Fast Exploration. Acceleration of Exploration Phase Due to a More Aggressive and More Risky Exploration Program
D. Khakimov, F. Bikbaev and R. Ukurov
Event name: ProGREss'19
Session: Pitch Session «Solutions in O&G Exploration» / Питч сессия «Поиск решений в ГРР»
Publication date: 05 August 2019
Info: Extended abstract, PDF ( 465.73Kb )
Price: € 20
Exploration phase in an average acreage in Russia usually takes 5-7 years, and usually includes creating detailed exploration program approved by government regulators, 2D or 3D seismic surveys, exploration drilling. The duration of exploration work is associated with the need to perform work consistently, with the gradual removal of geological uncertainties with minimal risks and investments. This approach provides more flexibility to change the exploration program in case of new information at any step, which helps to avoid design errors and drilling of "dry" wells. On the other hand, "slowness" in exploration greatly reduce project economy and even can lead to a negative NPV and EMV. Accelerating the exploration program for one-year increase EMV value to 10%, and give additional value from 200 million rubles to 2 billion rubles depending on the project. This effect achieved by involving into production one year earlier resulting earlier positive cash flow. To assess the economic effect, the authors selected a typical license block located in the Khanty-Mansiysk Autonomous District. Economical calculation showed that exploration phase period could be reduced from 6 to 3 years without losing any geological information and EMV increasing 1.5 times.