Tangiers powering ahead

Monday, 19 December 2011
Bevis Yeo

WITH a little good fortune allowing its Moroccan seismic program to kick off early, Tangiers Petroleum has its foot on the pedal towards proving up the attractive prospects in its offshore Tarfaya block.

Executive chairman Mark Ceglinski told Energy News Premium the survey would come in about three months early, allowing Tangiers to advance its Moroccan exploration drilling program.

The 677sq.km of 3D seismic exceeds the requirements and completes the Tarfaya Phase 1 work program and will further delineate the areal extent of the Assaka, Trident and Tarfaya Marin-A prospects, which have combined best estimate prospective resources of 758 million barrels of oil, while reducing the geologic risk of each prospect.

It adds to the 580sq.km of 3D seismic data it owns over the La Dam prospect.

Tangiers is targeting Jurassic carbonate structures, which are substantial producing structures in the world, at its four primary prospects, although Ceglinski noted there were many other plays in the block.

Africa-focused Kosmos Energy, which discovered and started producing oil from the massive Cretaceous-aged Jubilee field offshore Ghana late last year, is targeting Cretaceous and late Cretaceous sub-salt targets at its Moroccan assets that are also present in Tangier's block.

"Whether it is the same trend or not is a bigger question to be answered over the duration of time. We highly regard their [Kosmos'] technical skill and ability," Ceglinski told ENP.

Speaking on development options, he said it was entirely dependent on what was found. "Oil is always quick to commercialise; gas in Morocco comes down to size. There is a huge demand for gas [and] limited infrastructure. A big gas development, you have to work how you are going to deliver."

Of course, a development of this size will require the right partner and Tangiers is on the hunt for a farm-out partner to carry out what Ceglinski described as the "heavy lifting-type expenses" of drilling the two planned exploration wells and possibly development of the block.

Nor is the farm-out activity restricted to its Moroccan block.

Tangiers is also looking for the right partner for its Australian permits, which include the recently identified Nova and Super Nova gas prospects as well as the Turtle/Barnett oil discoveries.

"We have a data room open, we are just finalising a couple of items on the oil in there. We had some parties on a soft exclusivity basis for a short period of time, we are about to formally open that to all parties," Ceglinski said.

He added this process was expected to be finalised towards the end of the first quarter.

Tangiers plans to shoot 3D seismic over its southern Bonaparte Basin plays before drilling two gas exploration wells aimed at confirming structures, nature and quality of gas as well as potential flow rates. These wells may also appraise and test the Turtle/Barnett oil columns.

Gas discoveries would be commercialised by either feeding into existing or planned LNG projects or domestic gas through an easement that is permitted through its block to shore.

"The gas structures are very significant, we know it is a good time to be looking at those, so obviously there is a lot of effort going into there."

However, Ceglinski said Tangiers placed equal value on the Turtle/Barnett oil discoveries, which are expected to be a very straightforward conventional development that would break even fairly quickly.

"So we want to test both, depending on what we discover in both. That would dictate the next move. It could well be a fast-track oil development which would then bank roll any future gas developments.

"There is no question also that gas will enhance the oil recovery, so we will have a reinjection opportunity that will improve the recovery rates and therefore the economics of the oil.

"It would take a massive effort, but 2013-14 could be realistic for first oil to flow."
Ceglinski said he was excited about Tangiers' progress in the last 12 months since the current management took over.

"We have not only caught up with our work programs, we have exceeded them and advanced time and we seek to drill wells next year. We have added so much value in the last six months to our projects, such that we will get far superior farm-outs and better quality farm-in partners as well.

"I think next year will be a real cracker for this company."

Reproduced with the permission of the copyright holder – Aspermont Limited.

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