28th Sep 2009 07:00
Afren plc (AFR LN)
Afren plc announces the start of drilling operations at the Ebok field
London, Monday, 28th September 2009. Afren plc and its partner Oriental Energy Resources ("Oriental") are pleased to announce that the Ebok-5 well offshore South East Nigeria has spudded.
This represents the start of the initial development phase of the Ebok field which will comprise of the following drilling targets and objectives:
Fault Block West upside: one appraisal well (Ebok-5) to test the upside potential at the D1, LD1E and D2 reservoir horizons with an estimated gross STOIIP of 92 MMbbls and recoverable resources of 25 MMbbls;
D2 Southern Lobe upside: one appraisal (Ebok-6) well to test the upside potential arising from a down-dip extension of the D2 reservoir, with an estimated gross STOIIP of 33 MMbbls and recoverable resources of 8 MMbbls;
D2 reservoir (Fault Block 1 & 2 areas): five horizontal production wells will be drilled, accessing a base case 55 mmbbls STOIIP of which 27 MMbbls is estimated to be recoverable; and
D1 reservoir (Fault Block 1 & 2 areas): one horizontal production well will be drilled on the D1 reservoir, with a base case STOIIP of 77 MMbbls of which 26 MMbbls is estimated recoverable, enabling optimal planning prior to full development of the D1 reservoir in the subsequent development phase.
Both the Ebok-5 and Ebok-6 appraisal targets exhibit amplitude conformance with the Fault Block 1 and Fault Block 2 areas of the field, where 53 MMbbls of recoverable crude oil has already been proved to date, and are therefore extensions of proven oil bearing reservoirs.
Following completion of the initial horizontal wells on the Fault Block 1 & 2 areas, Afren will target the upside in the D2 Southern Lobe, and drill a further three horizontal production wells and one water injection well drilled from the existing wellhead support structure.
Fabrication of the Ebok wellhead support structure is well underway, with final negotiations taking place for the production facilities. The required environmental impact assessment ("EIA") for Ebok, together with the field development plan ("FDP") have been submitted to the Nigerian authorities.
Following completion of the initial development phases (which is set to deliver production of 15,000 bopd in H1 2010, increasing to 35,000 bopd by end 2010), it is planned that the second phase development will be launched, incorporating the full development of the D1 reservoir (Fault Block 1 & 2 areas) and Fault Block West, whilst appraising the potential within the West Flank Qua Iboe structure (150 mmbbls STOIIP, estimated 45 MMbbls recoverable resources) and Fault Block North (30 MMbbls STOIIP, estimated 9 mmbbls recoverable resources).
The recent acquisition of the adjacent Okwok Field, significantly enhances Afren's assessment of the resource potential of the greater Ebok - Okwok petroleum complex. Afren currently plans to drill one appraisal well at Okwok in mid 2010, and is engaged in studies to determine the optimal well location and development concept, maximising on development synergies with Ebok.
A summary of the Ebok - Okwok complex 18 month planned drilling schedule is shown below:
|
Target |
Well type |
Gross 2P resources - appraisal upside MMbbl |
Indicative Timing |
|
Ebok D2 Southern Lobe |
App |
8 |
Q3 09 |
|
Ebok West Fault Block |
App |
25 |
Q4 09 |
|
D2 base case |
Prod |
n/a |
Q1 10 |
|
D2 base case |
Prod |
n/a |
Q1 10 |
|
D2 base case |
Prod |
n/a |
Q1 10 |
|
D2 base case |
Prod |
n/a |
Q1 10 |
|
D2 base case |
Prod |
n/a |
Q2 10 |
|
D1 base case |
Prod |
n/a |
Q2 10 |
|
Ebok D2 Upside Extension |
App |
12 |
Q2 10 |
|
Ebok West Flank Qua Iboe |
Exp |
45 |
Q2 10 |
|
Okwok |
App |
70 |
Q3 10 |
|
Ebok North Fault Block |
App |
9 |
Q1 11 |
|
Total |
12 |
169 |
Osman Shahenshah, Chief Executive of Afren, commented
"Having secured a drilling unit at competitive rates, we are pleased to be entering the drilling phase at the Ebok development. We have an intensive drilling schedule and remain on track to achieve production from Ebok of 15,000 bopd in H1 2010. Simultaneously we will seek to appraise and de-risk up to 169 MMbbls of upside potential from the greater Ebok / Okwok complex. We will also continue to pursue other opportunities in the surrounding area within the framework of our collaboration agreement with Oriental."
Alhaji Mohammed Indimi, Chairman of Oriental, commented:
"We are delighted that further appraisal and consecutive development drilling operations have commenced on schedule at the Ebok Field, representing an important milestone towards our successful delivery of one of the largest independent oil developments to date in Nigeria. Having recently welcomed our partner Afren to participate in the appraisal and development of the nearby Okwok Field, we look forward to firstly establishing Ebok as a production hub and replicating this success at Okwok, whilst continuing to pursue other suitable development opportunities in the surrounding area. Oriental is on track to deliver its commitment of major crude oil production from Nigeria's offshore waters."
Field technical description
Ebok is an undeveloped oil field, 50 km offshore in 135 ft of water in Nigeria's prolific south eastern producing area. The field is located close to several producing NNPC / Mobil JV fields and 55 km south-east of Mobil's onshore QIT Terminal. The field was discovered by the NNPC / Mobil JV in 1968 (M-QQ1 (Ebok-1)), and two subsequent appraisal wells were drilled in 1970 (Ebok-2 and Ebok-3). A total of 271 ft. (83m) of net oil pay was encountered in Ebok-1 in four sands between 2,600 ft (800m) and 3,600 ft (1,100m). The Ebok-4 appraisal well was drilled by the Afren - Oriental partners in November 2008 and encountered a total gross oil column of 284ft in high quality reservoir sands ranging in depth from 2,560ft to 3,718ft. Drill stem testing delivered a consolidated rate of 1,544 bopd of 20° to 25° API crude oil. Afren has a 40% working interest in the Ebok field.
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Enquiries: |
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Afren plc |
+44 20 7451 9700 |
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Osman Shahenshah |
Chief Executive |
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Galib Virani |
Head of Acquisitions and Investor Relations |
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Pelham Public Relations |
+44 20 7337 1500 |
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James Henderson |
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Mark Antelme |
Background information
Afren plc
Afren plc (www.afren.com) was founded in 2004 and listed on the AIM market in 2005. Afren has established itself as a significant oil and gas producer with operations in Nigeria and Côte d'Ivoire providing 23,000 working interest boepd of oil, gas and natural gas liquids production. During this time a reserves and contingent resource base of 165 mmboe has been established with additional prospective resources identified of 585 mmboe. Afren has today established a balanced portfolio of 16 production, development, appraisal and exploration assets across six African countries.
Note
In accordance with the AIM Rules, the technical information in this release has been reviewed and signed off by Mr Iain Wright, who is Technical Director at Afren Plc and has over 25 years relevant experience within the sector. He consents to the information in the form and context in which it appears. The Company estimates its reserves in accordance with the guidelines and definitions of the 2007 SPE/WPC/AAPG/SPEE Petroleum Resource Management System ("PRMS") Classification System.
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