the field probably forming a northwest-southeast trending band, primary textural characteristics and hence by facies. The higher
passing laterally into units of poorer reservoir quality, inter-channel turbidite sandstones and porosity values are found in the coarser grained, clean channel fill
thin mudstones. sandstones.

FLUID PROPERTIES RESERVOIR PRESSURE

The Lomond field contains a gas condensate with a condensate gas ratio of 55 The Lomond field is overpressured by about 500 psi relative to a
bbls/MMscf, underlain by an oil rim in the west of the field. hydrostatic pressure gradient of 0.45 psi/ft. It is divided into at least
two separate pressure regimes.

1.05

8800
GAS DEVIATION FACTOR Z

Zi = 0.992
1.00
0.085 psi/ft
9000 GDT @ 8990 ft TVDSS

0.95
DEPTH (feet TVDSS)

9200 0.45 psi/ft 0.085 psi/ft

@ 236 F
0.90
0 1000 2000 3000 4000 5000 GWC @ 9300 ft TVDSS

PRESSURE (psig) 0.3 psi/ft


9400

OWC @ 9450 ft TVDSS

9600
4500 4600 4700 4800

INITIAL RESERVOIR PRESSURE (psig)

CONTROLS ON RECOVERY

Recovery of gas and condensate liquids in the Lomond field is expected to be moderate
to good.
The positive factors affecting recovery are the good permeability within the clean
coarser-grained channel fill sands and the small areal extent of the reservoir. It is also
expected that compression facilities will be installed, leading to a low reservoir
abandonment pressure. Recovery is expected to be reduced by the faulted nature and
associated lack of continuity in the reservoir, by the generally poor sand permeability,
especially at the margins of the field, and by the lack of pressure support by an active
aquifer.
FACILITIES SPECIFICATIONS

Water Depth 285

UNITED KINGDOM
(feet)
Platform Type Integrated Steel Platform

Lomond
Function Processing/compression/drilling
Accommodation

Jacket Weights 5200


(tonnes)
Total Weight of Structure 13800
(tonnes)
Accommodation 35
Well Slots Platform 21
Template 7
Wells 14 (planned)

PROCESSING AND EXPORT SPECIFICATIONS

Production throughput :
condensate (bbl/day) 7800
gas (mmscfd) 200

Condensate Export 8" x 57.8 km to North Everest


Riser and on to Forties

Gas Export 20" x 57.8 km to North Everest


Riser and into CATS pipeline to
Teesside

y
(An Amoco Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 20 150


Liquid
Net Present Value 209.37 50.16 -12.09 -43.48 -68.47 -96.51 -125.32
Net Present Value (Deflated) 111.18 -28.74 -81.20 -107.02 -127.18 -149.14 -170.29 Gas

yyyy
Profit/Inv Ratio 0.62 0.16 -0.04 -0.16 -0.25 -0.38 -0.53
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


125
Profit/Inv Ratio (Deflated) 0.29 -0.08 -0.24 -0.33 -0.41 -0.50 -0.62
NPV/Unit Oil Equiv. 2.34 0.87 -0.27 -1.13 -2.05 -3.56 -6.36 15
NPV/Unit Oil Equiv. (Deflated) 1.39 -0.55 -1.94 -2.96 -4.04 -5.78 -8.96

Payback Year 2000 100


Nominal Rate Of Return % 7.33
Real Rate Of Return % 3.72

Post Corporation Tax 10 75

yyyy
Net Present Value 114.03 0.70 -46.03 -70.06 -89.40 -111.27 -133.75
Net Present Value (Deflated) 38.77 -66.46 -107.15 -127.38 -143.23 -160.48 -176.80
Profit/Inv Ratio 0.34 0.00 -0.16 -0.25 -0.33 -0.43 -0.57 50
Profit/Inv Ratio (Deflated) 0.10 -0.19 -0.32 -0.40 -0.46 -0.54 -0.65
NPV/Unit Oil Equiv. 1.27 0.01 -1.02 -1.81 -2.68 -4.10 -6.78 5
NPV/Unit Oil Equiv. (Deflated) 0.48 -1.26 -2.56 -3.52 -4.55 -6.22 -9.30

Nominal Rate Of Return % 5.04 25


Real Rate Of Return % 1.56

Earnings Data
0 0
Gross Revenue 1,285.01 775.31 588.43 494.60 418.87 330.72 230.09
1990 1995 2000 2005 2010
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year
Corporation Tax 95.35 49.46 33.94 26.58 20.93 14.75 8.43
Capital Expenditure 335.00 304.59 288.47 278.49 269.06 255.88 236.17
Operating Costs 740.64 420.55 312.05 259.60 218.28 171.35 119.24

Gross Revenue (Deflated) 1,096.50 679.80 523.52 444.03 379.25 302.99 214.48
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 72.41 37.72 25.95 20.36 16.05 11.34 6.51
Capital Expenditure (Deflated) 385.48 350.94 332.61 321.25 310.52 295.50 273.02
Operating Costs (Deflated) 599.84 357.60 272.11 229.81 195.91 156.63 111.75

CASH FLOW REPORT


ECONOMIC INDICATORS FROM 1/1/1996 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Pre Corporation Tax 1990 0 0 0 10 0 0 0 -10 -19.7 0 0 0


1991 0 0 0 190 0 0 0 -190 -316 0 0 0
Net Present Value 485.46 413.11 374.21 350.57 328.76 299.34 258.09 1992 0 0 0 110 0 0 0 -110 -160.2 0 0 0
Net Present Value (Deflated) 435.08 366.63 331.62 310.71 291.61 266.03 230.43 1993 20.1 0 17.1 20 0 0 0 -17 -22.2 1.1 33 0
NPV/Unit Oil Equiv. 6.88 7.28 7.40 7.44 7.46 7.45 7.38 1994 77.2 0 45.5 5 0 0 0 26.7 31.6 4 126 0
1995 64.5 0 40.2 0 0 0 0 24.3 26 3.6 100 0
Post Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
161.7 0 102.8 335 0 0 0 -276.1 -460.5 3.2 94.5 0
Net Present Value 390.12 346.83 320.35 303.47 287.46 265.21 232.91
Net Present Value (Deflated) 362.67 316.09 290.45 274.65 259.93 239.79 211.00 1996 80.3 0 44.9 0 0 0 0 35.4 34.1 4.3 120 0
NPV/Unit Oil Equiv. 5.53 6.11 6.34 6.44 6.52 6.60 6.66 1997 93.7 0 46.5 0 0 0 0 47.3 40.5 4.2 120 11.9
1998 127.6 0 48.1 0 0 0 0 79.4 60.6 4.1 120 46.1
Earnings Data 1999 132.3 0 49.9 0 0 0 0 82.5 56 4 120 46.1
2000 121.3 0 46.3 0 0 0 0 75 45.3 3.2 99.5 46.1
Gross Revenue 1,123.30 867.22 755.82 694.10 640.44 572.21 483.31 2001 110.1 0 43.1 0 0 21.6 21.6 45.4 24.4 2.6 82.6 43.3
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 100.4 0 40.7 0 0 20.3 20.3 39.4 18.8 2.1 68.5 40.6
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2003 82.6 0 38.8 0 0 18.3 18.3 25.5 10.8 1.6 56.8 30.2
Corporation Tax 95.35 66.29 53.86 47.09 41.31 34.13 25.18 2004 68.2 0 36.1 0 0 13.4 13.4 18.7 7.1 1.3 47.1 22.3
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 57.5 0 33.7 0 0 9.8 9.8 13.9 4.7 1.1 39.1 17.1
Operating Costs 637.84 454.11 381.62 343.54 311.67 272.87 225.23 2006 46.7 0 31.6 0 0 7.3 7.3 7.8 2.4 0.8 32.4 12.1
2007 39.6 0 28.4 0 0 4.6 4.6 6.7 1.8 0.7 26.9 9.4
Gross Revenue (Deflated) 927.19 731.08 644.32 595.78 553.26 498.74 426.78 2008 33.8 0 24.8 0 0 3.4 3.4 5.7 1.4 0.6 22.3 7.6
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 29.1 0 21.1 0 0 2.7 2.7 5.2 1.1 0.5 18.5 6.2
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 72.41 50.55 41.17 36.06 31.68 26.24 19.44 2010 0 0 103.9 0 0 -6.1 -6.1 -97.8 -18.4 0 0 3.9
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 492.11 364.45 312.70 285.07 261.65 232.71 196.34 Total 1,123.30 0 637.8 0 0 95.3 95.3 390.1 290.4 11.4 355.4 125.2

These cash flows include Lomond field only, plus Erskine tariff income
3/1a Total 3/2 Conoco 3/3 Chevron SUMMARY
0 4 km
The Lyell field is located entirely within Block 3/2 some 480 km
7 11 northeast of Aberdeen in the UK sector of the Northern North Sea. The
3
3/1b Rel. field was discovered in 1975 by Well 3/2-1A which encountered oil in
1 Jurassic sandstones of the Brent Group at a depth of approximately
LYELL 6 11200 feet TVDSS. The field was subsequently appraised with six wells,
1,1A 3 three of which intersected oil bearing reservoir. The field is elongated in
5 a north-south orientation and is some 15 km long and 3 km wide.
N
The Annex B was approved in January 1991 and production
9 2
10
commenced in March 1993. The field has been developed as a satellite
2 2 to the Ninian South platform where all separation and processing takes
3 4 7 9,9A place before export to Sullom Voe via the Ninian pipeline. The
6 8 development is in the form of a subsea tie-back to Ninian and the
1 4
C manifold was installed in May 1992. Gas from Lyell is used to
5,5A supplement the Ninian supplier.
COLUMBA
B NINIAN The current interests in the Lyell field in per cent. are:
8
3/6a Rel. 3/7d Rel. 3/7a 3/8a Ranger 3/8b Lasmo
Chev. 2 Chevron 33.33
Oryx * 66.67
S 1

COLUMBA D 8,8A operator *


2
4 STAFFA
11
6,6A
1 5 1
5 13
3
9
COLUMBA E 10,14
3/6b Amoco 7
3/7b Chevron

RESERVOIR CHARACTERISTICS LOCAL SETTING

The Lyell field is located in Quadrant 3 in the East Shetland Basin


Fluid Properties Area of the North Viking Graben towards the southwestern limit of the
Brent province. The closest fields are Ninian, to which the field is tied
Oil Gravity ( API) 35-38 back some 10 km to the east, Heather some 15 km to the west in
Gas Oil Ratio (scf/stb) 400-800 Quadrant 2 and the Hutton fields some 12 km to the north in Quadrant
Bubble Point Pressure, Pb (psig) 1500-2300 211. All these fields produce from Brent Group sandstones and the
Formation Volume Factor at Pi (rb/stb) Ness - 1.19 sequence seen in the Lyell field is closest to that observed in the Ninian
field.
Etive - 1.38
Broom - 1.22
Oil Compressibility (vol/vol/psi) 11x10-6
Reservoir Pressure, Pi (psig) 7100
At Datum Depth of (ft TVDSS) 11434
Reservoir Temperature (F) 240

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group
Geological Age Middle Jurassic
Porosity Range (per cent.) 14-20
Permeability Range (md) 1-1000
Connate Water Saturation (per cent.) 20-30
Oil Water Contact (ft TVDSS) 11920
Depth to Top of Structure (ft TVDSS) 11200

Reserves

Total Oil Reserves (MMbbl) 35


Est. Oil Production to 31.12.95 (MMbbl) 14
Remaining Oil Reserves (MMbbl) 21 FIELD DESCRIPTION

Production The Lyell field is a complex faulted tilted horst block that shows minor
erosion of the Upper Brent Group formations. The reservoir occurs
Water Depth (feet) 479 within the shallow marine and deltaic sandstones of the Middle Jurassic
Production Start Date March 1993 Brent Group. The three main reservoir horizons, the Broom, Etive and
Peak Oil Production (stb/day) 16000 the Upper Ness Formations are effectively separated by the very tight
micaceous Rannoch Formation and the impermeable Lower Ness
Peak Gas Production (MMscf/d) 10
mudstones. The Tarbert Formation is largely absent and the field is
Platforms subsea manifold
extensively faulted. Porosity is generally moderate and permeability is
Number of Wells Producers 7
variable but poor.
Water Injectors 2
Development of the field has taken place using a subsea manifold as
Oil Export Pipeline to Ninian South and
a satellite to the Ninian field and water injection is being used. The
onwards to Sullom Voe reservoir contains a moderate gravity oil and may exhibit a number of
isolated compartments in terms of both pressure and fluid composition.
To overcome this problem installation of a second manifold has been
considered, although no firm plans have been made as yet. There has
also been a plan put forward using horizontal wells, particularly
exploiting the Lower Brent section. However, no decision has yet been
made as to the viability of this programme.
STRATIGRAPHY AND STRUCTURE

The reservoir sequence in the Lyell field comprises the Middle Jurassic bounded to the east by a north northwest to south southeast trending normal fault.

UNITED KINGDOM
sandstones of the Brent Group. The reservoir section overlies the Lower Jurassic The structure comprises at least five subordinate fault blocks, is extensively faulted
Drake Formation offshore marine mudstones of the Dunlin Group and is overlain by and is dip and fault closed to the west. The thin northern and southern extremities of
the Upper Jurassic marine mudstones of the Humber Group. The Upper Jurassic this elongate structure are also dip and fault closed. The dominant fault orientation

Lyell
sediments are overlain by Cretaceous sediments of the Cromer Knoll and Shetland is north northwest-south southeast with a secondary southwest to northeast fabric.
Groups. The Tarbert Formation is commonly absent due to erosion below the Mid-
Cretaceous unconformity. It is completely absent in the north and east of the field
area.
The Lyell structure comprises a westerly dipping, tilted fault block that is

INTERPRETATIVE STRUCTURAL CROSS SECTION

HEATHER LYELL NINIAN


2/5-3 2/5-4 3/2-1A 3/3-3
Feet W E

6000

8000 UPPER CRETACEOUS

10000

LOWER CRETACEOUS

12000 UPPER JURASSIC

Dunlin Group
14000
Brent Group

16000 0 5 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT


The overlying Ness Formation represents the aggradation of the delta plain and
The Brent Group in the area of the Lyell field consists of a northward prograding comprises a highly heterolithic sequence. The formation includes floodplain and
shallow marine and deltaic complex and is very similar to the Brent sequence of the bay/lagoon mudstones and coals which are interbedded with crevasse splay,
Ninian field. The Broom Formation at the base of the sequence comprises an overall channel margin and channel sandstones. There is extensive wave reworking of the
fining upwards sequence of relatively coarse grained transgressive shallow marine lower Ness intervals and biostratigraphic evidence suggests that the lowermost
sandstones which prograded across the offshore mudstones of the Dunlin Group. intervals in Lyell are lateral equivalents to the Etive Formation in other areas of the
The Broom sediments exhibit a sharp break with the underlying Drake mudstones field. This suggests a diachronous boundary between the Etive and Ness Formation
and develop a slightly micaceous nature at its top. The overlying Rannoch Formation that is poorly understood on the basis of the available data. The upper part of the
comprises finer grained and more micaceous sandstones in a fining upwards Ness Formation, like that in the Ninian field, is dominated by a multi-storey,
sequence which represents the progradation of the lower to middle shoreface. composite channel sandbody with only minor floodplain mudstones. In the Lyell field
Conformably above the Rannoch are the clean delta shoreline sediments of the Etive this sequence is thought to be a distal part of the same channel complex observed
Formation that represent tidally influenced channel/tidal inlet and upper shoreface in Ninian. The Tarbert Formation normally comprises a sequence of transgressive
and foreshore to backshore sandstones. The top of the Etive interval is marked by and shallow marine sandstones. The formation is strongly affected by truncation and
either a thin coal or the basal mudstone of the Ness Formation. is absent in the north and east of the field area.

REPRESENTATIVE WELL SECTION - 3/2-1a


DEPTH (feet)

CORE CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 5 25 45 -15


3/2-1A
Marine mudstones 1 2
Attenuated shore face sequence 3
Delta plain distributary channel
complex with minor saline interdistributary
11350

bays
Geometry
Ribbonlike and lobate to sheetlike sand
bodies. Moderate interconnectivity
NESS FORMATION
MIDDLE JURASSIC

between sand bodies improving towards top


BRENT GROUP

of unit
and k
11400

Moderate to good. Locally very good.


Locally poor due to carbonate cements

Delta top sediments comprising floodplain


mudstones and thin coals

S Tidal flats or interdistributary bays with


extensive wave and current features
11450

Geometry
P Broadly sheet like but cut by elongate
channel complexes
and k
ETIVE FORMATION

Generally poor due to mud laminae - locally


good
Coastal barrier sandstone
11500

Geometry
Broad, sheet like sandbody orientated
parallel to paleo-shoreline
and k
Generally moderate to good. Locally very
good, or poor where calcite cemeted

1. HUMBER GROUP
2. HEATHER FM.
3. TARBERT FM.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

NW S E
10000

U. Jurassic
3/2-2 3/2-4
3/2-3 3/2-1A 3/2-5
2 1

Lyell 1000

Ness Fm.

Middle Jurassic
Brent Group
100

Etive

PERMEABILITY (md.)
3

4 10

Dunlin Gp.
L. Jurassic
0
1
1. Humber Group
2. Heather Formation
3. Rannoch Formation
50 feet 4. Broom Formation

The reservoir interval may be divided into two main units. The lower interval comprises 0.1
the Broom, Rannoch and Etive Formations and the upper interval the Ness Formation. The
uppermost Brent Group formation, the Tarbert, is absent or very thin and attenuated over
most of the field as a result of either non-deposition or erosion. The Broom, Rannoch and Well 3/2-4
Etive Formations exhibit a similar development to that seen in the Ninian field regarding Well 3/2-1a
thickness and depositional history and may be modelled together. Each of the formations 0.01
may be treated as sheetlike sandbodies over the area of the field. The Broom Formation is 0 10 20 30
a stacked and coalesced composite sand body with thin mudstones of several square
POROSITY (per cent.)
kilometre extent. Net to gross ratio and porosity values are good. The Rannoch Formation
is diachronous and forms a sheetlike horizon with very poor to poor but locally moderate
reservoir quality. The Etive Formation is a sheetlike horizon of stacked and coalesced The Broom Formation is commonly moderately cemented and
sandstones which exhibit a gradual thickening to the north and east and exhibits excellent exhibits porosity values in the range 14 to 20 per cent. Permeability
reservoir quality. Average thicknesses for the Broom, Rannoch and Etive Formations are values are moderate and range from 5 to 40 md. The degree of
approximately 50, 40 and 50 feet respectively. cementation (principally calcite) is the main controlling factor on
The Ness Formation may also be subdivided into two main intervals on the basis of the poroperm distribution although kaolinite development is also
nature of development of sandstone bodies. The sequence includes shoreline, channel, bar, important. The Rannoch Formation porosity is low and averages
crevasse splay, levee and sheet flood sandstones interbedded with floodplain and lagoonal approximately 8 per cent. whilst permeability ranges from <1 to 5
mudstones. In most wells the top of the Ness coincides with the top of a correlatable md. The poorer quality of the horizon represents the development of
sandstone unit of average thickness 40 feet. The unit is a major north-south orientated low illite in response to the micaceous nature of the sediments. The
sinuosity distributory channel complex which exhibits good connectivity and is considered sediments also exhibit a laminated structure even on a microscopic
to be correlatable with the Ninian field. The unit is expected to exhibit good connectivity due scale. The Etive Formation exhibits good porosity and moderate
to diagonal stacking of the channels. The sandstone unit is not seen in Well 3/2-1A where permeability with values in the ranges 16 to 20 per cent. and 5 to 20
there are laterally equivalent interbedded sandstones and shales. This major channel and md respectively. Calcite cementation is also common and locally
overbank unit forms the upper subdivision of the Ness Formation. The Tarbert is not extensive in these fined grained sandstones. The Ness sandstone
considered to be of significance as a reservoir horizon in the Lyell field. The lower interval bodies exhibit moderate porosity values and highly variable
averages 100 feet in thickness and comprises saline bay and non-marine interdistributary permeabilities. Porosities range from 14 to 18 per cent. whilst
bay shales and sandstones. The sandstone horizons are relatively thin (less than 25 feet ) permeabilities are in the range 50 to 1000 md and are related to
and are interbedded with mudstones and exhibit poor connectivity. The unit forms a vertical complex channel sand architecture. The thicker stacked channel
permeability barrier between two of the main reservoir horizons, the Etive and the Upper sequences generally have excellent poroperm characteristics. In all
Ness channel unit. The Ness is not significantly truncated in the area of the field. the main reservoir horizons primary textural characteristics, with the
exception of variable cementation, appear to have exerted the main
FLUID PROPERTIES control on poroperm distribution.
The Lyell field contains a medium gravity oil in the range 35-38 degrees API and a RESERVOIR PRESSURE
viscosity of 0.5 cp at 240 F. The GOR is variable and ranges from approximately 400 to 800
scf/stb and the bubble point pressure lies in the range 1500 to 2300 psig. The range of oil Pressure data from both DST and RFT sources is of poor quality.
properties encountered suggest that there is a zoning of oil types both between and within Based on a regional hydrostatic gradient to surface of 0.45 psi/foot
the main reservoir units. The geological and structural configuration of the field suggest that the Lyell field, on the evidence of Well 3/2-2 RFT data alone, is
segregation into a number of isolated reservoirs is possible but the available data are not overpressured by some 2100 psi. The initial Lyell reservoir pressure
sufficient to better describe the distribution or control. is 7100 psig at a datum depth of 11434 feet TVDSS. The
overpressuring of the reservoir is comparable to that observed in
Ninian. Bubble point pressure of the oil in Well 3/2-1A is 2345 psig
and the oil gradient is 0.33 psi/foot. The OWC presented for the Well
1000 2.0 2.0 3/2-3 data is a field wide inferred contact on the basis of
GOR saturation/height trends. No reliable data points were available for
B0
pressures in the water leg.
800
1.5 1.5
GOR (scf/stb)

600
B0 (rb/stb)

11400
0 (cp)

1.0 1.0

400
0

0.5 0.5
200 11600

0.33 psi/ft
DEPTH (feet TVDSS)

@ 240 C
0 0 0

0 2000 4000 6000 8000


11800
PRESSURE (psia)

OWC @ 11920 ft TVDSS

CONTROLS ON RECOVERY 0.45 psi/ft


12000 regional gradient
The average recovery factor for the Lyell field is expected to be low in the region of 25
per cent. The values may range around this central figure on a formation by formation basis.
The main reasons for the low recovery factor are the generally low permeabilities observed
in the field and the strongly developed faulting, which combined with the extensive vertical
12200
heterogeneity of the reservoir sequence will result in extensive reservoir
compartmentalisation. Injected water will show irregular advance due to the variable 7100 7200 7300 7400 7500 7600 7700

permeability distribution, particularly in the Broom and Rannoch Formations. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

NINIAN NORTH Water Depth 479

UNITED KINGDOM
NINIAN CENTRAL (feet)
Development Subsea Manifold
NINIAN SOUTH

Lyell
Total Weight 500
LYELL
(tonnes)
Well Slots 15
10" x 15.5 km Oil
8" x 15.5 km Gas
Wells 13 planned
plus 3" and 4" x 15.5 km Chemical lines Producers 7
12" x 15km Oil Injectors 2
10" x 15km Water
2" x 15km Methanol 2 km Flowlines
PROCESSING AND EXPORT SPECIFICATIONS
STRATHSPEY
12" x 20km
Water Oil Throughput 70000
(bbl/day)
Oil Export 12" x 15 km Pipeline
to Ninian South

STAFFA
SCHEMATIC FIELD LAYOUT

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 20

Net Present Value 46.36 7.79 -7.45 -15.33 -21.78 -29.32 -37.76
Net Present Value (Deflated) 21.80 -11.13 -24.06 -30.71 -36.11 -42.37 -49.24
Profit/Inv Ratio 0.26 0.05 -0.05 -0.11 -0.16 -0.23 -0.32

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio (Deflated) 0.11 -0.07 -0.15 -0.20 -0.24 -0.30 -0.38
NPV/Unit Oil Equiv. 1.32 0.31 -0.35 -0.79 -1.25 -1.94 -3.12 15
NPV/Unit Oil Equiv. (Deflated) 0.66 -0.45 -1.15 -1.62 -2.10 -2.83 -4.06

Payback Year 2000


Nominal Rate Of Return % 6.42
Real Rate Of Return % 3.00

Post Corporation Tax 10

Net Present Value 31.06 -1.46 -14.38 -21.07 -26.55 -32.96 -40.12
Net Present Value (Deflated) 9.15 -18.79 -29.80 -35.47 -40.07 -45.40 -51.21
Profit/Inv Ratio 0.18 -0.01 -0.10 -0.15 -0.20 -0.26 -0.34
Profit/Inv Ratio (Deflated) 0.05 -0.11 -0.19 -0.23 -0.27 -0.32 -0.40
NPV/Unit Oil Equiv. 0.89 -0.06 -0.67 -1.09 -1.52 -2.18 -3.32
5
NPV/Unit Oil Equiv. (Deflated) 0.28 -0.76 -1.42 -1.87 -2.33 -3.03 -4.22

Nominal Rate Of Return % 4.71


Real Rate Of Return % 1.37

Earnings Data
0
Gross Revenue 422.15 302.18 252.20 225.20 202.17 173.56 137.54
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1990 1995 2000 2005
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax 15.30 9.26 6.93 5.74 4.77 3.64 2.36 Year
Capital Expenditure 175.00 156.15 146.53 140.70 135.28 127.84 117.02
Operating Costs 200.79 138.24 113.12 99.83 88.67 75.03 58.28

Gross Revenue (Deflated) 394.62 288.03 242.89 218.26 197.11 170.60 136.79
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 12.65 7.66 5.74 4.76 3.96 3.03 1.97
Capital Expenditure (Deflated) 190.65 170.64 160.39 154.17 148.39 140.45 128.86
Operating Costs (Deflated) 182.16 128.52 106.56 94.80 84.83 72.53 57.18

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax CASH FLOW REPORT


Net Present Value 116.23 97.04 87.72 82.25 77.29 70.69 61.52 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Net Present Value (Deflated) 102.39 85.98 78.00 73.31 69.05 63.37 55.45 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
NPV/Unit Oil Equiv. 5.50 5.51 5.49 5.48 5.46 5.42 5.34 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Post Corporation Tax 1991 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -41.6 0.0 0.0 0.0
1992 0.0 0.0 0.0 60.0 0.0 0.0 0.0 -60.0 -87.4 0.0 0.0 0.0
Net Present Value 100.93 85.23 77.54 73.01 68.88 63.36 55.64 1993 49.7 0.0 18.0 45.0 0.0 0.0 0.0 -13.3 -17.3 12.0 0.0 0.0
Net Present Value (Deflated) 89.73 76.20 69.56 65.64 62.07 57.28 50.56 1994 60.3 0.0 23.7 15.0 0.0 0.0 0.0 21.6 25.6 16.0 0.0 0.0
NPV/Unit Oil Equiv. 4.78 4.84 4.86 4.86 4.86 4.86 4.83 1995 38.6 0.0 16.7 15.0 0.0 0.0 0.0 6.9 7.3 10.0 0.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Earnings Data 148.5 0.0 58.4 160.0 0.0 0.0 0.0 -69.9 -113.4 13.9 0.0 0.0

Gross Revenue 273.62 225.16 202.60 189.63 178.06 162.92 142.39 1996 36.4 0.0 15.6 15.0 0.0 0.0 0.0 5.8 5.6 9.1 0.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 35.7 0.0 15.3 0.0 0.0 0.0 0.0 20.4 17.5 8.3 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 33.6 0.0 14.9 0.0 0.0 0.2 0.2 18.4 14.1 7.5 0.0 0.0
Corporation Tax 15.30 11.81 10.18 9.24 8.41 7.33 5.88 1999 32.1 0.0 14.6 0.0 0.0 2.5 2.5 15.0 10.2 6.9 0.0 0.0
Capital Expenditure 15.00 14.64 14.43 14.30 14.17 13.99 13.69 2000 30.0 0.0 14.3 0.0 0.0 3.0 3.0 12.7 7.7 6.2 0.0 0.0
Operating Costs 142.39 113.49 100.44 93.08 86.60 78.25 67.18 2001 28.7 0.0 13.9 0.0 0.0 3.1 3.1 11.7 6.3 5.7 0.0 0.0
2002 27.2 0.0 13.4 0.0 0.0 3.3 3.3 10.4 5.0 5.2 0.0 0.0
Gross Revenue (Deflated) 238.06 198.33 179.68 168.92 159.28 146.60 129.29 2003 25.6 0.0 13.2 0.0 0.0 3.4 3.4 9.0 3.8 4.7 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 24.3 0.0 12.9 0.0 0.0 3.2 3.2 8.2 3.1 4.3 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 12.65 9.78 8.44 7.67 6.98 6.09 4.89 2005 0.0 0.0 14.2 0.0 0.0 -3.5 -3.5 -10.7 -3.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 15.00 14.64 14.43 14.30 14.17 13.99 13.69
Operating Costs (Deflated) 120.67 97.71 87.25 81.31 76.05 69.25 60.14 Total 273.6 0.0 142.4 15.0 0.0 15.3 15.3 100.9 69.6 21.1 0.0 0.0

These cash flows include Lyell field only.


SUMMARY

The Machar oil field lies wholly within Block 23/26a, close to the
9 UK/Norway median line and is one of the "diapir" fields located in the
eastern trough of the Central North Sea. It was discovered by Well
SCOTER 12 PIERCE 23/26a-1 in 1976 and since then a number of appraisal wells have been
drilled to delineate the field in preparation for a two phase long term
5
production testing programme. Phase 1 was conducted in 1994 and
involved the production of 7 MMstb of oil through a long term production
23/26a BP test. Phase 2 involves an additional 18 month long production test which
started in mid-1995. Assuming that these two phases are successful,
MACHAR Machar will probably be developed via a minimal facilities platform tied
16
12 back to the Marnock field as part of the Eastern Trough Area Project
13 (ETAP). Oil will most likeky be exported via the Forties pipeline system,
1,5
and gas via CATS.
2,2A 6,18,18A,B
BP has 100 per cent. interest in the field.
22/30a Shell 10

19
3

7
23/26c
ERSKINE Enterprise
SHEARWATER 14
8
3,3RE,4 4

15 17
11
9 11
22/30b Shell 23/26b Texaco 23/27 Ranger
29/5b Elf 30/1f Enterprise 30/1e 30/1a BP 30/2a BP
BP

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Machar field is located in Block 23/26a and lies in the eastern
trough of the Central North Sea with the Lomond oil field some 25 km
Oil Gravity (oAPI) 41 to the north. The Erskine gas condensate field occurs directly to the
Gas/Oil Ratio (scf/stb) 877 south and the UK/Norway median some 20 km due east. The field is
Bubble Point Pressure,Pb (psia) 3160 located in an area where salt diapir related discoveries are common.
Formation Volume Factorat Pi (rb/stb) 1.43 These fields include Lomond, Medan, Mungo, Monan, Pierce and
Oil Compressibility (vol/vol/psi) Scoter.
Original Reservoir Pressure Pi (psia) 3800 The Machar field comprises fractured Cretaceous chalk and
At Datum Depth of (ft TVDSS) 6562 Paleocene sand reservoirs overlying a Zechstein salt diapir. On the
Reservoir Temperature (F) 230 northeastern crestal area of the field the salt has pierced both the
Cretaceous and Paleocene reservoirs, such that no reservoir section is
Rock Properties present.

Rock Type Chalk and Paleocene sand


Stratigraphic Unit Forties, Ekofisk, Tor, Hod Formations
Geological Age Paleocene and Cretaceous
Porosity Range (per cent.) 12-30
Permeability Range (md) <1-100
(higher where fractured)
Connate Water Saturation (per cent.) No data available FIELD DESCRIPTION
Oil Water Contact (m TVDSS) Not encountered to date
Depth to Top of Structure (m TVDSS) Approximately 1500m The Machar field is an oil accumulation in the Central North Sea and
is one of a number of Paleocene sand and Cretaceous chalk
Reserves discoveries where the reservoir structure is controlled by an underlying
salt diapir. The reservoir fluid is an approximately 41 degrees API
Total Reserves (MMstb, Bcf) 60, 40 gravity, relatively light oil. A definite oil water contact has not been
(Oil & NGLs, Gas) encountered as the chalk reservoir quality deteriorates downflank
Production to 31.12.95 (MMstb, Bcf) 9, 0 where it becomes tight. It is envisaged that the oil water contact will
(Oil & NGLs, Gas) exist in downflank Paleocene sandstones. The field will be developed in
Remaining Reserves (MMstb, Bcf) 51, 40 association with ETAP - the Eastern Trough Area Project. ETAP was
(Oil & NGLs, Gas) originally formed to investigate the development potential of a number
of small to medium sized oil and gas fields in the central North Sea.
Production Unless assessed in a combined strategy, many of these would not
prove commercial on an individual basis. Eight fields currently make up
Water Depth (feet) 276 the joint development including Marnock, Mungo, Monan, Heron, Egret,
Production Start Date* 1999 Skua, Scoter and of course Machar. The total recoverable reserves are
Peak Production (Oil & NGLs, Gas)* (stb/d, MMscf/d) 25000, 24 estimated to be in the order of 1.1 Tcf of sales gas and 400 MMbbl of
Platform(s)* 1 ummanned Gas Platform oil. Machar is being developed in phases, with the first two phases
Number of Wells Planned* 16 comprising long term production tests and the nature of the third being
Oil Export* Via Marnock to based on the outcome of these tests. The final phase of extraction is
the Forties pipeline likely to comprise a minimal facilities platform with water injection
then onto Cruden Bay required to maintain optimum output. Machar is expected to be
Gas Export* Via Marnock to CATS pipeline developed by platform rather than subsea template - a method which
or new pipeline may be used by other structures in ETAP, because it is at relatively long
distance from Marnock - the hub of ETAP processing.
All production will be piped to Marnock for onward transportation. Oil
possible development scenario *
output will be exported using the Forties system to Cruden Bay with gas
production utilising either CATS pipeline or a new purpose built
infrastructure.
STRATIGRAPHY AND STRUCTURE

The Machar field is situated on the southwestern margin of the Central Graben.

UNITED KINGDOM
The reservoir comprises fractured Cretaceous chalk and Paleocene sand, overlying
30
and on the steeply dipping flanks of a piercement salt diapir. The field is divided into 00
24
northeastern and southwestern areas by penetrative salt with associated faulting. In 00

Machar
the northeastern crestal area of the field, the salt has pierced the reservoir horizons,
12Z
and no reservoir is preserved.
22
The trap is a combination dip and diagenetic closure. The Paleocene sand 16 20
00
180 00
accumulation is expected to show four-way dip closure; flank drilling currently has 0
not intersected the reservoir deep enough to identify the contact depth. In the chalk 160
0
however, the reservoir quality deteriorates with depth, diminishing to negligible 13
before any oil water contact is seen. 18Z
The structure is interpreted to have developed by deposition of thin Cretaceous 1RE
13ZA 6Y
and Tertiary sequences over the crest of the salt high and thick sequences off the 5
flank due to long lived salt "buoyancy". Production from the chalk relies on drainage 10
20Y 00 0
of the poorly permeable matrix via fractures. The fractures are interpreted to have 2
14 60 0
10Z 1 0
developed due to passive jointing and gravity sliding, rather than by salt 2STRE 18
emplacement and brittle fracturing.
The structure is overlain by some 1500 metres of Tertiary sediments. Salt piercement
2000
SEDIMENTARY AND DEPOSITIONAL ENVIRONMENT 2200
2400
19 2600
The Machar field comprises Paleocene sand, fractured chalk and diagenetic 2800
19Y
celestite reservoirs. The main reservoir is the chalk, with the Paleocene sand 3000
representing the secondary reservoir.
The Paleocene and Upper Cretaceous chalk of the Ekofisk, Tor and Hod MACHAR
Formations is mainly represented by clean, pelagic bioclastic mudstones (chalky TOP CHALK
limestone). This facies displays a matrix of tiny coccolith fragments which has low DEPTH STRUCTURE
permeability due to narrow pore throats but good intergranular porosity. Minor, local
developments of packstones and wackstones have been encountered in redeposited 0 2 km
chalk units which were probably a result of syn-depositional resedimentation caused (Contours in metres TVDSS)
by salt movement and/or sediment instability. The chalk facies represents an open
marine depositional environment, free of major clastic input.
The Paleocene sands were sourced from the northwest and represent the (After Marshall, 1995)
deposits of submarine, gravity flow processes. The dominant one of these is the high
density turbidites. The sediments are typically represented by thin sand units (up to
7m thick) with rarer thicker units, and are separated by generally thicker shales. The Upper Cretaceous and Paleocene. As a result the salt buoyancy effect is interpreted
sands are best developed within the Forties Formation where they are relatively to have caused a sea floor topographic "high" to occur, over which relatively thin
clean, moderately well sorted, and fine to coarse grained. Internal sedimentary clastic and chalk sequences accumulated. In the case of the Paleocene sandstone
structures include convolution and slumping, consistent with the facies reservoir, the crestal area is also dominated by shale as well as being thin. This is
interpretations. due to the density driven turbidity currents preferring to flow in the surrounding
The thickness distribution of the sandstone and chalk reservoirs is interpreted to topographic lows off the flank of the structure.
have been controlled by the continued buoyancy of the salt structure throughout the

INTERPRETATIVE STRUCTURAL CROSS SECTION


MACHAR MEDAN
Metres SW NE
0
LATE TERTIARY

2500 EARLY TERTIARY

CRETACEOUS
5000

JURASSIC
7500
Zechstein
Group TRIASSIC
10000
PERMIAN AND OLDER

12500 0 5 km
(After Foster and Rattey, 1993)

REPRESENTATIVE WELL SECTION - 23/26a-10Z


CORE ANALYSIS DATA GAMMA RAY DENSITY

DEPTH (m)
(API Units) ROCK ( g/cc )
0 1.95 2.95

AGE
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER
150
UNIT NEUTRON
(PERCENT) (md) (Inches) (Limestone units)
40 0 0.01 10000 5 25 45 -15
Marine shales, forming a regionally ROGALAND
GROUP
SELE
FM.
extensive blanket
FORTIES/ANDREW/MAUREEN FMS.

Marine shales and thin turbidite sandstone


sequences
MONTROSE GROUP

Geometry
PALEOCENE

Sheet geometry unit containing lenticular


sands which thicken markedly off-structure
1850

23/26a-10Z and are locally penetrated by the salt diapir.

and K
Moderate and good in clean sands, poor
where cemented and muddy
EKOFISK

Marine chalky limestone


FM.
1875

Geometry
Thick sequence of chalk, forming a blanket
geometry except where pierced by the
TOR FORMATION

salt diapir

and K
Moderate and high matrix porosity, but low
permeability due to very small sediment
particle size. Locally the chalk is fractured
and open fractures lead to high permeability
CHALK GROUP

and an effective drainage mechanism


1900
CRETACEOUS

HOD FORMATION
CROMER KNOLL

1925
GROUP

Marine shales
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
23/26a-10/10Z
23/26a-6Y 23/26a-1,1RD 10000
23/26a-13

23/26a-12Z
Depth

Machar
(mss)
1500 1000

23/26a-13ZA

2000
23/26a-16 Pay Limit of pay 100
in chalk
Paleocene
Non-pay

PERMEABILITY (md.)
Sands
2500

Ekofisk
Formation ? OWC 10

3000
0 1 km

Tor Hod
Formation Formation (From Foster and Rattey, 1993) 1

The main reservoir section is the fractured chalk reservoir over the salt structure. The
crestal condensed sequence is thinned to approximately 300 metres in thickness in contrast
with the surrounding basinal area, where over 1000 metres is preserved. The reservoir has 0.1
a dual porosity system, the first being the primary matrix which has good porosity but low
permeability. The second is due to an intricate, pervasive fracture system which production
tests indicate has a widespread interconnectivity. Although fracture porosity is difficult to Chalk
estimate, it is thought that it is probably less than 1 per cent., although permeabilities reach Paleocene sandstone
above 1000 md. It is these fractures that should provide a way of accessing and draining 0.01
the otherwise tight matrix reservoir and thus allowing acceptable flow rates to be achieved. 0 10 20 30
The porous chalk only occurs to depths of above approximately 2500 metres TVDSS. Below POROSITY (per cent.)
this depth the chalk is diagenetically cemented and "tight".
The Paleocene sandstone sequence shows a marked thinning across the structure,
further highlighting the effect of the development of the structure on depositional thickness The chalk reservoir has a dual porosity system comprising matrix
distribution. As such the Paleocene high density turbidite sandstones are thickest off and fracture porosity. Primary matrix porosity ranges from 12-35 per
structure and on the flanks with the section across the top of the structure consisting of thin cent. with permeabilities usually less than 1md. Fracture porosity on
sands and shales. As a result, reservoir quality on the rest of the structure is relatively poor the other hand is very low, probably less than 1 per cent., while
with thin, fine grained sands and consequently relatively poor permeability. Sand thickness permeability values reach over 1000 md due to the wide, open,
will improve off structure on the flanks, but at greater depths of burial, below 3000 metres connected fracture porosity. The fracture system should allow good
TVDSS, porosity and permeability are expected to be moderate at best. drainage of the otherwise tight chalk matrix.
Diagenesis and compaction has led to the development of
stylolites in the shalier chalk units. Early oil migration is interpreted
to have arrested this process high on the structure, and therefore
matrix and fracture pore space in the hydrocarbon zone have been
preserved. Deeper in the structure, cementation continued, sealing
fractures and promoting stylolites, destroying porosity, probably prior
FLUID PROPERTIES to the complete charging of the field.
The limit of pay downflank is therefore delineated by a diagenetic
Machar field is moderately undersaturated, containing a relatively light 41 degrees API front. Porosity and permeability in the Paleocene sandstones are
gravity oil. The saturation pressure is 3160 psia at a reservoir temperature of 230 degrees moderate to poor. Although porosity of 15 to 25 per cent, is common,
F. The oil viscosity at the saturation pressure is 0.4 cp which leads to a favourable mobility the thin, fine grained often muddy sands have poor permeability,
ratio for waterflooding. rarely exceeding 10 md. Unlike the chalk, the clastic sediments are
not prone to the development of a connected fracture network and
1000 1.5
therefore there is no aid to permeability.
1.0

800 1.4 0.8 RESERVOIR PRESSURE


GAS VISCOSITY (cp)

B0
GOR (scf/stb)

600 1.3 0.6


Rapid regional subsidence in Late Miocene to recent times has
B0 (rb/stb)

GOR probably contributed to the overpressuring in the reservoir. At 1700


0
TVDSS, the reservoir is approximately 1100 psi overpressure. The
400 1.2 0.4 trap is interpreted to be leaking and there is a risk of shallow gas.
The field OWC has not yet been found, but probably exists in the
200 1.1 0.2 Paleocene sand horizon deep on the flanks of the field. From a
regional consideration of aquifer pressures, and the Machar
reservoir pressure, we would expect the oil water contact to be
0 1.0 0.0
0 1000 2000 3000 4000 5000
deeper than 2500 metres TVDSS. This is at least consistent with the
oil down to depths observed to date in Machar.
PRESSURE (psig)

1500

0.28 psi/ft
CONTROLS ON RECOVERY 2000
DEPTH (m TVDSS)

Oil recovery in Machar is very difficult to assess. The oil recovery factor will be crucially
dependent on intensity of fracturing in the reservoir and the interaction between the
fractures and low permeability reservoir matrix. The planned phased development approach
should better define the risks. The first extended test in 1994 produced sufficient oil (7 A B
MMstb) to demonstrate reservoir connectivity. The second test, which commenced in mid 2500
1995, is design to assess not only the production but also the injection characteristics of the
reservoir over an 18 month period. The third phase, namely full field development, will only C
proceed after full analysis of the prior periods of production. 0.45 psi/ft
The reservoir has in its favour a large vertical relief of several hundred metres. This will A,B and C are the aquifer pressures and gradients from the
Arbroath, Montrose and Leman fields, indicating that the Machar
aid gravity stable fluid displacement under water injection or gas reinjection. The Paleocene OWC is probably at or below approximately 2525 metres TVDSS
reservoir represents a significant potential upside, particularly on the flanks of the structure 3000
where the sands thicken. Moderate reservoir quality and potential fault 2500 3000 3500 4000 4500 5000
compartmentalisation will impair recovery from this sandstone sequence. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

LTPT* DEVELOPMENT

UNITED KINGDOM
Water Depth 275 275
(feet)

Machar
Drilling Rig
SEDCO 707 Platform Type SEDCO 707 + tanker minimum facilities
platform **
Function production/accommodation/ drilling/production/
storage/export export/unmanned
Dynamically positioned
storage/shuttle tanker
"SWOPS" Rigid Jacket Weight TBA
production riser (tonnes)
Total Weight TBA
"SWOPS" Type (tonnes)
xmas trees 6" Flexible
export flowline
Accommodation N/K none
Jumper flowline
Well slots not relevant TBA
Wells producers planned 2 then 2 TBA
r ox. injectors planned 0 then 1 TBA
app
km
1.5

7m PROCESSING AND EXPORT SPECIFICATIONS


SCHEMATIC FIELD LAYOUT
Oil Throughput 25000 max 30000
(By permission of BP)
(bbl/day)
Gas Throughput none 30
(MMscf/day)

Water Injection none TBA


(bbl/day)

Oil Export Stena Savonita via ETAP


shuttle tanker
Gas Export none via ETAP

* Long Term Production Test (Phases 1 and 2)


** 35km subsea tieback to Marnock remains an option
FULL FIELD LIFE ECONOMIC INDICATORS Likely data
Eastern Trough Area Project using Marnock central facilities
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 320.96 220.69 179.25 157.21 138.73 116.31 89.31
Net Present Value (Deflated) 271.15 189.12 155.36 137.40 122.30 103.93 81.61
Profit/Inv Ratio 1.48 1.37 1.31 1.28 1.25 1.22 1.18
Profit/Inv Ratio (Deflated) 1.39 1.29 1.25 1.23 1.21 1.19 1.17

@


NPV/Unit Oil Equiv. 4.81 4.77 4.71 4.67 4.62 4.55 4.43
NPV/Unit Oil Equiv. (Deflated) 4.79 4.69 4.62 4.57 4.52 4.45 4.35

Payback Year 1994


Nominal Rate Of Return % 500.00 PRODUCTION PERFORMANCE
Real Rate Of Return % 500.00 HISTORICAL AND PROJECTED
Post Corporation Tax 25 100
Liquid
Net Present Value 200.71 139.34 113.57 99.81 88.25 74.22 57.37
Net Present Value (Deflated) 170.84 119.87 98.76 87.52 78.09 66.63 52.79 Gas

@@@


Profit/Inv Ratio 0.93 0.86 0.83 0.81 0.80 0.78 0.76
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 0.88 0.82 0.79 0.78 0.77 0.76 0.76
20
NPV/Unit Oil Equiv. 3.01 3.01 2.99 2.96 2.94 2.90 2.85
NPV/Unit Oil Equiv. (Deflated) 3.02 2.97 2.93 2.91 2.88 2.85 2.82 75

Nominal Rate Of Return % 500.00


Real Rate Of Return % 500.00
15
Earnings Data
50
Gross Revenue 857.86 580.28 470.36 412.77 364.79 306.86 237.01

@@@


Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10
Corporation Tax 120.25 81.35 65.67 57.40 50.48 42.09 31.94
Capital Expenditure 216.32 161.30 136.63 122.81 110.74 95.36 75.44
Operating Costs 320.58 198.29 154.48 132.75 115.33 95.19 72.27
25
Gross Revenue (Deflated) 713.83 496.09 408.40 361.97 322.99 275.45 217.24 5
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 100.31 69.25 56.60 49.87 44.21 37.30 28.82
Capital Expenditure (Deflated) 195.18 146.33 124.38 112.08 101.32 87.59 69.77
Operating Costs (Deflated) 247.51 160.64 128.65 112.50 99.37 83.93 65.87 0 0
1990 1995 2000 2005 2010

Year

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% CASH FLOW REPORT
Pre Corporation Tax Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Net Present Value 293.20 225.97 195.23 177.97 162.90 143.82 119.43 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Net Present Value (Deflated) 242.02 187.97 163.63 150.05 138.24 123.34 104.39
NPV/Unit Oil Equiv. 5.06 5.10 5.09 5.08 5.06 5.03 4.99 1993 0.0 0.0 0.0 2.0 0.0 0.0 0.0 -2.0 -2.6 0.0 0.0 0.0
1994 60.3 0.0 20.4 15.0 0.0 0.0 0.0 24.9 29.5 16.0 0.0 0.0
Post Corporation Tax 1995 30.8 0.0 19.0 7.0 0.0 11.6 11.6 -6.8 -7.3 8.0 0.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value 184.60 143.73 124.60 113.78 104.31 92.29 76.99 91.2 0.0 39.4 24.0 0.0 11.6 11.6 16.1 19.6 8.8 0.0 0.0
Net Present Value (Deflated) 153.71 120.09 104.79 96.24 88.82 79.48 67.73
NPV/Unit Oil Equiv. 3.19 3.25 3.25 3.25 3.24 3.23 3.22 1996 100.1 0.0 22.1 0.0 0.0 2.3 2.3 75.7 72.8 25.0 0.0 0.0
1997 0.0 0.0 0.0 0.0 0.0 24.5 24.5 -24.5 -21.0 0.0 0.0 0.0
Earnings Data 1998 0.0 0.0 0.0 27.0 0.0 -0.9 -0.9 -26.2 -19.9 0.0 0.0 0.0
1999 50.6 0.0 11.7 112.6 0.0 -2.9 -2.9 -70.8 -48.0 10.0 9.5 0.0
Gross Revenue 766.70 575.25 492.77 447.46 408.38 359.24 296.49 2000 131.5 0.0 24.7 52.7 0.0 1.4 1.4 52.7 31.8 25.0 23.7 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 108.3 0.0 22.9 0.0 0.0 22.3 22.3 63.1 33.9 19.8 18.8 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 89.3 0.0 21.6 0.0 0.0 18.5 18.5 49.3 23.6 15.7 14.9 0.0
Corporation Tax 108.60 82.24 70.63 64.19 58.59 51.52 42.43 2003 73.4 0.0 20.6 0.0 0.0 15.1 15.1 37.7 16.1 12.4 11.8 0.0
Capital Expenditure 192.32 161.16 145.58 136.28 127.74 116.19 99.82 2004 60.3 0.0 19.8 0.0 0.0 12.0 12.0 28.6 10.8 9.8 9.3 0.0
Operating Costs 281.18 188.13 151.96 133.22 117.74 99.23 77.25 2005 49.9 0.0 19.1 0.0 0.0 9.3 9.3 21.5 7.3 7.8 7.4 0.0
2006 41.3 0.0 18.3 0.0 0.0 7.1 7.1 15.9 4.8 6.2 5.9 0.0
Gross Revenue (Deflated) 618.45 473.29 410.05 375.07 344.75 306.40 256.97 2007 33.9 0.0 17.2 0.0 0.0 5.3 5.3 11.5 3.1 4.9 4.6 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 28.1 0.0 16.7 0.0 0.0 3.8 3.8 7.6 1.8 3.9 3.7 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 88.32 67.88 58.84 53.80 49.42 43.86 36.67 2009 0.0 0.0 66.6 0.0 0.0 -9.1 -9.1 -57.5 -12.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 170.00 142.56 128.84 120.64 113.11 102.93 88.49
Operating Costs (Deflated) 206.42 142.76 117.58 104.39 93.40 80.12 64.09 Total 766.7 0.0 281.2 192.3 0.0 108.6 108.6 184.6 104.8 51.3 40.0 0.0

These cash flows include Machar field only


211/6 Amerada 211/7b Rel. 211/8b Ranger SUMMARY
0 4 km
4 The Magnus field is located in Quadrant 211 some 160 km northeast
of the Shetland Islands in the UK sector of the Northern North Sea. The
field was discovered in 1974 by Well 211/12-1 which encountered oil in
2,2A Upper Jurassic sands of the Magnus Formation. Development of
1 Magnus began in 1978 and involves one steel platform and seven
NW MAGNUS 3 subsea completions. First oil was produced in August 1983 and peak oil
3
211/7a BP 5 1 production was achieved in 1994. Oil is piped to the Sullom Voe
211/11b Rel. 211/12a BP 211/13a Shell terminal via the Ninian field and gas is piped to St. Fergus via Brent and
6 10 the FLAGS system.
MAGNUS The current interests in the Magnus field in per cent. are:
4 3 1
14 2
211/11a Mobil
BP Exploration Operating Company Ltd* 85.00
7 PENGUIN
A Brasoil UK Ltd 2.50
1 9 Goal Petroleum plc 2.50
9
18 5 Repsol Exploration (UK) Ltd 5.00
1 Sun Oil Britain Ltd 5.00
8 3A,13 operator *

5,5A
3
5 4
19 15

211/12b Rel. 11 211/13b BP

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Magnus field is located in the North Viking Graben, close to the
median boundary with Norway. Magnus is the most northerly of all the
Oil Gravity (API) 39 UK North Sea fields and the small Penguin discovery which lies 10 km
Gas/Oil Ratio (scf/stb) 750 to the east is its closest neighbour. Fields which lie less than 50 km
Bubble Point Pressure, Pb (psig) 2500 south of Magnus include Tern, Cormorant, Hutton and North West
Formation Volume Factor at Pi (rb/stb) 1.43 Hutton, Brent, Statfjord, Dunlin, Thistle, Don and Murchison. All these
Oil Compressibility (vol/vol/psi) 7.9 x 10-6 fields contain oil in sandstones of the Brent and/or Statfjord Formations.
Original Reservoir Pressure, Pi (psig) 6805 However, Magnus is unusual in that it contains oil in an Upper Jurassic
At Datum Depth of (ft TVDSS) 10335 reservoir, above the Brent Group, which in Magnus is water bearing.
Reservoir Temperature (F) 240

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Magnus Formation
Geological Age Upper Jurassic
Porosity Range (per cent.) 19-25
Permeability Range (md) 100-500
Connate Water Saturation (per cent.) 18
Oil Water Contact (ft TVDSS) 10335
Depth to Top of Structure (ft TVDSS) 9500

Reserves OIL & NGL GAS

Total Reserves (MMstb, Bcf) 766 263


Est. Production to 31.12.95. (MMstb, Bcf) 616 221
Remaining Reserves (MMstb, Bcf) 150 42 FIELD DESCRIPTION

Production The Magnus field consists of an Upper Jurassic sequence dipping at


some 11 degrees towards the east-southeast and overlain by the Base
Water depth (feet) 610 Cretaceous unconformity. The reservoir sequence developed as the
Production Start Date August 1983 middle fan of a submarine fan system and the thickness of the
Peak Production (Oil and NGL) (stb/day) 156000 sandstone varies from 0 to 650 feet. Porosity and permeability are
Platform(s) Steel jacket + subsea wells moderate to good although they deteriorate significantly with depth and
Number of Wells - Producers 11 towards the east. In general Magnus is stratigraphically closed to the
Water injectors 6 west and dip closed to the east.
The reservoir contains an undersaturated, light, black oil with an API
Gas injectors
gravity of 39 degrees and a GOR of 750 scf/stb.
Oil and NGL Export Pipeline to Sullom Voe via
Aquifer support is weak due to diagenetic clay minerals reducing
Ninian
permeability below the OWC and water injection into the oil column is
Gas Export Pipeline to St. Fergus via
used to maintain reservoir pressure. A gas lift programme has been
Brent
implemented since early 1995; this should be fully installed by 1997.
Production performance to date has been better than expected as
evidenced by the continuing high levels of oil offtake.
A Magnus satellite was discovered by Well 211/7a-5 in 1990. The
reserves are thought to be about 40 MMstb of oil. Production is
expected to commence in the late 1990s and development would
involve subsea system tied back to Magnus with oil transported via the
Magnus-Ninian spur.
STRATIGRAPHY AND STRUCTURE
MAGNUS
The reservoir in the Magnus field comprises Upper Jurassic sandstones of

UNITED KINGDOM
TOP MAGNUS SANDSTONE Kimmeridgian age developed within the Kimmeridge Clay Formation and
DEPTH STRUCTURE assigned to the Magnus Sandstone Member. The reservoir sandstones are up

Magnus
211/7 3 1 to 650 feet in thickness and are encountered at a depth of about 9500 feet
211/12 towards the crest of the structure. The field is located on the southeasterly
10 dipping flank of a fault block on the southern side of the North Shetland Trough.
North-south trending normal faults downthrowing to the east are developed on
the structure, with throws of about 100 feet. The structural and stratigraphic trap
6 is formed by east-southeast dipping Jurassic sediments overlain
Stratigraphic
uncomformably by Cretaceous mudstones and limestones. The subcrop of the
Pinch-out base Magnus sandstone on the base Cretaceous defines the westerly limit of
the field. The base of the reservoir is the oil water contact at 10335 feet TVDSS
2 resulting in a maximum closure of 835 feet.
Cretaceous, Shetland Group and Cromer Knoll Group and Jurassic,

3000
Kimmeridge Clay Formation mudstones provide vertical seal and lateral bottom

00
31

0
A seal respectively.

320

3300
1 9

3400
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

290
0
The Magnus Sandstone Member represents part of a submarine fan
5
300
0 sequence, deposited during eastwards progradation of the fan system during
the Kimmeridgian. The Magnus fan was probably orientated east-west, and
sourced from a westerly direction. The majority of the section (up to 80 per cent.
3A,13
of the vertical sequence) comprises thick bedded and massive sandstones
separated by rare thin mudstone partings, or by mudclast conglomerates. The
sandstones are generally sharply bounded but locally have graded tops. These
sediments are interpreted as high density turbidite sandstones with minor

3300
12A hemipelagic mudstones. Intervals of thinly bedded fine grained sandstones
exhibiting sharp, locally loaded bases, with current ripple and planar horizontal
lamination. These commonly have mudclasts above bed bases, and are
0 4 km
interbedded with thin mudstones. These are interpreted as low density turbidite
4
(Contours in metres) sandstones with hemipelagic mudstones. Up to a maximum of 20 per cent. of
the vertical sequence may be composed of heterogeneous muddy sandstone or
sandy mudstone containing abundant mudclasts and sandstone clasts, with
contorted bedding and fluid escape structures. These sediments are interpreted
(After De'Ath & Schuyleman, 1981)
as sandy debris flow deposits.

10000
INTERPRETATIVE STRUCTURAL CROSS SECTION
Feet 211/12-5
W E

8000

TERTIARY + UPPER CRETACEOUS


9000

Cromer Knoll Group


10000

Magnu Kimmer
s Sand idge C
stone lay For
11000 Kimmer Memb mation
idge C er
lay For
mation

0 1 km
12000
(After De'Ath & Schuyleman, 1981)

REPRESENTATIVE WELL SECTION - 211/7-1


DEPTH (feet)

CORE CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Euxinic marine mudstones. Laterally


extensive, non reservoir.
Thickly bedded, high density turbidite
sandstones, overlain and underlain by thinly
MAGNUS SANDSTONE MEMBER

211/7-1 bedded low density turbidite sandstones and


hemipelagic/turbiditic mudstones.

Geometry
10400

Elongate, lobate sandbodies, amalgamated


to form thick, more sheetlike sediment body,
including thin, sheetlike to lobate sandstones
and mudstones.
M
M
M and K
and K generally moderate to good. Poor
UPPER JURASSIC
HUMBER GROUP

to moderate in thinly interbedded units which


may form vertical permeability baffles.

M
KIMMERIDGE CLAY FORMATION

10500

M
10600

Hemipelagic and turbiditic mudstones with


thin turbiditic sandstones. Laterally extensive,
non reservoir interval.
RESERVOIR GEOLOGY 0 POROSITY - PERMEABILITY CHARACTERISTICS
211/12a-9

10000
211/12-5 211/12-2
Cromer 200 feet
Knoll

Magnus
Group

211/12-3
N
S 211/12-6 211/12a-10 211/7-1 1000
211/12-4 211/12-1 Shetland
Group

1
100

KIMM. CLAY FM.

PERMEABILITY (md.)
2
10

1. Magnus Sandstone Member


2. Kimmeridge Clay Formation

(Modified after De'Ath and Schuyleman, 1981)


0.1

The sandstones within the Magnus Sandstone Member form elongate to lobate
sandbodies which are amalgamated to produce a thick, lobate sediment body including
laterally impersistent intervals of thinly interbedded sandstones and mudstones. Sand to 0.01
shale ratios decrease eastwards towards the distal part of the fan. Sandstone bed thickness 0 10 20 30
trends indicate a predominance of channels and massive sands in the west central area POROSITY (per cent.)
while depositional lobes predominate in the north and east. The Magnus Sandstone
Member thins towards the northeast and south and also updip to the west as a result of
erosion. A three fold zonation of the Magnus Sandstone based on correlation of sequences Average porosity in the Magnus field is generally moderate to
does not indicate the presence of permeability barriers between discrete sandbodies. good, 19 per cent. along the eastern flank, to 25 per cent. in the
Individual sandbodies are likely to form laterally persistent units and have good horizontal updip western area. This difference corresponds to both a decrease
permeability via turbidite channel sandbodies. in depth (updip) and decreasing distance from sediment source (to
the west).
Average permeability is generally good; over 500 md in updip
Well 211/12-1 and 100 md in downdip Well 211/12a-9. As with
porosity, permeability shows a trend of decreasing values with
increasing depth and increasing distance from the source in the
west. Primary textural characteristics and hence facies also control
trends in porosity and permeability values such that coarser grained,
FLUID PROPERTIES thicker sandstones have higher values. Flushing by meteoric water
causing formation of kaolinite, coupled with down flank flushing of
The reservoir fluid is a highly undersaturated oil with an API gravity of 39. Laboratory the kaolinite, may have enhanced porosity, particularly near to the
studies have shown it to be miscible at reservoir conditions with Magnus field solution gas. erosion surface. Porosity and permeability values are reduced in the
water leg due to the development of authigenic illite. Dolomite
cementation reduces porosity and permeability values most
1000 1.5 B0 0.9 commonly in the south of the field and in thin sandstones adjacent to
mudstones.
0.8
800 GOR
1.4
0.7
GOR (scf/stb)

600
B0 (rb/stb)

0 (cp)

1.3 0.6

400
0.5
1.2
200
0 0.4

@ 240 F
0 1.1 0.3 RESERVOIR PRESSURE
0 2000 4000 6000 8000

PRESSURE (psig) The Magnus field is overpressured by some 2000 psi over
hydrostatic. It has an averge oil water contact at 10335 feet TVDSS.

9800

CONTROLS ON RECOVERY 10000

The depositional setting and intra-field faulting in Magnus have made reservoir pressure 0.29 psi/ft
support by water injection necessary to sustain adequate oil offtake rates. Pressure
DEPTH (feet TVDSS)

10200
continuity across the field is interrupted by faults and shale horizons within the Magnus
Sandstone Member (MSM) and a comprehensive appraisal drilling programme has made
possible optimal placement and perforation of production and injection wells. OWC @ 10335 ft TVDSS

The reservoir is divided into several lobes of the MSM and additionally the Lower 10400

Kimmeridge Clay Formation (LKCF). Over 80 per cent. of STOIIP is found in the good
quality MSM with the remainder in the thin sandstone beds within clays of the LKCF. A
0.45 psi/ft
recovery factor in the order of 50 per cent. or more is expected for the MSM, whilst in the 10600
LKCF a much lower recovery factor is projected.
Permeability within the oil column typically falls from 500 md to 100 md at the OWC.
Below the OWC, diagenetic modification reduces permeability such that adequate injectivity
cannot be achieved and for this reason, the peripheral water injection wells are completed 10800
6600 6700 6800 6900 7000
low in the oil column. This will reduce sweep efficiency in the structurally low parts of the
reservoir. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Water Depth 610

UNITED KINGDOM
(feet)
Platform Type steel jacket

Magnus
Function drilling/production/
accommodation
Jacket weight 34400
(tonnes)
Total Weight 77000
(tonnes)

Accommodation 194

Well slots 20
Wells - producers (platform/subsea) 11/4
Planned - water injectors (platform/subsea) 6/3

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 140000


(bbl/day)
Gas Throughput 85
(MMscf/day)
Oil Export 24" x 92km pipeline to Ninian,
onwards to Sullom Voe
Gas Export 20" x 79km pipeline to Brent,
onwards to St. Fergus

(A BP Photograph)

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 160 200


Liquid
Net Present Value 2,966.51 1,558.23 1,062.18 819.87 628.83 413.42 181.40
Net Present Value (Deflated) 3,520.13 1,712.03 1,067.24 751.19 501.99 221.98 -75.22 Gas

@@@@


Profit/Inv Ratio 2.00 1.37 1.07 0.90 0.75 0.55 0.29
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 1.19 0.73 0.51 0.39 0.28 0.14 -0.05
NPV/Unit Oil Equiv. 3.66 3.66 3.53 3.39 3.20 2.83 1.95 120 150
NPV/Unit Oil Equiv. (Deflated) 3.45 3.04 2.61 2.25 1.83 1.06 -0.55

Payback Year 1985


Nominal Rate Of Return % 27.53
Real Rate Of Return % 18.44

Post Corporation Tax 80 100

@@@@


Net Present Value 1,895.71 978.91 648.99 486.36 357.48 211.55 54.14
Net Present Value (Deflated) 2,128.45 932.17 501.10 289.41 122.69 -63.77 -258.46
Profit/Inv Ratio 1.28 0.86 0.65 0.53 0.43 0.28 0.09
Profit/Inv Ratio (Deflated) 0.72 0.40 0.24 0.15 0.07 -0.04 -0.19
NPV/Unit Oil Equiv. 2.34 2.30 2.16 2.01 1.82 1.45 0.58 40 50
NPV/Unit Oil Equiv. (Deflated) 2.09 1.65 1.23 0.87 0.45 -0.31 -1.89

Nominal Rate Of Return % 22.63


Real Rate Of Return % 13.85

Earnings Data
0 0
Gross Revenue 9,819.22 5,319.36 3,832.62 3,124.58 2,573.55 1,957.08 1,289.54
1980 1985 1990 1995 2000 2005
Royalty 923.61 492.92 350.60 283.12 230.86 172.86 110.96
Petroleum Revenue Tax 2,334.00 1,178.04 803.90 630.14 498.25 355.84 211.23
Year
Corporation Tax 1,070.80 579.32 413.19 333.51 271.35 201.87 127.25
Capital Expenditure 1,485.00 1,141.41 993.89 911.93 840.23 748.13 625.73
Operating Costs 2,110.10 948.75 622.04 479.52 375.38 266.82 160.23

Gross Revenue (Deflated) 12,743.03 7,293.45 5,405.03 4,481.27 3,748.10 2,909.25 1,971.75
Royalty (Deflated) 1,177.36 658.53 480.40 394.01 325.97 248.93 164.30
Petroleum Revenue Tax (Deflated) 2,775.90 1,440.83 1,000.93 794.20 635.73 462.55 283.15
Corporation Tax (Deflated) 1,391.68 779.86 566.14 461.77 379.30 285.75 183.24
Capital Expenditure (Deflated) 2,957.09 2,358.04 2,087.46 1,933.42 1,796.45 1,617.49 1,374.43
Operating Costs (Deflated) 2,312.55 1,124.02 768.99 608.47 487.96 358.31 225.09
CASH FLOW REPORT
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1978 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -309.1 0.0 0.0 0.0
1979 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -528.2 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1980 0.0 0.0 0.0 150.0 0.0 0.0 0.0 -150.0 -1,294.5 0.0 0.0 0.0
1981 0.0 0.0 0.0 350.0 0.0 0.0 0.0 -350.0 -2,374.1 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1982 0.0 0.0 0.0 300.0 0.0 0.0 0.0 -300.0 -1,682.3 0.0 0.0 0.0
1983 216.8 0.0 20.0 250.0 11.6 0.0 11.6 -64.8 -310.0 30.1 0.0 0.0
Pre Corporation Tax 1984 1,046.6 58.6 60.0 100.0 109.7 0.0 168.3 718.3 3,042.8 125.1 48.0 0.0
1985 1,012.4 108.1 75.0 50.0 68.5 0.0 176.6 710.8 2,653.5 130.1 54.0 0.0
Net Present Value 314.26 297.76 287.26 280.26 273.35 263.23 247.31 1986 498.2 73.4 80.0 25.0 54.2 232.4 360.0 33.2 108.4 135.1 58.0 0.0
Net Present Value (Deflated) 307.17 288.64 277.62 270.45 263.47 253.42 237.86 1987 544.5 44.5 84.0 20.0 12.5 130.5 187.4 253.0 738.6 130.1 54.0 0.0
NPV/Unit Oil Equiv. 2.00 2.17 2.26 2.31 2.35 2.41 2.49 1988 451.0 41.9 90.0 15.0 -150.6 137.0 28.3 317.7 839.6 141.1 61.0 0.0
1989 600.9 46.0 92.5 0.0 356.2 71.5 473.7 34.7 79.4 145.1 63.0 0.0
Post Corporation Tax 1990 650.1 59.2 97.1 0.0 327.9 46.0 433.0 119.9 236.0 134.1 35.0 0.0
1991 568.8 61.7 102.0 0.0 284.6 51.2 397.4 69.3 115.3 135.1 34.0 0.0
Net Present Value 145.61 144.48 141.95 139.82 137.44 133.59 126.82 1992 611.7 64.3 105.0 10.0 288.8 41.8 394.9 101.8 148.2 151.0 51.8 0.0
Net Present Value (Deflated) 147.99 143.51 139.77 137.04 134.22 129.89 122.72 1993 653.0 70.2 103.0 5.0 317.5 46.0 433.7 111.3 144.6 155.0 53.3 0.0
NPV/Unit Oil Equiv. 0.93 1.05 1.11 1.15 1.18 1.22 1.28 1994 600.7 69.9 101.0 45.0 149.2 66.2 285.4 169.4 200.5 156.0 53.7 0.0
1995 472.5 58.4 100.0 60.0 124.0 79.6 262.0 50.5 54.0 120.0 40.2 0.0
Earnings Data Total To Start Of Discounting ( 1/JAN/1996)
7,927.1 756.1 1,109.6 1,455.0 1,954.1 902.1 3,612.4 1,750.1 1,862.6 616.1 221.2 0.0
Gross Revenue 1,892.14 1,634.67 1,509.62 1,436.00 1,369.07 1,279.51 1,153.95
Royalty 167.48 150.72 142.00 136.69 131.73 124.90 114.93 1996 396.2 45.1 100.0 30.0 122.4 57.2 224.7 41.5 39.9 97.1 31.4 0.0
Petroleum Revenue Tax 379.90 357.99 344.49 335.60 326.88 314.23 294.52 1997 342.6 36.8 101.4 0.0 105.6 38.0 180.4 60.9 52.1 78.3 24.4 0.0
Corporation Tax 168.65 153.27 145.31 140.44 135.91 129.65 120.48 1998 287.2 30.0 102.9 0.0 83.6 27.4 140.9 43.4 33.1 63.2 18.7 0.0
Capital Expenditure 30.00 29.28 28.87 28.60 28.35 27.98 27.39 1999 240.2 23.6 104.4 0.0 61.6 20.8 106.0 29.8 20.2 50.9 14.1 0.0
Operating Costs 1,000.50 798.92 707.00 654.85 608.77 549.17 469.81 2000 200.8 18.2 105.9 0.0 43.0 15.1 76.3 18.7 11.3 41.0 10.4 0.0
2001 168.2 13.8 107.3 0.0 27.4 10.1 51.3 9.6 5.1 33.1 7.4 0.0
Gross Revenue (Deflated) 1,713.04 1,492.79 1,385.13 1,321.51 1,263.49 1,185.58 1,075.74 2002 139.5 10.0 108.9 0.0 13.6 5.9 29.6 1.0 0.5 26.4 5.0 0.0
Royalty (Deflated) 156.83 141.47 133.51 128.67 124.15 117.92 108.84 2003 117.4 7.4 105.5 0.0 4.3 2.0 13.7 -1.8 -0.8 21.5 3.1 0.0
Petroleum Revenue Tax (Deflated) 369.65 345.82 331.91 322.94 314.27 301.85 282.77 Remain
Corporation Tax (Deflated) 159.17 145.13 137.85 133.41 129.26 123.53 115.14 2004 0.0 -17.3 164.2 0.0 -81.6 -7.9 -106.8 -57.4 -21.7 0.0 0.0 0.0
Capital Expenditure (Deflated) 30.00 29.28 28.87 28.60 28.35 27.98 27.39
Operating Costs (Deflated) 849.39 687.58 613.22 570.84 533.25 484.41 418.89 Total 1,892.1 167.5 1,000.5 30.0 379.9 168.6 716.0 145.6 139.8 150.2 41.8 0.0

These cash flows include Magnus field only


49/5a J3a NAM SUMMARY
Lasmo
The Markham field straddles the UK and Dutch sector international
boundary of the southern North Sea. The structure was discovered by
Well 49/5a-2 in April 1984 and subsequent appraisal wells delineated
2,2C
the field's extent in the UK Blocks 49/5a and 49/10b, as well as the
Dutch Blocks J3b and J6.
1 1
K1c NAM Development approval was granted under a treaty signed by the
3 4 British and Dutch governments in May 1992. Development of the field
has been carried out from a single manned platform (J6-A) located in
49/5b the Dutch sector and tied back to this is an unmanned satellite within the
Fina
UK Block 49/5.
It is envisaged that about eight wells will be required fully to exploit
J/3b
MARKHAM LASMO the field, with four of these being drilled prior to production. Start-up was
2
2
in November 1992. The field's development has been unique being the
1 5 first Anglo/Dutch field to be exploited. UK and Dutch gas is exported to
continental Europe via the Westgastransport (WGT) system.
4 3 6 The current interests in the Markham field in per cent. are:
49/4b EDC 49/4a Lasmo 4 ST1 J3c NAM K1a NAM
6 Cairn Energy 4.69
WINDERMERE 2 DNO 2.03
2,3
EBN 31.30
3 1 Edison 2.80
5.6 Elf (SNEA) 9.13
49/9b Wintershall LASMO* 33.71
Total Oil Marine plc 13.25
K4A Wintershall (UK) Ltd 3.09

49/9a Shell 49/9c Shell 49/10b Total J6 Lasmo K4a Petroland operator *

Markham reserves are split approximately 62.6 : 37.4 between the


Dutch and UK sectors. On the Dutch side, all reserves lie in the J3b and
J6 licence, whilst on the UK side reserves are split 32 : 68 between
Blocks 49/10b and 49/5a respectively. However, this unitisation is
subject to redetermination, probably on a four-yearly basis.

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Markham field is located towards the northern limit of the
Rotliegendes reservoir approximately 140 kms northeast of Bacton on
Gas Gravity S.G (air = 1) 0.66 the Norfolk coast. The Permian reservoir section comprises the mainly
Condensate Gas Ratio (bbl/MMscf) - argillaceous Rotliegendes Group. A thick Silverpit Formation shale
Gas Expansion Factor @ Pi (vol/vol) 269 interval overlies the thin Lower Leman Sandstone Formation reservoir
Reservoir Pressure Pi (psig) 5700 sands.
at Datum Depth of (ft TVDSS) 11470 Porosities and permeabilities range from poor to good due to the
Reservoir Temperature (F) 233 range of facies developed within the reservoir. The accumulation has a
generally low relief, being largely dip - closed, except for the
Rock Properties southwestern flank where it is fault-closed.
Neighbouring fields are Schooner, approximately 30 km to the
Rock Type Sandstone northwest, which is a Carboniferous producer and the K4, K5 and K7
Stratigraphic Unit Rotliegendes Group fields where gas is produced from the moderate and good quality
Geological Age Lower Permian Slochteren sandstone, the Dutch equivalent of the Rotliegendes Group.
Average Porosity (per cent.) 13.0
Average Permeability (md) 50.0
Average Water Saturation (per cent.) 10-20
Gas Water Contact (m TVDSS) approx. 3496
Depth to Top of Structure (m TVDSS) approx. 3425
FIELD DESCRIPTION
Reserves
The Markham field is a complex low relief faulted anticline with gas
UK* Netherlands*
contained in sandstones of Permian age. The reservoir shows
Total Condensate Reserves (MMstb) 2 3
variations in sand quality controlled by variations in depositional facies.
Total Gas Reserves (Bcf) 262 438
The reservoir comprises the Lower Leman Sandstone Formation,
Gas Production to 31.12.95 (Bcf) 86 123
which is sealed by the mudstones of the overlying Silverpit Formation.
Remaining Gas Reserves (Bcf) 176 315
The Silverpit Formation represents the distal facies development of the
*Based on equity split of 37.4 : 62.6% reservoir sandstones encountered to the southwest at Audrey and other
(subject to future redetermination) V fields.
The field gained Annex B approval in November 1992, with
Production production via a single platform and unmanned tie back.
The main J6A platform is a six legged steel jacket with eight well
Water Depth (feet) 120 slots located in the eastern (Dutch) part of the field. A second not
Production Start Date November 1992 normally manned platform (ST1) was installed during 1994 in the
Peak Gas Production (MMscf/day) 195 (UK + NL) western (UK) part of the field. Current estimates anticipate that the field
Platform(s) 1 and 1 satellite will plateau at around 190 MMscf/day with a field life in the order of
Number of Wells 8 twenty years. Export of gas is via the Westgastransport (WGT) pipeline
Gas Export Via Westgastransport (WGT) to the Netherlands.
system to the Netherlands A number of future prospects exist in the Markham area and of
these, the neighbouring Windermere field (formerly Avalon) looks
particularly promising. Well 49/5b-4 was a deviated appraisal of this
structure and found an entirely separate accumulation from the
Markham field. Development is expected to involve a minimum facilities
platform linked by umbilical to Markham with first production in 1997.
Other areas under discussion are two exploration prospects located
close to the eastern flank of Markham. Drilling is expected to proceed
into 1996, via a programme of deviated wells from Markham.
The Charlie prospect 2 km to the northeast of the J6-A platform was
confirmed as a new gas discovery in October 1995. The field lies in
Block J3a and is due on stream in early 1996. The field will be exploited
via deviated wells drilled from the J6A platform.
STRATIGRAPHY AND STRUCTURE 49/5a LASMO J3b LASMO

34
The main reservoir of the Markham field is the Lower MARKHAM

75

UNITED KINGDOM
Permian, Lower Leman Sandstone Formation of the TOP MAIN RESERVOIR
5 GWC @ 3496 m TVDSS
Rotliegendes Group. The underlying Carboniferous

Markham
DEPTH STRUCTURE

3475
5Z
sequence is locally penetrated and although sands are of 0 2 km
1 2 B3
reservoir quality they are water bearing. The reservoir

35
34

00
75
interval consists of interbedded sandstones and 5 34 (Contours in metres TVDSS)
47

35
3 50

00
mudstones and varies from 80 to 150 ft in thickness over

34

3475
50
the field. The field was sourced by the prolific gas prone

34
50
Carboniferous Coal Measures. The reservoir comprises 342
5
a complex mainly dip closed faulted anticline with the

5
347
Low B2
Variscan fault trend resulting in a north-northwest to 3 3(A2)
south-southeast elongation of the field. The structure is 34
75 ST-1

3425
dip closed to the northwest and northeast while fault 75

34
34 J3a NAM

75
closure occurs to the southwest. The reservoir shows low

340
Low A3 J6 LASMO
relief and shallow dip, with a crestal depth of 3425m

0
34
J6-A
TVDSS, and a gas water contact at 3496 m TVDSS. The

75
3400
Silverpit Formation mudstones act as a top seal together 49/5a-6Z (B1) 2(A1)

34
with the overlying Zechstein evaporitic deposits.

75
The reservoir is buried below a thick sequence of
mainly Tertiary, Cretaceous and Upper Permian GWC @ 3496 m TVDSS 345
0
sediments. As is common with Rotliegendes reservoirs, Low A4 1 3425
the varying lithologies in the overburden can lead to a

33
50
NETH
variety of depth interpretations being made at reservoir
level. 0

ERLA
3403425

UK
NDS
49/10b Total

SEDIMENTARY AND DEPOSITIONAL ENVIRONMENT

The Markham field is located in the central part of the Southern North Sea with south, and at the base, well-developed aeolian dunes define the initial fieldwide
the Silverpit Basin to the north and Cleaver Bank High to the south. In this area the development of a dunefield that persisted in the south throughout the deposition of
Rotliegendes Group consists of a thin basal aeolian dune and sabkha sandstone the reservoir. Northwards and upwards, the dune facies pass via sand-rich (dune
sequence, overlain by a thick pile of desert lake mudstones and siltstones. margin) and mud rich (lake margin) sabkha sandstones into playa lake mudstones.
The Lower Leman (UK nomenclature) and Slochteren (Dutch nomenclature) The top of the Lower Leman Sandstone Formation marks the cessation of coarse
Sandstone Formations that comprise the Rotliegendes Group reservoir in the clastic supply and the inundation of the whole area by lacustrine mudstones.This
Markham field display four principal lithofacies associations: aeolian, sand-rich change is explained by the proximity of the Silverpit Lake to the north, whose
sabkha, mud rich sabkha and fluvial deposits. The reservoir generally has a sheet fluctuations, due to climatic changes extended or reduced the distance of the field
geometry, but the distribution of facies types varies areally and vertically. In the from its shoreline.

INTERPRETATIVE STRUCTURAL CROSS SECTION

49/5a-1 49/5a-2 49/5a-3 49/5a-5


Metres
0

500 TERTIARY

1000
Chalk Group
1500 UPPER CRETACEOUS
Cromer Knoll Group LOWER CRETACEOUS
2000

2500 TRIASSIC
Zechstein Group
PERMIAN
3000 Silverpit Formation
Rotliegendes Group
3500
Lower Leman CARBONIFEROUS
4000 Sandstone Formation and older
0 2 km
4500

REPRESENTATIVE WELL SECTION - 49/5-3


11450 DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE

49/5-3 LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.01 10000 5 25 45 -15

Predominantly mud rich sabkha forming a


blanket of poor reservoir quality sediments
SILVERPIT FM.

Aeolian dune and sand rich sabkha


Geometry
ROTLIEGENDES GROUP

Sheet geometry but with lateral facies changes into


PERMIAN

poor quality sands


and k
11500

Moderate and good


Muddy sabkha and aeolian sediments
forming a sheet of poor to moderate and
good quality
LOWER LEMAN SST FM.

Aeolian dune and sand rich sabkha


CARBONIFEROUS

Geometry
11550

Sheet geometry sands and muddy sands/


shales forming a layered reservoir
and k
Variable from good in clean sands to poor
in most muddy sands
Floodplain shales, siltstones and thin
sandstones
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
NW SE
10000
49/5-5Z 49/5-2 49/5-3

Markham
1

Zone 1
1000

Lower Leman Sandstone


Zone 2
100

PERMIAN

PERMEABILITY (md.)
10

Zone 3

CARBONIFEROUS
1
0
Lacustrine mudstones
and muddy sabkha
Sandy sabkha
Aeolian dune and interdune
50 ft 1. Silverpit Formation 0.1

The Rotliegendes reservoir of the Markham field can be subdivided in to four major
lithostratigraphic facies. There are aeolian deposits, sand-rich (>90% sand) sabkha
deposits, mud rich (<90% sand) sabkha deposits and fluvial deposits. Interbedded
0.01
mudstones represent playa lake deposits.
0 10 20 30
The aeolian deposits comprise fine to medium grained, moderately to well sorted
POROSITY (per cent.)
sandstones which display large scale cross stratification of dune slip faces grading through
to the flat lying dry interdunal areas.
The sand-rich sabkha facies consists of medium to fine grained sandstones showing
bedding on a millimetre to centimetre scale and a variable mud content. Lamination is often Porosity values are generally moderate, typically 5 to 17 per cent.
wavy as a result of adhesion and wind ripple processes. and permeability values are moderate, typically 0.1 to 100 md.
The mud-rich sabkha comprise silty mudstones to fine grained sandstones interbedded Values are highest in the clean, well sorted aeolian dune sands
on a millimetre to centimetre scale. These laminae often show disruption or rupturing due to developed towards the base and the south of the reservoir. Poorer
water escape or desiccation. quality is shown by the poorly sorted fluvial and sabkha sands which
The fluvial deposits comprise very fine to medium grained mud-rich sandstones. These show variable, generally high mud content and hence restricted
commonly have erosional bases and contain 'rip-up' clasts. porosity and particularly permeability values.
Although lateral facies variations occur across the field, resulting in a generally
northward deterioration in reservoir quality, the sequence can be subdivided into a number
of correlatable layers. We show three principal zones, although small scale correlations
allow this zonation to be further refined. The alternating good/poor reservoir quality between
sub-zones, caused by the contraction and expansion of the Silverpit lake during deposition,
will probably result in the reservoir behaving in a stratified manner.

FLUID PROPERTIES

Markham contains a dry gas at an initial pressure of approximately 5700 psia and a
temperature of 240 degrees F. The separator gas relative density is 0.66 (air=1).
Component Well 49/5-3
(Mol %)
CO2 0.00
N2 11.03 RESERVOIR PRESSURE
C1 82.04
C2 4.98
C3 0.99 The gas water contact at Markham is identified from the log and
iC4 0.15
nC4 0.37
RFT data at 3496 m TVDSS. Therefore prior to production start up
iC5 0.12 the field was overpressured by approximately 500 psi, relative to a
nC5 0.14
C6 0.08
regional hydrostatic aquifer gradient to surface of 1.54 psi/m.
C7+ 0.10

100.00
3460
1.2 400 0.03
GAS EXPANSION FACTOR (scf/rcf)

g 3470
GAS DEVIATION FACTOR Z

300
GAS VISCOSITY (cp)

1.1 0.232 psi/m


3480
DEPTH (metres TVDSS)

z factor
200 0.02
3490
1.0
GWC @ 3496 m TVDSS
100
3500

Eg
0.9 0 0.01 3510 1.87 psi/m
0 1000 2000 3000 4000 5000 6000 7000
PRESSURE (psig)
3520

CONTROLS ON RECOVERY
3530
The recovery factor of the Markham field is expected to be moderate to good, in the order 5680 5700 5720 5740 5760 5780 5800
of 80 per cent. The main factors controlling recovery are: INITIAL RESERVOIR PRESSURE (psig)

generally moderate (in the west) to good (in the east) reservoir quality
the expected installation of compression in later years
aquifer influx, exacerbated by the low relief of the structure, may lead to water
production problems
reservoir faulting may adversely influence reservoir continuity, particularly in the west of
the field when the reservoir is thinner.
FACILITIES SPECIFICATIONS

J6A ST1

UNITED KINGDOM
Markham
Water Depth 120 100
(feet)
Platform Type Steel jacket Steel jacket
Function Production, Production
accommodation

Jacket Weight 1300 850


(tonnes)

Total Weight 7000 2050


Photograph/Schematic (tonnes)
Not Available Accommodation 20 -
Well Slots 8 9
Wells planned 4 (minimum) 4-5

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput 257


(MMscf/day)

Gas Export 24 x 83km pipeline 12 x 5.5km


via K13A platform pipeline
to Den Helder in linking ST1 to
the Netherlands using J6A platform
Westgastransport (WGT) System

y
FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 5 200

yyyy
Liquid
Net Present Value 263.75 175.79 138.36 118.22 101.21 80.41 55.15
Net Present Value (Deflated) 245.00 161.86 126.99 108.29 92.49 73.18 49.65 Gas

Average Annual Daily Gas Rate (MMscf/day)

Average Annual Daily Gas Rate (MMscf/day)


Years To Payback 4.40 4.52 4.60 4.65 4.71 4.80 4.97
Years To Payback (Deflated) 4.50 4.63 4.72 4.78 4.85 4.95 5.16 4
Profit/Inv Ratio 3.30 2.59 2.23 2.02 1.83 1.58 1.23 150
Profit/Inv Ratio (Deflated) 2.80 2.17 1.86 1.68 1.51 1.30 1.00
NPV/Unit Oil Equiv. 5.81 5.64 5.45 5.31 5.15 4.89 4.42
NPV/Unit Oil Equiv. (Deflated) 5.73 5.41 5.17 4.99 4.81 4.52 4.01
3
Nominal Rate Of Return % 57.88

yyyy
Real Rate Of Return % 52.34
100
Post Corporation Tax
2
Net Present Value 169.20 115.42 91.28 78.03 66.69 52.68 35.42
Net Present Value (Deflated) 160.40 106.86 83.68 71.09 60.37 47.16 30.94
Years To Payback 4.45 4.59 4.68 4.74 4.81 4.91 5.17
Years To Payback (Deflated) 4.56 4.72 4.82 4.89 4.96 5.13 5.50 50
Profit/Inv Ratio 2.12 1.70 1.47 1.34 1.21 1.03 0.79 1
Profit/Inv Ratio (Deflated) 1.83 1.43 1.22 1.10 0.99 0.83 0.62
NPV/Unit Oil Equiv. 3.73 3.70 3.60 3.50 3.39 3.20 2.84
NPV/Unit Oil Equiv. (Deflated) 3.75 3.57 3.41 3.28 3.14 2.91 2.50

Nominal Rate Of Return % 49.05


Real Rate Of Return % 43.79 0 0
1990 1995 2000 2005 2010 2015
Earnings Data
Year
Gross Revenue 561.37 375.90 302.11 263.23 230.69 191.14 142.99
Tariff Revenue 18.07 10.10 7.29 5.92 4.84 3.62 2.29
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 73.60 49.53 39.49 34.11 29.55 23.97 17.16
Corporation Tax 94.55 60.37 47.08 40.20 34.52 27.74 19.73
Capital Expenditure 79.90 67.88 61.95 58.44 55.22 50.90 44.79
Operating Costs 144.12 82.70 62.30 52.47 44.71 35.86 25.88

Gross Revenue (Deflated) 518.82 354.89 288.28 252.79 222.84 186.11 140.81
Tariff Revenue (Deflated) 14.55 8.28 6.04 4.94 4.06 3.06 1.96
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 69.00 46.61 37.25 32.21 27.94 22.71 16.31
Corporation Tax (Deflated) 84.61 55.00 43.31 37.20 32.12 26.01 18.71
Capital Expenditure (Deflated) 87.62 74.75 68.39 64.61 61.15 56.49 49.89

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
ECONOMIC INDICATORS FROM 1/1/1996 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1990 0.0 0.0 0.0 1.9 0.0 0.0 0.0 -1.9 -3.7 0.0 0.0 0.0
1991 0.0 0.0 0.0 16.8 0.0 0.0 0.0 -16.8 -27.9 0.0 0.0 0.0
Pre Corporation Tax 1992 3.4 0.0 1.4 22.4 0.0 0.0 0.0 -20.4 -29.6 0.0 5.5 0.0
1993 39.0 0.0 7.4 5.2 0.0 0.0 0.0 26.4 34.3 0.4 60.1 0.0
Net Present Value 212.37 186.07 171.69 162.88 154.72 143.61 127.84 1994 57.6 0.0 9.1 16.8 0.0 3.8 3.8 27.9 33.0 0.5 83.7 0.0
Net Present Value (Deflated) 194.83 169.53 156.42 148.53 141.28 131.48 117.64 1995 57.5 0.0 9.2 13.1 2.8 12.6 15.4 19.8 21.1 0.6 85.0 0.0
NPV/Unit Oil Equiv. 6.94 7.19 7.24 7.26 7.26 7.25 7.20 Total To Start Of Discounting ( 1/JAN/1996)
157.5 0.0 27.1 76.2 2.8 16.4 19.2 35.0 27.1 0.5 85.5 0.0
Post Corporation Tax
1996 59.7 0.0 9.2 3.7 14.9 10.3 25.2 21.6 20.8 0.6 85.0 0.0
Net Present Value 141.75 125.55 116.47 110.85 105.60 98.42 88.11 1997 63.7 0.0 9.6 0.0 17.0 8.9 25.9 28.2 24.2 0.6 85.0 3.3
Net Present Value (Deflated) 131.21 115.23 106.82 101.71 97.00 90.59 81.45 1998 66.6 0.0 10.0 0.0 18.3 9.8 28.1 28.5 21.8 0.6 85.0 4.0
NPV/Unit Oil Equiv. 4.63 4.85 4.91 4.94 4.96 4.97 4.96 1999 51.1 0.0 8.4 0.0 12.5 10.9 23.4 19.3 13.1 0.4 62.2 4.0
2000 39.3 0.0 7.4 0.0 6.4 9.1 15.5 16.4 9.9 0.3 45.6 3.7
Earnings Data 2001 30.2 0.0 6.6 0.0 1.6 7.8 9.4 14.2 7.6 0.2 33.4 3.3
2002 23.5 0.0 6.1 0.0 0.1 6.8 7.0 10.5 5.0 0.2 24.5 2.9
Gross Revenue 403.90 334.78 303.30 285.36 269.41 248.59 220.31 2003 17.9 0.0 5.7 0.0 0.0 5.2 5.2 7.0 3.0 0.1 17.9 2.5
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 14.0 0.0 5.5 0.0 0.0 3.6 3.6 4.8 1.8 0.1 13.1 2.2
Petroleum Revenue Tax 70.81 63.52 59.77 57.49 55.37 52.45 48.18 2005 11.0 0.0 5.3 0.0 0.0 2.5 2.5 3.2 1.1 0.1 9.6 2.0
Corporation Tax 70.62 60.52 55.22 52.04 49.12 45.20 39.73 2006 8.2 0.0 5.2 0.0 0.0 1.7 1.7 1.4 0.4 0.0 7.0 1.7
Capital Expenditure 3.70 3.61 3.56 3.53 3.50 3.45 3.38 2007 6.5 0.0 5.1 0.0 0.0 0.8 0.8 0.6 0.2 0.0 5.2 1.5
Operating Costs 117.02 81.59 68.28 61.46 55.83 49.08 40.91 2008 4.7 0.0 3.7 0.0 0.0 0.3 0.3 0.7 0.2 0.0 3.8 0.8
2009 3.2 0.0 3.0 0.0 0.0 0.2 0.2 -0.1 0.0 0.0 2.8 0.0
Gross Revenue (Deflated) 353.29 297.85 272.13 257.32 244.07 226.61 202.62 2010 2.4 0.0 2.3 0.0 0.0 0.0 0.0 0.1 0.0 0.0 2.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2011 1.8 0.0 1.6 0.0 0.0 0.0 0.0 0.2 0.0 0.0 1.5 0.0
Petroleum Revenue Tax (Deflated) 66.13 59.52 56.12 54.04 52.11 49.44 45.55 Remain
Corporation Tax (Deflated) 63.62 54.29 49.60 46.82 44.28 40.89 36.18 2012 0.0 0.0 22.5 0.0 0.0 -7.5 -7.5 -15.0 -2.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 3.70 3.61 3.56 3.53 3.50 3.45 3.38
Operating Costs (Deflated) 88.63 65.19 56.03 51.22 47.19 42.24 36.06 Total 403.9 0.0 117.0 3.7 70.8 70.6 141.4 141.8 106.8 1.2 176.5 11.7

These cash flows include the UK portion of Markham reserves, plus tariff income from the UK portion of J3 and Windermere
16/23 Conoco SUMMARY
15/12a Statoil 3
1
The Maureen field is located in Quadrant 16 some 220 km northeast
of Aberdeen in the UK Sector of the North Sea. The field was
0 4 km
discovered in 1973 by Well 16/29-1 which encountered oil in
sandstones of Paleocene age. Development drilling commenced in
3 June 1979 through a template with all the production wells being
16/24a Phillips
16/24c Rel.
completed prior to production start-up in September 1983. Three
additional small accumulations have been brought on stream in the
1 15/12e Rel.
early 1990s. Moira, a Paleocene reservoir developed as a subsea
satellite of Maureen, started production in August 1990 from Well
16/24b Phillips 16/29A-8Z. Morag, a Zechstein reservoir directly under Maureen,
16/28 BP 16/29d 16/29b 3 started production in March 1991 from recompleted wells. Mary,
Rel. Phillips
MORAG/MARY producing from the Upper Jurassic sandstone on the eastern side of
3 5 15/12c Statoil Maureen was brought on stream in May 1992. Maria is a deeper
2 Jurassic discovery below the Moira Paleocene reservoir. Oil is
9
A 1 transported via an offshore loading system with excess gas being
MAUREEN flared.
16/29a Phillips 15/12b Statoil
The current interests in the Maureen field in per cent. are:-
6
16/29e Phillips Petroleum Co UK Ltd * 33.78
4 Rel. 5
6,9
2 Fina Exploration Ltd 28.96
MABEL Agip (UK) Ltd 17.26
British Gas plc 11.50
10
8
Pentex Oil 8.50
4
12 FLEMING operator *
7
11 7 FENRIS
8 16/29c Phillips
MOIRA
MARIA 9
15/12d Statoil

LOCAL SETTING

The Maureen field is located in the Central North Sea in the South
Viking Graben and is situated in the northeastern corner of Block 16/29.
RESERVOIR CHARACTERISTICS The reservoir section consists mainly of sandstones and mudstones of
Paleocene age assigned to the Maureen Formation. There are a
Fluid Properties number of additional accumulations of Paleocene age in the vicinity of
Maureen. These include the Mabel structure adjacent to Maureen, the
Oil Gravity (API) 35 Balmoral, Andrew and Cyrus fields to the west and the Moira field to the
Gas/Oil Ratio (scf/stb) 465 southwest. The Mabel structure is in the same reservoir sands with the
Bubble Point Pressure, Pb (psig) 1772 same oil properties as the Maureen field but at present is considered
Formation Volume Factor at Pi (rb/stb) 1.32 uncommercial. The Armada area of Fleming, Drake and Hawkins is to
Oil Compressibility (vol/vol/psi) 10.5 x 10-6 the southeast in Quadrants 16 and 22. This area consists of a large gas
Original Reservoir Pressure, Pi (psig) 3832 and condensate accumulation of Paleocene and Jurassic ages.
At Datum Depth of (ft TVDSS) 8630
Reservoir Temperature (F) 234

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Maureen Formation
Geological Age Paleocene
Porosity Range (per cent.) 20-28 FIELD DESCRIPTION
Permeability Range (md) 50-1000
Connate Water Saturation (per cent.) 25 The Maureen field is a salt induced anticlinal structure trending
Oil Water Contact (ft TVDSS) 8680 northwest to southeast. The reservoir section is a sequence of
Depth to Top of Structure (ft TVDSS) 8000 interbedded outer fan channel and lobe sandstones, outer fan and basin
plain mudstones and reworked limestone olistoliths which are
Reserves Paleocene in age and assigned to the Maureen Formation. The
Maureen* Moira porosities and permeabilities of the reservoir sands are good. The field
Total Reserves (Oil) (MMstb) 217 5 contains an undersaturated 35 degrees API gravity oil with an average
Est. Production to 31.12.95 (MMstb) 211 4 gas oil ratio of 465 scf/stb in a normally pressured reservoir. An oil water
Remaining Reserves (Oil) (MMstb) 6 1 contact has been identified at approximately 8680 ft TVDSS.
Production commenced in September 1983 through twelve
* includes Moray and Mary predrilled template wells. The high permeability of the reservoir sands
has led to good productivities and peak annual daily average production
Production of 76000 stb/day was achieved in 1985. Production and pressure data
indicate a significant degree of pressure support from a large
Water depth (feet) 314 contiguous aquifer. This natural water influx coupled with additional
Production Start Date September 1983 water injection and high structural relief has led to a high oil recovery (a
Peak Production (Oil) (stb/day) 76000 factor of some 50 per cent. is expected). Since 1985, gas lift has been
Platform(s) 1 Steel gravity base +
implemented on a number of wells.
Moira, Morag and Mary all produce from the Maureen platform,
1 Subsea Completion (MOIRA)
Moira is a subsea satellite 6 miles southwest of Maureen. Martha
Number of Wells - Producers 12
(16/24a-1) lies about 8 miles to the northwest of Maureen and could
Water injectors 7
also be developed as a subsea completion tied back to Maureen.
Gas injectors
Maureen production rates have declined since 1988, which has meant
Oil and NGL Export Offshore tanker loading
that only one tanker is now required for offshore loading instead of two.
Gas Export Excess flared The additions of Moira, Morag and Mary have slowed down the decline.
However, with production from Moira expected to cease in 1996, if there
are no other fields tied back to Maureen then production may end in
1997/98. The Maria gas find made in 1994, in the deeper reservoir, does
not warrant the installation of gas handling equipment on Maureen. If no
further finds are made, either of black oil or large quantities of gas, then
Maria could possibly be tied back to Armada at a later stage.
STRATIGRAPHY AND STRUCTURE
16/24b
The reservoir sandstones of the Maureen and Mabel fields occur within the

UNITED KINGDOM
16/29b 16/29a
Paleocene Maureen Formation, Montrose Group. On the eastern basin margin,
this formation consists of interbedded outer-fan channel and lobe sandstones,

Maureen
outer-fan and basin plain mudstones, and locally derived olistostromal

NO K
OWC 8680
3
limestones. In the Maureen area, the Montrose Group nowhere exceeds 500

RW
feet in thickness, but thickens and offlaps towards the western limit of the

U
AY
Montrose Group. The overlying mudstones of the Lista Formation provide the
seal. The Maureen field is a stratigraphic trap situated over a salt dome. The
combination of halokinetic uplift and stratigraphic trapping by compaction of
mudstones over the raised topography of the reservoir sandstones has
generated the Maureen field closure.

5 SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Montrose Group has been divided into four lithostratigraphic units. The
2
correlation is valid if the top Montrose Group sand is correlatable. The basal
unit, (Unit 4), consists of a thick sheet of calcareous hemipelagic mudstone
overlying the Ekofisk Chalk in the Mabel area. Laterally, it passes northwards
into an interbedded calcareous mudstone and chalky limestone sequence,
which may be absent or very thin in structurally high wells. Local olistostromal
1 limestone sequences represent gravitational sliding of material away from a
reactivated eastern graben margin fault.
0
820 Unit 3 represents the progradation of a sequence of turbidite sandstones into
0 the Maureen field area from the west. This has resulted in the deposition of a
840
0 thick sequence of generally massive fine and medium grained sandstones
860
00 which thins laterally into three thinner, more distal sequences interbedded with
88
MAUREEN 00 basinal marine mudstones.
90 00
TOP MAUREEN FORMATION 92 Unit 2 consists of a basal marine mudstone overlain by a stacked sequence

00
DEPTH STRUCTURE of turbidite sandstones, which pass laterally into thinner turbidite and lobe

94

0
960
0 1 km
sandstones interbedded with basinal mudstones.
16/29c
Unit 1 predominantly comprises interbedded basinal mudstones and easterly
(Contours in feet TVDSS) derived olistostromal limestones. Minor, thin turbidite and lobe sediments are
locally developed.
(Modified after Cutts PL, 1991)

INTERPRETATIVE STRUCTURAL CROSS SECTION


UK 16/29-2X NOR 15/12-2
Feet
W E

Hordaland and Nordland Groups

5000 Chalk Group


Montrose and Rogaland Groups

10000 JURASSIC Cromer Knoll Group


Zechstein Group
TRIASSIC

0 1 2 3 4 km

REPRESENTATIVE WELL SECTION - 16/29-2X

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

16/29a-2X Basinal marine mudstones with minor thin


distal turbidite sandstones. Laterally extensive,
8600

non-reservoir horizon.

(
Frac. ) Stacked sequence of thickly bedded, high
(
density, turbidite sandstones with minor
) interbedded basinal and interturbidite marine
mudstones.
(
)
Frac. Geometry
M
Sheet geometry sandbodies composed of
stacked and coalesced broad elongate sand
units. Interbedded mudstones of variable
lateral extent, rarely forming extensive
8700

sheetlike vertical permeability barriers.

( and K
MAUREEN FORMATION

) and K of sandstones generally good, locally


MONTROSE GROUP

very good. Values locally severely reduced in


calcite cemented sandstones.
PALEOCENE

(
Frac. )
8800

Frac.
(
)
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
16/29-5
16/29-3X 10000

Maureen 16/29-1 1000

ROGALAND GP.
LISTA FM.
16/29-2X

100

PERMEABILITY (md.)
MONTROSE GP.
MAUREEN FM.
10

CHALK GP.
0
1 1

100

200 feet 1. EKOFISK FORMATION


0.1

0.01
0 10 20 30 40
The sediments of the Maureen field form a thick, stacked sequence of broad, elongate
turbidite sandstones which thin into distal turbidite and lobe sediments and interdigitate with POROSITY (per cent.)

basinal mudstones. The complex sandbody geometry suggests that fluid migration paths are
likely to be fairly tortuous, although the thin interbedded mudstones are unlikely to be Porosity and permeability values are typically good, ranging from
laterally extensive. 20 to 25 per cent. and 100 to 1000 md respectively.
However, more extensive sheet geometry mudstones deposited in periods of reduced In general, burial depth has controlled the regional variations in
clastic input may form vertical permeability barriers, for example, the mudstone at the base maximum porosity values in the Montrose Group in the Maureen
of Unit 2. field, and the relatively deeply buried lower Maureen reservoir
Carbonate concretions and limestones do not form widespread permeability barriers, but sandstones exhibit relatively low porosities, compared to those of
may act as local baffles to vertical flow. nearby fields such as Andrew and Balmoral.
In Maureen the trends in porosity and permeability are controlled
by grain size, detrital clay and mica content. Diagenesis is a minor
factor, and the porosity and permeability values of the clean,
generally massive, turbidite sandstones are high.
The secondary factors which reduce reservoir quality in the field
are the slight to moderate compaction, as reflected in the tangential
to slightly sutured grain contacts, the common quartz overgrowths,
the locally important ferroan calcite concretions and, to a lesser
extent, the authigenic clays. The authigenic clays, however, are
mostly in situ and grain replacive or occur as thin tangential grain
coatings which have little influence on intergranular pore dimensions
FLUID PROPERTIES and hence relatively little influence on reservoir quality. The
authigenic chlorite, which occurs mostly as patchy, tiny crystals
The oil has a medium gravity, low shrinkage factor and low GOR. The oil to water apparently floating within the intergranular pores, may be moved by
viscosity ratio is approximately 2 giving marginally favourable displacement characteristics. rapidly migrating pore fluids, possibly causing occlusion of narrow
pore throats.

1.4
500 B0 2.0
GOR
400 1.3
RESERVOIR PRESSURE
GOR (scf/stb)

1.5
B0 (rb/stb)

300
0 (cp)

1.2 The reservoir is normally pressured with a regional aquifer


pressure gradient to surface of 0.443 psi/ft. The initial oil water
200
1.0 contact is at approximately 8680 feet TVDSS.
1.1
100
0
7800
@ 242F
0 1.0 0.5
0 1000 2000 3000 4000 5000

PRESSURE (psig) 8000

8200
DEPTH (feet TVDSS)

0.293 psi/ft

8400

8600

CONTROLS ON RECOVERY OWC @ 8680 ft TVDSS

The recovery factor is expected to be very good, resulting from:- 8800


0.443 psi/ft

good permeabilities in the reservoir sands


good pressure maintenance from both natural water influx, water injection and gas lift 9000
3500 3600 3700 3800 3900 4000
high structural relief
production to high water cuts INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Water Depth 314

UNITED KINGDOM
(feet)
Platform Type steel gravity base

Maureen
Function drilling/production/
accommodation
Jacket weight 42750
(tonnes)
Total Weight (including ballast) 111750
(tonnes)

Accommodation 150

Well slots 24
Wells 19

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 80000


(bbl/day)

Oil Export tanker loading

(A Phillips Petroleum Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 80

Net Present Value 1,068.98 582.01 393.50 297.35 219.45 129.28 29.47
Net Present Value (Deflated) 1,234.30 551.48 291.70 161.06 56.65 -61.71 -186.93

Average Annual Daily Liquid Rate (Mbbl/day)


Profit/Inv Ratio 1.24 0.85 0.65 0.53 0.42 0.28 0.07
Profit/Inv Ratio (Deflated) 0.69 0.38 0.22 0.13 0.05 -0.06 -0.21
NPV/Unit Oil Equiv. 4.84 4.33 3.87 3.48 3.05 2.30 0.77 60
NPV/Unit Oil Equiv. (Deflated) 3.84 2.76 1.90 1.24 0.51 -0.71 -3.12

Payback Year 1985


Nominal Rate Of Return % 22.17
Real Rate Of Return % 13.31

Post Corporation Tax 40

Net Present Value 656.91 339.90 214.27 149.67 97.15 36.26 -30.77
Net Present Value (Deflated) 655.20 206.16 34.13 -52.15 -120.69 -197.37 -275.52
Profit/Inv Ratio 0.76 0.49 0.35 0.27 0.19 0.08 -0.08
Profit/Inv Ratio (Deflated) 0.36 0.14 0.03 -0.04 -0.11 -0.19 -0.31
NPV/Unit Oil Equiv. 2.97 2.53 2.10 1.75 1.35 0.64 -0.80 20
NPV/Unit Oil Equiv. (Deflated) 2.04 1.03 0.22 -0.40 -1.10 -2.27 -4.59

Nominal Rate Of Return % 17.37


Real Rate Of Return % 8.74

Earnings Data
0
Gross Revenue 3,051.90 1,921.58 1,486.64 1,262.44 1,078.04 858.85 601.47 1980 1985 1990 1995 2000
Royalty 244.44 153.54 118.13 99.83 84.78 66.93 46.09
Petroleum Revenue Tax 212.78 127.94 96.53 80.73 67.98 53.16 36.33 Year
Corporation Tax 412.06 242.11 179.22 147.67 122.30 93.01 60.24
Capital Expenditure 863.00 688.34 608.13 562.23 521.32 467.77 395.02
Operating Costs 662.70 369.75 270.35 222.30 184.51 141.71 94.57

Gross Revenue (Deflated) 4,598.81 2,963.21 2,319.32 1,983.29 1,704.44 1,369.63 970.92
Royalty (Deflated) 364.90 233.13 181.02 153.84 131.35 104.45 72.69
Petroleum Revenue Tax (Deflated) 297.48 184.15 141.31 119.47 101.66 80.69 56.39
Corporation Tax (Deflated) 579.10 345.32 257.57 213.21 177.33 135.65 88.59
Capital Expenditure (Deflated) 1,801.46 1,469.19 1,312.47 1,221.53 1,139.69 1,031.44 882.17
Operating Costs (Deflated) 900.68 525.26 392.82 327.39 275.09 214.76 146.60

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
ECONOMIC INDICATORS FROM 1/1/1996 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
1978 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -61.8 0.0 0.0 0.0
Pre Corporation Tax 1979 0.0 0.0 0.0 40.0 0.0 0.0 0.0 -40.0 -422.6 0.0 0.0 0.0
1980 0.0 0.0 0.0 150.0 0.0 0.0 0.0 -150.0 -1294.5 0.0 0.0 0.0
Net Present Value -52.00 -42.28 -37.41 -34.49 -31.81 -28.18 -23.03 1981 0.0 0.0 0.0 170.0 0.0 0.0 0.0 -170.0 -1153.1 0.0 0.0 0.0
Net Present Value (Deflated) -54.11 -44.08 -39.04 -36.03 -33.26 -29.51 -24.18 1982 0.0 0.0 0.0 200.0 0.0 0.0 0.0 -200.0 -1121.6 0.0 0.0 0.0
NPV/Unit Oil Equiv. -8.33 -7.18 -6.56 -6.18 -5.82 -5.31 -4.55 1983 116.5 0.0 27.9 170.0 0.0 0.0 0.0 -81.4 -389.4 16.0 0.0 0.0
1984 611.0 28.7 58.3 50.0 54.4 0.0 83.1 419.6 1777.5 73.1 0.0 0.0
Post Corporation Tax 1985 590.3 60.8 58.9 15.0 34.4 0.0 95.2 421.2 1572.2 76.1 0.0 0.0
1986 271.1 40.0 58.7 0.0 26.9 110.1 176.9 35.5 115.9 75.1 0.0 0.0
Net Present Value -57.02 -47.38 -42.52 -39.61 -36.94 -33.30 -28.13 1987 296.2 22.3 55.9 0.0 5.0 68.4 95.7 144.6 422.0 72.0 0.0 0.0
Net Present Value (Deflated) -59.00 -49.05 -44.05 -41.05 -38.28 -34.54 -29.20 1988 189.4 18.1 51.7 0.0 -120.6 74.7 -27.9 165.5 437.5 61.0 0.0 0.0
NPV/Unit Oil Equiv. -9.14 -8.04 -7.46 -7.10 -6.76 -6.28 -5.56 1989 214.9 14.0 44.7 8.0 69.6 43.4 127.0 35.2 80.7 53.0 0.0 0.0
1990 231.3 17.2 40.1 20.0 87.7 22.8 127.6 43.5 85.6 48.0 0.0 0.0
Earnings Data 1991 166.9 16.6 36.1 10.0 47.2 26.5 90.3 30.6 50.8 40.0 0.0 0.0
1992 107.5 12.7 30.3 20.0 8.1 23.2 43.9 13.2 19.3 27.0 0.0 0.0
Gross Revenue 71.65 67.51 65.26 63.86 62.52 60.63 57.74 1993 78.6 8.4 25.7 5.0 0.3 18.1 26.7 21.3 27.6 19.0 0.0 0.0
Royalty -4.34 -3.18 -2.61 -2.27 -1.96 -1.54 -0.95 1994 60.3 6.0 24.1 0.0 0.0 12.0 18.0 18.3 21.7 16.0 0.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1995 46.3 4.1 22.4 0.0 0.0 8.0 12.1 11.8 12.7 12.0 0.0 0.0
Corporation Tax 5.02 5.09 5.12 5.13 5.13 5.13 5.11 Total To Start Of Discounting ( 1/JAN/1996)
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2980.3 248.8 534.7 863.0 212.8 407.0 868.6 713.9 180.4 214.7 0.0 0.0
Operating Costs 127.99 112.97 105.28 100.61 96.28 90.34 81.72
1996 32.8 2.5 20.7 0.0 0.0 5.0 7.5 4.6 4.4 8.2 0.0 0.0
Gross Revenue (Deflated) 71.45 67.29 65.04 63.63 62.28 60.38 57.49 1997 25.0 1.3 20.0 0.0 0.0 2.1 3.4 1.5 1.3 5.8 0.0 0.0
Royalty (Deflated) -4.62 -3.42 -2.82 -2.47 -2.15 -1.71 -1.10 1998 13.9 0.7 14.2 0.0 0.0 0.4 1.0 -1.4 -1.2 3.1 0.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 4.88 4.97 5.00 5.02 5.03 5.03 5.02 1999 0.0 -8.8 73.1 0.0 0.0 -2.4 -11.3 -61.8 -48.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 130.18 114.79 106.90 102.12 97.69 91.60 82.78 Total 71.7 -4.3 128.0 0.0 0.0 5.0 0.7 -57.0 -44.0 6.2 0.0 0.0

These cash flows include Maureen and Moira fields


16/2b Fina 16/2a Marathon 16/3d Enterprise 15/2 SUMMARY
1 16/3a Marathon Amoco
0 5 km 1 The Miller field is located in Blocks 16/7b and 16/8b some 270 km
EAST BRAE 2 5
northeast of Aberdeen in the UK sector of the Northern North Sea. Miller
3
E. Prospect lies along the western margin of the South Viking Graben. The field was
4,4A 7 discovered in 1983 by Well 16/7b-20 which encountered oil in
6
16/1 16/2c
submarine fan sands of Jurassic age. The Annex B was approved in
Kerr McGee Kerr McGee 16/3b Marathon October 1988 and Miller went onstream in June 1992, with initial daily
16/6a 16/7a 11 16/8c oil production rates reaching 134,000 stb/day. Gas production also
Conoco Marathon NORTH Marathon started in July 1992 and has broadly mirrored oil output, peaking in
16 30
BRAE 13 1994 at 214 MMcfd.
SEDGEWICK 19 BEINN
18 5 Originally 30 wells were planned on the field; this was subsequently
14 B
3 2 1 reduced to 27.
31 17 KINGFISHER Oil export is through South Brae to Cruden Bay via the Forties
2
4 WEST7 8,8a system and sour gas is transported by a dedicated pipeline and sold
BRAE 9 16/7b 9z
BP 28 4 1 direct to the North of Scotland Hydro Electric Board .
32
27 6,7 The current interests in Block 16/7b and Block 16/8b in per cent.
20 1 15/5 Norsk Hydro
3 29 are:-
22 MILLER
23
CENTRAL 15
BLOCK 16/7b
24 A 12
4,4A 6 BP Petroleum Development Ltd * 100.00
BRAE 2
13
SOUTH 25 5,5d
A 3 BLOCK 16/8b
21
12 10 Conoco UK Ltd 50.00
10 26
8
1 KM 16/8b 16/8a SELE Enterprise Oil PLC 30.00
11 33 7c Conoco Shell Santa Fe Exploration (UK) Ltd 20.00
5 3 10 16/13a BP
12 2,2a
ENOCH 5 4 operator *
13
1 16/12a 16/13b
16/11a BP Lasmo 16/12b KM Phillips 3 4
On the basis of the most recent unitisation agreement in August
1987, 60 per cent. of the field's reserves are attributed to Block 16/8b
and 40 per cent. lie in Block 16/7b.

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Miller field is situated very close to the Brae complex of fields
which lie to the west and north. The reservoir section itself is of a similar
Oil Gravity (API) 39.2 age to that of South Brae. There is aquifer communication between
Gas Oil Ratio (scf/stb) 1900 Miller and South Brae and reservoir pressure in Miller has been reduced
Bubble Point Pressure, Pb (psig) 4815 as a result of production from Brae. There may also be aquifer
Formation Volume Factor at Pi (rb/stb) 2.0 communication with Central Brae.
Reservoir Pressure, Pi (psig) 7320
at Datum Depth of (ft TVDSS) 13420
Reservoir Temperature (F) 255

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brae Formation
Geological Age Upper Jurassic
Porosity Range (per cent.) 10-17
Permeability Range (md) 1-1000
Connate Water Saturation (per cent.) 10-50
Oil Water Contact (ft TVDSS) 13420
Depth to Top of Structure (ft TVDSS) 13080

Reserves

Total Oil Reserves (MMstb) 270


Total Wet Gas Reserves (Bcf) 323 FIELD DESCRIPTION
Est. Oil Production to 31.12.95 (MMstb) 162
Est. Gas Production to 31.12.95 (Bcf) 249 The Miller field is a low relief accumulation with a combination of dip
Remaining Oil Reserves (MMstb) 108 and structural closure towards the southwest, east and north. Closure
Remaining Gas Reserves (Bcf) 74 towards the northwest is associated with stratigraphic pinchout of the
reservoir sands. Submarine fan sediments of the Brae Formation of
Production Upper Jurassic age constitute the reservoir. Reservoir quality is
generally good to very good.
Water depth (feet) 338 The field contains a light oil which is sour, containing H2S and up to
Production Start Date June 1992 22 per cent. CO2 by volume. The field was initially overpressured by
Peak Production (Oil) (stb/day) 134,000 approximately 1400 psi but the reservoir pressure has declined since
Platform(s) 1 steel jacket the start of production from South Brae to the west. The UK's first full
Number of Wells 27 scale incremental oil recovery scheme (IOR)is to be employed using a
Oil Export Cruden Bay via S.Brae water alternating gas injection (WAG) to boost oil recovery. Six wells will
and Forties system be converted, four to WAG injection and two to gas lift. Installation was
to begin in October 1995 with the first injection expected in early 1997.
Gas & NGL Export Boddam power station
It is anticipated that this WAG project will extend the life of the field to
via St.Fergus.
beyond 2000.
Oil is exported via South Brae, and gas is exported via a dedicated
pipeline to St Fergus and then on to the Boddam power station.
The reservoir has a maximum oil column of 360 feet, above the oil
water contact at 13420 feet TVDSS.
Both the Enoch/Sele discovery, which straddles the UK-Norway
median line, and Kingfisher (formerly called Miller East) may be
developed as subsea tiebacks to Miller (although Brae is an alternative).
STRUCTURE AND STRATIGRAPHY

MILLER In the Miller field, the reservoir is composed of submarine fan

UNITED KINGDOM
TOP BRAE sandstones of the Brae Formation. These sediments pass laterally into
DEPTH STRUCTURE mudstones of the Kimmeridge Clay Formation towards the axial part of the
South Viking Graben in the east, and overlie mudstones of the Kimmeridge

Miller
0 2 km
Clay and Heather Formations. The hot shales of the upper part of the
(Contours in metres TVDSS) Kimmeridge Clay Formation in part form the reservoir seal. The Kimmeridge
Clay Formation is also the oil source. The field lies in a basinal half graben
contained within the South Viking Graben. The basin is abruptly terminated
to the west by the Devonian basement of the Fladen Ground Spur and rises
3800 4200
0
gently eastwards towards the Vestland Arch. The field has an oval shape
390
with a northwest-southeast trend, and has a maximum oil column of about
U
T
360 feet, above an oil-water contact at 13420 feet TVDSS. Trapping is by a
O
28 OWC 4100 combination of dip, structure and stratigraphic pinch out with deterioration

H
0

NC
6,7

400
of reservoir quality to the northwest.

PI
IC
APH
4000

STRATIGR
20

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT


4100

A Miller reservoir sandstones were deposited within a submarine fan


4100 24
2
system, sourced via a conduit from the west. Rapid subsidence along the
western graben margin fault zone lead to the development of a series of
4050 400 submarine fans forming coalescing sediment wedges comprising fining-
0
3
upwards mega-sequences shed from the Fladen Ground Spur. In the Miller

00
area, the reservoir comprises submarine fan sandstones deposited from

41
5,5a
25 50 high density turbidity currents. The sandstones are generally structureless
40 and clean, although mudstone laminae become more common towards the
410
outer margins of the fan complex where distal, outer fan/fan fringe, thin
0
bedded turbidite deposits are present. This rapid shale-out where
sandstones pass laterally into interbedded sandstones and mudstones and
420
0
ultimately into mudstones, has generated the stratigraphic trap to the
northwest of the Miller field.
16/7b 16/8b

(Modified after McClure N M and Brown A A, 1990)

INTERPRETATIVE STRUCTURAL CROSS SECTION


16/8b-2
Feet
W E

TERTIARY
5000

PALEOCENE

10000
CRETACEOUS

15000 Old Red Sandstone

and older JURASSIC

Zechstein Salt
20000
TRIASSIC and older

0 4 km

REPRESENTATIVE WELL SECTION - 16/8b-2


DEPTH (feet)

CORE CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 5 25 45 -15

Stacked and amalgamated, high density


turbidite sandstones with minor
hemipelagic and turbiditic mudstones.

Geometry
13450

() Lobate to sheetlike sand bodies with minor,


thin interbedded mudstones of variable
lateral extent.
16/8b-2
and K
of sandstones moderate, but poor where
13500

calcite cemented. K good to locally


moderate, very poor where calcite
cemented.
BRAE FORMATION
UPPER JURASSIC
HUMBER GROUP

Mudstones may locally form baffles to


vertical flow.
13550
13600
13650
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

NW
10000
16/7b-20
Kimmeridge
Clay Fm.

Miller

Unit 1
1000

Brae Formation

B
Unit 2
100

C
D
NE

PERMEABILITY (md.)
Unit 3 16/8b-2

S 10

16/8b-3

A
1

0.1
0

100

200 feet
0.01
0 10 20 30

POROSITY (per cent.)

In the Miller area, the Brae Formation may be subdivided into three members (Upper, The reservoir in the Miller field is dominated by structureless,
Middle and Lower) based on gross lithological characteristics. The Middle member clean, high density turbidite sandstones which are moderately well
constitutes the main Miller reservoir and can be subdivided into four layers based on sorted and generally fine to medium grained. Porosities are
chronostratigraphic and wireline log correlation (A-D). The upper layer A, is not present generally poor to good, typically ranging from 10 per cent. to 17 per
throughout the field. Sandstones within each layer are likely to be laterally continuous, cent. and permeabilities are moderate to very good, typically ranging
forming sheetlike bodies locally containing thin mudstones of restricted lateral extent. from 1 md to 1000 md.
Laterally extensive mudstone horizons reflecting periods of relative inactivity on the fan The thinner bedded sandstones associated with mudstones are
surface are recognised between layers B and C and between C and D and act as vertical likely to have lower porosity and permeability values due to
permeability barriers. Net to gross ratio values are generally high for the main Miller increased cementation and compaction.
reservoir (Unit 2). The zonation into four layers by the recognition of laterally persistent The main control on porosity and permeability is therefore the
mudstone dominated units is important in the prediction of pressure depletion patterns. distal and lateral fining into more argillaceous/finer grained facies,
Significant horizontal permeability barriers are not thought to be present. where diagenesis is likely to have been more severe and primary
porosities lower.

FLUID PROPERTIES RESERVOIR PRESSURE

The Miller field contains a light oil of 39 degrees API which is sour and contains up to 22 Relative to a hydrostatic gradient to surface of 0.44 psi/ft, the
per cent. (by volume) CO2 and small amounts of H2S. Significant volumes of NGL are Miller field was initially 1400 psi overpressured. The reservoir
present in the associated gas. Analysis of a fluid sample from DST 4 of Well 16/8b-2 has pressure has declined since production started from South Brae, to
been used to derive the plot below. the west.

2000 2.2 0.5 11000


GOR

B0
1500 1.9

12000
GOR (scf/stb)

B0 (rb/stb)

0.26 psi/ft
0 (cp)

1000 1.6 0.25


DEPTH (feet TVDSS)

0
13000
500 1.3

OWC @ 13420 ft TVDSS


@ 255 F
0 1.0 0.0
0 2000 4000 6000 8000 14000
PRESSURE (psig) 0.44 psi/ft

15000

5000 6000 7000 8000 9000

CONTROLS ON RECOVERY INITIAL RESERVOIR PRESSURE (psig)

A high recovery factor is expected for the Miller field. The porosity and permeability of
the Brae Formation sands which constitute the reservoir in the field are generally good. The
vertical permeability profile of the reservoir section is quite uniform which will give good
vertical sweep efficiency during waterflooding. The relatively low viscosity of the reservoir oil
and the good lateral continuity of the reservoir sands will also lead to high recovery
efficiencies. The implementation of a WAG scheme should enhance reserves further. An
overall recovery factor of some 50 per cent. is expected.
FACILITIES SPECIFICATIONS

Water Depth 338

UNITED KINGDOM
(feet)
Platform Type steel piled jacket

Miller
Function drilling/production/accommodation

Jacket Weight 17500


(tonnes)
Total Weight of Structures 52000
(tonnes)

Accommodation 200

Well Slots 40
Wells Planned 18 producers
9 water injectors

PROCESSING AND EXPORT SPECIFICATIONS

Oil throughput 115,000


(bbl/day)

Gas Throughput 215


(MMscf/day)

Oil Export 14" x 8 km pipeline to South Brae


and from there into the Forties
system
Gas Export 30" x 242 km pipeline to St Fergus

(A BP Photograph)

@
@@@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
150 400
Pre Corporation Tax
Liquid
Net Present Value 880.94 482.33 306.68 211.01 129.88 31.10 -86.00
Gas

@@@


Net Present Value (Deflated) 712.78 299.83 124.17 30.33 -48.07 -141.69 -248.93
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 0.69 0.44 0.31 0.22 0.14 0.04 -0.12 125
Profit/Inv Ratio (Deflated) 0.45 0.22 0.10 0.03 -0.04 -0.14 -0.27
NPV/Unit Oil Equiv. 2.72 2.14 1.67 1.31 0.92 0.27 -0.99 300
NPV/Unit Oil Equiv. (Deflated) 2.16 1.30 0.66 0.18 -0.33 -1.17 -2.75
100
Payback Year 1995
Nominal Rate Of Return % 16.13
Real Rate Of Return % 10.73
75 200
Post Corporation Tax

@@@


Net Present Value 485.69 226.66 107.71 41.97 -14.20 -82.93 -164.36
Net Present Value (Deflated) 325.02 48.70 -71.43 -135.95 -189.88 -254.02 -326.23
Profit/Inv Ratio 0.38 0.21 0.11 0.04 -0.02 -0.10 -0.22 50
Profit/Inv Ratio (Deflated) 0.21 0.04 -0.06 -0.11 -0.17 -0.24 -0.35
NPV/Unit Oil Equiv. 1.50 1.01 0.59 0.26 -0.10 -0.71 -1.89 100
NPV/Unit Oil Equiv. (Deflated) 0.98 0.21 -0.38 -0.82 -1.30 -2.09 -3.60
25
Nominal Rate Of Return % 11.46
Real Rate Of Return % 6.13

Earnings Data
0 0
Gross Revenue 3,331.76 2,300.73 1,866.41 1,631.46 1,431.39 1,184.06 877.12 1990 1995 2000 2005
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 32.13 21.24 16.72 14.31 12.28 9.81 6.84 Year
Corporation Tax 395.26 255.67 198.97 169.04 144.08 114.04 78.36
Capital Expenditure 1,275.40 1,094.09 1,003.97 950.19 900.81 833.96 738.66
Operating Costs 1,143.30 703.07 539.05 455.95 388.42 309.19 217.62

Gross Revenue (Deflated) 3,384.07 2,351.76 1,914.37 1,676.98 1,474.33 1,223.09 909.98
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 32.14 21.25 16.73 14.32 12.29 9.82 6.84
Corporation Tax (Deflated) 387.76 251.14 195.60 166.28 141.81 112.33 77.30
Capital Expenditure (Deflated) 1,576.86 1,361.56 1,253.86 1,189.37 1,129.99 1,049.35 933.86
Operating Costs (Deflated) 1,062.28 669.12 519.61 442.97 380.13 305.62 218.20

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% CASH FLOW REPORT
Pre Corporation Tax Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Net Present Value 537.03 570.37 579.09 581.67 582.28 580.32 571.81 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Net Present Value (Deflated) 577.45 592.65 593.93 592.61 589.95 584.11 571.10
NPV/Unit Oil Equiv. 4.46 5.13 5.44 5.62 5.78 5.99 6.26 1988 0.0 0.0 0.0 35.0 0.0 0.0 0.0 -35.0 -92.5 0.0 0.0 0.0
1989 0.0 0.0 0.0 210.0 0.0 0.0 0.0 -210.0 -481.0 0.0 0.0 0.0
Post Corporation Tax 1990 0.0 0.0 0.0 410.0 0.0 0.0 0.0 -410.0 -806.8 0.0 0.0 0.0
1991 0.0 0.0 0.0 375.0 0.0 0.0 0.0 -375.0 -623.8 0.0 0.0 0.0
Net Present Value 223.05 275.91 295.27 304.55 311.54 318.63 323.89 1992 248.9 0.0 70.8 125.0 0.0 0.0 0.0 53.1 77.3 57.0 67.0 0.0
Net Present Value (Deflated) 273.38 307.37 318.88 323.96 327.43 330.24 330.38 1993 565.6 0.0 104.2 30.0 0.0 0.0 0.0 431.4 560.5 121.0 190.0 0.0
NPV/Unit Oil Equiv. 1.85 2.48 2.77 2.94 3.09 3.29 3.55 1994 580.5 0.0 108.9 30.0 0.0 0.0 0.0 441.6 522.9 134.0 214.0 0.0
1995 585.9 0.0 108.2 30.0 0.0 81.3 81.3 366.5 392.2 132.0 211.0 0.0
Earnings Data Total To Start Of Discounting ( 1/JAN/1996)
1,981.0 0.0 392.1 1,245.0 0.0 81.3 81.3 262.6 -451.1 162.1 248.9 0.0
Gross Revenue 1,350.76 1,239.95 1,182.62 1,147.62 1,114.89 1,069.65 1,003.04
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1996 530.5 0.0 103.8 20.0 32.6 126.3 158.9 247.8 238.4 120.0 132.0 0.0
Petroleum Revenue Tax 32.13 31.37 30.95 30.67 30.40 30.02 29.40 1997 341.3 0.0 90.5 10.4 -0.5 105.0 104.6 135.8 116.4 74.0 58.0 0.0
Corporation Tax 313.99 294.46 283.82 277.12 270.74 261.69 247.92 1998 211.1 0.0 82.9 0.0 0.0 63.0 63.0 65.2 49.7 46.0 13.0 0.0
Capital Expenditure 30.40 29.18 28.51 28.08 27.67 27.08 26.17 1999 130.3 0.0 75.8 0.0 0.0 27.5 27.5 27.0 18.3 28.0 0.0 0.0
Operating Costs 751.20 609.02 544.08 507.19 474.54 432.23 375.66 2000 82.3 0.0 70.9 0.0 0.0 6.9 6.9 4.5 2.7 17.0 0.0 0.0
2001 55.4 0.0 67.4 0.0 0.0 -4.6 -4.6 -7.5 -4.0 11.0 0.0 0.0
Gross Revenue (Deflated) 1,285.14 1,184.08 1,131.61 1,099.50 1,069.44 1,027.80 966.29 2002 0.0 0.0 62.0 0.0 0.0 -10.2 -10.2 -51.8 -24.8 0.0 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2003 0.0 0.0 61.2 0.0 0.0 0.0 0.0 -61.2 -26.1 0.0 0.0 0.0
Petroleum Revenue Tax (Deflated) 32.14 31.39 30.96 30.69 30.42 30.03 29.41 Remain
Corporation Tax (Deflated) 304.06 285.28 275.06 268.64 262.53 253.87 240.71 2004 0.0 0.0 136.9 0.0 0.0 0.0 0.0 -136.9 -51.9 0.0 0.0 0.0
Capital Expenditure (Deflated) 30.00 28.81 28.15 27.74 27.33 26.76 25.86
Operating Costs (Deflated) 645.54 531.23 478.56 448.47 421.73 386.89 339.92 Total 1,350.8 0.0 751.2 30.4 32.1 314.0 346.1 223.0 318.9 108.0 74.1 0.0

These cash flows include Miller field only


22/11 22/12a BP 22/12b BP 22/13b Amoco SUMMARY
Ent. 7 22/13a
Amoco The Montrose and Arbroath fields are located in Quadrant 22 some
22/16a 22/17 Amoco 22/18 Amoco 190 km due east of Aberdeen in the UK Sector of the Northern North
BP Sea. The Arbroath field was discovered in 1969 by Well 22/18-1 and the
Montrose field was discovered two years later by Well 22/18-2. Both
wells encountered oil in Paleocene sands of the Forties Formation.
1 MONTROSE Development of Montrose and Arbroath began in 1973 and 1987
1 3
A 2
respectively. First oil from Montrose was produced in July 1976 and
peak oil production was achieved in 1979. The Arbroath field came on
production in April 1990 only after it was proved to be a separate
structure from Montrose. Oil is piped to the Cruden Bay terminal via the
Forties field. Gas is flared.
5 The current interests in the Montrose and Arbroath fields in per cent.
are:-
ARBROATH
Amoco UK Exploration Co. * 30.77
1 4
2 Enterprise Oil plc 41.02
A Amerada Hess Ltd 28.21
22/16b 11,12
Deminex operator *

1
22/21 22/22a Amoco 22/23a Amoco
Shell
MARNOCK
2
3
0 5 km
ARKWRIGHT

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties MONTROSE ARBROATH The Montrose and Arbroath fields are located on the Forties-
Montrose high at the northern end of the Central Graben. The nearest
hydrocarbon accumulation is the Marnock gas condensate discovery,
Oil Gravity (oAPI) 39 39 22 km to the southeast in Block 22/24. The Nelson and Forties fields,
Gas/Oil Ratio (scf/stb) 600-800 500 30 and 40 km to the northwest respectively, contain oil in Paleocene
Bubble Point Pressure, Pb (psig) 2398-2737 1990 sandstones. The Everest Paleocene field contains gas condensate and
Formation Volume Factor at Pi (rb/stb) 1.4-1.5 1.3 lies 45 km to the northeast. The Gannet oil field lies 35 km to the
southwest.
Oil Compressibility (vol/vol/psi) 24-46 x 10-6 16 x 10-6
Original Reservoir Pressure, Pi (psig) 3795 3100
At Datum Depth of (ft TVDSS) --------------------------------- 8150 ------------------------------
Reservoir Temperature (F) ---------------------------------- 255 -------------------------------

Rock Properties

Rock Type --------------------------- Sandstone ------------------------


Stratigraphic Unit ---------------------- Forties Formation -------------------
Geological Age ---------------------------- Paleocene -------------------------
Porosity Range (per cent.) 18-27 23-27
Permeability Range (md) 1-300 1-1000
Connate Water Saturation (per cent.) 25-30 20-60
Oil Water Contact (ft TVDSS) 8235-8295 8256
Depth to Top of Structure (ft TVDSS) 8100 8150

Reserves FIELD DESCRIPTION

Total Oil Reserves (MMstb) 99 135 The Montrose field is a low relief, double anticlinal structure with dip
Est. Oil Production to 31.12.95 (MMstb) 85 71 closure. The reservoir comprises Paleocene sandstones and is sealed
Remaining Oil Reserves (MMstb) 14 64 by shales of the Sele Formation. Five lithostratigraphic layers are
identified in the sequence, deposited by current and related gravity
Production driven turbidity processes during the progradation of a submarine fan
system. Reservoir properties are good in the uppermost layer but
Water Depth (feet) 289 308 decline with depth in the other layers. The oil gravity is 39o API and the
Production Start Date July 1976 April 1990 gas oil ratio varies from 600 to 800 scf/stb between the two lobes.
Peak Production (Oil) (stb/day) 28000 35000 Production of oil from Montrose began in 1976 and to date some 85 per
Platform(s) Steel jacket Steel jacket cent. of reserves have been produced.
Number of Wells -Producers 15 11 An active water drive is supplemented by peripheral water injection
from six wells. Excess gas is flared. Submersible pumps have been
Water injectors 6 6
used on Montrose wells to allow production at high water cuts.
Gas injectors
Arbroath is a low relief, irregular lobate structure with virtually no
Oil and NGL Export Pipeline to Cruden Bay
faulting and dip closure in all directions. Reservoir porosity and
via Forties oil field
permeability are good. Development involves a minimal facilities, not
Gas Export Excess flared
normally manned steel platform, use of Montrose production facilities
and both water injection and gas lift. The field was put on production in
April 1990. Both oil and gas are transported to Montrose. Oil is then sent
with Montrose output to Forties, whilst gas is processed and piped back
to Arbroath for injection.
A small oil accumulation, named Arkwright, exists in Block 22/23a to
the south. The discovery will be developed through Montrose/Arbroath
facilities with a possible start-up in 1996.
Montrose & Arbroath
22/17 22/18 STRATIGRAPHY AND STRUCTURE

MONTROSE AND ARBROATH The Montrose and Arbroath fields contain hydrocarbons in the Upper

82

UNITED KINGDOM
TOP PALEOCENE SANDSTONE Paleocene, Forties Formation. The reservoir sands are overlain by Upper

00
DEPTH STRUCTURE Paleocene mudstones of the Rogaland Group (Balder and Sele Formations)
8200
which form the seal. The fields are situated on the Forties-Montrose High,
815 comprising two main culminations on a north-south trending, low relief anticlinal
0
structure.
1 2 The Arbroath field contains oil in Paleocene sandstones below 8150 feet
TVDSS with 100 gross feet of oil bearing sandstones above the OWC in the
OWC 8235
00 discovery well. The contact was found at 8256 feet TVDSS in this well. The
82 0 A Subsea
815 81
00 Montrose field has a maximum oil column of 190 feet. The Paleocene reservoir
815
0 is found below approximately 8000 feet TVDSS. The structural development
MONTROSE

82
was probably similar to that of the Forties field with closure resulting from

00
differential compaction of sediments draped over the Forties-Montrose High. No
8200
OWC 8295 8150 significant faulting is recorded at the reservoir level.
Subsea
8150
825
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
0

82 5 The sediments of the Forties Formation were deposited mainly by turbidity


0 currents on a submarine ramp, during the Late Paleocene. Sands were sourced
8200 from the northwest and were deposited mainly as channel sequences at
Montrose, and more sheet like lobe sands at Arbroath. The sediments can be
subdivided into four main facies associations as follows:
A is characterised by interbedded sandstones and mudstones. Sharp-based
ARBROATH fine to medium grained sandstones with parallel and current ripple lamination
0
8 25 are interbedded with thin, grey, laminated mudstones. These sediments are
8200 1 interpreted as proximal classical turbidites.
T1-3 B comprises mainly sandstone with minor pebbly sandstone and rare, thin
mudstone interbeds. The sandstones are generally massive with sparse fluid
OWC 8256
0 Subsea escape structures and are interpreted as high density turbidite sandstones
5
deposited in broad, shallow channels.
82

81
00

C is dominated by grey laminated sandstones with thin, interbedded, sharp


based sandstones. The sandstones are commonly parallel or current ripple
laminated and are interpreted as distal classical turbidites.
0 3 km D is characterised by waxy, greenish grey, bioturbated mudstone interpreted
as hemipelagic deposits.
(Contours in feet TVDSS) The Forties Sandstone Member is dominated by facies associations A and
B, and forms the main reservoir. The underlying Forties Shale Member
(After: Fowler)
comprises mainly facies associations D and C and to the east, passes laterally
into the basinal mudstones of the Lista Formation.

INTERPRETATIVE STRUCTURAL CROSS SECTION


22/17-1 22/18-1
Feet
NNW SSE

4000

Nordland Group + Lark Formation


6000

Horda Formation
8000
Rogaland + Montrose Groups

10000 Chalk Group


Cromer Knoll Group

PRE - JURASSIC
12000 0 5 km
FORTIES - MONTROSE HIGH

REPRESENTATIVE WELL SECTION - 22/17-1


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

22/17-1 LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

High density turbidite sandstones deposited in


rubble coalescent submarine channels. Minor low
density turbiditic sandstones and mudstones
M
in upper part.

Py Geometry
Broad, elongate sandbodies with minor thin
8300

sheetlike sandstones and mudstones in the


M upper part. Sandbodies amalgamated to form
rubble and thick, sheetlike sandbody.
loose sand
and K
Porosities are generally good and permeabilities
are mainly moderate, locally poor or good. Thin
( (
) ) M mudstones are likely to be laterally impersistent
and therefore will not form significant restrictions
to vertical flow.
MONTROSE GROUP
FORTIES FORMATION

M
UPPER PALEOCENE

rubble
8400

M
8500

M
Py
Montrose & Arbroath
RESERVOIR GEOLOGY E
POROSITY - PERMEABILITY CHARACTERISTICS
22/18-2
1. Balder Formation 10000

Rogaland Group
W 2. Sele Formation 1
22/17-1 3. Forties Shale Member

2
0
1000

100 feet

Forties Sandstone Member


Major
Major channel 100
channel sandbody
sandbody

Forties Formation

PERMEABILITY (md.)
22/17-A12

Montrose Group
10

3 1

Andrew Fm.
0.1

Maureen Fm.
0.01
0 10 20 30 40
TD
POROSITY (per cent.)

The Forties Formation has been subdivided into the Forties Sandstone Member and the Porosities in the two fields are generally good, typically 18 to 27
Forties Shale Member of which the former comprises the main reservoir horizon. The per cent. Permeabilities are poor to good, commonly 1 to 1000 md.
Forties Sandstone Member is between 350 and 500 feet thick, forming a sheetlike sediment Trends in porosity and permeability values are controlled by primary
body. In the Montrose field, there are two main northwest-southeast trending axes of textural characteristics and hence facies. The cleaner, coarser
channel sandstones, which are composed of thick, broad elongate sand units with good grained channel fill sandstones have the better reservoir quality. The
reservoir quality. These pass laterally into poorer reservoir quality, thinner, sheetlike, thinner, sheetlike interchannel turbidite sandstones are generally
interchannel sandstones interbedded with thin mudstones, which form a northwest- finer grained and have poorer reservoir quality. The thin sandstones
southeast trending band down the central part of the field. This band of relatively poor within facies association 'C' are commonly tight due to diagenetic
reservoir quality with thin mudstones will act as a baffle to horizontal flow. Mudstones within cementation.
the Forties Sandstone Member are generally thin and laterally impersistent and are
therefore unlikely to restrict vertical flow on a field scale.

RESERVOIR PRESSURE
FLUID PROPERTIES
Both the Montrose and Arbroath fields are approximately
Three separate fluid systems exist in the east and west lobes of the Montrose field and normally pressured with a gradient to surface of about 0.46 psi/ft.
in the Arbroath field. Separate pressure regimes exist in the east and west lobes of the
All reservoirs are undersaturated, bubble point pressures varying from about 2000 psig Montrose field and in the Arbroath field. Oil water contacts in the east
in the Arbroath field to about 2700 psig in parts of the Montrose field. and west lobes of the Montrose field are at about 8235 and 8295 feet
Oil viscosities are moderately low, giving favourable mobility ratios. TVDSS respectively. The two lobes are believed to be in pressure
communication through the aquifer.
The Arbroath field was pressure depleted at the time of
commencement of offtake due to production from Montrose. The
1000 1.6 GOR B0 0 0.7
West Montrose Arbroath field oil water contact is at about 8256 ft TVDSS.
East Montrose
800 Arbroath
1.5 0.6
8100
GOR (scf/stb)

600 1.4 0.5


B0 (rb/stb)

Arbroath
0 (cp)

East Montrose West Montrose


400 1.3 0.4

8200 0.30 psi/ft 0.29 psi/ft


200 1.2 0.3 0.30 psi/ft
DEPTH (feet TVDSS)

OWC @ 8235 ft TVDSS


@ 255 F
0 1.1 0.2
OWC @ 8256 ft TVDSS
0 1000 2000 3000 4000 0.45 psi/ft
0.45 psi/ft
PRESSURE (psig)
8300 OWC @ 8295 ft TVDSS

0.45 psi/ft
CONTROLS ON RECOVERY

The Montrose oil accumulation is entirely underlain by a large aquifer which provides the
main source of reservoir energy. Permeability is typically moderate to good and vertical
8400
pressure communication is poor due to the stratified nature of the reservoir sands.
3000 3200 3400 3600 3800 4000
Production performance has shown that pressure support in the east lobe is inadequate to
maintain oil offtake rates and three of the four water injection wells are located in this part INITIAL RESERVOIR PRESSURE (psig)
of the field. An overall recovery factor of 45 to 50 per cent. is expected.
Montrose is at an advanced stage of decline. The field is now producing significant
volumes of water and electric submersible pumps are being used to increase well
productivities. These will enable individual wells to produce to water cuts in excess of 90 per
cent.
Reservoir quality in Arbroath is similar to that in Montrose. The structure is of even
shallower relief, however, and this will probably lead to earlier water production problems
and possibly a slightly lower recovery factor.
Montrose & Arbroath
FACILITIES SPECIFICATIONS

MONTROSE ARBROATH

UNITED KINGDOM
Water Depth 289 308
(feet)
Platform Type steel jacket steel jacket
Function drilling/production/ wellhead
accommodation

Jacket Weight 6500 3500


(tonnes)
Total Weight 14000 6500
(tonnes)

Accommodation 83 25
(not normally manned)
Well slots 24 21
Wells 21 17

(An Amoco Photograph) PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 60000


(bbl/day)

Oil Export 14" x 48km pipeline 10" x 8km pipeline from


to Forties FC then on to Arbroath to Montrose
Cruden Bay then 14" x 48km to Forties
and on to Cruden Bay

Gas Export flared reinjected


FULL FIELD LIFE ECONOMIC INDICATORS
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 1,115.20 510.54 338.48 262.72 206.72 147.12 85.86
Net Present Value (Deflated) 1,442.93 676.03 437.07 325.26 238.66 141.55 34.74
Profit/Inv Ratio 2.69 2.01 1.69 1.51 1.35 1.14 0.83 PRODUCTION PERFORMANCE
Profit/Inv Ratio (Deflated) 1.45 0.93 0.70 0.56 0.45 0.29 0.08
NPV/Unit Oil Equiv. 4.77 4.79 4.67 4.55 4.40 4.12 3.52 HISTORICAL AND PROJECTED
NPV/Unit Oil Equiv. (Deflated) 4.21 3.59 3.10 2.73 2.33 1.70 0.56
50
Payback Year 1979
Nominal Rate Of Return % 40.65
Real Rate Of Return % 22.33

Average Annual Daily Liquid Rate (Mbbl/day)


Post Corporation Tax 40

Net Present Value 643.87 288.76 186.92 142.26 109.41 74.68 39.21
Net Present Value (Deflated) 772.99 320.12 179.51 113.98 63.36 6.71 -55.55
Profit/Inv Ratio 1.55 1.13 0.93 0.82 0.72 0.58 0.38
Profit/Inv Ratio (Deflated) 0.78 0.44 0.29 0.20 0.12 0.01 -0.13 30
NPV/Unit Oil Equiv. 2.75 2.71 2.58 2.47 2.33 2.09 1.61
NPV/Unit Oil Equiv. (Deflated) 2.25 1.70 1.27 0.96 0.62 0.08 -0.90

Nominal Rate Of Return % 32.53


Real Rate Of Return % 15.43 20
Earnings Data

Gross Revenue 2,975.62 1,366.41 929.69 740.24 601.28 454.44 304.69


Royalty 110.75 69.67 54.06 46.06 39.50 31.70 22.53
Petroleum Revenue Tax 64.75 39.33 30.19 25.58 21.83 17.38 12.16 10
Corporation Tax 471.33 221.78 151.56 120.46 97.30 72.44 46.65 Montrose only
Capital Expenditure 415.00 254.63 199.93 173.55 152.85 129.45 103.59
Operating Costs 1,266.85 490.12 305.31 230.84 179.10 127.72 79.78

Gross Revenue (Deflated) 4,318.39 2,346.33 1,742.30 1,460.17 1,241.33 994.69 719.30 0
Royalty (Deflated) 224.54 147.78 117.43 101.50 88.21 72.11 52.66 1975 1980 1985 1990 1995 2000 2005 2010
Petroleum Revenue Tax (Deflated) 121.30 77.56 60.71 51.94 44.66 35.88 25.35
Corporation Tax (Deflated) 669.94 355.91 257.57 211.28 175.31 134.85 90.29 Year
Capital Expenditure (Deflated) 994.86 726.11 627.16 576.77 535.34 485.59 424.79
Operating Costs (Deflated) 1,528.02 714.19 496.16 401.43 331.62 257.22 180.08

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1974 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -124.0 0.0 0.0 0.0
1975 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -551.9 0.0 0.0 0.0
1976 5.2 0.0 4.0 30.0 0.0 0.0 0.0 -28.8 -283.1 2.0 0.0 0.0
1977 56.3 1.3 17.5 10.0 0.0 0.0 1.3 27.5 241.0 17.0 0.0 0.0
1978 63.7 4.9 17.5 10.0 0.0 0.0 4.9 31.3 243.5 24.0 0.0 0.0
1979 99.9 7.6 17.5 10.0 0.0 0.0 7.6 64.8 449.6 28.0 0.0 0.0
1980 137.4 12.0 20.0 5.0 0.0 15.6 27.6 84.8 523.7 25.0 0.0 0.0
1981 148.0 14.9 22.0 0.0 25.8 46.2 86.9 36.3 199.7 22.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1982 125.0 14.1 24.0 0.0 21.3 40.9 76.3 24.4 119.2 18.0 0.0 0.0
1983 101.9 11.1 26.0 5.0 4.8 38.7 54.6 16.3 71.0 14.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1984 133.7 11.8 28.0 30.0 0.0 31.0 42.7 33.0 128.0 16.0 0.0 0.0
1985 108.6 12.2 30.0 10.0 0.0 31.2 43.4 25.2 87.0 14.0 0.0 0.0
Pre Corporation Tax 1986 46.9 6.7 30.5 0.0 0.0 25.2 31.9 -15.4 -47.4 13.0 0.0 0.0
1987 45.2 2.9 29.4 55.0 0.0 4.1 7.0 -46.1 -126.3 11.0 0.0 0.0
Net Present Value 369.81 350.15 335.54 325.46 315.37 300.53 277.29 1988 31.0 1.9 29.9 75.0 0.0 -0.8 1.1 -75.0 -182.7 10.0 0.0 0.0
Net Present Value (Deflated) 361.74 336.03 319.98 309.46 299.24 284.59 262.26 1989 16.2 0.5 26.9 70.0 0.0 -12.0 -11.5 -69.2 -150.2 4.0 0.0 0.0
NPV/Unit Oil Equiv. 4.77 5.36 5.64 5.79 5.93 6.10 6.32 1990 130.1 0.0 49.5 15.0 0.0 0.0 0.0 65.6 126.7 27.0 0.0 0.0
1991 150.2 0.0 57.2 15.0 0.0 0.0 0.0 78.0 134.2 36.0 0.0 0.0
Post Corporation Tax 1992 151.2 0.0 59.5 5.0 0.0 19.8 19.8 66.9 102.5 38.0 0.0 0.0
1993 144.9 0.2 58.1 10.0 0.0 22.6 22.8 54.0 73.6 35.0 0.0 0.0
Net Present Value 205.01 208.83 205.81 202.58 198.74 192.29 180.83 1994 135.7 0.7 52.3 0.0 0.4 22.0 23.1 60.3 73.2 36.0 0.0 0.0
Net Present Value (Deflated) 213.30 208.00 202.00 197.46 192.68 185.35 173.33 1995 146.5 1.0 53.8 0.0 4.7 22.1 27.7 65.0 70.2 38.0 0.0 0.0
NPV/Unit Oil Equiv. 2.64 3.20 3.46 3.61 3.74 3.91 4.12 Total To Start Of Discounting ( 1/JAN/1996)
1,977.8 103.8 653.6 415.0 56.9 306.5 467.3 438.9 1,177.5 156.2 0.0 0.0
Earnings Data
1996 152.1 0.9 53.8 0.0 6.6 24.8 32.2 66.1 63.6 38.0 0.0 0.0
Gross Revenue 997.83 827.57 748.49 703.09 662.58 609.52 537.43 1997 146.3 1.2 52.8 0.0 1.3 27.2 29.6 63.8 54.7 34.0 0.0 0.0
Royalty 6.93 7.09 6.92 6.74 6.54 6.20 5.63 1998 132.9 1.8 51.7 0.0 0.0 28.3 30.1 51.1 39.0 29.7 0.0 0.0
Petroleum Revenue Tax 7.84 7.59 7.45 7.37 7.28 7.16 6.96 1999 118.2 2.1 50.2 0.0 0.0 24.5 26.7 41.3 28.0 25.4 0.0 0.0
Corporation Tax 164.80 141.31 129.74 122.88 116.63 108.24 96.46 2000 101.6 2.0 48.4 0.0 0.0 20.5 22.5 30.7 18.6 21.0 0.0 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 90.6 1.8 46.1 0.0 0.0 16.1 17.9 26.6 14.3 18.0 0.0 0.0
Operating Costs 613.25 462.73 398.58 363.52 333.39 295.64 247.55 2002 76.4 1.7 43.2 0.0 0.0 13.4 15.1 18.1 8.7 14.6 0.0 0.0
2003 68.0 1.4 41.5 0.0 0.0 10.0 11.4 15.0 6.4 12.5 0.0 0.0
Gross Revenue (Deflated) 874.33 734.89 669.50 631.74 597.88 553.31 492.23 2004 61.7 1.5 39.9 0.0 0.0 7.9 9.4 12.4 4.7 10.9 0.0 0.0
Royalty (Deflated) 7.26 6.95 6.63 6.40 6.15 5.79 5.21 2005 50.0 1.3 37.5 0.0 0.0 6.4 7.7 4.8 1.6 8.5 0.0 0.0
Petroleum Revenue Tax (Deflated) 7.79 7.55 7.41 7.32 7.24 7.12 6.93 Remain
Corporation Tax (Deflated) 148.44 128.04 117.97 112.01 106.56 99.24 88.93 2006 0.0 -8.8 148.0 0.0 0.0 -14.3 -23.0 -125.0 -37.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 497.54 384.36 335.48 308.56 285.25 255.81 217.83 Total 997.8 6.9 613.3 0.0 7.8 164.8 179.6 205.0 202.0 77.6 0.0 0.0

These cash flows include Montrose and Arbroath fields


3 113/27a Exxon 113/28 Clyde SUMMARY
2
The Morecambe complex consists of two gas fields, North
110/2b BG 110/2a Br. Gas 110/3b Oryx Morecambe and South Morecambe. The complex is located in
4,4A
Quadrant 110, 42 km west of Blackpool in the UK Sector of the Irish
5 Sea. The South Morecambe field was discovered in 1974 by Well
NORTH 110/2a-1 which encountered dry gas in Triassic sands of the Sherwood
3 110/3a 110/3d Rel.
MORECAMBE BG Sandstone Group. Further exploration led to the discovery in 1976 of
North Morecambe. The two fields are separated by a very narrow and
8
deep graben. Both fields are very shallow.
South Morecambe was developed first. First gas was produced in
7 2 1985 using five platforms, three wellheads, one processing and one
accommodation platform. Two more wellhead platforms were installed
9 in 1989. Gas is transported to the Westfield Point terminal near Barrow.
6 1 110/3c Oryx From 1985 to 1991 South Morecambe gas was only used during peak
MORECAMBE winter demand. However, with the installation of two compressor
SOUTH 4 modules on the central processing platform and extra facilities at
2 Barrow in late 1991, the field has been able to deliver additional base
1
load gas if required, in addition to its peak shaving role.
11 HODDER
The Annex B for North Morecambe was approved in February 1992,
CROSSANS 3 and the field was developed using a single unmanned platform, which
10
is controlled from the onshore terminal at Barrow. Production started in
110/7c Hamilton 110/7a 110/8a Br. Gas
5 1 Br. Gas 2 October 1994 and gas is piped via a new 32km long pipeline to
7
Westfield Point and from there into the National Grid.
3
British Gas is the operator of both North and South Morecambe and
4
8
3 has a 100 per cent. interest in the fields.
DARWIN
0 5 km

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Morecambe gas fields are located in the northern Irish Sea
SOUTH NORTH basin. They are the most westerly of all the producing UK oil and gas
MORECAMBE MORECAMBE reservoirs. North Morecambe started production in October 1994. The
nearest fields are the Hamilton North and Hamilton gas fields and the
Gas Gravity S.G. (air =1) 0.65 0.69 Douglas oil field, all in Block 110/13. A number of single wells and
Condensate Gas Ratio (bbl/MMscf) 4 4 smaller fields have been discovered by British gas around the two
Dew Point 1650 psi Morecambe fields.
Gas Expansion Factor (bbl/MMscf) 145 145 The Millom gas accumulation was found in Block 113/26a in 1982
Original Reservoir Pressure, Pi (psia) 1861 1808 followed by the Darwin gas discovery in Block 110/8a in 1991 and two
At Datum Depth of (ft TVDSS) 3640 3900 gas prospects, Crossans and Hodder, found in 1991 and 1993
Reservoir Temperature (F) 90 90 respectively. These have become collectively known as "The River
fields" and are likely to be developed as future satellites to Morecambe.
Rock Properties

Rock Type ------------------------ Sandstone -----------------------


Stratigraphic Unit --------- Sherwood Sandstone Group -------
Geological Age --------------------------- Triassic ------------------------
Porosity (per cent.) ---------------------------- 10-20 ---------------------------
Permeability Range (md) ------------------------- 0.1-1000 ------------------------
Average Water Saturation (per cent.) ---------------------------- 17-30 ---------------------------
Gas Water Contact (ft TVDSS) 3750 3950
Depth to Top of Structure (ft TVDSS) 2400 3000

Reserves FIELD DESCRIPTION

Total Gas Reserves (Bcf) 5200 1025 The Morecambe reservoirs are two highly faulted anticlines trending
Est. Gas Production to 31.12.95 (Bcf) 1650 129 approximately north-south. These are separated by a very narrow and
Remaining Gas Reserves (Bcf) 3550 896 deep graben structure. The South Morecambe reservoir is at depths of
about 2400 ft while the deeper North Morecambe field is up to 3000 ft
Production below sea level. The Triassic Sherwood Sandstone Group forms the
main reservoir. The Sherwood Sandstone Group is several thousand
Water depth (feet) 85-100 85-100 feet thick and contains a dry gas entirely underlain by water. Porosities
Production Start Date January 1985 October 1994 are moderate to good. Primary permeabilities are generally high but the
Peak Production (yrly average) (MMscf/day) 860 in 1993 300 in 1995 presence of illite severely reduces permeability in the lower part of the
Platform(s) 7 Steel jackets 1 reservoir.
Number of Wells - Producers 40 7 planned The illite occurs below what has been interpreted as a palaeo gas-
water contact, and this surface (top platy illite) can be mapped.
Subsequent late stage (post-illite) quartz overgrowths are present in the
Gas and Condensate Export Pipeline to Westfield Point
illite free zones so porosities here are generally lower than the illite
terminal
affected zones, though permeabilities are much higher.
The North Morecambe structure is separated from South
Morecambe by a graben feature and is about a quarter of its size.
Closure is completed to the east by faulting and to the north and west
by faulting and dip closure. Morecambe gas has a relatively high
nitrogen content of 7-8 per cent. with North Morecambe gas exhibiting
a higher carbon dioxide content than that of South Morecambe. Due to
the shallow nature of the reservoir, several small wellhead platforms
have been installed and slant hole drilling has been used to give as long
a well reach as possible in South Morecambe.
STRATIGRAPHY AND STRUCTURE 113/27 113/28

110/2a 110/3b
The Morecambe field gas accumulation occurs within sandstones of the Lower 4A

UNITED KINGDOM
Triassic Sherwood Sandstone Group, which is subdivided into Ormskirk Formation GWC

Morecambe
and the older St. Bees Sandstone Formation. The Ormskirk Sandstone Formation 3950 NORTH
00
forms the majority of the reservoir and comprises the Keuper Waterstones Unit and 38 MORECAMBE
5

00
the underlying Keuper Sandstone Unit. The Keuper Sandstone Formation is further

36
110/3a

30
3400
subdivided into the upper Frodsham, the middle Delamere and the lower Thurstaston

00
3
Members. The Sherwood Sandstone Group is up to 4800 ft thick and greatly
exceeds the maximum closure of the structure. The reservoir is sealed by a series
of four halite and mudstone cycles of the overlying Triassic Mercia Mudstone Group 8
which locally exceed 3000 feet in thickness. Subdivision of the Ormskirk and the St
Bees Sandstone Formation is based upon lithostratigraphic considerations, there
being an absence of valid biostratigraphic data. 0
2 300
The Morecambe structure comprises a broad faulted anticline oriented 7
approximately north-south. A major fault of variable throw forms the western DP8
boundary while the eastern edge relies on both fault and dip closure. The field is 32
00 SOUTH
divided into the North and South Morecambe fields by a northeast-southwest 6 1
MORECAMBE
oriented graben.

3000

3600
5000
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
0 DP4
300

32000
30
40
The sediments of the Sherwood Sandstone Group were deposited in a semi-arid

00

0
DP6 30
00
enclosed basin over which major braided channel systems prograded from sources 1

26
on the eastern margin of the East Irish Sea Basin. The dominance of sheetflood and 320

00
0

26
00
channelised flow processes was controlled by the advance and retreat of braided CPP1
channel complexes from the hinterland in response to external controls such as

24
boundary fault reactivation and climatic change.

3400
00
110/2b

00
Fining upwards, channel-fill sandstones with mudclasts and erosive bases are AP 3

36
110/7c 110/7a 2 110/8a
the dominant reservoir lithology although sheetflood sandstones are also of

2800
importance. The channel sandstones are generally medium grained and exhibit large DP3
scale cross-stratification and trough cross lamination. The sheetflood sandstones
are generally sharply bounded, very fine to medium grained, argillaceous, and are MORECAMBE 00
30
weakly laminated with extensive disruption by dewatering structures. They are often TOP TRIASSIC SANDSTONE
DEPTH STRUCTURE GWC
interbedded with thin mudstones but show improved reservoir quality when 3750
interbedded with thin aeolian sandstones. Minor intervals of ephemeral lake 0 4 km
mudstones are present with dessication cracks, and minor silty mudstones and
(Contours in feet)
sandy lenses. Minor intervals of clean, well sorted aeolian dune and sheet
sandstones are also recognised throughout the area.
The St Bees Sandstone Formation comprises a thick sequence of alternating (Modified after Bushell, 1986)
channel and sheetflood dominated intervals. The Ormskirk Sandstone Formation,
however, comprises the majority of the reservoir interval and is subdivided into the
oldest Thurstaston Member exhibiting minor aeolian dune development and Fodsham Member and the channel/sheetflood and playa lake deposits of the
reworking of older aeolian sediment, the sheetflood and emphemeral lake dominated Keuper Waterstones Unit. The reservoir is sealed by shales and evaporites of the
sequence of the Delamere member, the channel dominated sequence of the Mercia Mudstone Group.

INTERPRETATIVE STRUCTURAL CROSS SECTION

NORTH MORECAMBE SOUTH MORECAMBE


110/2a-4A 110/2a-5 110/2a-3 110/2a-8 110/2a-2 110/2a-6 110/3-3
Feet NNW SSE

1000
Mercia Mudstone Group TRIASSIC
TRIASSIC
2000

3000 Top Platy Illite Top Platy Illite


O rmskirk Sandstone Fm GWC 3750'
4000
TRIASSIC
GWC St Bees Sandstone Fm
5000 3950-4000'
TRIASSIC
0 2.5 5 km

REPRESENTATIVE WELL SECTION - 110/2a-6


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


110/2a-6
3100

Braidplain sediments: stacked fluvial


channel-fill sandstones separated by
channel abandonment/ephemeral lake
"WATERSTONES"

argillaceous sediments.
M
M Geometry
M Composite sheet sandbody comprising
stacked broad elongate sandbodies with
M thin, laterally impersistent mudstones.
M
and K
and K of sandstones generally poor to
moderate, locally good. Mudstones form
local barriers to vertical flow.
SHERWOOD SANDSTONE GROUP
ORMSKIRK SANDSTONE FORMATION

3200

Braidplain sediments: stacked fluvial


channel-fill sandstones with subordinate
TRIASSIC

sheetflood sandstones and ephemeral


lake mudstones.

Geometry
Composite sheet sandbody comprising
stacked broad elongate sandbodies with
thin laterally impersistent (sheetflood)
sandstones and mudstones.
3300

and K
and K of sandstones poor to
moderate, rarely good, K of sandstones
poor to moderate, locally good.
?FRODSHAM MEMBER

Mudstones form local barriers to vertical


flow.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
NNW 10000
110/2a-4A

Morecambe 110/2a-5
110/2a-3
1000

Mercia Mudstone Gp.


SSE
110/8-2

110/2a-2
110/3-3
100
110/2a-6

PERMEABILITY (md.)
Ormskirk Sandstone Formation
110/2-1
10

Sherwood Sandstone Group


1

TD
0.1

St. Bees Sandstone Formation


0 TD
TD TD North Morecambe
100
South Morecambe
200 feet 0.01
0 10 20 30
TD
POROSITY (per cent.)
The presence of a pore-lining authigenic illite phase
in parts of the reservoir has resulted in severely reduced Porosities in the Sherwood Sandstone Group are generally
permeabilities and rendered these parts largely non productive. The TD moderate to good, typically ranging from 10 to 20 per cent.
prediction of the distribution of the platy illite is therefore important for Permeabilities are good, typically 1 to 1000 md, but are severely
development of the reservoir. The top platy illite zone is thought to reduced in the illite affected zones.
represent the position of a palaeo-GWC, which can be mapped as a surface dipping to the Trends in distribution of porosity and permeability are controlled by
northwest in northern parts of South Morecambe, to the southeast in the southern parts and primary textural characteristics and hence facies, but with a strong
to the west in North Morecambe. The platy illite zone is absent along the eastern flank. diagenetic overprint due to the development of platy illite below a
The minor aeolian sandstones which locally occur within the platy illite zone retain good palaeo-gas water contact. As a result of uplift, the present day gas
reservoir quality and may enhance hydrocarbon drainage from the illite zone. Within the water contacts lie within the platy illite zone, the diagenetic illite having
reservoir sequence as a whole, channel-fill sandbodies have elongate, broad ribbon originally developed in water bearing sandstones. Porosities remain
geometries, but sandbodies are stacked and coalesced to form multistorey and multi-lateral largely unaffected, but the permeabilities of these illite zone
elongate, sheet geometry sandbodies. The sandbodies are elongate parallel to the flow sandstones have generally been reduced by two to three orders of
direction which is assumed to be subparallel to the dominant north-south orientated faults magnitude and are frequently less than 1 md. The best porosity and
which were active at the time. permeability values in the non-illite zone are in the coarser grained,
Thin channel abandonment mudstones and relict interchannel, ephemeral lake mudstones generally clean, channel-fill sandstones and some of the associated,
are locally preserved within multistorey composite sheet sandbodies. They are not laterally finer grained but well sorted and clean, sheetflood sandstones. These
persistent, but may cause lateral and vertical connectivity to be tortuous on a local scale. comprise 'braid tract' sandbodies preserved adjacent to the
Sheetflood sandstones are thin and are interbedded with thin mudstones such that overall downthrown side of major active faults. Poorer reservoir quality is
petrophysical characteristics are poor and connectivity tortuous. Within the Sherwood found in sediments deposited in inter-braid areas where more
Sandstone Group sequence as a whole, only local vertical permeability baffles are likely to be argillaceous and finer grained sediments predominate. Minor intervals
present as the reservoir is dominated by 'braid tract' fluvial channel-fill and sheetflood of clean, well sorted aeolian sandstones retain good porosity and
sandstones. permeability values, even within the illite zone.

FLUID PROPERTIES RESERVOIR PRESSURE

Both Morecambe complexes contain dry gas with small amounts of condensate (4 Assuming a water pressure gradient to surface of 0.45 psi/ft, South
bbl/MMscf) produced during testing. The gas is similar to that in the Southern North Sea, but Morecambe is overpressured by approximately 180 psi and North
with a higher level of Nitrogen. The CO2 content is higher in North Morecambe compared to Morecambe is normally pressured.
South Morecambe which may indicate a different source for the gas. The condensate has a The reservoir pressure of North Morecambe is 1808 psig at 3900
gravity of 72 API. feet TVDSS and the reservoir pressure of South Morecambe is 1861
The separator gas composition for both fields is given below and shows the high level of psig at 3640 feet TVDSS.
inerts present in the gas, especially in North Morecambe. The aquifer pressure in the North Morecambe field is 150 psi less
than in South Morecambe indicating that the narrow graben
separating them fully sealing.
COMPOSITION
COMPOSITION South
South North
North 1.1
(mol. %)
(mol. %) MorecambeMorecambe
Morecambe Morecambe 3600

COCO2 0.54
0.54 5.925.92
2
GAS DEVIATION FACTOR Z

N2 7.90 6.89 1.0


NH2 S
7.90 6.89
2 3700
H2CS1 85.10
81.20 0.05 psi/ft
CC12 4.40
85.10 81.20 3.94
0.9 South Morecambe
CC23 1.00
4.40 3.940.96
GWC @ 3750 ft TVDSS
CC34 0.51
1.00 0.960.51 South Morecambe
DEPTH (feet TVDSS)

CC45 0.25
0.51 0.510.27 3800
CC56 0.16
0.25 0.270.13 0.45 psi/ft
0.8
CC67+ 0.14
0.16 0.130.18 North Morecambe
S.G.C(Air=1.0) 0.64
0.14 0.180.69
7+
C.V.
S.G (Btu/scf)
(Air = 1.0) 1006
0.64 0.691156
C.V. (Btu/scf) 1006 1156 @ 90 F 3900 0.05 psi/ft
0.7
0 500 1000 1500 2000 North Morecambe
GWC @ 3950 ft TVDSS
PRESSURE (psig)
4000
0.45 psi/ft

CONTROLS ON RECOVERY
4100
Recovery from the South Morecambe field is expected to be moderate to good 1780 1820 1860 1900 1940
resulting from:
INITIAL RESERVOIR PRESSURE (psig)

A low initial reservoir pressure


Installation of offshore compression enabling a low abandonment pressure to be The major uncertainty in the ultimate recovery is associated with the degree of
achieved. gas flow from the illite affected zone into the illite free zone.
Weak water influx into the reservoir due to severe reduction of permeability in the Recovery from North Morecambe is only expected to be moderate due to the
water leg by diagenesis. more complete areal development of the platy illite.
PRODUCTION PERFORMANCE FACILITIES SPECIFICATIONS
HISTORICAL AND PROJECTED
South Morecambe North Morecambe

UNITED KINGDOM
900

Morecambe
CPP1 AP1 DP1/3/4/6/8
800

Average Annual Daily Gas Rate (MMscf/day)


South Water Depth 85 85 85-100 100



@@@
700
(feet)
600 Platform Type steel jacket unmanned
steel jacket
500
Function processing accommodation wellhead
400
Jacket Weight 11754 4100 2350
300
North (tonnes)
200 Total Weight 5850
(tonnes)
100

0
Accommodation 176 Emergency Emergency
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 for 12 only
Year Well Slots/Platform 12-16 14
Total Wells 40 7 planned

PROCESSING AND EXPORT SPECIFICATIONS


FULL FIELD LIFE ECONOMIC INDICATORS
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
Gas Throughput 1800
Pre Corporation Tax (MMscf/day)
Net Present Value 7,359.97 2,591.90 1,366.33 861.86 511.52 171.78 -116.55
Net Present Value (Deflated) 5,592.17 1,719.28 691.64 266.53 -27.13 -306.25 -526.04
Profit/Inv Ratio 4.81 2.24 1.36 0.94 0.60 0.23 -0.18 Gas and Condensate 36" x 38 km 36" x 40 km
Profit/Inv Ratio (Deflated) 2.32 0.91 0.41 0.17 -0.02 -0.24 -0.48
NPV/Unit Oil Equiv. 8.49 7.28 6.11 5.14 4.00 1.97 -2.38 pipeline to Westfield pipeline to Barrow
NPV/Unit Oil Equiv. (Deflated) 7.30 5.03 3.10 1.56 -0.20 -3.28 -9.65
Export Point Terminal
Payback Year 1992
Nominal Rate Of Return % 17.44
Real Rate Of Return % 11.78

Post Corporation Tax FULL FIELD LIFE ECONOMIC INDICATORS


Net Present Value 4,931.18 1,699.29 847.36 492.97 245.53 5.02 -197.38 Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
Net Present Value (Deflated) 3,624.61 950.87 232.01 -65.50 -269.97 -461.32 -603.03
Profit/Inv Ratio 3.22 1.47 0.84 0.53 0.29 0.01 -0.31 Pre Corporation Tax
Profit/Inv Ratio (Deflated) 1.51 0.50 0.14 -0.04 -0.19 -0.36 -0.55
NPV/Unit Oil Equiv. 5.69 4.77 3.79 2.94 1.92 0.06 -4.03 Net Present Value 1,131.08 623.82 422.58 318.41 232.93 132.23 17.06
NPV/Unit Oil Equiv. (Deflated) 4.73 2.78 1.04 -0.38 -2.03 -4.94 -11.06 Net Present Value (Deflated) 903.00 469.03 298.02 209.62 137.14 51.87 -45.30
Profit/Inv Ratio 1.79 1.12 0.81 0.64 0.49 0.29 0.04
Nominal Rate Of Return % 15.08 Profit/Inv Ratio (Deflated) 1.33 0.78 0.53 0.39 0.26 0.11 -0.10
Real Rate Of Return % 9.49 NPV/Unit Oil Equiv. 6.62 5.68 4.88 4.27 3.60 2.50 0.44
NPV/Unit Oil Equiv. (Deflated) 6.11 4.79 3.81 3.08 2.31 1.06 -1.25
Earnings Data
Payback Year 1997
Gross Revenue 19,828.15 7,374.65 4,417.60 3,226.21 2,401.16 1,590.23 857.12 Nominal Rate Of Return % 20.99
Royalty 2,040.76 734.52 425.16 302.20 218.32 137.74 67.94 Real Rate Of Return % 17.37
Petroleum Revenue Tax 5,125.11 1,742.57 964.57 663.64 463.39 277.25 124.88
Corporation Tax 2,428.79 892.61 518.97 368.90 265.99 166.76 80.83 Post Corporation Tax
Capital Expenditure 1,529.10 1,155.76 1,004.40 921.47 849.32 756.94 634.37
Operating Costs 3,773.21 1,149.91 657.14 477.03 358.62 246.52 146.47 Net Present Value 757.83 397.99 253.43 178.10 116.01 42.54 -41.84
Net Present Value (Deflated) 594.22 281.78 157.25 92.52 39.27 -23.55 -95.20
Gross Revenue (Deflated) 16,144.88 6,648.66 4,179.08 3,137.73 2,393.87 1,637.90 923.41 Profit/Inv Ratio 1.20 0.71 0.49 0.36 0.24 0.09 -0.10
Royalty (Deflated) 1,620.44 627.51 376.12 272.74 200.56 129.47 65.83 Profit/Inv Ratio (Deflated) 0.88 0.47 0.28 0.17 0.08 -0.05 -0.21
Petroleum Revenue Tax (Deflated) 3,916.64 1,406.65 800.75 560.20 397.15 242.49 112.34 NPV/Unit Oil Equiv. 4.44 3.62 2.93 2.39 1.79 0.81 -1.08
Corporation Tax (Deflated) 1,967.55 768.41 459.63 332.04 242.84 155.06 76.99 NPV/Unit Oil Equiv. (Deflated) 4.02 2.88 2.01 1.36 0.66 -0.48 -2.62
Capital Expenditure (Deflated) 2,405.84 1,895.85 1,671.52 1,544.76 1,432.50 1,286.35 1,088.68
Operating Costs (Deflated) 2,609.79 999.36 639.05 493.50 390.79 285.85 182.60 Nominal Rate Of Return % 17.23
Real Rate Of Return % 13.77
These results include Morecambe South only
Earnings Data

Gross Revenue 2,534.89 1,572.10 1,218.10 1,038.79 892.68 720.24 518.45


Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 65.47 40.69 30.98 25.96 21.84 16.96 11.32
Corporation Tax 373.26 225.83 169.15 140.31 116.92 89.69 58.90
CASH FLOW REPORT Capital Expenditure 633.27 557.98 521.13 499.13 478.83 451.08 410.74
Operating Costs 705.06 349.62 243.40 195.29 159.09 119.97 79.32
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn Gross Revenue (Deflated) 2,128.16 1,368.36 1,078.51 928.89 805.35 657.40 480.84
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 55.34 34.52 26.34 22.10 18.61 14.48 9.70
1981 0.0 0.0 0.0 5.0 0.0 0.0 0.0 -5.0 -33.9 0.0 0.0 0.0 Corporation Tax (Deflated) 308.78 187.24 140.77 117.10 97.87 75.42 49.90
1982 0.0 0.0 0.0 75.0 0.0 0.0 0.0 -75.0 -420.6 0.0 0.0 0.0 Capital Expenditure (Deflated) 677.71 601.69 563.62 540.65 519.32 489.98 447.00
1983 0.0 0.0 0.0 220.0 0.0 0.0 0.0 -220.0 -1,052.5 0.0 0.0 0.0 Operating Costs (Deflated) 492.11 263.13 190.54 156.53 130.27 101.07 69.44
1984 0.0 0.0 0.0 325.0 0.0 0.0 0.0 -325.0 -1,376.8 0.0 0.0 0.0
1985 6.8 0.0 10.0 300.0 0.0 0.0 0.0 -303.2 -1,132.1 0.0 8.7 0.0 These results include Morecambe North only
1986 45.0 0.0 52.5 110.0 0.0 0.0 0.0 -117.5 -383.2 0.0 56.0 0.0
1987 115.9 0.0 55.1 140.0 0.0 0.0 0.0 -79.2 -231.2 0.0 139.4 0.0
1988 81.2 0.0 57.9 95.0 0.0 0.0 0.0 -71.7 -189.6 0.0 94.3 0.0
1989 98.1 0.0 60.8 35.0 0.0 0.0 0.0 2.3 5.3 0.0 110.1 0.0
1990 431.7 0.0 63.8 10.0 0.0 0.0 0.0 357.9 704.2 0.0 468.2 0.0
1991 621.2 19.8 67.0 0.0 0.0 0.0 19.8 534.4 889.0 0.0 651.1 0.0 CASH FLOW REPORT
1992 674.5 63.6 70.4 40.0 0.0 0.0 63.6 500.5 728.8 0.0 682.9 0.0
1993 859.7 81.8 70.4 60.0 0.0 97.2 179.0 550.3 714.9 0.0 840.9 0.0 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
1994 762.1 91.5 70.4 0.0 224.9 177.5 494.0 197.7 234.0 0.0 720.2 0.0 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
1995 821.3 90.3 70.4 0.0 177.8 140.3 408.4 342.5 366.5 0.0 750.0 0.0 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Total To Start Of Discounting ( 1/JAN/1996)
4,517.3 347.0 648.7 1,415.0 402.7 415.1 1,164.8 1,288.8 -1,177.1 0.0 1,650.5 0.0 1991 0.0 0.0 0.0 15.0 0.0 0.0 0.0 -15.0 -25.0 0.0 0.0 0.0
1992 0.0 0.0 0.0 215.0 0.0 0.0 0.0 -215.0 -313.1 0.0 0.0 0.0
1996 853.6 97.3 70.4 0.0 203.0 146.6 446.8 336.3 323.6 0.0 750.0 0.0 1993 0.0 0.0 0.0 315.0 0.0 0.0 0.0 -315.0 -409.2 0.0 0.0 0.0
1997 887.5 102.0 73.2 0.0 224.4 150.6 477.0 337.3 289.0 0.0 750.0 0.0 1994 37.9 0.0 10.0 60.0 0.0 0.0 0.0 -32.1 -38.0 0.0 53.7 0.0
1998 922.8 106.4 76.2 10.8 239.6 154.0 500.0 335.8 256.0 0.0 750.0 0.0 1995 219.1 0.0 25.0 0.0 0.0 0.0 0.0 194.1 207.8 0.0 300.2 0.0
1999 959.5 110.7 79.2 28.1 362.4 144.4 617.5 234.6 159.2 0.0 750.0 0.0 Total To Start Of Discounting ( 1/JAN/1996)
2000 997.6 115.0 82.4 5.9 356.0 136.7 607.7 301.7 182.2 0.0 750.0 0.0 257.0 0.0 35.0 605.0 0.0 0.0 0.0 -383.0 -577.5 0.0 129.2 0.0
2001 1,037.3 120.0 85.8 0.0 374.5 139.5 633.9 317.6 170.7 0.0 750.0 0.0
2002 951.9 117.2 89.2 0.0 344.7 145.3 607.3 255.4 122.2 0.0 661.9 0.0 1996 227.7 0.0 25.0 0.0 0.0 0.0 0.0 202.7 195.0 0.0 300.2 0.0
2003 873.4 106.8 92.8 0.0 306.7 133.8 547.2 233.3 99.3 0.0 584.1 0.0 1997 236.9 0.0 26.0 0.0 0.0 0.0 0.0 210.9 180.7 0.0 300.2 0.0
2004 801.5 97.1 96.6 0.0 324.9 116.5 538.5 166.4 63.0 0.0 515.5 0.0 1998 246.5 0.0 27.0 0.0 0.0 54.3 54.3 165.1 125.9 0.0 300.2 0.0
2005 735.4 88.2 100.5 0.0 281.2 99.5 469.0 165.9 55.9 0.0 454.9 0.0 1999 256.4 0.0 28.1 0.0 30.4 61.4 91.8 136.5 92.6 0.0 300.2 0.0
2006 674.7 80.1 104.6 0.0 252.3 89.8 422.2 148.0 44.4 0.0 401.4 0.0 2000 216.4 0.0 29.3 0.0 10.7 54.7 65.4 121.8 73.5 0.0 243.5 0.0
2007 619.2 72.6 108.8 0.0 225.6 80.6 378.9 131.5 35.1 0.0 354.3 0.0 2001 182.7 0.0 30.5 0.0 0.8 54.0 54.9 97.4 52.3 0.0 197.6 0.0
2008 568.1 65.8 113.2 0.0 200.8 72.2 338.8 116.1 27.6 0.0 312.6 0.0 2002 154.2 0.0 31.7 0.0 21.6 41.1 62.8 59.7 28.6 0.0 160.3 0.0
2009 521.3 59.4 117.7 16.7 171.1 64.3 294.7 92.1 19.5 0.0 275.9 0.0 2003 130.1 0.0 33.0 0.0 1.9 33.6 35.5 61.7 26.2 0.0 130.0 0.0
2010 478.4 53.1 122.5 43.5 137.6 58.3 249.0 63.4 11.9 0.0 243.5 0.0 2004 109.9 0.0 34.3 6.9 0.0 29.4 29.4 39.3 14.9 0.0 105.5 0.0
2011 439.0 47.2 127.4 9.1 129.5 52.8 229.4 73.1 12.2 0.0 214.9 0.0 2005 92.7 0.0 35.7 21.4 0.0 22.4 22.4 13.2 4.5 0.0 85.6 0.0
2012 402.7 42.2 126.0 0.0 120.4 41.1 203.7 73.0 10.9 0.0 189.6 0.0 2006 78.2 0.0 37.1 0.0 0.0 15.2 15.2 25.9 7.8 0.0 69.4 0.0
2013 369.5 38.0 124.6 0.0 107.0 35.7 180.8 64.1 8.5 0.0 167.3 0.0 2007 66.0 0.0 38.6 0.0 0.0 10.8 10.8 16.6 4.4 0.0 56.3 0.0
2014 339.2 34.2 123.1 0.0 94.2 32.0 160.4 55.7 6.6 0.0 147.7 0.0 2008 55.8 0.0 38.3 0.0 0.0 7.0 7.0 10.5 2.5 0.0 45.7 0.0
2015 311.1 30.7 121.7 0.0 82.3 28.4 141.5 47.9 5.0 0.0 130.3 0.0 2009 47.1 0.0 37.8 0.0 0.0 4.2 4.2 5.1 1.1 0.0 37.1 0.0
2016 285.5 27.6 120.3 0.0 71.6 25.1 124.2 41.1 3.8 0.0 115.0 0.0 2010 39.8 0.0 37.2 0.0 0.0 1.9 1.9 0.6 0.1 0.0 30.1 0.0
2017 262.0 24.7 118.9 0.0 61.7 21.9 108.3 34.8 2.9 0.0 101.5 0.0 2011 33.5 0.0 31.0 0.0 0.0 -0.0 -0.0 2.6 0.4 0.0 24.4 0.0
2018 240.5 22.4 111.3 0.0 55.0 19.0 96.4 32.8 2.4 0.0 89.6 0.0 2012 28.3 0.0 25.8 0.0 0.0 0.2 0.2 2.3 0.3 0.0 19.8 0.0
2019 220.5 20.7 104.4 0.0 49.2 17.2 87.1 29.0 1.9 0.0 79.0 0.0 2013 24.0 0.0 21.6 0.0 0.0 0.3 0.3 2.1 0.3 0.0 16.1 0.0
2020 202.5 18.9 97.7 0.0 44.3 15.5 78.6 26.2 1.5 0.0 69.8 0.0 2014 20.1 0.0 17.9 0.0 0.0 0.4 0.4 1.8 0.2 0.0 13.0 0.0
2021 185.9 17.2 91.4 0.0 39.8 14.0 71.0 23.4 1.2 0.0 61.6 0.0 2015 17.1 0.0 14.8 0.0 0.0 0.4 0.4 1.8 0.2 0.0 10.6 0.0
2022 170.3 15.7 83.9 0.0 36.3 12.6 64.6 21.8 1.0 0.0 54.3 0.0 2016 14.4 0.0 12.4 0.0 0.0 0.5 0.5 1.5 0.1 0.0 8.6 0.0
Remain Remain
2023 0.0 -37.6 360.4 0.0 -173.5 -33.6 -244.6 -115.8 -4.8 0.0 0.0 0.0 2017 0.0 0.0 57.0 0.0 0.0 -18.7 -18.7 -38.2 -3.2 0.0 0.0 0.0

Total 15,310.8 1,693.7 3,124.5 114.1 4,722.4 2,013.7 8,429.8 3,642.4 1,913.1 0.0 3,549.5 0.0 Total 2,277.9 0.0 670.1 28.3 65.5 373.3 438.7 1,140.8 808.6 0.0 895.9 0.0

These cash flows include Morecambe South only These cash flows include Morecambe North only
211/13b BP 13a 211/14 Shell 33/6 Rel. SUMMARY
4 7 Shell
2
The Murchison field is located in UK Quadrant 211 and Norwegian
11 8
211/18a BP 211/19a Conoco 33/9a Mobil Quadrant 33 some 195 km northeast of the Shetland Islands in the
15 13 Northern North Sea. The field was discovered in 1975 by Well 211/19a-
9 AREA 9 21 23 2 which encountered oil in Middle Jurassic sands of the Brent Group.
211/18b 16
Enterprise 12 DON Development of Murchison began in 1976 and involves one steel
10
platform. First oil was produced in September 1980 and peak oil
5 22 8
production was achieved in 1983. Oil is piped to the Sullom Voe
24
10 terminal via the Dunlin and Cormorant South fields. Gas is piped to St.
11 6 PLAYFAIR Fergus via the Brent field.
25 14 The current interests in the Murchison field in per cent. are:-
18 33/9b Statoil
17 MURCHISON 6 UK BLOCK 211/19a
Oryx (UK) Energy Ltd* 51.87
3 4
AREA 6 6 Chevron Petroleum Co. Ltd 25.93
19,20 33/9c
2 A NORWEGIAN BLOCK 33/9b
Mobil
8 3 Statoil 11.1
Mobil Exploration Norway 3.33
7 THISTLE Oryx (UK) Energy Ltd * 2.22
A
1 2 211/19b Rel.
Esso Exploration & Production Norway Inc. 2.22
DEVERON 5 A/S Norske Shell 2.22
1
4 Saga Petroleum A/S & Co. 0.42
Enterprise 0.23
7 Amoco Exploration Co. 0.23
211/23b 4 211/24a 211/24c Conoco Amerada Corp. of Norway 0.23
Amerada 8 9 OMV
7 0 4 km
OSPREY 3 operator *
211/23a Shell
- all percentages rounded to two decimal places

On the basis of the most recent unitisation, 77.8 per cent. of the field
reserves are attributed to UK Block 211/19a and 22.2 per cent. to
Norwegian Block 33/9b.

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Murchison field is located in the North Viking Graben and
straddles the median boundary with Norway. Murchison is surrounded
Oil Gravity (API) 38 by fields such as Brent, Dunlin, Statfjord, Thistle and Don all of which lie
Gas/Oil Ratio (scf/stb) 540 within a 20 km radius. Fields within a 50 km radius include Magnus,
Bubble Point Pressure, Pb (psig) 1900 Cormorant, Hutton and North West Hutton, Ninian and Gullfaks. All
Formation Volume Factor at Pi (rb/stb) 1.35 these fields contain oil in sandstones of the Brent Group and/or Statfjord
Oil Compressibility (vol/vol/psi) 8.3 x 10-6 Formation.
Original Reservoir Pressure, Pi (psig) 6434
At Datum Depth of (ft TVDSS) 9850
Reservoir Temperature (F) 230

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group
Geological Age Middle Jurassic
Porosity (per cent.) 18-25
Permeability (md) 10-5000
Average Water Saturation (per cent.) 10-30
Oil Water Contact (ft TVDSS) 10106 - deeper on south flank
Depth to Top of Structure (ft TVDSS) 9500

Reserves OIL + NGL GAS

Reserves (MMstb/Bcf) 361 73


Est. Production to 31.12.95 (MMstb/Bcf) 330 60
Remaining Reserves (MMstb/Bcf) 31 13
FIELD DESCRIPTION
Production
The structure of the Murchison field is an approximately square tilted
Water depth (feet) 512 fault block, dip closed to the northwest. The southeast flank is
Production Start Date September 1980 characterised by a series of downfaulted blocks which are oil bearing
Peak Production (Oil and NGL) (stb/day) 111000 below the main field oil water contact. These fault blocks are in limited
Platform(s) Steel Jacket Subsea pressure communication with the main field.
Number of Wells - Producers 14 3 The Brent Group reservoir quality is generally good with high
Water injectors 10 1 permeabilities in the Etive and Ness. The Rannoch in particular is of
Gas injectors 3 better quality than in most other North Viking Graben fields and
Oil and NGL Export Pipeline to Sullom Voe recovery factors are correspondingly higher. The oil has an API gravity
via Dunlin of 38 degrees and a gas oil ratio of 540 scf/stb. Low vertical permeability
Gas Export Northern Leg Gas pipeline to between the Etive and the Rannoch results in poor gravity segregation
Brent, then to St. Fergus via between the two, with water overriding in the high permeability Etive
FLAGS Formation. Production from Murchison began in 1980 and by the end of
1995, approximately 90 per cent. of its oil reserves had been produced.
Water injection has been used from the outset and, in addition, three
gas injection wells have been drilled in the west of the field.
The small Playfair accumulation to the north of Murchison may be
developed as a subsea completion tied back to Murchison in the future.
STRATIGRAPHY AND STRUCTURE

10300
The reservoir in Murchison is formed by Brent Group sandstones. These overlie MURCHISON

10300

10300

UNITED KINGDOM
the Lower Jurassic offshore mudstones of the Dunlin Group. The five constituent TOP BRENT
formations of the Brent Group (Broom, Rannoch, Etive, Ness and Tarbert ) are all

Murchison
DEPTH STRUCTURE 0 33/9
generally present. However, uplift of the crestal parts of the field during the Callovian 30
resulted in local erosion of the Tarbert Formation and the upper parts of the Ness 0 1 km 10 0
20
Formation. Structural growth occurring contemporaneously with sedimentation has 10

0
(Contours in feet TVDSS)

10
resulted in thickening of the Brent Group on the downthrown sides of faults.

10
The Brent Group is generally overlain by Middle - Upper Jurassic marine

6
010

0
00
mudstones. Locally there are Callovian aged marine sandstones overlying the Brent

C1

10
Group. These are the products of crestal stripping.

OW
The Murchison structure is a northwest dipping fault block which is bounded to
the south by a fault complex and to the west and east by major faults.
Compartmentalisation of the reservoir by minor faults is expected, particularly in the
southern part of the field. 00
3 99
4
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
00
The Brent Group represents the deposits of a northward prograding shallow 98
00
marine and deltaic complex in response to the onset of subsidence in the Viking 97

98 0
97
Graben and uplift in the central North Sea.

00
00

0
A

99
The Broom Formation at the base of the Brent Group consists of a thin
9600

0
1

980
development (generally < 4 feet) of medium to coarse grained, bioturbated
sandstones which commonly contain chamositic ooliths. These are interpreted as
sublittoral sandstones. 00
97 2
They are overlain by a coarsening - upward sequence, the Rannoch Formation,
which consists of the base of wave rippled and burrowed mudstones, which are
overlain by very fine to fine grained, variably argillaceous and micaceous
9700
sandstones. The sandstones are wave rippled and wavy laminated and burrowed in
the lower part, but become hummocky, cross-stratified and horizontally laminated in
the upper part. The Rannoch Formation is interpreted as representing a

NOR K
0
progradational offshore to middle shoreface sequence. 40 0

100
0 11 30

U
00

WAY
The Etive Formation represents the upper shoreface to backshore portion of the 10 11

00
1020
prograding shoreface system. The lower part of the formation is commonly 103 0 20
0

00
00 10

114
composed of very coarse to coarse, pebbly sandstones which overlie an erosion 10900
11000
surface. These sandstones commonly exhibit a gross fining-upwards and probably
represent tidal inlet or tidal distributary channel sandstones. The upper part of the
Etive Formation consists of fine to medium grained sandstones which have heavy (After Warrender J , 1991)
mineral concentrations, low-angle cross-bedding, high-angle cross-bedding and
water escape structures. These are interpreted as mixed foreshore and backshore
sandstones.
Continued progradation resulted in the shallow marine sandstones of the Etive shallow marine sandstones of the Tarbert Formation. These are variably micaceous
Formation being succeeded by the delta plain sediments of the Ness Formation. The and argillaceous. At the base there is commonly a thin (< 10 feet) coarse grained,
Ness Formation consists of interbedded sandstones, mudstones and coals. Lagoon cross-bedded or current rippled sandstone. This is overlain by very fine to fine
and bay shoreface, mouth bar, crevasse splay and distributary channel sandstones grained, cross-bedded and bioturbated sandstones. The Tarbert Formation is
are interbedded with lagoon/bay and floodplain mudstones and coals. interpreted as having a basal transgressive unit which is overlain by nearshore bar
Subsequent transgression of the Brent delta resulted in the deposition of the and muddy trough sandstones.

INTERPRETATIVE STRUCTURAL CROSS SECTION


Feet 211/19-3 211/19-4
WNW ESE
6000

7000
TERTIARY + CRETACEOUS
8000

UPPER JURASSIC Brent Group


9000

p
10000 Dunlin Grou
rd
11000 Pre - Statfjo
Statfjord Formation

12000 0 1 km

REPRESENTATIVE WELL SECTION - 211/19-4


211/19-4 CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15


Offshore mudstones. 1 2
TARBERT FM.

Stacked shallow marine sandstones.

M Geometry
Sheetlike sandbody.
M and K
9950

Py Generally moderate to locally poor.


M

Delta plain sediments comprising bay/lagoon


shoreface, distributary channel and channel
margin sandstones interbedded with bay
NESS FORMATION

and overbank mudstones.


S
Geometry
Sandstones of varied geometry locally
stacked into thicker sandbodies.
MIDDLE JURASSIC

and K
BRENT GROUP

Generally moderate to good.


1050

S Py

?
Upper shoreface and stacked tidal distributary
or tidal inlet sandstones.
ETIVE FORMATION

Geometry
Lenticular sandbodies coalesced into a
sheetlike sandbody.
and K
Generally very good to excellent due to
coarse, 'clean' nature of sandstones.
1150
RANNOCH FM.

Lower to middle shoreface sandstones.


M
Geometry
Sheetlike sandbody.
and K
M Poor to locally good, reflecting textural
characteristics.

1. HUMBER GROUP 2. HEATHER FORMATION


RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
N S 10000
211/19-M13 211/19-4 211/19-2 211/19-M15

Heather

Murchison
2 4 Sand
Unit

5
1000
0

Ness Formation
100

100 feet

PERMEABILITY (md.)
MIDDLE JURASSIC

10
Brent Group
Etive Fm.

1
Rannoch Formation

F
0.1
Broom Fm.

1. Lower Jurassic
2. Humber Group
3. Dunlin Group
1 3 0.01
4. Heather Formation
5. Tarbert Formation 0 10 20 30
POROSITY (per cent.)

The Broom Formation forms a thin (< 5 feet) sheetlike sandbody which is isolated from Porosity and permeability are reduced in the water leg as
other Brent Group sandstones by a thick development of basal Rannoch Formation compared to the oil leg, reflecting continued diagenesis in the water
mudstones. As a result of both these factors the Broom Formation does not form a reservoir leg following hydrocarbon emplacement. In general, the principal
unit in Murchison. determinants of porosity/permeability characteristics are primary
The Rannoch Formation (175 feet - 200 feet thick) consists of offshore mudstones which textural features with coarser, cleaner sandstones having better
are overlain by a coarsening-upward sequence of sandstones. Only the upper part of the porosity and permeability.
Rannoch Formation, where sandstones are coarser and cleaner, is of potential reservoir The Rannoch Formation is characterised by a general upwards
quality. However, reservoir quality is locally reduced by the development of concretionary increase in porosity and permeability. Concretionary calcite cement
calcite cements. Overall the Rannoch Formation forms a sheetlike sand body with a net to locally causes severe restriction of porosity and permeability.
gross ratio of about 0.6. The Etive Formation is characterised by good to excellent
The relatively coarse, clean sandstones of the Etive Formation (35 feet - 95 feet thick) porosity and permeability. This is a reflection of its relatively coarse,
form a sheetlike sand body. Net to gross ratio is generally greater than 0.8. Within the Ness clean nature.
Formation sandstones occur as more discrete sand bodies which are separated by possibly Within the Ness Formation both porosity and permeability are
laterally extensive mudstones. Sand body geometry is variable. Channel sand bodies have extremely variable, reflecting the range of sand body types. Primary
ribbon like geometries unless stacking and coalescence have resulted in a tabular textural characteristics are the main control on porosity/permeability
geometry. Lagoon/bay shoreline, mouth bar and crevasse splay sandstones tend to have characteristics. Thick distributary channel sand bodies generally
lobate to sheetlike geometries. have the best reservoir quality, with average porosities of about 25
The Tarbert Formation (generally < 30 feet thick) was probably originally sheetlike in per cent. and permeabilities commonly 1500 md or greater.
geometry. Crestal erosion of the unit has modified both its thickness and distribution. Net to The Tarbert Formation generally has lower average porosities
gross ratios are generally about 0.6, reflecting the fact that fine grained, relatively clean (15-20 per cent.) and permeability is generally less than 500 md.
nearshore bar sandstones are interbedded with argillaceous, very fine grained inter-bar This reflects the micaceous, argillaceous, relatively fine grained
sandstones. The nearshore bar sandstones will have lenticular to sheetlike geometries. nature of the unit.

FLUID PROPERTIES RESERVOIR PRESSURE

The Murchison field contains relatively low shrinkage undersaturated black oil with a gas The Murchison field is overpressured by around 2200 psi relative
oil ratio of 540 scf/stb. to a hydrostatic gradient to surface of 0.44 psi/ft. The PVT data imply
an oil gradient of 0.29 psi/ft.
600 1.5 0.7
Rs 9800

B0
1.4 0.6
400
B0 (rb/stb)
Rs (scf/stb)

0 (cp)

1.3 0.5 0.29 psi/ft


10000
DEPTH (feet TVDSS)

200 0
1.2 0.4
OWC @ 10106 ft TVDSS

@ 230 F
0 1.1 0.3
0 2000 4000 6000 8000 10200
0.44 psi/ft
PRESSURE (psig)

CONTROLS ON RECOVERY 10400


6400 6500 6600 6700

The overall recovery factor from Murchison is expected to be high at around 50 INITIAL RESERVOIR PRESSURE (psig)
per cent. Good pressure communication across the field is responsible for this high
recovery, although due to the large permeability contrasts between individual sands,
large volumes of produced water will have to be handled. In the complex oil bearing
fault terraces to the south, limited pressure communication with the main field is the expected to have a recovery of around 55 per cent. The permeability contrast
primary control on recovery. between the Etive and the Rannoch sands, particularly the very high permeability
The recovery from the individual sands within the Brent Group varies from 35 to sand at the base of the Etive, reduces the likely recovery from the Rannoch. This is
55 per cent. The Tarbert and Ness sands are of good quality with high permeabilities due to injection water overriding the Rannoch sand and causing premature water
in the Ness channel sands. The combined recovery from these sands is expected to breakthrough. Recovery from the Rannoch sand, although it has a higher
be around 45 per cent. The high permeability Etive sand is permeability than is typical, is consequently expected to be only around 35 per cent.
FACILITIES SPECIFICATIONS

UNITED KINGDOM
Water Depth 512

Murchison
(feet)
Platform Type steel jacket
Function drilling/production/
accommodation

Jacket Weight 20300


(tonnes)
Total Weight 57844
(tonnes)

Accommodation 198

Well Slots 33
Wells Planned 33 (3 subsea)

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 164000


(bbl/day)

Oil Export 16" x 16km pipeline to Dunlin then


to Sullom Voe via Cormorant S.
Gas Export 6 x 2.5km, T to Northern Leg Gas Pipeline
then FLAGS pipeline to St. Fergus via Brent

(Reproduced by courtesy of Conoco (U.K.) Ltd)

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
125 100
Pre Corporation Tax
Liquid
Net Present Value 893.37 573.52 439.19 367.25 306.62 232.78 143.62 Gas

@@@


Net Present Value (Deflated) 1,337.81 783.89 555.11 433.54 331.75 208.90 63.26

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 1.75 1.44 1.25 1.13 1.02 0.86 0.62
Profit/Inv Ratio (Deflated) 1.01 0.72 0.57 0.47 0.39 0.27 0.09 100 80
NPV/Unit Oil Equiv. 3.08 3.36 3.42 3.42 3.39 3.27 2.93
NPV/Unit Oil Equiv. (Deflated) 2.92 2.77 2.55 2.34 2.10 1.66 0.71

Payback Year 1982


Nominal Rate Of Return % 38.61 75 60
Real Rate Of Return % 23.08

Post Corporation Tax

@@@


Net Present Value 473.40 310.18 236.68 196.22 161.51 118.48 65.38 50 40
Net Present Value (Deflated) 642.71 341.66 212.76 143.29 84.64 13.38 -71.40
Profit/Inv Ratio 0.93 0.78 0.67 0.60 0.54 0.44 0.28
Profit/Inv Ratio (Deflated) 0.48 0.31 0.22 0.16 0.10 0.02 -0.11
NPV/Unit Oil Equiv. 1.63 1.82 1.85 1.83 1.78 1.67 1.33
NPV/Unit Oil Equiv. (Deflated) 1.40 1.21 0.98 0.77 0.54 0.11 -0.80 25 20
Nominal Rate Of Return % 30.95
Real Rate Of Return % 15.66

Earnings Data
0 0
Gross Revenue 4,391.19 2,701.04 2,079.20 1,763.68 1,506.25 1,202.14 846.52 1975 1980 1985 1990 1995 2000 2005
Royalty 436.55 272.31 209.44 177.15 150.68 119.33 82.73
Petroleum Revenue Tax 1,586.48 981.55 746.12 625.06 526.00 409.31 274.86 Year
Corporation Tax 419.97 263.34 202.51 171.04 145.12 114.30 78.24
Capital Expenditure 509.59 399.44 351.44 324.64 301.12 270.84 230.47
Operating Costs 819.10 366.47 242.60 188.91 149.70 108.67 67.83

Gross Revenue (Deflated) 7,265.88 4,663.19 3,658.20 3,136.30 2,703.83 2,184.50 1,564.13
Royalty (Deflated) 725.13 463.15 360.56 307.20 263.03 210.19 147.60
Petroleum Revenue Tax (Deflated) 2,588.13 1,614.27 1,234.00 1,037.61 876.26 685.29 463.57
Corporation Tax (Deflated) 695.10 442.23 342.35 290.25 247.11 195.51 134.66
Capital Expenditure (Deflated) 1,325.66 1,086.64 976.51 913.21 856.54 781.91 679.34
Operating Costs (Deflated) 989.72 494.04 346.23 278.89 227.86 172.18 113.40 CASH FLOW REPORT
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1976 0.0 0.0 0.0 3.9 0.0 0.0 0.0 -3.9 -75.9 0.0 0.0 0.0
1977 0.0 0.0 0.0 50.6 0.0 0.0 0.0 -50.6 -783.6 0.0 0.0 0.0
1978 0.0 0.0 0.0 116.7 0.0 0.0 0.0 -116.7 -1,442.9 0.0 0.0 0.0
1979 0.0 0.0 0.0 77.8 0.0 0.0 0.0 -77.8 -821.9 0.0 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1980 37.8 0.0 6.1 62.2 0.0 0.0 0.0 -30.5 -262.9 7.0 0.0 0.0
1981 360.9 17.8 21.2 31.1 0.0 0.0 64.1 244.5 1,658.6 54.5 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1982 579.7 52.6 24.2 54.5 0.0 0.0 142.9 358.1 2,008.2 84.9 0.0 0.0
1983 620.7 68.2 28.6 38.9 287.8 119.3 484.7 68.4 327.5 86.4 6.1 0.0
Pre Corporation Tax 1984 694.8 74.9 33.8 15.6 345.2 96.8 516.9 128.5 544.5 84.0 15.2 0.0
1985 555.8 70.6 36.6 3.9 376.8 82.3 529.7 -14.4 -53.7 72.4 13.9 0.0
Net Present Value -11.47 -1.81 1.98 3.93 5.50 7.31 9.27 1986 221.9 41.3 36.3 3.9 161.9 47.1 250.4 -68.7 -223.9 61.5 12.7 0.0
Net Present Value (Deflated) -3.36 3.30 5.86 7.16 8.19 9.34 10.53 1987 217.6 20.6 33.0 3.9 120.2 15.2 156.0 24.7 72.0 53.0 11.5 0.0
NPV/Unit Oil Equiv. -0.45 -0.08 0.10 0.21 0.30 0.43 0.61 1988 140.5 17.1 31.2 3.9 78.5 14.5 110.1 -4.7 -12.5 45.1 9.1 0.0
1989 118.1 12.4 31.6 7.8 54.1 8.4 74.9 3.8 8.8 28.8 10.9 0.0
Post Corporation Tax 1990 134.7 12.2 33.5 7.8 58.3 7.2 77.8 15.7 30.8 28.0 6.2 0.0
1991 98.3 11.2 35.5 7.8 39.3 7.8 58.3 -3.3 -5.4 23.3 7.8 0.0
Net Present Value -17.78 -7.48 -3.36 -1.22 0.54 2.61 4.94 1992 120.5 10.4 36.4 11.7 43.4 4.5 58.4 14.1 20.5 29.6 13.7 0.0
Net Present Value (Deflated) -9.27 -2.02 0.84 2.31 3.51 4.91 6.44 1993 72.6 8.8 35.8 3.9 25.1 6.5 40.3 -7.4 -9.6 17.3 6.7 0.0
NPV/Unit Oil Equiv. -0.70 -0.34 -0.17 -0.06 0.03 0.16 0.33 1994 53.9 4.7 34.9 3.9 5.1 2.5 12.3 2.7 3.2 14.0 5.7 0.0
1995 55.9 3.7 34.0 0.0 8.4 1.3 13.4 8.5 9.1 14.0 7.6 0.0
Earnings Data Total To Start Of Discounting ( 1/JAN/1996)
4,083.7 426.5 492.7 509.6 1,603.9 413.7 2,590.2 491.2 990.8 256.9 46.4 0.0
Gross Revenue 307.48 260.45 237.91 224.75 212.86 197.07 175.19
Royalty 10.01 10.59 10.62 10.57 10.46 10.25 9.80 1996 50.8 3.7 33.3 0.0 7.4 1.5 12.6 4.9 4.7 12.3 6.4 0.0
Petroleum Revenue Tax -17.46 -4.90 0.05 2.59 4.65 7.03 9.64 1997 47.8 3.4 29.6 0.0 7.3 1.3 12.0 6.2 5.3 10.8 5.3 0.0
Corporation Tax 6.31 5.67 5.34 5.14 4.96 4.70 4.32 1998 43.6 3.2 30.1 0.0 5.7 1.6 10.5 3.0 2.3 9.5 4.4 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1999 39.6 2.7 30.7 0.0 3.6 1.1 7.4 1.5 1.0 8.3 3.6 0.0
Operating Costs 326.39 256.57 225.26 207.67 192.24 172.47 146.48 2000 36.1 2.3 31.3 0.0 1.7 0.6 4.6 0.2 0.1 7.3 2.9 0.0
2001 32.7 2.0 29.1 0.0 0.9 0.1 3.0 0.5 0.3 6.4 2.3 0.0
Gross Revenue (Deflated) 273.94 234.25 215.11 203.88 193.72 180.17 161.29 2002 30.1 1.8 27.1 0.0 0.7 0.0 2.5 0.5 0.2 5.7 1.7 0.0
Royalty (Deflated) 10.75 10.81 10.65 10.50 10.33 10.03 9.51 2003 26.9 1.6 24.6 0.0 0.4 0.0 2.0 0.2 0.1 4.9 1.2 0.0
Petroleum Revenue Tax (Deflated) -6.98 1.72 5.08 6.78 8.14 9.69 11.30 Remain
Corporation Tax (Deflated) 5.90 5.32 5.02 4.84 4.67 4.44 4.09 2004 0.0 -10.6 90.5 0.0 -45.2 -0.0 -55.8 -34.7 -13.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 273.53 218.42 193.51 179.45 167.06 151.10 129.95 Total 307.5 10.0 326.4 0.0 -17.5 6.3 -1.1 -17.8 0.8 23.8 10.1 0.0

These cash flows include Murchison UK reserves only


44/16 Lasmo 44/17 Conoco 44/18 Arco SUMMARY
44/21b Amerada 44/22c Conoco 10 44/23b Arco
8 The Murdoch field is located in the Silverpit Basin of the Southern
0 5 km HUNTER
8 North Sea Gas Basin some 150 km northeast of Dimlington. The field is
6 MURDOCH located entirely within Block 44/22a and was discovered in 1984 by Well
3 44/22a-1. The gas bearing intervals are Westphalian 'A' and 'B' fluvial
44/21a Conoco 2 44/22a
3
Con. sandstones of Carboniferous age.
BOULTON 7 4 1 Annex B approval was granted in April 1992 and first gas was
5 7,7a
5 produced in October 1993. The field has been developed in conjunction
2 4 CAISTER with the nearby Caister field in Block 44/23a and is termed the Caister
10
6 Murdoch System (CMS). The fields are operated separately and gas
7 2
44/21c 44/22b Conoco 9 export is to Theddlethorpe via a shared pipeline.
Mustang 9 1 6 The CMS is the first Carboniferous development in the North Sea.
3
1 4,4a,4RE 8 Participants in the field in per cent. are:-
5
44/23a Total
44/26b Lasmo 44/27a 44/27c 44/ 44/28d 44/28a
Conoco* 54.50
Lasmo Mustang 27b Conoco
3 Shell Arco 34.00
Las. Total 11.50
4
operator *
4
SCHOONER
2 KETCH
44/26a 2
Shell 1
3

1 2,2a
1

5 44/28b
44/26c Amoco 44/28c Lasmo Shell

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Murdoch field is located in the Silverpit Basin area of the
Southern North Sea Gas Basin. The nearest producing gas fields are
Gas Gravity S.G.(air=1) 0.64 the Esmond Complex, some 60 km to the northwest, which produces
Condensate Gas Ratio (bbl/MMscf) 8 from the Triassic Bunter Sandstone, and the Rotliegendes Ravenspurn
Gas Expansion Factor (vol/vol) 280 and Ann/Audrey fields which lie some 90 km to the west and 50 km to
Reservoir Pressure, Pi (psig) 6151 the south respectively. The Markham field lies approximately 50 km to
at Datum Depth of (ft TVDSS) 11883 the southeast and contains gas in the Rotliegendes. The Caister field is
located just to the east of Murdoch and contains gas in the Triassic and
Reservoir Temperature (F) 235
Carboniferous.
The Silverpit Basin is believed to contain very little reservoir potential
Rock Properties
in the Rotliegendes interval as the section is mudstone dominated. This
explains the isolation of the Murdoch and Caister fields with regard to
Rock Type Sandstone
the surrounding Rotliegendes accumulations.
Stratigraphic Unit Westphalian B
Geological Age Carboniferous
Porosity Range (per cent.) 3-15
Permeability Range (md) 0.05-10
Connate Water Saturation (per cent.) 40
Gas Water Contact (ft TVDSS) 12125
Depth to top of Structure (ft TVDSS) 11400

Reserves
FIELD DESCRIPTION
Total Gas Reserves (Bcf) 320
Est. Gas Production to 31.12.95 (Bcf) 93 The field is an elongate northwest-southeast oriented asymmetric
Remaining Gas Reserves (Bcf) 227 anticline which is fault closed to the northeast and southeast and dip
closed to the southwest. The gas bearing intervals are fluvial sediments
Production of Carboniferous Westphalian age. The main reservoir horizon is
termed the Murdoch Sandstone and is a stacked fluvial channel
Water Depth (feet) 98 sequence of approximately 120 feet thickness and is reported as lower
Production Start Date October 1993 Westphalian 'B' age. Only the Murdoch Sandstone is considered to be
Peak Gas Production (yrly average) (MMscf/day) 125 in 1995 laterally continuous over the whole area of the field. The Caister Sand,
a lateral equivalent, forms one of the reservoirs in the Caister field.
Platforms not normally manned
Other potential gas bearing sandbodies are seen both above and
steel jacket
below this horizon. The reservoir is sealed by mudstones of the Permian
Number of Wells 5
Rotliegendes Silverpit Formation. Porosities and permeabilities are
Gas Export Pipeline to Theddlethorpe
generally poor to moderate but are marginally better in the Murdoch
Sandstone than elsewhere in the observed Carboniferous sequence.
Thin zones of high permeability occur throughout the Murdoch
sandstone interval.
The reservoir contains a wet gas with a minor amount of condensate
recovered during testing. The gas contains minor amounts of nitrogen
and carbon dioxide.
Development of the field involved a single not normally manned
platform with capacity for 13 wells although only five wells are
anticipated as being required. Plateau rate was achieved immediately
following start up. Conoco is planning to invest in a compressor platform
in late 1996. Gas export is via a Murdoch/Caister dedicated pipeline to
Theddlethorpe. The same pipeline is due to be used for exportation of
Schooner gas when production begins in late 1996.
Gas deliverability has been increased in the field by use of sub-
horizontal wells which optimise the thin intra-Murdoch Sandstone high
permeability layers.
STRATIGRAPHY AND STRUCTURE
44/22a
11
70
0 MURDOCH The Murdoch field lies on the same northwest-southeast

UNITED KINGDOM
11
119
orientated structural trend as the neighbouring Caister field. The

80
0
12 0 TOP MURDOCH

0
1 121
12 00 00 structure is believed to be a flower structure which was generated
30
DEPTH STRUCTURE

Murdoch
12 0 11900 during strike slip faulting and compression during the early Permian.
50 6
0
11700 0 2 km The structure is a highly faulted asymmetrical anticline which is
11700 3
bounded on both long sides by major reverse faults, and at its
(Contours in feet TVDSS)

12100

11900
southeastern end by a normal fault. Closure to the southeast,

12300
D4
northeast and northwest is controlled by these faults but to the

11
115

30
00
southwest is controlled by dip within the main fault block. The field is

0
115
11900
1210

00
D5 1150
0 114
cut by numerous subordinate faults.

0
D1 00
Gas is encountered in fluvial sandbodies within the Carboniferous
117 D3
00 Westphalian 'A' and 'B' intervals. The Carboniferous itself forms both

12
10
lateral and vertical seal to the reservoir but the Lower Permian

0
12

11700
20
0
4
D2
1170
Silverpit Formation also caps the reservoir where the Carboniferous
11
90
0
0
1
horizons subcrop against the Variscan unconformity surface or are
12
10
0 11900 11500
juxtaposed by faulting. The crest of the structure lies at approximately
7 GW
C 12
11300 feet TVDSS giving a maximum gas column of some 800 feet.
125 11300 Other potential reservoir horizons in the area are the sandstones

11
of the Triassic Bunter Sandstone Formation. In the Murdoch field

50
12

0
30 11

12
0 90
area these horizons are not seen to be gas bearing although they are

10
0 11

0
70
0
of reservoir quality. The same horizon is gas bearing in the nearby
121
5 Caister field area. The Jurassic has been entirely eroded in the
00 Silverpit Basin area.

(Modified after Gunn R, Hwang NJ, Rezigh A, 1993)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT


pebbly conglomeratic horizons of chert and quartz locally developed. The sediments
The Carboniferous sequence comprises sandstones, siltstones, shales and coals were deposited as in-channel bars and subaqueous dunes in a low sinuosity fluvio-
which were deposited in an upper delta plain environment traversed by numerous distributary channel. The sandstones are predominantly tabular, planar cross-
distributary channels. Most of the sandstone units are thin and laterally stratified with minor massive and asymptotically based foreset units. Small scale
discontinuous and represent minor channels, crevasse splays and levee deposits. trough cross-bedding and asymmetrical ripple laminations are also evident.
The Murdoch Sandstone is the only clearly correlatable sandstone unit in the area Conglomeratic horizons represent channel lag or channel bar sediments. The
and lies close to the base of the Westphalian 'B' sequence. Immediately below this sandstones exhibit a general fining upwards sequence which terminates in a channel
stacked channel unit lies a field-wide horizontally laminated argillaceous siltstone abandonment fill consisting of sparsely bioturbated siltstones overlain by shales and
unit of Westphalian 'A' age which is interpreted as a shallow water lacustrine deposit. coals.
The Murdoch Sandstone is a fine to medium grained sandstone with

INTERPRETATIVE STRUCTURAL CROSS SECTION


MURDOCH CAISTER
44/21-1 44/22a-3 44/22a-1 44/23a-2 44/23a-1 44/24-1
Feet W E

0
TERTIARY

Chalk Group Cromer Knoll Group

gh Group
5000 Haisborou
TRIASSIC ne
Sandsto
Bunter
ale
Bunter Sh

PERMIAN Zechstein Group


10000
Rotliegendes Group
?
US
NIFERO
CARBO
0 5 10 km
15000

REPRESENTATIVE WELL SECTION - 44/22a-1

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 5 25 45 -15

Flood plain sandy mudstones (interbedded


with argillaceous sandstones) and crevasse
splay sandstones
WESTPHALIAN 'B'

11800

44/22a-1

M
CARBONIFEROUS

11850

M
11900

Stacked fluvial channel sandstones

Geometry
M3

Tabular and planar cross-stratified incised


channel units forming a laterally extensive
MURDOCH SANDSTONE

sand body
11950

and k
Poor to moderate. Best quality observed
in very coarse grained to pebbly channel
lag and bar deposits
M2

12000

M
M1

Shallow water lacustrine mudstones at top


WESTPHALIAN 'A'

12050
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
E

Silverpit Fm.
44/22a-1 10000

Permian
0
W

Murdoch
44/22a-3
50

ity
onform
an Unc 1000
100 feet Hercyni

100

PERMEABILITY (md.)
+
+ +
+ + +
10 + ++
+ +
+ ++ ++
+ ++++++++++++
+ + + + +++++ + ++ + +
+ + ++++++ +++++++++++ ++++++ + +
+

Carboniferous
+ + + +++++ +++++++++ +++++
+
++ ++++
++ ++++++
+++++
++++++
+++ +
+ + ++++
+ + +
+ +
+ + +++++++++++++ +
+ ++++++++++++++
1 +
+ + +
+
+ ++++++++ ++ +
+ + +
+++ ++++ +++ ++++++++++++++++++++ + +
+ + +++ +++ +++++++++++++++ ++ + +++++++
++
+++++ ++++ ++++ +++
+ ++++++++++ + ++++++++++++ ++
+
++ + +
+ + + +
+ + +
+ +
+ ++++++++++++ +
+ ++ + +
+ + + +
0.1 + ++ + +
+ +
+ +
+

Westphalian 'B'
Murdoch Sst.
M3
++
+

M2
0.01 +
M1 0 10 20 30
POROSITY (per cent.)

Westphalian 'A'
Porosity values in the Westphalian sequence as a whole are poor
ranging from 3 to 15 per cent. and averaging approximately 8 per
cent. Values in the Murdoch Sandstone unit are moderate with
values in the range 5 to 20 per cent with an average of approximately
10 per cent. The better porosity is clearly associated with the
The Murdoch Sandstone Unit is the only sandstone body that is considered to be of presence of cleaner channel sand units. Permeability values show a
significance as a reservoir unit in the Murdoch field and is interpreted as being a stacked similar pattern with Westphalian values ranging from 0.05 to 10 md
multistorey and multilateral channel sequence. Average thicknesses of the unit are whereas the Murdoch Sandstone unit exhibits values in the range of
approximately 120 feet and individual fining upwards channel sequences may be up to 70 0.8 to 12 md. Thin coarse grained horizons in the core channel area
feet thick which suggests a channel belt width in excess of 10 km. The channel sequence of the field do show permeabilities of up to 1200md which result in
is interpreted as a sheet like sand body probably extending over the entire area of closure thin reservoir intervals dominating production. Overall the values are
of the field. The channel axes are interpreted as being oriented in a north-south direction moderate.
from regional depositional models and thus cross the area of closure at an oblique angle to It is expected that the Westphalian sequences will show a
the long axis of the structure. The internal architecture of the Murdoch Sandstone is complex pore development history. By analogy to Rotliegendes
complex but may be treated as a homogeneous unit due to the lack of significant sediments that underwent a similar burial and charging history it is
stratification. However, local high permeability pebbly sandstones and conglomerates do likely that the porosity is principally a secondary mouldic porosity
impose an important heterogeneity which may affect reservoir performance. resulting from the dissolution of labile grains in the original sediment.
Other thinner channel sandbodies in the Westphalian sequence that do not exhibit Primary sedimentary textures are not therefore expected to exert
considerable lateral continuity are considered to be of a much smaller areal extent. These other than a broad control on porosity/permeability relationships.
units may extend over considerable areas of the field and will show poor communication
with each other due to the highly complex channel sandstone architecture. These gas RESERVOIR PRESSURE
bearing sands will contribute to overall reserves although the degree of their extent and
connectivity is unclear on the basis of available data. None of the RFT data available from released wells tested
formation pressures in the water leg of the Murdoch field. A gas
down to is suggested by the RFT data at a depth of 11870 feet
FLUID PROPERTIES TVDSS. The deepest tested interval from DSTs suggest a deeper
gas down to at 11883 feet TVDSS although no PLT data were
The gas held in the Murdoch field has a specific gravity of 0.64. Condensate gravity is available to verify this. The operator maps a gas water contact at
some 70 API. Dew point pressure is 3450 psig at 235F and the gas expansion factor at 12125 feet TVDSS. Reservoir pressure is 6151 psig at a depth of
dew point is 0.980. Viscosity is 0.0192 centipoise and at dew point the fluid composition is 11883 feet TVDSS. The available data suggest a gas gradient of 0.1
as follows: psi/ft and a gas column of at least 700 feet. At the gas water contact
the reservoir is overpressured by approximately 700 psi, based on a
1.18 5.0 pressure gradient of 0.45 psi/ft.
z factor
VOLUME OF RETROGRADE LIQUID (vol/vol)

Composition Well VRL


(mol. %) 44/24a-1
GAS DDEVIATION FACTOR Z

CO2 3.02 1.14 4.0


N2 4.67
H2S -
1.10 3.0 11000
C1 85.37
C2 4.38
C3 1.17 2.0
1.06
C4 0.48
C5 0.20
C6 0.14 1.02 1.0
C7+ 0.57 11500
DEPTH (feet TVDSS)

S.G. (Air=1.0) 0.64


C.V. (Btu/scf) 1038 0.98 0.0 0.1 psi/ft
0 2000 4000 6000 8000
PRESSURE (psig)

Tested GDT @ 11870 ft TVDSS

12000
CONTROLS ON RECOVERY
Mapped GWC @ 12125 ft TVDSS
The recovery factor for the Murdoch Sandstone unit is expected to be moderate.
The main controls on recovery are:

moderate reservoir quality


12500
good internal communication within the sand unit facilitates recovery by depletion
successful development of the field with sub-horizontal wells 6100 6200 6300 6400 6500

installation of compression facilities - planned for the late 1990s INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

UNITED KINGDOM
MURDOCH Water Depth 98
PLATFORM SCHEMATIC (feet)

Murdoch
Platform Type 4 leg steel jacket
Function Wellhead Production

Jacket Weight 1200


(tonnes)
H
Total Weight of Structure 2550
(tonnes)

Accommodation Not normally manned


Control via Theddlethorpe
Well Slots 13
Wells 5 planned

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput 140


(MMscf/day)

Gas Export 26" x 180 km pipeline to


Theddlethorpe
(shared with Caister)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 125

Net Present Value 405.68 244.00 175.80 139.64 109.52 73.44 31.15
Net Present Value (Deflated) 342.93 196.44 136.52 105.02 78.87 47.63 11.08

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 1.48 1.03 0.80 0.67 0.55 0.40 0.19
Profit/Inv Ratio (Deflated) 1.17 0.77 0.58 0.47 0.37 0.24 0.06 100
NPV/Unit Oil Equiv. 7.61 6.47 5.63 5.04 4.43 3.50 1.91
NPV/Unit Oil Equiv. (Deflated) 6.91 5.50 4.57 3.94 3.30 2.33 0.69

Payback Year 1997


Nominal Rate Of Return % 25.90 75
Real Rate Of Return % 22.08

Post Corporation Tax

Net Present Value 271.81 156.98 108.30 82.42 60.82 34.92 4.56 50
Net Present Value (Deflated) 225.37 120.69 77.68 55.02 36.20 13.70 -12.55
Profit/Inv Ratio 0.99 0.66 0.49 0.40 0.31 0.19 0.03
Profit/Inv Ratio (Deflated) 0.77 0.47 0.33 0.25 0.17 0.07 -0.07
NPV/Unit Oil Equiv. 5.10 4.16 3.47 2.97 2.46 1.66 0.28
NPV/Unit Oil Equiv. (Deflated) 4.54 3.38 2.60 2.06 1.51 0.67 -0.78
25
Nominal Rate Of Return % 20.99
Real Rate Of Return % 17.33

Earnings Data
0
Gross Revenue 879.44 577.20 461.16 401.01 351.16 291.15 218.84 1990 1995 2000 2005 2010
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 1.15 1.12 1.01 0.89 0.71 0.47 Year
Corporation Tax 133.87 87.03 67.51 57.23 48.69 38.51 26.59
Capital Expenditure 275.00 238.01 219.59 208.60 198.51 184.84 165.37
Operating Costs 198.76 94.03 64.65 51.75 42.24 32.15 21.86

Gross Revenue (Deflated) 770.82 522.27 423.76 371.83 328.28 275.14 209.93
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 1.36 1.31 1.08 0.92 0.78 0.60 0.38
Corporation Tax (Deflated) 117.55 75.75 58.84 50.00 42.67 33.92 23.63
Capital Expenditure (Deflated) 293.53 254.97 235.72 224.21 213.63 199.28 178.78
Operating Costs (Deflated) 133.00 69.55 50.44 41.68 35.00 27.63 19.69

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

ECONOMIC INDICATORS FROM 1/1/1996 1991 0.0 0.0 0.0 15.0 0.0 0.0 0.0 -15.0 -25.0 0.0 0.0 0.0
1992 0.0 0.0 0.0 75.0 0.0 0.0 0.0 -75.0 -109.2 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1993 17.6 0.0 2.2 90.0 0.0 0.0 0.0 -74.6 -97.0 0.0 27.9 0.0
1994 69.1 0.0 7.7 10.0 0.0 0.0 0.0 51.4 60.8 0.0 102.8 0.0
Pre Corporation Tax 1995 82.1 0.0 4.0 15.0 0.0 0.0 0.0 63.1 67.6 0.0 125.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value 455.81 383.42 344.91 321.86 300.87 272.96 234.59 168.8 0.0 13.9 205.0 0.0 0.0 0.0 -50.1 -102.7 0.0 93.3 0.0
Net Present Value (Deflated) 404.79 337.09 303.34 283.50 265.57 241.85 209.31
NPV/Unit Oil Equiv. 12.06 12.10 11.94 11.80 11.64 11.38 10.95 1996 82.9 0.0 5.0 70.0 0.0 10.6 10.6 -2.7 -2.6 0.0 115.0 6.3
1997 95.9 0.0 6.2 0.0 0.0 13.1 13.1 76.5 65.5 0.0 110.0 25.0
Post Corporation Tax 1998 83.2 0.0 6.5 0.0 0.0 20.2 20.2 56.5 43.1 0.0 87.7 25.0
1999 72.8 0.0 6.8 0.0 0.0 18.3 18.3 47.8 32.4 0.0 69.8 25.0
Net Present Value 321.94 272.35 245.72 229.70 215.05 195.49 168.43 2000 64.4 0.0 7.0 0.0 0.0 16.5 16.5 40.9 24.7 0.0 55.7 25.0
Net Present Value (Deflated) 287.23 240.42 216.88 202.98 190.37 173.62 150.50 2001 55.0 0.0 7.3 0.0 0.0 15.0 15.0 32.7 17.6 0.0 44.4 21.8
NPV/Unit Oil Equiv. 8.52 8.59 8.51 8.42 8.32 8.15 7.86 2002 46.9 0.0 7.6 0.0 3.5 12.7 16.2 23.0 11.0 0.0 35.3 19.0
2003 40.1 0.0 7.9 0.0 0.9 9.3 10.2 22.0 9.4 0.0 28.2 16.5
Earnings Data 2004 34.4 0.0 7.8 0.0 0.0 8.9 8.9 17.7 6.7 0.0 22.4 14.5
2005 29.5 0.0 7.7 0.0 0.0 7.5 7.5 14.3 4.8 0.0 17.9 12.5
Gross Revenue 710.67 558.34 493.43 457.71 426.75 387.43 336.07 2006 25.5 0.0 7.6 0.0 0.0 6.2 6.2 11.7 3.5 0.0 14.3 11.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2007 21.9 0.0 7.6 0.0 0.0 5.2 5.2 9.1 2.4 0.0 11.4 9.5
Petroleum Revenue Tax 0.00 1.47 1.64 1.63 1.57 1.43 1.17 2008 18.9 0.0 7.4 0.0 0.0 4.2 4.2 7.3 1.7 0.0 9.0 8.3
Corporation Tax 133.87 111.07 99.19 92.16 85.82 77.46 66.16 2009 8.3 0.0 5.0 0.0 0.0 3.4 3.4 -0.1 -0.0 0.0 0.0 7.3
Capital Expenditure 70.00 68.31 67.36 66.74 66.14 65.28 63.90 2010 7.5 0.0 5.0 0.0 0.0 0.8 0.8 1.7 0.3 0.0 0.0 6.3
Operating Costs 184.86 105.15 79.53 67.48 58.16 47.77 36.42 2011 6.8 0.0 4.9 0.0 0.0 0.6 0.6 1.3 0.2 0.0 0.0 5.5
2012 6.2 0.0 4.8 0.0 0.0 0.4 0.4 0.9 0.1 0.0 0.0 4.8
Gross Revenue (Deflated) 594.54 480.22 430.15 402.18 377.66 346.14 304.24 2013 5.5 0.0 4.8 0.0 0.0 0.3 0.3 0.4 0.1 0.0 0.0 4.2
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2014 5.1 0.0 4.7 0.0 0.0 0.2 0.2 0.2 0.0 0.0 0.0 3.7
Petroleum Revenue Tax (Deflated) 1.36 1.67 1.59 1.49 1.38 1.21 0.95 Remain
Corporation Tax (Deflated) 117.55 96.68 86.46 80.52 75.20 68.23 58.81 2015 0.0 0.0 63.2 0.0 -4.4 -19.6 -24.0 -39.2 -4.1 0.0 0.0 0.0
Capital Expenditure (Deflated) 70.00 68.31 67.36 66.74 66.14 65.28 63.90
Operating Costs (Deflated) 118.40 73.14 57.86 50.45 44.57 37.80 30.08 Total 710.7 0.0 184.9 70.0 0.0 133.9 133.9 321.9 216.9 0.0 226.7 91.7

These cash flows include Murdoch field only


SUMMARY
7
13
22/8b Chevron The Nelson oil field is situated in the Central North Sea in Blocks 22/6a, 22/7,
22/11 and 22/12a. A poor quality reservoir section was encountered in this area
by Well 22/11-1 in 1967. However, it was not until March 1988 that Well 22/11-
1 5 discovered Nelson and a period of intensive appraisal drilling followed. In
2 1990, two extensions were made into Blocks 22/7 and 22/12a and development
has subsequently been via a single steel platform with 36 slots and a subsea
FORTIES 4 1 satellite 6 km to the south. Water injection has been utilised from the start-up in
22/6b BP early 1994 in order to maintain reservoir pressure.
A 6
22/6a Shell 3 Oil and NGLs are exported to Cruden Bay via the Forties pipeline system,
5 E whilst gas is transported to the Fulmar pipeline near Kittiwake and then on to
7 10
1
the St. Fergus terminal.
The current interests in the Nelson field in per cent. are:-
9 3
12 11
21/10 BP 22/7 Total 22/8a Amoco Enterprise * 36.31
2 NELSON RD/Shell UK Ltd ** 21.64
5,6 5 3
2 Esso Exploration & Production Ltd 21.64
3
3 1 Elf Enterprise Petroleum 17.02
7,7Z,8Y 9 2 4 Svenska Petroleum 1.31
1 3
Neste 1.31
6 Summit North Sea 0.40
4 Total 0.35
11
production operator *
construction operator **
22/12b BP
4 In 1994, an equity redetermination set the reserve split as 53.33% in Block
22/11, 43.29% in Block 22/6a, 2.63% in Block 22/12a and 0.75% in Block 22/7.
21/15a 7 22/13a 22/13b
BP 22/11 Enterprise 22/12a BP Amoco Amoco LOCAL SETTING

The Nelson field is located some 180 km east of Aberdeen in the UK sector
of the Central North Sea. The accumulation is on the Forties-Montrose High
trend in Blocks 22/6a, 22/7, 22/11 and 22/12a. The reservoir comprises the
Forties Formation and although no published depth structure maps are
available, probably occurs as a dip-closed low relief anticline similar to the
Montrose and Arbroath fields. The oil reserves are contained within the
Paleocene sands which are sealed by overlying shales. The reservoir covers an
area of about 15 km by 8 km and lies at a depth of some 7000 to 7500 feet
TVDSS. The neighbouring Forties field, a few kilometres to the northwest, also
produces from the Paleocene sands, as do the Montrose and Arbroath fields
some 20 miles to the south.
RESERVOIR CHARACTERISTICS Nelson's proximity to the Forties field has allowed a simple development link-
up for oil via a spurline into the Forties system.
Fluid Properties
FIELD DESCRIPTION
Oil Gravity (API) 37
Gas Oil Ratio (scf/stb) 648 The Nelson field is one of the Central North Sea's largest Paleocene
Bubble Point Pressure, Pb (psia) 1550 reservoir developments and is centred around Blocks 22/11 and 22/6a, which
Formation Volume Factor at Pi (rb/stb) 1.45 contain the bulk of the oil in place and reserves. The precise nature of the
Nelson structure is unknown as there are no published top reservoir depth
Original Reservoir Pressure Pi (psia) 3280
maps. However, it is expected that the reservoir is a four way dip closed and
At Datum Depth of (ft TVDSS) 7400 moderate to low relief, similar to the accumulations at Forties, Montrose and
Reservoir Temperature (F) 232 Arbroath. The reservoir occurs within Paleocene sandstones of the Forties
Formation which comprises a sequence of sands and shales of up to some 400
Rock Properties feet thickness, and which are underlain by further sands and shales of the
Andrew Formation. Porosities and permeabilities are good to very good.
Rock Type Sandstone The reservoir contains an undersaturated oil with a GOR of 411 scf/stb. As
Stratigraphic Unit Forties Formation the oil column thickness is less than the thickness of the total Paleocene
Geological Age Paleocene sandstone sequence, the reservoir is totally underlain by water.
Porosity Range (per cent.) 22-25 After discovery in March 1988, development of the field has been extensive
and rapid, focusing on a single conventional steel platform with slots for up to
Permeability Range (md) 50-1000 (av. 200)
36 wells. There is also a satellite submarine development some 5.8 kms to the
Connate Water Saturation (per cent.) 18.5 south, with capacity for up to eleven subsea wells and tied back to the main
Oil Water Contact (ft TVDSS) 7465 var. Nelson platform by pipelines. The design, construction and installation phases
Depth to Top of Structure (ft TVDSS) 7200 of the field were undertaken by Shell and then Enterprise took over
responsibility for drilling and operations.
Reserves The first oil production from Nelson was in February 1994, with the pre-
drilling of eight platform wells to enable rapid buildup in output. Plateau
Total Reserves (MMstb, Bcf) 410, 70 production of 160,000 b/d was reached by June 1994 and a peak of 190,000 b/d
(Oil + NGLs, Gas) has been met on occasion. Nelson is currently producing from eight platform
Est. Production to 31.12.95 (MMstb, Bcf) 100, 19 wells and two satellite wells from Nelson South (both completed in 1995). There
will be spare capacity on the platform from the late 1990s and spare risers are
(Oil + NGls, Gas)
already in place. The possibility of developing small oil discoveries near Nelson
Remaining Reserves (MMstb, Bcf) 310, 51 is being assessed but nothing has been identified as yet.
(Oil + NGLs, Gas) The complete drilling programme in the present development plan comprises
26 platform wells, of which seven will be water injectors together with four
Production producing wells from the satellite complex. One oil production well to the
northwest is considered to be at the technical limit of platform reach (5 km) and
Water Depth (feet) 285 may have to be developed as a further subsea satellite. No decision has yet
Production Start Date February 1994 been made.
Peak Production (Oil and NGL) (stb/day) 157000 in 1995 Because of the nature of the hydrocarbons, oil recovery will be maximised
Platform(s) 1 steel jacket and by sea-water injection around the edges of the field which will supplement
1 subsea satellite natural water drive from an underlying aquifer, thus maintaining sufficient
reservoir pressure. Well productivity is boosted and will eventually be sustained
Number of Wells Planned 20 Platform Producers
by the provision of gas lift.
7 Injectors After separation on the Nelson platform, oil and some NGLs are exported by
Oil and NGL Export Oil via Forties System pipeline to a new riser platform near the Forties "C" platform some 25 km away.
Gas Export Gas via Fulmar pipeline From there it is transported through the Forties pipeline system to Cruden Bay
to St. Fergus on the Scottish mainland and then overland to Kerse of Kinneil on the south side
of the Firth of Forth where the NGLs are extracted for export.
Associated gas and the remaining NGLs are exported by 48 km pipeline to
the Fulmar gas pipeline near the Kittiwake platform and are then transferred to
the gas line at St. Fergus, north of Aberdeen. The gas stream is then processed,
and the dry gas (mainly methane) is sold to British Gas, whilst the NGLs are
piped to Mossmorran, Fife, to be separated into ethane, butane, propane and
natural gasoline ready for export.
STRATIGRAPHY AND STRUCTURE

The Nelson field is located on the northwest to southeast trending Forties- Hydrocarbons are found in the Paleocene sandstones of the Forties Formation.

UNITED KINGDOM
Montrose High in the Central Graben. No published depth structure maps are Structural closure at this level probably results from a combination of a differential
available, and therefore the detailed structural configuration is unknown. However, it compaction over the Forties-Montrose high and the thick sandbodies within the
is expected that the field is a predominantly four way dip closed, moderate to low Paleocene section.

Nelson
relief anticline similar to the structures of the Forties, Montrose and Arbroath fields The reservoir is buried below a thick sequence of Tertiary shales and subordinate
nearby. The initial oil water contact is at 7465 feet TVDSS, and with the shallowest sands, the seal being the immediately overlying shales of the Sele Formation.
wells at around 7200 feet TVDSS, the structural closure is in the order of 250 feet,
intermediate between that of Forties (approx. 550 feet) and Montrose-Arbroath
(approx. 100 to 150 feet).

INTERPRETATIVE STRUCTURAL CROSS SECTION


22/6a-10 22/6a-9 22/11-1 22/11-5 22/11-7
Feet
5000

6000

Hordaland (Stronsay)
Group

7000 Balder Formation

Forties Formation
Sele Formation
Andrew Formation
8000 Maureen Formation
Chalk Group
TRIASSIC and older
9000 0 2 km

SEDIMENTARY AND DEPOSITIONAL ENVIRONMENT

The Late Paleocene sands of the Forties Formation were deposited within a intervening shale and sandstone intervals. This reflects deposition of the reservoir
marine, sand-rich submarine fan-apron setting by turbidity currents derived from the sands in broad "channel" forms, separated by poorer quality "interchannel"
northwest. The turbidites entered the Central Graben and in this area flowed axially sediments.
along the basin following sea-floor topographic lows. Initially, this would have The sands are expected to show sedimentological characteristics similar to those
reflected the underlying structural character, but by the time several hundred feet of of Forties and Montrose fields. The thick sands will be massive, often structureless,
sand and shale had accumulated, differential compaction around earlier Paleocene with water escape and soft sediment deformation structures and rip-up mudclasts.
sandbodies probably also influenced sea floor topography. In the Forties-Montrose The thinner sands interbedded with shales will be slightly finer grained, laminated,
region, the Paleocene reservoir section is characterised by the development of linear current rippled and locally burrowed.
northwest to southeast orientated sandstone bodies, that pass laterally into

REPRESENTATIVE WELL SECTION - 22/6a-9

CORE ANALYSIS DATA GAMMA RAY DEPTH (feet) DENSITY


(API Units) (g/cc)
0 150 ROCK 1.95 2.95
AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


(PERCENT) (md) (Inches) (Limestone units)
40 0 0.01 10000 5 25 45 -15

Blanket of impermeable shales


7350

High density turbidites and associated


ROGALAND GROUP
SELE FORMATION

muddy sediments
Geometry
Sand rich sheet thinning to southwest

and k
Good quality reservoir locally reduced
7400

where muddy
22/6a-9
Complex of stacked high density turbidite
"channel" sequences
UPPER FORTIES FM.
LATE PALEOCENE

Geometry
Overall sheet geometry with sand "channels"
7450

forming linear northwest to southeast


orientated trends of optimal reservoir quality
MONTROSE GROUP

and k
Generally good, except in thin zones where
muddy or calcite cemented
7500
LOWER FORTIES FM.
7550

Marine shale
Complex of stacked high density turbidite
7600

"channel" sequences forming a thick sheet


complex of good reservoir quality
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Interchannel sediments 10000


and channel
22/6a-10 22/6a-9 22/11-1 22/11-5 abandonment 22/11-7
shales
1

Nelson
Datum Top Forties Formation

Upper Forties Fm
Major submarine 1000

LATE PALEOCENE
high density turbidite
"channel" sequence

Major submarine high


density turbidite "channel"
sequence Major Andrew Formation 2 100
sandstone sequence forming
compactional high starved of
0 significant Forties Fm. sand deposition
3

PERMEABILITY (md.)
Interchannel sediments
and channel
abandonment shales
1. Sele Formation
150 ft 2. Lower Forties Formation 10
3. Andrew Formation

The Forties Formation can be subdivided into three major zones via lithostratigraphic
correlation, though detailed biostratigraphy may result in alternative correlations. The
intervals consist of an uppermost muddy unit and two underlying sand dominated sections.
The Forties Formation is dominated by two major sand rich sequences, informally
0.1
subdivided into the upper and lower Forties Formation. These are separated by an
apparently correlatable shale unit which represents a period of non-coarse clastic
deposition in the Nelson area. The lower unit shows marked thickness variations between
wells, but is predominantly sand rich in the west (e.g Wells 22/6a-10 and 22/11-7) and east
(e.g Wells 22/6-9 and 22/11-5) and muddy in the centre of the field. This may reflect the 0.01
presence of two major thick "channel" sandstone sequences. 0 10 20 30
In the upper unit a similar pattern is seen, although here the thickest and best quality POROSITY (per cent.)
sands also appear to be most common in the north of the field (e.g. Wells 22/6a-9 and
22/6a-10). The thickening of the uppermost shaly interval below the top Forties log pick from
north to south indicates that coarse clastic deposition continued longest in the northern area Porosities and permeabilities are generally good, typically 20 to
of Nelson. 27 per cent. and 50-1000 md respectively. Trends in porosity and
Shale unit correlations within the upper and lower Forties Formation appear tenuous, permeability are controlled by primary textural characteristics such
and therefore the reservoir probably shows good internal vertical communication. Lateral as grain size, sorting and detrital clay content. The cleaner and
communication between the west and the east may be impaired if the shaly interval in Well coarser grained sands show the better values, whereas finer grained
22/11-1 is linear and extensive. and more argillaceous sands have lower values. Therefore optimal
reservoir quality occurs in the thick "channel" sandbodies, with
generally lower values in the "interchannel" sands. Diagenetic
cementation is relatively unimportant. Most of the sands will have
small volumes of quartz, pyrite, chlorite and kaolinite cements and
clays. Concretionary calcite cement locally obliterates porosity, but
these concretions are relatively uncommon and laterally
impersistent.

FLUID PROPERTIES RESERVOIR PRESSURE

Nelson contains an undersaturated, 37 degrees API, oil with a bubble point pressure of The initial reservoir pressure from RFT data taken prior to
some 1550 psia and with an in situ density of 0.705 g/cm3. The low viscosity leads to a production show the field to be underpressured by over 100 psi
favourable mobility ratio to water flooding. relative to a hydrostatic gradient to surface of 0.45 psi/ft. This is
interpreted to be due to pressure depletion via the Paleocene sand
aquifer following production from the Forties field. The oil water
contact from RFT data is interpreted at 7465 feet TVDSS, although
1000 1.6 0.8 analysis of log data suggests that the elevation of the contact may
vary across the field. This may also be due to production from the
B0
800 neighbouring Forties field.
GAS VISCOSITY (cp)

GOR
1.4 0.6
GOR (scf/stb)

600
B0 (rb/stb)

7000
400
1.2 0 0.4

200

Data from Differential Vaporization Experiment 0.35 psi/ft


DEPTH (feet TVDSS)

0 1.0 0.2
0 500 1000 1500 2000

PRESSURE (psig) OWC @ 7465 ft TVDSS


7500

0.44 psi/ft

Note: variable pressure depletion due to Forties field


production has resulted in variable OWC levels and
CONTROLS ON RECOVERY pressure across the field
8000
The oil recovery factor is expected to be very good, in excess of 50 per cent. This is 3100 3200 3300 3400 3500
attributable to: INITIAL RESERVOIR PRESSURE (psig)
good quality, thick, laterally continuous sandstones, leading to good areal and vertical
sweep efficiency under waterflooding
the in situ reservoir fluid having a favourable viscosity for waterflooding
the lower relief of the field will lead to earlier water production and lower recovery factors
than are expected in the higher relief nearby Forties field.
FACILITIES SPECIFICATIONS

SCHEMATIC FIELD LAYOUT

UNITED KINGDOM
Water Depth 285
(feet)

Nelson
Platform Type 1 steel jacket 1 subsea satellite

8
Function drilling, processing,

/1
1
2
Kittiwake
compression, accommodation wellhead, production,
To water injection
Cruden Bay

rt
Riser

expo
Platform Jacket Weight 8500

Gas
C (tonnes)
D
Total Weight 31000
NELSON rt
A (tonnes)
po E
ex B
Oil
Forties Accommodation 110

2
/1
2
Well slots 36 11

/6
22
Wells - planned 20 4

/7
2
2
- injectors 7 -

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 190000


(bbl/day)

Oil Export 20 x 26km pipeline to 2 x 10 x 6km


the Forties riser platform. production flowlines
Then 36 pipeline to Cruden Bay linking satellite to
main Nelson platform

Gas Export 10" x 49 km gas export line


FULL FIELD LIFE ECONOMIC INDICATORS to Fulmar gas pipeline T

@
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
near Kittiwake and onto St. Fergus
Pre Corporation Tax

Net Present Value 1,865.78 1,122.66 816.30 654.00 518.51 355.64 163.68
Net Present Value (Deflated) 1,638.72 952.35 671.48 523.16 399.61 251.49 77.76
Profit/Inv Ratio 1.66 1.17 0.93 0.79 0.66 0.49 0.25
Profit/Inv Ratio (Deflated) 1.33 0.90 0.69 0.57 0.46 0.31 0.11
NPV/Unit Oil Equiv. 4.42 3.98 3.62 3.34 3.04 2.54 1.59
NPV/Unit Oil Equiv. (Deflated) 4.19 3.58 3.13 2.80 2.44 1.86 0.77

Payback Year 1996


Nominal Rate Of Return % 27.15 PRODUCTION PERFORMANCE
Real Rate Of Return % 23.23 HISTORICAL AND PROJECTED
Post Corporation Tax 160 150
Liquid
Net Present Value 1,199.16 705.33 495.92 383.69 289.37 175.32 40.26
Net Present Value (Deflated) 1,049.49 579.49 383.59 279.39 192.27 87.55 -35.23 Gas
Profit/Inv Ratio 1.07 0.73 0.56 0.46 0.37 0.24 0.06
Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 0.85 0.55 0.39 0.30 0.22 0.11 -0.05

@@@


NPV/Unit Oil Equiv. 2.84 2.50 2.20 1.96 1.69 1.25 0.39
NPV/Unit Oil Equiv. (Deflated) 2.68 2.18 1.79 1.50 1.17 0.65 -0.35 120

Nominal Rate Of Return % 22.03 100


Real Rate Of Return % 18.32

Earnings Data
80
Gross Revenue 4,991.86 3,268.46 2,587.17 2,230.37 1,933.27 1,574.86 1,144.17
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 549.28 345.39 264.84 222.98 188.45 147.40 99.55

@@@


Corporation Tax 666.62 417.33 320.38 270.31 229.14 180.32 123.42
Capital Expenditure 1,121.62 960.98 880.92 833.11 789.19 729.72 644.96 50
Operating Costs 1,455.18 839.43 625.11 520.27 437.12 342.09 235.98
40
Gross Revenue (Deflated) 4,552.97 3,036.11 2,425.84 2,103.13 1,832.54 1,503.48 1,103.58
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 487.58 307.87 236.63 199.53 168.87 132.37 89.69
Corporation Tax (Deflated) 589.23 372.86 287.90 243.77 207.34 163.93 113.00
Capital Expenditure (Deflated) 1,230.33 1,057.96 971.80 920.25 872.83 808.53 716.66
Operating Costs (Deflated) 1,196.35 717.93 545.93 460.19 391.23 311.10 219.47
0 0
1990 1995 2000 2005 2010

Year

CASH FLOW REPORT


ECONOMIC INDICATORS FROM 1/1/1996
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Pre Corporation Tax
1990 0.0 0.0 0.0 30.0 0.0 0.0 0.0 -30.0 -59.0 0.0 0.0 0.0
Net Present Value 2,067.40 1,836.74 1,716.06 1,642.71 1,574.68 1,481.79 1,348.34 1991 0.0 0.0 0.0 175.0 0.0 0.0 0.0 -175.0 -291.1 0.0 0.0 0.0
Net Present Value (Deflated) 1,916.31 1,703.77 1,594.58 1,528.62 1,467.62 1,384.53 1,265.27 1992 0.0 0.0 0.0 350.0 0.0 0.0 0.0 -350.0 -509.7 0.0 0.0 0.0
NPV/Unit Oil Equiv. 6.50 6.82 6.97 7.05 7.12 7.20 7.32 1993 0.0 0.0 5.0 325.0 0.0 0.0 0.0 -330.0 -428.7 0.0 0.0 0.0
1994 446.4 0.0 89.1 110.0 0.0 0.0 0.0 247.3 292.7 119.0 22.0 0.0
Post Corporation Tax 1995 603.3 0.0 97.2 70.0 0.0 0.0 0.0 436.1 466.8 157.0 31.3 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value 1,400.78 1,277.47 1,207.65 1,163.84 1,122.40 1,064.69 979.80 1,049.7 0.0 191.3 1,060.0 0.0 0.0 0.0 -201.6 -529.0 100.7 19.5 0.0
Net Present Value (Deflated) 1,327.08 1,204.10 1,137.73 1,096.77 1,058.38 1,005.34 927.87
NPV/Unit Oil Equiv. 4.40 4.75 4.90 4.99 5.07 5.18 5.32 1996 598.4 0.0 95.7 30.0 0.0 68.5 68.5 404.3 389.0 150.0 29.7 0.0
1997 642.7 0.0 99.5 20.8 85.1 129.7 214.8 307.6 263.5 150.0 29.7 0.0
Earnings Data 1998 623.7 0.0 101.4 10.8 162.1 107.7 269.8 241.7 184.3 140.0 27.4 0.0
1999 490.2 0.0 97.4 0.0 68.0 101.9 169.9 222.9 151.3 105.9 19.5 0.0
Gross Revenue 3,942.18 3,281.58 2,977.55 2,803.51 2,648.37 2,445.28 2,168.81 2000 385.1 0.0 94.9 0.0 138.7 79.6 218.3 71.9 43.4 80.1 13.6 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 302.3 0.0 93.6 0.0 62.7 50.9 113.7 95.1 51.1 60.6 9.0 0.0
Petroleum Revenue Tax 549.28 462.85 420.27 395.02 371.96 340.95 297.24 2002 237.6 0.0 89.5 0.0 28.5 41.3 69.8 78.3 37.4 45.9 5.6 0.0
Corporation Tax 666.62 559.27 508.41 478.87 452.28 417.10 368.54 2003 186.1 0.0 86.0 0.0 4.2 34.3 38.5 61.6 26.2 34.7 3.0 0.0
Capital Expenditure 61.62 58.19 56.33 55.16 54.05 52.47 50.07 2004 145.6 0.0 82.7 0.0 0.0 27.7 27.7 35.2 13.3 26.2 1.1 0.0
Operating Costs 1,263.88 923.81 784.89 710.61 647.69 570.07 473.16 2005 114.5 0.0 80.4 0.0 0.0 16.7 16.7 17.4 5.9 19.9 0.0 0.0
2006 89.8 0.0 74.4 0.0 0.0 8.2 8.2 7.1 2.1 15.0 0.0 0.0
Gross Revenue (Deflated) 3,460.79 2,925.40 2,675.33 2,530.96 2,401.46 2,230.68 1,995.68 2007 70.4 0.0 64.7 0.0 0.0 2.8 2.8 2.8 0.8 11.3 0.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 55.7 0.0 53.9 0.0 0.0 0.2 0.2 1.7 0.4 8.6 0.0 0.0
Petroleum Revenue Tax (Deflated) 487.58 412.58 375.50 353.47 333.32 306.18 267.81 Remain
Corporation Tax (Deflated) 589.23 499.67 456.85 431.85 409.25 379.19 337.40 2009 0.0 0.0 149.9 0.0 0.0 -3.0 -3.0 -146.9 -31.1 0.0 0.0 0.0
Capital Expenditure (Deflated) 60.00 56.72 54.94 53.82 52.75 51.24 48.94
Operating Costs (Deflated) 996.90 752.34 650.31 595.04 547.76 488.73 413.66 Total 3,942.2 0.0 1,263.9 61.6 549.3 666.6 1,215.9 1,400.8 1,137.7 309.6 50.6 0.0

These cash flows include Nelson field only


3/2 Conoco 3/3 Chevron 3/4b Rel 3/4a Texaco SUMMARY
7 13
The Ninian field is located approximately 130 km northeast of the
11 10
9,14
Shetland Islands in Quadrant 3 of the UK Sector of the Northern North
6 Sea. Ninian was discovered by Wells 3/3-1 and 3/8-1 in 1974 which
4 5 encountered oil in Middle Jurassic Brent Group sandstones.
3
17 Subsequently the Columba accumulation to the southwest was
LYELL 5 12,16
N discovered in 1976 by Well 3/7-1.
2 Development of the field involving one concrete and two steel
9 10 platforms began in 1977 and first oil production was achieved in
4
7 STRATHSPEY December 1978.
9,9A
8
First production from the Columba D terrace was achieved in
6 1 4 September 1994 by deviated well drilled from Ninian South. Two
C
5, 5A producers and two water injectors will probably be required in order fully
COLUMBA 7 to drain the accumulation. The B terrace may be developed in the future
NINIAN 6
B 8 8 with wells drilled from both the southern and central Ninian platforms.
3/7d 3/7a 3/8a Ranger 3/8b Lasmo 3/9c 3/9a The E terrace has poorer reservoir characteristics and is limited in its
Rel Chev. 2 Con Total B
future development plans.
S A 2
1 Staffa, discovered by Well 3/8b-10 in 1985, came on stream in
8,8A 1 5
March 1992, but ceased production due to waxing problems in October
COLUMBA D 2
2 ALWYN 1994. During the field's life, oil and gas was piped to Ninian South where
4 NORTH it was processed and sent on to Sullom Voe. Permission is now being
11
6,6A 6 sort from the government to abandon the field. Lyell and Strathspey
3/7d 5 1 have been developed as subsea systems tied back to Ninian, again with
Rel 5 13 STAFFA
3 oil transported to Sullom Voe and gas used for the Ninian field. Both
9 10,14 3 8 came on stream in 1993 and are dealt with in separate sections in this
COLUMBA E 7 volume.
3/9b 0
3/7b Chevron British
4 km The current interests in the Ninian field in per cent. are:-
Gas
3/8c Chevron
BLOCK 3/3
Chevron Petroleum Co Ltd * 33.17
Murphy Petroleum Ltd 19.41
Sands Petroleum 5.96
Oryx (UK) Energy Ltd 41.46

BLOCK 3/8a
Ranger Oil (UK) Ltd 55.00
Sun Oil Britain Ltd 45.00

operator *
RESERVOIR CHARACTERISTICS The final redetermination allocated 71.2 per cent. of reserves to
Block 3/3.
Fluid Properties

Oil Gravity (API) 35


Gas/Oil Ratio (scf/stb) 285
Bubble Point Pressure, Pb (psig) 1300
Formation Volume Factor at Pi (rb/stb) 1.265
Oil Compressibility (vol/vol/psi) 8.4 x 10-6 LOCAL SETTING
Original Reservoir Pressure, Pi (psig) 6477
At Datum Depth of (ft TVDSS) 9750 The Ninian field is located in the North Viking Graben towards the
Reservoir Temperature (F) 218 south of the Brent Area. The closest fields in the area are Hutton and
Brent in Quadrant 211 to the north and northeast, the North Alwyn oil
Rock Properties and condensate field, the oil and gas/condensate Strathspey field, and
the Staffa field all to the east and Lyell to the west. To the southwest is
Rock Type Sandstone the Emerald field, and to the west lies the Heather field in Quadrant 2.
Stratigraphic Unit Brent Group The Ninian Central to Sullom Voe pipeline system receives oil from
Geological Age Middle Jurassic Ninian N, Ninian S, Heather, Alwyn North, Magnus, Lyell and
Porosity Range (per cent.) 15-24 Strathspey.
Permeability Range (md) 20-2000
Connate Water Saturation (per cent.) 20
Oil Water Contact (ft TVDSS) 10430
Depth to Top of Structure (ft TVDSS) 9200

Reserves * FIELD DESCRIPTION


Ninian Columba Staffa
Total Reserves (Oil and NGL) (MMstb) 1146 35 4 Structurally, the Ninian field is a tilted horst block limited on the updip
Total Reserves (Gas) (Bcf) 15 0.4 margins by erosional truncation and faulting. The reservoir occurs within
Est. Oil & NGL Production to 31.12.95 (MMstb) 1058 2 4 shallow marine and deltaic sandstones of the Middle Jurassic Brent
Est. Gas Production to 31.12.95 (Bcf) 15 0.4 Group which average 70 to 370 feet in thickness. The reservoir
Remaining Reserves (Oil & NGL) (MMstb) 88 33 0 sandstones are formed by five distinct zoned layers, with micaceous
Remaining Reserves (Gas) (Bcf) 0 0 sand or siltstone layers interleaved with massive sand units. Porosities
are moderate to good, and permeabilities are good to very good.
Production The Columba field comprises three terrace accumulations: two to the
southwest of Ninian named D and E and one to the west named B. The
Water depth (feet) 442-469 oil in Columba is similar to that of Ninian but reservoir quality is much
Production Start Date December 1978 poorer. The Columba D terrace has already been developed using a
Peak Production (Oil and NGL) (stb/day) 317,000 well drilled from Ninian South. Columba B is expected to be developed
Platform(s) 3 in the same way later this decade. The fields contain a 35 degrees API
Number of Wells - Producers 74 gravity oil with a GOR of approximately 285 scf/stb and of moderate
Water injectors 32 viscosity. Water injection is considered necessary and will be installed
in Columba D during late 1995 to sustain pressure.
Gas injectors
Production from Ninian began in December 1978 and peaked at over
Oil and NGL Export Pipeline to Sullom Voe
300000 stb/day oil in the early 1980s. In October 1994, the billionth
Gas Export Surplus exported to
barrel was produced from the Ninian field, a claim that can only be
N.W. Hutton for use as
made by two other North Sea fields, Forties and Brent. This high rate of
fuel gas
recovery has been assisted by water injection. The reconfiguration of
Ninian Central for the subsea developments of Staffa, Columba, Lyell
and Strathspey has prolonged the field's life, and Ninian's future lies in
attracting and securing additional third party business as well as
reducing operating costs.
3/2 3/3 3/4b STRATIGRAPHY AND STRUCTURE

Ninian & Columba


Sandstones of the Middle Jurassic Brent Group form the reservoir in the

UNITED KINGDOM
NINIAN & COLUMBA
Ninian field. The Brent Group overlies the Lower Jurassic offshore marine
TOP BRENT SANDSTONE mudstones of the Dunlin Group and is overlain by Upper Jurassic marine
6 DEPTH STRUCTURE mudstones. Towards the crest of the Ninian structure the Brent Group is
0 2 km erosionally truncated. It is locally completely absent in which case Upper
Jurassic or Lower Cretaceous mudstones rest uncomformably on Dunlin Group,
3 (Contours in feet TVDSS)
Statfjord Formation or Cormorant Formation sediments.
The Ninian structure is a westward tilted horst block bounded to the east by
a north-south trending fault system. The southern margin of the field is also
delineated by a fault system which trends broadly northwest-southeast. Normal
2 faults downthrowing to the west define the western margin of the field. These
Approximate Erosional Limit
7 10 of Brent Group faults converge with the major eastern fault system in the northern part of the

1040 30
field.

O WC 104
0
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

0
1000
COLUMBA B

9200
1 4A
The Brent Group consists of a northward prograding shallow marine and
5A
deltaic complex. The Broom Formation, at the base, consists of sublittoral

9600
shallow marine sandstones which prograded across the offshore mudstones of
8 the Dunlin Group. The sandstones are mainly medium to coarse grained and

0
3/7a 3/8b 3/9c are locally pebbly. Overlying these are the finer grained, micaceous and

940
2 argillaceous sandstones of the Rannoch Formation, which represent the middle
000 shoreface position of a major delta front barrier shoreface system. Capping
10
these are the medium to locally coarse grained sandstones of the Etive
1
Formation. These represent the upper shoreface, foreshore and possibly
backshore portion of the barrier system. In the central and southern part of the
COLUMBA D
field southeast - northwest and south southeast-north northwest trending tidal
2
3/7b 4 distributary channel and possible tidal inlet sandstones are present.
The Etive Formation is succeeded by the delta plain sediments of the Ness
Formation. The lower part of the Ness Formation comprises floodplain and
5 1
6A bay/lagoon mudstones which are interbedded with crevasse splay, channel
margin and minor channel sandstones. The upper part of the Ness Formation is
5A
dominated by a multistorey, composite channel sandbody with only minor
3 floodplain mudstones. The uppermost unit of the Brent Group, the Tarbert
COLUMBA E 9A Formation, consists of a thin development of mainly fine to medium grained,
3/8a
transgressive, shallow marine sandstones.
(Modified after Albright, Turner, Williamson, 1980)

INTERPRETATIVE STRUCTURAL CROSS SECTION


Feet 3/3-6 3/3-3 3/3-2 3/3-1 3/8-1 3/8-2 3/8-6A 3/8-3
N S
7000

8000 UPPER CRETACEOUS

9000
L. CRETACEOUS

RASSIC
UPPER JU p
10000 p Dunlin Grou
Brent Grou
rmation
Cormorant Fo
11000
Statfjord Formation

12000

0 2.5 5 km
13000

REPRESENTATIVE WELL SECTION - 3/3-3


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

3/3-3
F

B C P 40 0 0.1 10000 5 25 45 -15

Stacked major fluvial channel sandstones.


Geometry
Ribbonlike sandstones stacked and
coalesced into a thicker sandbody.

and K
generally moderate to good, K good
to very good.
NESS FORMATION

Delta plain sediments comprising fluvial


10400

channel sandstones, crevasse splay and levee


Py
sandstones interbedded with
Py floodplain/bay mudstones and coals.
MIDDLE JURASSIC

Py Geometry
BRENT GROUP

Ribbonlike and lobate to sheetlike


sandstones with laterally persistent
Py
mudstones.

and K
Generally moderate to good.

Py
10500

Progradational sequence of shoreface


ETIVE FM.

sandstones overlying transgressive


sandstones.

Py Geometry
Sheetlike sandbody orientated parallel to
palaeo-shoreline.
RANN. FM.

M
M and K
BROOM FM.

and K moderate to good in lower and


upper parts, poor to moderate in middle
M
part.
M
M
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Ninian & Columba


N
3/3-2 10000
3/3-3
3/3-6 3/3-1

1 0
2

Humber Gp.
Ness Formation
50 feet 1000

MIDDLE JURASSIC
3/8-1

3/8-6

Brent Group
3/8-2 S
100
3 3/8-3

PERMEABILITY (md.)
L. JURASSIC
Dunlin Gp. 4

10
5

1
1. Heather Fm.
2. Tarbert Fm.
3. Etive Fm.
4. Rannoch Fm.
5. Broom Fm.

0.1

The reservoir has been divided into two main units. The lower reservoir comprises the
Broom, Rannoch and Etive Formations and the upper reservoir comprises the Ness and
Tarbert Formations. To the west, permeabilities are reduced in the deeper reservoirs by
depth-related modifications. The Ness channel sands are present in north and central
0.01
Ninian but are largely absent in south Ninian. 0 10 20 30
The Broom Formation sandstones are stacked into a sheetlike sandbody which ranges POROSITY (per cent.)
from about 14 to 75 feet in thickness. Net to gross ratio varies from about 0.7 to 1.0. The
Rannoch Formation sandstones range from 20 to 30 feet in thickness. They form part of a
sheetlike sandbody oriented broadly parallel to the palaeo-shoreline. Overlying the Within the Broom Formation average porosities and
Rannoch Formation are the sandstones of the Etive Formation, which range from 15 to 75 permeabilities range between moderate and good. Average
feet in thickness. The lower part of the Ness Formation consists of relatively thin (< 25 feet) porosities in the Rannoch Formation range from poor to moderate
sandbodies with interbedded mudstones. The sandstones have ribbon geometry (channels) whilst permeabilities are generally moderate. This reflects the fine
and lobate to sheetlike geometry (crevasse splay, channel margin) and are poorly grained, micaceous and argillaceous nature of the unit. In the upper
interconnected. The uppermost part of the Ness Formation is dominated by a multistorey, part of the Rannoch Formation there are thin, highly micaceous
multilateral channel sandbody. This has a tabular geometry with good internal connectivity. horizons which may form permeability baffles between the Etive and
The Tarbert consists of interbedded sandstones and mudstones. The sandstones are Rannoch Formations. Porosities and permeabilities within the Etive
expected to have lobate to sheetlike geometry, with interbedded mudstones forming vertical Formation are commonly moderate to good. Coarse grained
permeability baffles and barriers. Overall the Tarbert Formation is expected to have a distributary channel and tidal inlet sequences have excellent
sheetlike geometry. permeabilities and may act to allow the rapid advance of injected
water.
Within the lower part of the Ness Formation porosities and
FLUID PROPERTIES permeabilities are generally moderate to good, although the thicker,
coarser distributary channel sandstones have good to excellent
The Ninian field contains a low shrinkage black oil with an oil gravity of 35 degrees API. porosity and permeability. The thick, clean distributary channel
The initial formation volume factor and oil viscosity are 1.265 rb/stb and 1.32 cp respectively. sandstone of the upper part of the Ness Formation has good to
The bubble point pressure is 1300 psig with a separator corrected GOR of 285 scf/stb. excellent porosities and permeabilities (generally >20 per cent. and
400 - 3000md). The Tarbert Formation has generally moderate to
locally good porosities and permeabilities.
500 1.4 4.0

3.5
B0
400
1.3 3.0
RESERVOIR PRESSURE
GOR (scf/stb)

2.5
300
B0 (rb/stb)

GOR Based on a hydrostatic gradient to surface of 0.45 psi/ft the


0 (cp)

1.2 2.0
Ninian field is approximately 2100 psi overpressured. The original oil
200 1.5 water contact is at 10430 feet TVDSS and the initial reservoir
pressure is approximately 6477 psig at a depth of 9750 feet TVDSS.
1.1 0 1.0
100
0.5
@ 218F
0 1.0 0.0
9500
0 1000 2000 3000 4000 5000 6000 7000

PRESSURE (psig)

CONTROLS ON RECOVERY
10000
In common with all Brent sand reservoirs, oil production from Ninian is accompanied by
DEPTH (feet TVDSS)

0.335 psi/ft
increasing amounts of injected water due to the heterogeneous nature of the vertical sand
sequence. An overall recovery factor of the order of 35 per cent. is to be expected although
this may range from 15 to 50 per cent. on a formation by formation basis. Structural
complexities have dictated the matching and placement of production and water injection
OWC @ 10430 ft TVDSS
wells.
10500
The field can be divided into three areas. These comprise northern and southern sectors 0.45 psi/ft
relative to the main field dividing fault and a complexly faulted eastern horst block. The main
field area can be further sub-divided vertically into two units separated by the impermeable
"Mid Ness" shale. There are consequently five primary reservoir compartments behaving
largely independently of one another.
Recovery from the upper reservoir is expected to be good due to the continuous nature
of the Tarbert and Upper Ness Formations. The lower reservoir, however, exhibits severe 11000
vertical heterogeneity, especially in the Lower Ness channel sands 6300 6400 6500 6600 6700 6800 6900 7000
and locally in the Etive Formation. The Rannoch is of low permeability and in the west of the INITIAL RESERVOIR PRESSURE (psig)
field is non-reservoir. These factors lead to uneven advance of injected water such that by-
passing of oil in moderate to low permeability sands probably occurs.
The horst block to the east of the field is complexly faulted and recovery potential will be
limited by areal communication as well as vertical heterogeneity.
FACILITIES SPECIFICATIONS

Ninian & Columba


NORTH CENTRAL SOUTH

UNITED KINGDOM
Water Depth 469 442 463
(feet)
Platform Type steel jacket concrete gravity steel jacket
Function ----------------- drilling/production/ ----------------
accommodation

Jacket Weight 14100 18200


(tonnes)
Total Weight 38300 623000 51000
(tonnes)

Accommodation 194 274 226

Well slots 25 42 42
Wells 23 41 42

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 90000 280000 180000


(stb/day)

Oil Export 24" x 6 km 36" x 161 km 24" x 6 km


(A Chevron Photograph)
pipeline to pipeline to pipeline to
Ninian Central Sullom Voe Ninian Central

Gas Export 10"x 16 km 8"x 6 km


pipeline to pipeline to
FLAGS pipeline Ninian Central

FULL FIELD LIFE ECONOMIC INDICATORS

@
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 4,572.23 2,634.13 1,914.73 1,550.97 1,256.05 911.71 519.50 PRODUCTION PERFORMANCE
Net Present Value (Deflated) 6,961.27 3,635.73 2,380.28 1,743.20 1,227.25 628.43 -40.06 HISTORICAL AND PROJECTED
Profit/Inv Ratio 1.84 1.47 1.26 1.12 1.00 0.83 0.57
Profit/Inv Ratio (Deflated) 0.96 0.64 0.48 0.38 0.29 0.16 -0.01 350 100
NPV/Unit Oil Equiv. 3.86 4.01 3.97 3.91 3.80 3.58 3.04
Liquid
NPV/Unit Oil Equiv. (Deflated) 3.42 2.99 2.58 2.25 1.87 1.21 -0.11
Gas


@@

Payback Year 1980 300

Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Nominal Rate Of Return % 35.79
Real Rate Of Return % 19.62
75
Post Corporation Tax 250

Net Present Value 2,441.07 1,404.19 1,007.67 804.19 637.50 440.69 213.31
Net Present Value (Deflated) 3,343.93 1,489.36 778.35 415.62 121.32 -219.91 -596.87
Profit/Inv Ratio 0.98 0.78 0.66 0.58 0.51 0.40 0.23 200
Profit/Inv Ratio (Deflated) 0.46 0.26 0.16 0.09 0.03 -0.06 -0.18 50
NPV/Unit Oil Equiv. 2.06 2.14 2.09 2.03 1.93 1.73 1.25

@@


NPV/Unit Oil Equiv. (Deflated) 1.64 1.22 0.84 0.54 0.18 -0.42 -1.66 150
Nominal Rate Of Return % 28.45
Real Rate Of Return % 12.96
100
Earnings Data 25

Gross Revenue 18,161.94 10,332.54 7,653.53 6,343.49 5,302.08 4,107.15 2,765.90


Royalty 1,784.21 1,027.57 759.01 626.38 520.59 399.17 263.56 50
Ninian only
Petroleum Revenue Tax 5,286.05 3,001.87 2,175.71 1,768.16 1,444.81 1,077.55 676.63
Corporation Tax 2,131.16 1,229.94 907.06 746.78 618.55 471.02 306.19
Capital Expenditure 2,490.00 1,797.50 1,525.06 1,380.16 1,257.13 1,104.00 908.55
0 0
Operating Costs 3,242.45 1,341.69 857.33 654.30 509.24 360.89 217.60
1975 1980 1985 1990 1995 2000 2005
Gross Revenue (Deflated) 31,766.46 19,243.81 14,661.39 12,347.01 10,466.96 8,259.73 5,706.92
Royalty (Deflated) 3,095.01 1,854.35 1,396.59 1,165.84 979.13 761.37 512.86 Year
Petroleum Revenue Tax (Deflated) 8,764.97 5,037.22 3,678.51 3,003.74 2,465.48 1,850.14 1,172.11
Corporation Tax (Deflated) 3,617.34 2,146.37 1,601.93 1,327.58 1,105.93 848.33 556.81
Capital Expenditure (Deflated) 7,243.28 5,681.98 5,002.55 4,622.30 4,287.96 3,856.02 3,277.33
Operating Costs (Deflated) 4,065.83 1,931.24 1,324.35 1,053.61 851.22 633.45 407.89

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1974 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -305.9 0.0 0.0 0.0
1975 0.0 0.0 0.0 150.0 0.0 0.0 0.0 -150.0 -3,927.4 0.0 0.0 0.0
1976 0.0 0.0 0.0 250.0 0.0 0.0 0.0 -250.0 -4,875.0 0.0 0.0 0.0
1977 0.0 0.0 0.0 375.0 0.0 0.0 0.0 -375.0 -5,810.8 0.0 0.0 0.0
1978 2.1 0.0 5.0 350.0 0.0 0.0 0.0 -352.9 -4,362.9 0.8 0.0 0.0
1979 577.4 6.0 50.0 300.0 0.0 0.0 6.0 221.4 2,339.5 163.3 0.0 0.0
1980 1,313.9 95.0 70.0 225.0 0.0 0.0 95.0 923.8 7,972.6 241.3 0.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1981 2,021.8 182.2 90.0 100.0 0.0 0.0 522.2 1,309.6 8,883.2 303.4 0.0 0.0
1982 2,183.1 234.9 110.0 100.0 408.5 583.5 1,632.9 340.2 1,907.7 317.2 8.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1983 2,093.5 238.4 115.0 100.0 995.8 356.9 1,632.0 246.5 1,179.2 289.8 13.0 0.0
1984 2,034.5 229.0 120.0 50.0 1,116.3 379.5 1,724.8 139.6 591.4 245.5 7.0 0.0
Pre Corporation Tax 1985 1,774.4 209.5 125.0 50.0 1,029.0 222.4 1,461.0 138.5 517.0 230.7 7.0 0.0
1986 736.2 132.6 130.0 20.0 478.8 176.7 788.1 -201.9 -658.4 205.5 5.0 0.0
Net Present Value 269.38 266.55 260.30 255.12 249.46 240.48 225.23 1987 648.6 68.3 130.0 20.0 307.1 58.6 434.1 64.5 188.2 159.1 1.0 0.0
Net Present Value (Deflated) 273.43 262.37 253.44 247.09 240.60 230.89 215.28 1988 460.1 53.6 130.0 20.0 199.5 50.8 303.9 6.2 16.4 149.6 0.0 0.0
NPV/Unit Oil Equiv. 2.23 2.58 2.74 2.83 2.91 3.01 3.14 1989 541.5 48.5 130.0 20.0 214.4 33.0 296.0 95.5 218.8 134.8 0.0 0.0
1990 525.4 53.4 130.0 20.0 209.5 41.2 304.1 71.3 140.3 110.1 0.0 0.0
Post Corporation Tax 1991 359.7 42.6 130.0 90.0 79.0 40.7 162.3 -22.6 -37.6 87.0 0.0 0.0
1992 277.2 26.8 130.0 100.0 37.8 32.2 96.8 -49.6 -72.2 69.2 0.0 5.6
Net Present Value 165.10 175.73 176.30 175.22 173.34 169.48 161.53 1993 291.4 22.1 123.5 70.0 41.4 19.2 82.6 15.2 19.8 67.0 0.0 14.0
Net Present Value (Deflated) 178.35 179.30 176.43 173.72 170.59 165.41 156.27 1994 289.4 23.1 117.3 20.0 44.9 16.3 84.2 67.9 80.4 66.0 0.0 43.7
NPV/Unit Oil Equiv. 1.37 1.70 1.86 1.94 2.02 2.12 2.25 1995 280.8 22.7 117.5 30.0 47.1 15.8 85.6 47.7 51.0 64.0 0.0 36.0
Total To Start Of Discounting ( 1/JAN/1996)
Earnings Data 16,410.91,688.8 1,953.3 2,470.0 5,209.0 2,026.9 9,711.7 2,276.0 4,055.1 1,060.1 15.0 36.2

Gross Revenue 1,751.00 1,478.67 1,349.47 1,274.40 1,206.82 1,117.43 994.18 1996 289.4 22.6 120.6 20.0 51.6 17.4 91.6 57.2 55.0 63.7 0.0 35.1
Royalty 95.45 90.97 87.44 84.96 82.45 78.70 72.75 1997 293.8 23.4 124.0 0.0 61.3 18.3 103.1 66.7 57.2 60.2 0.0 34.3
Petroleum Revenue Tax 77.02 116.96 129.40 134.58 137.92 140.33 139.83 1998 251.5 21.7 113.7 0.0 52.0 18.1 91.8 46.0 35.1 49.4 0.0 28.8
Corporation Tax 104.28 90.82 84.00 79.90 76.12 71.00 63.70 1999 215.4 18.1 104.8 0.0 39.6 15.8 73.5 37.1 25.2 40.5 0.0 24.3
Capital Expenditure 20.00 19.52 19.24 19.07 18.90 18.65 18.26 2000 184.8 15.5 96.6 0.0 29.2 13.5 58.2 30.0 18.1 33.3 0.0 20.4
Operating Costs 1,289.15 984.68 853.08 780.66 718.09 639.26 538.11 2001 158.9 13.4 89.4 0.0 20.5 11.5 45.3 24.1 13.0 27.4 0.0 17.3
2002 137.0 11.6 78.7 0.0 15.2 9.7 36.5 21.7 10.4 22.6 0.0 14.7
Gross Revenue (Deflated) 1,555.91 1,328.39 1,219.57 1,156.04 1,098.64 1,022.36 916.45 2003 118.4 10.1 69.2 0.0 12.1 8.7 30.9 18.3 7.8 18.7 0.0 12.5
Royalty (Deflated) 93.87 87.65 83.65 81.00 78.40 74.64 68.84 2004 101.9 8.8 60.8 0.0 9.6 7.7 26.0 15.1 5.7 15.4 0.0 10.6
Petroleum Revenue Tax (Deflated) 113.70 135.55 141.16 142.91 143.51 142.83 139.04 Remain
Corporation Tax (Deflated) 95.09 83.07 77.00 73.37 70.02 65.48 59.01 2005 0.0 -49.8 431.3 0.0 -213.9 -16.4 -280.2 -151.1 -51.0 0.0 0.0 0.0
Capital Expenditure (Deflated) 20.00 19.52 19.24 19.07 18.90 18.65 18.26
Operating Costs (Deflated) 1,054.90 823.30 722.08 665.97 617.22 555.35 475.04 Total 1,751.0 95.5 1,289.2 20.0 77.0 104.3 276.7 165.1 176.4 120.9 0.0 72.3

These cash flows include Ninian and Columba fields, plus Lyell, Strathspey and Staffa tariff income
5 10 11 SUMMARY
21 15 1
12
WB 9
2 14 4
6,9 The Pickerill field comprises a complexly faulted structure elongated
1 northwest to southeast located approximately 65 km east of Easington
WEST SOLE 3 WA 22
WAS in the UK sector of the Southern North Sea.
23 29
The field was discovered in 1984 by Well 48/11b-4 and its extent was
47/10 BP 48/6 BP 48/7a BP subsequently delineated by seven appraisal wells prior to the
47/15b British Gas 48/11c British Gas 48/11a 48/ 48/12a 1 commencement of development drilling. The field is located mainly
Arco 12b Mobil
Mob. within Blocks 48/11b and 48/11a although it does extend into Blocks
12
AMETHYST 3 48/11c, 48/12c and 48/17b.
3 Production start up was in September 1992 from the A platform and
1
5
development drilling was subsequently started from the B platform in
48/12d
Mobil 1993. Both platforms are not normally manned, minimal facilities
PICKERILL platforms controlled from shore.
AMETHYST
EAST The Pickerill field has been unitised and following a redetermination
B1D 4
in August 1994, the current interests in per cent. are:
10 11
1
3 8 7y,7 Arco* 30.01
6
4 A BP 20.84
2 9
Conoco 18.24
7 6
2
4
Deminex 4.00
5 B
Mobil 16.18
47/15a BG 48/11b Conoco 48/12c Mobil Sun 9.33
47/20 Shell 2 48/16a BG 8 48/17a EDC 1.40
7 Mobil
1
EXCALIBUR 11 operator *
1 10
0 5 km 3
48/16c Arco 48/17b Mobil

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Pickerill field is located in the Sole Pit Basin just to the northeast
of the Dowsing Fault Zone in the western part of the Southern North
Gas Gravity S.G.(air=1) 0.63 Sea Basin .
Condensate Gas Ratio (bbl/MMscf) 6.3 The reservoir interval is Rotliegendes sandstones of Lower Permian
Gas Expansion Factor (vol/vol) 218 age and comprise a mixed sequence of fluvial, aeolian and minor
Reservoir Pressure, Pi (psig) 4044 sabkha sediments.
at Datum Depth of (ft TVDSS) 8579 Nearby fields include Amethyst to the west-northwest, West Sole to
Reservoir Temperature (F) 210 the north, Barque to the east and Excalibur to the southeast. All the
known gas accumulations in the area occur in the Rotliegendes Group
Rock Properties sandstones. Reservoir quality in the area is generally poor to moderate
and results from the predominance of fluvial rather than aeolian
Rock Type Sandstone sediments. The reservoir quality of those fields that lie on the western
Stratigraphic Unit Rotliegendes Group side of the Dowsing Fault Zone are of generally better reservoir quality
Geological Age Lower Permian compared to those on the basinward side. This is attributed in part to the
reduced presence of lacustrine and sabkha sediments.
Porosity Range (per cent.) 10-20
Permeability Range (md) 1-250
Connate Water Saturation (per cent.) 40
Gas Water Contact (ft TVDSS) estimated 9087
Depth to top structure (ft TVDSS) approx. 8500

Reserves

Total Gas Reserves (Bcf) 570


Est. Gas Production to 31.12.95 (Bcf) 208
Remaining Gas Reserves (Bcf) 362

Production FIELD DESCRIPTION

Water Depth (feet) 69 The Pickerill field comprises at least three isolated fault blocks as
Production Start Date September 1992 defined from initial reservoir pressure data. Closure is predominantly dip
Peak Gas Production (yrly average) (MMscf/day) 185 in 1993 controlled on the northeastern flank of this elongate structure and dip
Platforms 2 not normally manned and fault controlled on the southwestern flank. Maximum relief on the
steel jackets structure is approximately 600 feet and Rotliegendes reservoir
Number of Wells 12-14 thicknesses range from approximately 110 to 240 feet and generally
Gas Export Pipeline to Theddlethorpe thicken to the southeast. The underlying Carboniferous sediments are
not known to be productive in the area. Rotliegendes reservoir quality is
poor to moderate and shows variable productivity which generally
decreases to the southeast.
The reservoir fluid is a dry gas with a methane content of 91 per cent.
and less than 3 per cent. inert gases. Initial pressure data indicate at
least three different pressure regimes exist, which have separate gas
water contacts. A moderate recovery factor is expected for the field on
the grounds of its high relief despite the moderate to poor reservoir
quality.
First gas was produced in September 1992 from the A platform and
the B platform commenced production in February 1993. Gas is
exported via the A platform to Theddlethorpe. From there the gas is
transported via an onshore pipeline to PowerGen's 900 MW combined-
cycle gas turbine power station at Killingholme.
STRATIGRAPHY AND STRUCTURE

The Pickerill field is a moderate relief faulted anticline that lies on the the Rotliegendes Group sandstones and the cap is formed by a thick section of

UNITED KINGDOM
southwestern margin of the Dowsing Fault Zone and shows a northwest to southeast Zechstein Group evaporites. The Rotliegendes sediment lie unconformably upon
elongation parallel to the regional structural grain. The field is also cut by a number Carboniferous strata that comprise principally shales and coals and are believed to

Pickerill
of northeast to southwest oriented faults and together the two fault trends be the source for the gas.
compartmentalise the reservoir into at least three pressure regimes. Gas is found in

INTERPRETATIVE STRUCTURAL CROSS SECTION

47/15-2 48/11b-4
Feet W E

TERTIARY/QUATERNARY
Chalk Group
2000

4000 JURASSIC
Cromer Knoll Group

6000 Top Bunter

TRIASSIC
Zechstein Group
8000

Rotliegendes Group CARBONIFEROUS


Dowsing Fault Zone
10000

0 1.5 3 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Rotliegendes sediments were deposited under semi-arid climatic conditions erosion surface. The middle unit comprises interbedded argillaceous,
in a subsiding intracratonic basin. The principal source of sediment were fluvial discontinuously laminated sandstones and clean cross-bedded sandstones
systems that were sourced from the London Brabant Massif to the southwest and interpreted as interdigitating interdune and dune sandstones. The upper unit
flowed into the desert basin to the northeast. comprises clean largely structureless sandstones that may represent reworking
The Rotliegendes sediments of the Pickerill field may be divided into three basic during the Zechstein transgression or the deposits of sheetflood events. Both the
sedimentary units. The lowermost of these comprises pebbly sandstones and upper units are of variable thickness and the uppermost unit shows cementation
conglomerates which represent fluvial wadi deposits that infilled the Carboniferous developed in its upper intervals.

REPRESENTATIVE WELL SECTION - 48/11b-4


48/11b-4
DEPTH (feet)

CORE CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) (g/cc)
DESCRIPTION 0 100 ROCK 2.00 3.00
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.1 10000 6 16 45 -15


ZECHSTEIN
ANHYDRIT
WERRA

Shallow marine marginal carbonates


and evaporates

Transgressive marine mudstones


Fluvial deposits and reworked
KUPF

aeolian sandstones
Geometry
8600
ROTLIEGENDES GROUP

Sheetlike with internal complexities


PERMIAN

LEMAN SANDSTONE FM.

and k
Poor to moderate decreasing towards
top due to cementation

Fluvial deposits and interdune


sandstones
Fluvial sandstones in lower section
Geometry
Laterally extensive sheet sandstones
and k
Moderate in aeolian dominated intervals
8700

Fluvial/Wadi sandstones
UNDIFFERENTIATED

Delta plain channel sandstones


CARBONIFEROUS

and mudstones

non-reservoir
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000
E
48/11b-6 48/11b-4

Zechstein Gp.
Pickerill
W
47/14a-1
1
1000

Reworked sandstones
capping interdigitating
fluvial and aeolian facies 100

Leman Sandstone Formation


Rotliegendes Group

PERMEABILITY (md.)
Aeolian dominated
minor fluvial
sandstones 10
Aeolian
dominated
sandstones

Fluvial/wadi sandstones 1
with minor aeolian sands
tones

Carboniferous
10

20 feet 1. Kupferscheifer 0.1

48/11b-4
48/11b-6
0.01
0 5 10 15 20 25

POROSITY (per cent.)

Regionally the Rotliegendes sediments thicken gradually towards the southeast and Porosity values are moderate with values in the range 10 to 20
rapidly towards the northeast. Within the field area the northwest to southeast thickening per cent. Permeability values are poor to moderate typically in the
trend predominates. The reservoir interval exhibits overall sheet-like geometries with range 1 to 250 md. Trends in porosity and permeability relationships
extensive internal interdigitisation of aeolian dune, interdune and fluvial sediments. The are controlled by distributions of grain size, sorting and detrital clay
interdune sediments tend to be marginally more argillaceous and less well sorted and content which are controlled by facies distributions. The clean, well-
therefore have poorer reservoir quality. Fluvial sediments are commonly interdigitated with sorted aeolian dune sandstones exhibit better reservoir quality than
aeolian sediments in the lower intervals but become less evident in the central intervals the interdune aeolian sediments which in turn are better quality than
where aeolian sediments dominate. The upper section of the reservoir interval contains both the fluvial sandstones. The Rotliegendes sediments are generally
fluvial and aeolian sediments. Compartmentalisation of the Pickerill field is attributed prone to illite and kaolinite development although data are not
principally to faults and not to reservoir heterogeneity. Net to gross and porosity values show available to specify the degree to which the Pickerill field is affected.
a decrease in magnitude to the southeast as a result of the increased presence of wet Mineral cements cause significant net reservoir reduction,
interdune and fluvial sediments. particularly in the upper reservoir intervals.

FLUID PROPERTIES RESERVOIR PRESSURE

The Pickerill field contains a relatively high calorific value dry gas with a methane content Pressure data is available from both drill stem tests and RFT and
of 91 per cent. and less than 3 per cent. inert gases. Condensate gas ratios are moderate indicate reservoir pressures in the range approximately 3950 to 4150
at 6 bbl/MMscf. The composition of a sample taken during well testing is shown below. psia. The data suggest that there exist a number of separate
pressure regimes in the field, some of which may share a common
aquifer. The available data for Well 48/11b-4 and the aquifer
suggests a possible gas water contact at 9087 feet TVDSS at this
location.
1.00

z factor 8000
Composition Well
(mol. %) 48/11b-4
GAS DEVIATION FACTOR Z

CO2 2.06
0.95
N2 0.78
H2S -
8500 0.07 psi/ft
C1 91.16
C2 3.83
DEPTH (feet TVDSS)

C3 0.89
C4 0.42 0.90
C5 0.19
C6 0.12
C7+ 0.55 9000
S.G. (Air=1.0) 0.63
GWC @ 9087 ft TVDSS
C.V. (Btu/scf) 1075
0.85
0 1000 2000 3000 4000 5000
0.5 psi/ft
PRESSURE (psig)
9500

10000
CONTROLS ON RECOVERY
4000 4200 4400 4600
INITIAL RESERVOIR PRESSURE (psig)
The recovery factor is expected to be moderate (70 to 80 per cent.) resulting from:

predominantly poor to moderate permeability in fluvial wadi sediments


good structural elevation of the field
compartmentalisation of the field by faulting
installation of compression facilities
FACILITIES SPECIFICATIONS

A and B

UNITED KINGDOM
Water Depth 69
(feet)

Pickerill
Platform Type 2 x 4 leg steel jacket
Function Wellhead Production

Jacket Weight 500


(tonnes)

Total Weight of Structure 2500


(tonnes)

Accommodation Temporary shelter only


Not normally manned
Control Via Theddlethorpe
Well Slots 9 each
Wells 6-7 planned each platform

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput 250


(MMscf/day)

Gas Export 16" x 6km pipeline B to A


24" x 66km pipeline A to Theddlethorpe

(this is an Arco photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 200

Net Present Value 498.26 297.18 214.48 170.66 134.01 89.76 36.97
Net Present Value (Deflated) 427.52 243.56 168.28 128.40 95.03 54.70 6.56

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 1.76 1.16 0.89 0.73 0.60 0.42 0.19
Profit/Inv Ratio (Deflated) 1.31 0.83 0.60 0.48 0.37 0.22 0.03
NPV/Unit Oil Equiv. 5.25 4.59 4.07 3.68 3.26 2.60 1.39 150
NPV/Unit Oil Equiv. (Deflated) 4.83 3.93 3.29 2.83 2.35 1.59 0.25

Payback Year 1995


Nominal Rate Of Return % 25.34
Real Rate Of Return % 20.87

Post Corporation Tax 100

Net Present Value 333.84 192.07 132.97 101.44 74.95 42.80 4.23
Net Present Value (Deflated) 279.76 148.42 94.07 65.12 40.81 11.33 -23.97
Profit/Inv Ratio 1.18 0.75 0.55 0.44 0.33 0.20 0.02
Profit/Inv Ratio (Deflated) 0.86 0.50 0.34 0.24 0.16 0.05 -0.10
NPV/Unit Oil Equiv. 3.51 2.97 2.52 2.19 1.83 1.24 0.16 50
NPV/Unit Oil Equiv. (Deflated) 3.16 2.39 1.84 1.44 1.01 0.33 -0.90

Nominal Rate Of Return % 20.70


Real Rate Of Return % 16.39

Earnings Data
0
Gross Revenue 1,172.89 773.62 620.73 541.45 475.69 396.39 300.44 1990 1995 2000 2005 2010 2015
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 56.64 34.65 25.90 21.41 17.75 13.50 8.72 Year
Corporation Tax 164.43 105.11 81.51 69.22 59.06 46.96 32.75
Capital Expenditure 283.00 255.91 241.74 233.05 224.89 213.56 196.78
Operating Costs 334.98 185.89 138.61 116.34 99.04 79.56 57.97

Gross Revenue (Deflated) 1,066.70 727.19 592.65 521.62 461.95 388.98 299.00
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 49.27 29.77 22.22 18.37 15.25 11.63 7.55
Corporation Tax (Deflated) 147.77 95.14 74.21 63.28 54.22 43.37 30.53
Capital Expenditure (Deflated) 325.61 295.18 279.24 269.45 260.24 247.45 228.47
Operating Costs (Deflated) 264.29 158.68 122.90 105.40 91.43 75.20 56.43

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
ECONOMIC INDICATORS FROM 1/1/1996
1990 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -49.2 0.0 0.0 0.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1991 0.0 0.0 0.0 135.0 0.0 0.0 0.0 -135.0 -224.6 0.0 0.0 0.0
1992 21.3 0.0 8.5 80.0 0.0 0.0 0.0 -67.2 -97.9 0.0 34.0 0.0
Pre Corporation Tax 1993 116.5 0.0 19.5 25.0 0.0 0.0 0.0 72.0 93.5 0.0 185.0 0.0
1994 114.9 0.0 18.5 10.0 0.0 0.0 0.0 86.4 102.3 0.0 171.0 0.0
Net Present Value 475.95 411.14 378.44 359.06 341.46 318.00 285.48 1995 118.3 0.0 19.1 8.0 0.0 11.6 11.6 79.6 85.2 0.0 180.0 0.0
Net Present Value (Deflated) 431.17 373.63 345.31 328.64 313.52 293.38 265.37 Total To Start Of Discounting ( 1/JAN/1996)
NPV/Unit Oil Equiv. 7.89 8.37 8.55 8.65 8.73 8.82 8.93 370.9 0.0 65.6 283.0 0.0 11.6 11.6 10.7 -90.7 0.0 208.0 0.0

Post Corporation Tax 1996 122.9 0.0 19.1 0.0 0.0 23.5 23.5 80.3 77.3 0.0 180.0 0.0
1997 105.5 0.0 17.5 0.0 9.6 24.8 34.4 53.6 45.9 0.0 148.6 0.0
Net Present Value 323.11 282.15 261.14 248.60 237.14 221.81 200.39 1998 90.5 0.0 16.2 0.0 0.5 23.0 23.5 50.8 38.7 0.0 122.6 0.0
Net Present Value (Deflated) 295.34 258.36 239.94 229.05 219.12 205.85 187.29 1999 77.6 0.0 15.1 0.0 0.0 20.6 20.6 42.0 28.5 0.0 101.2 0.0
NPV/Unit Oil Equiv. 5.36 5.74 5.90 5.99 6.06 6.15 6.27 2000 66.7 0.0 14.2 0.0 23.2 14.2 37.5 15.0 9.1 0.0 83.6 0.0
2001 57.2 0.0 13.4 0.0 11.8 10.0 21.7 22.1 11.9 0.0 69.0 0.0
Earnings Data 2002 49.0 0.0 12.9 0.0 7.4 9.2 16.6 19.5 9.3 0.0 56.9 0.0
2003 42.1 0.0 12.4 0.0 3.6 8.5 12.1 17.6 7.5 0.0 47.0 0.0
Gross Revenue 801.97 635.09 564.11 525.10 491.31 448.45 392.50 2004 36.1 0.0 12.1 0.0 0.6 7.9 8.5 15.6 5.9 0.0 38.8 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 31.0 0.0 11.8 0.0 0.0 7.2 7.2 11.9 4.0 0.0 32.0 0.0
Petroleum Revenue Tax 56.64 46.43 41.10 37.92 35.04 31.23 26.03 2006 26.6 0.0 11.7 0.0 0.0 5.8 5.8 9.0 2.7 0.0 26.4 0.0
Corporation Tax 152.84 128.98 117.30 110.47 104.31 96.19 85.08 2007 22.8 0.0 11.7 0.0 0.0 4.5 4.5 6.6 1.8 0.0 21.8 0.0
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 19.6 0.0 11.3 0.0 5.7 2.6 8.3 0.0 0.0 0.0 18.0 0.0
Operating Costs 269.38 177.52 144.57 128.11 114.81 99.22 80.99 2009 16.8 0.0 10.9 0.0 3.2 1.2 4.4 1.6 0.3 0.0 14.9 0.0
2010 14.5 0.0 10.4 0.0 2.2 0.8 3.0 1.0 0.2 0.0 12.3 0.0
Gross Revenue (Deflated) 675.19 550.18 495.54 465.04 438.33 404.00 358.34 2011 12.3 0.0 10.1 0.0 1.3 0.5 1.8 0.4 0.1 0.0 10.1 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2012 10.7 0.0 9.8 0.0 0.6 0.3 0.8 0.0 0.0 0.0 8.4 0.0
Petroleum Revenue Tax (Deflated) 49.27 39.89 35.26 32.54 30.11 26.90 22.54 Remain
Corporation Tax (Deflated) 135.83 115.27 105.36 99.59 94.40 87.53 78.08 2013 0.0 0.0 48.7 0.0 -12.9 -11.9 -24.8 -23.9 -3.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 194.75 136.67 114.97 103.86 94.71 83.72 70.42 Total 802.0 0.0 269.4 0.0 56.6 152.8 209.5 323.1 239.9 0.0 361.9 0.0

These cash flows include Pickerill field only


15/11b Rel. 15/12b Texaco 2 15/13a SUMMARY
BP
The Piper field is located in Quadrant 15 some 190 km northeast of
1 1 Aberdeen in the Outer Moray Firth, in the UK Sector of the North Sea.
15/16 Texaco 15/17 15/18b Piper was discovered by Well 15/17-1A in 1972 which encountered oil
Elf-Enterprise Rel. in the Upper Jurassic Piper Formation. Development of the field
4
2,2A involving a single steel platform began in 1975 with first oil production in
PIPER December 1976.
6 B In July 1988 the Piper Alpha platform was destroyed by a series of
1 explosions with great loss of life.
1,1A,1B Annex B approval was given in November 1989 for re-development
18 5
3 15/18a of the field. The new platform, Piper Bravo, began production in
21 Shell February 1993.
7 19
16,17,20,21,23 7
The current interests in the Piper field in per cent. are:-
22A SALTIRE EEP * 36.50
11
10 Texaco Britain Limited 23.50
HOY 9 12 Union Texas Petroleum Limited 20.00
20 26
13,14,15 LASMO plc 20.00
SOUTH 6
14,14Z 25 PIPER
8 operator *
CHANTER
TARTAN
6 3 5
8,8A
24
1,11,13, 4,4A
16 WESTRAY
2,2A 22
49
7 15/21a 15/22 Amoco 0 4 km 15/23a
Amerada Texaco
15/21b
Amerada

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Piper field is located on the north edge of the Witch Ground
Graben at the eastern end of the Moray Firth Basin. To the southwest,
Oil Gravity (API) 36 in Blocks 15/16 and 14/20, the Tartan/Highlander complex of fields also
Gas/Oil Ratio (scf/stb) 350 produces from the Piper Formation which does not exhibit such good
Bubble Point Pressure, Pb (psig) 1630 quality as in the Piper field. Further southeast in Block 15/23 is the
Formation Volume Factor at Pi (rb/stb) 1.23 Galley discovery, which also encountered oil in the Upper Jurassic Piper
Oil Compressibility (vol/vol/psi) 10 x 10-6 and Claymore Sands. Closer by, Saltire and Chanter have been
Original Reservoir Pressure, Pi (psig) 3710 developed as satellites of Piper B in parallel with the Piper Bravo
At Datum Depth of (ft TVDSS) 8000 development. South Piper is a further possible development contender.
Reservoir Temperature (F) 175

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Piper Formation
Geological Age Upper Jurassic
Porosity Range (per cent.) 22-28
Permeability Range (md) 100-8000
Connate Water Saturation (per cent.) 10-20
Oil Water Contact (ft TVDSS) 8510 (main field)
Depth to Top of Structure (ft TVDSS) 7400 FIELD DESCRIPTION

Reserves Piper Saltire Chanter The Piper field comprises three parallel, tilted fault blocks. The
Oil & NGL Gas Oil Gas Oil Gas reservoir is the Upper Jurassic Piper Formation, a high energy, marginal
marine shallow shelf sandstone, which ranges from 170 to 470 feet in
Total Reserves (MMstb, Bcf) 1064 113 100 110 5 30 thickness. Porosities are good and permeabilities very good, giving high
net pay thicknesses. The reservoir contains a low viscosity oil of low
Est. Production to 31.12.95 (MMstb, Bcf) 954 105 34 37 3 16
density. The very high permeability of the reservoir with a strong natural
Remaining Reserves (MMstb, Bcf) 110 8 66 73 2 14
water drive should enable a very high recovery factor to be achieved.
* Includes Saltire and Chanter
Low residual water saturation indicates a high microscopic recovery
factor. However, the layered nature of the reservoir with strong vertical
Production**
permeability contrasts leads to uneven water advance, and premature
water breakthrough in some wells. In 1995, Piper beame deficient in gas
Water depth (feet) 475 and so Saltire gas provides the necessary fuel.
Production Start Date December 1976 Several Piper satellite fields exist. Chanter and Saltire were formerly
Peak Production (Oil and NGL) (stb/day) 285000 known as Southeast Piper and Piper East respectively.
Platform(s) 1 steel + 1 subsea (Chanter) Chanter, some 7 km away from Piper, was discovered by Well 15/17-
Number of Wells - Producers 23 + 1 satellite (Saltire) 13 in September 1985 and has been developed via a single subsea
Water injectors 13 production well tied back to Piper B. It came onstream shortly after
Gas injectors Piper B start-up in 1993. Estimated reserves of Chanter are 5 MMstb oil
Oil and NGL Export Piper-Flotta pipeline and 30 Bcf of gas. Saltire, an oil and gas field was discovered in
Gas Export via Frigg to St. Fergus February 1988 by Well 15/17-16 and also came on stream at about the
pipeline time of the Piper B start-up. It has been developed via a single steel
** Piper only platform, and is remotely controlled from Piper B. Water injection and
gas lift are in place and Saltire is estimated to have 100 MMstb oil and
110 Bcf gas reserves. South Piper is a small oil satellite discovered in
1982 by Well 15/17-9. It may be developed using deviated drilling from
the Saltire platform with a possible production start in 1996. No current
development plans exist for the Westray prospect to the south of
Chanter.
STRATIGRAPHY AND STRUCTURE 1
15/16 15/17
The producing horizon in the Piper field is the Upper

UNITED KINGDOM
PIPER

84
Jurassic Piper Formation. The Piper Formation is of

00
TOP PIPER FORMATION 8500
Upper Oxfordian to Kimmeridgian age and overlies the
volcanic and volcanogenic rocks and delta plain DEPTH STRUCTURE

Piper
sediments of the Middle Jurassic Fladen Group. In 0 1 km
general terms, the Piper field structure can be 4

82
(Contours in feet TVDSS) 8000

00
summarised as comprising three northeasterly dipping,
2A
faulted, tilted, fault blocks, located along the northeastern 0
780

80
7800
margin of the Witch Ground Graben. The three blocks

00
are progressively downthrown towards the southwest, 8400
8400
resulting in subdivision of the field area into three major 6
B

78
compartments. Numerous faults dissect these three

00
8200
major elements and lead to further, more complex

74

O
76
compartmentalisation of reservoir sands. The formation

W
00
74

00
1A

C
00

851
84
is severely truncated on crestal parts of the tilted fault 76

00
00

0
1
blocks. The reservoir sands are sealed by the
Kimmeridge Clay Formation mudstones, or by Lower 5

Cretaceous mudstones and Upper Cretaceous 780


0
0
limestones in crestal areas. 800
00
82

3
SEDIMENTOLOGY AND DEPOSITIONAL

8400
ENVIRONMENT
91
OWC @ 9200 00
The Piper Formation sediments in the Piper field 7

comprise a series of stacked shoreface progradation


sequences. Three major regressive sequences are (Modified after Maher CE, 1981)
recognised separated by thin transgressive horizons.
Unit 1 comprises a basal marine mudstone unit overlain
by a sharp-based sequence of pebbly, locally burrowed nearshore and shoreface laminated sandstones. Thin mudstones are occasionally included at the base of
attached, bar sandstones with internal erosion surfaces. Unit 2 represents a individual progradation sequences. Unit 3 comprises a stacked sequence of shallow
sequence of stacked shoreface progradation sequences, overlying a thin, but marine shoal or shoreface attached bar sandstones, with thin interbedded
laterally persistent fossiliferous marine mudstone. The sandstones form stacked mudstones. A thin mudstone horizon is locally present at the base of the unit. The
coarsening upwards sequences of fine to medium grained, burrowed and sandstones are generally medium to coarse grained and clean, organised into thin
bioturbated sandstones overlain by medium to coarse grained, clean, trough cross- erosively based beds with trough and planar cross-lamination.

INTERPRETATIVE STRUCTURAL CROSS SECTION


15/17-7 15/17-1A 15/17-4 15/12-1
Feet
SW NE
0

POST PALEOCENE
2000

4000
PALEOCENE

6000

8000 UPPER CRETACEOUS

LOWER CRETACEOUS
10000 Pentland/Rattray Formation

12000 Kimmeridge Clay Fm.


0 1 2 3 km
Piper Formation
14000

REPRESENTATIVE WELL SECTION - 15/17-6


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Laterally extensive, non-reservoir, euxinic


marine mudstones.

Repeated progradational sequences of


KIMM.CLAY FM.
L. VOLGIAN

lower to upper shoreface and foreshore


sandstones with minor interbedded, and
8500

underlying offshore marine mudstones and


15/17-6 a basal unit of transgressive sandstones.

Geometry
Broad elongate sheetlike sandbodies
oriented subparallel to palaeo-
shorelines, with laterally extensive
mudstones. Transgressive sandstone
will form laterally extensive sheet
UPPER OXFORDIAN - LOWER KIMMERIDGIAN

geometry sandbody.
HUMBER GROUP

and K
of sandstones generally good, K of
sandstones good to very good. and K
8600

becoming poor to moderate in finer


PIPER FORMATION

grained, argillaceous sections.

(
)

M
8700

Laterally extensive non-reservoir, ?marine


mudstones.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

15/17-6 15/17-2A
10000

15/17-4

Piper 1000

100

PERMEABILITY (md.)
10
0 15/17-1

15/17-5
100
Unit 3

200 1

300 feet

Unit 2

0.1

15/17-3

Unit 1

0.01
0 10 20 30 40

POROSITY (per cent.)

The threefold subdivision of the Piper Formation into major regressive sequences forms Porosities are typically good, (20 to 27 per cent.) and core
the basis of the reservoir zonation, although additional subdivision is appropriate within Unit permeability is good to very good (250 to 5000 md).
2. Unit 1 ranges in thickness from 25 to 98 feet, forming a sheet-like sediment body The primary controls on porosity and permeability are textural.
thickening towards the northeast. Unit 2 ranges in thickness from 82 to 212 feet. The basal Thus, both porosity and permeability increase with increased grain
Unit 2 mudstones form a laterally extensive barrier to vertical communication. The overlying size, sorting and decreased detrital clay content. Superimposed on
sandstones form an extensive sheet-like sediment body, internally comprising several these controls are the effects of diagenesis, which are mainly
progradational sequences separated by thin mudstones, resulting in the delineation of compaction and porosity enhancement in the Piper field. Porosities
additional reservoir zones. Unit 3 ranges in thickness from 8 to 238 feet. The wide range of clean sandstones typically range between 20 and 30 per cent. and
reflects the varying degree of post-Piper truncation with increasing thickness of section thus compaction has not resulted in severe porosity reduction.
removed towards the crest of tilted fault blocks. The unit thickens to the northeast of the Compaction is most significant in argillaceous sandstones, since
Piper field area. The thin mudstone at the base of the unit forms a vertical permeability grain contact dissolution is most severe where grain-coating detrital
barrier in the northern part of the field area. Elsewhere vertical communication with Unit 2 clays are present. Permeabilities of clean sandstones are generally
sandstones is likely to be good. greater than 500 md and range up to greater than 5000 md. Such
high permeabilities are mainly due to slight to moderate corrosion of
quartz resulting in pore and pore-throat enlargement, and the
FLUID PROPERTIES relatively shallow burial depths of the reservoir sandstones (less
than 10000 feet).
The reservoir fluid is a light oil with a gravity of about 36 degrees API, a gas oil ratio of Quartz overgrowth is the principal cement present, but is not
about 350 scf/stb and a bubble point pressure of about 1630 psig. The reservoir fluid sufficiently abundant to reduce porosity or permeability appreciably.
viscosity is around 0.7 cp. The cement serves mainly to maintain a rigid grain framework. Other
cements are not abundant or widespread enough to have
appreciable detrimental effects on reservoir quality.

RESERVOIR PRESSURE

400 1.4 2.0 The Piper field is divided into two pressure regimes with different
GOR oil water contacts, the main reservoir and the south area reservoir.
Both areas are approximately normally pressured, relative to a
300 1.3 1.5 gradient to surface of 0.45 psi/ft.
B0
GOR (scf/stb)

B0 (rb/stb)

0 (cp)

200 1.2 1.0

0 7000

100 1.1 0.5 Main reservoir

7500
175F
0 1.0 0.0
0 1000 2000 3000 4000 5000 Oil Gradient 0.325 psi/ft
8000
PRESSURE (psig)
DEPTH (feet TVDSS)

8500 OWC @ 8510 ft TVDSS

Water Gradient 0.45 psi/ft

9000

CONTROLS ON RECOVERY

The remaining reserves of the Piper field are to be recovered using the Piper Bravo 9500

platform. Large areas of the field are undoubtedly fully swept by injected water and
optimum recovery of the remaining oil presents a significant challenge.
10000
Had the platform not been destroyed, ultimate recovery would have been excellent -
3000 3500 4000 4500 5000
probably over 65 per cent. - due to good sand continuity and well productivity. Future
development, well placement and density will be crucial to optimisation of recovery. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

PIPER BRAVO SALTIRE A CHANTER

UNITED KINGDOM
Water Depth 475 472 469
(feet)
Platform Type steel jacket steel jacket + 1 subsea manifold subsea

Piper
Function drilling/production/ drilling/production/ completion
accommodation accommodation

Jacket Weight 22555 13687


(tonnes)
Total Weight 58000 33500 140
(tonnes)

Accommodation 180 80

Well Slots 24 24 + 3 subsea 1


Wells Planned 24 10 producers
6 water injectors

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 140000 30000 2500


(bbl/day)
Gas Throughput N/A 65 2
(MMscf/day)

Oil Export 30" x 170 km to Flotta 10" x 6.7 km 6" x 11km flexible
pipeline to Piper flowline to Piper B
Bravo
Gas Export 18" x 55 km line to Frigg-St. Fergus 16" x 6.7 km pipeline 6" x 11km flexible
(An Elf-Enterprise Photograph) pipeline at MCP-01 to Piper Bravo, then flowline to Piper B
via MCP-01 to
St. Fergus

@
FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 300 150


Liquid
Net Present Value 4,077.49 2,422.34 1,842.49 1,553.82 1,320.68 1,047.53 729.94
Net Present Value (Deflated) 8,446.99 5,354.48 4,169.33 3,553.16 3,041.13 2,423.28 1,678.42 Gas


@@
@


Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 2.36 2.54 2.58 2.57 2.54 2.45 2.23
Profit/Inv Ratio (Deflated) 2.24 2.09 1.96 1.85 1.74 1.58 1.31
NPV/Unit Oil Equiv. 3.77 3.85 3.87 3.87 3.87 3.86 3.80
NPV/Unit Oil Equiv. (Deflated) 3.76 3.72 3.67 3.62 3.57 3.47 3.27
200 100
Payback Year 1977
Nominal Rate Of Return % 85.31
Real Rate Of Return % 60.43

Post Corporation Tax

@@@


Net Present Value 2,204.92 1,338.07 1,035.89 884.25 760.53 613.28 437.21
Net Present Value (Deflated) 4,791.74 3,108.38 2,448.72 2,099.74 1,805.57 1,444.39 997.60
Profit/Inv Ratio 1.27 1.40 1.45 1.46 1.46 1.44 1.34 100 50
Profit/Inv Ratio (Deflated) 1.27 1.22 1.15 1.09 1.04 0.94 0.78
NPV/Unit Oil Equiv. 2.04 2.13 2.18 2.21 2.23 2.26 2.28
NPV/Unit Oil Equiv. (Deflated) 2.14 2.16 2.16 2.14 2.12 2.07 1.94

Nominal Rate Of Return % 75.42


Real Rate Of Return % 51.55

Earnings Data
0 0
Gross Revenue 15,251.45 8,695.04 6,474.27 5,390.65 4,529.40 3,540.16 2,425.60 1975 1980 1985 1990 1995 2000 2005 2010
Royalty 1,623.35 937.36 697.20 578.79 484.28 375.51 253.25
Petroleum Revenue Tax 6,270.26 3,590.30 2,639.02 2,169.59 1,795.65 1,367.49 891.96 Year
Corporation Tax 1,872.57 1,084.27 806.60 669.56 560.15 434.25 292.73
Capital Expenditure 1,730.00 954.18 714.40 604.01 519.84 427.17 327.10
Operating Costs 1,029.52 456.53 322.24 265.20 222.72 175.87 123.58

Gross Revenue (Deflated) 29,761.76 18,434.70 14,259.65 12,137.18 10,402.87 8,350.60 5,944.44
Royalty (Deflated) 3,153.94 1,936.88 1,484.45 1,254.61 1,067.30 846.75 590.83
Petroleum Revenue Tax (Deflated) 11,667.14 6,951.27 5,211.32 4,335.50 3,628.06 2,805.44 1,871.97
Corporation Tax (Deflated) 3,655.25 2,246.11 1,720.61 1,453.42 1,235.56 978.89 680.81
Capital Expenditure (Deflated) 3,773.66 2,557.55 2,131.70 1,918.37 1,744.24 1,535.90 1,281.30
Operating Costs (Deflated) 1,634.23 936.29 721.57 616.91 532.32 432.08 312.57
CASH FLOW REPORT
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1973 0.0 0.0 0.0 16.0 0.0 0.0 0.0 -16.0 -579.5 0.0 0.0 0.0
1974 0.0 0.0 0.0 47.0 0.0 0.0 0.0 -47.0 -1,437.8 0.0 0.0 0.0
1975 0.0 0.0 0.0 68.0 0.0 0.0 0.0 -68.0 -1,780.4 0.0 0.0 0.0
1976 12.9 0.0 5.0 129.0 0.0 0.0 0.0 -121.1 -2,360.5 5.2 0.0 0.0
1977 581.2 30.6 30.0 98.0 0.0 0.0 30.6 422.6 6,548.3 181.5 0.0 0.0
1978 690.5 72.4 30.0 110.0 16.7 71.5 160.6 389.8 4,819.8 264.4 0.0 0.0
1979 1,005.1 97.2 46.5 57.0 294.8 197.3 589.3 312.2 3,298.4 285.1 10.6 0.0
1980 1,242.6 130.0 65.0 43.0 541.6 180.6 852.2 282.4 2,437.1 228.1 33.9 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1981 1,453.3 156.8 74.8 29.0 667.5 179.7 1,241.2 108.3 734.8 217.7 32.9 13.2
1982 1,427.2 167.7 83.9 23.0 581.9 168.0 1,175.6 144.6 811.1 207.3 26.5 12.3
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 1983 1,498.3 170.0 93.1 20.0 937.2 165.8 1,298.8 86.4 413.6 207.3 21.2 22.6
20.00% 1984 1,552.1 178.0 104.6 12.0 871.9 181.1 1,231.0 204.5 866.3 186.6 31.8 28.4
1985 1,488.7 178.6 105.3 13.0 842.1 175.5 1,196.2 174.2 650.4 191.8 36.1 58.5
Pre Corporation Tax 1986 672.5 124.5 104.5 14.0 421.0 151.1 696.6 -142.5 -464.8 181.5 30.8 63.8
1987 707.4 77.6 73.6 15.0 382.0 58.5 518.1 100.7 293.9 165.9 24.4 93.0
Net Present Value 351.94 326.66 312.24 303.08 294.30 281.86 263.08 1988 225.5 52.6 36.2 11.0 160.2 52.9 265.6 -87.3 -230.7 67.4 8.5 53.4
Net Present Value (Deflated) 338.13 312.72 298.67 289.85 281.47 269.68 252.00 1989 29.6 12.0 10.0 5.0 19.9 17.7 49.6 -35.0 -80.2 0.0 0.0 89.6
NPV/Unit Oil Equiv. 3.15 3.39 3.51 3.58 3.64 3.72 3.84 1990 44.8 0.0 -287.0 330.0 0.0 4.2 4.2 -2.4 -4.8 0.0 0.0 130.8
1991 45.3 0.0 -315.0 370.0 0.0 83.4 83.4 -93.1 -154.9 0.0 0.0 127.4
Post Corporation Tax 1992 45.1 0.0 -148.5 185.0 0.0 67.1 67.1 -58.4 -85.1 0.0 0.0 122.4
1993 267.3 10.8 0.4 80.0 21.6 9.4 41.7 145.1 188.6 53.4 6.0 132.6
Net Present Value 272.29 254.59 244.08 237.30 230.73 221.36 207.04 1994 350.8 23.9 74.4 30.0 107.7 17.3 148.9 97.5 115.4 79.0 11.0 146.3
Net Present Value (Deflated) 263.23 244.70 234.22 227.57 221.20 212.21 198.61 1995 391.1 29.3 75.4 25.0 114.5 11.8 155.7 135.1 144.6 90.0 13.5 120.3
NPV/Unit Oil Equiv. 2.44 2.64 2.74 2.80 2.85 2.92 3.02 Total To Start Of Discounting ( 1/JAN/1996)
13,731.3 1,512.1 262.2 1,730.0 5,980.6 1,792.9 9,806.5 1,932.6 14,143.3 953.5 104.8 443.3
Earnings Data
1996 322.5 28.2 73.8 0.0 104.3 24.0 156.4 92.2 88.7 70.8 9.5 102.3
Gross Revenue 1,520.11 1,300.52 1,196.26 1,135.61 1,080.91 1,008.40 907.97 1997 274.0 21.7 75.5 0.0 83.1 17.7 122.6 75.9 65.0 55.8 6.4 86.5
Royalty 111.22 98.25 91.70 87.76 84.14 79.22 72.19 1998 220.9 16.7 77.5 0.0 59.3 15.9 91.9 51.6 39.3 43.8 4.0 62.9
Petroleum Revenue Tax 289.63 274.91 265.24 258.75 252.34 242.97 228.32 1999 179.0 13.9 79.7 0.0 38.4 11.5 63.8 35.5 24.1 34.5 2.1 46.4
Corporation Tax 79.65 72.07 68.16 65.78 63.56 60.51 56.04 2000 142.2 11.8 77.9 0.0 23.2 7.4 42.3 21.9 13.2 27.1 0.0 29.8
Capital Expenditure 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2001 111.5 9.1 77.0 0.0 12.0 3.7 24.7 9.8 5.2 21.4 0.0 13.9
Operating Costs 767.32 600.69 527.08 486.01 450.14 404.34 344.37 2002 89.4 7.0 60.1 0.0 9.4 0.1 16.5 12.8 6.1 16.8 0.0 7.8
2003 72.8 5.5 59.3 0.0 4.0 0.4 9.9 3.5 1.5 13.2 0.0 5.6
Gross Revenue (Deflated) 1,364.97 1,181.36 1,093.32 1,041.79 995.12 932.91 846.05 2004 59.4 4.0 54.9 0.0 0.5 -1.1 3.4 1.1 0.4 10.4 0.0 4.0
Royalty (Deflated) 102.57 91.03 85.21 81.71 78.49 74.12 67.87 2005 48.5 3.1 42.8 0.0 0.0 0.0 3.1 2.6 0.9 8.2 0.0 2.9
Petroleum Revenue Tax (Deflated) 283.56 266.49 256.27 249.63 243.19 233.95 219.76 Remain
Corporation Tax (Deflated) 74.90 68.01 64.46 62.29 60.27 57.48 53.39 2006 0.0 -9.7 88.8 0.0 -44.5 0.0 -54.2 -34.6 -10.4 0.0 0.0 0.0
Capital Expenditure (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Operating Costs (Deflated) 640.70 511.13 453.17 420.59 391.96 355.15 306.42 Total 1,520.1 111.2 767.3 0.0 289.6 79.7 480.5 272.3 234.2 110.2 8.0 132.2

These cash flows include Piper field only, plus tariff income from Saltire, Chanter, Tartan, Highlander, Petronella, Ivanhoe/Robroy and
Scapa
42/24 Phillips 42/25 BP 43/21 Bow Valley SUMMARY
0 5 km
The Ravenspurn North field is located approximately 65 km
northeast of Easington in the UK sector of the Southern North Sea. The
field was discovered by Hamilton Oil Company in 1984 with Well
43/26a-1. Subsequent appraisal and development drilling showed an
extensive northwest-southeast elongated structure that extends into
42/29 BP 42/30 BP 43/26b Hamilton 43/27 Block 42/30 to the west. During early appraisal the Ravenspurn North
Hamilton
and South fields were thought to be the same structure. As a result the
two fields are being treated as one for tax purposes. Ravenspurn North
3 6 5 RAVENSPURN
NORTH came on stream in October 1990 and has been developed using four
6,7,8 platforms. The central processing platform is of concrete with three legs.
7 9
ST3 4 The accommodation and processing module was placed on two of the
3
7 JOHNSTON legs while the compression module was installed on the third leg two
RC 1 1 3 years later. A total of 41 wells have been drilled in the field.
2 9 RB ST2 8
5 2 2 5
CP 1 The current interests in the Ravenspurn North field in per cent. are:-
CW RA
CP WT 6 2
4 4 Arco 20.00
CLEETON RAVENSPURN 43/26a Hamilton
5 SOUTH BP 20.00
48/1 Amerada Hess 48/2a Amoco
4 Enterprise 16.00
6 4 Hamilton (BHP)* 18.00
NEPTUNE 47/5a BP
Hardy 8.00
47/4b BG
1 PowerGen 12.00
47/4a BG 2 Monument 6.00
1 BABBAGE
47/5b Arco 2
operator *
5

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties Ravenspurn North lies in the northern part of the Southern Gas
Basin. The Ravenspurn South and Cleeton fields are located some 3
Gas Gravity S.G.(air=1) 0.60 km to the southwest and contain gas in the Lower Permian
Condensate Gas Ratio (bbl/MMscf) Rotliegendes sandstone. The Rough and West Sole fields also contain
Gas Expansion Factor (vol/vol) 236 gas in the Rotliegendes sandstone and lie approximately 30 km to the
Reservoir Pressure, Pi (psig) 4542 southwest and south respectively. The nearest fields to the north and
at Datum Depth of (ft TVDSS) 10150 northeast are those of the Esmond Complex which contain gas in the
Bunter Sandstone of Lower Triassic age. The field lies close to the
Reservoir Temperature (F) 219
northerly margin of the Leman Sandstone Formation close to the
Silverpit Lake and consequently is one of the most northerly
Rock Properties
Rotliegendes reservoirs of the Southern North Sea Gas Basin.
Rock Type Sandstone
Stratigraphic Unit Rotliegendes Group
Geological Age Lower Permian
Porosity Range (per cent.) 5-25
Permeability Range (md) 0.01-1000
Connate Water Saturation (per cent.) 40
Lowest Gas (ft TVDSS) 10255-10292
Highest Gas (ft TVDSS) approx. 9700

Reserves FIELD DESCRIPTION


Rav N Johnston
Total Gas Reserves (Bcf) 1200 180 The Ravenspurn North field is a northwest-southeast elongate
Est. Gas Production to 31.12.95 (Bcf) 434 22 structure which includes several tilted fault blocks. The field is primarily
Remaining Gas Reserves (Bcf) 766 158 a structural trap which is dip closed to the northeast and stratigraphically
closed to the northwest. The gas is held in the Lower Leman Sandstone
Production Formation of the Permian Rotliegendes Group. As with the nearby
Ravenspurn South field the sandstones are principally fluvial wadi and
Water Depth (feet) 141-154 sheetflood sediments with aeolian dune and minor playa lake deposits.
Production Start Date October 1990 The playa lake mudstones of the overlying Silverpit Formation form the
Peak Gas Production (yrly average) (MMscf/day) 280 in 1993 reservoir seal.
Platforms 1 concrete processing and Reservoir quality is highly variable across the field being better in the
accommodation platform southeast than the northwest as a result of greater dune presence
3 not normally manned towards the southeast. Permeability is variable but generally poor, with
steel jackets the field showing a complex history of illitisation and permeability
Number of Wells 41 reduction. The best permeabilities lie in the southeast and are the result
Gas Export Pipeline to Dimlington via of early gas migration into localised highs in combination with the
presence of better quality facies.
Ravenspurn South/Cleeton
The field contains a dry gas and was initially normally pressured.
Three separate gas water contacts are known to exist. The field was
brought onto production in October 1990. Compression was installed in
1994.
The small Johnston accumulation located to the east was discovered
in 1990 by Well 43/27-1 and came on stream on schedule to provide
first sales gas on 1 October 1994. The field has been developed with
two wells producing through subsea manifold tied back and operated as
a satellite to Ravenspurn North. The estimated total gas recoverable
from Johnston is 180 Bcf with exportation via Ravenspurn North central
processing platform.
STRATIGRAPHY AND STRUCTURE

Ravenspurn North
43/26b
RAVENSPURN NORTH The Ravenspurn North field structure comprises two en-

UNITED KINGDOM
TOP LEMAN echelon northwest to southeast trending elongated tilted
DEPTH STRUCTURE fault blocks whose long axes dip to the southeast. The two
0 4 km
major fault blocks are separated by a major normal fault
GWC 10294
10 that downthrows up to 1100 feet to the southwest. Closure
00
0 (Contours in feet TVDSS)
5 to the northeast and southeast is controlled by dip, whereas
105 to the northwest closure is stratigraphic and to the
00
100 southwest faulted. Lateral seal across faults is formed by

98
00

00
6
100 102
the overlying Silverpit mudstones. The field is divided into
00 00
GWC 10292 at least three separate gas pools that are full to spill. The
field is separated from the Ravenspurn South field by a
10 7 100
00
0 00 7 major anastomising strike slip fault system.
3 Gas is encountered in the Lower Leman Sandstone
10 Formation at the base of the Rotliegendes Group at a depth
102 20
1 00 0
98
00
100
00
3 of approximately 10000 feet TVDSS. The thickness of the
96 100 reservoir interval varies between 250 and 300 feet and was
00 10 00 5
10
1 30
0
unconformably deposited upon Carboniferous strata of
30 10
0 00
0 Namurian age. Overlying the Leman sandstone are some

10
400 feet of Silverpit Formation mudstones which form the

00
2 2

0
cap rock for the reservoir. Above this are the evaporites and
4 6 carbonates of the Permian Zechstein Group. The
102 underlying Carboniferous is not thought to be of reservoir
00
potential but is considered to be the source for the gas.
42/30 43/26a
47/5a 48/1
GWC 10292 GWC 10255

(Modified after Ketter FJ, 1991)

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Ravenspurn North field lies in the northwestern part of the Sole Pit area and structures. Thin bedded argillaceous sandstones and mudstones represent sabkha
exhibits a complex geological history which has been strongly controlled by the and playa lake sediments.
dominant tectonic trends. These structural features were established during the late Lower Leman sandstone deposition involved the infilling of topographic lows in
Carboniferous and Early Permian. The Variscan orogeny controlled Leman the Variscan unconformity surface. Dune migration was towards the northwest and
sandstone provenance and early Permian extensional faulting controlled ephemeral fluvial systems cut across the lake margin area perpendicular to the dune
depositional patterns during early Rotliegendes deposition. migration direction. The proximity to the Silverpit lake resulted in the strong control
The Rotliegendes Group in the Ravenspurn North and South area consists of an of water table on sedimentation patterns. High water levels resulting in the deposition
interbedded series of fluvial, aeolian, sabkha and playa lake sediments which were of sabkha and playa lake sediments and low levels initiating dune migration.
deposited in a continental semi-arid desert environment. The sequence was Subsequent fluvial and aeolian events caused extensive reworking of sediment.
deposited close to the margins of the Silverpit lake which was located in the centre Following the deposition of the Lower Leman Sandstone, the Silverpit lake expanded
of the desert basin. The sediments comprise fine to locally coarse grained and locally southwards and a thick muddy lacustrine unit was deposited.
argillaceous sandstones and were deposited by primarily fluvial and aeolian The Upper Leman Sandstone Formation is not present in the area of the
processes. Fluvial sediments are generally poorly sorted and often structureless, Ravenspurn North and South fields.
whereas aeolian sediments are well sorted and show typical dune and dune base

REPRESENTATIVE WELL SECTION - 43/26-1

10100 DEPTH (feet)


CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.70
AGE

LITH INTERPRETATION
MUD

POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


P G S
M
C

30 0 0.01 100 5 25 45 0
SILVERPIT FM.

Playa lake mudstones

43/26-1 Lake margin sabkha sandstones, fluvial


sheetflood sandstones and playa lake
mudstones
Geometry
Stacked sheet and lobate sand bodies and
10200
ROTLIEGENDES GROUP

variably extensive mudstones


and k
predominantely poor to moderate
LEMAN SANDSTONE FORMATION.
PERMIAN

k variable
Fluvial and aelian dune sandstones minor
sabkha sandstones and playa lake
mudstones

Geometry
laterally extensive sheet sandstones
10300

and k
moderate to variable
k generally poor to moderate - locally high
10400
CARB.

Non reservoir alluvial plain sediments


RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

Ravenspurn North
10000

43/26-3

43/26-1 SE
42/30-4
43/26-2 43/26-5
La 1000
ke
ma
flu rg
via a in 1
l s nd sabk

Rotliegendes Group
he ha
etf
loo
NW e d

Permian
lak

Leman Sandstone Formation


42/30-5 ay
a
Aeo
Pl lian
dun
fluvia and e
l she La
etflo
ke
ma
100
od rgin
pla and sabk
Aeo ya ha
lian lak
dun e

PERMEABILITY (md.)
fluvia and e
l she
etflo
od od
tflo
ee e
l sh ya lak
via
Flu d pla 10
a n 0

Carb
50
1. Silverpit Formation

100 feet
1

Seven facies types are recognised in the Ravenspurn North area. These reflect 0.1
variations in the proportions of clean sandstone, argillaceous sandstone and mudstone and
show markedly contrasting reservoir quality. The facies are predominantly fluvial and
43/26-2
sabkha types in the northwest of the field but exhibit an increasing aeolian influence towards
43/26-3
the southeast. The sandstone units are generally laterally continuous across the field but
43/26-5
show a lateral heterogeneity. Mudstone units are thought to be of restricted lateral extent. 0.01
The reservoir as a whole exhibits a complex internal architecture resulting from the 0 10 20 30
interstratification and stacking of aeolian, fluvial sheetflood and sabkha sediments and the
POROSITY (per cent.)
more localised deposition of fluvial channel sediments. Localised playa lake mudstones are
not considered to present major barriers to vertical continuity due to their restricted lateral
extent. Porosities in the Ravenspurn North field vary from poor to good
The reservoir interval may be broadly subdivided into a lower distal fan, fluvial, playa lake (5 to 25 per cent.) and average about 12 to 14 per cent. The better
and dune sequence capped by a significant development of lake margin sabkha sediments porosities are seen in the central, aeolian dune dominated
and an upper more dune dominated fluvial and sabkha sequence. The upper of these two sequence of the interval, and in the southeastern areas of the field.
units develops a strongly sabkha and playa lake influenced sequence at its top and Permeabilities are highly variable but tend to be low and range from
develops into the Silverpit Formation. The overall thickness of the Lower Leman Sandstone very poor to good (0.01 to 1000+ md). Trends in porosity are
Formation thins to the northwest where they shale out into younger Silverpit mudstones. controlled by primary textural features and are facies related. A
Reservoir quality is much poorer in this northwestern area. weak bimodality of poroperm characteristics may be observed in
the porosity/permeability crossplot and reflects the broad division
between fluvial and dune dominated sediments. Later diagenetic
processes have altered the distribution of porosity types and
authigenic clay types across the field. Porosity and permeability
reduction in Block 42/30 is the result of a lesser proportion of
aeolian dune sediments and a greater abundance of pore filling illite
in the west. The complex history of illitisation has resulted from
FLUID PROPERTIES variable early charging of the reservoir and resultant preservation of
primary poroperm relationships. These relationships are best
The field contains a dry gas of gravity 0.60 with a wet gas calorific value of 995 BTU/SCF. preserved in fault blocks located in the southeast of the field.
The gas is a dry gas with a minimal liquid yield of 1 stb/MMscf. It has approximately 2.5 mole
per cent. nitrogen and 1.2 mole per cent. carbon dioxide.

1.10
GAS DEVIATION FACTOR Z

1.05 RESERVOIR PRESSURE


z factor

The Ravenspurn North field is normally pressured, with an


1.00 average initial pressure of 4542 psig at a datum depth of 10150 feet
TVDSS. Three separate gas-water contacts have been identified in
the field : the northeastern and western areas of the field at 10292
0.95 feet TVDSS; the northcentral part of the field at 10294 feet TVDSS
and the southern pool at 10255 feet TVDSS.

0.90
0 1000 2000 3000 4000 5000 10000
PRESSURE (psig)

10100
0.08 psi/ft
DEPTH (feet TVDSS)

10200
CONTROLS ON RECOVERY
GWC @ 10255 ft TVDSS
Recovery from the Ravenspurn North field is expected to be poor to moderate.
GWC @ 10292 ft TVDSS
The major controls on recovery are as follows: 10300

highly variable reservoir quality, ranging from very poor to good, with most of the gas
contained in poor quality reservoir 0.5 psi/ft
10400
reservoir deterioration to the north and northwest should restrict water influx
faults to the southeast and east should restrict water influx
highly heterogeneous reservoir architecture with laterally restricted high
permeability zones 10500
compression facilities installed to allow for low pressure at abandonment 4450 4550 4650 4750
hydraulic fracturing of poor reservoir areas greatly enhancing well productivity INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

Ravenspurn North
Ravenspurn North Johnston

UNITED KINGDOM
CPP WT1 ST2, ST3 Subsea
Template/Manifold

Water Depth
(feet) 141 141 141 125

Platform Type Concrete 4 leg steel jacket 4 leg steel Template


gravity bridge linked jacket
base to CPP

Function Processing/ Wellhead Satellite Wet, non TFL,


Accomodation wellhead Template horizontal
trees

Jacket Weight 1500 1500-1750


(tonnes)

Total Weight 34000 3500 3500-4400


(tonnes)

Accommodation 46 None Emergency only


for 9 persons

Well Slots 18 18 each 4

Wells planned 14 14 each 3

PROCESSING AND EXPORT SPECIFICATIONS


(This is a Hamilton photograph)
Gas Throughput
(MMscf/day) 450 450 140 each

Gas Export 24" x 26km 14" diameter 12" x 9 km from


from CPP pipelines Johnston to
to Dimlington to CPP Ravenspurn North
via Cleeton
FULL FIELD LIFE ECONOMIC INDICATORS
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax

Net Present Value 709.15 353.94 212.23 140.75 83.68 19.01 -50.13
PRODUCTION PERFORMANCE
Net Present Value (Deflated) 549.75 211.15 84.61 22.08 -27.22 -82.31 -139.70 HISTORICAL AND PROJECTED
Profit/Inv Ratio 1.19 0.69 0.45 0.31 0.20 0.05 -0.14
Profit/Inv Ratio (Deflated) 0.74 0.33 0.14 0.04 -0.05 -0.16 -0.31 300
NPV/Unit Oil Equiv. 3.55 2.89 2.23 1.72 1.18 0.33 -1.17
NPV/Unit Oil Equiv. (Deflated) 2.98 1.78 0.89 0.27 -0.38 -1.38 -3.09

Payback Year 1996


Average Annual Daily Gas Rate (MMscf/day)
250
Nominal Rate Of Return % 16.12
Real Rate Of Return % 10.84

Post Corporation Tax


200
Net Present Value 475.13 218.98 115.76 63.38 21.40 -26.35 -77.51
Net Present Value (Deflated) 339.24 93.38 0.71 -45.24 -81.51 -122.01 -163.88
Profit/Inv Ratio 0.79 0.43 0.24 0.14 0.05 -0.07 -0.22
Profit/Inv Ratio (Deflated) 0.46 0.14 0.00 -0.08 -0.15 -0.24 -0.36 150
NPV/Unit Oil Equiv. 2.38 1.79 1.22 0.78 0.30 -0.46 -1.81
NPV/Unit Oil Equiv. (Deflated) 1.84 0.79 0.01 -0.55 -1.13 -2.04 -3.63

Nominal Rate Of Return % 13.22


Real Rate Of Return % 8.03 100

Earnings Data

Gross Revenue 2,311.46 1,328.20 1,000.55 842.26 717.24 574.33 413.38 50


Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 9.62 6.12 4.17 3.17 2.40 1.58 0.79
Corporation Tax 234.02 134.95 96.48 77.37 62.28 45.36 27.38
Capital Expenditure 598.19 514.09 473.25 449.10 427.05 397.33 355.15 0
Operating Costs 994.50 454.06 310.90 249.23 204.10 156.41 107.57
1985 1990 1995 2000 2005 2010 2015 2020
Gross Revenue (Deflated) 2,026.60 1,237.94 959.81 821.41 709.80 579.28 427.69
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Petroleum Revenue Tax (Deflated) 9.59 4.93 3.20 2.39 1.79 1.16 0.58
Corporation Tax (Deflated) 210.50 117.77 83.90 67.31 54.29 39.70 24.17
Capital Expenditure (Deflated) 745.24 647.76 599.64 570.97 544.63 508.93 457.87
Operating Costs (Deflated) 722.02 374.10 272.36 225.97 190.61 151.50 108.95
CASH FLOW REPORT
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1988 0.0 0.0 0.0 40.0 0.0 0.0 0.0 -40.0 -105.7 0.0 0.0 0.0
1989 0.0 0.0 0.0 145.0 0.0 0.0 0.0 -145.0 -332.1 0.0 0.0 0.0
1990 33.9 0.0 11.8 150.0 0.0 0.0 0.0 -127.9 -251.6 0.0 69.0 0.0
1991 125.3 0.0 29.5 105.0 0.0 0.0 0.0 -9.2 -15.3 0.0 246.2 0.0
1992 134.3 0.0 31.0 60.0 0.0 0.0 0.0 43.3 63.1 0.0 255.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1993 151.0 0.0 33.2 75.0 0.0 0.0 0.0 42.8 55.6 0.0 276.9 0.0
1994 109.9 0.0 28.9 10.0 0.0 0.0 0.0 71.0 84.0 0.0 193.0 1.8
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1995 92.2 0.0 27.0 0.0 0.0 3.3 3.3 61.9 66.2 0.0 150.0 8.3
Total To Start Of Discounting ( 1/JAN/1996)
Pre Corporation Tax 646.5 0.0 161.4 585.0 0.0 3.3 3.3 -103.1 -435.9 0.0 434.4 3.7

Net Present Value 809.01 715.59 655.55 618.05 583.23 536.30 471.10 1996 156.6 0.0 34.0 0.0 0.0 7.1 7.1 115.5 111.2 0.0 250.0 8.3
Net Present Value (Deflated) 750.11 644.82 588.96 555.60 525.25 484.89 429.32 1997 162.8 0.0 35.4 0.0 0.0 29.6 29.6 97.9 83.8 0.0 250.0 8.3
NPV/Unit Oil Equiv. 6.34 7.33 7.68 7.84 7.97 8.10 8.24 1998 156.2 0.0 35.4 0.0 0.0 34.0 34.0 86.9 66.3 0.0 230.0 8.3
1999 141.3 0.0 34.6 0.0 0.0 33.8 33.8 72.9 49.5 0.0 199.0 8.3
Post Corporation Tax 2000 127.9 0.0 34.0 0.0 0.0 30.7 30.7 63.3 38.2 0.0 172.2 8.3
2001 115.0 0.0 33.5 0.0 0.0 27.6 27.6 53.9 29.0 0.0 149.0 7.0
Net Present Value 578.27 519.56 480.39 455.63 432.49 401.06 356.96 2002 103.4 0.0 33.2 0.0 0.0 24.3 24.3 45.9 21.9 0.0 128.9 6.0
Net Present Value (Deflated) 542.98 474.28 437.18 414.84 394.41 367.07 329.08 2003 92.9 0.0 33.1 13.2 4.6 21.2 25.8 20.8 8.8 0.0 111.5 5.0
NPV/Unit Oil Equiv. 4.53 5.32 5.63 5.78 5.91 6.06 6.24 2004 83.6 0.0 33.2 0.0 6.6 15.3 21.9 28.4 10.8 0.0 96.5 4.3
2005 75.2 0.0 33.3 0.0 2.8 12.5 15.3 26.6 9.0 0.0 83.5 3.7
Earnings Data 2006 67.4 0.0 33.6 0.0 0.4 11.8 12.1 21.7 6.5 0.0 72.2 3.0
2007 60.8 0.0 34.0 0.0 0.0 10.1 10.1 16.7 4.5 0.0 62.5 2.7
Gross Revenue 1,664.92 1,219.41 1,045.07 953.26 876.05 781.20 662.61 2008 52.6 0.0 33.1 0.0 0.0 8.0 8.0 11.5 2.7 0.0 54.1 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 47.3 0.0 32.1 0.0 0.0 5.8 5.8 9.4 2.0 0.0 46.8 0.0
Petroleum Revenue Tax 9.62 9.04 7.71 6.80 5.95 4.83 3.40 2010 42.6 0.0 31.3 0.0 0.0 4.6 4.6 6.7 1.3 0.0 40.5 0.0
Corporation Tax 230.74 196.03 175.17 162.42 150.74 135.24 114.14 2011 38.3 0.0 30.6 0.0 5.8 2.5 8.3 -0.6 -0.1 0.0 35.0 0.0
Capital Expenditure 13.19 9.15 7.40 6.45 5.64 4.62 3.36 2012 34.5 0.0 29.8 0.0 2.6 1.0 3.6 1.1 0.2 0.0 30.3 0.0
Operating Costs 833.10 485.63 374.40 321.96 281.23 235.45 184.75 2013 31.0 0.0 27.8 0.0 1.7 0.6 2.3 0.9 0.1 0.0 26.2 0.0
2014 27.9 0.0 25.9 0.0 1.1 0.4 1.5 0.5 0.1 0.0 22.7 0.0
Gross Revenue (Deflated) 1,313.45 1,006.25 880.93 813.41 755.67 683.39 590.60 2015 25.1 0.0 24.4 0.0 0.5 0.2 0.7 -0.0 -0.0 0.0 19.6 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2016 22.6 0.0 20.1 0.0 1.1 0.0 1.1 1.4 0.1 0.0 17.0 0.0
Petroleum Revenue Tax (Deflated) 9.59 7.29 5.93 5.13 4.43 3.55 2.47 Remain
Corporation Tax (Deflated) 207.13 170.54 151.78 140.75 130.84 117.82 100.24 2017 0.0 0.0 170.9 0.0 -17.6 -50.3 -67.9 -103.0 -8.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 10.00 6.94 5.61 4.89 4.27 3.51 2.55
Operating Costs (Deflated) 543.75 347.20 280.44 247.79 221.71 191.43 156.26 Total 1,664.9 0.0 833.1 13.2 9.6 230.7 240.4 578.3 437.2 0.0 765.6 26.8

These cash flows include Ravenspurn North plus Johnston tariff income
47/2 Amerada 47/3a 47/3e 47/3b 2 47/4a SUMMARY
Amerada BP BG BG

8
The Rough field is located in Blocks 47/8b and 47/3d, approximately
7 5
9 30 km off the Yorkshire coast, in the UK sector of the Southern North
Sea. The field was discovered by Gulf Oil Company in May 1968 with
YORK APOLLO Well 47/8-1 which encountered gas in Rotliegendes sandstones. The
4
1 field was brought onstream as a conventional gas field in 1975 by a
3
consortium which included Amoco, British Gas Corporation, Amerada
3d BGC Hess and Texas Eastern.
In March 1980 the British Gas Corporation bought out its partners'
interests in the Rough field and subsequently developed the field as a
CD storage reservoir to meet peak winter gas demands. First injection into
BP the reservoir began in July 1985.
AP
47/7 Rel. 47/8a Amoco 9c To convert Rough from production to storage, three platforms were
ROUGH BD 1 AD Mustang added to the original two platforms. One is processing and the other two
2
are drilling, with 19 wells now drilled. In theory, Rough provides a
storage capacity of 80 Bcf although the amount in practice may be
8b BG greater. With injection equipment and 33000WP of compression the
9b BG field can accept gas up to 500 MMscf/d for storage.

2
3

0 4 km 9a BG

LOCAL SETTING

The Rough field is located in the west of the Southern North Sea
Basin, to the southwest of the Dowsing Fault Zone. The field is the most
westerly field of the Southern North Sea. Gas is found in Rotliegendes
sandstones which comprise mixed fluvial and aeolian sediments.
However, gas bearing non-productive Carboniferous sandstones
underlie the reservoir. The field is located beyond the southwestern limit
RESERVOIR CHARACTERISTICS of influence of the Silverpit Lake.
A number of accumulations and reservoirs have been identified in
Fluid Properties this area. These are all Rotliegendes sandstone reservoirs. The
reservoir quality of the Rough field is uncharacteristically good for this
Gas Gravity S.G. (air =1) 0.63 area. Fields of the Sole Pit to the east, such as West Sole, exhibit poor
Condensate Gas Ratio (bbl/MMscf) 7 permeabilities and Amethyst to the southeast has moderate to poor
Gas Expansion Factor (vol/vol) 250 reservoir characteristics.
Reservoir Pressure Pi (psig) 4518
at Datum Depth of (ft TVDSS) 9200
Reservoir Temperature (F) 200

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Rotliegendes Group
Geological Age Lower Permian
Porosity Range (per cent.) 10-20
Permeability Range (md) 10-1000
Connate Water Saturation (per cent.) 25-45
Gas Down To (ft TVDSS) (approx.) 9400
Depth to Top of Structure (ft TVDSS) (approx.) 9050
FIELD DESCRIPTION
Reserves
The Rough field is a fault bounded anticline approximately 10 km
Gas Initially in Place (Bcf) 385 long and 3 km wide. The reservoir comprises Lower Permian
Total Gas Reserves (Bcf) 354 Rotliegendes sandstones unconformably overlying Carboniferous
Gas Production to 1980 (Bcf) 132 subcrop and is sealed by Zechstein evaporites and carbonates. The
reservoir sandstone is a fairly uniform thickness varying from 80 to 117
Production feet. Predominantly, porosities are moderate and permeabilities are
good. The original reservoir fluid is a dry gas with an initial condensate
Water Depth (feet) 120 yield higher than most surrounding North Sea fields. Though not part of
Initial Production Start Date October 1975 the main reservoir, gas has been tested in Lower Carboniferous
Injection Start Date July 1985 sandstones. A gas water contact has been encountered in these sands
Platforms- which is considered applicable over the whole field. No wells have been
Initial Development 2 Steel Piled jackets drilled to this depth in the Rotliegendes sandstone and no GWC has
Additional Storage been encountered.
Mode Facilities 3 Steel Piled jackets Production began in 1975 and a total of 130 Bcf of gas was produced
Number of Wells before British Gas acquired the field in 1980 and began the
development of Rough as a storage reservoir. Reservoir pressure had
Initial Dev. Producers 6
declined to approximately 2800 psig. From 1980 to 1984 production
Storage Mode Additional 18
was severely cut back, the field supplying only at peak times, as the
Producers/Injectors
existing facilities were upgraded and new facilities installed. Production
Gas and NGL Export Pipeline to Easington
from the additional facilities began in February 1985 and gas injection
Shore to terminal
began in July 1985. Since then gas has been injected during the
summer months with peak gas being supplied during winter. Current
peak daily rates of production are about 1100 MMscf/day, and this is
maintained for about 40 days in a typical year. A plan by British Gas to
increase peak production capacity to approximately 1700 MMscf/day is
currently on hold, owing to uncertainties in the UK gas market.
47/2 47/3a 47/3c STRUCTURE AND STRATIGRAPHY
47/3d
ROUGH The Rough gas field is located on a moderate to high

UNITED KINGDOM
TOP ROTLIEGENDES relief, west northwest to east southeast trending faulted
DEPTH STRUCTURE anticline to the southwest of the Dowsing Fault Zone.
The gas is found in the Permian, Leman Sandstone

Rough
0
960
0 2 km
Formation (Rotliegendes Group) which is encountered
9400 (Contours in feet) at a depth of 9000 feet TVDSS towards the crest of the
structure. Sandstones in the underlying Carboniferous
9400
94
00 section may make a minor contribution to the Rough
GWC 9450 reservoir. The gas water contact is estimated to be at
9300
9450 feet TVDSS and the reservoir section averages

930
CD 100 feet thick (ranging from 80 to 117 feet).

0
BP
The Rough field structure shows dip closure at about
47/7 BD
9450 feet TVDSS, to the northwest. The major bounding
1 9200 00
93 faults have throws of up to 1100 feet in the southeast,
47/8b AP decreasing to the northwest. Faults also occur within the
47/8a AD
field (throws of up to 150 feet) and are generally

93
00
920 confined to the south eastern corner. The reservoir is
0 9100

9200
9000 sealed by the overlying Zechstein Group evaporites.
9100 00
91

2
0
920

(Modified after Stuart IA, 1991)

SEDIMENTOLOGY AND DEPOSITIONAL INTERPRETATIVE STRUCTURAL CROSS SECTION


ENVIRONMENT
47/8-1
The Leman Sandstone Formation in the Rough area represents
Feet SW NE
a thin sequence of alluvial and aeolian sediments deposited 0
towards the western margin of the Southern Permian Basin. The
sediments comprise well sorted, clean, cross-bedded aeolian dune TERTIARY/QUARTERNARY Chalk Group
Cromer Knoll
sandstones, interbedded with locally argillaceous and often poorly 2000
Group
sorted fluvial sandstones and conglomerates. These JURASSIC
unconformably overlie Carboniferous, probable delta plain
sediments. 4000
TRIASSIC
The Leman Sandstone Formation is subdivided into three units,
based on sedimentary facies associations. The basal unit
comprises interbedded aeolian and sheetflood sandstones 6000
Top Bunter

representing deposition in a distal braidplain or inland sabkha/lake


margin setting. The middle unit consists of fluvial sandstones and
conglomerates deposited by mainly stream flood processes in a 8000 Zechstein Group
proximal braidplain to alluvial fan setting. The upper unit is a
relatively thin section of aeolian sandstones, with only minor fluvial
influence, representing deposition following alluvial fan 10000
CARBONIFEROUS
abandonment in a more arid desert environment. Rotliegendes Group
Sedimentological information on the Carboniferous sandstones
is scant but the sandstones are likely to be fluvial in character.
0 1 2 km

REPRESENTATIVE WELL SECTION - 47/8-1

CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER


150 UNIT
VC

VF

(PERCENT) (md) (Inches)


M
C

B C P 40 0 0.1 10000 5 25
ROTLIEGENDES GROUP ZECHSTEIN GP

Shallow marine/marginal marine carbonates


KUPF. FM.

overlying sapropelic marine mudstone.

Geometry
Laterally extensive, non reservoir sediments
9250

47/8-1 Aeolian dune sandstones. Laterally extensive


PERMIAN

LEMAN SANDSTONE FM.

sheet geometry. and K as below

Fluvial sandstones and conglomerates.


Geometry
Laterally extensive sheet.
9300

and K
and K moderate to good, locally poor.
Distal braidplain / inland sabkha and minor
aeolian sandstones.
Geometry
Laterally extensive sheet.
and K as above.
CARBONIFEROUS

Probable delta plain mudstones, siltstones


9350

and sandstones.
UNDIFF.

Geometry
Laterally extensive non reservoir mudstones
with interbedded sheet like to lenticular
sandbodies.
and K
and K of sandstones moderate.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000
SE
Dominantly aeolian sandstones 47/8-2
NW Dominantly fluvial sandstones and conglomerates
47/8-1

Rough
Zechstein Group

1000
CARBONIFEROUS
Dominantly fluvial sandstones with aeolian reworking
0

Probable delta plain sandstones


100 feet

100

The recognition of the sedimentary units in the three fold sub-division of the Leman

PERMEABILITY (md.)
Sandstone Formation can be difficult. Although correlation and layering are possible,
significant laterally extensive restrictions to vertical flow between sedimentary units are
10
absent. Rotliegendes reservoir sandstones have an overall sheet geometry, but with a
complex internal architecture resulting from the interstratification of laterally extensive
sheetflood and aeolian sandstones and more laterally restricted channel fill sandbodies.
The Carboniferous sediments, however, form a separate layer, within which sand bodies are
likely to be laterally and vertically restricted within non reservoir lithologies. Vertical
1
connectivity with the overlying Rotliegendes sandstones is likely to be poor.
The thickness of the Leman Sandstone Formation ranges from about 80 to over 100 feet,
generally thickening to the northeast across the field. Carboniferous sandbodies are
generally less than 50 feet thick, but limited data precludes prediction of thickness
distribution and trends in the Rough field area.
0.1

0.01
0 10 20 30

POROSITY (per cent.)

FLUID PROPERTIES Porosity values are poor to good, but values are typically
moderate (10 - 20 per cent.). Permeability values are poor to good,
The initial fluid in the Rough field was a dry gas with a condensate gas ratio of but predominantly good (100 - 1000 md). On a field scale, trends in
approximately 7 bbl/MMscf. This is a higher yield than from similar reservoirs in the porosity and permeability values are controlled by the primary
Southern North Sea. textural characteristics of grain size, sorting and detrital clay content,
A typical separator gas composition is listed below: and hence facies distribution. As a result, aeolian dune sandstones
have better reservoir quality compared to the fluvial sandstones. A
burial related diagenetic overprint is evident in all facies types,
although the more argillaceous, fluvial and sabkha sandstones show
more porosity and permeability reduction due to compaction. Blocky
COMPOSITION 1.05
(mol. %) 47/8-A3 anhydrite, quartz and dolomite cements may locally reduce reservoir
quality, especially at the base and top (sub-Zechstein) of the
CO2 0.58 Rotliegendes. Porosity values may be slightly enhanced by
GAS DEVIATION FACTOR Z

N2 2.52
H2S - Zi = 0.97 secondary porosity resulting from grain and cement dissolution.
C1 91.20
C2 3.70
C3 0.86 0.95
C4 0.36
C5 0.23
C6 0.10
C7+ 0.45
S.G. (AIR=1.0) 0.63
C.V. (Btu/scf) 1039
@ 200 F (from correlation) RESERVOIR PRESSURE
0.85
0 1000 2000 3000 4000 5000
The Rough field had an initial reservoir pressure of 4518 psig at
PRESSURE (psig)
9200 feet TVDSS which is slightly overpressured compared with
other fields in the Southern North Sea. The field was switched to
storage mode when the pressure had declined to 2800 psig. No gas
water contact has been encountered in the Rotliegendes sandstones
but gas has been recorded down to 9400 feet. A gas water contact
has been encountered at 9450 ft TVDSS in Carboniferous sands
which may apply to the Rotliegendes reservoir.

8500

CONTROLS ON RECOVERY

Were the Rough field to be depleted as a normal gas field, recovery would be very good,
resulting from: 9000
0.08 psi/ft
DEPTH (feet TVDSS)

predominantly moderate and good permeabilities in fluvial and subordinate aeolian


sandstones and conglomerates.
simple fault bounded structure, with little underlying water.
simple sheet-geometry of the reservoir section with no vertical permeability barriers. GDT 9400 ft TVDSS
GWC (Carboniferous)
possible gas influx from underlying isolated Carboniferous sands. 9500
@ 9450 ft TVDSS

The favourable reservoir characteristics, together with its proximity to the UK coastline and
reservoir size made the Rough field particularly suitable for use as a gas storage reservoir.

10000
4450 4500 4550 4600

INITIAL RESERVOIR PRESSURE (psig)


FACILITIES SPECIFICATIONS

ORIGINAL FACILITIES ADDITIONAL STORAGE

UNITED KINGDOM
FACILITIES
'AD' 'AP' 'BD' 'BP' 'CD'

Rough
Water Depth ---------------------------------- 120-130 ------------------------------
(metres)
Platform Type steel piled jackets ----------------------
--------------------------
Function drill/ process drill/ process & well-
accom. accom. comp. head

Jacket Weight 741 696 4745 3980 2170


(tonnes)
Total Weight of Structure 13600 11750 4660
(tonnes)

Accommodation 85 144

Well Slots 12 12 12
Wells 6 12 6

PROCESSING AND EXPORT SPECIFICATIONS

Maximum Production Rate 1450


(MMscf/day)
Maximum Injection Rate 500
(MMscf/day)
(Reproduced by permission of British Gas plc)

Gas Export/Import 16" x 29 km pipeline from A Complex


to Easington shore terminal
36" x 29 km pipeline from B Complex
to Easington shore terminal
ECONOMIC ANALYSIS 18" x 2 km infield pipeline from A
Complex to B Complex
As the Rough field is being used as a storage reservoir to meet peak
demand during the winter period, a conventional economic analysis is not rel-
evant. In this analysis we have attempted to quantify the cost of making
available this peak gas from the Rough field by converting it to a storage
reservoir. This has been expressed as a cost in pence per therm of gas inject-
ed (and later produced) which would yield a reasonable return on the PRODUCTION PERFORMANCE
investment and operations of the storage facilities. HISTORICAL AND PROJECTED
This indicates that to yield a Nominal Rate of Return of 15 per cent. on the 120 'ORIGINAL FIELD DEVELOPMENT'
project, the effective cost of making peak winter gas available is approx-
imately 50 pence per therm in 1989 terms.
Average Annual Daily Gas Rate (MMscf/day)

100

METHOD
80
The method used is to consider the Rough storage project on a stand
alone basis with project start in 1980. From a project point of view the first
60
cost was the purchase of the field by British Gas. This has been estimated by
attributing the hypothetical profile shown on the right to the original field
development. The development costs of 700 million for developing the addi- 40
tional facilities and refurbishing the existing platforms are then added as
further capital costs. The field operating costs consist of the normal fixed
yearly operating costs. 20
The project revenue is assumed to be the effective cost of the gas (pence
per therm) multiplied by the winter production. This is assumed to be 1100
MMscf/day for 40 days each year. The figure below illustrates the relationship 0
1970 1975 1980 1985 1990
between the project Rate of Return and the implied cost of the gas.
Year

60
Annual Gas Production (Bcf)

25

40

20
Nominal Rate of Return (per. cent)

20

15
0
1975 1980 1985 1990 1995 2000 2005 2010

10 Year
0
Annual Gas Injection (Bcf)

5
20

0 40
25 35 45 55 65 75

Cost of making Peak Gas available in the winter (p/therm) 60


43/25b Amerada 44/21b Amerada 44/22c Conoco 44/23b
SUMMARY
Hunter
MURDOCH Arco
10
The Schooner gas field is situated in the Silverpit Basin of the
3 2 8
3 6 44/22a Southern North Sea some 150 km east of the English coast. The field
21a Conoco
1 BOULTON 7 Con occurs mainly in Block 44/26a, with a minor extension into Block 43/30.
7,7a 4 1 The first well on the structure was dry, but was terminated at 1500 m
5 4 CAISTER
2 10 TVDSS, well above the reservoir. The accumulation was discovered by
6 5
43/25a BG
7 2 Well 44/26a-2 in early 1987 and will be developed by means of a 12
1 9
8 3 6 slot, not normally manned platform. Gas will be piped 28 km via a 16
43/25c Mustang 44/21c 1 9 4,4a,4RE
544/23a Total inch gas pipeline to the Murdoch platform for export through the Caister
Mustang 44/22b Conoco
Murdoch System (CMS) to the Theddlethorpe terminal. Start up is
43/30 Amoco 44/26b Lasmo 44/27a 44/27c b 44/28d 44/28a Shell
Lasmo Mustang Conoco
targeted for October 1996 with output up to 150 MMscf/day.
3 The current interests in the Schooner field in per cent. are:
4
4 Shell
Eastern Electricity 4.83

Lasmo
2 SCHOONER Exxon 46.55
KETCH
44/26a 2 1 RD/Shell* 46.55
3 Shell
Sovereign Exploration 2.07
44/26c 1 2,2a
Amoco
1
5,6 44/28c operator *
1 Lasmo
48/5c Amoco 49/1b Amoco 49/2a Rel. 49/2c 49/3 Lasmo The initial unitisation agreement splits reserves 93.1% : 6.9%
Mustang between blocks 44/26 and 43/30 respectively.
3

2 1 1
4
49/1a Fina
3 2
48/5a
Arco British 49/2b
1 1 0 5 km
Mustang 2
48/5b Phillips 49/1c Mus

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties The Schooner field is located in the Silverpit Basin area of the
Southern North Sea in a water depth of 230 feet. Neighbouring fields
Gas Gravity (air = 1) include the undeveloped Ketch discovery (Block 44/28) to the west and
Condensate Gas Ratio (bbl/MMscf) 6 the producing, Murdoch (Block 44/22) and Caister (Block 44/23) fields
Gas Formation Volume Factor (vol/vol) to the northeast, all of which have Carboniferous reservoirs. The Caister
Reservoir Pressure Pi (psig) 6575 (approx.) field also produces from the Triassic Bunter reservoir.
at Datum Depth of (ft TVDSS) 3065 The Silverpit Basin is believed to contain very little reservoir potential
Reservoir Temperature (F) in the Permian Rotliegendes interval due to the shale prone nature of
the horizon in this area.
Rock Properties

Rock Type Sandstone


Stratigraphic Unit Barren Red Measures
Geological Age Carboniferous
Porosity Range (per cent.) 10-15
Permeability Range (md) 1-5000
Average Water Saturation (per cent.) 22
Gas Water Contact (ft TVDSS) approx. 13065
Depth to Top of Structure (ft TVDSS) approx. 12400

Reserves

Total Gas Reserves (Bcf) 550


Gas Production to 31.12.95 (Bcf) 0
Remaining Gas Reserves (Bcf) 550
FIELD DESCRIPTION
Production
The field is an elongate northwest to southeast orientated structure,
similar to the neighbouring Ketch, Murdoch and Caister fields. Although
Water Depth (feet) 230 no published top reservoir structure maps are available, it is assumed
Production Start Date October 1996 that Schooner is an elongate fault bounded structure similar in shape
Peak Gas Production (MMscf/day) 150 and style to that of Murdoch. The gas bearing sediments are the Barren
Planned for 1997 Red Measures of Carboniferous age, which comprise a series of
Platform(s) 1 interbedded fluvial channel sandstones and floodplain shales.
Number of Wells 9 (planned) Sandstone units are thin and discontinuous across the structure, hence
Gas & NGL Export Via Murdoch through Caister Murdoch the reservoir has a complex internal architecture.
System (CMS) to Theddlethorpe The reservoir is sealed by the mudstones of the Rotliegendes Group
Silverpit Formation. Porosity and permeability are moderate to good,
with permeability locally ranging up to higher values than observed in
the nearby Caister and Murdoch fields. However, the reservoir sands at
Schooner are thinner and have a much more complex geometry and
level of interconnectivity than in these nearby producing fields.
Reservoir quality is therefore poorer.
The reservoir contains a wet gas.
The Schooner field has a planned development using a remotely
controlled, not normally manned platform. The jacket was installed in
mid-1995, allowing the drilling of five development wells. Four more
development wells are planned during the field's life. This will include a
subsea satellite well up to 9 km away required to exploit the northern
area of the field. Topsides, including a wet gas metering system, are
planned to be installed during the summer of 1996.
STRATIGRAPHY AND STRUCTURE

The Schooner field is located within the Silverpit Basin in the Southern North Sea. Coal Measures. The two units are lithologically similar, both represented by fluvial

UNITED KINGDOM
The accumulation has an elongate north-northwest to south-southeast orientation sandstones interbedded with flood plain mudstones.
reflecting the Hercynian structural trend. This orientation is the same trend as that The Carboniferous mudrocks and coals are also the source, and the overlying

Schooner
seen in the nearby Caister, Murdoch and Ketch fields. The trap has a relief of Permian Silverpit Formation represents the thick top seal to the reservoir.
approximately 650 feet, with a depth to the crest of approximately 12400 feet The Schooner reservoir is overlain by a thick sequence of Permian, Triassic,
TVDSS, and a gas water contact at 13065 feet TVDSS. Upper Cretaceous and Tertiary sediments. Lower Cretaceous sequences are thin,
The reservoir is of Carboniferous age with the majority of the hydrocarbons and the Jurassic is absent. Marked thickness variations within overburden layers
contained in the Barren Red Measures. A minor proportion occurs in the underlying occur, complicating the structural mapping and depth conversion processes.

INTERPRETATIVE STRUCTURAL CROSS SECTION


44/26-2 44/26-3
Feet

0
TERTIARY

UPPER CRETACEOUS

5000
LOWER CRETACEOUS
TRIASSIC

10000 PERMIAN Zechstein Group

PERMIAN Rotliegendes Group


?
CARBONIFEROUS
15000 CARBONIFEROUS
Barren Red Group
0 1 km

SEDIMENTARY AND DEPOSITIONAL ENVIRONMENT

The reservoir represents a series of sandstones, siltstones and mudstones probably narrow, ribbon geometry units. The channel sands pass laterally into
deposited within a fluvial floodplain depositional environment. The principal facies channel margin sand, silt and mud sequences which represent overbank
types are blocky to fining upwards sandstone units, blocky shale units and thinly flood/crevasse splay deposits, interbedded with floodplain fines. Rapid vertical and
interbedded sandstone, siltstone and shale sequences. These are interpreted to lateral facies changes observed within and between wells suggests that channel
represent fluvial channel fills, interchannel or floodplain lacustrine muds, and locations fluctuated continuously across the floodplain during the aggradation of the
channel margin sequences respectively. Channel sandstones are thin, and represent sequence, resulting in a complex internal reservoir architecture.
single channel fill sequences. The channel sandbodies are therefore

REPRESENTATIVE WELL SECTION - 44/26-3

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
0 150 ROCK 1.95 2.95

AGE
LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON
(PERCENT) (md) (Inches) (Limestone units)
40 0 0.01 10000 5 25 45 -15

Lacustrine sediments.
Blanket of silty mudstone with evaporites

SILVERPIT FORMATION
Floodplain mudstones and siltstones with

PERMIAN
minor channel and associated sands

12800
Geometry
Ribbon geometry and lenticular sands
encased in shales/silts
44/26-3
and k
Best developed in clean channel sands

12850

Fluvial channel sandstones interbedded


with floodplain shales and silts
12900

Geometry
Ribbon geometry channel sands separated
by shales

and k
BARREN RED MEASURES

Best developed in clean channel sands


12950

where quality is moderate to good


CARBONIFEROUS

13000

Floodplain mudstones and siltstones with


minor fluvial channel and associated
sandstones

Geometry
Thin narrow ribbon geometry channel sands
13050

and lenticular channel margin sands


encased in siltstones/shales

and k
Moderate reservoir quality restricted to thin
channels, otherwise interval of poor to
negligible reservoir quality
13100
13150
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
44/26-3
10000

L. PERMIAN
Silverpit Fm.
Schooner
vel
n le
mia
se Per
t Ba
ity a
form 1000
con
nal un
rosio

Barren Red Measures


E
Ribbon geometry fluvial channel sands
separated by shales and silts
44/26-2

100

CARBONIFEROUS

PERMEABILITY (md.)
Floodplain shales and siltstones

Ribbon geometry fluvial channel sands 10


separated by shales and silts
Datum
Top Coal Measures

Coal Measures
0

Floodplain shales 1

Muddy channel margin sandstones


Fluvial channel sandstones
Inferred correlation lines
100 ft

0.1

The Schooner reservoir has a complex stratigraphic and sandbody development. The
Barren Red Measures are differentially eroded at the base Rotliegendes Unconformity and
therefore show marked thickness variation across the field. In addition, the thin and narrow 0.01
ribbon geometry channel sands result in a complex distribution of reservoir quality sand. 0 10 20 30

The reservoir can be broadly subdivided into three layers by lithostratigraphic correlation of POROSITY (per cent.)

the top of the Coal Measures sequence and the recognition of an intra-Barren Red
Measures persistent shale unit. This shale unit separates upper and lower sand prone
Barren Red Measures sequences. The Schooner field shows a wide range of values reflecting the
Reservoir sandbodies of up to 20 feet in thickness, are expected to form ribbon geometry wide range of depositional characteristics. Clean channel sands
sands 100's of metres in width, probably orientated north to south or northeast to southwest show the best quality, with porosities as high as 17 per cent. and
based on regional depositional model considerations. maximum permeabilities of 100's of md.
Internal communication of reservoir sandstones is therefore expected to be poor, with The thinner, often muddy, micaceous and preferentially cemented
marked implications for recovery efficiency. channel margin sandstones show lower values from non-reservoir
quality through to the lower limit of the channel facies characteristics.
Given the wide range of textural types (grain size, sorting and mud
content) present, primary facies characteristics are expected to be
the overriding control on the distribution of reservoir quality
sediment. Secondary diagenetic effects are expected to have a
subordinate overprint effect.
FLUID PROPERTIES

The hydrocarbons within the Schooner field represent a wet gas with a condensate to
gas ratio of approximately 6 bbl/MMscf.

1.0
RESERVOIR PRESSURE

The Schooner field is overpressured by some 700 psi relative to


GAS DEVIATION FACTOR Z

an average hydrostatic pressure gradient of 0.45 psi/ft. The gas


water contact is defined from RFT data at 13065 feet TVDSS with a
0.95
No Data gas gradient of 0.087 psi/foot and an aquifer gradient of 0.52 psi/ft.
Available

12500

0.90
0.087 psi/ft
0 1000 2000 3000 4000 5000 6000

PRESSURE (psig)
13000
DEPTH (feet TVDSS)

GWC @ 13065 ft TVDSS

0.52 psi/ft

13500

CONTROLS ON RECOVERY

The recovery factor at Schonner is expected to be low, in the range 50 to 60 per cent.
The only analogous, Carboniferous producing fields are the nearby Murdoch and Caister
14000
fields which each have only 2 years production history. However, the reservoir at Schooner
6500 6600 6700 6800 6900 7000 7100
is more complex than at these two producing fields, comprising a series of thin, ribbon like,
INITIAL RESERVOIR PRESSURE (psig)
probably poorly interconnected reservoir sands encased in sitstones and shales. Key
factors controlling recovery will therefore be;

continuity and connectivity of the reservoir sands


the overall moderate reservoir characteristics
the dislocating effect of intra-reservoir faults
the success of the highly deviated production wells in contacting the complex geometry
sands
FACILITIES SPECIFICATIONS

UNITED KINGDOM
Water Depth 230

Schooner
(feet)
Platform Type Steel jacket, 4 legged
Function Production wellhead

Jacket Weight 2200


(tonnes)

Total Weight of Structure 3600


(tonnes)

Photograph/Schematic Accommodation not normally manned


Well Slots 12
Not Available Wells planned 9

PROCESSING AND EXPORT SPECIFICATIONS

Gas Throughput 250


(MMscf/day)

Gas Export 16 x 28km to Murdoch then


through CMS (Caister Murdoch System)
to processing plant at Theddlethorpe
on the Lincolnshire coast

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% PROJECTED

Pre Corporation Tax 150

Net Present Value 553.31 330.62 238.81 190.33 149.95 101.50 44.37
Net Present Value (Deflated) 406.21 231.40 160.32 122.91 91.79 54.47 10.48
Profit/Inv Ratio 2.10 1.38 1.05 0.87 0.71 0.51 0.24

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio (Deflated) 1.52 0.95 0.70 0.55 0.43 0.27 0.06
NPV/Unit Oil Equiv. 6.04 5.45 4.89 4.47 4.00 3.25 1.87
NPV/Unit Oil Equiv. (Deflated) 5.62 4.67 3.96 3.45 2.90 2.04 0.51

Payback Year 1999 100


Nominal Rate Of Return % 26.22
Real Rate Of Return % 21.59

Post Corporation Tax

Net Present Value 370.72 215.99 151.05 116.45 87.47 52.49 10.93
Net Present Value (Deflated) 268.01 144.34 93.34 66.32 43.74 16.55 -15.66
Profit/Inv Ratio 1.41 0.90 0.67 0.53 0.41 0.26 0.06 50
Profit/Inv Ratio (Deflated) 1.00 0.59 0.41 0.30 0.20 0.08 -0.08
NPV/Unit Oil Equiv. 4.04 3.56 3.10 2.73 2.34 1.68 0.46
NPV/Unit Oil Equiv. (Deflated) 3.71 2.92 2.31 1.86 1.38 0.62 -0.76

Nominal Rate Of Return % 21.76


Real Rate Of Return % 17.30

Earnings Data
0
Gross Revenue 1,350.17 860.54 678.30 585.44 509.41 419.13 312.29
1995 2000 2005 2010 2015
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year
Corporation Tax 182.59 114.63 87.76 73.88 62.48 49.01 33.45
Capital Expenditure 263.78 239.36 226.52 218.62 211.18 200.84 185.46
Operating Costs 533.08 290.56 212.97 176.49 148.28 116.79 82.46

Gross Revenue (Deflated) 1,030.66 683.08 549.08 479.44 421.61 351.80 267.27
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 138.20 87.06 66.98 56.59 48.05 37.93 26.14
Capital Expenditure (Deflated) 267.08 242.69 229.86 221.95 214.51 204.14 188.72
Operating Costs (Deflated) 357.37 208.99 158.90 134.59 115.31 93.19 68.06

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
ECONOMIC INDICATORS FROM 1/1/1996 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
1994 0.0 0.0 0.0 30.0 0.0 0.0 0.0 -30.0 -35.5 0.0 0.0 0.0
Pre Corporation Tax 1995 0.0 0.0 0.0 115.0 0.0 0.0 0.0 -115.0 -123.1 0.0 0.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Net Present Value 698.31 514.62 431.73 385.52 345.36 294.56 229.31 0.0 0.0 0.0 145.0 0.0 0.0 0.0 -145.0 -158.6 0.0 0.0 0.0
Net Present Value (Deflated) 556.29 410.53 345.60 309.44 277.99 238.07 186.43
NPV/Unit Oil Equiv. 7.62 7.69 7.59 7.48 7.35 7.13 6.71 1996 25.7 0.0 4.1 85.0 0.0 0.0 0.0 -63.4 -61.0 0.0 37.5 0.0
1997 107.0 0.0 25.4 20.8 0.0 0.0 0.0 60.8 52.1 0.0 150.0 0.0
Post Corporation Tax 1998 111.3 0.0 26.4 13.0 0.0 0.0 0.0 71.9 54.8 0.0 150.0 0.0
1999 115.7 0.0 27.5 0.0 0.0 8.3 8.3 79.9 54.2 0.0 150.0 0.0
Net Present Value 515.72 388.25 329.36 296.13 266.99 229.74 181.15 2000 120.3 0.0 28.6 0.0 0.0 20.8 20.8 70.9 42.8 0.0 150.0 0.0
Net Present Value (Deflated) 418.10 314.54 267.48 240.97 217.72 187.92 148.79 2001 109.0 0.0 27.2 0.0 0.0 24.0 24.0 57.8 31.1 0.0 130.7 0.0
NPV/Unit Oil Equiv. 5.63 5.80 5.79 5.74 5.68 5.56 5.30 2002 98.8 0.0 26.0 0.0 0.0 22.3 22.3 50.5 24.1 0.0 113.9 0.0
2003 89.6 0.0 24.9 0.0 0.0 20.5 20.5 44.1 18.8 0.0 99.3 0.0
Earnings Data 2004 81.2 0.0 24.0 0.0 0.0 18.7 18.7 38.5 14.6 0.0 86.6 0.0
2005 73.5 0.0 23.3 0.0 0.0 16.9 16.9 33.4 11.3 0.0 75.4 0.0
Gross Revenue 1,350.17 948.74 791.17 708.38 639.01 554.30 449.69 2006 66.6 0.0 22.6 0.0 0.0 15.1 15.1 29.0 8.7 0.0 65.7 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2007 60.4 0.0 22.1 0.0 0.0 13.4 13.4 24.9 6.7 0.0 57.3 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2008 54.7 0.0 21.7 0.0 0.0 11.8 11.8 21.2 5.0 0.0 49.9 0.0
Corporation Tax 182.59 126.37 102.37 89.39 78.37 64.82 48.16 2009 49.6 0.0 21.4 0.0 0.0 10.3 10.3 17.9 3.8 0.0 43.5 0.0
Capital Expenditure 118.78 113.78 111.03 109.30 107.65 105.28 101.65 2010 45.0 0.0 21.2 0.0 0.0 8.8 8.8 14.9 2.8 0.0 37.9 0.0
Operating Costs 533.08 320.34 248.41 213.56 186.00 154.45 118.74 2011 40.8 0.0 21.0 0.0 0.0 7.5 7.5 12.4 2.1 0.0 33.1 0.0
2012 36.9 0.0 21.1 0.0 0.0 6.3 6.3 9.6 1.4 0.0 28.8 0.0
Gross Revenue (Deflated) 1,030.66 753.10 640.45 580.13 528.87 465.25 384.86 2013 33.5 0.0 20.2 0.0 0.0 5.0 5.0 8.3 1.1 0.0 25.1 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2014 30.4 0.0 19.2 0.0 0.0 4.2 4.2 7.0 0.8 0.0 21.9 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 138.20 95.98 78.12 68.47 60.27 50.16 37.65 2015 0.0 0.0 105.3 0.0 0.0 -31.5 -31.5 -73.8 -7.8 0.0 0.0 0.0
Capital Expenditure (Deflated) 117.00 112.16 109.51 107.84 106.23 103.94 100.42
Operating Costs (Deflated) 357.37 230.41 185.34 162.85 144.65 123.24 98.01 Total 1,350.2 0.0 533.1 118.8 0.0 182.6 182.6 515.7 267.5 0.0 549.9 0.0

These cash flows include Schooner only


1,11,13,16 4,4A 24 SUMMARY
17
22
TARTAN 2,2A 15/16 WESTRAY
7 Texaco 15/17 Elf-Ent.
The Scott field was initially thought to be two separate accumulations
15/21a Amerada Hess 15/22 Amoco termed Brunel in the 15/22 block by Operator Amoco, and Waverly in
49
block 15/21 by Operator Amerada Hess. Brunel was discovered in 1984
7
47 by Well 15/22-4 and Waverly by Well 15/21a-15 in 1987, both
PERTH discovering oil in Upper Jurassic Piper Formation sandstones.
6
Extensive appraisal drilling followed by both operators, leaving little
39
SCOTT doubt that the two accumulations were in fact one field. Annex B
15/21b 8
Amerada Hess 36 3 7 approval was finally given in 1990 with Amerada Hess assigned as
35 Operator. Production started in September 1993.
2 20
15 The field has been developed using two bridge linked steel
4,5
38 platforms, one for production and drilling and the second for
34 accommodation, utilities and power generation. The platforms were
GAMMA 43
6 46 9 installed in Autumn 1992 and Spring 1993 onto pre-installed piles to
44
45 SOUTH SCOTT combat the soft seabed conditions in the area. Platform drilling
51,52 MARMION 1 commenced in early 1993 and current plans anticipated that the Scott
41 50 reservoir (including Scott South) will require a total of 33 development
1 48
13 11 10
5
wells with 18 producers and 15 water injectors. This includes a
HAMISH TELFORD significant subsea component both on the main field and South Scott.
37 21
10 2
12 South Scott discovered by Wells 15/22-9 and 15/21a-43 in 1990, lies
4 11 54
40 within the Scott PRT fence and has been developed as a subsea
9 8 12A 42 tieback to the main Scott facilities. Other discoveries which could be tied
10 ROB ROY back to Scott include McAdam (15/21a-38), Marmion (15/21a-44) and
13
3,42 14 Telford (15/22-11). Plans for the latter two fields involves subsea
IVANHOE
tiebacks to the main Scott field.
14/26b BP 15/26a Deminex 15/27 Phillips The Scott field was initially unitised 50/50 between blocks 15/21a
6
0 4 km and 15/22 in terms of both reserves and production, but in 1994, the
redetermination resulting in an equity split of 47.64:52.36 between
Blocks 15/21a and 15/22 respectively was implemented.
Current interests in the field in per cent are:-

15/21a 15/22 Field


RESERVOIR CHARACTERISTICS
Amerada Hess* 42.08 28.46 34.96
Fluid Properties
Amoco - 25.77 13.49
Oil Gravity (degrees API) 35 - 39 Deminex 43.33 - 20.64
Gas Oil Ratio (scf/stb) 560 - 1400 Enterprise - 25.77 13.49
Bubble Point Pressure, Pb (psig) 2150 - 3900 Kerr McGee 10.83 - 5.16
Formation Volume Factor at Pi (rb/stb) - Mobil - 20.00 10.47
Oil Compressibility (vol/vol/psi) - Pict (Premier) 3.75 - 1.79
Reservoir Pressure, Pi (psig) 8500 - 8570
At Datum Depth of (ft TVDSS) 12500 operator *
Reservoir Temperature (F) 256

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Piper Formation
Geological Age Upper Jurassic
Porosity Range (per cent.) 0 - 16
Permeability Range (md) 0 - 400
Connate Water Saturation (per cent.) -
Oil Water contact (ft TVDSS) Variable
FIELD DESCRIPTION
Lowest oil seen (ft TVDSS) >12500
The Scott field comprises a series of moderately dipping tilted fault
Depth to top Structure (ft TVDSS) 10500
blocks, whose variably eroded crests occur at depths of around 10000
- 11000 feet. The reservoir is within a series of Upper Jurassic, marine
Reserves Oil Gas NGL
shoreface sandstones assigned to the Piper Formation of the Humber
Group.
Total Reserves (MMstb,Bcf,MMbbl) 525 276 46
The Piper Formation can be subdivided into four units, the upper
Est. Production to 31.12.95 (MMstb,Bcf,MMbbl) 130 69 11
three of which (Units 1 to 3) are of reservoir quality. Units 1 and 2 are
Remaining Reserves (MMstb,Bcf,MMbbl) 395 207 35
shoreface progradation sequences which form sheetlike bodies which
coarsen upwards from marine mudstones into medium grained
Production
sandstones of the upper shoreface and fine back into backbeach and
lagoonal deposits, before being replaced by marine mudstones of the
Water Depth (feet) 466
succeeding unit. The upper unit (Unit 3) is initially developed as a
Production Start Date September 1993
shoreface progradation sequence, similar to Units 1 and 2, but passes
Peak Oil Production (Oil & NGL) (stb/day) 185,000
upwards into offshore bar and shoal deposits which rework the existing
Platforms 2
sands into clean laterally continuous units, before passing upwards into
Number of Well slots 28
marine shales of the Kimmeridge Clay Formation. Porosities and
Producers 18 (inc. 7 subseas)
permeabilities are poor to moderate in the argillaceous units, becoming
Water injectors 15
good in the upper shoreface and offshore bar/shoal sandstones. The
basal mudstones of each unit are all thought to be effective permeability
Oil & NGL Export 24" pipeline to Forties Riser
barriers.
and thence to Cruden Bay and Grangemouth
The reservoir contains undersaturated oil of 35 to 39 API with gas
Gas Export 10" spur pipeline into SAGE
oil ratios of between 560 and 1400 scf/stb. The field is highly faulted,
(Scottish Area Gas Evacuation System) to St Fergus
with at least five separate blocks in the 15/21 block and two in 15/22
block. Pressure data suggest that the field is overpressured by
approximately 2900 psi, and the existence of separate pressure and
compositional regimes cannot be ruled out. Water injection has been
utilised to aid recovery.
LOCAL SETTING
Oil production commenced on the main Scott field in September
1993, ahead of schedule due to faster than anticipated installation,
The Scott oil field is located in the Witch Ground Graben just to the north of the Halibut rising quickly to 180000 bbl/day, with peak gas production of 80
Horst and the Renee Ridge, approximately 180 km northeast of Aberdeen in the UK sector MMscf/day.
of the North Sea. The field straddles blocks 15/21a and 15/22 and initial unitisation has split The reserves of the South Scott extension are to be exploited by two
the field equally between the two blocks. Scott reserves are contained within Upper Jurassic subsea production wells together with water injection tied back to the
Piper Formation sandstones. The majority of the surrounding fields also produce from this main Scott facilities. The first of these wells was brought onstream in
formation, including Tartan, 10 km to the northwest, and Ivanhoe, Rob Roy and Hamish 10 15/21b during October 1995, whilst the second is expected in 1996.
km to the southwest. Further to the west the Claymore Formation, which is generally thicker, Other discoveries have been made in the area during the early/mid
but of poorer reservoir quality than Piper, is important with the Claymore and Scapa fields 35 1990s, such as Telford and Marmion (previously Sigma). These are
km to the northwest. The Perth discovery, 5 km to the northwest, is a Claymore reservoir and expected to be developed as subsea tie backs to Scott with start up
as such is the first Claymore discovery in the 15/21 block. looked for by the end of 1996.
STRUCTURE AND STRATIGRAPHY

During the Early Oxfordian, fault controlled subsidence in the Central Graben interbedded sands and silts of the Visean Forth Formation. These are succeeded by

UNITED KINGDOM
propagated northwestwards into the Outer Moray Firth area resulting in the Rotliegendes sands and are overlain by the Zechstein Halibut Bank Formation.
development of a series of northwest-southeast trending faults. Devonian northeast- Triassic sediments are represented by a thin sequence of red claystones of the
southwest faults were reactivated at this time, and interaction between the two Smith Bank Formation and are generally overlain by the volcanic and volcanogenic

Scott
trends led to the development of the Witch Ground Graben as an area of subsiding deposits of the Rattray Formation, which are widespread in this area.
and tilting fault blocks. The reservoir occurs in the Jurassic Piper sands of Upper Oxfordian to
Block tilting took place due to the listric, shallow nature of the faults, commonly Kimmeridgian age, which are thicker in the west of the field than the east. The Piper
resulting in exposure and erosion of the sequences capping the fault blocks. Formation consists of a series of sand bodies (which general coarsen upwards)
Subsidence along these faults continued to control sedimentation patterns into the interstratified with mudstones of varying thickness. Sandstones are generally thick
Early Cretaceous, with small scale block faulting continuing to be dominant in the (greater than 250 feet) and laterally extensive and are easily correlated across the
15/22 area until the latest Volgian. During the Cretaceous the whole area continued field.
to subside as a single entity between major northwest - southeast faults of the Witch The reservoir is sealed by Kimmeridge Clay mudstones, Lower Cretaceous
Ground Graben trend. mudstones of the Cromer Knoll Group and Upper Cretaceous limestones of the
The oldest sequence of rocks underlying the Scott field are the Carboniferous Chalk Group.

INTERPRETATIVE STRUCTURAL CROSS SECTION


15/22-4 15/22-7 15/22-8 15/22-6z
Feet S N

10000
Chalk Group

LOWER CRETACEOUS
11000

n
ormatio Kimmeridge Clay
12000 Piper F Formation
mat ion
Rattray For
ion
Format
13000 Rattray

0 0.5 1 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Piper Formation sediments in the Scott field comprise a series of stacked The environment of deposition was one of moderate to high energy and was
shoreface progradation sequences and shallow marine sandstones and mudstones. wave dominated. Tidal influence is thought to have been negligible. The shoreface
The reservoir can be subdivided into four distinct units. The lowest is only seen sequences represent active beachface or beach ridge at the margins of a sandy
in the western part of the field (15/21 block) and is laterally equivalent to the Lower strandplain comprising laterally stacked beach ridges resulting from progradation,
Piper shale in the rest of the field. Locally this unit is referred to as the Sgiath upon which localised lagoons and peatswamps developed. No evidence of
Formation and was laid down in a coastal plain environment. The other three units reworking of the shoreface by fluvial processes can be seen and sediment was
are widespread throughout the field area and represent three regressive sequences probably transported by longshore currents. Local thin basal sandstones can be
separated by thin transgressive sequences. seen which mark the initial transgression across the exposed volcanogenic Rattray
The Sgiath Formation can be seen to be controlled by syn-sedimentary faulting surface. During this period, sea level was gradually rising and minor changes in sea
movement, thickening to the north of the Halibut Horst in block 15/21 and only being level would cause the shoreface to advance or retreat rapidly across the area. These
present in block 15/22 as a thin unit in Well 15/22-3. Mudstones deposited in a changes could be eustatic, but are more likely to have been associated with
shallow marine, freshwater influenced environment are interbedded with coals subsidence due to syn-sedimentary fault movement.
deposited in coastal fringe swamps. Sandstones are generally thin and argillaceous Unit 3 is the product of a more complete transgression and comprises an upwards
representing channel fill and channel margin sediments deposited from streams coarsening sequence at its base similar to that seen in Units 1 and 2 (shoreface
crossing the coastal plain or low energy shoreface sequences. progradation), overlain by uniform or very slightly coarsening upward profiles which
The Piper Formation can be divided into three main units, the oldest 1 to the are intensely bioturbated and are interpreted as deposits of migrating sandbars and
youngest 3. Units 1 and 2 both coarsen upwards from marine mudstones into shoals. More argillaceous material is deposited on shoal/bar slopes and in
medium grained sandstones, and represent deposits of prograding shoreface interbar/shoal areas. This upper unit represents the reworking of pre-existing
systems. Basal marine mudstones are overlain by sharp based sequences of fine to shoreface sandbodies as water depth increased, resulting in laterally extensive units
medium grained, commonly bioturbated nearshore, shoreface and bar sandstones which with continuing transgression are capped by marine mudstones of either the
with common internal erosion surfaces and are succeeded by lagoonal and Piper Formation or the Kimmeridge Clay Formation.
eventually laterally extensive marine mudstones of the overlying unit.

REPRESENTATIVE WELL SECTION - 15/22-5

DEPTH (feet)
CORE CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) (g/cc)
DESCRIPTION 0 150 ROCK 1.95 2.95
AGE
CLAY

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


B C P
M
C
F

40 0 0.01 1000 5 25 45 -15


16/26-6
Unit 3

Offshore marine mudstones 1


Gl

Py Shoreface progradation sequence passing


from offshore marine mudstones into
Py
shoreface sandstones.
Py

Py Py Py Geometry
14700

Sheetlike sandbody parallel to shoreline


and/or margins of localised syn sedimentary
Si Py
highs. Comprising coalesced sheetlike,
lenticular and elongate sandbodies.
Si
and k
Si Poor to fair porosity, and poor to moderate
Unit 2

permeability both reduced by quartz and


14800

pyrite cements and authigenic clays.


Py
UPPER JURASSIC
HUMBER GROUP
PIPER FORMATION

S
Py

Py S Offshore marine mudstones - plane


14900

S laminated with limited benthonic fauna.


M Increasing freshwater influence with depth.
Gl
S Gl

C Backbeach lagoon fill with thin peat and


storm washover sand horizons at base.
15000

Si Shoreface progradation sequence with


storm wave influence and rip channel/shore
Unit 1

attached bar migration. Locally


homogenised by bioturbation.

Py Offshore marine mudstones with


Py
S
15100

Py transgressive basal sandstone.


S
S
V V V V V VOLCANIC TUFF - reworked at top of
V V V V sequence by marine transgression 1 2 3

1. MIDDLE JURASSIC 2. FLADEN GROUP 3. RATTRAY FORMATION


RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
NE 15/22-4 15/22-5 SW 10000

Kim Clay Fm
Kim Clay Fm
15/22-3

Scott 1000

Humber Group
Heather Fm

Unit 3
+

+
1 100 + +

+
+

PERMEABILITY (md.)
+

Rattray Formation
Fladen Group
+
+
10 ++

Unit 2
+ + + +
+
+ ++

Piper Formation
Humber Group
+ ++ +
+
+
+ + +
1 - Sgiath Formation 1 +
+ +
+
+
+
+
+
0.1
++ + + +
0
++ +
+
+

Unit 1
+

0.01
100 feet 0 10 20 30
POROSITY (per cent.)

Fladen Grp
Rattray Fm
In the available core data, porosity varies from 1.2 to 16 per cent.,
averaging 10 per cent. and permeability ranges from 0.05 to 400 md,
averaging 22 md. These values are lower than normal for the Piper
Formation in this area due to the deep depth of burial of the Scott
field.
The primary controls on porosity and permeability are grain size
The three-fold subdivision of the Piper Formation into major regressive sequences forms sorting and detrital clay content, which are directly related to facies.
the basis of the reservoir zonation in the Scott field. In the Piper sandstone units the clean upper shoreface sandstones
Unit 1 sandstones range in thickness from 50 to 90 feet, although they appear to thicken have the best porosity/permeability characteristics, and the
to the west and may be thicker in Block 15/21. They are overlain by a thick (40-120 feet) argillaceous lower shoreface the poorest.
field-wide mudstone which is interpreted as a sequence of marine mudstones overlying the The effects of bioturbation result in the dissemination of detrital
lagoonal deposits at the top of Unit 1. This mudstone unit acts as a permeability barrier and clays throughout sandstone bodies reducing both porosity and
can be seen to separate oil in Unit 1 from water in Unit 2 in Well 15/22-4. permeability. The presence of small to moderate amounts of kaolinite
The overlying Unit 2 sandstones range from 125 to 210 feet in thickness and again are and small quantities of illite (occurring by replacement of detrital
expected to become thicker to the west. The basal Unit 3 mudstone (20-30 feet thick) is also feldspar) further inhibits permeability.
expected to be a vertical permeability barrier similar to the basal Unit 2 mudstone. Unit 3 Secondary control on porosity and permeability is dominated by
sandstones are 30 to 40 feet thick and where seen in released wells are overlain by the quartz cementation, which is very common, particularly in the
Kimmeridge Clay Formation. cleaner shoreface sandstones. Calcite also locally forms intensely
Evidence of truncation at the top of the Piper Formation is limited, but cannot be ruled cemented horizons, occluding all porosity and negating permeability.
out. Non-deposition across palaeohighs, however, can be seen in Well 15/22-3 and is In addition, pyrite occurs in moderate quantities and markedly
possible elsewhere in the field. reduces both porosity and permeability. Its early growth, however,
Communication within each unit is expected to be good, but given the block faulted can result in the formation of a rigid matrix framework which will
nature of the field compartmentalisation is likely. Block 15/21 can be subdivided into at least preclude further compaction and grain dissolution.
five blocks and 15/22 at least two.
The seal to the reservoir is provided by shales of the overlying Kimmeridge Clay RESERVOIR PRESSURE
Formation, but where these are thin or absent due to non-deposition or erosion, the Lower
Cretaceous Cromer Knoll mudstones also provide an effective seal. The Scott field is cut by a number of faults trending both
northwest-southeast and northeast-southwest, dividing the field into
at least seven blocks. Compartmentalisation of the reservoir is
FLUID PROPERTIES therefore likely and the establishment of separate pressure regimes
within the field cannot be ruled out. RFT data from Well 15/22-4
The undersaturated oil from the Scott field has an API gravity of 35-39 degrees and a suggest that the separate units of the Piper Formation are not in
gas oil ratio of between 560 and 1400 scf/stb. The fluid is slightly corrosive with an H2S communication, with oil identified in the lower Unit 1 sand and water
content of approximately 14 ppm and a CO2 content of 6 per cent. in the middle Unit 2 sand.
Initial reservoir pressure in this part of the field is approximately
8500 psig at a datum depth of 12500 feet and reservoir temperature
is 256 degrees Fahrenheit. Data from both reservoirs and from Well
1200
2.5 15/22-5 indicate that this portion of the field is overpressured by
approximately 2900 psi with respect to a regional pressure gradient
GOR (ave.)
to surface of 0.45 psi/ft.
2.0

12150
800
GOR (scf/stb)

1.5 WELL 15/22-4


B0 (rb/stb)

0 (cp)

1.0
12250
400
0.45 psi/ft Unit 2 sand
0
DEPTH (feet TVDSS)

0.5

@ 256F from correlation


0 0.0 12350

0 1000 2000 3000 } Sealing shale horizon

PRESSURE (psig)

0.33 psi/ft Unit 1 sand


12450

CONTROLS ON RECOVERY

The main controlling factor on recovery from the Scott field is the sheet like geometry
12550
and general good quality of the sand bodies. Good recovery factors of approximately 40 to
50 per cent. are predicted but compartmentalisation of the reservoir may require a large 8400 8450 8500 8550 8600
number of wells effectively to drain all of the fault blocks. INITIAL RESERVOIR PRESSURE (psig)
FACILITIES SPECIFICATIONS

UNITED KINGDOM
SCHEMATIC FIELD LAYOUT Water Depth 466-476
East water
injection manifold (feet)
Platform Type Two bridge linked steel platforms

Scott
SCOTT Function drilling/production Accom/utilities/power gen
8 legs 4 legs

Pipeline end Jacket Weight


manifold 8" and 10"
water injection (tonnes) 16131 8867
Total Weight
(tonnes) 51000 32060
8" and 10"
water injection 8" production East production Accommodation 220
cluster Well Slots 28
6" production Wells: production 11
Subsea Completions: production 7
24" oil export Water injection 15 (3 manifolds)
line to Forties
10" gas
export line
West water injection
manifold and PROCESSING AND EXPORT SPECIFICATIONS
production cluster Pig receiver
South water
injection manifold Maximum Oil throughput 194000
(bbl/day)
Maximum Gas throughput 124
(MMscf/day)
30" Gas
30" S.A.G.E
Miller to St Fergus
Injection Capacity 310000
to St Fergus
(bbl/day)
Oil Export 24" x 77 km pipeline to Forties Riser
and thence to Cruden Bay
and Grangemouth
10 x 13 km spur pipeline into SAGE
(Scottish Area Gas Evacuation System)
to St Fergus

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 200 400


Liquid
Net Present Value 2,685.25 1,490.00 1,026.21 789.10 596.51 372.63 122.40
Net Present Value (Deflated) 2,285.75 1,205.98 789.85 577.88 406.23 207.58 -12.36 Gas

@@@@


Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 1.73 1.15 0.88 0.72 0.58 0.40 0.15
Profit/Inv Ratio (Deflated) 1.31 0.83 0.60 0.46 0.35 0.19 -0.01
NPV/Unit Oil Equiv. 4.35 3.84 3.42 3.09 2.74 2.14 1.00 150 300
NPV/Unit Oil Equiv. (Deflated) 4.04 3.33 2.79 2.38 1.95 1.24 -0.10

Payback Year 1996


Nominal Rate Of Return % 23.84
Real Rate Of Return % 19.64

Post Corporation Tax 100 200

@@@@


Net Present Value 1,737.35 936.06 616.98 452.22 317.66 160.60 -15.07
Net Present Value (Deflated) 1,461.59 718.03 426.88 277.80 156.84 16.89 -137.01
Profit/Inv Ratio 1.12 0.72 0.53 0.41 0.31 0.17 -0.02
Profit/Inv Ratio (Deflated) 0.84 0.49 0.32 0.22 0.13 0.02 -0.15
NPV/Unit Oil Equiv. 2.81 2.41 2.06 1.77 1.46 0.92 -0.12 50 100
NPV/Unit Oil Equiv. (Deflated) 2.59 1.98 1.51 1.15 0.75 0.10 -1.15

Nominal Rate Of Return % 19.46


Real Rate Of Return % 15.44

Earnings Data
0 0
Gross Revenue 7,279.08 4,454.41 3,402.45 2,869.29 2,435.89 1,927.31 1,340.08 1990 1995 2000 2005 2010
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 662.66 382.65 279.55 228.14 187.05 140.02 88.22 Year
Corporation Tax 947.90 553.95 409.23 336.88 278.85 212.03 137.47
Capital Expenditure 1,548.72 1,293.12 1,168.81 1,095.57 1,028.97 939.85 814.98
Operating Costs 2,382.46 1,288.64 927.88 756.48 623.36 474.81 314.48

Gross Revenue (Deflated) 6,528.40 4,091.82 3,163.63 2,687.38 2,296.78 1,833.76 1,291.51
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 571.03 331.59 243.05 198.78 163.32 122.63 77.64
Corporation Tax (Deflated) 824.15 487.95 362.97 300.09 249.39 190.68 124.65
Capital Expenditure (Deflated) 1,739.77 1,460.72 1,324.30 1,243.69 1,170.21 1,071.64 933.03
Operating Costs (Deflated) 1,931.85 1,093.52 806.44 667.04 557.01 431.90 293.20

CASH FLOW REPORT


Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
ECONOMIC INDICATORS FROM 1/1/1996 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
1989 0.0 0.0 0.0 25.0 0.0 0.0 0.0 -25.0 -57.3 0.0 0.0 0.0
Pre Corporation Tax 1990 0.0 0.0 0.0 90.0 0.0 0.0 0.0 -90.0 -177.1 0.0 0.0 0.0
1991 0.0 0.0 0.0 475.0 0.0 0.0 0.0 -475.0 -790.1 0.0 0.0 0.0
Net Present Value 2,936.42 2,558.73 2,367.31 2,252.85 2,147.91 2,006.50 1,806.95 1992 0.0 0.0 0.0 450.0 0.0 0.0 0.0 -450.0 -655.3 0.0 0.0 0.0
Net Present Value (Deflated) 2,678.76 2,341.70 2,173.08 2,072.62 1,980.64 1,856.71 1,681.57 1993 132.6 0.0 30.1 240.0 0.0 0.0 0.0 -137.5 -178.6 32.0 10.0 0.0
NPV/Unit Oil Equiv. 6.32 6.66 6.81 6.89 6.96 7.05 7.16 1994 654.8 0.0 141.4 95.0 0.0 0.0 0.0 418.4 495.4 170.0 84.0 0.0
1995 730.6 0.0 147.7 75.0 0.0 0.0 0.0 507.9 543.6 185.0 95.0 0.0
Post Corporation Tax Total To Start Of Discounting ( 1/JAN/1996)
1,518.0 0.0 319.2 1,450.0 0.0 0.0 0.0 -251.2 -819.4 141.3 69.0 0.0
Net Present Value 1,988.52 1,779.27 1,665.96 1,596.36 1,531.45 1,442.50 1,314.35
Net Present Value (Deflated) 1,854.60 1,655.10 1,551.00 1,487.84 1,429.31 1,349.49 1,234.92 1996 758.7 0.0 147.7 50.0 0.0 77.3 77.3 483.7 465.5 185.0 95.3 0.0
NPV/Unit Oil Equiv. 4.28 4.63 4.79 4.88 4.96 5.07 5.21 1997 814.2 0.0 153.6 15.6 50.5 157.5 208.0 437.0 374.3 185.0 95.3 0.0
1998 796.2 0.0 155.4 16.2 169.6 147.9 317.5 307.1 234.2 174.0 89.3 0.0
Earnings Data 1999 661.5 0.0 147.1 16.9 55.2 138.8 194.1 303.5 205.9 139.1 70.4 0.0
2000 549.6 0.0 140.8 0.0 134.1 136.1 270.2 138.7 83.7 111.2 55.3 0.0
Gross Revenue 5,761.05 4,664.81 4,176.24 3,901.43 3,659.59 3,347.57 2,931.45 2001 456.5 0.0 136.3 0.0 119.1 66.9 186.0 134.1 72.1 88.9 43.2 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 379.1 0.0 133.5 0.0 78.6 57.0 135.5 110.1 52.7 71.1 33.5 0.0
Petroleum Revenue Tax 662.66 538.43 479.10 444.58 413.50 372.45 316.10 2003 314.5 0.0 131.8 0.0 44.0 48.4 92.4 90.4 38.5 56.8 25.8 0.0
Corporation Tax 947.90 779.46 701.34 656.49 616.46 564.00 492.60 2004 260.9 0.0 131.3 0.0 14.4 41.0 55.4 74.2 28.1 45.4 19.6 0.0
Capital Expenditure 98.72 91.90 88.30 86.08 83.99 81.07 76.72 2005 216.9 0.0 126.1 0.0 1.7 34.6 36.3 54.6 18.4 36.4 14.7 0.0
Operating Costs 2,063.26 1,475.76 1,241.53 1,117.92 1,014.19 887.55 731.68 2006 179.8 0.0 121.3 0.0 0.0 26.1 26.1 32.3 9.7 29.1 10.7 0.0
2007 148.5 0.0 117.4 0.0 0.0 16.4 16.4 14.7 3.9 23.2 7.6 0.0
Gross Revenue (Deflated) 4,943.11 4,082.84 3,692.42 3,470.53 3,273.74 3,017.53 2,671.26 2008 123.3 0.0 114.0 0.0 0.0 8.1 8.1 1.2 0.3 18.6 5.1 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 101.3 0.0 99.2 0.0 0.0 1.4 1.4 0.7 0.2 14.8 3.0 0.0
Petroleum Revenue Tax (Deflated) 571.03 466.58 416.54 387.36 361.04 326.20 278.20 Remain
Corporation Tax (Deflated) 824.15 686.60 622.07 584.78 551.33 507.22 446.65 2010 0.0 0.0 207.8 0.0 -4.5 -9.5 -14.0 -193.8 -36.5 0.0 0.0 0.0
Capital Expenditure (Deflated) 95.00 88.66 85.31 83.24 81.29 78.56 74.49
Operating Costs (Deflated) 1,598.32 1,185.90 1,017.50 927.31 850.77 756.05 637.01 Total 5,761.1 0.0 2,063.3 98.7 662.7 947.9 1,610.6 1,988.5 1,551.0 430.2 207.6 0.0

These cash flows include Scott and South Scott only


SUMMARY
49/24 Shell 49/25c Phillips 49/25b Total
3 0 4 km
The North, South and East Sean fields are located in Block 49/25a,
103 km northeast of Great Yarmouth in the UK sector of the Southern
1 North Sea. The two Rotliegendes Group sandstone reservoirs of North
N
and South Sean were discovered in 1969 when Wells 49/25-1 and
2 49/25-2 encountered gas in two anticlinal structures which are
separated by a northeast to southwest fault. The Sean East satellite
49/25a Shell contains dry gas in a similar high quality sandstone reservoir and was
SOUTHEAST 6 discovered as a separate structure by Well 49/25a-5 in 1983.
INDE.
The field has been developed as a peak shaver (supplying gas
NORTH during high winter demand periods only). The contract with British Gas
4 5
SEAN requires Sean North and South to deliver 600 MMscf/day for 21 to 100
RD days every year for 25 years. Potential deliverability is therefore high but
1 EAST
SEAN actual annualised rates are considerably lower. First gas was produced
in October 1986 from 3 platforms. As the reservoir pressure drops a
SOUTH 2
compression platform may be installed towards 1998.
WEST The current interests in block 49/25a in per cent. are:-
8 PP 7 3
SEAN
PD SOUTH RD/Shell UK Limited * 25.00
12,12a SEAN
GAWAIN 50/21 Premier BP 25.00
1 49/30a Amoco 50/26a Arco
Esso Expl. and Prod. UK Ltd. 25.00
Union Texas Petroleum Ltd. 25.00
7 3

5 2 operator *
4
3 ORWELL
49/29a Mobil
49/29c Arco 49/30c Rel.

LOCAL SETTING

The Sean fields are located in the central part of the Southern North
RESERVOIR CHARACTERISTICS Sea Basin, northeast of the Sole Pit axis of inversion. Gas is found in
Rotliegendes Group sandstones situated in the main Rotliegendes
Fluid Properties aeolian dune field tract and therefore only minor amounts of wadi and
sabkha sediments are encountered. Gas in neighbouring accumulations
Gas Gravity S.G. (air =1) 0.61 is also found predominantly in Rotliegendes sandstones. The K13 field
Condensate Gas Ratio (bbl/MMscf) 1.8 in the Dutch sector to the east also produces gas from the Triassic
Gas Expansion Factor (vol/vol) 225 Buntsandstein Formation.
Reservoir Pressure Pi (psig) 3950 Porosities and permeabilities of the Rotliegendes are generally good
at Datum Depth of (ft TVDSS) 8450 in this area with the Sean field having probably the best porosity-
Reservoir Temperature (F) 200 permeability characteristics. Reservoir quality of the Rotliegendes
sandstone of the K13 field to the east is poorer because of the higher
Rock Properties percentage of fluvial sandstones.

Rock Type Sandstone


Stratigraphic Unit Rotliegendes Group
Geological Age Permian
Porosity Range (per cent.) 14-25
Permeability Range (md) 50-3000
Connate Water Saturation (per cent.) 20-30
Gas Water Contact (ft TVDSS) 8543 (South Sean)
8553 (North Sean)
Depth to Top of Structure (ft TVDSS) 8300 (South Sean)
8275 (North Sean)

Reserves
Sean Sean East FIELD DESCRIPTION
Gas Initially in Place (Bcf) 630
Total Gas Reserves (Bcf) 550 145 The Sean fields are gentle northwest-southeast trending anticlinal
Total NGL Reserves (MMstb) 1.6 structures with fault closure occurring mainly to the northeast and
Est. Gas Production to 31.12.95 (Bcf) 127 19 southwest. The reservoirs are within the Leman Sandstone Formation
Est. NGL Production to 31.12.95 (MMstb) 0.4 of the Rotliegendes Group. Upper Permian Zechstein carbonates and
Remaining Gas Reserves (Bcf) 423 126 evaporites provide seals for the reservoirs. Porosities are moderate to
Remaining NGL Reserves (MMstb) 1.2 good and permeabilities are moderate to very good.
The reservoirs contain a dry gas (SG of 0.61) which had a
Production condensate gas ratio of up to 2 bbl/MMscf measured during testing.
This is typical of the Rotliegendes gas reservoirs of the UK sector.
Water Depth (feet) 100 The fields are normally pressured with gas water contacts at
Production Start Date October 1986 approximately 8550 feet subsea. In Well 49/25-1 of the North Sean field
the Rotliegendes is almost completely gas bearing, and in Well 49/25a-
Peak Gas Production (yrly average) (MMscf/day) 60 in 1995, 45 in 1995
4 it is underlain by approximately 25 feet of water. Gas in Well 49/25-2
Platform(s) 3 steel jackets
of South Sean is underlain by approximately 150 feet of water bearing
Number of Wells 10
sandstone.
Gas and NGL Export Pipeline to Bacton
The high productivity makes the field particularly suitable for use as
shore terminal
a peak shaver, producing at high rates for short periods in the winter
months.The field was brought onstream in 1986, and is only expected
to be used for around 40 days per year. In September 1994,
development approval was given to Sean East and the new field came
on stream in November 1994. It is estimated to contain 145 Bcf of gas
and production comes from two extended reach deviated wells drilled
from the existing Sean wellhead platforms. Gas is piped via the Sean
Line to Bacton.
49/24 49/25a STRATIGRAPHY AND STRUCTURE
GWC 85
53 SEAN The Sean fields lie southeast of, and along structural strike from, the

UNITED KINGDOM
TOP ROTLIEGENDES Indefatigable field. The two fields consist of northwest-southeast striking
DEPTH STRUCTURE gentle anticlines which are faulted and show moderate structural relief, with

8500

0
840
(Contours in feet)
gas columns of between 200 and 250 feet. The gas is found in the Leman

Sean
Sandstone Formation (Rotliegendes Group) at depths of about 8400 feet
TVDSS, which varies in thickness between 200 and 265 feet.

8 300
4
Trapping is by dip and fault closure beneath and against Zechstein
NORTH SEAN evaporite and carbonate seals.

84
00
1

84
850
8400

00
0

84
00 85
8400
85
00 8500

00
GWC
8553
8600

86 C 854

0
GW

850
00

84
3

00
84
00
85 2
00

8500
830
0

GWC 8543

8400
00
8500

84
84
00
SOUTH SEAN

00
84 830
0

8200

0 1 2 km INTERPRETATIVE STRUCTURAL CROSS SECTION

(Modified after A. ten Have, 1986 )


N. SEAN S. SEAN

49/25a-4 49/25-1 49/25-2


Feet NW SE
0
SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT
TERTIARY / QUATERNARY
2000
Deposition of the Rotliegendes sandstones which form the Sean
reservoirs occurred under arid climatic conditions in the Southern
Permian Basin. Approximately 60 per cent. of the Rotliegendes vertical 4000
UPPER CRETACEOUS
sequence in each field consists of fine to medium grained, well sorted,
LOWER TRIASSIC
cross bedded aeolian dune foreset sandstones. The remainder of the 6000
sequence consists mainly of very fine to medium grained, less well LOWER CRETACEOUS

sorted, horizontally laminated dune bottom set and sandy sabkha Zechstein Group
8000
sandstones. Poorly sorted, variably argillaceous wadi and sabkha
sandstones are also recognised near the base of the sequence in both CARBONIFEROUS Rotliegendes Group
fields and in the upper part of the sequence in North Sean. 10000

0 1 2 km

REPRESENTATIVE WELL SECTION - 49/25-2


CORE

DEPTH (feet)
CORE ANALYSIS DATA GAMMA RAY DENSITY
(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C
F

B C P 40 0 0.1 10000 5 25 45 -15


ZECHSTEIN

Anhydrite and dolomite overlying marine


GROUP

Z1

mudstone.
Non-reservoir.

Aeolian dune sandstone.


Stacked sequences of fine to medium
grained, cross-bedded aeolian dune top
KUPF. FM.

sandstones with fine grained, low angle,


bimodally laminated aeolian dune base
sandstones.

Geometry
Laterally extensive, sheet geometry sandbody.
LOOSE SAND
8600

and K
LEMAN SANDSTONE FORMATION

49/25-2 Moderate and moderate to good K preserved


ROTLIEGENDES GROUP

in aeolian dune sandstones. Trends in and K


controlled by primary textural characteristics.

LOOSE SAND
PERMIAN

RUBBLE
8700

RUBBLE

RUBBLE Aeolian interdune sandstones. Sheet geometry.


Moderate and moderate to good K.
CARBONIFEROUS

Alluvial plain mudstones : purple and silty.


8800

Laterally extensive, non-reservoir sediments.


UNDIFF.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

49/25a-4 49/25-2
10000

Zechstein Group

Sean Rotliegendes Group

1000

0 CARBONIFEROUS

100 feet

100

Aeolian dune sands dominate in both fields. Wadi and sabkha sandstones occur near the

PERMEABILITY (md.)
base of the Rotliegendes in both fields, and also in the upper part of the sequence in North
Sean. The Rotliegendes succession in South Sean is generally less argillaceous and thicker
(265 feet) than that of North Sean (200 feet). With the exception of the basal wadi/sabkha 10
sequence, there appears to be no lithostratigraphic zonation that could readily form the
basis for subdivision and correlation of the Rotliegendes sequence between the two fields.
However, since there appear to be no field wide barriers to vertical flow in the Rotliegendes
successions, the importance of subdividing the sequence is reduced. In general the
Rotliegendes reservoir sandstones should show simple sheet geometry, though more 1
variable sheet and channel-form sandstone units may occur in the wadi/sabkha sequences.

0.1

0.01
0 10 20 30

POROSITY (per cent.)

Porosity values are moderate to good, predominantly 14-25 per


cent. Permeability values are moderate to very good, predominantly
FLUID PROPERTIES 50-3000 md.
Trends in porosity and permeability are controlled by variations in
The Sean fields contain a dry gas with measured condensate gas ratios during testing grain size, sorting and detrital clay content, and hence facies
of between 1 and 2 bbl/MMscf. The gas of North Sean has a specific gravity of 0.61 and distribution. The predominance of texturally mature aeolian dune
contains CO2 necessitating a stainless steel pipeline to transport the unprocessed fluids sandstones, showing negligible diagenetic cementation by
from the 'RD' wellhead platform to the 'PP' production platform. authigenic clays gives rise to the common high permeabilities.
Preferential cementation of less well sorted and locally argillaceous
fluvial and aeolian bottomset sandstones locally reduces porosity
and permeability in these facies.
1.05
GAS DEVIATION FACTOR Z

Zi = 0.95
0.95

RESERVOIR PRESSURE

The two Sean fields show no pressure difference within the


@ 200F (from correlation)
0.85 accuracy of the data available and resolution of the gauges. The
0 1000 2000 3000 4000 fields are normally pressured with a pressure gradient to surface of
5000
PRESSURE (psig) 0.46 psi/ft.

8000

8200 0.07 psi/ft


DEPTH (feet TVDSS)

8400

GWC @ 8550 ft TVDSS Approx


8600

8800

CONTROLS ON RECOVERY
9000
The recovery factor is expected to be very good (some 90 per cent.), resulting from: 3900 3950 4000 4050 4100

INITIAL RESERVOIR PRESSURE (psig)


common good and very good permeabilities in predominantly aeolian dune sandstones
a simple sheet-like reservoir sand geometry, with no laterally extensive vertical
permeability barriers
expected limited water influx from the aquifer. However, use as a peak shaver with small
yearly offtake may allow the aquifer time to respond and trap residual gas
compression facilities to achieve low abandonment pressure
FACILITIES SPECIFICATIONS

SOUTH SEAN NORTH SEAN EAST SEAN

UNITED KINGDOM
PP PD RD

Sean
Water Depth 100 100 100
(feet)
Platform Type steel piled steel piled steel piled
jacket jacket jacket
Function processing/ wellhead wellhead
accom.

Jacket Weight 1226 1106 1134


(tonnes approx.)
Total Weight of Structure 8770 4462 4473
(tonnes)

Accommodation 50 4
(emergency)
Well Slots 12 12
Wells 5 5

PROCESSING AND EXPORT SPECIFICATIONS

Peak Gas Throughput 600


(MMscf/day)

Gas Export 30" x 110 km 20" x 4.7 km


pipeline to stainless steel
Bacton terminal pipeline to PP
(A Shell Photograph)

FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE


HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
60
Pre Corporation Tax

Net Present Value 2,039.90 642.83 302.15 166.31 74.08 -13.27 -85.46
Net Present Value (Deflated) 1,342.94 330.15 74.03 -29.53 -100.16 -166.68 -219.19

Average Annual Daily Gas Rate (MMscf/day)


50
Profit/Inv Ratio 4.36 1.73 0.91 0.53 0.25 -0.05 -0.36
Profit/Inv Ratio (Deflated) 1.91 0.57 0.14 -0.06 -0.21 -0.38 -0.55
NPV/Unit Oil Equiv. 21.81 16.32 11.78 8.37 4.70 -1.15 -11.49
NPV/Unit Oil Equiv. (Deflated) 17.05 8.77 2.82 -1.40 -5.76 -12.49 -24.03
40
Payback Year 1995
Nominal Rate Of Return % 14.42
Real Rate Of Return % 9.35
30
Post Corporation Tax

Net Present Value 1,366.73 415.90 177.44 80.95 14.79 -48.47 -101.13
Net Present Value (Deflated) 868.44 161.78 -21.07 -95.73 -146.86 -195.00 -232.18 20
Profit/Inv Ratio 2.92 1.12 0.53 0.26 0.05 -0.18 -0.42
Profit/Inv Ratio (Deflated) 1.24 0.28 -0.04 -0.19 -0.31 -0.44 -0.59
NPV/Unit Oil Equiv. 14.61 10.56 6.92 4.07 0.94 -4.20 -13.59
NPV/Unit Oil Equiv. (Deflated) 11.03 4.30 -0.80 -4.53 -8.45 -14.62 -25.45
10
Nominal Rate Of Return % 12.57
Real Rate Of Return % 7.55

Earnings Data 0
Gross Revenue 3,807.34 1,412.42 853.03 631.17 479.16 330.99 196.82 1985 1990 1995 2000 2005 2010 2015 2020
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 619.46 154.83 69.86 41.68 25.14 12.01 3.69 Year
Corporation Tax 673.17 226.93 124.71 85.36 59.29 35.20 15.67
Capital Expenditure 467.65 371.69 332.95 311.95 293.81 270.69 239.84
Operating Costs 680.32 243.07 148.08 111.23 86.13 61.57 38.76

Gross Revenue (Deflated) 2,887.35 1,212.43 787.15 609.38 482.53 352.72 226.39
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 344.80 86.90 39.41 23.60 14.29 6.86 2.13
Corporation Tax (Deflated) 474.50 168.37 95.10 66.19 46.70 28.32 12.99
Capital Expenditure (Deflated) 701.68 582.90 531.48 502.54 476.86 443.19 396.63 CASH FLOW REPORT
Operating Costs (Deflated) 497.93 212.48 142.22 112.78 91.54 69.34 46.82
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

1983 0.0 0.0 0.0 10.0 0.0 0.0 0.0 -10.0 -47.8 0.0 0.0 0.0
1984 0.0 0.0 0.0 100.0 0.0 0.0 0.0 -100.0 -423.6 0.0 0.0 0.0
1985 0.0 0.0 0.0 150.0 0.0 0.0 0.0 -150.0 -560.0 0.0 0.0 0.0
1986 24.0 0.0 5.0 80.0 0.0 0.0 0.0 -61.0 -198.9 0.0 20.0 0.0
1987 40.7 0.0 10.0 20.0 0.0 0.0 0.0 10.7 31.1 0.2 38.0 0.0
1988 42.1 0.0 12.6 5.0 0.0 0.0 0.0 24.5 64.8 0.2 32.0 0.0
1989 51.8 0.0 13.2 0.0 0.0 0.0 0.0 38.6 88.5 0.2 34.0 0.0
1990 96.3 0.0 13.8 0.0 0.0 0.0 0.0 82.5 162.4 0.2 58.0 0.0
1991 62.1 0.0 14.6 0.0 0.0 0.0 0.0 47.5 79.1 0.2 40.0 0.0
ECONOMIC INDICATORS FROM 1/1/1996 1992 45.1 0.0 14.6 0.0 0.0 0.0 0.0 30.5 44.4 0.0 30.0 0.0
1993 27.6 0.0 14.0 3.0 0.0 0.0 0.0 10.6 13.8 0.0 18.0 0.0
1994 70.7 0.0 13.6 7.0 0.0 0.0 0.0 50.1 59.4 0.0 48.0 2.0
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% 1995 65.3 0.0 13.0 0.0 0.0 0.0 0.0 52.3 56.0 0.0 34.0 15.0
Total To Start Of Discounting ( 1/JAN/1996)
Pre Corporation Tax 525.8 0.0 124.4 375.0 0.0 0.0 0.0 26.4 -630.9 0.4 128.5 6.2

Net Present Value 2,013.45 1,325.74 1,068.90 938.17 831.34 704.85 555.90 1996 117.8 0.0 13.0 0.0 0.0 13.9 13.9 90.8 87.4 0.2 60.0 15.0
Net Present Value (Deflated) 1,460.82 1,006.80 832.25 741.84 666.97 576.88 468.22 1997 122.5 0.0 13.5 15.6 0.0 33.3 33.3 60.1 51.5 0.2 60.0 15.0
NPV/Unit Oil Equiv. 28.07 28.57 28.66 28.65 28.59 28.46 28.14 1998 127.0 0.0 14.1 43.3 0.0 33.7 33.7 36.0 27.4 0.2 60.0 13.3
1999 131.7 0.0 16.9 33.8 0.0 32.0 32.0 49.0 33.3 0.2 60.0 11.7
Post Corporation Tax 2000 136.6 0.0 17.6 0.0 0.7 31.1 31.8 87.2 52.7 0.2 60.0 10.3
2001 141.8 0.0 18.3 0.0 0.8 33.9 34.7 88.8 47.8 0.2 60.0 9.3
Net Present Value 1,340.29 897.83 729.74 643.49 572.62 488.25 388.20 2002 147.0 0.0 19.0 0.0 0.6 36.7 37.3 90.7 43.5 0.2 60.0 8.0
Net Present Value (Deflated) 986.32 689.31 573.62 513.32 463.18 402.62 329.20 2003 152.7 0.0 19.8 0.0 0.5 39.2 39.7 93.2 39.8 0.2 60.0 7.3
NPV/Unit Oil Equiv. 18.68 19.35 19.56 19.65 19.70 19.71 19.65 2004 158.5 0.0 20.6 0.0 0.4 41.6 42.0 96.0 36.5 0.2 60.0 6.3
2005 164.7 0.0 21.4 0.0 0.3 43.8 44.1 99.2 33.5 0.2 60.0 5.7
Earnings Data 2006 171.0 0.0 22.3 0.0 0.2 46.0 46.2 102.6 30.9 0.2 60.0 5.0
2007 177.6 0.0 23.2 0.0 0.1 48.1 48.2 106.3 28.5 0.2 60.0 4.3
Gross Revenue 3,281.49 2,000.61 1,556.61 1,339.54 1,167.19 969.54 746.59 2008 184.6 0.0 24.1 0.0 83.0 44.4 127.4 33.1 7.9 0.2 60.0 4.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2009 190.5 0.0 24.4 0.0 82.5 26.0 108.5 57.6 12.2 0.2 60.0 0.0
Petroleum Revenue Tax 619.46 291.96 189.99 143.90 109.71 73.90 39.43 2010 198.1 0.0 24.7 0.0 86.0 27.0 113.1 60.4 11.4 0.2 60.0 0.0
Corporation Tax 673.17 427.92 339.16 294.68 258.72 216.60 167.69 2011 206.1 0.0 25.3 0.0 89.7 28.3 118.0 62.7 10.6 0.2 60.0 0.0
Capital Expenditure 92.65 81.28 75.40 71.82 68.48 63.87 57.14 2012 214.3 0.0 25.6 0.0 93.6 29.6 123.2 65.5 9.8 0.2 60.0 0.0
Operating Costs 555.92 301.63 222.32 185.65 157.67 126.92 94.12 2013 176.3 0.0 25.9 0.0 78.8 31.0 109.8 40.7 5.4 0.0 47.7 0.0
2014 144.9 0.0 26.1 0.0 62.4 24.7 87.1 31.7 3.8 0.0 37.7 0.0
Gross Revenue (Deflated) 2,234.59 1,448.39 1,165.62 1,024.19 909.88 775.96 619.89 2015 119.1 0.0 26.7 0.0 48.7 19.5 68.2 24.2 2.6 0.0 29.8 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2016 98.5 0.0 26.9 0.0 37.8 15.2 52.9 18.7 1.8 0.0 23.7 0.0
Petroleum Revenue Tax (Deflated) 344.80 163.87 107.19 81.47 62.34 42.23 22.74 Remain
Corporation Tax (Deflated) 474.50 317.49 258.64 228.52 203.78 174.27 139.01 2017 0.0 0.0 106.6 0.0 -46.6 -6.0 -52.5 -54.0 -4.5 0.0 0.0 0.0
Capital Expenditure (Deflated) 85.04 74.67 69.31 66.04 62.99 58.79 52.64
Operating Costs (Deflated) 343.94 203.06 156.87 134.83 117.59 98.07 76.29 Total 3,281.5 0.0 555.9 92.7 619.5 673.2 1,292.6 1,340.3 573.6 1.2 423.0 42.1

These cash flows include Sean North and South plus Sean East tariff income
SUMMARY
B 7 9
2
The Strathspey field is located entirely within Block 3/4a some 480
A
Flare km northeast of Aberdeen in the UK sector of the Northern North Sea.
4 The field was discovered in 1975 by Well 3/4a-4 which tested oil in
BRENT Middle Jurassic sandstones of the Brent Group at a depth of
28b 211/30
approximately 9120 feet TVDSS. The field has been subsequently
211/28a Conoco Rel. 211/29 Shell 18 11 Shell 33/12b Statoil delineated with five wells, of which Well 3/4a-5 encountered oil in the
3/3 Chevron 3/4b Chev 1 2,3 3/4a 3/5b Rel. 29/3 Rel. Brent sequence and penetrated a thick gas and condensate bearing
Texaco interval of the Lower Jurassic Statfjord Formation. Both reservoir
11
horizons are some 5 km long by 2 km wide and are in a north-south
13 1 orientation. The Statfjord reservoir underlies the Brent reservoir and is
offset to the east.
10
Annex B approval was granted in October 1991 and production
9,14 began in December 1993. The field has been developed as a satellite
NINIAN 5
to the Ninian Central platform where all processing takes place before
17 4
12,16 liquid export to Sullom Voe via the Ninian pipeline and gas export via the
FLAGS line to St Fergus. The development has been in the form of a
subsea manifold tied back to Ninian. Produced fluids are not comingled
10
STRATHSPEY at the manifold as they are of varying pressures. Instead, each fluid
7 from a particular reservoir has a separate pipeline back to the platform.
9,9A
8 Development of the field as a subsea production system has made
1 4
C Strathspey the largest in the North Sea to be developed by such a
7 3/5a method.
Total The current interests in the Strathspey field in per cent. are:
8 ALWYN
3/8a Ranger 3/8b Lasmo 3/9c 3/9a 6
Con Total B NORTH Texaco* 67.00
1 2
0 4 km Exxon 13.25
S
5 3/10b RD/Shell 13.25
1 A Lasmo
Oryx 6.50

operator *

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties BRENT STATFJORD The Strathspey field is located in Quadrant 3 of the UK Northern
North Sea between the North Viking Graben and the East Shetland
Oil Gravity ( API) 41 28-42 Basin. The Brent field lies some 4 km to the north, Ninian some 10 km
Gas Oil Ratio (scf/stb) 1500 5000 to the southwest and Alwyn North some 8 km to the south. The Brent
Formation Volume Factor at Pi (rb/stb) and Alwyn North fields produce from both Brent Group and deeper
Oil Compressibility (vol/vol/psi) Statfjord Formation sandstones, the Ninian field produces from the
Reservoir Pressure, Pi (psig) approx. 5800 approx. 6100 Brent Group. The field is located close to the UK/Norwegian boundary
At Datum Depth of (ft TVDSS) 9000 9500 and lies on the Statfjord-Brent-Alwyn North structural trend that forms
Reservoir Temperature (F) 212 220 the western margin to the North Viking Graben.

Rock Properties

Rock Type Sandstone


Stratigraphic Unit Brent Group Statfjord Formation
Geological Age Middle Jurassic Lower Jurassic
Porosity Range (per cent.) 15-25 17-21
Permeability Range (md) 1-1000 10-10000
Connate Water Saturation (per cent.) 10-20 10-30
Hydrocarbon Water Contact (ft TVDSS) 9382 10255
Depth to Top of Structure (ft TVDSS) approx. 9100 approx. 9800

Reserves
Oil + NGL Gas
Total Reserves (MMstb, Bcf) 78 300
Est. Production to 31.12.95 (MMstb, Bcf) 21 41
Remaining Reserves (MMstb, Bcf) 57 259
FIELD DESCRIPTION
Production
The Strathspey field is a westerly tilted rotated fault block of Jurassic
Water Depth (feet) 449 and Triassic strata on the western margin of the North Viking Graben.
Production Start Date December 1993 for oil, Erosion of the Middle Jurassic Brent Group sequence has resulted in
May 1994 for gas truncation of the Tarbert and Ness Formations which are overlain and
Peak Oil Production (stb/day) 29000 in 1995 sealed by Upper Jurassic and Lower Cretaceous shales forming a
Peak Gas Production (MMscf/day) 115 structural and stratigraphic trap. A lower reservoir interval is formed by
Development subsea manifold the Lower Jurassic Statfjord Formation.
Number of Wells Producers 8 Brent, 6 Statfjord Reservoir quality in both horizons is highly variable and is controlled
Water Injectors 3 Brent by both inter and intra formational depositional characteristics. Overall
Oil Export Pipeline to Ninian Central and reservoir thickness is approximately 1000 feet for the Brent and 800 feet
onwards to Sullom Voe for the Statfjord, although the former is extensively truncated. The Brent
Gas Export Pipeline to Ninian Central and reservoir contains a volatile light oil whereas the Statfjord reservoir
contains a condensate rich gas with an underlying volatile light oil rim.
FLAGS to St Fergus
Production commenced in December 1993 as a subsea satellite to
the nearby Ninian field. Water injection has been used to produce the
Brent reservoir with injection water provided by pipeline from Ninian
South. However, horizontal wells and normal reservoir depletion have
been found to be adequate to produce from the Statfjord reservoir.
The Strathspey development may be extended northwards in the
future after the discovery with Well 3/4a-13 of a small isolated oil
bearing area.
STRATIGRAPHY AND STRUCTURE

The Strathspey field, like the Brent field, comprises two main reservoir horizons, with erosion of Viking and Brent Group sediments on the eastern uplifted side of the

UNITED KINGDOM
the sandstones of the deeper Lower Jurassic Statfjord Formation and shallower fault block. Truncation of the Brent Group is complete towards the eastern margin of

Strathspey
Middle Jurassic Brent Group sequence. The Statfjord Formation is of Rhaetian to the structure where Cretaceous sediments rest unconformably upon shales of the
Hettangian-Sinemurian in age and overlies some several thousand feet of Triassic Dunlin group. There are insufficient data to define the degree of truncation of the
mudstones and sandstones. The Statfjord Formation is overlain by the Lower Dunlin Group.
Jurassic marine mudstones and claystones of the Dunlin Group. This shale interval The structure as a whole is bounded to the east by a major easterly downthrowing
separates the two reservoir horizons. Overlying the Dunlin Group is the Brent normal fault and is closed on the north, west and south by dip closure. The Statfjord
sequence which comprises marine, shoreface and deltaic sediments of Bathonian reservoir is a more typical rotated fault block structure with closure against the
and Bajocian age which are in turn overlain by Upper Jurassic marine shales of the normal fault to the east and dip closure elsewhere. An element of fault closure is
Viking Group and Lower Cretaceous shales of the Cromer Knoll Group. expected in both structures on the northern, eastern and southern flanks due to the
The Strathspey structure is a westerly dipping rotated fault block of Jurassic and highly faulted nature of the reservoir horizons. This structural complexity is also
Triassic strata. The structure is some 5 by 2 kilometres in area with its long edge expected to generate a number of minor fault blocks within the main fault block.
orientated north-south parallel to the main Statfjord-Brent-North Alwyn trend. The
structure at Brent Group level, like the Brent field, is a classic drowned topography

INTERPRETATIVE STRUCTURAL CROSS SECTION

NINIAN STRATHSPEY BRENT


3/8-2 3/8-1 3/3-1 3/4-4 3/4-5 3/4-1
Feet SW NE

6000
TERTIARY
7000
UPPER CRETACEOUS
8000
LOWER CRETACEOUS

9000 UPPER JURASSIC

roup
10000 Brent G
Group ?
Dunlin
n
11000 Formatio
Statfjord
TR IA SS IC
12000
0 2.5 5 km
13000

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The sequences observed in both the Statfjord and Brent reservoirs in the sandstones of the Etive Formation, which represent upper shoreface and tidal
Strathspey field are typical of those seen in the central area of the Brent province. channel sediments. The Ness Formation overlies the Etive and comprises a
The Statfjord Formation represents a transition from the continental alluvial plain heterolithic sand, shale and coal sequence that was deposited in a delta plain
sediments of the underlying Triassic red beds to the sublittoral marine mudstones environment. Since the interval is truncated in all the released wells, the Tarbert
and sandstones of the Cook Formation at the base of the Dunlin Group. The Statfjord Formation, where present, exhibits a sheetlike development of transgressive marine
Formation is dominated by fluvial sedimentation at its base and exhibits two major sandstones.
progradational phases of deposition, the lower Raude and
the upper Eriksson Members. The Raude Member is
thinner in the Strathspey field than that seen in Statfjord REPRESENTATIVE WELL SECTION - 3/4-4
reservoirs further to the north and comprises

DEPTH (feet)
GAMMA RAY INTERVAL TRANSIT TIME
mudstones and siltstones interbedded with thin CORE ANALYSIS DATA (API Units) (sft ) -1
0 150 ROCK 140 40

AGE
sandstones which are interpreted as arid fluvial LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT
plain sediments. The sequence coarsens 40
(PERCENT)
0 0.1
(md)
10000 5
(Inches)
25
upwards into coarse grained sandstones

HEATHER FM.
HUMBER GP.
U. JURASSIC
Offshore mudstones
of the Eriksson member which are
more massive and are interbedded
with mudstones and coals

9200
interpreted as representing Lower delta plain sediments comprising
3/4-4
braid plain sediments. fluvial channel, mouth bar, levee and
crevasse splay sandstones. Interbedded
Overlying the Eriksson with lagoon and/or bay mudstones
Formation are the and coals
Geometry
glauconitic transgressive

9250
Varied sandstone body geometry,
marine sheet sands of the interbedded with laterally extensive
mudstones
Nansen Member. The

NESS FORMATION
and k
Statfjord Formation is Poor to good, generally reflects primary
depositional characteristics
capped by a sequence of
calcareous sandy 9300
siltstones and shales of the
Amundsen Formation
which develop upwards
into the Dunlin Group
9350

mudstones.
The Brent Group
represents a northward
MIDDLE JURASSIC

prograding shallow marine


9400
BRENT GROUP

Barrier bar complex/upper shoreface


and deltaic complex that is sandstones
ETIVE FM.

typical of the area. At its Geometry


Broad sheetlike to lenticular unit
base are the medium to and k
coarse grained and Generally good
9450

occasionally pebbly, sub Shoreface sandstones


littoral sandstones of the Geometry
RANNOCH FORMATION

Broom Formation. Thick sheetlike sandbody


and k
Overlying this are the fine Poor to moderate locally cemented
to very fine grained
9500

micaceous sandstones of
the Rannoch Formation.
These sands are well
laminated, contain highly
9550

bioturbated mudstone
horizons and represent a
BROOM FORMATION.

progradational lower to M
Shallow water offshore storm transported
sandstones and mudstones
middle shoreface M
Geometry
sequence. Overlying the Sheetlike sandbody
9600

and k
Rannoch are massive, M Poor
locally cross bedded,
medium grained M
M

Offshore mudstones 1 2 3

1. LOWER JURASSIC 2. DUNLIN GROUP 3. DRAKE FORMATION


RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
The Broom Formation is a sheetlike unit approximately 70 feet thick which becomes less
argillaceous and micaceous upwards. It has net to gross ratios of approximately 0.5. The 10000

Strathspey
overlying Rannoch Formation is approximately 120 feet thick and exhibits more mudstone
laminae than in the Brent field, being more analogous to the Rannoch seen in the Ninian
field. The interval coarsens upwards overall and net to gross ratios are in the region of 0.5.
The clean, sheetlike Etive Formation is approximately 50 feet thick and comprises upper
shoreface sandstones which are locally incised by tidal channels. These exhibit a lenticular 1000
++ +
geometry and good reservoir quality with an overall net to gross ratio close to 1.0. The Ness + +
+ + +
Formation is up to 600' thick in the Brent Field, but in Strathspey is eroded to around 200'. + +++ +
+
The Ness is expected to thicken downdip away from the crest of the Strathspey structure. +
+ +
The best reservoir quality in the Ness are distributary channel, mouthbar and lagoon/bay +++
++
+ + +
shoreface sandstones whose geometries range from sheetlike to ribbon and lenticular. 100 +
Interconnectivity is poor with net to gross ratios around 0.4. The Tarbert Formation is a

PERMEABILITY (md.)
sheetlike unit of shallow marine sandstones up to 120 feet thick. Net to gross ratio is in the
region of 0.9.
The Statfjord Formation Raude Member is some 100 feet thick and comprises channel
10
fill, overbank and crevasse splay sandstones, interbedded with mudstones. Sandstone
body geometries are variable although interconnectivity is moderate with net to gross ratios
in the region of 0.25. The Eriksson Member is some 600 feet thick and
W comprises a sequence of stacked channel fill sandstones, crevasse
3/4-12 splay sandstones and overbank deposits with lenticular to sheetlike
1
Tarbert Heather Fm

geometries. Overbank mudstones are less arealy extensive than in


Humber Gp
U. Jurassic

the Raude Member and net to gross ratios are in the region of
0.5 to 0.7. The uppermost Statfjord reservoir unit is the
Nansen which comprises a sheetlike sequence
of marine bar deposits that exhibit
0.1
excellent net to gross ratios in the
range 0.9 to 1.0.
Ness Formation
Middle Jurassic
Brent Group

3/4-4
E
+ Brent
3/4-5
+ Statfjord
0.01
0 10 20 30 40
POROSITY (per cent.)
BRENT GROUP
1 ERODED
2
Broom and Rannoch Formations have porosities and
3
permeabilities in the range of 20 to 25 per cent and 10 to 50 md
6 5 4 respectively. Etive reservoir quality is good, with porosities ranging
from 20 to 30 per cent and permeabilities ranging from 100 to 500
NON - SCALE SECTION md. These values are not as good as those seen in the Brent field
and may reflect a foreshore depositional nature rather than tidal
6 5 8 7 channel environments. The Ness Formation exhibits highly variable
reservoir quality relating to primary depositional trends. Porosities in
9 the range 10 to 20 per cent are common, with permeabilities of the
order of 100 md. The Tarbert Formation should exhibit moderate to
good reservoir quality.
Lower Jurassic

The Statfjord reservoir interval generally shows comparable


porosities but much higher permeabilities than the Brent sequence.
Eriksson Member

Porosities are in the range 17 to 20 per cent whereas permeabilities


Statfjord Formation

average 20, 1000 and 2300 md for the Raude, Eriksson and Nansen
Members respectively.

1. Etive Formation
2. Rannoch Formation RESERVOIR PRESSURE
3. Broom Formation
4. Drake Formation
Raude Member

5. Dunlin Group
0 RFT data from the 3/4a-12 well show an oil water contact at 9382
Triassic

6. Lower Jurassic feet TVDSS with an oil gradient of 0.225 psi/ft and a water gradient
100
7. Calcareous Unit of 0.435 psi/ft. On the basis of this hydrostatic gradient the reservoir
8. Amundsen Formation
9. Nansen Member
appears to be overpressured by around 1800 psi. Pressure
200 feet
discontinuities may indicate that the individual reservoirs of the Brent
Group are not in pressure communication.
FLUID PROPERTIES The Statfjord Formation is probably also in a separate pressure
regime, and is probably also overpressured. On the basis of flowing
The Brent reservoir contains an undersaturated light volatile oil. Oil of 41.5 degrees API FIT data from Well 3/4a-4 it appears to be overpressured by 2140 psi
and GOR 1523 scf/stb was tested from the Etive Formation. Two production tests were relative to a hydrostatic gradient of 0.435 psi/ft.
carried out on the Statfjord in Well 3/4a-5. The lower test (base Raude) produced a light
volatile oil of API gravity 42.5 degrees with a GOR of 5760 scf/stb and the upper test (top 9100
Nansen) produced a gas condensate with an API gravity of 28.8 degrees and a GOR of
1068 scf/stb.
0.225 psi/ft
2000 2.0 1.0 9300

B0 OWC @ 9382 ft TVDSS


DEPTH (feet TVDSS)

GOR 0.435 psi/ft


9500
1500
GOR (scf/stb)

B0 (rb/stb)

0.435 psi/ft
0 (cp)

9700
1000 1.5 0.5

9900
500 0

@ 212F from correlation 10100


0 1.0 0.0
5800 5900 6000 6100 6200
0 1000 2000 3000 4000 5000 6000 INITIAL RESERVOIR PRESSURE (psig)
Brent Reservoir Fluid PRESSURE (psig)

CONTROLS ON RECOVERY

Oil recovery from the Brent reservoir is expected to be moderate, in the region of use of horizontal wells to develop the Statfjord reservoir, which is being produced
30 to 35 per cent. whereas recovery of condensate from the Statfjord is expected to under natural depletion
be poor to moderate, in the region of 15 to 20 per cent. Oil recovery factors have subsea development resulting in difficulty of workovers on wells
been estimated on the following factors:- the highly faulted nature of the reservoir horizons may result in
good productivities in tested intervals from both Brent and Statfjord reservoirs compartmentalisation
favourable mobility ratio resulting from low oil viscosities enhancing water Dry gas recovery from the Statfjord is expected to be in the region of 60 to 70 per
injection effectivity in the Brent reservoir cent.
FACILITIES SPECIFICATIONS

Water Depth 449

UNITED KINGDOM
(feet)

Strathspey
Development Type Subsea Manifold
Total Weight 950
(tonnes)
Well Slots -
Wells planned Producers 8 Brent, 6 Statfjord
Injectors 3 Brent

PROCESSING AND EXPORT SPECIFICATIONS

Photograph/Schematic Oil Throughput 70000


(bbl/day)
Not Available Oil Export 10" x 15.5 km line to Ninian Central
and then to Sullom Voe
Gas Export 8" x 15.5 km line to Ninian Central via St
Fergus via FLAGS

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00% HISTORICAL AND PROJECTED

Pre Corporation Tax 30 150

@@@


Liquid
Net Present Value 140.79 27.04 -18.36 -41.91 -61.22 -83.83 -109.10
Net Present Value (Deflated) 71.83 -26.66 -65.63 -85.71 -102.04 -120.94 -141.53 Gas
Profit/Inv Ratio 0.37 0.08 -0.06 -0.13 -0.20 -0.29 -0.41

Average Annual Daily Gas Rate (MMscf/day)

Average Annual Daily Gas Rate (MMscf/day)


25
Profit/Inv Ratio (Deflated) 0.17 -0.07 -0.18 -0.25 -0.30 -0.38 -0.48
NPV/Unit Oil Equiv. 1.10 0.30 -0.25 -0.66 -1.09 -1.78 -3.05
NPV/Unit Oil Equiv. (Deflated) 0.61 -0.32 -0.96 -1.42 -1.91 -2.68 -4.10
20 100
Payback Year 1999
Nominal Rate Of Return % 6.68
Real Rate Of Return % 3.37

@@@


Post Corporation Tax 15

Net Present Value 94.33 -1.38 -39.75 -59.69 -76.04 -95.19 -116.50
Net Present Value (Deflated) 33.05 -50.37 -83.48 -100.53 -114.40 -130.42 -147.71
Profit/Inv Ratio 0.25 -0.00 -0.12 -0.19 -0.25 -0.33 -0.44 10 50
Profit/Inv Ratio (Deflated) 0.08 -0.13 -0.23 -0.29 -0.34 -0.41 -0.50
NPV/Unit Oil Equiv. 0.74 -0.02 -0.55 -0.94 -1.35 -2.02 -3.25
NPV/Unit Oil Equiv. (Deflated) 0.28 -0.61 -1.23 -1.67 -2.14 -2.89 -4.28
5
Nominal Rate Of Return % 4.91
Real Rate Of Return % 1.69

Earnings Data
0 0
Gross Revenue 1,437.76 984.23 797.81 698.17 613.99 510.74 383.69 1990 1995 2000 2005
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 46.46 28.42 21.39 17.77 14.82 11.35 7.39
Capital Expenditure 385.00 347.26 327.67 315.69 304.48 288.97 266.13
Operating Costs 911.97 609.93 488.50 424.40 370.73 305.60 226.67

Gross Revenue (Deflated) 1,307.68 908.66 742.65 653.28 577.35 483.62 367.15
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 38.78 23.71 17.84 14.83 12.37 9.48 6.18
Capital Expenditure (Deflated) 421.81 381.30 360.24 347.35 335.27 318.55 293.89
Operating Costs (Deflated) 814.04 554.02 448.04 391.63 344.12 286.01 214.79

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%

Pre Corporation Tax CASH FLOW REPORT


Net Present Value 391.75 338.36 311.91 296.18 281.79 262.39 234.96 Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Net Present Value (Deflated) 354.72 308.12 284.98 271.21 258.58 241.54 217.36 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
NPV/Unit Oil Equiv. 3.92 4.03 4.08 4.11 4.14 4.17 4.22 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D

Post Corporation Tax 1991 0.0 0.0 0.0 55.0 0.0 0.0 0.0 -55.0 -91.5 0.0 0.0 0.0
1992 0.0 0.0 0.0 145.0 0.0 0.0 0.0 -145.0 -211.2 0.0 0.0 0.0
Net Present Value 345.29 302.09 280.48 267.55 255.67 239.56 216.56 1993 0.0 0.0 0.0 110.0 0.0 0.0 0.0 -110.0 -142.9 0.0 0.0 0.0
Net Present Value (Deflated) 315.94 277.86 258.77 247.32 236.79 222.48 201.99 1994 122.8 0.0 69.5 45.0 0.0 0.0 0.0 8.3 9.8 28.9 33.0 0.0
NPV/Unit Oil Equiv. 3.46 3.60 3.67 3.72 3.76 3.81 3.89 1995 151.9 0.0 86.1 15.0 0.0 0.0 0.0 50.8 54.3 28.9 80.0 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Earnings Data 274.6 0.0 155.6 370.0 0.0 0.0 0.0 -251.0 -381.4 21.1 41.2 0.0

Gross Revenue 1,163.12 968.45 876.63 823.49 775.81 713.01 627.00 1996 157.7 0.0 86.1 15.0 0.0 0.0 0.0 56.6 54.5 28.9 80.0 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 167.9 0.0 89.5 0.0 0.0 0.0 0.0 78.4 67.1 28.9 80.0 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 158.2 0.0 90.0 0.0 0.0 0.0 0.0 68.2 52.0 23.7 90.0 0.0
Corporation Tax 46.46 36.27 31.43 28.63 26.12 22.83 18.40 1999 144.7 0.0 87.2 0.0 0.0 6.1 6.1 51.4 34.9 19.3 90.0 0.0
Capital Expenditure 15.00 14.64 14.43 14.30 14.17 13.99 13.69 2000 134.0 0.0 85.6 0.0 0.0 13.5 13.5 34.9 21.1 15.8 90.0 0.0
Operating Costs 756.37 615.45 550.29 513.01 479.86 436.63 378.35 2001 125.2 0.0 84.6 0.0 0.0 11.9 11.9 28.8 15.5 12.9 90.0 0.0
2002 114.9 0.0 81.9 0.0 0.0 10.3 10.3 22.6 10.8 10.6 85.0 0.0
Gross Revenue (Deflated) 1,021.77 860.10 783.30 738.66 698.47 645.30 572.02 2003 104.2 0.0 78.7 0.0 0.0 8.6 8.6 16.9 7.2 8.7 78.0 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 56.3 0.0 51.3 0.0 0.0 6.7 6.7 -1.7 -0.6 7.0 23.0 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 38.78 30.26 26.22 23.88 21.79 19.06 15.37 2005 0.0 0.0 21.3 0.0 0.0 -10.6 -10.6 -10.8 -3.6 0.0 0.0 0.0
Capital Expenditure (Deflated) 15.00 14.64 14.43 14.30 14.17 13.99 13.69
Operating Costs (Deflated) 652.06 537.35 483.89 453.15 425.71 389.77 340.97 Total 1,163.1 0.0 756.4 15.0 0.0 46.5 46.5 345.3 258.8 56.9 257.7 0.0

These cash flows include Strathspey field only


16/11a BP 16/12a Lasmo 16/12b 16/13b Phillips SUMMARY
7 Kerr McGee
Four structures make up the T Block accumulation. They are all
3 ELM 5
located in Quadrant 16 some 250 km east-northeast of Aberdeen lying
16/16b Amerada 16/17 Agip 16/18 Mobil within the South Viking Graben of the UK Sector of the Northern North
8
11 15 Sea. The four structures, Tiffany, Toni, Thelma and Southeast Thelma
17 13 TIFFANY were discovered in 1979, 1977, 1976, and 1978 respectively by Wells
16/17-8A, -4, -1 and -7. All wells encountered oil in Upper Jurassic
9
sandstones and conglomerates of the Brae Formation. Tiffany and Toni
14 received Annex B approval in July and October 1990.
T BLOCK Development has been through a single steel jacket on Tiffany with
2
16 tied in subsea manifolds over Toni. The Tiffany jacket was installed in
September 1992 and production started in November 1993. The Toni
4 6 TONI field uses two subsea clusters, one for producing, the other for water
4 injection. Toni started producing in December 1993. Thelma and
Southeast Thelma were granted government approval in April 1995 and
2
5 20 will be developed during a second phase, ready for production in 1996,
2 using a slimline platform and subsea template. It is anticipated that five
THELMA production wells will be needed - one horizontal producer on Thelma
3 1 19 and four conventional production wells on Thelma South East.
12 Processing will take place on Tiffany before entering the Brae-Forties
7
10 3 pipeline. Oil from Tiffany and Toni is currently piped to Cruden Bay via
S.E. THELMA Forties, whilst gas is piped to Brae and reinjected for subsequent sale
under the Brae gas sales contract.
1 18 0 4 km The current interests in Block 16/17 in per cent. are:-

AGIP (UK) Ltd. * 47.48


16/21d Arco 16/22 Total 16/23 Conoco
Fina Exploration Ltd 30.00
LL and E 11.26
Murphy 11.26

operator *

RESERVOIR CHARACTERISTICS LOCAL SETTING

Fluid Properties SOUTHEAST The fields in T Block are located in the South Viking Graben, to the
TIFFANY TONI THEMA THELMA east of the East Shetland Platform. Miller, Birch and the Brae fields, all
of which contain oil in the Upper Jurassic Brae Formation, lie at
Oil Gravity (API 36 34 36 36 distances of between 10 and 25 km north of T Block. The Sleipner and
Gas Oil Ratio (scf/stb) 1235 2400 2290 1400 Dagny Jurassic gas fields lie approximately 20 km to the east in the
Bubble Point Pressure, Pb (psig) 2884 6565 Norwegian sector and to the southwest at a distance of between 13 and
Formation volume Factor at Pi (rb/stb) 1.57 2.0 2.07 1.75 20 km lie the Balmoral and Blair Paleocene oil fields. The Maureen,
Cyrus and Andrew Paleocene oil fields all lie approximately 30 km to the
Oil Compressibility (vol/vol/psi)
south and southeast of T Block.
Original Reservoir Pressure, Pi (psig) 7429 6982 6609 6609
At Datum Depth of (ft TVDSS) 13800 12800 12000 12000
Reservoir Temperature (F) 278

Rock Properties

Rock Type ----------- Sandstone/Conglomerate -----------


Stratigraphic Unit ------------------- Brae Formation -------------------
Geological Age -------------------- Upper Jurassic --------------------
Porosity Range (per cent.) 11-13 13-15 12-15 13-18
Permeability Range (md) 0.1-250 1-50 0.1-50 0.1-50
Connact Water Saturation (per cent.) 27 27-51 36-62 21-29
Oil Water Contact (ft TVDSS) 13901 12942 12091 12743
Depth to Top of Structure (ft TVDSS) 12600 12000 11300 11200

Reserves

Total Oil Reserves (MMstb) ------------ 150 ----------- ------------ 40 ----------


Total Gas Reserves (Bcf) ------------ 118 ----------- ------------ 44 ----------
Est. Oil Production to 31.12.95 (MMstb) ------------- 47 ------------ ------------- 0 ----------- FIELD DESCRIPTION
Est. Gas Production to 31.12.95 (Bcf) ------------- 46 ------------ ------------- 0 -----------
Remaining Oil Reserves (MMstb) ------------ 103 ----------- ------------ 40 --------- T Block comprises the Tiffany, Toni, Thelma and Southeast Thelma
Remaining Gas Reserves (Bcf) ------------- 72 ------------ ------------ 44 --------- accumulations, of which Tiffany and Toni are the best understood and
were first to be brought onstream. The reservoir horizon comprises
Production turbidite sandstones and conglomerates of a comparable age to those
in the South Brae field. The reservoir quality of the wells is highly
Water depth (feet) 413 436 427 427 variable due to the lithological diversity of the formation. In general the
Production Start Date 1993 1994 1997? 1997? wells are capable of high initial production rates. The oil gravity is
Peak Production (stb/day) --------- 75000 -------- ------------ 20000 ----------
different in each accumulation, ranging from 34 to 36 degrees API. Gas
Platform(s) 1 conventional steel jacket oil ratios range from 1235 to 2400 scf/stb. Water injection has been
needed from the outset to sustain pressure for both Tiffany and Toni.
+ subsea manifolds
First production from Thelma and SE Thelma is expected in late
Number of Wells - producers 7 4
1996, when the Tiffany platform will have the spare productive capacity
- water injectors 4 3
to accept additional output. Unlike the Tiffany and Toni fields, Thelma is
Oil Export to Cruden Bay via Brae-Forties pipeline
expected to produce natural gas for sale at a commercial price. For the
Tiffany and Toni fields, the gas is sold at below market price for injection
into the Brae complex. It is possible that the Pine, Birch North and South
and Elm fields lying to the north of T Block can also be tied back to T
Block in the future, depending on availability of production capacity at
Tiffany. Tie back to South Brae and stand-alone developments are also
being considered for these fields.
STRATIGRAPHY AND STRUCTURE
Graben was expressed by large scale movement on western graben-margin listric
The Brae Formation forms the reservoir horizon in the T Block. It represents a faults. Very rapid subsidence close to these faults together with the formation of a

UNITED KINGDOM
series of overlapping submarine fans of Kimmeridgian to Ryazanian age. The graben margin uplift zone, provides the structural control on Brae Formation
formation interdigitates with the Kimmeridge Clay Formation in the axial part of the sedimentation.

T Block
South Viking Graben and is genetically associated with the listric, graben margin Traps in the T Block area are formed by differential compaction of the distal and
fault scarp systems which form the western field boundary. The formation is overlain lateral mudstone-dominated sediments around proximal cones of conglomerate
by the 'hot shale' of the Kimmeridge Clay Formation, which seals the reservoir units. dominated sediments. This combination of structural-stratigraphic trap is further
A major phase of Upper Jurassic crustal extension across the South Viking complicated by faulting.

INTERPRETATIVE STRUCTURAL CROSS SECTION

Feet 16/17-2A 16/17-6


NW SE

7000
TERTIARY
9000

11000 Chalk Group


Cromer Knoll Group

13000
Rotliegendes Group Brae Formation
Kimmeridge Clay Formation
15000 Heather Formation
Hugin Formation
TRIASSIC
17000 Zechstein Group Fladen Group
Old Red Sandstone
TRIASSIC or Older
19000

0 1 2 km

SEDIMENTOLOGY AND DEPOSITIONAL ENVIRONMENT

The Brae Formation in the T Block comprises a series of overlapping submarine broad, lobate, high density turbidite sand bodies. Generally fine grained, current
fans composed of conglomerates, sandstones and thinly interlaminated fine grained rippled sandstones form sheetlike turbidite sandstones. The interlaminated current
sandstones and mudstones. The submarine fans become thinner and finer away rippled sandstones and non-bioturbated, black mudstones represent low density
from graben margin faults, forming lobate sediment bodies, comprising an overall turbidites and pelagic, euxinic marine mudstones.
fining-upwards megasequence. The boulder to pebble conglomerates commonly The channelised submarine fan lobes which comprise the overall megasequence
grade from clast supported to matrix supported and are overlain by pebbly are themselves composed of graded units representing individual depositional
sandstones, forming lenticular channelised conglomerate bodies separated by more events. The entire section is interpreted as recording the east-west propagation of
persistent linguoid lobate matrix supported conglomerates and sandstones. Fine to successive faults in the graben-margin fault zone.
coarse grained sandstones are generally thickly bedded and massive, representing

REPRESENTATIVE WELL SECTION - 16/17-1


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 4 24 45 -15

Mid-fan channel and lobe sandstones and


conglomerates interbedded with inter-fan
mudstones and fine grained, turbidite
16/17-1
Geometry
Mid-part of clastic wedge composed of lobate
11700

sandbodies separated by laterally persistent


mudstones containing thin sand sheets.

and K
and K moderate in thicker sandbodies.
and K poor and very poor in argillaceous
sections, possibly baffling vertical flow.
VOLGIAN - RYAZANIAN

BRAE FORMATION
HUMBER GROUP

11800

Inner fan-channel to lobe sandstones and


conglomerates with minor interchannel
mudstones and fine grained, turbidite
sandstones.
Geometry
Elongate, linguoid conglomerates and lobate
sandbodies, separated towards the top by
laterally persistent mudstones containing thin
sheet sandstones.
11900

and K
and K of conglomerates poor to moderate.
Sandstones likely to be better reservoir
quality. Argillaceous sections may baffle
vertical flow.
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS

10000

Toni

T Block
16/17-6
1. Lower Cretaceous 16/17-5
2. Cromer Knoll Group Valhall Formation
3. Valhall Formation 1000
4. Kimmeridge Clay Formation

Tiffany
16/17-8A
SE
Thelma 100
16/17-1
3 2 1
4

PERMEABILITY (md.)
10

UPPER JURASSIC
Brae Formation
Humber Group
1
n
io
at
m
or 0
rF
he
at
He 200 ?
0.1
400 feet
Formation
Heather
Group
Fladen

0.01
0 10 20 30
POROSITY (per cent.)

The Brae Formation in the T Block area comprises a series of elongate, linguoid Porosities of the thicker bedded sandstones in the T Block area
conglomerate-sandstone sediment bodies orientated approximately normal to the South are generally moderate, typically 11 to 18 per cent. Permeabilities
Viking Graben margin faults. These coarse clastic sediment bodies are enveloped by the are poor to good, commonly 0.1 to 250 md. Porosity values are
interlaminated mudstone and sandstone facies. They are divided into reservoir zones by the highly variable depending on lithology and facies. The thinner
recognition of laterally persistent interlaminated mudstone and sandstone units which will bedded sandstones within the mudstones are mostly tight due to
form vertical permeability baffles or barriers. However, most of the coarse clastic sediment extreme compaction and quartz cementation. Clast supported and
bodies probably coalesce close to the graben margin faults where post-depositional faulting mud-matrix conglomerates contribute little due to the predominance
and brecciation may be an added complication. Some may also coalesce away from the of non-net clasts. The two main controls on the porosity and
graben margin before they thin and fine into non-reservoir sediments. Therefore, there is permeability values are therefore the distal and lateral fining into
likely to be tortuous pressure communication through the entire system. The mapping of argillaceous facies, where diagenesis has been particularly severe,
thickness and net to gross ratio is dependent on the recognition of the proximal/distal and and the low original bulk rock porosity and permeability of clast-
axial/lateral facies relationships, particularly the tendency for some coarse clastic facies supported boulder conglomerates which dominate the proximal
sediment bodies to coalesce in the mid- fan region. inner-fan facies.

FLUID PROPERTIES
RESERVOIR PRESSURE
The reservoirs in the T Block contain undersaturated black oils with gravities ranging
from 34 to 36 degrees API and gas oil ratios of between 1200 and 2400 scf/stb. Well 16/17a- Data from the T Block indicate that Tiffany, Toni and Thelma are
5 found gas condensate with a condensate gas ratio of approximately 200 bbl/MMscf in the all overpressured by approximately 1200 psi relative to a hydrostatic
Hugin Formation. gradient to surface of 0.45 psi/ft and all lie on the same pressure
trend. The reservoir pressure for Tiffany is 7429 psig at 13800 feet
TVDSS, for Toni is 6982 psig at 12800 feet TVDSS and for Thelma
is 6609 psig at 12000 feet TVDSS.

1500 2.0 0.5 11500


Thelma
Rs
1.8 0.4 0.23 psi/ft
B0 12000
1000 OWC @ 12091 ft TVDSS
1.6 0.3
B0 (rb/stb)
Rs (scf/stb)

Toni
0 (cp)

12500
0
DEPTH (feet TVDSS)

1.4 0.2 0.27 psi/ft


500
13000 OWC @ 12942 ft TVDSS
1.2 0.1

Tiffany
@ 278 F
0 1.0 0.0 13500
0 2000 4000 6000 8000 0.30 psi/ft

PRESSURE (psig) OWC @ 13901 ft TVDSS


14000

0.45 psi/ft

14500
6500 7000 7500 8000

INITIAL RESERVOIR PRESSURE (psig)


CONTROLS ON RECOVERY

The recovery from the four accumulations in the T Block is likely to vary from moderate
to good.
Recovery factors will probably be similar to those in the Brae fields to the north of
T Block. Based on reservoir quality and homogeneity, Tiffany is likely to have the highest
recovery factor and Thelma the lowest.
FACILITIES SPECIFICATIONS

TIFFANY TONI

UNITED KINGDOM
Water Depth 413 436

T Block
(feet)
Platform Type 1 slimline steel jacket 2 subsea manifolds
Function drilling/production/accommodation

Jacket Weight 17500


(tonnes)
Total Weight 35300
(tonnes)

Accommodation 140

Well slots 16
Wells producers planned 7 4
injectors planned 4 3

PROCESSING AND EXPORT SPECIFICATIONS

Oil Throughput 105000


(bbl/day)
Gas Throughput 105
(MMscf/day)

Water Injection (Peak Capacity) 125000


(bbl/day)
Oil Export 12" x 4km link to Brae Forties Pipeline
then on to Cruden Bay
Gas Export 10" x 6 km link to Brae for reinjection

(An Agip drawing)

@


FULL FIELD LIFE ECONOMIC INDICATORS PRODUCTION PERFORMANCE
HISTORICAL AND PROJECTED
Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
100 200
Pre Corporation Tax Liquid
Net Present Value 572.56 191.90 42.71 -33.68 -95.60 -166.98 -244.45 Gas

@@@


Net Present Value (Deflated) 365.26 28.32 -101.98 -168.00 -220.95 -281.02 -343.89 Average Annual Daily Liquid Rate (Mbbl/day)

Average Annual Daily Gas Rate (MMscf/day)


Profit/Inv Ratio 0.50 0.19 0.05 -0.04 -0.12 -0.22 -0.35
Profit/Inv Ratio (Deflated) 0.29 0.03 -0.10 -0.17 -0.24 -0.32 -0.44
NPV/Unit Oil Equiv. 2.64 1.30 0.36 -0.33 -1.06 -2.24 -4.44 75 150
NPV/Unit Oil Equiv. (Deflated) 1.79 0.20 -0.90 -1.69 -2.54 -3.89 -6.39

Payback Year 1998


Nominal Rate Of Return % 9.07
Real Rate Of Return % 5.57 1, 3 Tiffany, Toni & Thelma
50 2, 4 Tiffany, Toni 100
Post Corporation Tax

@@@


Net Present Value 374.84 70.99 -48.32 -109.37 -158.74 -215.41 -276.08
Net Present Value (Deflated) 193.45 -76.78 -181.16 -233.86 -275.93 -323.22 -371.50
Profit/Inv Ratio 0.33 0.07 -0.05 -0.13 -0.19 -0.28 -0.40 1
Profit/Inv Ratio (Deflated) 0.15 -0.07 -0.18 -0.24 -0.30 -0.37 -0.48
NPV/Unit Oil Equiv. 1.73 0.48 -0.41 -1.06 -1.76 -2.89 -5.01 25 50
NPV/Unit Oil Equiv. (Deflated) 0.95 -0.55 -1.60 -2.36 -3.17 -4.48 -6.91 2
3
Nominal Rate Of Return % 6.67
Real Rate Of Return % 3.29 4

Earnings Data 0 0
Gross Revenue 2,468.12 1,650.89 1,318.90 1,142.75 994.81 814.72 595.87 1990 1995 2000 2005
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Year
Corporation Tax 197.73 120.90 91.03 75.68 63.14 48.43 31.63
Capital Expenditure 1,135.40 987.03 912.65 868.06 826.96 771.10 690.94
Operating Costs 760.16 471.96 363.53 308.38 263.44 210.60 149.38

Gross Revenue (Deflated) 2,292.10 1,552.84 1,249.14 1,086.97 950.10 782.55 577.24
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Corporation Tax (Deflated) 171.81 105.10 79.18 65.86 54.97 42.20 27.61
Capital Expenditure (Deflated) 1,262.93 1,102.44 1,021.69 973.18 928.41 867.43 779.69
Operating Costs (Deflated) 663.91 422.09 329.44 281.79 242.64 196.14 141.44

ECONOMIC INDICATORS FROM 1/1/1996


Discount Rates 0.00% 5.00% 8.00% 10.00% 12.00% 15.00% 20.00%
CASH FLOW REPORT
Pre Corporation Tax
Year Gross Royalty OP Capital Pet Rev Corpn Gov Net Rev Real NPV Liquids Gas Tariff
Net Present Value 1,212.82 1,069.15 995.80 951.49 910.46 854.45 773.75 Rev &SPD Costs Inv Tax Tax Take Aft Tax @ 8.0% Prodn Prodn Prodn
Net Present Value (Deflated) 1,117.31 987.99 922.09 882.29 845.45 795.13 722.55 MM MM MM MM MM MM MM MM MM Mbbls/D MMscf/D Mboe/D
NPV/Unit Oil Equiv. 7.46 7.62 7.69 7.73 7.76 7.79 7.83
1990 0.0 0.0 0.0 50.0 0.0 0.0 0.0 -50.0 -98.4 0.0 0.0 0.0
Post Corporation Tax 1991 0.0 0.0 0.0 280.0 0.0 0.0 0.0 -280.0 -465.7 0.0 0.0 0.0
1992 0.0 0.0 0.0 405.0 0.0 0.0 0.0 -405.0 -589.8 0.0 0.0 0.0
Net Present Value 1,015.10 907.13 851.35 817.41 785.83 742.43 679.30 1993 25.3 0.0 24.6 195.0 0.0 0.0 0.0 -194.3 -252.4 4.4 20.8 0.0
Net Present Value (Deflated) 945.50 847.14 796.45 765.62 736.94 697.52 640.12 1994 202.3 0.0 47.5 40.0 0.0 0.0 0.0 114.8 135.9 48.8 52.1 0.0
NPV/Unit Oil Equiv. 6.24 6.47 6.58 6.64 6.70 6.77 6.87 1995 308.3 0.0 54.1 80.0 0.0 0.0 0.0 174.2 186.5 75.0 52.5 0.0
Total To Start Of Discounting ( 1/JAN/1996)
Earnings Data 535.9 0.0 126.2 1,050.0 0.0 0.0 0.0 -640.3 -1,083.9 46.8 45.8 0.0

Gross Revenue 1,932.18 1,650.15 1,514.77 1,435.56 1,363.88 1,268.47 1,135.65 1996 320.6 0.0 56.9 75.0 0.0 0.0 0.0 188.7 181.6 75.0 53.7 0.0
Royalty 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 373.1 0.0 67.0 10.4 0.0 0.0 0.0 295.7 253.4 80.8 64.6 0.0
Petroleum Revenue Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1998 309.9 0.0 65.1 0.0 0.0 33.4 33.4 211.4 161.2 64.4 53.1 0.0
Corporation Tax 197.73 162.02 144.46 134.08 124.63 112.02 94.45 1999 247.9 0.0 62.7 0.0 0.0 59.6 59.6 125.6 85.3 49.5 41.2 0.0
Capital Expenditure 85.40 82.86 81.43 80.52 79.64 78.37 76.38 2000 199.7 0.0 60.3 0.0 0.0 45.2 45.2 94.2 57.0 38.3 32.4 0.0
Operating Costs 633.96 498.13 437.53 403.55 373.78 335.65 285.52 2001 161.7 0.0 57.5 0.0 0.0 34.1 34.1 70.1 37.7 29.8 25.4 0.0
2002 132.2 0.0 53.6 0.0 0.0 25.4 25.4 53.1 25.5 23.4 20.2 0.0
Gross Revenue (Deflated) 1,734.03 1,495.32 1,379.85 1,311.97 1,250.33 1,167.92 1,052.47 2003 101.9 0.0 69.3 0.0 0.0 19.2 19.2 13.3 5.7 17.3 15.4 0.0
Royalty (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2004 85.1 0.0 41.8 0.0 0.0 3.0 3.0 40.3 15.3 13.9 12.4 0.0
Petroleum Revenue Tax (Deflated) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Remain
Corporation Tax (Deflated) 171.81 140.85 125.64 116.67 108.51 97.61 82.43 2005 0.0 0.0 99.6 0.0 0.0 -22.2 -22.2 -77.4 -26.2 0.0 0.0 0.0
Capital Expenditure (Deflated) 85.00 82.49 81.08 80.18 79.31 78.05 76.07
Operating Costs (Deflated) 531.72 424.85 376.68 349.50 325.58 294.75 253.85 Total 1,932.2 0.0 634.0 85.4 0.0 197.7 197.7 1,015.1 796.4 143.2 116.2 0.0

These cash flows include Tiffany, Toni, Thelma and S E Thelma fields
14/20 Texaco 15/16 Texaco SUMMARY
9
The Tartan, Highlander and Petronella fields are located in
PIPER Quadrants 14 and 15, some 190 km northeast of Aberdeen in the Outer
17 6 Moray Firth, in the UK Sector of the North Sea. Tartan was discovered
by Well 15/16-1 in 1974 encountering oil in the Upper Jurassic Piper
19 22,25,27 Formation. Subsequently Petronella and Highlander were discovered
23 18
24 by Wells 14/20-1 and 14/20-5 in 1975 and 1976 respectively. The
4 Petronella discovery well encountered oil in the Upper Jurassic
20
21 Claymore Sandstone Member, with Highlander encountering oil in the
Piper Formation and Lower Cretaceous Spey Sandstone Formations.
12,13 8 Development of Tartan began in 1979 using a single steel platform
and later subsea completions. Highlander and Petronella were tied into
14,15 the Tartan platform using subsea completions in 1985 and 1986
20
5 respectively. Highlander uses a subsea manifold for production whilst
7 12 14,14Z Petronella has a single well producer.
HIGHLANDER 8 TARTAN Texaco North Sea UK Ltd is the operator of and has a 100 per cent.
6 interest in the Tartan, Highlander and Petronella fields.
18,21,28 9,10,15, 3 5
D PROSPECT 19
10
1,11,13, 4,4A
17
2 3,3A 7 16
11 2,2A 22
14/25a Shell 1,16 49 15/21a Amerada
PETRONELLA 7
3 47
PERTH
SCOTT
39
0 4 km
36
15/21b Amerada 35

LOCAL SETTING

The Tartan, Highlander and Petronella fields are located on the


southern margin of the Witch Ground Graben in the Outer Moray Firth
Basin. The Piper Field to the northeast in Block 15/17 contains oil in the
same Upper Jurassic Piper Formation, but is of better reservoir quality.
Scott to the southeast also has substantial reserves in the Piper
Formation. To the northwest, in Block 14/19, the Claymore field
produces from the Upper Jurassic Claymore Sandstone Member and
the Cretaceous Spey Sandstone Formation. Oil discoveries have also
RESERVOIR CHARACTERISTICS been made in Zechstein and Carboniferous horizons in the Claymore
field.
Fluid Properties TARTAN PETRONELLA HIGHLANDER

Oil Gravity (API) 33-37 39 36 35


Gas/Oil Ratio (scf/stb) 800-1600 900 85 70
Bubble Point Pressure, Pb (psig) 3000-3900 3370 800 650
Formation Volume Factor at Pi (rb/stb) 1.45-1.95 1.6 1.2 1.1
Oil Compressibility (vol/vol/psi) 15 x 10-6
Original Reservoir Pressure, Pi (psig) 4650 (SE)/ 3450 4264 4264
5770(NE,W)
At Datum Depth of (ft TVDSS) 10075 (SE)/ 7650 9486 9546
12090 (NE, W)
Reservoir Temperature (F) 215-240 160 200 200

Rock Properties
FIELD DESCRIPTION
Rock Type Sandstone
The three fields in the Tartan group are tilted fault block structures.
Stratigraphic Unit Piper Fm Claymore Fm Piper Fm Spey Sand Fm
The Tartan field consists of at least three tilted fault blocks, themselves
Geological Age U. Jurassic U. Jurassic U. Jur L. Cret
Porosity (per cent.) 9-19 16-25 7.25 3.30 highly faulted. The reservoirs in Tartan and Highlander occur in marine
Permeability (md) 0.1-1000 10-629 13-8200 0.1-1200 sandstones of the Upper Jurassic Piper Formation, ranging from 150 to
Average Water Saturation (per cent.) 22-39 19 14 22 450 feet in thickness. Porosities and permeabilities are moderate to
Oil Water Contact (ft TVDSS) 10075 (SE)/ 7650 9486 9546 good, but vary widely in the different fault blocks due to diagenetic
12090 (NE, W) effects. Highlander also has some reserves in the Lower Cretaceous
Depth to Top of Structure (ft TVDSS) 9800 (SE)/ 7200 8500 9040 Spey Sandstones Formation. The reservoir in the Petronella field
11500 (NE,W) occurs in the Upper Jurassic Claymore Sandstone Member, averaging
250 to 350 feet in thickness. Porosities and permeabilities are good.
Reserves The reservoirs contain undersaturated oils whose properties differ in
separate fault compartments. For Tartan and Petronella, the oil viscosity
Total Reserves is low and gas oil ratio varies from 800 to 1600 scf/stb. These
(Oil & NGL, Gas ) (MMstb, Bcf) 116/40 44/20 --------------- 71 ---------------- characteristics yield favourable waterflood conditions, particularly in the
Est. Production to 31.12.95 (MMstb, Bcf) 100/38 36/19 --------------- 64 ---------------- Petronella field Claymore Sandstone Member, where there is good
Remaining Reserves vertical permeability. For Highlander, the gas oil ratio is much lower at
(Oil & NGL, Gas) (MMstb, Bcf) 16/2 8/1 ---------------- 7 ----------------- between 70 to 85 scf/stb, which leads to a higher in situ oil viscosity
which in turn is less favourable for waterflooding.
Production Production began from Tartan in January 1981, from Highlander in
February 1985 and from Petronella in November 1986. Approximately
Water depth (feet) 460 440 -------------- 420 --------------
86 per cent. of the oil and NGL reserves of Tartan, Highlander and
Production Start Date Jan. 1981 Nov. 1986 --------- Feb,1985 ----------
Petronella have been produced. Water injection has been installed on
Peak Production (Oil and NGL) (stb/day) 33000 14000 ------------ 28000 -------------
Platform(s) Steel Jacket Subsea Subsea Template Tartan in order to boost recovery during the latter part of the field's life,
Number of Wells - Producers 12 1 ---------------- 4 -----------------
although gas lift is not being considered. Output has also been
Water injectors 8* 0 ---------------- 1 ----------------- increased by the employment of a new drilling programme expected to
Gas injectors exploit areas of potential throughout the field.
Oil and NGL Export Pipeline Pipeline Pipeline Liquids from the Tartan area are exported to Claymore, mixed with
to Claymore to Tartan to Tartan Claymore crude and then transported to Flotta. Tartan gas deliveries
Gas Export Pipeline started in October 1983. After the Piper Alpha disaster, some of the
to St. Fergus. Tartan gas is now exported to Claymore for gas lift with the remainder
Some gas being sent to St. Fergus bypassing Piper via the MCP-O1 platform.
to Claymore D Prospect, to the west of Tartan may be developed either by a
* + 2 subsea water injectors subsea completion or by a floating production facility tied back to Tartan.
Perth is also likely to be developed as a satellite to Tartan, probably
as a subsea completion with first oil in 1997.
13000 STRATIGRAPHY AND STRUCTURE

125 In the Tartan field, the principal reservoir occurs in the

UNITED KINGDOM
PIPER SAND 00
Upper Jurassic, Piper Formation, with hydrocarbons also

Tartan Area
ABSENT present in the Claymore Sandstone Member. The Piper
Formation sandstones are of Upper Oxfordian to Upper
120
00 Kimmeridgian age. The Piper Formation constitutes the main
11500 producing horizon in the Highlander field, with hydrocarbons
OWC
9, 10
also tested from the Spey Sandstone Formation. The

13
Claymore Sandstone Member is the reservoir in the

12
8

140
000
00
0
00
6 Petronella field. The structure of the Tartan field area includes

00
120
15 A
two highly faulted, tilted fault blocks, developed along the
12000 12000 northeasterly dipping southeastern margin of the Witch
Ground Graben. A broad fault zone, orientated approximately
MAJO west to east across the area, separates the reservoir into two
R LIS ABSENT
105
00 TRIC distinct compartments. These comprise a downthrown block
FAUL
9500 T ZO to the north and an upthrown block to the south. The
NE
structures of the Highlander and Petronella fields are also
tilted fault blocks. Kimmeridge Clay Formation mudstones,
together with thin Claymore Sandstone Member sandstones,
PIPER SAND overlie the Piper Formation and provide seal, source and
TARTAN ABSENT
TOP PIPER SAND 11
reservoir rocks in the Tartan field. The Piper Formation is

10
locally truncated in crestal parts of the structure and is absent

00
DEPTH STRUCTURE

0
OWC 13 in the southeastern corner of Block 15/16.
0 2 km 10
50 16
0
(Contours in feet TVDSS)

14/20 15/16 10 50
0
(After Burley SD, 1989)

SEDIMENTOLOGY AND DEPOSITIONAL INTERPRETATIVE STRUCTURAL CROSS SECTION


ENVIRONMENT
Feet 15/16-7 15/16-8

The Piper Formation sediments in the Tartan


0
field represent the components of stacked,
shoreface progradational sequences and shallow
POST PALEOCENE
marine shoal sandstones. Three major 2000
regressive sequences are recognised, separated
by thin transgressive sequences. Unit 1 4000
comprises a basal unit of offshore marine
mudstones overlain by a sharp-based sequence PALEOCENE
6000
of commonly bioturbated, but generally relatively
clean sandstones. Unit 1 is not present in Wells
15/16-8 and 15/16-5 indicating a depositional 8000
limit of the unit in the north and northeast of the Kimmeridge Clay Formation UPPER CRETACEOUS
area. Unit 2 represents a coarsening-upward,
10000
progradational shoreface sequence. The basal
fossiliferous offshore marine mudstone unit LOWER CRETACEOUS
maintains a consistent thickness throughout the 12000
Claymore Sandstone and
Piper Formation

area. The overlying burrowed and bioturbated Argillaceous Members


sandstones form a thick sheetlike sediment body Pentland/Rattray
14000
Formation
which thickens towards the south and southwest.
0 1 2 km
Unit 3 comprises a stacked sequence of shallow
marine shoal sandstones, commonly burrowed
and bioturbated and organised into coarsening-
upward units in the lower part of the interval. A thin basal marine offshore mudstone Unit 2 and a thick section of Unit 3. The Claymore Sandstone Member comprises
unit is present in the downthrown block, forming a barrier to vertical flow. This generally clean, massive, middle and lower fan sediment gravity flow sandstones
mudstone is absent on the upthrown block, except in Well 15/16-7, which is located with minor, thin interbeds of turbiditic and hemipelagic mudstones.
downflank, to the southwest. In the Highlander field, the Piper Formation comprises

REPRESENTATIVE WELL SECTION - 15/16-9


CORE
DEPTH (feet)

CORE ANALYSIS DATA GAMMA RAY DENSITY


(API Units) ROCK ( g/cc )
DESCRIPTION 0 150 1.95 2.95
CLAY

AGE

LITH INTERPRETATION POROSITY PERMEABILITY CALIPER UNIT NEUTRON


VC

VF

(PERCENT) (md) (Inches) (Limestone units)


M
C

B C P 40 0 0.1 10000 5 25 45 -15

Stacked units of lower to middle and upper


shoreface sandstones forming progradational
and retrogradational sequences.
Geometry
Broad, elongate sheetlike sandbodies oriented
15/16-9 subparallel or oblique to palaeo-shorelines.
12050

( and K
)
and K generally moderate to good, moderate
( to poor in the finer grained, more argillaceous
)
units. Locally reduced due to calcite
UPPER KIMMERIDGIAN? - LOWER VOLGIAN

cementation.

(
)
PIPER FORMATION
HUMBER GROUP

rubble
rubble
12150
12250
RESERVOIR GEOLOGY POROSITY - PERMEABILITY CHARACTERISTICS
15/16-9,10
10000

Tartan Area Unit 3


15/16-6
1000

Unit 2

Unit 1
100

15/16-8

PERMEABILITY (md.)
15/16-5 10
0

15/16-3 1
500 feet

15/16-3A 0.1

0.01
0 10 20 30

POROSITY (per cent.)

The threefold subdivision of the Piper Formation into major regressive sequences forms Porosities and permeabilities are generally moderate to good in
the basis of the reservoir zonation although the field is also compartmentalised into at least the Tartan field. Porosities are typically 10 to 20 per cent. Core
two separate fluid systems by sealing faults. In the Tartan field, Unit 1 ranges in thickness permeability ranges from 60 md to 800 md.
from 47 to 170 feet, forming a sheetlike unit, thickening towards the south and southwest. Porosity and permeability increase with increased grain size,
Unit 2 ranges in thickness from 62 to 220 feet, the basal mudstone forming a laterally sorting and decreased detrital clay content. Superimposed on these
extensive, vertical permeability barrier. The overlying sandstones form a thick sheetlike primary, textural controls are the effects of diagenesis, which are
sediment body which thickens to the south and southwest. Unit 3 ranges in thickness from compaction, cementation and porosity enhancement in the Tartan
8 to 133 feet in the upthrown block and from 189 to 477 feet in the downthrown block. A field. In the downthrown block compaction and quartz overgrowth
basal mudstone unit forms a barrier to vertical flow in the downthrown block, but is generally cementation are the most significant diagenetic effects.
absent in the upthrown block. In general, Unit 3 forms a thick sheetlike unit which thickens Consequently, porosities and permeabilities are generally less than
to the south and southwest. 15 per cent. and 200 md respectively. Locally, pore enlargement due
Unit 1 is absent in the Highlander field as is the mudstone unit at the base of Unit 3. The to quartz corrosion has resulted in permeabilities greater than 1600
Piper Formation forms a single, generally thick, sheetlike sediment body with no significant md. Distribution of such highly permeable sandstones is variable in
restrictions to vertical flow, varying in thickness from 57 to 506 feet. the downthrown block and difficult to predict.
The Claymore Sandstone Member in the Petronella field forms a thick, lobate to In contrast, porosities and permeabilities generally range
sheetlike sediment body with no significant restrictions to vertical flow, as mudstones are between 10 and 21 per cent. and 300 and 200 md respectively in the
likely to be relatively thin and laterally impersistent. The thickness ranges from 247 to 355 upthrown block of the field. The significant improvement in these
feet. reservoir characteristics is mainly due to the lack of significant
compaction and quartz cementation, related to the relatively shallow
burial depth (<10000 feet) concomitant with pore enlargement due to
FLUID PROPERTIES quartz corrosion.
Barite and sphalerite cements significantly reduce intergranular
Tartan and the associated fields contain undersaturated oils of differing properties in porosities and permeabilities in the crestal areas of the Tartan and
separate isolated compartments across the field. Viscosity ranges from 0.2 to 0.5 cp and Highlander fields.
gas oil ratios from 70 to 1600 scf/stb. API gravity varies from 33 to 39 degrees API.

RESERVOIR PRESSURE
2000 2.50 1.5
TARTAN

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