Hydrocarbon Exploration Activities in South Africa Anthea Davids [email protected] AAPG APRIL 2014 Petroleum Agency SA - oil and gas exploration and production regulator 1. Update on latest exploration activity 2. Some highlights and important upcoming events 3. Comments on shale gas Exploration map 3 years ago Exploration map 1 year ago Exploration map at APPEX 2014 Exploration map at AAPG ICE 2014 Offshore exploration SunguSungu 7 Production Rights 12 Exploration Rights 16 Technical Cooperation Permits Cairn India (60%) PetroSA (40%) West Coast Sungu Sungu Sunbird (76%) Anadarko (65%) PetroSA (24%) PetroSA (35%) Thombo (75%) Shallow-water Afren (25%) • Cairn India, PetroSA, Thombo, Afren, Sasol PetroSA (50%) • Sunbird - Production Shell International Sasol (50%) right around Ibhubesi Mid-Basin – BHP Billiton (90%) • Sungu Sungu Global (10%) Deep water – • Shell • BHP Billiton • OK Energy Southern basin • Anadarko and PetroSA • Silwerwave Energy PetroSA (20%) • New Age Anadarko (80%) • Rhino Oil • Imaforce Silver Wave Energy Greater Outeniqia Basin - comprising the Bredasdorp, Pletmos, Gamtoos, Algoa and Southern Outeniqua sub-basins South Coast PetroSA, ExonMobil with Impact, Bayfield, NewAge and Rift Petroleum in shallower waters. Total, CNR and Silverwave in deep water Bayfield PetroSA Energy New Age(50%) Rift(50%0 Total CNR (50%) Impact Africa Total (50%) South Coast Partnership Opportunities ExxonMobil (75%) East Impact Africa (25%) Coast Silver Wave Sasol ExxonMobil (75%) ExxonMobil Impact Africa (25%) Rights and major operators • Shallow water – Silver Wave ExxonMobil and Impact 2 ERs • Silver Wave and ExxonMobil in deeper waters • Sasol exploration right East Coast ExxonMobil (75%) Impact Africa (25%) Possible Relinquishment of 20% shallow water block Recent highlights and activity New exploration/development activity 8000 km2 3D 2000 km2 3D 2 >20 000 km 687 km2 3D 10 000 km2 3D 1800 km 2D 6200 km 2D >22 000 km 10 000 km 2D 5000 km 2D Block 9 – PetroSA F-O gas field Project Ikhwezi South Coast 110km offshore, 40 km SE of F-A F-O gas field 8 wells drilled during exploration and appraisal phase NewAge 3D – 635km2 southern summer completed 3 January Polarcus Nadia PGS large 2D multi client survey underway ~ 10 000 km Sanco Spirit About 64% complete Onshore exploration SunguSungu 1 Production Right 55 Exploration Rights 10 Technical Cooperation Permits SA Onshore Three types of unconventional resources • Coal bed methane • Biogenic gas • Shale gas Local and international companies Coal Bed Methane Approaching 20Tcf GIP Coal Bed Methane ctd Amersfoort area – Ermelo Coalfield Soutpansberg area– Mopane Coalfield Lephalale/Ellisras Basin – Waterberg Coalfield Tshipise – Soutpansberg basin Biogenic Gas Molopo Energy Production Right since Sept 2012 Assets assets in Virginia in the Free State and Evander, SE of JHB. Agreement with SA based company, pending approval to take on all future development obligations Shale Gas Potential – South Central Karoo Basin EIA’s estimate of 485(370) Tcf of shale gas resource for the Karoo South Africa rank of 5th in the world Our own technical team’s conservative minimum estimate of the resource is 40Tcf However, until exploration wells are drilled , the resource remains unknown and unproven New exploration/development activity 2 boreholes 5 wells 6 wells – Tshipise Energy 5 point test Shale Gas • No new applications accepted, but existing applications received before February 2011 being processed • Formulation of regulations and guidelines for unconventional exploration and hydraulic fracturing • Draft regulations published for public comment and comment is now being considered and addressed • On finalisation DMR will guide processing of existing applications, accepting new applications and exploration activity (i.e. if hydraulic fracturing is allowed, under what conditions). Timing of this is currently uncertain .