Project Profile
Location: eastern flank of the Ambilobe basin, Northern Madagascar
Area: 11,200 sq km
Licence award: 2006
Start-up Year: -
Block 1101 is located on the eastern flank of the Ambilobe basin in Northern Madagascar. The Block lies adjacent to Exxon\'s Ampasindava Block. The formation of the Ambilobe basin and the corresponding stratigraphic suites are closely related to the break-up of Gondwanaland and the later separation of eastern Gondwana. There are proven, large heavy oil accumulations in the Isalo formation in Central Madagascar such as Benmolanga and Tsimiroro which indicate good reservoir conditions. The main source rock is thought to be the Upper Permian Middle Sakamena marine shales. These shales have been proven oil prone in the onshore Manandaza basin Karoo corridor, which contains the Bermolanga and Tsimiroro oil fields south of the Ambilobe basin.
The Government of Madagascar has no back-in rights into successful exploration and contractors are allowed to recover their entire costs from 60% of the production. Oil royalty rates range from 8% for the first 20,000 bopd to 20% for rates above 130,000 bopd; gas royalty rates range from 6% for the first 424 mmcfd to 10% on production over 847 mmcfd. The government\'s share of profit oil ranges from 20% for the first 10,000 bopd to 70% for production above 130,000 bopd. During the first exploration period, the PSC partners are obligated to perform a geochemical survey; carry out field mapping; and drill an exploration well to a minimum of 800m. During the second exploration period, the PSC partners are obligated to acquire 300km of seismic and to drill two exploration wells to a minimum of 800m each. The PSC partners are obligated for the third exploration period to acquire 150km of seismic and to drill one well to a minimum of 800m.
Having increased its working interest to 90% through the reassignment of a 50% from partner Candax Energy, Afren has agreed with state oil and gas agency OMNIS an expanded work programme that combines the first two exploration phases on the block and requires the drilling of one exploration well to a minimum depth of 1,600 metres. The partners have also agreed to acquire an additional 150 km of new 2D seismic and airborne gravity and magnetics. The airborne gravity and magnetic acquisition has been undertaken and it is expected that drilling will now commence 2013.
Operators:
Oyster Oil & Gas: Operator with 10o% interest (since Q4 2015)
Contractors:
ALS Oil & Gas Group: Contract to include a multi-well coring program in Block 1101, onshore Madagascar including the \'twinning\' of a reported 1902 \'discovery\', which was the last well to be drilled on the block