A&D marketing for the oil and gas industry

Namibia

Namibia

Offshore / Exploration

Envoi has been engaged by Serica Energy to assist in the search for a partner for their Licence 047, covering a very prospective 17,000km2 area of the largely unexplored Luderitz Basin, offshore Namibia. Serica own an 85% interest in the Licence which they operate on behalf of their partners NAMCOR (10%) and Indigenous Energy (5%).

Serica’s comprehensive work on the Licence, since award in 2011, has included acquisition of a large 4,179 km2 3D seismic survey in the southern part of their acreage. This has been instrumental in defining the area’s prospectivity and accurately imaging drillable prospects for the first time (not possible on the pre-existing 2006 2D data). These contain the same stacked Cretaceous shelf slope clastic & platform carbonate plays that the Majors have recently been farming into in the Walvis Basin immediately to the north, and where Tullow is now scheduled to drill a well in September. Serica has so far mapped a total of 6 prospects and leads in their Licence, of which the four primary closures have a combined mean resource potential of over 2.5 Billion bbls recoverable and an upside of over 4+ Billion bbls recoverable.

Basin modelling, utilising the seismic and few existing regional wells, supports the presence of similarly stacked oil prone early Cretaceous restricted lacustrine & Middle to Upper Cretaceous marine source rocks in the Luderitz Basin. Hydrocarbons are already proven regionally by the Kudu field in the Orange Basin to the south, albeit where source rocks are more deeply buried and therefore mature for gas. More significant is the Wingat-1 well drilled by HRT in 2013 on strike to the north of Serica’s acreage in which 41° API oil was recovered and typed to the same mature Lower Cretaceous source rocks that are modelled in the Luderitz Basin’s Inner Palaeo-graben where they can charge the clastic slope and carbonate play prospects being mapped up-dip on the 3D. Proven source analogues also exist in the producing basins offshore Brazil to the west and recently discovered North Falklands Basin to the south which were all part of the same Cretaceous Palaeo-Basin during early opening of the Atlantic.

Prospects B & F have been high graded by the 3D and are now ‘Drill Ready’. Prospect B is a very large Lower Cretaceous carbonate platform structure with an aerial and vertical closure of 700 km2 and over 300m respectively. Serica estimate a recoverable P50 resource of 700 MMbbls and an upside in excess of several billion bbls. Prospect F and D are also considered drill-ready, offering a four way dip and pinch out Lower Cretaceous early post rift shelf-edge clastic closures at the base of slope play which can not only be tested in shallower water (~500 m WD), but is also considered lower risk due to the presence of Class I- III AVO’s, indicative of at least porous, hydrocarbon-bearing clastic reservoirs. Serica estimate a gross recoverable P50 resource potential of 200 MMbbls and an upside of 500 MMbbls for each prospect respectively.

Serica is offering one or more parties a material share of their 85% equity, in return for funding an exploration well, estimated likely to cost around US$ 30 million gross (dry hole). The current licence period continues until December 2019 and does not contain a commitment well.