Calima has entered into a Petroleum Agreement for offshore Block 2813B covering an area of 5,344 sqkm in the Orange River Basin of Namibia. The contract, which was awarded pursuant to a direct application to the Government, has an initial investment term of four years. During the initial term Calima has committed to acquire seismic data and undertake a detailed prospectivity review.
The sedimentary basins offshore Namibia cover an area of approximately 500,000 sqkm, which is comparable in size to the NW Shelf of Australia. However Namibia is underexplored with only 15 exploration wells having been drilled to date resulting in the Kudu gas and condensate discovery in 1974.
Over the period 2012 to 2014 a total of four deep-water wells were drilled and while none of these resulted in commercial discoveries they did prove the presence of mature oil-prone source rocks and thick high-quality reservoir sequences.
Exploration activity came to a halt after the oil price crash of 2014, however encouraged by the results of these initial wells, the industry is now showing renewed interest. Over the last six months Exxon, Total, Tullow, ONGC, Africa Energy Corporation and BW Offshore have all farmed-in to projects offshore Namibia and over the next twelve months at least four deep-water wells are expected to be drilled. Of direct relevance in supporting the value proposition offered by Block 2813B, Total farmed-in to the acreage immediately south in October 2017 and, over the next 12 months, Shell are reported to be drilling two wells in acreage immediately to the southeast.
After conducting a more thorough review of the available data Calima proposes to acquire new seismic data over Block 2813B to further demonstrate the prospectivity of this acreage. Based on the work done to date it is expected that the source rocks encountered by the Moosehead-1 well should be present and mature over a significant part of the block and there appear to be a number of potential reservoir sequences which should be able to receive an oil charge from these intervals.
The interests in the Block 2813B Petroleum Agreement are:
Calima Energy (Namibia) Ltd 56% (Operator)
Trago Energy Pty Ltd 20%
Harmattan Energy Ltd 14%