The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Please, read the text from the link, there is a link in the text that may be interpreted as being part of the article.
("Shell and Total Namibia Offshore Oil Discoveries 'Likely in Billions of Barrels'") But the rest is accurat. :-)
Shell Strikes Oil Again in Namibia with Jonker-1X Deepwater Exploration Well
OE Staff March 6, 2023
©Deepsea Bollsta, previously known as West Bollsta - Credit: Geir Vinnes/MarineTraffic.com
©Deepsea Bollsta, previously known as West Bollsta - Credit: Geir Vinnes/MarineTraffic.com
After discovering oil and the Graff-1 well in Namibia in 2022, Shell has now made another offshore oil discovery in Namibia, this time at the Jonker-1X deep-water exploration well, QatarEnergy and Namcor, Shell's partners in the PEL-39 Exploration License, offshore Namibia, said.
Using the Deepsea Bollsta semi-submersible drilling rig, the Jonker-1X well was drilled to a total depth of 6,168 meters in a water depth of 2,210 meters.
The acquired data is being evaluated, and further appraisal is planned to determine the size and recoverable potential of the discovery, QatarEnergy said.
The drilling operations started in December 2022 and were completed in early March 2023.
Located approximately 270 kilometers off the coast of Namibia, in the deep-water offshore, the Jonker-1X discovery is the third well drilled on the license held by Shell within a year, Namcor said.
The PEL-39 Exploration License is held by a consortium comprised of QatarEnergy (with a 45% working interest), Shell (Operator with a 45% working interest) and the National Petroleum Corporation of Namibia “NAMCOR" (with a 10% working interest).
©NAMCOR
Shell and Total Namibia Offshore Oil Discoveries 'Likely in Billions of Barrels'
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “We are pleased with this encouraging discovery, which is our third in Namibia. I would like to take this opportunity to congratulate our partners Shell and NAMCOR, and to congratulate and thank the Government of the Republic of Namibia, which has been very supportive of this exploration effort.”
NAMCOR's Upstream Exploration Executive, Victoria Sibeya said:“NAMCOR would like to take this opportunity to congratulate our partners Shell (Operator) and QatarEnergy for safely drilling the Jonker-1X deep-water well. The encouraging results from the well are a geological testimony of the significant hydrocarbon potential in the deepwater play of the Orange Basin. We look forward to the appraisal activities and our collaborative relationship with our Joint Venture partners and our shareholder, the Government of the Republic of Namibia, to fully assess the commerciality of this discovery”.
Immanuel Mulunga, Managing Director of NAMCOR, said: “We are delighted to announce this third oil discovery after the success of the Graff-1X andVenus-1X discoveries by Shell and TotalEnergies in 2022. This discovery has proven the exciting and world-class potential of the deep-water Orange Basin”.
https://www.oedigital.com/news/503382-shell-strikes-oil-again-in-namibia-with-jonker-1x-deepwater-exploration-well
1. " ....we really like the prospects we've got -- the nice thing that came with 3B/4B is a full 3D survey that's never drilled upon. So we've reprocessed it, and it's very good quality data and we have several high-quality drillable prospects..."
2. "...So that's what we want in 3B/4B. I think for bringing in a partner, I think it's a useful thing to have an ESIA done. We've got a CPR competent person's report being done, should be done in March, for sure, and we will publish the results of that."
How to understand the language, before a deal is completed? What one says in a speech can signal to counterparties as well as one's own shareholders. Therefore, less importance should be given to the number of holes and upfront or the option of drilling yourself.
What matters is the outcome of the drilling in and around Venus-1.
Don't underestimate that there is an internal bureaucracy at the majors, despite all their own resources, that makes it easier to go in one direction given a CPR and an environmental clearance.
Can the parties proceed with a different farm-out than 55% gross? Perhaps the results from the drilling at Venus-1 are a signpost?
From AOI's presentation concerning, among other things, block 3B / 4b, new structure in the Lundin group e t c:
https://seekingalpha.com/article/4582947-africa-oil-corp-aoiff-q4-2022-earnings-call-transcript
We are waiting for the deep results from Shell, and having the findings in "Venus-1" to be further drilled by Total, et al.
Namibian resources shape up:
https://www.zawya.com/en/press-release/africa-press-releases/the-african-energy-chamber-aec-to-establish-office-in-namibia-to-promote-local-content-capacity-building-fja5e7j0?fbclid=IwAR3qs_c5babVhw1chezDQh_8u7uykt9MdOH8krzU_tVoZbsqR9HBzY2AexU
This is Maurel&Prom, drilling in Q4 in between our blocks:
file:///C:/Users/46707/Downloads/activity-for-the-year-2022%20(1).pdf
Sorry for my Swenglish. :-)
Achored in Walvis Bay 2023-02-16 05:36
For what it is worth:
https://www.google.com/search?q=SHELL+SHARE+PRICE&rlz=1C1GCEB_svSE971SE971&oq=SHELL+SHARE+PRICE&aqs=chrome..69i57j0i512l4j0i22i30i625l5.17867j1j7&sourceid=chrome&ie=UTF-8
Thanks for reminding us about the numbers, harel. (And for your efforts on the ECO thread over time.)
The AOI rig is some 8-10 days from the site for the new drilling at the Venus finding. Shell are close to reach down to their primary target on the supposed "Venus east", the same geological formation.
Value creation in the field.
Thanks for your views.
Nobody commented the near term goals:
"So, for now, personally, I'm waiting for the "East Venus" results and the following farmout of 3B / 4B. :-)"
As for the Tullows act in the past: That has, stringently speaking, no relevance what so ever to their stated goal of using their resources in the region and show value by outfarming assets there. They own 60% in our block and sits on the initiative. They may dilute their interest and have some drilling for free. (Seems a bit better than give it away, as had been proposed that they have done on this thread?!)
Walvis basin. ECO have stated that they have had increased interests in their blocks. I suppose the datarooms findings is of more relevance here rather than the upfront payment from different block owners. Looking forward for the news flow concerning Walvis basin.
While waiting for news from Shell. :-)
The farmout of 3B / 4B have, because of obious reasons, no details before it is presented. Personally I expect 2 carried drillholes. The timing is set to be before the end of Q1.
The farmout of the blocks in the Walvis basin is my own thoughts given the 2+3 drill campaign in the block between ours. So, for m e, that is what I "know". You may have another point of view, we all have our own perceptions here. Just sharing.
"So, for now, personally, I'm waiting for the "East Venus" results and the following farmout of 3B / 4B. :-) "
Other investors here might have taken Tullows farmout and the start of the drilling campaign in the Canje block into their valuation. Probability, and so forth. I prefer sleeping well and take the news when it comes. Why is that? It's my opinion that the upcoming work on 3B / 4B does not look like anything else in ECO's history. We anticipate it is huge, is it 10% of something bigger than Venus? I expect that question to be stated during the drilling. I bought after the dip and now my patients is tested the year to come. :-)
What if my "story" /" business model" is wrong, and we will have one or two drillings on the Canje block and one on Orinduik in this year? Will that affect my good night sleep? I'll update you on that. :-)
We know what we have, but do we know what we get?
Personally I am in here for the 3B / 4B drilling.
Near term we have news from Shell concerning their drilling down to the Lower Cretaceous. After that we will have a deal concerning the farm out of gross 55% of the 3B / 4B block. ....as drillingmay have started to test the extension of the Venus findings. Or before.
Personally I take it almost fore granted that there will be a farm out of the blocks i Walvis basin before and/or after the drilling in the block between our blocks in Q4.
There are two different paths that is outside of my equation, but they may still suddenly be in the news flow: The first of the 12 holes to be drilled in the Canje block and the farmout from Tullow in our Guyana block.
Do we have something more than this for the Tullow drilling?:
https://oilnow.gy/featured/tullow-expected-to-drill-amatuk-well-in-2023-after-relinquishing-20-of-orinduik-block/
And Canje:
https://www.spglobal.com/commodityinsights/en/ci/research-analysis/2022-exploration-drilling-review-and-2023-high-impact-well-hiw.html
So, for now, personally, I'm waiting for the "East Venus" results and the following farmout of 3B / 4B. :-)
"ExxonMobil’s new oil discovery off Guyana could underpin future development
EXPLORATION & PRODUCTION
January 26, 2023, by Melisa Cavcic
U.S.-headquartered energy giant ExxonMobil has made a significant new oil discovery at the Stabroek block, which boosts the block’s hydrocarbon resources, fortifying the oil major’s existing portfolio of extensive development opportunities offshore Guyana.
The new oil discovery, made at the Fangtooth SE-1 well on the Stabroek block, was disclosed on Wednesday, 25 January 2023, by ExxonMobil’s partner on the block, Hess Corporation. The Stabroek block covers 6.6 million acres (26,800 square kilometres) and is operated by ExxonMobil’s affiliate Esso Exploration and Production Guyana with a 45 per cent interest in the block. The company’s partners in the block are Hess Guyana Exploration (30 per cent), and CNOOC Petroleum Guyana (25 per cent).
According to Hess, the Fangtooth SE-1 well encountered approximately 200 feet of oil bearing sandstone reservoirs. This well was drilled in 5,397 feet of water by the Stena Carron drillship. ExxonMobil’s new discovery is located approximately 8 miles southeast of the original Fangtooth-1 well, which had encountered around 164 feet of oil bearing sandstone reservoirs.
Hess confirmed that further appraisal activities are underway, highlighting that Fangtooth will add to the Stabroek block’s gross discovered recoverable resource estimate of more than 11 billion boe. The firm further underscored that this has the potential to underpin a future oil development on the block.
The new discovery adds to the continued exploration success offshore Guyana, as ExxonMobil has made over 30 discoveries on the block since 2015. The U.S. oil major’s first two sanctioned projects off Guyana are Liza Phase 1 and Liza Phase 2, which are producing above design capacity and are currently operating at a combined gross production capacity of more than 360,000 barrels of oil per day (bopd).
ExxonMobil’s third project, Payara, is on track to come online by the end of 2023 with a gross production capacity of approximately 220,000 bopd, using the Prosperity FPSO. The U.S. player’s fourth project, Yellowtail, is expected to be on stream in 2025 with a gross production capacity of roughly 250,000 bopd, using the ONE GUYANA FPSO.
In addition, ExxonMobil submitted for approval a plan for a fifth development, Uaru, to the government of Guyana in the fourth quarter. Pending the government’s approvals and project sanctioning, this project is expected to have a capacity of approximately 250,000 gross bopd with the first oil anticipated at the end of 2026.
A few months ago, Japan’s MODEC secured a FEED contract for Uaru FPSO. The firm will design and construct this FPSO based on its M350 newbuild design, which will be able to produce 250,000 barrels of oil per day, will have an associated gas treatment capacity of 540 million cubic feet per day, and a water injection capacity of 350,000 ba
Part I
"Orange basin: Shell hits hydrocarbons in world's hottest new hunting ground
Jonker-1 wildcat has founds hydrocarbons on a different geological play to Shell's previous Graff and Rona finds offshore Namibia
23 January 2023 11:29 GMT UPDATED 23 January 2023 12:09 GMT
*By Iain Esau in London *
The temperature is rising again in Namibia’s Orange basin, the world’s hottest new hydrocarbon hunting ground, with Upstream told that early signs from Shell’s Jonker-1 exploration probe are promising.*
Northern Ocean’s semi-submersible Deepsea Bollsta began drilling the high-profile well in Block 2913A in mid-December.
The probe is chasing a different geological play to the Upper Cretaceous, light oil discoveries made last year by Shell's Graff-1 and La Rona-1 exploration wells.
Instead, Jonker-1 is targeting an eastern extension of the Lower Cretaceous oil and gas play that TotalEnergies hit in adjacent Block 2913B in 2022 with its Venus-1 probe, potentially Africa’s largest ever offshore discovery.
Three informed sources told Upstream in recent days that Jonker-1 has hit hydrocarbons in a shallow reservoir, offering significant encouragement for what may yet be found in the probe’s deeper primary objective.
It is understood that Shell was running in-hole flow tests on this secondary target last week.
Shell “has found something interesting in a shallow target and is drilling ahead to the thicker primary objective,” said one well-watcher.
Another exploration source said: “They have a hit in the first target (and are) testing it.”
A third well-placed contact agreed, saying last week: “They are testing at the moment.”
The closed-hole test equipment used by Shell would allow it to achieve flow rates of about 2000-3000 barrels per day, according to an observer with knowledge of downhole equipment.
However, because this type of test is short-lived compared to a full production test, it will not give a true indication of the pressure “build-up” rate which is vital to develop an understanding of a reservoir’s true potential.
The size of Jonker is not known, but explorers suggested Shell would only drill this probe ahead of appraising and testing Graff if the structure’s size is significant and has the potential to host higher quality reservoirs.
“Shell are chasing much better reservoirs than Graff and La Rona which, while they encountered hydrocarbons, have questions over their deliverability,” remarked one knowledgeable source.
Multiple contacts in the southern African exploration community have given the name Venus East or East Venus to Shell’s prospect.
However, based on current knowledge, Jonker is not expected to be in direct communication with the Venus discovery.
“It looks to be a separate closure on the same play,” said an explorer familiar with Namibia.
Another source agreed but believes Jonker does stretch into TotalEnergies’ acreage.
“It’s separate but does it extend over the border.”
If Shell does make a discovery at Jonker
Part II:
"“It’s separate but does it extend over the border.”
If Shell does make a discovery at Jonker and the prospect is found to either be linked directly to Venus or traverse the boundary between blocks 2912A and 2913A, then unitisation will be needed.
Any future allocation of hydrocarbon resources between the two operating groups could, however, be smoothed somewhat by the presence of Qatar Energy as a partner in both Venus and Jonker.
Shell declined to comment on the status of its latest Namibian well.
Shell operates Petroleum Exploration Licence 0039, which covers blocks 2913A and 2914B, with a 45% working interest.
QatarEnergy also has a 45% stake while state-owned Namcor holds 10%"
I shall admit that when I bought on the dip after the dry hole i S A my expectation was with the only focus on the upcoming news flow concerning 3 B /4 B, nothing else. Fair enough for me. Wait a year and let it flow.
As thing turns out that seems to be a too conservative view:
1. Media claims that a farm out by Tullow will be presented and a that the target selection already is done on Orinduik. (A give away of Orinduik, instead of selling it, is of course fake news without any source, because there are not such a source.)
2. Our Namibia blocks in Walvis Basin is on both sides of the external upcoming drill campaign to start in Q4 2023. Let's see how ECO-management uses this opportunity for a farm out in Walvis basin.
3. Other events.
a. The upcoming drilling to establish the size of the findings on the Venus prospect. How many billions of barrels?
Assuming impact on the price of our farm out in the coming days / weeks seems relevant.
b. Also noted the statement from our CEO that the current portfolio do not need further financing, Was that a message to current shareholders or an upcoming new partners, a new Azinam deal? Any deal will be presented with shareprice between CAD .50-.60. IMHO
"'We are extremely pleased to have received the South African authorities' final approval and to be increasing our interest in Block 3B/4B to 26.25%. The Block looks to be a very exciting licence for all the partners involved. Recently completing a full reprocessing of the 3D data on the Block, we are upbeat about the prospectivity of the licence and following the significant oil discoveries, Venus & Graff, made earlier in the year offshore Namibia Orange Basin, and we are pleased to be strengthening our working relationship with Ricocure and Africa Oil Corp.
We are seeing growing industry interest in the entire Orange Basin, and in particular in Block 3B/4B, and as announced last month, a collaborative farm out process (of up to a 55% working interest) is underway. In the past six months, we have worked very closely with our partners to identify and determine the Block drilling prospects for a drilling campaign we are contemplating for next year.' "
Is the deal already on the table just awaiting this milestone? Interesting weeks to come.
A 3 D-farmout. We have an indirect last date in the text. Will the deal be public before an announcement from Tullow concerning Orinduik? Orinduiks next round starts January 15. New operator? Are the upcoming partner in the process of selecting which part of the block that will be left behind, was it 20% going into the next phase?
Interesting that ECO already has requests of interest for drilling activities where the company is the actual operator during 2024-2025.
There is a life after (1) 3b/4b, (2) Orinduik, (3) Canje, now indicated under 2024-25. If this source is used as a basis.
"NEW YORK CITY –A number of drilling campaigns will soon get underway off Namibia as the south African nation seeks to move forward with the development of its offshore energy resources, according to Evercore ISI’s latest Offshore Rig Market Snapshot.
The firm noted that Shell has kicked off its new three-well exploration campaign in Namibia this week, with the Deepsea Bollsta spudding the Jonker-1 wildcat about 18 km from the Graff-1 discovery. Idled offshore Norway since March, the sixth-generation semisubmersible commenced a one-year $124 million or $340,000/day contract with a six-month option that could keep it busy to mid-June 2024.
Evercore also noted that a second floater is expected to be on rate offshore Namibia by mid-February, with the Tungsten Explorer mobilizing from the Eastern Mediterranean for a two-well appraisal program at TotalEnergies’ Venus discovery. The 225-day contract is reportedly valued at $79 million, or $351,000/day. Unexercised options could keep the seventh-generation drillship contracted out to February 2026.
According to the report, Total contracted a second rig for Namibia this week and will mobilize the warm-stacked Deepsea Mira from Norway for a 300-day exploration and appraisal campaign at Venus in 2Q 2023. The new $135 million contract implies an average dayrate of $450,000/day for the sixth-generation semisubmersible but likely includes reimbursement for mobilization and reactivation which Odfjell Drilling pegged at $45 million.
All three floaters should be on rate through next summer and into the fall, with options potentially keeping Namibia’s floater count at a record three units through 1Q 2024.
Evercore also noted that S&P Global is tracking a probable (>50% probability of proceeding in the indicated timeframe) development tender from Total for Namibia commencing in mid-2024, as well as four possible (<50% probability) exploration tenders from Eco Atlantic and ExxonMobil for 2024-2025."
https://www.offshore-mag.com/regional-reports/africa/article/14287214/report-drilling-campaigns-get-underway-offshore-namibia?fbclid=IwAR1rLi91suNQ4bWUPx0m8UmvdwgYmEwyTMh9xCGcC7gsvA5C-GVwwAN8Pls
Each drilling will have it's own build up news. That is true for (1) 3b/4b, (2) Orinduik, (3) Canje and (4) competitors drilling in adjacent blocks.
The news build up will start with a release concerning farmout deals in 3b/4b and Orinduik, that is in the earlier part of the timeline. Will Eco wait until after the drilling of the adjacent prospects in Namibia? Personally I would have spread my risks as well before and after the drillresults,leaving an upside to part of a deal after the results.
Will Eco secure a life after the high impact drilling on these blocks mentioned above? Will there be a new Azinam deal? The high impact wells are a catalyst to use as money when doing a deal through shares. After proper news flow and strong share price development.
The wildcat results from nearby Venus is what it is.
The deal, when it is public, will be a signal on the willingness of a major to go forward here. After news we know more about who will be the operator and under witch circumstances ECO is participating in the drilling campaign.