Rockhopper Exploration Plc · LSE:RKH

Rockhopper Exploration — Technical Presentation (September 2011)

73 slides from Rockhopper Exploration's technical presentation, September 2011

  1. Slide 1: Capital Markets Presentation – Session 2 Technical Update

    ROCKHOPPER EXPLORATION PLC CAPITAL MARKETS PRESENTATION SESSION 2 TECHNICAL UPDATE DAVE BODECOTT EXPLORATION DIRECTOR TECHNICAL TEAM NFB GEOLOGICAL SETTING EXPLORATION HISTORY TO WELL 14/10-­‐2 FIONA MACAULAY GEOLOGY & GEOPHYSICS MANAGER TECHNICAL UPDATE SLMC EXPLORATION UPSIDE SEPTEMBER 2011 12

  2. Slide 2: Technical Update Introduction

    TECHNICAL UPDATE INTRODUCTION DAVE BODECOTT EXPLORATION DIRECTOR TECHNICAL TEAM NFB GEOLOGICAL SETTING EXPLORATION HISTORY TO WELL 14/10-­‐2 SEPTEMBER 2011 13

  3. Slide 3: Subsurface Team

    TECHNICAL UPDATE SUBSURFACE TEAM SEPTEMBER 2011 14

  4. Slide 4: North Falkland Basin – Lower Aptian Reconstruction

    TECHNICAL UPDATE NORTH FALKLAND BASIN – LOWER APTIAN RECONSTRUCTION (122 my) SEPTEMBER 2011 15

  5. Slide 5: Setting North Falkland Basin

    TECHNICAL UPDATE SETTING NORTH FALKLAND BASIN • NFB 50km wide and 290km in length • 5km of syn riV sediment fill • Failed linear atlanXc riV trend • Deep lacustrine basin filled with lower cretaceous highly organic shales, turbidites • Deltaic input from the North • Asymmetric faulted basin margins •

  6. Slide 6: Stratigraphic Setting

    TECHNICAL UPDATE STRATIGRAPHIC SETTING SEPTEMBER 2011 17

  7. Slide 7: Exploration History

    TECHNICAL UPDATE EXPLORATION HISTORY ROCKHOPPER SEISMIC CAMPAIGNS • Licences PL023/024 ca1,500km2 of 2D & 4 CSEM lines in 2006 • Licences PL032/033 ca850km2 of 3D by CGG in 2006/7 • Licences PL023/024 ca550km2 2D acquired by Wavefield in 2008 • Licence PL032/033 ca443km2 of 3D by Polarcus in 2010/201

  8. Slide 8: Exploration History – Drilling

    TECHNICAL UPDATE EXPLORATION HISTORY – DRILLING 1998 DRILING CAMPAIGN Well Operator TD m Shows 14/5-­‐1A Shell 4,525 Oil shows and Gas 14/10-­‐1 Shell 3,005 Live oil 27 deg API 14/9-­‐1 Amerada 2,590 Oil stains 14/9-­‐2 Amerada 2,345 Oil stains 14/13-­‐1 Lasmo 1,475 Dry hole 14/24-­‐1 Lundin 2,914 O

  9. Slide 9: Source Rock Type & Richness

    TECHNICAL UPDATE SOURCE ROCK TYPE & RICHNESS – Rock-­‐Eval pyrolysis (colour = wells) T-max versus Hydrogen Index Diagram HI (mg/gTOC) 0 100 200 300 400 500 600 700 800 900 1000 1100 400 410 Ernest source Sea Lion rocks source rocks 420 S2 (kg/t) 430 2.0 - 10.0 10.0 - 20.0 440 20.0 - 40.0 450 40.0 -

  10. Slide 10: Source Rock Maturity

    TECHNICAL UPDATE SOURCE ROCK MATURITY Surface intercept at 0.18%Ro Vitrinite Reflectance (%Ro) 1.0 500 Spore Colour Index (1-10) 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 500 Type Cuttings 1000 LithoStratigraphy Apto/Albian Valanginian/Barremian 1000 <Un-named item> 1500 1500 2000 Base-Depth (m) 2000 Top

  11. Slide 11: Geological Model of Sea Lion – Reservoir

    TECHNICAL UPDATE GEOLOGICAL MODEL OF SEA LION – RESERVOIR thick-bedded sandlobes outer-fan thin-bedded sandlobes deepwater lacustrine muds SEPTEMBER 2011 22

  12. Slide 12: Seal

    TECHNICAL UPDATE SEAL SEPTEMBER 2011 23

  13. Slide 13: Reservoir, Source, Seal in 23/24

    TECHNICAL UPDATE RESERVOIR, SOURCE, SEAL IN 23/24 • RESERVOIR: Excellent quality reservoir sands found in the Ernest well • SOURCE: IniXal source rock analysis indicates good oil source potenXal in these licence areas • SEAL: Number of structures have been idenXfied on 2D seismic which will be refined

  14. Slide 14: Exploration 23/24 – Ernest 26/6-1

    TECHNICAL UPDATE EXPLORATION 23/24 ERNEST 26/6-­‐1 SEPTEMBER 2011 25

  15. Slide 15: Ernest – EM Anomaly

    TECHNICAL UPDATE EXPLORATION 23/24 ERNEST – EM ANOMALY • RKH Summary • ResisXve shales and silts between 1500 and 1750m esXmated to be causing the Ernest EM resisXvity anomaly. • This secXon was hard and caused slow drilling – POOH at 1667m to change the bit. • Possibly some contribuXon from shallow

  16. Slide 16: Sea Lion to Well 14/10-2

    TECHNICAL UPDATE SEA LION TO WELL 14/10-­‐2 Shell 10km 14/5-1 • Sea Lion structure IdenXfied pre Polarcus 3D Shell 14/10-1 Sea Lion 14/10-2 SEPTEMBER 2011 27

  17. Slide 17: 14/10-2 Discovery Well Location

    TECHNICAL UPDATE 14/10-­‐2 DISCOVERY WELL LOCATION SEPTEMBER 2011 28

  18. Slide 18: 14/10-2 CPI 2400-2480m

    TECHNICAL UPDATE 14/10-­‐2 CPI 2400-­‐2480M &'(&)*+ ,-..-$/-0 1$2-34567 8979:4;0 39<: 2=/ /6:4:;4>4;0 ?4;@939<0 A-;67 "-;B7-;49C 2976$D$ A',<;BC./01 A',<;BC./01 *+,--./01 -5 ,<9B8 7A3.5P=PM:BQ @>!# ./0+1 @!# >"# ./LMHN1 "# #'$ ./N=8I1 # 789:;<= J5D6 6?K8R<R.FP?< -T 5D6V ( ./:?1 >( #'"$ ./KHK1 @#'>$

  19. Slide 19: 14/10-2 CPI 2450-2620m

    TECHNICAL UPDATE 14/10-­‐2 CPI 2450-­‐2620m <=><?@A !"##"$%"& '$(")*+,- ./-/0*1& )/20 (3% %,0*01*4*1& 5*16/)/2& 7"1,- 8"19-"1*/: (/-,$;$ :;<21=>'(8, :;<21=>'(8, L9<66'(8, 6* <2/=. -:&'*N3NJ0=P 74!# '(89, 7!# 4G# '(IJDK, G# #;" '(K3.E, # -./0123 F*?+ +5H.Q2Q'AN52 6S *?+U $ '(05, 4$ #;G" '(HDH, 7#;4"

  20. Slide 20: Technical Update SLMC Exploration Upside

    TECHNICAL UPDTE FIONA MACAULAY GEOLOGY & GEOPHYSICS MANAGER TECHNICAL UPDATE SLMC EXPLORATION UPSIDE SEPTEMBER 2011 31

  21. Slide 21: Post Well 14/10-2 2010-11 Seismic Campaign

    TECHNICAL UPDATE POST WELL 14/10-­‐2 2010-­‐11 SEISMIC CAMPAIGN • Polarcus contracted between RKH-­‐Argos Asima & Desire • 2 state of the art x-­‐bowed heavy weather seismic vessels built in 2009 • Nadia operated with 8 streamers and Asima with 10 streamers • Vessels operated from November 2010 to J

  22. Slide 22: Post Well 14/10-2 2010-11 Seismic Campaign

    TECHNICAL UPDATE POST WELL 14/10-­‐2 2010-­‐11 SEISMIC CAMPAIGN • Polarcus contracted between RKH-­‐Argos Asima & Desire • 2 state of the art x-­‐bowed heavy weather seismic vessels built in 2009 • Nadia operated with 8 streamers and Asima with 10 streamers • Vessels operated from November 2010 to J

  23. Slide 23: Post Well 14/10-2 Top SLMC Structure Map

    TECHNICAL UPDATE The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and then insert it again. POST WELL 14/1

  24. Slide 24: Post Well 14/10-2 SLMC Amplitude Map

    TECHNICAL UPDATE POST WELL 14/10-­‐2 SLMC AMPLITUDE MAP SEPTEMBER 2011 35

  25. Slide 25: 14/10-3 Location Map

    TECHNICAL UPDATE 14/10-­‐3 LOCATION MAP SEPTEMBER 2011 36

  26. Slide 26: 14/10-3 CPI

    TECHNICAL UPDATE 14/10-­‐3 CPI >?@>ABC %&''&(#&) *(!&+,-./ 01/12,3) +142 !5# #.2,23,6,3) 7,381+14) 9&3./ :&3;/&3,1< !1/.(=( 0C1C ?'@87AB-.=2 ?'@87AB-.=2 N>@;;-.=2 $# .V2 # ;0 @85A4 3?+-0P9PL6AQ <)# -.=>2 !# ,"# -.KLGM2 "# #'$ -.M94H2 # 3456789 I0C1 1:J4R8R-EP:8 0C1U ( -.6:2 ,( #'"$ -.JGJ2 <#',$ #'!

  27. Slide 27: 14/10-4 Location Map

    TECHNICAL UPDATE 14/10-­‐4 LOCATION MAP SEPTEMBER 2011 38

  28. Slide 28: 14/10-4 CPI

    TECHNICAL UPDATE 14/10-­‐4 CPI %&'%()& *+,,+-#+. /-!+01234 5646718. 0697 !:# #371781;18. <18=6069. >+834 ?+8@4+816A !643-B- 6D7D A%-=<BC/012 A%-=<BC/012 +,-../012 '* /0W2 * .6 -=:B9 8A4/6P>PM;BQ @'* /01,2 '* ("* /0LMHN2 "* *%' /0N>9I2 * 89:;<=> J6D7 7?K9R=R/FP?= .T 6D7V & /0;?2 (& *%"' /0KHK2 @*%('

  29. Slide 29: 14/10-5 Location Map

    TECHNICAL UPDATE 14/10-­‐5 LOCATION MAP SEPTEMBER 2011 40

  30. Slide 30: 14/10-5 CPI

    TECHNICAL UPDATE 14/10-­‐5 CPI &BC&DEF +,--,$),. /#039;,01234 5646718. 0697 ':) )371781;18. <18=6069. >,834 ",8?4,816@ '643$A$ >&?76@A,-<1 >&?76@A,-<1 N=?::,-<1 :/ ?74@3 2>*,/P8PL5@Q ;!## ,-<=1 ;+## +$# ,-KLGM1 $# #&" ,-M83H1 # 2345678 ,I/B0 09J3R7R,DP97 :T /B0V ' ,-591 +' #&quot; ,-JGJ1 ;#&+" #&! ,-PA<<1

  31. Slide 31: 14/10-6 Location Map

    TECHNICAL UPDATE 14/10-­‐6 LOCATION MAP SEPTEMBER 2011 42

  32. Slide 32: 14/10-6 CPI

    TECHNICAL UPDATE 14/10-­‐6 CPI SEPTEMBER 2011 43

  33. Slide 33: 14/10-7 Location Map

    TECHNICAL UPDATE 14/10-­‐7 LOCATION MAP SEPTEMBER 2011 44

  34. Slide 34: 14/10-7 CPI

    TECHNICAL UPDATE 14/10-­‐7 CPI SEPTEMBER 2011 45

  35. Slide 35: Seismically Distinguishable Fan Lobes

    TECHNICAL UPDATE – Seismically disXnguishable fan lobes SEPTEMBER 2011 46

  36. Slide 36: Fast Track Seismic – North South Seismic Line

    FAST TRACK SEISMIC – NORTH SOUTH SEISMIC LINE through new data SEPTEMBER 2011 47

  37. Slide 37: Fast Track Seismic East West Section

    FAST TRACK SEISMIC EAST WEST SECTION SEPTEMBER 2011 48

  38. Slide 38: Cartoon Section Through SLMC

    TECHNICAL UPDATE CARTOON SECTION THROUGH SLMC SEPTEMBER 2011 49

  39. Slide 39: Similarity Slices

    TECHNICAL UPDATE SIMILARITY SLICES Similarity Slice 20ms above Base SLMC Similarity Slice 50ms above Base SLMC SEPTEMBER 2011 50

  40. Slide 40: Similarity Slices

    TECHNICAL UPDATE SIMILARITY SLICES SL10 SL20 Casper SL30 Similarity Slice 20ms above Base SLMC Similarity Slice 50ms above Base SLMC SEPTEMBER 2011 51

  41. Slide 41: Project Status – Extended Elastic Impedance Inversion

    TECHNICAL UPDATE TECHNICAL PROJECT STATUS Extended ElasXc Impedance (EEI) – Pre-­‐stack inversion analysis 14/10-7 14/10-5 SEPTEMBER 2011 52

  42. Slide 42: Project Status – Core and Core Analysis

    TECHNICAL UPDATE TECHNICAL PROJECT STATUS Core and Core Analysis • Total core cut to date : 279m (915V) – 14/10-­‐3 : 101m cut, 95.6m recovered – 14/10-­‐4 : 57m – 14/10-­‐5 : 64m – 14/10-­‐6 : 30m – 14/10-­‐7 : 27m • Core Work – Slabbing & ResinaXon – RCAL (RouXne Core Analysis) – Core to wireline

  43. Slide 43: RCAL – Core Porosity and Permeability

    TECHNICAL PROJECT STATUS RCAL (RouXne Core Analysis) – Core Porosity and Permeability Source:: Kirk Petrophysics SEPTEMBER 2011 54

  44. Slide 44: 14/10-5 Core Photography and Petrology

    TECHNICAL UPDATE TECHNICAL PROJECT STATUS 14/10-­‐5 Core Photography and Petrology Plane polarized Porosity 24.8% light image K: 270 mD SEPTEMBER 2011 55

  45. Slide 45: FMI Processing and Core to FMI Correlation

    TECHNICAL PROJECT STATUS FMI Processing and core to FMI correlaXon Well 14/10-­‐4 Source: Task Geoscience • FMI wireline logs enable interpretaXon of deposiXonal environment and once correlated to the core can provide alternaXve to core for facies determinaXon • In this example the unit represents a

  46. Slide 46: CMR Wireline Evaluation and Core Correlation

    TECHNICAL PROJECT STATUS CMR wireline evaluaXon and CMR to core correlaXon Water peak Oil peak RKH CPI CMR T2 RLA5 T2 tracks RLA5 in water WUT zone 2503.75mMD Well 14/10-­‐4 Source: Corex/RPS CMR shows clear support of water bearing sands below shale, placing WUT at 2503.75mMD: Upper T2 peak shifts

  47. Slide 47: Biostratigraphic Correlation Using Cuttings and Core Samples

    TECHNICAL UPDATE !"#$%&%#'()* +%#&,"(,%-"(./%0* 0#""1)(,%#'2* 31()%#'* !"#&.10, BIOSTRATIGRAPHIC CORRELATION USING CUTTINGS AND CORE SAMPLES * * !"1.("14* 5#"* 6#07/#..1"* 89.)#"(,%#'* .)0 * * :;* <0/"#'* =%>%,14 * a?-?&,* @ABB !"##$ %&'%(a* !"#$%&"'( ) T"1%3( *$+,+#039;-V( O$V&' ./01$%"1( ) 2.4;<.==>2

  48. Slide 48: Chemostrat Correlation

    TECHNICAL PROJECT STATUS CHEMOSTRAT CORRELATION Chemical straXgraphic correlaXon : wells 14/10-­‐2, 14/10-­‐3, 14/10-­‐4, 14/10-­‐5 (sandstone dataset). Ichron SEPTEMBER 2011 59

  49. Slide 49: 14/10-2 Test

    TECHNICAL UPDATE 14/10-­‐2 TEST • Primary objecXve • Well flowed reservoir fluid to surface – “establish that the well can flow at • PI: 2.4 stb/d/psi for Upper Fan commercial rates” – esXmated PI 2.8 stb/d/psi if Lower • The driving force behind the test design Fan also produced was safety – close to

  50. Slide 50: 14/10-5 Test

    TECHNICAL UPDATE 14/10-­‐5 TEST • Primary objecXve • Maximum rate test – “establish that the well can flow at • Stabilised flowrate ca. 5508 stb/d with commercial rates” FWHP of 783psi on 48/64”chk • Built on experience gained from – maximum stablised rate 9036stb/d 14/10-­‐2 test – flowrate restricted

  51. Slide 51: Oil Fluid Analysis

    TECHNICAL UPDATE OIL FLUID ANALYSIS Reservoir Temp 840C API ca 290 GOR 261-­‐272 Viscosity 6.7cP FormaXon Volume Factor 1.16 Pour Point ca 300C Oil sample from 14/10-­‐3 SEPTEMBER 2011 62

  52. Slide 52: Wireline Mini DST Analysis

    TECHNICAL UPDATE WIRELINE MINI DST ANALYSIS • Excellent supplement to full producXon DST’s • When used in conjuncXon with all other available wireline log data gives a good predicXon of producXvity for the wellbore under natural flow condiXons • Possible to use this data to extrapolate predicted flow

  53. Slide 53: Formation Test Data

    TECHNICAL UPDATE FORMATION TEST DATA • FormaXon pre-­‐test pressures and full sampling suite taken on each of the wells • FormaXon pressure tests show that the pressures are consistent between the various wells up to and including 10-­‐7 (with the excepXon of 14/10-­‐3) • 14/10-­‐3 have similar pres

  54. Slide 54: Volumetrics – Case Area Selection

    TECHNICAL UPDATE VOLUMETRICS CASE AREA SELECTION • StaXgraphic play • Low and Mid case areas selected using amplitude variaXons and distance from data points • High Case area selected using mapped pinch out of reservoir • Upside outside of the mapped pinch out of thin reservoir which is below seismi

  55. Slide 55: Volumetrics – Volumetric Methodology

    TECHNICAL UPDATE VOLUMETRICS VOLUMETRIC METHODOLOGY SEPTEMBER 2011 66

  56. Slide 56: Management Estimates for Prospective Resources within SLMC

    TECHNICAL UPDATE VOLUMETRICS Management EsXmates for in place prospecXve resources within SLMC Low Mid High SLMC 608 1086 1279* *Management esXmates that up to approximately 10% addiXonal resource could be contained within licence PL004 in which Rockhopper has a 7.5% non-­‐operated interest SEPTEMBE

  57. Slide 57: Volumetrics – Recovery Factors

    TECHNICAL UPDATE 2D InjecXvity SimulaXon VOLUMETRICS RECOVERY FACTORS • Recovery Factor likely to be in the range of 30-­‐40% • Figures based on : – Published viscous flood analogue data – Dykstra-­‐Parsons waterflood model – Scoping 2D simulaXons • Ongoing work to refine recovery factor – Dynamic rese

  58. Slide 58: Petrel Model – Schematic 3D Images of SLMC

    TECHNICAL UPDATE VOLUMETRICS PETREL MODEL – SCHEMATIC 3D IMAGES OF SLMC SEPTEMBER 2011 69

  59. Slide 59: Sea Lion Summary

    TECHNICAL UPDATE SEA LION SUMMARY • Good quality Lower Cretaceous RESERVOIR presence established exisXng as widespread, laterally conXnuous mass flow sheet sands. Good resoluXon and understanding of reservoir distribuXon from seismic. • World class, high TOC, mature SOURCE present and charging the sy

  60. Slide 60: Exploration – Play Types PL032/PL033

    TECHNICAL UPDATE EXPLORATION PLAY TYPES PL032/PL033 SEPTEMBER 2011 71

  61. Slide 61: Exploration Targets – B15

    TECHNICAL UPDATE EXPLORATION EXPLORATION TARGETS – B15 • B15 is straXgraphically deeper than SLMC • Low case 100mmbbls stoiip • Mid case 130mmbbls stoiip • High case 161mmbbls stoiip SEPTEMBER 2011 72

  62. Slide 62: Exploration Targets – Casper

    TECHNICAL UPDATE EXPLORATION EXPLORATION TARGETS – Casper • Casper is straXgraphically shallower than SLMC • Low case 135mmbbls stoiip • Mid case 163mmbbls stoiip • High case 194mmbbls stoiip SEPTEMBER 2011 73

  63. Slide 63: Exploration Targets – Kermit

    TECHNICAL UPDATE EXPLORATION EXPLORATION TARGETS – Kermit • Kermit is straXgraphically deeper than SLMC • Low case 39mmbbls stoiip • Mid case 47mmbbls stoiip • High case 55mmbbls stoiip SEPTEMBER 2011 74

  64. Slide 64: Exploration Targets – Chatham

    TECHNICAL UPDATE EXPLORATION EXPLORATION TARGETS – Chatham • Chatham is straXgraphically deeper than SLMC • Low case 28mmbbls stoiip • Mid case 93mmbbls stoiip • High case 318mmbbls stoiip ** Data from RPS Energy Competent Persons Report April 2009 SEPTEMBER 2011 75

  65. Slide 65: Management Estimates Prospective Resources within Fan Play Type

    TECHNICAL UPDATE EXPLORATION Management EsXmates prospecXve resources within fan play type Low Mid HIgh SLMC 608 1,086 *1,279 Lower Fan 100 130 161 Casper 135 163 194 Kermit 39 47 55 Chatham** 28 93 318 TOTAL 910 1,519 2,007 Management EsXmates for in place prospecXve resources within Fan play type

  66. Slide 66: Potential Future Well Locations

    TECHNICAL UPDATE POTENTIAL FUTURE WELL LOCATIONS SEPTEMBER 2011 77

  67. Slide 67: Exploration Targets – Play Type – Johnson

    TECHNICAL UPDATE EXPLORATION EXPLORATION TARGETS – PLAY TYPE 5 – JOHNSON • Closed defined large structural closure Johnson Prospect • Extent 310km2 + defined by 2D and 3D data (mapped from and recent 2011 TWT mapping Rockhopper 3D – pre 2011) • Straddles RKH, Argos & Open Acreage • Gross column of 1,4

  68. Slide 68: Johnson – Crossline 1367 N-S

    TECHNICAL UPDATE EXPLORATION JOHNSON – CROSSLINE 1367 N-­‐S SEPTEMBER 2011 79

  69. Slide 69: Johnson – Well Data & Schematic

    TECHNICAL UPDATE EXPLORATION Seismic schemaXc of Johnson JOHNSON – WELL DATA & SCHEMATIC Prospect – from Rockhopper 3D Gas Shows and Log Analysis from 14/5-­‐1 well Johnson Upper Pick • High gas saturaXons between 3100 to 4525m • 14/5-­‐1 in distal locaXon within basin • Low porosiXes (5 to 10%) • i

  70. Slide 70: Other Play Types

    TECHNICAL UPDATE EXPLORATION OTHER PLAY TYPES • Pinch out • Downthrown Closures • Inversion Trend • AddiXonal seismic processing and interpretaXon required to refine mapping and understanding SEPTEMBER 2011 81

  71. Slide 71: Licences 23 & 24 Exploration

    TECHNICAL UPDATE EXPLORATION LICENCES 23 & 24 EXPLORATION • 3D Seismic over Weddell structure and PL024 will be processed and available for interpretaXon end Q4 2011 • Source rock and maturity analysis ongoing including geochemical screening, kerogen typing, vitrinite reflectance on samples from the

  72. Slide 72: Licences 23 & 24 Exploration

    TECHNICAL UPDATE EXPLORATION LICENCES 23 & 24 • Further seismic processing and interpretaXon required to refine understanding • Processing to be completed by end 2011 SEPTEMBER 2011 83

  73. Slide 73: Technical Summary

    TECHNICAL UPDATE EXPLORATION TECHNICAL SUMMARY • Sea Lion appraisal nearing compleXon • ExploraXon upside remains in Licences 32/33 and 23/24 • Fan prospects and Johnson drill ready • Further prospects in other play types required further work SEPTEMBER 2011 84

Rockhopper Exploration — Technical Presentation (September 2011) on 6ix