Categories
3. Read Recent News Business

Ophir Energy makes another major gas discovery in Equatorial Guinea

Posted by www.equatorialguineaonline.com – July 27th, 2012

Wed 9:11 am by Sergei BalashovOphir Energy will now undertake appraisal and satellite exploration drilling around its previous Fortuna-1 gas discoveryOphir Energy will now undertake appraisal and satellite exploration drilling around its previous Fortuna-1 gas discovery

 

Ophir Energy (LON:OPHR) announced that the Tonel-1 well in Block R in Equatorial Guinea is a 800 billion cubic foot gas discovery, marking the company’s third major find of this year.

The well intersected a 182 metre gas column in the mid-Miocene sandstone target with a total 117 metres of net pay.

The discovery has exceeded pre-drill expectations with estimated in-place resources of 1.1 trillion cubic feet (tcf) and a recoverable mean resource of 800 bcf, taking the de-risked gas resource estimate for the block to 2.2 tcf.

“Tonel represents the fifth and largest gas discovery on Block R to date and importantly represents a significant step towards the commercial threshold volumes required for a second train of LNG from Equatorial Guinea,” said chief executive of Ophir Nick Cooper.

Tonel is the first in the three well Ophir operated 2012 Block R drilling campaign using the Eirik Raude semi-submersible rig, which will now undertake appraisal and satellite exploration drilling around Ophir’s previous Fortuna-1 gas discovery.

The Fortuna East-1 and Fortuna West-1 wells will appraise 603 bcf of the Fortuna Fan discovery and also target additional exploration volumes of 833 bcf.

According to broker Westhouse, success with these two wells could justify a second LNG train on the Bioko Island facility and offer Ophir a “relatively short-circuit route to commercialisation”.

“Given that the partners of the Bioko Island LNG operation include Marathon Oil, Mitsui and Marubeni Corporation, the ability of Ophir to farm-out its interest at the capital intensive development stage should, we believe, not present too much of an obstacle for the company given the offtake pricing for LNG in the region,” said analyst Andrew Matharu.

Leave a Reply

Your email address will not be published.