Pancontinental Oil & Gas (ASX:PCL) 25% interest in licence L8 Mbawa offshore Kenya, (Origin 75% ASX: ORG), has announced the receipt of high quality Mbawa 3D seismic survey PSTM (Pre Stack Time Migration) processed data.
Initial interpretation shows similar features to the previously interpreted Mbawa 'Flat Spots', with Pancontinental stating the structure remains robust and very large.
The main upper Mbawa Flat Spot (possible “Direct Hydrocarbon Indicator”, “DHI”) indicates a possible gas-oil or gas-water interface, with a second Flat Spot about 120m deeper is consistent with a possible oil-over-water interface.
Pancontinental’s interpretation is consistent with a gas column of about 100m overlying an oil column of about 120m, but these can only be validated by further seismic analysis and drilling.
New mapping is revising the size and shape of the Mbawa structure and the oil and gas volumetric potential, with earlier estimates exceeding the potential for 1 billion barrels of oil or 1 trillion cubic feet of gas recoverable.
New estimates are expected to be revised up or down to some extent.
The new 3D mapping will take two to three months and will locate a drilling site, with water depth over Mbawa about 800 meters, easily within the range of modern drilling and production equipment.
The Kenyan Ministry of Energy has agreed to grant an extension of three months to the current licence year to allow the joint venture to finalise the 3D interpretation.
Pancontinental also has a 40% interest in adjacent licence area L6.