1. Presentation and review of TTA-report: Exploration and Reservoir Characterisation Summary Background Project Proposal

2. Technology Strategy for Exploration and Reservoir Characterization Lead Party: FORCE (www.force.org) Work Group: Arild Haugen (NPD/FORCE) John R Berry (BP) Per Arne Bjørkum (Statoil) Robert J Hofer (ConocoPhillips) Robert P Johannessen (Total) Kristian Kolbjørnsen (Lundin Norway AS) Arnd Wilhelms (Norsk Hydro)

3. Contents: 1.Executive Summary 1.1Background: 1.2Status and gaps: 1.3Conclusions: 2.Introduction 2.1Background 3.Inventory mapping 3.1Present Status 3.2Ongoing initiatives 4.Gap analysis 4.1Geophysics 4.2Sedimentology and Stratigraphy 4.3Structural Geology 4.4Basin analysis: Source rocks, generation and migration 4.5Rock Physics 4.6Geomechanics 4.7Reservoir Simulation and Modelling 5.Recommended activities and focus areas 6.Recommendation for projects Appendix 1 - Technology Gaps – Tables

4. Background In 20 years more than 50% of the production will come from resources yet to be found (Exploration) Large resources will presently remain in the existing fields after projected shutdowns. There is a need for a combination of new and enhanced IOR technology together with enhanced Reservoir Characterization Methodology. This report will only focus on knowledge and technology.

5. Status The NCS is one of the leading technology areas in the world especially within the seismic industry. Policies related to data sharing, availability and storage are exceptional. However still unresolved issues… Advanced workstations and software tools have made computerized reservoir models a standardized part of all petroleum exploration and production.

6. Gaps Uncertainty handling. Integration of interdisciplinary data. Basin analysis and depositional modelling. Fault-seal prediction.. Modelling techniques that honour all available data.. Lithology and fluid prediction from geophysical data. Seismic Imaging Data preparation and maintenance of high-quality databases Open standards for data communication between software tools. Education and research in critical areas

7. Gaps Calibration of seismic data with lithology and fluid information. Seismic Imaging (e.g. multiples, complex geometries). Lack of underground data in parts of the NCS (Vøring and Møre basins). The scarcity of wells in these areas leads to uncertainties in the geological understanding.

8. Conclusions – Focus Areas Advances in seismic acquisition, processing and workflows need continuous attention in order to provide better images in complex areas Improved Lithology and Fluid Prediction using full elastic wave field (4C, EM) 4D and Life of Field Seismic integration with Rock Physics Depth migrated seismic as the new standard for interpretation (special attention on the velocity model construction) Field wide 4D-VSP’s surveys / 4D tomography (down hole receivers in several wells)

9. Conclusions - Integration A fully integrated Reservoir Model all the way from Seismic, through Geo Model to Flow Model is needed. Improved modelling and simulation of reservoir heterogeneities with focus on the behaviour of fault and fractures on reservoir performance. Development of an integrated tool to handle fault seal analysis, fracture analysis, drilling engineering, logging, and seismic data. Integrated Geomechanics software and work flows are needed as part of an integrated reservoir modeling work flow. Calibration of stratigraphy, reservoir, source rock and thermal history in under-explored basins.

10. Conclusions - Recommendations It is recommended to perform a feasibility study and evaluation of the possible benefits of a stratigraphic well through the basalt area in the Vøring and /or Møre Basin to gather data, promote research and stimulate exploration activity. The establishment of a database of ongoing projects at universities and research institutes is needed to increase knowledge sharing and reduce redundancy There should be a strong focus on knowledge creation, competence building and collaboration between companies, contractors and academia. Norwegian knowledge and technology has already had a great international influence and most of the proposals in this document will have worldwide applications. In order to continue to achieve this it is required to take into account worldwide knowledge, data and technology developments.

11. Introduction Background

19. Project Proposal A well through the basalt

20. NPD Play Models

21. A stratigraphic well through basalt Recommendation: –Feasibility study –Evaluation of possible benefits Purpose: –Gather data, –Promote research –Stimulate exploration activity. Benefits: –Natural laboratory for academia and industry in cooperation. –A wealth of information pertaining to rock physics, sedimentology, heat flow etc

22. A well through the basalts – invitation. In order to evaluate the potential and possibilities for such a well we would like to invite you to participate in a working group. NPD will actively participate and is also prepared to act as the project leader during an initial stage. NPD will be able to contribute with seismic and OBS-data together with geo-expertise personnel..

23. Mandate – Schedule –The working group should have the mandate to define: Possible location(s) for a stratigraphic well Need for additional data collection before deciding drilling location Need for additional resources (cost, service companies involvement etc) Project plan for operational phase (organizational model, operator, timing, budget, ownership of data etc) Possible future research projects based on the new data. –Schedule Feasibility study and planning for area location – define necessary data acquisition (August – Dec 2005). First decision gate to proceed. Data acquisition and analysis for evaluation of specific target area (2006 ). Drilling and data acquisition 2007 -2008 Research Projects 2008 –

24. Response Postive : ExxonMobil, ChevronTexaco, Total, Statoil... Negative: BP