IPL SIGNS E&P ACCORD FOR BLOCK IN ETHIOPIA

Nov. 25, 1991

International Petroleum Ltd. (IPL), Vancouver, B.C., has signed an exploration and production sharing agreement covering a block in eastern Ethiopia. The Gambela block, which covers about 15,356 sq km about 400 km west of Addis Ababa, is at the intersection of two Mesozoic/Tertiary rift basins, Moglad and Melut. IPL plans to conduct seismic surveys prior to spudding a wildcat. Industry interest in the little explored country picked up in the 1970s, but falling oil prices during the 1980s and

International Petroleum Ltd. (IPL), Vancouver, B.C., has signed an exploration and production sharing agreement covering a block in eastern Ethiopia.

The Gambela block, which covers about 15,356 sq km about 400 km west of Addis Ababa, is at the intersection of two Mesozoic/Tertiary rift basins, Moglad and Melut.

IPL plans to conduct seismic surveys prior to spudding a wildcat.

Industry interest in the little explored country picked up in the 1970s, but falling oil prices during the 1980s and continuing civil strife limited activity in Ethiopia until recently.

IPL said its decision to acquire the block was based on the dramatically improved political situation in Ethiopia as well as the potential of the area.

IPL currently holds an interest with an Amoco Corp. unit in the 34,000 sq km Danakil block in Ethiopia, onshore and offshore along the Red Sea coast and on trend with a prospective Upper Jurassic continental rift area in Yemen (OGJ, Nov. 20, 1989, p. 36).

Other companies recently acquiring acreage in Ethiopia are Maxus Energy Corp., Dallas, (OGJ, Aug. 20, 1990, p. 46) and BP Exploration (OGJ, Apr. 3, 1989, p. 22).

AREA POTENTIAL

Chevron Overseas Petroleum Inc. held an exploration license on a 16,316 sq km area near Gambela in the early 1980s, where it conducted magnetic and gravity surveys and held an option to drill a well (OGJ, July 11, 1983, p. 31).

Chevron has explored Moglad and Melut basins on the Sudanese side of the border and made several discoveries there and farther west in the early 1980s. By 1982 the company had identified 200 million bbl of probable reserves in Central Sudan, (OGJ, Sept. 15, 1986, p. 42). IPL pegs combined potential reserves in Central Sudan at more than 1 billion bbl.

Chevron left Sudan in 1986 when crude prices collapsed and the government could not guarantee safety of personnel in the war torn region (OGJ, Sept. 15,1986, p. 42).