OilVoice - CityView Commences Feasibility Study For North Matanda Oil Project in Cameroon

CityView Commences Feasibility Study For North Matanda Oil Project in Cameroon

Monday, August 13, 2007

CityView Corporation Limited has commenced the initial stage of a feasibility study with the view of fast tracking the development of the North Matanda Oil Project in the Cameroon.

The scope of the feasibility study will include:
• Certification of reserves (both gas and condensate).
• Design of plant and infrastructure to a level of detail for cost estimates of +/- 30% accuracy.
• Capital and operating cost estimation to a level of +/- 30% accuracy.
• Financial modelling to establish expected cash flow, profit and net present value.
• Commencement of formal government and environmental approvals process.
• Negotiation of off take agreements for both gas and condensate.
• Decision on financing strategy.
• Early award of the detailed engineering package to engineering contractor (pending finance).

Mark Smyth said "CityView is keen to complete the feasibility study to quantify the technical and commercial aspects of North Matanda. We are under no illusion that this project has the potential to be extremely profitable for all of the joint venture partners and we intend to bring it to fruition as quickly as possible. Therefore, the first critical hurdle is to complete a feasibility study on the project. Mr Conrad Maher, the recently appointed Chairman of the Advisory Board, is currently in Paris with a team of experts to commence the review and gathering of the Gulf Oil USA data as the first stage of this feasibility study."

About the North Matanda Oil Project:

The Matanda block (1187 km²) PH-72 (former OLHP-3) is situated in the northern part of the Douala/Kribi-Campo basin covering the northern half of the Wouri estuary and surrounding onshore areas. The block is partly onshore and partly shallow offshore.

Condensate was discovered in two wells drilled to a depth of 3,000 metres in the permit by Gulf Oil USA during the 1980s. Gulf, who were looking for a giant oilfield similar to that found in the Niger delta, relinquished the permit.

Gulf, as operator, based on the wells, seismic and testing, quoted the following reserves of condensate;
P 60 MMBBLS
P+P 120 MMBBLS
P+P+P 300 MMBBLS

Condensate prices from this region historically trade at a premium of US$3 to the price of Brent crude oil. West African condensate prices currently exceed US$75 per barrel.