Ophir notch up another successful well in 2012. It really has been a terrific year for the company.
The Fortuna East-1 well came in well above estimates and sets the tone for the next drill in the west (Fortuna West -1) which kicks off next.
Ophir is the leading performing stock in thesharehub’s hotlist with a 2012 return of over 100% to date.
21 August 2012, Ophir Energy plc
Fortuna East-1: Successful Appraisal of Fortuna Complex and Viscata Discovery
London, 21 August 2012: Ophir Energy plc (“Ophir” or “the Company”) announces that the Fortuna East-1 (R5) step out exploration well in Block R, Equatorial Guinea, has successfully encountered gas in the eastern lobe of the Fortuna Complex. In addition, the well discovered gas in the deeper Viscata exploration target.
· Fortuna East -1 (R5) is the fourth gas discovery by Ophir in Block R, and the sixth in the block to date. Ophir operates Block R with an 80% stake.
· Estimated mean in-place resource number for the eastern lobe of the Fortuna Complex of 553 bcf (92 MMBOE).Recoverable mean resource from the eastern lobe is estimated as 426 bcf (71 MMBOE), exceeding the mean pre-drill recoverable resource expectation of 304 bcf (51 MMBOE) by 40%
· Gas discovery in the deeper-lying Viscata Channel Levee Complex exploration target
· The well also encountered the lateral stratigraphic equivalent interval of the Tranquilla and Iambe exploration prospects, confirming good quality reservoir and significantly de-risking the Forethrust play across the Block
The Fortuna East-1 (R5) well is 7 km ESE of the Ophir Fortuna-1 discovery and had three objectives, each of which was successfully achieved:
1) Primary objective to confirm the eastern extent of the Fortuna Complex
2) Secondary objective to test the Viscata exploration target, and
3) Tertiary objective to encounter the laterally equivalent potential reservoir intervals for the Tranquilla and Iambe prospects.
Fortuna East -1 (R5) encountered a 55m gas bearing column containing a total 40m of net pay in the primary target Late Miocene sands of the eastern lobe of the Fortuna Complex. The gas quality appears to be consistent with that observed in previous gas discoveries in Block R. Pressure measurements indicate communication between Fortuna-1 and Fortuna East-1 confirming an increased 101m gas column in the Fortuna Complex.
Gross mean recoverable resources for the Eastern lobe of the Fortuna Complex as defined by this well are 426 bcf (71 MMBOE), exceeding pre-drill estimates of 304bcf (51 MMBOE). Confirmation of the Eastern lobe, will increase the contingent resources (2C) category of the Fortuna Complex to 798 bcf (133 MMBOE)
Exploration of the secondary target, the underlying mid-Miocene Viscata exploration prospect, was also successful. The well was drilled in a non-crestal position for the Viscata prospect and discovered an 8m gas column within good quality reservoir with a porosity of 21% and a net to gross pay of 48%. The reservoir shares a common gas-water contact with the earlier Fortuna-1 discovery well. The pre-drill estimate for the Viscata exploration target was 359 bcf (60MMBOE). The forthcoming Fortuna West-1 step out exploration well will further define the accumulation and enable estimation of the resource potential of the Viscata discovery.
Fortuna East-1 is the second in the three well Ophir-operated 2012 Block R drilling programme in Equatorial Guinea using the Eirik Raude semi-submersible rig. The well spudded on July 2, 2012 in a water depth of 1,853m before the rig was moved to drill Tonel-1 (R4). The rig moved back to Fortuna East-1 (R5) on July 29, 2012 and the well was drilled to a total depth of 3,465m subsea. Fortuna East-1 (R5) is located 7km ESE of the Ophir Fortuna-1 discovery well and 4 Km ENE of the Fortuna West-1 location.
The Eirik Rauderig has now moved to the Fortuna West -1 (R6) location to test the western lobe of the Fortuna Complex and the Felix exploration target. Results from this well are anticipated in early September 2012.
Nick Cooper CEO of Ophir said:
“The success of Fortuna East-1 improves our understanding and adds further resources to the Fortuna Complex. This combined with the recent Tonel discovery provide anchor assets for the LNG development. The result increases the Fortuna Complex’s 2C resources by 114% to 798 bcf (133 MMBOE), and provides further confidence in the potential of the exploration inventory.
“The Viscata gas discovery and the stratigraphic tests of the potential Iambe and Tranquilla reservoir intervals are also positive results, derisking the large remaining exploration inventory in Block R, which now amounts to more than 10 tcf of gas.
“Ophir is now drilling Fortuna West-1 (R6), the final well in the 2012 EG drilling programme. Fortuna West-1′s primary objective is to test the western lobe of the Fortuna Complex. In addition, the well will provide critical information to define the scale of the Viscata discovery and explore the Felix secondary exploration target. Results from this well are anticipated in early September 2012.” Ends
In light of the imminent Fortuna West-1 result, a call with analysts will be held