Deep Gas Reservoir Play, Central and Eastern Gulf Summary Introduction Petroleum System Analysis Resource Assessment Exploration Strategy Introduction Gulf Coast Interior Salt Basins Gulf Coast Interior Salt Basins Stratigraphy Petroleum System Analysis Petroleum Source Rocks Upper Jurassic Smackover lime mudstone beds served as an effective regional petroleum source rock Upper Cretaceous Tuscaloosa Marine shale beds served as a local source rock Upper most Jurassic and Lower Cretaceous beds were possible source rocks Burial History North Louisiana Salt Basin K’ Cross Sections Location N North Louisiana Salt Basin Cross Section S VE: 32X Burial History Profile North Louisiana Salt Basin API: 1706920079 - Sediment accumulation rates were greatest in the Jurassic (196-264 ft/my) - 50-60% of the tectonic subsidence occurred in the Late Jurassic (135-157 ft/my) North Louisiana Salt Basin, Sabine Uplift Cross Section N S VE: 22X Burial History Profile NLSB, Sabine Uplift North Louisiana Salt Basin, Monroe Uplift Cross Section N S VE: 30X North Louisiana Salt Basin Cross Section W E VE: 22X Burial History Profile NLSB, Monroe Uplift Mississippi Interior Salt Basin Cross Section Location Mississippi Interior Salt Basin Cross Section N S VE: 16X Burial History Profile Mississippi Interior Salt Basin Thermal Maturation and Expulsion History North Louisiana Salt Basin Cross Section Location K’ Model Calibration Thermal Maturation History Profile North Louisiana Salt Basin Thermal Maturation Profile Cross Section North Louisiana Salt Basin Average Maturation Depth 6,500ft 12,000ft Hydrocarbon Expulsion Profile North Louisiana Salt Basin Peak Oil Peak Gas Thermal Maturation History Profile NLSB, Sabine Uplift Hydrocarbon Expulsion Plot NLSB, Sabine Uplift Thermal Maturation History Profile NLSB, Monroe Uplift Hydrocarbon Expulsion Plot NLSB, Monroe Uplift Mississippi Interior Salt Basin Cross Section Location Thermal Maturation History Profile Mississippi Interior Salt Basin Thermal Maturation Profile Cross Section Mississippi Interior Salt Basin Average Maturation Depth 8,000ft 16,000ft Hydrocarbon Expulsion Plot Mississippi Interior Salt Basin Peak Oil Peak Gas Comparison of NLSB and MISB Modified from Mancini et al. (2006a) Event Chart for Smackover Petroleum System in the North Louisiana and Mississippi Interior Salt Basins Geologic Model SSW-NNE Section (B-B’) Oil Migration SW-NE Section (B-B’) Gas Migration SW-NE Section (B-B’) Gas Migration at 99 Ma SW-NE Section (B-B’) Geologic Model NW-SE Section Gas Migration Profile NW-SE Section Gas Migration at 99 Ma NW-SE Section Geologic Model N-S Section Oil Migration N-S Section Gas Migration at 99 Ma N-S Section Geologic Model N-S Section (Monroe Uplift) Oil Migration N-S Section (Monroe Uplift) Gas Migration at 52 Ma N-S Section (Monroe Uplift) Resource Assessment Production Data Production Data Methodology for Resource Assessment Schmoker (1994) The mass of hydrocarbons generated from a petroleum source rock can be calculated by using the following equations: 1. (TOC wt%100)(FD)(VU) = MOG 2. HI Original – HI Present = HG 3. (MOG) (HG) (10-6kg/mg) = HCG Where: TOC = total organic carbon FD = formation density VU = volume of unit MOG = mass of organic carbon HI = hydrogen index HG = hydrocarbons generated per gram of organic carbon HCG = hydrocarbon generated by source rock unit Key Parameters Basin Parameters NLSB Platte River Software — Gas Generated TOC = 1.0% Type II kerogen Transient heat flow 6,400 TCF By P. Li NLSB Platte River Software — Gas Expelled TOC = 1.0% Type II kerogen 1,280 TCF By P. Li MISB Platte River Software — Gas Generated TOC = 1.5% Type II kerogen Transient heat flow 3,130 TCF By P. Li MISB Platte River Software — Gas Expelled TOC = 1.5% Type II kerogen Transient heat flow 843 TCF Saturation threshold = 0.1 By P. Li Comparison of Hydrocarbon Generation & Expulsion Volumes Method North Louisiana Salt Basin Mississippi Interior Salt Basin Generation Schmoker (1994) Generation hydrocarbon (bbls) 2,870×10 Oil (bbls) 832×109 Gas (TCF) 9 14,177 Generation hydrocarbon (bbls) Platte River Software Gas (TCF) 9 1,715×109 6,400 Expulsion Saturation Threshold Gas (TCF) Oil (bbls) 580×109 Gas (TCF) 4,050 hydrocarbon (bbls) 1,540×109 Oil (bbls) 1,090×109 Gas (TCF) 3,130 Expulsion 0.1 Oil (bbls) 910×109 Generation 2,640×10 Oil (bbls) hydrocarbon (bbls) Saturation Threshold 9 970×10 1,280 Oil (bbls) Gas (TCF) 0.1 442×109 843 Modified from Mancini et al. (2006b) Gas Resource Potential Secondary Gas Resource Basin Gas Generated (TCF)* Gas Potentially Available (TCF)** Gas Produced (TCF) NLSB 4,800 48 to 240 29 MISB 2,350 23.5 to 115.5 13 *Assuming that 75% of total gas calculated with the Platte River Software Approach is from late cracking of oil in the source rock. **Assuming a 1 to 5% efficiency in expulsion, migration and trapping processes. Exploration Strategy NLSB Thermal Maturation % Ro 0 .0 0 5 ,0 0 0 7,000 1 0 ,0 0 0 D E P T H (feet) 12,000 1 5 ,0 0 0 2 0 ,0 0 0 2 5 ,0 0 0 3 0 ,0 0 0 3 5 ,0 0 0 0.55 1 .0 1.3 2 .0 3 .0 4 .0 MISB Thermal Maturation % Ro 0.0 0 5,000 10,000 11,000 DEPTH (feet) 15,000 16,500 20,000 25,000 30,000 35,000 40,000 1.0 0.55 1.3 2.0 3.0 4.0 Manila-Conecuh Thermal Maturation Reservoir Characteristics Deep Gas Reservoir Areal Distribution Conclusions In the North Louisiana Salt Basin, Upper Jurassic and Lower Cretaceous Smackover, Cotton Valley, Hosston, and Sligo have high potential to be deeply buried gas reservoirs (>12,000 ft). In the Mississippi Interior Salt Basin, Upper Jurassic and Lower Cretaceous Norphlet, Smackover, Haynesville, Cotton Valley, Hosston, and Sligo have high potential to be deeply buried gas reservoirs (>16,500 ft).