Block location, exploration, production and development structure.
maturity for hydrocarbon generatiuon in the Zambesi Delta area.
main prospect - G9 and G10 horizon - seismic amplitude response.
New Junior Sets Sights On Mozambique
When Beira Energy was incorporated on May 10th 2002, it was for the sole purpose of directly acquiring operatorship and a 75% interest in the Inhaminga Block in Mozambique, and the company wasted no time establishing funding arrangements to fulfill its aim.
Beira has proposed to sole fund the estimated US$5.5 MM, two well drilling programme in the Inhaminga Block to earn its interest. The company will earn the initial 37.5% interest and operatorship when it proves capital adequacy and, subject to authority approval, drills the first well. It will earn the remaining 37.5% upon completion of the second well.
The reason for Beira's preoccupation with Inhaminga is the independent estimate that the prospect holds more than 3.1 Tcf of gas and more than 62 MMbbl of gasoline grade condensates, which could be marketed to nearby South Africa or independently processed and sold to other markets.
The potential of the Inhaminga Block was first spotted when two of the principals involved in the ARCO management of the nearby Temane project recognised similar anomalies in the Lower Grudja sands and negotiated a Technical Evaluation Agreement with the government.
BP's takeover of ARCO forced the fire sale of the 1.8 Tcf Temane field to its joint venture partner Sasol and the old ARCO team was dispersed. The opportunity followed the old ARCO network and its underlying diaspora to Perth, and Beira Energy, named after the second port city of Mozambique, which is located 40 km north of the Inhaminga Block, was born soon after.
Exploration in Mozambique has been focussed on the Lower Grudja sandstones since early exploration at the turn of the century, and particularly after the first deep hole drilling took place in the early 1930s.
Most of the discoveries to date have been made on amplitude anomalies plainly visible on 1960s and early 1970s data. The data was pivotal in the appraisal of the 440 km2 (2.0 Tcf) Pande field by Gulf in the 1960s and its later refinement with 1990s data by ENH, which is the state oil company of Mozambique.
The Mozambiquan economy opened for business for the first time in 25 years in the early 1990s, after the accession of President Mandela to the head of the adjacent power house economy of subsahelian Africa. The change led to a rush for equity in the essentially untouched resources, including gas condensate fields, coal, hydroelectric power, sugar plantations, cashew nut processing franchises, prawn fishing, tourism and world class heavy mineral deposits, by a host of multinationals operating in all sectors of the economy including oil and gas, manufacturing and agriculture.
Enron was the first into the country and immediately set about securing access to the undeveloped Pande field. A number of other majors entered the country, including ARCO. The ARCO team quickly latched on to the seismic amplitude anomalies registered by the Lower Grudja Formation (Late Cretaceous chenier sand ridges present day analogues of which can be seen easily on satellite images of the Mississippi delta, south of the Sabine Lake) and sought title to the Temane field area.
Temane was discovered by Gulf in 1957 with a low productivity well. Amplitude anomalies had not been used to define the shallow structurally enhanced stratigraphic accumulations. By 1998, the ARCO team had its collective finger on the key to evaluation and drilled a string of successful exploration and appraisal wells. The entire ARCO story in Mozambique was written up by the then president of the AAPG, Marlan Downey, and published in the November issue of the AAPG Explorer, which is still available online.
Beira will drill two exploration wells back to back in order to obtain its 75% holding in the Inhaminga Block. According to Adrian Larking, the Executive Chairman of Beira, the intention is to drill the wells before December 2002 and then roll the Technical Evaluation Agreement into a Production Sharing Agreement at the turn of the year.
Larking predicted that success in one or all three of the huge seismic amplitude prospects just to the north of Beira could achieve gas volumes similar to those of the Temane and Pande fields, or multiples of the same.
Recent progress in infrastructure arrangements will see processing facilities and pipelines established, improving transport of Mozambiquan gas to industrial markets. Go-ahead was recently given for construction of the US$1.2 BB Sasol to Secunda, South Africa pipeline and facilities, including a processing facility to be built by Foster Wheeler between the Pande and Temane fields. The pipeline design was completed in Perth by Worley and construction of the pipeline will involve McConnell Dowell of Melbourne.
The Temane accumulation has a wet gas component which, while not as rich as North Rankin, still contains a substantial condensate fraction. The presence of the old Angoche condensate seep to the north of the Zambesi Delta, and the close proximity of the Inhaminga Block to the Zambesi Deta Depression 'kitchen' leads the Beira team to believe that the Inhaminga prospects may well have a higher condensate content than the marine Cretaceous sourced condensates at Temane and Pande. A greater condensate fraction could offer fast track development of the Beira project on the back of successful exploration results.
In between a busy capital raising trip in Melbourne and Sydney, Larking is involved in the management of a fast growing vineyard business in Margaret River.