Gulf Oil and Gas accountACCOUNT

Afren Enters Into Farm-in Agreement With IEL For Participation In The Ofa Field

Source: www.gulfoilandgas.com 5/8/2007, Location: Africa

Share |
Afren plc has entered into a Farm-In agreement with Independent Energy Limited ("IEL") for an interest in the Ofa Field, located in the Northern Niger Delta. Afren has entered into an agreement with IEL to farm into - and jointly develop - the Ofa Field . IEL was awarded a 100 percent interest and operatorship of Ofa under the Federal Government of Nigeria's Marginal Field Programme.

Ofa is an undeveloped oil field in OML 30 located onshore in the Northern Niger Delta:

A recent independent assessment by Gaffney, Cline & Associates estimates mean Stock Tank Oil Initially in Place ("STOIIP") of up to 150 mmbbls.

The field is covered by good quality 3D seismic data and consists of up to eight oil bearing reservoir intervals in the Agbada Formation between 6,670 and 7,280 feet.

Ofa is located close to existing infrastructure and within 15km of a number of Shell producing fields, including Afiesere, Eriemu, Kokori, Oweh, Olomoro and Ogini.

The field was initially discovered by Shell (Ofa-1) and subsequently appraised by the Ofa-2 well:

The Ofa-1 exploratory well was drilled as a vertical well on the crest of a roll-over anticline structure to a total depth of 10,000 feet.

Shell initially reported oil in three reservoir levels and the well was suspended as a discovery.

The Ofa-2 appraisal well was drilled directionally on the southern flank of the structure at a distance of 3km south of Ofa-1 and encountered gas and condensate.

The forward work programme includes a well test scheduled for Summer 2007. The test involves re-entry of the Ofa-1 discovery and will test four out of the eight identified oil bearing zones. In addition, several cased hole logs will be run to confirm and update contacts in two key reservoirs, with the potential to add additional volumes. During the test, relevant reservoir parameters and crude samples will be collected for further analysis to optimise the development of the field. All the necessary contracts for the well test are in place and mobilisation to site is expected shortly.

The Farm-In Agreement signed between Afren and IEL defines the commercial terms under which Afren will participate with IEL in the development of Ofa, and is subject to requisite approvals. Under this agreement, Afren will be responsible for paying all costs for the development of the field, and will recover the costs from 80 percent of net field revenues. Following cost recovery Afren and IEL will share production revenue equally.

Osman Shahenshah, Chief Executive of Afren, commented:"Participation in the development of the Ofa Field, a material near-term project with the potential to expand our current production target of 15,000 to 20,000 bopd in 2008, is a significant addition to the portfolio and is consistent with Afren's business model of partnering with indigenous companies in near-term production opportunities, with low cost development options."

Acquisitions and Divestitures News in Nigeria >>

Australia >>  10/13/2017 - Key Petroleum has announced that subsequent to the agreement of binding terms for the acquisition of AWE's 100% interest in Production Licence L7 (R1)...
United States >>  10/13/2017 - Chaparral Energy, Inc. has entered into a definitive agreement to sell its North Burbank and Texas Panhandle enhanced oil recovery (EOR) assets for $1...

Ivory Coast (Cote D'Ivoire) >>  10/12/2017 - Tullow Oil plc (Tullow) has acquired 90% stakes in four onshore blocks in Côte d’Ivoire. Petroci, the national oil company of Côte d’Ivoire, holds the...
Netherlands/Holland >>  10/12/2017 - Fugro and Global Marine Holdings LLC have signed an agreement under which GMG will acquire Fugro’s trenching and cable laying business in exchange for...

South Africa >>  10/12/2017 - Africa’s biggest fund manager is interested in taking part in the acquisition by Glencore Plc and a group of black South African-owned companies of Ch...
Argentina >>  10/9/2017 - Advisers to China’s Sinopec have offered its oil assets in Argentina to about a dozen potential suitors, three sources familiar with the matter said, ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Nigeria Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |

Oil & Gas Projects in Nigeria >>

More News

 

Oil & Gas Companies in Nigeria >>


Related Links

AO BJ BW CD CG CI CM DZ EG ET GA GH GM GN GQ GW KE LR LY MA MG ML MR MZ NA NE NG RW SC SD SL SN SO ST SZ TD TN TZ UG ZA ZM
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.