PROJECT
PORTFOLIO
UPDATE
S
OCTOBER 2014
ENVOI – DELIVERING ENERGY OPPORTUNITIES
Envoi was founded in 2000 to provide a unique brand of A&D marketing and
bespoke technical and commercial project documentation. Our specialist skills
and global network have seen us become a leading A&D consultancy for the
international upstream oil and gas industry.
DELIVERING SERVICES
Upstream Divestments
Envoi’s main area of activity is project divestment. This ‘sell-side’
service includes the marketing, management and closing of upstream
asset sales, from a corporate divestment to a straight sale of
production. We also organise and manage farmouts, helping our
clients identify new partners for interests in exploration or appraisal
and development projects, which typically involve drilling.
Upstream acquisitions
Envoi’s project acquisition or ‘buy-side’ service sees us tap into our
global network to identify appropriate opportunities for upstream
investment. Investors from around the world trust us to be their ‘eyes
and ears’, cost-effectively helping them source new projects to buy
that best fit their criteria.
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Identifying potential new sources of capital through our global
network of oil and gas industry and financial contacts, and our
introduction service.
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products and services for third-party clients.
Our global reach
Over two decades in the world of upstream A&D, Envoi has forged
lasting relationships with the industry’s leading players and decisionmakers, building a global network of several thousand high-quality
contacts along the way. These include upstream oil and gas
organisations of all sizes, as well as financial investors in search of
upstream opportunities. By continually meeting and getting to know
new contacts, we can better manage the evolving demands of both
our network and the markets.
DELIVERING ON OUR STRENGTHS
Country marketing campaigns
Thanks to our track record in marketing international upstream
projects, governments and national oil companies can rely on Envoi to
promote the hydrocarbon potential of their respective countries: an
important way to encourage new investment.
With access, through Envoi, to a global network of contacts, our
country promotion services cover everything from initial strategy
planning to the coordination of global marketing campaigns, including
technical and commercial reviews and the preparation of appropriate
documentation. We can also organise roadshows or presentations at
industry conferences for specific license rounds.
Presentations and reports
Whatever your upstream project, it’s always vital to communicate its
potential with clarity and confidence. Whether you’re an oil and gas
company or a government, managing a start-up, initial public offering,
raising funds for a new project or simply updating your investors,
Envoi can help prepare a clear and concise presentation of your
activities.
Strategic portfolio advice
As well as providing specialist marketing skills, Envoi can meet your
international A&D needs with a range of portfolio advisory and
management services. These include:

Helping both investors and oil and gas companies strategically
plan for and enter a new international ‘core area’ – leading to the
acquisition or sale of projects within a specific portfolio.
International reputation
The result of over two decades’ involvement and our collective
expertise in international upstream A&D marketing.
Global network of upstream
decision makers
Lasting relationships with the people that matter.
Unique style
Envoi’s detailed technical and commercial reviews rapidly add value to
projects, while our documentation ensures clear and positive
presentation.
Flexibility
Bespoke services tailored to fit specific opportunities and client
needs.
Expert associates
Established associations with specialist consultants, retained for
specific projects as required.
Commitment
Our fees are structured according to the potential success of the
project.
ACTIVE PROJECTS
ACTIVE PROJECT LOCATOR
AFRICA
AFRICA
SOUTH AFRICA
TUNISIA
Offshore / Exploration
Onshore Ghadames Basin / Exploration
Envoi has been commissioned by the UK based, AIM listed Trinity
Exploration & Production plc to assist in finding an experienced
offshore operator for its large (10,800 km2) 100% owned and
operated Pletmos Inshore Block in the underexplored Outeniqua
Basin, offshore South Africa. The Block is located in the Pletmos subbasin of the Outeniqua Basin, in water depths ranging from 10 to 150
m and adjacent to the Ga-A gas field discovered in 1968. The licence
was awarded to Trinity in April 2012 for an initial 3 year exploration
period.
Two independent plays have been identified by Trinity on newly
reprocessed seismic data with four prospects mapped in a new ‘postrift’ play of Cretaceous Barremian age turbidite sands and a further
two prospects in the basin floor fan sequence. The presence of
effective hydrocarbon migration into the Block is already shown by
the 1988 Ga-V1 well. This targeted the Valanginian ‘syn-rift’, but was
not tested due to lower permeability, however modern completion
techniques are expected to deliver commercial production rates.
The combined mean unrisked resource potential of the PIB block is c.
2.6 TCF if both ‘post-rift’ plays are proven plus the untested potential
of the Ga-V1 tight gas.
The outstanding commitment for this initial period consists of 2,000
km of new 2D seismic, although Trinity’s detailed work to date
suggests drilling a well is potentially justified instead of new seismic.
Trinity would like to find a qualified operator willing either to fund the
infill seismic obligation work programme or one exploration well to
earn a majority working interest in the Block, before the current term
expires in April 2015.
Independent Resources, the UK-based, AIM listed company, has
commissioned Envoi in its search for a new partner to join in its 2,252
km2 , 86 % owned and operated Ksar Hadada exploration permit, in
the Ghadames Basin, onshore Tunisia.
The block contains the proven Ghadames Lower Palaeozoic system,
whose prolific Silurian source has provided in excess of 90% of the
discovered hydrocarbons (30+ billion barrels of oil equivalent) of the
vast basin, which occupies areas of Tunisia, Libya and Algeria.
Exploration of the Ksar Hadada area began in the late 1950s and
since then 1,800 km of 2D seismic data of various vintages have
been acquired and nine wells have been drilled on the block. All but
one of the wells confirms the presence of Silurian-sourced mature oil
in the block. There is good fault controlled structuring with fault
throws of 200+ m dating mainly from the Late Carboniferous
Hercynian event with later adjustment by the Early Cretaceous
Austrian transpression. Oil migration postdates this and oil and gas
have been recorded in Ordovician, Silurian and Permian sandstones.
Three wells confirm the presence of a significant oil accumulation
(Sidi Toui) in the Upper Ordovician reservoir with unrisked STOIIP of
425 mmbo and recoverable reserves of 64 mmbo (CPR report March
2014). A similar undrilled prospect sits adjacent to this pool and
there is additional Silurian unconventional upside potential in the
permit.
Independent Resources is seeking a partner to participate in the next
phase of exploration and appraisal, which carries a commitment to
acquire 200km2 3D seismic data, horizontal sidetrack and test a Sidi
Toui discovery and drill an exploration well in the adjacent prospect,
at an estimated cost of US$ 13 million.
View project
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AFRICA
AFRICA
KENYA
TUNISIA
Onshore Lamu Basin / Exploration
Offshore / Appraisal and development
Envoi has been commissioned by Milio E&P Limited, the Dubai-based
company, through its wholly-owned subsidiary Milio Exploration &
Production (Kenya) Limited, to assist in finding a suitable partner to
join them in progressing the exploration of their two adjacent
operated Blocks L6 (60%) and L20 (100%), onshore Kenya, on the
highly prospective East African margin. The work commitment for the
Block L20 first exploration phase requires the acquisition of 1,000 km
2D seismic although, following Milio’s 60% farmin to an adjacent
onshore part of Block L6 through a deal with FAR in early 2014, the
Government has approved both a reapportionment of the L20 1,000
km seismic obligation with 600km to be acquired in L20 and the
outstanding 400 km in the onshore part of L6 and extended the
obligation period to May 2016.
Milio’s work to-date includes a 7,500 km line FTG survey (Arkex), a
satellite and structural study (CGG/Fugro), geological field work and
the acquisition of legacy seismic and well data in the region,
confirming the hydrocarbon potential of the L6 and L20 area which
lies in the under-explored onshore Lamu Basin. Only 16 wells have
been drilled in the basin, 8 of which in the 1960s and 70s by
BP/Shell. Few penetrated below the Tertiary but nonetheless
encountered frequent shows, including liquids in potential OligoceneEocene reservoirs. The Kipini-1 wildcat, drilled in 1971 to a depth of
3,663 m by BP and Shell within what is onshore L6, encountered gas
shows in the Tertiary and Upper Cretaceous. No wells have yet been
drilled in the L20 Block. The old wells, supported by outcrop geology,
show that several potential reservoir units are developed through the
onshore Cretaceous and Tertiary sections. A large rollover structure
immediately updip of the main proven source kitchen, straddles the
L20/L6 border, covering an area of some 180 km2 and estimated
capable of containing prospective resource potential exceeding 1
billion bbls oil (or >2 TCF gas equivalent). This prime prospect is
targeting both the Kipini Sst (Eocene) and Kofia Sst (Upper
Cretaceous) targets between 1,500-2,500 m deep. A previously
unrecognised back basin area, also undrilled, lies to the west of the
well-defined Lamu Basin boundary fault offering additional potential,
although there is no seismic coverage of this area at the present
time. Three other L6 structural prospects have been mapped on the
reprocessed 2D seismic data with individual resource potential
ranging from 150 – 200 mmbor (or 600+ Bcf equivalent) each, that
are all mapped close to the old Kipini-1 well that is now interpreted to
have been off-structure, although it did encounter good gas shows.
Milio are seeking a partner interested in earning part of their interests
in their two Blocks in return for a contribution to their past costs, plus
funding the 1,000km modern 2D seismic survey estimated likely to
cost US$ 11 million, plus one well in the onshore part of L6,
estimated likely to cost US$ 14 million, before May 2016.
ADX Energy has commissioned Envoi in its search for a new partner
to earn a majority stake in their 100% owned and operated
Kerkouane Licence, offshore Tunisia and contiguous Pantelleria
Licence in Sicilian waters, across the maritime border with Italy, a
combined area of around 5,000 km2 situated in the Sicily Channel just
north of the very productive Gulf of Hammamet.
The acquisition and processing of modern 3D data has been the key
to unlocking the prospectivity of ADX’s acreage, which has been
largely unexplored due to the poor 2D resolution during the 20 years
before ADX's involvement. The new 'Dual Sensor' 3D has, for the first
time, properly defined large, subtle and complex closures in the
underexplored foothill and foreland play fairway that lies immediately
north of the proven / producing Pelagian Basin and in front of the
regional Atlassic uplift to the north. Significantly, this is analogous to
the structural position to some of the very large proven / producing
Italian fields on trend in Italy. In addition to the stacked multi-million
bbl prospectivity in the primary undrilled Dougga-West exploration
prospect, ADX has been able to accurately map the potential of both
the pre-existing Dougga gas condensate field discovered by Shell in
1981 and the Lambouka discovery drilled by ADX in 2010.
Independent combined resource estimates show a ‘mean’ potential of
some 300+ MMboe recoverable for the two discoveries alone. ADX
entered the first three year renewal period of the Tunisian licence in
February 2011 and is now looking for a new partner to participate in
a drilling programme including a well to test the large Dougga-West
prospect, plus an appraisal well on the Dougga field or re-entry,
sidetrack and testing of the Lambouka-1 discovery.
» View project
Update: In August 2014, the Tunisian Government approved a two
year extension of the Exploration period to February 2016.
View project
»
AFRICA
ARCTIC
CAMEROON
GREENLAND
Onshore Douala Basin / Exploration
Offshore Baffin Bay / Exploration
Envoi has been commissioned by Bowleven plc to assist in finding a
partner for their 100% owned Bomono Permit, situated in the
underexplored, but highly prospective area of the Douala basin,
onshore Cameroon. Bowleven’s most recent work, including 500km
modern infill seismic acquired in 2011, has enabled the more accurate
mapping of an existing discovery and the identification of follow-on
prospects and leads including:
Envoi has been commissioned by Cairn Energy plc to assist its wholly
owned subsidiary, Capricorn Greenland Exploration A/S, in finding a
partner to participate in the ongoing exploration of their large (8,170
km2) Pitu (2011/13) Block, situated within the Melville Bay Graben
(MGB) that dominates the North Baffin Bay area, offshore NW
Greenland. Cairn’s extensive technical work has confirmed this area as
a highly prospective but as yet undrilled frontier basin where modern
2D and 3D seismic, together with seabed sampling and coring, has derisked the main Cretaceous and Tertiary petroleum systems.
Significantly, the absence of Palaeogene flood basalts in the North
Baffin Bay area contrasts with the situation in the offshore Nuussuaq
Basin to the south where a number of unsuccessful wells have been
unable to penetrate the prospective Cretaceous section below the
thick basalt cover.
1. A large Palaeocene Closure known to contain hydrocarbons
discovered in stacked reservoirs by wells drilled in the 1950’s
including Bom-101, in which a modern CPI shows moveable
hydrocarbons, and Bom-103 which blew out and was only controlled
after two relief wells were drilled and tested 1.3 MMcfgd (60-65° API)
gas condensate at pressures up to 1,355 psi.
2. Additional undrilled Tertiary Prospects proximal to the discovery
and linked to the surface seeps on the Block.
3. The eastern extension of the Cretaceous Play, that is so productive
offshore to the west in deep water, where the Play comes onshore
Cameroon and is already productive in the Logbaba field. This lies
immediately south of the Bomono Block where the Cretaceous
remains totally untested.
A total of 10 structural and stratigraphic Tertiary and Cretaceous
closures have so far been defined. Initial plans are advanced to drill
the shallow Zingana Paleocene prospect with stacked sand potential
estimated capable of P’mean’ reserves of 377 Bcfr & 14 MMbcond.
(and an upside of 1Tcf and 45 MMbcond).
Drilling two Tertiary wells (est. US$ 16 million each) would satisfy the
work obligations before the permit expires in December 2014.
Scoping economics indicate that a Tertiary discovery of 3+ MMbor or
60+ Bcfr would be commercial. Bowleven assess that potentially
much larger Cretaceous potential needs the acquisition of additional
infill seismic specifically tuned to further improve the data resolution
at depth and enable upgrade to drillable status. Reserve potential of
just the 3 primary leads mapped on the existing data suggest
combined P50 inplace potential of 250+ Bcfg and an upside of 900
Bcfg.
Bowleven is offering up to half their interest in the Block for the
funding of the two Tertiary wells being planned for 2014 with an
option to participate in upgrading the Cretaceous play.
Update: An agreement has been signed in June 2014 for a 20%
interest in the Bomono Permit in return for a drill-to-earn
contribution to the planned Tertiary wells. Additional equity in the
permit is available to a suitable partner.
» View project
Cairn’s work has confirmed the central part of the Pitu Licence contains
a Mesozoic and Tertiary infill of at least 15km and is sufficiently far
north not to have been influenced by the volcanics found further
south. The extensive sediment fill also appears to contain a prolific
hydrocarbon kitchen that has charged the surrounding area based on
evidence from oil seeps, seabed geochemical and microbial anomalies
and DHIs and AVO anomalies observed on the new seismic. The
Melville Bay High (“MBH”) horst block, which occupies the south
western part of the Pitu Licence and bounds the MBG to the east, has
formed a regional migration focus since the Late Cretaceous as it is
ideally located with mature source rocks in the surrounding synclines
and on the flanks, as well as beneath the MBH to charge the high poroperm Tertiary and Cretaceous sands predicted to be present along its
length. These reservoirs have already been confirmed from cores in
shallow boreholes on the northerly extension of the MBH and outcrops
onshore to the south and on the conjugate margin to the west.
The Py prospect is the largest of the ‘drill ready’ prospects, which is
mapped along the MBH as a shallow 4 way dip closure of over 400 km2
and a vertical relief of 300m at the main Early Tertiary reservoir
objective. This alone is conservatively estimated to contain unrisked
prospective resources of over 3 billion boe, which have also been
verified by an independent CPR. Significantly, the Py prospect also
exhibits strong amplitude and AVO anomalies on structure along with
the geochem and microbial oil anomalies from seabed samples.
This volume would be more than commercial even in such a remote
area given Greenland’s favourable commercial terms. From an
operational point of view, metocean conditions are generally benign in
the summer months in the Pitu Licence area with a sea ice free window
of 3-5 months. The 500m to 750m water depth of the Pitu block is
also well below the largest iceberg grounding depth, an important
consideration for any development. Capricorn would now like to find a
partner willing to contribute to recent past costs and potentially a
subsequent well to earn part of its 56.875% working interest in the
Block. Capricorn is partnered in the block by Statoil and Nunaoil, the
Greenland state oil company, which is carried for 12.5%.
» View project
UNITED KINGDOM
EAST MIDLANDS
Onshore / Production and development
Envoi has been commissioned to assist in the corporate sale of
Altaquest, the privately owned UK based company and its sole 100%
owned and operated EXL141-2 production Licence, onshore UK in the
East Midlands oil province. The Licence contains the Newton oil field,
which has produced in excess of 27,000 bbls from the Carboniferous
at an average of 50 bbl/d from one well since it was discovered in the
late 1990s.
The production was originally shut-in in 2000 due to the low
commodity price and increasing water cut, but put back on production
in 2007 for a few months at around 15 bbl/d, until the 50% water cut
and costs of trucking to facilities at a nearby field for disposal were
uneconomic. Significantly, recent interpretation of the modern 3D
data over the field have shown that the existing well was drilled on
the flank of a large roll over closure which remains undrilled at the
crest, where seismic amplitude also suggests improved reservoir
potential. If a second crestal well was successfully drilled then the
No1 well could be used as a water injector to maintain reservoir
pressure. The remaining P2 reserves potential is estimated to be
around 700,000 bbl oil rec. but could have P3 reserves potential as
high as 2.1 MMbor.
The Newton field is also surrounded by four additional Carboniferous
leads and prospects as defined on the existing 3D seismic, which add
another 2.5 MMbor reserve potential. Altaquest also has significant
tax losses and unclaimed exploration expenditure capable of
offsetting future tax on profits from future production revenues.
The owners of Altaquest wish to divest the company to concentrate
their resources in their other East Midlands licences.
» View project
ENVOI LIMITED
1b Walpole Court
Ealing Green
London
W5 5ED
United Kingdom
T: +44 (0)20 8566 1310
E: [email protected]
I: www.envoi.co.uk
Disclaimer: The information in this memorandum is for guidance
only. Neither Envoi Limited (Envoi), or its client(s) (Client) nor any
director, officer or employee of Envoi or its Client(s) accepts
responsibility for, or makes any representation or warranty, express
or implied, with respect to the accuracy or completeness of the
information, estimates and opinions contained in this document.
This document does not constitute an offer, and neither this
document nor the information, estimates and opinions contained in
it shall form the basis of any contract. Companies wishing to acquire
an interest in the project will be expected to make their own review
of all documents and form their own judgments entirely.