Petroleum Africa
Find us on: 
Monday, September 25, 2017
Based on further analysis of the recently drilled Fatala-1 well offshore Guinea by Hyperdynamics, the company has notified the government that it will be seeking a two-year appraisal period allowable under its PSC.
Ray Leonard, CEO and president of the company, said that the request for the appraisal period was based on the oil saturation calculation “plus our internal review and the log analysis conducted by eSeis, an independent geophysical and petrophysical consultant.”
He went on to say that Hyperdynamics believes that it made a petroleum discovery that implies the “presence of commercially exploitable resources as specifically defined in our Production Sharing Contract”.
“We will be developing an appraisal work program and budget that we intend to present and discuss at an Oil and Gas Operations Management Committee meeting with the Guinea Petroleum Directorate that we have proposed at the end of October,” he added.
Sapetro, however, will not be joining Hyperdynamics for the appraisal period. The company informed Hyperdynamics that it would not apply for an appraisal period extension and would withdraw from the JOA and PSC. Sapetro’s 50% interest will be assigned to Hyperdynamics free of cost.
SAPETRO remains liable for its share of obligations relating to the PSC and the JOA through the withdrawal, but not for expenditures relating to the appraisal program. Hyperdynamics will be 100% interest holder, again, and will look for another partner to share risks and costs.
“We remain committed to seeking to create value for our investors,” Leonard said. “While Sapetro has decided not to continue exploring with us in Guinea, we want the opportunity to appraise the Fatala prospect area to determine whether or not it is commercial.”
Hyperdynamics earlier reported that the well did not yield oil shows above oil-based mud signature during drilling or from an analysis of the cuttings taken from the well. Additionally, the primary target of its exploration – a 75-meter-thick channel – did not contain reservoir-quality sand.
However, further detailed study of the well logs identified five meters of calculated hydrocarbons in the upper Cenomanian channel located above the primary target formation. The five-meter sand has an average porosity of 17% and a hydrocarbon saturation of 61%. A minor background gas increase was also observed while drilling through this interval. The well was drilled on the edge of this channel, and the well result will be integrated with the seismic data to determine the commercial potential of this zone.
" alt="Sintana to Expand Asset Base in Namibia with Acquisition">
" alt="Luanda Gives Afentra Nod for Azule Acquisition">
" alt="TotalEnergies Increases Stake in ROC’s Giant Moho Field and Sells Mature Assets">
" alt="Africa’s $824 Billion Debt Burden and Opaque Resource-Backed Loans Hinder its Potential">
" alt="African Refiners Ponder Threats to Energy Security for Africa as Transition Takes Center Stage">
" alt="Invictus Inks Gas Sales MOU to Deliver Power to Eureka Gold Mine">
" alt="Globeleq Acquires the 25 MWp Winnergy Solar PV Plant in Egypt">
" alt="Sintana Completes Well Testing at Mopane 1-X in Namibia">
