Now is the time to Core:

Mature Basins, Improved Technology, Reservoir Stewardship and the Counter Cycle
Over the last decade the oil and gas industry has experienced a relatively smooth growth
trajectory. As a result Exploration & Production companies have been paying a premium for
equipment and skills, as activity levels outpaced the ability to supply. However, the situation has
now done a rapid about turn and as an industry we are facing challenging times. Recent market
volatility has meant an industrywide reaction of reducing headcount and investment. Suggesting a
coring operation against this backdrop can seem counterintuitive, however this really is the time
to cut a core.
In the mature basins of the world; the North Sea, Gulf of Mexico, East Texas, core data is
likely to be almost archaic, and surviving cores in poor condition. Acquisition of new core data
should been seen as vital to extend the life of these mature basins, utilising new technology to
accurately reassess the reserves left in place, and increasing production efficiency.
An essential part of proper reservoir stewardship, and reservoir modelling, is accurate data,
especially as exploration moves towards unconventional reserves. Key to calibrating acquired data,
and ensuring data accuracy, is core. In relation to this, one of the arguments against coring has
always been the time and associated costs required to cut a core. In the current market place we
have seen a dramatic reduction in rates, and an increased availability of premium products and
personnel, at a reduced cost. This leads us nicely on to the argument for counter cyclical
exploration, companies with available cash to invest can take advantage of the current market
place.
Mantras in vogue within the oil industry, the classic do more with less springs to mind,
revolve around efficiency, improving current operations, and optimising production. As part of
this E&P companies are turning their attention to the rejuvenation of mature fields. E&P
companies are focusing on lower risk, mature fields and evaluating opportunities available in the
gap between production levels and potential capacity, combining this with utilising new
technologies for enhanced recovery. In brownfield reservoirs significant reserves remain, either
locked in place in tight sections of the reservoir, or bypassed completely. Maximising production
levels and increasing the estimated ultimate recovery has been on the agenda for E&P companies
for a while, but the change in the industry landscape has now made it a priority. This requires
integration and cooperation between all disciplines, the handling of a large, complex dataset,
leading to an improved understanding of proper well placement and design, in turn maximising
reservoir efficiency and stability.
In order to properly assess mature fields and look to enhanced production, accurate data
is required, with a focus on porosity and drainage capillary-pressure measurements. Detailed
geological, geophysical and reservoir analysis is vital, and crucial to calibrating acquired data and
accurate modelling is core. It is almost a certainty that the core recovered from the exploration
and appraisal phases is not in a condition to carry out worthwhile analysis on. Significant
enhancements have been made in all aspects of coring technology, improved coreheads, coring
systems and wellsite procedures are enabling the recovery of higher quality core. Fresh, high quality
core allows for a much improved data set. This in turn will enable E&P companies to take
advantage of the general improvements in coring and core analysis technology, whilst taking the

opportunity to utilise specialist coring equipment. With better data E&P companies are able to
optimise production and generate better reservoir models, through characterisation of pore
systems, based on core analysis and information gathered by measuring reservoir porosity,
permeability, fluid saturation, grain density and lithology.
The reassessment of mature fields is one of the ideal applications for improved oil in
place evaluation technologies such as, Sponge Coring, SOr, & Liquid Trapper. The information
obtained from quality core can be used to identify reserves left in place, bottlenecks, and to reassess
key reservoir descriptors allowing for the optimisation of redevelopment plans. High quality core
data allows for the development of models that can lead to genuinely world class well and reservoir
management.
Those E&P companies that invest in industry leading modelling can expect a 15% increase
in production compared to the industry average. This is based on full and complete formation
evaluation to truly understand the performance and capacity of a reservoir. Despite the current
climate, care does need to be taken over cost cutting. Reducing formation evaluation investment
can have significant impact on future revenue.
The majority of data obtained for modelling is collected using electronic methods such as
MWD/LWD & wireline tools. Although these methods utilise sophisticated and impressive
technology, the reality is that these tools are limited by their calibration and how finely they can
take measurements. The only way to carry out direct, intricate measurements on the reservoir rock,
and to truly understand the complexities of a reservoir, is by taking a core. Only through taking a
core can you properly understand the depositional environment of the formation, and provide
information on the presence, distribution and recoverability of hydrocarbons. Cores provide the
information to properly calibrate logs, model the reservoir and reveal parts of the lithology that
may be undetectable by electronic logging methods.
Reservoirs, of course, are not uniform strata, rather they are complex entities with multiple
variations in formation, permeability, porosity, and capillary pressures. They may change in
predictable ways or, as with carbonate reservoirs, vary in a random manner. This is becoming more
and more true as we move from an era of large, relatively homogenous, reserves to increasingly
complex unconventional reservoirs, with corresponding levels of operational risk. In
unconventional reservoirs, such as carbonates, tight sandstone, and organic rich shales, we see
many more challenges, including low permeability, or complex and difficult to categorise pore
systems.
The key to successful reservoir management is a committed, cross discipline team, with a
sense of long term stewardship, managing high quality accurate data. Formation Evaluation data,
specifically core data, is used at every stage of a reservoirs life cycle, and poor quality data affects
decision making, further increasing operational risk and ultimately effecting the overall strategy
and profitability of an E&P company.
Oil and Gas exploration is, as ever, about risk vs reward. Most oilfield companies take a
pro cyclical approach, meaning in times of recession they react by cutting expenditure, investment
and headcount in order to survive. This is reflected too in the estimated 40% reduction in global
exploration expenditure. However, for those companies with a healthy balance sheet, a recession

holds great opportunities. Despite an undeniable need to preserve short-term cash, a recession can
present a chance to position oneself for future growth and take advantage of a depressed market
with undervalued assets and services.
In short, the message of buy low and sell high can be seen as applicable to oil and gas
exploration. As opposed to the pro-cyclical methodology of investing when the oil price, and costs
are high, counter cyclical investment advocates maximising the value of every dollar invested.
Bowleven estimate that counter cyclical exploration saves them approximately 30%- 40% on every
well, and Faroe Petroleum are estimating savings as high as 50% on specific wells. If this is united
with an approach to target the low risk - high impact projects, prospects that are commercial in
the current climate become even more so as the economy improves, with E&P companies
benefiting from lower discovery & appraisal costs. For those E&Ps with capital the possibility
exists to partner with more experienced E&P companies to take advantage of the opportunities
that are out there.
Figures for bringing a field to production vary between 3 and 10 years, by which time
global macroeconomics will be driving the industry well into recovery. A fully evaluated field ready
to be brought online will be a significantly more valuable asset upon industry recovery, and at this
time lower investment will achieve this result.
One of the common arguments against coring has always been the cost in terms of rig
time. In the current market, coring is exceptionally good value with rig rates down by a third and
record-low service costs, the cost of a coring operation is significantly reduced. Combined with
new technologies, such as long barrel application, improved PDC Cutter technology, and Torque
& Vibration control subs, this means that more core can be cut in a shorter period of time, and at
a lower cost.
The reduction in costs is only one of many benefits however. Given the global reduction
in coring operations, approximately 90%, planned operations are unlikely to have to compromise
on equipment quality, or lack back-up equipment. It is also safe to assume that the most competent
personnel will be assigned to any active operations. The overall result being a high quality coring
operation, with the best resources, for a lower level of investment.
As demonstrated above the benefits of Coring are extensive. Core data is used throughout
the life cycle of a well to make fundamental strategic decisions. In the current climate increased
data quality is critical to reassessing reserves left in place, improving hydrocarbon recovery and
maintaining proper levels of reservoir stewardship. Target reservoirs are also getting progressively
more complex, requiring extensive geo-modelling. These models are increasingly multifaceted and
complicated. In order to maximise production efficiencies accurate reservoir data should be
entered into these models rather than standard estimates and analogues. Despite electronic logging
methods becoming increasing sophisticated, core data is still essential to proper calibration of logs.
The best reservoir models are built on a solid foundation of core data. Core data is of utmost
importance, though one of the arguments against it has always been the cost. With significant
reductions in rig rates, service costs, improved coring technology, and increased equipment &
personnel availability, it is possible to get high quality core for a relatively low price. Now truly is
the time to core.