Finding Hydrocarbons in East Africa & the Western Indian Ocean

Finding Hydrocarbons
in East Africa & the Western

Indian Ocean

Finding Petroleum Conference,
London, January 21-22, 2010
Chris Matchette-Downes

Part of the Black Marlin Energy group of
companies

6 BBO
Bombay High Oil Fields

6 BBO
Yemen Oil Fields

6 BBO
Sudan Oil Fields

10A 00 4 TCF
2 067 Ethiopia Gas Fields
1+ BBO
Lake Albert Oil Fields 08 EAX ‘s portfolio at the centre of an
underexplored oil & gas play
0
1 surrounded by oil and gas fields and
significant discoveries

L1 Ref Lawver &
8 Scotese 1987

L1 PA Area PA Area B
7 A

1 TCF PA Area C
Tanzania Gas Fields
Block 1101

24 BBOIP
Madagascar Heavy Oil Fields

2 TCF
Mozambique Gas

Fields

Regional Overview

January 2010 Area in square kilometers Area in square acres

Country Blocks Equity Gross Net Gross Net
Seychelles A*, B* & C* 75% 14,946 11,249 3.7 million 2.8 million
47,582 14,209 > 11.8 million 3.5 million
Ethiopia 2, 6, 7 & 8 30% 14,747 2950 3.6 million 0.7 million
Kenya 10A 20% 31,850 15,891 7.9 million 3.9 million
Kenya 1* 50% 4,844 3,250 1.2 million 0.8 million
Kenya 66% 14,900 5,960 3.7 million 1.5 million
L17* & L18* 40% Gross Area Net Area Gross Area Net Area
Madagascar 1101 128,887 53,481 31.8 million 13.2 million

* Operated by Black Marlin

128,887 Km2 gross exploration acreage
11 blocks, 4 countries
Participated in 2 wells & one discovery
Active programme going forth

Corporate Structure

Black Marlin Energy Holdings Limited (BVI)

Black Marlin Energy Limited (BVI)

East African East African Black Marlin Black Marlin DMCC Upstream Petroleum
Exploration Exploration Limited Exploration Limited Services Limited
(Madagascar) Limited (DUBAI) (BVI)
(BVI) (BVI)
(BVI)

East African East African East African UPS Tanzania
Exploration (Kenya) Exploration Exploration Limited (Tanzania)
(Ethiopia) Limited (Seychelles) Limited
Limited (Kenya)
(BVI) (BVI)

The business model has delivered

Farm-in to Africa Oil (Ethiopia and 10A in Kenya) 53,481 km2
net

Award of the Seychelles acreage Share value
Award of L17/L18 in Kenya
Award of 1101 in Madagascar Operatorship

Farm-in to Tanzania 1st Consolidated Profit

1st Discovery

BMEL Incorporated 1st Seismic Operation 1st Exploration Well Kristina RTO
drilled
2009
2005 2006 2007 2008

Why East Africa & the
Western Indian Ocean?

rine

Notional early
Mesozoic, restricted
marine source rock
setting over a vast
area, in part
underlain by older
pre-break up
sources

East vs. West Africa: The differences

• Source rock, timing – Early vs. late Ref GeoExpro
• Style - Passive margin vs. Spreading Ridge 2007
• Complexity - 3 vs. 1 phase
• Data - Less vs. more wells
• Result - ‘Harder’ oil vs. ‘easier’ oil

Since AMINEX drilled Nyuni #1 in 2004, the first well for 14
years, there have been 7 further wells drilled in Tanzania, 5
of which were significant gas discoveries with further
evidence for liquid hydrocarbons, 1 dry well in Kenya, a well
predicated on the fabled Cretaceous source, 4 failures in
Mozambique largely associated with Cretaceous source
fixation and further gas/condensate discoveries associated
with Inhassoro. On Madagascar early work by MOG is paying
off with further mobile oil finds in the Tsimiroro area. To the
south Sunpec discovered light oil in 3113. Drilling has clearly
paid off in Uganda and Seychelles is yet to see an optimally
placed well.

Going forward we have the ExxonMobil Ambilobe; CNOOC
Block 9 Bogal #1,Kenya; Petronas’ Ethiopia; Ophir’s Tanzania,
Tullow’s Likondi #1, Ruvuma; Anadarko’s Rovuma,
Mozambique continued on/offshore programme and EAX’s
drilling programs to look forward too.

Kutch, Cambay & Bombay regions are a primary
analogues for Seychelles - Conjugate margin

• The Bombay Geologic Province, Bombay Geological Province
northwest coastal India, is a
complex of highly hydrocarbon
productive Mesozoic-Tertiary
basins, including the Kutch Basin
and the Bombay Platform

• Basins within the province
provide strong and direct
stratigraphic, palaeogeographic and
depositional-setting analogues for
the Seychelles

• The Kutch Basin was the Late After : C.J Wandrey, U.S. Geological Survey Bulletin 2208-F, 2004
Cretaceous pre-rift counterpart to
the Seychelles and contains an
analogous Jurassic-Cretaceous
mixed clastic succession

• The Bombay Platform has a

The two There appears to be at least
Seychelles oil two source rock families as
evidenced in the biomarker
families assemblages extracted from
the tars. On the left the older
Waxy Algal 1. Lower C29 Liassic/Upper Triassic family
norHopane and as seen in Coevity tars and
significant, 2. AMOCO well source rocks an
Oleanane Upper Cretaceous / Tertiary
source shares some affinities
to the oils from Bombay High
accumulation (Ref O.I.L.S.

database).

1

2

NB high C29, C35 Two very different sterane (M/z 217
doublet and distributions (nb scale differences)
Gammacerane
Upper Cretaceous/Tertiary
Lower Bombay High analogue
Jurassic/Upper
Triassic

NE Seychelles / Area B is
undrilled

Gravity low trend
Potential deep failed rifts
filled with Karoo sediments /
Younger sediments as in NW India?

Seychelles Plateau ABC

15,000Km2
EAX Operator 75%
Avana 25%
PA commenced 28_11_08

Seychelles – EAX PA Areas
emerging lead inventory

X/Y: 200000 300000 400000
Meters
PA Area B 9600000
9600000 Central Plateau 9500000
Failed Rift Grabens

PA Area A
NW Deep Water Basin

Terez Lead
Marto Lead

XG/Y: alate Lead 200000 PA Area B

Meters PA Area A Tazard Lead

Banane Lead PA Area A Praslin
Southwestern Island
Dorad Lead
Zekler Lead Plateau Mahé
Island
Lasker Lead 9500000

9500000 9500000

Libin Lead Sedimentary Sequences in
Deep Rifts
Bekin Lead

200000

Espadon nwar 50km
Lead
Bonit Lead 300000 400000

200000

Seychelles Primary Play
Undrilled Karoo Structures

Owen Bank No. A1 Reith Bank No. 1 Seagull Shoals No 1
(did not reach objective) (breached & no fault seal) (drilled off structure)

X/Y:190000200000

Espadon nwar Lead – Top Karoo PlayMeters

A Espadon BSeagull Shoals #1 (projected and downdip)93500009350000

nwar Lead

9340000 9340000

9330000 9330000
190000 200000

TWT (Seconds)1.0
EAX 2007 & 2009
seismic surveys

Top Karoo

2.0

5km

Espadon nwar Lead: Top Karoo
TWT Structure Map

P10 closure 1420msec TWT
P50 closure 1350msec TWT

10 Km

Tazard Lead – Faulted Plunging Regional High

A EAX07-105, 5275.99 Praslin Lead EAX07-009-SEQ-018, 8202.87 B
40000 EAX07-010, 6877.23
Offset: 50000 60000 70000 80000 0.000
0.000

1.01.000 1.000
2.02.000
TWT (Seconds) 3.03.000 2.000

4.000 3.000

Basement Footwall
Up-dip Seal??

4.000

10km Mapped Horizon

EAX07-185
EAX07-018
EAX07-175

7-017
Tazard Lead, PA Area B
EAX07-115
(3 way dip closure with up-dip basementEAX07-012 EAX07-011

X/Y: footwall seal) 400000
Meters

9600000 EAX07-105 9600000

2.0 0 0 A F
D

2.0 0 0

1.5 EAX07-185

C EAX07-175

EB00

5 PA Area A
25km

B

Kingfisher Discovery, Lake Albert Rift
(3 way dip closure with up-dip
basement footwall seal)

Basement Footwall Ref: Tullow Oil plc – Uganda Analyst Visit – October 2007
Up-dip Seal

TWT (Seconds)

Karoo BA

2km

Northern Madagascar

To the west of the Antsiranana permit
ExxonMobil & operator Sterling are to
drill a deep well to test a vast structure

Block 1101 / Antsiranana
14,000 Km2
EAX 40%

1903 Coal bore hole had to be abandoned
as the drilling apparatus became clogged
with bitumen

Northern
Madagascar

A series of previously
unknown structures
revealed by new
seismic, seeps and
shows in basin break
up margin / hinge
line setting – data
acquired by UPSL’s
accelerated weight
drop crew in 2009

Block 1101

14,000 sq km

1st exploration period
extended to 30th July 2010

Kenya 770 line km of new 2D
interpreted
Blocks L17 & L18
1,267 & 3,577 sq km Completed seabed coring
EAX, Operator 75% programme
SOMKEN 25%
Currently acquiring 300 km of TZ
seismic with UPSL’s Faraday

W Top J Base Base Base E
Miocene u/c Pliocene u/c Quaternary
= Lead
u/c

Top
Cretaceous

Top PT

Top TJ1 ? mid-K marker

0 km 5

Interior Kenya

Only 31 wells drilled in
Kenya – 19 had shows

10A

Block 1, Kenya – Korrof Lead

Play Elements

Trap : Roll-over anticline on fault hanging wall

Reservoir : Karoo (Triassic-Lower Jurassic) Mansa Guda
sandstones : Lower Jurassic anhydrites/shales
Seal

Source / : Lower Jurassic and Permo-Triassic shales

Maturity : Proven generation from basin centre, evidenced
by seeps at Tarbaj

Area : Minimum 5km², Maximum 185km2

Mansa Guda Estimated Prospective Resource
5km
Un-risked Most Likely STOIIP : 305MMBBLS
Permo-Triassic Recoverable : 61MMBBLS

CNOOC currently drilling Bogal
#1 in the Anza basin to SW

Prospectivity Ranking, Block 10A

From AO Brochure (Operator)

Nyuni Permit & Kiliwani
North discovery

EAX participated in 2 wells & farmed out its10% in 2009
Kiliwani North #1 flowed @40 million SCF dry gas day-1

EAX is targeting a major half graben system –
Regional Bouguer residual map, Ogden basin

EAX Blocks 2, 6, 7 & 8

Upstream Petroleum Services Limited

TWT Stop Press: Jan 7th BMEL’s UPSL completed the
0 acquisition of 350 km of shallow marine seismic for
RAK gas in the East Pande Block, Tanzania
1
Faraday 480-800 cu sleeve gun array
2 24 bit SERCEL Seal towed cable – 1st of its kind in the
region (marinised land crew)
1 Km
Very shallow tidal waters, considerable tidal range,
creeks, inlets and channels to the south west of the
Songo Song gas field

Lower cost than conventional transition zone (TZ)
operations

Faraday has moved to the north to survey EAX’s L17 &
L18 blocks

3

TWT UPSL January 2010 towed
0 streamer acquisition

1 Raw acquisition data, East
Pande, coastal Tanzania

1 Km

0
2

1

3

Other advances in exploration technology 2
include: Gradiometry (Falcon in Kenya &
ARKex in Gabon), Seepfinder in Seychelles,
GORES geochemical screening, petroleum
geochemistry

3

Anticipated Work Commitments (2010)

GEOCHEMISTRY SEISMIC SURVEYING EXPLORATION
DRILLING

2010

QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4

Madagascar 300km 3,500m
600km
Block 40% 800m
1101

Kenya

L17 & 65%
L18*

Block 1* 50% 600km

Block 10A 20% 750km

Seychelles

A, B & C* 75% 200 cores 3,500km

Ethiopia 30%

Blocks 30%
2&6
Blocks * OPERATED BY BMEL
7&8

East Africa: The key finds – thus far

Somalia Wingayongo: Oil seep – Jurassic
Mandura Basin oil seeps/shows Wingayongo #1 & #2 - 30m & 40m of tar sand
Ruhoi River (5km from Wingayongo) - Oil seep
Ethiopia Lukuliro: Gas shows - tars, sands in wells
Hilala #3 Mita Gamma: Oil shows
Calub field Mandawa: Oil shows
Mbuo: Oil shows
Kenya Pindiro #1: Wet gas
Mandura Basin oil seeps and shows Lindi #1: Shallow gas blow out
Tarbaj Hill Oil seep Manzi Bay #1,2 & 3. Gas reservoir,
Pandangua #1: Oil shows ~1 tcf+, Msimbati-1x (67MB equivalent)
Ria Kalui #1: Tarry bitumens (Triassic Maji-ya-Chumvi 28MMscfday-1
fish beds) Mtwara # 1 Wet gas blowout
Cities Services wells offshore Kenya: Oil shows Misimbati: Oil and gas seeps

Uganda “The Great Lakes” Mozambique
Albertine graben Tullow/Heritage 1+ billion bbls Mocimboa # 1: Oil & gas shows
Turaco, Paraa, Kibuku, Kibiro oil seeps & Kaiso-Tonya Ponta Unifundo and Pemba seeps
oil & gas seeps Inhaminga oil shows
Buzi gas shows
Tanzania Pande & Termane, 1+ tcf Pipeline being
Kiliwani North #1 40million SCF day-1 expanded Inhassoro 2,000bbl
Makarawe: Tarry bitumens - Karroo age / Jurassic condensate
Tundaua: Oil seep - Jurassic (not Campanian) Sunray wells: Oil shows
Pemba # 5: Oil shows – Jurassic (same as Pemba # 5)
Kiwangwa: Tarry bitumens – Jurassic? Seychelles
Zanzibar #1: Gas shows Reith Bank #1 oil shows & tar balls
Mkuranga #1 Maurel et Prom 19.2 MSCFD – Seagull shoals #1 & Owen Bank #1
thermogenic gas – 5tcf shows
Kimbiji East #1: Gas shows
Tancan: Gas shows Madagascar
Mafia Island: Oil & gas shows Ankaramy #1 Oil shows & coastal bitumens
Songo Songo: ca. 1+ tcf, Condensate in wells # Bemolanga Tar Sands 23B bbl in place
1,3,7,9 & SS10 Tsimiroro 2.2B bbl in place
Okuza island: Oil shows - Jurassic Manandaza #1 light oil discovery
Nyuni Island & well: Oil & gas shows - Jurassic Block 3112 light oil discovery
Lipwapwatawre: Oil seep
Mikandani: Oil seep NW India
Kisangire: Oil shows - Jurassic Bombay High 3 Bbbls, multiple tcf
Cambay basin 2.1 Bbbls, multiple tcf