Session 3: Regional players and upstream strategies

Vince Hamilton

New techniques applied in the development and exploration of

Block 15, Oman

Tethys Oil Locations

Tethys Oil 2007 Activity

Spain, drilling in March

France, drilling in Q3

Morocco, license award

Turkey, seismic acquisition

Oman, drilling in March

Block 15 Location Map

Ibri

BVS 5Compressor

Lek6

Lekhwair-Fahud

24" oil pipeline10" gas pipeline 6" oil

8" o

il

10"

oil

10"oil

planned12" gas

2x10" oil

32" Fahud-Sohar gas pipeline

6" gas

8"oil

4" g

as

d Mina Al Fahal

32" gas line

to Sohar

12" gas

10" Jebel Khuni-

Sohar gas

16" g

as

Naga-1

1

Bushra-1

Mezoon N-1

4

1

4

HamratDuru-3

MaqhulSouth-1

3

4

1

A'Qualah-1

1

2

2

3

1

1

2

Wadi Latham West-1

4

Muqay-ridah-1

1

1

1

2

81

1

Muwaithil-2

4

Sharqi-1

6

2

33

Firiyah-1

Masdar-1

5

1

70

2

1

86

85

1

80261

Masroor-1

4

7

7

11

Sabkha-1

2

Suneinah-2X

12

1

Milhah-1

Thumayd 1

Al Aroos-1

1

1

Anaima-1

Hebah-1

1

Mezoon

Dhiya

Safah SW

Marad Ladah

Jalal N

MaradHuraymah

Jalal E

Suqtan

South Safah

Lekhwair East

Mazrouq

Khamilah Nadir

Wadi Zibra

WadiRafash

Haban

Haseel

Jalal FE

DHULAIMA

AL BARAKAH

SHIBKAH

MADIQ

NATIH WESTHafar

JADWAL

DALEELSHADI

WADILATHAM

SHAMS

BADRRAWDAH

SAFAH

LEKHWAIR

NATIHFAHUD WEST

JAHLAHSALMAH

Al Sahwa

Medco Energi

Medco Energi

PetrogasAnadarko

Occidental

PTTEP

Occidental

Wadi Aswad(Block 27)

Hafar(Block 30)

Suneinah(Block 9)

Dhahirah(Block 43)

JebelHammah(Block 47)

Wadi Aswad(Block 5)

Shams (Block 44)

Suneinah North (Block 31)

JebelAswad(Block 15)

U

.A.E

.Ab

u Dh

abi

OM

AN

SAUDI ARABIAOM

AN

55°30'E

55°30'E

56°E

56°E

56°30'E

56°30'E

57°E

57°E

22°3

0'N

22°3

0'N

23°N

23°N

23°3

0'N

23°3

0'N

24°N

24°N

0 20 4010Km

• 2500 km old 2D seismic

• 2 wells drilled in 1990s

• JA-1 tested 40 deg oil

• 32” gas pipeline cross block

• On trend with oil and gas fields

• Active drilling and appraisal

wells by OXY to south and west

• Indago active with exploration

to north and east

Block 15 Surrounding Concessions

Wood MacKenzie, 2004

Indago

Indago

IndagoDaleel

El Jariyal-1x Spud 1/07

PTD 5,800m

Target Natih, Themama 1 BBOE

March 1997

IHS Energy Map Aug 2006

Block 15 Surrounding Fields

Wadi Rafash-2 2006Oil Prod Shuaiba

Block 15 Surrounding Wells

Block 9 Cross Section

Block 9 Safah Field Horizontal Well

Block 9 Salmah Field

Block 9 Photos

Wadi Latham Facilities

Wadi Rafash Facilities

PTTEP Shams Field 8 wells Dec 06PTTEP Shams Field 8 wells Dec 06

• Producing 50 mmcfd + 4,000 bcpd

rising to 100-120 mmcfd + 10,000bopd

• Gas, condensate and oil found

• Shams #4 29 mmscfd + 1,770 bcpd

6.7 mmscfd + 7,880 bopd

Block 44 Shams Field

Multi-lateral Horizontal Well

Multi-lateral Horizontal Well

Multi-lateral Horizontal Well

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

SR153 Leg 3 (OB)SR153 Leg 4SR153 Leg 5

SR153 OverallSR164 Leg 1SR164 Leg 2SR164 Leg 3

SR164 OverallSR173 Leg 1SR173 Leg 2SR173 Leg 3SR176 Leg 3

SR176 OverallSR180 Leg 3SR180 Leg 4SR180 Leg 5

SR180 OverallSR182 Leg 1SR182 Leg 2SR182 Leg 3

SR182 OverallSR183 Leg 1SR183 Leg 2SR183 Leg 3SR183 Leg 4SR185 Leg 1SR185 Leg 2SR185 Leg 3

SR185 OverallSR190 Leg 1SR190 Leg 2SR190 Leg 3SR190 Leg 4SR190 Leg 5

SR190 Overall

Productivity Improvement Factor (PIF)

Conventional WellProductivityIncremental UBDProductivity

Underbalanced Drilling Results: Saih Rawl Oil Field, Oman

Sajaa UBD Campaign- Production Performance to Date

0

1

2

3

4

5

6

7

Sajaa 3 Sajaa 15 Sajaa 7 Sajaa 16 Sajaa 4 Sajaa 32 Sajaa 17

PIF

Productivity Improvement Factor (PIF) = Production after UBD laterals / Production before UBD laterals

SPE 89644 Paper (Pruitt, et. al.)

Underbalanced Drilling Results: Sajaa Gas Field, Sharjah

• Originally part of Suneinah concession of Gulf-Quintana.• BP acquired first modern seismic data in 1985.• Arakis/Conquest shot 425 km seismic in 1991.• Jebel Aswad-1 well drilled in 1993/94. Tested (no flow) & suspended.• JA-1 well re-entered in 1995. Stimulated and flowed over 200 bbl of 40 deg API oil. • Wadi Saylah-1 drilled in 1997. Not tested.• Novus reprocessed seismic between 2000 – 2004.• GotOil Resources (Oman) Limited secured block on October 23, 2005.• Tethys Oil AB acquired GotOil (Oman) in May 2006.

Block 15 History

• Regional Structural Review Investigating Fracture Orientation

• Source Rock Potential, Sub-Regional Facies Distribution & Models

• Analogue Fracture and Horizontal Completion Techniques

• Justification for Appraisal Drilling of Natih and ShuaibaFormations

• Petrophysical Evaluation of the Jebel Aswad Prospect

• Seismic Interpretation on 79 2D Seismic Lines in progress

• Test reprocessing including PSDM and AVO

• Regional Play and Migration Study

Block 15 G & G Work Completed

Jebel Aswad-1

Wadi Saylah-1

• 1389 square kilometers

• JA-1 and WS-1 drilled in 1990s

• JA-1 tested 40 deg oil

• 2500 km 2D seismic

Block 15 Seismic Base Map and Well Locations

Block 15 Seismic Reprocessing Results

Block 15 Prospects and Leads

Wadi Rafash-2x proj.Oxy 2006Shuaiba Oil producing from oil legTD 3,258m

Wadi Rafash-1 Gulf 1981Shuaiba Gas/CondDisc TD 3,170m

ShuaibaBank

Natih

Shuaiba

Jebel Aswad Interpretation 2006

Block 9 Analogue Field of Wadi Rafash

Block 15 Petrophysical Analysis of JA-1 Well

Jebel Aswad-1 Natih A/B OWC

Jebel Aswad-11993, TD 11776’

Horizontal legs

Block 15 Jebel Aswad Structure

JAS-1

Block 15 Cross Section Of Well Re-entry

• Subcontracted from PTTEP

• 2,000 horse power

• 6,000 meter depth capacity

Dalma Drilling Rig #3

► Regional geological understanding improves fracture and reservoir predictions► New seismic reprocessing algorythms enhance fault identification► Petrophysical analysis identifies pay zones► Drilling technology advances in three areas:

horizontal, multi-laterals and under-balanced► Horizontal wells cross multiple fracture zones increasing deliverability and

recovery► Multi-laterals allow production of more than one zone► Under-balanced drilling advantages:

No reservoir formation damageInstantaneous production informationImproved productivity over normal wells

► Old discovery wells e.g Wadi Rafash, Khamilah, Shams being succesfully developed across region with these techniques

► Re-entry of Jebel Aswad-1 to test commerciality with underbalanced horizontal legs of Natih and Shuaiba

Conclusions