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2014-03-27

AFRICA OIL PROVIDES OPERATIONAL UPDATE AND YEAR-END RESULTS

OIL PROVIDES OPERATIONAL UPDATE AND YEAR-END RESULTS

March 27, 2014 (AOI–TSXV, AOI–NASDAQ OMX) … Africa Oil Corp. (“Africa Oil” or
the “Company”) is pleased to provide year-end financial results and an update
on its operations in Kenya and Ethiopia.

Seven rigs are currently active on the Company’s blocks including four rigs on
Blocks 13T and 10BB in the Tertiary Lokichar Basin in Western Kenya, one rig on
Block 9 in the Cretaceous Anza rift in Northern Kenya, one rig in the South Omo
Block in the Tertiary basin in Southern Ethiopia and one rig in Block 8 in the
Jurassic/Triassic basin in the Somali region of Ethiopia.

In the Lokichar Basin, two rigs are drilling exploration/appraisal wells and
two rigs are conducting testing operations. Africa Oil Kenya BV holds a 50%
working interest in these blocks along with partner Tullow Oil plc who holds
the remaining interest and is operator.

The Weatherford 804 rig has completed drilling operations on the Emong
prospect. The well was located approximately four kilometres northwest of the
Ngamia-1 field discovery and was drilled to a total depth of 1,394 metres. It
encountered oil and gas shows while drilling, however the Auwerwer sandstones
that are the primary reservoirs in the Ngamia field were thin and poorly
developed in Emong-1 and the well was plugged and abandoned. It is believed
that the reservoir was poorly developed due to its proximity to the basin
bounding fault and its location within what appears to be a local isolated
slumped fault margin. The results are not expected to impact the thickness
and quality of reservoir throughout the main Ngamia field area. This rig will
now move to the Ekunyuk prospect on the eastern flank play which is on trend
with recent discoveries at Etuko and Ewoi.

The Sakson PR-5 rig is continuing drilling operations on the Twiga-2 updip
appraisal well and is expected to be completed in mid-April. This rig will then
move to drill a downdip appraisal of the Amosing discovery, which appears to
have high quality reservoir and may be one of the largest discoveries in the
basin to date.

Testing operations have been completed on the Ekales-1 well using the SMP-5 rig
and have confirmed this significant discovery. Two DST’s were completed and
flowed a combined rate of over 1,000 barrels of oil per day from a combined 41
metre net pay interval. The upper zone had a very high productivity index of
4.3 stb/d/psi. This rig will next test the Agete discovery.

The Etuko-2 well was drilled by the PR Marriott 46 rig as an exploration well
to test the upper Auwerwer sands overlying the previously announced Etuko
discovery. The well penetrated a potential significant oil column identified
from formation pressure data and oil shows while drilling and in core, with
good quality reservoir, but flowed only water on drill stem test. The results
are considered inconclusive and analysis is underway to consider further
options to evaluate this reservoir. This rig will next drill the Ngamia-2
appraisal well.

The Great Wall 190 rig is drilling ahead on schedule and budget at the Sala
prospect in the Cretaceous Anza graben. This well is operated by Africa Oil
Kenya B.V. which holds a 50% interest and operatorship with partner Marathon
Kenya Limited B.V., a subsidiary of Marathon Oil Corporation holding the
remaining 50%. The well is currently at approximately 1500 metres depth and
drilling ahead. Results of this well are expected to be announced in the
second quarter.

The Shimela prospect in the South Omo Block in Ethiopia is expected to spud
before the end of March and will target a new basin in the Tertiary trend, the
Chew Bahir Basin. Numerous potential hydrocarbon indicators have been observed
on seismic in this basin and if this well is successful in proving up an active
petroleum system and thus “opening” the basin, numerous other prospects
identified in the basin will be de-risked. This rig will next drill the Gardim
prospect in the southern portion of the basin. Both wells are basin bounding
fault prospects similar to the Ngamia/Amosing/Twiga discoveries in the Lokichar
basin.

The El Kuran-3 well, in the Somali region of Ethiopia, has reached a total
depth of 3,528 metres and is currently undergoing logging and evaluation prior
to taking a decision on the way forward on the well. There have been numerous
oil and gas shows in the well which is a follow up to a discovery made by
Tenneco in the 1970’s. There appears to be a significant amount of oil and gas
in several intervals and the primary issues are the quality of the reservoir
and potential commerciality given the remote location.

Keith Hill, President and CEO of Africa Oil, commented, “We are very pleased
that all wells in the Lokichar Basin continue to find hydrocarbons indicating a
very rich prolific source rock. We continue to gather key reservoir data
through drilling and testing, with particular emphasis on understanding the
distribution of the most productive reservoirs in the basin. This
understanding should be enhanced with the addition of the 3D seismic survey
which should allow us to develop a comprehensive reservoir model which will be
essential for moving the Lokichar basin into development. We are on track to
drill six very exciting potential basin-opening wells in 2014 including wildcat
wells in the Chew Bahir, West Turkana, and South Kerio Basins, and along the
eastern flank of the Anza Basin in addition to at least three additional
exploration targets in the Lokichar Basin.“

The Company is also actively pursuing pre-development studies in the Block
10BB/13T area including commencement of the front end engineering design (FEED)
and environmental and social impact assessment (ESIA) studies for the pipeline,
export terminal and field facilities. It is the goal of the partnership to
conclude these studies and achieve project sanction by the end of 2015/early
2016.

Significant Events in 2013

-- Africa Oil ended the year with cash of $493.2 million and working capital
of $439.8 million. In October, the Company completed a brokered private
placement issuing an aggregate of 56,505,217 common shares at a price of
51.75 Swedish Kronas (“SEK”) per common share for net proceeds of $440
million significantly improving the Company’s liquidity and capital
resource position.
-- During 2013, the Company completed seven exploration wells and two
multi-zone well tests across its blocks and exited the year with three
wells drilling and one well under test.
-- During the first half of the 2013, the Company completed a series of well
tests at both Twiga South-1 and Ngamia-1 on Blocks 13T and 10BB in Kenya,
respectively. These successful well tests confirmed over 5,000 barrels of
oil per day (“bopd”) flow potential per well and doubled the previous
estimates of net oil pay. Transient Pressure Analysis has been conducted
on the Twiga South-1 and Ngamia-1 well tests. No pressure depletion was
recorded over the duration of the tests.
-- In July 2013, the Company announced a new oil discovery at Etuko-1.
Etuko-1 is located 14 kilometres east of Twiga South-1 in Block 10BB and
was the first test of the Basin Flank Play in the eastern part of the South
Lokichar Basin. The well encountered approximately 40 metres of net oil
pay in the Auwerwer and Upper Lokhone targets and approximately 50 metres
of additional potential net pay in the Lower Lokhone interval based on log
analysis. In February 2014, the Company announced the results of five well
tests conducted on five Lokhone pay intervals in Etuko-1. Light 36 degree
API waxy crude oil was successfully flowed from three zones at a combined
average rate of over 550 barrels of oil equivalent per day.
-- In September 2013, the Company announced a new oil discovery at Ekales-1
located in the Basin Bounding Fault Play between the Ngamia-1 and Twiga
South-1 discoveries. Logs indicated a potential pay zone of 60 to 100
metres to be confirmed by flow testing.
-- In November 2013, the Company announced a new oil discovery at Agete-1
located seven kilometres north of the Twiga South-1 discovery along the
Basin Bounding Fault Play in Block 13T. Logs indicated a significant oil
column with an estimated 100 metres of net oil pay in good quality
sandstone reservoirs. Well testing will commence imminently and an
appraisal well is planned in the first half of 2014.
-- In January 2014, the Company announced a new oil discovery at Amosing-1
located seven kilometres southwest of the Ngamia-1 discovery along the
Basin Bounding Fault Play in Block 10BB. Logs indicate 160 to 200 metres
of potential net oil pay in good quality sandstone reservoirs. Well
testing and an appraisal well are planned for the first half of 2014.
-- Also in January 2014, the Company announced a new oil discovery at Ewoi-1
located four kilometres to the east of the Etuko-1 discovery in the Basin
Flank Play on the eastern side of the South Lokichar Basin in Block 10BB.
Logs indicate potential net pay of 20 to 80 metres to be confirmed by well
testing.
-- Given the significant volumes discovered and the extensive exploration and
appraisal program planned to fully assess the upside potential of the
basin, the Tullow-Africa Oil joint venture has agreed with the Government
of Kenya to commence development studies. In addition, the partnership is
involved in a comprehensive pre-FEED study of the export pipeline. The
current ambition of the Government of Kenya and the joint venture
partnership is to reach project sanction for development, including an
export pipeline, by the end of 2015 or early 2016.
-- To facilitate these development activities in parallel with exploration and
appraisal, an “Area of Interest” (AOI) encompassing the South Lokichar
Basin discoveries and further prospects in Blocks 10BB and 13T, was agreed
with the Government of Kenya in February 2013. This agreement allows a
multiple field approach to development of the resources while permitting
the continued focus on exploration to increase the resource base while
concurrently appraising discoveries.
-- All operations in Block 10BB and Block 13T in Northern Kenya were
temporarily suspended for approximately 12 days beginning on October 28,
2013 as a precautionary measure following demonstrations by members of
local communities. Operations resumed after successful discussions relating
to the operating environment with central and regional government and local
community leaders. These discussions led to the signing of a Memorandum of
Understanding which clearly lays out a plan for the Government of Kenya,
county government, local communities i...

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