1. February 2002 Joint Chalk Research Experiences and Plans

2. February 2002 What is JCR? Consortium to Perform Common Research on : Geology of Chalk Rock Properties of Chalk Well Productivity in Chalk Fields Improved Oil Recovery in Chalk Rock Mechanical Properties of Chalk

3. February 2002 What Is JCR ? Past and Current Sponsors Agip Amerada Hess BP (Amoco) Conoco Dansk Olie og Naturgas Elf Enterprise Fina Hydro Mærsk Phillips RWE-DEA Statoil Texas Eastern Total Veba Supported by NPD and DEA

4. February 2002 Why Was Chalk Research Important? Relatively Unknown Geological Territory Experiences From Other Parts of the World Did Not Apply Real Challenge To Produce Oil From These Fields

5. February 2002 Why Was JCR Needed ?

6. February 2002 Why Was JCR Needed ? Estimated Recovery Factor - 18 - 23%

7. February 2002 JCR History JCR I JCR II JCR VI ? JCR IV JCR V JCR III 198019851990 19952000 Total Expenditure Through 2000: 77 million NOK

8. February 2002 JCR Topics By Expenditure

9. February 2002 JCR - Technical Merits IOR - Waterflooding Works In Chalk Fields Assisted in Providing Theoretical Foundation

10. February 2002 JCR - Technical Merits Improved Reservoir Compaction Understanding 1975 1984 5 Drainholes3 Drainholes

11. February 2002 JCR - Technical Merits

12. February 2002 JCR - Cooperative Merits Forum For Technical Discussions Mechanism For Networking Mechanism For Experience Transfer Share Critical Data and Information

13. February 2002 JCR - Cooperative Merits Accomplishments Chalk Expertise Building at Commercial Laboratories, Universities and R&D Institutions Informal Network Building Across Companies Recruitment of New Players in New Plays

14. February 2002 JCR - Future Still Many Technical Challenges To Address High Interest Among Companies to Continue Into A Next Phase

15. February 2002 JCR VI - Focus Areas Reduce Uncertainty in Waterflood Efficiency Assessments Evaluate Alternative Methods to Further Decrease Remaining Oil Improved Well Productivity Improve Modeling of Geomechanical Effects Improved Models/Descriptions for Well Placement

16. February 2002 Reduce uncertainty in log interpretations Identify needs for new tools/procedures for improved interpretations Identify flank waterflood potential JCR VI - Waterflood Evaluations Objectives

17. February 2002 JCR VI - Improved Recovery Objective –Assess the potential for additional oil recovery from water flooded chalk reservoirs by alternating CO 2 and water or CO 2 enriched water injection –assess the uncertainty associated with the practical implementation of the method Scope –Evaluate microscopic processes –Define and execute experimental program –Perform large scale uncertainty assessments

18. February 2002 JCR VI - Well Productivity Recommend field specific well completion and stimulation design criteria for optimum well performance and well life Benchmark analytical tools for fracture growth predictions Develop processes/tools for well life cycle cost optimization Objectives

19. February 2002 JCR VI - Geomechanical Projects Implementation, verification and refinement of a unified geomechanical model Experimental work to improve definition of constitutive behavior of chalk Evaluation of coupled geomechanics and fluid flow models Objectives

20. February 2002 JCR VI - Reservoir Characterization Objective –Improve understanding/description of the major depositional systems with focus on Heterogeneity Anisotropy Rock type –Develop acoustic model for behavior of fractured chalk under depletion and waterflooding for use in 4D monitoring using P/S waves

21. February 2002 JCR VI - Way Forward Project Definitions Currently Ongoing Contractor Selections Currently Ongoing Final Project Reviews - Q2, 2002 Contract Signing - Q2/Q3, 2002 Expected Budget - 15 - 20 mill. NOK over two - three year program

22. February 2002 JCR Phase I - 1982-85 Projects: –Chalk Characterization –Chemical Interaction, Wettability, Imbibition –Mechanical Properties of Chalk –Stimulation Methods and Practices Project Leaders: Agip, Elf, Fina, Phillips Budget: 15.7 MMNOK

23. February 2002 JCR Phase II - 1987-90 Projects: –Mechanical Properties of Chalk –Well Stability in Soft Chalk –Chemical Aspects of Acidizing Chalk Reservoirs –Quantitative Chalk Characterization –Long Term Effects of Water Injection on Strain in Chalk –Evaluation of Water Injection in Fractured Chalk Project Leaders: Agip, DEA, Fina, Phillips, Total Budget: 11.1 MMNOK

24. February 2002 JCR Phase III - 1990-92 Projects: –Fractures –Productivity - Water/Oil Systems –Productivity - Permeabilities –Productivity - Gas/Oil Systems –Productivity - Mechanical Properties –Completions Project Leaders: Enterprise, Fina, Hydro, Mærsk, Phillips, Total Budget: 15.7 MMNOK

25. February 2002 JCR Phase IV - 1994-96 Projects: –Chalk Monograph –Geostatistical Simulation of Chalk Properties –Waterflood Efficiency in Chalk Reservoirs –Rock Mech. Data & Constitutive Models of Chalk –Rock Mechanics and Water Injection –Compaction, Subsidence & Well Stability in Chalk –Horizontal Well Acidization Project Leaders: Amerada Hess, Amoco, Enterprise, Mærsk, NPD, Phillips Budget: 17.6 MMNOK

26. February 2002 JCR Phase V - 1997-99 Projects: –Joint Stratigraphic Framework –Well Performance in Fractured Chalk Reservoirs –Characterization & Upscaling of Fractured Chalk –Chalk Rock Catalog –Air Injection in a North Sea Environment –Trapped Gas / WAG Program –Chalk Reservoir Simulation Forums –Chalk Geomechanics Project Leaders: Amoco, Conoco, DEA, Mærsk, NPD, Phillips Budget: 16.8 MMNOK

27. February 2002 JCR V Budget Breakdown By Country