Oil and gas producer Ophir Energy has successfull encountered gas at the Fortuna East-1 step out exploration well on Block R, Equatorial Guinea, as well as in the deeper Viscata exploration target.
The well is the fourth discovery by Ophir on the block, and the sixth on the block to date. Ophir operates the block with an 80% stake.
The estimated mean in-place resource for the eastern lobe of the Fortuna Complex is 553bn cubic feet (bcf), equal to 92m barrels of oil equivalent (mboe).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The recoverable mean resource from the eastern lobe is estimated at 426 bcf (71mboe), exceeding the mean pre-drill recoverable resource expectation of 304 bcf (51mboe) by 40%.
The gas quality appears to be consistent with that observed in previous gas discoveries in Block R. Pressure measurements indicate communication between Fortuna-1 and Fortuna East-1 confirming an increased 101m gas column in the Fortuna Complex.
On the deeper Viscata exploration target, the well discovered an 8m gas column within good quality reservoir with a porosity of 21% and a net to gross pay of 48%. The reservoir shares a common gas-water contact with the earlier Fortuna-1 discovery well.
Nick Cooper, Chief Executive Officer of Ophir said: "The success of Fortuna East-1 improves our understanding and adds further resources to the Fortuna Complex. The result increases the Fortuna Complex's 2C resources by 114% to 798 bcf (133 MMBOE), and provides further confidence in the potential of the exploration inventory.
"The Viscata gas discovery and the stratigraphic tests of the potential Iambe and Tranquilla reservoir intervals are also positive results, derisking the large remaining exploration inventory in Block R, which now amounts to more than 10trn cubic feet of gas.
"Ophir is now drilling Fortuna West-1 (R6), the final well in the 2012 EG drilling programme. Fortuna West-1's primary objective is to test the western lobe of the Fortuna Complex. In addition, the well will provide critical information to define the scale of the Viscata discovery and explore the Felix secondary exploration target. Results from this well are anticipated in early September 2012."
The share price rose 2.19% to 537p by 08:56.
NR
What will be the consequences of Donald Trump’s "One Big Beautiful Bill"?
'Labour’s next bright idea is a wealth tax – but it won't work'
