Block 1711 is situated in the Namibe basin off the northern coast of Namibia along the international boundary with Angola. Nine separate exploration prospects have been identified by extensive modern 2D and 3D seismic data on the 893,100 hectare (2.2 million acre) block. In February, 2012, Netherland, Sewell & Associates prepared a prospective resource report in accordance with Canadian NI 51-101 and other Canadian, United States and International standards and covers the potentially recoverable oil on certain prospects on the leads on Block 1711 offshore Namibia.
Gross Prospective Oil Resources, listed in billions of barrels (BBLS)
- Low (P90) Estimate .742
- Best (P50) Estimate 2.75
- High (P10) Estimate 6.11
- Mean Estimate 3.17
June 28, 2013, EnerGulf was granted a 15% interest in Block 1711, under a New Petroleum Agreement (“New PA) to replace the agreement in place since March 31, 2006. Details of the operational agreement are as follows:
- EnerGulf’s wholly owned subsidiary, EnerGulf Namibia was granted a 15% working interest in the 2.2 million acre block.
- Gazania 148 Investments (PTY) Ltd. (“Gazania”) was granted a 75% interest, and NAMCOR a 10% carried interest to production, and Shaanxi Yuyang Petroleum Engineering Co. Ltd. named as the Operator.
- A joint operating agreement will be entered into among Gazania, EnerGulf, and NAMCOR, which will detail respective rights and obligations relating to Block 1711.
- Additional details regarding the New PA and JOA: see June 28, 2013 News Release, found in the “Press Releases” subsection of the “Investors” section of this website. Also see Summer 2013 Report in News section, September 11, 2013 for more detailed discussion of Prospects and Leads
Previously as interim operator for Block 1711, EnerGulf presented the results of the 2010-2011 work program on the 2.2 million (133,372 ha) acre block to the Namibia Ministry of Mines and Energy in Windhoek, Namibia. The work program involved a complete analysis of data from the Kunene #1 well drilled in 2008, and a further evaluation of the blocks exploration potential. The exploration studies revealed multiple prospects and leads supported by amplitude anomalies and other hydrocarbon indicators. EnerGulfs Block 1711 prospect portfolio includes a Tertiary Turbidite play and a Syn-Rift play, both of which have giant field analogs in Angola and Brazil. A carbonate play is also developing within the region.
Fossil evidence from the Kunene #1 well points to the potential for multiple Tertiary-age turbidite sandstone prospects. Turbidite sandstone reservoirs are common and prolific in West Africa, Brazil and Deepwater Gulf of Mexico. Regionally, turbidite sandstone reservoirs account for more than 20 billion barrels of producible reserves in Angola (Blocks 14, 15, 17 18 offshore Luanda), Nigeria (Agbami, Akpo and Bongo fields), Equatorial Guinea (Zafiro and Alba) and the Campos Basin of Brazil (Marlim and Albacora).
EnerGulfs extensive study also provided significant information concerning the hydrocarbon potential of the Syn-Rift play, including possible seismic evidence of salt on Block 1711. The Syn-Rift rocks in Block 1711 are stratigraphically similar to the Pre-Salt rocks of the Santos Basin of Brazil (Lula, Guara and Lara fields) in the Upper Congo Basin (Malongo and M’boundi fields). These plays currently contain more than 15 billion barrels of producible reserves, and are still developing.
EnerGulf geologists have also developed several large prospects in a third play on Block 1711. They believe that this play has not been tested in the area and involves large basement horst blocks that form extensive ridges. These horst blocks are adjacent to the syn-rift half-grabens, but are believed to be comprised of older, pre-rift rocks. There is evidence of Karoo-age clastic rocks with excellent reservoir potential onshore near the eastern margin of Block 1711, and EnerGulf geologists suggest that these extensive ridges are comprised of pre-rift Karoo-age rocks. Some geologists might consider this play to part of the syn-rift or pre-salt play, but EnerGulf has chosen to consider this as a separate play because of the uncertainty concerning the age of the potential reservoir rocks.