In Sierra Leone, the Company holds a 100% operated working interest in offshore licences SL-03 and SL-4A-10 (the “Sierra Leone Licences”). African Petroleum was awarded a 100% interest in SL-03 in April 2010, while licence SL-4A-10 was awarded as part of Sierra Leone’s third offshore licencing round in 2012. The Company’s Sierra Leone Licences cover a combined net acreage of 3,925km2 and are located to the south of Freetown, offshore Sierra Leone.
Since gaining operatorship of the Sierra Leone licences, African Petroleum has acquired approximately 2,500km2 of 3D seismic data over block SL-03 and approximately 1,000km2 of 3D seismic data over block SL-4A-10 (acquired in September 2014). In addition, the Company has purchased regional 2D seismic data in western Sierra Leone. The Company has already identified a number of key prospects in its Sierra Leone licences, which have net unrisked mean prospective oil resources of 1,354MMStb (ERC Equipoise Letter, 2015).
Interpretation work on the new SL-4A-10 3D seismic has identified exciting deepwater prospects with strong AVO response. A high impact portfolio has now been evaluated, and significant prospective resources have been identified in the Sierra Leone licences in addition to the already published CPR numbers. The new AVO support to several of these prospects significantly changes the potential risk perception.
SL-03 - Entry into First Exploration Period
On 2 December 2015 the Company announced that it had entered into the First Extension Period on the SL-03 licence, offshore Sierra Leone. The expiry date of the First Extension Period is 23 April 2017.
The initial exploration period on the SL-03 licence expired on 23 April 2015 with all obligations being fulfilled, including the acquisition of 2,500km2 3D seismic. In accordance with the requirements of the petroleum licence agreement, 50% of the SL-03 licence area has been relinquished, reducing the licence area from 3,860km2 to 1,930km2.
Contemporaneously with the approval of the entry into the First Extension Period, the Petroleum Directorate agreed to modify the work programme, minimum expenditure requirements and social obligations (“Licence Amendments”) in favour of the Company during the First Extension Period on the licence. The Licence Amendments are subject to ratification by the Parliament of Sierra Leone.
Detailed mapping of 3D seismic has identified a number of prospects. The Altair Channel is the most easterly of these and exhibits a high amplitude seismic expression within a stratigraphic trap. Independently assessed by ERC Equipoise, the estimated net unrisked mean prospective oil resources attributable to the Altair prospect is 434MMstb. The forward programme provides an opportunity to analyse the seismic data fully prior to making a commitment to drill an exploration well.
Sierra Leone Project: Blocks SL-03 and SL-4A-10
Net Acreage 3,925km2
· 100% working interest in offshore licences SL-03 and SL-4A-10
· Significant 3D and 2D seismic data acquired over the licence area
· Two-year extension agreed for the first exploration period in the SL-03 Licence
· Independently assessed net unrisked mean prospective oil resources of 1,354MMStb
*ERC Equipoise Letter, 2015