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FirstAfrica Provides Operational Update for EOV Field

Source: www.gulfoilandgas.com 7/10/2006, Location: Africa

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FirstAfrica Oil announces the results of the EOV-4 sidetrack well drilled from EOV-4 (drilled in February 2006) within the East Orovinyare Oil Field (“EOV Field”), offshore Gabon. EOV-4 could not be tested due to mechanical difficulties and this sidetrack has been drilled to a location 200m south of the EOV-4 location. The sidetrack was initiated on 26 June and was drilled into the southeastern sector of the EOV Field utilizing the GlobalSantaFe Adriatic VI jack-up rig.

The sidetrack encountered no mechanical difficulties and the oil-bearing Batanga reservoir was entered at a measured depth of 3,840 feet. The reservoir was logged and preliminary analysis indicates a gross oil reservoir section of 280 feet (measured depth). Net sandstone and dolomite reservoir is estimated to be approximately 98 feet thick (measured depth). Drill stem testing from 5-7July was successful and oil flowed through a 160 feet slotted liner at a maximum instantaneous flow rate of 1704 bopd. The gravity of the oil was measured to be 38 degrees API and the H2S content was zero. Due to dolomitization, the porosity at this location is lower than found elsewhere in the EOV Field. The resulting ‘fracture porosity’ encountered in this sidetrack is considered to be localized and acid fracture treatment is intended to significantly enhance the production rate. It is planned that this treatment will be applied prior to final completion of the well.

The Company's field development plan calls for production to start from early next year from four wells producing to a single unmanned platform tied back to a Floating, Production, Storage and Offloading Vessel (FPSO). The platform construction and additional infrastructure development is moving in parallel with the drilling programme and installation of the platform is planned for 4Q 2006.

FirstAfrica CEO Robert Kirchner said, 'We are pleased with the progress in our development drilling programme which is scheduled to be completed at the end of July. EOV-4 has now been suspended and the Adriactic VI rig is now preparing to drill the EOV-7 development well, the final well in the current sequence of development wells.'

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