MicroSeismic: Refracturing – is adding new perforations effective?

The microseismic response to refracturing of horizontal wells often shows a significant delay after pumping starts. In many cases it takes several pumping stages, equivalent to several thousand barrels of injected fluid, before any major microseismic activity is observed. Given microseismic is the acoustic representation of rock failure, no microseismic activity is potentially an indication of no rock failure.

In most refracturing jobs new perforations are added between old ones in an attempt to break fresh rock, and thereby to reach bypassed reserves. From a geomechanical perspective, it takes less pressure to re-open pre-existing fractures, from the old perforations, than to break fresh rock through the new perforations. The lack of microseismicity during the early pumping stages is evidence indicating that no rock failure occurs during this period, but the injected fluid finds its way through the pre-existing fractures which are connected to the old perforations along the well. The lower ISIPs recorded during the same stages are further evidence supporting this argument. Given that this condition almost persists throughout all stages of a refracturing treatment, the question to be answered is whether the new perforations are effective at all? If not, why not skip them to reduce cost and save time?

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FAR: Farms into offshore Gambia blocks

The government of the Republic of The Gambia has approved the transfer to FAR of an 80% operated interest in offshore blocks A2 and A5 currently held by Erin Energy.

Under the farm-in terms, FAR must fund Erin up to $8 million through an exploration well that will likely be drilled in late 2018.

Blocks A2 and A5 are adjacent to and on trend with the SNE oil field discovery offshore Senegal to the north. They cover an area of around 2,682 sq km (1,035 sq mi) within the Mauritania-Senegal-Guinea-Bissau basin and are 30 km (19 mi) offshore in water depths ranging from 50-1,200 m (164-3,937 ft).

FAR estimates prospective resources across the blocks at more than 1 Bbbl of oil.

Based on 1,504 sq km (580 sq mi) of modern 3D seismic acquired over the blocks, the company has identified large prospects similar to the “shelf edge” plays it has targeted off Senegal, with three potentially drillable prospects and leads.

FAR and Erin plan 3D seismic reprocessing and interpretation ahead of maturing prospects for drilling next year.

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Permian Basin: How Long Can It Grow in Low-Price, Oversupplied Market

Richard Nemec: Pipeline and Gas Journal

Coming out of the first quarter in 2017, the venerable Permian Basin had no fewer than three major natural gas takeaway pipeline projects on the drawing board along with several liquid pipe projects as well, exuding an industry-leading appeal among the U.S. major oil and gas production basins.

The prospective projects all promised to ease a looming production glut in the Permian producing region, linking to existing pipelines, including those that export gas to Mexico and to a Cheniere Energy Inc. liquefied natural gas (LNG) export facility under construction.

Amidst the buildout, Dallas-based EnLink Midstream completed 150 miles of high- and low-pressure crude gathering pipelines with 100,000-bpd capacity and was expanding its natural gas and natural gas liquids (NGL) footprint in the heart of the Permian. Meanwhile, well-endowed private equity funds managed by Blackstone Energy Partners and Blackstone Capital Partners scooped up the Permian’s largest privately held midstream operator for $2 billion in cash.

From just these industry headlines, it’s easy to get the impression the Permian is the latest bandwagon, and a lot of newcomers are jumping aboard, joining longer term players like EnLink, which entered the Permian in 2012 and has grown its presence there over the past two years. And the proof is overwhelming when it is recognized that just about every major financial and energy industry publication has done a report in recent months touting the dominance of the Permian.

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General Electric: Closes Baker Hughes deal, becomes No. 2 oilfield service provider

General Electric Co on Monday completed its buyout of Baker Hughes Inc, merging it with its own oil and gas equipment and services operations to create the world’s second-largest oilfield service provider by revenue.

The new company, to be called “Baker Hughes, a GE company,” will begin trading on Wednesday on the New York Stock Exchange under the stock ticker “BHGE.”

With headquarters in London and Houston, the combined company will have roughly $23 billion in annual revenue and offer oilfield gear including blowout preventers, pumps, drilling, chemicals, other products and services for oil producers in 120 countries.

For Baker Hughes, the deal helps it grow in size and become an even-more important player in the industry after antitrust concerns scuttled a tie-up last year with rival Halliburton Co. The GE deal vaults the merged business past Halliburton to rival only Schlumberger NV for dominance in the global oilfield service market.

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OGA: UKCS Stewardship Mid-Year Activity Survey 2017

The OGA intends to produce updated projections of UKCS activity ahead of the UK government’s Autumn 2017 Budget. To inform our projections, we are seeking updated data from industry. The UKCS Stewardship Survey Mid-Year Activity Survey 2017 opens today, 3 July 2017, with a final date for data submission of 11 August 2017.

Updates will be requested only for:

  • A greater than 10% increase or reduction in either production or cost values against those reported in the 2016 UKCS Stewardship Survey (based on total over remaining field life)
  • An adjustment of the estimated cessation of production (COP) date of:
    • Greater than one year, if the previous COP date was in the range 2017–2021
    • Greater than two years, if the previous COP date was in the range 2022–2025
    • Greater than four years, if the previous COP date was later than 2025
  • New projects not reported in the 2016 UKCS Stewardship Survey
  • Certain other OGA requirements on a case-by-case basis. These include fields expected to start production in 2017 and assets where data was omitted from the 2016 survey.

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PGS: Signs Agreement with RSA SAMREF for use of Surplus Data

PGS has entered into a data sharing agreement with the South African Marine Research and Exploration Forum (SAMREF) for use of surplus data to improve understanding of the oceans.

Data recordings like temperatures and salinity through the water column, currents and weather observations are collected as a part of the PGS seismic acquisition process in order to improve seismic imaging. This activity has created an extensive MultiClient data library with corresponding surplus data. In late March 2017 PGS announced its intention to open the Company’s surplus database for research on the ocean. The database dates back to 1991.

“We have just signed an agreement with the Institute of Marine Research in Norway and I am pleased to announce that we now have an agreement with another institution, the South African Marine Research and Exploration Forum”, says Jon Erik Reinhardsen, President & CEO of PGS. “We will contribute where we can to increase our collective understanding and knowledge of the oceanic environment and we are hopeful that more institutions will respond to our invitation to access our surplus database for research purposes.”

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PGS: Vessel Allocation Q2-17

PGS routinely releases information about 3D vessel utilization after the end of each quarter.

Summary of vessel utilization:

Approximate allocation of PGS operated 3D towed streamer capacity Quarter ended
June 30,
Quarter ended March 31,
2017 2016 2017
Contract seismic 60% 58% 53%
MultiClient seismic 24% 21% 21%
Steaming 15% 19% 10%
Yard 0% 2% 5%
Stacked/Standby 1% 0% 11%

All cold-stacked* vessels are excluded from the statistics. The last new build, Ramform Hyperion, was delivered in March 2017 and is included in the statistics for Q2 2017.

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Sonardyne: Thien Nam positioning selects Sonardyne to track Vietnamese divers and ROVs

Subsea technology from Sonardyne that tracks the position of divers and remotely operated vehicles (ROVs) as they carry out surveys and inspections, has been selected by Vietnam-based Thien Nam Positioning JSC to supports its offshore activities in the region.

The Mini-Ranger 2 Ultra-Short BaseLine (USBL) acoustic tracking system, the first to be delivered into Vietnam, was supplied through Sonardyne’s subsidiary in Singapore. It has the capability to simultaneously and precisely track up to 10 underwater mobile targets and benefits from the same Wideband acoustic signal technology found in Sonardyne’s deep water USBL product family, but for significantly less cost.

Thien Nam Positioning conducts a wide range of geophysical surveys, pipeline and flowline installations, and maintenance operations in support of the country’s offshore oil and gas industry. Their divers and ROVs often work from vessels-of-opportunity, so survey equipment needs to be easy to install and easy to move from between vessels without affecting performance.

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Reservoir Imaging: Taking the sting out of time-sharing.

Andrew McBarnet reports on a case of innovative thinking that promises major savings in the marinie seismic business. Read the full article here.

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ASV: Global’s C-Worker 5 Participates in Marine Mammal Monitoring in the GoM

ASV Global has participated in LADC-GEMM consortium’s summer expedition to the Gulf of Mexico to monitor marine mammals near the Deepwater Horizon oil spill site.

ASV Global provided a C-Worker 5 autonomous surface vehicle as a passive acoustic monitoring (PAM) survey platform during this year’s cruise. The C-Worker 5 is a 5-meter long aluminum hull vessel with a 57 HP direct drive diesel engine. The payload outfit on this cruise was a 200m passive acoustic monitoring line array kit provided by Seiche, carried and deployed from ASV Global’s remote controlled scientific winch.

C-Worker 5 was controlled and monitored from support vessel R/V Pelican by ASV Global’s expert team of operators mobilized from Broussard, Louisiana.

On this cruise, the vessel consistently collected PAM data, comprising of whale and dolphin vocalizations and their source location. C-Worker 5 completed 1100 kilometers of transects and comparison lines over total of 8 days traveling at speeds of between 4.5 and 5.5 knots.

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