El mundo de la exploración del petroleo. Estudio de caso: Nicaragua

Introduction Petroleum Potential in Nicaragua is documented by oil and gas indications and also by existence of good traps in both margins. This make the potential good to attract the invest of the petroleum industry. The exploration activities are regulated by the Law 286, “Ley Especial de Exploración y Explotación de Hidrocarburos” and its regulation, Decree No.43-98, and also by other laws and norms relative with exploration activities. 2

Jamaica Colombia

Available Areas Map 4

5 Methods applied for research exploration of hydrocarbons in the Caribbean of Nicaragua : ?STRATIGRAPHY ?SEISMIC REFLECTION ?DRILLING

? ? STRATIGRAPHY NEW PERSPECTIVE IN CARIBBEAN OF NICARAGUA…. This dolomite section presents limestone with predominant shale. The dolomitization part of the Punta Gorda Formation is independent of the depositional environment and has calcite material. Dolomite section can be observed in some seismic section as a free reflexion. In the region of the Tyra well this section is related with the Perlas reef structure.

? NEW PERSPECTIVE IN CARIBBEAN OF NICARAGUA Dolomite section in the Punta Gorda Formation of the Caribbean Margin of Nicaragua. Dolomite Troy from Middle Eocene was recognized by Occidental in the wells Miskito-1 and Miskito-2 in the Punta Gorda Formation level. This dolomite sequences is stratigraphically similar to the one identified in some wells from Jamaica and Honduras. Offshore wells from Nicaragua indicate a range thickness of this section from 85´to 400´. Eight wells drilled in the Caribbean of Nicaragua identified this sequence and one well from Honduras.

Legend Oligo-Miocene Unit I. Unit IV. Unit V. Unit II. Acoustic Unit III. Basement

SEISMIC REFLECTION Total seismic in Caribbean of Nicaragua TOTAL 2D SEISMIC : 39. 596 Km 22, 918 Km 2D 3, 095 Km 2D 2D 4, 915 Km² 3D 2D Caribbean Caribbean Caribbean Caribbean Caribbean Offshore Offshore Offshore Offshore Offshore 1966-1980. 1999/2000 2011 2011 2013 10

Areas Awarded for Oil Exploration and Exploitation Caribbean Offshore of Nicaragua: 13 657 km2 3 922 km2 3 909 km2 3 325 km2 2 268 km2 Noble Energy Nicaragua Limited Noble Energy Nicaragua Limited Infinity Energy Resources, Inc. Infinity Energy Resources, Inc. 11

SEISMIC MAP 12

13 DRILLING Oil & Gas Indications of Wells Drilled in Nicaragua

27 2013 Wells Map TOTAL WELL DRILLED: 14 26 Exploratory Wells 1 Exploratory Well Offshore Caribbean offshore Caribbean 1965-1974

Hydrocarbon Potential

WELL CORRELATION 86 BBLS of Oil in 351 min 16

Traps: 17 rock in Type of Basin: First well drilled onshore: First well drilled offshore: Encourage Oil and gas shows: Good Reservoir: Economic Basement: Back Arc basin Punta Gorda-1 Touche-1 (abandoned after a blowout at the total depth of 4420m) Perlas-1 (accumulative production of 350 B/D asphaltic, 3223 mt, Lower Eocene) Clastic and Carbonates Reached in Twara-1,Centeno-1, Toro Cay-1, Miskito-1and Rama- 1 wells Late Cretaceous: Sources rock: Reached by Nica-1 (Cretaceous source rock is expected to be present on the basin Lower Eocene (Kerogene type I and IV, marine type, Perlas-1) Eocene Carbonates in Tuapi-1, produced 61 BOPD and 979 CMG, 3110 meters. The gas recovered supports the hypothesis of a unique source rock in the Eocene. No source rock was identified in the northern part suggest the existence of an older source rock that has not been drilled somewhere. Reservoir rock: Cay-1, Huani-1 y 2 Carbonate and Clastic from Eocene and Oligo-Miocene, delta, carbonates platform and reef, Miskito-2, Nasa Seal Rock: In the northern part prodeltaic shale and carbonate (Oligo-Miocene, Upper Eocene). Evaporites and shale were not found. Structural and stratigraphic from Oligo-Miocene and Eocene underlying the unconformity. Geothermal Gradient: Samples analysis: 3.5ºC in the North, 3.0ºC in the Central part, and 2.5 ºC in the South. Black shale outcropping in Siuna locality, overmature source rock due to volcanic activity. Kerogene was as high as 77%. Cretaceous shale may act as an excellent source rock under normal geothermal gradient. Source Huani-1 is Eocene or possible older perhaps equivalent to Siuna samples. Cretaceous Black Shale is expected to be found in the deepest part of the basin. This source was reached in the Limon Basin in Costa Rica.

COMPANIES WHO HAVE WORKED IN THE CARIBBEAN, NICARAGUA SURVEY NAME Buttes YEAR 1977 SHOT FOR Buttes SHOT BY Delta PROCESSED BY Seiscom Delta KM. 1,729 Resources Inc. Chevron 1966-1980 Chevron Western Western 3,951 Nicaragua Mobil Oil Co. Pure Oil Co. Shell Oil Co. Texaco Oil Co. Union Oil Co. NCS99 1968-1969 1966 1966-1970 1974-1975 1973-1977 2000 Mobil Western Shell Texaco Union Fugro- GS/Delta GSI GSI Union Fugro- GSI/Mobil GSI Digicon Fugro-Geoteam 4,383 833 6,270 2,297 3,455 3,095 Geoteam Geoteam NCSRE00 2000 Fugro- Fugro- Fugro-Geoteam 7,200 Reprocessed Geoteam Geoteam data 18

Conclusion •Sedimentary thickness of the Miskito basin varies from 2,000 meters in the South to 10,000 meters in the North. These sedimentary succession was deposited during the Tertiary to Recent Times. •Seismic interpretation and structural map in the central and southern part indicate: • Intense thrusting and strike slip faulting • Tectonic blocks controlled the sedimentation, particularly the development of reef system along the elevated parts of fault blocks. 19

• The Nica-Tinkham ridge is the result of trans-pressional deformation along a major strike slip fault. • Several wells drilled near the Perlas area had oil shows and the Perlas -1 well tested 350 bop with 36 ºAPI in the Eocene carbonate reservoirs. • Rich mature source rocks were also identified in some wells. • The Lower Eocene Facies are related with reef and fore reef system and also pinnacle reef system that can act as good limestone reservoir. • Four source rock interval were identified in Perlas-3 with organic matter from Middle to Early Eocene. 20

• Dolomitic section were identified in some northern wells with good thicknesses, which can act as a good reservoir. • Carbonates with porosity between 5 to 10% were identified in the Verolania basin, central part of the Miskito Basin. • Faulting's dome structure with thick carbonate have been identified in the Centeno Area. •The Miskito basin has a sedimentary thickness that varies from 2,000 meters in the South to 10,000 meters in the North, their sediments were deposited during the Tertiary to Recent Times. Seismic interpretation and structural map in the central and southern part indicate: • Intense thrusting and strike slip faulting. • Tectonic blocks controlled the sedimentation, particularly the development of reef system along the elevated parts of fault blocks. 21

• Several wells drilled near the Perlas area had oil shows and the Perlas -1 well producted 350 bop in the Eocene carbonate reservoirs related with dolomitization of limestone. • The Lower Eocene Facies are related with reef and fore reef system and also pinnacle reef system that can act as good limestone reservoir. • The Bahamas Reef Systems provides a perfect analog for the sedimentary environment and facies geometry for the Eocene offshore Nicaragua. 22