Ebola virus delays Liberia drilling

OE Staff Jul 23, 2014

West Africa-focused Canadian Overseas Petroleum Limited (COPL) says drilling plans for offshore Liberia have been delayed due to an Ebola virus outbreak in the region.

The firm is in a partnership with ExxonMobil (operator and 83% equity holder) on Block LB-13 offshore Liberia. COPL, which holds the remaining 17% equity) said recent technical work had added "substantially to the geologic model of the block," and that new prospects had been mapped and identified.

However, it said: "Drilling on Block LB-13 has been delayed due to the recent Ebola virus outbreak in the region resulting in a reduced presence of expatriates in country."

Arthur Millholland, Chief Executive Officer, commented: "We continue to make significant progress with the technical evaluation of Liberia. Whilst the possible delay in the commencement of drilling is regrettable, the safety of the partnership's staff is paramount and we are confident that staff numbers in country will return to normal levels in the near future."

Block LB-13 covers about 2500sw km. Drilling targets identified by COPL are Cretaceous turbidite sand stratigraphic traps, says COPL. COPL has a license for 3D seismic shot on the block in 2010. COPL says this appears to show similarities to recent deep water oil discoveries made offshore Ghana and Sierra Leone. COPL commissioned an independent reserves evaluator to conduct a Gross Prospective Petroleum Resource Report for Block LB-13. The evaluator reviewed the available seismic and chose the top 13 prospects on the block to derive a statistical aggregate number of 2.6 billion barrels of gross recoverable oil at the P50 (best estimate) probability level.

COPL is also working on the West Africa Transform Margin (WATM) and has submitted a bid, as the operator of a consortium, for a block in the WATM. COPL said partners in the consortium include a prominent producing independent African energy company and that more information would be available in Q3.

In Nigeria, an option on OPL 2010, in 60m water depth in the Niger Delta, has expired and the company continues to evaluate the block. COPL is evaluating and negotiating on several other assets in Nigeria, it said.

COPL is in concurrent discussions to acquire two offshore blocks each with appraised oil discoveries with contingent resources based on historic drilling results.

Millholland added: "The company continues to be motivated by the opportunity that exists in West Africa for exploration and development of the WATM as regional companies look to partner with experienced management teams.