Government – Expert Witness in Legal Dispute over Evaluation of Fractured Reservoir

We were selected by a European Government to provide expert opinion on the evaluation of a fractured reservoir discovery.  An E&P company development application was unsuccessful (for political reasons) and they sought compensation. However, their evaluation was considered extremely high and we were requested to carry out an independent subsurface evaluation using 30 years of exploration and appraisal data.  

The key issues centred on the nature of the fracture network, the depth of the oil-water contact(s) and the likelihood and timing of water production from the aquifer. We demonstrated that significant key data was overlooked by the E&P Company and then provided a robust, alternative development scenario.  

To achieve this we carried out the following activities:

• Detailed data review and QAQC, including,
• EOWR
• Logs
• Cores
• DST
• Analytical modelling.
• Seismic interpretation and structural description.
• Geological modelling and static model build.
• Fluid properties and dynamic model build.
• Generated scenario cases, produced profiles and understood subsurface, production and infrastructure risks, including extensive sensitivity analysis on:
• Fracture/matrix properties
• Contacts and fluid saturations
• DST and test data
• Carried out probabilistic and deterministic technical and economic analysis.
• Prepared detailed technical report.
• Provided expert opinion in the International Centre for the Settlement of Investment Disputes (ICSID) legal proceedings.
  

Axis developed a robust, evidence based justification that supported our clients asset valuation.  The outcome still awaits a final ICSID ruling.

For more information please contact our experts.