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The AAPG/Datapages Combined Publications Database
Houston Geological Society Bulletin
Abstract
Abstract: How an Independent is Using
3-D
Seismic and CAEX Technology to Reduce Risk


By
Consultant, Houston, TX
Three-dimensional (3-D
) seismic and computer-
aided exploration (CAEX) is of growing
significance in the oil and gas industry.
Independent oil and gas firms that correctly
implement this technology can earn exceptional
rates of return on investment because
of substantially reduced finding costs at
reduced levels of risk. Advanced technology
lowers finding costs by condemning
prospects before they are drilled (reducing
the number of wells drilled), and improving
the finding rate (reserves per well) of
successful wells. Also, it reduces the number
of wells required to develop a discovery,
and locates reserves that otherwise
would not have been found because of the
inadequacies of 2-D technology.
Until recently, the primary users of 3-D
were major companies, and the primary
application was the redevelopment of older
fields. Texas Meridian Resources Corporation
is an example of an independent that
uses
3-D
and CAEX for all its exploration
prospects. Case studies are presented that
illustrate how Texas Meridian Resources
aggressively uses modem technology to
improve economics. An exploration program
of onshore prospects is presented that
compares costs, success rates, finding rates,
etc., for 2-D versus
3-D
in order to calculate
finding costs per barrel of oil or MCF
of gas. While more money is spent initially
on the
3-D
alternative, this is more than
offset by savings from fewer dry holes. 2-D
versus
3-D
finding costs are then compared
to the selling prices for oil and gas to
arrive at a rate of return index for each alternative.
Several new field discoveries that
resulted from
3-D
surveys on onshore wildcat
prospects are also illustrated.
The oil and gas industry has been in decline
for 14 years as oil and gas prices
plunged and the major oil companies withdrew
from domestic exploration. 3-D
and
CAEX technologies are creating new investment
opportunities for independent exploration
and production companies.
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