Magic, thanks for the link. I havecut and pasted the info here for convienient viewing.
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.
EQUATOR EXPLORATION LIMITED – ANNUAL REPORTS & FINANCIAL STATEMENTS 2007, 2008 & 2009
11
Table 2 - JDZ Block 2
Best Estimate Prospective Resources 1
as at 1 October 2007
Unrisked Risked
Gross
(100 Percent)
Equator Net
Interest
Gross
(100 Percent)
Equator Net
Interest
Prospect
Cluster
Oil
MMBBL
Gas
BCF
Oil
MMBBL
Gas
BCF
Oil
MMBBL
Gas
BCF
Oil
MMBBL
Gas
BCF
Central 369 403 33 36 100 109 9 10
North 410 807 37 73 111 282 10 25
South 440 501 40 45 111 126 10 11
Subthrust 130 158 12 14 30 36 3 3
Total 1,349 1,869 121 168 352 553 32 50
Totals may not add due to rounding
(1) Netherland, Sewell & Associates, Inc.
Exclusive Economic Zone of São Tomé e Príncipe
The maritime boundaries of São Tomé e Príncipe encompass an area of approximately 160,000 square
kilometres. The close proximity of São Tomé e Príncipe’s offshore waters to the proven hydrocarbon
systems in the adjacent waters of Nigeria, Cameroon, Equatorial Guinea and Gabon suggests the potential
for hydrocarbons, which is further supported by regional seismic data and petroleum seeps seen on the
islands.
In a joint venture with Petroleum Geo-Services ASA (‘PGS’), Equator funded the acquisition in 2001 and
2005 of ten thousand kilometres of 2D seismic data and interpreted more than twenty thousand kilometres
within the Exclusive Economic Zone of São Tomé e Príncipe (‘EEZ’). It was agreed with the government that
licences for the seismic data will be sold to oil companies to promote an oil exploration licensing round. In
return, Equator gained the right to acquire a 100% interest in two blocks of its choice. In addition, the
Company was granted an option to take up to a 15% share in any eventual back-in participation that the
government may secure in other blocks.
Prior to the current EEZ Licensing Round, the government invited the Company to make its first choice of
two blocks according to the Exploration and Production Option Agreement which Equator has with the
government. Following Equator exercising its option, the Company received from the government a letter of
allocation of the rights to Block 5 and Block 12 in the EEZ. The government has informed Equator that it will
begin negotiation of the Production Sharing Contracts during 2Q 2010. Signature of the PSC’s will commit
the Company to the payment of signature bonuses and to the execution of work programmes. Equator
intends to enhance the value and manage the risks of its opportunity in the EEZ by seeking farm-outs to an
acknowledged deep water operators.
Now that the EEZ Licensing Round has commenced, Equator can expect to receive a return on its
investment in the acquisition of 2D seismic data that will be licensed to exploration companies looking to
participate in the EEZ Licensing Round.
AI
