Scimitar to explore Mozambique acreage

Scimitar Block [23442 bytes]

A group led by a unit of Scimitar Hydrocarbons Corp., Calgary, is fielding seismic crews for an exploration program on a large tract in Mozambique.

Scimitar Production International Ltd. (SPIL) and partners by the end of August expect to begin acquiring seismic data over a large part of Buzi-Divinhe block, a 2.1 million acre tract extending south from a point north of the coastal city of Beira to within about 45 km of Pande gas field.

The seismic program is the first field work under a production sharing agreement (PSA) signed Dec. 15, 1995. Effective Jan. 1, the PSA includes a 21 month initial exploration period with an optional 12 month extension.

Buzi-Divinhe operator SPIL and Zarara Petroleum Resources Ltd. each hold 50% interest in the PSA. The government of Mozambique and state company Empresa Nacional de Hidrocarbonetos (ENH) are coventurers in the agreement.

SPIL retains the right to earn another 25% interest in the agreement by fulfilling certain work commitments.

Seismic contractor Natural Re- sources Geophysical Corp., Calgary, at last report was working with employees in SPIL's Maputo, Mozambique, office to complete preparations for the seismic program. Crews were surveying and clearing routes for seismic lines and constructing base camp facilities. Officials said seismic vibrator equipment was to arrive in mid-August.

Buzi-Divinhe PSA overview

Buzi-Divinhe PSA stems from a memorandum of understanding concluded Oct. 24, 1994.

PSA partners in the first exploration period are to:

Review, reprocess, and reinterpret existing data on PSA acreage.
Acquire, process, and interpret new seismic.
Mark potential drilling locations and plan a logistical program.

The group in second phase exploration, beginning as early as mid-1997, may opt to drill an exploratory well, pending results of seismic and other preliminary work. Officials also are evaluating an early production program for Buzi gas/condensate field in the northern part of the tract.

Information was scant on Buzi-Divinhe geology, but officials said the group's exploratory program is targeting some of the same Grudja intervals encountered at Pande and other points south.

Grudja wells on Buzi-Divinhe tract will focus on formations at 4,000-6,000 ft, with shallower and deeper secondary targets.

One of the primary zones targeted by SPIL and partners-Maastrichtian Lower Grudja D-6 horizon-produces gas in commercial volumes at Pande and has demonstrated wider than expected pay with excellent productivity potential (OGJ Oct. 23, 1995, p.102).

Another primary target, Lower Grudja G-9 strata, provides productive intervals at Buzi field. Previous exploration in Mozambique also has reported G-9 strata at 1.5 tcf Temane gas field south of Pande.