CVI 0.00% 0.3¢ cvi energy corporation limited

offshore possibilites...

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    Interoil Exploration & Production ASA has, on November 3, 2006 signed the Production Sharing Agreement (PSA) for Blocks 5 & 6 in Angola. These awards are an important step in Interoil’s process of establishing operations in West-Africa.

    Block 5
    Interoil is a 40% participant in Block 5, where Vaalco Energy Inc. is operator with an equal interest. Sonangol P&P (national oil company of the Republic of Angola) is also a partner with an interest of 20%.

    Block 5 is 5 708 km² and is located in the Kwanza basin in the northern waters offshore Angola. 95% of the block has a water depth of less then 200 meters. The acreage is equivalent to approximately 10 offshore blocks in the North Sea. The block was first licensed to Total in the 1970s. The area was further developed by Conoco and Sonangol throughout the 1980s and 1990s. Twelve wells have been drilled in block 5 by the previous operators, which resulted in 5 discoveries. These oil accumulations were, at the time, deemed non-commercial, although it is reported by Sonangol that they discovered approximately 50 million barrels in three separate structures. A 3D seismic survey has already been acquired that covers the most prospective areas and the data quality is such that Interoil expects to firm up the potential and drill during 2007, subject to rig availability.

    Block 6
    In Block 6 Interoil is participating with 20%, where Petrobras is operator with an interest of 40% and Sonangol, Initial Oil & Gas and Falcon Oil are partners with a total interest of 40%.

    Block 6 covers an area of 4 930 km² and is also located in the northern area of Kwanza Basin offshore Angola. The water depth ranges from 50 meters to 500 meters.
    Block 6 was first licensed to Total. After being further developed by Conoco and Sonangol, it will now be operated by Petrobras. 8 wells have been drilled by the previous operators, which resulted in 2 heavy oil discoveries. The largest of the discoveries is the Cegonha heavy oil field, which according to Sonangol contains 135 million barrels of oil. The discovery of heavy oil in two wells gives rise to optimism, as the new operator has extensive experience in the development of such fields. A 3D survey has now been acquired over the Cegonha field and additional 3D will be acquired in Block 6.



    For some time I have been looking at this area. Ownership structures have been difficult to fathom...which is why I let them rest...but the introduction of Falcon to the CVI table reignited my interest somewhat.

    If there is offshore to consider, my guess is something in or about this area...blocks 2, 3, 4, 5, 17, 18 and 19...maybe even as far north at block 16?

    It appears the area is considered somewhat less than straight forward, yet highly economic...something a serious expert team might need to be bought in for?

    Just thinking outside the square here, or in this case, outside the Kwanza Basin Square.

    lol

    Block 5: Located in shallow water offshore Kwanza basin to the south of the Ambriz Arch, about 35 km north of Luanda. More than 95% of the block has water depth less than 200 m. Twelve wells have been drilled, including the Muamba-1, Mubafo-1, and Pakubalu-1 oil discoveries. Oil gravity is 29° to 33°.
    Flow rates range from 700 to 1,100 b/d. Estimated remaining reserves are 500MMbbl.

    Block 6: Located in shallow water offshore Kwanza basin adjacent to the city of Luanda. More than 95% of the block has water depth less than 200 m. Eight wells have been drilled, including the Cegonha-1 and Pardal-1 oil discoveries. Oil gravity is 17° to 18° API. Estimated remaining reserves are more than 500 MMbbl.

    Block 15: Located in deepwater offshore Lower Congo basin to the south of the Congo River, some 100 km west of the Soyo onshore oil facilities. Water depth is 200 to 1,600 m. Nineteen exploration wells, including Cabaca-1 and Puita-1, have been drilled on block 15 open area. There are 17 commercial wells. Oil gravity is 18° to 37° API. Estimated remaining reserves are 1.2 Bbbl.

    Block 17: Located in deepwater offshore Lower Congo basin, about 175 km northwest of Luanda. Water depth is 600 to 1,900 m. Eighteen exploration wells have been drilled; there are 16 commercial wells. Oil gravity is 20° to 37° API. Flow rates range from 2,000 to 10,000 b/d. Estimated remaining reserves are 1.6 Bbbl.

    To get an idea of the value od this area, an extract from a recent article...

    "Eni muscles out competition for Angola block 15
    Pam Boschee
    Pam Boschee, International Editor

    Eni blew all competitors out of the deep water with its bid of $902 million and an offer to pay a signature bonus of $150 million for the relinquished portion of Angola’s block 15 at Sonangol’s recent offshore lease sale. Already a player in the block’s Kizomba area, Eni intends to expand its presence, and it’s willing to pay for it.

    Other bids, seemingly small in comparison, were: Sinopec, $750 million; Total, $560 million; Petrobras, $265 million; and Statoil, $254 million.

    Sonangol conducted a public opening of sealed tenders for five offshore blocks - 1, 5, 6, 26, and the relinquished portion of block 15. Each block attracted proposals. The opening of the tenders was held in Luanda on April 3 and was the first public opening ceremony in the oil sector in Angola since its independence in 1975.

    A total of 20 companies submitted proposals for participation in the blocks. All blocks drew higher signature bonus figures than seen elsewhere in recent years.

    The portion of block 15, located 370 km northwest of Luanda, was relinquished by ExxonMobil. Sonangol says proven reserves are estimated at over 3.5 Bbbl and 1.2 Bbbl of remaining potential."

    The whole article can be found here...

    http://www.offshore-mag.com/display_article/254774/120/ARTCL/none/none/1/Eni-muscles-out-competition-for-Angola-block-15/

    Anyway, just thought it might be prudent, given the talk of offshore concessions, for people to appreciate the value inherent.

    Cheers!

 
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