Articles

Namibia

PAO operates two Petroleum Exploration Licenses (PELs) in the deep water offshore Namibia. PEL 50 is located in the Walvis sub-basin and consists of two blocks (2211Ba and 2311A) covering 8,770 square kilometres. PEL 51 comprises Block 2612A in the Luderitz sub-basin and covers 4,867 square kilometres. Water depths range from 2500 to 3500 metres in both licenses.

 

LicensesLicensesPAO has an 72% working interest in PEL 50 and an 81% working interest in PEL 51. Amis Energy, a Namibian indigenous company, has a 9% working interest. For both licenses, Namcor (the state oil company) has a 10% carried working interest.

 

Both of PAO’s licenses are in the first phase of their exploration programs. In 2012, PAO acquired approximately 1200 km of 2D seismic on and around License 50, and 700 km of 2D seismic on License 51. As such, the bulk of the work and financial commitment has already been met for both Licenses.

 

The data acquired was specifically designed for a deep water setting, the first ever such survey in Namibia. In addition, this was the first seismic data ever acquired over PAO’s licenses.  The data has revealed a new play type for Namibia that is very analogous to successful deep water plays elsewhere in West Africa such as the Jubilee Field discovered in Ghana. A large number of sizable leads have been identified based on this new seismic data.

 

On the strength of the discovery of this new play fairway PAO is currently soliciting interest from industry to participate in the acquisition of 3D seismic over both licenses. A data room is currently open to allow prospective partners to evaluate the data. The objective of these proposed programs is to mature the identified leads into drill-ready prospects.

 

We have also been encouraged by some of the recent drilling activity in Namibia. While not proving up a commercial hydrocarbon discovery, the recent wells very importantly encountered proof of a working petroleum system in the deep water offshore Namibia, providing a significant de-risking of the leads identified on the PAO Licenses.

 

The successful execution of our initial work programs in Namibia highlights Pan African Oil’s ability to identify and capture a promising opportunity in advance of competition from the rest of the industry. Our expertise with deep water play types has allowed us to quickly identify and delineate a potentially very material play fairway.  This has put the Company in a position to farm-out to a major company which would accelerate exploration and potentially development, should there be a hydrocarbon discovery.

Visualization of deep water fan play, PEL 51Visualization of deep water fan play, PEL 51

Seismic exampleSeismic example

(data courtesy of Spectrum Geo)