Offshore drilling results

sandwich · 7th June 2008, 09:38 AM

Any word whether deep venture has hit oil in the kunene block?

Thanks for any help!

Oneword · 7th June 2008, 10:59 AM

Update on Kunene #1 Offshore Namibia

Quote:

EnerGulf has been notified by the operator of the Kunene #1 well on Block 1711 offshore Namibia, Sintezneftegaz Namibia Ltd., that due to weather delays coupled with various mechanical issues, the well is now expected to continue drilling for oil and gas beyond the estimated and previously announced 50 – 60 days to reach a total depth of 4,400 meters. The 4,400 meter total depth is now anticipated sometime around the middle of June. A decision to then continue drilling to a depth of approximately 5,500 meters has not yet been determined.

The Republic of Namibia has classified the Kunene #1 as a “tight hole”, meaning no information regarding the well may be released until such time as the Namibian government determines to make the information public.

OilVoice

Quote:

Block 1711 is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola. The 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. EnerGulf has a 10% working interest in the project.

The report covers the oil case and an alternate (and completely independent) gas case for the Kunene and Hartmann Prospects and gives Prospective Hydrocarbon Resource estimates in "Low" (Conservative, P90 confidence level), "Best" (Realistic, Most Likely), and "High" (optimistic, P10 confidence level) categories in each case. The Report's risk analysis provides a range of probabilities of hydrocarbon occurrence for both the Kunene and Hartmann. Additionally, NSAI conducted a scoping economic analysis of the Kunene Prospect using the "Best Estimate" for both an oil case and a gas case.

Specifically, the NSAI report provides the following: (MMBO=Millions of barrels of oil: BCF=Billions of cubic feet of gas)

Unrisked Gross (100 Percent)
Prospective Hydrocarbon Resources

OIL CASE

Oil Gas
Prospect (MMBO) (BCF)

Kunene
Low Estimate 126 123
Best Estimate 454 445
High Estimate 921 899

Hartmann
Low Estimate 863 618
Best Estimate 2,704 1,928
High Estimate 5,118 3,671

GAS CASE

Kunene
Low Estimate 11 720
Best Estimate 38 2,561
High Estimate 78 5,209

Hartmann
Low Estimate 69 4,592
Best Estimate 211 14,064
High Estimate 399 26,461

RISK ANALYSIS

Probability of Success:
Kunene: 10-16%
Hartmann: 7-13%

The NSAI report states "As the first well drilled in the license area will be at the Kunene prospect, a successful test there will significantly reduce the risk of the Hartmann Prospect by reducing uncertainty pertaining to reservoir, source, and seal."

KUNENE PROSPECT SCOPING ECONOMICS

The following estimates are based on an unrisked gross (100 percent) of the best estimate of the prospective hydrocarbon resources on the Kunene Prospect. The initial net prices, for the purpose of the analysis are $62.59 per barrel for the oil case (including $3.00/ bbl for transportation and processing costs) and $3.08 per MCF for the gas case (including $4.00/MCF for transportation and the various processing costs). The base product prices, facility and operating costs are escalated at 3% per year. Included in the capital costs are provisions for exploration and delineation wells to evaluate the prospect with production beginning in 2014.

KUNENE PROSPECT Unrisked Best Estimate Unrisked Best Estimate
Net Revenue After-Tax Cumulative
After Income Tax Present Worth
Discounted at 10%
---------------------------------------------------------------------
OIL CASE (US$000): $18,832,849 $5,371,504
---------------------------------------------------------------------
GAS CASE (US$000): $11,614,159 $2,737,451
---------------------------------------------------------------------

The Kunene prospect is defined by a 650-square-kilometre 3-D seismic survey. The structure forms a four-way dip closure covering 82 square kilometres, with vertical closure of over 400 metres. A test well at Kunene would be expected to be drilled to a total depth of approximately 3,625 metres in approximately 900 metres of water, at a cost of approximately US$21,200,000, including testing and completion or abandonment costs.

The Hartmann prospect has been delineated by 1,085 km of 2-D seismic. It is identified as a stratigraphic trap with an area of 377 square kilometres and approximately 1,600 metres of vertical relief. A Hartmann test well is anticipated to be drilled to a total depth of approximately 3,500 metres.

The Kunene and Hartmann Prospects reservoirs are thought to be reef or carbonate bank buildup. Analog reef type oil and gas fields around the world include the Malampaya Field (offshore Philippines), the Tengiz Field (onshore Kazakhstan) and the fields of the Golden Lane trend (onshore and offshore Mexico). (bnet)

Pietro · 9th June 2008, 09:49 PM

I see sandwich has not bothered to either read it or say thank you!!

sandwich · 12th June 2008, 07:11 AM

Hey I check up on this post every day! ... and yes thanks for the response!

Hopefully they find oil it would be a tremendous boost for Namibia. Just make sure the government negotiates hard for royalties.

sandwich · 12th June 2008, 07:49 AM

Actually I'm an Energulf investor from Canada. I'm just a regular guy with a fair amount of his life savings put into this company. I really believe that everything will work out ok. Its just frustrating cause we can't get any news.

In Canada they struck oil off the coast of Newfoundland. The companies said they would only pay a certain amount of royalties. The government demanded more and the companies left for a year but they came back and gave the price the government was asking for. Its extremely important for the people of Namibia to do the same. Oil doesn't last forever and you have to get the best deal you can.

http://www.nytimes.com/2007/08/23/business/23oil.html

mindfactory · 12th June 2008, 02:11 PM

Can you give us some results of the diamond exploration of De Beers and Namdeb, the sisters organisation?

Be brief on the following topics:

Resource allocation (sharing of joint earnings)

Understanding the key success of stakeholders

Budget breakdown (commercialization analysis)

Project information accessing (market evaluation)

Benefit of the Namibian people

Trusting you understand above mentioned.

Oneword · 15th June 2008, 05:31 PM

Welcome to the De Beers Diamond Experience

http://www.namdeb.com

Wikipedia

mindfactory · 17th June 2008, 09:09 AM

Quote:

Originally Posted by sandwich

Hey I check up on this post every day! ... and yes thanks for the response!

Hopefully they find oil it would be a tremendous boost for Namibia. Just make sure the government negotiates hard for royalties.

Even if they find oceans of oil in Namibia, the poor will be poorer and Namibia will still be like beggars with hands open. Do not fool yourself. People (mayority) will still sleep in shacks or pondokkies. Just look around you in awareness. The Namibians sold independence for politics. You need freedom of speech and not speech controlled by your masters.

Get real and wake up from your winter sleep. Long live oppression, long live the poor idiots.

skyWinNters · 24th June 2008, 10:27 AM

The soaring oil prices are affecting the costs of everything from food to gas. There are also significant issues on local and global environmental impact. While there are many issues, we need to look at our next leader and determine which will have the best course of action going forward…..I recently watch the two video in Pollclash about this issue, Obama and McCain talk about this…

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