WHL Energy Committed to Seychelles

WHL Energy reported that it remains committed to its Seychelles assets and the bringing in of a new partner on the acreage. In its 2012 Annual Report for the period ending June 20 the company said that the acreage remains highly prospective.

During the year WHL completed a major interpretation project for the Seychelles, which mapped out a substantial exploration portfolio of some 30 leads in WHL Energy’s blocks with cumulative Prospective Resources (mean) of several billion barrels of oil equivalent (boe). Petroleum consulting group Netherland Sewell and Associates Inc. confirmed WHL Energy’s assessment of the Seychelle block’s potential, pegging it at 3.4 billion boe Prospective Resources estimated for the 21 most advanced leads.

WHL launched its farm-out campaign to attract a high quality operator to carry forward the exploration program on the acreage. Several major oil and gas companies visited WHL Energy’s data-room during late 2011 and early 2012, and in depth discussions commenced with a number of these companies. While an agreement was not reached, it continues to maintain discussions with multiple parties.

At the same time it romances potential partners, WHL is still continuing its program to develop the prospectivity of the acreage. The company has undertaken considerable geological and geophysical studies to mature its potential. This work addresses the geological key risks of the Seychelles portfolio and the undertaking of additional seismic reprocessing tests to determine if leading edge seismic processing techniques can further improve seismic data quality in the region.

Planning for an infill 2D seismic program, which will mature the key leads to ready to drill status, has now commenced.

WHL continues to engage with the Seychelles government’s regulator, PetroSeychelles Ltd., seeking to rationalize the obligatory exploration commitments to improve the terms of the work program. It is expected this will enhance the attractiveness of the Seychelles acreage as the farm-out campaign continues.