Pura Vida upgrades reserve estimate for Nkembe block

Pura Vida Energy has announced an upgrade to its prospective resource assessment of the Nkembe PSC, offshore Gabon. Further technical work undertaken by the company has revealed a significant new play in the pre-salt within the Syn-rift interval where carbonate Coquinas reservoirs are anticipated to be present.

The inclusion of newly identified prospects increases the total gross mean unrisked prospective resources on block to 1,680 mmbo, 1,344 mmbo net to Pura Vida. The carbonate play is analogous to similar plays that have resulted in the discovery of several billion barrels of discovered oil offshore Angola and offshore Brazil. Pura Vida’s technical work has also identified several areas which contain multiple stacked prospects that have the potential to be attractive drill candidates that could be tested with a single vertical well.

Based on new interpretation on recent reprocessed seismic data undertaken by Pura Vida, the estimated net mean prospective resources on the Nkembe block has increased from 815 mmbo to 1,344 mmbo.
 
Pura Vida has identified several areas within the Nkembe block that contain multiple stacked targets. The drilling of stacked targets provides the ability to test prospects at differing stratigraphic levels through a single vertical well. Intersecting multiple prospects saves on drilling costs, increases the overall chance of making a commercial discovery, and in the event of success, allows for potential aggregation of resource potential.

The Moveni region in the south-western part of the block contains stacked prospects at the Gamba, Dentale and Syn-rift carbonate levels which have a net mean prospective resource un-risked potential of 286 mmbo and 603 mmbo respectively. A single well at this location has the potential to test a combined net prospective resource of 890 mmbo.

Dentex prospects directly overlie the larger and significant pre-salt level referred to as Palomite Deep. Of particular interest to Pura Vida is the Pompano prospect within the Palomite cluster, where stacked targets from the Batanga, Lower Anguille and the Cap Lopez lie directly above the Palomite Deep pre-salt play where the Gamba, Dentale and the Syn-rift carbonates are stacked. The combined net mean prospective resource, un-risked, potential of Pompano and Palomite Deep is 320 mmbo.

The Loba Oil Field also overlies the Loba Deep sub-salt target which provides an opportunity for a combination of a lower risk appraisal well for a production test of the post-salt Loba discovery with a test of the Loba Deep sub-salt exploration target.

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UN says oil search in Northern Somalia risks stoking tensions

Two semi-autonomous areas of northern Somalia have largely avoided the violence that’s plagued the rest of the Horn of African nation for decades. Now oil exploration may change that, according to the United Nations.

Territorial disputes between the governments of Somaliland and Puntland, a separatist campaign by a clan-based group and “discrepancies” in oil licensing throughout Somalia are all contributing to simmering tensions in the region, the United Nations Monitoring Group on Somalia and Eritrea said in a May 28 memorandum. Somaliland’s planned deployment of an oil-protection force in the region may also deepen the strains, it said.

“Urgent attention must be given to this issue to avoid commercial activity triggering conflict further down the road,” Jarat Chopra, the coordinator of the monitoring group, said in the report. The document was sent to Bloomberg by a United Nations official who asked not to be identified because it hasn’t been released publicly.

Somaliland and Puntland dispute a border that’s criss-crossed by oil concessions that have been awarded to companies including DNO International, Horn Petroleum and RAK Gas. Oil deposits in Somalia may amount to as much as 110 billion barrels, according to a report published last week by the Mogadishu-based Heritage Institute for Policy Studies. Saudi Arabia, the world’s biggest oil exporter, has 266 billion barrels of proven reserves, BP data shows.

Somaliland declared independence in 1991 following a coup in the Somali capital, Mogadishu, and drew boundaries along the lines of pre-colonial borders of the British and Italian occupied territories. Puntland, which declared itself an autonomous state in 1998, claims parts of Somaliland in the Sanaag and Sool regions. Khatumo, a clan-based political organization, also claims sovereignty over land that straddles the boundary, according to the UN monitoring group.

Chopra cites March clashes in Sanaag province following a visit by Somaliland’s President Ahmed Mohamed Silanyo and the deployment of forces in Sool by Somaliland and Puntland as examples of worsening relations.

“While there has not been major conflict to report, political and military tensions have nonetheless escalated in recent weeks,” he said.

Somaliland Energy Minister Hussein Abdi Dualeh didn’t immediately respond to emailed questions. In a comment on his Twitter account on June 7, Somaliland’s president urged the United Nation monitoring group to “stop meddling in the affairs of Somaliland.” The semi-autonomous region will “protect its economic assets,” he said.

Since presidential elections in January, Puntland President Abdiwelli Mohamed Ali Gaas has been lobbying Khatumo representatives and other clans to drop their independence movement in support of Puntland, aggravating tensions with Somaliland, the UN said. Khatumo has challenged the legitimacy of DNO’s license with Somaliland in the disputed Nugaal block.

DNO entered Somaliland in April 2013 with a block in the Nugaal valley and have a competing claim with Horn Petroleum, which was issued a license in the disputed area by Puntland’s government.

Horn Petroleum is working to resolve disputes over the Nugaal block with the Puntland, Somaliland and Somali governments, along with London-based Genel Energy Plc, DNO and others organizations like the UN, Alex Budden, V.P. of external relations for Africa Oil Corp., Horn’s parent company, said in a phone interview.

DNO’s press officer Henrik Schwabe didn’t respond to four phone calls and three emailed requests for comment.

The United Nation is also concerned about the Somaliland government’s plan to hire Assaye Risk, a UK-based private security contractor, to train and equip a special force to protect oil exploration workers at a cost of as much as $25 million.

“The deployment of the oil-protection unit could play into internal and regional conflicts that appear to be brewing within Somaliland and between Somaliland and other regional authorities,” Chopra said.

Deeq Yusuf, chief of staff in the Puntland presidency, said his government sees the oil-protection unit as “part of the continued aggression and clan expansion of Somaliland against the territory and people of Puntland.”

Assaye Risk director Arabella Wickham said the 420-member oil protection unit would provide security services to international oil companies allowing the country to pursue one seismic operation.

“Within the blueprint, Assaye Risk clearly defined the operational remit of the OPU as defensive and pre-emptive only with a mandate confined to protective services in support of the energy industry,” Wickham said. The “government owned and commercially operated” unit would be recognized by the UN and constituted by Somaliland law, she said.

Puntland already has a similar force known as the Explorations Security Unit that provides protection for Africa Oil workers, according to the Heritage Institute.

Genel, which is exploring blocks in Somaliland, suspended seismic operations in September because of what it said was a “deteriorating security situation.” The company welcomes Somaliland’s plan to boost security, spokesman Andrew Benbow said in an emailed response to questions.

“Discussions continue with the government in order to facilitate a resumption of activity,” he said.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

Ophir Energy gives upadte on Okala-1, Gabon

Ophir Energy has reported that drilling operations have now concluded on the Okala-1 well in the Mbeli Block offshore Gabon. Ophir has a 50% net operated interest.

The well was drilled by the Vantage Titanium Explorer drillship to a depth of 4,229 m MD targeting Cretaceous sands in the pre-salt section. The well encountered a thick section of Aptian salt as prognosed and well developed sandstones in the Gamba and Dentale formations.

However, there were no significant hydrocarbon shows in the target reservoirs. Ophir’s share of the Okala-1 well costs was partially covered by carries from the company’s JV partners.

The Vantage Titanium Explorer will now move to Equatorial Guinea to begin a campaign of three exploration and appraisal wells on Block R.

Providing useful resources, articles and writings on crude oil, other petroleum products, energy and gas. By Giftelyon Multi-Sevices Int'l Ltd and services, UK, online.

MedcoEnergi buys oil and gas blocks in Tunisia

Medco Tunisia Petroleum, has entered into an agreement, effective 1 January 2014, to acquire 100% of the shares of Storm Ventures International from Storm Ventures International “Seller” for a base purchase price of $ 114.03 million, excluding an amount payable forworking capital (which is subject to a customary post-closing adjustment). The Seller is a subsidiary of Chinook Energy, which is listed on the Toronto Stock Exchange. SVI (together with its subsidiaries) is one of the leading active exploration and production companies in Tunisia, with a participating interest in eight working areas.

SVI’s interest in Tunisia comprises four exploration areas, two development areas and two production areas with concession periods of either 30 or 50 years. Out of these eight areas, five are located onshore and three are offshore. All of SVI’s blocks are located in prolific hydrocarbon areas. Five onshore blocks (Adam, Sud Remada,Bir Ben Tartar, Jenein and Borj El Khadra) are located in the Ghadames Basin, while the remaining three offshore blocks (Cosmos, Hammamet and Yasmin) are located in the Pelagian Basin off the northeast coast of Tunisia.
The completion of this acquisition is conditional upon, amongst other things, approval from the Government of Tunisia and the consent of certain existing partners in the blocks. Upon completion of the acquisition, MedcoEnergi anticipates adding 2P reserves and oil-and-gas production (net working interest before royalties, taxes and Government take) by 12.3 MMboe and 2,800 Boepd, respectively.

Production is envisaged to increase to approximately 16,000 Boepd from in fill well drilling of the existing producing block (Bir Ben Tartar) and the development of the Cosmos and Yasmin blocks (scheduled for completion in 2018) is expected to add a further 12.6 MMboe of 2P reserves.

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