Africa Oil Corp says that a new independent assessment of the Company’s Contingent Resources in the South Lokichar Basin located in Blocks 10BB and 13T in Kenya has been completed by Gaffney, Cline & Associates increasing the total 2C (best) gross contingent resources by 67% to 616 million barrels of oil and total 3C (high) gross contingent resources increased 52% to 1.29 billion barrels of oil in the oil fields discovered to date in the South Lokichar basin.
Africa Oil adds that the Prospective Resource estimates outside of the field areas in the South Lokichar Basin have not been updated and it is planned to do a comprehensive update of all resources on all properties at year end.
In the new estimates Ngamia continues to lead as the largest field discovered to date holding over half of all the discovered oil in Northern Kenya while Amosing and Agete are at a distant 2nd and 3rd positions respectively.
According to the high estimates released by Africa Oil Ngamia field could as well as be holding as much resources as 660 million barrels of oil.
The two tables below show a breakdown of the the gross 2C (best) and 3C (high) estimates per field.
President and Chief Executive Officer at Africa Oil Keith Hill says the new estimates exceed the threshold for development and we are targeting development sanction at the end of 2015/early 2016.
“We continue to aggressively explore and appraise the basin with three rigs operating and are currently acquiring a large 3D seismic survey in the west and north of the basin. The key factors to address to increase these resources over the next year will be related to recovery factors and reservoir connectivity and the early appraisal results at Ngamia and Amosing provide encouragement on the lateral continuity of the Auwerwer sands,” he said.
He added that the upcoming extended well tests at Ngamia and Amosing and the ongoing appraisal and core analysis programs will provide additional data to support this understanding even as the company and its partner Tullow Oil have an exciting exploration portfolio on trend with the South Lokichar Basin and will have drilled six new basins by the end of 2015.
“We are confident that our early successes will be repeated in at least one additional new basin,” he concluded.
Africa Oil’s holdings in the South Lokichar Basin comprise non-operated 50% working interests in Blocks 10BB and 13T in Kenya while Tullow Oil holds a similar working interest and is the operator in the blocks.