Highlights
- Lion Energy has the right to earn a 15% interest on both the Nogal and Dharoor blocks
- Concessions cover a total of 81,000 sq. km.
- Nogal and Dharoor blocks encompass two highly prospective hydrocarbon basins
- The Nogal and Darin basins are geologically similar to and formerly contiguous with that in the prolific oil-producing Republic of Yemen
- Yemen has estimated reserves of over 6 billion barrels
- Nogal Block covers basin with undiscovered potential for 4 billion barrels of oil
Overview
Lion Energy has the right to earn a 15 % interest in the Nogal and Dharoor Blocks through planned work programs to be carried out in 2009 and 2010. The Nogal and Dharoor blocks are situated within the State of Puntland, Somalia. Puntland forms the northern, more stable semi automous region of Somalia. Combined, the two blocks cover a substantial area, with the Nogal valley block covering over 50,000 sq. kms. and the Dharoor valley block covering over 30,000 sq. kms. This region remains one of the most underexplored regions in North Africa. The Nogal and Dharoor blocks are considered world-class exploration plays with reservoirs geologically similar to their mirror-image counterparts within the Republic of Yemen.
(Click to Enlarge)
Regional Geology
The Nogal and Darin basins are believed to be part of a failed rift system and are considered extensions to the prolific Yemen rift system found to the North across the Gulf of Aden. These two areas were joined approximately 18 million years ago prior to the rifting of the Indian plate away from the African plate. The Cretaceous and Jurassic sedimentary basins in Yemen host estimated reserves of over 6 million barrels of oil with current production over 400,000 barrels per day.
(Click to Enlarge)
History
Nogal
Oil exploration in the Nogal basin was carried out in the late 1980’s by several international oil companies conducting 2D seismic surveys. The 2D seismic was shot perpendicular to the axis of the basin and based on interpreted maps this data shows a number of large, closed, fault-controlled structures or potential traps.
(Click to Enlarge)
Several of the targets traps were subsequently drilled, however, only drill data from the Nogal-1 and Kalis-1 holes are available for interpretation. Drilling reports for these two wells indicated that the oil shows were reported in some of the shallower sandstones but the important host, the Jurassic sandstone was not reached. In 1990, the Kalis-1 well was drilled to 5100 feet, far short of the original target depth of 14,850 feet. The Nogal --1 well was also drilled in 1990 and reached a total depth of 10,736 feet. Subsequently, Lion’s joint venture partner, Africa Oil has purchased over 4000 km of previously shot 2D seismic data from the Government of Somalia on the Nogal block. The presence of many oil seeps along the main basin-bounding faults suggests an active petroleum system is in place.
Dharoor
Historical data on the Dharoor block is very limited. However, the size and proximity to the Nogal Basin suggest that it has a similar geologic history and, as such, should have similar prospectivity to the Nogal Basin. Our joint venture partner, Africa Oil has subsequently conducted its own seismic survey acquiring an additional 555 line kilometers of 2D data over a 782 sq. km area.
Exploration Timelines
Interpretation and target generation based on the newly acquired Dharoor seismic data is expected in late 2009, with drilling priorities being selected thereafter. Drilling programs are expected to commence in late 2010. Note table of all proposed project timelines.
(Click to Enlarge)