Back by popular demand..
From the resident petroleum engineer
Let’s see what we can glean for IOC shareholders from the LNGE presentation:
http://www.lngenergyltd.com/i/pdf/Corpor… You will recall that LNGE and IOC made an agreement to obtain 27 km of 2D Seismic along the border between their respective license areas. From Chart 8 we see “LNG/InterOil AMI acquired a 27km 2D seismic line in Q2 2010 that has indications of a Multi-stacked structure requiring further seismic to define closure and a drillable prospect”. AMI means Area of Mutual Interest. Chart 11 shows the AIM which is 27 km x 20 km and the 27 km line of 2D seismic on the border between PPL 319 and PPL 237as depicted by the dark black line. You will see the IOC prospects T-Rex and Seismosaurus on the East side of this line.
Chart 12 shows this North South seismic line. You can see there is a structural high in about the middle of the 27 km line which includes multiple zones. If you look back at Chart 11 you will see that T-Rex is about in the middle of this 27 km line. The south end of the line, where Seismosaurus is supposed to be, shows the structure sloping off to a much lower depth. What does this mean for our Seismosaurus prospect? It could mean that the Seismosaurus high is further East on the IOC license and it does not cross the border into the LNGE license. Please also note the major faults shown on Chart 12 including one which extends from the basement all the way to the surface.
Chart 13 is a “Depth converted 2D seismic line, depicting the potential structured “multi-stacked spill points” within the entire stratigraphic column”. If you magnify this chart to about 125% you will be able to read it clearly. I believe the left axis of the chart shows the depth in meters sub-sea. For now let’s just assume only the Darai zone is filled with gas. We can see the top (highest point) of the Darai is at about 700 meters sub-sea (2300 feet) and what they are showing as the possible spill point is at about 1150 meters sub-sea (3770 feet). So what they are saying is the Darai could have as much as 1470 feet of gross gas column. I do not know how they determined these spill points. I would not think the major fault on left side of the chart should necessarily be considered a spill point as it could be a sealing fault. It is possible that the spill point could be further to the East and not shown on this seismic line. I leave up to you to speculate about the prospects for the other multiple zones.
Now let’s move to Chart 14 “Defined Prospect “Areas of Interest” with planned 2011 2D seismic survey “ where you will note that a very large circle in our AMI is shown as “Tertiary Carbonate and Deep Structural “. This Area of Interest would include T-Rex and a part of what IOC shows as Seismosaurus.
Chart 15 “Defined Prospect “Areas of Interest” with planned 2011 2D seismic survey” . The colors on this map show the depth of the basement with the reds and yellows being the most shallow. The basement on our 27 km seismic line generally tends to slope downward from the north to the south but you will note on chart 13 that there is a little localized high point in the middle of the 27 km line which has lifted all of the zone above it creating a local high in all of the zones above it. On Chart 15 you can see a red spot (high) right about where T-Rex should be and several faults which could be the trapping mechanism which contains the gas in the high point of the structure. IOC has stated that they plan more 2D seismic in the Seismosaurus area in 2011.
Tree- As you know there is a lot of guess work involved here. From Chart 15 I would say indications are that most of the gas is on the IOC side of the border with the red color going off the chart toward the East. My guess is just based on the LNGE Geologist’s best guess as to what this structure might look like with his limited data i.e. one seismic line and the available High Resolution Aero Magnetic (HRAM) and Gravity Surveys.