Unitization & Redetermination

 

Examples of prior MHA work:

Oil Field - North Africa

  • MHA was selected by working interest owners as the Independent Expert to determine the equity split in this large (> 1 billion barrels in place) oil field.
  • Equity determination was based on STOIIP.
  • MHA assembled a team of 10 experts (petrophysics, geophysics, geology, engineering), as well as 4 external discipline peer reviewers.
  • Constructed an independent static 3D model, following the rules specified by the arbitration and the data provided, and compared this with four (4) separate static models submitted by all working interest owners.
  • Multiple oil-in-place realizations and uncertainty cases were run and evaluated with the MHA model.
  • The final MHA work and conclusions were peer reviewed by external discipline experts outside the MHA team.
  • All technical work and the final MHA Expert decision were delivered within the required time frame of 84 days.

Gas Field - Europe; Common Area Redetermination

  • MHA incorporated additional seismic velocity control obtained from several wells in the common area to develop a completely new interpretation of the bulk rock volume in the field.
  • The revised rock volume was combined with special core analysis (capillary pressure and water saturation distribution) to yield a final equity result.
  • MHA prepared the technical submittal for the redetermination case to the International Chamber of Commerce regarding compensation to be paid for overlifting more than the equity share from the field.

Oil Field - California

  • The equity redetermination case included the following work:
  • Structural and stratigraphic mapping incorporated into a 3D geologic model
  • Petrophysical evaluation and calculations in over 1,000 well penetrations in the field
  • Conventional and special core analysis
  • Estimation of reservoir and surface hydrocarbon volumes
  • MHA was responsible for preparing the technical case, as well as all submittals, on behalf of the U.S. DOE.
  • The final equity decision was in favor of MHA’s client, increasing their equity position by several hundred million dollars of increased value to the U.S. government.

Offshore Gas Field - New Zealand

  • MHA was retained as Expert to the Gas Purchaser who was a Party to the Settlement Agreement in the redetermination of the gas reserves.
  • MHA conducted a technical evaluation of the 3D seismic, the petrophysics, the geology and reservoir engineering data.
  • MHA constructed a static 3D model, as well as a dynamic reservoir simulation model.
  • Probabilistic assessment of hydrocarbons in place and ultimately recoverable hydrocarbons.
  • Estimation of reservoir and surface hydrocarbon volumes
  • MHA was responsible for preparing the complete technical evaluation and all submittals on behalf of the downstream buyer.

Offshore Oil field - North Sea

  • MHA was retained by a single interest owner to act as “Shadow Expert” during the equity redetermination process.
  • MHA’s role was to review our client’s submission for consistency and technical merit. In addition, MHA conducted an independent evaluation and testing of the operators 3D static and dynamic models.
  • The equity redetermination in this instance was based on recoverable oil.
  • MHA work included the following:
    • Geophysics: Methodology; review/confirm time-depth interpretation, correlations and fault picks.
    • Petrophysics: Methodology for estimation of porosity, water saturation and net-gross.
    • Geology: Evaluation and testing of static 3D model.
    • Reservoir Engineering: Estimation of oil-in-place; evaluation of recoverable oil.