#1Exploration for Cretaceous Deep-Water Reservoirs in the Circum-Caribbean Region: Historical Review and Expectations for the Future* Robert Erlich¹ and Francis Inniss¹ Search and Discovery Article #30353 (2014)** Posted August 18, 2014 *Adapted and expanded from oral presentation given at Geoscience Technology Workshop (GTW), Deep Horizon and Deep Water Frontier Exploration in Latin American and the Caribbean, Port of Spain, Trinidad, March 9-11, 2014, and given at Houston Geological Society dinner meeting, Houston, Texas, June 9, 2014 **AAPG©2014 Serial rights given by author. For all other rights contact author directly. 'PanAtlantic Exploration Company, Houston, TX, USA ([email protected]) Abstract Historical exploration efforts within the Circum-Caribbean region have not typically targeted Cretaceous reservoirs for a variety of technical and commercial reasons. The principal exceptions to this have been exploration efforts along the north coast of Cuba during the 1950's (sporadic since then), some wells on- and offshore Honduras and Nicaragua during the 1930's-1970's (three recent wells in the 2000's), and five wells in the Bahamas during the same time period. Renewed interest in Cretaceous reservoirs began in earnest during the mid-late 1980's, mainly as a byproduct of successful exploration in Eastern Venezuela's Furrial Trend, though these discoveries are concentrated principally within Neogene-Paleogene strata. Exploration for Cretaceous targets has focused almost exclusively on Trinidad since this time, and results have not been overwhelmingly positive, regardless of whether the objectives were located onshore or offshore. Further interest in the Cretaceous has been generated recently by the discovery of commercial accumulations in slope and basin floor fan/channel complexes, most commonly found along the Equatorial Atlantic margins of West Africa and South America (the "Transform Margin Play"). Despite these recent successes, Cretaceous reservoirs and traps continue to yield unpredictable drilling results, especially along the margins of northern South America.#2Significant technical risks include reservoir presence and deliverability, hydrocarbon charge access, and trap/seal integrity. Commercial challenges include hydrocarbon type (gas vs. oil), volumes required for commercial development, development costs (hub and spoke versus stand-alone accumulations; number of development wells and FPSO's needed), and decreasing contractor take. A quick review shows that nearly all successful (?) wells in the trend have been drilled from 5-40 km down depositional dip from the Cretaceous paleo-shelf margin, though the technical factors mentioned above do not guarantee this "sweet spot" will hold up over the long term. While new discoveries in deep-water Cretaceous reservoirs are possible within the Caribbean-northern South America region, significant technical and commercial risks will continue to affect new exploration drilling. References Cited Erbacher, J., D. Mosher, M. Malone, M., and O.L.S. Party, 2004, Drilling probes past carbon cycle perturbations on the Demerara Rise: EOS, v. 85, p. 57-68. Erlich, R.N., T. Villamil, and J. Keens-Dumas, 2003. Controls on the deposition of Upper Cretaceous organic carbon-rich rocks from Costa Rica to Suriname: In C. Bartolini, R.T. Buffler, and J. Blickwede (Eds.), The circum-Gulf of Mexico and the Caribbean: Hydrocarbon habitats, basin formation, and plate tectonics. American Association of Petroleum Geologists Memoir 79, p. 1-45. Erlich, R.N., and J. Keens-Dumas, 2007, Late Cretaceous Palaeogeography of northeastern South America: implications for source and reservoir development: In Proceedings of the 4th Geological Society of Trinidad and Tobago Geological Conference "Caribbean Exploration - Planning for the next century", 17th-22nd June 2007, Port of Spain, Trinidad.#3PanAtlantic Exploration for Cretaceous Deep-water Reservoirs in the Circum-Caribbean Region: Historical Review and Expectations for the Future Robert Erlich and Francis Inniss#4What We Will Discuss PanAtlantic Part 1 The nature of "The Cretaceous Play" and its variants Where the "fan/channel play" is working and why • Examples from Equatorial Africa, northeastern South America, and Trinidad • Future considerations Part 2 A brief historical review of exploration in the Caribbean region, focusing on recent activity • Summary thoughts#5• • "The Cretaceous Play" PanAtlantic Extrapolated/extended from the now classical "West African Transform Margin Play" (next slide) Now focuses on any Cretaceous objective, regardless of the petroleum system Traps can be stratigraphic, structural, or any combination. Can be salt-related or not •Sandstones or limestones#6"The Cretaceous Fan/Channel Play" PanAtlantic Also known as the "West Africa Transform Margin Play" (WATM); consists of a series of Upper Cretaceous deep-water slope and basin floor fans and channels within structural/stratigraphic traps, currently being explored along the Equatorial margins of Africa and South America; Since 2000, >100 wells have been drilled in the play* ⚫First and second commercial successes: Ghana o Jubilee complex (2009): about 700 mmboe recoverable o TEN complex (Tweneboa-Enyenra-Ntom me, 2013): about 360 mmboe recoverable. • Next commercial successes: Ghana - Tullow/Kosmos/Anadarko MTA (Mahogany-Teak-Akasa) and ENI (Sankofa/Gye-Nyame); Hess (Pecan et. al) still pending Pre-Dev work; Nigeria? - Yinka Folawiyu (Aje), Afren (Ogo) unclear • Play contains hydrocarbons in: o Africa: Ghana, Guinea, Sierra Leone, Liberia, Côte d'Ivoire, Benin, Nigeria (far NW offshore), Equatorial Guinea o South America: Brazil, French Guiana, Guyana, Trinidad • Critical technical risks o Access to charge/charge focus and volume ○ Trap definition - where are the potential leak points? o Reservoir presence and deliverability o Hydrocarbon phase - spotty success with AVO and attributes • Critical commercial risks: Gas utilization and commercialization; F&D costs; Contractor take, etc. *Compiled from IHS Data#7Two Commercial Developments, Ghana Ghana Discoveries Kosmos “First Inning" grand slam • Opening the Tano Basin - Architect of the basin-opening Jubilee discovery - Eight proven hydrocarbon discovery areas High value barrels with 2+ to 4 BBO in place Secures Company as a self-funded explorer Top quartile F&D cost performance GHANA PanAtlantic KOSMOS Jubilee Field Unit Area (24.1%) TEN Development & Production Area (17.0%) MTA Pre-Development Area (30.875%) ENERGY. GHANA Wawa Discovery Area (18.0%) Oil Field Gas-Condensate Field Oil/Gas- Condensate Field Wawa • Greater Jubilee Area - Jubilee reservoir performance outstanding - Several production enhancement opportunities - - MTA appraisal activity ongoing Plateau-extending, high value barrels in MTA – Long-life production plateau of five to seven years - • TEN Development Tweneboa Teak Enyenra Jubilee Ntomme Mahogany Akasa 0.3 MM Gross Acres (1,071 km²) 400-2,000 m Water Depth 25 km - Second FPSO-based development in Ghana 15 miles Line Length = 40 km Howard Wall March 2014 From Kosmos Investor Presentation (2014)#8"The Cretaceous Fan/Channel Play," Ghana Ghana: Expanding Opportunities Jubilee to Teak Cross Section PanAtlantic H #1 Top Turonian M #1 Top Jubilee Source Rock Base Jubilee M #2 TEAK #2 TEAK #1 A' Gas Cloud Top Campanian TEAK #1 Discovery B' Teak TEAK #2 Drilling B' TEAK #1 SC Channel to Teak Cross Section B SC CHANNEL SC Channel ODUM (PROJECTED) Source Rock Gas Cloud Jubilee West Cape Three Points APC WI 31% PROSPECT DISCOVERY SUCCESSFUL WELL 2011 PLANNED DRILLING A' Assin Odum Banda & Banda Deep Mahogany East Dahoma Updip Akasa SC Channel B 5 Miles ANADARKO PETROLEUM CORPORATION From Anadarko Investor Presentation (2011) Cenomanian Oil Low Poroperm#9"The Cretaceous Fan/Channel Play," Ghana Ghana: Transitioning Tweneboa / Enyenra ENYENRA (OWO) TWENEBOA #4 A T #3 & T #3ST OWO #1 ST Discovery Proposed Enyenra #3 OWO #1 Discovery TWENEBOA #1 Discovery T-1 PanAtlantic Top Campanian Top Turonian Tweneboa Complex Enyenra T-4 TWENEBOA #3 Successful Appraisal ENYENRA #2A Drilling West Lobe Turonian Deep T-3ST Central Lobe SE Lobe A' PROSPECT DISCOVERY 14 Miles Source Rock Planned 2011 Activity •Drill 4+ Appraisal Wells • Conduct 2 DSTs *Move Toward Sanction Miles SUCCESSFUL WELL 2011 PLANNED DRILLING Deepwater Tano APC WI 18% ANADARKO PETROLEUM CORPORATION 54 From Anadarko Investor Presentation (2011) A'#1020 Regional Drilling Activity and Results, 2005-2014 PanAtlantic 2012 TD 5142m 270 m wet Cenomanian sand 6 N 4° N W 2013 Djembe TD 4742m Turonian oil 2012 TD 6465m 30 m Turonian pay Sierra Leone Savannah SL-05/11 SL Venus 2009 TD 5639m 2011 TD 5142m 14 m Turonian pay 1000 km 270 m of wet Turonian sand 50- Mercury-2 Jupiter Mercury-1 2010 TD 4862m 6 m Campanian pay 35 m Turonian pay (34-42 API)| 2012 Maastrichtian, Santonian fans? 2011 TD 5400m wet Campanian 8 m Turonian pay Hydrocarbon Reconnaissance Li 2012 Maastrichtian, Santonian fans? Liberia Montserrado 13 Goshtern Carmine Deep 500 LB-12 2012 TD 4850m 21 m Turonian pay (37 API) 11m Albian pay (44 API) 0 .89km 12° W Nighthawk LB-11 Bee Eater Narina Apalis LB-09 500 -08 jo 200 LB-07 LB-06 2011 3000 TD 3665m Cretaceous shows 10° W Oil Discovery Dry Hole 2014 New Well 2013 TD 4100m 48 m Turonian pay 9 m Cenomanian pay 14 m Albian pay (tight) 2014 40 m net oil pay 34 API Turonian/Older fans? Côte d'Ivoire 2005 TD 3100m San Pedro Block Saphir lock CT-51 Block CI-509 wet Cenomanian sand 4000 Map and Data from IHS, various public sources 6° W ersion 6.9.0 Copyright CIHS Inc., 2014. All Rights#11Cretaceous Fan Distribution, Sierra Leone, Liberia Sierra Leone and Liberia: Current View m PanAtlantic SIERRA LEONE VENUS B #1 Discovery Mercury-2 SL-07B-10 MERCURY #1 Discovery Jupiter-1- LB-17 Line Length = 40 km 1,400 mi² 3D Relinquished ANADARKO WI BLOCK O SUCCESSFUL WELL DISCOVERY PLANNED DRILLING CAMPANIAN LOWER CAMPANIAN-TURONIAN MONTSERRADO/ MONTSERRADO DEEP LB-15 LIBERIA ~2,300 mi² 3D DEEPWATER TANO JUBILEE UNIT WEST CAPE THREE POINTS (To Scale) ~900 mi² 3D Chevron ExxonMobil in Progress LB-10 0 40 Miles ~5 MM Gross Acres ANADARKO PETROLEUM CORPORATION African Petroleum From Anadarko Investor Presentation (2011)#12Sierra Leone, Liberia Fan System: Ghana Analogue Sierra Leone and Liberia: A Familiar Look PanAtlantic JUPITER 10 CALLISTO MERCURY STRONTIUM Sierra Leone Liberia SIERRA LEONE • DISCOVERY CAMPANIAN LOWER CAMPANIAN-TURONIAN PLANNED DRILLING LIBERIA ANADARKO PETROLEUM CORPORATION YEKEPA MONTSERRADO #1 Source Rock LENYENRA TO JUBILEE → IN SCALE TO SIERRA LEONE/LIBERIA 110 Miles ENYENRA (OWO) T #3&T #3ST JUBILEE Enyenra Tweneboe Complex Complex 27 Miles Source Rock From Anadarko Investor Presentation (2011) 58#13Venus SIERRA LEONE Mercury SL07B-11 Jupiter LB-17 LB-16, LB-15 LB-14 "Bee Eater” Fan System, LB-08 and 09 PanAtlantic LIBERIA Montserrado Timbo LB-13 LB-12 Bee Eater-1 Carmine B-11B-10 Narina-1 Apalis-1 Nighthawk Iroko Narina-2 LB-09 LB-08 3000 500 Rivercess LB-08, LB-09 Prospect Map Chevron Anadarko 100 APCL 200 APCL LB-07 Bee Eater (low perm?) LB-11 LB-10 TORO Narina (1st Well) LB-9 Firebird ⚫ Possible Drilling Locations Line Length = 40 km km 10 20 40 Barbet (270) 0 Night Her Bluebil Lovebird (529) 0 pa-1 Sunbird Canyon (532) Sunbird Terrace Wildbird (1065) Darter Lovebird Terrace LB-8 Apalis CEAWAY LB-10 BEC EATER MALIMBE NIMBA JACANA JOVERMO Guinea Sierra Leane Apalis SONAND LB-08 2010 30 Survey 10 LB-07 Prospects Leads Water Depth Metres 250m Contours 500m Contours Ghana Cote d'ivoire Liberia From African Petroleum Investor Presentations (2012-13), Africa Oil and Gas (March 10, 2014)#14WSW Campanian Turanian Liberia Block LB-09: Regional Seismic, Narina-1 PanAtlantic Top Alblan? Cenomanian to Upper Albian Source Rocks TGS PSDM data: 4:1 Vertical Exaggeration Narina-1 Syn-Rift Source Rocks Line through Narina-1 Discovery well Oil in the Turonian & Albian Multiple source rock intervals from Cenomanian - Albian Multiple, stacked Reservoirs in the Upper Cretaceous Cenomanian and Turonian Basin Floor Fans 10 KM Campanian channel-fan sequences Multiple trap types ENE 2500 m 5000 m 7500 m 10000 m From African Petroleum Investor Presentation (2012)#15"Discoveries" vs Distance From Paleo-shelf Margin Estimated/Reported MMBOE Recoverable 800 700 600 500 400 300 200 100 34 Total "Discoveries" 0 0 5 10 25 15 20 Estimated Distance (km) From Paleo-Shelf Margin 30 35 40 45 50 Data From IHS, Various Company Sources PanAtlantic#16Fan/Channel Play: Summary Observations Requirements for the Play to Work • . Little to no structural deformation (secondary folding/faulting) Why? Traps are preserved (not breached) Clearly defined traps ○ Why? Multiple seals/trapping points are required for large (commercial) columns • Direct access to charge/charge focus . o Why? Complicated migration pathways allow for thief zones in 3D Significant sand-dominated river systems with high-maturity sands PanAtlantic o Why? There is an optimum distance where deliverability impacts commercial rates and column heights Coincidence or Correlation? • • • Most commercial (or pre-commercial) discoveries have been made within 40-50 km of the paleo- shelf margin, with a large percentage within 25 km (there are some exceptions) The Turonian works best when the above technical risks have been met Younger (Campanian/leaky traps) and older (Albian-Cenomanian/poor reservoirs) units work only under special circumstances • Can the play work in the central North Atlantic, northern South America, and the Caribbean?#17Can "The Cretaceous Play" Be Exported? Concerns • Complicated reservoir architecture/geometry o Influence of salt tectonics • Reservoir deliverability o Less mature sands (carbonates) • Trap and seal integrity Export of core Cretaceous theme IRELAND MOROCCO m PanAtlantic Adoption of salt basin theme • o Influence of salt tectonics Charge access/focus o Younger reservoirs are vertically and laterally disconnected from older source horizons • Overall play and prospect risk SURINAME SOUTH AMERICA MAURITANIA AFRICA GHANA Re-entry into core Cretaceous theme Going up, not down "First Inning" Petroleum System Tests From Kosmos Investor Presentation (2014) Potential "Second Inning" Petroleum System Tests Howard Well March 2014 12#18Exporting "The Cretaceous Play" to Northwest Africa PanAtlantic Offshore Agadir Basin Petroleum System KOSMOS One of the last undrilled salt basins along the Atlantic Margin • An Unexplored Salt Basin - Salt-related structures similar to Gulf of Mexico Evidence of a working petroleum system -Play diversity and prospect dependency Multiple exploration wells planned • Multiple Prospects Defined for Drilling - Prospect size range up to 500+ MMBOE - Initial exploration well underway Initial Exploration Prospect Prospects 3-D Seismic Wells 3 deep water wells drilled in 2004 located behind salt walls which restricted sediment presence TARHAZOUTE (30.0%) Boilers Prospect Shark-1. To be acquired Tarhazoute 3D ESSAOUIRA (30.0%) ENERGY. Essouaira River Delta Sidi Rhalem Toe Thrust Play Tertiary U. Cretaceous L. Cretaceous Jurassic Sub-Salt Canopy Play Salt Diapir Play Amber-1- MOROCCO Souss River Delta Agadir Eagle Prospect Foum Assaka-1 Rak-1 FOUM ASSAKA (29.9%) Jurassic Reef Play 1970-1990 industry focus 6.0 MM Gross Acres (24,340 km²) 50 km 30 miles Howard Wall March 2014 18 From Kosmos Investor Presentation (2014)#19PanAtlantic KOSMOS FA-1 Well Cretaceous Target Foum Assaka Block - FA-1 Well Eagle prospect is a large, salt-cored structure with significant resource potential FA-1 Summary - Pmean 360 MMBOE SW Formally Eagle-1 well - Drilling operations ongoing FA-1 - Targeting Lower Cretaceous reservoirs Multiple deepwater reservoir objectives Water depth ~600 meters - Planned well TD ~4,000 meters TARHAZOUTE (30.0%) Eagle Prospect FA Souss River Delta Jurassic Reef Play 1970-1990 FOUM ASSAKA (29.9%) industry focus Initial Exploration Prospect Prospects 3-D Seismic • Wells MOROCCO 25 km 15 miles 25 km Lower Cretaceous Target Zone ENERGY. NE Howard Weil 19 March 2014 From Kosmos Investor Presentation (2014)#20"The Cretaceous Play": Central and North Atlantic Ireland - Porcupine Basin Exploring the North Atlantic with a South Atlantic perspective • Premier Basin-flank Acreage Position - Under-explored basin with existing nearby discoveries - Up-dip of a working oil kitchen Potential for multiple source rocks Overlooked Cretaceous combination plays - Large upside, fiscal terms commensurate with risk - Accelerated 5,000 km² 3D seismic program completed 2013 ExxonMobil PanAtlantic KOSMOS ENERGY. FEL 1/13 FEL 2/13 Dunquin-1 FEL 3/13 18 km First well targeted in 2016 FEL 2/13 Kosmos Play Focus Ghana Analogy Dunquin-1 Near Top Cretaceous FEL 1/13 Kosmos Play Focus Near Top Jurassic Jubilee / Mahogany Howard Weil 25 March 2014 From Kosmos Investor Presentation (2014)#21"The Cretaceous Play": Caribbean and SOAM No Fan Development Late Cenomanian - Turonian GDE Fluctuating Eutrophic/Warm Atlantic- Tethyan Ocean No Fan Development Prevailing Winds Plate Motion Small Volcaniclastic Fans Only - Atlantic Pacific Surface/Mid H₂O Exchange Only? Deep Water Restriction? 146/149 • 150 •153 151 No Fan Development, •152 Volcanics Costa Rica Small Volcaniclastic Fans Only Panama Paleo-Equator No Fan Development S. Atlantic Surface/Deep H₂O Exchange Arid Conditions High Fluvial Outflow PanAtlantic After Erlich et al. (2003) 400 Km 0 248 Mi Area of Fan Development#22LEGEND Prospect Leads Oil Field/Discovery 3D Seismic Kanuku Block Play Opener: Zaedyus-1, French Guianal BLOCK 47 100 km Voltzberg Fan Complex Goliathberg Fan Complex Matamata Demerara Guyana Basin Plateau GUYANE Berbice Canyon Play Guyana BLOCK 31 A N.W. SEA LEVEL Suriname 200km MATAMATA LOGGERHEAD APTIAN-ALBIAN NEOCOMIAN JURASSIC 50km TERTIARY MARITIME Tambaredjo Oil Field FG2-1 Oyapock French Guiana UPPER CRETACEOUS N Ghana Assets to Same Scale Zaedyus-1 Saguinus & Saimiri Channels Eastern Slope TEN Subten Atlantic Ocean GM-ES-3 Cingulata Fan System Lontra GM-ES-2 Zaedyus Discovery GM-ES-4 40 km SAGUINUS BASEMENT SAIMIRI Structural focus like Tano nose Priodontes-1 Zaedyus-1 TERTIARY BRADYPUS UPPER CRETACEOUS A' S.E. SEA LEVEL TAMANDUA CAIMAN PALEOCENE CENOMANIAN APTIAN-ALBIAN DASYPUS PRIODONTES ZAEDYUS BASEMENT From Tullow Mid-year Update (2013), Wessex De Profundis (2011) PanAtlantic Turbidite feeder canyon 6000 Large turbidite fans like Jubilee Fan systems like Tweneboa-Owo- Ntomme 2400 2600 Zaedyus-1 (GM-ES-1) 72 m net oil pay (Cenomanian-Turonian?) = 39 m main sand with light oil Original P10 700 mmbo Follow-up wells dry or non- commercial#23Guyana-Suriname: Cenomanian-Santonian GDE Drowned LK Shelf Margin ODP/DSDP Wells Shale-Prone Shelt 1257/143-144 Oxygenated Lower Slope 158A 1258 58B 1144 Slope Fans, Channels 1259 1260 1261 OMZ (High-TOC Shale Deposition) Area of Shelf Margin Failure Demerara A2-1 Guyana Offshore-1 Deltaic Essequibo-2 Arapaima-1 Guyana Offshore-2 Shale-Prone Shelf ica 1 Abary-1 North Coronie-1 Galibi Offshore-1 ° Coronie Offshore- Suriname Offshore-2 Fluvial Deltaid 1/23-1 Guyana Fluvial Go G 100 km Suriname Anenburg Sinnamary-1 French Guiana Modified From Erlich et al. (2003) PanAtlantic#24Two Way Travel Time (sec) 5 L. Miocene Paleocene Cen-Turonian. U/L Albian 7 3 Block 47 Cretaceous Submarine Canyon and Fans Critical Trapping Point (ultimate updip seal) PanAtlantic MTC LK Mega-slump Paleogene Slope Fans/Channels 25 km Slope Fans U Albian? U. Albian? L. Albian-Neocomian Lower Neocomian Jurassic? Seismic Data Courtesy of Staatsolie Adapted From Erlich and Keens-Dumas (2007)#25Tullow Geologic Model, Block 47 Fan System November 2013 Overview Presentation Focus on Suriname operated exploration for Jubilee play TULLOW பர் PanAtlantic SW A Blacko Southern Fan Complex Northem Fan Complex Voltzberg (2015) Block 47 Section Campanian - Maastrichtian Goliathberg Prospect Santonian - Turoniar Source Rock Source Rock Voltzberg Prospect Lower Cretaceous Lower Cretaceous Cenomanian - Albian NE A' Critical Prospect Risks Updip Trap • • Lateral Seals ⚫ Reservoir Deliverability • Jubilee play campaign continues across the Atlantic, after Tullow's successful Zaedyus-1 basin opener • Multiple Ghana-scaled prospective fan systems overlying Ivorian-style Albian fault block plays • • New 3D seismic surveys reveal exciting material stacked drilling targets in our Suriname Block 47 Tullow 70% operated position, provides control over direction & execution of exploration strategy From Tullow Investor Presentation (2013)#26Trinidad: Cenomanian-Santonian GDE PanAtlantic 50 km Patao-1X North Basin-2 Slope & Basin Floor Laventille-1 Fans, Channels ? Emerald-1 Guaico-1 Howler-1 Gupe-1 Couva Offshore-1 OMZ (High-TOC LS Deposition) Couva Marine-2 Posa-40-1 Gopa-1 Couva Marine-1 Mt. Harris-1 Domoil-1 Plata-1X Zaboca-1 Posa-48-1 St. Croix-1 Soldado-189 ABM-1 AB-102 Shandon Beni-1 Campana-1X Marac-1 Jarina-1X Texas-2 Iguana River-1 Guayaguayare-371 Morne Diablo-34 Moruga East-15 Rocky Palace-1 Drowned LK Shelf Margin Deltaic OMZ (High-TOC Shale Deposition) Orinoco-1 Fluvial Shale-Prone Shelf Guarao-1 Modified From Erlich et al. (2003) Oxygenated Lower Slope#270 500 TOP GAUTIER 1000 1500 2000 Upper Cretaceous Submarine Fan/Channel System Flattened near the Base of the Oligocene Detachment SW 4400 Canyon Margin 4450 SEQUENTE 4500 4550 BOUNDARY (TOP CRETACEOUS) Overlapping Fan/Channel Complexes 4600 PanAtlantic NE 4650 NAPARIMA MOLL 4700 4750 4800 inp080001 W _soft hard +RC 1500m 500 E 408m 1 km 411m Seismic Data Courtesy of Petrotrin (interpretation and comments, 1999) 1000 1500 2000#28DEPTH FEET 0 12600 12700 12800 12900 13000 13100 13200 13300 13400 13500 13600 13700 13800 13900 14000 GAMMA RAY GAPI 220 LITHOLOGY RESISTIVITY AGE FM. 38.2488 MMHO 953.11 Maast. Guay. Campanian Sant. MD-34 Slope Channel System Interpretation: Slope Channel Lag Deposits 0 M PanAtlantic Interpretation: 5cm Slope Channel 13,150 5cm 15,365-13,366' wh Naparima Hill Coniacian 00 00 Turonian Cenomanian Gautier Albian Cuche Adapted From Erlich et al. (2003)#29Restored View, Possible Maximum Extent of Cenomanian-Turonian Source/Reservoir System 60° Original Downdip Limit of Viable Cretaceous Source Updip Limit of Viable Cretaceous Source PanAtlantic 20° Caribbean PBZ 543A 500 km 1044 1046 LK Shelf Margin Possible Original Extent of Cretaceous Fans Possible Original Updip Limit of Cretaceous The slope fan/channel play likely will only work within 40-50 km of the paleo-shelf margin; the basin LK Shelf Margin 10° floor systems have not been tested Adapted From Erlich and Keens-Dumas (2007)#30Fan/Channel Play: Summary and Conclusions PanAtlantic ✓ Cretaceous fans have been drilled on both sides of the Equatorial Atlantic margin and contain hydrocarbons, however, commercial success has been elusive to date. ✗Our understanding of the play has changed through time; nevertheless, the basic play elements are grounded on proven geological concepts. The fan/channel play may work on a technical and commercial basis in some geographies, while in others it will be very risky or likely will not work on a commercial basis There are some fundamental differences in the fan/channel play between the Equatorial Atlantic margins and the central North Atlantic/Caribbean that negatively impact the POSg and POSC in those areas. ✓ The play concept is valid and may work for other geologic intervals; for example, more emphasis should be given to the exploration for Pliocene-Eocene fan/channel complexes offshore in other geographies: Trinidad, Colombia, Venezuela (e.g., Corocoro Field), and Panama (northern arc)#31Exploration in the ROC*, 1970-Present: Review Since 1970, where has exploration worked? · • . Trinidad - Onshore (Carapal Ridge); Offshore: north (West Tobago) and east coast offshore Colombia Chuchupa, Ballena Fields • Venezuela - Paria (Gulf and offshore northern peninsula), Plataforma Deltana, Gulf of Venezuela (Perla) ⚫ Cuba northern coastal zone • • Barbados - Woodbourne extensions. •Belize - Spanish Lookout Since 1970, where has it failed? Most of the Caribbean region Why? What Prevents Success? • Wrong geologic concept (play risk) • Old/poor technology or application of technology, lack of key data • Economics/price environment • Politics . • Exploration philosophy Cretaceous M m PanAtlantic *Rest of the Caribbean Non-commercial hydrocarbons Commercial hydrocarbons ос O#32Cuba: Active Leases, 2012 EASTERN GAP.. GUL Area boundary to be negotiated OF MEXICO NI N2 N3 N4 N7 222222222 Cuba Mexico Marine STRAIT OF YUCATAN Cuba N6 7 NB N9 NIO NII N12 N13 N14 NIS USA Marine boundary FLORIDA STRAIT N16 N17 N18 N19 N20 N21 N22 N23 N24 N25 N26 N27 N28 N29 N37 N30 N31 N32 N33 N34 N35 N36 6 7 9A N42 N43 N44 N45 4 5 3 N49 N50 N51 SA Santa Clara 2 Pinar del Rio Zapata Swam N53 N54 Cienfuegos VIII Nueva Gerona N58 N59 $6 $7 Isle of Youth (of Pines) Key Largo ©Jorge R. Piñón oundary 513 $14 CARIBBEAN SEA LEGEND $25 $26 538 539 552 REPSOL (Spain), STATOIL (Norway), ONGC (India) PETRONAS (Malaysia), GAZPROM (Russia) PETROMETNAM (Vietnam) SONANGOL (Angola) CNPC (China) In Negotiations PETROBRAS (Brazil) S63 PDVSA (Venezuela) 80 km 50 miles ONGC (India) PanAtlantic#3323° N 22 N PDVSA (2012) 4250m North 53 Cuba: Active Leases, April 2014 Sonangol (2014) 3D Seismic North 23 PanAtlantic Repsol Repsol (2004) (2012) 3166m 4455m Kamagua 1 aguey 1 North 33 North 35 North 34 Boca de Jaruco Profundo Yumuri Block II East Petronas (2012) 4650m agra-1. Pardo A Marta. Merrillo Liborio 2 Cardenas North 44 -North 45 * Madruga 5 Satoche Esperanza Pinar 2 Soroa 1 Guira 2 Siboney 1 Palacios 3 North 50 North 51 - Banos 1 ay Pinar 1 Dimas 1 Rojas 1 Block 02/Montua Block I/Colorados North 54 Cumal 1 Guane 1 abo de San Antonio, North 58 North 59 85° 51km 85° W 34° W 83° W 82° W Map and Data from IHS#34GULF OF MEXICO Calche YUCATAN STRAITS Geoseismic Models, Cuban North Coast FLORIDA PLAIN FLORIDA PanAtlantic Less Deformed Highly Deformed A N S 0 shelf margin us Florida Lower Cretaceous Platform BAHAMAS Jurassic Platform 10 D WESTERN STRAITS OF FLORIDA A B Salt, Syn-rift Clastics SOMOS GAYHO COCO NATFORU N S Pinar del La Habana CUBAN FOLD & THRUST BELT Mesozoic Yuestan shelf margin CARIBBEAN SEA Cretaceous Florida shelf margin 95 10 km NNW 10 km 10 km NNW 10 MCU: MCU Courtesy of CUPET Arc Rocks Jurassic, LK Deep-water Ls/Sh SSE SSE#3515 N Honduras 14° N 13° N Nicaragua 12° N Oklanicsa 0 85° W Nicaragua: Well Control onCoco Marina-1 Zelaya- Ledacura-1 Huani-2 Huani-1 Diriangen-1 Tuapi-1 XMartinez Reef-1 Punta Gorda-1 Twara-1 Toro Cay-1 Touche-1 -Nasa Cay-1 Tinkham-1 Prinzapolka-1 Banco-Isabel Prospecto-Tyra Escondido-1 'Atlantico-1 Rama-1. Tyra-1 Perlas-3 Perlas Paraiso-1 Perlas-1 Perlas-2 Banco-Tyra Nica-1 P Centeno-1 .70km 84° 836 ты 82° W Miskito-1 -Miskito-2 200 2000 1000 1000 PanAtlantic Caribbean Sea 1000 1000 0 1000 2000 ALL :08 2008 2000 EDIN, version 6. Copyright @IHS Inc., 2000z All Rights Reserved. Map and Data From IHS#36Noble Energy Nicaragua: Current View - Offshore Nicaragua – Paraiso Prospect Drill-ready world-class opportunity Elevation depth [m] -2800 -3000 -3400 -3800 -4200 -4600 -5000 CI: 200m ▸ Carbonate Reservoir Target ► Gross Unrisked Mean Resources 210 -1,220 MMBoe (P75 - P25) ►25% Geologic Chance of Success ➤ Drill in 2013 10km PanAtlantic 151 NBL From Noble Investor Presentation (December 2012)#37Noble Energy Nicaragua: Current View Nicaragua Integrating well results and assessing next steps ► Paraiso Results ▲ First deepwater well testing frontier concept * Found Tertiary age reservoir ▲ No hydrocarbon accumulation ▲ Likely failure: containment or source ▸ Analyzing Future Potential A Fully evaluate well data and samples * Re-assess geologic model for further prospects and leads ▲ Decision additional 3D seismic * Continue to mature deeper Cretaceous and Jurassic potential * 2.8 BBoe gross unrisked resource potential Nicaragua Paraiso 168 PanAtlantic 3D Seismic Tertiary Carbonate Jurassic Carbonate 1.9MM Total Gross Acres NBL From Noble Investor Presentation (December 2013)#38Exploration in the ROC*, 1970-Present: Summary Since 1970, where has exploration worked? · • . Trinidad - Onshore (Carapal Ridge); Offshore: north (West Tobago) and east coast offshore Colombia Chuchupa, Ballena Fields • Venezuela - Paria (Gulf and offshore northern peninsula), Plataforma Deltana, Gulf of Venezuela (Perla) ⚫ Cuba northern coastal zone • • Barbados - Woodbourne extensions. •Belize - Spanish Lookout Since 1970, where has it failed? Most of the Caribbean region Why? What Prevents Success? • Wrong geologic concept (play risk) • Old/poor technology or application of • technology, lack of key data Economics/price environment • Politics . • Exploration philosophy Cretaceous W Summary Thoughts PanAtlantic *Rest of the Caribbean Non-commercial hydrocarbons Commercial hydrocarbons The Neogene section in Trinidad has worked well • The older rocks (Paleogene and Cretaceous) have not worked well • Incomplete play risk assessments have been the basis for some poor exploration decisions#39PanAtlantic Thanks for Attending Bob Erlich and Francis Inniss