Dussafu update – oil discovered in second sidetrack
Panoro Energy ASA ("PEN", OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil, is pleased to announce that the second Ruche sidetrack well drilling offshore Gabon has encountered oil in the Gamba reservoir. Panoro Energy holds 33.33% in the production sharing contract ("PSC").
The Dussafu Ruche Marine-1 ("DRM-1") well commenced drilling on April 28, 2011 with the Transocean Sedneth 701 semisubmersible drilling rig. The well was designed to test the potential of the pre-salt Gamba and Dentale formations, and approximately 19 metres of pay was discovered in a 28 meter oil column within the Gamba and 10 metres of pay in the Middle Dentale formation. The well reached a TD of 3,463 metres vertical depth. In a sidetrack drilled 1.2 km to the southwest of DRM-1 a further 6 metres of net pay was found in a 15 metre oil column in the Gamba.
In a second sidetrack drilled 890 metres northwest of DRM-1, Panoro Energy announces the discovery of 12 metres of net pay in a 21 metre oil column. Following completion of drilling operations in the second sidetrack the well will be suspended for potential reuse in the future, and the rig will be demobilized.
The well results show that the Gamba reservoir has average porosities around 18-20%, water saturation 35% and good oil mobility with a probable oil water contact at 2,815 metres vertical depth. Initial indications are that the oil in place volume for the Gamba reservoir is around 30-40 MMbbls, with estimated recoverable volumes of 6-15 MMbbls (100%).
"Panoro is encouraged by the Ruche Marine oil discovery in Gabon. We now plan to evaluate potential development concepts for Ruche Marine which, if encouraging, may lead to a commercial declaration as early as 2012. Furthermore, the discovery confirms our view of the high exploration potential of the Dussafu block and allows us to refine and upgrade our prospect inventory in preparation for further exploratory drilling", comments CEO Kjetil Solbraekke.
The new Ruche data will be used to refine the geological model and improve the understanding of the Gamba structure and potential reservoir performance. Reservoir and concept engineering studies are now starting with an aim of evaluating the commerciality of the discovered oil at Ruche.
The Ruche drilling results have provided valuable new information on reservoir quality, charge and trapping mechanisms in the Dussafu pre-salt plays and have demonstrated a working petroleum system beneath the outer Atlantic hinge line in the Gabon Basin, further offshore than any previous pre-salt discoveries in the area. This has positive implications for the prospectivity of the remainder of the block. The Dussafu prospect inventory will be updated and exploration activities in the license will continue with a decision to enter the third exploratory phase of the PSC required after May 27, 2012.
Dussafu Marin is operated by Harvest Dussafu, B.V., an affiliate of Harvest Natural Resources, Inc. Panoro Energy has a 33.33% stake held through a subsidiary company.
For more information, please contact:
Jonas Gamre
Finance & Investor Relations Manager
Tel.: +47 23 01 10 02
Cell: +47 971 18 292
Email: jonas.gamre@panoroenergy.com