Côte d'Ivoire

  • Water depth: 900-3,150m
  • 90% working interest in both blocks
  • Combined net acreage 2,284km2
  • Significant well campaigns in neighbouring blocks
  • In April 2014 Total announced the Saphir-1XB discovery which de-risks our acreage and prospect portfolio by proving oil charge (the earlier pre-drill principal risk)

In April 2014, Total announced a discovery of hydrocarbons in its Saphir-1XB exploration well block CI-514, which is adjacent to African Petroleum Corporation’s acreage.  Total reported a total of 40 metres of net oil pay and 34° API light oil. This discovery is significant for the Company’s acreage as it proves oil charge, the earlier pre-drill principal risk for the area.

In Côte d’Ivoire, African Petroleum Corporation holds a 90% working interest in offshore licences CI-509 and CI-513 (the “CI Licences”), the remaining 10% is held by Petroci, the National Oil Company of Côte d’Ivoire. The Company was awarded CI-513 in December 2011 and CI-509 in March 2012, with a combined net acreage of 2,284km2. In October 2012, the Company acquired 4,200km2 of 3D seismic data over the CI Licences, fulfilling the seismic work commitments of the first exploration phase for both licences.

Fast-track 3D seismic data was received in November 2012, while final 3D seismic depth processing of the entire survey was completed in March 2014. Interpretation of the data has identified a number of significant prospects, with net unrisked mean prospective oil resources of 1,560 MMstb (ERC Equipoise, CPR 2014). These numbers will be updated and upgraded in the new CPR (expected for release Q1 2015) as the new seismic volume and recent Total discovery has changed the view on this portfolio significantly.

On 22 April 2014 African Petroleum Corporation announced PSC Amendments to both licences CI-509 and CI-513. The PSC Amendments include an adjustment of the licence periods providing one-year extensions to the first exploration periods of both licences at the expense of the duration of future exploration periods.

The PSC adjustment allows the Company more time for drilling of the first period commitment wells in these blocks. The first exploration period for block CI-509 is extended to March 2016 and block CI-513 has been extended to December 2015. The Company intends to use some of this additional time to integrate recently completed 3D seismic depth processing into the optimisation of exploration well locations as many new amplitude supported prospects have now arisen from the newly processed PSDM 3D data on trend with the Saphir-1XB Total oil discovery.

The new PSDM can now be better calibrated to the recent results of Total’s oil discovery in CI-514, as African Petroleum Corporation had pre-traded the 3D covering both Total’s CI-514 operated acreage and the acreage immediately north of CI-513 and CI-509 held by the Vitol operated group. The CPR will be updated with the incorporation of the new interpretation of the newly processed PSDM.

The Company also intends to use the additional time from the licence extensions to secure the appropriate sixth generation rig for a wider drilling programme, and build a partnership group to explore in the promising area of the Côte d’Ivoire deep-water margin. African Petroleum Corporation continues to seek strategic partners in its Côte d’Ivoire acreage.

As announced on 14 July 2014, the Company entered into an agreement with Buried Hill Africa Limited (“Buried Hill”) to farm-out a 10% iInterest in Block CI-509, in return for Buried Hill funding 21.1% of the cost of the next exploration well to be drilled on the block and an additional cash payment to

African Petroleum Corporation representing 10% of past costs incurred (“Farm-out Agreement”). Under the terms of the Farm-out Agreement, African Petroleum Corporation will continue as Operator on the licence.  Completion of the Farm-out Agreement is subject to the satisfaction or waiving of certain conditions precedent.  African Petroleum Corporation is delighted with this initial farm out, but is seeking additional partners in its Côte d’Ivoire acreage.

Blocks - CI-509 and CI-513

Acreage - 2,284km2

Working Interest - 90% 

Estimated Resources - 1,560MMstb*

*Net unrisked estimate of prospective oil resources taken from CPR ERC Equipoise 2014