Afren takes on Tanzania permit

Offshore staff

LONDON -- Afren has acquired a 74% operated working interest in the Tanga block offshore Tanzania from Petrodel.

The block lies along northernmost coastal Tanzania, directly south of Kenyan blocks L17 and L18, where Afren holds a 100% interest. The licence includes onshore, shallow marine, and deep marine areas.

Existing data includes 200 km (124 mi) of legacy 2D seismic, and 1,200 km (745 mi) of 2D seismic acquired by Petrodel, mainly over the deeper water area.

The block includes a deep basin with a thick sedimentary section which, according to Afren, could host several source rock intervals and reservoir/seal pairings. Potential petroleum plays are Lower Cretaceous sands deposited in deltaic to shallow marine environments, Upper Cretaceous submarine fans, Eocene shelf sands, and Miocene fluvial and deltaic sands.

Various structures, particularly along the western flank of the basin, are interpreted to form viable traps. Some are in shallow water and would therefore relatively inexpensive to drill.

Afren claims that the Tanga block is also a possible source of charge into the southern parts of adjacent Kenya block L18. Oil seeps and shows encountered in previous wells drilled on nearby Pemba Island revealed oil potential.

Prospects defined on the existing 2D seismic grid are Orpheus (347 MMbbl), Calliope/Euripides (523 MMbbl), and Hercules (517 MMbbl).

Petrodel will retain a 26% interest in the block, with Afren reimbursing the company part of the back exploration costs. Afren also will fund all costs associated with acquisition, processing, and interpretation of a seismic survey providing 900 km (559 mi) of shallow and deeper water 2D coverage.

Thereafter, Afren will carry Petrodel through drilling of one shallow water exploration well subject to a cumulative cap on gross costs of $40 million.

03/24/2011

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