Block R

Block R in Equatorial Guinea is located in the south-eastern part of the Niger Delta complex close to numerous significant oil and gas discoveries in the Nigerian sector, including Akpo, Usan/Ukot and Zafiro.

Background

The Block was initially awarded in 2006 (Ophir 80% working Interest, GEPetrol 20%) and currently covers 2,051km². It is situated 100km off the southwest coast of Bioko Island, Equatorial Guinea and 150km from Punta Europa in water depth of up to 1,900m.

The Block includes six commercial discoveries; Estrella de Mar (Exxon, 2002), Fortuna, Lykos, Tonel, Silenus East and Viscata.

The Ophir work programme began on the Block in 2008 with three exploration wells being drilled resulting in the Fortuna and Lykos discoveries. 3D seismic was acquired and interpreted prior to a second drilling campaign in 2012 with the Tonel discovery and appraisal wells on Fortuna and Viscata. There was a further discovery in 2014, Silenus East, and the first Drill Stem Test was conducted on the Fortuna reservoir.

 

3.7Tcf

of recoverable resources

Six Commercial Gas Discoveries across two distinct play types

Six Commercial Gas Discoveries

Timeline

Entered into Block R PSC

Ophir holds a 80% operated interest with GEPetrol holding a 20% interest.

First drilling programme

October – Drilled Bythos-1, in 1,716m of water to a depth of 4,222m. No significant oil and gas discovered.

November – Drilled Fortuna-1 in 1,691m of water to a depth of 3,400m. Gas discovery.

December – Drilled Lykos-1 in 1,536m of water to a depth of 2,297m. Gas discovery.

June – Acquired 1,060km² 3D seismic data in Block R.

Three well drilling programme

July – Drilled Tonel-1 in 1,599m of water to a depth of 3,072m. Gas discovery.

August – Successful appraisal of Fortuna complex and discovery of the deeper Viscata reservoir.

September – Drilled Fortuna West-1 in a water depth of 1,758m to a depth of 3,178m. Gas discovery.

All three wells exceeded pre-drill recoverable resource estimates and added substantially to the resource estimate, providing confidence for the LNG commercialisation.

September – Drilling of the Silenus East-1 well resulted in a new gas discovery. A 67m gross gas column wes encountered in the primary target with high quality reservoir, in line with pre-drill expectations.

November – Signed an amendment to the Block R PSC that established gas fiscal terms within the PSC and a fiscal framework for the FLNG project. The agreed terms provide a robust, transparent financial framework in which Ophir, GEPetrol and the Government of Equatorial Guinea, can work together to develop the Fortuna FLNG project.

May – Charter Term Sheet agreed with Golar for provision of leased FLNG vessel.

June – Launched offtake process.

July – Awarded Competitive FEED contracts to McDermott/GE and Aker/Subsea 7.

December – Signed HoA with for gas offtake from the Fortuna FLNG project with six counterparties, all of whom are established LNG buyers.

January – Announced that Ophir has signed a non-binding Heads of Terms Agreement with Schlumberger.

April – Announced that the gross cost to first gas has been reduced from $600 million to between $450-500 million. Additionally, discussions with Schlumberger have terminated.

November – Announced that a wholly owned subsidiary of Ophir Energy plc, and OneLNG, a joint venture between subsidiaries of Golar LNG Limited and Schlumberger, have signed a binding Shareholders’ Agreement to establish a Joint Operating Company to develop the Fortuna project.