In November 2009, geophysical contractor CGGVeritas completed the re-processing of about 75 square kilometers of 3D seismic data in the Octon area for our Technical Advisor Vitol GPC Investments SA (Vitol GPC). This was in conjunction with the re-processing of the Galoc 3D seismic data as part of the Galoc Phase 2 evaluation studies in the adjacent Galoc production block. For the most part of 2010, Vitol GPC worked on the interpretation of the re-processed data seismic data. They also did a review of the Octon wells petrophysics and came up with an updated rock volume and reserves estimates for the field. The evaluation results were presented to the consortium in October 2010. The improved seismic resolution achieved after re-processing contributed to the re-interpretation of the Top Galoc Clastic Unit (GCU), the main reservoir, and seismic interpretation of the internal reservoir layers of the GCU. In terms of volumetrics, the new evaluation indicated a mid-case model STOOIP of 22 million barrels and GIIP of 61 BCF reserves for both the northern and southern blocks of the Galoc structure.
The whole G&G program of Vitol GPC was their pre-farmin technical commitment to the consortium with an option to acquire farmin interests by doing further work including drilling of a well and carrying the consortium up to first oil. In November 2010, however, GPC formally declined to exercise their farmin option and cited as the main reason the much protracted Phase 2 work on the Galoc Field. The commercial viability of the Octon Field depends on being tied to Galoc Field development program, which was already considerably delayed by the frequent operational downtime in the Galoc Field. Vitol GPC’s farmin to the Octon Block had always been tied up with the Galoc Phase 2 program.
With the exit of Vitol GPC from the joint venture, the consortium submitted and the DOE approved the 2011 work program and budget for the block. The work program consists of the reprocessing to PSTM/PSDM of some 400 sq km of 3D data over the northern block to firm up the various exploration prospects and play in the area including the West Malajon, Barselisa and Salvacion. The whole reprocessing program will cost the consortium some USD 546,000 and will be its contractual commitment for calendar year 2011 while interpretation and evaluation of the reprocessed data will be the contemplated work program for calendar year 2012. |
