New Age is continuing the evaluation of development options, including scope for early-stage development plans for the Etinde concession, offshore Cameroon, according to partner Bowleven.
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Image of the Etinde area, from Bowleven. |
There have been two carried appraisal well locations agreed upon, targeting combined additional in-place volumes of up to 2 Tcf of gas and associated liquids at the P90 level, with drilling to progress once joint venture development alignment is achieved.
Over the next 12 months, Bowleven said it will be working with the Etinde joint venture partners to determine the optimal development solution for stakeholders and enable earliest appraisal drilling and testing.
Kevin Hart, Bowleven CEO said: “We have continued to make steady progress towards our objective of converting resources to reserves in Cameroon, despite the challenging macro environment. The Etinde operator, NewAge, has prioritized advancing development plans with the government over planned appraisal drilling activity. Bowleven remains eager to drill the two wells as soon as practicable, being covered for its share of drilling/testing via the US$40 million net carry from the Etinde farm-out transaction.”
The organization continues to be resolutely focused on the delivery of its strategy which remains a relatively straightforward one encompassing the following four key deliverables: Maximize the value of Etinde by ensuring that the appraisal drilling is carried out as soon as possible and that FID is achieved quickly thereafter, Hart said.
According to Bowleven, progress on both Bomono (onshore) and Etinde in the period has been frustratingly slow.
NewAge continues to push for a floating LNG scheme as their preferred development solution, Hart said.
Following the completion of the Etinde farm-out transaction, operatorship passed to NewAge who have since been focused on progressing Etinde development plans. With a number of opportunities for gas in Cameroon and sufficient existing discovered resources on Etinde to support one initial offtake solution (fertilizer, power generation or LNG), the joint venture has been exploring all available development options.
New Age has proposed an FLNG solution and has been evaluating opportunities to utilize existing available vessels. This potential route has been highlighted to the Cameroon authorities, whose preference to utilize Etinde gas for fertilizer and gas-to-power projects, when ready, could also be supported under such a development scheme.
The joint venture is also investigating early-stage development solutions to facilitate the monetization of the existing Etinde resource base. The combination of high well deliverability, a reduced cost environment and attractive fiscal terms means that project economics remain robust even at depressed oil price levels.
The challenging economic environment of sustained low oil prices has also affected the progress of the appraisal wells, with the allocation of joint venture capital impinging on drilling schedules. During the Q3 2016 period, the joint venture undertook an exercise to reprocess the Etinde seismic data set with a focus on underpinning optimal field development.
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