Pan Ocean Energy Corporation Limited has announced that its EAVOM-1 well, offshore Gabon, has been confirmed as an oil discovery following a drill stem test of the vertical well which flowed 6,600 barrels oil per day ("bopd") of 37 degree to 38 degree API crude.
EAVOM-1 flowed oil on a 40/64 inch choke from six metres of perforations in the Gamba sandstone section at a flowing wellhead pressure was 5,143 kPa (746 psi). Currently the partners are performing additional tests of a lower
interval after which the plan is to suspend the wellbore in the normal course. EAVOM-1 is the second discovery made on the Etame permit this year. PanOcean holds 33.9% interest in both wells. EAVOM-1 is located within the Etame Permit approximately 16.5 kilometres southeast of the main Etame field, which is currently producing 15,000 bopd (4,704 bopd net PanOcean).
Based on the information and analysis to date, PanOcean is of the view that Avouma is a commercial discovery. The Company will commence an engineering study to incorporate an Avouma development into the broader Etame production development scheme along with an additional development well in the main Etame pool, Etame-6H, and the concurrent development of the Ebouri pool to the north of the main Etame field. With the prospect of a significant
three-pool development for the Etame and satellite fields, PanOcean will pursue opportunities to achieve operating synergies and economies of scale with the integration of the development plan. The Company intends to
aggressively pursue the Etame development and, together with its partners, submit a formal development plan to the Government of Gabon by year end.
"Our success at EAVOM-1 concludes the offshore exploration portion of PanOcean's 2004 drilling programme. We are well positioned offshore, having now three separate pools to develop significant productive capacity within the
reach of our Etame FPSO facility. Our exploration attentions now move onshore to a three well exploration and appraisal program scheduled to commence in mid August," said David Lyons, PanOcean President and Chief Executive Officer.
Total oil production from Etame is expect to increase to over 20,000 barrels of oil per day (6,272 bopd net PanOcean) once the Etame-5H well is brought onstream.
Subsequent to the 7.5% back-in, PanOcean will own a 31.36% working interest the Avouma field, with the other partners VAALCO Energy, Inc. (OTCBB: VEIX - 28.07% and operator), Sasol (SJ: SOL 27.75%), Sojitz Etame Limited (2.98%), PetroEnergy Resources Corp. (2.34%) and Tullow Oil plc (LN: TLN 7.5%).
