Page 9 - AfrOil Week 40 2019

AfrOil
NEWS IN BRIEF
AfrOil
UPSTREAM
Update on Tanzania operational results
Swala Oil & Gas (Tanzania) notes the positive operational update announced by Orca Explora- tion Group Inc. on October 2, 2019, to the effect that on September 25, 2019, PanAfrican Energy Tanzania (PAET) approved an amendment to its gas sales agreement with Tanzania Petroleum Development Corp. (TPDC) that raises the min- imum daily quantity sold to TPDC from 20mn cubic feet (570,000 cubic metres) per day to 30mn cubic feet (850,000 cubic metres) per day.
Gas sold by PAET to the Power Sector was sold at an average of $3.68 per 1,000 cubic feet in 2018, gross of the tariff for processing and trans- portation costs, TPDC profit share, Additional Profits Tax and the IFC Participation Interest. TPDC sells this gas to power and higher-value industrial customers, primarily in the Dar es Salaam area.
The company also notes the description of initiatives that require clarity in respect of the PAET production-sharing agreement (PSA), the development of regional infrastructure and a licence extension that allows the investment of significant development capital expenditure. Whilst these initiatives are positive, the com- pany is not aware that any are certain or close to completion.
Swala is the first oil and gas company listed on an East African Stock Exchange with a signif- icant local ownership. Swala holds assets in the world-class East African Rift System with a total net land package in excess of 14,000 km2 as well as a 7.93% interest in PAE (PanAfrican Energy). New discoveries have been announced by indus- try participants in a number of licences along this trend that extend the multi-billion-barrel Albert Graben play so successfully developed by Tullow Oil into the eastern arm of the rift. Swala has an active operational and business develop- ment programme to continue to grow its pres- ence in the hydrocarbon provinces of East Africa and globally.
Swala Oil & Gas (Tanzania), October 07 2019
FAR obtains additional 10% interest in Gambian blocks
FAR Ltd has acquired an additional 10% interest in the highly prospective offshore Blocks A2 and A5 offshore the Republic of the Gambia, giving FAR a 50% working interest, and the company retains operatorship. The interest is held in the FAR subsidiary, FAR Gambia Ltd.
The government of the Gambia (“GOTG”) has issued new licences to the joint venture in
respect of the A2 and A5 Blocks, incorporating updates to the licence terms. Under the new licences, FAR Gambia and PC Gambia Ltd (a subsidiary of Malaysia’s Petronas) each has a 50% participating and paying interest. The key terms of the new licences are: three-year initial explora- tion period, commencing immediately, plus two optional extension periods of two years each; a commitment to drill one well in the first two years in either block and to acquire, process and interpret 450 square km of 3D seismic in the first three years; signature bonuses of US$4.5m for the two licences (US$2.25m net to FAR); effec- tive as of October 1, 2019, FAR has conducted extensive geotechnical studies on the SAMO-1 well data, which has led to the identification of additional target intervals to those mapped prior to drilling.
Work is ongoing to map and quantify the resulting prospects, and updates on the pros- pects and their resource potential will be made when this work has been completed. A 3D seis- mic survey is planned for late 2019 to further delineate some of the identified prospects. A well is planned to be drilled in 2020.The Blocks A2 and A5 licence areas, covering 2,682 square km, are adjacent to and on trend with FAR’s world class SNE oil field discovery which is moving toward development and first oil in 2022.
FAR Ltd, October 01 2019
BW Offshore: Hibiscus reserve estimates raised after successful completion of drilling operations
BW Offshore is pleased to announce the suc- cessful completion of drilling operations on the Hibiscus Updip prospect in the Dussafu license. Both the exploration well and appraisal side- track encountered oil on the Hibiscus structure.
The DHIBM-1 exploration well was drilled by the Borr Norve jack-up drilling rig to a total depth of 3,538 metres in water depths of 116 metres.
Evaluation of logging and sampling data has confirmed that the well has encountered approximately 21 metres of pay in an overall hydrocarbon column of 33 metres in the Gamba formation. The appraisal side-track (DHIBM-1 ST1), drilled 1,100 metres north-west of the original wellbore, encountered 26 metres of pay in the Gamba formation. The oil-water contact was at the same level in both wells, confirming continuity of the hydrocarbon deposit.
Preliminary evaluation indicates gross recov- erable reserves of 40-50mn bbls of oil, signifi- cantly greater than the pre-drill expectations.
“Hibiscus is the fourth consecutive oil
discovery made on the Dussafu license with drilling operations completed safely and within budget,” said Carl K. Arnet, the CEO of BW Energy. “It is in line with our phased develop- ment strategy for long-term value creation at Dussafu through increased production and identifying additional resources. The Hibiscus discovery and its surrounding prospects repre- sent another area of significant potential in the Dussafu block and we are looking forward to the next phase of the programme as we continue to unlock the potential of the Dussafu field.”
The DHIBM-1 well was designed to appraise one of several prospects that have been mapped in the greater Ruche area of the Dussafu license. The objective was to identify additional resources, which will be aggregated with the existing Ruche discovery and form the basis for future development. The company will complete the evaluation of the Hibiscus Updip discovery and evaluate the optimal commercial development.
The rig will now proceed to drill four sub- sea production wells on the Tortue field which will be tied back to BW Adolo, before drilling another exploration well.
BW Offshore, October 04 2019
Aje field partners plan
further development drilling
in 2020 – ADM Energy CEO
ADM Energy plc (AIM: ADME), an oil and gas investing company quoted on AIM, announces its investment results for the six months ended June 30, 2019.
At the Aje Field, part of OML 113, in which ADM Energy holds a 5% equity investment: Oil continues to be produced at a broadly stable rate from two wells (Aje-4 and Aje-5) at an average of 3,009 bpd. In June 2019, Aje completed its 11th lifting, equating to 297,581 barrels sold by the joint operators at $64.844 per barrel. Total pro- duced volumes came to approximately 662,448 barrels of oil from January to August 2019.There has been a significant increase in recoverable oil reserves outlined by the Competent Person’s Report (CPR) updated in April 2019 as a result of better than expected production levels. The Aje partnership has fully paid the $9.8m licence renewal fee, thereby securing a 20-year exten- sion of the OML 113 licence. Technical work has largely been concluded to support a decision on Aje Phase 2 development; targeting estimated gross production of 8,000-12,000 bpd.
Post-period highlights include the appoint- ment of Osamede Okhomina as Chief Executive Officer of ADM Energy in mid-July; the raising of additional equity of about GBP1.33mn gross in two fundraisings.
Week 40 09•October•2019
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