As PCL's offshore Kenya blocks L10A & L10B are operated by BG Group (and these blocks are BG Groups only Kenya blocks), then this news release means we now have a drill rig secured.
"During this period the DSM-1 will be used to drill a combination of wells in Tanzania for the Ophir-BG Group Joint Venture in Blocks 1-3-4 and also to drill operated wells for Ophir in Tanzania and Kenya and for BG Group in Kenya."
Here is the full release:
Ophir Energy Plc
09 May 2013
Ophir and BG Group extend the Deepsea Metro I for a further 18 months to facilitate continuous drilling in Tanzania and Kenya
London, 9th May 2013: Ophir Energy plc ("Ophir" or "the Company") announces that it has secured a drilling rig and executed a letter of agreement for Rig Share Assignment with BG Group for the continuation of its 2013-2014 East African offshore drilling programme. Odjfell Drilling is the contract counterpart and drilling service contractor.
The Deepsea Metro I (DSM-1) drillship is currently being used by the Ophir-BG Group Joint Venture in Tanzania. This contract was previously due to expire in June but has now been extended for a further period of at least 18 months. During this period the DSM-1 will be used to drill a combination of wells in Tanzania for the Ophir-BG Group Joint Venture in Blocks 1-3-4 and also to drill operated wells for Ophir in Tanzania and Kenya and for BG Group in Kenya.
The Ophir-BG Group Joint Venture is currently using the DSM-1 to drill the Ngisi-1 exploration well in Block 4. Ophir management estimates Ngisi-1 could increase the mean in-place resource of the Chewa-Pweza-Ngisi hub to 5.8 tcf (4.1 tcf mean recoverable) and would also provide critical scale for gas aggregation and development from Block 4. Gas aggregation from Block 4 will be tied into the Block 1-3-4 LNG development project in Southern Tanzania.
The Joint Venture is currently reviewing the immediate forward programme for Tanzania Blocks 1-3-4. The likely sequence is firstly a satellite exploration well close to the Jodari discovery in Block 1, secondly an appraisal well and DST in Block 4. Thereafter it is planned to spud an outboard exploration well in Block 1 to test basin floor prospectivity by early September. A series of outboard prospects are presently being evaluated for this well.
Once this next phase of the Joint Venture exploration and appraisal programme has been completed, Ophir will take over operatorship of the drillship for exploration in Ophir's Tanzanian Block 7, which is expected to target the substantial Mlinzi feature.
Ophir and BG Group have both utilised the DSM-1 drillship for their Tanzania exploration programme since December 26, 2011. By extending the DSM-1 contract, the parties save on the considerable cost of mobilising a drillship from another region, reducing the drilling effective day rate. This arrangement provides maximum flexibility to effectively explore Ophir's operated acreage while continuing with exploration and appraisal in the Ophir-BG Group Joint Venture.
Nick Cooper, CEO, commented:
"We are very pleased to secure the extension of the Deepsea Metro I drillship, which has already been operating safely, efficiently and successfully for the Ophir-BG Group Joint Venture for 17 months. This will provide continuous exploration and appraisal activities in Tanzania through 2013 and 2014 and, in particular, enables us to plan for tests of the outboard prospectivity of Block 1 and Block 7 in September and November 2013 respectively."
Link to announcement PDF file: http://alturl.com/5dmfb
PCL Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
(20min delay)