Project Profile
Estimated Value: US$150 million
Location: Democratic Republic of Congo
Completion Year: 2019
The Lotshi Block covers approximately 500 square km of the Les Zones du Bassin Côtier in the onshore coastal salt basin of western DRC. EnerGulf is the operator of the project and has a 90% interest. The Block is contiguous to Cabinda, Angola and is on trend with the M\'Boundi giant field in Republic of Congo and situated in a similar geological setting. The Lotshi Block is also in relatively close proximity to the offshore Cabinda, Malongo and Takula giant field complexes operated by Chevron and the onshore and offshore Perinco fields in DRC.
Pursuant to a memorandum of understanding with the Democratic Republic of Congo, EnerGulf’s wholly owned subsidiary, EnerGulf Africa Ltd., was granted by the Ministry of Energy, a Hydrocarbon Exploration and Production Sharing Contract (PSC) covering the Lotshi Block and rights to other areas in the \"Les Zones du Bassin Côtier\" (ZBC). Under the terms of the PSC grant, EnerGulf has paid the required signature bonus to the DRC government of US$500,000 for a 83% to 90% interest in the 5 year exploration license. The first year work requirement is US$3,500,000 and the cost of the minimum work commitment over the remaining four years is US$30,000,000. EnerGulf is the operator of the block and will carry COHYDRO, the national oil company of the DRC, for a 10% interest in the block. In March 2008 the PSC covering the Lotshi Block was ratified by Presidential Decree. As per the PSC, the company has incorporated a Congolese subsidiary, EnerGulf Congo SARL located in Kinshasa, to administer various EnerGulf activities in the DRC. Dr. Albert Ongendangenda joined the company as Director General of EnerGulf Congo SARL.
New Resolution Geophysics (NRG) completed a reconnaissance aeromagnetic and gravity survey of the Lotshi Block in July 2008. The survey was designed to provide support for EnerGulf’s planned seismic program and also identify and map structural trends and various other leads of the Congo coastal basin at the Lotshi property. The results from these surveys have indicated the presence of a prospective pre-salt rift graben on the block. The Lotshi Block rift graben appears to be on trend with the rift basin of the well known oil and gas producing M’Boundi field in southern Republic of Congo (Brazzaville). The M’Boundi field is located approximately 70 miles northeast of the Lotshi Block.
In February 2010, the company signed a contract with The Geophysical Institute of Israel (GII) to conduct a high quality 2D seismic acquisition program on its Lotshi Block. The survey is designed to further define the prospectivity of the block and to identify optimal drill targets. GII has conducted three 2D and/or 3D seismic surveys since 2005 for ROC Oil Company Ltd. on their Cabinda South Block in Angola, immediately contiguous to the Lotshi Block on the Lotshi Block’s western boundary. GII has commenced operations, and as of June 27, 2010, 40% of the program’s planned seismic lines have been cleared and surveyed.
Operator:
EnerGulf Resources: Operator with 90% interest
COHYDRO: 10% interest
Contractors:
DeGolyer and MacNaughton: Estimation of the prospective hydrocarbon resources
Geophysical Institute of Israel: 2D seismic acquisition program
JWE (UK) Limited: Drilling project management
Moyes & Co (UK): Assist in facilitating a transaction
New Resolution Geophysics (NRG): Reconnaissance aeromagnetic and gravity survey