Nova Scotia - Dalhousie University

Preliminary Proposal to Offshore Energy Research Association of Nova Scotia
Background
Keith Louden and Mladen Nedimovic
Departments of Oceanography and Earth Sciences
Dalhousie University, Halifax, NS
5-July-2012
Over the past 15 years, there have been a number of seismological investigations by Dalhousie
University in collaboration with the GSC-Atlantic to study the regional geo-tectonic framework of the
Nova Scotia margin, including its relationship to the Morocco conjugate margin (Louden et al., 2012).
Recent work funded by the Offshore Energy Technology Research (OETR) Association has included
further detailed seismic (Delescluse et al., 2011) and geothermal (Negulic, 2010) studies of the margin.
We also helped reprocess the 2009 OBS data collected by OETR, as part of the Play Fairway Analysis
(PFA) program (Louden et al., 2011); and have collected an additional ocean bottom seismometer (OBS)
refraction profile (OCTOPUS) to help connect and interpret the deep offshore structures observed on
the OETR and SMART-1 profiles (see Fig. 1 for profile locations).
We now propose a number of shorter refraction profiles with dense OBS sampling to help further our
understanding of the complex deep sediment and upper basement structures within the recent
exploration blocks offshore Nova Scotia. This work builds on our recent results from a similar study for
ExxonMobil across the Orphan Basin (Lau et al., 2012; Watremez et al., 2012). In particular, this study
has shown how the velocity modeling of detailed wide-angle refraction observations can significantly
improve the definition of the lower sediment and basement geometries. Such results would have had a
major impact on the sighting of exploration wells if they had been available before drilling. We expect
that a similar analysis on the Nova Scotia margin will also offer additional insights for drilling, in
particular for improving the interpretation of the complex sediment and basement structures with
special relevance to the deep Jurassic hydrocarbon sources suggested by the PFA.
The work proposed here will form part of a larger proposal that we plan to submit to the Atlantic
Innovation Fund (AIF) in late September 2012 (see LOI in Appendix A). This work builds on our recent
collaboration with Superport Marine Services (SMS) Ltd. in conducting refraction seismic observations
(OBWAVE and OCTOPUS projects), their previous experience during the collection of 2009 OETR
Refraction Line and the significant investment that SMS Ltd. has since made to upgrade their seismic
source array. The longer-term objective of our AIF Project is to build a new set of OBS instruments and
analytical tools that can be used on future studies of continental margin structures in partnership with
Superport Marine Services Ltd.
Louden & Nedimovic Preliminary Proposal Page 1

Proposed Work
In Figures 2-7, representative sections are shown along the reprocessed NovaSPAN reflection profiles
together with the seismic horizon interpretations made for the PFA. A comparison of the interpretations
with the observations indicates that many of the picks for the lower sediment, salt and basement
horizons are characterized by high uncertainty. In addition, the highly variable velocities represented by
these deep structures cannot be well defined by reflection processing of the surface-towed hydrophone
array with restricted offsets in such regions of deep water and thick sediment. Poor constraints on deep
velocities make it challenging to distinguish between structures that represent deep sediment and
shallow crystalline basement, and result in significant uncertainties in conversion from prestack time
migrated (PSTM) images to depth sections or in determination of prestack depth migrations (PSDM).
High uncertainty in both picking deep horizons and determination of deep velocities directly translate
into high uncertainty in interpretation of deep structures.
Modeling of refraction measurements in structurally complex deep offshore areas in combination with
the reprocessed MCS images can significantly improve the resolution of the deeper sediment and
basement velocities if the spacing between OBS locations is sufficiently dense. We propose two sets of
spacing, every 4-km with a single deployment of our existing 20 OBS or every 2-km using a 2nd offset
deployment of the OBS. Given a proposed budget of approximately 500 k$ for data acquisition, we
expect to be able to conduct four 20 OBS deployments. Profiles with relatively simpler structures (e.g.
sections A, B, D and E) could be collected with a single deployment (NB: In some cases such as section B,
OBS locations could be varied along the profile according to the structural complexity); while more
complex structures (e.g. sections C and F), require double deployments. Possible combinations of
profiles could be the following: (1) sections A, B, D and E (each with a single 4 km OBS spacing
deployment); (2) sections A and D (each with a single 4 km OBS spacing deployment), and C or F (with a
double 2 km OBS spacing deployment); (3) sections B and E (each with a single 4 km OBS spacing
deployment), and C or F (with a double 2 km OBS spacing deployment).
We propose that the data be acquired in summer 2013. A precise budget can be determined once the
preferred profiles are determined. We have been advised that funding by OERA needs to be agreed in
October 2012 in order to be counted as part of the AIF proposal. Note that this proposal to OERA only
includes the costs of data acquisition. Analysis of the OBS data would be funded by the AIF as part of the
development and commercialization of new modeling techniques. Thus, although this proposed work
could be accomplished separately from the AIF (if the AIF is unsuccessful), there is a significant cost
benefit to the combination of the two proposals.
Louden & Nedimovic Preliminary Proposal Page 2

References
Delescluse, M., Nedimovic, M.R., and Louden, K.E., 2011. 2D waveform tomography applied to long
streamer MCS data from the Scotian slope, Geophysics, 76, B151-B163, doi:10.1190/1.3587219.
Lau, K.W.H., Watremez, L., Louden, K.E., Nedimović, M.R., Welford, J.K., & Karner, G.D., New wide-angle
seismic constraints across a magma-starved, hyper-extended North Atlantic rift basin – Orphan Basin,
Central & North Atlantic Conjugate Margins Conference, Dublin, Ireland, 22-24 August 2012;
http://www.conjugatemargins.ie/downloads/CM_A5_oralposterlist.pdf
Louden, K., Lau, H., Wu, Y. & Nedimovic, M., 2011. Annex 14: Refraction Crustal Models and Plate
Reconstruction of the Nova Scotia and Morocco Margins, in: Play Fairway Analysis Atlas, Nova Scotia
Offshore, Department of Energy, http://www.novascotiaoffshore.com/analysis#atlas, 87 pp.
Louden, K., Wu, Y., and Tari, G., Systematic Variations In Basement Morphology And Rifting Geometry
Along The Nova Scotia And Morocco Conjugate Margins, in: Mohriak, W. U., Danforth, A., Post, P. J.,
Brown, D. E., Tari, G. C., Nemčok, M. & Sinha, S. T. (eds) 2012. Conjugate Divergent Margins, Geological
Society, London, Special Publications v.369, doi 10.1144/SP369.9, 21 pp.
Negulic, E., 2010. Thermal structure of the central Scotian slope: Seafloor heat flow and thermal
maturation models. MSc Thesis, Dalhousie University, 225 pp.
Watremez, L., Lau, K.W.H., Nedimović, M.R., Louden, K.E., & Karner, G.D., Orphan Basin crustal structure
from tomographic inversion with dense receivers, Central & North Atlantic Conjugate Margins
Conference, Dublin, Ireland, 22-24 August 2012; http://www.conjugatemargins.ie/downloads/
CM_A5_oralposterlist.pdf
Louden & Nedimovic Preliminary Proposal Page 3

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Figure 1. Location of seismic proles oshore Nova Scotia. NovaSPAN MCS
reection proles shown in orange, GSC FGP MCS proles in red and GSC
UNCLOS MCS proles in blue. Green crosses show location of OBS locations
for SMART-1,2,3, OETR Geopro, and OCTOPUS refraction proles. Location
of the proposed dense OBS proles is shown in black. GXT reection
images for these proles (segments A-F) are shown in Figs. 2-7. Also shown
are location of exploration blocks, salt structures and bathymetric isobaths.
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Figure 2. Segment A from NovaSPAN MCS reection prole
1800 (see Fig. 1 for location). Top shows interpretation overlay
from 2010 OETR Play Fairway Analysis. Small circles show
potential location of 20 OBS positions (black), with approximate
spacing of 4 km over a total length of 76 km, and additional
20 OBS positions (red) to yield a reduced oset of 2 km.

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Seabed
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NovaSPAN 1600
Figure 3. Segment B from NovaSPAN MCS reection prole
1600 (see Fig. 1 for location). Top shows interpretation overlay
from 2010 OETR Play Fairway Analysis. Small circles show
potential location of 20 OBS positions (black), with approximate
spacing of 4 km over a total length of 76 km, and additional
20 OBS positions (red) to yield a reduced oset of 2 km.
1 s
Two-way Travel Time
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K101
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Figure 4. Segment C from NovaSPAN MCS reection prole
1400 (see Fig. 1 for location). Top shows interpretation overlay
from 2010 OETR Play Fairway Analysis. Small circles show
potential location of 20 OBS positions (black), with approximate
spacing of 4 km over a total length of 76 km, and additional
20 OBS positions (red) to yield a reduced oset of 2 km.

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NovaSPAN 5300 East
Figure 5. Segment D from NovaSPAN MCS reection prole
5300 (see Fig. 1 for location). Top shows interpretation overlay
from 2010 OETR Play Fairway Analysis. Small circles show
potential location of 20 OBS positions (black), with approximate
spacing of 4 km over a total length of 76 km, and additional
20 OBS positions (red) to yield a reduced oset of 2 km.
1 s
Two-way Travel Time
J150
J161
PostRiftBase

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Figure 6. Segment E from NovaSPAN MCS reection prole
5300 (see Fig. 1 for location). Top shows interpretation overlay
from 2010 OETR Play Fairway Analysis. Small circles show
potential location of 20 OBS positions (black), with approximate
spacing of 4 km over a total length of 76 km, and additional
20 OBS positions (red) to yield a reduced oset of 2 km.
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Section E
Seabed
T29
T50
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K101
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Shubenacadie-H-100
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Figure 7. Segment F from NovaSPAN MCS reection prole
5300 (see Fig. 1 for location). Top shows interpretation overlay
from 2010 OETR Play Fairway Analysis. Small circles show
potential location of 20 OBS positions (black), with approximate
spacing of 4 km over a total length of 76 km, and additional
20 OBS positions (red) to yield a reduced oset of 2 km.
-
-
Salt Alloc
Section F
NovaSPAN 5300 West
Seabed
T29
T50
K94
K101
K137
J150
J161
1 s
Two-way Travel Time
PostRiftBase
10 s

Date:
25 June 2012
Atlantic Innovation Fund – Round IX
Letter of Intent
To: Atlantic Canada Opportunities Agency
From: (Name of Proponent): Dalhousie University
Address: 6299 South Street, Halifax, NS B3H 4R6
With this letter of intent, our organization wishes to advise ACOA of its intention to
submit a formal project proposal for consideration under the current round of the
Atlantic Innovation Fund.
A- Proponent Information
Business Number:
The Business Number (BN) is a 9-digit federal numbering system which is assigned to a
business (one business, one number) to deal with the Canada Revenue Agency.
Organization Type (check only one):
Non-profit: Private Sector:
University Incorporated Company
College Sole Proprietorship
Other Post-Secondary Limited Partnership
Research Centre Cooperative
Industry Association
Other Non-Profit
B- Project Information
Project Name or Title: Commercialization of Seabed Seismic Imaging Technology
Contact Name: Kevin Dunn
Title: Director, Industry Liaison and Innovation
Telephone Number: 902-494-16484524
Principal Project Location: Dalhousie University, Studley Campus
1

1. Applicable Sector (check only the most prevalent one) - Note: normally, ACOA will
assign projects to the sector in which the technology is being applied (e.g., an innovative
application of computer software for environmental monitoring would be assigned to the
environment sector and cross-referenced to the software sector.)
Aquaculture
Energy
Environment
Information Technology:
E-commerce
Software
Wireless
Geomatics
Life Sciences:
Biotechnology
Genomics
Health/Medical
Manufacturing/Processing
Natural Resources
Ocean Industries
Defence and Aerospace
Physical Sciences (Physics, Chemistry, Engineering)
Other, specify ___________________________
2. General Description of the Research Proposal - include the project objectives, anticipated
deliverables and challenges. (approximately 1 ½ page)
Successful oil and gas exploration is directly dependent on the analysis of high quality seismic
data, particularly in high-risk, deep-water frontier regions on continental margins. In many of
these offshore regions, sub-seafloor structures are complex which makes it difficult to image the
petroleum system (sediments, rock, and oil & gas) using industry-standard seismic reflection
techniques. Some of the most common of these structures are sub-seafloor salt features, where
the complex topography and large velocity contrast of the salt surface distort images of
reflections from below. Additionally in regions of very deep water and/or thick sedimentary
cover, the velocity structure of deepest sediment and upper basement layers is not well
constrained due to the fixed length of typical towed receiver arrays and the effect of strong water
bottom multiples. These problems reduce the quality of resulting true depth images which
require good velocity control. Such conditions exist offshore Atlantic Canada, where complex
salt structures are commonly observed in deep water regions of both the Scotian and Grand
Banks slope basins. In addition, the deepest sediment layers beneath deep slope basins offshore
Atlantic Canada exhibit strong water bottom multiples and have poor velocity control. Since the
highest quality images are required before committing to the expense of deep water drilling, an
inability to improve images in these environments may thus significantly limit future
hydrocarbon discoveries.
2

The purpose of this proposal is to implement a commercial development and application of new
“state-of-the-art” seabed seismometers and analysis techniques for use in such difficult-to-image
regions. Use of these instruments will be much cheaper than existing commercial technologies
such as bottom cable or node systems and will work over a wider range of shallow and deep
water environments. The proposal would fund approximately 100 multi-component autonomous
seabed seismometers, which would be designed and built within Atlantic Canada. This
development will build on our extensive previous expertise in the development and use of ocean
bottom seismometers (OBS) at Dalhousie University and recent successful collaborations with
Superport Marine Services Ltd. and McGregor GeoScience Ltd. in conducting commercial
surveys. Software would be expanded for commercial processing, analysis and interpretation of
the data in both two- and three-dimensions, building on previous work for academic and
commercial studies.
This project will expand existing research excellence in Atlantic Canada, with strong national
and international affiliations, to transfer expertise and capacity into the private sector. This will
place Atlantic Canada in the forefront of OBS imaging development since no other such
commercial capability currently exists within North America. In addition, expertise gained in the
design of instrument components will also assist local companies in gaining additional
worldwide exposure in the offshore exploration sector. As part of this project, we will collect
additional profiles in a test survey offshore Nova Scotia for imaging of deep water exploration
targets of significant commercial interest for Nova Scotia.
We have established a team with significant long-term experience in seafloor seismic instrument
development and world-wide operations over the past 30 years. Our intended collaboration and
technology transfer to Superport Marine Services and McGregor Geosciences builds on our
recent collaborations on both academic and commercial surveys of the Nova Scotia and
Newfoundland margins. Extending such collaboration between university and local marine
industry fits closely into the mandate of the recently formed Halifax Marine Research Institute.
The new observations that we intend to conduct also fit into the continuing mandate of the
Offshore Energy Research Association (OERA) to enhance the commercial potential for new oil
and gas exploration offshore Nova Scotia.
3. Project Financing - demonstrate progress toward having a realistic financing plan in place
to undertake the project in its entirety, without interruptions due to lack of or delays in
securing appropriate financing. Identify confirmed financing by inserting a checkmark
where appropriate in the “Confirmed?” column of the budget table.
3

Estimated Project Costs and Financing
Estimated Project Costs Estimated Project Financing
Building / Renovations 300,00 Superport Marine
Services
Total Amount Contributor Total Amount Confirmed?
Other Capital Costs 2,100,000 Dalhousie Univ./Halifax
Marine Research Inst.
Wages and Salaries 858,000 Offshore Energy
Research Association
Other Operating Expenses 650,000
Requested AIF
Contribution
Total Project Costs: 3,908,000 Total Project Financing: 3,908,000
4. Key Project Collaborators ( ½ - 1 page)
800,000 YES
375,000 In progress
500,000 In progress
a. Research Team - list the team members, identified as key to the project’s success,
and demonstrate progress toward having their participation confirmed or indicate the
likelihood that their participation will be confirmed.
Mladen Nedimovic, PhD, Canada Research Chair, Principal Investigator
Keith Louden, PhD (Project Manager). Confirmed
TBA (Administrative Assistant). Shared position under discussion with Halifax
Marine Research Institute
Dave Heffler (Marine Instrumentation Engineer). Participation under
discussion.
Robert Iuliucci (Marine Instrumentation Technologist). Confirmed
Deping Chian, PhD (Computer Programming Developer). Confirmed
Helen Lau, PhD (Seismic Refraction Modelling Specialist). Confirmed
b. Key Collaborators - identify key project collaborators and demonstrate progress
towards having partnership details sufficiently discussed to reasonably expect that
partnership agreements could be executed within six months of project approval.
Les MacIntyre (owner of Superport Marine Services Ltd. and MacGregor
Geoscience Ltd.). Principal commercial partner confirmed.
2,233,000
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Halifax Marine Research Institute. Provision of office, lab and instrument
storage space and support from administrative assistant. Discussion underway
with Mr. Jim Hanlon (CEO).
Offshore Energy Research Association. Funding for data acquisition offshore
Nova Scotia related to exploration of oil & gas resources. Discussion underway
with Mr. Steven Dempsey (CEO).
5. Commercialization Potential of the Research - identify the proposed resulting product,
process or service and associated market potential. ( ½ - 1 page)
There is a trend emerging in the past several years among the large petroleum companies to
collect and analyze wide-angle OBS data in support of their offshore exploration programs.
However, with only one commercial outlet worldwide (GeoPro GmbH, Germany) that has
conducted several commercial OBS surveys, companies such as Schlumberger, ExxonMobil,
Petrobras and Total have, in the past five years, funded academic researchers in North America
and Europe (e.g. Cambridge University, Dalhousie University, University of Texas at Austin,
Ifremer) to conduct OBS investigations. Petroleum companies are interested in additional
surveys and we are currently negotiating another project with Shell and Total. However, carrying
out such surveys in this manner is difficult because the primary mandate of universities is to
conduct research and make the results publically available, which often conflicts with the
commercial goals of industry. This means that only a fraction of the OBS work industry would
like to pursue can be carried out through contracts with universities. There is a great need, and
therefore a great opportunity, to now establish a commercial outlet in Nova Scotia, that can
independently carry out OBS surveys and analyze OBS data for commercial purposes. We
estimate that there is a window of opportunity for the next several years for Nova Scotia to take
the lead in OBS development and work worldwide.
There are two aspects to the proposed resulting product, the OBS instrument and the OBS
service. (1) The first proposed resulting product involves designing and constructing a new
generation OBS instrument. The design of the new instrument builds on a few decades of
experience in designing, building and using OBS instruments at Dalhousie University. (2) The
second proposed resulting product includes building and testing the new OBS instruments, and
commercial packaging of the software needed for the data analysis. Both resulting products, the
instrument and the capacity to use them and analyze the collected data will be transferred to
Superport Marine (Port Hawkesbury, NS) and McGregor Geosciences (Halifax, NS). We
estimate that that the minimum associated market potential for both products is on the order of 3-
4 million dollars annually. This is based on one OBS survey conducted per year and the sale of
ten instruments annually. The two OBS surveys Dalhousie and Superport Marine have conducted
for industry since 2010 already contributed several million dollars to the Nova Scotia economy,
about twice as much as the funding requested here from AIF. Future surveys for industry cannot
be undertaken past 2014 because of the small number of OBS instruments remaining and their
advanced age.
5

6. Project Governance - demonstrate progress toward the development of a governance model
for the project, which outlines team members’ roles and responsibilities, including the
project management function. (ACOA strongly recommends that project management be
held by someone other than the lead researcher.) ( ½ - 1 page)
We plan to develop project governance within the Halifax Research Marine Institute. Dr. Keith
Louden as the Project Manager will oversee all aspects of the project. An administrative assistant
(TBA) will look after all the administrative aspects of the project in consultation with Dr.
Louden, the ACOA representative, Jim Hanlon from HRMI, Les McIntyre from Superport
Marine, and Steven Dempsey from OERA. Dave Heffler (Marine Instrumentation Engineer) will
assist with OBS design and construction. Robert Iuliucci (Marine Instrument Technologist) will
work with the contractors on building the various OBS components and will help construct and
assemble them. He will also supervise operation of the old and new OBS during the planned
field surveys. Dr. Deping Chian (Computer Programming Developer) will produce an industrial
grade software package for OBS data analysis. Dr. Helen Lau (Seismic Refraction Modelling
Specialist) will participate in OBS field surveys, provide practical advice on software design for
OBS data analysis, and will analyze the collected OBS data.
7. Regulatory Approval – if applicable, proponents must demonstrate progress toward
receiving regulatory approval, or that a strategy has been developed to obtain this, for any
phase (e.g., R&D, production, commercialization) of the proposed project.
8. Qualified Independent Scientific/Technical Reviewers:
In order to help facilitate the project evaluation process, could you suggest the preferred
academic/professional background of independent scientific/technical reviewers to assess
your project proposal:
Expertise in controlled-source seismology with application to offshore oil and gas
exploration
For our consideration, provide the names below of at least two (2) individuals or
organizations that you consider leaders in your area of endeavour that would be competent
to review the scientific/technical aspects of your project proposal and not be in a conflict of
interest.
Scientific/technical reviewers must not be current or recent (within the last twelve
(12) months) partners/collaborators, colleagues, students, employees or supervisors.
Suggested reviewers may be from Canada (preferably from outside Atlantic Canada) or
another country, and should be able to evaluate the proposal in the language in which it is
written.
ACOA reserves the right to select from this or its own list of reviewers.
a) Name and/or organization, telephone and email address:
Dr. Michael Enachescu, Chief Geophysicist, MGM Energy Corp.,
Calgary AB, email: michaele@mun.ca; tel: (403) 781-7800
6

) Name and/or organization, telephone and email address:
Dr. Robert Stewart, Director Applied Geophysics Lab, Univ. of Houston
TX; email: rrstewart@uh.edu; tel: (713) 893-1715
c) Name and/or organization, telephone and email address:
Dr. Phil Christie, Scientific Advisor, Schlumberger Cambridge Research,
Cambridge UK; email: pafc1@slb.com; tel: +44 1223 315576
d) Name and/or organization, telephone and email address:
Provide the names of specific scientific/technical reviewers or organizations, if any, who
should not be engaged to undertake a review of your proposal due to potential conflict of
interest:
a) Name and/or organization:
Dr. Jannis Makris, GeoPro GmbH, Hamburg, Germany
b) Name and/or organization:
c) Name and/or organization
I hereby consent to ACOA sharing the information contained in this letter with other federal
departments or agencies that may be called upon to help in the assessment of AIF project
proposals. This information will be treated in accordance with the Access to Information Act and
the Privacy Act.
Name of Signing Authority for Proponent:
Signature of Signing Authority for Proponent:
(Please Print)
7