GCA held one of its regular industry seminars on the 18th May and welcomed over 130 senior attendees from the London, European and Global operating, financial and insurance sectors. The theme was “Value Creation in the Current Market” which GCA addressed from the perspective of three business streams; Exploration, M&A and Gas to Power using its perception of existing drivers and opportunities in the current greenshoot environment. GCA’s extensive understanding of the market conditions and available opportunities, built on over 200 projects a year, was leveraged to feedback a consolidated international view to the audience.
The abstracts and presentations are available to view or download using the links above.Read more
Exploration for hydrocarbons has been a pre-requisite to economic development since the industrial revolution.
Conventional exploration is under attack. With the growth of renewables in the energy mix, the slump in oil prices from the end of 2014 and a 'lower for longer' assumption, conventional explorers are employing different survival mechanisms to navigate a demanding environment.
Reserves Replacement Ratios (RRR) and Reserves to Production Ratios (R/P) appear outdated balance sheet indicators of performance; since 2014, companies are focussed on three major metrics; rate of return, breakeven development costs/barrel and an overall reduction in risk. There has been a shift away from high cost, complex projects with long lead times towards lower cost, lower risk projects.
In this talk, GCA's Rebecca Jones, a Senior Geoscience Advisor, examines the key metrics of change from exploration past to exploration future for a number of exploration companies in different basins of the world, and shows how a radical rethink in exploration strategy is enabling conventional explorers to stay in business.
You can read her presentation below, or download a copy here:Read more
As the "easy oil" disappears, options for future production will be based on “Unconventional Reservoirs” (Tight/Shale Oil), on the implementation of best management practices and application of Improved Oil Recovery processes (IOR) predominantly on Heavy, Extra Heavy Oil and Tar Sands. While much of the recent discussion on where the marginal barrel of new oil will come from focuses on unconventional plays, it misses the equally large upside from already discovered fields, in the form of IOR.
This article discusses the nature of IOR projects, identifying reasons why insufficient attention is paid in the design of IOR pilots, reducing the potential of booking additional reserves, leading the industry to come up short in the contribution that this activity could bring.Read more
A medida que desaparece el "petróleo fácil", las opciones de producción futura estarán basadas en "no convencionales" como el petróleo de esquistos (Tight/Shale Oil), en la implementación de las mejores prácticas gerenciales y en la aplicación de los procesos de recuperación mejorada de petróleo (IOR por sus siglas en Ingles) predominantemente en yacimientos de Petróleos Pesados, Extra Pesados y Arenas Bituminosas. Si bien gran parte de la reciente discusión acerca de dónde vendrá el barril marginal de petróleo nuevo se centra en "no convencionales", de igual manera se ha subestimado el gran potencial de producir petróleo adicional de campos maduros mediante procesos de IOR.1
En este artículo se discute la naturaleza de los proyectos IOR, identificando las razones por las razones por las cuales se presta poca atención al diseño de los pilotos de IOR, disminuyendo así el potencial de incorporar reservas adicionales de petróleo, llevando a la industria a acortar la contribución que esta actividad podría traer.Read more
GCA's Drew Powell had an article on an 'Holistic View for Asset Evaluation' published in the October 2016 SPE Review. The article is re-produced below, or you can download the original version here.Read more
Integrated reservoir modelling is a key component of field development planning and GCA has extensive experience in building reservoir models for this purpose. While the benefits of an integrated approach to subsurface modelling are widely recognized within the industry, some companies still struggle to achieve true integration. GCA's project teams include all the necessary technical disciplines, usually in a single location, and are led by an experienced project manager. Further, GCA can include facilities engineers, petroleum economists and monetization experts in the team to offer a truly comprehensive, integrated solution to all field development challenges.
To download this brochure as a PDF please click here or in the sidebar below (696KB).Read more
Billions of barrels of hydrocarbons contained within world class carbonate reservoirs lie beneath circa two kilometres of salt in the Santos and Campos Basins of offshore Brazil. At the time that the pre‑salt petroleum system was developing (Aptian), Brazil was immediately adjacent to the Salt Basins of West Africa extending from the Niger Delta in the north to the Walvis Ridge in the south (Figure 1). With the success of the Brazil pre-salt, it is no surprise that interest in the pre‑salt plays of West Africa has developed, but to what extent is Brazil an analogue?Read more
The Acquisition and Divestment (A&D) market has changed. Previously, exploration and discovery upside was sought after with new development potential or undeveloped acreage firmly part of the transactional value expectation.
However the A&D market has moved, with value now focussed on mature, developed assets that bring instant cashflow. With the change in focus, the due diligence of assets for a potential transaction also requires modification, with the focus now being on enhancement and improvement of current operations, and as such, asset due diligence now requires far more detailed consideration of the surface facilities, costs and abandonment liabilities.Read more
Gaffney, Cline & Associates (GCA) is a global consultancy that has been offering technical, commercial, and strategic advice to the oil and gas sector for more than 50 years. GCA is well known as one of the leading suppliers of Reserves and Resources assessments, which are required for many purposes including statutory reporting, stock exchange listing, development planning,project finance, and asset valuation. GCA has undertaken many thousands of Reserves and Resources assessments covering all types of reservoirs and hydrocarbons and all the world's major petroleum basins. To illustrate the breadth and depth of GCA's work, brief summaries of some projects recently undertaken by GCA have been provided in the following pages.
Read on, or download a copy of the brochure, here.Read more
Unconventional reservoirs present many technical challenges to those charged with quantifying reservoir character and performance (Bust, Majid, Oletu & Worthington 2013). One of these challenges concerns the identification of net pay. The role of net pay in unconventional reservoirs continues to evolve as a design criterion for reservoir stimulation and well completions. Unlike conventional reservoirs, shale-gas development is not yet at the stage where longstanding net-pay protocols have been tried and tested. Therefore, any protocol has to be regarded as being at a pilot stage, especially in view of the complexity of shale-gas systems.Read more
In February, GCA reported on the state of Argentina as its new president settled in (see No Need to Cry for Thee, Argentina). The article concluded that the issues to be addressed are not about the rocks (which specifically holds true for the excellent Vaca Muerta shale) but about the cost of operating.Read more
In April 2016 GCA was invited to speak to the London Engineering Group (LEG) about Shale Gas in the UK. LEG is a consultative body for insurers of engineering class risks providing a forum for discussion and education. The talk was an introduction to technical issues pertaining to shale gas and oil to a technical, but non-geoscience audience. The aim was to impartially separate myths from reality, discuss the conventional and unconventional onshore activity in the UK and outline the regulations and risk management that is applicable in the UK.
A copy of the presentation can be read below, or downloaded here.Read more
A long history
Historically the Central Atlantic African continental margin has shown much promise for the development of hydrocarbon plays and discoveries, since the early discovery of small onshore gas fields in Senegal in the early 1960s, small offshore oil fields in Benin in the late 1960s, and larger, but sub-commercial heavy oil offshore Senegal, also in the late 1960s.
Despite this early proof of viable petroleum systems and subsequent steady exploration activity, significant developments have been slow to arrive. However, following recent exploration success, and release of key information by the relevant operators on the status of their exploration and development programmes, Gaffney, Cline & Associates (GCA) has undertaken a review of the Central Atlantic African margins to synthesise the available non-proprietary data and information to identify likely future exploration trends.Read more
Integrated Reservoir Modelling is a fully combined view of the reservoir for several possible purposes. Read more below about how GCA's Integrated Reservoir Modelling skills can help, or download a copy here.Read more
In March 2016, GCA presented at the APPEX Global Property and Prospect Expo in London. Jeremy's Berry's title was "Mature Basins of West Africa: Still where future production growth lies?"
Jeremy began his talk by comparing the Proved Reserves, Daily Production and Rig Count statistics from several West African countries. He went on to consider the issues facing players in selected emerging and mature basins within these countries in the coming few years.
You can download the presentation here as a pdf (1.5 MB), or view the full presentation by clicking below.Read more
The aim of the seminar is to provide attendees with an understanding of the methodologies used to determine equity participation in hydrocarbon reservoirs, both at the initial unitization stage and during any subsequent redetermination exercises. The interdisciplinary nature of field unitization, which can involve geoscientists, engineers, administrators, lawyers and accountants is primarily technical in the determination of equity but by its nature the outcome is commercial.
The seminar will complement industry best practice, offer appropriate examples and incorporate the client's data and requests.
Follow this link to download the seminar flyer (115KB) or read more below.Read more
Gaffney, Cline & Associates (GCA) offers a focused one-day seminar on industry best practice and common pitfalls associated with geocellular modelling. The course will present the importance of understanding the geological concept and data uncertainty prior to model building; avoiding reliance on the specific software capabilities.
Appropriate model workflows for alternate model scenarios will be considered, along with the importance of data integration. This course is not focused on software, and will deliver understanding and key principles that should be considered before and during the geocellular modelling process.
Download a copy of the course details here (122KB) or read more below.
A three day Advanced Geocellular Modelling course is also available and is outlined here.Read more
Recent advances in geocellular modelling often overlook the importance of fundamental geological concepts; environment of deposition and process, facies, reservoir architecture, net to gross, and how each of these components are appropriately represented in the geocellular model.
This course does ot rely on the prior knowledge or understanding of any particular modelling software. Instead the course aims to explain the importance of these fundamental concepts and teh optimal method of integrating and translating basic geological concepts into a geocellular model.
GCA will present Case Studies to demonstrate the outcome of different approaches to assessing reservoir volumes, connectivity and how these assumptions affect management decisions.
The attendees will be guided through the importance of all datasets and the process of integrating geological, petrophysical, geophysical, production data and analogue models. The attendee will leave with an understanding of the relative importance of each dataset and how each influences different aspects of reservoir architecture and flow behaviour.
Read the course summary below or download a copy here.Read more
In July 2015, GCA attended the London MMEA Scout Groups’ Meeting.
At the event Chris Rachwal gave a presentation called "Exploration/Development Opportunities in Central and Southern Africa in a $60/Bbl Oil, $3/Mcf World".
You can download the presentation here as a pdf (7MB), or view the full presentation by clicking below.Read more
As a result of recent offshore successes in Mozambique and Tanzania, the entire East Africa margin currently has the attention of the world’s new ventures teams, explorers and gas (LNG) buyers. What might happen next in this new hydrocarbon province?Read more
In January 2014, Dr. Stephen Wright of GCA attended a Deloitte and Clyde & Co seminar on "Oil and Gas in East Africa: A guide to the market", where he gave a presentation on What's Left in East Africa from a subsurface perspective.
You can download the presentation here as a pdf (3MB), or view the full presentation by clicking below.Read more
West Africa, from Morocco in the north to Namibia in the south, produces about 6% of the world’s oil (averaging 5.2MMbo/d in April 2014; EIA’s International Energy Statistics). West African production grew through the 2000s, reaching 5.5MMbo/d in 2010, but since then has shown an 8% decline to today’s volumes. However, the region as a whole is responding, with 14% of the current global offshore rig count active in Africa, up from 7% in 2004. The number of rigs active offshore Africa doubled in 2010, and has continued to climb through to the current day.Read more
In June 2014, GCA hosted a workshop at the Institute of Directors in London on the subject of East Africa.
This presentation was given by GCA's Jeremy Berry at the event.
You can download the presentation here as a pdf (2MB).Read more
In June 2014, GCA hosted a workshop at the Institute of Directors in London on the subject of East Africa.
This presentation was given by GCA's David Jarrett at the event.
You can download the presentation here as a pdf (5MB).Read more
On 29th January 2014, GCA hosted a workshop at The Royal Institution in London on the subject of West Africa.
This presentation was given by GCA's Nick Stronach at the event.
You can download the presentation here as a pdf (1MB), or view the full presentation by clicking below.Read more
gaffney-cline & associates