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    Kirk Petrophysics Limited

    Unit 1b Henley Park

    NormandyGuildford

    Surrey

    GU3 2DX

    UK

    Tel +44 (0)1483 235183

    Fax +44 (0)1483 236779

    CORE AND SAMPLE TRANSFER AND STORAGE

    PROTOCOL

    Document: KP/Proposal/08/02/2010

    VERSION 2.08THFEBRUARY 2010

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    TABLE OF CONTENTS

    EXECUTIVE SUMMARY

    OVERVIEW OF RESERVOIR GROUP CORE SERVICES

    RECOMMENDED PROCEDURES FOR THE PACKING AND TRANSFER OF THE BGS DATASETSTAGE 1 REMOVAL FROM CURRENT LOCATION AND FITTING TOGETHER

    STAGE 2 OPTION; CORE PHOTOGRAPHY

    STAGE 3 USE OF CORE BAGS AND VACUUM SEALING

    STAGE 4 PREPARATION FOR TRANSIT

    STAGE 5 LOAD AND TRANSFER

    STAGE 6 UNLOAD AND STORE

    SUMMARY

    APPENDIX A ESTIMATED COSTS

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    EXECUTIVE SUMMARY

    There exists the possibility that as a result of the intended closure of the BGS Core Store at Gilmerton, Edinburgh

    all core material will be transferred to the BGS Core Store at Keyworth, Nottingham a distance of

    approximately 290 miles.

    Any movement of core material has the potential to cause physical damage to the core whether visibly

    apparent or not. However, there are various procedures and techniques that may be employed to limit damage

    to an acceptable level.

    The following procedures and recommendations are those routinely employed by Reservoir Group Core

    Services, the collective name of Kirk Petrophysics and Storecore, specialists in the handling, storage and analysis

    of core. It is critical that adequate handling procedures are employed failure to do so limits the accuracy of

    core data. The economic impact of erroneous analysis can be massive, especially when the consequences of

    inferior or inadequate data are not fully realized. Kirk Petrophysics and Storecore have invested considerableresources into developing a range of methods and products to protect core and sample integrity - from handling

    at the wellsite through transport to final long term storage.

    Storecore has also gained significant experience in managing large scale transfers of core material by road and

    air. Nearing completion is the relocation of all stored materials from the original Storecore facility to the new

    Core Services facility in Guildford a similar operation in scope to the proposed Gilmerton transfer.

    In addition Storecore takes an active role in managing core and sample condition once in storage and has

    developed a range of methods to preserve the condition of sample material from surface stabilisation

    techniques to innovative core containers.

    This document outlines the recommended procedures for handling, transporting and storing core material that

    may be applied to the proposed transfer of the BGS data set. As appendix A a cost estimate for the provision of

    these methods is provided.

    CONTACTS

    The principal contact in connection with this document is:

    Name: Chris Holmes

    E-mail: [email protected]: +44 1483 235183

    Mobile: +44 7919 046 083

    Fax: +44 1483 236779

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    OVERVIEW OF RESERVOIR GROUP CORE SERVICES

    INTRODUCTION

    The merger in 2008 of Kirk Petrophysics and Storecore forms the new Core Services division of Reservoir

    Group, an emerging global leader in down-hole tools, technologies and associated sub-surface services.

    KIRK PETROPHYSICS was incorporated in 1992 and since then has focused on providing reliable wellsite core

    handling services and third party quality control. Unique and innovative solutions derived from a commitment

    to research and development have been introduced to respond to the demands of the oil & gas industry.

    STORECORE was formed in 1996 and prior to merging with Kirk Petrophysics had developed a high level of

    expertise in many geological fields from core analysis to core and sample storage.

    The integration of services available from Kirk Petrophysics and Storecore to form the Reservoir Group CoreServices Division allows the provision of flexible, innovative and efficient solutions from core acquisition to final

    archive storage.

    Note: Elements in green identify the entities directly involved in providing the services described

    ReservoirGroup

    DowdcoReservoirGroup Core

    Services

    CorproSystems

    StorecoreKirkPetrophysics

    OmegaData

    ExtremeMachining

    InfoAsset

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    Wellsite/Rig1. Consultancy and Project Management2. Sample Acquisition and Preservation:

    Core/SWC, Cuttings, Mud and Fluids,

    Plugs Lithotarge,Lithofreeze,

    Lithoseal

    3. Data Acquisition: Core Gamma logging,Photography, Routine Core Analysis,

    Tracer Analysis Xtrem UV, Lithocore,

    Lithoscan, Litholight

    4. Sample Transfer and Management Lithotrack, iAsset

    Analysis Hot Shot1. Consultancy and Project Management2. Porosity/Permeability3. Biostratigraphy4. Chemostratigraphy

    Core Processing/Analysis1. Programme Design and Management2. Core Gamma Logging3. CT Scan (Core and Plugs)4.

    Core Plugging

    5. Core Slabbing6. Archive Core -Tray Resination / Perspex

    Cover

    7. Core Photo White Light and UV (Inc360 Panoramic, Macro, Xtrem UV)

    8. Routine Core Analysis (RCA) -Porosity/Permeability/Grain Density

    9. Tracer Analysis10.Quality Control of third party data

    Supplementary Processing/Analysis1. Programme Design and Management2. Special Core Analysis (SCAL)3. Geochemistry4. Biostratigraphy5. Chemostratigraphy6. Digital Core Analysis (Fast turnaround

    RCA and SCAL)

    7. Interpretation and integration withother analyses8. Quality Control of third party data

    Sedimentology1. Programme Design and Management2. Core Logging3. Borehole Imaging4. Interpretation and integration with

    other analyses

    Petrography1. Programme Design and Management2. Thin Section Preparation and

    Description

    3. X-Ray Diffraction4. Scanning Electron Microscopy (SEM)5. Particle Size Analysis (LPSA/Sieve

    Analysis)

    6. Interpretation and integration withother analyses

    Storage1. Data Management

    a. Maintenance Ensures preservation ofvalue and quality of derived data

    b. Data Access (iAsset) Efficient and securesharing ofdata

    c. Legislation (DECC) Legalrequirementsmet

    2. Sampling/Sample transfer Management ofmaterial - tracking

    3. Viewing/Workshops ForPartners, furtheranalysis, correlation with other wells,planning

    Supporting Analyses1. IR Spectroscopy Mineral mapping2. Scratch test UCS rock mechanics3. Schmidt Hammer UCS rock mechanics4. 3D Goniometry Structural analysis5. Portable XRF Elemental analysis6. Mini-Probe permeametry Quick

    permeability data

    7. Heavy Oil analysis Bitumen Extraction8. Consultancy, Interpretation and

    integration with other analyses

    Chart illustrating the products and services available through Core Services and how they are linked

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    Head office, laboratory and storage facilities are based in Guildford, Surrey, UK. An additional storage facility

    was opened in November 2008 in Aberdeen, Scotland, UK to provide an operational office to answer the

    demand for UK North Sea operations. More recently a storage and laboratory facility has been established in

    Madagascar to support an extensive drilling campaign. In addition supply bases have been establishedworldwide; Africa, Gabon, Congo, Angola and Tunisia...

    Services available can be divided into four areas:

    1. Wellsite services including Coring Supervision and Core Stabilisation

    2. Core Handling and Processing (pre and post-core analysis)

    3. Geological services including Routine Core Analysis and SCAL

    4. Storage, Sample Maintenance and Data Management

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    RECOMMENDED PROCEDURES FOR THE PACKING AND TRANSFER OF THE BGS

    DATASET

    OVERVIEW

    The core material is currently stored in the following manner:

    All core sections are generally 1m or 3 in length and are slabbed sections i.e. a core slice taken

    along the long axis of the core.

    All core is unwrapped. Any wrapping is routinely removed on arrival at the Gilmerton site to allow

    direct access to the core for sampling etc.

    A variety of cardboard boxes are used to store the core which may hold between one and three core

    lengths per box.

    Boxes are stored in bays and are not palletised

    The following procedures therefore have three main purposes:

    1. To stabilise the core during transit primary importance is given to restricting movement of the core

    within each box to prevent core pieces becoming displaced.

    2. To protect the core during transit primary importance is given to limiting any physical damage to the

    core, whether through crushing, shock loading or abrasive action of one core piece against another.

    3. To protect the core during final long term storage primary importance is given to limiting degradation

    of the core by weathering

    An additional option of Core Photography is included. As each section of core will need to be handled as part ofthe preparation for safe transit this would represent an opportunity to conduct the photography with a lower

    cost implication. Similarly a bar-coding system may be implemented during the transfer process to provide

    more efficient Data Management in the long term although this option is mentioned, implementation of such

    a system is beyond the scope of this document.

    Left: Unwrapped core is free to

    move in the core box during

    transit with the possibility of

    sections becoming displaced or

    damaged.

    Right: Unwrapped core open to

    the atmosphere decays at a

    faster rate than wrapped core

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    CHART ILLUSTRATING THE PROPOSED PROCEDURE FOR CORE TRANSFER

    Boxed core stored in bays within

    Gilmerton Core Store

    Transfer to photography rig if new

    digital photographs required

    Fit together core onto temporary

    plastic cradle arrange sampling

    cards so they are visible and orient

    any misplaced core pieces (Existing

    core photographs if available may

    be used to assist) Perform high resolution White Light

    photography

    Slide core into foil core bag with

    clear viewing panel remove the

    plastic core cradle and vacuum seal

    the core bag

    Return core to original core box and

    stack on designated pallet

    Once pallet is at recommended

    capacity apply pallet wrap andbinding to secure pallet contents

    apply pallet identification number

    Load pallet onto articulated lorry

    using Transfer Pallet if required.

    One pallet per consignment to be

    fixed with Lithotrack monitoring

    device

    Transfer by road to Keyworth facility

    unload on arrival, visual check of

    each pallet for damage and

    download and analysis of Lithotrack

    data

    Re-install into storage as required

    leaving the core in the core bags to

    provide ongoing protection

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    STAGE 1 REMOVAL FROM CURRENT LOCATION AND FITTING TOGETHER

    Before any core boxes are moved it would be necessary to determine the method of tracking all movements of

    the core with respect to location. If a bar coding system is employed this could be a relatively straightforwardprocess of assigning a pallet number to each core box and re-assigning with a bay number when the core is

    placed into storage at the Keyworth facility. If such a system is not employed (as is the case) the new location of

    each box at each stage would need to be updated in the existing database manually or by using hard copy check

    lists. The transfer would present an ideal opportunity to adopt a bar-coding system. Storecore has

    implemented a bar-coding system during the recent move to the new Core Services facility. Each item (box) has

    a unique barcode, as does each pallet and each storage bay. Managing the storage and tracking of material

    therefore becomes a simple and efficient process. A more detailed overview of a suitable system is beyond the

    scope of this document, however Storecore would be able to provide further details as required.

    Once retrieved from storage each box would be taken in turn and carefully opened to reveal the core sections

    which would then be fitted together. The term fitting together refers to the process of assembling andaligning all core pieces into their original position. Core photographs may be used if available to assist with this

    process which may be made more difficult for heavily sampled sections of core. During this process Storecore

    would routinely conduct a condition assessment of the core. The database may then be updated with this

    information enabling the scheduling of maintenance as required if not conducted immediately. It is proposed

    that the core be assembled using plastic core cradles to support the core. Core cradles are essentially 1m long

    sections of plastic half-pipe that allow core sections to be assembled and moved easily and safely.

    STAGE 2 - CORE PHOTOGRAPHY

    It has been proposed that the opportunity to re-photograph the core be taken as

    part of the transfer process as each core section will need to be handled to prepare

    it for transfer. Conventional core photography is not a rapid process, however Kirk

    Petrophysics has developed a self contained portable photography unit designed for

    use at the wellsite. Use of this system may prevent delays in the transfer process. If

    the system is adopted the core while still in the core cradle would be loaded into the

    photography unit immediately after fitting together. The core surface would be

    gently cleaned if required before high resolution white light images are taken. It is

    unlikely UV images would be of value, especially of older core as the core has been

    stored effectively open to the atmosphere with the likelihood that hydrocarbons

    would have evaporated.

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    Example White Light core photograph

    STAGE 3 USE OF CORE BAGS AND VACUUM SEALING

    As previously mentioned the key objectives in preparing the core for transport and long term storage are to

    stabilise the core during transit, protect the core from abrasion damage and to limit degradation by weathering.

    The Kirk Petrophysics designed foil core bag when combined with a vacuum seal provides an economical

    solution to all three.

    The core still on the core cradle is carefully inserted into an appropriate sized core bag (various sizes are made

    to accommodate different diameters of core). The core is oriented so the slabbed face may be viewed through

    the clear polythene window built into the bag. This allows the core to be viewed without removing the core

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    from the bag or releasing the vacuum. If the core is to be sampled, the

    bag may simply be opened and the core removed. Once sampling is

    complete the core may be returned to the bag and the bag re-sealed.

    Sufficient length is built into each bag to allow opening and re-sealingseveral times before a new bag is required. The vacuum may be

    modulated on an individual basis to provide a sufficient vacuum to

    effectively hold the core together and restrict movement without

    altering the fabric of poorly consolidated lithologies.

    STAGE 4 PREPARATION FOR TRANSIT

    Following Stage 3 the core section is returned to its original box. If the box condition has deteriorated to a level

    where protection of the core is compromised it should be replaced.

    Storecore uses corrugated plastic core boxes due their increased working life and low cost but has recently

    designed a new, rigid plastic core box that provides enhanced protection with a long term cost benefit. This box

    is currently being used for the project in Madagascar with great success.

    Once all core sections have been returned to the box, the box should be sealed with armoured tape. Tape

    should be applied at the mid-point of the long axis of the box and should completely encircle the box. Similarly

    tape should be applied 1/3 and 2/3 along the long axis. Often overlooked this procedure is critical in ensuring

    the box when stacked on a pallet or in a bay does not collapse. Once taped each box is stacked on a pallet. It is

    preferable if possible to alternate the orientation of layers of boxes to prevent unnecessary movement intransit. The capacity of each pallet is determined by the type and size of the core box as well as the weight of

    the core within each box. Cardboard core boxes are only able to withstand loading forces acting vertically.

    Overloading a pallet may cause failure of boxes at the base of the pallet. Once the rigidity of boxes is

    compromised, stability of the overlying boxes is reduced which in turn leads to shear forces being generated

    across the pallet which can cause further box failure and core damage.

    Once the pallet is at the required capacity it should

    be securely and tightly bound with pallet wrapping.

    This is essentially a high strength cling film that when

    applied correctly serves a number of purposes. The

    film effectively forms a two way barrier against dustand moisture. It also provides a stabilising effect,

    helping to restrict lateral movement of boxes during

    transit. It is especially useful when preparing for

    transit pallets containing numerous small boxes.

    Once wrapped the pallet is further secured with high

    strength pallet banding. Edge protectors may also

    be used to protect boxes against damage from the

    banding itself. Banding is applied and tensioned

    such that the pallet is fully stabilised but not to the

    point where boxes may be damaged.

    Example of core bag (prior to vacuum

    sealing)

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    CORE AND SAMPLE TRANSFER AND STORAGE PROTOCOL Kirk PetrophysicsKP/PROPOSAL/08/02/2010

    Once securely banded a unique pallet label should be applied to allow identification of pallet and therefore

    contents. This would be incorporated into the data management aspect of the transfer and possibly linked to

    the adoption of a bar-coding system as previously discussed.

    STAGE 5 LOAD AND TRANSFER

    Once prepared as described above pallets may be considered ready for transit. Pallets may be carefully loaded

    directly onto an articulated lorry, paying particular attention to limiting shock loading. It is recommended that

    loading be performed using a forklift truck rather than a tailift and pallet truck as the former generates less

    shock loading. (tests performed by Kirk Petrophysics has confirmed this)

    An additional method of limiting damage caused by vibration during road transport is use of the Transfer Pallet.

    This is a normal sized pallet fitted with shock absorbing feet that help to reduce the transmission of vibrationfrom the road to the core. The pallet holding the core is loaded directly onto the transfer pallet which can

    remain in the articulated lorry for subsequent trips.

    Storecore routinely use a Lithotrack device for monitoring core transport.

    The Lithotrack device records a variety of physical parameters such as

    shock loading/g, temperature etc. It is proposed one Lithotrack unit be

    attached to each consignment. The Lithotrack serves three purposes. If all

    personnel involved in transferring the core are informed that a Lithotrack is

    monitoring the transfer it becomes a valuable deterrent for inappropriate

    handling. Secondly, the data the unit provides may be valuable when

    assessing potential damage to core. Finally, the unit may be used to assessthe proposed journey by way of a trial to identify maximum likely exposure

    to shock loading etc. Core protection methods may then be matched to

    the protection required for that particular journey. In this way Storecore

    has developed the above procedures for safe transport of core by road

    haulage.

    STAGE 6 UNLOAD AND STORE

    Unloading is conducted in the same way as loading with care being taken to avoid shock loading. The

    Lithotrack is retrieved and the data downloaded for review. As each pallet is unloaded it is checked visually fordamage, paying particular attention to the condition of boxes at the base and corners of the pallet as these are

    most susceptible to damage. Any boxes that show signs of deterioration should be identified and replaced at

    the earliest opportunity.

    As part of the data management process each pallet would be assigned a new location as required. It is

    Storecore policy to also update the storage database with an assessment of the core/box condition if this has

    changed during transfer. Final unloading of each box and storage would be conducted as required depending

    on the storage system employed.

    Example outputs of Lithotrack

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    It is recommended that core is left in the core bags to provide enhanced protection whilst in storage. As

    discussed previously the clear viewing panel built into the core bags used allows core inspection prior to any

    sampling. If bags are required to be opened to allow direct access to the core for sampling, the bags should be

    re-sealed once the core is replaced. Any core at surface exists in a temperature and pressure regime differentto that at which lithification occurred, hence it will be unstable and liable to decay. However, the process of

    decay may be slowed considerably by protecting the core from air circulation and moisture. The core bags,

    especially when combined with vacuum sealing provide as near a protective environment as possible.

    SUMMARY

    The above procedures and techniques have been developed by Storecore and Kirk Petrophysics and are basedon many years experience of handling, protecting, storing and analysing core. The value of core may be

    considered directly proportional to its condition therefore every step should taken to ensure its condition is

    maintained as far as possible. Once damage has occurred it is impossible to rectify in many cases.

    Further options exist for Core Maintenance including surface cleaning and stabilisation etc. Though not

    necessary for the safe transfer of core material it may be advisable to review the benefit and implementation of

    these options as part of the transfer process. Further details are available on request.

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    APPENDICES

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    Appendix A Estimated costs

    Following is a cost estimate based on figures provided.

    Costs associated with preparing core boxes and pallets for transfer:

    Costs associated with core preparation:

    Transfer Pallet costs:

    Total Project Costs:

    Box type

    Dimensions (cm)Estimated

    number

    Estimated

    number per

    pallets

    Number

    pallets

    Cost to

    palletise

    Materials

    cost; pallet,

    wrapping

    and binding

    materials

    Number

    of trips

    required

    to

    transfer

    Estimated cost

    for transfer

    (Edinburgh to

    Nottingham)

    Tray 52 x 42 x 9 16971 32 530 11269.80 4773.09 20.40 13258.59

    Small card box 102 x 12 x 11 13300 48 277 5888.02 2493.75 10.66 6927.08

    Large card box 102 x 16 x 13 142139 30 4738 100681.79 42641.70 182.23 118449.17

    172410 5545 117839.62 49908.54 213.28 138634.84

    Number of

    core lengths

    (est)

    Cost to

    install into

    foil bag with

    viewing

    window (Incbag)

    Cost to

    vacuum

    seal

    252000 2394000 598500

    Scenario 2 - quoted "1 million feet of core" 333000 3163500 790875

    378000 3591000 897750

    Scenario 1 - 2 core lengths per box

    Scenario 3 - 3 core lengths per box

    Item

    Number

    required

    Cost per

    pallet Total cost

    104 115 11960Provision of "Transfer Pallet"

    Item

    Total Project cost - minimum 3364164.10

    Total Project cost - maximum 4860414.10

    Total Project cost - based on "1 million feet of core" 4326039.10

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    ASSUMPTIONS/EXCLUSIONS

    1. The number of pallets for transfer is calculated using a standard Euro pallet (1.2m x 1.0m) with a

    maximum recommended stack height dependent on the box type in question. For the Tray type boxthis would be 8, for the small card box 6 and for the large card box 5.

    2. The cost to palletise is based on removing items from their current storage bays and packing the

    required number of boxes onto a Euro pallet before wrapping with high grade pallet wrap and binding

    with pallet strapping to prevent movement in transit.

    3. The number of trips required to complete the transfer is based on the average capacity of an articulated

    lorry being 26 pallets. It should be noted pallets should not be double stacked.

    4. The cost for Lithotrack analysis is based on monitoring each trip with 1 Lithotrack device and provision

    of reporting.

    5. Core Protection - scenario 1,2 and 3 provide costings based on the number of lengths of core stored in

    each box. Scenario 2 covers the oft quoted "1 million feet of core stored at Gilmerton"

    6. Provision of "Transfer pallet", total number based on 4 articulated lorries providing a shuttle service (so

    4 x 26 Transfer Pallets required). The transfer pallets are fitted with shock absorbing feet to limit road

    vibration transferred to the core.

    7. Data Management is not included - this would involve actively managing the transfer on an item level,

    whether each item is checked against the main database as it is removed from store and palletised etc.

    The same process would need to be applied on arrival at Keyworth (Depending on BGS data

    management procedures)