"What would be the significance in this deatil from the report. Why go ahead with infrastructure if they are not confident on the resources there?"
They have a proven resource at Matanda.
CityView is pleased to announce that it has acquired the right to take up a 28.5% of Turnberry Resources Inc. (“Turnberry”) which equates to a net 20% interest in North Matanda PH72 oilfield. A report by CityView’s consulting geologist Eur.Ing. Dr Michael Smith FIMMM, C. Sci. C. Eng. is attached. The Matanda block (1187 km²) PH-72 (former OLHP-3) is situated in the northern part of the Douala/Kribi-Campo basin (see attached maps) covering the northern half of the Wouri estuary and surrounding onshore areas. The block is partly onshore and partly shallow offshore. Condensate was discovered in two wells drilled to a depth of 3,000 metres in the permit by Gulf Oil USA during the 1980s. Gulf, who were looking for a giant oilfield similar to that found in the Niger delta, relinquished the permit. Gulf, as operator, based on the wells, seismic and testing, quoted the following reserves of condensate;
P 60 MMBBLS P+P 120 MMBBLS P+P+P 300 MMBBLS
According to Dr Smith, six other prospects exist in the licence area (two are offsets of discoveries outside the licence). Turnberry considers they have a potential for a further 1.8 TCF natural gas and 600 MMBBLS of condensate. Condensate prices from this region historically trade at a premium of US$3 to the price of Brent crude oil. West African condensate prices currently exceed US$70 per barrel. The entry cost to CityView will be US$1.3 million total in tranches plus half of the NPV of a net 20% interest calculated by a leading valuer. CityView has agreed with the holder of another 28.5% interest (20% net) in Turnberry to treat the two companies combined 57% interest in Turnberry as concert parties with mutual pre-emptive rights in the event of sale. Gas production will be directed via a new 13 kilometre pipe line to a 100 megawatt power station to be constructed by Quest, which will finance future expansion of operations. Negotiations for CityView to acquire an onshore oilfield in the Kwanza Basin of Angola are on-going. Enquiries: Mark Smyth Chief Executive Officer Contact: Telephone (61-8) 9226 4788 Facsimile: (61-8) 9226 4799 Email: [email protected] Website: www.cityviewcorp.com
Cheers.
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
