Page 15 - AfrOil Week 10 2020

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NEWS IN BRIEF
AfrOil
Under the terms of the award, Technip would work alongside and report to the integrated JV partner Operations team to lead the onshore and offshore elements of the FEED programme in respect of the proposed development.
The reservoir engineering and sub-surface development aspects of the wider FEED process will be undertaken by the Operator. The initial phase of the development concept proposed by the JV partners comprises an onshore gas pro- cessing, storage and export facility linked to an unmanned well head platform with associated pipeline infrastructure.
Eli Chahin, Chief Executive Officer of Bowleven, said: “The award of a lead FEED contractor is a significant milestone for the JV partners, as we look to make a final investment decision on Etinde in 2020. We are excited about our plans for the initial phase of the proposed development and look forward to working with Technip to finalise our development concept for the field over the coming months.”
Bowleven, March 04 2020
FINANCE
Tower Resources makes small placing to raise funds for Thali PSC offshore Cameroon
Tower Resources has announced a Placing to raise gross proceeds of GBP500,000.
Jeremy Asher, Tower’s Chairman and CEO, said: “We have carried out this small placing to mitigate the risk of running low on cash as we seek to complete our well financing. We have kept the placing small because we do not like issuing shares at our current share price, given the superior economics for our shareholders of farming out on our agreed terms. Nevertheless, we felt that it was prudent to have some cash cushion at this time.’
Tower Resources announced March 2 that it has executed binding heads of terms (HoT) in respect of a farm-out to OilLR, a private com- pany incorporated in Brisbane, Queensland, of a 24.5% working interest in its Thali Produc- tion-Sharing Contract (PSC) offshore Came- roon. The farm-out covers US$7.5mn towards the cost of the NJOM-3 well that Tower is plan- ning to drill on the Thali block.
The Company said that it is still in discussion with several other parties regarding the farm-out of up to a further 24.5% interest in the Thali PSC on similar terms.
Tower Resources, March 09 2020
INVESTMENT
Botswana: Strata-X farms out Serowe CSG project
Strata-X Energy has executed a Heads of Agree- ment with Botsgas, a private Australia based company with strong ties to the Republic of Botswana, to accelerate the appraisal and devel- opment of the Company’s Serowe CSG Project.
The executed Heads of Agreement allows for the drilling of one firm vertical well with staged options for an additional 18 vertical wells, which includes six additional appraisal wells and up to three production pilots designed to prove com- mercial gas flows and add material reserves.
The Company will retain operational con- trol of the project for the foreseeable future and expects to commence field operations early in the second quarter of 2020.
The main focus of the farm-out will be Stra- ta-X’s high-grade area of the Botswana CBM Fairway. This area is interpreted to contain, on average, 10 metres net Serowe bright-coal seams over a 50-metre interval with high gas saturations up to 100%. A third party has cer- tified 2.38tn cubic feet (67.4bn cubic metres) in prospective gas resource within Strata-X’s tene- ments in the high-grade area. This interpretation is re-enforced with the results of the Company’s 19B-1 well drilled in 2019 by Strata-X and a nearby historic core hole data, which bubbled free gas from the target bright-coals.
The 19B-1 well intersected 18 metres of net coal with 12 metres of multi seam bright coals having up to 100% gas saturations. After the drilling of 19B-1, an area immediately surround- ing the well was certified to contain 2C Contin- gent Resources of 23bn cubic feet (651.3mn cubic metres) of natural gas.
The first farm-out well under the Heads of Agreement is located about 4 km from 19-B-1. The well, called Botgas-19-B-2, will be drilled and cased to the top Serowe bright coals, then drilled 60 metres through the Serowe coals and under reamed over the Serowe coals open interval. Temporary flow test equipment will be used to carry out a short term continuous and controlled draw down test designed to deter- mine water flows from the coals and induce gas breakout. Botsgas is required to fund the first well as a minimum program to an approved budget of up to US$300,000. If the cost of the initial well exceeds US$300,000, then Strata-X will be required to fund the costs in excess of that amount.
Stage 1B is to drill and flow test an additional six appraisal wells (about 4-30 km from other wells) within Strata-X’s high-grade area with the target to prove material 2C/3C resources to jus- tify the first Stage 2 production pilot. Stage 2 is the first production pilot designed to prove gas flow rates. The pilot will include an additional four wells located around one of the 7 appraisal wells drilled in Stage 1 with about 400 metres of spacing between each well. All five wells in the pilot will be equipped with downhole and sur- face equipment plus water handling facilities to allow for a long term (three to six months) controlled continuous drawdown flow test to be carried out to determine gas flow rates.
Stages 3 and 4 are two addition production pilots, each comprising five wells. Botsgas has the option to use one or more of the production pilot wells as appraisal wells if required to add reserves.
The company holds 4,784 square km (1.129mn acres) over the Serowe CBM Project with a certified Prospective Resource of 6.05 tcf (171.3 bcm).
Strata-X Energy, March 04 2020
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