Page 16 - AfrOil Week 32 2021

AfrOil
NEWS IN BRIEF
AfrOil
The Project Manager of Ikike Project, TotalEn- ergies, Modestus Nwosu confirmed that over 44 Nigerian vendors were engaged on various scopes of the Ikike project. He added that the project had also followed the instruction of the Board to undertake the renovation of a hostel and workshops in Government Technical Col- lege in Port Harcourt, River State.
NCDMB, August 7 2021
ReconAfrica, NAMCOR
discuss plans for next
phase in Kavango basin
Reconnaissance Energy Africa (ReconAfrica) and its joint venture partner NAMCOR (the state oil company of Namibia) have provided, based on the mud logging report and geochemi- cal analysis, more comprehensive data confirm- ing a working conventional petroleum system. The Company also reports on additional drilling results and plans for the next phase of explora- tion in the Kavango Basin, north-east Namibia and north-west Botswana.
Highlights: The 6-2 well and 6-1 well reached total depths of 2,294 metres (7,526 feet) and 2,780 metres (9,121 feet) respectively. The 6-2 well had over 250 metres (820 feet) of hydro- carbon shows while the 6-1 had over 350 metres (1,148 feet) of hydrocarbon shows.
Both wells had full logging suites, extensive sidewall cores in addition to the full sample analysis of cuttings, and hydrocarbon shows, and were completed to enable the running of vertical seismic profiles in the next month, and potential for re-entry production testing at a later date. The Company has now completed all drilling components required to satisfy the work programme requirements for an extension of the exploration period on PEL 73.
The Company will transition to the explora- tion phase of drilling activity, targeting mapping of the entire leasehold and potential accumula- tions of recoverable commercial hydrocarbons.
Scot Evans, Chief Executive Officer of ReconAfrica, commented: “The goal of the stratigraphic test well programme, approved by the Namibian government, was to establish the presence of a working conventional hydro- carbon system in this new basin. The results we have achieved from these first two wells have
significantly exceeded our expectations. Not only have we encountered a significant num- ber of oil and gas shows over multiple poten- tial zones, they are associated with zones of fracture and matrix porosity. Consistent with a conventional oil and gas play, analysis of the geochemical data from these wells indicates the hydrocarbons are migrated from off struc- ture source(s). The findings of these two wells strongly supports acquiring, processing, and interpreting the first 2-D seismic programme in the Kavango sedimentary basin and its multiple sub-basins. This is just the beginning; the 6-2 and 6-1 wells provide a positive initial evaluation of a small component within our acreage position of 8,500,000 acres in Namibia and Botswana.”
Doug Milham, Chief Executive Officer of Horizon Well Logging Inc., commented: “Hori- zon is proud to be part of the team at ReconA- frica and the potential resource that has been discovered with their first two wells. The pres- ence and quality of oil and gas shows encoun- tered while drilling the 6-2 and 6-1 wells was remarkable, with many positive indicators of hydrocarbons encountered throughout both wells. Our sample logging data and analysis has identified significant intervals of oil and natural gas in each of the two wells drilled, with vary- ing characteristics from multiple zones. This is an exciting oil and gas exploration project with world-class potential.”
Next Phase of Exploration Programme: With the confirmation of a working conven- tional hydrocarbon system within the first of a potential five sub basins, the Company and its joint venture partner NAMCOR will be using drilling and 2-D seismic data to determine the planning and execution of future drilling loca- tions. In addition to potential production testing results from the 6-2 and 6-1 wells, future drilling locations will target potential hydrocarbon bear- ing structures from the seismic programme with the purpose of achieving commercial levels of oil and natural gas production.
It is expected that once the seismic data is acquired, an additional one or two wells will be drilled in 2021 and a further two to four wells drilled in the first half of 2022. Additionally, the acquisition and integrated interpretation of the 2-D seismic data will facilitate a farm out joint venture process for the Company, which will further accelerate the overall evaluation, explo- ration, and development of the 8,500,000 acres in
Namibia and Botswana.
ReconAfrica, August 5 2021
MIDSTREAM
San Leon Energy comments on ELI loan repayment
San Leon Energy, the independent oil and gas production, development and exploration company focused on Nigeria, has provided the following update in relation to its investment in Energy Link Infrastructure (Malta) Ltd (ELI), the company which owns the Alternative Crude Oil Evacuation System (ACOES) project. ACOES is being constructed to provide a dedi- cated oil export route from OML 18, comprising a new pipeline from OML 18 and a floating stor- age and offloading vessel.
As previously announced by San Leon on August 3, 2020, the Company originally invested $15mn in ELI. The investment comprised a 10% equity interest in ELI together with a $15mn shareholder loan with a coupon of 14% per annum over four years, repayable quarterly fol- lowing a one-year moratorium from the date of investment. The first repayment installment from ELI, which amounts to approximately $2.2mn, has recently become due
San Leon announced on June 24, 2021, that it i s considering making further debt and equity investments in ELI and reaffirmed that intention in subsequent announcements during July 2021. The Company has agreed with ELI that, should these further investments be made, then the First Installment will be offset from any investment monies payable to ELI by San Leon under certain of these new arrangements. Pending any further investment in ELI, the First Installment will con- tinue to accrue interest at 14% per annum.
San Leon Energy, August 9 2021
DOWNSTREAM
DPR deploys inventory tool
to check fuel diversions
among 33,000 stations
As subsidy costs weigh down government inter- ventions due to rising consumption of premium motor spirit (PMS) occasioned by smuggling and sharp practices in the downstream sector, the Department of Petroleum Resources (DPR) has set a December deadline for filling stations to register on its Downstream Remote Monitoring Systems (DRMS), as a requirement for licence renewal.
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Week 32 11•August•2021