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Exploration Process

Competency Statement:

Learn the technical and management steps that are followed to move an exploration opportunity from play to a prospect by applying a series of progressively expansive data collection steps beginning with aerial or satellite imaging, then gravity and magnetic surveys, seismic surveys, exploration and appraisal well drilling, reservoir characterization, resources estimation and economic analysis.

Learning Objective:

  • Learn the progressively more expansive data collection and analysis steps that are applied to an exploration opportunity from the negotiation of a host country agreement to the request for funds to move to Field Development Planning.
  • Learn how the exploration process involves making decisions to acquire data under conditions of uncertainty. (value of information)

  • Learn how exploration and appraisal wells are located to delineate a prospect.

  • Learn how resources are estimated using the SPE system under conditions of uncertainty

  • Generate prospect economics based on estimated reserves and project economic indicators.

  • Learn how to assess geological risk

  • Assignment Instruction:

    Your company has negotiated with a host country an exploration agreement to explore for oil & gas. In this assignment your team will follow an exploration workflow process to advance a play concept to a drillable prospect. In your role as the exploration manager, you will need to guide your team through this defined process involving commercial data management, geotechnical, operational, and knowledge management steps so as to progress an opportunity to a drilling decision.

    If the exploratory well is successful your team will need to examine the SPE resource definitions and how this may affect future financing. Based on this information your team will need to propose several delineation wells that will identify the extents of the reservoir(s) while minimizing exploration capital. You will then revise your economic estimates based on new information and economic indicators.