Ethiopia’s SouthWest Energy Releases Competent Persons Report (CPR)

Tewodros_Ashenafi_SouthWest_Energy_CEO_1
Photo: SouthWest Energy CEO, Tewodros Ashenafi

Net Oil Potential of 1.56 Billion Barrels to 2.90 Billion Barrels

HONG KONG, April 8, 2013 — /PRNewswire/ — SouthWest Energy ( http://www.sw-oil-gas.com ) announces Senergy Competent Persons Report results for Prospective Resources in Gambella and Jijiga Basins, Ethiopia — Best Estimates of 1.56 Billion and High of 2.9 Billion Net Undiscovered Play Assessed Prospective Resources.

SouthWest Energy (HK) Ltd is pleased to announce the results of the Competent Persons Report (CPR) prepared by independent consultant Senergy (GB) Limited (Senergy) for the company’s Gambella basin block(s) (extension of the high producing Melut basin in South Sudan) and blocks 9A, 9 and 13 in the Jijiga basin (subset of Ogaden basin in Ethiopia).

The Chairman and CEO of SouthWest Energy, Mr. Tewodros Ashenafi commented: “I am very pleased to announce the result of the CPR by Senergy, which I consider a significant step forward for our company and a strong validation of our work to date.

“The report confirms what we have always believed; our blocks have strong oil potential. Our work now turns to the next phase of exploration, to further refine the seismic data set and look towards our well programme, which we hope to commence later this year.”

The release of the CPR report was welcomed by, Mrs. Sinkinesh Ejigu, Minister of Mines for the Federal Democratic Republic of Ethiopia.

“I am pleased to note the release of this important report from Ethiopian oil and gas exploration company SouthWest Energy. I congratulate the company and wish it every success in this important next step in the quest to find onshore oil in our country.”

Overview of CPR

The CPR concluded the potential of the Gambella and Jijiga basins have best estimate Prospective Resources of 1.56 billion barrels and a high of 2.9 Billion Net Undiscovered Play Assessed Prospective Resources. This estimate is based on 16 potential traps within SWE’s approximately 29,000km2 in blocks 9A, 9 and 13 (out of the wider Basin’s total acreage of 367,000km2) and 8 traps within the 17,000km2 in the Gambella Basin. Senergy has determined SWE’s blocks to be frontier but potentially high reward oil exploration acreage.

The CPR notes that drilling and exploration activity is increasing in the East Africa region. The work done and data collected so far in the Jijiga Basin have given a strong indication of a working petroleum system. The Gambella basin on the other hand is an extension of the producing Cretaceous Melut basin of South Sudan. The play here is clastic sediments sourced from lacustrine shales. SWE plans to drill three initial exploration wells in the Jijiga basin during the course of 2013 and 2014.

Data Sources

The Gambella Block database comprises reconnaissance seismic data, information from the two wells drilled to date in the licence and surface geochemical data evaluation results.

The Jijiga seismic database in Blocks 9A, 9 and 13 comprises an approximately 10 km grid spacing comprised of 1,500 km of 2D seismic data acquired by SWE in 2011/2012 together with older 2D data acquired in 1992 by Maxus. A full tensor gradiometer (FTG) survey with grid spacing of 2×2 km, the first of its kind in Ethiopia, was also acquired and has been integrated with the seismic data, gravity and magnetic data, geochemical analysis of surface samples and results from exploration wells drilled in the adjacent Ogaden basin.

CPR Methodology

Senergy prepared the CPR in accordance with the 2007 and 2011 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).

The CPR provides an independent evaluation of oil resource potential attributable to the Gambella Basin and blocks 9A, 9 and 13 in the Jijiga Basin. A play level evaluation has been used by Synergy to assess the conceptual resource potential of the blocks using the database supplied by SWE and information on analogous basins published by the US Geological Survey. N.B. All figures in this announcement refer to barrels of oil ultimately recoverable.

About SouthWest Energy Limited

SouthWest Energy is Africa’s leading indigenous oil and gas exploration and production company. As of January 2012 it is in the top 10 oil and gas acreage holders in East Africa and has a leading acreage position in the Jijiga Basin, in the Ogaden, Ethiopia’s largest proven hydrocarbon system. SouthWest Energy was formed in 2005 and is the only Ethiopian company to successfully obtain an energy concession in Ethiopia. The Company has an experienced board and management team, strong corporate leadership and operational capabilities. The board of directors is supported on strategy and future direction matters by a high calibre advisory board comprising some very successful and prominent individuals in business and diplomacy. All directors and advisory board members are shareholders in SouthWest Energy.

For more information about SouthWest Energy, visit: www.sw-oil-gas.com

About Senergy

Senergy (GB) Limited is a leading global provider of diversified energy consulting services. The company was established in 1990, with offices in Aberdeen, London, Stravanger, Abu Dhabi, Perth and Kuala Lumpur. The company specializes in petroleum reservoir engineering, geology and geophysics and petroleum economics. All of these services are supplied under an accredited ISO9001 quality assurance system.

For more information about Senergy, visit: www.senergyworld.com

Source: SouthWest Energy Limited

Related News

SOUTHWEST ENERGY RELEASES CPR

London and Addis Ababa, 08 April 2013 – SouthWest Energy (HK) Ltd is pleased to announce the results of the Competent Persons Report (CPR) prepared by independent consultant Senergy (GB) Limited (Senergy) for the company’s Gambella basin block(s) (extension of the high producing Melut basin in South Sudan) and blocks 9A, 9 and 13 in the Jijiga basin (subset of Ogaden basin in Ethiopia).

The Chairman and CEO of SouthWest Energy, Mr. Tewodros Ashenafi commented: “I am very pleased to announce the result of the CPR by Senergy, which I consider a significant step forward for our company and a strong validation of our work to date. “The report confirms what we have always believed; our blocks have strong oil potential. Our work now turns to the next phase of exploration, to further refine the seismic data set and look towards our well programme, which we hope to commence later this year.”

To review SouthWest Energy’s 2013 Corporate Presentation (click here) – 16 pages – type in the pages to advance the presentation to the next page …

Click the link below to read the press release, including maps:
SouthWest Energy of Ethiopia Releases Competent Persons Report – CPR – April 8 2013

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Ethiopian Driller Seeks Place in Oil History

* Company holds large exploration acreage in Ethiopia

* Thinks Ethiopia is next in East Africa’s oil surge

By Andrew Callus

LONDON, April 8 (Reuters) – – Tewedros Ashenafi hopes his Ethiopian exploration outfit will become the first indigenous company to make a basin-opening discovery in sub-Saharan Africa’s 21st Century oil and gas boom.

His privately-held SouthWest Energy holds 46,000 square kilometres of exploration acreage amounting to almost 4 percent of the vast, land-locked east African country.

It is looking to drill three wells in 2013 and 2014 in its Jijiga basin blocks on Ethiopia’s border with Somalia in the east of the country.

Geological similarities with oil-rich Yemen across the Red Sea could help make a country which produces no oil or gas at all into a 400,000 barrels a day producer, as much as western neighbours Sudan and South Sudan can produce together, Ashenafi hopes.

The company also has acreage in the west, in the Gambella basin bordering South Sudan, and in the nearby Jimma Block.

Ashenafi, a native of Ethiopia and the biggest shareholder in the company he founded in 2005, was in London this week to raise $100 million in a private finance placement to finance the drilling.

He would not disclose any other details about the Hong Kong registered group’s ownership and financing, except to say that all board and advisory board directors are also shareholders.

Simon Murray and John Bond, respectively chairmen of the international mining and commodities group Glencore and its affiliate Xstrata, are on the advisory board. Miles Morland, a director of the multinational brewer SABMiller and a long-time Africa investor, is on the main board. Ashenafi holds his owns stake through a family trust.

Gas was discovered in Ethiopia in 1972. Revolution and war have held back development since then, but a wave of oil and gas development has spread up the east coast in recent years from Mozambique through Tanzania, Kenya and Uganda.

“Ethiopia, I think, is going to be next”, Ashenafi told Reuters by telephone.

“It has huge potential and is very underexplored. The Jijiga basin alone is 367,000 square kilometres. That’s larger than the North Sea, and there have only been 50 wells drilled.”

Potential exit routes for Ethiopian oil include Djibouti and Somalia, and at 50,000 barrels a day and growing, home consumption is a potential option too.

SouthWest Energy holds Jijiga blocks 9, 9A and 13, with similar sedimentary rock to oil and gas-rich areas of the Middle East. It estimates possible overall oil volume at between 1.5 billion and 3 billion barrels.

International companies working in Ethiopia include Tullow Oil and Africa Oil which are exploring along the country’s southern border with Kenya. (Editing by James Jukwey)