A NEW PERMIAN BASIN INITIATIVE BY THE BUREAU OF ECONOMIC GEOLOGY

1. INTEGRATED SYNTHESIS OF PERMIAN BASIN DEPOSITIONAL HISTORY AND STRATIGRAPHIC ARCHITECTURE: DATA AND MODELS FOR RECOVERING EXISTING AND UNDISCOVERED OIL RESOURCES PBSS A NEW PERMIAN BASIN INITIATIVE BY THE BUREAU OF ECONOMIC GEOLOGY S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

2. PROGRAM GOALS • Produce a detailed, comprehensive history of Paleozoic depositional and reservoir systems in the Permian Basin • Create spatially integrated data bases of depositional, stratigraphic, lithologic, and petrophysical properties S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

3. TARGET RESOURCES • Development Target: : 23 billion barrels of mobile oil remaining in existing reservoirs • Exploration Target: 3.5 billion barrels of undiscovered oil and NGL resources S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

4. VALUE • Provide fundamental stratigraphic and reservoir-specific data in a readilyaccessible and useable format. • Integrated data will decrease the risk and increase the efficiency of exploitation • Integrated data will define newopportunities for drilling. • Integrated data will form the basis for newengineering approaches and completion practices S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

5. SOURCE DATA • Reservoir studies • Cores • Wireline logs • 3D & 2D seismic • Outcrop studies • Published reports • Company data S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

6. DELIVERABLES • Text: Written synthesis of history, stratigraphy, facies, structural history, and reservoir development in Permian Basin. • Data: ARC/INFO GIS-based regional structure maps, facies maps, cross sections, core descriptions and data, outcrop descriptions and sections, core data, reservoir data, production data, publications, etc for each play. S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

7. TEXT • First-year report on depositional history and stratigraphy of the Cambrian-Permian • Incremental play reports as completed. S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

8. REGIONAL STRUCTURE MAPS Woodford Structure S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

9. FACIES MAPS S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

10. REGIONAL CROSS-SECTIONS • Sequence stratigraphic framework • systems tracts • bounding surfaces/unconformities • Unit correlations • Facies correlations • Unit correlations • Facies correlations • Payzone continuity • Wireline attributes S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

11. OUTCROP MODELS S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

12. DEPOSITIONAL MODELS S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

13. RESERVOIR MODELS S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

14. CORE DESCRIPTIONS S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

15. CORE PHOTOGRAPHS Ooid/skeletal Lime Grainstone Separate Vug Porosity Porosity: 23.1 %; Permeability: 17 md S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

16. CORE ANALYSIS DATA S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

17. RESERVOIR CROSS-SECTIONS • Cycle stratigraphic framework • Facies stacking patterns • Reservoir architecture • Payzone continuity • Wireline attributes S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

18. 500 ms 1000 ms 1 mile SEISMIC SECTIONS NW SE Yates Grayburgreservoir Queen Grayburg Lowstandwedge Glorieta platform margin U San Andres M L Clear Fork S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

19. PRODUCTION DATA S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

20. PUBLICATIONS S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

21. DATA DELIVERY FORMATS • Written summary reports on each play • Digital & paper delivery • Digital data (GIS ARC-View) • CD format • Online web-based (ARC-IMS) S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

22. FUNDING • DOE • Industry Sponsorship • Bureau of Economic Geology Leveraging • RCRL • State of Texas • Other Possible Sources • University System • NSF • Desired Funding Level: $1.5 - $2 million (3 years) S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

23. BENEFITS OF SPONSORSHIP • Exclusive priority access to data products and deliverables for minimum of 1 year. • Access to data digitally as it becomes available. • Input as to focus and deliverables of project. • Direct access to project staff. • Attendance at annual project meetings. S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04

24. PROJECT START DATE AND TERM • Expected Start: November 1, 2004 • Initial term: 3 years • Continuation based on funding availability. S. C. Ruppel, Permian Basin Petroleum Association Meeting, Midland, TX 10/28/04