Unconventional Resources Technology Conference

Geologic Interpretation and Assessment of

Early Cretaceous Shale Oil and Gas
Potential in Austral Basin, Argentina

H.
H. Belotti,
Belotti, F.
F. Pagan,
Pagan, A.
A. Perez
Perez Mazas,
Mazas, M.
M. Agüera,
Agüera, J.
J. Rodriguez,
Rodriguez,
J.
J. Porras,
Porras, G.
G. Köhler,
Köhler, G.
G. Weiner,
Weiner, G.
G. Conforto,
Conforto, M.
M. Cagnolatti
Cagnolatti

Petrobras Argentina S.A.
Petrobras Argentina S.A.

Denver, August 2013

Introduction

‰ Regional Framework

‰ Palermo Aike Formation

‰ Stratigraphy
‰ Mineralogy
‰ Geochemistry
‰ Structure
‰ Overpressure

‰ Prospective Resources
 ´ Location 72°W
72°W 70°W
70°W 68°W
68°W

50°S
50°S

¬
Km
0062 .5125 km
250 37 5 500
500

RI
O
CH
IC
O
HI
GH 52°S
52°S

¬
AN
DE
AN

DD
rry
RA

yG
Ga
NG

ass

OOi
E

ill
W
We
ettG
Gaa
ss
‰ Southern Argentina 54°S
54°S
‰ Austral Basin 170.000 sq. km
‰ Study Area: 60,000 sq km
‰ Prospective Area: 25,000 sq. km
100 km
‰ EUR: 6.5 billion boe Cretaceous to Lower Tertiary
Conventional Reservoirs
Stratigraphic Column

CONVENTIONAL
CONVENTIONAL RESERVOIRS
RESERVOIRS

Lower
Lower Magallanes
Magallanes (Maastrichtian
(Maastrichtian to
to Eocene)
Eocene)
Shallow
Shallow Marine
Marine Sandstones
Sandstones

Springhill Fm. (Berriasian

Springhill Fm. (Berriasian to
to Valanginian)
Valanginian)
Shallow
Shallow Marine
Marine Sandstones
Sandstones

Serie Tobífera (Jurassic)

Serie Tobífera (Jurassic)
Volcanic
Volcanic Rocks
Rocks

MAIN
MAIN SOURCE
SOURCE ROCK
ROCK

Lower
Lower to
to Middle
Middle Palermo
Palermo Aike
Aike (Valanginian
(Valanginian to
to
Aptian)
Aptian)
Marine
Marine Mudstones
Mudstones
 Regional
Regional 2D
2D Seismic
Seismic Lines
Lines

Andean
Andean Range
Range Foredeep
Foredeep Forebulge
Forebulge

W
W E
E

1000 m

50 km
Dry Gas Wet Gas Oil Immature

Foreland
Foreland Basin
Basin Conventional
Conventional Reservoirs
Reservoirs

Sag
Sag Main
Main Source
Source Rock
Rock // Unconventional
Unconventional Prospective
Prospective Resource
Resource

Syn-Rift
Syn-Rift Wells
Wells

Pre-Rift
Pre-Rift

100 km
 Regional
Regional 2D
2D Seismic
Seismic Lines
Lines

Andean
Andean Range
Range Foredeep
Foredeep Forebulge
Forebulge

W
W E
E

1000 m

50 km

Dry Gas Wet Gas Oil Immature

Foreland
Foreland Basin
Basin Conventional
Conventional Reservoirs
Reservoirs

Sag
Sag Igneous
Igneous Sills
Sills –– Fractured
Fractured Reservoir
Reservoir

Syn-Rift
Syn-Rift Main
Main Source
Source Rock
Rock // Unconventional
Unconventional Prospective
Prospective Resource
Resource

Pre-Rift
Pre-Rift Wells
Wells

100 km
Overview of the Austral Basin Unconventional Reservoirs

Is there any Shale oil and Shale Gas potential

in the Palermo Aike Formation ?
 Lower
Lower Palermo
Palermo Aike
Aike
Hydrocarbon
Hydrocarbon Window
Window (Present
(Present Time)
Time)

‰ Regional NW-SE trending hydrocarbon windows

‰ Oil window start at ~ 2,100 meters depth (%

Ro: 0.6 - 1.3) in the eastern flank of foredeep
basin (10,000 sq km *)

‰ Wet Gas window is reached at ~ 3,500 meters

(% Ro: 1.3 – 2.0) in the foredeep (5,000 sq km *)

‰ Dry Gas window at ~ 4,300 meters (% Ro: > DD

rry

OOi
yG
2.0) in the fore-deep and foothill to the west Ga

ill
ass

(15,000 sq km *). This unit outcrops in the Andean W

We
ettG
Range Gaa
ss

** In
In the
the study
study area
area 100 km
 Río
Río Mayer
Mayer Fm
Fm =
= Palermo
Palermo Aike
Aike Fm
Fm
Andean
Andean Range
Range Outcrop
Outcrop
Albian
Albian to
to Cenomanian
Cenomanian
44 Middle
Middle to
to Upper
Upper Río
Río Mayer
Mayer
33
11 22

44

0.6 - 1.8 %

Guanaco
Guanaco River
River < 0.5 %

Hauterivian
Hauterivian to
to Aptian
Aptian
33 Middle
Middle Río
Río Mayer
Mayer 33

1.6 - 2.8
Valanginian
Valanginian
Lower
Lower Río
Río Mayer
Mayer
22
Jurassic
Jurassic Syn-Rift
Syn-Rift 22

11
11 TOC: wt.%
Ricchiano, 2011
 Lower
Lower and
and Middle
Middle Palermo
Palermo Aike
Aike (Subsurface)
(Subsurface)
DEPTH
(M) 160 SONIC 10 0 TOC 4 0 S1 4
OIL
SHOWS GR RES TOC LOG S1 LOG TOTAL GAS 5000000
0 200 0.1 10 0 4 0 4 500
Middle Palermo Aike

Upper Hot Shale

SB
(800’)
m (800’)

Hot Shale
Lower Palermo Aike

250 m
250

SB

Lower Hot Shale highstand

system tract
MFS
transgressive
TS system tract

lowstand
system tract
SB
 Stratigraphic Cross Section
W
W E
E
Outcrop
Guanaco River
Middle Palermo Aike

UHS *
*
UHS *
*
*
*
HS
*
*
HS
Lower Palermo Aike

*
* *
*
*
* *
* *
LHS
* *
*
LHS
*
* *
*
*
* *
* 100 m

Springhill Fm

Jurassic Syn-Rift

•• Flattened
Flattened at
at the
the Top
Top of
of Upper
Upper Hot
Hot Shale
Shale
•• Total
Total Length:
Length: 180
180 km
km

*
* Oil
Oil and
and Gas
Gas shows
shows
100 km
 Stratigraphic Cross Section
N
N S
S
Middle Palermo Aike

*
UHS
UHS * * *
*
* *
* *
* * *
*
* *
* *
*
Lw Palermo Aike

HS
HS * * *
* * *
*
* *
*
*
* * * *
* *
* * *
* *
LHS *
* *
*
*
* *
* LHS *
* *
*

Springhill Fm
Jurassic Syn-Rift
100 m

•• Flattened
Flattened at
at the
the Top
Top of
of Upper
Upper Hot
Hot Shale
Shale
•• Total
Total Length:
Length: 100
100 km
km

*
* Oil
Oil and
and Gas
Gas shows
shows
100 km
 Core
Core Description
Description ‰ Upper Hot Shale
SONIC
SONIC
Oil
Oil ‰ Aptian
Shows
Shows
GR
GR RES
RES
m ‰ Intermediate to distal marine

‰ Dark gray mudstones and subordinated

bioturbated calcareous mudstones, and
layers of siltstone, fine grain sandstones
2700
2700
and tuff
Middle Palermo Aike

‰ Thickness: 30 to 90 meters

Upper Hot Shale

‰ Hot Shale

‰ Hauterivian to Barremian

‰ Distal marine

‰ Laminated to parallel-bedded very dark

Hot Shale gray mudstones with few centimeter
2850
2850 scale storm layers and tuff
‰ Thickness: 60 to 140 meters
Lower Palermo Aike

Lower Hot Shale

‰ Lower Hot Shale

‰ Valanginian to Hauterivian

‰ Intermediate to distal marine

‰ Dark gray mudstones and

subordinated calcareous mudstones
3000
3000
and Limestone
‰ Thickness: 50 to 120 meters
 Mineralogy

Thin section: Non calcareous mudstone and

non calcareous bioclastic (B: radiolars and
foraminifers) replaced by feldspars and minor
calcite (pink). In the center clasts tuffaceous
concentration
MEB: Non calcareous mudstone/Bioclastic
mudstones with clay-siliceous matrix.
Quartz microcrystal (Q). Interparticle
pores (Ip) and microporosity in clays (Ma)

DRX Graphics
Core: Laminated non calcareous
mudstone and organic matter
1-2-Tr6
(xx17,13)

(dark gray), interlaminated with

wackes, siltstones and tuffs 0% 20% 40% 60% 80% 100% 0% 50% 100%

levels (light gray)

QUARTZ K FELDSPARS SMECTITE CLORITE
PLAGIOCLASE CLAYS ILLITE
ILLITE/SMECTITE
CALCITE SIDERITE
CAOLINITE
DOLOMITE PYRITE
BARITINE MAGNETITE
 Mineralogy Ternary Plot
Total Clay Wells
0.00 1.00

CLAY-RICH
CLAY-RICH GAS-BEARING
GAS-BEARING
MUDROCK
MUDROCK

‰ Ternary Plot based on quartz, total

clay and total carbonate
BARNETT
0.25 0.75
BARNETT
‰ A combination of core- and log-based
mineralogical data from six wells in
the study area was compared with
0.50 0.50 Barnett and Eagleford shales
ES

‰ Palermo Aike (Lower and Middle

AS

BR
RE

Member) is more comparable with

ITT
NC

LE
SI

Barnett shales

NE
S

SS
NE
E

IN
TL

0.75 0.25

REC
IT
BR

AS
ES

1.00 0.00

0.00 1.00

Quartz EAGLEFORD Total Carbonate

EAGLEFORD
 HI
HI vs.
vs. OI
OI
Lower
Lower and
and Middle
Middle Palermo
Palermo Aike
Aike
I
Main
Main Source
Source Rock
Rock

TOC
II

HC/g TOC
‰ Marine laminated to parallel-bedded

(mg HC/g
very dark gray Non Calcareous Mudstone
TOC from 0.5 to 3.0 wt.%

HI (mg
‰

Kerogen II to III

HI
‰

‰ HI from 150 to 300 mg HC/g TOC III

‰ S1 from 0.5 to 2 mg HC/gRock

IV

OI
OI (mg
(mg CO2/g
CO2/g TOC)
TOC)
S1
S1 (mg
(mg HC/g
HC/g rock)
rock) S1
S1 +
+ S2
S2 vs
vs TOC
TOC

Non-Indigenous
Non-Indigenous HCs
HCs Good
Good SR
SR
S2
+ S2

Moderate
Moderate SR
SR
S1 +
S1

Indigenous
Indigenous HCs
HCs

TOC
TOC (wt.%)
(wt.%)
TOC
TOC (wt.%)
(wt.%)
 Structural
Structural Map
Map Top
Top Upper
Upper Hot
Hot Shale
Shale Isopach
Isopach Map
Map (LHS
(LHS –– HS
HS and
and UHS)
UHS)

ulge e bulge
Foreb Fo r

Andean Range
Andean Range

eep eep
Fo re d Fored

meters
meters
100 275 450
2150 3000 SONIC
SHOWS GR
RES
m

Middle Palermo Aike

‰ Lower to Middle Palermo Aike ( Valanginian to Aptian)
‰ Average Thickness 250 m, thickening to the SW Upper Hot
Shale
‰ Anomalous thickness in NW of study area
Hot Shale
Dash green line: beginning of oil window
Lower Palermo Aike

Lower Hot
Shale

100 km
 Pressures
Pressures Well
Well Profile
Profile Sonic
Sonic (us/feet)
(us/feet)
Overpressures
Overpressures Distribution
Distribution

50 km

0 kg/cm2 360

‰ Pore-pressure based on drilling mud weight, drillsteam and wireline formation test

‰ Increasing transit time coincident with strong gas shows during drilling

‰ Overpressure anomaly (difference between hydrostatic and formation pressure)

detected in NW area
100 km
 Regional
Regional 3D
3D Seismic
Seismic Line
Line
N
N SS

UHS
HS

LHS

300 m
Springhill

Jurassic Syn-Rift

3 km

Source
Source Rock
Rock // Unconventional
Unconventional Prospective
Prospective Resource
Resource

Structural
Structural Map
Map Base
Base Lower
Lower Hot
Hot Shale
Shale Bouguer
Bouguer Gravity
Gravity Map
Map

RI
O
CH
IC
10
10 km
km

O
HI
GH
AN

NN
DE
AN
RA
NG
E

100 km
 Polygonal
Polygonal Fault
Fault System
System (PFS)
(PFS)

N N

RMS
RMS amplitude
amplitude Top
Top Hot
Hot Shale
Shale (window
(window +/-
+/- 66 ms)
ms)

2050
6000

2100
4500

2150
3000

2200
1500

2 km 2250 2 km 500

Time
Time Structural
Structural Map
Map Top
Top Hot
Hot Shale
Shale

‰ PFS are closely spaced (1 -2 sq km)

‰ Restricted to low-permeability facies in

foredeep and transition w/ Forebulge

‰ PFS orientation is almost isotropic

indicating a non-tectonic origin

‰ Role of PFS in fluid migration remains

poorly understood
100 km
10
10 km
km
 Drilling Shale Oil Sweet Spot
Flaring
Flaring excess
excess gas
gas during
during drilling
drilling Oil
Oil Sample
Sample

UHS
HS

LHS

i ll
gh
rin
Sp Jurassic Syn-Rift

Computed
Computed Tomography
Tomography Fractures
Fractures identified
identified in
in Hot
Hot Shale
Shale

100 km
Lower and Middle Palermo Aike
Main Source Rock

Oil
Oil saturation
saturation index
index (OSI)
(OSI) =
= S1
S1 xx 100/TOC
100/TOC (Jarvie,
(Jarvie, 2012)
2012)

OSI > 100 mg/g

Oil crossover effect

Upper Hot Shale
(980’)
m (980’)

Hot Shale
300 m
300

Lower Hot Shale

Assessment
Assessment of
of the
the Prospective
Prospective ‰ Prospective Resources are estimated volumes
Resources
Resources associated to Oil and Gas, to be potentially
recoverable but which have not yet been tested
(hydraulic fractures)
‰ Non historical hydrocarbon production was
obtained from Palermo Aike Formation in Austral
Basin
‰ We estimate 1.0 billion barrels of oil and 85
TCF of gas in prospective area

100 km
 Conclusions
‰ Valanginian to Aptian Palermo Aike Formation is a shale Prospective
Resource for oil and gas in Austral Basin

‰ Geologic interpretation allowed to define most favorable areas to prospect

gas and oil

‰ In the first stage exploration has been focused in the shale oil sweet spot
areas, characterized by Vitrinite Reflectance (0.9 – 1 % Ro), overpressure,
thickness anomaly, TOC and open fractures

‰ First exploratory well presented strong gas and oil shows during drilling

‰ Nowadays, we are evaluating the best completion, including the hydraulic

fracture for this well

‰ Future locations are under evaluation

 Thanks
Thanks for
for your
your attention
attention

Perito
Perito Moreno
Moreno Glacier,
Glacier, Lago
Lago Argentino,
Argentino,
Santa
Santa Cruz
Cruz Province
Province