Blocks that range from shore into deep water in the Mozambique Channel off northern Madagascar are garnering more interest from exploration companies.
The blocks are in the lightly explored Ambilobe and Majunga basins.
Sterling Energy PLC, London, was awarded 100% interest in the Ambilobe and Ampasindava licenses in July. The Ambilobe licenses is in the Ambilobe basin, while the Ampasindava license is in the northern Majunga basin.
ExxonMobil Corp. recently took a farmout from Vanco Energy Co., Houston, of a 40% interest in the Majunga Offshore Profond block. Vanco was near farmout of a further 30% interest at this writing.
Oil and gas are not produced commercially in Madagascar, but interest has been high in prospects in several basins that surround the large island.
Sterling's blocks
Sterling's licenses total 34,000 sq km and are undrilled.
The company notes nearby promising hydrocarbon occurrences.
Detailed geological review work will now begin at the Ambilobe and Ampasindaya blocks followed by seismic acquisition towards the end of 2005.
After that, Sterling has the option to extend each license by drilling an exploration well. The total license term in each case is 8 years.
In the event of a commercial discovery, a 25-year production license will be granted, said Andy Grosse, Sterling Energy's exploration manager.
"We are delighted to have been awarded these two exploration licenses after many months' work. These are very large unexplored areas in which all the necessary components for petroleum reserves are already established.
"We believe that Madagascar has been neglected mainly due to past concerns about the economic climate rather than fundamental exploration potential. The recent farm-in of ExxonMobil to the Vanco block immediately next door to ours may signal a significant change in the industry view," Grosse said.
The Ambilobe Block covers 20,800 sq km and lies at Madagascar's northwest tip (see map, OGJ, Aug. 1, 1994, p. 54). Most of the area is in less than 1,000 m of water. This area has been licensed twice in the past 15 years, once by Maxus and more recently by Triton. Both companies withdrew following corporate restructuring.
Accordingly, a large 2D seismic database exists, and leads have already been identified, Sterling Energy said.
The Ampasindava Block covers 13,147 sq km in the northern Majunga basin. The southwest boundary is adjacent to the block held by Vanco, which is the only other offshore license in the region. Ampasindava extends from shore to about 3,000 m of water.
A small amount of 2D seismic has been acquired close to the coast, but most of the block is virgin territory.
Sterling said it will aim to demonstrate the potential for the extension of plays identified in both the Ambilobe and Majunga basins on either side.
Vanco acreage
Upon signing agreements for its acreage in 2001, Vanco said the 14,864 sq km block is in 1,000-3,000 m of water.
The area is a salt basin with numerous structures, probably Cretaceous in age, the company said (OGJ Online, Mar. 20, 2001).