| Mon 4 Jun 2001, 0:00 | | Energy Africa Announces New Discovery In Equatoria |
|
Energy Africa is pleased to report a second significant oil
discovery in Block G offshore Equatorial Guinea in which it holds
a 15% interest. The Okume-1 well is located some 15 km northeast
of the Ceiba field in which Energy Africa holds a similar
interest. The discovery well intersected a 131m oil column with an
estimated 52.5m of net oil-bearing sandstones. Reservoir quality
is similar to that in the most prolific of the Ceiba field wells
with average porosity of 28% and excellent permeability. The oil
is approximately 37x API gravity and estimated productivity of the
well is in excess of 10,000 barrels per day. Given the close
similarity to the Ceiba field, the well will not be flow-tested.
Appraisal drilling is required to establish the full extent of the
reserves but the results of the Okume-1 well are very encouraging
and several prospects with similar seismic characteristics are
located in close proximity. Adrian Nel, acting Managing Director
of Energy Africa said "the discovery has confirmed the very
significant potential for proving large reserves in Blocks G and F
in the Rio Muni Basin where we expect to drill at least two
further exploration wells by March 2002".
The operator of the Ceiba field and the Blocks F and G exploration
licences is Triton Energy Limited based in Dallas, USA. A copy of
their press release is appended.
4 June 2001
For more information about Energy Africa see:
www.energyafrica.com.
Enquiries:
In Cape Town:
Energy Africa
Adrian Nel
+27 82 806 8118
Corporate Image
Alice Jenner
+27 21 426 1233
In London:
College Hill
Nicholas Williams
+44 20 7457 2020
Extract from text of announcement by Triton Energy Limited:
"TRITON MAKES SECOND OIL DISCOVERY OFFSHORE WEST AFRICA
DALLAS, TEXAS - June 4, 2001 - Triton Energy Limited (NYSE: OIL)
reports that it has made another significant oil discovery on
Block G offshore Equatorial Guinea. The analysis of drilling,
wireline logging, downhole pressure measurements and
reservoir/fluid samples indicate the Company's G-5 exploration
well has gross oil pay of 407 feet, with 200 feet of net oil-
bearing pay in one pool. The discovery, named Okume, is located
nine miles northeast of Triton's Ceiba Field. The Okume-1 well
encountered reservoirs similar in quality to those of Ceiba, with
an average porosity of 28% and multidarcies of permeability. Okume
(pronounced O-koom-may) oil is 37-degree API gravity crude. This
is Triton's second major oil discovery on Block G in less than two
years.
"The results of the Okume-1 well confirm our belief that there is
a prolific functioning hydrocarbon system in the Rio Muni Basin,"
said James C. Musselman, Triton President and Chief Executive
Officer. "We are extremely pleased that our exploration program in
Equatorial Guinea again has unlocked significant shareholder
value.
"This success demonstrates the highly prospective nature of blocks
F and G, as well as our other acreage in West Africa, which
provides numerous opportunities for sizable long-term reserves and
production growth through the drill bit.
"Obviously, we are very early in the process of evaluating the
size of the new field, but, prior to drilling the Okume-1, we
estimated the prospect size to be 25-250 million barrels of gross
recoverable oil," Musselman added. "Importantly, the well was the
first test of several similar prospects in the same area that we
high-graded based on 3-D seismic attributes calibrated by early
exploration drilling and Ceiba Field development. The aggregate
gross recoverable oil of the greater Okume area could be very
significant, potentially more than the Ceiba Field."
Triton is planning future appraisal to confirm the discovery and
prove minimum economic reserves for project development. In
addition, the Company is evaluating options for an early
production system if warranted.
"Since the Ceiba discovery in October 1999, we have pursued a
systematic exploration process, leveraging leading-edge technology
and the basin learning curve to replicate exploration success,"
said Brian Maxted, Triton Senior Vice President, Exploration.
"We chose not to flow test the well because we believe we can
confidently predict Okume-1's deliverability. Based on the well
results, we estimate Okume-1's flow rate would be between 10,000-
15,000 barrels of oil per day (BOPD). Instead of flow testing the
well, we will invest the time and money in the appraisal of our
find," Maxted added.
The Okume-1 well, named after one of the most valuable timbers in
Equatorial Guinea, was drilled at an approximate cost of US$5.5
million to a total depth of 7,064 feet in approximately 1,604 feet
of water. It is located 18 miles off the continental coast of
Equatorial Guinea.
Brought on production in November 2000 less than 14 months from
discovery, the Ceiba project set an industry time record for
deepwater development. The Ceiba Field is presently producing
about 45,000 BOPD. The Company anticipates the rate increasing to
80,000-90,000 BOPD in early 2002 when it expects to have 10
producing wells and four water-injection wells on line and
operational.
Triton anticipates it will drill two additional exploration wells
in Equatorial Guinea, the first on Block G prior to year-end 2001
and the second on Block F in early 2002.
Triton to Provide Live Webcast of Investor Meeting
Triton will provide a live webcast, including PowerPoint slides,
about the Okume discovery at 3:00 p.m. Eastern time on Wednesday,
June 6. Individuals may view the webcast on the internet at
www.tritonenergy.com. However, they are urged to check the web
site ahead of time to ensure their computers are configured for
the audio stream and slide presentation. Interested parties
without access to the internet may also listen to the presentation
in a simultaneous teleconference call (audio only) by dialing 1-
800-521-5428 prior to 3:00 p.m Eastern time June 6. For callers
outside the United States and Canada, dial (303) 267-1002. The
call ID number is 1065827. The webcast will remain accessible for
30 days on the Company's website. A replay of the call will be
available through 7:00 p.m. Eastern time on June 13 by dialing
(800) 625-5288. Callers outside the United States and Canada dial
(303) 804-1855. The call ID number is 1065827.
About Triton
Triton has an 85% working interest in and is the operator of Block
G and the adjacent Block F offshore Equatorial Guinea, which
together encompass an area of approximately one million acres.
Triton's Ceiba Field is located in Block G of the Rio Muni Basin,
about 22 miles offshore and 150 miles south of the country's
capital, Malabo, and off the shore of the city of Bata. Triton's
partner in the blocks, Energy Africa Ltd. of South Africa, has the
remaining 15% working interest. The government of Equatorial
Guinea has a 5% carried participating interest in Ceiba Field
production and will have a 5% carried participating interest in
production from the Okume discovery if it is confirmed to be
commercial.
Triton Energy Limited is a Dallas-based international oil and gas
exploration and production company with major oil and gas assets
in West Africa, Latin America and Southeast Asia. More information
about Triton may be found at the Company's web site,
www.tritonenergy.com.
SAFE HARBOR STATEMENT: Certain statements in this news release, as
well as written and oral statements made from time to time by
Triton and its representatives in other reports, filings with the
Securities and Exchange Commission, news releases, conferences,
teleconferences or otherwise, regarding future expectations and
financial performance may be regarded as "forward-looking
statements" within the meaning of the U.S. Securities Litigation
Reform Act. These "forward-looking statements" include statements
regarding future revenues, expenses, capital expenditures, cash
flow and production, drilling schedules and the number of wells to
be drilled, and estimates of production rates and reserves. These
statements are subject to various risks and uncertainties, such as
the timely completion and cost of exploration, appraisal and
development activities, contract performance by third parties and
quarterly fluctuations in results. These are discussed in detail
in the Company's Securities and Exchange Commission filings,
including its annual report on Form 10-K for the year ended
December 31, 2000, and its quarterly report on Form 10-Q for the
quarter ended March 31, 2001. Actual results may vary materially.
Triton is undertaking no obligation to update any forward-looking
statements or to disclose the fact that its internal forecasts may
have changed.
The United States Securities and Exchange Commission (SEC) permits
oil and gas companies, in their filings with the SEC, to disclose
only proved reserves that a company has demonstrated by actual
production or conclusive formation tests to be economically and
legally producible under existing economic and operating
conditions. In this press release, references to reserves, unless
otherwise specified, include not only some portion of proved but
also probable and possible reserves which the SEC strictly
prohibits including in our SEC filings. Investors are urged to
consider closely the reserve disclosure in our annual report on
Form 10-K for the year ended December 31, 2000. You can obtain a
copy of this form by contacting our Investor Relations Department
at Triton Energy, 6688 North Central Expressway, Suite 1400,
Dallas, Texas 75206, telephone number (214) 691-5200, or from the
SEC by calling 1-800-SEC-0330.
Investor Contact:
Crystal C. Bell, Vice President, Investor Relations and
Corporate Communications
Triton Energy
(214) 691-5200
Media Contact:
Mark Semer
Kekst and Company
(212) 521-4802"
