Ophir Energy's Silenus East-1 well in Block R, offshore Equatorial Guinea (central west Africa), has made a gas discovery - and helped support plans for an expanded FLNG project for the area.
Nick Cooper, Ophir's CEO, says the additional resources at Silenus East-1 confirm sufficient resources to expand the Block R FLNG project from a 2.5MM tonne per annum (Tpa) project to a 3MM Tpa project.
Ophir, which is a partner with BG Group in Tanzania, where an LNG project is also being considered, hopes to sign gas terms on Block R in Q4 this year, with an aim for first gas in 2019.
Silenus East-1 was drilled using the Vantage Titanium Explorer drillship. A 67m gross gas column was encountered in the primary target with high quality reservoir in line with pre-drill expectations. Ophir estimates the find at 405Bcf mean recovered of gas, taking the amount estimated in the broader Silenus area to about 1.2Tcf.
Following the Silenus East-1 and Tonel North-1 well results, the total estimated mean recoverable resources for Block R, including the discoveries and adjacent derisked volumes, are now 3.4Tcf, comprising 1.3Tcf from the Fortuna Complex, 1.2Tcf from the Silenus Complex, 0.5Tcf from Tonel and 0.4Tcf from the other smaller discoveries.
The well was deepened to test a secondary high risk oil target and encountered high quality, but water-wet, reservoirs with weak oil shows.
The drillship has now moved to complete the Fortuna-2 appraisal well, where Ophir will conduct the first flow test in Block R.
Nick Cooper, Ophir's CEO, said: “The Silenus East well result has confirmed sufficient incremental volumes for Ophir to be able to expand the Block R FLNG project from a 2.5 million metric tonnes per annum (Tpa) to a 3MM Tpa project.
"This is important in that it provides economies of scale that increase the value of this already economic project. First gas from the FLNG project is expected to be in early 2019 and this timetable is expected to be confirmed when we achieve the milestones of signing the Block R gas terms and confirming the midstream partners during Q4 2014.
"At current equity levels the Equatorial Guinea FLNG project represents a potential net 2.4MM Tpa to Ophir from early 2019. In comparison Tanzania represents a net 2-3MM Tpa from late 2021.”
Ophir has an 80% interest in offshore Block R which is located in the south-eastern part of the Niger Delta complex close to numerous significant oil and gas discoveries in the Nigerian sector. The Block lies in 600-1950m water depth.
The company acquired the Block in April 2006 and has a 100% paying interest. Ophir is carrying the state oil company (GEPetrol) through exploration and appraisal for its 20% beneficial interest until the date of a declaration of commerciality.
Six wells have been drilled to date in two drilling campaigns in 2008 and 2012. The first campaign made two gas discoveries (Lykos and Fortuna), out of the three wells drilled with three successful gas discoveries (Tonel, Fortuna East and Fortuna West) in the 2012 campaign. The last two wells appraised the Fortuna Complex and made further discoveries in secondary targets.
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