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Reservoir Engineering |
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We undertake a wide variety of reservoir engineering studies though our primary focus tends to be the development of production schemes, reserves assessments and production profiles as the basis for either reserves determinations or field development planning. Such determinations involve the analysis of reservoir fluid data, well performance and history matching; should the field have already been produced. We use the Eclipse simulation suite as our primary software tool in such studies - see below for more detail.
For a resource determination the standard we tend to adopt is Petroleum Resources Management System(PRMS) which is endorsed by the SPE, AAPEG, WPC and SPEE. This standard is increasing being accepted as the norm for oil and gas resource assessment be that for field development planning, raising finance, company valuations or resource statements, or as the basis for selling or acquiring assets.
The term resources in the PRMS system covers both "undiscovered" resources and "discovered" reserves. Reserves are classified as proven (P1), probable (P2) and Possible (P3) and resources are classified as contingent or prospective.
We also have significant experience of the resource classification system used in the countries of the Former Soviet Union; this follows principles established during the Soviet Era but is still widely used in these countries. Resources are classified as A,B,C1,C2,C3 and D under this system.
We also perform determinations to a variety of codes and regulations including those issued by the Securities and Exchange Commmision (SEC), Russian Standards (those adopted by the countries in the Former Soviet Union) and the rules set by various stock exchanges around the world including the Toronto Stock Exchange (TSX), London Stock Exchange (LSE), Johannesburg Stock Exchange (JSE) and Alternative Investment Market (AIM).
Services we offer as a company and via our Reservoir Engineering group include:
- Competent Person Reports
- Reserves Certification
- Reserves Audits
- Unitisation Studies
- Financial Reserves Reports and Determinations
- Annual Company Reserves Statements
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Technology |
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The primary tool we use for reservoir engineering is the Eclipse simulation suite; we have licenses for both:
- Eclipse 100 - black oil simulation
- Eclipse 300 - compostional simulation
Typically these are used in conjunction with a geological modelling tool such as IRAP RMS or Petrel in which the rock matrix or grid is established. This grid is then imported into Eclipse and used as the basis for establishing a dynamic reservoir model which in turn is used to determine optimum well configurations, production schemes, drilling schedules, production profiles and other key features of a development.
Whilst fully versed in the Elipse 100 black oil reservoir modelling tool we have particular expertise. in using Eclipse 300 for modelling:
- Miscible Gas Injection in Giant Pre-Salt Carbonate Reservoirs
- Re-injection of Hydrogen Sulphide in Highly Sour Giant Gas Fields
- Water Alternating Gas Injection Schemes in Consolidated Sandstone Reservoirs
- Carbon Dioxide Enhanced Recovery Schemes
- Hydrogen Sulphide Sequestration and Disposal Schemes
Our modelling is conducted on 64 bit Dell Precision Workstations to minimise computing time and to enable rapid assessment of optimal configurations.
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Project Experience |
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The projects below required reservoir engineering input.
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| Small Gas Field - UKCS |
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| Conducted a reserves verification for a small gas field in the Central Graben of the United Kingdom's section of North Sea. Reviewed production data and used decline analysis to verify 1P and 2P reserves. Provided opinion on the likely impact of encountered production problems on recoverable reserves.
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| Deep Water License Assessment - West Africa |
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| Developed an independent resource and reserves assessment for the Client’s acreage in conformance with the PRMS standard; carried out full seismic interpretation, prepared reservoir assessment and production profiles, developed outline field development plans and also conducted full development and operating cost assessment. Development of the discoveries found in the acreage would require the use of innovative productions solutions. Based on the commercial terms associated with the acreage and the technical and cost assessment described above developed an independent valuation . Also carried out a full prospectivity assessment of the acreage based on recently acquired 3D seismic data.
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| Gas Property Reserves Validation - Hungary |
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| Carried out a reserves verification on a portfolio of gas condensate and non-associated gas properties in Hungary. Carried out performance evaluations on a number of wells; used decline analysis to confirm 1P estimates of recoverable hydrocarbons made by another firm. Provided opinion on the veracity of the independent reserves report and its suitabilility as the basis for providing finance.
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| Field Development Financing - Norway |
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| Carried out a reserves verification to PRMS standards as part of a technical due diligence assessment of this complex gas condensate field complete with oil rim located in the Norwegian sector of the North Sea. Also carried out a risk assessment on well performance, project schedule and project costs. Advised the client on technical risks associated with the project and the banking case profiles that should be adopted.
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| Private Equity Fund - Europe |
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| Performed reserves determinations and valued a number of offshore West Africa oil and gas properties for a Fund Equity Fund Prospectus. Determined fund price strategy based on fixed internal rate of return criteria.
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| Early Gas Utilisation Study - Sudan |
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| Carried out the upstream section of gas utilisation study designed to establish if implementation of an early gas power generation scheme in the license area was technically and economically feasible.Developed a reservoir simulation model for the discovered fields and established a field development plan for the production of gas suitable for power generation.The plan included a scheme to recover associated liquids and to produce LPG for local consumption. Carried out costing and economic analysis of the upstream scheme to establish the optimum production scheme.
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| Reserves Certification – Kazakhstan Property |
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| Carried out a preliminary and detailed reserves certification and valuation for a small oil field in Kazakhstan’s Pre-Caspian basin. Developed a seismic interpretation and used available well log and test data to develop a reserves determination to PRMS standard.The Certification was used as part of an investment funding process designed to establish funds for development of the field and to carryout further exploration of the license area. Also developed an exploration plan for further evaluation of the license area including deep pre-salt carbonate structures.
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| Worldwide Mega-project Analysis |
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| Carried an analysis of international Oil and Gas Mega-projects for a National Oil Company. The work sought to establish how government bodies particularly national oil companies interacted with international oil companies carrying out very large projects in their countries. The work focused on establishing:
• How government bodies organised themselves with respect to such projects
• The procedures and strategies adopted by government entities in controlling such projects
• The relative performance of such projects in various area around the world.
The work focused on four geographic regions: Western Europe, Middle East, South America and South East Asia
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| Exploration Support and Planning - Europe |
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| Formed an integrated geophysics, geology, reservoir engineering and economics team for the Client during the development of a free standing Exploration and Production (E&P) group in the company. Carried out extensive technical consultancy associated with key E&P operations including:
• Assessment of license areas during government bid rounds and the preparation of technical and commercial bids.
• Attendance at data rooms including technical and economic analysis of potential acquisition targets along with preparation of technical and commercial bids and participation in negotiations.
• Detailed assessment of acquired license areas from a geophysical and geological aspect. Analysis of available seismic, well and regional geological data.
• Planning of seismic acquisition campaigns either as infill seismic or Greenfield. Supervision of campaigns and the processing of acquired seismic data. Reprocessing of available seismic data.
• Field assessment to establish reserves in accordance with the PRMS system and conceptual field development plans.
Presented plans for all stages of the work to the company’s management seeking approval through an Approval For Expenditure system. The work was focused primarily both onshore and offshore in a Central European belt stretching from the North Sea through to Black Sea; also covered other areas including North Africa.
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| Asset Acquisition - Kazakhstan |
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| Assisted a Client looking to acquire a share in of a number of assets in western Kazakhstan, in the Pre-Caspian Basin and the Mangyshlak. Carried out full technical and economic evaluations of each asset including: seimic interpretation verification; geological model validation; development of independent PRMS assessment including 1P, 2P and 3P reserves and contingent resources; review of detailed Field Development Plans (in Russian); detailed cost verification and assessment; asset valuation including Net Present Value and Fair Market Value - the latter was based on Bayphase'proprietary data base of Kazakhstan oil field equity transactions. Assisted the Client in making his acquisition decisions and development of his acquisition strategy.
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| Loan Facility Evaluation - Ivory Coast |
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| Carried out a technical evaluation of a deep water turbidite field being used as collateral for a loan facility. Assessed reserves and production risks associated with the field. Focussed on assessing potential well failure sand ingress in screened and gravel packed wells.
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| Reserves and Resources Audit - Nigeria |
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| Carried out a Reserves and Resources Audit in accordance with the PRMS system for an offshore license block in Nigeria. Established reserves, contingent and prospective resources through analysing seismic and well data. Work included verication of seismic interpretation and a probabalistic assessment of reserves. The audit formed the basis for the Client's unitisation discussions with the operator of an adjacent block. The Client also used the report as part of his initial finance raising program.
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| Reserves/FDP - Baltic Sea |
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| Implemented an assessment for a field in the Baltic Sea. Prepared seismic interpretation, geological model and reservoir model. Developed reserves assessment in line with the Petroleum Resource Management System (PRMS). Went on to put together a conceptual Plan for Development of the Field. Carried out an economic assessment on the field as part of an options screening and valuation process.
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| Field Evaluation - Tunisia |
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| Carried out an independent reserves assessment for a client looking to farm-in to a license offshore Tunisia. Carried out a probabilistic reserves assessment to SPE guidelines. Also carried out a full Field Development Plan validation; assessed plan was technically feasible, that costs met industry norms and that the economic assessment was valid.
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| Project Financing - Libya |
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| Identified companies active in Libya for a Group offering finance for E&P operations in that country. Went on to carry out independent reserves assements on selected licenses, field development planning reviews and independent budget and cost assessments. Also performed economic analysis and technical and economic risk assessment.
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| Reserves and FDP Assessment - Nigeria |
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| Carried out a reserves assessment on an onshore Nigeria gas field to SPE standards; established 1P and 2P reserves. Went on to develop conceptual field development plan for the reserves as part of a gas utilisation project. Developed a full cost and economic assessment for the development program.
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| Project Re-financing - North Sea |
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| Provided technical support to a Bank acting as part of a consortium providing refinancing to an E&P company active in the UK sector of the North Sea. Assessed production and other data from the 1 producing fields and 2 undeveloped fields that formed the re-finacing collateral. Performed Independent reserves determinations and assessments of production forecasts to ensure that a solid collateral basis had been established. Identified the key technical risks associated with the reserves assessments and production operations; advised on contingencies to be considered in the refinancing.
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| Reserves Determination Seminar |
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| Developed and implemented a Reserves Determination Seminar for a Major FSU State Owned Company. Covered all aspects of the approach adopted in the West to determine reserves for asset based financing. Subjects covered included Society of Petroleum Engineers Standards, Monte Carlo analysis and the range of techniques used to determine the value of reserves for financial purposes including discounted cash flow and market valuation.
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| Project Financing - Russia |
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| Provided technical support to a Bank assessing the risks associated with making a loan to a company developing a gas condensate field in the Volga Region of Russia. Performed an Independent reserves determination as the basis for establishing the technical risks associated with the investment. Reviewed and critiqued: reserves report, information memoranda, Competent Person Reports and other information forming the technical basis for the loan.
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| Project Financing - Kurdistan |
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| Identified companies active in Kurdistan for a Group offering finance for E&P operations on the newly established licencing areas and under agreements established by the Kurdistan Regional Government. Went on to perform technical due dilligence on agreed financings; this consisted of independent reserves assements, field development planning reviews and independent budget and cost assessments. Also performed economic analysis and technical and economic risk assessment.
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| Field Development Study Deep Water |
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| Carried out a deep water field study for license area in the Middle East. The exploration prognosis was that outcomes could range from small to medium sized oil fields through to medium sized non-associated gas fields. Developed range of potential reserves and then established viable field development plans for each reserve size. Prospects were sited close to shore in 3,000m water depth; fully costed each development plan using Bayphase's cost estimating tool - NetCo$ter.
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| Heavy Oil Field Assessment - Kazakhstan |
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| Carried out an assessment for a potential investor of a large heavy oil field in Kazakhstan. Reviewed the production system and technology current applied to assess its efficiency comnpared to comparable international projects. Advised on the production and reserves gains that might be acheived through the application of new heavy oil technology including Steam Assisted Gravity Drainage,Cyclic Steam Stimulation and Vapour Extraction
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| Project Financing Western Siberia |
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| Provided technical support to a Bank assessing the risks associated with making a loan to a company developing an oil and gas field in Western Siberia. Reviewed reserves determinations, production data, development schedule and the risks associated with each of these to establish the Banking Case. Effectively a conservative view of the reserves associated with the field against which the loan could be collaterised.
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| Equity Farm-out - Offshore Ghana |
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| Contracted to farm-out part of the equity in a highly prospective block in Ghana. Performed a pre-sale evaluation on the block including a reserves evaluation and a valuation based on the Petroleum Agreement terms. Went on to prepare and run the technical data room, receive and analyse bids and to assist in negotiations with selected bidders. The Farm-out was successful concluded in March 2009, our client and the Farminee or now proceeding to carry out the work program for the block - for futher information contact us.
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| Due Diligence Offshore West Africa |
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Conducted technical due diligence for a bank, which as part of a consortium, was providing finance to an operator developing a small offshore oil field. Issues covered included: minimum recoverable reserves verification,schedule risk, technical risk associated with the production system - wells and FPSO.
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| Equity Farm-out Nigeria |
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Mandated to farm-out equity in an offshore license in Nigeria's shallow water Niger Delta. Prior to marketing the license conducted an appraisal of available seismic and well data to establish prospectivity of the license block. Prospectivity assessment included conducting a seimic interpretation and a geological assessment based on available data. The assessment of reserves potential assessment was conducted on a probabalistic basis.
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| Offshore West Africa Independent Assessment |
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Conducted an INDEPENDENT assessment of a report used as the basis for receiving bank finance for development of a shallow water offshore field in west Africa. Critiqued the technical and cost statements in the report and developed a reserves assessment to Society of Petroleum Engineers standards based on available data.
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| Zelten/Nasser Field Evaluation |
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Conducted an assessment designed assess the reserves associated with a potential redevelopment of this field in Libya. Scope included developing a full field description, a deterministic reserves assessment and a cost estimate for redevelopment of the field.
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| Upgrade of Independent Reserves Assessment Giant Carbonate Field |
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Contracted to upgrade an earlier completed independent reserves assessment based on newly acquired seismic and well data. The project included interpreting the 3D seismic dataset, upgrading a static geological model and a reservoir model. The key achievement was the confirmation of additional reserve potential in the main structure.
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| Field Development Plan - Sour Gas Fields |
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Developed a Field Development Plan for two large sour gas fields (30% Hydrogen Sulphide and 10% Carbon Dioxide)as part of a license bid submission. The plan utilised all aspects of Bayphase's INTEGRATED team approach and include seismic interpretation and mapping, geological model development,reservoir modelling, facilities and process engineering assessments, cost estimating and finally economic assessment. Work included a full reassessment of reserves both on a probabalistic and deterministic basis
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| Gas Condensate Field Reserves Assessment and Valuation |
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Reviewed the available data for two gas condensate fields and developed an independent reserves assessment and asset valuation for a client interested in purchasing the property. Work included working with Soviet data and conducting geological, reservoir engineering and economic assessments
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| Reserves and Prospect Assessment - Iraq |
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Developed an inventory of all know fields and prospects in Iraq. For know fields assessed current reserves and their potential upside through additional exploration whether they were currently producing or not. Conducted the work on a basin by basin basis assessing the Mesopotamian, Zagros Fold Belt and Western Desert area individually. Also conducted assessments of existing infrastructure and field facilities. Provided the client with a prospectivity assessment tailored to his requirements that allowed him to develop a country entry and exploration strategy.
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| Prospect Assessment Offshore License |
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Contracted to complete an independent reserves assessment of 10 major prospects in an offshore license area amounting to 6 Billion bbls of reserves. The project included interpreting the 3D seismic dataset, developing static geological models, reservoir models and field development plans that formed the basis for valuation.
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| License Dispute - Russia |
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Developed a Petroleum Expert Witness report and acted as an expert witness during arbitration proceeding with respect to a disputed unitisation claim affecting two adjacent licenses onshore western Siberia. The transaction occurred some 8 years ago. Required to make a retrospective assessment of reserves as the basis for testing the compensation claim of one of the parties to the dispute.
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| Independent Reserves Assessment Giant Carbonate Field |
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| Completed a full field reserves assessment for a giant crabonate field. This provided an independent check of assessments conducted by international oil companies resonsible for its development. The project included interpreting the 3D seismic dataset, building a static geological model, a dynamic reservoir model, developing probabalistic and deterministic reserves assessments. The results were used as the basis for determining production bonus.
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| Independent Reserves Assessment - Heavy Oil Prospect |
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Developed a reserves assessment, based on 2D seismic data and regional field data for a potentially 22-26ºAPI offshore, shallow water prospect. Also carried out a field development planning assessment that included establishing cost for all phases exploitation of the potential field including exploration, appraisal, development, operations and abandonment.
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| Onshore Azerbaijan Field Dispute. |
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Developed a petroleum expert witness report with respect to a dispute over two medium sized onshore oil fields, developed in soviet times but taken over by western investors. The report included an independent assessment of reserves, production profile and levels of investment required to develop the fields to their full potential. The assessment was based on a detailed review of production and other data gathered in Soviet times up to the present day.
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| Acquisition Support FSU |
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Provided support to an operator interested in making acquisitions in the FSU the work included conducting basin studies, identification and assessment of prospective targets. Assessments generally included generating of reserves assessments and outline development plans in order to test the economic viability of a given acquisition target.
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| Entry Strategy - Algeria |
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Developed an entry strategy for a new entrant based on the company's extensive knowledge of Algeria its producing fields and prospective license areas. The strategy focused on gas and developed a strategy to access concessions with reserves potential of at least 3 TSCF.
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| Offshore Morrocco Heavy Oil |
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Developed a preliminary field development plan a heavy oil accummulation offshore Morrocco at 80m water depth. The assessment considered production methods appropriate for this remote site and for a recoverable reserve of between 25 and 45 million bbls. The scheme also considered export options for the crude. A capital and operating cost estimate and schedule was developed which was used to assess the economic attractiveness of the opportunity.
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| Offshore Sour Oil Field - Libya |
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Developed a preliminary field assessment for an offshore prospect in Libya. The accummulation was thought to potentailly contain around 70 million bbls of oil but was potentially sour - upto 2% hydrogen sulphide. The assessment considered a number of methods to develop the field focussing particularly on the possible means of handling the highly sour associated gas which was expected to be produced. A number of capital and operating cost estimates and schedules were developed to assess the economic attractiveness of the opportunity.
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| Petroleum Expert Witness Report - Heavy Oil Field |
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Developed a petroleum expert witness report for an onshore heavy oil field. The report assessed reserves, likely production rates and surface facilities required for this shallow depth development. A notable feature of the work was a cosideration of the need to deploy steam injection to produce the field to achieve resonable recoveries. The assessment was used by the expert witness for the defence under a claim pursued under UNCITRAL rules at the Arbitration Institute of the Stockholm Chamber of Commerce.
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| UKCS Heavy Oil Development |
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Implemented a study considering the application of heavy oil extraction techniques developed in the UKCS to a giant field prospect situated. The study focussed on the latest techniques being adopted by operators in the North Sea for the development of heavy oil fields. The study's main focus was production - well design, transportation - use of oil water emulsions particularly - and productions - primarily oil separation and treatment. This work included assessing the economic benefit that would result through applying these techniques to a giant field containing oil of 20-22 API.
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| Privatisation - Regional Oil Company |
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Acted as technical and commerial advisor during the sale of 30% of a regional oil company in the Former Soviet Union. The units asset base included 1.25 billion barrels of proven reserves, upstream production plant, a refinery and oil transporation networks. Prepared sales documentation for the asset, sought out buyers and ultimately arranged disposal of the equity.
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| Field Development Plan Gas Condensate Field |
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Developed a deterministic reserves assessment and field development plan for a large gas condensate field. The assessment included developing a subsurface and surface facilities plan from a series of complex reservoirs. Made an evaluation of appraisal, development and operating expenditures for economic assessment.
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| Licensing Seminar - National Oil Company |
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Developed and presented a seminar on prospect evaluation, lcensing and local industry involvement for a West African NOC. The seminar was designed to show the companies personnel how geophysical analysis and prospect evaluation could be used to assist in the licensing process. A key feature of the seminar was the development of strategies to engage local oil companies and oil industry supplies in the license exploitation process to allow the country to benefit as much as possible from oil industry activities conducted on its soil.
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| Privatisation - National Oil Company |
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Conducted a reserves assessment and prepared the upstream technical input for bid related to the privatisation of the gas assests a European national oil company. Conducted geophysical, geological and reservoir engineering assessments of the bid data and carried out site investigations. The asset base consisted of a number of aged fields that required significant rehabilitation.
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| Type IV Cost Estimate - Ultra Deep Offshore Prospect |
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Developed a Type IV cost estimate for an ultra deep water oil prospect offshore Sierra Leone.he assessment considered production methods appropriate for this remote and ultradeep water site - 1,800m - and for a recoverable reserve of between 250 and 750 million bbls. The scheme also considered exploration abd appraisal drilling options for the prospet. A capital and operating cost estimate and schedule was developed which was used to assess the economic attractiveness of the opportunity.
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| Reserves Evaluation Dawes Island |
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| Conducted a technical reserves evaluation on this field which was due to be licensed as part of Nigeria's marginal field round. Analysed available 2D seismic and well data to develop a deterministic reserves estimate. Also generated outline field development plan and valued the field. Went on to submit formal bid to receive the license to the the Nigerian government on behalf of the client.
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