Continental Focus, International Reach

Cove Confirms Oil Show Offshore East Africa

Tuesday, August 24, 2010

Cove Energy, Anadarko’s partner on Mozamique’s Block 1, confirmed reports by the Mozambican energy minister Esperanca Bias and Anadarko that oil shows were encountered on the deepwater Ironclad-1 well.

 

The Ironclad-1 well marks the first oil discovery in deepwater offshore East Africa which will undoubtedly spur more exploration from the many oil companies operating offshore from Somalia to Mozambique.

 

Though the news is promising, both parties indicated that additional testing would be necessary to determine commerciality.

The Ironclad-1 is located about 110 km south of the Windjammer gas discovery well, and was drilled to evaluate the hydrocarbon potential of an aerially extensive Cretaceous deepwater fan complex in the southern part of the permit, and in particular to determine the presence of oil in an area believed to have the geological parameters necessary for liquid hydrocarbon generation.

Drilling operations ceased at a total depth of 5,304 meters where the well penetrated 205 meters of targeted Cretaceous age sediments in two distinct fan lobes. The well penetrated 38 meters net of oil and gas saturated sands in the upper fan lobe. The presence of oil has been confirmed by geochemical analysis of rotary side wall cores taken from the well bore. Significant gas shows were also present throughout the drilling of the Cretaceous section.

Cove reports that future geological analysis of the Ironclad fans will focus on delineating areas predicted to have good reservoir parameters in terms of porosity and permeability necessary to support commercial exploitation. The oil encountered in the Ironclad well is the first documented occurrence of liquid hydrocarbons in deepwater offshore East Africa.

On finishing operations at Ironclad, the Belford Dolphin will move to the Barquentine well site, located east of Windjammer, where surface casing is already set to approximately 2,300 meters. Following Barquentine, which is expected to take approximately six weeks, it is planned to drill at least two further exploration wells.

John Craven CEO Cove Energy commented: “We are very encouraged by the results of Ironclad. The pre drilling objectives of this exploration well, of finding hydrocarbons in the Cretaceous fan system and encountering oil have both been met. This is very promising not just for the Cretaceous fan systems, where over 80 sq km of closure have been mapped, but for additional nearby prospects already identified elsewhere in the Offshore Area 1 block. In addition the presence of oil and its associated petroleum system in Ironclad is significant for our extensive deepwater blocks in both Mozambique and Kenya.”


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