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All articles in the Farm in, Farm Out Section:


Bowleven Smells a Rat, Annuls Its Plans for Tanzania

By Sa’ad Bashir, in Dar es Salaam

Bowleven has completed due diligence on the Kilwani North Development Licence and Ruvuma PSA, both onshore Tanzania.

And the company feels it should simply leave these assets alone.The AIM listed minnow has “decided not to pursue its interest in the proposed acquisition”.

The terse statement announcing the cancellation of plans is at odds with the exuberance projected in the November 19, 2015 release about the Heads of Agreement between Bowleven and Aminex, (the holder of the licences).

The deal had an aggregate gross consideration of up to $28Million comprising $8.5Million cash, $10Million carry, $5Million share-based element and $4.5Million in contingent payments.

The plan was for Bowleven to acquire:

  • 25% interest in the soon to be producing Kiliwani North Development Licence (KNDL); and
  • 50% interest in the proven and highly prospective Ruvuma PSA.

The company was hoping it would gain:

  • A low cost entry into a rapidly expanding Tanzanian gas market with substantial existing infrastructure with spare capacity;
  • Near-term high quality production providing cash flow from the essentially complete Kiliwani North development;
  • Access to extensive exploration and appraisal potential on the Ruvuma PSA, with the opportunities for near-term gas-to-power into the local market and longer term gas sales into adjoining major existing trans-Tanzanian pipeline to Dar Es Salaam.

An Appraisal drilling was even planned for Ruvuma PSA early 2016.

Now, everything has been cancelled.


SAPETRO Winds Down in Benin Republic

By Akpelu Paul Kelechi

After relinquishing Block 1, a complete exit from Sèmè is next…

South Atlantic Petroleum (SAPETRO) is in discussions with the authorities in Benin Republic, to either significantly farm down its interest in Sèmè field or exit the asset entirely. The Nigerian independent had two distinct offshore licences in Benin Republic; the Sèmè Field, which it signed on to re-develop and the Block 1, which is largely an exploratory tract. SAPETRO relinquished its 100% interest in Block 1 following the drilling of an unsuccessful exploration well – Perle C.

It committed much more to Sèmè field, a one- time producer which was abandoned in 1997 after having delivered over 21Million barrels of oil. Between 2014 and 2015, SAPETRO drilled three wells in Sèmè field from the same single conductor supported platform, with the jack up rig Noble Craighead. The company’s very optimistic development plan envisaged a total of 9,000Barrels of Liquids perDay (BLPD) expected to be produced at peak, of which 3,000BLPD will be water and 6,000BOPD would be oil.

But there have been significant technical challenges as well as poor geologic realisation of the plan. The last well, for one, went through togh drilling conditions and couldn’t be completed. Total realizable production turned out to be no more than 2,500BOPD, with over 50% water cut. The company has suspended the field development and is currently doing some of the CSR projects it agreed with the authorities, including building a Tank Farm.


Kola Karim Looks to add Equatorial Guinea to the Cart

Nigerian oil and gas player, Kola Karim, is in negotiation, through Shorecan, with the Equatorial Guinea Government, to acquire the operating stake in EG-0 8, located east of Bioko Island, off Equatorial Guinea. The lease lies north of the Alen production area, where Noble Energy, the American independent, operates the 25,000BOPD Alen field.

Shorecan (whose full name is Shoreline Can Overseas Petroleum Development Corporation Limited) is a special purpose vehicle formed by Karim’s Shoreline Energy International and the Canadian minnow Canadian Overseas Petroleum Limited.

EG 08 is one of the five blocks currently under negotiations between interested companies and the Equatorial Guinea government, according to Gabrie lM. Obiang Lima, the country’s Minister of Mines, Industry and Energy. The five blocks are some of the acreages offered in the 2014 bid round, which have not been awarded.

Shoreline Energy International has significant share in Shoreline Natural Resources, which holds 45% in the Oil Mining Lease (OML)  30 onshore Nigeria. Canadian Overseas Petroleum Limited has interest in Block LB-13 offshore Liberia. These interests in OML 30 and Block LB -13, are outside of the Shorecan JV.

 

 

 


Mart: Another Suitor Walks Off

Toronto listed Mart Resources failed to convince a second company, in three months, to buy it over.

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EGAS to Auction Deepwater Blocks by 4Q 2016

The Egyptian Natural Gas Holding Company (EGAS) is preparing for a lease sale in the fourth quarter of 2016. The company only recently awarded four acreages to companies in the 2015 bid round and now it is getting set to launch another auction.

EGAS officials have begun demarcating the acreages that will be in the 2016 round, which will include onshore, shallow water and deep-water (especially in the Mediterranean). Part of the process is to procure approvals from all concerned government authorities.

Egypt currently produces 4.15billion cubic feet of gas per day, compared to 4.5billion cubic feet in 2014.

The 2015 lease sale resulted in four awards (including Sector 4 on North RasAl-Ash Marine for BP and IEOC, Sector 7 on North Hammad Marine for IEOC, BP and TOTAL, Sector 12 on the Northeast Habi Marine for Edison and Sector 14 on the North Tabiya Marine for BP). The sale fetched in total investments of $306MM, in addition to signature grants worth $10.5MM to drill eight wells and acquire three dimensional (3D) seismic data.


Chevron, ENI, Tullow Lose Out in Angolan Bid Round

  • Angola “used” majors to give a veneer of competition to lease sale

None of the competing major Western companies

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Lack of Seismic Data Challenges Gabon’s Return to The Auction Market

By Toyin Akinosho, in Cape Town

The Government of Gabon has admitted that lack of three dimensional (3D) seismic

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Indian Billionnaies Finalise Entry Into Tanzania

Tata Petrodyne Limited (TPL), a subsidiary of the giant Indian gonglomerate Tata Group,

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Tullow Regains Onal In Gabon

Tullow Oil says it has reached agreement with the Government of Gabon over its licences in the Onal Complex Fields.
Following negotiations, Tullow has regained its 7.5% stake in the Onal Complex producing fields and the Ezanga block (formerly the Omoueyi exploration block).

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Tower Grabs Cameroon Property On the Cheap

UK based minnow Tower Resources says its entry into Cameroon is at a low cost, eminently justifiable in a low crude oil price regime.
“Tower’s signature of the Thali PSC represents a low cost entry into a mature region with low-risk exploration/appraisal targets and the potential for significant upside”, the company declares excitedly.

The Thali block, located in shallow water offshore, was formerly known as “Dissoni” block.
The terms of the PSC, signed with the Cameroonian authorities on September 15, 2015, involve three exploration phases, including the minimum work commitment of the Initial Exploration Period:

  • Initial Exploration Period (3 Years): Consisting of geological and geophysical studies, 100km2 of 3D seismic acquisition and a commitment well with a minimum financial commitment of $13Million.
  • First Renewal Period (2 Years): Consisting of one exploration or appraisal well with a minimum financial commitment of $15Million.
  • Second Renewal Period (2 Years): Consisting of one exploration or appraisal well with a minimum financial commitment of $15Million.

 “Tower has the option of relinquishing the PSC on completion of each Period on condition that the minimum work commitment has been met.

“The Thali PSC covers an area of 119.2 km², with water depths ranging from 8 to 48 metres, and lies in the prolific Rio del Rey basin, in the eastern part of the Niger Delta. The Rio del Rey basin has, to date, produced over one billion barrels of oil and has estimated remaining reserves of 1.2 billion BOE, primarily within depths of less than 2,000 metres. The Rio del Rey is a sub-basin of the Niger Delta, an area in which over 34.5 billion barrels of oil has been discovered, with 2.5 billion BOE attributed to the Cameroonian section”.

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