Seismic Bulks up Afren’s East African Resource Portfolio

Afren plc has been busy adding up potential resources in East Africa through its seismic programs in the region. In its Half Yearly Results announcement the company said its prospective resources were upgraded following the maturation of its portfolio via seismic programs in Kenya, the Seychelles, Ethiopia, and Tanzania and its airborne gravity and magnetic surveys in Madagascar.

Afren’s mean net prospective resources have been upgraded for the East African portfolio from 2,113 mmboe to 5,838 mmboe. In addition the company has identified new plays offshore Kenya and Tanzania.

On Kenya’s Block 10A the company satisfied all of its seismic work commitments with the acquisition of 750 km of 2D seismic over the block in 2011, Tullow Oil (operator) is expected to spud a well on the Paipai prospect prior to the end of September. Acquisition of the planned 1,800 km of 2D seismic on Kenya’s Block 1 is well underway and Afren is making good progress towards completion during Q4. Post period end, the company has increased its equity in the license to 80% under the terms of the original farm-in agreement.

Offshore Kenya on Block L17/L18 1,207 km of additional 2D seismic data was acquired targeting the deeper water portion of the block in January 2012. The preliminary interpretation of this data has identified four new highly encouraging prospects, in addition to the previously mapped prospects in the shallow water. These prospects represent a major new play with lower risk and greater materiality than the shallow water play, and together increase the mean prospective resources on the block from 94 mmboe to 1,088 mmboe, since the Black Marlin acquisition. In light of these encouraging results Afren has opted to acquire 1,000 sq km 3D seismic in H2 2012 in lieu of the well commitment, in order to better understand the deep water prospectivity, ahead of exploration drilling in 2013. In addition, an onshore 2D seismic survey of 120 km has been contracted to start in September to simultaneously continue maturation of the shallow water/onshore play.

Moving on to Tanzania’s Tanga Block, during Q4 2011 Afren and its partnersacquired over 900 km of 2D seismic data in deeper water areas of the license. Afren said that the interpretation of this data reinforced previous views of the prospectivity of these areas, in the same play that has also been identified in neighboring Kenya blocks L17/18. The result is an increase in mean prospective resources on the block from 1,026 mmboe to 1,244 mmboe. A 3D seismic survey of approximately 550 sq km is planned for H2 2012, prior to exploration drilling.

The presence of several large scale structures on all three of Afren’s license areas in Seychelles were revealed in previously acquired seismic. A major new survey in Q4 2011 included new basins that could also contain significant Jurassic and Cretaceous sedimentary sections, and is currently being processed. Afren has elected to relinquish Area C in order to focus on higher priority plays in Areas A and B.

Finally in Madagascar on Block 1101 anairborne gravity and magnetic survey was completed in January 2012. Geological fieldwork was conducted in June, and 230 km 2D seismic acquisition has been contracted to start in September 2012. An exploration well is expected in 2013.