Block R is located in the south-eastern part of the Niger Delta complex, close to numerous significant oil and gas discoveries made in the Nigerian sector, including Akpo (600MMbbl of condensate and 1.2Tcf of gas), Usan/Ukot (600MMbbl of oil and 250Bcf of gas) and Zafiro (1,200MMbbl of oil). Block R lies in water depths ranging from 1,300 to 2,600m and has a gross area of 2,681 square kilometres.
The Group has a 100% paying interest with the state oil company, GEPetrol, being carried through exploration for its 20% beneficial interest (ie the Group bears the full cost of exploration during the exploration phase but receives a 20% reimbursement of such costs from GEPetrol in the period after discovery).
A large number of prospects (named A to T) have been identified, many of which form individual segments of larger combined prospects. The primary prospects currently identified are “AB”, “DG”, “ER”, “HJK”, and “F” and the first wells are currently planned for drilling in Q4 2008.
The Group is currently in the second of a two-phase Initial Exploration Period for Block R (19 April 2006 to 18 April 2008). This phase (19 April 2008 to 18 April 2010) requires two exploration wells to be drilled to a minimum depth of 2,000m below the sea-bed. The Group may apply for two extensions of the Initial Exploration Period of 24 months (19 April 2010 to 18 April 2012) and 12 months (19 April 2012 to 18 April 2013), respectively.
|
Licence Name |
Block R |
|
Basin |
Niger Delta |
|
Gross Area |
2,681km2 |
|
Water Depths |
1,300 to 2,600m |
|
Licensees |
Interest |
|
Ophir (Operator) |
80% |
|
GEPetrol (Partner) |
20% |