Characteristics of the Gidgealpa Group Composite Resource ...

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Characteristics of the Gidgealpa Group Composite Resource Play in the Cooper Basin, South Australia Sandra Menpes, Anthony Hill and Dominic Pepicelli* DMITRE Energy Resources Division

Transcript of Characteristics of the Gidgealpa Group Composite Resource ...

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Characteristics of the Gidgealpa Group Composite Resource Play in the Cooper Basin,

South Australia

Sandra Menpes, Anthony Hill and Dominic Pepicelli*

DMITRE Energy Resources Division

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Presentation Outline

1. The “Composite Resource Play” a) Where?

b) What?

2. Evidence for Composite Gas Resource Accumulations

3. Analysis of Historic Conventional Gas Production

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Presentation Outline

1. The “Composite Resource Play” a) Where?

b) What?

2. Evidence for Composite Gas Resource Accumulations

3. Analysis of Historic Conventional Gas Production

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Cooper Basin Location • First commercial

gas discovered in 1963.

• Has produced over 5 tcf of gas.

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Cooper Basin Geology

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Presentation Outline

1. The “Composite Resource Play” a) Where?

b) What?

2. Evidence for Composite Gas Resource Accumulations

3. Analysis of Historic Conventional Gas Production

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The Composite Resource Play

Unconventional Gas in the Gidgealpa Group:

o Shale Gas

o Tight Sands

o Deep Coal Seams

“Composite Gas Resource

Accumulation”

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Composite Gas Resource vs Basin-centred Gas • Basin-centred gas accumulations

previously limited to sandstone reservoirs (Cumella et al, 2008).

• Gas production from fracture stimulated mudstones and coals indicates that a range of lithologies can contribute to gas production from desiccated, gas saturated intervals.

• The term “Composite gas resource accumulation” is used to capture the range of potential reservoir lithologies within the gas saturated zone.

Regional east-west cross section through the northern Piceance Basin depicting the regional distribution of gas and water within the Mesaverde (from Yurewicz et al, 2008. AAPG © 2008. Reprinted by permission of the AAPG whose permission is required for further use).

Mesaverde Group, Piceance Basin analogue for Gidgealpa Group, Cooper Basin

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Composite Resource Play Fairway

Figure sourced from Beach Energy

Base Patchawarra Depth Structure Map showing Unconventional Wells

Gidgealpa Group

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Composite

Resource Play Elements

Coal and carbonaceous shale of the Patchawarra Formation are the principal

source rocks of the Cooper Basin, in terms of richness, quality and thickness.

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Presentation Outline

1. The “Composite Resource Play” a) Where?

b) What?

2. Evidence for Composite Gas Resource Accumulations

3. Analysis of Historic Conventional Gas Production

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Gas Saturated Gidgealpa Group

EVIDENCE (Hillis et al, 2001)

• High resistivity of the Gidgealpa Group (>20Ωm over large intervals);

• Tests recovered gas with no water; and

• Overpressure

Nappamerri Trough

High resistivities in the Permian succession of the Nappamerri Trough suggest gas saturation

(from Hillis et al, 2001).

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Patchawarra Formation Overpressure

Patchawarra Formation pressure gradient data derived from DSTs and other data sources. Water pressure gradient is 0.43 psi/ft. Gradients exceeding ~0.45 psi/ft are indicative of overpressured gas. Overpressured gas in the Patchawarra Formation occurs at depths exceeding ~9500’ (~2900m).

6000.00

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0.200 0.300 0.400 0.500 0.600 0.700 0.800

Series1

Pressure Gradient (psi/ft)

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pth

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Beanbush 1 Kirby 1

Burley 1

Bulyeroo 1

Encounter 1

Coonatie and Moomba gas fields

Base Patchawarra Depth Structure Map showing Coonatie and Moomba gas fields and selected wells.

0.45

9500

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Average Porosity and Permeability of Patchawarra Reservoirs

Average Porosity (left) and Permeability (right) of Patchawarra Formation, Cooper Basin (Heath, 1989)

POROSITY < 9% in the deeper troughs

PERMEABILITY <0.1mD in the deeper troughs

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“REM” Shale – Not self sourcing shale play

HI’s < 200 for range of

maturities indicates

TYPE III organic matter

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Migrated gas stored in REM shale?

3503.5m: Typical area of clays (lighter grey – dominated by muscovite/illite), quartz (medium grey) , siderite (white) and organic matter (black). Photo shows elongate nature of micropores

along cleavage traces in the muscovite/illite. Back scattered electron photomicrograph.

3503.5m: 3384.50m: Nanopores (arrows) at junctions between mineral matter (light grey) and organic matter (dark grey) . Secondary electron photomicrograph after dual beam focussed

ion beam milling.

• Interparticle and intraparticle pores associated with detrital illite and other minerals may be important and these pores could be interconnected.

• Intra-organopores are rare (consistent with dominance of Type III organic material).

• Inter-organopores along the interface with detrital minerals provide 1-2% nanoporosity and could be significant where organic matter concentrates in muddy laminae.

Encounter 1 REM Core Petrology Study - Dr S E Phillips, PGPC in Encounter 1 WCR

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Deep Coal Gas

Paning 2: Single 63,000 pound proppant fracture stimulation in Toolachee coal seam (~2900m) – Short term production test flowed gas (no water) at up to 90,000 scf/d, flared continuously over four days.

Patchawarra Formation Cumulative Coal Thickness

Toolachee Formation Cumulative Coal Thickness

http://www.santos.com/library/110909_International_Investor_Presentation.pdf

(Senex Energy Limited Monthly Drilling Report – May 2013, released 5 June 2013)

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Deep Coal Gas GIDGEALPA GROUP COALS • Enormous generative potential. • Very high gas contents where thermally mature.

High gas contents indicated by high mud gas readings when drilling through thermally mature coal seams.

Bindah 3 Patchawarra Formation VC50 Coal - Just in wet gas generation window . Large remaining generation potential.

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Cooper Coals HIGH INERTINITE CONTENT MEANS ABUNDANT PRESERVED

MACROPOROSITY • Inertinite coal maceral group derived from charred and biochemically altered plant cell wall material. • Inertinite is more or less non-reactive during carbonization. Liptinite and vitrinite melt with the evolution of

volatiles, inertinite generally remains intact. • SEM work on VC50 coal from Bindah 3 has shown that the coals contain significant macroporosity (>50nm).

Bindah 3 VC50 coal (8971’ 5”), SEM micrograph showing microporosity (from Weatherford Laboratories petrology report in Bindah 3 Well Completion Report).

Bindah 3 VC50 coal (8977’ 5”), SEM micrograph showing microporosity (from Weatherford Laboratories petrology report in Bindah 3 Well Completion Report).

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Presentation Outline

1. The “Composite Resource Play” a) Where?

b) What?

2. Evidence for Composite Gas Resource Accumulations

3. Analysis of Historic Conventional Gas Production

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Moomba Gas Field

• Discovered 1966.

• Large volume, conventionally trapped gas field.

• Has produced > 1 tcf gas, mostly from the Toolachee and Daralingie formations.

• Located on margin of Nappamerri Trough.

Moomba Gas Plant, South Australia – from Santos Cooper Basin Unconventional Gas Opportunities

and Commercialization, Nov 2012

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Moomba Central Decline Curve Analysis

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Moomba Central Decline Curve Analysis

• Extended period of low rate decline has best fit b-factor between 0.5 – 1.0

• More typical of shale or tight gas production.

• Fetkovic et al. (1996) – “low-permeability, stimulated wells’ production performance can appear similar to layered, no-crossflow reservoir response”.

• Strong evidence to suggest that gas production from this field has been supplemented by tight lithologies and possibly coal seams.

MOOMBA CENTRAL Production predominantly from the Toolachee and Daralingie formations above the deeper continuous gas accumulation.

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Moomba North Main and North West Top of Nappamerri Trough Continuous Gas Accumulation?

MOOMBA 86: 2.6 BCF gas produced from the Epsilon Formation – NO WATER

MOOMBA 134: 5.2 BCF gas produced from the Epsilon Formation – NO WATER

Moomba North West: >14 bcf gas, no water, produced

from Patchawarra Formation

Moomba North Main

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Moomba North Main “Sweet Spot” – Epsilon Formation Shoreface Sands

Moomba 134

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Conclusions

• Unique unconventional resource play in the deep troughs of the Cooper Basin.

• Evidence suggests tight sands, mudstones and deep coals will contribute to future gas production – the accumulations are here described as Composite Gas Resource accumulations.

• Initial unconventional resource estimates for the Cooper Basin are high:

• Early stage 2C contingent unconventional gas resources total 4.6 TCF

• EIA estimates a risked recoverable amount of 79.9 TCF dry gas

• Exploration and appraisal phase ramping up.

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Thank you