This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, rega rding the quality, completeness or accuracy of the information contained herein. All and any such

responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number

09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HF

Exploration Forum

12th December 2018

8:30 – 9:45am

Sponsored by

Be ready for the menti survey later…

www.menti.com Enter code 60 76 76

© OGA 2018

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Exploration Forum

The XTF provides input on key strategic issues such as UK Industrial Strategy and collaboration

Sponsored by

Agenda

• XTF Introduction (Nick T & Nick R)• NDR Update (Rod Crawford)• Petroleum Systems Project (Jon Parry)• OGTC Technology Update (Gillian White)• Exploration Improvements (Katy Heidenreich)

Followed by OGA’s Opening Keynote at 10am

Annual Exploration Well Counts

Exploration drilling low but steady despite of oil-price variations

exploration

task force

MER UK Exploration Task Force exploration

task force

Role: To revitalise exploration on the UKCS in order to add reserves to

replace production and secure longevity of the UK Petroleum Industry.

Key Priorities:

Attracting Investment – Promote inward investment and raise the profile of UK Exploration & Production

Delivering Future Activity – Define the Yet-to-find Potential of the UKCS and deliver resources and

value through appropriate activity

Licensing Rounds – Support the OGA’s licensing activity and ensure fit for purpose licencing regime that

supports activity and investment

Regional Exploration – Support delivery and promote funding of collaborative regional Petroleum

Systems Project. Ensure project produces useful and valuable deliverables to industry

Data Release & Technology – Support delivery of NDR and improvements to data release mechanisms.

Ensure timely delivery of exploration related OGTC projects and that data is effectively published. Support

TLB digital technology challenge.

The XTF provides input on key strategic issues such as UK Industrial Strategy and collaboration

Exploration Task Force Members

Please contact XTF Members to raise Issues or to Volunteer for Sub-Groups

exploration

task force

Andy Alexander

Chief Geophysicist,

Siccar Point Energy

andy.alexander@

siccarpointenergy.co.uk

Nick Terrell

Managing Director,

Azinor Catalyst

Nick.Terrell@

azinorpetroleum.com

Jon Parry

Industry Professional

(former Head of

Exploration, DONG)jonparry@me.com

Chrysanthe Munn

Exploration Manager,

BP

Chrysanthe.Munn@bp.com

Katy Heidenreich

Upstream Ops

Optimisation Mgr,

Oil & Gas UK

kheidenreich@

oilandgasuk.co.uk

John Underhill Chief Scientist & Prof.

Heriot-WattUniversity

j.r.underhill@hw.ac.uk

Jenny Morris VP Exploration

UK, Equinor

jemor@equinor.com

Dave Lewis Team Lead UKCS

Chevron

dave.lewis@chevron.com

Nick RichardsonHead of Exploration &

New Ventures, OGA

nick.richardson@ogauthority.co.uk

Colin PercivalTechnical Director,

Parkmead Group plc

colin.percival@parkmeadgroup.com

Graham Goffey Founder/Director

Soliton Resources Ltd.

grahamgoffey@outlook.com

Ian Edwards OBE

EVP NW Europe &

Asia Pacific, Spectrum

Ian.Edwards

@spectrumgeo.com

Plus: Ben Hillier Exploration Manager, Shell UK

Exploration Forum

The XTF provides input on key strategic issues such as UK Industrial Strategy and collaboration

Sponsored by

Agenda

• XTF Introduction (Nick T & Nick R)• NDR Update (Rod Crawford)• Petroleum Systems Project (Jon Parry)• OGTC Technology Update (Gillian White)• Exploration Improvements (Katy Heidenreich)

Followed by OGA’s Opening Keynote at 10am

© OGA 2018This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, rega rding the quality, completeness or accuracy of the information contained herein. All and any such

responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number

09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HF

NDR Update

Exploration ForumPROSPEX 2018

Wednesday 12th December 2018

A massive demand for data

Launches early2019

Backed by industry levy, supported by

regulations

Will enhance collaboration andpreserve

data as a strategic nationalasset

Huge value from access totimely,

transparent petroleum data

Will create the conditions to drive data

driven investment, analysis and

technologies such as AI and machine

learning

Improved transparency and usability driving data use and analysis

National Data Repository (NDR)

The Grand Data Challenge

Powers and Regulations

NDR

Maximising value of

data for the UK

Vision 2035 - a massive opportunity to contribute to £140 Bn GVA by2035

• Building on the legacy baseline

• Increasing transparency and

quality (completeness)

• Optimising data for use

• Encouraging the development of

new techniques, innovation and

capabilities

• Shaping the NDR of the future (NDR

2.0)

• Ensuring sustainability and value

for money

NDR NextSteps

Information and Samples

RegsImplementation

S34 notice to allow disclosure

NDR 1.0 Go live Q1 2019

Advisory Committee(OGA,

Industry, Academia, OGTC,

BGS)

NDR 2.0Improving datacompleteness,quality, analysis

Open competitiontender for 2020/21

Bringing together critical petroleum-related information and metadata

• Phased Launch from mid-February

2019

• “Regulatory” users prioritised to

manage demand on the system

• Access for all, not just levy payers

• Functionality to build on CDAplatform

• Updated look and feel, but initially

similar to CDA

• Workflows to support execution of new

regulations

• Be aware: data quality and

completeness will improve over time.

Don’t expect perfection from Day 1!

• Future improvements to platform and

datasets

PROTECTIVE MARKING(as appropriate)

NDR Advisory Committee

Advisory Committee Members and OGA Governance

NDR Advisory Committee

Chair : Nic Granger

Director of Corporate & CFO

OGA Board

OGA Audit and Risk Committee (ARC) –

review, assurance and audit of cyber

capability)

OGA IS Steering Committee

(OGA Leadership Team)(reviews IS Strategy, plans, performance, risks)

Reportand

advise

Reportand

advise

Reportand

adviseReportand

advise

Approve

Strategy

Industry

Representatives• Joyce Adie –

Nexen

• Rod Crawford-

Zennor

• + 2 ISC RepsTBA

Oil and Gas UK

Representatives• KatyHeidenreich

– O&GUK

• MalcolmFleming

- CDA

BGS

RepresentativeMatt Harrison

Academic Representative

Professor John Underhill

OGA Representatives

• Nick Richardson – Head of

Exploration and NewVentures

• Carlo Procaccini – Headof

Technology

• Simon James –CIO

• Andy Thompson – NDR

Manager

• David Lecore – Compliance

Manager

OGTC

RepresentativeSteve Ashley

NB: disclosure is discretionary; these timings are the earliest the OGA can disclose.

Data Disclosure Periods - Summary

Legacy

Data Acquired

prior to 2018

Future

Data Acquiredfrom 2018 Onwards

RelevantLegislation

Including Statutory InstrumentsPetroleum Act 1998, etc

ModelClauses

Orders

Energy Act 2016Oil and Gas Authority (OffshorePetroleum)(Retention

of Information and Samples) Regulations2018

Wells 3 or 4 Years 2 Years

Summary Well Results None Immediate

Samples 3 or 4 Years 2 Years

Production Data (by Field) 3 months 2 months

FDPs & Studies None On determinationFDPs 5 years after First HCs

Seismic shot under

Production Licence3 or 4 Years

from end acquisition

5 Yearsfrom end processing

Seismic shot under

Exploration Licence

3 or 5 Yearsfrom end acquisition

10 Yearsfrom end processing

15 Years for Raw

Exploration Forum

The XTF provides input on key strategic issues such as UK Industrial Strategy and collaboration

Sponsored by

Agenda

• XTF Introduction (Nick T & Nick R)• NDR Update (Rod Crawford)• Petroleum Systems Project (Jon Parry)• OGTC Technology Update (Gillian White)• Exploration Improvements (Katy Heidenreich)

Followed by OGA’s Opening Keynote at 10am

© OGA 2018This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, rega rding the quality, completeness or accuracy of the information contained herein. All and any such

responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number

09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HF

Petroleum Systems Update

Exploration ForumPROSPEX 2018

Wednesday 12th December 2018

Regional Projects: Industry & Academic Collaboration

21CXRM

Regional & Thematic Focus Holistic UKCS Project

Data & Technology Focus

Supporting

Government Seismic

Programmes

21CXRM Phase 1

21CXRM

Phase 2

Frontier Basins

Research Programme

2015 - 2017 2018 onwards

Industry Feedback: Future Projects should focus on providing

Quality Data – putting the data in the hands of those who use it

UKCS Petroleum Systems Project

Provision of Quality Data

UKCS Petroleum Systems Project: Year 1

Objective: Build a comprehensive, consistent geochemical database, plus supporting geological data,

and deliver it out to industry and academia for future use

Extraction and compilation of legacy geochemicaldata

QA/QC of data and identify data gaps

Requests to Operators for missingdata

New samples will focus on fluidanalysis

Industry domain expertise to provide technical steer&

review

Easily Accessible and Usable Database

Open publication of Year 1 deliverables in Q2 2019

Reports on UKOGDwebsite

Released3rd

Party Datasets

BGSsampledata files

New operator

reports/files

GeochemistryData Sources Database compilationworkflow

Database technicalnotes

Data source catalogue & database

Overviewreports

Final gap analysis

Delivery in p:IGI and platform-independentformats

Geochemical Deliverables

Geochemical database within consistent stratigraphic framework

UKCS Petroleum Systems Project: Year 1

PetroleumSystemsProject:ProposedModel

• Designed to enable development & implementation of machine learning / artificial intelligence through

both data extraction and subsequent data analysis

Comprehensive delivery of key thematic datasets

2020 2021 20222017 2018 2019

30th 31st 32nd 33rd 34th

Mature Frontier Mature Frontier Mature

VISION: HOLISTIC PETROLEUM SYSTEMS PROJECT

MACHINE

LEARNING PILOT

INDUSTRY FUNDEDGOV.FUNDED

DELIVERABLES RELEVANT TO UKCS & ONSHORE

DATABASES & INITIAL INTEPRETATIONS FOR PARTICIPANTS

OPEN DELIVERABLES VIA OGA DATA

CENTRE OR NDR

ACADEMIC PARTNERSHIPS Centre for Doctoral Training (CDT) and others

SEAL ANALYSIS & FIELDANALOGUES

DATABASE OFSHOWS, MUD GAS, FLUID

INCLUSIONS; ANALOGUEDATABASE

Year 1 Year 2 Year 3 Year 4

POST-WELL ANALYSIS / LOOK BACK

DIGITAL STREAM: APPLICATION DATA SCIENCE FOR DATA EXTRACTION, QC & ANALYTICS

WELLLOOKBACK

DATABASE KICK-START

GEOCHEMICAL

DATABASE,QC WELLTOPS, DEPTH GRIDS

PRESSURE DATABASE, INFILL GEOCHEMICAL

SAMPLING

AI DATA MINING TRIAL–PRESSURE DATABASE INFILL GEOCHEMICAL ANALYSES (ROCK DATA)

STRATIGRAPHY AND RESERVOIR PROPERTIES

RESERVOIR QUALITY DATABASE PLUS BIO-,

CHEMOSTRATIGRAPHY, HEAVY MINERALANALYSIS

UKCS scale that would be• Access to high quality geoscience datasets at a

extremely costly to generate in-house

• Share costs to maximise value (MER alignment)

• Exclusive Access to Results for participants

• Exclusivity period - proposed 3 years per phase

• competitive edge over non participants

• The resulting Databases will provide a solid foundation to link in to regional studies

to support licence applications and help fulfil work programmes and work

commitments.

• Opportunity to Influence & Steer. Order and Priorities.

PetroleumSystemsProject:Benefits of Participation

Access to a High Quality, easily accessible Database

UKCS Petroleum Systems Project–Timeline & Way Forward

• Project Outline – Exploration Managers Forum, Prospex December 2017

• Initial Participation Request Letter – February 2018• Supplementary Information

• Industry Survey – March2018• c.40% of companies Responded. Positive response.

• Presentation – Exploration Managers Forum, Geol. Soc. July 9th 2018

• Industry follow-up – September toNovember

• Contact individual companies – feedback

• Project Update – Exploration Manager’s Forum, Prospex December2018

• Final Request for Commitment – Q12019

Aiming for £1MM industry funding per year from YR 2- annual contribution £40K – £20K - £10K* (Currently being reviewed)- 3 year commitment

*£40,000 - licensees with production£20,000 - licensees with no production£10,000 - non-UKCS licence holders, micro-businesses, onshore licencesonly

Engagement and Collaboration with Industry

Key Messages

Building Collaboration - listening to Industry feedback

Delivering Data – ease of access to high quality, QC’d, comprehensive and

consistent geoscience datasets

Participation will give a competitive edge

Potential to build a complete dataset for UKCS Petroleum System analysis

Visit OGA Stand for More Details

Exploration Forum

The XTF provides input on key strategic issues such as UK Industrial Strategy and collaboration

Sponsored by

Agenda

• XTF Introduction (Nick T & Nick R)• NDR Update (Rod Crawford)• Petroleum Systems Project (Jon Parry)• OGTC Technology Update (Gillian White)• Exploration Improvements (Katy Heidenreich)

Followed by OGA’s Opening Keynote at 10am

Technology Update

Gillian White

Subsurface Solution Centre Manager

Wednesday 12th December2018

Subsurface Solution Centre

Exploration lifecycle timeand costhalved

1 Billion BOE additional recovery from sanctionedfields

• Complements Wells, Asset Integrity, Digital Transformation, Marginal Developments, Decommissioning SC’s

• OGTC has £180MM to co-invest in technology projects

• Technology roadmap aligned with TLB Grand Challenges

• Support recovery of up to 20 billion barrels of UKCS potential resources

• Subsurface technology focus areas:

Discover More Develop More Recover More

Mature 1 Billion BOE discovered resources to reserves

Subsurface Solution CentreCurrent status

• Two OGTC Digital “Call for Ideas” NNS wells projects to Subsurface• First Members’ meeting Feb 5th

• OGTC funding model• Subsurface Technology “Sparks” to date• Roadmap and 2019 Calendar• Current projects progress ( Digital Transformation Call for Ideals “Machine Learning in Exploration” 2018)• Vote on themes of 2019 Workshops2 & 3

• Workshop 1 “A Seismic Shift Towards Halving Exploration Lifecycle and Cost” Save The Date Feb 21st

• Canvassing and signing up members gillian.white@theOGTC.com

• Carry over in-kind contribution to other solution centres

Gillian White

Subsurface Solution Centre Manager

Contact us:

gillian.white@theOGTC.com

Iain.martin@theOGTC.com Jason.Paterson@theOGTC.com

Web: www.theOGTC.com

Twitter: @theOGTC

Exploration Forum

The XTF provides input on key strategic issues such as UK Industrial Strategy and collaboration

Sponsored by

Agenda

• XTF Introduction (Nick T & Nick R)• NDR Update (Rod Crawford)• Petroleum Systems Project (Jon Parry)• OGTC Technology Update (Gillian White)• Exploration Improvements (Katy Heidenreich)

Followed by OGA’s Opening Keynote at 10am

Licensing Improvements

Exploration ForumPROSPEX 2018

Wednesday 12th December 2018

The Innovate license has brought significantimprovements…How can OGA and industry work together to make it even better?

What’s workingwell Opportunities to further improve

Fair, transparent application process Shorten the time between mature licensing rounds

Flexible work programmes and timing Improve visibility/accuracy of licensing timetable

Lower Entry Hurdles Align timing of award announcement with company budget cycle

Applies to all areas Improve efficiency of licensing round process

Lower farm in hurdles

Separate frontier/mature area licensing

Out of round applications are possible

More than 50% improvement in time from launch to award

Exploration Forum – December 2018

Pursuing further improvements to Explorationlicensing

• Industry provided feed back to XTF

• Discussion at MER Steering Group (Q3-18); proposalssupported

• How can we improve predictability of investment climate?• Publish month, rather than quarter, of round/award announcements

(subject to ministerial approval)

• How can we improve efficiency of license round process?• Improve visibility/understanding of Licensing Process

• Support XTF to explore efficiency opportunities, e.g. fast track, open licensing for mature areas, etc.

Exploration Forum – December 2018

Next steps: quick wins and opportunitiesExploration Task Force is seeking industry feedback

• Task group formed

• Priority: Improve visibility of overall process• Visual description of combined OGA/OPRED process

• Include milestones and constraints

Quickwin

Opportunities to explore Things to consider…

Award license in tranches? What are the disadvantages/risks?

Optimise award timing What would optimal timing be?

Move to open rounds in certain areas, e.g. SNS? Introduces uncertainty, risk of lower interest

Increasing frequency of mature license rounds Increases fragmentation, Increased burden on OGA

More frequent Supplementary Rounds Increased burden on OGA (limited resources)

Exploration Forum – December 2018

Now it’s over to you….

Take out your phone

www.menti.com

Enter the code 60 76 76

Menti questionsQuestion Answer options

Would improved alignment between timing of license award and budget cycle help your organisation in securing investment for exploration?

Yes/No

What timing would you prefer for round launch? (Assuming the round is open for 120 days?)

Q1/Q2/Q3/Q4

What further Innovations would you like to see in the UK Licensing Process?

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Awards in tranches would be advantageous. Agree/Disagree

Would your organisation support open license rounds in applicable areas,e.g. SNS?

Yes/No

Would your organisation support increased frequency of mature license rounds, e.g. annual

Yes/No

Timely relinquishments impact license process efficiency – how do we improve this?

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Exploration Conference 2019

Venue: 30 Euston Square, London Date: 31 January 2019

This event has become a key date in the exploration calendar, offering a unique opportunity for the industry to share stories on the exploration challenges in the North Sea and Atlantic Margin.

In the spirit of open collaboration, operators present case studies describing the challenges of drilling exploration and appraisal wells, offering a fascinating insight into success and failure in this challenging area.

2018:

In 2018, 100% of delegates described the conference as excellent or good

100% thought the topics covered were relevant and pertinent

90% of delegates thought the conference delivered value for money

2019:

• Presentations include lookbacks on wells such as Apache’s Callater, Equinor’s Verbier, Azinor Catalyst’s Partridge and Shell’s Shearwater well

SponsorshipTwo sponsorship opportunities remain – contact Kate Fairlie, OGUK for further information – kfairlie@oilandgasuk.co.ukDelegatePlacesNow open for booking! Special ticket rates like ‘4 for 3’ and ‘buy 1 , get a youngprofessional’s ticket half price’ available - www.oilandgasuk.co.uk/events

Thank You

Exploration ForumPROSPEX 2018