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FIELD DEVELOPMENT PLAN FOR OMERELU.

EXECUTIVE SUMMARY: The Omerelu field was discovered by exploration well Omerelu -1 spudded in January 1975 by the then Gulf Oil Company Nigeria Limited now transformed to Chevron Nigeria Limited. The field is located in OML 53 about 42 kilometers as the crow flies North West of Port Harcourt in Rivers State, Nigeria. Omerelu-1 is the only well drilled in the field to date. In 1996, following the promulgation of the Marginal Field Decree, by the Nigerian Government, some marginal fields were relinquished to the Department of Petroleum Resources. Niger Delta Petroleum Resources Limited, the operator of the Ogbele Marginal field was given the first Right of Refusal for the assessment of Omerelu field. The company exercised the Right in 1996 and has since concluded the Farm-out Agreement with Chevron. NAPIMS gave approval to commence active operation of the field in XXXXXX, 2011.

Location Map

The Evaluation of Omerelu field showed that Omerelu-1 well encountered five hydrocarbon sands (AA4, A1, A2, A4 and A7, in depth order). The A1 is interpreted to be gas bearing with the possible presence of downdip oil, while the A2 reservoir has been interpreted and tested oil bearing with the possible presence of updip free gas. Of the remaining reservoirs, the AA4 and the A7 have been interpreted as oil-bearing while the A4 has been interpreted as gas bearing. Omerelu Field is estimated (expectation case) to contain 42 MMSTB STOIIP with corresponding solution gas of 26.7 BSCF. The initial free gas (gas cap) volume is estimated at 59 BSCF. The field ‘expected’ ultimate recoveries are estimated at 21.1 MMSTB oil, 13.4 BSCF solution gas, and 35.6 BSCF of free gas. The A2 reservoir is estimated to contain 85% of the field STOIIP and represents 90% of the oil ultimate recovery. The A1 reservoir contains 73% of the free gas representing 72% of the fields free gas recovery. The structural interpretation of the field is based only on four 2D seismic lines of 1980 vintage, well data and data from offset wells in Shell’s Enwhe and Rumuekpe fields. The current structural interpretation shows two dominant faults bounding the field to the north and south/southeast forming a simple rollover on a growth fault in the southwestern part of the field. We hope that a recently acquired 3D seismic data of 2010 vintage will improve the structural interpretation of the Omerelu field before any new drilling prospect is carried out. Field Development Plan will be premised on Ogbele experience but not necessarily the “poor boy” approach. The 3D seismic workstation ready data plus all the log information and petrophysical data will be used to reinterpret the structural attitude of the field and to recalculate the reserve volumes. While the reinterpretation is going on, the civil works will be commenced inclusive of the access road, the rehabilitation of the location and the negotiation of the global memorandum of understanding (MOU) with the host communities will be going

on. Environment Impact Assessment (EIA) will be conducted prior to active operations. for oil development. The closest Flowstation facility is located about 13km Northwest of Omerelu at Shell’s Ahia field which evacuates its crude through the Egbema-Rumuekpe pipeline. this will help define how many drainage points will be required to efficiently produce the field and thus determine how many wells will be drilled. The results of the test will determine the mode of development. A2 and the A7. Omerelu 1 will be reentered to test the proven oil reservoirs and assess the integrity of the completion jewelry. how and when these will be put on production. In tandem with the reentry of the well will be the seismic reinterpretation of the well. whether to shoot for full Flowstation facility or plan for Early Production Facility ( EPF). The main targets for the well will be the A1 and A2. the primary oil reservoirs will be the AA4. however. .

Topographic map .

1975 by Chevron. A1. Omerelu Field is estimated (expectation case) to contain 42 MMSTB STOIIP with corresponding solution gas of 26. The field was discovered by the exploration well Omerelu-1 spudded in January. some marginal oil fields were relinquished to the Department of Petroleum Resources. Of the remaining reservoirs.Omerelu 1 is not as prolific in gas as Ogbele field therefore the strategy for gas development will be carefully evaluated. following the promulgation of the marginal Field Decree by the Nigerian Government. . The Evaluation of Omerelu field showed that Omerelu-1 well encountered five hydrocarbon sands (AA4. the operator of Ogbele Marginal Oil Field was given the first Right of Refusal for the assessment of the Omerelu Field. NDPR has since exercised the First Right of Refusal and has negotiated the Farm-Out Agreement with Chevron and received the approval to operate Omerelu as the company’s second marginal field. consideration will be given to compliance with the Federal Government gas flare out policy. the AA4 and the A7 have been interpreted as oil-bearing while the A4 has been interpreted as gas bearing. in depth order). A2. Niger Delta Petroleum Resources Ltd. Omerelu-1 is the only well to date in the field. The initial free gas (gas cap) volume is estimated at 59 BSCF. The A1 is interpreted to be gas bearing with the possible presence of downdip oil. while the A2 reservoir has been interpreted and tested oil bearing with the possible presence of updip free gas. In 1996. (NDPR). most importantly however.7 BSCF. A4 and A7. INTRODUCTION: History and Status: The Omerelu field is located in Chevron’s OML 53 in Rivers State in the SouthSouth Geographical zone of Nigeria some 42 kilometers (as the crow flies) northwest of Port Harcourt.

well data and data from offset wells in Shell’s Enwhe and Rumuekpe fields. OBJECTIVE AND CHALLENGES: The objective of the Omerelu Field Development is to overcome the challenges experienced in Ogbele field development.The field ‘expected’ ultimate recoveries are estimated at 21. the civil works will be commenced inclusive of the access road. This reinterpretation of the field. will help in the recalculation of the reserve volumes. The A2 reservoir is estimated to contain 85% of the field STOIIP and represents 90% of the oil ultimate recovery. We have incorporated the recently acquired 3D seismic data of 2010 vintage. The current structural interpretation shows two dominant faults bounding the field to the north and south/southeast forming a simple rollover on a growth fault in the southwestern part of the field. 13.4 BSCF solution gas. the rehabilitation of the location and the negotiation of the global memorandum of understanding (MOU) with the host communities will also be initiated. Field Development Plan will be premised on Ogbele experience but not necessarily the “poor boy” approach. We do not perceive acquiring new Geological and Geophysical data for more detailed re-evaluation of the field as critical to bringing the field on production as we have all the well information and . Environment Impact Assessment (EIA) will be conducted prior to active operations.6 BSCF of free gas. and 35. the petrophysical data plus other log information data in the current structural interpretation of the Omerelu field as part of this Field Development Plan. While the reinterpretation is going on. to deploy the technical expertise and operational excellence acquired in the Ogbele field development to deliver Omerelu to First Oil in a record time and within reasonable budget. The structural interpretation of the field is based only on four 2D seismic lines of 1980 vintage.1 MMSTB oil. The A1 reservoir contains 73% of the free gas representing 72% of the fields free gas recovery.

The Present day Niger Delta is believed once again to be prograding. NDPR is now able to secure loans and bank financing with relative ease. Agbada sediments have been deposited around the delta shoreline while Benin sediments have been laid down on the landward side. Sedimentation during the period (Paleocene to present day) has been strongly diachronous. . Hydrocarbon generation into structures within OML 53 has been proven by Omerelu discovery well. At every stage of the development.the 3D seismic data recently acquired and processed in 2010. A subsequent rise in sea level caused the sea to transgress over the PlioPleistocene shoreline to its current position. because of its diachronous nature. the paralic (marginal marine) Agbada Formation (interbedded sands and shales) and the continental Benin Formation (sands and gravels). and three main formations are recognized.the marine Akata Formation (silts. since as a producing oil and gas company. The deeper water Akata Formation is the main source rock for the Niger Delta Complex and is thought. The progradation of the delta continued until the Plio-Pleistocene at which time the shoreline (sub-serial delta) reached its maximum extent. to underlie the whole of the Tertiary Niger Delta. clays and shales). controlled by diapiric uplift on the delta front. The funding challenges which prevented the early operations in Ogbele may not be a major contributing factor in bringing Omerelu to first oil. Akata sediments have been deposited in front of the shoreline. FIELD OVERVIEW. GEOLOGY AND GEOPHYSICS The Niger Delta Complex began to develop in the Paleocene/Eocene times.

16 sq. pre the 3D seismic data of 2010 vintage.5 seconds DATA INVENTORY FROM CHEVRON: The following data and reports have been received from Chevron. Drilling plan 4. Daily drilling mud reports 3. Geophone survey report 7. had only four 2D seismic data. The data set is of reasonably good quality and has a depth penetration of over 3. with shale smear common along the downthrown sides of the listric faulting. which occur either as stacked channels or laterally continuous barrier bar sands. Exploration well summary 5. Intraformational seals are dominant. km.3 diplines and one strike line: 72-53-153.80 sq.The Niger Delta has been consistently sand-rich system since the Cenozoic and so reservoir quality is generally of secondary issue to development of sand bodies. The 3D seismic lines cover the entire Omerelu field of 35. but two distinct porosity changes can be mapped regionally. Sands are often poorly consolidated and can have porosities up to 40% in oil bearing reservoirs. Sands shallower than 3000m (9480ft) have porosities over 15%. Decrease in porosity with depth is gradual. while those below 4000m ( 13. Daily drilling reports 2. km while the farm out area is 11. formed by the interdigitation of shales and sands. Geochemical report 6. 72-53-198. GEOPHYSICS: The Omerelu field. 72-53-202 and 80-53-25. 1. Mud report .120ft) are generally less than 15%.

.Formation interval tester results 20. Petrophysical data sheet 9.Well log in PDF and LAS format 16.Core sample taker results.3D Seismic data 17.Preliminary basic well data 11. Sidewall sample description 10.Notice of suspension 14.Velocity Model in ASCII format 18.8.Well approval 13.Depth structure maps 12.Well checkshot in ASCII format 19.Authority for expenditure 15.

Location Map of Omerelu Field in relation to Rumuekpe etc. . Petrophyiscal Interpretation Available wireline log data.

km of 3D data supplied by Chevron.16 sq.(Paste interpretation by Laz Nwaozor) (Paste log sections of relevant reservoirs) Seismic Interpretation and Structure Maps: (Jide Aworanti) The construction of the structure maps and the seismic interpretation was based on the workstation ready 11. PVT properties and finally oil and gas recovery factors. interpreted and uninterpreted) Comments and Recommendations/Leads (by Jide Aworanti) VOLUMETRICS: Basis and Method of Determination: (Jide & Festus) RR –chapter 4 RESERVOIR ENGINEERING: The main objective of the reservoir engineering analysis is to determine reservoir pressure and temperature. velocity information and the suite of logs from the discovery well. . the check shot survey. Time and Depth structure maps were constructed on the pay reservoirs encountered by Omerelu -1. (Paste Key Seismic Lines. these include: Top of AA4 Oil sand -------------Top of A1 Gas sand----------------Top of A2 Oil sand ---------------Top of A4 Gas sand--------------Top of A7 Oil sand----------------(Paste Maps from Jide and the figure numbers).

In the absence of sufficient field data. Pressure buildup test. analysis is based largely upon analogy from the neighboring fields and fields in the Niger Delta in general and empirical analytical correlations. PVT and SCAL) are available for Omerelu Field. DST.---------- . pressure or temperature surveys. Data availability is limited to only the FIT tests in Omerelu-1. Pressure The only static pressure data available is from Omerelu -1 FTT.No reservoir engineering data. (RFT. Production Test.

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Temperature: .

PVT Analysis .

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RECOVERY FACTOR (RF) Oil Recovery factor for a given reservoir depends on three main factors. Given the number of parameters (and associated uncertainty) that control sweep efficiency. These are primarily: • Drive mechanism • Displacement efficiency and • Areal and vertical ( i. Numerical simulation (not within the scope of Omerelu study) can give meaningful results if reservoir description and characterization are established.e. however. simple techniques have been applied to determine a possible range of recovery factors for Omerelu. in turn. Sweep efficiency. there is no analytical method to estimate sweep efficiency (and therefore recovery factor RF) for a given reservoir. is controlled by a number of factors:  Mobility Ratio  Reservoir permeability and heterogeneity  Net pay thickness  Net to gross ratio  Edge vs bottom water drive  Height of oil column ( particularly in the presence of gascap and  Well spacing. Oil Recovery Factor: . volumetric) sweep efficiency.

PRODUCTION TECHNOLOGY: Well Performance. NUHU) . in active water drive reservoirs. assuming low reservoir pressure decline. gas displacement mechanism is no different to oil recovery mechanism except possible higher trapped gas saturation. well completion (Roland ) *OPERATING/MAINTENANCE PHILOSOPHY ? (EJA.e. In such a case. no active aquifer support) reservoirs depending on field abandonment pressure. gas recovery factor is expected to be identical to oil recovery factor. However.03) gas displacement is a perfect piston drive. The positive aspect is that due to low gas viscosity (water-gas mobility ratio: -0. However. Typical recovery factor is considered between 50% and 70% of the free gas-inplace.Gas Recovery Factor Free gas (primary gas-cap gas) recovery factor can be high (8090%) in depletion drive (i. the abandonment pressure is likely to be close to the initial pressure. For solution gas. the downside is trapped gas saturation and a waterloading problem following water breakthrough.

in this case the Ahia flowstation about 13km northwest of the Omerelu-1 location and evacuated through the Rumuekpe-Egbema trunk line enroute to Bonny terminal. Crude Evacuation Scheme: Several crude evacuation scenarios are being considered. test.three oil and two gas and initial evaluation showed a recoverable reserve of 21. Provisionally. A pipeline tariff will have to be negotiated with Shell at a suitable rate to make this option feasible. . The development philosophy will be to reenter the discovery well and flow-test the reservoirs to determine the optimum production rates. HP and LP separators. the field is planned for the installation of a single train of 15mbpd (gross) gas/liquid separation facility which is expected to last through the life span of the field. However.6 million barrels. A two stage degassing process is planned for the HP and LP separators prior to final stabilization in the surge vessel. The inlet manifolding arrangements will be such that each well can be produced to any selected vessel and a well test can be carried out while producing others.SURFACE FACILITIES/SURFACE ENGINEERING: Surface Separation of Produced Fluids: Omerelu field has only one well drilled and suspended in 1975 with the well suspension cap being the only external equipment on the location. The well encountered five reservoirs. This will determine the kind of surface facilities that will be required to process the fluid produced. The stabilized crude is then pumped via the delivery line into the nearest trunk line. however. The train will consist of inlet manifold. the best option will be to construct a 13km pipeline from Omerelu to Shell’s Ahia platform to join the Rumuekpe/Egbema crude stream to Bonny Terminal. the result of the well test will determine whether a full flowstation will be constructed or an Early Production Facility (EPF) will be preferable. surge vessels and transfer pumps.

Gas Utilization: Omerelu is credited with gas volumes of 85. A1.7bscf of solution gas and 59bscf of free gas-in-place.7 Bscf composed of 26.6bscf of free gas. . It has to be decided whether these gas reserves are enough to warrant the construction of a gas scrubbing unit. A2. sidewall core data and FTT results. However. Artificial Lift: Available data on the crude characteristics of the A2 oil reservoir show that under appropriate aquifer support.4bscf of solution gas and 35. (Roland/Laz) Based on the Omerelu-1 log interpretation. five hydrocarbon bearing sands (AA4. Options on how to handle the gas in the field has to be considered and before the commencement of the field since the Federal Government will not allow any gas to be flared. artificial lift should be incorporated in the detailed design should the need arise in the future. The expected ultimate recoverable is estimated as 13. FIELD DEVELOPMENT PLAN: (EJA) • Subsurface development • Development Strategy • Hydrocarbon recovery plan • OOIP • Reserves • Production Forecast. (Roland) • Evaluation Requirement (Roland) • Hydrocarbon Distribution chart. the wells should be able to sustain natural flow and thus artificial gas lift may not be required.

A4. including at a minimum. caliper. Development Strategy: . we plan to cut conventional cores on these main reservoirs to enable conventional and special core analysis to be conducted. Density-Neutron and Sonic logs should be run on future wells over all the potential reservoirs. In addition. AA4 and A7. Sedimentological and paleocurrent analysis be performed on the cores and/or image logs to help define the depositional environments and predict the geometries of the reservoirs. To reduce uncertainty about the reservoir properties and geometry. Resistivity. This will provide information on the drainage points and how many new wells may be drilled. GR.A2. SP. will be the reinterpretation of the field using the 3D recently acquired seismic data and the generation of depth maps on these pay sands. a full suite of wireline logs. The initial plan will be to reenter the discovery well and test the oil sands. AND A7) have been identified. The significant reservoirs are the A1 ( interpreted as gas bearing with possible downdip oil) and A2 (interpreted as oil bearing with possible updip gas). in tandem with the reentry operations.

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Hydrocarbon Recovery Plan: To determine the volumes of hydrocarbon-in-place and the ultimate recovery volumes in Omerelu Field. selecting each input value at random with a frequency which matches the (triangular) distribution of the property. the probabilistic technique of Monte Carlo modeling was used. The major objective will be to produce the crude oil from the AA4 and A2. the hydrocarbon recovery plan will then be premised on the initial recovery of the oil accumulation in the AA4. A2 and A7 reservoirs. the well completion shall be designed to ensure that the delivery is at a maximum . As such. the best reservoirs (A2 has been ascribed with 85% of the Omerelu oil reserves and 90% of the field oil recovery). The results are summarized below: Omerelu-1 as currently evaluated has 3 Oil reservoirs and 2 gas reservoirs. A computer program called @RISK has been used to repeat the volumetric calculation many times (x1000).

To achieve this.oil rate under the prevailing surface and subsurface engineering conditions. The A2 is produced through the long string and the AA4 produced through the short string. We believe that for Omerelu. . well completions must have the following considerations: • Tubing size optimization • Artificial lift optimization ( where applicable) • Proper stimulation • Perforation optimization.the A1 and the A4 development/utilization and Associated Gas handling will be integrated with the oil development since no flaring will be allowed. The gas sands. the best completion design will be Two strings Dual Zone (TSD). while a dual-completion packer is used to isolate the two intervals from the rest of the well above them. we complete on the AA4 and A2. Sand control will be required since the reservoirs are shallow. A parker is used to isolate the two intervals.

3 PERFORATIONS 3 1/2" HCS WELL: OMERELU-IX Vetco Vetco TBD Size Grade N80 N80 Depth 8500 7.992 10900 8875 9 5/8" Casing at 8924ft TD 8-1/2" @ 10267ft 10267 TD Completion design schematics . 13 3/8" Casing. Blast joint x 40ft x 3-1/2" HCS 9400ft G' NoLocator go Landing seal Nipple assembly.806 ft.5 2.996 4.75 4.813 91 ft.992 3.92 2.3 1/2"CSp x 3-1/2"HCSpxp Hanger Nipple. Shoe @ 3200 ft.813 123 ft.842 ft.85 2.38 1. 3-1/2" HCS 20" Conductor Shoe @ 500 ft.85 2. 3 1/2" HCS. L S L/S Snap latch seal Nipple Baker 9 5/8" A5 Dual Packer S L L AA4 TBD 2. 3 1/2" HCS pxp OTIS -WRSCSSSV. 80-40 Baker FBG_1 Packer 85-40 11510ft A-02 TBD L L No go Landing Nipple Mule shoe Mule shoe Cement retainer 3. 3-1/2"" HCS OTIS -WRSCSSSV.PROPOSED COMPLETION STATUS DIAGRAM (Draw. OD" ID" S L S L 17 1/2" 12 1/4" SANDS DEPTH 17 ft 3 2.25 2. Mid Blast Joint x 20'.992 17 ft 5. DFE: TBD ORDF-CHH: TBD STR. Npl.3 3-1/2 HCS 9.750 TBS after Drilling.5 3200 Surface Xmas 3-1/8x3-1/8 5K 9-5/8" N80 47 8924 TBD String L/S S/S SAND Weight 9.00 2 992 2-3/8" Mule shoe Baker GP Packer 10. 3 1/2" HCS 10. not to scale!) CASING WELL HEAD Size Grade WT/ft Depth Cement Dept CHH 13-5/8 x13-3/8 3K 20" H40 94 500 Surface THS 13-5/8 x11 3 x 5k 13-3/8" K55 54. Otis XA sleeve. 5. Drilled Drilled All 4/6/'80 Jan-12 AA4.A02 DESCRIPTION Hgr.

Because of poor porosity and water saturation correlation. Omerelu Field is estimated (expectation case) to contain 42 MMSTB STOIIP with . ML and MAX) of the property. This method involves: Selection of minimum( MIN). a Monte Carlo modeling was used. hydrocarbon saturation. most likely (ML) and maximum (MAX) input values for all the key volumetric factors: gross rock volume (GRV). selecting each input value at random but with a frequency which matches the triangular distribution (MIN. porosity. The following definitions apply: P90. There is a 90% probability that the actual quantity will equal or exceed the estimate quoted. The software outputs the Probability Distribution of the hydrocarbon-in-place and the potentially recoverable resources. but the concept does not strictly apply when it comes to estimating volume of a given reservoir in isolation. hydrocarbon formation volume factors (Bo and Bg) and recovery factor to estimate recoverable resources. It is well known that field size occurrence follow a log-normal distribution in a given petroleum province or basin. the variables have been treated independently. A computer program. The P90.Original Oil-In-Place (OOIP): In order to deal with the uncertainties involved in assessing the volumes of hydrocarbon in-place in Omerelu. There is a 50% probability that the actual quantity will equal or exceed the estimate quoted. There is a 10% probability that the actual quantity will equal or exceed the estimate quoted.@RISK is then used to repeat the volumetric calculation has been used to repeat a number of times (1000 in this case). P50 and P10 are normally reported. P10. net to gross ratio (NTG). Based on this Probabilistic method. P50.

Health. the employees and shareholders of NDPR as well as those of Joint Venture Partners as important stakeholders. The company’s commitment to these critical aspects of the Oil and Gas industry operation is an integral part of our business. Regulation and industry standards on Safety. Emmanuel Obasi to provide the write up on the company’s current HSE policy: SECURITY MANAGEMENT: . has developed a Community Affairs template which ensured cordial relationship with our host community resulting in six year of relatively problem free operation for the company. SAFETY AND ENVIRONMENT: NDPR is committed to complying with all applicable Federal. Mr. The company is determined to build on this policy and the experience of Ogbele community relations management to craft the host community Memorandum of Understanding with Omerelu Host communities for the mutual benefit of both parties. COMMUNITY DEVELOPMENT PROGRAM: Niger Delta Petroleum Resources limited (NDPR) as Operator of the Ogbele field for over six years. Sheidu to provide the company’s general community relations policy and how this can work in Omerelu: HEALTH. State and Local Government Laws.corresponding solution gas of 27 BSCF. The initial free-gas volume is estimated at 59 BSCF. whose active support is critical to the pioneering efforts and success of NDPR as a company. governments. and Environment (HSE) and insist that all its contractors be similarly bound. The company recognizes the values of the host communities.

.Sheidu and Nikoro to provide write up on this aspect of our operation: RISKS AND UNCERTAINTIES: Omerelu field suffers severely from lack of data to justify a firm commercial development plan: • No temperature survey was carried out in the field • No pressure survey was conducted • None of the reservoirs in Omerelu was sampled for fluid analysis therefore no laboratory PVT properties is available for the field thus:  There are uncertainties about reservoir properties and geometry  There are uncertainties about fluid content. properties and contacts In addition to uncertainties associated with G&G. These are managed at a high financial cost to operators. Security risks have become major issues of concern in operations within the Niger Delta especially on land operations.

15.50% 25.50% 5.10.000 2.25% $90 12% 8% 2% of Variable opex 5% of Net Cashflow Operations 3% 2% 65.000 12.50% 10.000 7.5.CAPITAL INVESTMENT/FUNDING COST: CRUDE OIL ASSUMPTIONS Average crude oil production days per year Overriding Royalty Interest Crude oil (US$/bbl) Fixed opex/ bbl of liquids Variable opex/bbl of liquids Inflated Operating costs Communities' Share of 'Ogbele Farm Out' Cash Flow NDDC levy (projected cost of Work Program) Education tax (2% of assessable profit) PPT of taxable oil profit 325 5.001 .no limit unless 18.75% Graduated royalty payable to Government Daily Production 0 .001 .50% renegotiated Capex for crude oil Tangible (of total capex) Intangible (of total capex) 60% 40% .001 .000 18.25.50% 15.001 .

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000 ) (12.000.000.20 0. 000) (80 0.000.000.000 .000) (9.000 .000) (12.000 .000) (9.000) (9.000.000.000) (4.Crude Capex Tangible CAPEX Flow station Gas Project Site Preparation Civil Works Omerelu 1 Omerelu Well 2 Omerelu Well 3 Omerelu 4 Omerelu 5 Omerelu Wells 6 + 7 Omerelu Well 8 Total Tangible Crude CAPEX Intangible CAPEX Flow station Gas Project Site Preparation Civil Works Seismic Omerelu 1 Omerelu Well 2 0 (18. 000. 000) (14. 000) (12.000) (6.000.000 .000 (27.000.000 .000 ) (18.000) (12.000 .000) (9. 000) 1 2 3 4 5 (18.000) (9. 000) (1.000.000) (9.000 .000) (46. 000) (6.000 .000) (18.000 .000) - (118.000) (9.000 . 000) (21.000 ) (9.000) (6.000.000.00 0) (18.000 .00 0) (9.000 .000 .000) (6.000 .200 .000) (9.200.

00 0) (6.000) (18.000) (209.000 ) (12.000.000.00 0) (45.000 .Omerelu Well 3 Omerelu 4 Omerelu 5 Omerelu Wells 6 + 7 Omerelu Well 8 Total Intangible Crude CAPEX Total CAPEX (a.000.000) (12.00 0) . 000.000.000 ) .800 . + b.) (42. 000) - .000) (90.000) (6.000 .000 ) (15.000) (6.000) (6.000.000.000) (6.000.000.00 0) (30.000 ) (89.00 0) (30.000) (12.000 .000 ) (12.000 .000 .000) (6.800.000.000.000 .

583.590 90 404.616 90 318. 449) (200.00 0) 2016 4 4.00 0) 2017 5 3.52 5 90 1.569.596 (249.905) 3.000) 1.748 ) 173.00 0) 185.7 64 (7.00 0) 12% 8% 2% -3% (89.621.303 15.634.834.375.568.905.00 0) 273.13 7) (683.051.026.99 8) (511.844.520 11.949.699.196 ) 47.2 58 (15.083) (15.020.63 9) (11.508.373.600.158.8 32 (19.000) (89.00 0) 5.020.333 10.28 8) (450.00 0) . 728) (133.000 ) 1.000 48.553.000 260.303.158.020.897 (83.127.4 82 (22.00 0) 270.238 (50.140.846 ) 252.4 24 (5.855 ) 212.230 (118.16 1) (51.42 0) (26.783 90 303.195) (89.000 .482 (195.66 1 (1.170.700) (30.5 71 (157. 000) 325 5.332.46 7) (35.020.561) 1.452. 000) 0 1.007.1 36) (3.895) 17.200.000 257.728.000) 1.350.020.000.000.4 72 (13.488.507 .100.Year Omerelu crude oil production in barrels per year Average crude production per day less CNL royalty taken in kind Net crude production per year Crude oil (US$/bbl) Crude revenue net of CNL royalty Graduated royalty payable to Government Fixed opex Variable opex Inflated Operating Costs Capex for crude oil Loss b/f Net cashflow operations Communities' Share of 'Omerelu Farm Out' Cash Flow NDDC levy 3% projected cost of Work Program Abandonment Provision Income before education tax Education tax (2% of assessable profit) Assessable oil profit (a) Capital and investment tax allowances -5% 3% 2012 0 2013 1 1.731.300.94 6) (537.317.689.563.726.459.25 % 4.743.003.20 5) (34.773.494.656.549.061.632.490.838) 4.000.1 84 (7.433.97 8) (712.000.189.827.41 9 11.866.041) 4.704.205.7 97) 940.229 (259.6 05 (11.000 958.933 (186.75 9) (229.00 0) 51.600.427 (974.30 0) (900.46 7) (38.583.000.673.008.08 6) (40.231.694.3 96 (23.631.19 7 (82.00 0) (45.072 90 135.339) 0 226.927 .594.1 02 (28.17 0) (17.56 4) (53.591.656.00 0) 2015 3 4.194.0 83 (20.128.5 21 (10.152 ) 254.53 6) 0 1.633 2014 2 3.097 ) (1.550) 3.75 8 (2.00 0) TOTAL 18.535.619.361.540.154.99 6) (209.464 90 422. 819) (2.513.000 176.000.000 216.7 74 (31.000) 1.915 ) (900.0 64 (13.350.3 38 (9.99 8) (25.680) (30.689.647.630 14.2 00 (19.366.010.0 69 (6.000.0 57 (30.

798.6 12 0 (1.9 17) 80.52 0) 155.576.988.2 00 (153.648.45 9 0 (273.00 0) (89.25 4 0 (196.415.2 79 234.576.00 0) 65.425.664.814) (34.018.788.000.00 0) (34.6 17) (123.984.617.75% of taxable oil profit (b) After-tax cash flow Bank loan flare penalty (non-PPT deductible) net after-tax.0 05) 53.0 83 (154.7 42) 79.618.573.8 03) 0 (87.876.956.4 10) NPV 14% 232.189.Taxable oil PPT 65.5 71 (537.20 8 (69.025.000.674.75 % (89.39 4 9.2 58 (103.984 $50.000.0 93 783. 959) 156.43 2 192.127. after-investment cash flow Intangible capex b/f cumulative cash flow (89. 617) 157.877) 65.44 8 89.53 8 0 (205.664.718) 80.8 32 (126.80 3) 0 (34.065) 79.287.2 95) 65.024.66 1 155.634.525.425.750.449.0 93 .568.16 6 0 (261.046) 53.165.

Obazu Ilesanmi and Ghene to provide Project cost estimates and Cash Flows: ATTACHMENT/ENCLOSURES: .