Oil of DRCongo: Significant oil reserves in Lake Albert?

Oil of DRCongo, the Fleurette Group’s oil exploration subsidiary, today announces an update of the interpretation of the recently processed 3D seismic surveys acquired in 2013-14 over its prospects in Blocks I and II in Lake Albert in the Democratic Republic of Congo.

The seismic campaign (1st and 2nd phases) has covered approximately 700km offshore and 150km onshore. Oil of DRCongo has invested in excess of $75 million in the exploration works of the Blocks I & II so far including above $20 million on the seismic investigations. The seismic data acquisition itself was carried out by TESLA (UK). Oil of DRCongo employed 250 people based in Kasenyi, out of which 204 were Democratic Republic of the Congo (DRC) locals, for the seismic works.

Oil of DRCongo has now completed the interpretation of the seismic data. The analysis was undertaken by the UK’s GeoTrace and Italy’s Ecopetrol in conjunction with Sproule International. The analysis indicates around 3 billion barrels of oil in place (STOOIP). As anticipated from early stage seismic results, the oil in place on the DRC side of Lake Albert mirrors that of the Ugandan side.

Therefore, the company says, the results show a potential significant resource which has the ability to fundamentally rescale the GDP of the DRC if it can be safely and economically extracted and exported. As Oil of DRCongo has previously indicated, a production from Lake Albert of c. 50,000boe/day will increase the present GDP of the DRC by 25%.

Oil of DRCongo’s next priority is the establishment of two exploratory wells plus a 3D seismic campaign acquisition focused on the most complex structures identified. Oil of DRCongo is presently carrying out a Feasibility Study aimed at evaluating the entire drilling exercise with particular reference to the two wells to be made on the identified prospects.

The preparation phase of the drilling includes relocation of some local communities, transport to the site of the drilling equipment, installation of a base camp for staff, new supply roads, a new dock on Lake Albert and a landing strip for moving personnel and equipment. The Tender Documents for the drilling works expect to be launched by the end of October 2014.

Social commitments

Oil of DRCongo has also made further progress on a number of important social commitments.

“Oil of DRCongo is proud that it, in its capacity as operator of Bocks I and II on the Albertine Graben, it has far exceeded the licencee’s obligations to the DRC with regards to providing local community support,” the company said in a statement.

Work has been completed on the refurbishment of the most critical sections of the Bunia-Kasenyi Road (14km over a total of 40km) into which Oil of DRCongo invested USD $700,000 jointly with the Government of the Oriental Province.

The company says the road is a vital artery linking the towns of Bunia and Kasenyi. Oil of DRCongo has invested over $4 million in other local projects including assistance to the medical/maternity centre in Kasenyi, staffed by two full time doctors and eight nurses. Oil of DRCongo said it hosted the inauguration of the school in Jiba (North-West Tchomia-Block I area) for 400 students, which was also attended by the Governor of the Oriental Province H. E. Jean Bamanisa.

A new school for up to 400 students will be built in the coastal village of Roo-Voo that will host the rig for the first of the two scheduled wells. The construction of 25 houses to relocate part of the local Community has been scheduled and is presently under a Tender Process.

Giuseppe Ciccarelli, CEO of Oil of DRCongo commented: “These are very positive results from our extensive seismic campaign. We continue to believe the project has the potential to provide significant revenues and multiple other benefits to the people of the DRC, generating jobs, fuelling development and prosperity and contributing to social progress. We remain committed to making the investment necessary to progress the project, which has the potential to transform the DRC.”