AIRBORNE HYDROCARBON SENSING SYSTEM CORPORATE PRESENTATION JUNE - - PowerPoint PPT Presentation

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CORPORATE PRESENTATION JUNE 2012

CORPORATE PRESENTATION JUNE 2012

AIRBORNE HYDROCARBON SENSING SYSTEM

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CORPORATE PRESENTATION JUNE 2012

Our History

»System developed – “original concept” »Sky Hunter – 2000, developed prototype Sensor System »System tested against geology (case studies, small and large fields, onshore and offshore) »Trade Secret for 10 years, now patent applications in place »2012, Commercial Unit and Survey System

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CORPORATE PRESENTATION JUNE 2012

MICROSEEPS MANIFESTATIONS OUR SYSTEM COMBINED DATA LAYERS SUMMARY

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CORPORATE PRESENTATION JUNE 2012

MICROSEEPS

Direct Hydrocarbon Indicator

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CORPORATE PRESENTATION JUNE 2012

Hydrocarbon Microseeps

» The continuous, rapid, vertical migration of hydrocarbons from subsurface reservoirs

MICROSEEPS: HYDROCARBON MICROSEEPS

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CORPORATE PRESENTATION JUNE 2012

MICROSEEPS

Buoyancy

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CORPORATE PRESENTATION JUNE 2012

Buoyancy

MICROSEEPS: BOUYANCY

» Hydrocarbons migrate vertically into the cap rock from traps due to buoyancy forces between the lower density hydrocarbons and formation water

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CORPORATE PRESENTATION JUNE 2012

MICROSEEPS

Redox Cell Buoyancy

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CORPORATE PRESENTATION JUNE 2012

Redox Cell Basics

» “Giant DC Earth Battery” S. Pirson » Natural zeolites (clay minerals in reservoir seal) act as catalytic cracking agents, breaking long hydrocarbon chains into smaller

• molecules. This cracking action

results in the negative ionization of the hydrocarbon saturated zone. » Pirson and Tompkins: when shale cuttings are immersed in crude oil a negative charge (reduction) is generated and will continue as long as fresh oil is injected, replacing that previously cracked.

MICROSEEPS : REDOX CELL

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CORPORATE PRESENTATION JUNE 2012

Redox Cell Basics

» At surface, and into the atmosphere, a positive charge exists. This creates a near-surface anode and establishes a column of electrical flow from the electron generating oil reservoir (the cathode) directly to the electron poor surface. » This flow forms a reduction environment column or chimney centered directly over the oil/gas

• field. The chimney is referred to as a

redox cell. » Reduction Oxydation (“REDOX”)

MICROSEEPS : REDOX CELL

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CORPORATE PRESENTATION JUNE 2012

Redox Cell Basics

» Pirson documented these giant earth batteries using electric logs and surface redox potential (Eh) measurements. » The general term Chimney Effect (CE) includes a multiplicity of magnetic, geochemical, mineralogical and electromagnetic (EM) principles, all related to vertical hydrocarbon microseepage emanating from oil and gas accumulations.

MICROSEEPS : REDOX CELL

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CORPORATE PRESENTATION JUNE 2012

MICROSEEPS

Chimney Effect Redox Cell Buoyancy

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CORPORATE PRESENTATION JUNE 2012

Chimney Effect

» The Chimney Effect (CE) of negatively charged ionized hydrocarbons rising vertically above oil/gas reservoirs into the atmosphere is aided by the presence of the Earth’s electrical potential. » During fair weather there is an electrical potential difference of 500,000 volts between the ionosphere and the Earth’s surface being negative relative to the

• Ionosphere. The FAIR WEATHER

CURRENT is the steady flow of electrons from the earth’s surface

MICROSEEPS : CHIMNEY EFFECT

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CORPORATE PRESENTATION JUNE 2012

MICROSEEP MANIFESTATIONS

Magnetite

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CORPORATE PRESENTATION JUNE 2012

Authigenic Magnetite Development Over Hydrocarbon Pools

» Goethite (iron) changes to Magnetite in a strong reducing environment (redox cell) and the authigenic Magnetite is developed

• ver the same areal configuration as the

Hydrocarbon pools. And is the result of an Electromagnetic effect related to negative ions above Hydrocarbon traps or accumulations » Robert Foote: Statistics of magnetic anomalies in relation to entrapped hydrocarbons using borehole cuttings » Approx. 1,500 Producing Field tests: 80 -85 % found magnetic mineralization in drill cuttings (95% correlation if edge wells excluded) » Approx. 1,500 dry holes tested: only 5 – 16% had any alteration (magnetite rate drops to 5% if field edge dry holes are excluded)

MANIFESTATIONS: MAGNETITE

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CORPORATE PRESENTATION JUNE 2012

MICROSEEP MANIFESTATIONS

Clay Replacement Magnetite

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CORPORATE PRESENTATION JUNE 2012

Clay Replacement

» Among the changes that occur in electrochemically reducing (ie. negatively charged) environments associated with hydrocarbon seepage is the replacement of mixed layer clays by kaolinite. » Satellite imagery can locate kaolinite anomalies for further geotechnical screening.

MANIFESTATIONS: CLAY REPLACEMENT

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CORPORATE PRESENTATION JUNE 2012

MICROSEEP MANIFESTATIONS

Non Seismic (Schumacher) Clay Replacement Magnetite

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CORPORATE PRESENTATION JUNE 2012

Surface Measurement Dietmar Schumacher

» In a review of more than 2,600 US and International wildcat wells- all drilled after completion of geochemical or non-seismic hydrocarbon detection systems- more than 80% of wells drilled on prospects associated with positive hydrocarbon anomalies resulted in commercial discoveries.

MANIFESTATIONS: NON SEISMIC (SCHUMACHER)

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CORPORATE PRESENTATION JUNE 2012

MICROSEEP MANIFESTATIONS

Microseep Samples (Gore) Non Seismic (Schumacher) Clay Replacement Magnetite

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CORPORATE PRESENTATION JUNE 2012

Gore Survey

» “Capturing information in microseepage data using Gore’s Amplified Geochemical Imaging SM technology is a very effective way of identifying hydrocarbon seeping vertically up from charged reservoirs” David concludes. “They are Direct Hydrocarbon Indicators; in fact, we would like to suggest that while macroseeps show a presence of hydrocarbons in the basin, they may travel long distances from the actual reservoir. Microseeps travel vertically from the reservoirs and thus are the only real DHI!” » David Goold of GORE Surveys » 96 % accurate in predicting dry wells » 92% accurate in predicting geochemical anomalies

MANIFESTATIONS: MICROSEEP SAMPLES (GORE)

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CORPORATE PRESENTATION JUNE 2012

MICROSEEP MANIFESTATIONS

Atmospheric Samples Microseep Samples (Gore) Non Seismic (Schumacher) Clay Replacement Magnetite

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CORPORATE PRESENTATION JUNE 2012

Atmospheric Hydrocarbon Concentrations

» “Non-Methane” hydrocarbons were measured at incremental altitude steps high in the atmosphere » C2 – C5 were found » Without a charge, gases denser than air will settle (i.e. propane in parkades)

MANIFESTATIONS: ATMOSPHERIC SAMPLES

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CORPORATE PRESENTATION JUNE 2012

MICROSEEP MANIFESTATIONS

Gas Storage, Production, and Salt Atmospheric Samples Microseep Samples (Gore) Non Seismic (Schumacher) Clay Replacement Magnetite

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CORPORATE PRESENTATION JUNE 2012

Gas Storage Reservoirs

» Surface microseep measurements vary with storage pressures » Microseepage is in real time, not geological time

1. Increasing microseepage during summer gas injection 2. Decreasing microseepage during winter gas withdrawal

MANIFESTATIONS: GAS STORAGE, PRODUCTION, AND SALT

CORPORATE PRESENTATION JUNE 2012

Production

MANIFESTATIONS: GAS STORAGE, PRODUCTION, AND SALT

» With oil and gas production the reservoir pressure declines. Without the pressure drive the microseep activity diminishes and signal strength drops. 26

CORPORATE PRESENTATION JUNE 2012

Production

MANIFESTATIONS: GAS STORAGE, PRODUCTION, AND SALT

» With oil and gas production the reservoir pressure declines. Without the pressure drive the microseep activity diminishes and signal strength drops.

Production from reservoir

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CORPORATE PRESENTATION JUNE 2012

Salt

» Hydrocarbon Microseeps have been detected through thick evaporite beds (3,000 meters of salt & anhydrite) giving evidence that microseeps can penetrate virtually all lithologies

MANIFESTATIONS: GAS STORAGE, PRODUCTION, AND SALT

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CORPORATE PRESENTATION JUNE 2012

OUR SYSTEM

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CORPORATE PRESENTATION JUNE 2012

System Components

OUR SYSTEM: SAMPLE GATHERING

Hydrocarbon Sensors by MDA Repeatable, robust, secure, operator friendly Navajo Aircraft Hydrocarbon Nose

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CORPORATE PRESENTATION JUNE 2012

Hydrocarbon Nose

OUR SYSTEM: HYDROCARBON NOSE

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CORPORATE PRESENTATION JUNE 2012

Electromagnetism

» Electromagnetism manifests as both electric fields and magnetic fields and contributes to Redox Cell development » The electromagnetic force causes like-charged things to repel and

• ppositely-charged things to

attract. » Photons are the carrier particles

• f the electromagnetic force and

travel at the speed of light

OUR SYSTEM: ELECTROMAGNETISM

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CORPORATE PRESENTATION JUNE 2012

Hydrocarbon Nose

OUR SYSTEM: HYDROCARBON NOSE

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CORPORATE PRESENTATION JUNE 2012

Hydrocarbon Sensors

» Space Age Engineering for Airborne Hydrocarbon Sensing System

OUR SYSTEM: HYDROCARBON SENSORS

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CORPORATE PRESENTATION JUNE 2012

Survey Profile

» Samples are gathered and measured by custom designed equipment mounted on an aircraft flying at low levels

OUR SYSTEM: SAMPLE LINE

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CORPORATE PRESENTATION JUNE 2012

Gather, Process and Map Hydrocarbon Residual Footprints

OUR SYSTEM: SURVEY PLAN

FLYING THE SURVEY & DATA COLLECTION MICROSEEP INTENSITY PROFILE

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CORPORATE PRESENTATION JUNE 2012

Gather, Process and Map Hydrocarbon Residual Footprints

OUR SYSTEM: PROCESSING

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CORPORATE PRESENTATION JUNE 2012

Mapped Processed Data

» Map the strongest signals – the top residuals

OUR SYSTEM: MAPPING

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CORPORATE PRESENTATION JUNE 2012

Three Channels

OUR SYSTEM: THREE CHANNELS

Dry Gas Footprint Map Oil 1 Footprint Map Oil2 Footprint Map

Dry Gas Oil 1 Oil 2 Primarily methane Propane & heavier fraction Pentane & heavier fraction Indicates dry gas Indicates gas condensate or oil Indicates oil

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CORPORATE PRESENTATION JUNE 2012

COMBINED GEOLOGICAL DATA LAYERS

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CORPORATE PRESENTATION JUNE 2012

» Remote “Indirect” Hydrocarbon prone areas - not a prospect tool » Basement faulting patterns - no hydrocarbon detection capabilities » Architecture & sediment pack thickness - no hydrocarbon detection » “Indirect” Hydrocarbon prone areas

• n a regional basis - no unique

identification of oil and gas accumulations » Focus expensive seismic and drilling costs on areas with the best FOOTPRINTS » “Direct” Hydrocarbon Targeting on a Play & Prospect Scale » Combine with traditional geological & geophysical data layers

Direct Targeting Advantage

Satellite Magnetics Gravity Radio- metrics 2D 3D Well Logs

YOUR DATA: DIRECT TARGETING ADVANTAGE

CORPORATE PRESENTATION JUNE 2012

Combined Exploration Process

YOUR DATA: COMBINED EXPLORATION PROCESS

» Footprint maps combined with new or existing geological information can be used to predict trap depth

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Survey Profile

» Areas with high signal strength focus additional geophysical operations and data collection

YOUR DATA: SURVEY PROFILE

CORPORATE PRESENTATION JUNE 2012

Seismic Information

» Hydrocarbon reservoir defined by combining microseep data and subsurface data sets such as seismic

YOUR DATA: SURVEY PROFILE

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CORPORATE PRESENTATION JUNE 2012

Seismic Information

» Hydrocarbon reservoir defined by combining microseep data and subsurface data sets such as seismic

YOUR DATA: SURVEY PROFILE

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CORPORATE PRESENTATION JUNE 2012

Seismic Information

» Hydrocarbon reservoir defined by combining microseep data and subsurface data sets such as seismic

YOUR DATA: SURVEY PROFILE

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CORPORATE PRESENTATION JUNE 2012

Seismic Information

» Hydrocarbon reservoir defined by combining microseep data and subsurface data sets such as seismic

YOUR DATA: SURVEY PROFILE

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CORPORATE PRESENTATION JUNE 2012

Seismic Information

» Hydrocarbon reservoir defined by combining microseep data and subsurface data sets such as seismic

YOUR DATA: SURVEY PROFILE

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SUMMARY

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CORPORATE PRESENTATION JUNE 2012

Survey History

»Prediction rate: two wells out of three »Onshore and offshore examples »Over 100,000 line kilometers of test data

SUMMARY: PREDICTION RATE

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CORPORATE PRESENTATION JUNE 2012

Sky Hunter Advantage

SUMMARY: FIND MORE RESERVES/BENEFITS

Focuses Efforts. Quick Timelines. Safety.

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CORPORATE PRESENTATION JUNE 2012

Sky Hunter Advantage

SUMMARY: FIND MORE RESERVES/BENEFITS

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CORPORATE PRESENTATION JUNE 2012

Environmentally Non-Invasive Technology

SUMMARY: ENVIRONMENT

Before Before

The surface is not disturbed as we do our survey.

After After Before Before After After

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CORPORATE PRESENTATION JUNE 2012

Increased Reserves & Lower Costs

Scientific surveying of natural hydrocarbon microseeps

SUMMARY: INCREASED RESERVES & LOWER COSTS

Effective sample gathering, processing and GIS mapping Direct hydrocarbon indicator Focus exploration efforts to increase reserve base and lower finding costs

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CORPORATE PRESENTATION JUNE 2012

Contact Information

Russ Duncan russ.duncan@skyhunter.ca 403.228.2175 ext.(208) 308, 1235 – 17th Avenue SW Calgary, Alberta, T2T 0C2 fax 403 265 2419 www.skyhunter.ca

SUMMARY: CONTACT INFORMATION