Reconnaissance Energy Africa Ltd. (ReconAfrica) signed a production sharing contract (PSC) and joint venture agreement with the Republic of Gabon for exploration, appraisal, development, and production of oil and gas on Ngulu Block C-7 in shallow water offshore central Gabon.
The PSC covers 1,214 sq km. The Ngulu block is on trend and offset to producing fields which range in size from 38 million bbl up to 250 million ggl.
Loba field, an existing oil discovery in the block, was drilled in 1976 with 140 m gross pay (70 m net pay) and more than 28 seismically identified prospects in the Gamba-Dentale presalt and postsalt plays which are analogous to Gulf of Mexico deep water plays. Loba field’s potential production is about 20,000 b/d, which is in line with offset fields.
Under the initial 4-year term, ReconAfrica will perform detailed geological and geophysical studies, advance 3D seismic reprocessing on an existing database, and drill one well on the block. The contract contains an option to renew for an additional 4 years.
Recon will be operator of Ngulu (55%) with joint venture partners Record Resources Inc. (20%), Gabon Oil Comp. (15%), and the Republic of Gabon (10%).
