A group of U.S. independents signed a production sharing contract in Equatorial Guinea covering potential development of offshore Alba gas/condensate field and exploration of adjoining areas.
Operator Walter International Inc., Houston, 25%, McMoRan International Inc., New Orleans, 50%, and Samedan Oil Corp., Ardmore, Okla., 25%, signed the contract effective Apr. 10 covering Blocks A-12, A-13, B-12, and B-13 northwest of Bioco Island.
Equatorial Guinea, which has no history of oil production, recently offered the tract holding Alba field, along with other open acreage, for license (OGJ, Apr. 16, p. 29).
GROUP'S PLANS
The Walter group is committed to drill two wells on the Alba structure to assess the extent of reserves, earlier estimated at 1.3 tcf of gas and 68 million bbl of condensate.
The first delineation well will be spudded in August with a jack up in about 250 ft of water near 1 Alba about 22 miles off Bioco Island. It will be targeted to 10,170 ft, with the top of the pay expected at 8,858 ft. The second delineation will follow immediately.
Alba's pay is Miocene Isongo sandstone at 8,528-9,840 ft.
The group also has the option to commit to an exploratory well on Block B-13 by the end of the contract's second year. If it makes that commitment, the wildcat must be drilled within 18 months of commitment.
It is likely the well will be drilled in the first 2 years of the contract, said Will Frank, Walter managing director.
The group could commit to more exploratory wells, with provision for 25% acreage relinquishments per period, at 24 month intervals for 7 years.
If enough reserves can be established and a commercial development plan approved for Alba, the Walter group would then build a pipeline to shore, Frank said.
The production sharing contract carries a 30 year term in the event of an oil development, 50 years for gas development.
MARKET FOR GAS?
It isn't clear what market could be established for Alba gas or how the field would be developed.
Petroconsultants SA, Geneva, adviser to Equatorial Guinea, has recommended that Alba gas be exported to nearby fields off Cameroon for gas lift operations.
Guineo-Espanola de Petroleos SA (Gepsa), a 50-50 venture of Spain's Hispanica de Petroleos SA (now Repsol SA) and the government of Equatorial Guinea, drilled Alba discovery and confirmation wells in 1984-85 (OGJ, May 14, 1984, p. 84; Sept. 30, 1985, p. 36).
Gepsa 13-B1-1X found pay at 12,635 ft, and 13-B1-2X step-out found pay at 13,851 ft. Repsol recently relinquished the acreage after failing to find a gas market.
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