Namibia license extensions approved

Enigma Oil & Gas Exploration has won approval from Namibia’s Ministry of Mines and Energy to continue its exploration program on three offshore blocks.

Offshore staff

LONDON -- Enigma Oil & Gas Exploration has won approval from Namibia’s Ministry of Mines and Energy to continue its exploration program on three offshore blocks.

The First Renewal Phase for Northern blocks 1811 A&B, and Southern block 2714 B, runs from Oct. 27, 2010 through Oct. 26, 2011.

During this period, Enigma’s parent company, Chariot Oil & Gas, has agreed to perform the following work programs for all three blocks: 3D seismic interpretation, economic evaluation, well location and design studies, and rig procurement. These will incur a minimum exploration outlay of $11 million for blocks 1811 A&B and a similar figure for block 2714 B.

Chariot says it surpassed its initial exploration obligations on the permits with its large-scale 3D data acquisition program. This has led to the Namibian government waiving well commitments during the First Renewal Phase, although Chariot says it is resolved to drill as soon as possible.

However, the terms of the renewal also oblige the company to relinquish 50% of the acreage within each of the block licenses. Chariot has opened its data room in London to interested farm-in partners.

The initial 2D seismic campaign highlighted the blocks’ more prospective areas, which were later covered by 3D seismic. Chariot plans to relinquish the areas it considers of lesser geological significance.

The company now holds 30,503 sq km (18,953 sq mi) of acreage in eight offshore and onshore Namibian blocks, with unrisked prospective resources estimated at 8.5 Bbbl.

08/16/2010

More in Geosciences