Paper details:Project 2: Prospect Evaluation
Introduction:
This is a group project. Group members must collaborate. The same grade will go to all members of a group. Most group contains one distance learning student. Please organize yourselves to be able to collaborate “at a distance.” I can provide e-mail contact information. Each group also contains one individual who has taken the introductory course on geoscience and understands the basic geologic methodology of prospect evaluation.

Each group is assigned a location in Utah (one in Nevada) where there is or has been or should be some existing production. You are to develop a prospectus for existing AND new opportunities in this location. Regardless of present ownership, consider that all acreage is available – some may have more regulatory oversight than others, however. The table below shows your group and the location of your prospect.

Name Group Generic Location Township/Range
Asai, Pranay 1 Central Nevada T28N-R52E
Zheng, Andong 1
Zhang, Yi 1
Prochaska, Stephanie 2 Uinta Basin
(South) T10S-R22E
Richards, Justin 2
Tetteh, Joel 2
Shi, Moxuan 3 Mancos
(Book Cliffs) T13S-R22E
Vega-Ortiz, Carlos 3
Cox, Hailee 3
Wang, Ding 3
Browning, Rete 4 Uinta Basin
(North) T30S-R24E
Tirfe, Haimanot 4
Perdomo, Angel 4
Diep, Andrew 4
Nelson, Robert 5 Paradox Basin (Lisbon) T30S-R24E
Dostaliyev, Najaf 5
Long, Anthony 5
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Assignment:
Develop a working prospectus that can be presented to potential investors. A prospectus summarizes geologic background and outlines opportunities, challenges and potential costs. Summarize existing opportunities and look for new plays in deeper or shallower domains. There are several parts:

Regulatory and Environmental: Clearly outline issues, challenges, opportunities. Summarize regulatory constraints. Consider water requirements and potential water disposal/cleaning issues?

Geological Considerations: Perform basic volumetric assessments using available logging data (how much oil or gas is present, how much might be recovered). Consider proven zones as well as riskier formations. To do the volumetrics you will need to estimate three-dimensional characteristics using well logs and other information. You will need to consider the implications of the geologic structure, the paleogeography, and stratigraphic relationships. What are the plays? What are the possible pays? For conventional production, consider a petroleum systems approach.

Well Construction:
Propose an exploration program and prepare an APD for the first well. You will need to consult the DOGM (Department of Oil Gas and Mines web site) and possibly BLM or SITLA.

Infrastructure and Production Operations
What are the issues that will impact transportation to refineries? These can include commodity pricing (oil vs gas), pipeline availability, centralized separation, impeding regulations on tank venting, flaring, …

Logistics
There was one lecture on this topic. It was given by Dr. Robert Bereskin, Principal in Bereskin and Associates. Dr. Bereskin has four decades of exploration and prospect development experience. Don’t wait after the lecture to get started. You know enough about log analysis to get started. Get organized, get your materials, start the log interpretation, look at production records from the on-line databases, start the geologic interpretation! You will make a formal presentation on April 21 and submit your written prospectus on that same day. I will work on making this accessible to the remote participants – interactive participation – if at all possible.

Example Reference Material:
1. Utah Geologic Survey Publications and web site. Of particular interest is Oil and Gas Fields of Utah, by Hill and Bereskin (UGA Publication 22, 1993)
2. Department of Oil, Gas and Mines web site and database. There is information on all wells drilled in Utah. This usually includes logs and daily reports. Production information is also tabulated. (http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/main_menu.htm)
3. United States Geologic Survey (UGS). Go to their website and search for relevant information.