Oil & Gas Consulting Company

Who we are

Nova Energy is a consulting group

specialized in technical and economic
analysis of projects, properties and
companies.
We provide services from Integrated
Asset Descriptions, as well as expert
advice on divestment, mergers and
acquisitions of oil and gas properties.

Our staff comprises highly trained

professionals
with
engineering,
geological, geophysical, economic and
computing skills.
Our strength comes from a business
oriented focus built on individual
excellence and the flow of knowledge
between
closely
aligned
multidisciplinary teams.

Integrating with experience

What we do

Nova Energy has a focused expertise

in Integrated Asset Descriptions,
Field Development Planning and
Asset Transactions all involving crossdisciplinary integration of geophysics,
geology, petrophysics, engineering,
finance and economics.
Vast and long standing experience,
impeccable ethics and access to a
multidisciplinary network of business
associates guarantees the high-end
quality of services, teams and individuals.

Typical services include:

Asset screening.
3D static and dynamic reservoir
characterization.
Field development planning.
Harmonized asset reference
planning.
Unconventional reservoir analysis.
Well deliverability assessment.
Detailed well petrophysical
analysis.
Post implementation / investment
reviews.
Asset transactions advice.
Expert witness and data room
handling.

Company Overview

Company Profile

Where we apply our expertise

Our services can be applied on the following scenarios :

Corporate Planning: including review of field multiple operational

scenarios and selection of the Best Case.
Completion assessment: Integrated well data interpretation provide
assessment on future well deliverability.
Entry to Business: Screenings, Data Room Handling and Expert
Advice for Acquisition of oil and gas properties, Swaps and
Mergers.
Portfolio Management: Providing asset and company suitability
ranking.
Data Room handling: data collection and fast track review for data
validation.
Review and evaluation of property upside : including operating
cost economies, operational changes, behind pipe and undeveloped
reserve potential with the application of appropriate risk
containment factors.
Post Implementation Assessment: Detailed Post-Investment or
Post-Mortem Reviews for asset assimilation / divestment or project
monitoring, including quantification of operational improvements,
upside, and recommendations for improving cash flow.

Company Overview

Upstream Industry

Company Overview

Strategies for integrated reviews

How we work

True integration entails a bringing

together of the minds of the several team
players, in the form of either individuals
or complete organizations aligned
together for a common achievement.
NOVAs Core Team has been vastly
trained, by several decades of intensive
exposure to multivariate discipline
and organizational environments, to
collaboratively benefit from the talents
and insights from diverse project
participants to deliver Integrated Asset
Descriptions (IAD).
Beginning when the project is first
visualized and subject to conceptual
analysis, NOVAs Integrated Process
workflow exploits business structures,
practices, and processes from both
NOVAs Core Team and from all its Third
Party Associates.
IADs include several phases before
Project Delivery and Closing Out and
they all encourage the early contribution
of knowledge and experience and
requires proactive involvement of key
participants. IADs could eventually
continue throughout the full field life
cycle until the project implementation
has been achieved.

Novas
Project
Management
Team

Novas core team.

Novas internal quality
assurance processes.
Data Model.
Internal process workflow - Third party
associates or discipline.
Three level value assessment
iteration ring.

How we work

Post Implementation Reviews are also

part of the Project Delivery Workflow
and is customarily utilized to monitor
performance after implementation.
This higher level of completion allows
the Implementation phase to be shorter
than the traditional, and the early
participation of key stakeholders allows
the shortening of the management review
and buyout phases.

The combined effect is that the project

is defined and coordinated to a much
higher level prior to implementation,
enabling a more efficient and shorter
execution period.

ipe

line

ductivit

l Bala
nce

Dy

Sim

eria

ul

ic

io
at

sis

aly

An

Pro
ge
ina
a
r
D
Productio
n and In
In
jection
te
History
gr
at
io
n
of
Tra
ce
rA
na
ly
sis

T-ILT

g PL

ggin

3D G

tem

ss
ce

n Lo

del

Static Model

sys

Well Pro

am

Fluid Properties Analysis

Pre
ssu
re
Hy
sto
ry
An
aly
sis

of p

Mat

tion

uctio

ulatio

ula

Prod

mic
Sis
3D
Estratigra
phic Mo
Pa
del
lim
pa
sti
c
M
od
el

o
al M

for S
im

An

ctur

rids

Sim

si
aly

Stru

n
lA

tic

is
at

St

sis

y
al

15

ts
as

el

al Mod

ophysic

3D Petr

TIEMPO [ANOS] 10

05

c
re
Fo

Caso 2
Caso 2b
Caso 3a
Caso 4
Caso 4b

ion

tion

Caso Base
Caso 2a
Caso 3
Caso 3b
Caso 4a

ct
du

liza

is

ea

os

al R

gn

gic

ro

olo

ll P

Ge

YACIMIENTO XXXX
PRONOSTICO DE PRODUCCION

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

Pro

We

3D

Petrophysical Model
Int
er
we
ll D
yn
am
ics

Q OIL [Mm3/D]

Examples of Internal Process Workflow

Dynamic Model

Company Overview

Strategies for integrated reviews

How we work

An Integrated Project is built on

collaboration. As a result, it can only be
successful if the participants share and
apply common values and goals. (A
Working Definition - AIA California
Council 2007).
The traditional project execution
approaches contemplate separate silos
of disciplines and responsibility that in
practice yield to inefficiencies whenever
there is a hand-off from one silo to
another.

Additionally,
projects
delivered
traditionally suffer because participants
success are not necessarily related.
Indeed it is quite possible for one or more
of the project participants to succeed
notwithstanding overall project failure.
Integrated Asset Descriptions represent
a behavioral change in the industry by
breaking down the discipline boundaries
requiring higher level of cooperation
and commitment among all major
participants.

ESSENTIAL PRINCIPLES
To harness the collective capabilities,
the integrated team and its management
embrace our principles of:
Mutual respect
Harmonized Benefit

MANAGEMENT COMMITMENT
Integrated Asset Descriptions embodies, in varying
proportion, many of the following attributes:
Ring Fenced Team Configuration
Early Gains Definition
Enhanced Communication
Clearly Defined Open Standards
Appropriate Technology and Practices

Company Overview

Business Model

Company Overview

Business Model
How we work

Ethical Behaviour
Mutual Respect

Harmonized Benefit Police

Process Management & Commitment

Integrated VCD Processes

Ring Fenced
Teams

Team Resource Allocation

Local Expertise

Standards and
Technology

Team Skills and Competences

Local Perspective

Commercial

External Expertise
External Perspective

Technical

Local Application

Life Cycle
Impact

Mindsets

Practical
Solutions

Early Gains

Reservoir Characterization is the core

and also the fast growing area of business
for Nova Energy.

Our experience indicates that major

decisions on support of significant
investments in field development, field
rehabilitation or improved recovery
operations often requires from a very
fast although detailed study option to
provide understanding of reservoir
performance in order to assess future
economic scenarios.

Our team has career length experience

on global projects and is supported by
the most comprehensive and up-todate software packages available in the
industry.

Our Asset Screening Service is an option

to provide an enhanced insight into the
key production drivers that control assess
performance leading to rapidly leverage
the existing data for competitive bidding
submittals or business entry decisions.
BAJO DEL PICHE LIFECYCLE

PRODUCTION FORECAST
500

FORECAST

OIL (m3/d)

400

INCREMENTAL
SCENARIOS

300
200
100

Jan-24

Jan-21

Jan-18

Jan-15

Jan-12

Jan-09

Jan-06

Jan-03

Jan-00

Jan-97

Jan-94

Jan-91

Jan-88

Jan-85

Jan-82

Bajo del Piche Resource Volum es

Future Oil Recoveries EOC + 10yr Extension

FUTURE OIL RECOVERIES

283

1,200.0

283

1,000.0

K m3

400.0

1,035

421
421

800.0
600.0

1,035

331
331

200.0
-

Do Nothing
(Proven
Developed)

DO NOTHING
(Proven Developed
Producing)

SCENARIO 1
Scenario
1
(Probable)
(Probable)

SCENARIO 2
Scenario
2
(Possible)
(Possible)

Total
Resources
(3P)

TOTAL RESOURCES
(3P)

Components of Resource Visualizations and Property

Structural Modeling
Petrophysics
Geology
Reservoir Visualization
In-Place Resource Volumes

Production Allocation Forecast

Incremental Projects
Uncertainty Assessment
Strategic Planning and Field Development
Property Valuation

Asset Management

Asset screening

The successful application of Field

Development Planning (FDP) for oil
and gas reservoirs requires an accurate
understanding of key intrinsic reservoir
architectural and field operational drivers
that allow the performance prediction
under different scenarios.

NOVAs staff has worked over many

years on improving its streamlined IAD
Workflow. This workflow is enabled
by the rapid diagnose of field and well
behavior parameters based on a detailed
analysis and QC of field data base.

Integrated Asset Descriptions (IAD),

are fit-for-purpose analytical planning
tools that originates with the creation
of multiple static and dynamic 3D
subsurface models that honor the one,
two or three dimensional data from well
bores, seismic surveys and eventually,
outcropping data.

Once the reservoir performance key

drivers are categorized, 3D static and
dynamic models are oriented to contain
these uncertainties and future scenarios
are forecasted. Possible upside and
downside cases are generated to derive
the Harmonized Project Portfolio that
builds the Best Case Scenario for the
asset hydrocarbon recovery.

IADs are leveraged by cross-discipline

interactions that lead the generated
models to fit multi-dimensional reservoir
definitions enabling to narrow the many
business and operational uncertainties
involving reservoir management.
INTERPRETATION

FACIES DESCRIPTION
Gt-Gh: Congl. sst, F-M
clast-sup congl.
Graded, Horiz bed,
trough x-bed
Convolute. Bed thick:
0.2-0.3 m
Gmm: F-M matrix-sup
congl. Poorly sort.
Massive/graded.

1466 1468 14701472 -

Sg: F-M sst w/scatterd

clasts. Graded, Horiz
bedding, x-lam. Bed
thick: 8-40 cm.

1474 1476 -

13 %
K 0.4D

SEMIARID
ALLUVIAL
FAN SYSTEM

11 %
K 0.006D

FU cycles dominated
by hyperconcentrated
flows, tractive currents,
and mud flows.

17 %
K 0.2D

Poorly-developed
paleosols

16 %
Sl-Sh: F-M sst. Graded.
motted, Low angle x-lam. K 0.03D

1478 -

This approach allows for answers to

complicated problems to be expressed
under specific operational actions
encompassing from the detailed
definition of individual completions to
detection of operational improvements.

Shallow braidedchannel fills.

Fm(P): Reddish, massive,

13 %
mottled mudstones.
K 0.005D
Irregular vertical
bioturbation (rhizoliths).

Components of Field Development Planning

Structural Modeling
Petrophysical Modeling
Stratigrafic Modeling
Sedimentological Modeling
3D Integrated Stochastic Modeling
Realization Analysis
Property Upscaling

Strategic Planning and Field Development

Reservoir Dynamic Simulation
Uncertainty Assessment
Scenario Modeling
Reserve Categorization
Reserve Maturation and Replacement
Asset Reference Plan

Asset Management

Field Developement Planning

Single Well Evaluation Services

This emphasis has produced new and

improved technologies and methods that
provide additional and more accurate
information for downhole reservoir
characterization.
Components of Single Well
Integrated Evaluation

Log Analysis
Rock Typing
Pressure Analysis
Wellbore Image Interpretations
Flow Unit Determination
Well Deliverability Assessment

Non Conventional Reservoir Evaluations

The integrated analysis, of core and

log data, borehole imaging, downhole
pressure monitoring devices and fluid
characterization at reservoir conditions
can span the analytical capabilities of
traditional well interpretation enhancing
completion design with significant
impact on the project management.
The evaluation process workflow
applied by our company integrates data
from multiple sources and different
support volumes to provide the basis to
link geology and reservoir engineering.
The ultimate goal of the single or multiwell process is to build realistic 3D
wellbore property distribution to help to
predict future performance and support
completion operations.

Single Well Evaluation

The emphasis in logging and formation

evaluation has shifted into nonconventional
reservoirs,
improved
geosteering in ERD and horizontal wells,
as well as characterizing and evaluating
deepwater laminated turbidites, lowpermeability carbonates, fractured tightgas reservoirs (sandstones and gas shales)
and heavy oil/tar sands.

Multi Well Evaluation

Rock Typing & Flow Unitization Approach

It ultimately leads to the definition of

Flow Units that consists of reservoir
subdivisions defined on the basis of
similar pore type attributes. Inflow
performance for a flow unit can be
predicted from its inferred pore system
properties, such as pore type, pore size
and pore geometry.

Depositional: macroscopic-scale,
original rock properties present at
deposition
Petrographic: rock properties at
microscopic-scale, i.e rock texture,
composition, pore system, diagenesis.
Hydraulic: represents the physical
rock flow and storage properties as
controlled by the pore texture.

Components of Flow Units

Determinations
Depositional Rock Typing
Petrographic Rock Typing
Hydraulic Rock Typing
Port Size determinations
Multi Well Log Analysis
Flow Unit Identification
Lateral Congruency Assessment

Capillary Pressure

WFT

DST

MacroScale

MegaScale

Pressure Change &Pressure

Derivative
Change
(psi) & Derivative (psi)
Pressure Change & Derivative
Pressure(psi)
Change & Derivative (psi)

Comparison of WFT and Production Test Transients

10000
1000

Phi (%)

Sw (%)
100

30

P. F ormaci on
0

K (mD)

500

0.002

Qi (10E3 m3/d)
20

60

RT5

100. 0000

Initial Pressure
(320 kg/cm2)

RT4
RT3
RT2

10. 0000

C2

Top seal

C3a

C3b

RT1

1. 0000

Por os i dad (%, cor ona)

0. 0001
0

10

15

20

0.01 mD

Rango de Permeabilidades de Corte

Storage and permeability

Cut-off

Rock Types and CapCurves are the properties

that describe reservoir characteristics at multiple
scale levels
Stor age range affected by C/O

TODOS LOS POZOS

1
1000
0.1

1000

k = 70 mD
ri = 6 ft

10

0.1
1
10
100
10000 100000
Comparison
of
WFT
and1000
Production
Test Transients
1

Time (s)

Comparison of WFT and Production Test Transients

0.1

10000
100
0.01
10000
1000
1000

0.1

10

10 100

100

1000

10000 100000

Time (s)

k = 300 mD
ri = >5000 ft

Comparison of WFT and Production Test Transients

10
100

k = 700 mD
ri = 10 ft

1100001
10

0.1
1000

0.10.01
100

0.01

1 0.1
10

100

1000

10000 100000

Time (s)

0.11

0.1
0.1

0.01
0.01

10

0.1

k = 7 mD
10= 8 ft100
ri

1
1

10

100

1000

10

Time (s)

Time
(s)
10000 100000

100

Time (s)

0. 0100

0. 0010

0.004mD

Comparison of WFT and Production Test Transients

0.1

0. 1000

Seat seal

C4

100

100
100000.01

Pressure Change & Derivative (psi)

Sb

Pressure Change & Derivative (psi)

k = 127 mD
10
ri =Production
16 ft Test Transients
Comparison
of WFT and
10000

K abs ol ut a (mD , cor ona)

Rock Typing workflow considers the

description of different kinds of Rock
Types known as:

1000
1000

10000 100000
10000 100000

Multi Well Evaluation

Rock Typing provides a consistent

approach for integration of reservoir
properties
from
various
scales,
identifying their intrinsic rock capacities
of fluid flow and storage.

Unconventional Plays Integrated Reviews

In many cases, none of the conventional

reservoir architectural drivers correlate
strongly to well performance. There may
be not a unique reliable spatial predictor
of conventional reservoir variables
(even if the measurements and tests
required to estimate these variables have
been executed) to enhance prediction
of performance on unconventional
environments.
However, Shale Petrophysics that
includes the exhaustive integration of
Core Lithofacies, Geochemically derived
TOC Content, Free and Adsorbed Gas
Analysis and Critically Stressed Fracture
Analysis have proven to have established
the basis to predict well performance at
the well scale.

At a play scale though, performance may

nonetheless display a wide variability;
and it is often the case that such variability
cannot easily be predicted in advance
or even correlated to conventional
measurements (e.g. porosity, thickness,
structural position, etc.).
That is why, in many instances, non
conventional plays have alternately been
described as statistical plays in which
an operator must drill a large number
of wells and can expect fairly repeatable
results if enough wells are drilled. Under
that scenario the economic development
of unconventional resources is often
questionable.
This hurdle can be minimized by
an integrated interpretation of largescale architectural reservoir attributes
(Reservoir
compartmentalization,
fractures, and faulting) obtained from
leading edge seismic processing and
interpretation technics.
The obtained geological framework and
the resulting elements from single well
petrophysics define the areas of higher
concentration of reservoir properties and
other building elements of the reservoir
systems such as seals, and baffles
controlling fluid distribution and flow in
the resrvoir.

Unconventional
Reservoirs

The assessment methodology (IADs)

and production practices of conventional
reservoirs vary from those used for
unconventional resources (i.e UltraDeep Fractured, Fractured Gas Shales,
Coalbed Methane and Tight Gas sands).
Predicting productivity of offsetting well
locations in a non conventional reservoir
environment are one of the key challenges
to enhance well placement strategy and
to meaningfully differentiate the quality
of a each drainage point.

Unconventional Shale Plays

Integrated Reviews

Prospect Evaluation

Reserves Evaluation

UNCONVENTIONAL PLAY
DEVELOPMENT PLAN

Prospect Evaluation

Tectonic history
Structural framework
Stratigraphic framework
Stress regime
Pore pressure regime
Petroleum system
Geochemistry

Resource Potential

Structural framework
Stratigraphic framework
Sweet spot distribution
Hydraulic rock properties
Fracture Network
Volumetrics (HC in place)
Distributary drainage
volumes
Uncertainty and
probability assessment

Reserves Evaluation
Geomechanical
properties
Stress anisotropy
Fracture system
permeability
Well placement
Fracture stages
HF hydraulic capacity
Well performance

Unconventional
Reservoirs

Resource Potential

Unconventional Shale Plays

Shale Plays Petrophysics

Core to log calibration allows the

identification of shale rock properties
at well-scale, in order to extrapolate the
analysis to wells lacking core data based
on refined stratigraphic correlations.

The integrated workflow includes

exhaustive core analysis, naming
lithofacies identification, geochemical
analysis for TOC content, naturally
fracture systems description, as well as
geomechanical properties for Hydrofracs feasibility.

Components of Shale plays

Petrophysics
Total Organic Carbon
Analysis
Free Gas Analysis
Adsorbed Gas Analysis
Productivity Analysis

Data Loading
Data QC/QA
Environmental Corrections
Total Organic
Carbon Analysis

Free Gas
Analysis

Adsorbed Gas
Analysis

Productivity
Analysis

Delta Log R (Passey)

Density Log
(Schmoker)
Core data
Artificial NN

Volumetric Analysis
Volume of Kerogen
Effective Porosity
Water Saturation

Langmuir Isotherm
Langmuir Parameters
Correct for Res. Temp.
Correct for Res. Press.
Correct for TOC

Formation
Permeability
Fracture Network (FN)
FN Connectivity

Adsorbed Gas
Content

Productivity
Drivers

TOC
Content

Kerogen Volume
Effective Porosity
Water Saturation

Total Gas Content (TGC)

Estimated Ultimate
Recovery (EUR)

Unconventional
Reservoirs

Petrophysical characterization of Shale

plays at well-scale is the basic step for
resource assessment.

Naturally-fractured Reservoirs Assessment

Evaluation of the fracture connectivity
leads to quantify wellbore deliverability,
allowing multiple scenarios to be
simulated and choosing the best case for
future field development.

Geological description of fractured

reservoirs has a final goal that consists
in creating a 3D Discrete Fracture
Network, which allows to identify the
main characteristics of the fractured
environment, leading to be the support
for dynamic simulations.

Components of Naturally Fractured Reservoirs Assessment

Detailed Structural Modeling
Dual-porosity Petrophysical Modeling
Outcrop and Image log fractured
systems
3D Discrete Fracture Network
Fractured system connectivity

3D Integrated Stochastic Modeling

Reservoir Dynamic Simulation
Uncertainty Assessment
Scenario Modeling
Strategic Planning and Field
Development

Unconventional
Reservoirs

A fractured reservoir is defined as a

reservoir where naturally originated
fractures are involved in fluid flow
increasing reservoir permeability. In
order to achieve the correct assessment
of fractured reservoirs, natural fracture
analysis is the key critical aspect to take
care of. Novas experience has identified
an integrated workflow that connects
information from several scales, specially
3D seismic, wellbore data and cores
where available.

Post-Mortem Assessment

The post Implementation review

process is based on an integrated and
systematic program of data accumulation
and analysis that is collected after the
implementation of the decision and
provides greater visibility to shareholding
and high level management on how
successful past investments have been,
and whether the projects have achieved
the goals as expected.

To allow for the identification and

implementation of corrective actions on
the project under review or in similar
projects. This is an opportunity to review
not only the current cash flows of a
project at the date of review, but also to
review the updated future cash flows of
that project.
To allow for the review of current
procedures and the design of better ones
to improve future decisions, to guarantee
better implementation and better
conformance.
Our Post Implementation Review
services can be applied on the following
scenarios:

Additionally the purpose of a post

completion review is threefold:

Restoration of Value.

To support continuous improvement

in the capital investment and
implementation process. This process is
oriented towards the future.

Well Post Mortem.

Purchase Price Review

Well Rehabilitation Exercises.

Acquisition Value

Components of Post
Acquisition Reviews

Post Mortem Reviews

Post Investments Reviews
Post Acquisitions Reviews
Restoration of Value
Purchase Price Review

including purchase value

Asset 2
Current Value

including purchase value

Asset 1

Asset 2
Acquisition Value

including purchase value

Acquisition Value

including purchase value

Current Value

Current Value

including purchase value

including purchase value

Post-Implementation
Reviews

Detailed Post-Implementation (i.e

Post-Acquisition or Post Mortem)
reviews are a new initiative by NOVA
and are intended for asset assimilation
(including quantification of operational
improvements), upside identification and
risk assessment, and recommendations
for improving performance.

Humberto 1 281 PB. A

Ciudad Autnoma de Buenos Aires, Argentina.
Zip Code: C1103ACE
www.novaenergy.com.ar
Tel: 4300-9099/79
4300-1345
Contact: +54 (911) 68409070
+54 (911) 68409030
m.mallaviabarrena@novaenergy.com.ar
h.verdur@novaenergy.com.ar