Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...

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Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
Enabling Geological Scale Dynamic Modelling of a
  Fractured Basement Reservoir using a high-
   Resolution Simulator - A UKCS Case Study
                                    Dan Bonter
                                  Hurricane Energy
Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
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   Hurricane | Devex 2015 | 21 May 2015                                                                                                                                                 2
Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
Acknowledgements
• All recent simulation work in INTERSECT has been
  performed in collaboration with Schlumberger
• Results presented by Hurricane have been replicated and
  approved by Schlumberger, and detailed by them in an
  independent report

• Thanks to:
  -    Rodolfo Carvajal, Leigh Truelove, Alan Thompson & Horacio Del
       Campillo, Schlumberger (Software Integrated Solutions)

Hurricane | Devex 2015 | May 2015
                                                                       3
Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
Abstract
‘New Kids on the Block’ theme, using new ideas and new technology to help unlock developments

Lancaster is a substantial (207 MMboe 2C) fractured basement field West of Shetland. As a Type 1 Naturally
Fractured Reservoir, hydrocarbon potential is provided entirely by the fracture network. This network is a
product of initial cooling joints and subsequent tectonic events occurring throughout the 2.5 billion year history
of this Precambrian rock. This has generated an exceptionally well connected fracture network, further
enhanced by fluid flow, producing a potentially world class hydrocarbon reservoir.
Two reservoir facies are identified: (1) Fault Zones, seismically resolvable features with generally enhanced
aperture fractures and increased porosity/permeability; and (2) Fractured Basement, pervasively fractured
background host rock providing flow and interconnectivity between Fault Zones.
The strong permeability contrasts present cause Conventional Reservoir Simulators (CRS) to struggle solving and
converging simulations. Fine scale gridding is also required to accurately depict the fault and fracture network.
Previous Lancaster CRS simulation performance was poor, requiring coarsening to complete the runs in practical
timeframes.
This paper describes the implementation of a High-Resolution Simulator (HRS) to build a dynamic model of
Lancaster by matching data acquired in the highly successful 2014 Lancaster Horizontal well test using fine-scale
(75-million cells) in the model. This has already proved invaluable in forecasting production, assessing the
impact of uncertainties, and improving technical confidence in the dynamic reservoir properties while
preserving practical runtimes of a few hours using a 16-core workstation.
This represents a step change in Hurricane’s evaluation of its basement assets, further de-risking and unlocking
the fractured basement play for the UKCS.

Hurricane | Devex 2015 | May 2015
                                                                                                                   4
Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
Introduction

Hurricane | Devex 2015 | May 2015
                                    5
Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
Hurricane
• Founded by Dr. Robert
       Trice in 2004 to explore
       the UKCS Fractured
       Basement Play
                                                                                  Clair

• Currently holds 100% of
       3 licences West of                Foinaven
                                                     Schiehallion

       Shetland                                               Whirlwind

                                                                  Lancaster
                                                                                                Shetland
• Two large Fractured                  Typhoon          Lincoln
       Basement discoveries:                        Strathmore
   -    Lancaster – 207 MMboe 2C *
   -    Whirlwind – 205 MMboe 2C *
                                                                              0      10   20   30   40   50 km

* Hurricane CPR, RPS 2013

   Hurricane | Devex 2015 | May 2015
                                                                                                                 6
Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
What is Fractured Basement?
•   Crystalline rock exhibiting fractures associated with cooling, tectonic
    activity, epithermal and hydrothermal processes
•   Often associated with buried hills or uplifted ridges

                                                            Fractured basement hill, West of Scotland

Hurricane | Devex 2015 | May 2015
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Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
What is Fractured Basement?
                           Matrix                   Matrix
                          porosity               permeability
                    Low                 High   Low              High

         Type
         Type 1I                                                                 Recovery
                                                                               dominated by
                                                                                 fracture
                  Type II                                                        network

                            Type III
                                                                                                             Recovery
                                                                                                           dominated by
                                    Type IV                                                               rock properties

                                                                       Definitions of Naturally Fractured Reservoirs, after Nelson 2001

•   Basement is a Type 1 Naturally Fractured Reservoir
•   Oil storage and mobility entirely depends on the fracture network

Hurricane | Devex 2015 | May 2015
                                                                                                                                          8
Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
Why Target Fractured Basement?

                                                                       Vietnam

                                    Global basement activity

• Basement
    works
    around the
    world                                                              Yemen

                                                           Venezuela
Hurricane | Devex 2015 | May 2015
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Enabling Geological Scale Dynamic Modelling of a Fractured Basement Reservoir using a high-Resolution Simulator - A UKCS Case Study - Dan Bonter ...
The Lancaster Field

Hurricane | Devex 2015 | May 2015
                                    10
Lancaster
•   Uplifted basement ridge
                                        Judd
•   Crest ~1km TVDss                    High

•   Water depth ~150m
•   Juxtaposed source rock
                                               0   10   20   30   40   50 km
•   Prolific kitchen to the north,
    additional kitchen to the south

    Hurricane | Devex 2015 | May 2015
                                                                               11
0
                                                                                                           5                     -
                                                                                                        -1

                                                                                                  0
   -

                                                                                                60
                                                                                             -1

                                                                                                                        -14
                                                                                                                                                                                              -150
                                                                                                                                                                                                        0
                                                                                                                                             00

                                                                                                                           00
                                                       -1700
                                                                                                                                     -14                                                                    -14

                   00
                                                                                                                                                                                                                00

                -19
Lancaster
    00

                                                                                                                                                    00

                                                                                                                                                                       00
 -20

                                                                                                                                                     4
                                                                                                                                                                                               00

                                                                                                                                                  -1

                                                                                                                                                                        3
                                                                                                                                                                                              2

                                                                                                                                                                     -1
                                                                                                                                                                                           -1

                                  0 0
                              -17
                                                                                                                                                                                                                          -12
                                                                                                                                                                                                                              0
                00
                                                                                                                                                                                  Development well                               0
            8
         -1                                          -1600                                                                                                                           205/21a-6

                                                                                                                                                                                                              00
                                                                                                                                                                                                        -11

                                                                                                                                        Exploration well
                                                                                                                                          205/21a-4

                                                                                00
                                                                           -15                                                                                                                                                -12
                                                                                                                                                                                                                                  0  0
                                                                                                                                                     Appraisal well
                                                               -16                                                                                                                                                    -1300
                                                                                                                                                      205/21a-4z
                                                                                                -1400
                                                                  00
                                6   00
                             -1                                                                                                                                                                                     Shell well

                                                                                                                                     -1300
                                                                                                                                                                                                                    205/21-1a

                                                                                                                                                         0                  0.5        1                        1.5                  2km

                                                           00
                                                                                                                                              Top hole location                   Top basement penetration
                                                     -15
                                                                        -150
                                                                            0

• Originally drilled by Shell in 1974
                                                                                                                                                                -1400

                                                                                                                                                                                                                        -1600

• Hurricane have appraised with three wells since 2009, demonstrating:                                                                                           00
                                                                                                                                                             -15
                                                                   00

  - Oil below mapped structural closure
                                                                    4

                                                                                                                            00
                                                                 -1

                                                                                                                        -16
                                                                                                                                                                                       -1700

  - Seismically-interpreted fault network is confirmed by well penetrations                                        00
                                                                                                                                                                                           -1800
                                                                                                                                                                                                                                            00
                                                                                                               -17                                                                                                                       -19
                                                                                         0
Hurricane | Devex 2015 | May 2015                                                    -150
                                         -1                                                                                                                                                                                     12
                                            6   00
                     -17
                         0
Lithology
Tonalite (2.3-2.4 Ba)
• Plutonic rock, quartz rich granite
• 80-95% of GRV based on well data

                                       Dolerite (2.3 Ba)
                                       • Dark plutonic rock, likely part of initial
        Fractures define reservoir        melt rather than later intrusion
        properties, not rock type      • 5-20% of GRV based on well data
Hurricane | Devex 2015 | May 2015
                                                                                      13
Conceptual Model                                                        Regional joints
                                                                                             High frequency
                                                                                             regional joint set with
                                                                                             preferred NE-SW
Shear fractures Seismic and sub-                                                             orientation and high
                     seismic faults                                                          permeability, crossing
                     displaying clear                                                        Fault Zones and
                     shear offset                                                            Fractured Basement

50m

                                                                                 Fault Zones
                                                                                 Represent areas of damaged
                      Variable-orientation,    Fractured Basement
  Cross joints                                                                   rock, associated with seismically-
                      permeable cross joints   The intervening host rock         resolvable faults, that include
                      contribute to flow       between Fault Zones is            more large aperture fractures
                      within Fault Zones and   pervasively fractured and         and therefore improved
                      Fractured Basement and   contributes to flow               reservoir characteristics
                      provide additional
                      lateral connectivity
   Hurricane | Devex 2015 | May 2015
                                                                                                                14
Modelling Challenges
•   Confident identification of the fractures that are contributing to fluid flow
    (hydrodynamic fractures)

•   Accurate characterisation of the hydrodynamic fracture network

•   Fine gridding to capture heterogeneity of the hydrodynamic fracture
    network

•   Practical methodology to accommodate high contrasts in poroperm and
    allow for anisotropy within a continuum model

•   Computer and software power to simulate a full field reservoir model
    which needs to accommodate over 450 faults as permeability “high ways”

Hurricane | Devex 2015 | May 2015
                                                                                15
Static Modelling

Hurricane | Devex 2015 | May 2015
                                    16
Automated techniques

Seismic Fault
Interpretation

                         Manual fault interpretation

• Fault modelling is key to
    understanding major fluid
    flow pathways
                                                                       Comparisons with
Hurricane | Devex 2015 | May 2015
                                                                   analogue outcrop locations   17
-1800                         -1-824 -2                                                                                      -1800                              -1-824 -2                                                                                                          -2 -
                                                                                                  000 5                                                                                                                             00 5                                                                                                            40 25
                                                                                                     0 00                                                                                                                     -26000 00                                                                                                         -26000 00
                                                                                         -2200                                                                                                                             -2200                                                                                                            -2200
                                                                                        0        -1                                                                                                                                -1

                                                                                                                  00
                                                                       -2000        2 50 -2100 700                                                                                                  -2000                  -2100 70
                                                                                                                                                                                                                                       0                                                                                -2000               -2100

                                                                                                               -23
                                                                                   -                                                                                                                                                                     -2400                                                                                                              -2400

                                                                                                                                       -23                                                                                                                     -23                                                                                                             -23

                        Lancaster Fault Map Evolution
                                                                                    0
                                                                                  40                    -1900                              00                                                                                    -1900                            0    0                                                                            -1900                          00           0
                                                                               -2                                                                                                                                                               -2200                                                                        -23                               -2200                         20
                                                                                                                                                                                                                                                                                                                                00                                                        -2
                                                  -1600                                                                                                                      -1600                                                                                                                -1600
                                                                                                                                                                                                                                                -21 -1                                                                                                        -21 -1                              100
                                                                                00                                               -180                                                                                          -2000               00 800                                                                                          -2000         00 800                        -2
                                                                          -22                                                        0
                                                                                                                                                                                                                                                                                                                                                                                                          00         -1800
                                                                                                                                                                                                                                                                                                                                                                                                         9
                                                                                                                                 -1                                                                                                                      -1                                                                                                              -1                           -1
                          0                                                                                                         7                      0                                                                                                7                  0                                                                                            70                                             0

                                                                                   60 00
                                                                                                                                                                                                                                                                                                                                                                                                                     -170
                   -1
                        40
                                           2009 pre-drill                                                                00
                                                                                                                                        00
                                                                                                                                                   -1
                                                                                                                                                        40
                                                                                                                                                                     2010 post-drill                                                         00
                                                                                                                                                                                                                                                            00
                                                                                                                                                                                                                                                                 1          40
                                                                                                                                                                                                                                                                                          2014 post-CPR                                                                       000

                                                                                 -1 -21
                                                                                                                   -1
                                                                                                                      5
                                                                                                                                                                                                                                         -1
                                                                                                                                                                                                                                            5             -1900 -                                                                                                        -2-1090

                                                                                     0

                                                                                                                                                                                                                   0
                                                                                                                                                                                                                                                                                                                                                                                  0

                                                                                                                                                                                                                60
                                                                                                                                                                                                             -1
                                                                                                                                                                                                                                                                                       -1800                                                                                                            -1800
       -14

                                                                                                                                       -14

                                                                                                                                                                                                                                                               -14
                                                                                                                                   -150                                                                                                                    -150                                                                                                             -150
                                                                                                                                             0                                                                                                                     0                                                                                                            0
                                                 00                                                                                                                          00                                                                                                                00
          00

                                                                                                                                          00

                                                                                                                                                                                                                                                                  00
               -1700

                                                                                                                                              -1700
                                          -14                                                                                                    -14                 -14                                                                                               -14
                                                                                                                                                                                                                                                                                            14
                                                                                                                                                                                                                                                                                        -17- 00                                                                                        -14              -1700 00
                                                                                                  00
                                                                                                                                                     0                                               -1600                                                                 0                                               -1600                                                           0                   5                      -1
                                                                                               -19                                                        0                                                                                                                      0                                                                                                            0             -1
                                                                               -1 000

                                                                                                                                                                                                                                                                                                                                                                                                                  00
                                                                 0

                                                                                                                                                                                                0

                                                                                                                                                                                                                                                                                                                  0
                                                              40

                                                                                                                                                                                             40

                                                                                                                                                                                                                                                                                                               40
                                                                                                                                                                                                                                                                                                                                                                                                               -14
                                                                                     0

                                                                                                                                                                                                                   00

                                                                                                                                                                                                                                                                                                                                       00
                                                                                                                                       00                                                                                                                   00                                                                                                               00
                                                                                  30
                                                                                 -2
                                                           -1

                                                                                                                                                                                          -1

                                                                                                                                                                                                                                                                                                            -1
                                                                                                                                                                                                                  3

                                                                                                                                                                                                                                                                                                                                        3
                                                                                                                                   2                                                                                                                       2                                                                                                               2

                                                                                                                                                                                                               -1

                                                                                                                                                                                                                                                                                                                                     -1
                                                                                                                                -1                                                                                                                      -1                                                                                    -16                       -1
                                                                                                                       0 0                                                                                                                                                           -1500                                                         00                                             -1500                     0
                                                                                                                                                                                                                                                                                                                                                                                                              -12 -130
                                                                                                                   -17
                                                                                                                                                                         -12                                                                                                                   -12
                                                                                                                                                                            0     0                                                                                                               00                                                                                                             00
                                                                                                    0                                                                                                                                                                                        -1400                                                                                                           -1400
                                                                                               80
                                                                                            -1
  00

         -1600                                                                                                                              -1600
   3
-2

                                                                                                                                                                                                                        -1

                                                                                                                                                                                                                                                                                                                                            -1
                                                                                                                                                                                                                           3

                                                                                                                                                                                                                                                                                                                                               3
                                                                                                                                                                                                                                                                                 -1200                                                                                                         -1200

                                                                                                                                                                                                                            00

                                                                                                                                                                                                                                                                                                                                              00
                                                                                                                                                    00                                                                                                                      00                                                                                                           00
                                                                                                                                              -11                                                                                                                  -11                                                                                                             -11

                                                                                                                                                                                                                                                                                                        0                                                                                                             0
                                                                                                                                                                                                                                                                                                     30                                                                                                            30
                                                                                                                                                                                                                                                                                                  -1                                         -14
                                                                                                                                                                                                                                                                                                                                                 0                                                              -1
                                                                                                                                                                                                                                                                                                                                                    0
                                                               00

                                                                                                                                                                                          00
                                                         -15

                                                                                                                                                                                      -15

                                                                                                                                                                                                                                                                                                                                          00
                                                                                                                                                                             -12                                                                                                                  -12                                  -15                                                                      -12
       -2100

                                                                                                                                                                                 0    0                                                                                                               00                                                                                                            0  0

                        -16                                                                                                                           -16   -1300                                                                                                                      -1300                                                                                                          -1300
                                                                                     -1400

                              00                                                                                                                         00                                                        -1400                                                                                                                                                                                   -1600
                                                                                                                     6   00
                                                                                                                  -1
                                         -1300

                                                                                                                                                                     -1300

                                                                                                                                                                                                                                                                                          -1300

                                                                                                                                                                                                                                                                                                                      00

                                                                                                                                                                                                                                                                                                                                                                                                                                 00
                   -19

                                                                                                                                                                                                                                                                                                                  -16

                                                                                                                                                                                                                                                                                                                                                                                                                                -16
                       00

                                                                                                                                                                                                                                     0                                                                                                                  0
                                                                                        0               0.25       0.5          0.75             1km                                                                0           -140
                                                                                                                                                                                                                               0.25       0.5           0.75               1km                                                          0           -140 0.5
                                                                                                                                                                                                                                                                                                                                                   0.25                0.75             1km
               -20

                                                 -1700
                  0

                                                                                                                                                                                                                                                                                                                                                                   0    0
                    0

                                                                                                                                                                                                                               00                                                                                                                0   0         -17
                                                                                                                                                                                                                           -15                                                                                                                -15
                                        -1800

                   00                                                                                                                             00
           -15                                                                                                                               -15
                                                    -150                                                                                                                      -150
                                                           0                                                                                                                          0

                     • New seismic techniques and increased well control have

                                                                                                                                                                                                                                                                                                                                                               00
                                                                                -1400                                                                                                                        -1400                                                                                                                 -1400

                                                                                                                                                                                                                                                                                                                                                            -18
                                                                                                                                                                     -1600                                                                                                               -1600 0                                                                                                         -1600 0
                                                                                                                                                                                                                                                                                               60                                                                                                              60
                                                                              00                                                                                                                               0                                                                            -1                                     0                                                                        -1

                                   allowed fault map to be continually improved
                                                                                                                                                                                                           0                                                                                                                     0
                                                                          -15                                                                                                                          -15                                                                                                                   -15
                                    0

                                                                                                                                                                 0
                                 40

                                                                                                                                                              40

           0   0                                                                                                                       0      0                                                                                                            0       0
                              -1

                                                                                                                                                           -1

       -16                                                                                                                         -16                                                                                                                 -16
                                                                                                                              -1700                                                                                                                -1700                                                                                                            -1700
                                                                                                                                                                                                                                                  0

                                                                                                                                                                                                                                                                                                                                                                    0
                                                                                                                                                                                                                                                 -170

                                                                                                                                                                                                                                                                                                                                                                -170
                        Hurricane | Devex 2015 | May 2015
                                                                                                                               -1800                                                                                                                    -1800                                                                                                        -1800                                              18
  00                                                                                                                             00                                                            00                                                        00                                                       00                                                                                                            00
Fault Ties to
Wells
•   Good tie between seismic
    interpretation at top basement
    with well-interpreted fault zones
                                        205/21a-4           205/21a-4z

                                              •     Indicates faults are
                                                    vertical or near-
                                                    vertical

                                              •     Accurate prediction
                                                    for future well
                                                    placement
Hurricane | Devex 2015 | May 2015
                                                                         19
The Lancaster
                                          Static Model

1.        Fault model (vertical faults)
2.        Distance from fault property
3.        Base Case facies model (40m
          wide fault zones)
Hurricane | Devex 2015 | May 2015
                                                          20
Dynamic Modelling

Hurricane | Devex 2015 | May 2015
                                    21
Historical DFN                                             DFN incorporating Fault
                                                             Zones and regional
Modelling                                                          joints

•   Discrete Fracture Network
    (DFN) modelling is
    designed to model the
    behaviour of individual
    fractures
•   A successful match to the
    205/21a-4z PLT was
    achieved                                                  Pressure snapshot

•   However, DFN models are
    not designed for
    production forecasting

Hurricane | Devex 2015 | May 2015   PLT derivative match                          22
Historical Sector Modelling
                                    •   4km x 4km sector model
                                        constructed to run in
                                        ECLIPSE
                                    •   Testing scenarios from 2013
                                        Competent Persons Report

•   Reasonable results achieved,
    but:
    - Long run times
    - Requirement to coarsen grid
    - Boundary edge effects
Hurricane | Devex 2015 | May 2015
                                                                 23
High-Resolution Simulator
• Dynamic modelling efforts provided valuable insight into properties of
    the field, indicating:
  - Highly connected hydrodynamic fracture network
  - Likelihood of supportive aquifer
  - Support for oil outside structural closure

• However, neither the sector or DFN model are suitable tools for full
    field simulation

• Therefore, a new solution was required that would allow practical
    simulation of the Lancaster Field

• INTERSECT, by Schlumberger, was selected for testing

Hurricane | Devex 2015 | May 2015
                                                                         24
Eclipse vs. Intersect Sector Elapsed Time
                      70

                      60

                      50
                                                                                                                                                                                                                                                                         Improved
                                                                                                                                                                                                                                                                         Run Time
Elapsed Time, hours

                      40

                      30

                      20
                                                                                                                                                                                                                                                           • On a comparable dual core machine,
                      10                                                                                                                                                                                                                                            INTERSECT improves run time of
                                                                                    Intersect                                                                          3 hours                                                                                      sector model from 65 to 3 hours
                       0
                           2014

                                  2015

                                         2016

                                                2017

                                                       2018

                                                              2019

                                                                     2020

                                                                            2021

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                                                                                                 2024

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                                                                                                                                                  2031

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                                                                                                                                                                              2035

                                                                                                                                                                                                           2036

                                                                                                                                                                                                                   2037

                                                                                                                                                                                                                               2038
                                                                                                                                                                                                                          Intersect Sector Elapsed Time
                                                                                                                                                                                                                   3

                                                                                                                                                                                                                  2.5

                      • INTERSECT allows better                                                                                                                                                                    2
                                                                                                                                                                                     Elapsed Time, hours

                                  scalability with more processor
                                  cores                                                                                                                                                                           1.5

                      • 16 core desktop workstation                                                                                                                                                                1

                                  runs sector model in 20 minutes
                                  (no change to results)                                                                                                                                                          0.5

                                                                                                                                                                                                                   0
                                                                                                                                                                                                                        2014

                                                                                                                                                                                                                                      2015

                                                                                                                                                                                                                                             2016

                                                                                                                                                                                                                                                    2017

                                                                                                                                                                                                                                                           2018

                                                                                                                                                                                                                                                                  2019

                                                                                                                                                                                                                                                                         2020

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                                                                                                                                                                                                                                                                                                                                               2030

                                                                                                                                                                                                                                                                                                                                                      2031

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                                                                                                                                                                                                                                                                                                                                                                           2034

                                                                                                                                                                                                                                                                                                                                                                                  2035

                                                                                                                                                                                                                                                                                                                                                                                         2036

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                      Hurricane | Devex 2015 | May 2015
                                                                                                                                                                                                                                                                                                                                                                                                              25
Benefits of INTERSECT
• High resolution model
  - Fine scale to model geological complexity of fracture network
  - No need to unrealistically upscale

• Unstructured grid
  - Enables more complex fault / fracture patterns to be modelled

• Faster run times
  - Allows many more simulation cases to be run in a realistic timeframe
  - Uncertainty analysis on many factors to increase confidence in range
       of outcomes
  -    Opportunity for full field simulation rather than limited sector model

Hurricane | Devex 2015 | May 2015
                                                                            26
Dynamic Modelling Process
Historic DFN
 and sector
 modelling                             INTERSECT
                                     sector model
                                      test runs vs.
                                         ECLIPSE      First pass full
                                                      field scenario
                                                        modelling         Further
                                                                        uncertainty
                                                                         analysis

                                    New dynamic                              Full field
                                    reservoir data                         development
                                     (205/21a-6)                             planning

Hurricane | Devex 2015 | May 2015
                                                                                          27
205/21a-6 – 2014
horizontal well results

 Hurricane | Devex 2015 | May 2015
                                     28
205/21a-6 – 2014 horizontal well
                                                                           205/21a-4Z
                                                         205/21a-6   205/21a-4      205/21-1A                              mTVDss
                                                                                                                            1000
                                    Structural closure
                                                                                                                            1200

                                                                                                Hurricane block boundary
                            1,380m TVDss                                                                                    1400

                            1,597m TVDss                                      -
                                                                                                                            1600

                            1,781m TVDss                                                                                    1800

                                                                                                                            2000

•   In 2014, Hurricane drilled the first 1km horizontal well targeting fractured
    basement on the UKCS
•   This highly successful well confirmed commercial rates from the basement
•   Provided new dynamic data for simulation modelling
Hurricane | Devex 2015 | May 2015
                                                                                                                                29
205/21a-6 – a high quality
                       dynamic dataset        • Max stabilised flow
                             205/21a-6 Well Test Overview                                                  Oil Production (STB/d)      Water Production (STB/d)          Downhole pressure (psig)
                                                                                                                                                                                                                           rates:
                                 10000                                                                                                                                                        1920
                                                                                                                                                                                                                           - 5,300 bopd (natural)
                                  9000                                                                                                                                                        1910
                                                                                                                                                                                                                           - 9,800 bopd (ESP)
                                  8000                                                                                                                                                        1900
                                                                                                                                                                                                                           - Both constrained by
                                  7000                                                                                                                                                        1890                           surface equipment
                                                                                                                                                                                                                       • No formation water
Liquid Production Rate (STB/d)

                                  6000                                                                                                                                                        1880

                                                                                                                                                                                                     Pressure (psig)
                                  5000                                                                                                                                                        1870                         encountered
                                  4000                                                                                                                                                        1860
                                                                                                                                                                                                                       •   World class P.I.
                                  3000                                                                                                                                                        1850
                                                                                                                                                                                                                           - 160 stb/d/psi
                                  2000                                                                                                                                                        1840
                                                                                                                                                                                                                       • Minimal skin
                                  1000                                                                                                                                                        1830

                                                                                                                                                                                                                       • Excellent quality
                                      0
                                 16/06/14 10:00:00   17/06/14 10:00:00   18/06/14 10:00:00   19/06/14 10:00:00     20/06/14 10:00:00   21/06/14 10:00:00     22/06/14 10:00:00
                                                                                                                                                                                             1820
                                                                                                                                                                                   23/06/14 10:00:00                       dynamic dataset

                            Hurricane | Devex 2015 | May 2015
                                                                                                                                                                                                                                                 30
Simulation Model

• Currently simulating single
   well in full field model
• Ability to increase to
   simulation of full
   development plan
Hurricane | Devex 2015 | May 2015
                                    31
First Pass Simulation Well Test
Match

• Excellent well test match achieved with a range of scenarios
• No barriers observed
• Extremely well connected system
Hurricane | Devex 2015 | May 2015
                                                                 32
Implications from First Pass
Simulation Results
                                    • Plateau response, no
                                     immediate decline
                                    • Does not require 2km
                                     horizontal well to
                                     achieve commercial
                                     rates
                                    • Potential for reduced
                                     well count in Full Field
                                     development

Hurricane | Devex 2015 | May 2015
                                                                33
Conclusions
• Acquiring a high quality dynamic dataset from the 2014
    horizontal well has improved Hurricane’s understanding of the
    behaviour of the fractured basement reservoir

• Utilising an innovative high-resolution simulator (INTERSECT)
    has been key to modelling this challenging reservoir

• This work represents a step-change in Hurricane’s ability to
    continue unlocking value in this emerging play of the UKCS

• Work is ongoing to feed into Full Field development planning
  - Presentation this afternoon by Neil Platt, COO, on hub development
       concepts
Hurricane | Devex 2015 | May 2015
                                                                     34
Questions & Answers

Hurricane | Devex 2015 | May 2015
                                         35
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