/NOT FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Jan. 28, 2013 /CNW/ - Griffiths Energy International Inc.
("Griffiths Energy" or the "Company") announces an operational update
summarizing its current development and exploration activities in Chad.
Badila-2 development well completed and cased as a producer having
intersected 195 meters of net oil pay. Flow tests are scheduled for the
Badila-3 development well has been spudded
Contracted a 300 km2 3D seismic survey covering Badila field and the Bitanda Ridge, which is
expected to be completed in Q2 2013
Badila Development and Exploration
On January 15th, 2013 Griffiths Energy successfully completed drilling
the Badila-2 development well to a depth of 2,075 meters. Badila-2 was
cased as a producer prior to moving the drilling rig to Badila-3.
Operations are underway to flow test Badila-2, which will occur in the
Extensive coring and wireline logging suggest 195 meters of net oil pay
at Badila-2, in line with the Company's expectations and more than
eight times the oil pay perforated and accessed for testing on the
Badila-1 discovery well. At Badila-2 the net oil pay includes 101
meters in the Lower Cretaceous C zone across 5 sands, 92 meters in the
Lower Cretaceous D zone across 8 sands and 2.5 meters in the Lower
Cretaceous E sands.
On January 24, 2013 the Company spud the third development well in the
field, Badila-3. It will take approximately 30 days to achieve the
target depth of 2,110 meters.
As previously disclosed, Griffiths Energy had re-entered the Badila-1
well in May 2012 and declared it a discovery after it achieved
constrained test flow rates of up to 4,025 barrels per day. The test
accessed 23.5 meters of net oil pay, all in the Cretaceous C sands. A
previous operator originally drilled Badila-1 in 2002 but did not flow
Griffiths Energy has contracted a 3D seismic program covering more than
300 km2 for the Badila field, as well as the adjoining Bitanda ridge, where
multiple exploration prospects have been identified. Preparations to
start the seismic acquisition are underway and the program is scheduled
for completion in Q2 2013.
Badila Reserves Update
The Company expects to have enough information to review the reserves
potential of the Cretaceous light oil in the Badila field at mid-year
2013. By mid-year the Company will have new well information at
Badila-2 and Badila-3, 3D seismic over the Badila field and an
estimated 2 months production from Badila-1, 2 and 3.
Civil work continues to progress to prepare for development drilling at
the Mangara field, which is approximately 95 km from Badila. Well sites
for the Mangara-4 and Mangara-5 development wells have been completed,
and the well locations have been preset in advance of the arrival of
the drilling rig from Badila-3 once drilling operations there are
As previously disclosed, a prior operator drilled three wells at Mangara
between 1978 and 2007, with each well encountering oil in multiple
stacked reservoirs. The wells were flow tested at rates between 300
bbl/d and 1,875 bbl/d. Griffiths re-entered one of the wells in March
2012 and achieved a natural flow rate of approximately 800 bbl/d.
Connection to the COTCO/TOTCO Export Pipeline
Griffiths Energy has executed the Interconnection Agreement, which
addresses physical access to the 250,000 bbl/d capacity COTCO/TOTCO
export pipeline. Griffiths Energy has also secured the required 111
kilometers of pipeline right-of-way to connect the Badila and Mangara
fields to the export pipeline. Connection to the export pipeline is on
schedule to be completed and commissioned in Q2 2013.
The connecting pipeline consists of two segments:
16 kilometers connecting the Company's blending and export terminal at Badila to the
COTCO/TOTCO export line, which is part of the Company's Inland
Transportation Authorization (the "ITA"). The right-of-way clearing
and pipeline stringing is underway and the line is expected to be
completed and commissioned in Q1 2013
95 kilometers connecting the Mangara field to the blending and export terminal. This
segment will include both an oil pipeline and natural gas pipeline. The
right of way is being cleared and the oil pipeline is on schedule to be
completed and commissioned in Q2 2013
A Modification Agreement, which addresses modifications required to the
export pipeline to transport Badila and Mangara crudes, has been
executed by TOTCO and Griffiths and has been approved by COTCO's board.
It is now awaiting COTCO's signature.
Production Facilities and Blending and Export Terminal
Construction of the Badila production facility is on track, with
commissioning expected during February 2013. This will include the
pipeline tie-in of the Badila-1 and Badila-2 wells, which will be ready
for production once the Badila field is connected. Construction of the
Mangara production facility is scheduled to begin during Q1 2013 and
production is expected to commence in late Q3 2013.
For the blending and export terminal, Griffiths Energy has secured
blending and storage tanks, shipping pumps and custody transfer
metering. This equipment has been ordered and is on its way to the
project site. Export terminal construction is underway and expected to
be completed and commissioned in Q3 2013.
Gary Guidry, Griffiths Energy's President and Chief Executive Officer,
"Griffiths Energy is ramping up development work at our promising Badila
and Mangara discoveries and will be ready to commence production in the
second quarter of 2013. The Badila-2 development well, which we have
completed and cased as a producer having intersected 195 meters of net
oil pay, was inline with our pre-drill expectations. We will now
conduct flow tests."
"We have one active drill rig on our property now and expect to mobilize
two more rigs during 2013. Our 113 employees, including 69 at our
Calgary head office and 44 in Chad, are rapidly advancing our
development and exploration projects. With first production expected to
commence in the coming months, 2013 should be a transformational year
for Griffiths Energy."
About Griffiths Energy International Inc.
Based in Canada, Griffiths Energy is an international exploration and
development company focused on oil and gas exploration, development and
production activities in the Republic of Chad, Africa. In 2011, the
Company acquired their production sharing contracts ("PSCs") from the
government of the Republic of Chad. These PSCs provide exclusive
rights to explore and develop reserves and resources over a combined
area of 26,103 km2 in southern Chad. The PSCs cover two world-class oil basins with
development opportunity, oil discoveries, and numerous exploration
Forward-Looking Statements and General Advisory
Certain information in this press release constitutes forward-looking
statements under applicable securities law. Any statements that are
contained in this press release that are not statements of historical
fact may be deemed to be forward-looking statements. Forward-looking
statements are often identified by terms such as "may," "should,"
"anticipate," "expects," "seeks" and similar expressions. Specific
forward-looking statements included in this press release include
comments related to the expected timing of pipeline completion and
facilities advancement; expected receipt of regulatory approvals;
potential production rates; expected completion of well servicing
operations; development of the Mangara field; expected completion of
feasibility studies and evaluation work; and other matters.
SOURCE: Griffiths Energy International Inc.
For further information:
President and Chief Executive Officer
Griffiths Energy International Inc.
Chief Financial Officer
Griffiths Energy International Inc.
Alan Bayless, Longview Communications
Ben Brewerton / Ed Westropp, FTI Consulting
+44 (0) 207 831 3113