Disappointing result for BW in Gabon appraisal well

Oil and gas player BW Energy has not encountered hydrocarbons in the target Gamba reservoir of its Hibiscus Extension appraisal well (DHIBM-2) in the Dussafu Marin license in Gabon.

BW Energy started its three-well Gabon drilling campaign for 2021 with the spudding of the DHIBM-2 well in April 2021, using the Borr Norve jack-up rig.

The primary objective of the well was to test the northern extension of the Gamba Sandstone reservoir of the Hibiscus field, discovered in 2019.

In an update on Wednesday, BW Energy said that initial findings indicate that the Gamba is water-bearing, instead of containing hydrocarbons.

The Borr Norve jack-up continues drilling operations to intersect the secondary targets for the appraisal well in the deeper Dentale Formation.

The data acquired from the DHIBM-2 well will later be analysed and integrated into the larger Dussafu model to further refine the extensive exploration prospect inventory.

BW emphasised that the existing Hibiscus 2P gross recoverable reserves of 46.1 million barrels established by the DHIBM-1 well and its appraisal side-track, drilled in 2019, remain unaffected and will form the core of the upcoming Hibiscus/Ruche development project. Planning for this next phase remains on track.

Following the DHIBM-2 well, the rig will move to drill the horizontal production well, DTM-7H, at the Tortue field.

The rig will subsequently move to drill the Hibiscus North prospect, located approximately 6 km north-northeast of the DHIBM-1 well.

Panoro Energy, one of BW Energy’s partners in the permit, said in a separate statement on Wednesday that the well will be drilled and logged to a total depth of 3,500 metres as planned.

John Hamilton, Panoro Energy CEO, said: “We are clearly disappointed with the Hibiscus Extension well result, which in a success case would have made the Hibiscus area even bigger than the original discovery.

“However, we remain extremely confident on the remaining exploration potential in this huge block. Plans now return to focus on production growth at Tortue and the next phase at the Hibiscus Ruche fields. Dussafu remains a highly valuable, long term asset and we look forward to continuing to bring production online and explore for additional reserves”.

Hibiscus and Tortue are two out of a total of six discovered fields within the Dussafu Permit offshore Gabon. Panoro currently holds a 7.5 per cent interest in the license.

Panoro in February 2021 agreed to acquire an additional 10 per cent working interest in the Dussafu Permit from Tullow, bringing its total ownership to 17.5 per cent following completion of the transaction.

The Dussafu Marin JV consists of BW Energy as the operator with a 73.5 per cent working interest, Gabon Oil with 9 per cent, and – until the transaction is closed – Tullow Oil with 10 per cent and Panoro with 7.5 per cent working interest.