Mitsui farms into Ghana's Keta Block

Uchenna Izundu
International Editor

LONDON, Nov.20 -- Afren Energy (Ghana) Ltd. has farmed out a 20% stake in the Keta Block in the Eastern basin off Ghana to Mitsui E&P Ghana Keta Ltd.

Mitsui will share the cost of the Cuda-1X exploration well spudded on Nov. 16. It is targeting a prospect estimated to hold 325-642 million bbl of oil. The play type is similar to the Jubilee and Odum discoveries that Tullow Oil PLC and Kosmos Energy are developing west of Ghana.

"There are also a number of additional identified prospects, which are currently in the process of being assessed by the partners on the Keta Block," Afren said.

The consortium is using the Transocean Deepwater Discovery drillship to target the Upper Cretaceous deepwater sandstones in a combined structural and stratigraphic trap. The vertical Cuda-1X well will reach a TVD of 15,750 ft within 50 days, Afren said. Cuda-1X will be drilled in water 5,577 ft deep. "There are no plans to perform drill stem testing on the well," Afren said.

Osman Shahenshah, chief executive of Afren, said: "Following the Jubilee discoveries, Ghana is an emerging and significant West African hydrocarbon province. We…believe the block contains a number of exciting prospects."

Once the deal is completed, Afren will hold 68% interest, and other partners' shareholdings will be Mitsui 20%, GNPC 10%, and Gulf Atlantic Energy 2%

The transaction is subject to government approvals.

Contact Uchenna Izundu at uchennai@pennwell.com.