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Equator to Drill and Exploration Wells on OML 122 , Offshore Nigeria

Source: www.gulfoilandgas.com 8/25/2005, Location: Africa

Equator Exploration Ltd. has issued a Letter of Intent to Dolphin Drilling Company, a subsidiary of Fred Olsen Energy ASA , to take five well slots for the Bulford Dolphin semisubmersible rig. It will use some or all of these slots to drill appraisal and exploration wells on the highly prospective block Oil Mining Lease (OML) 122, located offshore Nigeria. Any slots not required by Equator can be assigned to other operators at its election.

OML 122 is located 25-60 km offshore in water depths of 40-300 metres and covers an area of 1,295 sq. km on the Western Niger Delta, east of Shell’s giant Bonga Field (estimated 1.4 billion barrels) on OML 118 and South west of Shell’s EA Field on OML 79.

One of the first two wells will be an appraisal well on the Bilabri discovery located close to the Bilabri-1 well. This well, drilled in the 70’s, was production tested at a rate of 5,175 barrels of oil per day on a 48/64 choke, with 40 API gravity oil and a GOR rate of 600 scf/bbl. The Bilabri-1 well also encountered several gas zones which 3D seismic indicates are of significant size. In addition to Bilabri, hydrocarbons were also discovered in the nearby Orobiri structure, drilled at the same time.The exploration well will target the Owanare prospect, located in a water depth of 122 metres. Owanare is covered by the 3D seismic data acquired in 1999, which indicates significant hydrocarbon potential.

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