Pura Vida awarded Gabon offshore oil and gas block
Date
1/15/2013 1:34:34 AM
(MENAFN- ProactiveInvestors - Australia) Pura Vida (ASX: PVD) has been awarded an 80% operating interest in the Nkembe block offshore Gabon where oil had been encountered in previous wells.
The company made an upfront payment of $US9 million and committed to a work program that includes at least one well in the first phase to secure the production sharing contract over the block.
Nkebme covers an area of 1,210 square kilometres in water depths of between 50 and 500 metres about 20 kilometres off the coast of Gabon in the oil prone Gabon Basin.
The block is close to many producing oil fields, including several fields operated by French supermajor Total, the largest operator in Gabon.
Pura Vida is targeting reservoirs located both above and below the salt layer that are productive in the Gabon Basin.
The reservoirs above the salt have been producing since the 1950's when Elf Aquitaine (now Total) began exploration, while the reservoirs below the salt have been producing since the 1960's when Shell (LON: RDSA) began exploration in the onshore and southern offshore of Gabon.
New technologies in seismic acquisition and processing have overcome the challenges caused by salt features, leading to a resurgence of industry interest in sub-salt plays, and resulting in a number of major discoveries in recent years.
Pura Vida will apply these technologies to unlock the sub-salt potential within the Nkembe block.
As part of the terms of the acquisition, Pura Vida has acquired existing well and seismic data on the Nkembe block. It will also purchase 845 square kilometres of previously acquired 3D seismic data from seismic contractor, WesternGeco.
Acquisition terms and work program
The term of the exploration period is for seven years, divided into two phases.
During the first four-year phase, Pura Vida will acquire at least 550 square kilometres of 3D seismic and drill an exploration well to a depth of 2,000 metres.
The specialised seismic data is designed to better image the reservoirs below salt. This will include reservoirs below both shallow and deep salt layers.
Pura Vida expects to commence acquisition of the new seismic data early in the second half of 2013.
Following completion of the first phase, Pura Vida has the option to elect to enter the second phase.
This will involve the acquisition of a further 550 square kilometres of 3D seismic and the drilling of two exploration wells to a depth of 3,000 metres.
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