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TotalEnergies has spudded a critical and highly anticipated appraisal probe offshore Namibia that will go a long way to revealing the scale of its potentially huge Venus oil and discovery.
Venus was discovered a year ago in Block 2913B in about 3000 metres of water, with the market speculation emerging at the time that the Orange basin find could hold 12 billion barrels of oil and many trillions of cubic feet of gas.
TotalEnergies subsequently tried to tamp down resource expectations, but it speaks volumes about the supermajor’s view of Venus that it plans to spend half its 2023 exploration budget on a four-well Namibian exploration and appraisal campaign this year.
The news is posted on the news service today
should get people attention
jmho
News out , GOOD
PEL 87 Farm In...
https://clients2.weblink.com.au/news/pdf_2%5C02638879.pdf
WOODSIDE ENTERS INTO EXCLUSIVE OPTION ON PANCONTINENTAL’S STRATEGIC DEEP WATER NAMIBIAN BLOCK PEL 87 PROJECT
MARCH 1, 2023
Woodside and Pancontinental have signed an Option Deed for Woodside to enter the deep-water Namibia PEL 87 exploration project
Woodside will fully fund an estimated US$ 35 million, minimum 5,000 sq km 3D seismic survey and pay Pancontinental US$1.5 million in cash
In exchange for Woodside fully funding the survey Woodside will have an exclusive option to enter the PEL 87 licence and Joint Venture with 56% and Operatorship
To ensure Pancontinental retains at least a 20% interest in the project if Woodside exercises its option, Pancontinental has, for a consideration of US$1.5 million, entered into an option agreement with Custos Investments (Pty) Ltd (Custos) to acquire a 1% interest from Custos by paying Custos a further US$1million
Following exercise by Woodside of its option and completion of its farmin to the PEL 87 licence, Woodside will drill the first exploration well, through which it will carry Pancontinental at 20% interest
If the PEL 87 parties elect to drill a second well Pancontinental will have the right to either fund its 20% interest, or elect to have a 10% interest in the well carried by Woodside in exchange for transferring an additional 10% interest in the PEL 87 licence to Woodside
Pancontinental has a “back-up” right to convert its interest to a 1.5% overriding royalty interest on revenue derived from the sale of oil or gas produced from PEL 87
Woodside will, on exercising its option, pay Pancontinental a further sum of approximately US$2.5 million, of which approximately US$1.5 million is for the reimbursement of a portion of Pancontinental’s past costs
Background
PEL 87, covering an area of 10,970 sq km, hosts the large Saturn turbidite complex mapped by Pancontinental, on-trend to recent major oil discoveries made in 2022; Total’s Venus-1 discovery and Shell’s Graff-1 and La Rona-1 and recent Jonker-1 (2023) discoveries have proven a working light oil system offshore Namibia.
Shell has now commenced a multi-well drilling program with Jonker-1 near the Graff discovery, and Total is reported to be contracting two rigs to drill appraisal wells on, and nearby, the Venus discovery.
Chevron in 2022 announced an entry to the PEL 90 project (approximately 5,000 sq km) adjacent to Pancontinental’s PEL 87 area.
The Minister of Mines and Energy recently granted to the PEL 87 Joint Venture a second, one- year extension of the Initial Exploration Period (see ASX release of 5 December 2022).
PEL 87PEL
Woodside’s Exclusive Option to PEL 87 Exploration
Pancontinental is pleased to announce that its wholly owned subsidiary Pancontinental Orange Pty Ltd has entered into an Option Deed with Woodside Energy (GOM), Inc, a wholly owned subsidiary of Woodside Energy Group Ltd whereby Pancontinental has granted Woodside an option to acquire a 56% Participating Interest in PEL 87, in consideration for Woodside paying for a 3D seismic survey covering an area of at least 5,000 square kilometres within the area the subject of PEL 87 (“Licence Area”) at an estimated cost of US$ 35 million and also paying Pancontinental US$1.5 million.
Woodside will have a period of at least 180 days after the delivery of the seismic survey data to exercise that option.
If Woodside exercises the option then Woodside and Pancontinental have agreed to enter into a farmout agreement whereby Woodside will carry the existing joint venture during the drilling of the first exploration well to be drilled on the Licence Area after the completion of the seismic survey.
To ensure Pancontinental retains at least a 20% interest in the project if Woodside exercises its option, Pancontinental has, for a consideration of US$1.5 million, entered into an option agreement with Custos Investments (Pty) Ltd (Custos) to acquire a 1% interest from Custos by paying Custos a further US$1million. Pancontinental will retain a 20% interest during the drilling of the well.
If the joint venture decides to drill a second well then Pancontinental may:
(i) retain its 20% interest but must pay its share of that well;
(ii) reduce its interest to a 10% Participating Interest and have Woodside carry Pancontinental through the cost of the second well; or
(iii) at any time up to 60 days after the approval of any Development Plan, convert its interest to a 1.5% gross overriding revenue royalty interest.
Upon Woodside’s election to exercise its option, Woodside will pay Pancontinental approximately US$ 2.5 million, of which approximately US$ 1.5 million is reimbursement of a portion of Pancontinental’s past costs.
3D Seismic Survey
Planning is very well advanced for a minimum 5,000 sq km 3D seismic survey to be operated by Pancontinental under an agreement in which Woodside will fully fund the survey and will act as adviser to Pancontinental. Further details of the survey will be announced shortly.
Director’s Comment
Pancontinental’s Director Mr Barry Rushworth commented:
“Energy giants are jockeying for position after major oil discoveries by Shell and Total offshore Namibia.
Multi-well drilling recently re-started on these discoveries with Shell’s Jonker-1 discovery and Total is reported to be bringing in two deep-water rigs for drilling on, and nearby Venus. On- trend, Pancontinental’s PEL 87 has very high potential, with contiguous geology to the discoveries.
Woodside has the exclusive option to join Pancontinental and partners Custos and Namcor in exploring the huge Saturn Turbidite Complex mapped by Pancontinental in PEL 87.
Exploration is moving ahead quickly, with 3D seismic acquisition planned to start later in February this year.
Saturn has been independently assessed to have multi-billion-barrel potential, as first reported by Pancontinental in September 2018.
The deal with Woodside is a very good one for both Pancontinental and Woodside. The planned 3D survey covers a large area over Saturn and we expect very interesting results mid-2023.
If Woodside exercises its option to drill, Pancontinental will, including as a result of the option agreement we have entered into with Custos, retain a very healthy 20% carry in the first well, at no cost to Pancontinental. If a discovery is made, Pancontinental can continue with a 20% interest.
Pancontinental has strategic optionality, so that we can either fund 20% of a second well and carry on with a 20% contributing interest, or be fully carried in the well at the 10% level and retain a 10% contributing interest in the project thereafter by transferring an additional 10% participating interest to Woodside.
We have negotiated a further built-in “insurance policy” right for Pancontinental to convert its interest to take 1.5% of “sales point” oil and/or gas production revenue, with no production expenditure exposure up to the “sales point”. Pancontinental has no current plan to invoke this right.
Saturn is similar to Total’s huge Venus oil discovery. They are interpreted to have the same age reservoir rocks and similar depositional character, the same mature oil source rocks and the same regional sealing rocks at about the same depth below the sea floor.
PEL 87 and Saturn need further exploration, including drilling, to prove any commercial viability.
We are very grateful to the staff and officers of the Namibian Ministry of Mines and Energy for their continuing support in this project.
Pancontinental is an ASX listed energy company with a large strategic position in this major new energy play alongside Shell, Total, Chevron, Qatar Energy and now Woodside”.
About PEL 87
PEL 87 was awarded to a Joint Venture led by Pancontinental on 23 January 2018 for a possible total of 3 terms spread over 8 years, plus possible extensions. PEL 87 can be converted to a Production Licence under pre-agreed terms.
PEL 87 covers an area of 10,970 sq km, subject to periodic relinquishments which may be waived by the Government of Namibia at its discretion.
Pancontinental has mapped the Saturn Turbidite Complex, with a core area of some 2,400 sq km and an overall area of about 4,000 sq km. This very large and complex feature may host numerous large internal hydrocarbon traps, some of which have already been mapped on 2D seismic. None has yet been drilled.
Very good oil source, reservoir and sealing rocks have been identified regionally, and now proven by recent discoveries.
Pancontinental and Woodside plan 3D seismic over Saturn in partnership with Namibian partners Custos and Namcor, to define targets for drilling.
About Woodside
Woodside Energy Group Ltd (WDS) is a global energy company, founded in Australia. Woodside is an experienced oil, gas and LNG producer and has a global portfolio including quality energy assets in Australia and internationally.
About Pancontinental
Pancontinental Energy NL is an energy exploration company with exploration assets in Namibia and Australia.
Pancontinental’s market capitalisation is approximately A$ 83 million (1 March 2023). Pancontinental is listed on the Australian Securities Exchange (ASX) under code PCL.
Comment on this Post
drilling
Kick Off Drilling at Venus Discovery in Namibia
Cision Canada
FR
AFRICA OIL ANNOUNCES THE IMMINENT COMMENCEMENT OF A MULTI-WELL DRILLING PROGRAM, OFFSHORE NAMIBIA
NEWS PROVIDED BY
Africa Oil Corp.
Feb 22, 2023, 02:50 ET
VANCOUVER, BC, Feb. 22, 2023 /CNW/ - (TSX: AOI) (Nasdaq-Stockholm: AOI) – Africa Oil Corp. ("Africa Oil", "AOC" or the "Company") is pleased to note the press release by its investee company, Impact Oil & Gas Limited ("Impact"), regarding the imminent commencement of a multi-well appraisal and exploration drilling program in Namibia, following the Venus light oil discovery in Block 2913B (PEL 56). Africa Oil holds a 30.9% shareholding in Impact. View PDF Version
Highlights
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Map Showing Africa Oils Deep Water Orange Basin Interests (CNW Group/Africa Oil Corp.)
Map Showing Africa Oil’s Deep Water Orange Basin Interests (CNW Group/Africa Oil Corp.)
Related Documents
AFRICA OIL ANNOUNCES THE IMMINENT COMMENCEMENT OF A MULTI-WELL DRILLING PROGRAM, OFFSHORE NAMIBIA (CNW Group/Africa Oil Corp.)
AFRICA OIL ANNOUNCES THE IMMINENT COMMENCEMENT OF A MULTI-WELL DRILLING PROGRAM, OFFSHORE NAMIBIA (CNW Group/Africa Oil Corp.)
Multi-well programme in Namibia due to commence before the end of February, targeting up to four wells (including the re-entry of the Venus-1X discovery well, in Block 2913B), to appraise the Venus discovery and to investigate a potential westerly extension of Venus, the Nara prospect (formerly referred to as West Venus) on Block 2912.
Venus-1A, on Block 2913B, will be the first well to be drilled, using the Tungsten Explorer drillship, and is the first appraisal well on the Venus discovery. This will be followed by a drill stem test using the Deepsea Mira.
Upon completion of the Venus-1A drill stem test, the Venus-1X exploration well, also on Block 2913B, will be re-entered and side-tracked using the Deepsea Mira to conduct a second drill stem test.
Nara-1X, an exploration well on Block 2912, will then be drilled and potentially flow tested by the Tungsten Explorer.
If Nara-1X proves successful, the Nara-1A appraisal well could then be drilled in Block 2912 and flow tested.
Impact holds a 20% working interest in Block 2913B (PEL 56) and an 18.89% working interest in the adjacent Block 2912 (PEL 91).
Africa Oil President and CEO Keith Hill commented: "the Venus discovery, which according to Wood Mackenzie was the world's largest oil discovery in 2022, has opened up the Orange Basin as a world-class petroleum province. I am delighted that we are at the forefront of this exciting play through our shareholding in Impact, and a 20% operated interest in Block 3B/4B that lies on trend with the Venus structure. We are the only publicly listed independent oil and gas company with an interest in Venus, and our material Orange Basin acreage presents a very attractive opportunity for investors looking for an exposure to its potentially transformational upside."
Appraisal of Venus discovery in Block 2913B (PEL 56)
The Venus discovery is a world class light oil and associated gas field, located in the Orange Basin, approximately 290 kilometres off the coast of southern Namibia, and in water depth of approximately 3,000 metres. The well was drilled to a total depth of 6,296 metres, by the Maersk Voyager drillship, and encountered a high-quality light oil-bearing sandstone reservoir of Lower Cretaceous age.
Drilling of Venus-1A, the first appraisal well on the Venus discovery, will be located approximately 13 kilometres to the north of the Venus-1X discovery well and drilled using the Tungsten Explorer drillship. The Deepsea Mira will then be used to conduct a drill stem test at this location.
The Deepsea Mira will then re-enter the Venus-1X well and conduct a flow test. The objective of this programme is to further evaluate the Venus reservoir and deliver dynamic data.
Impact (through its wholly owned subsidiary, Impact Oil and Gas Namibia (Pty) Ltd) holds a 20% working interest in Block 2913B (PEL 56). PEL 56 is operated by TotalEnergies EP Namibia B.V ("TotalEnergies") who holds, a 40% working interest, and QatarEnergy and NAMCOR respectively hold a 30% and 10% working interest in PEL 56.
Exploration and potential Appraisal of Block 2912 (PEL 91)
Block 2912 may contain a highly material westerly extension of the Venus field. Operations by TotalEnergies during 2023, on behalf of the Joint Venture, are designed to explore and, if successful test, this potential extension of the Venus accumulation into Block 2912 and provide an understanding of the structure and reservoir quality.
TotalEnergies will commence drilling operations in Block 2912 during mid-2023. Exploration well Nara-1X will be drilled and flow tested by the Tungsten Explorer and, if successful, an appraisal well, Nara-1A, could then be drilled and flow tested.
Impact (through its wholly owned subsidiary, Impact Oil and Gas Namibia (Pty) Ltd) also holds an 18.89% working interest in the adjacent Block 2912 (PEL 91), where it is also partnered with TotalEnergies (Operator, with 37.78%), QatarEnergy (28.33%) and NAMCOR (15%).
Map Showing Africa Oil's Deep Water Or jmho
Things are really heating up in our area
Total Fast Tracking Namibia...
Namibia Superfind Too Good Not to Fast-Track. The French energy company TotalEnergies (NYSE:TTE) will be spending half of its 2023 exploration budget on offshore Namibia after the 6-billion-barrel Venus discovery last year, the largest in 2022, propelled the frontier region to global limelight.
https://www.upstreamonline.com/exploration/totalenergies-throws-half-of-this-years-exploration-budget-into-potential-new-golden-block/2-1-1400964
Total's Tungsten Explorer underway...
ETA: 2/15 Walvis Bay Namibia
jmho
Shell testing new found play
They have a hit in the first target (and are) testing it.
Hot spot: a Shell filling station between Walvis Bay and Swakopmund in Namibia.Photo: IAIN ESAU
Orange basin: Shell hits hydrocarbons in world's hottest new hunting ground
Jonker-1 wildcat has found hydrocarbons on a different geological play to Shell's previous Graff and Rona finds offshore Namibia
23 January 2023 11:29 GMT UPDATED 23 January 2023 13:38 GMT
By Iain Esau in London
The temperature is rising again in Namibia’s Orange basin, the world’s hottest new hydrocarbon hunting ground, with Upstream told that early signs from Shell’s Jonker-1 exploration probe are promising.
Northern Ocean’s semi-submersible rig Deepsea Bollsta began drilling the high-profile well in Block 2913A in mid-December.
Namibia: Shell spuds exploration probe in Orange basin hunting ground
Read more
The probe is chasing a different geological play to the Upper Cretaceous light oil discoveries made last year by Shell's Graff-1 and La Rona-1 exploration wells.
Instead, Jonker-1 is targeting an eastern extension of the Lower Cretaceous oil and gas play that TotalEnergies hit with its Venus-1 probe in adjacent Block 2913B in 2022 , potentially Africa’s largest ever offshore discovery.
Three informed sources told Upstream in recent days that Jonker-1 has hit hydrocarbons in a shallow reservoir, offering significant encouragement for what may yet be found in the probe’s deeper primary objective.
It is understood that Shell was running in-hole flow tests on this secondary target last week.
Shell to fire up Namibia drill campaign within days
Read more
Shell “has found something interesting in a shallow target and is drilling ahead to the thicker primary objective”, said one well-watcher.
Another exploration source said: “They have a hit in the first target (and are) testing it.”
A third well-placed contact agreed, saying last week: “They are testing at the moment.”
The closed-hole test equipment used by Shell would allow it to achieve flow rates of about 2000 to 3000 barrels per day, according to an observer with knowledge of downhole equipment.
Shell within weeks of starting critical Namibia drilling campaign
Read more
However, because this type of test is short-lived compared to a full production test, it will not give a true indication of the pressure “build-up” rate which is vital to develop an understanding of a reservoir’s true potential.
The size of Jonker is not known, but explorers suggested Shell would only drill this probe ahead of appraising and testing Graff if the structure’s size is significant and has the potential to host higher quality reservoirs.
“Shell are chasing much better reservoirs than Graff and La Rona which, while they encountered hydrocarbons, have questions over their deliverability,” remarked one knowledgeable source.
Shell and TotalEnergies aim to speed up Namibia appraisal and development plans
Read more
Multiple contacts in the southern African exploration community have given the name Venus East or East Venus to Shell’s prospect.
However, based on current knowledge, Jonker is not expected to be in direct communication with the Venus discovery.
“It looks to be a separate closure on the same play,” said an explorer familiar with Namibia.
Another source agreed but believes Jonker does stretch into TotalEnergies’ acreage.
“It’s separate but does it extend over the border.”
Shell to kick-start second Namibia drilling campaign by end of 2022
Read more
If Shell does make a discovery at Jonker and the prospect is found to either be linked directly to Venus or traverse the boundary between blocks 2912A and 2913A, then unitisation will be needed.
Any future allocation of hydrocarbon resources between the two operating groups could, however, be smoothed somewhat by the presence of Qatar Energy as a partner in both Venus and Jonker.
Shell declined to comment on the status of its latest Namibian well.
Shell operates Petroleum Exploration Licence 0039, which covers blocks 2913A and 2914B, with a 45% working interest.
QatarEnergy also has a 45% stake while state-owned Namcor holds 10%
jmho
Drilling has started
Drilling Campaigns Offshore Namibia...
Report: Drilling campaigns get underway offshore Namibia
Dec. 16, 2022
Three floating rigs should be working by next summer, says Evercore ISI.
NEW YORK CITY –A number of drilling campaigns will soon get underway off Namibia as the south African nation seeks to move forward with the development of its offshore energy resources, according to Evercore ISI’s latest Offshore Rig Market Snapshot.
The firm noted that Shell has kicked off its new three-well exploration campaign in Namibia this week, with the Deepsea Bollsta spudding the Jonker-1 wildcat about 18 km from the Graff-1 discovery. Idled offshore Norway since March, the sixth-generation semisubmersible commenced a one-year $124 million or $340,000/day contract with a six-month option that could keep it busy to mid-June 2024.
Evercore also noted that a second floater is expected to be on rate offshore Namibia by mid-February, with the Tungsten Explorer mobilizing from the Eastern Mediterranean for a two-well appraisal program at TotalEnergies’ Venus discovery. The 225-day contract is reportedly valued at $79 million, or $351,000/day. Unexercised options could keep the seventh-generation drillship contracted out to February 2026.
According to the report, Total contracted a second rig for Namibia this week and will mobilize the warm-stacked Deepsea Mira from Norway for a 300-day exploration and appraisal campaign at Venus in 2Q 2023. The new $135 million contract implies an average dayrate of $450,000/day for the sixth-generation semisubmersible but likely includes reimbursement for mobilization and reactivation which Odfjell Drilling pegged at $45 million.
All three floaters should be on rate through next summer and into the fall, with options potentially keeping Namibia’s floater count at a record three units through 1Q 2024.
Evercore also noted that S&P Global is tracking a probable (>50% probability of proceeding in the indicated timeframe) development tender from Total for Namibia commencing in mid-2024, as well as four possible (<50% probability) exploration tenders from Eco Atlantic and ExxonMobil for 2024-2025.
12.16.2022
https://www.offshore-mag.com/regional-reports/africa/article/14287214/report-drilling-campaigns-get-underway-offshore-namibia
jmho
a hint of what we have !
We have a lot:
1. pel 90 is the closest block to venus discovery - that maybe can be the biggest discovery in africa offshore.
in pel 90 we have prospects in the aptian like venus.
cheveron paid a lot of money and farm in with 80% from the block.
2. pel 83 have on the border the culinan prospect if shell will drill there its very intresting to us and lets see if galp will find a partner for the block.
3. in pel 87 there is the biggest prospect on the region - saturn with core area of 2400 skm, venus is 600 skm and saturn maybe have similar play to venus.
pcl said that they are try to find partner to carry 3d + drill.
4. in the walvis basin we have block in the center of the basin so any drill in the area will be good for us.
orenge basin is one of the most hottest basins in world and we have position in 3 blocks there (all of them with carry with diffrent terms)
Volume and SP moving up
jmho
volume picking up and we also moving UP
Just maybe news on shell drilling next door
jmho
jmho
SEI.V / SEUSF
getting volume everwhere today
jmho
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