16th Sep 2014 06:52
LONDON (Alliance News) - Ophir Energy PLC Tuesday said it has found a new gas discovery at the Silenus East-1 well in Block R in Equatorial Guinea, saying the new find allows it to upgrade the Block R floating liquefied natural gas project.
The initial drill at the well encountered a 67 metre gross gas column with high-quality reservoir in line with the pre-drill expectations, FTSE 250-listed Ophir said.
The well was then deepened in order to test a secondary high risk oil target and the drilling encountered high-quality, albeit water-wet, reservoirs with weak oil shows. Ophir said the play remains of interest to the company, and it will conduct further evaluations on the block.
The company said Silenus East-1 has discovered an estimated mean recoverable 405 billion cubic feet of gas from the upper and deeper reservoirs, significantly de-risking a group of similar surrounding prospects. The results mean the total mean recoverable gas in the Silenus area, including the new discovery, is now estimated at around 1.2 trillion cubic feet.
Ophir said the total estimated mean recoverable resources from Block R, following the new discovery, is now 3.4 trillion cubic feet. That volume includes the estimates reserves at the Silenus, Fortuna and Tonel complexes, along with smaller discoveries.
"The Silenus East well result has confirmed sufficient incremental volumes for Ophir to be able to expand the Block R floating liquefied natural gas project from a 2.5 million tonnes per annum to a 3.0mmTPA project. This is important in that it provides economies of scale that increase the value of this already economic project," said Ophir Chief Executive Nick Cooper.
"First gas from the FLNG project is expected to be in early 2019 and this timetable is expected to be confirmed when we achieve the milestones of signing the Block R gas terms and confirming the midstream partners during the fourth quarter of 2014," Cooper added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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