Canadian Overseas Petroleum Limited (COPL) will turn attention to OPL 226; offshore Nigeria after its search for hydrocarbons in Mesurado-1 well in Liberia failed to yield returns.
According to the company, appraisal drilling employing the services of American oil giant ExxonMobil is slated to start towards the end of 2017 in the oil project offshore Nigeria.
“This is clearly a setback for COPL, however the company is well diversified with an attractive oil appraisal and development project offshore Nigeria on OPL 226,” said Cantor Fitzgerald analyst Sam Wahab.
OPL 226, with recoverable reserves of 160m barrels equivalent (boe) has an area of 1530 km² and is located approximately 50 km offshore the central delta region of Nigeria in water depths ranging from 40 to 180 meters.
The field offers oil appraisal and development opportunities having near-term oil production potential and significant exploration upside.
India’s Essar Group acquired a 100% stake in OPL 226 in 2007 after winning the bidding round with a signature bonus payment of $37million. It complete sale of 80 per cent of the company’s share capital to COPL in September this year.
COPL expressed disappointment at the futile search in Liberia. “We are naturally disappointed by the lack of hydrocarbons in the targeted reservoir sands in the Mesurado-1 well,” said COPL chief executive Arthur Millholland.
“The lack of hydrocarbons at this location where our seismic data presented attributes indicative of hydrocarbons will cause us to do additional work on the 3D seismic over the block, and re-evaluate the other leads we have mapped on LB-13.”
Mesurado-1 is located some 50 miles from the Liberian coast and is in 2,500 metres of water.
Prior to the news, the target had been estimated to host 1.78bn to 4.2bn of gross prospective recoverable oil resources.
ISAAC ANYAOGU
