GUYANA: EXTRAORDINARY POTENTIAL EOP DEVELOPMENT:W CONTENTS Guyana: Extraordinary Potential For Petroleum Development Country Profile Exploration Summary Geological Summary Petroleum Geology Play Types Contacts& GUYANA: EXTRAORDINARY POTENTIAL FOR PETROLEUM DEVELOPMENT “he entire maritime reserve of Guyana's Ex- clusive Economic Zone (EEZ) nthe Atantic Ocean ‘andthe entre onshore, coastal region of Guyana, com piise the extent ofthe portion of the regional tant ‘Basin systom atbuted to Guyana, Approximately one hundred and twenty thousand (120,000) squared kic- meter in area, this under explored maritime zone has water depths ranging to two hundred metres (200m) within the shel before sloping sharply to in excess of ‘wo thousand metres (2000). Extending onshore from the significant expanse off: shore the Guyana Basin has extraordinary potential for Petroleum development. Recently subject to ranking bythe AAPG, the Guyana Basin placed 1Sthin the word ‘of unexplored petroleum resources. Characterized by word class source rocks, excellent reservoir formations ‘and numerous structural and stratigraphic raps withthe potential for capturing lage petrolferous accumulations, Guyana is stl to benefit from a major commercial dis- coveryin the coastal or offshore area refered to herein a8 the Onshore and Otfshore Guyana Basin respec- tively uyana, more reknowned forts sold minerals, pro [duction of bauxite, gold and diamonds, also pro duces qual rice, sugar and exceptional rum, A vari- ety of woods inctuding the marine resistant greenhear species and other exote tropical types contrbute tothe county’ exports. Endowed with virgin rainforests, majestic waterfalls such as the world famaus Kaiteut Fals and an interesting blend of history tiled urban and ‘ural setings, Guyana pursues the conmercialbenefis ‘rom the increasingly popular enterprise of eco-oursm, an emerging third world economy, however, Although hyéropower and non-raditona tematve ergy Sourées could assist in Guyana'scllemma, acom- mercial petrleum sector could ofer diverse industrial beefs and commensurate improvement in all areas (ofthe economy. he possibilty for Guyana to have petroleum stemmed from observations of petolierous o2cur rences recorded by Dutch explorers since the 1750s butitwas not unt 1918 thatthe frst significant fort to locate petroleum was performed. First, by Nelson Can- ron wha dled three (3) exploration wos inthe Waini area of Guyana’s North West Distct. Gas and pitch wore recorded in one of those well. In 1926 when a well was diled onthe West Coast of Berbice at Bath sugar estate, gas recovered there from was utlized for ‘decades al that locaton for domestic purposes. nen Shelin 198817 driled six (6) wels on the At antic coast at Dril Mahaicany aang the Berbice River, Corentye River, and in the Skeidon area, only cone (1) well diled near Rosehall by Trindad Lease- hold Ld in 1941 intervenedin the petroleum efors since Cannon in 1918 That wel reported gave weak ind- cations ofpetrcleum with tary, of droplets on basement ‘and gas fuocescence, The endeavour continues with the company CGX Resources inc. being curenty ceensed o explore in certain acreage onshore, between the Berbice and Corentyne Rivers. he quest for peiroleum in Offshore Guyana com ‘enced n 1958 when California 03 Company con- ducted seismics before withdrawing in 1960. Other Companies followed and several icences were awarded butte fst company to spud a well was Tenneco dur ing 1987 when Guyana Offshore # 1 and#2 were dled Guyana is forced to continue examining all re- ~A total of eleven (1) offshore wells were driled upto souroes for energy needs which consume more than June 2001, Five 6) wells showed some kind of hydro- ‘sixty percent (60%) of domestic earings annually 2 carbon presence, The most significant ofthese showsber: wasn the Abary well drilled by Shel in 1974. Samples ere recovered and reportedly tstod at 39 API. There were no commercial discoveries to date in Guyana’s Offshore. Inrecognitn ofthe need to promete and organize pe- ‘toleum exploration peraionsin Guyena the Guyana Geology and Wines Commission, charged wth he re- sponsbily for regulating al mining activity has Pe- toleum Dision which drecty response for ptt leum matrs. The preseraon and compilation of ‘hepetileum database the cortnang oflcencede- tals and contract matters ae all under the puniew of the Petoleum Division The interest in petroleum development by investors is & sleady and regular. Typically petroleum companies would be awarded petroleum prospecting lcence pur- ‘vant fo which there i a production sharing contract. In the event ofa commercial discover, the perloum companies would apply for a petroleum production l- cencefor the discovery area. The economic terms ‘and conditons would have already been estabished in the production sharing contract, ‘The Guyana Basin with its onshore extension is one ofthe remaining potently significant frontors. The technical alysis of the basn's prospects i ex ‘vemely positive. The county legal rameworkisun- encumbered and the economic terms very attractive. ‘The extra ordinary potential forpevoleum development in Guyana is stl o be achievedOfficial Name: Capital: Size: Population: Location: Religion: Official Language: Government: Independence: National Day: Judicial System: Geography: Climate: Economy: Currency: & COUNTRY PROFILE “The Cooperative Repub of Guyan’ Georgetown 215,000 sq. km or 83, 000 5 mis. 780,000 ‘Northeast Coast of South America, East of Venezuela, West of Suriname, North of Brazil Descendants of East Incians, Aicans, Europeans (being mainly English and Portuguese) Indigenous indians, Chinese Christianity, Hinduism, and ita Engish- (rural reolese) and dialects from Indigenous Indians. Patiamentary Representative system May 26, 1966 from the United Kingdom of Great Brain February 23, 1970 ~ Republic Day ‘Supreme Court of Judicature consistng ofa Courtof Appeal, High Court and Magistrate's Cour Four (4) main Geographical zones, ‘The Coastal Plains ‘The Intermediate Savannahs ‘The Interior Forests “The Mountanous Regions ‘Two (2 distinct rainy seasons Api July 1 November January Temperature 18° C 32°C ‘Agriculture, logging, mining, rum, seafood, UsS1.00= 6190.00 t& THE GUYANA BASIN: EXPLORATION SUMMARY Coastal Onshore 1941-42 1961 1965, 1968.87 1968-67 Dutch explorers noted flotsam pth near Krunkenal Pint, ‘north ip of Guyana, (il seeps reported previously, sought without notable success. “Three holes by N. Cannon inthe Wain, north tip of Guyana encountered pitch and gas. ‘Well riled in Weini Estuary encountered tary droplets First OiProspectng Licence awarded to Trinidad Lease- hold Lid. in partnership with Cental Mining and Invest- ‘ment Corporation. First genuine Exploration Well ile by Trinidad Lease. hod Lid, at Banana Landing Rosehall Township. Heavy cil drops noted. Well was abandoned and licence relin- quished, Two statigraphic boreholes died by Gevigical Surveys at Sheter Bet in Georgetown. Heavy oll drops observed just above basement Licences to explore for petroleum both onshore and of- shore awarded to Shell. Seisrics acquired in 1965/66 ‘Shel ited sic (6) wells along the basin nge to test for heavy ol. One wel aril Mahaicony encountered ev- dence of hydrocarbons. ‘Three boreholes criled within the Wain area ofthe North ‘West District by the Geological Surveys. The final pog- nosis was negative. ‘Numerous water wells were driled onthe coast. These wells have of- fereditlein the way ofhydrocarton indicators although the Morawahanna Wellin the North West District, driled in 1954, reportedly revealed oil shows.COishore expiration commenced more recent than the endeavours onshore. Mc Bride Oil and Gas Corpora- # tion was the ist to be awarded a licence in 1954. From al accounts, this company didnot perform. Several companies followed and seismics were acquired accordingly. Eleven wels were drilled with indications of vary- Ing signifcance = Offshore Me Bride Ol and Gas Corporation was avarded concession rights. Califia 01 Company awarded acreage in the offshore. r Conoco was awarded an expboraon cence. 60% igs were signed oTenneco in 1967 ‘Tenneco diled Guyana Offshore 1 and 2. Both encountered gas shows. Conoco/Srel group dite Bere 1 wich encountered gas. ‘Shell diled Mahsice 1 snd 2 which was abandoned dy. Shel diled Bertice2. Gas andl shows were encountered dung dling si Deminex eile Essequbo 1 whch was abandoned dry. Shel dled Abar 1. Gas and ollencounteed. Oi was reporely eso a 38° APL The Wel abandoned wthout esting, due to dicts. a Shell diled Mahaica 2.Nohycrocerbons were encountered. 1976 Demin cited Essequibo 2. Iwas abandoned dry 1870181 Denison Seagull acquired joint tie hts for concession. i 1961183 Denison Seagull acquired seismcs. 1988 Guyana Exploration Lc, and Perel jointly awarded concession under PSC acquired seismic. 1968 LLasmo and Broken Hil Proprietary acquired concession under PSC terms, e 1989 Lasmo(BHP acquired new seismic 1989 ‘Total joined GEL/Petrel and conducted seismics 1990 Total riled Arapaima 1. Itwas abandoned dry. i 1991 Mobil was awarded a licence, conducted nearshore seismics and marine selsmics 1994 ‘Mobil conducted marine seismics and regional study. e 1997 Century Guyana, Ltd. awarded an exploration licence. Two wells required tobe riled 1997 Manus Guyana Lid, was awarded an exoloraton licence. Manus was acquired by Repsol and 2% tie rights were assigned to AGIP Guyana Ltd. An exploration well was requred to be e tiled after seismics were acquired. 1998 (CGX Resources lnc. awarded an exploration loence 1999 (CGX and Maxus conducted seismic in their respective bu adjoining acreape. rn 1999 sso Exploration and Production Guyane Lid. was awarded the entre deepwater acreage, 1999 Maxus and CGX conducted seismics inthe acreages. 2000 Esso conducted an extensive regional aeromagnetic survey. o 2000 (CX driled Horseshoe, theirs exploration wel. No hydrocarbons were encountered, ‘Acreage licensed to Century, Manus, CGX and Esso constitute the mejor potion ofthe Guyana Ofshore, New interests are sill welcome where open areas exist& GEOLOGICAL SUMMARY Coastal Onshore > The extension of the basin onshore was indicated from ater well, boreholes and oll walls > Pre Quaternary outerops, resent clays and sands ar in dicatve of the sedimentary section, Offshore > Basin formed from rting of Pangaean super continents, > Spreading centres ofthe Antic and Proic-Carbboan devel ‘ped due to transform mation along offshore Guyana > The Prot-Canbbean opened as eaty as mid Jurassic time > The transform motion contributed othe sit in the area off shore fom Pomercon Guyana, > Mid Atlantic spreading changed direction in early Creta ‘ceous resulting in a major, basin wide unconformity due to an upiment phenomenon, > While extension motion continued until lae Tertiary time, the change in direction of mid Atantc spreading com pressed a zone of eater ransform motion. > Following this compression event there was a period of ‘passive margin history within the Guyana Basin. > Afterwards, te morphology matured io amore defined shelf With a sope break near the Cretaceous: Tertiary boundary. > The age ofthe sedimentary section, dates from late Trias- sic to early Jurassic. > Tertiary growth faulted structure coud be interpreted in ‘deeper parts ofthe basin where formations ofthe late Cretaceous wore located& Litthological interpretation from well correlation and selsmics provide the summarzed stratgraphy ofthe Guyana Basin Stratigraphy The Sub-Conformity is characterized by: > Amelamorphic basement which underies the early Cretaceous unconformity. > Conjecture about sediments below the unconformity (Juressic trough early Cretaceous). > Ariftbasin developed in he Pomeroon area off Guyana, > Red, weathered, phyltes, with quartz becoming gray-green at depth that ils fractures and is assoc ‘ated with quarztes at basement > The presence of salt postulated atthe easlem edge of the Guyana Basin, > Shallow marine conditions developed when ther margin subsided, The Cretaceous is characterized by: >> The metamorphic surface which represents the unconformity surface > The Stabroek Formation which consists of basa clastic sands, overiain by fuval and deltaic sediments which grade upwards nto shallow mare sands and sits with continued transgression. > The Potoco Formation which consists of Albian shelf carbonates that are massive shallow water ime stones, which overly the Stabroek Formation. > The Canje Formation which is a Cenomanian-Turonian anoxic shale that overes the Potoco, > The New Amsterdam Formation wich sa prograding clastic wedge consisting of sands and located in the late Cretaceous, > The Cretaceous ramp depositional seting altered by the formation ofa pronounced slope break inthe Tertiary which may be due to eastward migration of the Carbbean pate. 2camer wor AGE LITHOSTRATIGRAPRY oc ervone | cone | crv rare enn ‘conENTYNE GROUP 5 =< = ral = eee | =| <= Lithostratigraphy of Guyana Basin& Structure/Morphology Typically: ‘Ther medet suturing win Guyana Ofshor. Normal passive margn morphology s evident such as tite fu beck and hal graben geomet. ‘There is listric faulting during late Cretaceous. Norwest ending faut areinterpretednpe-Terary section ‘Ther are entisnal features such os the Pomeroen Ach wich could be inate of wrenching ‘Ther oter evidence of wrenching such as platform edges Features In Basin Sequence {A varity of features peculiar to this basin sequence ae: Therftbash deveopmentin Pomeroon area of Guyana. ‘The thick wedge of possibly sedimentary material, interpreted to the east of Offshore Guyana. ‘Te postulated presence of salt on the Demerara Plateau atthe eastem edge of Guyana Basin, which thas possible links to central Atantc transform and continental wrench associations. ‘The massive, mirc and bioclastc Imestone anomaly developed in an outer shelf environment which was submerged with continued transgression ‘The Berbice Canyon formed by maximum transgressive events that cut through the Canje shale tothe Potoco carbonates and contains graily low deposits o testa clastics encased in deep marine and prodela shales ‘The Pomeroon Arch wbich sa structural igh that separates the East Venezuela Basin from the Guyana Basin ‘The gronth faulted structures developed off he Ranks of the Pomercon Arch inthe east ‘The turbidte trend which is possibe off incisions formed mainly during lw stands. 14& > The sedimentary section whch by conjecture may exist neath the early Cretaceous unconformity , and be “Jurassic, could possibly contain a hydrocarbon source, Timing > Maturation ofthe Cretaceous source rock, the Canje Formation isa resutof burial beneath he late Creta- ceous and Tertiary sediments > Strong oll generation of the Canje shale inthe Guyana Basin was modeled tobe in progress as late as 65 milion years before present, therefore; > The Cane shales stilin the oll generation phase > Maturation ocurred earierin the Guyana Basin when compared wit the East Venezuela basin for exemple, because of greater subsidence tothe east which thickened the New Amsterdam Formation ofthe ate Creta cous, Reservoirs Opportunity for reservoir could be provided by: > The basal sands ofthe clastic Siabroek Formation which occurs over the sub-conformity but Below the ‘occurrence of the Canje Formation and source, > The Stabroek Formation which can offer more thal 60m of good quality reservoir sands in the proximal locations ofthe Basin. > The New Amsterdam Formation, deposited above the Canje source rock, > Clastics ofthe New Amsterdam Formation which under gravity could flow along the Berbice Canyon and become encased in deep marine shales, > The Potoco carbonates deposited conformably onthe Stabroek Formation and consist of some 100m net reservoir quaityimestone in some areas while nother areas nel reservoirs ess& > The Potoco carbonates which have better reservoir development in more basinal areas, > Numerous multe stacked reservoirs which coud be found inthe basin since all he formations overiving the Canje have considerable clastic composition that could contribute to net reservoir qualty zones that vary from a metre to several metres, : > The conjecture that there isan early Cretaceous section underlying the unconformity surface, This requires the recognition of reservoir potential in that section in some areas. Such Jurassic reservoirs are known tobe Profi producers inthe Gulf of Mexico, Seals > The Pomeroon Formation with its cyclic carbonates is a recognized seal > In the earier sequences, seals depend on the conditons. For example, sequences of limestone weich ‘develop in an outer shef environment and become submerged with continued transgression could become ‘excelent seals where secondary porosity does not develo, > Sealing can also occur when reservoir quality sands from the New Amsterdam Formation for example, become encased in deop marine sales as he sands flow under gravity along incisements to distal environ ments. > The occurrence of sequence boundaries throughout the section provide ample opportunity for sealing in ‘ome instances, such as where the Georgetown Formation overes the New Amsterdam Formation > The multiple stacked reservoirs found inthe offshore Guyana provide the opportunity for hyérocarbons tobe trapped at many iferentlevel,& PLAY TYPES. A variety of play types is possible in the Guyana Basin. Those that wre indicative from availabe data ‘sources are: ‘Subsunconformity Pay: (Jurasic) > Aleature located about 100km ofshore between te Bertice and Demerara Rivers in 3m of water > Anapparenty sedimentary sequence denied below the regional ety Cretacgous unconformity. > Faulting is vient iin the sequence. > The feature appears truncated by angular unconformity but the sediments also thin nto the Pomeroon Arch to the west > Probable Jurasicesercr could be realized thaugh evident pach cu features. Demerara Structure: (Cretaceous) > Located 150km rom the mot ofthe Essequiton about hm of water. > Stucure shows faulted four way osu > Structure could be a wench related antcne tat es wiin a slump area, > Time and depth depictions difer due to velocity eects resulting from low velocily Corenlyne shales and higher velocty Pomeroon carbonates. > Stucture encompasses both reser and source potential Berbice Canyon: (Cretaceous: Tertany) > A ssnicant feature epproxmatey 110 km long and Sim wide where tices the Cn. > Incision othe Potoco carbonates occurs in paces > Mulige erosional evens observed. ec& )> Mounds interpreted as sand prone gravity flow deposits found within the Canyon. > Mounds are deposited on an unconformable surface; the package appears detached: tops of package ex- hibit ampitude contrasts which fade tothe edges and suggest Ithologic changes of potential sand versus shale channel fi . > Nowell control ads risk tothe pay but the Canyon cuts mature source, placing potential reservoir sand in direct contact with source, Tertiary Turbdites: (Tertiary) > Mounded sedimentary features lie on the Cretaceous —Telary sequence boundary. > Located on the pronounced shelfbreak atthe te of he Terry slope break, his tend of gravily flow depos- ts is parallel tothe coast in less than 200m water depth. > Shell Abary Well was interpreted to penetrate the edge of one such mound and ol 39°API was reportedly recovered fom unknown depth > This play has improved wih new seismics by Manus and CGX. > Prospect evaluation is encouraging Distal Marine Environment For he ist ime exploration is being conducted inthis environment where water depths exoeed 200m. Specula tion about the potential is very poste, especially since the discoveries in deepwater southeast of Trinidad von ~Mobil was awarded a cence to explore this area but ther operations are vety preliminary. Play types expected could be extensions ofthe upper Cretaceous plays associated with far accommodations; upper Cretaceous plays associated with sedimentation in incised features such as Canyons: and lower Tertiary ‘urbidtes, Companies that have explored in Guyana have all pursued these pay types with degrees of prefer ‘ence determined by the contempory exploration philosophy. As a consequence, prospects frm all pay types have been identified but al the possible prospects rom al he play types are yet to be exhausted. The iitabon inthis regard is exploration data. Success will be achieved by the party that commits to data qualiy improve- ‘ments to upgrade prospects so that these prospects could be tested by driling and contol f seismic interpreta- tion improved with resulting well contol 21Arapaima Final Well Report 1990: ‘Total Guyana Exploration Consultants Ltd. 1985: Petroleum Appraisal Guyana Basin Vol. 1 & GGMC Internal Files and Documents, Guyana Basin A Regional Study: Mobil 1994, Guyana Tourism Board: Notes on Guyana Hydrocarbon Exploration Opportunities G/town Area Offshore Guyana S.A: J. Elliott 1996 Mobil Exploration Guyana In * Pomeroon Concession Report 1993. All inquiries shall be directed to: ‘Mr Brian Sure, Commissioner, Guyana Geology & Mines Commission (68 Upper Brickdam, P.O. Box 1028 Georgetown, GUYANA, South America. Phone: §92-225-3047 Fax: 592-225-3047 E-Maik me @slapongey ‘Mr. Newell M. Deion Manage, Petoleum Division Guyana Geology & Mines Commission 68 Upper Brickdam, P.O. Box 1028 ‘Georgetown, GUYANA, South America Phone: 592-225-2862 /(5)/() ext. 263