Seismic data on the JDZ and EEZ. (message from RB Rancho)
(From our competitors in the zone.)
Seismic data for the region indicates widespread prospectivity in the waters of São Tomé and Príncipe. In addition, the close proximity of São Tomé and Príncipe’s offshore waters to the proven hydrocarbon systems in the adjacent countries of Nigeria, Cameroon, Equatorial Guinea and Gabon also suggests the potential for hydrocarbons. Recent discoveries in the region include the Akpo field (Nigeria) with estimated reserves of 1 billion barrels, the Agbami field (Nigeria) with estimated reserves of 710 million barrels, and the Zafiro field (Equatorial Guinea) with estimated reserves of 1 billion barrels.
Operations
Through its wholly owned subsidiary, Aqua Exploration Limited (Aqua), Equator has the right to enter into production sharing contracts (PSCs) with the Government of São Tomé and Príncipe on two concession blocks of its choice in the EEZ. In addition, Aqua has the option to participate with the Government, up to a maximum of 15 percent, in any Government participating interest options in the EEZ. Furthermore, Equator has interests in seismic data acquired in the JDZ and EEZ.
Equator has reviewed existing seismic data for the region and has now finalised the interpretation of 8,000 km of 2D seismic acquired in the EEZ. The interpretation shows widespread prospectivity and hydrocarbon potential similar to deepwater blocks in Nigeria and Equatorial Guinea. Four play types have been identified with the presence of a number of leads and prospects.
Equator plans to select two option blocks and commence negotiations on PSCs with the Government for each block by the end of the year. Once the PSCs are finalised, Equator then intends to undertake a 2D and 3D seismic programme on each block prior to farm-out and drilling of the two blocks.
In addition, Equator will continue to acquire, market and sell 2D and 3D seismic data.
Equator is also aggressively pursuing other opportunities in the region and negotiations are at an advanced stage on several acquisition opportunities.
