Hyperdynamics will seek a two-year appraisal period to test the Fatala prospect area for commercial resources, but will go solo after partner South Atlantic Petroleum (Sapetro) decided to withdraw from the joint operating agreement (JOA) and production sharing contract (PSC) offshore the Republic of Guinea in Northwest Africa.
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Gulf of Guinea. Source: Hyperdynamics |
Sapetro will assign its 50% interest in the PSC to Hyperdynamics free of cost, making Hyperdynamics 100% interest holder. It will remain liable for its share of obligations relating the PSC and the JOA through the withdrawal, but not for expenditures relating to the appraisal program. Hyperdynamics will look for partners to share risks and costs, Hyperdynamics announced today (21 September).
Earlier this week, Hyperdynamics reported it was looking at options for the area. The company believed the Fatala-1 prospect to be a “potential world-class hydrocarbon discovery,” but the well failed to encounter hydrocarbons.
However, further detailed study of the well logs identified five meters of calculated hydrocarbons in the upper Cenomanian channel (Cenomanian 03) located above the primary target formation. The five-meter sand has an average porosity of 17% and a hydrocarbon saturation of 61%, Hyperdynamics reported. A minor background gas increase was also observed while drilling through this interval. The well was drilled on the edge of this channel, and the well result will be integrated with the seismic data to determine the commercial potential of this zone.
Hyperdynamics will develop an appraisal work program and budget that the company will present at an Oil and Gas Operations Management Committee meeting with the Guinea Petroleum Directorate, says Ray Leonard, Hyperdynamics’ president and chief executive officer. The company has proposed that meeting for the end of October.
Fatala-1 was drilled in 2897m of water and reached total depth of 5117m below sea level, the deepest water well ever drilled offshore Africa, the company reported. The companies started drilling the well in May this year, and received a two-year appraisal period extension from the government in July.
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