Simba Granted PSC for Kenya Block

- Simba Granted PSC for Kenya Block

Wednesday, August 03, 2011
Simba Energy Inc.

Simba has been granted a Production Sharing Contract (PSC) by the Ministry of Energy, Republic of Kenya for Block 2A, comprising 7,801.72 square kilometers in northeast Kenya.

"We are delighted in having been awarded this PSC from the Republic of Kenya's Energy Ministry. This is a major achievement for the Company and further supports our strategy to pursue underexplored and overlooked onshore basins in Africa. While we remain very close to finalizing other PSC applications elsewhere, Block 2A's PSC provides our shareholders a very significant boost in near term upside exploration potential for the Company. It has been a lot of work to get to this point so we are extremely pleased," remarks Robert Dinning, President & CEO.

Block 2A overlies the southern tip of the Mandera Basin while the southwest corner of the block extends into the Anza Basin. Block 2A also has excellent potential for significant oil and gas discoveries as evidenced by the following evaluation highlights:

• The Mandera Basin is Permo-Triassic to Tertiary in age with a sediment thickness of 10,000 meters. Potential source rock interval is mid Jurassic-Lower Cretaceous and comparable with the larger Mandera-Lugh basin in Ethiopia and Somalia
• Only four wells have been drilled in the Mandera basin with oil shows encountered at 40-44m in the Tarbaj stratigraphic well drilled by Total
• In the Anza basin lower Cretaceous reef structures have been mapped with a potential reservoir thickness of 300m-500m. Source rock is likely Lower Cretaceous. The eleven wells drilled in the Anza Basin have encountered oil shows and/or gas shows
• Present 2D seismic coverage, although regional in nature, identified numerous structures and a major stratigraphic pinch-out. The limited seismic coverage available indicates a stable stratigraphic sequence with some very good exploration leads
• Remaining of exploration interest to the Company is the flank of the basement high structure where two AMOCO wells drilled in 1987 (ELGAL#1 to 1,280 meters in Permian Karroo and ELGAL#2 to 1,908 meters in Triassic Karroo) were plugged and abandoned as no reservoir rocks were encountered
• The area of the block overlying the Mandera basin is of particular interest as the analysis of the oil from the seeps at Tarbaj although severely biodegraded indicate a source rock maturity for the Mandera basin which is well within the oil window

The Company will immediately begin re-interpretation of all available existing data, as well as initiate baseline environmental work, to support the design and planning of a new seismic acquisition program.

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Oilex Continues Ops to Demobilize Rig at Cambay PSC

- Oilex Continues Ops to Demobilize Rig at Cambay PSC

Wednesday, July 13, 2011
Oilex Ltd.

Oilex advised that operations are continuing to demobilize the Black Pearl rig and associated drilling equipment.

Mobilization of the equipment required to conduct the large volume multi-stage fracture stimulation of the Y Zone tight gas reservoir is near completion and rigging up is progressing. In total, 16 zones will be stimulated in 8 stages over the length of the horizontal section of the well bore (approximately 600 meters).

• Report date: July 12, 2011
• Status:
  
  • Demobilizing drilling rig
  • Mobilizing fracture stimulation equipment
• Past Week's Operations Demobilizing drilling rig
• Objective Cambay Eocene "tight" reservoir Y Zone
• Total Depth (TD) 2,740 meters

The participating interests in the Cambay PSC are:

• Oilex Ltd (Operator) 30%
• Oilex NL Holdings (India) Limited 15%
• Gujarat State Petroleum Corporation Ltd 55%

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ConocoPhillips Signs PSC for Exploration in Bay of Bengal

- ConocoPhillips Signs PSC for Exploration in Bay of Bengal

Thursday, June 16, 2011
ConocoPhillips

ConocoPhillips has signed a Production Sharing Contract (PSC) with the Government of Bangladesh and Petrobangla covering two blocks in the deepwater area of the Bay of Bengal, representing ConocoPhillips' first investment in the People's Republic of Bangladesh. ConocoPhillips holds 100 percent of the working interest in the PSC.

"ConocoPhillips is pleased to become part of the Bangladesh oil and gas community," said Larry Archibald, senior vice-president, Exploration and Business Development. "We fully expect that this contract signing will be the first step in a long and successful relationship between ConocoPhillips, Petrobangla and the Government of Bangladesh."

Blocks DS-08-10 and DS-08-11 cover a total area of 5158 sq. km., (1.27 million acres), and are located in water depth of 1000-1500 meters (3,300-5,000 feet) approximately 280 kilometers (175 miles) from the port city of Chittagong. The area awarded under the PSC is in the Bangladesh portion of the Bay of Bengal, the largest submarine fan in the world.

The deepwater area of Bangladesh is virtually unexplored, and ConocoPhillips' exploration efforts in Blocks DS-08-10 and DS-08-11 will begin as soon as possible with the acquisition of a large 2D seismic survey.

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BG Group Inks PSC for Blocks Offshore Keny

- BG Group Inks PSC for Blocks Offshore Keny

Tuesday, May 17, 2011
BG Group plc

BG Group has signed Production Sharing Contracts with the Government of Kenya for two offshore exploration blocks - L10A and L10B.

BG Group will be operator on both blocks and will hold a 40% equity interest in block L10A and a 45% interest in block L10B. The initial work program consists of a commitment to acquire seismic data during an initial exploration period of two years.

Blocks L10A and L10B together cover an area of more than 10,400 square kilometers in the southern portion of the Lamu Basin, offshore Kenya, located in water depths ranging from around 200 meters to in excess of 1 900 meters.

BG Group Executive Vice President and Managing Director, Africa Middle East & Asia, Sami Iskander, said, "BG Group looks forward to working with our partners and the Kenyan Government to play an active role in the exploration for oil and gas offshore Kenya."

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Sino Gas & Energy Begins Linxing PSC Well Testing

Sino Gas & Energy Begins Linxing PSC Well Testing

Wednesday, May 11, 2011
Sino Gas & Energy Holdings Limited

Sino Gas & Energy Holdings Limited, an Australian company developing unconventional gas assets within the Ordos Basin, Shanxi Province China, has confirmed the commencement of its 2011 well testing program on the Linxing Production Sharing Contract (PSC).

Following a competitive tendering process, Sino Gas has now signed the 2011 testing contract for the Linxing PSC with CCDC Changqing (CCDC), a subsidiary of PetroChina. Sino Gas used CCDC extensively in its 2010 well testing campaign.

Sino Gas Managing Director, Stephen Lyons, said he was very pleased with the appointment of CCDC, which highlights our continued cooperation with established Chinese service companies.

"CCDC are a full service downhole company that performed safely and very effectively for Sino Gas in 2010 delivering 7 successful tests. They also had extensive input into the test program designs and this will continue during 2011.

The testing contract is initially for 2011 but can be extended with additional tests being added as required," said Mr Lyons.

Testing equipment will now be prepared and mobilized to the TB09 Gas Discovery Well for a test scheduled around the end of May 2011.

Prospective zone in TB09 to be stimulated

The TB09 Gas Discovery Well was drilled to TD late in Q4, 2010 with electronic wireline logging confirming the presence of gas in multiple zones.

The test to be carried out will be on one of the upper zones that exhibited promising log and core testing results and is expected to generate commercial gas flows that will be converted to CNG for transport and sale in the Company's Pilot.

As with Sino Gas's previous well tests, the TB09 test will initially involve a perforation of the zone followed by a flow test to measure gas flow and formation pressure data. Following the flow test it is intended that the zone will be hydraulically fracture stimulated to increase gas flow.

Assuming a successful test on TB09, the well will form part of the Company's Pilot development that is expected to include multiple wells during 2011 with gas sales increasing significantly as this program proceeds.

Other activities, including those on the Sanjiaobei PSC, will be confirmed as they are approved and scheduled.

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BP Migas Extends Contracts of Four PSC Holders

BP Migas Extends Contracts of Four PSC Holders

Thursday, May 05, 2011
Asia Pulse Pte Ltd

Indonesian upstream oil and gas regulator BP Migas announced Wednesday that the government had extended contracts with four production sharing contract (PSC) holders in 2011.

The four PSC holders were Camar Resources Canada for the Bawean block in East Java, PT Medco E&P Malaka for Block A in Aceh, Husky Oil (Madura) Limited for the Madura strait block and PT Medco E&P Indonesia for the South Sumatra Central Sumatra Area block.

The government has extended contracts with those PSC holders, said BPMigas spokesperson Elan Biantoro over the phone.

In addition to the four blocks, the government will also extend the contract of the West Madura offshore block, currently operated by Korea-based Kodeco Energy. The contract will expire on May 6.

BPMigas has recommended that the government grant the right to operate the block to state oil and gas firm PT Pertamina, the Jakarta Post newspaper said.

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AED Receives Extension for Rombebai PSC Contract

AED Receives Extension for Rombebai PSC Contract

Wednesday, April 20, 2011
AED Oil Ltd.

AED announced that AED Rombebai B.V. as 100% operator of the Rombebai Block in Papua, Indonesia has received an extension of the exploration period for its current production sharing contract (PSC) until July 15, 2013.

AED Oil Executive Chairman Mr David Dix said, "This extension is a very positive event for the Company. It provides us with increased certainty of control over an asset with outstanding commercial potential. We believe this certainty will leave us well placed to attract and negotiate with potential farm-out partners who can work with us to develop this world-class prospect."

The Rombebai prospect contains the Gesa structure, which is a world-class prospective resource where AED is targeting in excess of 7 Tcf of gas. In addition to the significant gas potential within Rombebai, we believe there is also the real possibility of a major oil find.

Rombebai has an excellent path to market with the potential to become a major liquefied natural gas development similar to the nearby BP Tangguh LNG development. AED has become increasingly optimistic about Rombebai. Our initial assessment had suggested the presence of biogenic gas only; however recent analysis of previous drilling results suggests the presence of hydrocarbons.

New seismic data and interpretation work has significantly increased the prospectivity of the Gesa structure. Recent studies suggest oil as well as thermal gas potential indicated by oil fluorescence in Gesa 1 and 2, and from oil analyzed in hydrocarbon seeps.

Our 2011 geological and geographical program will focus on reprocessing data and performing detailed AVO studies to better quantify the hydrocarbon type and distribution, as well as sampling oil seeps in the region.

AED plans to recommence farm-out discussions with interested parties, with a view to conducting drilling operations at the Kare-1 well upon obtaining the required forestry permits.

AED believes that the additional time will allow the following activities to be performed before the time at which for a Plan of Development is required to be submitted in respect of the Rombebai Block:

• Drilling and testing and evaluation on the result of the Kare-1
• Drilling further exploratory/delineation well pending results from Kare-1
• Geological and geophysical studies to confirm and certify any hydrocarbon reserves discovered
• Acquisition & processing of further seismic as required.

Key terms of the extension are as follows:

• To continue to perform drilling operations and activities as per the current 2011 approved work program in relation to drilling the exploration well Kare-1 by November 15 2011 (a condition which may be waived if AED has made significant progress in drilling preparations for this well)
• If the exploration well is a "dry well," AED Rombebai B.V. may apply to continue to explore the Rombebai Block for the remainder of the exploration period
• If within the exploration period, AED Rombebai B.V. discovers an economic hydrocarbon reserve to be developed, then AED Rombebai B.V. may submit an additional request for a maximum of a further twelve months effectively for the purpose of determining commerciality of the Block
• AED Rombebai B.V. will relinquish the Rombebai Block if economic hydrocarbons are not discovered during the exploration period
• The term of the PSC remains unchanged at 30 years.