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Cross-Block Oil Migration Litigation Support

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Kazakhstan / 2004 — 2008 / Strategic Advisory

539 wells reviewed

Acted as an advisor and expert witness on behalf of the defendant

No damages awarded

Provided geotechnical and production operations expertise

Challenge

  • An oil pool had been divided into two licensed production areas; the claimant operated the north area and the client operated the south
  • The south area had been more aggressively developed, and the claimant alleged that the client’s operations had resulted in oil migration from the north to the south
  • The claimant was seeking compensation for this loss

Solution

  • Sproule developed a comprehensive understanding of the production history and oil flow in the pool by conducting an independent geological reservoir study, by reviewing drilling and production history, and by creating a 3D dynamic reservoir simulation model
  • Sproule offered an opinion on the production practices of the client and provided expert witness testimony
  • Sproule also reviewed and provided a counter opinion to the claimant’s expert witnesses

Value

  • In Sproule’s opinion, the defendant had used good production practices in their development of the pool
  • Sproule defended this opinion on behalf of the client in numerous legal proceedings, with the result that the client was not found liable for any damages