Oranto Petroleum has begun its exploration program through an agreement with BGP Inc. South Sudan. The deal comes just eight months after Oranto signed its exploration and production sharing agreement (EPSA) with the government, and kicks off its three-year first exploration commitment period.
Following a competitive tender process, geophysical specialist BGP was selected to perform an airborne gravity and magnetic survey of the contract area, Block B3.
Oranto signed its EPSA with the Ministry of Petroleum in March 2017, committing $500 million to the development of the 24,415-square kilometer acreage.The sub-basins on Block B3 run parallel to the Jonglei Sub-basin which itself is an extension of the proven oil prone Muglad Basin to the northwest and estimated reserves in place of more than 3 billion barrels of oil. Clastic reservoirs are thought to exist of Cretaceous age in tilted fault blocks associated with basin formation. The world class Abu Gabra lacustrine source rock is anticipated being present at depth within these rift systems.
“The development of our assigned contract area and fulfillment of our contractual obligations in South Sudan is a priority for Oranto. The government and the Ministry of Petroleum have been working very hard to create an enabling environment for investors and we are fortunate to benefit from their assistance. South Sudan is a nation with a great future, and we are proud to be a part of that, contributing with a purposeful, well resourced exploration and development campaign,” said Prince Arthur Eze, Founder and Executive Chairman of Oranto Petroleum.
Block B3 PSA has a six year exploration period and Oranto is the Operator with 90% equity, Nile Petroleum holding the other 10%. The exploration period is divided into three commitment periods of 3 years, 2 years and a single year in the second and last optional commitment period. Work program obligations during the initial three year commitment period is limited to database building and interpretation studies. There is a drilling commitment in each of the two optional commitment periods. Two unexplored sub-basins (Yirol and Tali) have been inferred on block from previously acquired gravity data. Trap types are anticipated as Cretaceous titled fault blocks on trend with the Kenya extensional rift system.
Atlas Petroleum International and Oranto Petroleum, the sister companies of the Atlas Oranto Group, own and operate 22 oil and gas licenses in 11 African jurisdictions: Benin, Equatorial Guinea, Ghana, Liberia, Namibia, Nigeria, São Tomé and Príncipe and the Joint Development Zone, Senegal, South Sudan and Uganda. Founded in Nigeria in 1991, the group is Africa’s largest indigenous explorer by acreage, and with petroleum contracts signed in South Sudan and Uganda in 2017, it is rapidly growing its East Africa portfolio.