You are on page 1of 20


Date: Friday, June 15, 2012

Tanzania can add another natural gas discovery to its totals for the year as Statoil and
ExxonMobil record a hit with drilling on Block 2. The partners made a large discovery with
the drilling of the Lavani well. During drilling the Lavani well encountered 95 meters of
excellent quality reservoir sandstone with high porosity and high permeability.

Based on logging results the well confirmed a new high-impact discovery for Statoil and
ExxonMobil with a preliminary resource estimate of 3 Tcf of gas in place.

“The result from Lavani, which is only 16 km south of our recent Zafarani discovery,
confirms the high potential in Block 2. We are also pleased to announce that the recently
drilled Zafarani sidetrack added another 1 Tcf of gas in place. This is in addition to the up to
5 Tcf announced in February. The results so far mark an important step towards a possible
natural gas development in Tanzania,' says executive VP of Exploration for Statoil, Tim

“The Lavani discovery demonstrates how Statoil’s strategy of focusing on high-impact
opportunities is paying off and supports the company’s ambition for international growth,”
Dodson adds.

1|P a g e

The Lavani well, drilled in 2,400-meters water depth, is the second exploration well in Block
2 – which covers an area of approximately 5,500 sq km. The well was drilled by Ocean Rig
Poseidon with operations still ongoing.

Statoil operates Block 2 on behalf of TPDC and has a 65% working interest, with
ExxonMobil Exploration and Production Tanzania holding the remaining 35%.

 Pweza-1 and Chewa-1 gas discoveries Block 4

 Chaza-1 gas discovery in Block 1

2|P a g e

LAND DISCOVERIES HIGH-GRADE EAST AFRICAN MARGIN EAST AFRICA EMERGES AS A WORLD-CLASS PLAY. 3|P a g e . the region has been transformed in little more than a year from a wildcat deepwater province to a world-class exploration hotspot with major multi-Tcf gas field development plans already in the pipeline. DEEPWATER. For at least two decades. where established shallow and deepwater reserves have played a part in the investment planning of supermajors and independents. In the case of East Africa. any discussion of African upstream potential nearly always took a turn toward the west coast. Sometimes a new frontier emerges with astonishing speed to become an apparent “overnight” sensation. By Alan Petzet 04/02/2012 World-class deepwater natural gas discoveries offshore in the Indian Ocean have turned the East African margin into one of the planet's hottest exploration theaters.

from south to north.Early exploratory wells have uncovered gross gas volumes approaching 100 tcf in place when the operators' high estimates are combined. and Kenya (Fig. the Rovuma. The expanse of the deepwater play takes in. Drilling density is sparse in the southern part of the trend and extremely light in the north. the Mozambique Channel between Mozambique and Madagascar is also receiving closer scrutiny. Exploration is also scarce in the onshore parts of the basins. 4|P a g e . Farther south. 1). and Lamu basins. Mafia Deep. Tanzania. The industry holds licenses in force along a front of more than 800 miles offshore northern Mozambique.

Patterson said Anadarko looks to make a final investment decision on the first two LNG trains in late 2013 and to begin gas sales in 2018. would be looking for the pressure pulses that indicate communication between wells. Patterson recalls that the Windjammer and Barquentine discoveries had Paleocene pay but noted that Anadarko has not yet talked about their resource size. from its wells by the time it ran the first flow test a few weeks ago.ANADARKO'S EXPLORATION PROGRAM Anadarko describes its multiple 2010 and 2011 discoveries as extending over tens of miles and made to order to support LNG projects (see LNG article. which extends into Eni-operated Offshore Area 4 seaward of Offshore Area 1. Anadarko vice-president exploration. In 2012." Patterson said. to be unitized. It will also drill Orca. 5|P a g e . The gaseous northern part of the 2. Anadarko has 3D seismic coverage of the block's entire deepwater expanse and had collected 2. Anadarko has already begun a dialog with Eni. Meanwhile. said Don MacLiver. The company said the second rig. as the company calls its sprawling initial discovery by combining parts of the names of two of the initial discovery wells. the Anadarko group's advantage is that Offshore Area 1 is updip and appears to contain the larger share of the resource. Meanwhile. have found gas at this writing in mid-March only in Eocene and Oligocene rocks. where Patterson noted Anadarko has had shows of liquids. p. Anadarko vice- president of operations. the southern part of the block "could be the development area for a new hub. EARLY WORK AND UNITIZATION Anadarko and its partners expect the large field. brought in to conduct well tests while the first rig continues drilling. a deeper Paleocene prospect.516 ft of whole core. The company's "10 incredible wells." as one official described them. "We look for unitization to deliver efficiency. the company in 2012 will drill an appraisal to its Tubarao discovery. which Patterson said may be connected to the big field. is "massive and growing. Working its way south. Anadarko will drill the Golfinho and Atum structures. however. he added. It also has the Barracuda and Black Pearl prospects ready. Even with the gentle dip of the reservoir." MacLiver said. 122). leaving the younger Miocene and older Paleocene portions of Tertiary as targets to be pursued. Barquenjammer field.6 million acre Offshore Area 1 is vast in areal extent with high-quality continuous sands and a very low dip rate. 95% sand. said Frank Patterson.

The nearest discovery lies only about 30 miles off the coast."Quite frankly.. noted that this could become one of the world's largest LNG projects. Each 5 million tpy LNG train is expected to consume 750 MMcfd or a total of 10-12 tcf of gas over the life of the project. Cove Energy PLC. BARQUENTINE FLOW TESTS The Anadarko group's second rig off Mozambique was moving in mid-March to conduct a second flow and interference test at the Barquentine-1 well (Fig. MacLiver said." he said in mid-March. which holds exploration and production interests in Mozambique and Kenya and is selling an interest in Mnazi Bay field in Tanzania to Wentworth Resources Ltd. Dar es Salaam. 2). we don't know where this thing is going…it could be much bigger. 6|P a g e .

7|P a g e .

"The test also proves the reservoir has very high permeability. BPRL Ventures Mozambique BV. 12. Zafarani-1. at Barquentine-2. 2012). meeting the quality specifications for the partnership's LNG development plans.From there it will continue to the Lagosta and Camarao wells south of Barquentine. as we focus on achieving FID (final investment decision) around the end of 2013.500 sq km Block 2 in the Mafia Deep subbasin.. On the first such test.. Videocon Mozambique Rovuma 1 Ltd. Statoil said the well had "encountered indications of natural gas in a good quality reservoir.. "Using preset gauges in an offset well.150 m in 2. Anadarko senior vice-president. said. Mar. TANZANIA DEEP WATER Statoil and ExxonMobil continued to deepen a deepwater wildcat offshore Tanzania in mid- March after reporting gas shows. is projected to 5. we were able to confirm connectivity and reservoir continuity over a distance of more than 3 km." Anadarko's partners in Offshore Area 1 are Mitsui E&P Mozambique Area 1 Ltd. Anadarko said these "exceptional flow characteristics confirmed the deliverability of this reservoir and indicated a low density of development wells may be sufficient to produce the reservoir." 8|P a g e . Cove Energy Mozambique Rovuma Offshore Ltd.400 ft of water as the well flowed at an equipment-constrained rate of 90- 100 MMcfd of gas with minimal pressure drawdown (OGJ Online. the Deepwater Millennium drillship (cover of this issue) worked in 5. worldwide exploration. Without giving a depth.582 m of water." Bob Daniels. which is an important component in the reserve certification process. This is a very encouraging way to start our testing program. first well on 5. and Mozambique's state Empresa Nacional de Hidrocarbonetos EP.

The companies shot 3. has 35%. which retains 10% interest in the permits. with contingent resources of 1. Statoil was awarded the Block 2 license in 2007. including one on Block L8 offshore. and L12 blocks from Anadarko Kenya Co. drilled in 2010. L11b. Petrobras and Shell hold Block 5 off Dar es Salaam.500 sq km in 100-3. North of Block 4. and numerous blocks are under license even farther north in the Lamu basin off Kenya.The two majors spudded the well in early January 2012 about 80 km off Tanzania and 160 km north-northwest of the Offshore Area 1 and 4 blocks off Mozambique.000 m of water. and ExxonMobil Exploration & Production Tanzania Ltd. Tanzania. Tullow Oil PLC plans late 2012 drilling on three prospects in Kenya. which has no hydrocarbon production. 3. Last fall. The company said the Ophir-BG discoveries to date have chased stratigraphic plays with a strong structural influence but that the Anadarko-type basin floor fan purely stratigraphic play. which remains operator. That included a 20% stake in the L5. 2011). Apr. Ophir said Tertiary-age river deltas along the coast have acted as provenance for high-quality slope channel and slope/basin-floor-fan (reservoir) sands. L11a. Statoil operates Block 2 on behalf of Tanzania Petroleum Development Corp. 2011). including the near absence of drilling in deep water. a Total SA unit acquired a combined 40% interest in five exploratory blocks in the Lamu basin off Kenya (OGJ Online. with 92 bcf. and has a 65% working interest. in the Rovuma basin. is untested in Tanzania with 3D seismic yet to be acquired. Zafarani is 115-120 km south of Ophir-BG's Chewa and Pweza gas discoveries on Tanzania offshore Block 4 in the Mafia Deep subbasin and 75 km east-northeast of Songo Songo gas field (OGJ Online. leaves untold potential there.. Ophir-BG have tagged Pweza and Chewa. Sept. respectively.7 tcf and 611 bcf. Ophir-BG plan to drill as many as five exploratory wells on Blocks 1. mapped as extending into Block 1. 21. drilled in 2011. L7. The Zafarani well is also 100 km north of the Ophir Energy PLC-BG Group's Chaza gas discovery on Block 1 about 18 km off Mnazi Bay. and 4 in 2012 and have said those blocks and the shoreward East Pande block contain numerous untested leads and prospects with stacking potential. 9|P a g e . and Chaza. NORTH ALONG TREND The scarcity of exploratory drilling north of Mozambique in Tanzania and Kenya.500 sq km of 3D seismic on the permits. Total acquired a 15% interest in the same blocks held by Dynamic Global Advisors and a 5% interest from Cove Energy PLC. 4. which cover more than 30.

Wentworth Resources said the Ziwani-1 exploratory well is being drilled 13 km west of the two gas fields. The Orpheus prospect is on its drilling schedule for 2012. and Jurassic potential. two of which discovered the coastal Songo Songo and Mnazi Bay gas fields. Tanga is directly south of and adjoins Kenyan blocks L17 and L18 in which Afren holds full interest. and the MB-1 well is producing 1. More drilling is expected this year. however. Anadarko sees material potential in the deep water off Kenya. All four wells drilled to date encountered hydrocarbons. Cretaceous. It was deepening the well to another target at this writing.Afren PLC has a 74% interest in the Tanga block mainly offshore northeast Tanzania in coastal to shallow water.7-2. Aminex PLC and Solo Oil PLC appear to have extended the Rovuma deepwater play by drilling gas pay in Cretaceous sandstone with the basin's first onshore discovery at Ntorya-1 in southeastern Tanzania. The 756 sq km Mnazi Bay concession in coastal southeastern Tanzania in the Rovuma basin contains Mnazi Bay and Msimbati gas fields and has Tertiary. More than 36 wells have been drilled in Kenya since the 1960s 10 | P a g e . Anadarko notes that more than 50 wells have been drilled in and off Tanzania since the 1950s. wildcats turned up two gas discoveries on offshore Block 4 in 2010 and one gas discovery on offshore Block 1 in April 2011. which is undrilled although drilling is expected to start soon. More recently.0 MMscfd of gas to the Mtwara power plant for local power generation.

Origin Energy (25%). The Mbawa Prospect has world-class potential for oil and gas. extending to the north into area L6.Lamu Basin . There is an interpreted extensive deep oil and gas generating "kitchen" near the Mbawa Prospect.9 sq km offshore Kenya in the Lamu Basin in water depths from 100m to 1.Offshore Kenya Block L8 (15%) Joint Venture partners: Apache Corporation (50% and Operator). other prospects in L8 also have high volumetric potential and are also associated with interpreted slicks. Tullow is earning a 10% interest in the L8 Production Sharing Contract form Pancontinental by paying US$ 1 million to Pancontinental for reimbursement of past costs and also by funding the future work programme on its own behalf and up to an agreed expenditure "cap" of US$ 9 million attributable to Pancontinental's retained 15% interest. In 2005 Origin farmed-in to Pancontinental's interest and funded a 2D seismic program to earn 50% and subsequently funded a 3D seismic survey to earn a further 25%. from which Tullow will then have an option to earn a further 5% by funding Pancontinental's share of any second well to a "cap" of US$ 6 million. a large US major.114. In March 2011 Pancontinental farmed out to Tullow Oil plc.300m immediately south of Pancontinental's L6 Block. Sea surface "slicks" interpreted from satellite data support the concept of oil generation. A number of new oil and gas discoveries have been made offshore elsewhere in East Africa. one of Europe's most recently successful African explorers. with volumetric potential easily exceeding one billion barrels of oil. in geological circumstances that are contiguous to those in L8. "Flat spots" or "DHI's" can be seen over the Prospect. As well as Mbawa. expulsion and migration from the kitchen area and Mbawa itself. farmed into Origin's interest in February 2011. 11 | P a g e . Tullow Oil plc (15%) L8 covers 5. Pancontinental will initially retain a 15% interest in L8. and remains very large at a number of prospective levels. Apache Corporation. Pancontinental's interpretation is consistent with a gas column of about 100m overlying an oil column of approximately 150m but these can only be validated by further seismic analysis and drilling. The 3D seismic data set acquired in 2009 has verified that the giant Mbawa structure is intact.

including the timing of rig availability.Based on current budgets. the initial expenditures by Tullow will see Pancontinental "free carried" through a substantial part of the Mbawa drilling. Initial planning has been undertaken for Mbawa drilling. Pancontinental estimates a mid- 2012 spud date for drilling. 12 | P a g e . operated by Apache. but the actual date will be known when a number of factors have been clarified.

if filled to spill point and subject to risks that include trap integrity and the fact that the offshore Lamu Basin petroleum system is unproven. based on volumetric estimates indicating that. Water depth over Mbawa is about 800 metres. Pancontinental estimates Mbawa has in- place and unrisked potential to contain at the Tertiary. easily within the range of modern drilling and production equipment. Nanaa Central would provide an additional commercial opportunity after any Mbawa discovery. The interpreted extensive deep oil and gas generating “kitchen” near the Mbawa Prospect extends to the north into area L6 and south into L10A and L10B. After Mbawa. While there can be no direct evidence that the Mbawa Prospect contains any oil or gas until drilling has taken place. other prospects in L8 also have high volumetric potential and are also associated with interpreted slicks. Pancontinental estimates that Mbawa has in-place and unrisked potential to contain at the deeper Top Jurassic level – 13 | P a g e . As well as Mbawa. offshore Kenya.Cretaceous level – • up to 4.9 Billion Barrels of oil (P10) plus • a gas cap of 284 Billion Cubic Feet (P10) Further. coincides with interpreted natural oil slicks derived from sea floor “pockmarks” associated with faulting on the flank of the structure.Mbawa prospect. the next largest prospect is Nanaa Central with approximately 40% of Mbawa’s volumetric potential.

• up to 323 Million Barrels oil (P10) or • 525 Billion Cubic Feet gas (P10) but these are subject to risks that include the fact that there is limited data for reservoir parameters on the East African margin. 14 | P a g e . there is no control on interpretation of Jurassic carbonates and the lack of a commercial discovery of hydrocarbons in Jurassic carbonates on the East African margin.

world scale. has so far achieved a near perfect success rate.2M). FAR Ltd commences data acquisition of their anticipated 3D seismic survey over some of the world’s most keenly sought petroleum exploration acreage off the coast of Kenya. FAR Ltd’s L6 permit off the Kenya coast lies in the Lamu Basin. The survey will cover 680km2 and is budgeted to cost $13. “Drilling in the Rovuma Basin off the coast of Mozambique and Tanzania.” 15 | P a g e . Cath Norman said. FAR Ltd managing director. natural gas discoveries totalling around 100 trillion cubic feet off the coasts of Mozambique and Tanzania. north of recent.FAR COMMENCES 3D SEISMIC SURVEY OFFSHORE KENYA STARTUP OF KIFARU 3D SEISMIC SURVEY IN BLOCK L6 Australian listed petroleum exploration company.” “Much of that success has stemmed from the use of modern. 3D seismic data which is able to provide quality images of potential structures deep beneath the surface. high quality. The seismic survey is scheduled to commence acquisition this Friday (15 June) and to be completed in early July.67M (FAR Ltd share $8.

Sproule's report confirmed the exploration potential of Block 2A and supported existing plans to further delineate these leads as proposed with additional passive micro-seismic. Sproul utilized 500 km of existing 2D seismic and five horizons have been carried in the interpretation. has completed a technical report in respect of Simba Energy Inc. L11B) and BG is preparing to drill its first well offshore Kenya at the end of 2012 (Blocks L10A and L10B). 2D or 3D seismic. offshore Kenya. L7. and gravity gradiometer surveys. FAR will be drilling their first well in mid 2013 on Block L6.1 million barrels of oil equivalent (MMboe). The block is comprised of 7. FAR operates the block with 60% equity and has a 30% interest in the L9 block. L11A. Simba's president and chief executive officer. mean prospective resources was 26.927. recently drilled by Tullow Oil and Africa Oil. the gross. risked. prospective resources was 445.’s 100% interest in the production sharing contract for onshore Block 2A. L12. undiscovered petroleum initially in-place was 1. and the gross. As a next step.” The L6 permit is in the Lamu Basin. SIMBA ENERGY SEES HIGH POTENTIAL IN KENYA BLOCK 2A Sproule Associates Ltd. active and funded exploration program now in place for Block 2A. remarked. For this initial assessment. Anadarko Petroleum Corporation has announced plans to drill the first of its wells before year end (Blocks L5.3 MMboe. “This block lies within the junction of two trends that are geologically similar to the successful Ngamia-1 well. Kenya. Robert Dinning. we see our passive seismic program as offering a very strong compliment to the existing seismic we have for these leads. and identified three prospective leads at four representative seismic horizons. The total gross. The next well to be drilled in the basin will be the Mbawa prospect in Block L8 by Apache Corporation in August this year.” 16 | P a g e .“FAR has mapped a total of seven prospects in the L6 permit which we aim to better define using the 3D seismic and greatly enhance our chance of success in ahead of drilling next year.9 MMboe. unrisked.802 sq km within the Madera-Lugh Basin. unrisked. We have an exciting. As its main conclusion.

First Three Leads (Source: Sproule and Associates Ltd.3 26.4 1.2 117.Table: Initial Resource Assessment of Block 2A .5 3. on a given date.1 445. (Mean) MMboe (Mean) MMboe MMboe 1 Ken 5 507.2 10. to be contained in accumulations yet 17 | P a g e .9 *Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated.) Lead Zones Gross Unrisked Gross Unrisked Gross Risked *Undiscovered **Prospective Mean Prospective Petroleum Initially Resources (Mean) Resources In-Place.8 Syn-Rift 2 128.7 29.5 Syn-Rift 2 413.927.9 5.5 3 Ken 5 272.4 75.8 Syn-Rift 1 326.9 41.5 95.2 Syn-Rift 1 98.3 22.8 1.7 Total 1.7 0.5 2 Ken 5 180.1 62.8 3.

 An additional 1.L. as of a given date." 18 | P a g e . of Italy is conducting an Infrasonic Passive Differential Spectroscopy (IPDS) seismic survey covering 4. Robert Dinning. The recoverable portion of undiscovered petroleum initially in place is referred to as “prospective resources. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity.  GeoDynamics S. 2D or 3D seismic. While it is encouraging to have Sproule’s assessment for exploration potential for this area of interest within Block 2A.  Design a drilling program to evaluate top leads derived from the above seismic programs. "we are delighted to provide our shareholders with this independent opinion from Sproule.R. Prospective resources have both an associated chance of discovery and a chance of development. recently drilled by Tullow Oil and Africa Oil. we now also believe it is relevant to note how this same area lies within the junction of two (basin) trends as being geologically similar to the successful Ngamia-1 well. As its main conclusion. The Company's exploration plans for Block 2A include:  Continued data gathering and review of technical reports.000 sq. Sproule’s report confirms the exploration potential of Block 2A and supports existing plans to further delineate these leads as proposed with additional passive micro-seismic. that is also located at the junction of two trends. gravity and magnetometer as well as carry out block-wide field geological and geochemical studies.  Areas of potential identified by the passive micro-seismic survey will be further evaluated by conventional 3D or 2D seismic and/or gravity gradiometer prior to selecting a drill site. As a next step we see our passive seismic program as offering a very strong compliment to the existing seismic we have for these leads. satellite imagery. and interpretation of existing 2D with 250 measurement points on a variable spacing.” the remainder as “unrecoverable. We definitely have an be discovered. and gravity gradiometer surveys. Simba’s President & CEO remarks. It reaffirms our technical team’s initial premise to target Block 2A during the application process as it was highly prospective with great potential for significant accumulations.” **Prospective Resources are those quantities of petroleum estimated. to be potentially recoverable from undiscovered accumulations by application of future development projects. active and funded exploration program now in place for Block 2A and will look forward to the work of proving up our resources in the license. including a very strong lead.000 km of 2D seismic .

In 2011. Vanoil contracted Sproule International Ltd. Vanoil acquired 850 line km prospect grade seismic data in 2010 and 2011 at a cost of US$8. seismic data shot in 1975 by Chevron that has proved to be of immense value after reprocessing for structural analysis but lacking the offset range for amplitude analysis.5 million that has adequate offsets for the purpose of mining geological data from seismic amplitudes.000 km. and Geoseis Inc. legacy 2. both of Calgary. to interpret approximately 2. This data included. has provided an update on the first-quarter 2012 program. 19 | P a g e .VANOIL PROVIDES UPDATE ON BLOCKS 3A AND 3B Vanoil Energy Ltd..850 km of seismic data.

20 | P a g e . It composed of a string of 6 leads which start from the depo center of South Anza basin up along a rollover structures and ending on a Horst block of a Karoo Graben. It was initially targeted for shooting in the last quarter of 2011 but heavy rains and adverse HSSE issues led to its postponement. This has led to delineation of an area of approximately 1. The complete seismic data has been further subjected to advanced reservoir characterisation techniques (Chimney analysis by dGB / Petro-explorers highly successful in North Sea.The data has been relative amplitude and Amplitude Versus Offset (AVO) processed by Statcom Ltd.5 million) on one or two of the 15 leads. Gulf of Mexico and on shore basins in South America) ranking the 27 leads by their fault sealing and hydrocarbon charge attributes. Structural leads identified by Sproule and Geoseis are observed to be coincident with some of the AVO anomalies. The 2D and 3D seismic data to be acquired in the second and third quarter of 2012 will lead to more advanced reservoir characterization techniques being applied for the purpose of choosing an optimum drilling site. Stratigraphic sequence analysis of seismic data and correlation near the Bahati and Endela wells. The area is analogues to Melut basin in Sudan and is characterised by 15 leads that are grouped into Eastern.700 square km on the South and South-West flanks of the South Anza basin. which 15 km away from East focus leads and 20 km for the Western focus leads respectively clearly correlates the likely source and possible reservoir facies. In order to properly place the over 75 square km 3D seismic survey (cost $3. of Calgary. Southern and Western lead areas. The Eastern lead area bears strong characteristics to the Adar Yale oil field in Sudan.000 has been designed and shot in Block 3B along a string of 6 leads identified approximately 15km from the Bahati well. This is fundamentally different interpretative approach (AAPG approved) from past practices due to advent of seismic sequence and facies analysis techniques in the 80's. a 78 km 2D seismic survey at a cost of $800. The structural considerations alone has been the criteria of choosing drilling sites in past failed exploration programs. This correlation has de-risked and ranked the Sproule identified 27 leads.