Work Programme

The original Work Programme commitments were as follows:

1. Remote Sensing Study and Geological field work;
2. Detailed Gravity Project;
3. Data gathering, office studies, general administration;
4. Geochemical studies, surface geochemical surveying;
5. Seismic reflection surveying - minimum program commitment of 120 kms in block 4, 50 kms experimental program in Block 5, and
6. Undefined studies in Block 6.

The actual work programme is described below in more detail:

1. Remote Sensing Study. Bids were sought from different contractors in UK and Armenia; Infoterra, Leicester, UK, was selected. As part of the contract, training was provided in Yerevan. Initially mapping was performed at 1:250,000 scale, to be later followed by more detailed work at 1:100,000 scale, largely in blocks 5 and 6. The thick volcanic cover precluded further work in Block 4. The work was later extended southwards across the border into Nakhichevan. All work was completed by the summer of 2008. Geological field work was carried out by experts from the Institute of Geology, Yerevan, to follow up the mapping work. This consisted of sample collection (and thin section work), data recording and analysis, along specific profiles in Block 5.
2. Detailed Gravity Project. The Institute of Geophysics and Engineering Seismology, Gyumri, were contracted to carry out a detailed gravity survey, starting in the summer of 2007, and eventually finishing late October 2008. Approximately 5,000 points were acquired in Block 5 and north towards Lake Sevan, with an additional 1,000 points being acquired in the Norashen (NW Lake Sevan) and Masrik Basin (SE Lake Sevan) areas. Final maps and report were received in February 2009. Old pre-2007 gravity data, at various map scales, going back to the 1960s, has been digitised for all Armenia and incorporated into a new data set for the whole country.
3. Detailed gathering of reports, maps etc. from the Geological Archives, Yerevan, is now complete. Copies of relevant technical articles from the Institute of Geology library in Yerevan have also been obtained. A comprehensive 'Geodatabase' of reports, scanned maps, cross sections, topographic maps etc. has been created, with over 26 Gigabytes of files. The data is mostly in Russian, so high quality technical translation into English is very important. Also much material was found at the Geological Society Library and British Library in London.
4. Geochemical studies. In August 2009, Blackstairs and the Armenian Institute of Geology signed a contract for the analysis of gas from two active boreholes near Norashen village, close to Lake Sevan, and geochemical analysis of an oil sample from the old buried Yeranos borehole. Gas and water samples were collected from the Norashen boreholes during September 2008. The Yeranos sample is a heavy oil, while methane is still being emitted by the two Norashen boreholes (now under water). It is of 'mineral', not biogenic, origin, and not from great depths (i.e. the mantle). Work was also carried out by Fugro Robertson UK. One oil sample from Yeranos borehole, plus five rock samples from Khachik, Vedi and Ogbin areas were analysed. Chemical properties of the small Yeranos oil sample shows a relatively high heavy oil fraction. Further work was carried out to confirm its chemical characteristics, and also to compare with other oils. Three rock samples, from the Permian in the Khachik and Vedi valley areas were analysed and found to possess fair to good TOC (total organic content) values.
5. Some newly acquired rock samples (July - August 2011) from the south Vayots Dzor area of Block 5 have been sent to Fugro Robertson UK for geochemical analysis, and more will follow. Potential source rocks in the Middle Eocene (may source traps in Block 4), Permian and Devonian are being studied.
6. Fugro Robertson compared the Yeranos oil with oils from the Shorakhpur and Azat wells, which lie due west inside Block 2, on the other side of a deep gravity low, which may represent a potential source kitchen area. The source for the Yeranos, Azat-1/1A and Shorakhpur-1 oils was probably deposited during the Late Cretaceous and/or Tertiary. In the Azat-1/1A well, two oil charges are observed. The first oil charge is a biodegraded oil that shows similar geochemical properties to the Yeranos oil. The second oil charge is a light oil or condensate generated at late oil maturity.  The source rocks responsible for the generation of the Azat-1/1A first oil charge and Yeranos oil were deposited in a distal, restricted, anoxic, marine environment. However, the source depositional environment for the Shorakhpur-1 oil is more proximal, possibly a nearshore or onshore setting.
7. It is therefore likely that both the Yeranos oil and Azat-1/1A first oil charge are derived from the same source rock, but that the former was deposited in a highly reducing and restricted environment and latter less so. The Shorakhpur-1 oil was generated from a different source rock which was deposited in a more oxic environment. Maturation profiles drawn using thermal gradient and maturity data for these central Armenian oils suggest, speculatively, that hydrocarbons may have been generated below depths of 3,280m for the Shorakhpur-1 oil, 3,000m for the Azat-1/1A first oil charge, 4,000m for the Azat-1/1A second oil charge, and 2,500m for the Yeranos oil.
8. Potential field data (predominantly gravity, magnetic in some areas) was processed and interpreted by ArkEx Ltd., UK, in order to derive an independent structural and geological model. Work was completed in July 2010. New structural models have now been completed for the area, which incorporates the results of previous earthquake studies in order to compute basement depths.
9. Seventeen leads have been identified in blocks 4 and 5, and individual detailed assessments continue. A conservative estimate of potential reserves is about 220 million barrels oil equivalent.
10. Plans are well advanced for an extensive 2D seismic program in both blocks 4 and 5. A tender document was distributed to a number of contractors in April 2011, and subsequently several contractors visited our licence areas for discussions.  In due course bids were received from four contractors; one contractor was selected in July.  An October 2011 start is planned and the program may possibly be expanded from a work program commmitment of 170 kms to over 340 kms; a final decision will be made late September.
11. Extensive geological field work started in the south Vayots Dzor area of Block 5 mid July 2011. Three small geological teams (including some students) are working until mid September, carrying out detailed mapping, collecting samples for geochemical analysis (now in progress in UK), and for accurate dating work using conodonts (for the Paleozoic section). The Devonian and Permian sections in particular are being studied in detail, but also Cretaceous and Triassic. Oil/water samples been recovered from several locations (Devonian and Permian) and will be analysed. The intention is to have most of the geological work completed before starting seismic acquisition in the Autumn, but work by a small dedicated team will continue thereafter.