HYDROCARBON EXPLORATION & PRODUCTION IN SOUTH …

Anthea C. Davidsdavidsa@petroleumagencysa.com

APPEX, 7 March 2013

HYDROCARBON EXPLORATION &

PRODUCTION IN SOUTH AFRICA:

AN UPDATE ON ACTIVITY

Petroleum Agency SA - oil and gas exploration and production regulator

1. Promotion and

2. Regulation of oil and gas exploration and production in South Africa

3. Archiving all data

Advising Government

Ministry of Mineral Resources - Hon. Minister Susan Shabangu

Close ties to the Department of Energy

Recent activity

• Right Conversions

• New Production Rights

• New Explorers Offshore

• Unconventional Onshore

• Upcoming Exploration

Recent activity

• Right Conversions

• New Production Rights

• New Explorers Offshore

• Unconventional Onshore

• Upcoming Exploration

November 2012: Status of Licenses and Applications

SunguSungu

Orange Basin – West Coast

Block 1 – Cairn India

Exploration Right –

second period waiting

on renewal

• Reprocessing and

re-evaluation of data

• Potential for gas –

Kudu equivalent,

Ibhubesi equivalent

plus other untested

plays

Orange Basin – West CoastAnadarko

Block 2C –

under

application

Orange Basin – West Coast

Sunbird Energy - PR

Recently signed

agreement to acquire

76% interest in 2A

- Pending government

approval for part of

acquisition

JV with PetroSA

– Ibhubesi Gas Field

Year 3 of Gas Market

Development

IPP gas to power

programme

Orange Basin – West Coast

Thombo/Afren

Petroleum – A-J

oil discovery

3D seismic

survey this

summer season

Orange Basin – West Coast

Deep water beginnings

3B/4B - BHP Billiton

Mid-Basin – Sungu Sungu

Deep water - Shell

Southern basin -

PetroSA/Anadarko

SunguSungu

3D seismic survey

3D seismic survey

2D seismic survey

3D seismic survey

South Coast

F-O field

Block 9 - PetroSA

Exploration Right Block 9

• Ongoing exploration

• Development of F-O gas

Field

South Coast ctdDeep water exploration - CNR

Shallow water - Bayfield Energy

and NewAge

South Coast ctd Ultra deep water exploration -

Total

New applications and TCPs–

OK Energy and Impact Africa

3D seismic survey

Ikhwezi gas field development – 5 wells, subsea infrastructure

2D seismic survey

3D seismic survey

Deep water well – 2013/14 or 14/15

2D seismic

East Coast

Narrow shelf TCP and

deep water applications –

Impact Africa, SWE,

ExxonMobil

Recent activity

• Right Conversions

• New Production Rights

• New Explorers Offshore

• Unconventional Onshore

• Upcoming Exploration

SA Onshore

Three types of unconventional resources

• Coal bed methane

• Biogenic gas

• Shale gas

Coal Bed Methane Local and international

companies

Approaching 20Tcf GIP

Coal Bed Methane ctd

Amersfoort area – Ermelo Coalfield

Lephalale/Ellisras Basin – Waterberg Coalfield

Biogenic Methane Production

Molopo Energy

Production Right – Virginia

Gas sales up to 8TJ/d (7.5 mmscf/d) Novo Energy

Shale gas in the Karoo Basin

• 485 Tcf??

• 30 Tcf ??

• Moratorium

• Unknown and

unproven resource

Recent activity

• Right Conversions

• New Production Rights

• New Explorers Offshore

• Unconventional Onshore

• Upcoming Exploration

7 seismic surveys – a record level of activity and a lot more to come!

STATUS OF EXPLORATION ACTIVITIESANADARKO (5/6) Completed 2D survey

THOMBO (2B) Completed 3D survey

Shell (Deep water) 3D survey - 99% complete

Cairn India (Block 1) 3D survey planned completion May 2013

Spectrum 2D survey - 44% complete

NewAge 2D survey - 25% complete

BHP Billiton (3B/4B) 3D survey - 21% complete

PetroSA F-O field development

1st well drilled up to 2200m (to be drilled horizontally to about 3000 m)

Multi Client Surveys off SA

• Acquisition completion: April 2013

Spectrum

CGG Veritas

• Commence March 2013• Data available March 2014

PGS

• To commence Q4 2013 / Q1 2014