Member Info for Moneymunch

The African Energy Chamber spoke to Frank Fannon, former United States Assistant Secretary of State for Energy Resources and current Managing Director of Fannon Global Advisors, about the significance of Namibia’s oil discovery. Fannon was the recipient of the 2021 AEC Lifetime Achievement Award during African Energy Week in Cape Town for his strong support of the African Energy Sector and Making Energy Poverty History.

What are your thoughts on this discovery and what will it mean for the country’s energy sector?

This discovery is a game changer for the country – Namibia’s first oil discovery. Namibia has had 40 plus years of uneconomic or dry holes since the Kudu gas field discovery in 1974. Shell’s Graff-1 confirms to the global industry that Namibia has the resources to attract the world’s best and brightest.

What advice would you give to Namibia on how to handle exploration and production of the discovery?

With a discovery of this potential significance, there are often political voices that would like to start spending money and accelerate timelines or cut corners to meet political rather than business cycles. I would encourage the country to stay on a disciplined path. To focus on the technical elements, safety, and environmental performance, among others. The world, investors, and the broader industries are watching how Namibia manages this discovery. It will be important that the country and the private sector execute the plan.

https://www.businessghana.com/site/news/Business/256332/The-Significance-of-Namibia%E2%80%99s-Oil-Discovery

The Rio del Rey Basin is the location of where Tower's Thali prospect is located, and so lots of reasons why the the Nigerian Beluga Energy would be keen on a farmin....Gla holders...:-)

Ps Beluga Energy agreed to the $15m Garmin when oil was c$40....it's now hitting $90 a barrel, and so no shortage of willing backers one would have thought!!!???

The Niger Delta Basin: Reform Has Finally Come, But Can It Revive Investment In The Oil And Gas Sector?

Jan. 20, 2022

Summary

With a daily crude production rate of around 2 million barrels, the Niger Delta Basin is by far the largest oil producing basin in Africa.Over 85% of the Niger Delta Basin underlies the coastal plain, the continental shelf, and slope of central and eastern Nigeria.The PIA provides the clarity that license holders have been yearning for to make empowered decisions on stalled E&P investments in Nigeria.

Significant potential from untapped discovered resources

The Niger Delta Basin constitutes one of the world's largest Tertiary deltas and most prolific hydrocarbon systems. Notwithstanding the mature status of the Basin, it continues to be highly prospective, boasting a technical exploration success rate of 56%, and an estimated 118 billion barrels oil equivalent (Bboe) of total discovered resource.

With a daily crude production rate of around 2 million barrels, the Niger Delta Basin is by far the largest oil producing basin in Africa. Discovered remaining resources are estimated at 66 Bboe, of which 51% is gas; 26 Bboe remains untapped in unsanctioned assets, and discoveries risk being stranded if they are far removed from infrastructure in the more technically challenging deepwater terrain.

Over 85% of the Niger Delta Basin underlies the coastal plain, the continental shelf, and slope of central and eastern Nigeria. Also included in the basin is a small coastal area and part of the shelf of western Cameroon (where it is called the Rio del Rey Basin), much of the offshore territorial waters of Equatorial Guinea west of Bioko Island (part of the Cameroon Volcanic Trend), and an area of deepwater slope that lies within the territorial waters of São Tomé and Príncipe.

However, Nigeria dominates the area both in terms of current production (93% of current basin output) and resources (94% of recoverable resources). Nigeria's E&P outlook will therefore determine the trajectory for the wider basin.

https://www.google.com/amp/s/seekingalpha.com/amp/article/4480488-the-niger-delta-basin-reform-has-finally-come-but-can-it-revive-investment-in-the-oil-and-gas-sector

Exploration & Production

In our quest to become fully vertically integrated, Beluga Energy Limited is taking giants steps into carving our niche petroleum exploration and production footprints.

We continue to place premium value on highly committed E&P technical and commercial professionals, with robust experience and extensive track record within the upstream oil and gas industry. Our team comprises of highly knowledgeable asset managers and senior technical members with combined 60+ years of industry experience managing subsurface reservoir and engineering projects.

Our approach is to seek assured entrance through Farm-in into producing assets and de-risked assets nearing production, and this shall be executed through a disciplined and systematic pursuit of exploration, appraisal, development and producing opportunities.

Our immediate focus is on Nigeria and Cameroon, with future expansion into other proven basins across Africa. At all time, we shall maintain a balanced portfolio of both Exploration and Producing Assets, with near-term goal of achieving low-cost operations of acquired oil blocks.

https://www.belugaenergy.com/

It's still there!!!??? Gla ;-)

https://www.marinetraffic.com/en/ais/details/ships/shipid:733423/mmsi:566936000/imo:9633575/vessel:MAERSK_VOYAGER

SA news.

Huge oil find in Namibia a 'game-changer' - but what's in it for us?

A "game-changing" oil discovery off the coast of Namibia could not only attract billions in investment into the southern African country but it is set to ignite "white-hot" interest in oil and gas exploration in South Africa's waters too.

On Friday the National Petroleum Corporation of Namibia (Namcor) announced it and its partners – Shell Namibia Upstream BV and QatarEnergy – have discovered light oil at the Graff-1 deep-water exploration well located in the Orange Basin some 270km away from the diamond mining town of Oranjemund.

https://www.news24.com/fin24/economy/huge-oil-find-in-namibia-a-game-changer-but-whats-in-it-for-us-20220209

H.E. Gabriel Mbaga Obiang Lima to Drive Strong Investment Narrative at the Namibia International Energy Conference 2022

H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons, Equatorial Guinea, has accepted an invitation from H.E. Tom Alweendo, Minister of Mines and Energy, Namibia, to attend the fourth edition of the Namibia International Energy Conference. Organized by Rich Africa Consultancy, under the patronage of the Ministry of Mines and Energy, the Conference will take place on the 20th-22nd of April 2022 in Windhoek.

Under the theme ‘The Energy Mix: Positioning for Investment, Industrialization and Growth,” the Namibia International Energy Conference 2022 will unite regional energy leaders and international financiers for two days of dialogue and networking. Recognized as the country’s official thought leadership event, the conference is committed to driving industry growth and development across the country.

With recent sizeable discoveries made by Shell, ongoing drilling campaigns by Reconnaissance Africa, and new explorers demonstrating an interest in Namibia’s high potential oil and gas market, the country is ready to welcome investors into its diverse energy sector. Relying on petroleum imports for a significant portion of its energy supply, the country is focused on establishing domestic supply chains so as to ensure energy security. By accelerating exploration and production, particularly through international oil company (IOC) participation, Namibia is committed to its energy future and will emphasize this at the conference.

https://african.business/2022/02/apo-newsfeed/h-e-gabriel-mbaga-obiang-lima-to-drive-strong-investment-narrative-at-the-namibia-international-energy-conference-2022/

On the back of the Shell discovery and hopefully more good news from Venus-1, as well as oil heading for $100 a barrel and the pandemic becoming more manageable, one would have thought the interest of whoever made the approach in 2019, will be sky high now. Gla ;-)

As previously disclosed, Tower received an unsolicited approach from a Major oil company regarding its license PEL 96 in the second half of 2019. That company has told Tower that it remains interested in working on this project, but has not prioritised it during the first half of 2020, and we expect discussions to remain on the back burner in the second half of the year, or at least until the Covid-19 pandemic situation is clearer. This has not affected our own plans for the license, and we await with great interest the outcome of further work, such as Global's, and also further wells being drilled in Namibia, including Shell's well on license PEL 39 and Total's Venus well, all of which will enhance our own basin modelling and prospect evaluation.

https://www.energy-pedia.com/news/namibia/tower-resources-provides-namibia-update-

TotalEnergies drill ship is still at Venus-1, 70 days since spud, the size of their prospect was off the scale compared to Graff-1 ,.......all bodes well for imminent news of another significant discovery which could lead to feeding frenzy of investment for all things offshore Namibia....Gla ;-)

Namibia aims for first-ever oil output by 2026 after Shell discovery

CAPE TOWN, Feb 7 (Reuters) - Namibia aims to fast track the development of its first oilfield to have production by 2026 following a significant offshore discovery by Shell (SHEL.L), a senior energy official told Reuters on Monday.

Shell on Friday said the exploration well off the coast of the southern African country had shown "encouraging" results with the presence of a working petroleum system with light oil.

"If we do this within the next four years that will be excellent for us, so as the Namibian government we have pledged our commitment to the joint venture team to walk hand-in-hand with them ... to ensure we expedite the field development so that we can produce as quickly as possible," Maggy Shino, petroleum commissioner at the Ministry of Mines and Energy, said in the first official comments from the government since Shell's announcement.

Shell's Graff-1 well was drilled deep offshore in water of more than 5,000 metres.

Shino said it was too early to provide exact volumes of oil encountered at the Graff-1 well or whether the new discovery was sufficient to be a standalone project or will require further exploration in the area.

TotalEnergies is currently drilling another well, Venus, in a nearby block.

"Give us enough time and by May, June, we be able to have enough data accessed to be able to confidently let you know about the quantity we are talking about here," she said.

Shell did not provide details on the size of the resource.

Shell holds a 45% stake in Petroleum Exploration License 39 (PEL 39) where the well is located. Qatar Energy also holds a 45% interest and the National Petroleum Corporation of Namibia (NAMCOR) holds the remaining 10%.

In recent years interest in Namibia's offshore prospects have attracted many foreign companies including Exxon Mobil (XOM.N) following discoveries in neighbouring South Africa as well as Brazil and Guyana, which share geological similarities.

https://www.reuters.com/business/energy/namibia-aims-first-ever-oil-output-by-2026-after-shell-discovery-2022-02-07/

Totalenergies drill ship is still in position at Venus-1, 69 days since spud....all bodes well for another significant discovery off shore Namibia. Gla ;-)

As previously disclosed, Tower received an unsolicited approach from a Major oil company regarding its license PEL 96 in the second half of 2019. That company has told Tower that it remains interested in working on this project, but has not prioritised it during the first half of 2020, and we expect discussions to remain on the back burner in the second half of the year, or at least until the Covid-19 pandemic situation is clearer. This has not affected our own plans for the license, and we await with great interest the outcome of further work, such as Global's, and also further wells being drilled in Namibia, including Shell's well on license PEL 39 and Total's Venus well, all of which will enhance our own basin modelling and prospect evaluation.

https://www.energy-pedia.com/news/namibia/tower-resources-provides-namibia-update-180159

These various plays include leads in the slope channel system and the base of slope/fan setting, similar to Graff and Venus respectively, although we do not yet have enough information to say how closely analogous individual structures may be.

For more information on our Namibian Blocks, please see our website at this link:

https://www.towerresources.co.uk/operations/namibia/

3. Next steps

Tower has already been conducting basin modelling to support technical evaluation of the leads identified to date as part of the work programme for the Initial Exploration Period for PEL 96. We are now moving forward with more detailed and focused geological and geophysical analysis aiming to high-grade areas for further seismic data acquisition, and we will also be looking out for further information regarding Graff and Venus as and when it becomes available. Once this work is complete, we will acquire new 3D seismic data over the most promising leads/prospects in line with our work programme.

Jeremy Asher, Tower's Chairman and CEO, commented:

"We are delighted by the Graff-1 discovery, for the Republic of Namibia and our partners at Namcor, and also for the greater confidence that this discovery gives us in our own Namibian Blocks. As Immanuel Mulunga, Managing Director of Namcor, has said, this should put to rest any remaining doubts about the hydrocarbon potential of Namibia. We hope that this discovery will bring prosperity to Namibia, and that the further exploration and appraisal activity it generates will also reduce costs and provide further insights to assist all of us exploring in the area."

The result at Graff-1 therefore reduces the risk of all leads which may rely on similar source rocks, even though each source rock carries its own characteristics and the risks of migration, charge and reservoir are also unique to each case.

The Graff-1 well also would appear to indicate, if the press reports are correct, that the slope channel system with a stratigraphic trap has enabled successful migration of oil into a potentially commercial scale reservoir, which is encouraging for further plays of the same type in both Namibia and South Africa.

2. Tower's Namibian Blocks

This key conclusion is relevant to our Namibian Blocks because our license area contains a large number of prospects and leads in the Cretaceous turbidites (sandstones) and also in the Albian carbonates and early Cretaceous clastics; and the license area also contains stratigraphic intervals that correlate with regional Lower Cretaceous source rocks which are buried at a sufficient depth to put them in the light oil window. We now have confirmation that these source rocks are potentially capable of producing oil in quantities required to charge substantial reservoirs.

We note that the two wells drilled by Norsk Hydro in the mid-1990s in the Tower block 1911 already penetrated both Upper Cretaceous turbidites and Albian carbonates, with well 1911/15-1 recovering light oil from Albian carbonates, as well as penetrating three source rock intervals including one in the Upper Cretaceous (which is oil-prone, but not mature) and two Lower Cretaceous intervals. In addition to the oil potential from the marine source rocks encountered in the Lower Cretaceous, the oil actually recovered from well 1911/15-1 appears to be from deeper Lacustrine sources, also thought to be Lower Cretaceous, which are clearly mature.

As previously announced, our Namibian Blocks contain two giant structures (identified on the map on our website at the link below as Alpha and Gamma) and four other substantial leads in the Dolphin Graben (identified on the same map as leads A, B, C and D), each of which contain multiple stacked reservoirs including Albian carbonates and Upper Cretaceous turbidites. Both Alpha and Gamma are interpreted as giant 4-way dip closured structures with billion-barrel potential. The Dolphin Graben Leads A, B C & D, all of which are located directly adjacent to areas with mature source rocks, are each estimated to hold between 250-686 million barrels of prospective resources (arithmetically summed gross, unrisked, Pmean), based on Tower's own initial unaudited estimates.

In addition to the structural plays identified above, Tower has also identified significant prospectivity in stratigraphic plays within the Cretaceous and Palaeogene intervals, with potential for deep-water turbidite reservoirs interbedded with mature source rocks.

These various plays include leads in the slope channel system and the base of slope/fan setting, simila

RNS Number : 8129A
Tower Resources PLC
07 February 2022


7 February 2022

Tower Resources plc

Namibia Update and statement regarding the Graff-1 exploration well



Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN), the AIM-listed oil and gas company with a focus on Africa, is pleased to provide an update on activity in respect of license PEL 96 in Namibia, covering blocks 1910A, 1911 and 1912B (the "Namibian Blocks") and in particular the recent news regarding the Shell-operated Graff-1 exploration well.



Tower has noted the announcements by the National Petroleum Corporation of Namibia ("Namcor"), and also operator Shell Namibia Upstream B.V. ("Shell"), and partner QatarEnergy, confirming that the Graff-1 well on PEL 39 has made a discovery in both its primary and secondary targets, and proved a working petroleum system for light oil in the Orange Basin, offshore Namibia. The partners' announcements say that they intend to perform further laboratory work and also intend to drill a second exploration well, to determine the size and recoverable potential of the discovery. The Graff-1 well was drilled, apparently without incident and in around 50 days, to a total depth of 5,376 metres in water depths of approximately 2,000 metres.



Other press reports have indicated that the well has been drilled in a slope channel system with a startigraphic trap, and has encountered at least one 60-metre layer of hydrocarbons, holding an estimated 250-300 million barrels of light oil, in an Upper Cretaceous sandstone reservoir. While the announcements say nothing about the source rock, it appears reasonable to infer that the light oil has been generated in Lower Cretaceous (probably Aptian-Barremian) or possibly older/deeper source rocks.



Tower's net acreage position of 18,637 km2 is believed to be the third largest net acreage position in the Namibian offshore, after Exxon and Eco Atlantic Oil & Gas.



Tower's Namibian Blocks, covering a gross area of 23,297 km2, are in the Northern area of Namibia's offshore, in the Walvis basin which is closer to the border with Angola and the Namibe basin, approximately 950 kms away from Graff-1. While this is a considerable distance, certain conclusions can nevertheless be drawn that are relevant to our Namibian Blocks.



1. Initial conclusions



The most important point is that the Graff-1 well demonstrates conclusively the potential for source rocks in the Namibian offshore to have been buried sufficiently to generate light oil in substantial quantities. In the past, this had been open to question, as the only potentially commercial reservoir previously encountered in the Namibian offshore had been the Kudu gas discovery, and the Lower Cretaceous source rock at Wingat-1 (about 250 kilometres to the South of our Namibian Blocks) had produced light oil but until now no substantial oil-charged reservoir was found. The result at Graff-1 therefore reduces the

Different basins, but same Albian/Aptian source rocks that lie beneath, the same source rocks that Repsol failed to reach or penetrate when they made a mess of drilling Towers Welwitchia-1 well....Shell's discovery and something similar from Totalenergies at Venus-1, results expected imminently will greatly increase interest and investment in all things offshore Namibia. Towers block lies south of ExxonMobil's block, who no doubt will be very interested in Shell's success.

 the prospectivty of the area where Shell and Total are drilling, much of which correlates to the geology of Tower's block, highlighted by the following. Gl :-)

Deepwater turbidites offshore Namibia shown to provide high-quality reservoir sands

Exploration wells operated by HRT during 2012 and 2013 offshore Namibia have significantly reduced the uncertainty on distribution of oil mature Aptian source risk in the Walvis basin Wingat-1 and Murombe-1. Both wells encountered thick Aptian source rock above the Breakup Unconformity.

The Aptian source rock is ubiquitously distributed over the deepwater Walvis basin, although some variation in thickness is evident, as Spectrum mapped two main depocenters divided by a northwest-southeast trending Outer High basement ridge. Above the source rock, there is a significant variation in thickness of Late Cretaceous and Tertiary sediments, which delineates where the Aptian will be mature for oil generation. In the deepwater parts of the basin, the source rock is buried below 3,000 to 3,300 m (9,843 to 10,827 ft) of sediment, pushing the Aptian into the oil window.

Here, a summary of Late Cretaceous high amplitude turbidite sand channels complex play is presented, suggesting a high potential oil discovery in the deepwater Walvis basin is only an up-dip seal away.

The presence of mature oil generative source rock below (and therefore likely to be charging) thick clean quartz rich sands is proven in this basin. All that this basin requires is the proof of trap - an up-dip bypass zone for the deposition of sediment or fault bounded. The hunt for this last risk element is on and the prize will be spectacular.

https://www.offshore-mag.com/geosciences/article/16755987/deepwater-turbidites-offshore-namibia-shown-to-provide-highquality-reservoir-sands

Prospectivity

Tower has identified multiple prospects and leads on the existing 2D seismic dataset, the majority of which comprise of multiple stacked reservoir targets, which could be penetrated with a single well.

Outer High Structural Closures

Two giant four-way dip closed structural traps, with billion-barrel potential, have been identified and mapped on 2D seismic data. The anticlinal structures are situated on a regional structural high on the landward crest of the Walvis Ridge, surrounded by potential source kitchens in which mature oil sources have been proven by offset wells. The largest of the structures (the Gamma Prospect), has more than 1100km² of 4-way dip closure, with stacked reservoir targets including Palaeogene turbidites, Albian carbonates, as well as upside potential in deeper undrilled syn-rift Barremian clastics.

Dolphin Graben Structural Closures

Significant potential has also been identified within multiple structural closures (50 km² to 125 km²) identified and mapped across the Dolphin Graben, all of which are located directly adjacent to source kitchens. More than eight 3-way fault dependent and 4-way dip closed structural traps have been identified so far, all of which have multiple stacked targets, which include Palaeogene and Cretaceous turbidites as well as Albian carbonates and deeper syn-rift clastics.

Prospectivity

Tower has identified multiple prospects and leads on the existing 2D seismic dataset, the majority of which comprise of multiple stacked reservoir targets, which could be penetrated with a single well.

Outer High Structural Closures

Two giant four-way dip closed structural traps, with billion-barrel potential, have been identified and mapped on 2D seismic data. The anticlinal structures are situated on a regional structural high on the landward crest of the Walvis Ridge, surrounded by potential source kitchens in which mature oil sources have been proven by offset wells. The largest of the structures (the Gamma Prospect), has more than 1100km² of 4-way dip closure, with stacked reservoir targets including Palaeogene turbidites, Albian carbonates, as well as upside potential in deeper undrilled syn-rift Barremian clastics.

Dolphin Graben Structural Closures

Significant potential has also been identified within multiple structural closures (50 km² to 125 km²) identified and mapped across the Dolphin Graben, all of which are located directly adjacent to source kitchens. More than eight 3-way fault dependent and 4-way dip closed structural traps have been identified so far, all of which have multiple stacked targets, which include Palaeogene and Cretaceous turbidites as well as Albian carbonates and deeper syn-rift clastics.

Graff and Venus, will target different reservoir/trap pairs, to clarify what play combination is effective on this margin. Graff-1 will target a Late Aptian/Albian sandy slope hybrid turbidite contourite channel system and Venus-1 will target slightly older sands, in an Aptian base of slope/fan setting. Both targets appear to have an element of stratigraphic trapping.

.......

With each well drilled in the deepwater of Namibia and South Africa we have moved closer to removing the uncertainties that surround the exploration jigsaw puzzle. After the HRT wells we could see for the first time the picture on the ‘exploration puzzle box’ and with these next two wells we will see which reservoir/trap pair will fit with the source rock (or perhaps both will!). Following the example of the Liza discovery in Guyana it is clear that deepwater discoveries are best monetised quickly, so it is expected that success will ignite a surge of activity over the next five years with a string of follow-on exploration interest, to indeed rival the activity that Guyana and Suriname have experienced in the last five years. Good geoscience and ‘brave wells’ have led the way to the start of this race; now it is time to settle into the blocks, get under starter’s orders – and we’re off!

https://www.geoexpro.com/articles/2021/11/south-africa-poised-for-exploration-greatness

Just had another look on Marine Traffic and it's heading to Walvis Bay, but Totalenergies drill ship still remains at Venus-1???