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SOLI TON Ltd Statement of Capabilities High Resolution Electro Magnetic technique for Hydrocarbons Exploration and Drilling Risk reduction 2012 2012

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Page 1: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

SOLI TON Ltd

Statem ent of Capabilit ies

High Resolution Electro Magnetic technique for Hydrocarbons Exploration and

Drilling Risk reduction

2012 2012

Page 2: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 2

The Statem ent

Our m ission is to provide reliable and cost effect ive solut ions

for Pet roleum com panies in area of hydrocarbons explorat ion

and product ion.

Our vision is to design the effect ive applicat ion of

Elect rom agnet ic methods in cooperat ion with other

geophysical m ethods to provide Clients with effect ive tool for

explorat ion risk reduct ion allowing users to save t ime and m oney, im prove

inform at ion accuracy, and have bet ter support for decision-m aking.

Our value lies in bridging the gap between geophysical inform at ion and

detect ion of hydrocarbons saturat ion in reservoirs to increase a drilling success

rat io

Our solut ions are designed to simplify the effect ive use of integrated

elect rom agnet ic and seismic technologies to m anage geological and geophysical

inform at ion through easy- to-use, collaborat ive tools. Our “ know-how” patented

techniques provides high profitabilit y rate of explorat ion stage.

W e help nat ional and private oil com panies to save t im e, lower costs, increase

profit s, and ease the im plem entat ion of explorat ion, development and

product ion plans.

Dr. Alexander G. Nebrat General Director Soliton Ltd

Page 3: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 3

Contents Execut ive Sum m ary

I nt roduct ion

Com pany Profile

Experience

List of projects

Main Clients

References

Methods

Field Acquisit ion

Field Equipment

Vessels and Vehicles

Data QC and Processing

Software

I ntegrated I nterpretat ion

Case Study

Am endm ents

Page 4: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 4

Execut ive Sum m ary

SOLI TON Ltd is an innovat ive full-service geophysical, geosciences consult ing and survey services enterpr ise specializing in the applicat ion of integrated Electrom agnet ic and Seismic m ethods for hydrocarbons, geo-engineering, and geo-environm ental invest igat ions, to the pet roleum , engineering, environm ental, and mining indust ries.

THE MI SSI ON The principal service missions at Solit on Ltd is to provide the Clients with a com prehensive inform at ion for r isk reduct ion and dr illing decision support in hydrocarbons explorat ion projects.

CORE CAPABI LI TI ES

Soliton ltd has diverse capabilit ies with the applicat ion of geophysics and geologic character izat ion techniques for pet roleum explorat ion/ exploitat ion, shallow water and m arine geophysics, land environm ental and engineering studies, an integrated geological and geophysical surveying and prospects ranking. Working with affiliate consultants and business partners, Solit on ltd can form dedicated team s to handle a var iety of tasks, including survey design and planning, m ethods and technology integrat ion, f ield data acquisit ion, data processing, and geophysical/ geologic m apping and m odeling.

EXPERI ENCE The com pany has m ore than 35 years experience throughout the Russia, CIS and around the world.

SERVI CES Soliton Ltd geophysical services for hydrocarbons explorat ion, engineering and environm ental applicat ions covers a broad range of onshore and shallow water m arine invest igat ion techniques. Depending on the survey object ives, we can em ploy any single Elect rom agnet ic m ethod or integrate several m ethods to develop a com prehensive suite of geophysical and geologic inform at ion m odels.

ELECTRO MAGNETI C

Soliton Ltd offers a wide range of electrom agnet ic profiling survey capabilit ies designed for applicat ion to detect hydrocarbons in site, rank oil and gas prospects to reduce a drilling r isk, minerals and ore explorat ion, hydrogeology and groundwater studies, archaeological studies, and m any other site invest igat ion applicat ions. • High Resolut ion Elect rom agnet ic m ethod for de- r isking of hydrocarbons

prospects • Electrom agnet ic survey for Ore and Mineral deposit s explorat ion • Borehole–to-Surface EM method for product ive reservoir m onitoring • Electrom agnet ic Engineering survey • Marine Elect rom agnet ic survey for Geo-Hazard prognoses for well site

and pipelines locat ions • Electrom agnet ic survey for Water Sources invest igat ion • Groundwater I nvest igat ions and Hydro-geologic Characterizat ion

STAFF Soliton ltd is supported by qualified geophysicists, geoscient ist s, f ield m anagem ent and technical personnel experienced with geophysical survey m ethods for pet roleum explorat ion applicat ions, geotechnical, geo-engineering, and environm ental projects. The com pany total professional experience consist of m ore than 800 years. Solit on Ltd includes following divisions: • On- land EM acquisit ion crew • Marine acquisit ion crew • Navigat ion team • Data Processing and I nterpretat ion crew • Finance and Market ing dept .

CONTACTS For addit ional technical inform at ion please contact . Director Dr. Alexandr Nebrat tel: + 7 (86141) 53814m fax: + 7 (86141) 53814E-m ail: nebrat_2004@m ail.ru 38, Krasnogvardeyskaya st r . Gelendzhik, 353461, Russia

Page 5: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 5

Managem ent and St ructure Managem ent

General Director Dr. Alexander G. Nebrat Doctor of Geological Science Magister of Geophysics Graduated Moscow State Universit y (1974) . Author of 12 invent ions 45 scient if ic publicat ions

Deputy Director Chief Geophysicist

Dr. Sochelnikov V. Viktor Doctor of Mathem at ics, Professor, Author of 12 invent ions 123 scient ific publicat ions

Ow nership The Limited Liabilit y Com pany

Regist rat ion Russia Federation, Kuban District Gelendzhik city

Com pany organisat ion

Soliton Ltd includes following divisions: • On- land EM acquisit ion crew • Marine EM acquisit ion crew • Navigat ion team • QC and Data Processing dpt

• EM data processing team • Seismic data processing team

• I ntegrated I nterpretat ion team • Finance and Market ing dept . • HSE dpt .

Headquarter locates in Gelendzhik cit y of Russia Regional and partner offices locate in

Moscow, China, Vietnam , Canada

Manpow er Soliton Ltd perm anent staff consists of 41 specialist s in

Geophysics, Geology, Elect ric, Engineering. Research capabilit ies are supported by 3 Doctors of Geology and Geophysics science.

Contacts

Soliton Ltd 38, Krasnogvardeyskaya st r . Gelendzhik, 353461, Russia tel: + 7 (86141) 53814 fax: + 7 (86141) 53814 E-m ail: nebrat_2004@m ail.ru Director Dr. Alexandr Nebrat

Page 6: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 6

Com pany Profile Base Act ivit ies § High Resolut ion Elect ro Magnet ic Survey for

De- Risking of Hydrocarbons Prospects § Electrom agnet ic survey for Ore and Mineral deposit s

explorat ion § Borehole – to - Surface EM study for Product ive Reservoir

m onitor ing § Electrom agnet ic survey for Engineering const ruct ion

projects § Marine Elect rom agnet ic survey for Geo-Hazard prognoses

for Well Site and Pipelines locat ions § Electrom agnet ic survey for Water Sources invest igat ion

Brief History Geophysical service com pany SOLI TON ltd is a pr ivate enterprise form ed as a team of professional geophysicists.

SOITON Ltd was established m ore than 30 years ago in Gelendzhik cit y of Russia Federat ion.

The com pany inherit t he elect r ical prospect ing techniques and teams of YMG Ass. and YMGNG Trust .

Since 1993 it becam e a private enterprise SOLITON Llp.

Solit on Ltd uses the High Resolut ion Elect rom agnet ic (HREM) m ethod which originated in the 1990’s, and was successfully patented in 1989 - 2001.

During last twenty years SOLI TON Ltd cont inues to develop technology com ponents proprietary sources, receivers, acquisit ion systems and data processing software for HREM.

Patents and Cert ificates

I ntellectual property of Solit on Ltd consists of 7 patents and copyright cert ificates

Licenses Obtained cert if icat ion on equipm ent , software, safety m anagem ent of acquisit ion operat ions in protected and sensit ive environm ents

Page 7: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 7

Experience Total exper ience consist of 35 years of professional work and more than 35 000 km of EM lines acquired

EM projects w orldw ide

EM projects in Black - Caspian seas region

Kuban region and N.Caucasus

Page 8: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 8

List of Projects Hydrocarbons Explorat ion

Region, area year Client Vietm am 2011 VietGazProm Vietnam 2011 VietSovPet ro China Huabey 2010 China Hybey Oil China Pacific ocean 2010 Coben China Shengly sea 2010 Coben Vietnam 2010 VietSovPet ro Kurchanka 2010 KNGF Kuban region 2010 MNR RF Caucasus area 2010 YUFO W.Kubah t rough 2010 KNGF China 2009 Coben China Sychuan 2009 Coben Adygeya rep 2009 KNGF Novo- Azov 2009 KNGF Kuban region 2009 MNR R Tersinskaya area 2009 Rudneftegas Astrakhan area 2009 Astrakhan-Dialog China Bokhat 2008 Coben Syria 2008 Syria Pet roleum Kuban region, Area 3 2008 KNGF Kuban region, Area 4 2008 MNR RF Kuban region, Area 5 2007 KNGF Pre-Caspian block 2007 Lukoil NW Caucasus 2007 MNR RF W Syberia 2007 TNK Berezovsko- Zhuravskiy area 2006-2011 LukOil VNG I lovatskiy area 2006-2011 LukOil VNG Kudino Rom anovskiy area 2006-2011 LukOil VNG Levoberezhny area 2006-2011 LukOil VNG Narim anovskiy area 2006-2011 LukOil VNG Potem kinskiy area 2006-2011 LukOil VNG Chernushinsko- Logovskoy area 2006-2011 LukOil VNG Levoberezhie 2006 KNG Saratov- Precaspian 2006 LukOil NW Caucasus 2006 MNR RF Tem ruk South area 2006 Technoton Adygeya. area 2005 MG RF Maykop 2005 MG RF kalmykiya 2005 I nteca Kalmykia 2005 Kalmneft Beysugckoe field 2005 KNG Svistelnikovskaya area 2005 KNG Caspian sea 2005 MNR RF Oset iya area 2005 MGK NE Caucaus 2005 MNR RF Tem ruk bay, Azov sea 2005 Priazov Oil Tem ruk South 2005 Technotron Tizdar area 2005 Technotron

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Statem ent of Capabilit ies

Soliton Ltd 9

Azov sea, blocks 2005 ChNGз Golit sinskoe field 2005 ChNG Semisvodnaya 2005 CHNG Mariy El, area 2004 MGK Tem ruk bay, Azov sea 2004 Priazov Oil Azov sea 2004 ChNG Orenburg area 2003 ONG Tem ruk South area 2003 Technotron Zyubenskiy are 2002 Rudneftegas Korea 2001 KUK Violgda area 2001 NaftaSib Akhtznizovskiy lim an 2000 KGP Karazhanbas field 1989 MG USSR Kalam kas field 1986 MG USSR Kashagan field 1984 MG USSR Borehole- to – Surface study

W ell Year Client Chunakovskaya 1 2006 KHG Morozovskaya W-1 2004 KHG Sladkovskaya - 15 2004 KHG Sladkovskaya S- 1 2004 KHG Belikskaya W- 4 2006 KNG Glubokaya-1 2003 KHG

W ater Sources invest igat ion

Area Year Client Dita area 2010 Private Com pany Brovary cit y 2009 Private Com pany Novorossiysk city 2009 Private Com pany I nreco- Kabardinka 2006 Private Com pany Bakanskiy 2006 Private Com pany Khmyshki 2006 Private Com pany Golubit skaya 2005 Private Com pany Raevskaya 2005 Private Com pany Shirokaya 2005 Private Com pany Arnavir city 2004 Private Com pany Arm avir plant 2004 Private Com pany Arm avir factory 2004 Private Com pany Gelendzhik cit y 2004 Private Com pany Markhot 2004 Private Com pany Gelendzhik cit y 2003 Private Com pany UAE 2001 NaftaSib

Engineering survey

Area Survey type Client CTC Novorossiysk Engineering CTC CTC Novorossiysk Engineering CTC Tam bov area Engineering MNR RF Caucasus 2003 Monitoring MNR RF Caucasus 2002 Monitoring MNR RF Tam an area Monitoring MNR RF Greece Davrion Archeology Private Com pany

Page 10: SOLITON Ltd · Statement of Capabilities Soliton Ltd 2 The Statement Our mission is to provide reliable and cost effective solutions for Petroleum companies in area of hydrocarbons

Statem ent of Capabilit ies

Soliton Ltd 10

Main Clients

RosNeft

VIETSOVPETRO

VietSovPero

Zarubezhneftegas

VietGasProm

LukOli

KazMunayGas

LukOil Volgogradneftegas

LukOil Nizhevolzhskneft

PetroResources

LUNDIN

TNK

CNPC

Gasprom

SINOPEC

ZAAB Invest Group

Syria Petroleum

Kuban Neftegas

Chernomorneftegas (UKR)

COBEN (China) COBEN Huabey Oil Huabey Oil (China) Ministry of Natural Resources RF

Chernomorneftegas (RUS)

Voskresenskneft ВН Р НГ Rudneftegas Kalmneft

Our Partners

Krasnodarnefte geophysica

PGS-Khazar

DMIGE

YUZHMORGEO

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Statem ent of Capabilit ies

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Project Profile China, 2010

Target High Resolution Electromagnetic technique production test

Country Public Republic of China

Regions Bahay sea, Sychuan province, Huabey province, Shengly sea, Pacific ocean

Areas Do Mao Ping, Nan Men , Wo Bay Tee, , Uloong Tea, Nie Qiao,

Gann Ning, Ana Zeng GEOLOGICAL OBJECTIVES 1. Ant icline t raps, sandy reservoirs

2. Carbonate reservoirs, Reef

3. Start igraphic t raps, terr igenous reservoirs

4. Upper sub-bot tom sect ion, Gas hydrate

SCOPE OF SERVICES: I - Inducted Induced Polar isat ion

I I - Second Seism o Ecect r ical Effect

I I I - I nduced Polarisat ion TECHNIQUES Dipole Receivers array – 1300 м

Sym m etr ical Source line- 400 м

Record length – 15 sec

Fold - 40 (5x8)

RESULTS

HREM Technique has been tested in four pet roleum basins on 7 areas of China. Successful prognoses of oil and gas fields was made in 6 tests. HREN results were approved by the Client expert ise Locat ions of 4 explorat ion wells were corrected Three explorat ion well were recom m ended

Success rate = 82%

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Project Profile Vietnam, 2011

Target High Resolution Electromagnetic survey for prospects ranking and exploration risk reduction

Country Democratic Republic of Vietnam

Regions South China sea, Mekong basin

Areas License blocks 129-132

Client VI ETGASPROM JSC GEOLOGICAL OBJECTIVES 1. Crystalline Basem ent , Fractured reservoirs

2. Carbonate reservoirs, Reef

3. Start igraphic t raps, terr igenous reservoirs

4. Upper sub-bot tom sect ion, Gas hydrate

5. Ant icline t raps, sandy reservoirs

SCOPE OF SERVICES: I - Inducted Induced Polar isat ion

I I - Second Seism o Ecect r ical Effect

I I I - Induced Polar isat ion

TECHNIQUES Dipole Receivers array – 1300 м Sym m etr ical Source line- 400 м Record length – 15 sec Fold - 40 (5x8)

RESULTS

Totally eight areas were studied with HREM Technique ut ilizat ion Integrated interpretat ion of HREM and Seism ic data was carr ied out New targets for detailed study were detected Plays and prospects have been ranked by Explorat ion r isk assessm ent

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Statem ent of Capabilit ies

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Project Profile Vietnam, 2010

Target High Resolution Electromagnetic survey for prospects ranking and exploration risk reduction

Country Democratic Republic of Vietnam Regions South China sea, Mekong bsin

Areas License blocks

Client VI ETSOVPETRO JSC GEOLOGICAL OBJECTIVES 1. Crystalline Basem ent , Fractured reservoirs 2. Carbonate reservoirs, Reef 3. Start igraphic t raps, terr igenous reservoirs 4. Upper sub-bot tom sect ion, Gas hydrate 5. Ant icline t raps, sandy reservoirs

SCOPE OF SERVICES: I - Inducted Induced Polar isat ion I I - Second Seism o Ecect r ical Effect I I I - Induced Polar isat ion TECHNIQUES Dipole Receivers array – 1300 м Sym m etr ical Source line- 400 м Record length – 15 sec Fold - 40 (5x8)

RESULTS

Totally two areas were studied with HREM Technique ut ilizat ion Integrated interpretat ion of HREM and Seism ic data was carr ied out New targets for detailed study were detected Plays and prospects have been ranked by Explorat ion r isk assessm ent Four successful well have been dr illed basing on our recom m endat ions

Success Rate = 87%

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Project Profile Pre- Caspian basin, Volgograd region, Russia

Target High Resolution Electromagnetic survey for prospects ranking and exploration risk reduction

Country Russia

Regions Pre- Caspian basin, Volgograd region,

Areas Contract blocks in Volgograd region Yilovatka, Levoberezhie, Levchunkovka, Potem kinskiy, Kudr ino- Rom anovskiy, Berezovskiy, Zhuravskiy

Client LukOil GEOLOGICAL OBJECTIVES 1. Carbonate reservoirs, Reef 2. Start igraphic t raps, channels SCOPE OF SERVICES: I - Inducted Induced Polar isat ion I I - Second Seism o Ecect r ical Effect I I I - Induced Polar isat ion

TECHNIQUES Dipole Receivers array – 1300 м Sym m etr ical Source line- 400 м Record length – 15 sec Fold - 40 (5x8)

RESULTS

Totally 132 anom alies were detected on 8 explorat ion areas,

Total square of anom alies – 230 sq.km Prospects ranking by explorat ion r isk assessm ent has been m ade. Recom m endat ion on new explorat ion well locat ion were m ade.

Success Rate = 76%

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Project Profile Gas Hydrate prognoses

Target Prognoses of Gas Hydrate deposits in sub-bot tom

sedim ents of the Black sea basin with applicat ion of High Resolut ion Elect rom agnet ic technique

Country Russia Federat ion Region Black sea basin

Area South Eastern slope and Tuapse t rough Geological objectives

1. Detect ion of Gas Hydrate within sub-bot tom sedim ents

2. Assessm ent of Gas Hydrate Stability zone (GHSZ) thickness

3. Detect ion of free Gas accum ulat ions below GHSZ

4. Developm ent of High Resolut ion Elect rom agnet ic technique for Gas Hydrate deposits prognoses

METHODS Integrated set of three TDEM- IP elect rom agnet ic m ethods was applied I - Inducted Induced Polar isat ion

I I - Second Seism o Ecect r ical Effect

I I I - Induced Polar isat ion

IV – Seism ic 2D V- High Resolut ion seism ic VI – Sub- bot tom soil sam pling

FI LED TECHNI QUE S

Dipole Receivers array – 1300 м Sym m etr ical Source line- 400 м Record length – 15 sec Fold - 40 (5x8)

RESULTS

1. An evidences of Gas Hydrate occurrence in sub- bot tom sedim ents were detected in HREM – I IP and IP data

2. The area of Gas Hydrate accum ulat ion was m apped within the northern flank of the Tuapse through

3. The thickness of Gas Hydrate saturated sedim ents was est im ated

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Project Profile North Caucasus and Kuban region, Russia

Target High Resolution Electromagnetic survey for prospects

ranking and exploration risk reduction

Country Russia

Regions North Caucasus and Kuban region, Russia

Areas More than 45 fields and plays

Client LukOil, Gasprom , KNG, GEOLOGICAL OBJECTIVES 1. Ant icline t raps, Clast ic reservoirs 2. Start igraphic t raps, channels, deltas 3. Producing fields m onitor ing SCOPE OF SERVICES: I - Inducted Induced Polar isat ion

I I - Second Seism o Ecect r ical Effect

I I I - Induced Polar isat ion

TECHNIQUES Dipole Receivers array – 600 м Sym m etr ical Source line- 200 м Record length – 15 sec Fold - 40 (5x8) RESULTS

Totally 72 anom alies were detected on 27 explorat ion areas

Total square of anom alies – 170 sq.km Prospects ranking by explorat ion r isk assessm ent has been m ade. Recom m endat ion on new explorat ion well locat ion were m ade.

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Project Profile North Caspian region, Russia

Target High Resolution Electromagnetic survey for prospects

ranking and exploration risk reduction

Country Russia

Regions North Caspian, Russia

Areas Laganskiy explorat ion block,

Client Petroresources- Lundin GEOLOGICAL OBJECTIVES 1. Ant icline t raps, Clast ic reservoirs 2. Start igraphic t raps, channels, deltas 3.Carbonate buildups, Reefs SCOPE OF SERVICES: I - Inducted Induced Polar isat ion

I I - Second Seism o Ecect r ical Effect

I I I - Induced Polar isat ion

TECHNIQUES Dipole Receivers array – 1300 м Sym m etr ical Source line- 200 м Record length – 15 sec Fold - 40 (5x8) RESULTS

Totally 21 anom alies were detected

on the study area Prospects ranking by explorat ion r isk assessm ent has been made. Recom m endat ion on new explorat ion well locat ion were m ade.

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Project Profile North Caucasus region, Russia

Target Borehole to Surface High Resolution Electromagnetic

survey

Country Russia Regions North Caucasus, Kuban district, Russia

Areas Oil and Gas Fields

Chunakovskaya 1, Morozovskaya W-1, Sladkovskaya – 15, Sladkovskaya S- 1, , Belikskaya W- 4, Glubokaya-1

Client KNG, Gasprom, Rosneft GEOLOGICAL OBJECTIVES 1. Product ive reservoir m onitor ing 2. Addit ional prospect ive targets evaluat ion SCOPE OF SERVICES: I - Inducted Induced Polar isat ion

I I - Second Seism o Ecect r ical Effect

I I I - Induced Polar isat ion

TECHNIQUES Dipole Receivers array – 1300 м Sym m etr ical Source line- 200 м Record length – 15 sec Fold - 40 (5x8) RESULTS

Totally 21 anom alies were detected on the study area

Prospects ranking by explorat ion r isk assessm ent has been m ade. Recom m endat ion on new explorat ion well locat ion were m ade.

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Methods The applicat ions of elect rom agnet ic m ethods have increased in the past two decades because of an im proved understanding of the m ethods, im proved service availability, and the increased focus of explorat ion in the m ore com plex reservoir character izat ion and drilling r isk reduct ion issues.

Electrom agnet ic techniques becom e com pletely different discipline in geophysics due to hardware and software developm ent and im provem ent . The integrated interpretat ion of EM and seism ic data provide m uch m ore accurate im ages of hydrocarbon reservoir and significant ly reduce the uncertaint ies for each m ethod alone.

SOLI TON Ltd uses a wide range of EM techniques includes as indust ry standard m ethods as well own “Know-how” patented techniques.

High Resolut ion Elect ro- Magnet ic technique ( HREM)

HREM The principal new technology of High Resolut ion Elect rom agnet ic Survey, based on the new physical phenom enon discovered by the authors that allows to get geoelect r ical t im e sect ions similar to those of seismic (Patent N 93041480125 G 01 V 3/ 08 from 16/ 08/ 1993 and № 67 731 from 2/ 07/ 2007)

HREM technique is based on com binat ion of three m ethods:

I nduced Polar izat ion ( I P)

Standard m ethod of the Induced Polarizat ion ( I P) is the basic m ethod in Mining Geophysics for sulfide zone searching. I t based on study of relaxing processes arising in geological m edium after put t ing out an elect r ic field, generated by current supply line.

Even a negligible contents of sulfur com pounds in sedim ents (pyrites or chalcopyrites for exam ple) causes significant enlargem ent of residual rock polar izat ion. This enlargem ent is surely logged by m odern com put ing devices.

Last years, m ainly due to invest igat ions of V.C. Moiseev - chief of elect rical prospect ing sect ion of “CNI IGI MC” (Russia, Novosibirsk) , the reference between hydrocarbon deposit s and pyr ites enrichm ent zones above them within 200-400m near-surface depth interval independent ly of depth of hydrocarbon occurrence were proved.

So those invest igat ions approved and founded the great deal of data given before about the references between hydrocarbon deposit s and I P-anom alies.

Second Seism oelect r ic Effect ( SSEE)

Second Seism oelect r ic Effect (SSEE) is a new physical phenom enon discovered by the authors that allows to create geoelect ric t im e sect ions similar to those of seism ic (Patent N 93041480125 G 01 V 3/ 08 from 16/ 08/ 1993 and № 67 731 from 2/ 07/ 2007) Know-how" technology SSEE provides an acquisit ion of EM field data in a t ime dom ain. A geo-elect rical t im e sect ions, that are similar to standard seismic sect ions, could be created for interpretat ion. These sect ions show the sam e resolut ion as seism ic data and could be used for st ructure interpretat ion at the very early explorat ion stage. (Patent № 67732 dated July, 26th, 2007. Authors: Nebrat A.G., Sochelnikov V.V)

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I nducted I nduced Polar izat ion ( I I P)

Effects of the Inducted Induced Polar izat ion ( I I P) discovered by Nebrat A, Sochelnikov V. during researches under grants of the RFFI .

I t is a com ponent of High-Resolving Elect r ical Prospect ing (HREP) technique. The physical essence of I I P effect consists in the following.

As a result of t ransient process the elect ric field in the conduct ive m edium after switching a source on or off changes not sharply, and sm oothly.

The m ore depth of a layer, the there com e changes later. There is an addit ional source of the induct ion polarizat ion that leads to it s change which in the beginning grows on absolute size, and then in process of at tenuat ion of the addit ional source decreases.

So there is the Inducted Induced Polarizat ion. And, the m ore depth of a polar ized layer, the on later t im es it will be shown this layer in the I I P field.Mathem at ically characterist ic of I I P is represented in integrals of convolut ion of the t ransient field characterist ic above not polar ized medium and the dependence from the induct ion polar izat ion of specific resistance of layers in t ime.

Know-how" technology I I P aim ed on detect ion of hydrocarbons deposit in an area and assessm ent of its occurrence depth. This invent ion is covered by patents N93041480 G01V3/ 08 dated August , 16th, 1993 and № 67731 dated July, 2nd, 2007. Authors are Nebrat A.G., Sochelnikov V.V.

Borehole- to - Surface Elect rom agnet ic m ethod ( BSEM)

Soliton Ltd uses patented EM technology Borehole- to Surface for hydrocarbons fields m onitoring.

This m ethod allows studying product ive reservoirs with Induced Polar izat ion and Resist ivity param eters analysis m easured in surface lines around the well.

HREM technique for Engineering and Hydrogeology survey

For hydro-geological and engineering surveys the high resolut ion elect rom agnet ic technique is designed. I t allows studying the upperm ost part of the geological sect ion (0-150m ) . The technique is covered by patent 17634 from January, 18th, 2001.

The field acquisit ion technique and special designed software allow creat ing a resist iv it y sect ion ( in t im e domain) with increased resolut ion.

As a result of research study, it become possible to detect high frequency (up to 1500-1700 Hz) oscillat ions of the elect rom agnet ic field that provide a detailed inform at ion on geological st ructure of the subsurface sect ion. An obtainable resolut ion of geological features is about of som e m eters.

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Field Acquisit ion Electrom agnet ic technique

Marine operat ions schem e

The parameters of the source and receiver array values of

induced polar izat ion ( I P) , induct ively- induced polar izat ion (TEM-I I P) , high- resolut ion seism ic-elect r ical effects (TEM-SEF) . For source and recording a com bined setup consist ing of a set of loaded, towed behind a ship lines form ing a single-source field ( line AB) is symm etr ic ( line M1N1) and dipole ( line M2N2) installat ion.

Generat ion of the electrom agnet ic field produced radiat ing antenna - feed line AB 500m from the water by passing a current in current elect rode.

Joined signals - responses of the geological environm ent receiving antennas was carried out the lines MN 100 m .

Schem e of source and receiver signals generat ion and recording

To m inim ize the influence of induced polarizat ion effects on the

form at ion of the TEM signal in the dipole array offset of 1300 m eters was applied. The influence of the I P field for this installat ion, in accordance with the calculat ion does not exceed 1% at later t im es.

Record length is selected by est im at ion of work area geoelectr ic characterist ics and m aximum depth of study that was determ ined by technical details.

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Projected record length was: for work area № 1 - 50-75 sec, № 2 -50 sec, sector № 3- 50 sec.

Fold num ber was 40 (5x8) im pulses in one source point , relying on 5 passes through one profile.

EM field init iat ion was m ade every 250 m eters with the special geophysical equipm ent . Receiver equipm ent registr ies geological m edia response. Current inject ion is one of possible work m ode of source stat ion.

Seven addit ional param eters were recorded on every SP.

They were recorded in data file after regist rat ion of m ain signal.

Param eters of field array and regist rat ion ( exam ple)

1. Length of array AB = 500 m eters

2. Line: dipole-sym m et rical, offsets: 250 and 1300 m eters

3. Traces intervals of t im e dom ain sect ion – 250m eters

4. Num ber of channels -3

5. Record length – 96s- 1 area, 72s- 2 area and 48s- 3 area

6. Sam ple interval – 8 ms

7. Est im at ive depth of survey – 10 000 – 12 000 meters

8 Signal level - 100 m V- 1 µV

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Field Equipm ent SOLITON Ltd uses m odern elect rom agnet ic surveying equipm ent , both Russian-made and purchased from abroad. Since 2004 we have collaborated with the Russian's leading producers of EM receivers and software. Current ly we operate var ious standard indust r ial equipm ent in addit ion to our own designed and produced inst rum entat ion. The com plete set of m odern inst rum ents allow us to provide wide range of elect rom agnet ic services in t erm s of volum e and quality.

Survey equipm ent chart

Recorder

Digita l Recorder TELSS- 3 -E

Cert if icate № ССГП 01.1.1.-192 Main technical character ist ics 1. Num ber of channels- 3 2. Pass-band- 0-10 000 Hz 3. Measurem ent lim it – 0.1 µV- 10V 4. Main error less than 0.5% for every m easure 5. Im pedance of channel not less than 800 KOhm 6. Spectral densit y of int r insic noises resulted to channel port less than 20nV 7. Num ber of bins in analog-digital convertor – 32 Manufacturer, LLC “GEOSIGNAL 2010 Register length of ADC, byte 32 Bandwidth, dB 130 Gain coefficient of pre-gaining, dB 0; 12; 24; 36; 48 Sam pling interval, m s 0,25; 0,5; 1; 2; 4; 8; 16 Maxim al recording length, sam ples per channel 16384 Noise level, reduced to port in pass-band 0-125 Hz, µV 0,08 Nonlinear distort ion coefficient ,% 0,0005 Channels m utual coupling, dB 1130 I n-phase signal elim inat ion coefficient , dB 120 Power system: elect r ic storage bat tery, V 12 Operat ional environm ent , Co -40 - + 70 Weight , kg 1,9 Overall size, mm 235,192,111 Sam ple form at Binary, I 4

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Source I P Generator Environmental: Operating : –20°C to 45°C Storage : – 5°C TO 50°C Maximum Power Output:20 kW at 25°C, sea level Duty Cycle: 100%, 50%, 33%, 25% Efficiency: 90% at full power Current Range: 1–40 A, 0.5–20 A Voltage Range: 25–1000 V Input Voltage: 200–240V at 50/60/400Hz Frequency Range: 256s to 9600Hz (Frequency Domain) 128s to 30Hz (Time Domain) Timing Control: GPS synchronized ± 0.5 µs Turnoff Characteristic (TEM):Linear ramp better than 5 µs/ampere User Interface: Cable-connected remote control panel

Source line length, 400- 600 m Receiver Receiver cable specificat ion

Receiver cable type Cable GPSMPO 2 x 1.00,G

graphite-plast ic EM field sensors

Symm et r ical array length M1N1, 300 m

Dipole array length M2N2, 1600 m

Nearest channel offset , 250 m

Farther channel offset , 1550 m

MN interval 100 m

Channel per cable,. 1 q

Whole channels,. 3 q

Wire, 29.3 Ohm / km

Equipm ent EM Recorders – 7

EM Sources – 6

EM Recievers - 54

QC Work Stat ions – 6

DP Work Stat ions – 7

Navigat ion Inst rum ents – 6

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Vessels and Vehicles

Research Vessels

Ship t it le: TRIAS Call sign: UBNB Classificat ion: KM* I ce3 1 Special Purpose: Drilling Ship Length x width x draught 71,4 m x 16,0 m x 4.5m

Displacem ent 2 559 GRT Tonnage 837 ton Cruising speed 9 knots Self-contain 35 days Hum an capacit y 50 quarters

Cars and Vehicles

Length, beam , draft 49,3 m x 18,2 m x 2,15 m Gross tonnage 915 GRT Deadweight 166 t Main engines 2 x 6AL 20/ 24 Cruising speed 10 knots Range at cruising speed 200 naut ical miles Fresh water capacit y 140 t Cruising range 30 days

Special source wrench Gearing elect r ical Length, m 2000 Diam eter, m m 9.3 Cable GPSMPO Connect ive cable Cupreous, area of solo wire cut not less than 50 m m2 Out-board cable Geoelect ric cable: Source cable – 500 m eters. Cupreous. Area of cut 36 m m 2. Tensile load 500 kg. Source cable “zero” - two pieces 30 m eters length. Sam e wire.

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Data QC and Processing

Onboard processing

QC Processing flow chart includes:

§ Re- form at of input data to processing system form at .

§ QC analyses

§ Navigat ion data processing.

§ Field t ransforms analyses

§ Apparent resist iv it y sect ion design

§ Select ive 1D inversion

Onboard processing hardware and software includes: Com puter I BM-PC Software «Vibor З С», licensed program , that provides real geoelert ric m edia m odeling with any t ype of source im pulse and also processing in 1-D and 2-D form at inversions. PrWork - applicat ion package that provides data processing for I P, TS, conversion to Excel, Seg-Y form ats Received and preprocessed onboard data daily was t ransmit ted to com puter center via com municat ion satellit e system . Processing and interpretat ion of field data is carr ied out by com puter center simultaneously with field work that has significant ly reduced finishing of work t im e.

Navigat ion and posit ioning

Navigat ion system Data processing system QUI NSy v8.0 (QPS Ltd.) Recording form at UKOOA P1/ 90 StarFix 4100 LR12 SN: 790378 & SN: 260013: Different ial correct ions t ransm ission system Gyrocompasses StarFix Vector Sensor CIS wireless: GPS com pass Posit ioning Line AB USBL Applied Acoust ics Nexus EasyTrack Line M1N1 No

Posit ioning of outboard devices. Posit ioning of the supply line (AB) was carried out usingult ra-sound system with a base of recept ion (USBL) Applied Acoust ic Nexus EasyTrack. Calibrat ion of the system im plem ented in the project area.

I n the process of recording navigat ion data recorded in five files: • Antenna.log - coordinates the receiver DGPS; • C_Cable.log, B_Cable.log; - the point of rem oval of cables over the side; • C_Channel.log; B_Channel.log - point centers receiving lines,respect ively, "M1N1" and "M2N2".

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Land, OBC, and Marine Seism ic Data Processing

2 D/ 3 D/ 3 C

Full processing from dem ult iplex through pre-stack t im e or depth migrat ions § Standard processing sequences § Surface-consistent scaling and deconvolut ion § Time variant spect ral balancing § Residual stat ics § DMO processing § Velocity analysis (CVS, MVFS, and sem blance) § Several noise at tenuat ion algorithms § FK/ FKK, FX/ FXY, FX-FK § Tau-P, Radon, radial t race t ransform s § Noise burst at tenuat ion (swell noise, spikes) § Adapt ive subt ract ion to rem ove m odeled noise (e.g.

linear, random noise, m ult iples) § Specialized processing capabilit ies for AVO § I nteract ive 2D m ult i- line t ie and 3D mult i-survey

m erge § Mult i-com ponent QC and converted wave § CCP stacking, t rue surface NMO with Vc, and

conversions between Vp, Vc, and Vs § Pre- and post -stack t im e migrat ions § PSTM im age velocit y analysis § I nteract ive m odel building for depth migrat ion § Pre- and post -stack depth m igrat ions

I ntegrated I nterpretat ion

The com binat ion of EM with seismic and other geophysical data provides valuable inform at ion for drilling decision de-r isking.

I t is well known that seism ic data can resolve low gas saturat ions of 0 - 30 % quite accurately in sandstones, whereas EM st ruggles to resolve low hydrocarbon saturat ion. However EM becom es increasingly more sensit ive with higher hydrocarbon saturat ion.

I n carbonates we often find low porosit ies at shallow depths of burial and surprisingly high porosit ies at larger depths.

The diagenet ic process for carbonates is m uch m ore com plicated and variable than for sandstones, involving for exam ple dolom it izat ion that increases the m at r ix density, hence increasing the porosit y also.

Hence we find that the first order effect on acoust ic im pedance in carbonates is porosit y variat ion, whereas the fluid saturat ion is a m ore subt le second order effect .

I n carbonates seism ic data alone will show the overpowering effect of porosit y variat ion, but com bined with EM and cross-plot ted, it can show the hydrocarbon saturated volum es as having anom alously high resist ivit ies at lower acoust ic im pedances.

We have developed an comm ercial technology to provides solut ions for the integrated interpretat ion and inversion of EM data. An inversion algorithm s are opt im ized for resolving m ain lim itat ions of EM m ethods. They are capable to incorporate various types of available G&G data and the

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reservoir features into the EM inversions. As a result the low resolut ion of EM data is reduced and provide m ore reliable detect ion of hydrocarbons.

At the final stage we apply sim ultaneous joint inversion of EM, garavi-m ag and seism ic on Pet rel software plat form .

Softw are

Softw are During last ten years we have developed a number of software packages for EM data processing, QC analysis and interpretat ion.

We have cooperated with Novosibirsk Research center and I nst itutes of Russia Academy of Science for new m ethods and software developm ent .

«Vibor З С» is licensed program (Authors V.S. Mogilatov, A.V. Zlobin) , that provides real geoelert ric m edia m odeling with any t ype of source im pulse and also processing in 1-D and 2-D form at inversions.

PrWork - applicat ion package that provides data processing for I P, TS, conversion to Excel, Seg-Y form ats

PrWork package is used for the EM data visualizat ion, analysis and correct ion. I t supports both 2D and 3D observat ion geom et ry. The visualized plots could be exported direct ly to m apping applicat ions.

The correct ion procedure is realized through spat ial sm oothing of the am plitudes of im pedance components. There is a possibilit y to perform autom at ic and m anual correct ion.

A variety of visualizing capabilit ies enables to plot apparent resist ivity and im pedance phase dist r ibut ions and t ipper in the form of pseudo-sect ions, graphs, curves e, polar diagrams and induct ion vectors.

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PRinv is an inversion tool closely connected to the PrWork

package. I t is designed for 1D autom ated inversion for both 2D and 3D observat ion geom etry. The software uses 1D solver and provides apparent resist iv it y and impedance phase inversion account ing for the data error bars and stat ions geom et ry. An a-pr iory inform at ion on conduct iv it y dist r ibut ion m odel could be also accounted for.

The friendly graphic interface works under MS Windows fam ily. I t provides a var iety of capabilit ies for geoelect r ical m odel and observed data visualizat ion/ edit ion, m odeled response analysis.

Depth Cross-Sect ion software is applied for the plot t ing of the EM at t ributes cross-sect ions of pr int qualit y as a result of profile EM data interpretat ion. The software has a fr iendly interface and developed capabilit ies. The m ain advantage is the possibilit y to create the ready- to-print f inal plots from the geoelect ric m odels and digital records in standard seismic form at SEGY.

EM Data Processing Soliton Ltd has spent m any years developing advanced

software to process survey data for both standard EN m ethods and own patented technologies surveys.

Our software creates a database from data received by Soliton sensors, along with navigat ion details. This database allows data cataloguing and m apping, with graphical outputs that include opt ions for in- line cross sect ions, contour m ap and colour gr id. Our m odeling capabilit ies include the const ruct ion of interpolated cross- sect ions and elect ric field m aps through the use of tom ography inversion.

Rem arkable progress has been m ade in elect rom agnet ic data processing methods, such as fast inversion using nonlinear conjugate gradients, and data interpretat ion m ethods, like I nduced Polarizat ion and Resist iv ity anom alies for hydrocarbon detect ion.

These new techniques have been applied in pet roleum survey and m any cases are in com plicated areas. They have successfully served the invest igat ion of deep igneous rock reservoirs, and predict ion of potent ial hydrocarbon targets.

The cases indicate that elect rom agnet ic techniques can help seism ic survey to effect ively detect hydrocarbon reservoir and rem arkably im prove dr illing successes.

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SSEE Data Tim e Dom ain processing

At t r ibute analysis Depth Im aging Modeling 2D High Resolut ion processing «Vibor З С», licensed program (Authors V.S. Mogilatov, A.V. Zlobin) , that provides real geoelert ric m edia m odeling with any t ype of source im pulse and also processing in 1-D and 2-D form at inversions. PrWork - applicat ion package that provides data processing for I P, TS, conversion to Excel, Seg-Y form at .

I P I nversion

Due to custom er dem and, SOLI TON Ltd has customized and adapted 2D Sm ooth Inversion algorithm to work seam lessly with the I nteract iv™ I P System . The algorithm uses a two-dim ensional finite elem ent m ethod, which incorporates topography in the inversion of resist ivity (and I P) data.

Softw are Packages Seism ic Data Processing

GeoVector (CGG-Veritas) VISTA (GEDCO) Prom ax (Landm ark)

I ntegrated I nterpretat ion

GeoGraphics Discovery (Landm ark) SMT Kingdom (I HS Kingdom ) STRATA (Ham pson Russel) I RAP RMS (Roxar)

Mapping and I m aging

Geo At las, MapI nfo, Corel Draw Surfer Golden

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Patents and I nvent ions Reg No Descript ion Authors No 67731 System of Nebrat - Sochelnikov for regist rat ion

of Inducted Induced Polar izat ion in geo-elect r ic survey.

Nebrat A, Sochelnikov V.

No 67732 System of High Resolut ion Geo-Elect ric survey

of Nebrat - Sochelnikov Nebrat A, Sochelnikov V.

No 76467 Technique based on Induced Polarizat ion m ethod for hydrocarbons detect ion

Nebrat A, Sochelnikov V., Kisel A.

No 76143 System of High Resolut ion Geo-Elect ric survey

of Nebrat - Sochelnikov - Kisel with use of second seism oelect ric effect

Nebrat A, Sochelnikov V., Kisel A.

No 76143/ 72081

System of total cont inuous m arine elect ric survey

Solit on Ltd

No 2094829 Process of geo-electr ic survey Nebrat A, Sochelnikov V. No 17643 System of Geo-Elect ric survey Nebrat A, Sochelnikov V.

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Opt imum m ethods of revealing the effects of hydrocarbon deposit s were worked out :

I nduced Polar izat ion ( I P) m ethod

is the basic m ethod in Mining Geophysics for sulfide zone searching. I t based on study of relaxing processes arising in geological m edium after put t ing out an elect r ic field, generated by current supply line.

Even a negligible contents of sulfur com pounds in sedim ents (pyrites or chalcopyrite for exam ple) causes significant enlargem ent of residual rock polarizat ion. This enlargem ent is surely logged by m odern com put ing devices.

Last years, m ainly due to invest igat ions of V.C. Moiseev - chief of elect rical prospect ing sect ion of “CNI IGI MC” (Russia, Novosibirck) , the reference between hydrocarbon deposit s and pyr ites enrichm ent zones above them within 200-400m near-surface depth interval independent ly of depth of hydrocarbon occurrence were proved.

So those invest igat ions approved and founded the great deal of data given before about the references between hydrocarbon deposits and I P-anom alies. The I P- m ethod executes together with High Resolut ion Electrom agnet ic Survey (HRES) .

Second Seism oelect r ic Effect ( SSEF)

The pr incipal new technology of High Resolut ion Electrom agnet ic Survey, based on the new physical phenom enon discovered by the authors that allows to get geoelect r ic t im e sect ions similar to those of seism ic (Patent N 93041480125 G 01 V 3/ 08 from 16/ 08/ 1993 and № 67 731 from 2/ 07/ 2007)

I nduct ive I nduced Polar izat ion ( I I P) effect

I t was approved on the base of experimental invest igat ions that process of Elect ric Field Stabilizat ion follows at least by two sort of oscillat ing, These are relat ively low- frequency oscillat ing (0.2-0.5Gz) diffluent with the lapse of t im e and m ore high- frequency ones (5-2500Gz) which pract ically keep frequency rate during full t im e or regist rat ion up to 10-15s. I t was theoret ically proved that the first sort of oscillat ing condit ioned by Induct ive Induced Polar izat ion ( I I P) effect . The am plitude of oscillat ing pro rata polar izat ion coefficient . The fact that hydrocarbon deposit has increased polar izat ion in com parison with contained sedim ents was shown by V.A.Sidorov on experim ents with rock sam ples. The same results were given by V.C. Moiseev direct ly both in product ive and em pty wells. There is an exam ples of fetching I I P-effect out in “clear form ” during explorat ion of gas hydrates, recovered by siesmoacoust ics and bot tom sedim ents probing within Kerch-Tam an shelf of Black sea. The depth level of gas hydrate occurrence is – 1000 -1500 m , alm ost r ight under the sea floor so that above it uncontained obviously of pyrites accum ulat ions water is only. The carried out invest igat ions by two com pletely different out fits - the dipole with 1500m length set and sym met ric with 200 m length set unam biguous showed gas hydrate event in I I P effects (A.G. Nebrat , V.V. Sochelnikov. Electr ical prospect ing by Time-dom ain elect romagnet ic soundings (TDEM) for polar izable m edium s, GEOPHYSI CS 6, 27-30,(1998) . Thus, the I I P-anom aly is the effect of Induct ive Induced Polar izat ion from hydrocarbon deposit properly. Successful highlight ing of this highly slight effect allows to forecast deep and plan posit ion of hydrocarbon deposit direct ly.