Chad... bullish
In 2014, ERHC announced preliminary findings from an airborne gravity/magnetic survey of BDS 2008 in Southern Chad strongly confirm the viability of leads in two focus areas identified by ERHC's technical team after careful analysis of previously collected data. The aerial survey, flown over 4,720 line kilometers, evaluated the hydrocarbon potential within ERHC's Block BDS 2008 in the area north of Esso's Tega and Maku discoveries in the Doseo basin and a second area situated east of and on trend with OPIC's Benoy-1 margin discovery in the Doba basin.
Bridgeporth conducted a precise data acquisition, and the first-order leveled raw free-air gravity and magnetic anomaly maps strongly confirm the viability of the leads. While final processing and interpretation is ongoing, ERHC is discussing proposals for the requisite follow-on seismic survey.
ERHC plans to pursue with a rift margin play. Drilling on the edge of the basins is similar to the rift margin play used by Tullow, which led to several significant discoveries, including the Ngamia #1 discovery in northwestern Kenya in 2012. In fact, comparing seismic images for ERHC’s proposed Lead 2 well location in Chad with Ngamia #1 in Kenya shows what geologists describe as a “structural analog.” There is a high degree of similarity.
The Area:
The West African nation of Chad has proven oil reserves of 1.5 billion barrels with studies establishing the prospect of more discoveries. It is one of sub-Saharan Africa’s significant crude oil producers. Chad shares borders with Nigeria, Cameroun and Sudan, which all produce oil as well. According to the World Fact Book, a consortium led by two U.S. companies has been investing $3.7 billion to develop oil reserves - estimated at 1 billion barrels - in southern Chad. Chinese companies are also expanding exploration efforts and are currently building a 300 km pipeline and the country's first refinery. Oil production came on stream in late 2003. Chad began to export oil in 2004.
