Gaffney, Cline & Associates confirm increased STOIIP for the Kundji area, Republic of Congo (Brazzaville)
Panoro Energy ASA ("PEN", OSE ticker code), the independent oil and gas company with assets in West Africa and Brazil is pleased to provide an update on the Stock Tank Oil Initially In Place (STOIIP) assessment for the Kundji development area within the ("MKB") license, Republic of Congo (Brazzaville).
Following the drilling of the first four wells of the pilot program (KUN-201, -202, -203 and -204) Gaffney, Cline & Associates (GCA) has conducted a review of Panoro’s STOIIP assessment for the Kundji area of the MKB license. Based on the log results of these four wells, the revised STOIIP assessment more than doubles the P50 STOIIP assessment conducted by GCA in April 2011.
The GCA P50 STOIIP assessment prior to drilling these four wells was 223 MMstb and this has now been revised to 480 MMstb, representing an increase of 115 %. The P10 STOIIP assessment has increased from 645 MMstb to 1010 MMstb, an increase of 57%. Similarly the P90 STOIIP assessment of the Kundji area has now increased from 90 MMstb to 278 MMstb, an increase of 208 %.
GCA has not conduced a review of the Mengo or the Bindi areas of the MKB license, however a review conducted by AGR in January 2010 assessed the Mengo P90, Most Likely and P10 STOIIP to be 226 MMstb, 899 MMstb and 1656 MMstb respectively and for Bindi to be 24 MMbbl, 163MMstb and 443 MMstb respectively.
CEO Kjetil Solbrække commented, “This Gaffney Cline & Associates´ review provides support to our conclusion that the recent drilling has significantly increased the oil in place estimate for the Kundji area”
The MKB permit is a 700 km2 license onshore in the Republic of Congo. The Mengo, Kundji and Bindi fields contain light (32° API) oil in low permeability Lower Cretaceous sandstone reservoirs and had a total of six producing wells drilled by Elf in the 1980's and 1990's. The permit was reissued to Société Nationale des Pétroles du Congo (“SNPC”) and partners in 2009. Panoro Energy holds 20% in the license through its subsidiary company Prevail Energy Congo.
For further information, please contact:
Carl Peter Berg, VP Commercial and Investor Relations
Tel: +55 21 3078 7472
Cell: +55 21 8541 1907
Email: carl.peter.berg@panoroenergy.com