Around September / October last year the Oil industry media...

Around September / October last year the Oil industry media released a series of news articles such as the one below.

Mini bid round award goes to two newcomers - Cameroon
Included as part of the mini bid round launched by SNH in April 2007, the 1,187 sq km PH-72 (Matanda) block has been awarded to Glencore Exploration and Afex Global.
The block contains the Matanda North gas/condensate field which holds 2P recoverable reserves in the Upper Cretaceous Logbaba Formation estimated at between 4 Bcfg and 2 MMbc to 423 Bcfg and 21 MMbc. Two wells have been drilled and tested in the Matanda North discovery: Matanda North 1 (total depth 3,085m) in 1980 and Matanda North 2 (total depth 3,172m) in 1982.
Previously operator Turnberry Resources, is believed to have mapped six other prospects to which it had assigned the potential for a further 1.8 Tcf of gas and 600 MMb of condensate.

Similar articles from different sources were released. I read one paragraph of an article from a magazine called “African energy magazine.” Issue 124 • 19 October 2007. The article from memory was titled “Matanda debate” The website is available HERE

The balance of the article was only available through subscription and as I could not afford a subscription I pretty much begged the magazine editor to help me get access to the contents. The following text was provided to me.
………………………………………..

CityView’s claim to control the Matanda block has caused confusion in Yaoundé, where the national oil company says the licence will go to Glencore and Afex. Cameroon’s Société Nationale des Hydrocarbures says it is negotiating with Glencore Exploration and Afex Global on a contract for the Matanda block, PH-72.

The block had been licensed to Turnberry Resources of Canada, but their permit was cancelled in January because they had carried out no work on the block.

Perth-based CityView Corporation says it has acquired a controlling interest in Turnberry, which it claims gives it rights to a 40% share the block, but Simon Tamfu, director of exploration at SNH, told African Energy he was puzzled by CityView's announcement. He said Glencore and Afex had emerged as preferred bidders when the block was retendered earlier this year.

“We don't know CityView,” he said. “We knew Turnberry but we cancelled their permit in January.”

Asked about SNH’s comments, CityView denied this was the case.

“The information is totally wrong, the president is investigating,” CityView chief executive Mark Smyth told African Energy.

The block is adjacent to Bowleven’s Etinde permit area, where exploration drilling is currently under way. Smyth told Australia’s Boardroom Radio CityView planned to link up with the Edinburgh-based company and jointly sell gas to the local market.
“Bowleven has a very similar area to CityView and the combination of the two will make a much more economic unit,” Smyth said.

Industry sources have expressed scepticism about Bowleven’s gas-to-power plans, noting that once further planned water storage facilities were complete, AES Sonel would be likely to have sufficient hydro generation capacity except in years of very low rainfall.

Smyth said CityView was also looking at other acquisitions within the Niger Delta area.

Condensate was discovered on PH-72 (the former OLHP-3) in two wells drilled to a depth of 3,000 metres by Gulf Oil USA during the 1980s.

CityView said on 3 October that it had bought the rights to buy 100% of Petro Energy Africa, which it said was the beneficial owner of 57% of Turnberry Resources. It said that the controlling stake in Turnberry would give it operational control of the North Matanda oil field.

But Tamfu said this was not the case. He said it was quite normal for licenseholders to bring in partners, but such arrangements would require government approval, and in any case Turnberry was no longer the PH-72 licenseholder.

Tamfu took over as exploration director from Jean-Jacques Koum, who now heads SNH’s new gas entity.

Glencore and Bermuda-registered Afex are also separately negotiating for three blocks in Equatorial Guinea following last year’s licensing round there (AE 123/15).

I discussed Matanda with MS in light of the news releases and while I am uncomfortable about commenting on those discussions we all know about the BRR interview where he said “ The President has given his blessing for CVI to acquire the Matanda project through Turnberry”. Then we heard that there was an offer for a third party to buy Matanda.

I was confident MS was in control but I personally couldn’t reconcile the article and MS’s confidence.
Anyway the key for me was Kwanza. I felt this was the winner and the one that would propel the share price quickly. Anything else would take a distant second spot to Kwanza.

We had heard and read that Kwanza onshore was secured but I was waiting for absolute news releases that, from memory, were expected “imminently”
Anyway along comes December, Christmas, Orthodox Christmas.
Still nothing.

Matanda comes back to front of mind and I extended my enquiries.
I made contact with lots of companies but finally got a response from this man.



For those of you who do not know him, Mr. Grynberg’s company owns the Logbaba well adjacent to Matanda. He has been involved in Cameroon oil and gas for years and made a bid during the earlier bidding round for the Matanda block. He advised that Turnberry also made a bid but failed. (I could not understand why they bid if they already had a running licence.) He is not aware of any further developments or fights with the President. Basically he confirmed the news articles.

I will not give any conclusions in writing. Too risky!
I wish CVI well with whatever its plans are for Matanda. May the President help you, but I’m sure not going to email the President....then again?


Have to go now. Will be back this evening.