African Petroleum Corporation Limited (NSX: AOQ) provided the following operational update.
African Petroleum has completed drilling the first well (Apalis-1) in deep water offshore Liberia in Block LB-09.
The results of Apalis-1 confirm Blocks LB-08 and LB-09 (100% owned by African Petroleum) are located in a prospective oil basin, which is a major step forward. The geological and geophysical data have confirmed the critical components of a working hydrocarbon system are present and functioning. The Company is now accelerating a multi well drilling program on the 25+ exploration prospects identified on Blocks LB-08 & LB-09 offshore Liberia and are planning to drill the next well during 4th quarter 2011 and 1st quarter 2012.
Apalis-1 was drilled to a depth of 3665 meters and encountered oil shows in several geological units including the shallower (Tertiary) and deeper (Cretaceous) and petrophysical analysis indicates the presence of hydrocarbons. The well also confirmed the presence of organic oil prone source rocks confirming that Blocks LB-08 & LB-09 are in an attractive oil basin.
No commercial quality reservoir with hydrocarbons was encountered and consequently no well production test was undertaken. The well was drilled without any technical problems and the costs have been materially under budget.
Having confirmed a working hydrocarbon system with the first well the forward exploration programme will focus on the deeper basinal zone where improved reservoir quality is anticipated in the well developed Cretaceous fan system.
Karl Thompson, CEO, commented: "This is the first ever frontier well in the deep water in Liberia and has confirmed we are exploring in a highly prospective oil basin which was its key objective and we are committed to continuing exploration in the area."
The 3D seismic survey underway in Block SL-03 Sierra Leone (100% owned by African Petroleum) to the west of the Anadarko Venus and Mercury discoveries is progressing well and is now 65% complete. The 3D survey is the start of the initial exploration phase in exploring for similar Upper Cretaceous targets as the nearby Mercury and Venus discoveries.
The interpretation of the 3D seismic survey in The Gambia (60% owned by African Petroleum) is progressing very well and an extensive system of Upper Cretaceous fan systems has clearly been identified.
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