Five Exploration Blocks Farm-in opportunities in Chad
La Societe Global Petroleum (LSGP) is offering a farm-in data room exercise to identify a potential partner and the opportunity to acquire part of its share (up to 50%) which is the 100% shareholding of Doba basin in Chad. The LSGP portfolio comprises all assets in South & Northern Chad. A competitive farm-in process will start with a physical Data Room in London opening 19th January 2015. Schlumberger will host all of the services. Access to the physical Data Room will only be available to selected parties who have executed Confidentiality Agreements (CA). A pre-qualification questionnaire is applicable. Separate data rooms in Chad, each requiring a CA, will be available for all LSGP blocks, if required. LSGP is a private exploration and development company focused on oil and gas activities in the Republic of Chad in Africa, with its main office in NDjamena. LSGP has a balanced, technically established portfolio position, covering highly prospective oil prospects. The Company signed a production-sharing Agreement (PSA) with the Government of the Republic of Chad in November 2011. The PSA provides exclusive rights to explore and develop resources in the DOE, DOF and DOG concessions in the Doba basin in Southern Chad, covering a combined area of 3,800 square kilometres and the Largeau V and Djado III concessions in Northern Chad, covering a combined 20,000 square kilometres. The DOE, DOF and DOG area does not include the Esso E&P Chad Concession area (facilities, producing the Kome, Bolobo, Miandoum, Miakeri, Nya and Timbre fields). The company believes that the concession areas acquired under the PSC has world class potential with significant resources. The Global Petroleum management team has the expertise to unlock the resource base and plans on executing an exploration programme in 2013/2014. The Doba blocks are under two exploration phases effective from 11th November 2011. The first phase is a 5 year term, $25 million work commitment across 5 blocks, with no defined work requirements per block. Work programs, open to the Operators discretion, are subject to standard Governmental approval and 50% relinquishment of the exploration area at the end of Exploration Phase. The regional studies show that the future of exploration in Chad will be much different than the past. At present, 82% of the discovered reserves are in the Upper Cretaceous (UK) play, with the UK having 1150 MOEB and the Lower Cretaceous (LK) 200 MOEB discovered. However, 80% of the remaining undiscovered potential will be found in the Lower Cretaceous formation C and formation D&E plays, which have resource base means of 800 MOEB. LSGP blocks and Offsetting oil fields in Doba basin Kome, Bolobo, Miandoum, Miakeri, Nya and Timbre fields are inside the LSGP Doba concessions. Wherein, LSGP blocks are surrounded by Moundouli oil field (103 MMbbl), Belanga discovery (12 MMbbl) and MBiku (8 MMbbl). Among many other identified prospects are Mangara discovery (47 MMbbl, test rates 1,600 bbl/d), Badilla discovery (test rates 3,100 bbl/d) and Damalla prospects (at the LSGP eastern border of DOG block). CPC Taiwan (OPIC) fields found the Benoy discovery, the companys largest discovery.
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Doba Basin History Republic of Chad, located in West Africa northeast of regional oil giant Nigeria, will become the world's 76th producer of oil in the coming years. For Chad, it has been a long walk to becoming an oil producer. The country's sedimentary terrain is part of the West and Central African Rift System (WCAS), a stretch of geologic infill that runs from northern Nigeria, Niger, and Chad to the Central African Republic, Libya, and Algeria. Accordingly, the beginning of oil exploration in Chad dates back to the 1950's and the first discoveries happened in the 1960's. With the commencement of oil exploration in 1969, oil was discovered in both the Lake Chad Basin and Doba Basin by 1975. 1955 & 1959, Shell and Exxon and Mobil arrived in Chad and started to do few studies. 1962, the first hydrocarbon exploration permits in the region were granted to Saphyr Petroleum and Petropar, but Chad was not Production history interpreted as a rift system geology until Conoco showed up in 1969. In 1979-1980 Chad produced 1500 bpd. Exploration had resumed by the 1970, Texaco and Amax Oil and Gas began exploring north-eastern 1990s. In 2012, the Doba basin in the southern part of the country Niger, and Conoco and Shell began studying the Central African averaged approximately 104,500 bbl/d as reported by the US Energy Republic in 1973. Information Administration (US EIA). Chads oil production began with 1973, a group consortium comprised of Exxon, Shell, and Chevron 36000 bpd in 2003 and reached 177000 bpd by 2005. whose work led to the launch of the first commercial reservoirs that In 2006 Chad produced approx. 0.21 percent of the world oil production, with an approx. reserve estimation of 1.5 Bb (0.2 percent of the world). will make Chad an oil producer. In 2013, new production has come on-stream in the Doba Basin, with a 1974, it was Conoco that got a handle on the area's geology before discovery at Badila (Block DOI). any other company, drilling the first oil well in the Termit Basin, near Back to 1995 Chad signed an agreement with Cameroon for a pipeline Lake Chad. from Doba to the Cameroonian port of Kribi. The pipeline project was 1993, the focus became on the Doba Basin area by a consortium of proposed by a partnership involving the government of Cameroon and operators in the area that had made significant oil discoveries. Chad; Esso Exploration and Production Chad (project operator); Societ Delineation of the new fields continued for several years. Shell Tchadianne de Recherches et d'Exploitation, Elf Hydrocarbures 2003, the production of oil in Chad resumed again when the Tchad, and the Cameroon Oil Transportation Company (Cotco). Construction of the 1080 km pipeline began in 2000 and finished in Miandoum field, part of the Doba basin, was brought on-stream. 2003, with a capacity of 225000 bpd. 2004, Miandoum field was followed by production in the Kom and Bolobo fields, respectively. Production from the three fields has been restricted by a high water cut, low reservoir pressure, unconsolidated sands and complex reservoir geometry. A combination of well enhancements and the start-up of four satellite fields, Nya, Moundouli, Maikeri and Timbre, has helped to slow the rate of decline. 2006, massive Chinese investment in Chad - first on the development of various fields including Bongor and later on a joint venture on the refinery project. 2008, the Chadian government created its own national oil company: Socit des Hydrocarbures du Tchad - SHT.
New Exploration Opportunity
The DOE, DOF &DOG exploration identified prospects are located in the central Doba Basin, Chad, 14 km north-northwest of the ESSO fields. The identified Prospects will test several Upper, Middle Cretaceous (MK) and Lower Cretaceous (LK) objectives which comprise a large (approximately 30 sq.km) faulted closure between near major bounding faults. The stratigraphic objectives at the Miandoum Shale 1 & 2 prospects are fluvio-deltaic sandstones in the Upper & Middle Cretaceous Msh and A" intervals (similar to UK & MK sandstones penetrated at 1974 Doba-1, drilled down to 4248 m). Secondary objectives include the predominantly deltaic sandstones of the Lower Cretaceous "C" interval and below that the LK D interval characterized by a higher percentage of fluvial deposits. The Upper & Middle Cretaceous targets have a potential closure area ranging from approximately 7 to 9 to 26 sq.km and a maximum closure height of 165 meters. The 9 and 26 sq.km closure sizes are suggested by Petrel TWT & Depth occurrence of potential leak points at -885 m and -1595 m TVDSS. The additional high-side acreage includes connection to the Msh-1 prospect feature at fluid fill depths to -950 m TVDSS. The Top Lower Cretaceous closure at the C sand level encompasses up to 8 to 22 sq.km at a closure height of -2815 m TVDSS at the Doba area east of Doungabo DOF & -2970 m TVDSS at the Eastern side area west of Doungabo DOE block. The proposed total depth : shallow well is -2250 m TVDSS, which allows for penetration of multiple Upper & Middle Cretaceous objectives, whilst the proposed total depth for the deep well is -3350 m TVDSS, which allows for penetration of multiple Lower Cretaceous objectives. The Lower Cretaceous has yielded discoveries in the Western Doba Basin at Mangara and at the Badila-1, and is gas-saturated, along with light crude accumulation in the Kome Field in the Eastern Doba Basin, Bolobo and Timbre ESSO Fields. Upper Cretaceous sands are the primary reservoirs at the Three Field Development inside DOE, DOF & DOG Global blocks. Lower Cretaceous tops are estimated to occur at -2800 m TVDSS & -3000 m TVDSS at Doba & Bebanga areas, respectively. The proposed drill well locations are optimized to test both Upper, Middle and Lower Cretaceous objectives. As per the regional studies made recently, 150 MOEB has been discovered and 800 MOEB remains to be found in Doba basin. Hydrocarbon System Oil shows all over the Upper and Middle Cretaceous objective intervals and traces of oil in different types of tests in the ESSO / and other fields well suggest a viable hydrocarbon system for the greater Doba structure. Regional source rocks show Lower Cretaceous algal-rich lacustrine shales (type I source) and lacustrine shales with significant terrigenous materials (mixed type III-I sources). The source rocks have total organic carbon values ranging from 2% to 6% by weight. Lower Cretaceous oil and gas produced in the Kome Field in the Doba Basin (in the middle of LSGP blocks) was also generated from the same source rock intervals. Regional stratigraphic mapping of the Lower Cretaceous intervals in the Global area shows that the prospect is most likely surrounded by thick source and seal rock intervals. Hydrocarbon maturation in the Doba Basin generally peaked around Santonian time and might have predated some of the final structuring or inversion episodes. Recent studies of source maturation and yield timing show that the Lower Cretaceous source intervals in the Doba Basin area reached peak maturation between 75 million years ago, with additional generations occurring from 75-20 Ma. This suggests that there was significant overlap between the trap-forming events and the peak hydrocarbon yield / primary migration windows. Seismic Structural mapping shows that closure may have existed prior to the peak maturation. The structural closure are of Santonian (84 Ma) and Eocene (40 Ma) inversion events. There is great probability that the prospect has received HC charge for a considerable period of time.
New Exploration Opportunity
Exploration Program So Far
2014
Establishing drilling team
Draft the drilling well program & design Road & well site construction Base yard and inventory Start drilling (one well) Seismic depth migration for the new recovered SEGD from ESSO 2037 LKM
Late 2013
Acquiring 793 2D seismic
2D seismic data processing 2D seismic data interpretation Play Fairway risk assessment Prospect specific risk assessment Overall chance of success Understanding the performance of the reservoir Understanding the components of Inflow performance Understanding the components of vertical lift performance Understanding combining inflow and vertical lift performance Sand problem production Predict production profile Discounted cash flow/ NPV
Early 2013
Preliminary well design
Wellheads & X-tree bid and evaluation Tabular & casing accessories bid and evaluation Cementing & fluids bid and evaluation Drilling bits bid and evaluation Drilling tools & Fishing bid and evaluation Liner hunger bid and evaluation Logistic services bid and evaluation Fuel & water supply bid and evaluation LWD and wellbore surveying services bid and evaluation Drilling rig bid and evaluation Rig acceptance and inspection