Mexico Burgos Basin Presentation

Integrated Geophysics Corporation

Structural Framework

Burgos Basin


ASSESSING THE POTENTIAL OF THE BURGOS BASIN

Structural framework of the Super Burgos Basin

Correlation to production trends:

Tertiary Plays: Frio, Vicksburg & Wilcox

Cretaceous Play: Eagle Ford (Agua Nuevo & San Felipe)

Jurassic Play: La Casita (Pimienta)

Distinctions between South Texas Basin & Mexican Burgos Basin

Current Shale Wells

Basement structure & depths

Why structure is important in the Burgos Basin


Reduced-to-Pole Magnetic Intensity

South Texas Basin

Data Map Source: World Digital Magnetic Anomaly (WDMAM) grid file Sept 2007 Grid: 1 kilometer data grid Range: -186 to 413nT RTP: IGC calculation Unfortunately, the regional data control of the World Map

data allows only for a

qualitative analysis.


Northeastern Mexico Coahuila State Onshore area: 24,200sq mi. Southern extension of the Maverick Basin Texas Western extension of the South Texas Basin


Super Burgos : name coined for the area

bounded by the mega-

shears.


This aeromagnetic map

was selected to illustrate

complex relationship of

the sub-basins bounded

by significant structural

elements:

mega-shears, basement structures surface geology


South Texas Basin

Mexicos Shale -appears to be of good quality.

- geologic structure of the sedimentary basins are considerably more complex.

- compared to US Coastal gently dipping shale belts, Mexicos coastal shale zone is narrower, less continuous and structurally more disrupted.


Sub- Basins

Sub Basins - a complex of related sub-basins bounded by the significant structural elements. -South Texas & Burgos are outlined as the one sub-basin within the Super Burgos area.

-All other sub-basins outlined lie within Burgos Basin; all are correlate to Border Rift System.

East-Central Mexico Stratigraphy

Frio 1948 -Reynosa Vicksburg 1945 - Mision

Wilcox 1959 -Penalva


Frio, Vicksburg and Wilcox Trends

Frio, Vicksburg and Wilcox Trends

Tertiary Plays generally described as growth fault related plays. Tertiary sequence rocks have

a regional dip toward the east

and are affected by a serious

of major normal faults roughly

parallel to the coastline and

with displacement downward

to the Gulf Coast.

Source: 80% from Upper Jurassic (Tithonian) & Paleogene Shales

Production Conventional exploration started 1911 Today - 3,500 active natural gas wells



South Texas Basin

Miocene & Tertiary Growth Fault Plays

Conventional Sandstone Reservoirs 20 distinct plays

Source: Hernandez-Mendoza, 2008

B E

Source: Echanove, 1986


Growth faults are the dominant trap which includes anticlines, tilted blocks,

and sedimentary wedges on the

downside of the fault.

East-Central Mexico Stratigraphy

Agua Nuevo (San Felipe) Late 2010- 6 shale wells

La Casita (Pimienta) March 2013 PEMEX Anhelido-1 400b/d of shale liquids

Eagle Ford Haynesville

As of Sept 2013: 343 Tcf gas & 6.3bb projected


Agua Nuevo (Eagle Ford) and La Casita (Haynesville) Trends

Aqua Nuevo San Felipe

Shale plays - Cretaceous and

Upper Jurassic sequence contains

basinal, organic-rich and thermally

mature argillaceous rocks.

This includes the Aqua Nuevo and

La Casita including the Pimienta.



Anheldo-1

1st shale oil well

discovery:

La Casita formation

(dry gas)

March 2013

To-date 7 shale related wells have been drilled:

Emergente dry gas 4,071m 13,358ft

Percutor-1 dry gas 3,436m 11,270ft

Habano-1 gas/con 3,770m 12,366ft

Montanes-1 gas/con 3,200m 10,496ft

Nomada-1 --- 2,850m 9,348ft

Arbolero-1 dry gas 4,007m 13,143ft

Anhelido-1 oil & gas 3,945m 12,940ft Reduced-to-Pole Magnetic Intensity


Production Summary As of Sept 2013

Modest gas flows (>3 million cft/day) Wells exhibit steep declines Well cost: $20-25 million per well PEMEX plans to drill 75 Burgos shale wells thru 2015 & increase production to 2B cft/day by 2025

Regional Cross-Section of Wells across the Six Basins

Note: the influence of the basement structure to the success of deep Jurassic play: La Casita & Pimienta.


Fault Composite & Regional RTP

Megashears & Transforms have influence the generation of the depo-centers for oil & gas generation (sub-basins) & therefore the prospective area for shale exploration. Northern Burgos Basin is related to the South Texas Basin. Southern Burgos Basin is best described as the Border Rift System.


Megashear (Jurassic) Discontinuities parallel to

the direction of Atlantic

opening.

Transforms (Cretaceous)

These features are

recognized by:

- linear block boundaries

- block offsets

- fold offsets

- stratgraphic changes.

Chittim Arch located in the Maverick Basin US

illustrates the structural complexity of the reservoir sands

Jurassic

Source: Ewing 2012


Chittim Anticline is an interesting feature.

Located in center Maverick county runs NW-SE for 30 miles (18km) & is 2 miles (1.2km) wide

Good example of possible systems that underlie other folds in the Burgos Basin.

The surface structure reflects the fold cover over a deep half-graben complex

Similar structures can be identified with regional gravity & magnetic data.

Barrel of Oil Equivalent is high: 343 Tcf & 6.3bb gas & oil projected by

ARI June 2013.

Burgos Basin & South Texas Basin are related as bounded by Jurassic mega tectonic shears Basins have the same Miocene & Tertiary structures regional normal faults

roughly parallel to the coastline and with displacement downward to the Gulf Coast.

Basins differ in their deep structural configurations.

Structural framework of Burgos is complicated by close-spaced

Cretaceous transfer systems. Aqua Nuevo (San Felipe) will be impacted by these K transfer faults; unlike the

US Eagle Ford. Jurassic Play: La Casita (Pimienta) will be governed by rift geometries.

Cross-trend structures, rift valleys, tilted blocks

Exploration strategy will have to be cost efficient & include state-of-the-

art technology and multiple data sources



Advanced Resources International, Inc. for U.S. Energy Information Administration & U.S. Department of Energy, Technically Recoverable Shale Gas and Shale Oil Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States, EIA/ARI World Shale Gas and Shale Oil Resource Assessment, Mexico, section II p. 1-26, June 2013

Beebe B.W., Occurrence of Natural Gas in Mexico, AAPG Memoir M 9: Natural Gases of North America, Volume One, p. 209-232, 1968 Dixon B., Flint D., MEXICO! A New Opportunity, CIM Petroleum Society. Petroleum Economics Special Interest Group. March 27, 2003 Ewing T. E., Tectonic domains in the Rio Grande / Rio Bravo border region, Texas and Mexico: Laramide structures suggest earlier history: Gulf Coast Association of Geological Societies Transactions, v. 61, p. 141155.

Fredrick J., Mexico boasts first shale oil, BNamericas, http://www.bnamericas.com/news/oilandgas/mexico-boasts-first-shale-oil, March 7, 2013 Galicia-Barrios, Guadalupe J., Mexicos Shale Oil and Gas Plays: Potential and Exploration Strategy,; AAPG Search and Discovery Article #901662013 AAPG International Conference & Exhibition, Cartagena, Colombia, 8-11 September 2013 Hackley, P.C., Geological and geochemical characterization of the Lower Cretaceous Pearsall Formation, Maverick Basin, south Texas: A future shale gas resource?,AAPG Bulletin, V. 96, No. 8 (August 2012), P. 14491482

Hentz T. F., Ruppel S. C., Regional Stratigraphic and Rock Characteristics of Eagle Ford Shale in Its Play Area: Maverick Basin to East Texas Basin, Search and Discovery Article #10325 (2011)

Hernandez-Mendoza J. J., Hentz T. F., DeAngelo M. V., Wawrzyniec T. F., Sakurai S., Talukdar S. C., and Holtz M. H., Miocene chronostratigraphy, paleogeography, and play framework of the Burgos Basin, southern Gulf of Mexico, AAPG Bulletin, V. 92, No. 11 (November 2008), P. 1501-1535 Lozano, Roberto, The challenges for shale gas production in Mexico, Regional Workshop on the Changing Global Market and Unconventional Gas, 6-8 May 2013, Jakarta, nesia Prieto C., Rowe J. D., A new frontier: Deep gas exploration offshore South Texas, USAAn assessment tool, Gulf Coast Association of Geological Societies Transactions, v. 57, p. 663-666.

Yurewicz D. A., Chuchla R. J., Richardson M., Pottorf R. J., Gray G. G., Kozar M. G., Fitchen W. M., Hydrocarbon generation and migration in the tampico-Misantla basin and Sierra Madre Oriental, East-Central Mexico: evidence from an exhumed oil field in the Sierra De El Abra, Sedimentation and Diagenesis of Middle Cretaceous Platform Margins, East-Central Mexico, 1997, p. 1-24

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Mexico Burgos Basin Presentation

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