Annual Report 2010 - Ophir Energy

16
Ophir energy plc | 2010 ANNUAL REPORT
BUsiness review | OPERATiONs REviEw
Mbeli, ntsina, Manga and gnondo
Blocks, gabon
Overview
The Mbeli Marin, Ntsina Marin, Manga Marin and
Gnondo Marin blocks are situated west and north of the
petroliferous Ogooué Delta complex. The Ogooué Delta
complex is a proven hydrocarbon province, where over
2,000MMbbl of oil and 900Bcf of gas have been discovered
since the 1960s.
LEGEND
Ophir Well
Existing Oil Discovery
Existing Gas Discovery
Existing Oil &
Gas Discovery
Existing Oil, Gas &
Condendate Discovery
Interests
Mbeli Marin
Ntsina Marin
Manga Marin
Ngollon-1
Gnondo Marin
Frake Noir-1
Post Gentil
Figure 6 - Mbeli, Ntsina, Manga, Gnondo Blocks - Gabon
The Group was awarded a 100% interest in the
four deepwater blocks on 16 March 2005. Upon the
commencement of production from a field within each of
the blocks, the Government of Gabon will automatically
receive a 10% participating interest in three of the blocks
(Gnondo, Ntsina and Mbeli) and a 15% participating interest
in relation to the Manga block. The Group is in advanced
farm out negotiations with respect to the Mbeli and
Ntsina blocks.
Exploration and appraisal
Gabon
The Group has carried out an extensive review of the
regional petroleum geology. Significant progress was made
in understanding the source and migration risks, reservoir
distribution and trapping mechanisms and a variety of
prospect types were identified across all four blocks.
The second exploration period for Ntsina and Manga
commenced on 14 September 2007 and the Group drilled
two independent play types in late 2008 using the Deep
Venture drillship. Frake Noir-1 was drilled in Ntsina and
Ngollon-1 in Manga and fulfilled the PSC work obligations
for the two permits. Although these wells did not intersect
live hydrocarbon columns they significantly improved the
Group’s understanding of the petroleum system within
the blocks.
Whilst the drilling campaign was being carried out,
extensions to the first term were granted for Mbeli and
Gnondo and the exploration period for Gnondo and Mbeli
commenced on 14 September 2009.
Following assessment of the drilling results, together with
continued regional play system analysis, the Group has
switched the focus of exploration efforts to the pre-salt
sedimentary section. In 2009, the Group carried out a
300km 2D seismic survey to test the imaging ability of deep
tow, dual receiver long cables. The objective was to test this
new acquisition method to image the sub-salt stratigraphy.
The outcome was encouraging and as a result, the Group
proposes to acquire a 3D seismic survey specifically tuned
to image the pre-salt sedimentary section.
To complement the new seismic data, the Group acquired
a 2,000km 2 marine gravity gradiometry survey over Mbeli
and Ntsina early in 2010. Gradiometry is a three-component
gravity acquisition method which provides a significant
improvement in data fidelity over standard gravity methods.
The Gabon survey produced excellent results and has
provided valuable information on the structure and
thickness of the pre-salt sedimentary section.
The Group made application to the Gabonese authorities
to amend the Mbeli and Ntsina PSCs, to extend the second
exploration period in respect of those blocks for three years
from the signature date of the amendments and modifying
the work programme in both the second and third
exploration periods to facilitate exploration of the pre-salt
play offshore Gabon. The Group has received verbal
approval of the extension request and awaits formal
written confirmation.
A total of US$6.8 million was written off the carrying value
of capitalised exploration relating to Gabon PSCs for reasons
of impairment. (Refer notes 9(ii) (a) and 9(ii) (c).)
Forward plan
Following completion of the proposed farm out agreement
the Group intends to acquire a minimum of 2,000km 2 of 3D
seismic data over the Mbeli and Ntsina blocks specifically
designed to image the pre-salt sedimentary section. This
data will be used to further define the structural leads
already mapped beneath the salt and to determine the
optimal location to drill exploration wells. The Company
plans to invite expressions of interest from suitably qualified
companies to farm in to the Gnondo and Manga blocks to
pursue the various prospects and leads already mapped
within these blocks.