Canadian Petroleum Geology

Petroleum exploration, appraisal, development and production

A “pre-spud” assignment given to each well based on the geological complexities and the known existence of hydrocarbon accumulations (pools) in the area where the well is to be drilled

Lahee Classification

Who is the Lahee classification system named after?

Jim Lahey

Lahee classifications are assigned by the _____.

AER

What is the primary piece of information that is conveyed by a given well’s Lahee classification?

The well’s degree of risk of geological failure

AER definition: The objective of this kind of well is the discovery of a new pool. The well is located in an already discovered field.

Amir’s slide from 1944 definition: Drilling outside limits of a proved area or pool

New Pool Wildcat (NPW)

• very high geological risk

AER definition: A well that is located a considerable distance beyond the limits of known pools and is outside the boundaries of existing fields. Drilled in an area where hydrocarbons have not yet been discovered.

Amir’s slide from 1944 definition: Drilling for a new field on a structure or in an environment never before productive

New Field Wildcat (NFW)

• very high geological risk

Group the following into 2 categories:

1) Economics not important

2) Economics very important

• Prospect

• Petroleum System

• Sedimentary Basin

• Play

Economics not important:

• Sedimentary basin

• Petroleum system

Economics very important:

• Play

• Prospect

A mapped or partly mapped structure which is a possible drilling target but requires further understanding due to it’s insufficient existing data.

Lead

• essentially a “geological idea”, based on regional geology, where you might find a potential petroleum system.

• key words: insufficient existing data

Is defined as an economically important zone with possible combination of Source rock, Reservoir and Top Seal. It may or may not have any discovered pool.

Play

• more broad than a prospect

• ex: Montney Play, Cardium Play, Duvernay Play

Is an important and drillable area in which hydrocarbons have been predicted to exist based on an identified petroleum system (trap, reservoir, seal)

Prospect

• keywords: drillable area; an identified petroleum system

• prospects are located inside plays

• ex: a mapped anticlinal structure within the Cardium Play

After drilling, a prospect becomes either a __________ or a _____________.

dry hole

discovery/producing field

A geologically favourable corridor or zone where conditions are ideal for the accumulation of hydrocarbons

Hydrocarbon fairway

The trend along which a particular geological feature is likely

Fairway

• ie. sand fairway, hydrocarbon fairway

Drilled to exploit or develop a hydrocarbon accumulation discovered by previous drilling

Development well

Earning a % interest in a competitor’s subsurface land rights by doing work (seismic, drilling).

Farm-in

Owning the subsurface rights and agreeing to another company’s farm-in offer.

Farm-out

This includes a list of all the formations that are expected to be encountered during a drilling operation, including depths and rock types

Geological Well Prognosis

Which of Canada’s 7 hydrocarbon regions contains the most conventional hydrocarbon resources?

Western Canadian Sedimentary Basin (WCSB)

• estimated at 57% of total Canadian conventional resource

Which of the 7 Canadian hydrocarbon regions has had a moratorium on drilling and exploration since 1972?

Offshore BC (Pacific Margin)

Which 2 basins make up the Arctic Margin hydrocarbon region?

1. Beaufort-MacKenzie basin

2. Norman Wells oil field (NWT)

Located in the Northwest Territories, what type of reservoir is the Norman Wells Oil Field?

Devonian Reef Limestone Kee Scarp

Which basin is located in the Arctic Archipelago hydrocarbon region?

Sverdrup Basin

What are the 7 hydrocarbon regions of Canada?

1. WCSB: 57%

2. Atlantic Margin/ Maritime Provinces:18%

3. Arctic Archipelago: 10%

4. Arctic Margin: 6%

5. Pacific Margin (offshore BC): 4%

6. Intermontane (onshore B.C. and Yukon): 3%

7. Eastern Cratonic (Ontario, Hudson Bay): 2% 

   • percentage of estimated conventional hydrocarbon resources shown

In which hydrocarbon region are all of the following 4 basins located:

• Queen Charlotte

• Georgia

• Tofino

• Winona

Offfshore BC (Pacific Margin)

What is the world’s largest offshore oil platform, and where is it located?

Hibernia (offshore Newfoundland)

• actually no longer the largest - largest is in Russia

The following 4 oil fields are all located in which basin?

• Hibernia Oil Field (considered a “Giant”)

• White Rose Oil Field

• Terra Nova Oil Field

• Hebron-Ben Nevis Oil Field

Jeanne D’arc Basin (offshore NFLD)

• In the Atlantic Margin/Maritime Provinces region

The Sable Field is a ______ field located offshore of which Canadian province?

natural gas

Nova Scotia

This is a large natural gas field that has been discovered offshore of Labrador

North Bjarni Field

What is the name of the hydrocarbon region that spans Ontario, the Hudson Bay, and Quebec?

Eastern Cratonic Basin

What is the max thickness of the WCSB?

6000m

Categorize the following WCSB formations as either sandstone or limestone, and indicate their age:

• Cardium

• Nisku

• Leduc

• Viking

Sandstone:

• Cardium (Cretaceous)

• Viking (Cretaceous)

  • Viking below Cardium

Limestone:

• Nisku (Upper Devonian)

• Leduc (Upper Devonian)

In terms of petroleum geology, what is one very important feature of the WCSB?

The presence of many stratigraphic traps

What are the top 2 hydrocarbon regions in Canada in terms of total conventional resource?

1. WCSB (57%)

2. Atlantic Margin / Maritime Provinces (18%)

Off which Canadian coast is the geology characterized by the presence of trenches, volcanic arcs and high seismicity?

West Coast

Off which Canadian coast is the geology characterized by the presence of sedimentary sequences of up to 20 km in thickness?

East Coast

What is the difference between a play and a prospect?

Briefly describe the role of government in Canada’s oil and gas industry

• Ensure that oil and gas resources are explored for, developed, and produced in accordance with environmental, safety and conservation regulations.

• Establish royalty and taxation regimes applicable to the industry.

What are the differences between proved, probable, and possible reserves?