The Role of AVO in Prospect Risk Assessment

AbstractEssentially all companies exploring for oil and gas should perform a risk analysis to understand the uncertainties in their interpretations and to properly value order prospects in a company’s drilling portfolio. For conventional exploration in clastic environments, primarily sands encased in shales, a key component of the risk analysis process is evaluating direct hydrocarbon indicators, which can have a significant impact on the final risk value. We investigate the role AVO plays in the risk assessment process as a portion of a comprehensive and systematic DHI evaluation. Documentation of the geologic context and quantification of data quality and DHI characteristics, including AVO characteristics, is necessary to properly assess a prospect’s risk. A DHI consortium database of over 230 drilled prospects provides statistics to determine the importance of data quality elements, primarily in class 2 and 3 geologic settings. The most important AVO interpretation characteristics are also identified b...