Blue Creek concession update. This concession is in northern Belize, with the BNE property southwest ofits location if my memory serves me correctly: Interesting reading: Oiljob:
"New World O&G IDs Prospects in Belize
New World O&G plc|Tuesday, September 20, 2011
BelizeNew World O&G has received an update to the Competent Person's Report ('CPR') from RPS Energy ('RPS') further highlighting the prospectivity and reducing the geologic risk of the Blue Creek Project, consisting of two onshore concessions located in the productive Petén Basin in Northwest Belize ('Blue Creek' or 'the Project'). The update considers the significant progress made since the publication of the CPR on June 8, 2011, specifically seismic acquisition, processing, interpretation and application for the formal assignment to New World of a 12.5% working interest in the Project, following the completion of Phase 1 seismic.
Key findings of the Update to the CPR:
Likelihood of discovering hydrocarbon accumulation at Blue Creek upgraded to 1 in 8 (previously quoted as in the range of 1 in 8 to 1 in 12) following completion of Phase 1 of seismic
Four leads/prospects identified, to be further delineated in Phase 2 of the seismic - all located in a zone that produced oil shows on wells on the adjoining license area
Seismic expression of structures so far identified look very similar to the producing Spanish Lookout oil field in the south
Improved quality of the seismic increases confidence in the presence of structural features related to the regional fault trend - five 2D lines covering 68.2km of the 170km program shot
New seismic data are of good quality and demonstrate structural relief, particularly in the dip-direction - this runs NW-SE across the license
License remains a good opportunity to access early stage exploration in a highly prospective area - license located in the productive Petén Basin in Northwest Belize
Plan to acquire further seismic in a phased approach is highly appropriate and should enable leads/prospects to be developed into drillable prospects
Intention to elevate the prospectivity of one or more leads/prospects to a drillable status on completion of the 170 km 2D seismic program by 2Q 2012
New World CEO William Kelleher said, "The results of Phase 1 seismic are very exciting and further underpin our belief that a working hydrocarbon system exists in the Blue Creek license. We are equally excited that we have met our primary objective in Phase 1 which was to increase the level of prospectivity of the license by reducing the associated geologic risk through the seismic interpretation process. RPS's updated CPR reports a reduction in geologic risk of the license and now expresses the subsurface potential to leads/prospects in place of just leads, as used at the time of the CPR in June. They further acknowledge the correlation and resemblance between the prospectivity and geologic potential in Blue Creek to that of the nearby producing Spanish Lookout Field which was also one of our key objectives in Phase 1.
"We are continuing to move forward with Phase 2 of the seismic program where our ultimate aim is to continue to reduce the geologic risk as far as we can until the logical step is to drill."
The conclusions section of the Update to the CPR is reproduced in its entirety below:
New World O&G, through its subsidiary New World Oil and Gas (Belize Operations) Ltd. ("NWB"), is now the Operator of two exploration concessions (Blue Creek and Blue Creek South - held under BCE PSA) onshore NW Belize. Following the completion of Phase 1 (68.2 km) of a three-phase 2D seismic acquisition program (a minimum of 170 km), NWB and BCE have requested approval by the Government of Belize for the earned assignment of 12.5% working interest in the license area which is expected to be granted by the end of September 2011.
The Phase 1 seismic data (BCE-2011survey) have been carefully acquired and processed to help overcome surface noise and a relatively weak reflectivity section. The resultant data is of better quality than was achieved in 2008 and four leads/prospects have been identified based on the data acquired to date. Two further phases of acquisition are planned in order to further delineate the existing leads/prospects and also to step out seismic coverage across the entire exploration area on the BCE license blocks.
In RPS' opinion NWB/BCE's phased approach to the seismic acquisition is enabling the learning and experience to be progressively applied such that the value of the data is maximized. The Phase 1 seismic data shows some encouraging features, particularly in the dip direction which has a similar seismic expression as dip lines over the producing Spanish Lookout oil field to the south.
As detailed in the previous CPR, the license is favorably located in an under-explored area and is considered to be highly prospective, albeit at a very early stage of maturity. In our opinion, this remains a good opportunity to access early stage exploration in a very prospective area.
The plan to acquire more seismic in a phased approach is very appropriate and should enable certain subsurface leads/prospects to be matured into drillable prospects.
The forward commitments are manageable and appropriately scaled for this level of exploration maturity.
It remains inappropriate to estimate potential in-place or recoverable volumes. However, the Phase 2 seismic may allow tentative estimates to be made if the leads/prospects continue to mature.
Key risks remain the identification of subtle traps and the timing of maturation/migration relative to trap formation. Source is low risk, migration itself is low risk, seal is low risk and reservoir presence and effectiveness in the Yalbac Y1 and Y2 is considered low risk.
RPS considers that the improved quality of the seismic has increased confidence that there are structural features related the regional fault trend. The next phase of seismic is designed to further delineate these features and be able to demonstrate reasonable confidence in 3-way dip closure against the identified faults. Consequently, RPS now assigns a reduced risk of approximately 1 in 8 (12.5%) to the current likelihood of discovering a hydrocarbon accumulation in the Blue Creek concession. This is an appropriate level of risk for a new play in an emerging area. If the planned further acquisition of seismic is successful in the identification of robust structures, this will reduce this risk to something less than 1 in 8.
RPS will continue to provide updates to the CPR as New World complete their future acquisition and interpretation of additional 2D seismic and combine this data with pre-existing data in an effort to enhance the subsurface interpretation and further quantify and reduce risk. Ultimately, New World intends to elevate the prospectivity of one or more of the BCE block leads/prospects to a drillable status upon completion of the 170 km 2D seismic program. Once seismic operations are complete and prospects have been identified, volume estimations and scoping economics will be forthcoming in the future updates to this report. The intention is to mitigate the risk as much as possible until the next logical step will be to drill wells."
P.S. Ya gotta love the techno mumbo jumbo language these guys use. This was one of Rigzone's recent news stories.
