INTRODUCTION AND PROGRESS OF UnCon PROJECT

- Assessment of Shale Energy Resources in Asia –

by Byeong-Kook Son

from KOREA INSTITUTE OF GEOSCIENCE AND

MINERAL RESOURCES (KIGAM)

UnCon12 Meeting and Workshop, Kota Kinabalu

The Unconventional Oil and Gas Project was proposed in 2014 at the 63rd Steering Committee Meeting held in Kosopo, PNG by KIGAM

PROPOSAL OF UnCon Project

The 1st phase has been done by the funding from KIGAM during 2015-2017 for 3 years

The 2nd phase just started in 2018 with the co-funding from KIGAM and KNOC, and is in progress

CCOP-KIGAM Unconventional Oil and Gas Project: 1st Phase: Mapping of black shale formations for the prediction of shale resources

UnCon Project, Phase I

Purpose: Identifying and mapping of potentially prospective shale resource basins in the CCOP region Duration: Three years from 2015 to 2017

Process

Prospective shale basin and formation selection

Shale basins and formations mapping on GIS

Shale formation data collection

field trip

Data Collection and Analysis Capacity Building

Assessment methodology

Mineral quantification method

QGIS mapping method

XRD mineral quantification

Rock-Eval Organic matter analysis

Sample Collection and Analysis

UnCon PROJECT Performance: Nine(9) meetings and workshops, field trips, training, sample analysis, and GIS mapping of shale basins and formations.

SHALE SAMPLES FROM EACH COUNTRY

Organic Properties determined by Rock-Eval Pyrolyis

TOC Kerogen Type Maturity

CRUDE ROCK MineralsKerogenGasOil

PYROLYSIS UNDERINERT CONDITION

OXIDATION

Residual Kerogen

He

O2

CO2

600 C

300 C

600 C

F.I.D.

T.C.D.

HCS0

S4

S1

S2

PYROLYZED ORG.C

RESIDUAL ORG.C

TOTAL ORG.C

Tmax

Mineral content determination by X-ray powder diffraction (XRD) with Siroquant Software

Tmax

Cambodia

Indonesia

Malaysia

Thailand

Japan

Lao PDR

Philippines

Vietnam

0 100 200 300 400 500 600 700

C-1

C-2

C-3

I-1

I-2

I-3

J-1

J-2

J-3

L-1

L-2

M-1

M-2

M-3

M-4

T-1

T-2

T-3

T-4

T-5

V-1

P-1

Overmature (?) Good

Bad

Bad

Bad

Carbonate minerals

0 0.2 0.4 0.6 0.8 1

1

0.8

0.6

0.4

0.2

01

0.8

0.6

0.4

0.2

0

CambodiaInodesia Malaysia JapanThailand Lao PDRPhilippineVietnam

Clay minerals

Quartz+ Feldspar

calcareous or dolomite mudstone

argillaceous marlstone

siliceous marlstone

argillaceous mudstone

siliceous mudstone

Comparison with US Shales

CAPACITY BUILDINGS AT PHASE I MEETINGS US case: Chris Schenk from USGS UK case: Ed Hough from BGS

Mineral quantification: Tim Black from Australia

QGIS: Kook from KIGAM

Mapping with freely downloadable SW, QGIS

ACHIVEMENTS: USB Publication

INSIDE USB

QGIS software - 64 bit and 32 bit MAP GUIDE - How to display the GIS map of shale basins

GIS maps of Shale Basins - shape files Basin Description - 46 shale basins identified

Asian Shale Basins Map on QGIS USB file: ShaleResourceMap/Asian Basin/Asian basins

Maps include Five GIS layers Basin Boundary Map (vector)

Maps include Five GIS layers Shale Boundary Map (vector)

Maps include Five GIS layers Cross Section (raster)

Maps include Five GIS layers Sample Location and Analysis Data(vector, delimited text)

Description of the Shale Basins Identified

Description of 46 Shale Basins: Basin Location Geological Setting Stratigraphy Shale Formation

MAP GUIDE

Description about How to display maps on QGIS software Install QGIS Getting Started How to display maps

WORKS for SHALE RESOURCES ASSESSMENT

Shale Formation Mapping – volume calculation Characterization – sweet spot areas determination Assessment – resources calculation

PREPARATION OF PHASE II

Asian shale basin map was successfully completed with the outcome of USB as a result of the first phase.

After that, the UnCon project went to the second phase, which is a shale resources calculation and assessment on the identified shale basins.

The 2nd Phase, Assessment of Shale Energy Resources in Asia, was launched in the last April in Bangkok

LAUNCH of Phase II

CCOP-KIGAM Unconventional Oil and Gas Project: 2nd Phase: Assessment of Shale Energy Resources in Asia

UnCon Project, Phase II

Purpose: Calculation and estimation of gas/oil amounts in the potentially prospective shale formations in the CCOP region Duration: Three years from 2018 to 2020

Shale Resources Calculation and Assessment

Shale resource estimate is fundamentally a calculation of the amount of gas or oil in the ground based on geologic information

Volumetric calculation (productive shale V) by multiplying controlling factors Shale area(subsurface) X thickness X

porosity X gas/oil saturation X temperature/pressure correction

Recovery factors generally conjectural

TWO DIFFERENT METHODOLOGY

USGS Methodology: Top-down approach Technically recoverable resource estimates based on

well technology, well performance, and well density

EIA/BGS Methodology: Bottom-up approach In-place resource estimates based on a geological

model, volumes and gas contents

In the Phase I, the UnCon Project has ever decided to follow the EIA/BGS methodology. No production data are yet available in Asia

BGS Methodology for estimating the in-place shale gas resource

SHALE VOLUME CALCULATION (UK CASE)

Identification and mapping of potentially-prospective shale gas units from well information Mapping the top and base of units to enter into a

3D model Mapping the shale component as a proportion of

the seismically mapped unit Minimum cut-off where Ro > 1.1% (max cutoff of

Ro > 3.5% never exceeded) Minimum depth cut-off

Establishing the Areal Extent of Major Shale Gas and Shale Oil Formations The regional cross-sections can be used to define the

lateral extent of the shale formation in the basin and/or to identify the regional depth and gross interval of the shale formation

Shale Resources Calculation and Assessment

In general, the total volume of potentially productive shale can be estimated using a 3D geological model, which is generated using seismic mapping, integrated with outcrop and deep borehole information.

But, the data availability is different from country to country, thus causing a problem with uncertainty.

The data-poor shale formations will lead to high-uncertainty assessments

PROCESS: First Step, Shale Volume Calculation

Selection of target basins and shale formations: 13 basins and 21 shale formations

Shale volume calculations: available data and methods based on the data availability

Available Literature and Data

Shale Volume Calculation

TARGET BASINS AND FORMATIONS

Country Selected Basins # Shale Formation Shale Type Age

1. Cambodia 1. Tonle Sap 1 Kuchinarai Group ? TRIASSIC

Si That ? Late Carboniferus / Lower Permiano

1. China 1. Si Chuan 1 Wufeng - Longmaxi Gas Upper Ordovician - Lower Silurian

1. Indonesia 1. Jambi Sub-Basin (in South Sumatera Basin) 1

Lahat Oil & Gas

Eocene Talang Akar Oligocene

1. Japan 1. Akita-Yamagata 1 Onnagawa Oil (Gas?) Late Miocene

1. Korea 1. Gyeongsang 1 Jinju Gas Cretaceous (Data Poor)

1. Lao PDR 1. Saravan-Attapeu 1 Namthong

Oil & Gas Permo-Carboniferous Nalang

1. Malaysia 1. Sarawak 1 Setap Gas Miocene

1. Myanmar 1. Salin 1 Yaw Oil & Gas Eocene

1. Papua New Guinea 1. Papuan 1

Imburu

Oil & Gas Jurassic to Lower Cretaceous Koi-Iange

Barikewa

1. Philippines 1. Visayan 1 Malubog Gas Early Miocene to Late Oligocene

Toledo Oil & Gas Middle Miocene to Late Oligocene

1. Thailand

1. Phu Phra - Mukdahan 2

Triassic Pre - Khorat Gas Triassic

1. Phitsanulok Chumsang Oil & Gas Early Miocene

1. Vietnam 1. An Chau 1

Mia Le

Gas

Devonian

Lang Son Triassic

Van Lang

PROCESS: Shale Volume Calculation

In UnCon 11, the results of calculations were presented and discussed

The calculation will be revised and updated at this workshop.

When we exchange knowledge and ideas at UnCon meetings and workshops, we can get more sophisticated calculations and thus enhance the quality of assessment

Available Data

Shale Volume Calculation

NEXT STEP: CALCULATION OF GAS AMOUNTS (Total- Gas-In-Place) IN SHALE

Free Gas Shale area X thickness X gas-filled porosity X gas

expansion factor (depth dependent) Adsorbed Gas

Area(subsurface) X thickness X rock density X adsorbed gas content of shale (volume of gas/weight of shale)

Monte Carlo Simulation Statistical calculation to determine GIIP Learn from KIGAM

LEARN FROM RESOURCE PERSON

Dr. Kyungbook Lee from KIGAM, Korea An opportunity to review the shale resource assessment

methodology and to learn how to apply the Monte Carlo Simulation to the calculations and estimations of your basins

Lectures and hands-on training Shale Resource Assessment Methodology Monte Carlo Simulation

The UnCon project have come into the Phase II Knowledge and ideas can be obtained from the

UK case. Thirteen basins and twenty one shale formations

have been selected for initial shale volume calculations, which are in progress.

Shale volume calculation will be presented and updated at UnCon 12 meeting

The Knowledge of Monte Carlo Simulation will be obtained from a resource person

Conclusions

MANY THANKS FOR ATTENTION!

UnCon12 Meeting and Workshop, Kota Kinabalu