SacOil’s Nigerian assets are 18 to 24 months away from producing revenue and is continuing to evaluate opportunities.SacOil focuses operations exclusively in Africa and has operations in the Democratic Republic of Congo (DRC), Malawi, Botswana and Nigeria, says it is continuing to evaluate opportunities to secure new value-accretive acreage in other established and prolific African hydrocarbon regions and basins. “The DRC, Malawi, Botswana and Nigerian assets are in varying stages of exploration and appraisal. SacOil’s vision is to build a balanced hydrocarbon exploration and production portfolio in Africa with established production and cash flow,” said Bradley Cerff, vice president operations, SacOil, who is a member of the Society of Petroleum Engineers and has over 16 years’ experience in petroleumexploration and management. “SacOil continues to make strides in understanding the technical and commercial merits of its projects through the execution of the current work being performed,” said Cerff. “We remain confident and optimistic that expenditures on the Nigerian assets will result in reserve addition and ultimately hydrocarbon production.” He said SacOil’s management team is focused on progressing the current assets and opportunities, executing work on the assets, receiving definitive title and progressing todelivery of production and cash flow. “We are satisfied that we are making excellent progress in this regard with our assets.” The company’s operations update lists the Nigerian assets as one of the highlights. “SacOil’s consultants have reviewed the existing seismic data in more detail and updated their internal understanding of hydrocarbonresources in the area known as OPL 233 in Nigeria,” said Cerff. “We are optimistic on the contingent resources and potential upside, estimated to be in excess of 20 MMBOE gross contingent resources. In addition, JV Partners and consultants to SacOil, have identified a number of additional prospective leads for subsequent investigation and possible drilling,” Cerff said. A contract for Environmental Impact Assessment (EIA) has been awarded to Tidalflow Nigeria for the OPL 233 area. Tidalflow has completed the wet season sampling on schedule and will undertake the sampling for the dry season during November, 2013. The contract for seafloor surveying in this area has been awarded and discussions covering the finalisation of the contract and mobilisation to site are underway. Three companies were invited to tender for the contract to conduct the survey to acquire 3D OBC seismic data. The contract was subsequently awarded to Geomarine and discussions towards the finalisation and mobilisation of the OBC acquisition survey are similarly underway.
In addition, tenders have been invited for the data processing of the 3D OBC seismic survey in this area of Nigeria. The tenders have been evaluated and a preferred contractor identified with the award process to be finalised within the next few weeks.In Nigeria, there has been a re-interpretation of seismic and well data at OPL 281, estimated to have 100 MMBOE gross contingent resources. Similar to OPL 233, SacOil has performed a technical evaluation of the existing two boreholes and 3D seismic data on the lease. “Management is satisfied that the current estimate of contingent resources as reported by TRACS may be conservative and, with further evaluation, it is our opinion that the resources may actually be more substantial than initially anticipated,” said Cerff. The potential increase in resources can be attributed to several deeper channel leads and prospects, which holds a possibility of adding to the prospective resources of OPL 281. In the DRC, Total has successfully acquired a concession to conduct exploration in an area known as Block III. Results confirm the geological trend, observed in the adjacent concessions in Uganda, which were also found to beoil-bearing. SacOil envisages the acquisition of a minimum of 400km of 2D seismic data and anticipates that the seismic acquisition will take place within the next dry season, possibly in the second quarter of 2014 subject to the availability of seismic acquisition contractors. Following the award of Block 1 in Malawi in December 2012, SacOil is planning an environmental and social impact assessment. At 12 265 square kilometres, the area known as Block 1, is the second largest petroleum exploration licence demarcated in Malawi. SacOil has an exclusive 100% interest and operator status in this block. “Through initial work and assessments completed, SacOil’s technical team anticipates that the same tertiary rift system as found in Uganda could possibly be present in Malawi which may, therefore, potentially yield deposits of hydrocarbons,” said Cerff. SacOil is currently targeting to have all environmental work completed by Q3 2014. Initial planning associated with the environmental and social impact assessments are underway in consultation with the Malawian government. In Botswana, SacOil has embarked on a process of collating the geological information available on the petroleum prospectivity pertaining to three licences covering an area of approximately 49 463 square kilometres. A review of this information is currently underway.