Exploration & Production
Exploration
PanAfrican Energy Tanzania has mapped and evaluated the Songo Songo West (SSW) exploration prospect adjacent to the Songo Songo Field. Timing for the drilling of Songo Songo West has been stretched out until unresolved financial issues in Tanzania can be satisfactorily addressed.
The prospect is located in water depths of approximately 18 – 35 meters and will require a jack-up drilling rig. It is approximately 2.5 kilometres west of the main field and is mapped on seismic as having closure on an elongate north-south oriented tilted fault block trap. As with the Songo Songo main field, two reservoirs are envisaged to be present within the SSW prospect – the Neocomian and the Cenomanian, although the primary exploration potential lies within the Neocomian interval. SSW lies entirely within the Company’s Discovery Blocks.
McDaniel & Associates conducted an independent assessment of natural gas resources in the SSW prospect in September 2008. The prospect is interpreted by McDaniel to be low risk with a 52% chance of success in the Neocomian and 35% in the Cenomanian. McDaniel assessed the P50, unrisked recoverable resources in SSW at 450 Bcf and the mean, unrisked recoverable resources at 551 Bcf. Management’s unrisked mean GIIP for the Songo Songo West prospect of 810 Bcf compares with the McDaniel combined Neocomian and Cenomanian unrisked mean GIIP of 740 Bcf.
Songo Songo West represents a major potential source of additional new reserves. PanAfrican is planning to drill an initial exploration well towards the south of the SSW structure. If it is successful and can flow at commercial rates, it is likely to be tied back to the existing processing plant and flowed for a period of time to test the long term deliverability of the gas. Once deliverability is confirmed, PanAfrican may drill a second well into the northern extent of the mapped structure to get a better understanding of the aerial extent of the reservoir and the recoverable reserves.
Production
PanAfrican Energy Tanzania is the operator of the Songo Songo gas wells and gas processing plant on behalf of Songas Ltd, the owner of the infrastructure.
The infrastructure includes two gas processing trains each rated at 35 MMscfd (70 MMscfd total); a high pressure 25-kilometre 12" offshore pipeline and a 207-kilometre 16" onshore pipeline. Songas operates the high pressure pipeline system.
With demand for gas having increased since production began in 2004, the 70 MMcfd infrastructure limit created a serious bottleneck. To address this issue, Songas initially approved the re-rating of the gas processing plant on Songo Songo Island to 90 MMscfd following certification of the increased rate by Lloyds Register. Then during September 2010 the company undertook further technical analysis and Lloyds Register re-rated the plant to operate at 110 MMcfd. In early 2011 PanAfrican Energy negotiated a Re-rating Agreement with TANESCO and Songas to run the gas processing plant at levels up to 110 MMcfd until the announced Songas Expansion Project is operational. At that time PanAfrican Energy expects to be ready to deliver up to 200 MMcfd.