Chad
Chad has granted 100% interests in three production-sharing contracts (PSC) 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 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.
Ethiopia
A Marathon Oil Corp. unit will acquire Agriterra Ltd.'s 20% working interest in the South Omo concession in Ethiopia by the end of 2012, retroactive to Aug. 17.
An exploratory well is expected to spud on the block in this year's fourth quarter. Tullow Oil PLC operates the 7.2 million acre concession with a 50% working interest, and Africa Oil Corp. has 30%.
Marathon Ethiopia Ltd. BV will pay Agriterra $40 million, before closing adjustments, and a further $10 million on Marathon's participation in a declaration of a commercial discovery.
Ivory Coast
Lukoil Overseas has signed a production sharing agreement with the Ivory Coast government that covers Block CI-524 in the Gulf of Guinea.
Block CI-524 covers 450 sq km in 800-1,500 m of water. The block represents an eastern part of block CI-401 that Lukoil Overseas has been exploring since 2006. Lukoil Overseas is operator of CI-524 with a 60% interest, PanAtlantic Energy Group, formerly Vanco Overseas Energy Group has 30%, and Ivory Coast's state Petroci Holding has 10%.
The large Barracuda prospect has been identified on the block. The minimum exploration program consists of three periods. The first period covers 18 months and includes reprocessing existing 3D seismic data and shooting more seismic if required. Two other periods of a combined 6 years require drilling two exploratory wells.
Kenya
Bowleven PLC, Edinburgh, will take a farmout from Admantine Energy Ltd. to earn a 50% equity interest in Block 11B in northwestern Kenya.
The block covers 14,000 sq km in the Loeli, Lotikipi, Gatome, and South Gatome basins. The basins are northwest of the Lokichar basin in which Tullow Oil PLC has made the Ngamia-1 oil discovery (OGJ Online, July 16, 2012). The northern part of Block 11B borders South Sudan and Ethiopia.
Analysis of the existing gravity and magnetics and seismic data sets suggest that the basins on Block 11B are of similar form to Lokichar and analogous geological plays and petroleum system elements are expected, Bowleven said.
In return for acquiring the interest Bowleven will fund the work program for the initial 2-year exploratory period at an estimated cost of $10 million. The program is to include an airborne geophysical survey and 2D seismic. Bowleven will also provide technical support to Adamantine, as operator. Completion of the farmout is subject to normal approval from the Kenyan authorities.
Mozambique
Total SA will take a farmout to acquire a 40% interest from Malaysia's Petronas in Blocks 3 and 6 offshore northern Mozambique.
Petronas will remain operator of the blocks, which total 15,250 sq km in as much as 2,500 m of water east and south of Pemba. An exploratory well is expected to spud by yearend.
The oil potential of the southern part of the Rovuma basin might equal the gas potential of the northern part, Total said.
Sierra Leone
Sierra Leone has awarded two deepwater blocks offshore Freetown to a group led by a Chevron Corp. subsidiary.
Blocks SL-08A and SL-08B have been combined. The new concession covers 2,100 sq miles 75-110 miles southwest of Freetown in 4,900-9,800 ft of water.
Chevron (SL) Ltd. will be operator with a 55%. Noble Energy Inc. has 30%, and Odye (SL) Ltd. has 15%. The interests are before a Sierra Leone National Oil Co. optional backin of 15% at final investment decision.
Somalia
Horn Petroleum Corp. will plug and abandon the Shabeel North-1 exploratory well in Somalia but will enter the next exploration period on the Nugaal and Dharoor Valley production sharing contracts.
Shabeel North-1 went to a TD of 3,945 m and encountered metamorphic basement at 3,919 m. The well penetrated 149 m of interbedded sands and shales in the Triassic Adigrat formation with no oil or gas shows and only minor porosity on logs.
The Upper Cretaceous Jesomma sands had porosity and hydrocarbon shows but produced only fresh water on a drillstem test. These sands are similar to the Jesomma sands encountered in the previously drilled Shabeel well in terms of log response and oil and gas shows, and it was determined that further tests of these zones in the previously drilled Shabeel well are not warranted.
The next exploratory phase carries a commitment to drill one well on each block in 3 years. Horn Petroleum would shoot seismic to delineate new structural prospects on the Dharoor Valley block and hold discussions with the Puntland government to gain access regarding drill ready prospects on the Nugaal Valley block.
Horn Petroleum, 45% owned by Africa Oil Corp., Vancouver, BC, operates the Puntland exploration program with 60% working interest in the blocks. Range Resources Ltd. and Red Emperor Resources Ltd. have 20% each.
