The Executive General Manager (EGM) of the National Hydrocarbons Corporation (SNH) in Cameroon, Adolphe Moudiki and the Executive Chairman of EurOil Limited (EurOil), Chief Tabetando, today announced, that a discovery of condensate and gas was confirmed, following the drilling of the IM-5 appraisal/development well, in the offshore Etinde Exclusive Exploration Authorization, located in the Rio Del Rey Basin, Cameroon.
Drilled from September 18, 2012 to March 5, 2013, in a water depth of 56 meters, and attained a total depth of 3,430 meters, the IM-5 appraisal/development well was a success with a discovery of two reservoirs intervals of condensate and gas bearing sands of a total of 95 meters of net pay. The first reservoir interval, situated in the Middle Isongo Formation, logged 25 meters TVD net hydrocarbons, while the second, situated in the Intra Isongo Formation, logged 70 meters TVD net hydrocarbons of which 43 meters were perforated for the production tests.
The production tests performed from March 17, 2013 to April 21, 2013 revealed the following results: – (i) for the Middle Isongo, the maximum daily flow rate of 23 million cubic feet of gas and 3,155 barrels of condensate, and – or the Intra Isongo, the average daily flow rate of 37 million cubic feet of gas and 4,664 barrels of condensate. The combined maximum daily flow rates of Middle and Intra Isongo are 60 million cubic feet of gas and 7,819 barrels of condensate. These rates could have been higher using increased tubing size. The condensate is high quality (approximately 43 degree API).
The total volumes of hydrocarbons (P50 in-place) of the IM field are estimated at 155 million barrels of condensates and 1,050 billion cubic feet of gas.The well is being suspended as a future development/production well. EurOil Limited, as Operator and representative of the Contractor under the Etinde Exclusive Exploration Authorization, submitted to the Ministry in charge of Mines, an application for an Exclusive Exploitation Authorization over the Contract Area, with the aim of putting in production, the present discovery.
Adolphe Moudiki, Executive General Manager of SNH commented: “We are pleased with the positive results of the IM-5 well which occurred after those of IE-3 appraisal well drilled in 2010 by the same operator in this area. According to the total volume of these discoveries, which is important, we would like to move quickly to the development phase, with the aim of increasing the level of national oil and gas production. The confirmation of the discovery of the IM-5 well has demonstrated that the Rio del Rey Basin has not spoken its last word in terms of important oil and gas potential. We look forward, with our upstream stakeholders, to invest in the exploration, with the aim of increasing the national oil and gas production and to actively participate in raising the energy supply in Cameroon”.
Chief Tabetando, EurOil’s Executive Chairman remarked: “We are highly impressed by the IM-5 well which is way beyond our expectations. The well results have confirmed the availability of sufficient gas and condensate reserves to enable us proceed to development. With over 700 bcf now proven (P90 in-place), and further substantial prospectivity, EurOil is ideally positioned to supply the fertilizer plant and potentially other end-users for our gas”.
Kevin Hart, Chief Executive Officer for Bowleven plc, EurOil’s holding company said: “We are delighted with the overall results from IM-5 appraisal/development well which have surpassed our expectations. The flow rates that have been achieved on test, demonstrate substantial well deliverability from both the Middle and Intra Isongo intervals, and further strengthen the foundation for the planned development phase of Etinde. Due to the high deliverability of the Intra and Middle Isongo reservoirs, we are confident that we will be able to reduce the number of wells required to supply the planned fertilizer plant.
The IM-5 well has not only delivered a substantial increase in estimated hydrocarbon volumes, but it has also confirmed the presence of liquids rich hydrocarbons at the Isongo Marine field, a significant value driver for development plans on Etinde. In addition to proving that there are more than sufficient gas volumes present on a P90 basis to meet 70 mmscfd dry gas requirements of the fertilizer plant, the IM-5 well has also derisked considerable further prospectivity with significant volumetric upside on the block.
We are continuing to make good progress on the path to development in Cameroon. With the recently announced agreement between Bowleven, Ferrostaal and SNH, of a gas sales term sheet for the proposed fertilizer plant, and a work already underway to update the formal EEAA to integrate the very successful IM-5 well results, the Group remains focused on delivering the planned phased Etinde development and reaching FID, targeted by the end of 2013.
Achieving the first development phase will deliver value to all stakeholders and open up the significant hydrocarbon potential of Etinde Exclusive Exploration Authorization uncovered by our successful exploration activities. We look forward to the work ahead of us in 2013”