Thanks SPP119. This also on block 2:
Prospectivity
JDZ Block 2 lies at the end of the toe thrust of the deep water Niger basin. It is adjacent to Nigerian Block
OML 130, which hosts the Akpo Field, with reserves of 600 million barrels of oil and 1 TCF of gas (Total
2007) and series of significant discoveries. The Obo-1 well discovery in the adjoining Block 1 proved the
existence of a hydrocarbon source and the presence of excellent reservoir sands in the region of Block 2.
Based on the 3D seismic survey, acquired in 2003 by PGS and partially funded by Equator, NSAI made a
Best Estimate of Gross Unrisked Prospective Resources of 1.3 billion barrels of oil and 1.9 trillion standard
cubic feet of gas in total in the 10 identified prospects (Table 2).
The subsequent evaluation by the operator differs in detail with regard to the definition, size and ranking of
the prospects from the NSAI evaluation. For example, the operator identified 18 structures. Their estimate of
total unrisked prospective oil-in-place is 3.9 billion barrels and of unrisked prospective gas-in-place is 8
trillion cu ft, both at the P50 level. These figures compare with NSAI’s Best Estimates of unrisked prospective
in-place volumes of 4.7 billion barrels for oil and 3 trillion cu ft for gas.
While the discovery in the Bomu 1 well of gas rather than oil was disappointing, the reservoir sands and
traps were, by and large, encountered as expected. Further technical and commercial evaluation of the
discovery and the other prospects on Block 2 is underway. The JDA has granted a six month extension to 14
September 2010 to allow Sinopec to complete these studies and to allow the participants to make a properly
informed judgment on whether to enter the next Exploration Phase with its commitment of one well. Four
other wells were drilled in the JDZ, three in Block 4 and one in Block 3, simultaneously with Bomu 1. We
believe that the JDA may also grant extensions for these blocks allowing the common operator, Sinopec, to
integrate the studies on a regional basis to the benefit of the JDA and participants.
