Beach Energy signs PSA for Tanzanian block

July 5, 2010
Beach Energy Ltd., Adelaide, has signed a production-sharing agreement with the Tanzanian government for a 100% interest in the Lake Tanganyika South concession in the western part of the country.

Beach Energy Ltd., Adelaide, has signed a production-sharing agreement with the Tanzanian government for a 100% interest in the Lake Tanganyika South concession in the western part of the country.

The block, which includes a small onshore component, is mostly in lake waters. The block has a lake boundary with Congo (former Zaire), and its southern part borders Zambia.

It is the only exploration lease currently active in the African Great Rift region in Tanzania and is considered prospective for oil given the recent discoveries made on trend farther north in Uganda by Tullow Oil PLC and Heritage Oil PLC.

The specific terms of the PSA are being kept confidential, but because of the remote area of operation, they are considered more favorable than standard Tanzanian terms.

The PSA comprises three phases: two 4-year terms and one 3-year term. Beach will conduct geophysical and geological studies during the first phase to determine the range of drilling opportunities that might be available. These data will be used to design seismic surveys leading to the drilling phase.

Beach has a well commitment in each of Phases 2 and 3, with an option at the end of each phase to relinquish all of the remaining acreage without further obligation.

The company plans to fly aerial gradiometric gravity and magnetic surveys before yearend.


A group led by Repsol Exploracion SA let a contract to Atwood Oceanics Pacific Ltd. to provide the Atwood Beacon jack-up to drill a well on the Georgetown license off Guyana.

The contract is one of three under which the unit will drill four wells off Suriname and Guyana at a $115,000/day rate. Minimum duration is 210 days. The rig will arrive from Ivory Coast later this year.

Repsol is group operator and operates the Georgetown license. CGX Energy Inc., Toronto, holds 25% participating interest.

CGX is holding discussions with Atwood Oceanics and the operator group to add a fifth well to the program for CGX's 100% owned and operated Corentyne license.


Newton Energy CBM Ltd., Ephindo IIthabi CBM Holding Inc., and CBM Asia Development Corp. will jointly evaluate the coalbed methane resource on the 56,300-ha Kutai II block in the Kutai basin on East Kalimantan, Indonesia.

The group will evaluate the block and apply for a production sharing contract. Kutai II is adjacent to the existing Kutai West PSC in which the three companies share interests.

New Brunswick

Apache Canada Ltd. was starting operations in late June at the Green Road B-41 well to test for gas in the Frederick Brook shale formation 4 km north of Elgin, NB.

The well is the first of two planned to horizontally drill, frac, and test a silty section of the formation on a farmout from Corridor Resources Inc., Halifax, NS. It offsets Corridor's vertical B-41 well, which flowed gas after fracs in two Frederick Brook intervals in late 2009.

Completion and testing operations at B-41 are not expected to begin until later in 2010.


An undisclosed large US independent producer has agreed to buy 24,166 acres of the 40,240 acres held by Samson Oil & Gas Ltd., Perth, in Goshen County, Wyo., in the Niobrara unconventional oil play.

Consideration is $61-79 million pretax. Closing is set for July 26.

Samson is selling its entire working interest in the southern part of its holdings and will retain an average 4.8% royalty interest. The company plans to develop the retained northern acreage without further material dilution of its interest but said future development could alter those plans.

Samson is forming an exploratory unit to protect some leases that might otherwise expire later in 2010. The process is largely complete, but if the unit is not in place by the closing date of the sale, then the purchase price may be reduced.

Also, 2,670 acres to be sold are outside the unit area and will expire this year unless drilling commences. Samson is pursuing drilling permits that would allow 1,920 of those acres to be protected.

More Oil & Gas Journal Current Issue Articles
More Oil & Gas Journal Archives Issue Articles
View Oil and Gas Articles on