BACK
The geological analysis of the drilling results, indicate the oil and gas potential of Block 1711 as well as good prospects for the region as a whole. There were gas shows in the Albian and Aptian sediments, confirmed by wire-line logging. It was not possible to fully evaluate the hydrocarbon potential of the penetrated section due to operational problems during testing. The reservoir quality of the tested zones was not very good, perhaps due to nearby igneous activity. However, seismic interpretation suggests that alteration of the sediments by the igneous activity may be localized to an area near the borehole, and therefore both the tested zones and some untested zones have great potential. PetroAlliance Service Co. of Moscow, a subsidiary of Schlumberger, estimates that the 4,698m – 4,748m interval could contain a potential gas resource of up to 14 trillion cubic feet.
All in all, the Government of the Republic of Namibia is happy to announce that Sintezneftegaz Namibia and its co-venturers have met their minimum work commitments to it under this license under often very difficult conditions. The global financial meltdown of last year negatively affected exploration efforts, however it is anticipated, that exploration activities will continue with the view to establish more accurately the quantities and commerciality of the hydrocarbons in block 1711.”
As previously reported, EnerGulf elected not to participate in the testing program of the 4,698m to 4,748m interval and EnerGulf is not in receipt of a copy of the PetroAlliance report mentioned in the press statement. EnerGulf has not verified the potential resource estimate and the estimate may not be compliant with NI 51-101. Although the Company elected not to participate in the testing of the well, per the JOA, the Company may elect to pay 100% of its share of the test’s costs it would have incurred had it participated, and an additional sum of the same amount, to re-instate its pro rata rights in a commercial discovery in the interval being tested. EnerGulf maintains a 10% interest in Block 1711.