Chad has granted 100% interests in three production sharing contracts in the Doba, Doseo, and Erdis basins to Simba Energy Inc., Vancouver, BC.
Signed protocols call for the parties to finalize the first-year work program and execute PSC documentation by Oct. 20.
Two of the concessions are the 6,400 sq km Chari Sud I block and the southern 50% of Chari Sud Block II on 3,711 sq km. The adjacent blocks lie south of Griffiths Energy and Glencore International’s DOB, DOI, and Borogop blocks where Mangara and Badila oil fields and other proved reserves are located (see map, OGJ, June 4, 2012, p. 44)
Gravity and magnetic surveys and 2D seismic across both Chari Sud blocks indicate the same basin morphology as in the producing fields, and a pipeline skirts the corner of Chari Sud Block I.
Glencore signed an agreement last week with Griffiths Energy to invest as much as $300 million over 3 years to earn a 25% working interest in the development of Mangara and Badila fields and future production.
The third concession, Erdis Block III, covers 15,700 sq km in the southern Erdis basin, known as the Kufra basin in Libya. The basin has sediments to 11,000 m. Gravity across the entire block also indicates the presence of a major deposition center, which enhances major reservoir development.