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24-Pet-B3 Petroleum Geology · December 2015

Question 5 of 22

Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)

Notes on this paper

National Exams, December 2015 — 98-Pet-B3, Oil and Gas Evaluation and Economics (3 hours, closed book, approved non-programmable calculator only). The exam's own cover page is titled "Oil and Gas Evaluation and Economics" and every question is property valuation / reserves & production economics / DCF-NPV screening content — no geology anywhere.

Reference texts: Thompson & Wright, Oil Property Evaluation; Canadian Oil and Gas Evaluation Handbook (COGEH), Vol. 1 (Society of Petroleum Evaluation Engineers, Calgary Chapter); National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities (Canadian Securities Administrators); SPE/WPC/AAPG/SPEE Petroleum Resources Management System (PRMS); Ahmed, Reservoir Engineering Handbook.

The exam's own instructions ask for only 7 of the 10 short-answer questions and note the Cash-Flow/Future-Value tables are graded by column; for "choose N of M" exams, every item below is answered in full as a study resource. Questions 1–10 correspond to the exam's printed Short-Answer items 1–10; Questions 11–20 correspond to the printed Multiple-Choice items 1–10; Question 21 is the Future Value table; Question 22 is the Cash Flow table.

Question 5

Question text not reproduced: the examination questions are © Engineers and Geoscientists BC. Open the official past paper (linked at the top of this page) to read the question, then follow the worked solution below.

Given. The volumetric data below describe a conventional reservoir; the oil resource in place is required from N = VR × φ × (1/Bo) × (1 - Sw).

Given data
QuantitySymbolValue
Area of the reservoirA40 km²
Average pay thicknessh20 m
Porosityφ10%
Formation volume factorBo0.9 m³/stm³
Water saturationSw15%

Find. The oil resource in place N, in cubic metres and in barrels.

Areal extent A = 40 km² h = 20 m φ = 10%, Sw = 15%, Bo = 0.9 m³/stm³ Pay volume VR = A × h; N = VR · φ · (1/Bo) · (1 - Sw)
Fig. Q5-1 — reservoir pay volume and the volumetric OOIP variables.

Approach. Convert the areal extent to a consistent unit, form the gross rock pay volume, then scale by porosity, hydrocarbon saturation and the formation volume factor to get stock-tank oil in place.

  1. Convert area and form the pay volume. $A = 40\text{ km}^2 = 40\times10^{6}\text{ m}^2$, so $$V_R = A \cdot h = 40\times10^{6}\times 20 = \boxed{8.0\times10^{8}\text{ m}^3}$$This is the gross bulk rock volume of the pay zone, before any porosity or saturation correction.
  2. Apply the volumetric OOIP formula. $$N = V_R\cdot\phi\cdot\frac{1}{B_o}\cdot(1-S_w) = 8.0\times10^{8}\times0.10\times\frac{1}{0.9}\times(1-0.15)$$$$N = \boxed{75{,}555{,}556\text{ stm}^3}$$Dividing by Bo (rather than multiplying) is essential here — Bo is defined as reservoir volume per stock-tank volume (>1 for a live oil), so reservoir pore volume of oil must be divided by Bo to shrink it down to stock-tank (surface) volume.
  3. Convert to barrels. Using 1 m³ = 6.2898 bbl, $$N = 75{,}555{,}556 \times 6.2898 = \boxed{475.4\text{ million bbl}}$$This is the volumetric oil in place (a resource estimate), not a reserve — a recovery factor (not asked for here) would still need to be applied to get recoverable reserves.
Final results
QuantityValue
Gross pay volume VR8.0×108 m³
Oil in place N75,555,556 stm³ (≈ 75.6 million m³)
Oil in place N≈ 475.4 million bbl