Legacy Data Offers Valuable Insights for Cost-effective Exploration

3D basics

For decades, the oil and gas industry has been relying on 3D seismic imaging, which uses sound waves to collect information for the development of a three-dimensional model of subsurface formations.

It’s considered one of the most crucial technologies involved in seeking commercially viable underground deposits of crude oil, natural gas and minerals, and for monitoring subsurface formations. Such an approach is used on land, to map the seafloor, and can be used to understand even challenging subsurface formations.

Data is collected systematically, following a grid to allow for the creation of a 3D image of a target.

The same technology can be utilised to create 2D models, along a line, but 3D has become industry standard in recent decades. Some companies are looking to use newer, 4D surveys for select projects. This approach adds a time variable, to track how subsurface deposits change.

A survey requires time and planning, and the acquisition of permits and other approvals, often related to environmental risks — such approvals in some regions can be difficult to obtain. Costs span engaging equipment and skilled operators, and expenses can climb for difficult-to-access targets, such as offshore locations.

Reprocessing alternative

The basics of seismic imaging have not changed dramatically in recent years, so older raw data is often comparable to that yielded from more recent surveys. The quality of a survey can vary widely, based on the skill of those involved and how rushed it was undertaken – issues that can happen with new surveys, as well as old.

However, there have been dramatic advances in processing and imaging techniques, so processed seismic information is very different than it was in the past. Processing algorithms have improved, as has processing power, so functions such as deghosting, designature and demultiple for offshore data can now be executed much more efficiently.

As more companies look to reprocessing older survey data, it’s become a common business practice in the oil and gas industry. Many organisations will license or sell their stores of survey data to generate revenue, and paying to access this material is still more affordable for exploration companies than undertaking a new survey.

Reprocessing is increasingly being used in conjunction with newly acquired survey data. As companies seek to better understand a larger prospect, for instance, they may combine older data from a range of sources and conduct selected, carefully targeted 3D or even 4D seismic surveys, where legacy data is not available or the legacy data is flawed.

With a more targeted approach to investing in fieldwork, companies can better leverage their financial resources to invest in innovative technology tools. That in turn is driving improvements in the exploration data and technology sector, while allowing exploration companies to achieve, project by project, the most robust views of subsurface targets possible.

Reprocessing success stories

Companies such as ExxonMobil (NYSE:XOM) have been investing in the software side, which promises to further the growth of reprocessing. The oil and gas company has developed its own 3D velocity modelling software to aid in the building of detailed models to better visualise complex subsurface structures. This includes the product Full Wavefield Inversion, which can generate high-definition images that can show if rock contains hydrocarbons.

Shell (NYSE:SHEL) has signed an agreement with energy data company TGS to gain access to its cloud-based digital asset management service for seismic data. The service allows Shell to access numerous seismic datasets from the company’s library (it recently merged with data company PGS, which has a long relationship with Shell). Rapid access to this data allows the company to move and make decisions quickly.

Notably, among the PGS/TGS datasets is a compilation of four vintage seismic surveys spanning 25,000 square kilometres in offshore Uruguay and Southern Brazil. This region has a limited oil and gas exploration history but has become of interest for hydrocarbons of late.

Condor Energy (ASX:CND) has integrated seismic data reprocessing at the Raya and Bonito prospects in offshore Peru. The company has been combining reprocessing of legacy 3D seismic survey data with new field work information to reveal high-quality reservoirs and hydrocarbon fill, along with a fairway of highly porous sandstone.

The prospects are part of the company’s 4,585 square kilometre Tumbes Basin Technical Evaluation Agreement block offshore Peru, which also includes the Piedra Redonda gas field. The block contains more than 3,800 square kilometres of legacy 3D seismic data. In September 2024, Condor Energy completed the reprocessing of an aggregate 1,000 square kilometres of legacy 3D seismic data covering the Raya, Bonito and Piedra Redonda areas.

Condor Energy has commenced a review of the new and improved reprocessed 3D seismic data to formulate a resource estimation of the main prospects.

Investor takeaway

Oil and gas exploration requires risk mitigation strategies. Reprocessing existing data by working with partners and levering technology instead of investing in redundant field work reduces costs. It’s also furthering innovation on the technology side, supporting a robust industry for those working in data, processing and imaging to further mature the digital aspects of exploration.

This INNSpired article is sponsored by Condor Energy (ASX:CND). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Condor Energyin order to help investors learn more about the company. Condor Energy is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

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The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Condor Energy and seek advice from a qualified investment advisor.