Oil Exploration in Greenland - Opportunities and Potential

1. Jørn Skov Nielsen - Deputy Minister Ulrik Gregersen - GEUS Bureau of Minerals and PetroleumGovernment of Greenland www.bmp.glbmp@gh.gl Phone: +299 346 800 Fax: +299 324 302

2. Is oil present in greenland?

3. Licence calls in Greenland • Greenland has experienced a boom in oilexploration in 2006 and 2007 • More than 100.000 km2 offshore West Greenland arenowcovered by exploration and exploitationlicences Bureau of Minerals and Petroleum Government of Greenland The future licence call offshore NW & NE Greenland – the so-called KANUMAS areas April 21 2008 AAPG Convention

4. Disko West licensing round 2006 and 2007 Licence area Area was divided into 8 licence blocks comprising 92,228 km²

5. Disko West licensing area - present situation In 2007/08 6 (7th on the way) hydrocarbon exploration and exploitation licences were granted to: Cairn Energy PLC, NUNAOIL ExxonMobil, Chevron, DONG, NUNAOIL Husky, ExxonMobil, NUNAOIL Husky, NUNAOIL Block 8 is applied for by PA Resources Bureau of Minerals and Petroleum Government of Greenland The future licence call offshore NW & NE Greenland – the so-called KANUMAS areas April 21 2008 AAPG Convention

6. Exploration & exploitation licences in SW Greenland EnCana and Cairn Energy PLC have 2 exploration and exploitation licences offshore Nuuk in West Greenland. Cairn Energy PLC has been granted 2 licences in the open door area offshore SW Greenland. Further, two blocks have been applied for in the new open door area south of 60 N Bureau of Minerals and Petroleum Government of Greenland The future licence call offshore NW & NE Greenland – the so-called KANUMAS areas April 21 2008 AAPG Convention

7. The future licence call offshore NW & NE Greenland The interest in the KANUMAS areas has increased significantly in continuation of the opening of the Disko West offshore region for oil and gas exploration and exploitation. Several companies have made inquiries about the licence plans for the coming years in the KANUMAS areas. W & NW Greenland NE Greenland GEUS & USGS 2006 Bureau of Minerals and Petroleum Government of Greenland The future licence call offshore NW & NE Greenland – the so-called KANUMAS areas April 21 2008 AAPG Convention

8. KANUMAS preference area NW Greenland (~125.000 km2) is very important as a northward extension of the Disko West 2006/2007 licence call area. NE Greenland (~150.000 km2) is very important, on the conjugate margin to some very prolific areas offshore Norway. Bureau of Minerals and Petroleum Government of Greenland The future licence call offshore NW & NE Greenland – the so-called KANUMAS areas April 21 2008 AAPG Convention

9. Baffin Bay • Connected basins very likely: Ungava System and other combined rift/strike slip systems • Same petroleum systems as further south, but also possibilities for older successions like elsewhere in the Arctic • Strong need for new geophysical data acquisition, Started in the summer of 2007, continuation in 2008

10. Distribution of Itilli oil Itillioilderivedfrom marine shale of presumedCretaceous age

11. Conceptual play types in the Melville Bay areaGiant structures Whittaker et al. 1997 Lower Paleoc. source Cenoman.-Turon. source

12. 500 ms MM TC BMP00-209 line

13. Conclusions - Baffin Bay Many of the new data and results have been important for definition of structures and exploration models, where the Disko West is one of the keys to NE Baffin Bay Large basin areas with possible mature source rocks – DHI´s and Paleocene and Cretaceous oil seeps/source rocks neighbouring Baffin Bay, suggest active petroleum systems Large structures with mid-Cretaceous and late Cretaceous to Early Paleocene deposits close to possible active kitchens, make the region prospective

14. East Greenland – future focus • Close to prolific petroleum provinces in the North Atlantic and Arctic region • Many well documented source rocks onshore, including the World class Upper Jurassic • Outcrop data provide good models for reservoir sandstones and mudstone seals • Despite an irregular seismic coverage, some interesting structures looking like "classical fields" from mid-Norway have been observed • Interesting high numbers of undiscovered resources by USGS (in collaboration with GEUS)

15. Available data and knowledge • Offshore: seismic acquisition in 1991, 1994 and 1995 (irregular grid due to ice) by KANUMAS group. • New geophysical data acquisition in recent years (StatoilHydro 2006, 2007, TGS-Nopec 2007)

16. Main structural elements from Hamann et al. 2005

17. USGS Asssesment 2007Total Conventional Resources in NE Greenland Mean Liquids 17 BB Gas 86 TCF Total 31 BBOE

18. Baffin Bay and North East Greenland by TGS-Nopec

19. Sea ice conditions in the Arctic Ocean Announcement: 1 October 2007from the National Snow and Ice Data Center (NSIDC), which is part of the Cooperative Institute for Research in Environmental Sciences at the University of Colorado at Boulder: Arctic sea ice during the 2007 melt season plummeted to the lowest levels since satellite measurements began in 1979. The average sea ice extent for the month of September was 4.28 million square kilometers (1.65 million square miles). The lowest September on record, shattering the previous record for the month, set in 2005, by 23 percent The magenta line indicates the long-term median from 1979 to 2000. Bureau of Minerals and Petroleum Government of Greenland The future licence call offshore NW & NE Greenland – the so-called KANUMAS areas April 21 2008 AAPG Convention

20. Sea ice conditions in the Arctic Ocean Recent ice cover in the Arctic Ocean If ship and aircraft records from before the satellite era are taken into account, sea ice may have fallen by as much as 50 percent from the 1950s. The September rate of sea ice decline since 1979 is now approximately 10 percent per decade, or 72,000 square kilometers (28,000 square miles) per year. Average sea ice extent 1979 to 2000:7.04 million square kilometers 5.57 million square kilometers in September 2005 September 2007 sea ice extent was 4.28 million square kilometers September ice extent from 1979 to 2007 Bureau of Minerals and Petroleum Government of Greenland The future licence call offshore NW & NE Greenland – the so-called KANUMAS areas April 21 2008 AAPG Convention

21. The future licence calls in NW and NE Greenland • Licensing rounds will be conducted in both KANUMAS West and KANUMAS East. • The North West Greenland licensing round will be one ordinary licensing round open to all • The licensing round in North East Greenland will be divided into two phases

22. The Schedule in North West Greenland • May 1st 2010: Deadline for applications for exploration and exploitation licences in NW Greenland (Baffin Bay) • Award of licences: three months after application date

23. The Schedule in North East Greenland Phase 1 • December 15th 2012: Deadline for applications in phase 1 of the licence round offshore Northeast Greenland Phase 2 • October 15th, 2013: Deadline for applications in phase 2 of the licence round offshore Northeast Greenland

24. Bureau of Minerals and PetroleumGovernment of Greenland www.bmp.glbmp@gh.gl Phone: +299 346 800 Fax: +299 324 302 Thank you