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The Ministry of Mines and Energy recently appointed EnerGulf Resources as interim operator for the oil and gas potential block 1711 situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola.
The Canadian-based company is a public trading international oil and gas exploration company whose focus is on maximising shareholder value by targeting high impact opportunities for acquisition and development in the world’s most prospective hydrocarbon regions.
Two separate exploration prospects, the Kunene and Hartmann have been identified by extensive modern seismic data on the 893.100 hectare (2.2 million acre) block.
As interim operator, EnerGulf Resources will continue and complete the full and thorough analysis of the Kunene #1 drilling and testing.
The result of geological information will be used to further evaluate the current and additional prospects as well as identify future drilling locations and consider potential re-entry of the Kunene #1.
EnerGulf’s wholly owned subsidiary, EnerGulf Namibia Ltd, was formally assigned a 10% working interest in offshore Namibia Block 1711 on 31 March 2006. Under the terms of the Petroleum Agreement, the company was granted a 10% working interest, paying 10% of the exploration and development costs, being a 9.5% net revenue interest after the underlying royalty to the government of Namibia.
According to the petroleum commissioner in the Ministry of Mines and Energy, Immanuel Mulunga, the government, Energulf Resources, PetroSA, Namcor and Kunene Energy were concerned about the slow pace of Nakor Investments to progress with the work programme on block 1711.
Mulunga explained that the companies named above were especially concerned with the fact that time is running out on the two year renewal period and the paying parties especially Energulf were concerned with securing their tenure in the license by wanting to progress the work programme and not lose the license in 2012 due to the inaction of Nakor Investments.“That is why Energulf approached the ministry to be appointed as interim operator while Nakor Investments sorts out its future aspirations in the block.
“The license was renewed for a further period of two years from 31 March 2010 to 31 March 2012 with specific work that needs to be carried out in this two year period.
“The co-venturers agreed earlier this year on a work programme starting with the analysis of the core samples from the previous well that was drilled in 2008.
“Although there has been a delay to commence with this work by the previous operator, Nakor Investments, this additional work would be carried out under the leadership of Energulf Resources as the new interim operator,” Mulunga said.
He revealed that Nakor Investments currently holds a 70% interest in the block which was transferred from Sintezneftegas Namibia. Energulf Resources owns 10% paying interest. South African national oil company, PetroSa, owns a 10% paying interest. NAMCOR, the Namibian national oil company has a 7% carried interest in the block. Kunene Energy is a Namibian company with 3% carried interest.
He said: “Both Nakor Investments and Energulf are in the process of soliciting new investors into the license in order to breathe new life in the exploration efforts. The Ministry supports these efforts.”
Asked what makes the block 1711 unique, Mulunga said the benefits and prospects for Namibia are huge if commercial hydrocarbon resources are found and usually one needs to drill three or four wells in a prospect in order to find commercial hydrocarbons. He added that since only one well has so far been drilled in this license there is still a long way to go before we can expect good news.
Meanwhile, management of EnerGulf Resources believes the results of operations have significantly enhanced the prospect of block 1711.
“We are excited about the opportunity to manage the operations of offshore block 1711 as interim operator. The geological similarities of Block 1711 to offshore Brazil, and our discovery of an active hydrocarbon system suggest high value potential for the block. Our work programme is committed to capture this prospective world class value,” Jeff Greenblum, the CEO of EnerGulf Resources said.
source/link:
http://www.economist.com.na/index.php?option=com_content&view=article&id=22326:new-operator-for-oil-and-gas-exploration-block&catid=571:headlines&Itemid=62
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