Ofa development, Nigeria: The Ofa well test is on-going; mobilization to site occurred in early July and the deepest hydrocarbon bearing zone (N4000) has been tested at a depth of 7,200 feet and flow rates of up to 1,000 bopd on a 20” choke have been achieved. Furthermore, various parameters have been established and crude samples taken for analysis to optimise future drilling and development of the field. Afren and its partner Independent Energy Limited successfully deployed an Electric Submersible Pump (“ESP”) during the testing programme. The next stage of the work programme, which is testing of shallower oil bearing zones, is currently in progress.
Eremor development, Nigeria
The Company recently signed an agreement with the indigenous company Excel for the development of the Eremor Field. Phase I of the Field Development Plan includes re-entry and completion of the existing well and construction of a 7-kilometre oil evacuation line to the nearest flow station. The Field Development Plan and Environmental Impact Assessment have been approved and development work will commence in the near term.
Okoro Setu development, Nigeria
Following the successful appraisal drilling programme, completed in December 2006, Afren has put in place the drilling capability, financing structure, development plan and production capacity for the Okoro Setu Project. All major contracts have been awarded including the drilling rig, Floating Production Storage and Offloading vessel (“FPSO”), drilling consumables, the well head decks and flexible flow lines.
The FPSO vessel, the Armada Perkassa, is currently moored in Keppel Shipyard in Singapore and is undergoing a planned systems upgrade to meet project requirements, including the addition of a test separator and gas lift compressor. It is expected that the FPSO will arrive on location in December.
The company is therefore on track to achieve its target of first oil in early 2008 and production of 15,000 - 20,000 barrels per day in mid 2008.
La Noumbi, Congo
The first well to be drilled, in August, is on the Doungou prospect. Afren has a 14% working interest and the operator is Maurel et Prom. The La Noumbi 2D seismic acquisition programme is on-going with 200km 2D planned, focussed on the North West of the licence. The processing should be complete by Q4 2007.
Osman Shahenshah, Chief Executive of Afren, commented: “We are delighted with the initial results from the Ofa well test, having achieved a flow rate of up to 1,000 bopd from the deepest hydrocarbon bearing horizon, while we continue the testing programme in the shallower intervals. We are looking forward to development drilling on Okoro Setu scheduled for Q4 2007, in addition to executing phase one of the Eremor development plan and exploration drilling in Congo and Gabon. We therefore remain focused on first oil in early 2008, 15,000 to 20,000 bopd from Okoro Setu by mid-2008 and continue to evaluate our strong new ventures pipeline.”