Mol Hungarian Oil & Gas Plc Class A · BET:MOL
Mol Hungarian Oil & Gas Plc Class A — MOL Group — Technical Presentation
17 slides from Mol Hungarian Oil & Gas Plc Class A's technical presentation
Slide 1: Unconventional exploration as a way of organic growth in Upstream
Unconventional exploration as a way of organic growth in Upstream
Slide 2: Resource Pyramid
Conventional Reservoirs Small volumes that are easy to develop Unconventional Large volumes diffic 6 to develop an Shales . Oily a Improved technology MOL GROUP 2
Slide 3: Strategic joint venture with ExxonMobil in Hungarian unconventional exploration
Strategic joint venture with ExxonMobil in Hungarian unconventional exploration MOL-ExxonMobil strategic joint venture relies on synergies based on: UNCONVENTIONAL BASINS IN HUNGARY ► MOL’s understanding of local geology ExxonMobil-MOL ► MOL’s acreage position in the Mako Derecske Strategic Joint Ve
Slide 4: Technical program of the joint venture in Makó trough area
Technical program of the joint venture in Makó trough area ► Joint Technical Study prepared for MOL 107 Makó and Békés basins EXPLORATION BLOCK ► Based on the promising results of MOL (50%) – FALCON MINING ExxonMobil (50%) the JTS MOL-ExxonMobil decided to PLOT agreement Retained by launch an explor
Slide 5: Uncertainty / Project Evaluation
Project Evaluation 2-4 years 2 years 30 years ► Exploration Appraisal Exploration Appraisal ► Reduce uncertainty on HC resource Resource delineation distribution Seismic and drilling activity ► Reservoir producibility Stop / Go Exit the project ► Development Pilot ► Select development Development Pi
Slide 6: Makó Trough work program
MAKÓ WEST AREA Makó Trough work program Committed Exploration Work Program based on MOL- ExxonMobil Joint Technical Study Field Development and Goal: Prove commerciality of production Stop / Go Piloting Production • Drilling 4-6 new wells • Testing, fracturing wells Exit the project 2009 2012 2008 2
Slide 7: Requirements for Petroleum Accumulation
Requirements for Petroleum Accumulation rock containing original organic matter is a source rock: 80% of the world's sedimentary rock volume 1% to 2% organic matter less than 1%, is able to undergo migration out of the source bed to accumulate within a porous and permeable reservoir. Source: IHRDC I
Slide 8: Requirements for Petroleum Accumulation
Requirements for Petroleum Accumulation Material originated from different kinds of living organisms, with different kinds of biological molecules, kerogens will not all have the same chemical compositions and will yield different types and amounts of petroleum. Source: IHRDC IPIMS.ep 8
Slide 9: Conventional reservoirs
Conventional reservoirs Oil Well @ XL Gas Well Source Rocks Migration Paths Reservoir Trap Cap Rock/Seal oF ON = Generation Intensity Immature Zone Temperature (°C) > MOL GROUP
Slide 10: Unconventional tight gas – Basin Centered Gas Accumulation
Unconventional tight gas – Basin Centered Gas Accumulation (Pollastro and others, 2003) 10
Slide 11: Basin Centered Gas Accumulation – Makó trough
Basin Centered Gas Accumulation – Makó trough Conventional Accumulations Gas Maturity Potential Reservoir Intervals Unconventional Accumulation Source Intervals (Source: Horvath) 11
Slide 12: Basin Centered Gas Accumulation – Makó trough
Basin Centered Gas Accumulation – Makó trough ► Source Intervals ► Reservoir Intervals Algyo Field ► Present Gas maturity window ► Conventional HC accumulation ► Potential Unconventional HC Accumulations 12
Slide 13: ExxonMobil’s Multiple Zone Stimulation Technology
ExxonMobil’s Multiple Zone Stimulation Technology Piceance Basin, Colorado, USA
Slide 14: SPE – PRMS Classification system
SPE – PRMS Classification system Field Development Risk Discovery Geological Risk
Slide 15: Initial assumptions on resource distribution of the Makó Trough
Initial assumptions on resource distribution of the Makó Trough Field Development ► Continuous field It would require ~2000 wells to Approximately 50 wells can be Discounted payback period of produce all hydrocarbons from drilled in one year in our development a well is 2-3 year Makó area current kn
Slide 16: Economic valuation – main assumptions
Economic valuation – main assumptions Cost Estimates ► Surface facilities: USD 22-28 million + USD 6-11 million/year ► OPEX: USD 2-3/boe ► Well cost: USD 8-12 million Comparison of Single Producer wells in the Makó Trough Area Well Cost Depth ► Unconventional wells vs. conventional are Conventional
Slide 17: Unconventional exploration as a way of organic growth in Upstream
Unconventional exploration as a way of organic growth in Upstream ► Unconventional resources play an increasing role in worldwide hydrocarbon production, mainly due to pricing and technical developments ► In Hungary, due to pricing and regulatory issues, the time has just come to start to put seriou