--> ABSTRACT: Enhancement of Prospect Presentations in Difficult Times, by Robert F. Ehinger; #91039 (2010)

Datapages, Inc.Print this page

Enhancement of Prospect Presentations in Difficult Times

Robert F. Ehinger

Because of the current environment, more geologists are compelled to present prospects to outside investor groups to obtain financial support. To do this effectively, one must consider three major criteria from the investor's viewpoint: clarity of the geologic controls, structure of the deal, and economics of a prospect.

In order to establish some trends, an in-house study was made of approximately 100 previously rejected prospects. This study showed that prospects were rejected because of the perceived geologic risk (36.1%), structure of the deal (19.1%), economics of a prospect (17.0%), and other engineering and miscellaneous parameters (27.8%).

Prospect presentations can be enhanced by showing the relationship of the specific prospect to regional geologic mapping and production. Geologic controls of the trap should be clearly defined on the maps and cross sections. Supporting data on drill-stem tests, production testing, mud-log shows, etc, should be quantified on the illustrations and documented in the prospect packet. Logs of wells closest to the proposed location should be shown on cross sections or included in the packet. The economic aspects of a prospect may be enhanced during the inception stage by careful management of land-acquisition, geophysical, and ancillary costs.

The prospect package should include an area production-zone map that shows the cumulative production of all wells to date, projected ultimate recoveries, and current production rates. A brief written geological synopsis of the prospect should be included and should reemphasize the main points that make this prospect attractive. Carefully selected cross sections can provide much insight into the geologic controls and reservoir parameters of the prospect; however, such cross sections seem to be the one ingredient that is most often neglected. For prospective investors who are not familiar with the prospect generator, a brief biographic sketch of education and work experience may be a helpful addition to the prospect packet.

AAPG Search and Discovery Article #91039©1987 AAPG Mid-Continent Section Meeting, Tulsa, Oklahoma, September 27-29, 1987.