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Canadian firm strikes another oil at Ngamia-1

04 July 2013, 18:09

Nairobi - Canadian oil and gas firm Africa Oil said Wednesday it has successful completed testing programme at the Ngamia-1 oil discovery on Block 10BB in northwest Kenya as it also announced the discovery of oil in another well.

The firm said in a statement that the cumulative flow rate from six Drill Stem Tests (DST's) was over 3,200 barrels of oil per day (bopd) constrained by completion techniques and surface equipment.

"We are very pleased with the results of the Ngamia-1 testing program which has confirmed the productivity of both the Lower Lokhone reservoir and the high quality Auwerwer reservoir and significantly increased the net pay in the well," Africa Oil CEO Keith Hill said.

Hill said that Ngamia is a world-class oil discovery and these results move them towards achieving the threshold for a commercial development in the Lokichar basin.

"This encouragement has caused us to set in motion appraisal of the Ngamia-Twiga trend and to assemble a technical team to commence early development planning both for a large scale pipeline development and an early development scheme," Hill added.

The firm has also notched up another oil discovery onshore Kenya with its Etuko-1 well in the Lokichar Basin in Block 10BB, located on a tilted fault block target on the Basin Flank Play on eastern side of the basin.

"Based on logs and oil recovered by MDT sampling, net pay of 40 meters has been confirmed in the Auwerwer and Upper Lokhone targets which demonstrate good reservoir properties and oil quality," it said.

"Within the Upper Lokhone sequence the well encountered a thick section of lacustrine source rocks with interbedded oil-bearing sandstones. The well is currently drilling in the Lower Lokhone sands and results from this lower section are expected by the end of July."

Hill said the Etuko discovery also opens up a new fairway on the eastern flank play in Lokichar where a number of other large scale prospects have been identified.

Kenyans have remained optimistic about possible oil finds following the ongoing exploration by oil and gas companies which are also engaged in activities around the Mandera region in northern Kenya.

Exploration experts say the semi-arid regions of northern and north-eastern Kenya, have the curvy rocks, formed millions of years back, when the region was an ocean.

The Ngamia-1 well is located in Block 10BB in Kenya and the Africa Oil has a 50 percent working interest in the block along with British firm, Tullow which holds the remaining 50 percent interest and operatorship.

Kenya and the entire East African region, has witnessed intensified exploratory activity since 2003, which led to the discoveries of oil and gas in Uganda and Tanzania. There is also ongoing exploration in Ethiopia.

Africa Oil said it is in final negotiations to secure a drilling rig for its upcoming Bahasi-1 exploration well in Block 9 in Kenya, a well it said will test a large anticlinal feature in the Cretaceous rift trend which has recently been confirmed to contain hydrocarbons at the Paipai well in Block 10A.

In addition to proving the good quality reservoir, as a result of testing several previously indeterminate zones in the well, the joint venture has been able to double the firm net oil pay estimate in the Ngamia well to over 200 meters over a gross oil column of over 1,100 meters and has increased the net pay at Twiga to over 75 meters.

The operator, Tullow Oil, has reported that they believe the Ngamia and Twiga fields contain over 250 million barrels of recoverable oil.

"Appraisal work, including the acquisition of 3D seismic and the drilling of appraisal wells on both discoveries, will be undertaken over the next year to confirm these estimates," Africa Oil said.

It said a mid-year revision to the company's third party resource report is ongoing and is expected to be issued in the third quarter and will take into account these improved reservoir thickness and quality parameters.

"With optimized completion techniques and surface equipment it is estimated that these combined flow rates would increase to a rate of 5400 bopd," Africa Oil said.

It said five of the DSTs were completed over the Auwerwer sandstones to verify reservoir quality and fluid content which appear to be of similar quality to those tested at the Twiga South- 1 well in the same basin.

High quality waxy sweet crude (25-35 degrees API) was flowed from all five zones in the Auwerwer formation with good quality reservoir sands encountered, it said.

"All zones produced dry oil with no water produced and no pressure depletion. One DST was completed on the Lower Lokhone with successful results as previously announced on April 15," the statement said.

The firm said Weatherford 804 rig used to test this well is currently being mobilized 13 kilometers north to the Ekales location, a prospect similar to and located between the Twiga and Ngamia discoveries, which is expected to spud in late July.

- Xinhua

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