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Wednesday, July 16, 2014
Sahara Group’s upstream unit updated its onshore drilling and testing campaign on Nigeria’s OPL 274, where it holds a 100% working interest. Sahara’s upstream unit, Enageed Resources Ltd., completed the third well of a three-well onshore drilling program in the Edo State Block and has demobilized its drilling rig, HPEB-187.
The drilling resulted in a discovery for the company and an increase in its certified 2P reserves. According to CEO and MD Tonye Cole, “Success was achieved in doubling our certified 2P reserves in the Oki-Oziengbe South field and making a new commercial discovery with the Oluegi-1 exploration well. More importantly, this was realized by an indigenous Nigerian independent and all work was done in-house by our dynamic, young team. This is particularly satisfying because as we look ahead, we have a healthy prospect inventory in OPL 274 and several other promising blocks elsewhere in Nigeria and in our growing African opportunity portfolio. This portends well, with years of future drilling activity ahead and sustained growth for Sahara’s upstream.”
“None of these would have been possible without the support and hands-on role undertaken by certain key stakeholders, all of whom we are indebted to and grateful for the part they played towards achieving this milestone. Not taking for granted the various service contractors who individually and collectively played their part, we would like to appreciate in particular, the good people of Koko, Ajoki and Ajamogha in Edo State, the Department of Petroleum Resources (DPR), National Petroleum Investment Management Services (NAPIMS), Nigerian Petroleum Development Company (NPDC), Nigerian National Petroleum Corporation (NNPC) and Diamond Bank Plc, all of which were instrumental to our success,” Cole added.
The Oluegi-1 was drilled directionally to a total depth of 14,887 ft measured depth (MD) with a horizontal displacement of 2.7 km north of the well head and encountered five hydrocarbon zones, totaling 110 ft of net pay. Sahara also drilled two successful appraisal wells, Oki-Oziengbe South 4 and 5. Oki-Oziengbe South 4 drilled directionally to TD at 12,520 ft MD, 1.1 km SW from the well head. Logging on the well showed 211 ft of net pay in 13 hydrocarbon bearing zones, seven of which were new. The well flowed 43-44° API oil to surface on two tests at rates of 2,400 and 3,200 bpd of oil, with no water, on a one-half inch choke.
Sahara’s Oki-Oziengbe South 5 was also drilled directionally to TD at 12,873 ft MD 1 km south of the well head. It logged 298 ft of net pay in 19 reservoirs, 15 of which were oil-bearing and seven of which were new. Sahara’s successful drilling program followed a two year-long, two-phase, land-swamp 3D seismic survey in the 871 sq km license.
Sahara’s Upstream COO Curtis Cohen commented: “Our OPL 274 exploration program realized a number of firsts for Sahara. We shot our first onshore 3D seismic, drilled and operated our first onshore wells, made our first oil discovery and first appraisal, and tested first oil at rates in excess of 5600 barrels of oil per day. We drilled the three wells back-to-back in just ten months, from a common location and a minimal environmental footprint, and all three wells found commercial hydrocarbons. I’m proud of the upstream team’s achievements.”
Plans are in the works to tie-into existing facilities, allowing Sahara to begin first oil production. Four flow lines from Oki-Oziengbe South 4 and 5 well heads will take crude to the Oziengbe South flow station for crude processing. When completed and flowing, oil from Oziengbe S will join NPDC’s 6″ pipelines at Oredo and Ogharefe where it will enter the Forcados trunk line.
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