Peak & Equator on OML 122, Nigeria

"Peak and Equator commence drilling the Owanare AX1 exploration well on OML 122• Estimated gas-in-place potential in the Owanare prospect exceeds 3 TCF.

Peak Petroleum Industries Nigeria Ltd. and Equator Exploration Ltd. have commenced drilling their second well in the OML 122 licence area, offshore Nigeria. OML 122 is located 25-60 km offshore in water depths of 40-300 metres and covers an area of 1,295 sq. km on the Western Niger Delta, east of Shell’s giant Bonga Field (estimated 1.4 billion barrels) on OML 118 and southwest of Shell’s EA Field on OML 79. The Owanare AX1 well was spudded this week on the large and promising Owanare prospect, which lies in a water depth of 135 metres. The 3D seismic data covering the prospect has been re-processed and interpreted by Peak, Equator and its independent technical advisors, Horizon Energy Partners. The data suggests that Owanare has gas-in-place potential of 3 TCF.

The aim of the Peak/Equator drilling program is to prove-up significant volumes of gas as potential supply for the numerous gas-utilisation projects currently underway or in planning stages in Nigeria within close proximity to OML 122. The secondary objective is to find commercial volumes of oil on the block.Commenting on the spudding of the second well on OML 122.

Wade Cherwayko, Chief Executive of Equator, said:“Owanare AX1 has significant potential based on 3-D seismic and existing wells drilled on the block including the recently drilled Bilabri BX1 well drilled by Peak and Equator. With the large number of gas utilization projects being developed onshore Nigeria, Peak and Equator hope to monetize gas discoveries on OML 122 in the near future.”
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Posted by Anonymous contributor

Comment:
On the 10 blocks, it is about time. Using the oil and gas resources we have to accelerate the local growth rate is a nice initiative. Hopefully some of the blocks like Opl 471 which is close to some of Total's main fields and the owanare prospect may have solid hydrocarbon accumulation to feed the local and maybe the regional market if there is an energy crisis in the future.
I have always prefered using the gas resources for local use in power, LPG and industries. I recall somehwere that gas may be the cheapest environmental friendly energy used in American industries, more cheaper than electricity. I think coal may be cheaper to produce electricity but may not be that ENV friendly.