FDP Engineering, LLP, a member of United Consultants FDP Group, has now been cooperating for several past years with Ryder Scott Petroleum Consultants Co. L. P. Petroleum Consultants one of the largest and the most reputable engineering consulting firms in the world, established in 1937. FDP Engineering, LLP is a partner of Ryder Scott on all projects in the former Soviet Union and in some Eastern European countries. Core area of joint business includes calculation, analysis and audit of oil and gas reserves for client companies, various recommendations, instructions and advice on increasing the efficiency of management and development of reserves of companies of fuel and energy sector. It is very important to note that recommendations and estimations developed alongside with Ryder Scott company are acknowledged by all leading financial institutions in the world when making decisions on provision of financing.

In cooperation with Ryder Scott the following projects were executed both in FSU countries and internationally.

1. Ryder Scott and FDP Engineering Joint Projects in the FSU countries

RUSSIA

Beregovoye, Ust-Yamsoveyskoye, Urengoyskoye (partly) fields (West Siberia)
Assessed reliability of gas and condensate reserves estimates prepared by contractors under international and Russian standards.  Included field trip to conduct due diligence for outside investment bank considering a financial stake.                 

Bulatovskoye, Chernoozerskoye, Erkulskoye, Sbornovskoye, Uganskoye, Vvedenskoye, Smorodinovskoye, Kazakovskoye fields (Samara region)
Independently certified oil reserves in accordance with international standards for potential buyer.  Refined location of oil-water contact (OWC), net pay values for several reservoirs. Volumetrically estimated oil reserves.

Buratinskiy and Mayskiy license blocks (Republic of Kalmykiya)
Conducted in-depth analysis of the seismic information on potentially productive suprasalt and subsalt prospects. Determined potential boundaries of the forecast traps. For super-deep targets, determined formation-fluid properties and reservoir parameters. Probabilistically estimated risked and unrisked undiscovered prospective oil and gas resources.

Daginskiy, Polyarninskiy blocks (Sakhalin Island)
Evaluated prospective resources for potential outside investor.  Delineated oil pools and geologic structure.  Up-to-date seismic investigations needed.

Druzhniy license block (West Siberia)
Analyzed seismic information and third-party seismic report.  Determined hydrocarbon potential of the license area.

Em-Egovskaya, Kamennaya, Talinskaya areas of the Krasnoleninskoye field (West Siberia)
Estimated contingent oil resources in the Bazhenov suite, unconventional deposit which is both the source rock and development target.  Applied non-traditional methodology to delineate net thickness and calculated volumes of OOIP. Performed probabilistic study of the development of the Bazhenov deposits taking into account advanced technologies successfully implemented for shale-oil accumulations in North America. Provided recommendations for identification of primary development targets (“sweet spots”).  This project represents a pioneering study of Russia’s resource base of oil shales in the Bazhenov suite, potentially the largest future source of increase of raw-material base in the country.

Georgievskiy block (Sakhalin Island)
Evaluated prospective hydrocarbon resources in assumed traps not penetrated by wells. Main exploration target was confined to deposits having no analogs and considered productive for the first time in oil and gas basin.

Irelyakhskoye field (Yakutiya Republic)
Evaluated oil reserves of multi-horizon field with a block structure and large gas cap.  Focused on substantiating fluid contact locations in various horizons.  Prepared technical and economic projections with analysis of planned field development.  Forecast hydrocarbon deliverability to a planned mini-refinery.  Independent report mitigated risks in committing significant capital to refinery construction project.

Karpenskiy block (Volgograd region)
Independently evaluated prospective resources at early exploration stage for investment company. Reinterpreted seismic data and analyzed exploration well test results.  Provided recommendations for further exploration in block.

Khandasinskiy block (Sakhalin Island)
Performed evaluation of prospective resources in potentially productive deposits not yet penetrated by wells for outside investor.  Evaluated deposits are confined to a trap type uncharacteristic in this region.

Koltogorskoye field (West Siberia)
Based on seismic, well logging and testing data, estimated OOIP volumes and put them into categories according to SPE-PRMS. 

Koptevskoye, Yuzhno-Kislovskoye and Spartakovskoye (partly) gas, condensate fields and prospective structures (Saratov region)
Independently evaluated gas and condensate reserves, contingent and prospective resources attributable to both discovered fields and undiscovered prospects. The fields have only limited, if any, production history and still are in the exploration stage. Volumetrically estimated original gas in place and recoverable volumes of oil and classified quantities in accordance with SPE-PRMS. Used probabilistic Monte-Carlo method to estimate undiscovered prospective resources.

Kytymskiy block (Irkutsk region)
Evaluated prospective resources in an under-explored block for a potential buyer. Analyzed reservoir rock discontinuity and estimated resources volumes using a probabilistic approach.

Lamanonsky block (Sakhalin Island)
Evaluated prospective resources in a license block at early exploration stage for an investment company.  Combined gravimetry and geochemical-survey data with seismic interpretation and well-log data to achieve project goals.

Lebyazhye, Khanty-Mansiyskoye, Vostochno-Kamennoye fields (West Siberia)
These fields have extremely complicated geologic structure and are poorly understood. Oil pools are confined to both terrigenous deposits with complicated lithology and porous space structure and fractured-cavernous limestones.   Deposits also reside in poorly understood pre-Jurassic basement rocks.  Used a specialized, advanced approach to identify pay intervals and determine volumetric parameters.  Evaluated OOIP volumes and estimated initial production (IP) rates of future wells.   

Luzskoye field (Timano-Pechora region)
Introduced clarity into petrophysical model of reservoir represented by both terrigenous and carbonate rocks.  Recalculated location of OWCs estimated by another consulting firm.  Provided recommendations for additional evaluations of field’s resource potential.

Mirninskiy and Tymtaidakhskiy license blocks (East Siberia)
Analyzed available seismic information and chose the most reliable models of potential traps. Determined properties of formation fluids and parameters of reservoir rocks, probabilistically estimated undiscovered prospective gas resources with and without geologic risks. For one block, independently correlated stratigraphy that resulted in a corrected stratigraphic tie-in of the pay interval. Additionally, conducted an initial evaluation of volumes of gas—both initially in place and recoverable—for pools of the wells that tested commercial gas rates.

Nizhne-Chutinskoye field (Komi Republic)
Conducted onsite technical due-diligence review of surface facilities and oil transportation system under construction.  Audited reserves estimates and provided alternative point of view on reserves volumes.  Audited drilling plan and investigated data acquisition practices to recommend further exploration and acquisition of information necessary for a petroleum reserves certification based on international standards.  Review was done in accordance with requirements for an initial public offering on the London Stock Exchange AIM market.

North Irael, Sotchemyu-Talyu, fields, South Sotchemyu, Kymbozhyu plays (Komi Republic)
Perform annual update of reserves estimates for mature fields in accordance with Canada National Instrument 51-101 for client issuing floating stock shares on Toronto Stock Exchange.  Based on petrophysical analysis, identified three groups of carbonate reservoir rocks with varied lithologies and properties.  Evaluated field development history and water-drive mechanism to generate future production forecasts at well level through decline-curve analysis.  That included modeling of putting naturally flowing wells under artificial lifting.  Estimated contingent resources volumetrically for a poorly understood horizon in North Irael field. Used probabilistic stochastic method to estimate prospective resources in exploration blocks.  Conducted onsite examination of fields and oil-gathering and transportation system.

Novomolodezhnoye, Zapadno-Novomolodezhnoye, Yuzhno-Sardakovskoye oil fields (West Siberia)
Based on seismic and well data, performed geologic mapping, refined volumetric parameters and estimated original-oil-in-place (OOIP) volumes.  Analyzed well-test information and recommended future development patterns for the fields.

Olikuminskoye field (West Siberia)
Conducted in-depth evaluation of oil reserves and resources for financing.  Performed an engineering forecast of production profiles and cashflow economics under planned field development.  Analyzed oil-bearing horizons penetrated by few wells and still poorly understood.  Proposed explanation of empirical data to substantiate composition and phase condition of formation hydrocarbon fluid.  Estimated minimal net pay value for economic development to be used to determine respective areas of reserves and contingent resources.

Palyanovskoye, Pottym-Inginskoye fields (West Siberia)
Gathered and analyzed key geologic and engineering information on fields. Created an economic model and evaluated reserves.

Pechorogorodskoye, Zaradno-Pechorogorodskoye, Yugid-Soplesskoye, Vasylkovskoye, Layavozhskoye fields (Komi Republic, Nenetskiy Autonomous Okrug)
Refined geologic structures in poorly understood, multi-layered oil and gas fields without extensive production histories.  Commercial value of certain reservoirs had not been evaluated.  Study focused on geometry and boundaries of fluid contact in one field.  Performed a volumetric evaluation of initial hydrocarbons in place for all productive horizons.  Prepared projections of reserves and future income under guidelines of SPE/World Petroleum Congress.

Pelyatkinskoye field (Taymyr peninsula)
Independently evaluated hydrocarbon volumes in accordance with Society of Petroleum Engineers (SPE) reserves classification for multibillion-dollar mining company. Reservoir rock features in deep invaded zone which brought into question determination of saturation from log data so OWC was delineated based on testing, not logging in most of wells.

Pionerskiy block (Sakhalin Island)
Performed a probabilistic evaluation of prospective resources in a superficially studied block for an outside investor.  Used 3D seismic interpretations, prospecting and exploration well drilling data, logging and testing information and core data.  Also used information on nearby analogous fields as necessary.

Severo-Urengoyskoye field
Conducted audit of gas, condensate and oil reserves evaluation prepared by another consulting firm, presented conclusion on lack of sufficient grounds for reported results. Prepared independent reserves evaluation in compliance with SPE-PRMS classification, generated technical projections of hydrocarbon recovery and end product output. Independent report was used by the client in negotiations with regard to potential acquisition.

South Shapkinskoye field (Nenetskiy Autonomous Okrug)
Performed due-diligence study of surface facilities, oil transportation and commercial delivery system for international financial institution.  Performed a volumetric estimate of OOIP.  Analyzed economic parameters, including capital and operating expenses and taxes.  Provided recommendations for further exploration activities.

Sredne-Botuobinskoye field (East Siberia)
Refined geologic model, estimated oil, gas and condensate volumes OIP in two mostly understood hydrocarbon reservoirs. Reservoirs feature tectonic faulting and large gas cups. Refined positions of fluid contacts and certain volumetric parameters as appropriate. Analyzed production history with wells producing intermittently. Studied development scenario using horizontal wells and gas re-injection into gas cup.

Srednevilyuiskoye, Mastakhskoye, Tolonskoye, Machobinskoye, Nelbinskoye, Severo-Nelbinskoye and Mirninskoye gas and oil fields (East Siberia)
Updated geologic mapping and volumetrically estimated initial hydrocarbon volumes in place for all subject reservoirs. For reservoirs under production, generated engineering and economic projections; for other reservoirs, estimated contingent resources volumes in accordance with the SPE-PRMS.  Commercial development of several of the fields was restrained by the absence of both gas consumers in the region and a transportation system for gas delivery outside the region. Designed the report for internal corporate use.

Urengoyskoye field, Achimov horizon (West Siberia)
Reviewed previous geologic maps and initial gas and condensate in-place estimates for a license block adjacent to other operators’ blocks. Prepared engineering and economic projections and estimated proved and probable gas and condensate reserves in accordance with U.S. SEC guidelines.

Vakunaiskoye, Severo-Vakunaiskoye and Tympuchikanskoye fields (East Siberia)
Evaluated three fields featuring abnormally low formation pressure due to which deep mud filtrate invasion is typical making difficult the log interpretation. Used the most recent information to update the existing geologic model and estimated oil, gas and condensate volumes originally in place. Classified reserves and contingent resources based on well testing data. Studied the large potentially productive area within two adjoining license blocks. Probabilistically estimated undiscovered prospective resources based upon both seismic and well data and nearby analogies. Upon the clilent’s request suggested development scenario for both the discovered fields and prospective resources.

Varyngskoye field (West Siberia)
Evaluated oil reserves of a multi-horizon, structurally complex oil and gas field for a large Russian conglomerate.  Interpreted OWC surface as tilted in certain reservoirs.  Generated future production profiles of vertical and horizontal wells under a waterflood field development plan. Performed economic analysis.

Vostochno-Makarovskoye field (Saratov region)
Prepared an evaluation of volumes of original oil in place (OOIP) for several reservoirs.  Volumetric parameters were partly assumed by analogy.

West-Luginetskoye, Lower-Luginetskoye, Shinginskoye (partly) fields (West Siberia)
Prepared an in-depth geologic study for owner of licenses. Re-correlated geologic sections in key wells and then estimated oil-in-place (OIP) volumes. Conducted engineering analysis of hydrofrac operations in several producing wells.

West Salym, Upper Salym, Vadelyp fields (West Siberia)
Performed periodic independent evaluations of oil reserves over several years in accordance with international standards.   Fields have multiple productive horizons and were under intensive development drilling.  Paid particular attention to picking out pay thicknesses in poor reservoir-quality zones confined to thin interbedding of sandy and shaley rocks. Also, refined positions of OWCs.  Generated well-by-well production projections for a few hundred wells in an artificial waterflood and infill drilling environment.

Yuzhnoye, Orekhovskoye fields (West Siberia)
Updated reserves volumes through in-depth geologic study.  Oil reservoirs feature lithologic screens and tectonic faults.  Even though one field was extensively drilled, its geologic model needed further refinement, because data on tectonic structure, geology and engineering was mutually contradictory. Partially re-correlated productive sands for other field.  Used oil production histories to generate rates of planned wells and estimate reserves.

Zapadny, Kulatkinsky, Nerchayusky, Surgutsky blocks (Kaliningrad, Ulyanovsk, Arkhangelsk regions, West Siberia)
Performed a probabilistic evaluation of prospective oil resources for license blocks in various regions of Russia.  Prospecting and exploration activities are still in the early stages.  Used data from nearby analogous fields because of a deficiency of basic data.  Provided recommendations for further exploration.

Zaslavskiy, Levoberezhniy, Pravoberezhniy, Angaro-Lenskiy license blocks (East Siberia)
Evaluated original gas and condensate in-place volumes in accordance with the SPE-PRMS classification for mutually adjoining license areas. Subject properties extended over large areas and were confined to lithologic traps. Because of constraints and limited well-test data, evaluators classified the estimated hydrocarbon volumes as contingent resources and undiscovered prospective resources calculated with and without geologic risks. The report was used to raise funds for field development.

REPUBLIC OF KAZAKHSTAN

Alakol license block
Conducted in-depth analysis of available well logging and testing data aimed at delineating reservoir zones. Conducted a critical review of previously estimated porosity values.

Alibekmola, Kozhasay oil fields
From client’s inconsistent raw information, created a continuous production data base and performed decline-curve analysis to forecast proved developed producing and proved undeveloped reserves according to the guidelines of SPE-PRMS.

Arman field
Probabilistically estimated undiscovered prospective oil resources in a deeper horizon non penetrated by wells and also in a number of nearby structures.
Arystanovskoye field
Evaluated reserves of a multi-horizon field for operator.  Focused on with more than 85 percent of estimated field’s reserves.  Estimated oil reserves under both natural drive and water flooding.  Analyzed operator’s plans to commingle most of pay horizons into several development targets. Also, assessed reservoirs’ resource potential not included in detailed study.

East Saztobe, Northeast Saztobe, Southeast Saztobe, South Karatobe, Laktibay, Yelemes, Tasim-Bekbolat fields
Used data from new wells and seismic to update oil, gas and condensate OIP volumes and reserves for a national oil company. Estimated recoverable volumes on the basis of both volumetric calculations and actual production history by well.  Prepared materials for prospectus that was submitted to government agencies of interested country.

Dautskaya exploration area within blocks XXXII-40-A, B, C, D, E, F; 40-А (partial), В (partial), D, E, F (partial), XXXIII-40-A (partial), В (partial), С (partial), 41-A (partial), B (partial), C (partial), E (partial) in the Kyzyl-Ordinskaya oblast
Analyzed seismic information and data for a few drilled wells.  Using information from known fields in deposits of the same age, suggested and substantiated trap types in three potential horizons and estimated reservoir parameters and fluid PVT properties.  Probabilistically estimated risked and unrisked, undiscovered prospective oil resources.

Doshan field
Evaluated reserves and prospective resources of geologically complex multi-horizon field in rift basin for client in Middle/Near East.  Analyzed data from seismic surveys and a few wells in field study.  Used nearby analogous field information to test and substantiate volumetric parameters and potential productivity of wells. Used judgment to advise on feasibility of commercially developing field. Provided recommendations on further exploration activities.

Karazhanbas field
Performed a due diligence study on site to review development status of field containing heavy, highly viscous oil.  Also examined field and oil gathering facilities and processing and transportation systems.  Collected and analyzed information on field development economics.  Based on previous year’s actual production data, corrected production forecast in report prepared by another consultant.

Kopa field
Performed in-depth geologic and engineering study of multi-horizon field containing heavy, highly viscous oil.  Field featured a subsurface block structure with individual reservoirs that were limited both tectonically and lithologically. Partially corrected inter-well correlation and rebuilt structure and thickness maps. Assumed OWC depths conditionally for several reservoirs because contacts were not encountered in wells.  Estimated OOIP volumes and reserves and contingent resources under SPE-PRMS guidelines for all horizons.

Northwest Zhetybai field
Evaluated oil reserves for multi-horizon field in accordance with U.S. Securities and Exchange Commission requirements.  Estimated petrophysical parameters based on well data and analogies.  Summarized well testing information.  Prepared engineering projections of field development under natural drive and waterflooding.  Provided recommendations for further study.

Northwest Konys field
Field has tectonically and lithologically controlled reservoirs. Evaluated reserves and contingent and prospective resources in discovered and potential reservoirs, including non-structural types.  Used an innovative approach to estimate volumetric parameters of unconventional reservoir rocks.  Estimated oil parameters in volumetric calculations based on analysis data from downhole samples. Built correlation between IP rate and net pay in a well.  Prepared production and cashflow projections for field’s co-owner, one of the biggest corporations internationally.

Prigranichnoye field
Poorly defined field had only one discovery well at time of independent study. Performed quality check of 3D seismic information in view of reliability of previous structural model.  Estimated recoverable volumes of oil and classified quantities in accordance with SPE-PRMS.  Volumetrically estimated contingent resources within discovered area.  Used probabilistic Monte-Carlo method to estimate undiscovered prospective resources.

Shagyrly-Shomyshty field
Supervised well testing onsite and prepared preliminary interpretation. Also, developed approach to petrophysical model of reservoir rock and estimated volumetric parameters.

Tagan Yuzhniy field
Operator had drilled new wells in the multi-horizon field containing highly viscous oil. Those wells penetrated additional pay horizons and changed the field’s structural model.  Used new data to complete a detailed correlation between “old” and “new” wells, picked out pay intervals and estimated their parameters.  Built new structural model and remapped net pay distributions of productive sands.  Used volumetric method to estimate OOIP and recoverable volumes that were classified in accordance with SPE-PRMS.  Assessed feasibility of planned commercial field development scheme. 

Tasbulat field
Reviewed field operations onsite for an outside interest owner. Gathered and analyzed geologic and engineering field data. Independently estimated reserves and found that reserves for specific reservoirs were inflated.  Analyzed production histories and assessed current status and outlook for implementing waterflooding.

REPUBLIC OF UKRAINE

Kadobnyanske, Sakhalinske fields, Staikovska, Putilska, Pivdenno-Teresnyanska, Akreshorska, Sulatitska blocks
Evaluated prospective resources in blocks confined to area of intense tectonics in deep, potentially productive deposits. Structural mapping was complicated because seismic data interpretation was ambiguous.

Olgovskoye, Makeeskoye, Krutogorskoye, Vergunskoye fields
Audited third-party gas and condensate reserves estimates for potential investor.  Fields were characterized by complex geologic structures.  One field was significantly developed and studied. Built a data base of gas-production and formation-pressure measurements.  Updated production projections by well and performed an engineering analysis using material balance technique.  Made recommendations on attractiveness of potential acquisition of assets.

Rudivsko-Chervonozavodske field
Prepared detailed reserves evaluation of multi-horizon oil, gas and condensate field.  Correlated geologic sections between old wells and those recently drilled. Updated geologic maps taking into account new wells. Built a data base of formation pressure measurements to be used to estimate drained initial and remaining recoverable gas volumes.  More precisely identified initial gas composition in all productive horizons. Performed material balance engineering analysis of most reservoirs.  Generated engineering projections of field development, including economics.  Discovered inaccuracies in previous reports prepared by two international consulting firms.

Semygynivske field and adjoining blocks
Evaluated hydrocarbon reserves and resources for poorly understood fields and blocks featuring extremely complicated tectonics.  Analysis was difficult because quantity and quality of data was poor and few wells had been drilled.  Used volumetric methodology to estimate reserves.  Probabilistically estimated resources.

Sviridivske, Mekhedivske-Golotovshinske fields
Estimated reserves and prepared production and income projections under planned development of the multi-horizon oil and gas-condensate fields.  Systematized formation pressure-measurements data.  More precisely identified initial composition and properties of formation gas-condensate systems to perform detailed material-balance analysis.

REPUBLIC OF AZERBAIJAN

Kurovdag field
Systematized and analyzed geologic and engineering data on multi-horizon field with complicated structural-tectonic structure.  Identified productive layers that previously were not considered very promising.

2. Ryder Scott and FDP Engineering Joint International Projects

BULGARIA

Kilifarevo and Sevlievo license blocks
Studied available information on core and cuttings analyses, well-logging data and geologic models of subject assets. Identified two potential reservoir rock types featuring varying void-space characteristics and average porosity.  Refined geologic models of pools and evaluated OGIP volumes.  Client used the independent report as part of a document package for raising outside funds.

INDONESIA

Bock East Bavean
Conducted probabilistic estimates of hydrocarbon resources and generated engineering and economic projections for a play to be developed offshore Indonesia. Based on analysis of similar projects, recommended layout of field infrastructure, including usage of stationary platforms and a floating, production storage offloading (FPSO) system.  The report was used to refine the decision-making process related to further development of the project.

PERU

Block 105
Prepared Competent Person’s Report based on evaluation of prospective resources of block in high-altitude area adjoining Titicaca Lake where prospecting and exploration efforts are still at initial stages. The few drilled wells are too shallow and did not tap promising deeper deposits.  No discovered fields are nearby.

FRANCE

13 «mature» oil fields
For fields located in four hydrocarbon-prone provinces of France exploited by a limited number of wells and having long production history, prepared engineering forecast of Proved Developed Producing and Probable Developed Producing reserves for each active oil well using production decline analysis method. Provided recommendations for improvements in reservoir management. Designed the independent report for internal corporate use.

Also performed joint projects on assets situated in:

Algeria
Malaysia
Libya
Venezuela