Panoro Energy ASA signed a production sharing contract (PSC) for Block EG-01, offshore Equatorial Guinea.
Block EG-01 is in water depths of 30-500 m, mainly shallow, and is covered by high-quality 3D seismic. The block borders both Block G where Panoro has a 14.25% non-operated interest (OGJ Online Feb. 22, 2021) and Block S where Panoro has agreed to farm-in to a 12% non-operated interest.
Block EG-01 partners will have an initial period of 3 years to conduct subsurface studies based on existing seismic data to further define and evaluate prospectivity of the block. Following this, the partners will have the option to enter a further 2-year period to drill one exploration well.
Past exploration activities on Block EG-01 have tested and proven the key geological elements for successful exploration. These findings have led to the identification of an extensive prospect inventory within tie-back distance to Ceiba field and the Okume complex. Since 2003, three exploration wells have been drilled on the block, with two encountering thin oil and gas pay and one encountering oil shows.
The main hydrocarbon plays are Eocene sands and Upper Cretaceous turbidites analogous to the Block G plays where more than 1-billion bbl stock tank oil initially in place (STOIIP) has been discovered. Moreover, there is potential for deeper Albian targets, like the Block S prospect, which is scheduled for drilling in 2024.
Panoro Energy will be operator of Block EG-01 (56%) with partners Kosmos Energy Ltd. (24%, pending signature) and GEPetrol Co. (20%).