Petro Matad Limited · LSE:MATD
Petro Matad — APPEX London 2014
18 slides from Petro Matad's conference presentation, Mar 12, 2014
Slide 1: Mongolia: Frontier Exploration Potential in an Emerging Economy
MONGOLIA: FRONTIER EXPLORATION POTENTIAL IN AN EMERGING ECONOMY Andrew Barnwell, Petro Matad LLC APPEX, London, March 12th 2014 March 2014 MATD
Slide 2: Contents
Contents •Introduction to Mongolia •Summary of E&P Industry •Petroleum Geology Overview •Economics & Infrastructure •Conclusions
Slide 3: Mongolia - a Developing Market for Oil and Gas
Mongolia - a Developing Market for Oil and Gas •Became a democracy in 1990, growth now in double digits •Coal (Tavan Tolgoi), copper & gold (Oyu Tolgoi) are the main economic drivers •Domestic market uses c.22,000 bbls/d of refined products, all imported from Russia •Current domestic production is c
Slide 4: Current PSC's - Mongolia
Current PSC’s - Mongolia •All production from Blocks XIX & XXI, eastern Mongolia (Toson Uul) •Historical production from SE of country, Tsagaan Els & Zuunbayan. Were discovered in the 1940’s, now shut-in (Block 97). •Currently >290,000km2 licensed & c.240,000kms2 are pending. •Currently 14 companies
Slide 5: Sedimentary Basins of Mongolia
Sedimentary Basins of Mongolia Plus Analogue Basins in China Mongolian basins analogous to Hailar/Tamtsag Basin >300 mmboe rec. Chinese basins, all of which contain Songliao Basin >35 Bboe rec. commercial hydrocarbons. Toson Uul area, Block XIX, has >2 Junggar Basin Bbbls oil in-place. >10 Bboe rec.
Slide 6: Analogue Basins – China vs Mongolia
Analogue Basins – China vs Mongolia Junggar Blocks IV & V Block XX Erlian Songliao W China W Mongolia E Mongolia E China E China W E •The productive Syn-Rift megasequence of China’s Songliao & Erlian basins is repeated across Mongolian Basins •The Pre-Rift Megasequence so productive in China’s forel
Slide 7: Regional Petroleum Geology
Regional Petroleum Geology Megasequence 1: Permo-Carboniferous - Jurassic ‘Pre-Rift’ •Transitional marine–continental facies following closure of Palaeo-Tethys Ocean – compressional tectonics •Lithology = Limestones overlain by coals and clastics Post-Rift •Major oil & gas play in Chinese basins (eg
Slide 8: Petroleum System Elements (data from Blocks IV & V)
Petroleum System Elements (data from Blocks IV & V) 4 field seasons (2010-2013) , 4 stratigraphic boreholes with c.3500m of core & >6000kms of 2D over frontier areas have resulted in a new understanding of the potential petroleum system in frontier areas Tsagaan Suvarga Outcrop Thick rich world clas
Slide 9: Overview of Source Potential of the Pre-Rift Petroleum System, South Western Mongolia
Overview of Source Potential of the Pre-Rift Petroleum System, South Western Mongolia Geochemical analysis of Junggar Basin Geochemical analysis of this study (Carroll et al., 1992 and Tao et al., 2012) KEROGEN QUALITY PLOT KEROGEN QUALITY PLOT S2 S2 TOC TOC KEROGEN CONVERSION AND MATURITY (Tmax) KE
Slide 10: Overview of Source Potential of the Pre-Rift Petroleum System, South Western Mongolia
Overview of Source Potential of the Pre-Rift Petroleum System, South Western Mongolia SW NE . • Petroliferous Paleozoic basin fill thins regionally from the productive Junggar Basin northeastward to the productive Santanghu Basin. • Across the Mongol Altai Range the Pz section thickens NE into the M
Slide 11: Petroleum System Elements (data from Blocks IV & V)
Petroleum System Elements (data from Blocks IV & V) High porosity fluvial-deltaic sands extensive in outcrops. • 10-30% porosity • Tithonian-Valanginian age (early Syn-Rift) • Often interbedded with source rocks • Clean granitic source • Laterally continuous Syn-Rift lacustrine sandstones, Argalant
Slide 12: Trapping Styles – with proven analogues from China
Trapping Styles – with proven analogues from China Seismic Examples from – West & Central Mongolia Songliao Basin - China Erlian Basin - China Junggar Basin - China Turpan Basin - China DATA FROM BLOCKS IV & V, Basin analogues from TELLUS, Fugro-Robertson
Slide 13: Block XIX - Producing Analogue
Block XIX - Producing Analogue 5 km Tulson Uul Sub-Basin – Petro-China operated A B 50 km 10 km Producing Oil Block XIX A Fields C D B C Block XX D Similar Leads mapped in Block XX
Slide 14: Direct Hydrocarbon Indicators
Direct Hydrocarbon Indicators Block V Block IV Block XX •Dead oil from core of TSC-1 strat •Oily fluid Inclusions from outcrop •Live oil from DT-4 well, fluorescing test samples – Tsagaan Suvarga area under UV light •Oily fluid Inclusions from strat well
Slide 15: Regional Oil & Gas Infrastructure
Regional Oil & Gas Infrastructure Development concepts following discovery Western Mongolia – Potential Delivery Options Oil trucked c.500 kms to Ulaanbaatar for supply to rail line to China, or trucked/piped to new build refinery Oil pipeline to Yumen in China, which is approx. 500 km south of Bl
Slide 16: Scoping Economics
Scoping Economics Indicative netback per barrel Split Per Barrel1 Key Assumptions $90 $90 Western Mongolia Eastern Mongolia $27.38 Contractor $37.03 900 km pipeline to planned Trucking (transport cost US$5/bbl) Share refinery at Darkhan-uul $33.12 $23.78 Gross recoverable reserves: Gross recoverable
Slide 17: Why Mongolia?
Why Mongolia? Contains several large under-explored sedimentary basins that have all the elements for working petroleum systems and large resource potential. These basins are geologically similar to highly productive basins in China, many with multi-billion barrel reserves. Basin opener opport
Slide 18: Thank You
THANK YOU