HOW TO DESIGN AN EXPLORATION SURFACE SOIL GAS GEOCHEMICAL SURVEY: ILLUSTRATED BY APPLICATION EXAMPLES FROM THE HUGOTON EMBAYMENT OF SOUTHEAST COLORADO AND SOUTHWEST KANSAS Rufus J. LeBlanc, Jr., and Victor T. Jones, III Exploration Technologies, Inc. AAPG Annual Convention, April 18-21, 2004 Dallas, Texas Aerial Photograph of a modern-day incised valley in the Lower Jurassic Navajo Sandstone of east-central Utah. This is an excellent analog for the Morrow incised valley-fill sandstones of the Stateline Trend of eastern Colorado and western Kansas. Image: Cover photograph of September 2002 AAPG Bulletin HOW TO DESIGN AN EXPLORATION SURFACE SOIL GAS GEOCHEMICAL SURVEY: ILLUSTRATED BY APPLICATION EXAMPLES FROM THE HUGOTON EMBAYMENT OF SOUTHEAST COLORADO AND SOUTHWEST KANSAS Rufus J. LeBlanc, Jr., and Victor T. Jones, III ABSTRACT Three regional surface geochemical soil gas surveys covering areas of 150, 53, and 209 square miles were conducted in the Hugoton Embayment of southeast Colorado and southwest Kansas. The three surveys exhibit different sampling densities and comprise both reconnaissance and detailed grids. The surveys were conducted over the prolific Pennsylvanian Morrow Stateline Trend and the Permian Chase Carbonate Gas Trend. The stratigraphic entrapment of oil and gas in these two plays, relatively shallow depth, and highly variable porosity and permeability of the reservoirs are factors which favor the application of surface soil gas surveys as an important exploration method to reduce risk in exploration, exploitation, or development efforts in these two plays. Examples of actual reconnaissance and detailed surface soil gas surveys in this petroleum province are discussed. The surveys were conducted from 1987 to 1992 before there was the widespread development drilling as witnessed today. Both the benefits and limitations of a reconnaissance survey over the Stateline Trend from Frontera to Second Wind Fields are discussed. A detailed survey in the Moore-Johnson Field area illustrates the benefits of surface geochemistry in risk reduction in this stratigraphicly complex area. An example of a detailed soil gas survey over Byerly Field in Greeley County, Kansas is presented which depicts the complex porosity and permeability variations in the Chase Carbonate. from a properly designed survey. The factors listed in Table 1 are critical for the successful design, employment, and interpretation of a soil gas survey Another reason for past failures may have been in the sample technique used in the collection of the soil gas samples (Jones, 2004, in review). The considerations for sample spacing presented in this paper are not only the result of the authors work with exploration surveys in the area over a 16-year period, but also the result of having concurrently employed surface soil gas geochemistry in environmental assessments of petroleum contaminated sites. Reservoir heterogenities in shallow sedimentary rock units of shallow vadose zones and aquifers are very readily apparent from the surface microseep anomalies observed from the extremely high-density soil gas grids used in these applications. An example of such an application is provided in Agostino, LeBlanc, and Jones (2002). Exploration soil gas surveys may be designed so that they are very inexpensive and regional in nature, with very few soil gas samples, or they may be designed so that they are more detailed, with dense spacing of soil gas sample sites. As will be demonstrated with application examples, there is a critical balance in the design of surface geochemical surveys that must be met if useful results are to be attained. Measuring natural gas microseepage, like any scientific analytical method dealing with nature is not perfect. Interpretations of soil gas geochemistry should always be used in conjunction with subsurface geology and geophysics. Another important concept to remember is that there is no direct relationship between the magnitude of a surface microseep and the resultant volumetric hydrocarbon production or economics of a corresponding well or field. Soil gas microseepage, measured at the surface, is the result of light hydrocarbon gases in a reservoir being pressure-driven upward to the surface along natural fractures in the subsurface. The paper is a retrospective analysis of soil gas surveys conducted in this complex area in light of new geologic knowledge of the area that has been revealed in the past decade. A general rule-of-thumb concerning soil gas surveys is that more soil gas sites per unit area are required in stratigraphic fairways than in structural fairways. However, some caution should be taken in this generalization, as there are few structural hydrocarbon accumulations that do not also have some stratigraphic variations in the reservoir. INTRODUCTION Three regional surface geochemical soil gas surveys covering areas of 150, 53, and 209 square miles were conducted in the Hugoton Embayment of southeast Colorado and southwest Kansas. The surveys were conducted from 1987 to 1992 before there was the widespread development drilling as witnessed today. This paper describes various configurations for soil gas surveys that may be designed and discusses the type of exploration information that can be expected from each survey design from reconnaissance to detailed soil gas surveys. Examples will be drawn from the actual soil gas surveys in these areas. The hypothesis that natural soil gas microseeps detected at the surface from underlying hydrocarbon deposits could continue to be useful as an exploration method is a natural extension of the mapping of macroseeps, which led to the very early discovery of many oil and gas fields in petroleum basins all over the world (Link, 1952). A history of the development of surface soil gas geochemistry may be found in Jones et al. (2000). Twenty years ago, in 1983, Jones and Drozd published a paper in the AAPG, which improved our understanding of two important basic concepts of surface soil gas geochemistry – magnitude and composition as relating to subsurface reservoirs, significantly improving the viability of surface geochemical prospecting as a viable exploration method. One of the primary reasons for past failures in the application of surface geochemical surveys is a lack of a proper design of the sampling grid. Few explorationists have adequate knowledge on how to design a surface soil gas survey, and as a result do not accrue nor appreciate the benefits that can be expected How to Design an Exploration Surface Soil Gas Geochemical Survey The Hugoton Embayment provides an excellent petroleum basin with which to illustrate these methods for the following reasons: (1) simple tectonics with little faulting, (2) the gas microseepage is vertical, (3) shallow to intermediate depth productive horizons, (4) wide range of types of soil gas surveys, (5) the area contains both oil and gas trends, each having different unit spacing, (6) the resultant oil and gas production in these trends is in the “giant field” category, (7) the actual concentrations of the free soil gas microseepage in these areas has very low magnitudes so that the background concentrations approach zero, and (8) the oil and gas accumulations are predominantly stratigraphic, providing an additional impetus to use geochemical data in this type of high-risk exploration play. Page 2 BASICS OF SURFACE SOIL GAS SURVEYS In its simplest mode, soil gas samples can be collected from a depth of four feet by means of a hand-held collection probe into a small volume (125 ml) glass sample bottle. These simple collection techniques do not require elaborate logistics, in addition to providing low collection costs, enabling rapid collection, and being generally unobtrusive to the environment. The general objective of soil gas surveys is to collect and measure microscopic concentrations (microseeps) of methane, ethane, propane, and butane found in the void spaces of near-surface soils that overlie subsurface petroleum reservoirs. These gases are the lightest and most volatile constituents in crude oil, condensate, and natural gas reservoirs and because of this characteristic are the most important components to quantify and map. . A most important requirement for mapping these natural seeps is that the laboratory analytical instruments must have the capability to detect very low concentrations, in the parts per billion (ppb) range, for methane, ethane, propane, and butanes. APPLICATIONS FOR SURFACE GEOCHEMICAL SURVEYS A. Surface Geochemistry as a Reconnaissance Exploration Tool CONCEPT BASIC GEOLOGY (1, 2, 3) SURFACE GEOLOGY LEASING GEOPHYSICS INTEREST AREA GEOLOGY Geochemistry can be applied to LARGE areas - such as basins, concessions, and plays. It is applied in "series" fashion with the more costly tools used later. Objectives: 1. To identify interest areas, based on gross hydrocarbon character, at a low cost per square mile. 2. To select most valuable concessions; focus exploration in frontier areas. 3. To differentiate oil-prone from gas-prone or thermally-mature versus immature areas. B. Surface Geochemistry as a Detail Exploration Tool Geochemistry can be applied to known interest areas previously identified by other methods (geophysics, leasing, and geochemistry). It is usually applied in "series/or parallel" fashion with other tools. (4) SURFACE GEOPHYSICS GEOCHEMISTRY PROSPECTS IDENTIFIED FURTHER EVALUATION OR DRILLING Objectives: 4. To identify drilling prospects; usually used in conjunction with geophysics. LEASING GEOLOGY, GEOPHYSICS PROSPECTS ABCD (5, 6) SURFACE GEOCHEMISTRY 5. To rank drilling prospects on the basis of their most favorable geochemical characteristics. 6. To assist a drilling partner to decide to participate/not participate in one or more of a series of wells. MOST FAVORABLE PROSPECTS ARE DRILLED WILDCAT DISCOVERY (7) SURFACE GEOCHEMISTRY 7. To define the areal extent of an oil accumulation to assist orderly field development. FIELD DEVELOPMENT Boleneus, David, 1994. Guidelines, etc. Oil & Gas Journal, June 6, pp 59-64 Figure 1 How to Design an Exploration Surface Soil Gas Geochemical Survey Soil gas surveys may be used at any stage of exploration in a petroleum basin – whether in the frontier stage of an unexplored basin or in the development stage of a mature basin. An excellent summary that illustrates the variety of different stages in the application of soil gas geochemistry has been discussed by Boleneus (Figure 1). If employed very early in basin exploration, soil gas surveys can provide justification for purchasing “trend acreage”, or if geophysical data is lacking, can be used as further criteria for strengthening a subsurface lead. Soil gas surveys may be classified as reconnaissance, detailed, regional, or local. The particular survey conducted must be tailored to the exploration objectives. Regional surface geochemical soil gas surveys may be conducted at any stage in basin exploration – frontier, semimature, or mature. Local soil gas surveys have been employed in the explotation or development stages of a play or field. Soil gas surveys have also been documented to be beneficial during the secondary recovery efforts in a particular field much like the current employment of 3-D and 4-D seismic surveys for these purposes. Soil gas sample density per unit area determines whether a regional soil gas survey is a reconnaissance survey or a detailed survey. In a detailed survey the sample density should be commensurate with the expected prospect areal extent or well spacing of a particular play. Special high-density soil gas spacing has been used in surveys conducted for the development drilling of fields and later in secondary recovery efforts. Reconnaissance surveys are typically employed in the frontier or semi-mature exploration stages of a concession or basin. There is less justification for a reconnaissance survey in a mature basin. Because reconnaissance soil gas surveys are the least costly exploration technique, they should be applied in series fashion with the more costly exploration techniques (gravity, magnetics, reconnaissance 2-D seismic) following later. However, exceptions do occur. A reconnaissance survey conducted across the Powder River basin in 1976 resulted in the discovery of the Hartzog Draw field (second largest field in this mature basin). Detailed soil gas surveys are used in later exploration stages to acquire additional exploration information in areas of interest delineated by a reconnaissance survey. Detailed soil gas surveys are typically applied in a parallel fashion with other exploration methods (wildcat wells, detailed 2-D seismic grids, 3-D seismic). An additional benefit of soil gas surveys is the capability to differentiate (using compositional ratios) between oil-prone or gas-prone fairways in a particular concession or basin or whether certain areas are thermally over-mature or immature. The concept and application of compositional ratios has been discussed in detail by Jones and Drozd (1983) and Jones et al. (2000). Interpretation of soil gas data involves presenting the geochemical dataset within the most current and detailed geological and geophysical framework available. The magnitudes of the four light gases may be presented many different ways for interpretational presentations: (1) (2) (3) (4) (5) (6) (7) Presenting the microseep magnitudes in a profile graphic. Presenting the microseep profile in conjunction with a subsurface geologic cross-section or a seismic line. Presenting a group of microseep profiles as a fence-diagram graphic. Presenting the microseep magnitudes in the form of an interpretative contour map. Presenting the microseep magnitudes in the form of a dot map where the diameter of the dots (at each soil gas site) is directly related to the light gas magnitudes. This presentation gives an unbiased interpretation as opposed to a contour map. If compositional ratios of the microseeps are used, then the predicted hydrocarbon (oil, condensate, gas) is indicated by color-coding within the magnitude dot maps mentioned above. Presenting the microseep magnitudes in the form of a Pixler Plot. Anomalous concentrations of methane, ethane, propane, and butanes detected at the surface are always real seeps, since active flux is necessary to overcome near surface interfering effects. Page 3 A. LOCATION MAP HUGOTON EMBAYMENT ge brid CamArch ns Tra ch l Ar Colorado nta tine n o c Salina Basin Nebraska lK ra nt Ce Kansas s sa an GENERAL GEOLOGY OF THE HUGOTON EMBAYMENT The Hugoton Embayment of southwest Kansas and southeast Colorado, shown in Figure 2A, is a wide, southward-plunging Paleozoic syncline of about 12,000 square miles that is bounded on the west, north, and east by uplifted areas. The Hugoton Embayment is the shallower, northward extension of the deeper Anadarko Basin of western Oklahoma and the Texas Panhandle. The Hugoton Embayment is bounded on the west by the Las Animas Arch, on the north by the Transcontinental Arch, and on the east by the Central Kansas Uplift. Sedimentary rocks thicken towards the center of the basin and southward to about 9000 feet near the Kansas-Oklahoma border. sA rch t lif Up DENVER BASIN An ima Hugoton Up li 500 Embayment ft Oklahoma an de Ar Cim Arcarron h ch Ap ish ap a Las 0 50 0 Gr Texas 1000 25 0 50 0 0 Si er ra 500 Dalhart Basin Ama New Mexico 200 0 rillo 0 300 Upli ft 0 EXPLANATION HIGH-ANGLE FAULT HACHURES ON DOWNTHROWN SIDE PRECAMBRIAN ROCKS EXPOSED 0 25 50 75 100 mi 0 40 80 120 160 km Anadarko Basin 40 00 The USGS has recognized 25 different petroleum plays in the Hugoton Embayment and Anadarko Basin (USGS, 1995). Every Paleozoic system that is represented in both these basins has produced some hydrocarbons. The province overall produces primarily gas. According to recent production data, compiled by the USGS, the province has produced more than 2.3 BBO and 65.5 TCFG since the early 1900’s. Stratigraphic trapping mechanisms are the most common, combination types less common, and structural types the least common. Pennsylvanian and Permian reservoirs have produced the largest volumes of hydrocarbons to date. The two petroleum plays discussed in this paper are the Pennsylvanian Morrow Sand Oil Trend and the Permian Chase Carbonate Gas Trend illustrated in Figures 2B and 2C, respectively. Wichita Mtn. Uplift Morrow Isopach Contours in ft GENERAL GEOLOGY OF HUGOTON EMBAYMENT POSITIVE AREAS BASIN AREA AREA OF OIL TREND AREA OF GAS TREND Figure 2 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 4 Pennsylvanian Morrow Sand Oil Trend MARINE SHALE A ge rid MISSISSIPPIAN LIMESTONE SUBCROP rch Abandoned Highstand Position al ent tin on nsc rch a r A T mb Cheyenne Co. KANSAS Lookout Sherman Co. Wallace Co. Ca COLORADO B. PENNSYLVANIAN MORROW SAND OIL TREND Nebraska Kansas Ancestral Front Range s sa an ND MORROW SAND CHANNELS t lif Up TRE INE TEL Frontera lK ra nt STA Arapahoe Ce Harker Ranch Colorado Mount Sunflower Sierra Grande Uplift Oklahoma Lowstand Shorelines Texas Greeley Co. Stockholm SW Abandoned Highstand Position Second Wind Sidney Am aril lo U t Wic h 100 mi mi km Up lift MORROW PALEOGRAPHY Moore-Johnson 0 ita 160 km Jace Regional dip at the top of the Morrow is to the east-southeast. Drill depths to the Morrow reservoirs ranges from 5000 to 5500 feet. Average cumulative production from wells in this trend has ranged from 40,000 to 155,000 BO per well. A comprehensive compilation of 23 papers on the fields within the Morrow oil trend over the Las Animas Arch and Hugoton Embayment was published by the RMAG (Sonnenberg et al., 1990). Further details of the area may be found in Bowen, 2001. Recently, an excellent summary of the Morrow sequence stratigraphic framework and the relational aspects to reservoir geometry and geology and reservoir performance was presented by Bowen and Weimer (2003). plif Kiowa Co. 0 INCISED MORROW VALLEYS 10 10 DISTRIBUTION OF OIL FIELDS IN MORROW TREND Permian Chase and Council Grove Carbonate Gas Trend C. PERMIAN CHASE CARBONATE TREND Wallace Gove Logan A West BR AD SHA W BYERLY Greeley Wichita Scott A’ East Lane Red Shale and Siltstone Kearney OM PAN Gray TON Grant Haskell SEWARD Sumnex Cou ncil Chase Gro ve Gas-Water Contact GR A EEN W OO D HU GO Stanton Regional dip of the Permian Carbonates is to the east-southeast. Average drill depths of the gas reservoir at Byerly Field, in the extreme north of the Hugoton Embayment, range from about 2750 to 2900 feet. Cumulative gas production from individual wells in Byerly Field has ranged from 30 MMCFG to 3,572 MMCFG. STEVENS Wabaunsee Shawnee The Permian Carbonate Gas Trend (Chase and Council Grove Groups) in the Hugoton Embayment is the most prolific and important hydrocarbon play in this petroleum province. The major gas fields of this area – Hugoton, Panoma, Greenwood, Bradshaw, and Byerly have produced a total cumulative of 27 TCFG. The natural gas accumulations in these fields are due to stratigraphic entrapment caused by a facies change in the Permian Chase and Council Grove Carbonate reservoirs where they grade from limestones and dolomites in the east to nonmarine red beds in the west (Figure 2C). The upper seal for the gas reservoirs are provided by anhydrites and shales of the overlying Sumner Group. MORTON Admire Finney A Hamilton Pennsylvanian Morrow fluvial sand channels developed both within and along the margins of the Morrow paleobasin during major regressive events in Early Pennsylvanian time (Figure 2B). There are five recognized regressive-transgressive cycles within the Upper Morrow Formation (Bowen and Weimer, 2003). River valleys were incised into either underlying Lower Morrow or Upper Mississippian limestones and were subsequently progressively filled with fluvial sands, estuarine sands, and finally, marine muds. The distribution of Morrow Sand channels within the incised valleys is commonly very complex, sometimes involving cross-cutting relationships. Later channel stages are frequently incised into earlier ones. The portion of the Morrow Trend mentioned in this paper is commonly referred to as the Stateline Trend and the complex of fields extends for about 60 miles in a north-south direction along the Colorado and Kansas state boundary (Figure 2B). The collection of fields in this complex will have an ultimate recovery of more than 100 MMBO and 500 BCFG. A’ Morton Stevens Seward STRATIGRAPHIC ENTRAPMENT IN CHASE CARBONATE Meade DISTRIBUTION OF GAS FIELDS IN CHASE TREND Figure 2 How to Design an Exploration Surface Soil Gas Geochemical Survey The stratigraphic entrapment of oil and gas in these two plays, relatively shallow depth, and highly variable porosity and permeability of the reservoirs are factors which favor the application of surface soil gas surveys as an important exploration method to reduce risk in exploration, exploitation, or development efforts in these two plays. Examples of actual reconnaissance and detailed surface soil gas surveys in this petroleum province are discussed below. Additional information on the Chase Carbonate may be obtained from the Kansas Geological Survey website and Bebout et al. (1993). Page 5 B. 1987 Oil and Gas Field Development and New Discoveries in Stockholm Area A. 1979 Oil and Gas Fields in Stockholm Area FUNK MISSISSIPPI OIL 28 27 19 26 25 30 20 19 24 COLORADO 24 21 22 23 24 19 26 25 30 35 36 31 ARAPAHOE MORROW GAS 27 28 29 30 25 28 27 19 20 21 22 25 30 29 28 27 36 31 32 33 34 24 These four fields were discovered as a result of various exploration plays on lowrelief structures. KANSAS 23 ARAPAHOE MORROW GAS COLORADO 22 KANSAS 21 FUNK MISSISSIPPI OIL 22 21 By the end of 1986, SW Stockholm Field had been developed to the extent shown on Figure 3B. The field contained 53 wells and extended for four miles along the arcuate axis of the field. A history of field development was discussed by Shumard (1991). During 1987 there were three significant developments in the area: (1) TXO completed a one-half mile field-extension in March with the Wallace # 1-R. (2) In April 1987, Medallion drilled a Morrow oil new field discovery with the Arapahoe # 27-1 eight miles to the north of SW Stockholm Field. (3) In July 1987, Mull Drilling established a Morrow oil new field discovery with the Stateline Ranch # 1 well four miles north of SW Stockholm Field. These three wells, along with the wells of SW Stockholm Field had, in general terms, defined a Morrow sand oil fairway for a distance of 10 miles in a north-south direction (Figure 3B). A decision was made to conduct a reconnaissance surface soil gas survey in the area using 11 samples per section. A profile line of samples taken from this low-density grid will be used to illustrate the differences between profile versus surveys conducted on a grid pattern. 36 36 31 34 33 32 31 33 34 K225 ENCAPMENT MISSISSIPPI OIL 4 3 2 1 6 9 10 11 12 7 1 6 12 7 4 5 K227 K229 K228 10 K232 K231 K230 K233 K234 1 6 5 4 3 12 7 8 9 10 Mull Drlg. Stateline Ranch #1 13 18 17 16 15 19 20 21 22 4 3 2 1 6 9 10 11 12 7 W STOCKHOLM MORROW GAS 18 21 22 23 24 19 27 26 25 33 2 36 14 13 18 21 22 23 24 19 27 26 25 24 15S42W 34 33 34 3 5 7 12 15 15S42W 15S41W 6 16 28 31 1 11 27 33 32 31 2 10 28 29 30 25 35 22 30 36 34 3 15S43W 15S42W 28 21 20 19 24 15 1 6 5 4 12 7 8 9 18 17 16 8 2 11 10 C.R. Assoc. Evans #1 11 35 30 29 28 27 36 31 32 33 34 Profile Line SW STOCKHOLM 31 6 7 12 TXO Wallace # 1-R 25 30 36 1 15S42W 13 W STOCKHOLM MORROW GAS 16 15S41W 14 15S43W 15 17 18 13 16 K235 Soil Gas Profile ENCAPMENT MISSISSIPPI OIL 3 9 8 K226 14S43W 14S42W 35 14S43W 14S42W 34 14S42W 14S41W 33 14S42W 14S41W Medallion Arapahoe #27-1 5 2 1 6 5 4 11 12 7 8 9 14 13 18 17 16 8 Eleven soil gas sites collected in a single east-west profile, 3.5 miles long, along a highway that was north of the well established Morrow oil production at SW Stockholm Field and about half way between the two new field discoveries is shown in Figure 3B. Typically, such a soil gas profile would have been placed along the trace of a geophysical seismic line if one was available. The ethane magnitudes shown on this profile indicate a possibility that the Morrow oil production fairway also extended between the two Morrow oil new field discoveries. TXO Evans #1 K225 K226 K227 K229 K228 36 31 K232 K231 K230 K233 K234 K235 Soil Gas Anomaly 2 ENCAPMENT Field 6 1 6 1 1 Mile SOIL GAS PROFILE ETHANE MAGNITUDE Ethane Magnitude (ppb) 60 50 40 30 20 10 K225 K226 K227 K228 K229 K230 K231 K232 K233 17 16S42W 18 13 RECONNAISSANCE SOIL GAS SURVEYS 31 14S43W 14S42W 14S42W 14S41W 36 1 Mile 16S43W 16S42W 16S43W 16S41W 13 C. November 1987 Reconnaissance Soil Gas Profile 35 14 15 14 16S41W 17 16S42W 1 Mile 16S42W 18 13 14 15 K234 K235 Reconnaissance soil gas surveys typically are conducted over a large area with wide spacing between soil gas sample sites. The soil gas samples may either be collected along single line profiles or in a regular grid pattern. Examples of surveys conducted over oil fields in the Stateline Trend of the Morrow oil fairway will be used to demonstrate these concepts. In 1979, TXO drilled the discovery well for SW Stockholm Field (and the Stateline Trend) at the location shown on Figure 3A. At this time, there were only four fields in the immediate area (Figure 3A). There were two one-well abandoned Mississippian oil Fields (Funk and Encampment Fields) and two Morrow gas fields (Arapahoe and W Stockholm Fields). On the soil gas profile (Figure 3C) the ethane concentrations range from nine to forty parts per billion (ppb). Background concentrations of ethane occur at sites 225, 227, 228, and 235. The anomalous ethane magnitude at site 226 on the profile appears to be the result of gas microseepage from the one-well abandoned Encampment Oil Field (Mississippian). Anomalous ethane magnitudes at site 229 through site 234 (six sites) represent gas microseepage that appears to be from the subsurface Morrow oil reservoir. The anomalous ethane concentrations extend for a distance of 8800 feet (1.7 miles). This width is consistent with the maximum width of SW Stockholm field. At this stage, an exploration well could have been drilled within the anomalous area, provided that the geochemical anomaly was supported by geology and/or geophysics, or a reconnaissance soil gas survey could be conducted on a uniform grid pattern in order to more rigidly define the suggested Morrow oil trend trend. Based on this encouraging data, a reconnaissance soil gas survey conducted over this area is discussed below. Figure 3 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 6 B. Soil Gas Survey Conducted - November 1987 Ethane Magnitude Contour Map COLORADO 26 25 28 29 30 25 30 K094 K093 K092 K124 K146 K147 27 K074 K096 23 K122 K121 K120 K145 K123 K095 22 K119 K118 K073 13 K148 K076 K126 K127 K098 K097 24 K125 25 24 K099 19 18 K080 K079 17 K129 K131 K130 20 K227 K229 K228 K197 K198 K221 K225 K224 K223 K222 K179 K226 K229 K228 K227 K204 36 31 K205 K232 K231 K230 K325 K326 27 26 25 30 34 35 36 31 3 2 1 6 10 11 12 7 15 14 13 18 22 23 24 19 27 26 25 30 36 31 K137 K159 K158 28 K187 16 24 19 20 21 25 30 29 28 36 31 32 33 1 6 5 4 12 7 8 9 13 18 17 16 24 19 20 21 25 30 29 28 36 31 32 33 Reconnaissance Soil Gas Survey on a Uniform Grid K190 K189 K188 31 K238 K237 K236 K235 K234 K233 32 K211 K210 K209 K208 K207 K206 33 K241 K240 K239 K306 K305 11 K328 K355 K329 K307 12 K332 K331 K330 K356 21 K406 K357 14 K377 K378 12 K308 7 28 29 13 K383 K382 K381 K380 K411 K410 K409 K431 K511 SW STOCKHOLM K413 K437 K436 24 K513 K489 K488 K516 K515 K514 34 35 K517 36 5 2 5 6 7 K315 9 K389 K388 K589 11 K567 K344 K343 K569 25 K518 K765A 12 K415 K620 K621 K391 K391A K367 16 K393 K392 K396 K395 K394 K418 K417 K416 K420 K419 21 20 19 K446 K470 K469 K468 K467 K466 K445 K444 K443 K442 K441 K440 K447 K448 K499 K500 K472 K471 28 29 30 K521 K520 K525 K524 K523 K522 33 32 31 36 34 K549 K548 K547 K546 K545 K544 35 K552 K551 K550 K574 K574A K575 K595 K596 K597 K625 K626 K627 K578 K577 K576 2 K581 K580 1 6 5 2 1 6 5 11 12 7 8 14 13 18 17 5 6 1 K573 K572 K599 K598 K600 K602 K601 K603 K60 K604 K594 K593 7 8 K623 K622 K498 K497 K496 K495 K494 K493 K492 7 12 11 K630 K629 K628 8 K632 K631 8 7 12 11 K619 K390 K366 17 K542 5 K571 K570 K592 K591 K590 ETHANE K618 K617 CONCENTRATIONS K364 31 6 K568 K365 K363 18 2 8 7 12 K314 K342 K490 K541 K540 K539 K538 1 K566 K565 8 11 K537 K536 K535 K534 K533 K564 12 K341 K340 30 K487 K486 K485 K362 K414 K543 1 8 K339 K338 K337 K361 K439 K438 K465 K464 K463 25 K484 K483 K482 K512 K532 2 7 K313 K312 K311 K310 K336 K519 33 32 31 6 K293 19 K435 K434 K462 K461 26 K481 K480 1 K292 K386 K412 24 K433 K432 K460 27 13 K360 18 K385 K384 23 K430 K459 K458 31 36 4 K291 K334 K333 K359 K358 TXO Wallace # 1-R 30 36 K290 K289 K263 K262 K261 5 K288 K287 K286 K309 K491 35 6 K285 K260 K259 K258 K257 K284 K387 K379 K408 K407 K429 K428 30 1 K283 K764A 20 15S42W 15S43W 15S42W 15S41W K256 6 K282 K281 K280 K279 K304 K327 22 25 1 K335 K354 K353 19 25 K303 10 15 19 K255 K254 K253 K278 15S43W 24 26 11 19 17 15S42W K302 K324 18 24 23 K277 K276 16 17 18 K252 2 K275 K301 K376 2 24 18 15S43W 3 15S42W Mull Drlg. Stateline Ranch #1 13 13 K251 K250 K274 9 8 7 12 W STOCKHOLM MORROW GAS 34 23 13 K180 K203 K202 36 22 21 15S42W K249 7 12 14 27 K178 K177 K201 4 5 6 1 6 1 11 22 K176 K235 K273 15 K175 K200 35 15S42W 2 10 K174 K199 34 14S43W 14S42W 14S43W 14S42W K232 K231 K230 K234 K233 K173 K172 K171 33 32 31 18 K105 K136 K157 K186 K185 K184 K183 K182 13 Soil Gas Profile ENCAPMENT MISSISSIPPI OIL 3 36 31 15S41W K226 K225 14S42W 14S41W 36 35 14S42W 14S41W K170 34 K181 14 K085 29 30 25 K135 K156 K155 K154 K153 K152 30 Medallion Arapahoe #27-1 15 K134 K133A K132 16 K104 K103 K102 K133 K128 K084 K083 K082 K081 K101 19 K100 C. Stateline Complex Development August 1990 K060 K059 K058 K057 K056 K078 K077 K151 K150 K149 26 K075 13 K055 18 15S41W 27 21 20 19 24 19 K072 K054 K053 KANSAS 24 K071 K070 K069 K052 14 COLORADO 23 ARAPAHOE MORROW GAS K068 K067 KANSAS 22 15 14S43W 14S42W FUNK MISSISSIPPI OIL K051 K050 K049 K048 14S42W 14S41W 16 17 18 13 18 KANSAS 13 COLORADO A. Stateline Complex Development January 1987 14 15 K624 (ppb) K657 K656 K677 K683 K682 K680 K679 14 13 K681 K701 K700 K702 K703 K685 17 18 1 Mile K699 K684 K705 K704 18 13 14 K678 K706 K707 K708 17 16S42W 17 K676 16S43W K675 K655 16S42W K674 K654 K653 16S41W 18 K673 K672 K652 16S42W K644 K643 13 K671 16S43W 17 18 K651 K650 K646 K645 16S41W 13 K649 K648 K647 K642 16S42W 14 16S42W 16S41W 17 16S43W 18 13 16S42W 14 > 30 25 - 30 1420 - 25 15 - 20 < 15 K641 K709 Figure 4 Lookout 20 21 22 23 24 27 26 25 30 29 28 34 35 36 31 32 33 19 15S42W 15S41W Cheyenne County Harker Ranch MT. SUNFLOWER FIELD ATE "ST ianna E LIN Arapahoe Wallace Co. Greeley Co. Mount Sunflower Arrowhead Stockholm SW Second Wind Greeley County 16S42W 16S41W " ND TRE Frontera 4 3 2 1 6 5 9 10 11 12 7 8 16 15 14 13 18 17 24 19 20 Sidney AREA OF DETAIL MAP Jace Moore-Johnson SIDNEY FIELD 0 McClave mi 0 km 10 21 22 23 10 1 Mile 28 27 26 25 30 29 Figure 5 How to Design an Exploration Surface Soil Gas Geochemical Survey A reconnaissance soil gas survey was conducted in November 1987 over an area of 150 square miles as shown in Figure 4A. The soil gas sample grid used (11 sites per section or square mile) was selected, both to make sample collection rapid by using the existing road network, and to limit the number of sites over such a large area. Because the well spacing of 80 acres per well had been established at SW Stockholm Field, the particular sample density used for this survey requires defining this survey as a reconnaissance survey. The area of the survey was also chosen to include other recent Morrow discoveries to the north of SW Stockholm Field, so that the soil gas data could be calibrated to the oil production with respect to magnitude and composition. A total of 798 soil gas sites were collected over this 150 square mile area. The interpreted soil gas data over the productive trend is illustrated by the ethane magnitude contour map shown in Figure 4B. It can be clearly seen that as early as 1987 (and prior to), the soil gas survey had accurately defined the general areal extent of the productive Morrow incised valley as would be confirmed by development drilling three years later in 1990 (Figure 4C). It can also be discerned that, at this sample density, that the soil gas data is inadequate for use in determining 80-acre drilling sites. Thus, the selected density for this survey conducted in 1987 was at the minimum threshold required to provide useful exploration information. This portion of the Morrow Stateline Trend, to date, has produced a total of 34 MMBO from 299 development wells. A retrospective analysis of this soil gas survey was previously discussed by Dickinson et al. (1994) A number of untested soil gas anomalies still exist in the remainder of the survey area to the east of the Stateline Trend. These untested soil gas anomalies exhibit similar magnitudes and areal extents as the anomalies mapped within the Stateline Trend. Substantiation that these untested soil gas anomalies do indeed outline areas of additional Morrow oil potential may be seen in the recent development of the Mount Sunflower and Sidney Morrow oil fields in Wallace and Greeley Counties, Kansas. As shown in Figure 5, these two Morrow oil fields now contain a total of 40 oil wells and have produced a total of 2.85 MMBO. Development drilling in these two new fields progressed from 1990 through 1999 and has been conducted by 13 different independent oil companies. The significance of this new Morrow oil production is that, together, the two fields have defined a new Morrow oil productive fairway that is about two miles wide and extends for seven miles in a north-south direction (Figure 5). The new fairway is four miles east of the older Stateline Trend Morrow oil production. Although the productive area of these two fields is predominantly outside of the area of the 1987 reconnaissance soil gas survey, there are soil gas anomalies that border the current production at these two fields and suggest the possibility of even further extension of this newly established production in the Morrow oil trend. This is an excellent example of an area where a later detailed soil gas survey could be conducted and combined with an earlier reconnaissance survey. A detailed soil gas survey in this area would greatly enhance the explotation/development efforts in this new Morrow oil trend. Other important factors for consideration in dealing with soil gas surveys can also be shown and discussed from this data: (1) Calibration with established production, (2) Width of productive fairway in relation to sample density of the reconnaissance survey, and (3) Delineation of Morrow gas fairways. Page 7 K387 19 K413 15S42W K412 15S43W 15S41W 21 20 19 K464 30 K391 K391A K390 K393 K392 K394 K395 K418 K417 K416 19 20 K41 219 19 K437 28 29 30 25 K415 24 K414 K439 36 K389 K386 15S42W 24 15S42W 15S43W 15S42W 15S41W K385 K388 K440 K443 K442 K441 K445 K444 K44 K446 K438 30 K470 K469 K468 K467 25 K466 K465 29 K471 Calibration With Established Production 28 30 K492 K491 K489 K496 K495 K494 K493 K497 K498 K49 K490 LEGEND ETHANE CONCENTRATIONS 33 32 31 (ppb) K517 (Modified after Schumard, 1991) K541 K518 25 - 30 20 - 25 15 - 20 < 15 5 K571 8 K623 13 16S42W 16S43W 16S41W 14 K676 1000 Scale - Feet 2000 K545 K57 2 4A K575 K595 K596 K597 K625 K626 11 K627 K647 K648 K649 K546 K547 K549 K548 K550 K55 K576 K580 K578 K577 1 6 K598 K599 K600 K603 K602 K601 K629 K628 12 K630 K631 7 K677 K650 K651 K652 K653 K655 K654 17 K678 18 0 33 K624 K646 5 17 K524 8 7 12 K544 K543 K574 16S41W 11 K523 K522 32 K573 2 K594 3 K521 31 K542 6 1 K520 K519 31> 30 5 2 36 16S43W 1982 36 1983 311984 1985 1986 1987-1988 K679 14 K680 13 K681 16S42W Year Well Completed Figure 6 illustrates ethane soil gas concentrations over SW Stockholm Field and shows why caution should be used when selecting productive areas for calibration purposes. The production at SW Stockholm Field, as shown in Figure 6A, was first established in the southern portion of the field where wells were completed between 1982 and 1984 (Shumard, 1991). The area had reached the end of primary recovery and was in initial stages of waterflood when the soil gas survey was conducted in 1987. This means that the original reservoir pressures had been greatly reduced (from 1038 psi to 300 psi) in the southern area and the light gases that did reach the surface in this area were very low magnitude. In contrast, the wells in the central part of the field were completed during 1985 and 1986. Compare the soil gas magnitudes (Figure 6B) in the southern portion of the field with those in the central part of SW Stockholm Field where the wells had been producing a much shorter period of time. The low ethane magnitudes observed over the north part of the field are discussed in the following section. K682 K684 K683 18 0 1000 2000 Scale - Feet Figure 6 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 8 B. SW Stockholm Field Width of Incised Valley A. Contour Map of Ethane Concentrations (ppb) K387 K385 24 15S42W 15S43W 15S41W K419 21 21 20 19 K440 K443 K442 K441 K445 K444 1760 FT K44 K446 Width of Productive Fairway in Relation to Sample Density of a Reconnaissance Survey 2460 FT 25 K465 30 K470 K469 K468 K467 K466 29 K471 28 30 25 30 29 28 32 33 As discussed in the previous section, low soil gas magnitudes were observed over the north part of SW Stockholm Field, however, this was not due to depleted reservoir pressures. The wells in this part of the field were completed in 1987 and 1988 (Figure 6A) which was during and after the time the soil gas survey was conducted. Figure 7 illustrates one way that a reconnaissance survey, with widely spaced soil gas sites, can fail to detect gas microseepage from a subsurface petroleum accumulation. The width of the incised Morrow valley at the extreme north end of SW Stockholm Field is only about 2000 feet (0.38 miles) wide compared to 6500 feet (1.23 miles) wide in the central part of the field. The spacing between the soil gas sites in this area is 1760 feet in an east-west direction and 2640 feet apart in north-south directions. Additionally, the orientation of the north end of the field is northwest-southeast which caused the field to transect the survey grid at the point of widest spacing between sample sites. 30 K492 K496 K495 K494 K493 K497 K498 2000 FT WIDE K49 K490 ETHANE CONCENTRATIONS (ppb) K518 36 K520 K519 K521 31 K523 K522 32 K524 33 K541 31 36 31> 30 31 25 - 30 20 - 25 15 - 20 < 15 LEGEND K544 K543 K545 K546 K547 K549 K548 K550 K55 Soil Gas Site Location K542 5 K574 K574A 2 K575 K595 K596 K597 K576 5 K580 K578 K577 1 6 2 K572 K573 K594 K598 K599 K600 6 1 Because of both the width and the orientation of the north end of SW Stockholm Field, compared to the sample spacing of the reconnaissance soil gas survey, there were only low to moderate soil gas concentrations detected at sample sites over the field in the north area. These same circumstances also occurred at Second Wind Field to the southwest of SW Stockholm Field. K603 K602 K601 6500 FT WIDE 8 8 K625 K626 11 K627 K647 K648 K649 K629 K628 12 K630 K631 7 11 12 14 13 7 K624 K650 K651 K652 K653 K655 K654 17 K680 13 K681 K677 K682 K684 K683 18 0 1000 Scale - Feet 2000 16S42W 14 16S43W K679 16S41W K678 16S42W 16S43W 17 16S41W K646 K676 20 K438 K491 K623 K418 K417 K416 19 19 K489 K571 K415 24 K414 19 K437 K517 K39 K394 15S42W 15S42W 15S43W 15S41W K413 K439 K464 K389 K393 K392 K386 15S42W K412 K388 K391 K391A K390 18 0 1000 2000 Scale - Feet Figure 7 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 9 Delineation of Morrow Gas Fairways B. Frontera Oil Field (1987) and W. Stockholm Gas Field (1979) 7 12 1 6 8 9 10 11 12 7 17 16 15 13 18 14 1 6 12 7 13 18 5 4 3 8 9 10 17 16 15 FUNK FRONTERA OIL FIELD 23 24 19 29 28 27 26 25 30 33 34 35 36 31 2 1 21 25 30 29 28 27 36 31 32 33 34 14S42W 14S41W 32 20 5 4 3 4 5 6 1 6 9 20 21 15 20 Figure 8C shows a contour map of the ethane soil gas magnitudes over the field area. The anomalous ethane microseeps very clearly defined the limits of the subsurface gas accumulation. Although this is not very significant production, it is interesting to note that the 1987 reconnaissance soil gas survey (designed for Morrow oil exploration) also clearly detected gas microseepage from this structural accumulation, even eight years after production had commenced. It is intriguing to postulate that if TXO had conducted this reconnaissance soil gas survey in 1979, not only would they have detected the W Stockholm gas field, but, also would have had an indication of Morrow oil potential (from the Stateline Trend soil gas anomalies) a full eight years before actual discovery and development of SW Stockholm Field. 29 30 3 DISCOVERY WELLS MORROW OIL 1987 MORROW GAS 1979 12 7 13 18 24 19 9 8 10 7 12 C. Ethane Concentrations (ppb) Contour Map K285 K286 STOCKHOLM WEST 14 19 13 18 24 19 16 17 K278 15 K279 K281 K280 K284 K282 K287 K283 This example illustrates two important points: (1) The spacing of the soil gas survey was considered a reconnaissance grid for targeting Morrow oil fairways, however, in a gas fairway with 640-acre gas units, this particular spacing would be considered a detail grid. (2) There is no direct relationship between the magnitude of a surface seep and the resultant volumetric hydrocarbon production or economics of a corresponding well or field. Compare the soil gas anomaly over W Stockholm Field to the soil gas anomaly over Fronterra Field one mile to the west. Both soil gas anomalies exhibit similar ethane magnitudes and areal extent (Figure 8C), however, the resultant hydrocarbon production from the two subsurface reservoirs is very different. W. Stockholm Field has a cumulative production of only 283 MMCFG and is a depleted field. The average per well gas recovery was only 71 MMCFG. Fronterra Field, on the other hand, has a cumulative production of 3.7 MMBO. To date, the average per well oil recovery is 107,000 BO. Secondary recovery efforts are still underway at Fronterra Field. 28 29 30 15S43W 25 15 14 6 7 12 18 13 K330 K332 K331 K333 K336 K337 K338 K339 K334 K357 5 2 1 6 5 11 12 7 8 K358 13 K359 18 K362 18 13 K361 8 K387 K381 K382 K383 K384 K385 K363 K364 17 K390 K391 K391A K360 K388 K389 K386 17 14 13 18 17 09 K433 61 K410 K434 K462 K411 K412 24 K435 K436 K463 25 19 K437 K464 K415 K438 K465 K439 25 K466 K440 K441 K467 30 K442 Critique of Soil Gas Survey K417 K416 19 K413 24 K414 15S42W 16 11 1 K312 8 K311 K310 7 K309 34 6 2 16S42W 7 10 33 16S42W 9 3 12 27 31 16S43W 4 36 16S41W 5 35 32 31 36 34 K308 K335 STOCKHOLM 33 7 30 K329 32 K307 COLORADO KANSAS 25 K306 12 K305 15S41W 26 04 15S43W 27 22 15S42W 28 D EN TR 29 21 20 15S42W 23 15S42W 22 15S41W NE LI TE 16 11 A ST 17 10 24 30 FRONTERA 8 18 25 25 14S43W 14S42W ARAPAHOE 19 13 22 19 24 24 15S42W 22 18 KANSAS 21 COLORADO 20 13 TXO completed the discovery well for the field in April 1979. The Morrow gas reservoir was encountered at 5042 feet with 16 feet of net pay. The four-well gas field was developed on 640-acre spacing (Figure 8B). It appears that four dry holes were also drilled to delineate the limits of the field. Cumulative production, since 1979, from the four wells in this field has only been 283 MMCFG. The last reported production was in 1998. This gas field, considering the marginal cumulative gas production over a 21-year period and the eight wells drilled to define the field, would be considered as a non-commercial venture by most oil company economic guidelines. 15S42W 2 15S41W 3 17 15S43W 4 COLORADO KANSAS A. Location Map 5 W. STOCKHOLM GAS FIELD 7 12 About a decade before the discovery and development of the Morrow Stateline Trend, TXO had conducted an exploration effort which targeted Morrow gas on low-relief Morrow structures in the general vicinity of the Las Animas Arch. One of the subsequent TXO Morrow gas discoveries in 1979 was the W. Stockholm (Morrow) gas field shown in Figures 3A and 8A. 8 20 K443 K K469 K468 29 30 ULTIMATE RESERVES FRONTERA FIELD 6,200,000 BO W. STOCKHOLM FIELD 283 MMCFG K494 K495 K4 Figure 8 How to Design an Exploration Surface Soil Gas Geochemical Survey As early as 1987, the soil gas survey accurately defined the general areal extent of the productive Morrow incised valley fairway, as would be confirmed by development drilling three years later in 1990. It can also be discerned that, at the particular sample density, the soil gas data could not have been used to determine 80-acre drilling sites. Additionally, because of the selected sample density, the very narrow portions of the incised valley (north part SW Stockholm and Second Wing) were not readily discernable. Therefore, the selected sample density was at the minimum threshold required to provide useful exploration information. The soil gas survey also appears to have detected microseepage from the Morrow gas and Mississippian oil fields in the area. Page 10 DETAILED SOIL GAS SURVEYS OVER THE SOUTH STATELINE OIL TREND 432 433 429 434 367 370 368 369 336 339 410 337 338 340 397 412 411 414A 415 416 413 413A 31 414 32 CHEYENNE CO KIOWA CO 345 346 344 435 436 438 437 323 5 419 418 417 420 421 422 371 372 356 578 570 579 398 401 NORTH STATELINE SURVEY 400 18 156 152 598 141 142 143 596 24 FRONTERA 19 286 288 Wallace Co. 291 594 595 285 295 562 287 672 673 683 138 139 137 140 MT. SUNF STOCKHOLM SOUTHWEST 313 311 312 167 166 172 12 165 164 171 170 168 126 122 123 555 281 278 279 274 275 8 9 302 173 169 303 174 175 Surface Soil Gas Geochemistry 271 270 119 120 272 269 118 121 265 268 13 18 17 16 19 20 21 29 28 32 33 A Denver-based independent oil company decided to explore for Morrow oil in the Stateline Trend on a regional level and attempt to increase the drilling success rate by using surface soil gas geochemistry. The company first purchased a reconnaissance soil gas data set in the north part of the trend and later conducted a new detailed soil gas survey in the south area as shown in Figure 9A. At the time of the new survey (April 1992), the development drilling had been completed at Second Wind field and there were only three development wells at Moore-Johnson field in the south. The two combined soil gas surveys provided soil gas microseep data consisting of 1817 samples covering a total area in the Morrow Trend of 203 square miles. 648 682 20 301 304 256 257 260 261 264 255 258 259 262 263 116 115 104 103 099 100 112 113 114 112A 113A 114A 105 102 098 101 147 266 267 136 23 280 7 649 660 117 277 125 124 556 564 146 290 309 308 135 284 24 134 282 283 129 130 111 30 25 29 273 128 276 131 Greeley Co. 244 248 255 109 254 251 247 250 239 242 243 246 108 253 252 248 249 240 241 244 245 092 093 094 095 096 097 082 081 091 090 089 088 087 086 083 080 132 26 084 247 110 107 133 106 245 246 249 254 250 253 274 275 257 256 251 243 242 241 238 239 240 258 263 271 268 238 235 234 231 262 270 269 237 236 233 232 236 SIDNEY 184 164 181 183 182 155 150 151 1 160 153 154 252 152 126 259 237 36 123 231 229 230 180 179 149 148 147 122 177 176 178 142 143 145 120 282 283 157 175 174 140 144 146 141 121 119 158 173 091 285 172 006 188 009 008 184 012 011 187 138 169 139 086 087 185 181 136 135 137 168 166 171 167 170 SJ10 SJ11 039 117 084 001 082 003 318 183 035 13 013 010 015 014 SJ16 SJ13 SJ14 SJ12 SJ03 SJ06 043043A 228 229 072 227 230 219 222 223 226 309 068 072 075 036 016 017 SJ04 SJ05 SJ01 066 070 064 5 4 003 217 216 213 212 209 208 061 060 005A 218 215 214 211 210 207 062 063 206 059 058 056 057 208 204 205 205 210 209 207 206 054 055 214 213 202 201 052 051 048 047 013A 215 212 203 200 053 050 049 046 014A 014 219 216 199 196 201 200 197 506 289 306 009 009A 288 298 299 012 012A 011A 322 070 211 006 006A 010 010A 071 290 305 008 050 321 067 069 225 007 12 053 224 221 323 015 8 7 9 129 066 016 065 204 511 507 510 508 509 512 601 602 203 073 064 074 063 032 031 061 062 055 100 030 056 054 017A 017 218 217 199 198 505 020020A 226 225 194 193 190 191 194 195 501 504 023 021 021A 227 224 195 192 189 192 193 196 502 503 514 513 223 220 191 188 038 041 042 045 522 521 517 518 222 221 190 189 039 040 043 044 202 18 13 14 197 198 018 019 095 131 17 16 097 20 099 098 132 133 134 060 057 059 058 111 110 108 109 033 029 028 113 114 027 R 41 W R 42 W 30 025 101101A 103 102 24 112 107 105 106 018 26 25 032 026 031 030 534 531 619 533 30 532 620 638 637 636 633 29 JACE MOORE-JOHNSON 019 104 029 631 709 630 629 519 20 19 R 42 W 25 024 026 23 SOUTH STATELINE SURVEY 022A 022 R 43 W 19 KIOWA CO GREELEY CO 096 24 027 023 520 516 515 21 022 607 608 604 603 606 033 610 609 605 618 615 527 530 614 611 523 526 621 617 29 616 528 529 613 524 525 635 704 703 702 028 025 622 024 021 020 28 612 724 726 727 38:27: 543 544 -101:57:30 699 700 701 725 729 728 545 546 627 718 719 720 733 730 731 640 639 626 721 734 710 732 641 642 548 547 549 550 634 Area of Moore-Johnson Field 628 623 624 723 722 535 536 537 538 705 706 553 552 542 541 540 539 708 707 554 551 625 645 644 646 643 Figure 9 How to Design an Exploration Surface Soil Gas Geochemical Survey The detailed soil gas survey in the south part of the trend, consisting of 1034 sites, was conducted over a very large area (53 square miles) from just southeast of Second Wind field in Cheyenne County, Colorado to two miles south and five miles southeast of Moore-Johnson field in Greeley County, Kansas (Figures 9A and 9B). 287 013 093 SJ02 130 SJ08 065 004 308 310 049 049A 220 001 094 037 067 071 6 307 044 044A 303 069 068 315 042 304 301 17 18 SJ07 31 073 075 1 314 045 312 079 078 092 076 034 074 034 002 041A 046 051 302 11 182 319 052A 052 080 035 292 311 316 002 005 048 320 SJ09 264 267 277 313 115 115A 004 317 081 077 SJ15 266 T 18 S 047 116 294 118 036 040A 280 293 085 083 090 2 296 286 8 7 265 276 279 291 090A 295 300 12 007 186 272 037A 037 038 297 284 128 159 261 273 278 281 089 127 156 260 T 17 S 124 088 162 161 232 228 5 6 187 163 233 125 COLORADO KANSAS 165 185 077 076 235 35 186 078 079 32 31 36 30 25 234 085 Detailed soil gas surveys typically are conducted over a large area with a much denser spacing between soil gas sample sites than in a reconnaissance survey. The soil gas samples in a detailed survey may either be collected as infill in an area with previous sampling collected on a reconnaissance grid spacing or they may be collected in a new area with no previous sampling. Soil gas data collected years apart in the same area have been documented to be fully compatible with one another (Jones et al., 1985, Dickinson and Matthews, 1993). The example discussed in this case was conducted over the southern portion of the Morrow Stateline Trend in 1992. 650 659 14 127 687 686 684 310 651 297 557 563 145 289 685 298 658 582 148 674 292 593 678 306 307 652 657 294 558 153 675 144 597 4 653 299 559 293 296 150 676 677 160 561 583 584 154 157 STOCKHOLM WEST 585 599 656 163 17 149 151 5 589 588 587 586 155 6 654 300 566 560 158 404 405 399 689 688 13 717 655 11161 162 565 716 698 385 680 376 567 568 159 403 402 697 690 691 384 381 679 180 681 375 574 581 580 382 575 430 335 332 328 379 380 377 592 374 305 387 1 590 362 661 390 316 378 591 363 365 693 361 360 663 366 576 577 355 354 647 431 331 692 33 32 31 314 2 671 8 695 694 T 17 S 349 357 569 424 334 333 329 T 16 S 389 348 358 36 664 670 669 668 7 330 383 347 359 425 426 711 600 12 391 386 326 364 ARAPAHOE 327 315 394 325 662 665 666 667 318 393 388 350 571 423 428 427 440 696 319 392 322 351 317 572 573 715 714 439 712 -101:57:30 38:37: 176 321 177 320 35 352 353 713 178 179 342 6 1 395 324 341 343 396 R 43 W 407 R 42 W 406 409 GREELEY CO R 42 W R 41 W 36 FUNK 408 Realizing the limitations of the northern reconnaissance survey spacing (11 sites per section), this company increased the basic sample density in the southern survey to 16 sites per section (40-acre spacing). In addition as shown in Figure 9B, the company already had several prospects in the survey area and elected to increase the sample density in these areas over the standard spacing of 16 sites per section. The high-density soil gas survey in the vicinity of Moore-Johnson field (Figure 9B) consisted of 106 sample sites over a four square mile area (24acre spacing). It is this area which will be the focus of this paper. The purpose of the regional detailed soil gas survey was threefold: (1) calibration of the soil gas survey to the production at Moore-Johnson field, (2) to aid in further exploitation and development drilling at Moore-Johnson field, and (3) to determine other areas along trend that exhibited similar anomalous soil gas microseepage and therefore would have Morrow exploration potential. Page 11 Colorado Kansas Smokey Hill Cheyenne County 5 Bledsoe Ranch Wildfire Harker Ranch "ST AMOCO LAWSON #1 02/90 ATE Sianna Castle Peak Discovery of Moore-Johnson Field and Early Development Drilling in 1990 KANSAS Speaker COLORADO Sherman County Wallace County Lookout ET LIN Arapahoe ND RE Mt. Pearl Sorrento Field " Frontera Mount Sunflower Arrowhead Stockholm SW Second Wind 1 2 Greeley County Sidney Cheyenne County Kiowa County The Amoco combined geological and seismic conceptual model was that of a northwestsoutheast oriented Morrow sand body (Figure 10B). The location for the discovery well was determined by identification of the basal upper Morrow fluvial incised valley on 2-D seismic lines supplemented by data from available well control (Adams, 1990). By May 1990, Amoco had extended the field to include three wells (Figure 10C). The Brewer #1 and Brewer #2 flowed at rates of 670 and 350 BOPD, respectively. In the first four months, the Moore-Johnson #1 produced 30,000 BO. Jace nty Moore-Johnson Salt Lake/Haswell 0 McClave 0 10 20 30 12 0 Greeley Co., Kansas 5 JACE FIELD 10 10 10 8AMOCO KELLER #1 11/90 36 AMOCO BREWER #3 06/90 17S43W 18S43W Kiowa Co., Colorado 6 km 35 17S41W 18S41W 1 mi 0 AMOCO BREWER 2 05/90 AMOCO KELLER #2 11/90 2 8 Discovery Well 30 17 12 18S41W 18S43W 17 14 AMOCO LINN 1 10/90 13 AMOCO MO-JO 1 07/89 AMOCO MO-JO 2 09/90 30 18 0 1000 This was a very significant Morrow discovery in that it extended Morrow production for a distance of 10 miles to the south from Second Wind field of the Stateline Trend. Amoco attempts at further development drilling was another story, however. As shown in Figure 10C, attempts to extend the field to the south by Amoco in 1990 resulted in three dry holes (Moore-Johnson #2, Linn #1, Sell #1). Two successful Morrow development wells were completed by Amoco to the northwest of the discovery well in March and May of 1990 (Brewer #1, Brewer #2). Attempts by Amoco to extend the field farther to the northwest resulted in three more dry holes (Keller #1, Keller #2, Brewer #3). Amoco also drilled another dry hole to the northeast in February 1990 with the Lawson #1. AMOCO BREWER 1 03/90 11 13 12 11 1 20 7 Moore-Johnson field in Greeley Co., Kansas was discovered by Amoco in October 1989 (Adams, 1990). At the time of the discovery, the Stateline Trend had been developed to the extent shown in (Figure 10A). The Amoco Moore-Johnson #1 was the discovery well for the field and was completed for 522 BOPD (Figures 10B and 10C). The well was completed in the sands of the V-7 valley fill sequence of the Morrow Formation. This equivalent interval in the Morrow Formation was initially named the Stockholm Sand during development of SW Stockholm field to the north. The sequence stratigraphy of the Morrow in relation to reservoir geology in the vicinity of Moore-Johnson field has been more recently discussed by Bowen and Weimer (1997, 2003). 14 AMOCO 13 SELL 1 03/90 The overall success rate, at the end of 1990, for development drilling in the MooreJohnson field area was a disappointing 33%. This was considerably below previous industry standards in the Morrow Trend. Success rates for development of Frontera, SW Stockholm and Second Wind fields of the Stateline Trend were 73%, 68%, and 56%, respectively. There was no further drilling in the field area during all of 1991. As will be shown later in the paper, had Amoco used soil gas geochemistry, in conjunction to seismic and subsurface geology, the six dry holes could have been avoided. 2000 Scale - Feet Figure 10 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 12 230 39 5 121 283 282 41 63 KANSAS COLORADO 5 41 KANSAS COLORADO 124 58 42 65 119 71 279 277 37 47 75 75 87 090 090A 46 148 285 295 121 26 2 59 AMOCO #1 AMOCO BREWER #3 083 080 88 97 83 115 AMOCO KELLER #2 AMOCO 077 2 BREWER 49 078 079 61 42 215 65 40 311 309 47 26 48 001 002 005 082113 36 217 003 124 319 312 76 29 081 59 88 318 200 083 080 88 97 048 113 11 303 76 70 61 42 215 050 108 12 053 071 38 78 321 304 106 99 076 54 049A 83 203 302 078 310 049 96 079 044 83 046 103 051 052A 052 77 115 301 36 83 069 068 067 65 30 48 070 30 093 35 35 AMOCO MO-JO 1 17 129 76 072 95 17 075 18S41W 18S43W 22 072 76 77 95 075 066 34 77 094 22 130 073 074 73 52 063 47 40 AMOCO LINN 1 129 066 34 AMOCO MO-JO 2 094 1000 042 35 045 115A 143 20 316 19 093 0 65 004 197 49 48 36 75 077 30 314 317 78 067 65 313 80 053 068 043 58 300 092 AMOCO 076 BREWER 1 069 36 047 115 118 320 092 095 27 83 101 12 11 116 43 197 049 96 117 84 51 052A 59 34 084 051 1 292 42 51 KELLER 041A 44 23 294 8 046 103 94 280 296 095 13 14AMOCO SELL 1 18S41W 18S43W 084 048 113 040A 42 45 286 75 039 293 087 128 081 037 69 110 291 085 8 036 62 037A 62 71 53 002 113 161 297 127 109 276 50 284 47 1 278 038 089 091 2 281 135 088 123 124 76 130 073 074 52 063 73 47 40 13 14 061 061 57 57 2000 Scale - Feet 0 1000 Soil Gas Calibration Survey and Detailed Survey in Moore-Johnson Field Area A soil gas calibration survey was first conducted over the three-well field and in the area of the 6 dry holes in April 1992 (Figure 11A). Because the field was being developed in 40acre units, a sample density of 16 sites per section was selected. An ethane magnitude contour map of the soil gas data in the calibration area is shown in Figure 11A. As shown on the ethane magnitude contour map, low ethane magnitudes were observed in areas where the dry holes were drilled and the anomalous ethane values corresponded to the area of the three Morrow oil wells. There was no problem with reservoir pressure depletion at the time of the survey because of the limited production at that time. The soil gas contour map for the calibration survey also indicated other areas of anomalous microseepage to the east and northeast of the three productive wells. The more detailed soil gas survey was extended into those areas to aid in further development drilling at Moore-Johnson field. The initial sample grid of 16 sample sites per section was increased with infill soil gas sites as shown in Figure 11B. A total of 106 soil gas sites were sampled within the map area. The infill sample data significantly increased the detail of the microseepage anomaly pattern from that of the original calibration survey, as evidenced by comparing the two contour maps. Ethane magnitudes ranged from 22 ppb to 205 ppb within this area. The ethane magnitude contour map indicated anomalous microseepage over the Axem Resources and Murfin Drilling (Axem/Murfin) lease block in sections 2, 11, and 14. The surface soil gas geochemical data was next integrated with the combined subsurface geology and seismic interpretations. 2000 Scale - Feet AXEM/MURFIN LEASES ETHANE CONCENTRATIONS (ppb) > 125 110 - 125 90 - 110 75 - 90 65 - 75 < 65 Figure 11 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 13 AMOCO LAWSON #1 TD 5350 5 121 58 127 53 REGIONAL DIP 087 42 Proposed Location Axem/Murfin Coyote #1 18S41W 18S43W AMOCO LINN 1 TD 5300 0 1000 320 19 316 47 002 082113 36 005 217 003 124 319 76 11 076 215 069 65 12 071 38 321 83 304 106 068 30 050 108 053 78 067 48 070 30 093 35 17 129 76 072 95 075 34 066 77 094 22 A AMOCO SELL 1 TD 5300 095 27 13 130 73 073 52 074 47 063 40 13 14 061 57 0 2000 1000 2000 Scale - Feet Scale - Feet (ppb) Limits of Incised Valley Morrow B Sand Productive Morrow B Sand Thin, Oil Show Limits of Morrow Sands Morrow A Sand Productive Axem/Murfin Leases How to Design an Exploration Surface Soil Gas Geochemical Survey > 125 110 - 125 90 - 110 75 - 90 65 - 75 < 65 -1500 During the first half of 1992, Axem/Murfin integrated the combined subsurface geology and seismic interpretation with the surface soil gas data. The conceptual model for the Morrow trend, derived from the all the development of the northern Stateline Trend fields, was that the Morrow section (base of Atoka to top Morrow Limestone) was observed to thicken in the areas of maximum Morrow sand development and productive wells. In contrast, the Morrow section was much thinner, with nondeposition of Morrow sands, on the east and west flanks of the Morrow fields. This was the Axem/ Murfin conceptual model at the Moore-Johnson area interpreted from the available well control and seismic data. The well control available at that time is shown in Figure 12A. Subsurface data from the 10 Amoco wells in the area and seismic interpretation provided the Axem/ Murfin concept of the Morrow incised valley boundaries, regional dip, and general axis of the depocenter of the Morrow valley as indicated on Figure 12A. Amoco had established production from 2 different Morrow sands (named “A sand” and “B sand”) in their three wells. The Morrow completion zones in the three wells are as indicated on Figure 12A. Additionally, the Morrow “B sand” was encountered in three other Amoco wells with oil shows, however, the porosity/permeability and thickness of the sand precluded completion attempts in those wells. The Morrow sands were not present in the other four Amoco wells. The expected areal distribution of Morrow sands was interpreted as shown on the map. Axem/Murfin had interpreted the Morrow sands to be oriented north-south in the area as opposed to the previous Amoco concept of a northwest-southeast alignment. In the new interpretation, the Amoco productive wells were interpreted to be at the west, updip limits of a Morrow stratigraphic trap (Figures 12A and 12C). The interpretation of the soil gas survey data is shown on Figure 12B. The ethane magnitude contour map indicated that the maximum gas microseeps were observed in the central portion of the expected Morrow incised valley and within the expected Morrow sand fairway (Figures 12A and 12B). The geochemical, geological, and geophysical data were all compatible with the conceptual model for a Morrow stratigraphic trap. ETHANE CONCENTRATIONS LEGEND TD 5305 Integration of Subsurface Geology, Seismic, and Surface Soil Gas Geochemistry 310 54 049A 83 203 079 42 TD 5350 044 83 303 70 302 76 MISSISSIPPIAN -1400 309 48 049 MORROW LM -1300 042 35 312 29 301 99 092 36 65 046 103 051 96 ATOKA -1100 -1200 314 65 045 40 048 113 AMOCO LAWSON #1 043 311 26 078 61 077 49 AMOCO MO-JO 1 TD 5290 14 004 197 AMOCO BREWER #1 TOP MORROW 1 292 59 047 58 115 115A 143 20 052A 052 77 115 080 97 12 AXIS OF THICK MORROW SECTION 11 AMOCO MO-JO 2 TD 5300 A 318 200 18S41W 18S43W 17 081 59 083 88 AMOCO BREWER 1 TD 5330 Discovery Well 001 88 084 51 AMOCO BREWER #3 TD 5300 AMOCO KELLER #2 TD 5290 317 75 041A 44 313 36 294 197 118 101 300 80 040A 94 116 83 -1000 DATUM A’ SOIL GAS ANOMALIES 277 87 280 23 293 45 2 296 84 128 75 8 KELLER #1 TD 5360 039 42 117 43 286 34 085 109 8AMOCO AMOCO BREWER 2 TD 5250 295 26 037 69 110 A A’ 036 62 037A 279 75 090 090A 46 148 285 121 276 161 278 50 291 75 297 47 123 124 038 62 089 71 284 37 119 71 1 281 135 088 65 091 47 2 230 76 42 282 63 283 41 KANSAS 124 41 COLORADO 5 A’ KANSAS COLORADO 39 Figure 12 The Axem/Murfin acreage position was excellent. A location was staked for the Axem/Murfin Coyote #1 in section 2. The well was spudded July, 25, 1992 Page 14 39 WITT A-1 AXEM BOBCAT 2-2 AMOCO LAWSON #1 5 AXEM BOBCAT 2-2 121 58 2 WITT B-1 119 71 1 AXEM COYOTE 2 285 121 087 42 WENDLEBURG 2-11 8 084 51 WENDLEBURG 3-11 BREWER 2 081 59 318 200 KELLER #1 BREWER 3 BREWER 1 AXEM WENDLEBURG 1-11 12 320 19 HUDDLESTON 33-11 KELLER #2 077 49 BREWER 2 YATES WILLIAM #1 BREWER 1 005 217 003 124 11 076 215 069 65 65 314 65 042 35 045 40 048 113 312 29 310 54 049A 83 203 321 83 067 48 MO-JO 1 17 129 76 AXEM MO-JO 3 LINN 1 14 SELL 1 095 13 18S41W 18S43W 18S41W 18S43W DUNCAN ENER. ABEL #1 075 34 SELL #13-3 130 73 073 52 074 47 0 2000 1000 In November 1992, Axem/Murfin completed two Morrow wells with the Wendleburg #1-11 and Blackbird #1 wells. The Wendleburg #1-11 location was supported by a strong soil gas anomaly. 5 In December 1992, HGB Oil completed the Brewer #1 as a Morrow oil well. This location had been proven by the preceding surrounding wells to the west, east, and south. 6 HGB Oil, Yates, and Duncan Energy each drilled a Morrow dry hole in Colorado attempting to extend field production updip and to the west. There were now five dry holes in Colorado to the west of the field. All five well locations are in areas of low magnitude soil gas data. 13 14 57 1000 4 063 40 061 0 Duncan Energy completed two direct offsets in October and November to the Amoco Brewer #1 and #2 producing Morrow wells. These two wells were only 1500-foot offset locations. 066 77 094 22 AXEM MO-JO 4 MO-JO 2 072 95 3 070 30 093 35 17 In August 1992, Axem/Murfin drilled their first well and completed the Coyote # 1 as a Morrow oil well (Figures 13A and 13B). This was a very significant well in that it was a 4700-foot step-out extension for Moore-Johnson field. The well location was supported by a strong soil gas anomaly. The well confirmed the conceptual model established by integrating geochemistry with geology and geophysics. 071 38 304 106 068 30 2 12 053 78 079 42 In April and May 1992, MW Pet. drilled two Morrow dry holes with the Brewer #24-2 and Sell #13-31 wells. Both wells were 4000-foot step-outs. Both well locations are in areas of background soil gas concentrations. No further wells were drilled by this company in this area 050 108 049 303 70 302 76 1 044 83 046 103 051 96 Eleven wells were drilled in 1992 by 5 oil companies (Figure 13A). Only Axem/Murfin used the integrated approach of soil gas geochemistry with geology and seismic to select well locations. The locations of the wells drilled in 1992 are shown on Figure 13A. An ethane magnitude contour map (Figure 13B) illustrates the geochemical basis of Axem/Murfin decisions in selecting well sites. The following is the order in which the 1992 wells were drilled: 309 48 311 26 319 76 078 61 043 313 36 301 99 092 36 HUDDLESTON 34-11 002 082113 36 052A 052 77 115 080 97 083 88 11 001 88 316 47 1 292 59 047 58 115 115A 143 20 1992 DRILLING - MOORE-JOHNSON FIELD 041A 44 280 23 294 197 004 197 277 87 040A 94 116 83 118 101 317 75 300 80 037 69 110 039 42 117 43 128 75 BREWER 24-2 2 036 62 037A 279 75 293 45 296 84 286 34 085 109 8 295 26 127 53 AXEM BLACKBIRD #1 AXEM COYOTE 1 HGB OIL MILLER #1 090 090A 46 148 276 161 278 50 291 75 297 47 123 124 038 62 089 71 091 47 AXEM BOBCAT 1-2 WITT A-2 281 135 088 65 284 37 230 76 42 282 63 283 41 KANSAS 5 KANSAS COLORADO 124 41 COLORADO LANG 34-35 2000 Scale - Feet Scale - Feet LEGEND Previous Wells 1993-94 Completions OIL WELL OIL/GAS WELL DRY HOLE DRY HOLE 1989 - 1990 1992 1993 1994 ETHANE CONCENTRATIONS By the end of 1992, Moore-Johnson field had produced 512,714 BO. (ppb) > 125 110 - 125 90 - 110 75 - 90 65 - 75 < 65 Figure 13 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 15 1993 and 1994 DRILLING - MOORE-JOHNSON FIELD The locations of all the wells previously drilled through 1992 are shown on Figure 13A. An ethane magnitude contour map (Figure 7B) illustrates the basis of Axem/Murfin decisions in selecting well sites. The following are the 1993 wells that were drilled: 1 Marathon completed the Wendleburg #2-11 as a Morrow oil well in February 1993. This well was a direct offset to the Axem/Murfin Wendleburg #1-11 drilled three months previously in November 1992. This was the only lease Marathon held in the field area. 2 HGB Oil drilled three Morrow oil completions from March through July 1993 (Witt #A2, Witt #B1, Brewer #2). The wells were on the updip, west side of the field. The Witt #B1 only produced 1745 BO and is considered to be a dry hole. 3 Axem/Murfin drilled three Morrow oil wells in the north area with the Bobcat #1-2, Coyote #2, and Wendleburg #3-11. The Bobcat and Wendleburg well locations were in areas of anomalous microseeps. 4 Axem/Murfin drilled two Morrow oil wells in the south area with the MoooreJohnson #3 and Moore-Johnson #4 wells. The Moore-Johnson #3 well was completed in August 1993 and was located in an area of anomalous ethane concentrations. By the end of 1993, Moore-Johnson field contained 17 Morrow oil wells and extended for 11,000 feet in a north-south direction and 3000 feet in width. Axem/Murfin had completed seven successful Morrow wells without a dry hole. At the end of 1993, cumulative production at the field was 780,549 BO. How to Design an Exploration Surface Soil Gas Geochemical Survey In 1994, four wells were drilled by three oil companies in the north area of the field. The following are the 1994 wells that were drilled: 5 HGB Oil drilled the Witt #A1 as a Morrow oil well in January 1994. The well location was on trend and 1500 feet from their Witt #A2 completion 6 months earlier. 6 Axem/Murfin drilled their first dry hole in the Bobcat #2-2 in January 1994. A 700foot offset to the southwest, however, resulted in a Morrow oil completion. The Bobcat lease, to date, has produced a total cumulative of 170,646 BO from two wells. 7 Duncan Energy completed a marginal Morrow well with the Lang #34-35 in March 1994. After only producing 477 BO, the well was converted to an injection well. Moore-Johnson field was fully defined by 34 wells. The major extension of the field only took 24 months. This is one of the shortest development periods for a comparative size field in the whole Morrow trend. By the end of 1994, the cumulative production from the 19 Morrow wells in MooreJohnson field was 980,152 BO. Page 16 BOBCAT 2-2 BOBCAT 1-2 WITT A-2 1 2 Atokan BOBCAT 2-2 Morrowan AMOCO LAWSON #1 Unnamed Rocks of Atokah Age ? Thirteen Fingers Limestone Morrow Fm. WITT A-1 Pennsylvanian 5 A’ KANSAS COLORADO LANG 34-35 Upper COYOTE 2 BREWER 24-2 WENDLEBURG 2-11 8 MILLER #1 WENDLEBURG 3-11 BREWER 2 KELLER #1 BREWER 1 BREWER 3 Chester Group V1 V7d V7c V7b V7a V3 V7 V11 Morrow Limestone 12 11 KELLER #2 BREWER 1 17 Reservoir: Lithology: Type Trap: A MO-JO 3 MO-JO 4 18S41W 18S43W MO-JO 2 ABEL #1 LINN 1 0 1000 LINN 1 LIMITS OF V7 INCISED VALLEY-FILL 14 SELL 1 13 SELL #13-3 2000 Scale - Feet Limits and Dimensions of Morrow V7 Sands Areal Extent Width Thickness Morrow Well Completion Zones V7d 0 - 30 ft. 1800 - 2700 ft. V7d V7c 0 - 18 ft. 1300 - 2300 ft. V7c V7b 0 - 24 ft. 2300 - 3200 ft. V7b Figure 14 How to Design an Exploration Surface Soil Gas Geochemical Survey V3 INCISED VALLEY -1200 FLOODING SURFACE V7c Discovery: Depth: Spacing: Field Size: Avg. Net Pay: Porosity: Permeability: Water Sat.: Pressure: Reserv. Drive: GOR: Cum. Prod: Ultimate Prod.: MORROW SH V7 INCISED VALLEY V7b V7d MORROW LM -1300 TD 5300 10/92 TD 5205 11/92 MISSISSIPPIAN ST. GENEVIEVE LM TD 5294 12/93 TD 5350 2/90 -1500 Subsurface Geology and Reservoir Performance Moore-Johnson Field Parameters (Revised after Adams, 1990) MO-JO 1 V1 INCISED VALLEY TD 5350 3/90 Table 1 HUDDLESTON 34-11 ATOKA FM ST. LOUIS LM Warsaw Fm. Unnamed Rocks of Kinderhookian Age AMOCO LAWSON #1 SEC. 1 KB 3902 (EST) MURFIN DRLG. BLACKBIRD #1-1 SEC. 11 KB 3897 AXEM RES. WENDLEBURG #3-11 SEC. 11 KB 3907 -1100 Spergen Fm. Unnamed Rocks of Osagean Age MURFIN DRLG. WENDLEBURG #1-11 SEC. 11 KB 3918 TD 5270 11/92 St. Louis Fm. BREWER 2 WILLIAM #1 DUNCAN ENER. HUDDLESTON #33-11 SEC. 11 KB 3917 -1400 WENDLEBURG 1-11 HUDDLESTON 33-11 -1000 DATUM AMOCO BREWER #1 SEC. 11 KB 3898 Ste. Genevieve Fm. Kind. Mississippian COYOTE 1 Osagean BLACKBIRD #1 Meramecian Chesterian WITT B-1 A’ (Bowen & Weimer, 2003) V9 Lower A Morrow Nomenclature Morrow V7 Sandstone Stratigraphic/ structural Oct. 1989 5100-5200 ft. 40 ac. 1290 ac. 16 ft. 14 to 28% 22 to 9,990 md 13 to 47% 1040 psi Gas cap expansion/ solution gas drive 107:1 cu ft / bbl 1,729,000 BO 2,000,000 BO Moore-Johnson field (Figures 14A, 14B, and 14C) has been discussed by Adams (1990) and more recently by Bowen and Weimer (1997, 2003). These last two papers document the Morrow sequence stratigraphic framework throughout the trend and relate it to the subsurface geology, reservoir geometry, and reservoir performance at Moore-Johnson field. The reservoir sands at Moore-Johnson field were deposited as fluvial valley-fill deposits in a valley incised into the Morrow Limestone (Figure 14C). These Morrow sands have been correlated regionally to the Morrow V7 valley sequence (Figure 14B). The areal distribution of the three reservoir sands deposited within the incised valley is shown in Figure 14A. From oldest to youngest, the order of deposition was V7b, V7c, V7d valley fillsequences. Structural cross section A-A’ (Figure 14C) depicts the positions of the three valley-fill sequences with respect to depth. Regional dip is to the east-southeast. The various Morrow reservoirs were encountered at depths ranging from 5100 to 5150 feet. Initial reservoir pressure was 1040 psi. Other reservoir parameters are shown in Table 1. The three reservoir sand bodies are predominantly lateral to each other and are rarely incised into one another as is the case in the northern fields. Generally, the three sand bodies are completely encased in estuarine shales (Figure 14C). Porosities range from 14% to 28 % with permeabilities from 22 to 9,990 md (Adams, 1990). The GOR was 107:1 (cu ft/bbl). Other field parameters are listed in Table 1. Compared to the V7 valley fill reservoirs in northern fields, the reservoirs at Moore-Johnson are narrower in cross section (see legend, Figure 14A) and of smaller extent and more compartmentalized due to the dominant shale facies. Because of these conditions, oil columns are thinner and production values are somewhat lower, however, drainage efficiency is high (Bowen and Weimer, 2003). Recovery factors are variable due to, in some cases, problems with pressure maintenance. Oil volumes produced to date from individual wells range from 32,000 BO to over 230,000 BO. The field-wide average, to date, for the 19 wells is 91,000 BO per well. These per well averages are better than the average values at Castle Peak, Harker Ranch, SW Stockholm, and Jace fields reported by Bowen and Weimer (2003). Page 17 LANG 34-35 KANSAS COLORADO 5 250000 0.5 WITT A-1 LAWSON #1 BOBCAT 2-2 1500000 A. Annual Production Northern Leases D. Cumulative Production Moore-Johnson Field 200000 45.3 BOBCAT 2-2 85.3 1000000 LEGEND 83.3 43.3 CUM. BO x 1000 BO BOBCAT 1-2 WITT A-2 BO 150000 1 2 100000 500000 COYOTE 2 WITT B-1 54.6 1.7 > 200 BLACKBIRD #1 50000 COYOTE 1 80 - 90 0 40.8 0 1990 1991 1992 1993 1994 1995 BREWER 24-2 WENDLEBURG 2-11 WENDLEBURG 3-11 8 - 80 70 BREWER 2 32.0 6.5 50 - 60 BREWER 1 250000 12 220 229 18S41W 18S43W LINN 1 B. Annual Production Southern Leases 1990 220 14 SELL 1 1991 1992 1993 1994 1995 1996 1997 YR 250000 1998 1999 2000 2001 2002 2003 C. Annual Production Entire Field 200000 13 SELL #13-3 BO 1000 2000 Scale - Feet 100000 Amoco Axem Murfin 50000 Duncan Energy HGB Oil Marathon How to Design an Exploration Surface Soil Gas Geochemical Survey 0 1990 Figure 15 1992 1993 1994 1995 1996 1997 YR 1998 1999 2000 2001 2002 2003 Annual production for the northern leases (Witt, Bobcat, Coyote, Brewer, Wendleburg and Huddleston) is shown in Figure 15B. The peak in production from 1992 to 1995 reflects the addition of the new development wells. Annual production volumes for the MooreJohnson lease are shown on Figure 15C. The peak in production from 1994 to 1998 reflects the addition of the Axem/Murfin MooreJohnson #3 and #4 wells. Annual production volumes for the entire field are shown in Figure 15D. Total production for the field in 2002 was 45,000 BO. Since 1997, annual production volumes have been declining at a rate of about 15% per year. The field was unitized in 1995 for pressure maintenance by gas and water re-injection. Effects of secondary recovery operations in the north leases can be seen, beginning in 1998, in Figure 15B and for the south lease in 1999 on Figure 15C. Cumulative production for the field is shown on Figure 15E. The year to date total production for the field is 1,729,000 BO. Average per well production for the 19 wells in the field is 91,000 BO. Average per well production for the eight Axem/Murfin wells is 93,750 BO. 150000 0 1991 Production for Moore-Johnson field is reported by the Kansas Geological Survey (KGS). Cumulative production is reported by lease and not individual wells. To attempt to show variation in production in the individual wells, the lease production totals were divided by the appropriate number of wells in each lease. Figure 15A illustrates the variation in production among all the wells. Note the differences in cumulative production between the Witt “A” and Bobcat leases in the north part of the field. 0 MO-JO 4 1990 Oil Production at Moore-Johnson Field 50000 MO-JO 3 MO-JO 2 ABEL #1 2003 100000 76.0 MO-JO 1 17 2001 2002 HUDDLESTON 34-11 87.0 < 10 2000 150000 76.0 87.0 10 - 20 1999 BO BREWER 2 BREWER 1 1998 200000 WENDLEBURG 1-11 HUDDLESTON 33-11 20 - 30 YR 13.4 11 40 - 50 30 - 40 1997 32.4 25.5 BREWER 3 1996 1991 1992 1993 1994 1995 1996 1997 YR 1998 1999 2000 2001 2002 2003 The KGS reported seven wells still producing in 2003. Ultimate recoverable reserves for the field will be about 2,000,000 BO Page 18 Wallace Gove Logan DETAILED SOIL GAS SURVEYS OVER A GAS TREND BYERLY Wichita Scott A large detailed regional soil gas survey was conducted by a major oil company in the prolific Permian Chase Carbonate Gas Trend of the Hugoton Embayment of southwest Kansas. As shown in Figure 16, the seven-foot soil gas survey covers an area of about 210 square miles and consists of 923 soil gas sites. The soil gas survey was sampled on a box grid pattern with a one-half mile distance between samples. An average section (640 acres) contains nine soil gas sample sites. Because the established well spacing in this gas trend was 640-acres, this survey, based on sample density, would constitute a detailed soil gas survey. It is noteworthy to mention, at this point, that the previously discussed soil gas survey in the north part of the Morrow Sand Trend with 11 sites per section was considered a reconnaissance survey because the unit spacing in that trend for oil wells is 80-acres. Lane BR AD SHA W Greeley Kearney Stanton Grant Finney PA N OM A Hamilton TON Gray KANSAS GR EEN WO OD HU GO Haskell Stevens Morton Seward Meade B. Location Map, Regional Soil Gas Survey B1318 B1319 B1320 B1323 B1324 B1325 B1328 B1327 B1326 B1329 B1330 B1331 B0405 B0406 B0407 B0307 B0306 B0305 B0304 B0303 B0302 B1322 B1321 B1332 B0310 B0311 B0408 B0314 B0315 B0413 B0318 B0308 B0309 B0312 B0313 B0316 B0404 B0409 B0321 B0324 B0325 B0417 B0323 B0423 B0326 B0327 B0328 B0329 B0422 B0428 B0331 B0332 B0427 B0330 B0426 B0433 B0336 B0432 B0335 B0431 B0334 B0430 B0339 B0340 B0435 B0436 B0434 SS016B SS026B SS025B SS036B SS035B SS046B SS058B B0300 SS071B SS084B B0301 B0678 B0684 B0698 B0728 B0746 B0758 B0772 B0721 B0722 B0729 B0730 B0731 B0737 B0747 B0748 B0760 B0761 B0762 B0763 B0764 B0759 B0773 B0775 B0776 B0777 B0778 B0774 B0738 B0750 B0749 B0751 B0752 SS089B SS102B SS112B SS113B SS152B SS149B SS150B SS151B SS156B SS157B SS158B B0889 B0890 B0891 B0717 B0718 B0894 B0895 B0724 B0725 B0726 B0899 B0900 B0733 B0734 B0735 B0903 B0904 B0907 B0745 B0906 B0754 B0755 B0756 B0908 B0753 B0765 B0766 B0767 B0768 B0743 B0744 SS076B SS088B B0732 B0742 B0741 B0740 B0739 B0736 SS063B SS101B SS139B B0716 SS054B SS087B B0723 B0715 B0714 B0720 SS042B SS053B SS100B SS126B B0710 SS030B SS041B SS099B SS138B B0703 SS029B SS040B SS086B SS125B B0697 SS006B SS164B SS165B SS168B SS169B B0449 SS014B SS013B SS022B SS023B SS032B SS033B B0896 B0901 SS114B SS127B SS064B SS065B SS077B SS078B SS090B SS103B SS116B SS115B SS128B SS129B SS141B SS142B SS153B SS154B SS155B SS159B SS160B SS161B B0892 B0893 B0897 SS140B SS091B SS104B SS117B SS130B SS143B SS066B SS067B SS167B SS166B SS015B SS170B SS172B SS171B SS024B SS174B SS175B SS034B SS178B SS179B SS176B SS045B SS182B SS183B SS180B SS177B B0346 SS181B B0347 SS184B SS185B B0349 B0350 SS044B SS056B SS057B SS186B SS069B SS070B SS189B SS079B SS080B SS082B SS083B SS192B SS193B B0393 SS095B SS197B B0395 SS195B SS196B B0394 SS096B SS092B SS093B SS105B SS106B SS118B SS119B SS200B B0845 B0846 B0847 SS109B SS199B SS108B B0856 B0857 B0858 SS081B SS094B SS107B SS120B SS121B SS122B SS131B SS132B SS133B SS134B SS135B SS144B SS145B SS146B SS147B SS148B SS198B SS201B SS190B SS202B SS188B SS191B SS194B B0351 B0360 B0371 B0382 B0361 B0362 B0372 B0373 B0383 B0384 B0374 B0352 B0364 B0375 B0353 B0365 B0376 B0386 B0387 B0396 B0397 B0398 B0848 B0849 B0850 B0859 B0860 B0861 B0385 B0355 B0354 B0366 B0377 B0388 B0356 SS207B SS205B SS208B B0232 B0243 B0244 B0367 B0368 B0378 B0379 B0390 B0357 B0358 B0255 B0369 B0370 B0266 B0381 B0380 B0211 B0219 B0214 B0227 B0226 B0215 Wichita B0221 B0220 B0229 B0228 B0245 B0246 SS206B B0867 SS209B B0878 B0237 B0247 B0222 B0240 B0239 B0249 B0250 B0251 B0262 B0263 B0248 B0231 B0230 B0238 B0241 B0242 B0252 B0391 B0392 B0257 B0256 B0267 B0277 B0276 B0268 B0269 B0278 B0279 B0287 B0286 B0285 B0258 B0288 B0868 B0869 B0879 B0880 B0870 B0871 B0400 B0851 B0852 B0862 B0863 B0872 B0873 B0883 B0884 B0259 B0270 B0280 B0289 B0260 B0261 B0253 B0271 B0272 B0273 B0274 B0281 B0282 B0283 B0284 B0275 B0401 B0402 B0403 B0293 B0294 B0295 B0296 B0853 B0854 B0864 B0865 B0855 B0866 B0662 B0663 B0664 B0874 B0672 B0665 B0298 B0299 B0666 B0671 B0675 B0674 B0673 B0876 B0875 B0670 B0669 B0668 B0667 B0297 CARWO B0677 B0881 B0882 B0254 B0265 B0292 B0291 B0290 B0264 B0389 B0399 B0877 SS204B B0218 B0235 B0234 B0233 B0661 SS203B B0213 B0348 SS055B SS187B B0225 B0224 B0212 SS173B SS043B SS068B B0217 B0216 SS007B B0359 SS031B SS052B SS098B SS137B B0696 SS021B SS051B SS075B SS124B B0702 SS020B SS039B SS062B SS136B B0709 SS005B SS163B B0223 SS012B SS050B SS074B SS123B B0708 SS019B SS011B SS038B SS061B SS110B B0701 B0707 B0706 B0713 B0712 B0711 B0719 B0727 B0700 B0699 B0705 SS028B SS027B SS085B SS111B SS018B SS017B B0448 B0447 B0341 B0345 B0344 B0343 SS162B SS003B SS049B SS073B B0686 B0691 SS010B SS037B SS060B B0682 B0690 B0695 B0694 B0693 B0692 B0704 SS048B B0681 B0689 B0688 SS072B SS002B SS009B SS004B B0337 B0210 B0342 B0443 B0442 Logan B0333 B0363 SS047B B0685 B0680 B0683 B0687 SS097B B0679 SS059B SS001B B0446 B0445 B0338 B0438 B0437 B0441 B0440 B0439 SS008B B0421 B0425 B0429 B0444 B0416 B0420 B0424 UTHWEST B0320 B0322 B0415 B0414 B0419 B0317 B0319 B0418 B0412 B0411 B0410 B0887 B0886 B0885 B0888 B0676 B0898 B0902 B0905 BYERLY EAST B0757 B0828 B0825 B0830 B0835 B0840 B0826 B0831 B0836 B0841 B0450 B0451 B0469 B0470 B0488 B0489 B0506 B0832 B0833 B0838 B0842 B0843 B0452 B0471 B0490 B0507 B0522 B0536 B0550 B0783 B0834 B0837 B0798 B0812 B0811 B0844 B0786 B0785 B0784 B0797 B0839 B0771 B0770 B0769 B0829 B0827 B0453 B0454 B0455 B0456 B0472 B0473 B0474 B0475 B0492 B0493 B0494 B0799 B0800 B0813 B0814 B0787 B0788 B0791 B0792 B0804 B0806 B0802 B0803 B0805 B0801 B0816 B0817 B0818 B0819 B0815 B0458 B0457 B0476 B0460 B0459 B0790 B0789 B0463 B0462 B0461 B0478 B0479 B0480 B0481 B0482 B0477 B0496 B0497 B0498 B0499 B0500 B0501 B0780 B0779 B0793 B0807 B0794 B0808 B0781 B0782 B0795 B0796 B0809 B0810 B0820 B0821 B0822 B0823 B0824 B0464 B0465 B0466 B0467 B0468 B0483 B0484 B0485 B0486 BYERLY B0487 B0505 B0491 B0508 B0509 B0523 B0524 B0537 B0495 B0512 B0511 B0510 B0526 B0525 B0538 B0513 B0514 B0515 B0529 B0530 B0527 B0543 B0542 B0541 B0540 B0502 B0516 B0517 B0518 B0519 B0531 B0532 B0533 B0534 B0544 B0545 B0546 B0547 B0548 B0558 B0559 B0503 B0520 B0504 LEOTI GAS AREA B0521 B0535 B0549 B0539 B0551 B0552 B0563 B0564 B0574 B0575 B0584 B0585 B0553 B0554 B0565 B0566 B0576 B0577 B0586 B0587 B0555 B0567 B0578 B0579 B0580 B0570 B0581 B0560 B0561 B0571 B0572 B0573 B0582 B0583 B0592 B0591 B0600 B0601 B0602 B0603 B0610 B0611 B0612 B0613 B0595 B0596 B0597 B0605 B0606 B0607 B0608 B0616 B0617 B0618 B0609 B0619 B0628 B0629 B0620 B0621 B0622 B0623 B0630 B0631 B0632 B0633 B0625 B0626 B0641 B0636 B0637 B0638 B0640 B0635 B0639 B0634 B0645 B0647 B0648 B0649 B0651 B0644 B0646 B0650 B0643 B0659 B0660 B0652 B0653 B0627 B0654 B0655 B0656 B0657 B0658 B0562 B0593 B0590 B0599 B0594 B0624 B0569 B0589 B0604 B0615 B0557 B0568 B0588 B0598 B0614 B0556 LEOTI GAS AREA B0642 LEOTI GA 1 0 1 2 3 4 5 6 7 8 9 10 KILOMETERS 1 0 1 2 3 4 5 MILES 5000 0 5000 10000 15000 20000 This detailed regional soil gas survey is located in Greeley and Wichita Counties, Kansas to the west and north of Byerly (47.3 BCFG) and Bradshaw (334 BCFG) Gas Fields. A portion of the soil gas survey was conducted over the northwest half of Byerly Field for calibration purposes. The Permian Carbonate Gas Play (Chase and Council Grove Groups) in the Hugoton Embayment is the most prolific and important hydrocarbon play in this petroleum province. This area of SW Kansas is also referred to as the Hugoton gas area. The major gas fields of this area – Hugoton, Panoma, Greenwood, Bradshaw, and Byerly (Figure 16) have produced a total cumulative of 27 TCFG. Byerly and Bradshaw Gas Fields, together, have a total cumulative production of 381 BCFG from the Chase Carbonate reservoir. Byerly Field was discovered in 1968. Development drilling at Byerly Field (Figure 17) progressed rapidly through the 1970’s up to 1985 when the field reached a maximum development of 55 wells. There was a hiatus in development drilling from 1986 until 1990. Since 1990 there have been 14 Chase Carbonate completions at Byerly Field. There are currently 46 producing gas wells in the field of which 20% have been completed since 1995. Interpretation of the analytical data from the soil gas survey within the northwest part of Byerly Field indicates that there are some additional areas that can be recommended for further development drilling within the field area. The natural gas accumulations at Byerly Field are due to stratigraphic entrapment caused by a facies change in the Permian Chase Carbonate reservoir where it grades from limestones and dolomites in the east to nonmarine red beds in the west. The generalized geology of the gas trend is illustrated in Figure 2. Regional dip of the Chase Carbonate is to the east-southeast. The upper seal for the gas reservoirs are provided by anhydrites and shales of the overlying Sumner Group. Average drill depths of the gas reservoir at Byerly Field range from about 2750 to 2900 feet. Porosity and permeability in the Chase Carbonate are highly variable as evidenced by the cumulative gas production from individual wells as shown in Figure 17A. Cumulative gas production from wells in Byerly Field range from 30 MMCFG to 3,572 MMCFG. 25000 FEET B. Location Map, Regional Soil Gas Survey Figure 16 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 19 The stratigraphic entrapment of the gas, relatively shallow depth, and highly variable porosity and permeability of the reservoir are factors which favor the application of surface soil gas surveys as an important exploration method to reduce risk in this play. SS084B B0301 322 B0678 58 773 564 832 442 116 1140 693 502 622 458 B0688 9 9 B0692 375 B0693 B0694 10 6 B0698 B0699 4 213 144 730 B0687 797 421 947 B0713 85 1644 1482 B0721 1741 421 B0740 504 730 66 2264 73 2773 1741 3572 249 B0751 695 865 527 1116 722 318 68 422 B0777 584 1669 457 223 B0805 30 534 CUMULATIVE GAS PRODUCTION PER WELL B0819 0 1 SS139B 8 8 6 10 4 4 B0696 B0697 8 10 13 B0708 8 9 775 431 2 MILES 6 > 1,500 1,000 - 1,500 500 - 1,000 300 - 500 < 300 B0463 2 B0482 81 B0703 9 9 B0709 B0710 20 6 B0715 B0716 B0717 B0718 5 5 6 28 9 5 9 6 B0892 B0893 B0891 23 1 B0894 B0895 4 2 B0896 20 B0901 B0900 4 B0734 B0903 B0905 B0733 B0904 B0732 B0735 B0731 12 20 8 19 6 14 1 4 B0906 B0907 12 B0908 B0753 B0754 B0755 B0756 9 14 36 9 B0764 B0765 B0766 B0767 B0768 6 14 26 10 B0752 B0778 B0779 B0780 B0781 3 7 16 7 B0793 13 B0794 7 B0795 B0796 13 19 B0806 B0807 B0808 B0809 B0810 30 4 16 5 11 B0821 B0822 B0823 B0824 21 27 2 8 B0464 B0465 B0466 B0467 B0468 8 15 20 6 B0820 B0484 B0483 B0485 B0501 1 B0502 B0503 SS121B 4 4 SS133B SS134B 18 20 SS144B SS145B SS146B SS147B 93 11 9 4 B0519 B0520 SS122B SS135B SS198B SS201B SS204B SS148B SS207B 3 3 B0897 B0898 1 1 B0902 15 3 4 B0486 6 B0487 2 B0504 MILES B0518 SS195B 16 B0782 B0792 8 4 SS120B 9 SS155B 4 SS107B SS132B 5 12 40 SS108B SS109B 118 SS154B 6 4 B0745 SS096B SS131B 9 SS156B B0899 18 SS095B 8 6 SS161B 12 B0744 SS094B SS130B SS153B SS160B B0890 9 10 SS159B 8 SS119B SS143B SS158B SS106B 20 3 SS157B SS105B SS118B SS142B 3 B0726 12 SS093B 11 4 5 22 B0743 SS092B SS117B SS141B SS151B B0889 SS104B SS140B 7 B0725 34 67 SS150B 9 B0742 SS129B 130 6 B0724 12 SS128B 6 SS149B 5 B0741 SS127B SS152B B0723 B0722 SS091B B0505 0 00 17 A. Contour Map of cumulative gas production from wells in northwest part of Byerly Field B0702 B0714 20 MMCFG 51 6 35 6 326 2443 222 1 SS126B 11 SS138B B0701 7 118 SS125B 16 SS137B 7 10 B0791 641 SS124B 5 B0707 91 1348 3 SS136B 5 24 B0763 SS116B 2 B0691 B0700 3 68 SS115B 4 B0690 138 B0730 SS114B 11 B0689 B0706 1 1123 SS113B 5 16 226 1171 B0705 SS112B SS123B B0695 SS103B SS111B 10 16 SS102B 15 B0686 9 SS101B SS100B 18 4 6 SS090B SS099B 3 5 447 238 B0684 B0683 SS089B 10 SS098B SS110B SS088B 30 B0685 4 1099 B0682 B0681 B0680 SS097B B0679 SS087B SS086B SS085B ETHANE CONCENTRATIONS (ppb) > 30 25 - 30 20 - 25 15 - 20 10 - 15 < 10 B0521 B. Ethane magnitude contour map in northwest part of Byerly Field Figure 17 How to Design an Exploration Surface Soil Gas Geochemical Survey The purpose of the regional detailed soil gas survey was threefold: (1) calibration of the survey to the gas production at Byerly Field, (2) to aid in possible further exploitation/ development drilling at Byerly Field, and (3) to determine other areas along trend that exhibited similar anomalous soil gas microseepage and would therefore indicate areas of exploration potential. The variability of the cumulative gas production from individual wells in the northwest part of Byerly Field is illustrated in Figure 17A. There is a pronounced northeastsouthwest orientation of porosity and permeability development in the Chase Carbonate at Byerly Field. As evidenced by the cumulative gas production contour map, there are three porosity/permeability fairways at Byerly Field. An ethane concentration contour map, constructed from soil gas magnitude analytical data in northwest half of Byerly Field, is shown in Figure 17B. There is very good correlation between areas of maximum cumulative gas production (Figure 17A) and anomalous ethane soil gas concentrations (Figure 17B) in Byerly Field. The trends of microseep anomalies, indicated by the contour map of ethane magnitudes, exhibits the same northeast-southwest orientations as seen in the contour map of cumulative gas production. Since there are many more soil gas data points than development wells at Byerly Field, the soil gas anomalies, indicated by the contour map, probably provides a more realistic depiction of the subsurface porosity/ permeability trends in the Chase Carbonate at Byerly Field. A number of untested soil gas anomalies exist in the remainder of the soil gas survey to the west and north of Byerly Field. These anomalous gas microseeps are not random, isolated points, but rather tend to cluster in groups of gas microseep points that are on trend with established Chase Carbonate gas production at Byerly and Bradshaw Fields. These untested soil gas anomalies exhibit similar soil gas magnitudes and areal extents as the soil gas anomalies mapped within Byerly Field. Page 20 090 090A 46 148 091 47 119 71 285 121 295 26 127 53 087 42 128 75 085 109 8 081 59 084 51 001 88 318 200 320 19 077 49 002 082113 36 005 217 003 124 319 76 11 092 36 076 215 069 65 WENDLEBURG 2-11 8 MILLER #1 067 48 KANSAS BREWER 1 WENDLEBURG 1-11 12 11 BREWER 1 HUDDLESTON 34-11 BREWER 1 A 066 77 074 47 063 40 ABEL #1 13 14 18S41W 18S43W 18S41W 18S43W 095 MO-JO 4 MO-JO 2 073 52 76.0 MO-JO 1 17 MO-JO 3 094 22 130 73 HUDDLESTON 34-11 87.0 17 075 34 76.0 87.0 WILLIAM #1 LINN 1 LIMITS OF V7 INCISED VALLEY-FILL 229 LINN 1 SELL #13-3 MO-JO 4 220 MO-JO 2 13 14 SELL 1 MO-JO 3 220 ABEL #1 LINN 1 12 11 BREWER 2 BREWER 2 070 30 WENDLEBURG 1-11 HUDDLESTON 33-11 HUDDLESTON 33-11 KELLER #2 13.4 32.4 25.5 BREWER 3 18S41W 18S43W 072 95 32.0 6.5 BREWER 1 BREWER 3 071 38 321 83 BREWER 2 KELLER #1 12 053 78 WENDLEBURG 2-11 WENDLEBURG 3-11 8 WENDLEBURG 3-11 BREWER 2 050 108 049A 83 203 Another major advantage of soil gas surveys is the relatively low cost. Considering sample collection, laboratory analyses, and interpretation and reporting costs, the present day cost of the 106 site soil gas survey conducted at Moore-Johnson field would be about $16,000. This is only about 15% of the dry hole cost of a single Morrow well. 40.8 BREWER 24-2 BREWER 24-2 MO-JO 1 129 76 BLACKBIRD #1 14 SELL 1 13 SELL #13-3 061 57 0 1000 0 2000 1000 0 2000 ETHANE CONCENTRATIONS (ppb) > 125 110 - 125 90 - 110 75 - 90 65 - 75 < 65 Limits and Dimensions of Morrow V7 Sands Areal Extent Width Thickness 2000 BOBCAT LEASE WITT "A" LEASE V7d 0 - 30 ft. 1800 - 2700 ft. WITT "B" LEASE V7c 0 - 18 ft. 1300 - 2300 ft. LANG LEASE V7b 0 - 24 ft. 2300 - 3200 ft. COYOTE Morrow Well Completion Zones DRY HOLE LOCATED IN AREAS OF BACKGROUND ETHANE MAGNITUDES 1000 Scale - Feet Scale - Feet Scale - Feet LEGEND CUM. BO x 1000 > 200 70 - 80 V7d V7c V7b 50 - 60 40 - 50 20 - 30 10 - 20 < 10 How to Design an Exploration Surface Soil Gas Geochemical Survey In this portion of the Morrow trend, the sample density of 16 sites per section is only adequate for defining a lead or prospect area and possibly acquiring acreage. This sample density is not adequate for exploitation or development drilling. A sample density of at least 30 sites per section is needed as demonstrated at the Moore-Johnson field (LeBlanc and Jones, 2004a). Surface soil gas geochemistry will not eliminate all dry holes being drilled within a field. The example previously discussed of the Bobcat #2-2 wells is a good example to illustrate this point. As pointed out by Bowen and Weimer (2003), the V7 sands in this part of the Morrow trend are of smaller areal extent, smaller in cross section, and more compartmentalized than in the Morrow fields to the north. At the sample density of this survey, microseep anomaly patterns could not distinguish the individual trends of the V7b, V7c, and V7d reservoirs. This is because the widths only range from 1800 to 3000 feet (see legend, Figure 18B). Perhaps a denser soil gas grid could have provided the necessary resolution. Soil gas anomaly data can not distinguish between oil reservoirs of different geologic ages. In this part of the Morrow trend, in most wells the Mississippian has been a secondary (or primary) objective. Although not productive at Moore-Johnson field, anomalous microseeps in the surrounding area could indicate Mississippian potential in addition to Morrow. Additionally, shows were reported in some wells in the Pennsylvanian Lansing-Kansas City interval. 80 - 90 30 - 40 Figure 18 As previously discussed, the major advantage of soil gas surveys in the Morrow oil trend is that of risk reduction and potentially improving the success ratio. As shown on the Figure 18A, had the survey been available to all companies, then probably, 11 of the dry holes on the west side and the north and south end of the field would not have been drilled. This alone would have increased the overall success rate for the field from 56% to 82%. Had the data been available to Amoco in 1990, at least five of the dry holes could have been avoided, increasing Amoco’s success rate from 30% to 60%. COYOTE 1 093 35 17 54.6 1.7 COYOTE 1 310 54 304 106 068 30 WITT B-1 BLACKBIRD #1 044 83 303 70 301 99 1 2 COYOTE 2 COYOTE 2 309 48 049 079 42 078 61 BOBCAT 1-2 83.3 43.3 WITT B-1 042 35 312 29 302 76 BOBCAT 2-2 1 2 LAWSON #1 BOBCAT 2-2 45.3 WITT A-2 65 046 103 051 96 WITT A-1 85.3 BOBCAT 1-2 WITT A-2 043 045 40 048 113 5 0.5 314 65 311 26 052A 052 77 115 080 97 083 88 316 47 AMOCO LAWSON #1 BOBCAT 2-2 BOBCAT 2-2 1 047 58 115 115A 143 20 004 197 041 44 WITT A-1 292 59 313 36 294 197 118 101 317 75 300 80 040A 94 116 83 5 277 87 280 23 117 43 296 84 286 34 039 42 293 45 2 037 69 110 279 75 291 75 297 47 284 37 036 62 037A 038 62 089 71 A’ KANSAS 088 65 Advantages and Limitations of Soil Gas Surveys LANG 34-35 LANG 34-35 276 161 278 50 COLORADO 121 58 281 135 272 123 273 124 230 76 COLORADO 5 229 42 282 63 283 41 KANSAS 124 41 COLORADO 228 39 There is no direct relationship between the magnitudes of microseeps and either the rate or total volume of hydrocarbons a well will produce, except in a very general sense. This is particularily true when comparing reservoirs having different entrapment mechanisms, such as the Stateline Morro oil and W. Stockholm gas fields. However, as can be seen comparing the ethane contour map (Figure 18A) to the production map on Figure 18C, this concept may at least potentially work when comparisons are made over the same reservoir. For example, the Bobcat lease (170,646 BO) has been more productive than the Witt “A” lease (90,575 BO) and the Lang lease (477 BO). Similarly, the Coyote lease (95,362 BO) has been more productive than the Witt “B” lease (1745 BO). The ethane magnitudes suggest differences that may be related to these production volumes. This suggests that the amount of reserves on a prospect could likely be improved by a company getting a competitive edge in early lease acquisitions based on soil gas data. One of the reasons that Axem/Murfin had such sizeable reserves at Moore-Johnson field was their excellent lease position. Page 21 Colorado Kansas Smokey Hill Sherman County Wallace County Recommendations Lookout Speaker Cheyenne County Bledsoe Ranch Wildfire Harker Ranch "ST Castle Peak ATE Sianna LIN 66% 47% Frontera " 58% ND Sorrento Field RE ET Arapahoe Mt. Pearl 73% 49% Mount Sunflower 68% Arrowhead Stockholm SW Second Wind Cheyenne County 42% No Soil Gas Jace unty 41% Sidney 56% Kiowa County Greeley County 30% Moore-Johnson Salt Lake/Haswell 90% W/Soil Gas 0 McClave mi 0 km 10 10 Figure 19 Factors Affecting the Rate of Return in the Morrow Trend FACIES TRACT UPDIP TRANSITIONAL DOWNDIP FIELD RESERVOIRS SUCCESS RATIO YRS. TO DEVELOP AVG. PER WELL RESERVES BO Sorrento V7 58% 10 YRS. 1979-1988 358,333 Mt. Pearl-Sianna V7 47% 6 YRS. 1984-1990 321,429 Arapahoe V3 V7 66% 3 YRS. 1988-1990 154,419 Frontera V7 73% 3 YRS. 1988-1990 106,429 SW Stockholm V7 68% 9 YRS. 1979-1988 69,892 Second Wind V3 V7 54% 4 YRS. 1988-1991 139,474 Sunflower V1 V3 V7 49% 4 YRS. 1993-1998 83,500 Sidney-Kriss V1 V3 V7 41% 9 YRS. 1990-1999 42,950 Jace V1 V7 31% 5 YRS. 1989-1993 63,846 V7 42% W/O SOILGAS SURVEY 90% W/ SOIL GAS SURVEY 2 YRS. 1992-1994 91,000 Moore-Johnson Figure 19 and Table 2 list success rates for development drilling in representative fields in the Morrow oil trend and other factors (years to develop, per well reserves) affecting the rate of return in the Morrow trend. The fields are grouped according to the facies tracts as defined by Bowen and Weimer (2003). It is apparent that the newer fields most recently developed (Jace, Sunflower, Sidney) have the lowest success rates. As shown at Moore-Johnson field, high-density soil gas surveys could improve drilling success in these areas. Employment of soil gas surveys could also have accelerated the development drilling schedule at Sorrento and SW Stockholm fields from the 10-year period that was required for full field development. As discussed by Bowen et al. (1993) initially (1979 to 1984), an incorrect depositional model was the main reason for the rather lengthy development time frame for these two fields. Success rates for Morrow exploration wells were reported by Bowen et al. (1993) to have been 5% in the Sorrento-Mt. Pearl-Sianna area and reported by Moriarty (1990) to have been 10% in the Stateline area. There still remain areas of untested Morrow exploration potential in the transitional and updip facies tracts where soil gas surveys could be employed to improve the exploratory success rates over those previously reported. Regional isopach maps of the upper Morrow section have been used to define other areas where Morrow V1, V3, and V7 incised valleys might exist (Bowen and Weimer, 2003, Figure 10). Regional soil gas surveys could be very useful in exploration ventures when used in conjunction with this method, especially in areas with sparse well control (LeBlanc and Jones, 2004a). As shown in this paper, surface soil gas geochemistry has been successfully used in developing oil reserves in the Morrow V7 incised valley trend. This method would also be applicable in other Morrow incised valley trends of southeast Colorado and southwest Kansas such as the V1 and V3 Valley systems. As reported by Bowen and Weimer (1997, 2003) these two incised valley systems are transparent on 2-D or 3-D seismic due to their close proximity to the base of Atoka/top of Morrow interface. Additionally, other Morrow incised valley fill systems were outlined by Wheeler et al. (1990) in Wallace County, Kansas and farther south in Kiowa, Brent, and Powers Counties, Colorado. A high degree of compartmentalization has been observed in the V7 reservoirs in the downdip facies tract. Future soil gas surveys in this area, for development drilling purposes, should have a higher density of samples than the grid of 30 sites per section used in the 1992 survey at Moore-Johnson field. For regional exploration activities in the Morrow trend, a soil gas grid of 16 sites per section appears satisfactory only for delineating regional microseep anomalies. Soil gas geochemistry would also be applicable in other younger Pennsylvanian incised valley systems that have been identified in central and southern Kansas and northern Oklahoma (KGS, 2003). Likewise, Cretaceous age incised valley-fill systems exist in Rocky Mountain areas such as the Denver, Powder River, and Williston basins. The generalized paleodrainage network for the Muddy Formation was illustrated by Weimer (1992, Fig. 3) over the north Colorado, Wyoming, and eastern Montana areas. A more detailed picture of paleovalleys in the Denver basin which were filled with Muddy valley-fill sandstones was also presented. The advantages of using each of the disciplines of geology, geophysics, and soil gas geochemistry in Morrow exploration and development are well known, however the three disciplines have seldom been used in tandem. A somewhat lesser discussed topic is that of the limitations of these three sciences. The limitations of using soil gas surveys in the Morrow oil trend have been discussed, to some extent, in this paper. Bowen et al. (1993) discussed limitations of subsurface geology and 2-D seismic in locating reservoir quality sandstones in the Sorrento-Mt. Pearl-Sianna area. Germinario et al. (1995) likewise discussed the limitations of 2-D and 3-D seismic surveys in locating both the incised valleys and reservoir sandstones in the southern Stateline Trend. The integrated, multidisciplined approach of using geology, geophysics, and soil gas geochemistry in Morrow exploration (LeBlanc and Jones, 2004b) is a superior method whereby the advantages in one of the three disciplines complement and overcome the limitations or shortcomings of another. Table 2 How to Design an Exploration Surface Soil Gas Geochemical Survey Page 22 Summary A high-density soil gas survey was conducted in the vicinity of Moore-Johnson field in 1992. The survey was conducted after the discovery of the field and initial development attempts, all by the same major oil company, which resulted in a total of 10 wells (3 oil wells, 7 D&A). A second attempt to extend the field, starting in 1992, was conducted by six independent oil companies. One of the companies used an integrated approach of combining subsurface geology and seismic with a detailed geochemical soil gas survey. The remainder of the companies used industry-standard Morrow exploration techniques acquired from 1978 to 1990 during development of Morrow oil fields to the north. A high-density soil gas survey, consisting of 106 sites, was conducted over a four square mile area of interest. Integration of geochemistry, geology, and geophysics resulted in a compatible, unified interpretation that the field could be extended to the north. The company utilizing the soil gas survey completed the first well to extend the field with a 4700-foot stepout. This company completed eight consecutive successful Morrow wells in the field before drilling a dry hole. After drilling 10 wells, the company had a 90% success rate. A total of 34 wells were drilled to both define the limits of the field and develop the Morrow reserves. By only drilling 29% of the total wells, the company utilizing soil gas geochemistry acquired 47% of the reserves produced to date. Success rates for the remainder of the other field operators were 0%, 30%, 50% and 67% There are still areas of untested potential in the Morrow oil trend. Fields discovered to date have produced 66.5 MMBO with ultimate recoverable reserves estimated at about 110 MMBO. Fields in the southern portion of the trend are in the downdip facies tract as characterized by Bowen and Weimer (2003). The Morrow sands in these wider incised valleys are of smaller areal extent, smaller in cross section, and more compartmentalized. Correspondingly, the average reserves per well are smaller than the northern fields. Although reserves are lower in the downdip facies, employing soil gas geochemistry can improve the relatively low success rates now being encountered in this area. This could vastly improve the rate of return. This documentation of a successful application of a detailed soil gas survey demonstrates how the method could be used to delineate other areas of Morrow incised valley-fill systems in areas of untested potential. Additionally, the method would also be applicable in incised valley-fill systems of other geologic ages in Midcontinent and Rocky Mountain basins. Soil gas geochemistry is not a panacea for Morrow exploration, exploitation, or development drilling, but is an integral part of a thorough exploration program. Applying the recently related concepts of Morrow sequence stratigraphy will undoubtedly be a tremendous advantage in future Morrow exploration and development drilling ventures, reservoir maintenance, and in secondary recovery operations. Using soil gas geochemistry in tandem with this concept would provide a very powerful synergistic effect to Morrow exploration and development projects. How to Design an Exploration Surface Soil Gas Geochemical Survey References Cited Agostino, P.N., R.J. LeBlanc, Jr., and V.T. Jones III, 2002, Assessment of subsurface hydrocarbon contamination resulting from multiple releases at six former bulk-fuel storage and distribution terminals, Austin, Texas: A case study, in D. Schumacher and L.A. LeSchack, eds., Surface exploration case histories: Applications of geochemistry, magnetics, and remote sensing, AAPG Studies in Geology No. 48 and SEG Geophysical Reference Series No. 11, p. 299-325. Adams, C.W., 1990, Jace and Moore-Johnson fields, in Sonnenberg, S.A., L.T. Shannon, K. Rader, W.F. Von Drehle, and G.W. Martin, eds., Morrow sandstones of southeast Colorado and adjacent areas: Rocky Mountain Assoc. of Geologists, p. 157-164. Bebout, D.G., W.A. White, and T.F. Hentz eds., 1993, Atlas of Midcontinent gas reservoirs: Bureau of Economic Geology The University of Texas at Austin, Austin, Texas, 85 p. 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