There is strong evidence of a functional oil and gas system within the Dolphin Graben, an area under licence PEL 96 in Namibia, according to a recent analysis from AIM-listed oil and gas company Tower Resources PLC (AIM:TRP).
The explorer, which holds a majority 80% stake in this operation, has been working to understand the hydrocarbon prospectivity of the area.
The analysis revealed oil extracted from core samples and direct hydrocarbon indicators observed on seismic data, a technique using sound waves to explore the earth's subsurface.
Detailed work
These discoveries signify the potential presence of oil and gas resources within the Dolphin Graben area.
The investigation carried out by Tower included a detailed basin and thermal maturity study, designed to evaluate the critical components of the oil and gas production system. This included the distribution and generative capacity of source kitchens - the underground areas where organic matter is turned into oil or gas.
Additionally, the evaluation provided insights into the timing of hydrocarbon generation and the possible pathways for its migration.
Crucial outcomes of this analysis included locating generative source kitchens in the Lower Cretaceous sediment layers within the Dolphin Graben's main depocenters - areas of maximum deposition.
Mature kitchens
These kitchens are thought mature enough for oil generation. The assessment also determined that the main oil generation phases occurred from the mid-Tertiary period (Oligocene) to the present day.
Migration pathways for oil were mapped, and volumes of generated hydrocarbons were calculated for each source kitchen.
Main focus areas that can channel migration towards each of the prospects were identified.
For instance, the Alpha Prospect fetch area could potentially have generated 45 to 79 billion barrels of oil, while the Gamma Prospect fetch area might hold around 15 to 23 billion barrels.
The study also noted the potential for stratigraphic traps - underground formations that can hold oil or gas - based on the 2D seismic data. These traps, similar to recent major discoveries in South Africa and Namibia, could be located on several of the main migration routes out of the generative kitchens.
Currently, Tower is conducting an oil seep analysis to complement the basin modelling work. A review of existing data on the prospects and leads previously identified is also underway.
Large opportunity
"We are excited by the results of the basin modelling work and its indication of the prospectivity of Tower's licences in Namibia," said chief executive Jeremy Asher.
"It explains neatly the results of the Norsk Hydro well, the source of the lacustrine oil found within it, and the reasons why that oil found its way into that well and subsequently migrated away from it.
"The conclusions indicate the potential for either of the giant billion-barrel-plus structures in the West of the licence to be charged.
"Furthermore, the migration pathways, coupled with the recent impressive industry successes in drilling stratigraphic plays in the Orange Basin to the South, enhance our interest in the similar stratigraphic leads that we interpret on the flanks of the Alpha Prospect structure in particular. We look forward to updating investors further as our work progresses."