Page 14 - AfrOil Week 08 2023

AfrOil PROJECTS & COMPANIES AfrOil

Block EG-01 is adjacent to Block S offshore Equatorial Guinea (Image: Panoro)
Africa Oil Corp. noted in a press release dated evaluate the prospectivity of the block,” Panoro
February 20 that both blocks had already been said in a statement on February 20. They will
subjected to 3D seismic surveys. It also said it then have the option to enter into a second phase
had pledged to spend at least $7mn on the two of exploration lasting two years, during which
fields during the initial exploration period of they must drill at least one exploration well, the
the PSCs, which did not include any drilling statement said.
commitments. Panoro expressed optimism about the pro-
The Canadian company reported that it was spectivity of Block EG-01, noting that the three
already eyeing a number of prospects at its new exploration wells drilled at the licence area since
assets. With respect to Block EG-18, it said it had 2003 had all encountered some hydrocarbons,
“identified a potentially large and highly pro- though not in commercial quantities.
spective basin floor fan prospect of Cretaceous “Past exploration activities on Block EG-01
age that is similar to those within the company’s have tested and proven the key geological ele-
exploration portfolio in Namibia and South ments for successful exploration. These findings
Africa.” And as for Block EG-31, it stated that have led to the identification of an extensive
it had “identified several [natural] gas-prone prospect inventory within tie-back distance to
prospects in shallow water depths of less than the Ceiba field and Okume complex facilities,”
80 metres and close to existing infrastructure,” it said.
including the Punta Europa LNG plant and the Equatorial Guinea’s signing of three new
offshore Alba gas field. deals drew praise from the African Energy
Chamber (AEC). NJ Ayuk, the executive
Panoro Energy chairman of the AEC, declared that the PSCs
The third agreement is a PSC for Block EG-01. would help the country develop its oil and gas
Panoro Energy, an independent Norwegian resources and compensate for falling output
firm, will be the majority shareholder in and rates at mature fields.
operator of the project, with a stake of 56%, and “We need to drill more wells in Equatorial
the remaining equity will be split between Kos- Guinea and the Gulf of Guinea. Panoro and
mos Energy (US), with 24%, and GEPetrol, with Africa Oil Corp will work in a proven but under-
20%. explored oil basin in the Gulf of Guinea, and it
Block EG-01 is adjacent to Block G, an off- makes it exciting to see the results of their work
shore site that includes the producing Ceiba in the near future,” Ayuk said. “We have always
oilfield and the Okume complex in which Pan- believed that you need to invest in exploration
oro has a non-operating stake of 14.25%. It also if you want to see production of oil and gas ...
lies directly to the east of Block S, a site where We strongly support [this] strategic response in
Panoro is negotiating a farm-in deal for a 12% addressing Equatorial Guinea’s natural decline
non-operating stake. The block lies in waters in oil and gas production. We believe that the
ranging from 30 to 500 metres in depth and has awarding of the three PSCs will bring in the
already been subjected to a 3D seismic survey. much-needed investments to accelerate explo-
The partners will spend the initial three- ration and production in West Africa. We look
year exploration period of the project conduct- forward to witnessing some new discoveries on
ing subsurface studies to “further define and these exciting blocks in the future.” ™

P14 www. NEWSBASE .com Week 08 23•February•2023