PanOcean Begins Construction of Onshore Pipeline in Gabon

Gabon Offshore Map
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Pan-Ocean says that it has commenced construction of a wholly-owned and operated export pipeline onshore Gabon, West Africa. The Company now expects the export pipeline to be completed and onstream by the end of June 2006.

The Company also announced that the KCA Deutag rig, which is under exclusive contract to PanOcean for the Tsiengui development drilling programme, is in country and is being mobilised to its first location. The Company further announced the plugging and abandonment of the exploration well AWOCHE-1 on the Chevalier prospect (PanOcean 50%), five kilometres west of the previous Awoun discoveries at Damier and Koula.

Onshore export pipeline

PanOcean is constructing a 26 kilometre, 10-inch diameter, crude oil export pipeline from the Company's Obangue Field south to the Total-operated Coucal facility. The pipeline is designed to transport all of the crude oil production from the Obangue and Tsiengui fields (PanOcean 92.5% interest) as well as production to be developed on the adjacent Awoun block (PanOcean 40%). The pipeline will be tied in to the Total-operated trunk line at the Coucal facility, which in turn goes to the Total export terminal on the coast at Cap Lopez.

Civil works for the pipeline right-of-way, started in early September, are currently 40% complete and are expected to be finished by year-end. Pipe and construction equipment are expected to be mobilised by the end of October with installation and construction of the pipeline completed by March 2006. The final component of the pipeline, a reheating, repumping and metering facility adjacent to the Coucal processing facility, is expected to be commissioned by June 2006. The export pipeline is planned to be fully commissioned and in service by the end of June 2006.

Onshore drilling

PanOcean received and cleared the KCA Deutag drill rig through Gabon customs in mid-September. The rig is expected to be onsite to work over a water injection well by early November. The rig is then scheduled to move to the Tsiengui field and commence the Tsiengui development drilling program, beginning with a water injection well on the south end of the field. The rig is planned to continue drilling in the Tsiengui field through to the completion of the current Tsiengui development drilling program.

On Awoun, the AWOCHE-1 exploration well was drilled by the Simpler 101 rig to evaluate a sub-salt Gamba sandstone target to a total depth of 2,147 metres and logged. PanOcean's petrophysical analysis of well logs indicates that the Gamba sandstone is water wet. The total Gamba Sandstone reservoir thickness encountered is 57 metres (187 feet). The well is currently being plugged and abandoned. The Simpler 101 rig will next move to the Merle prospect to spud AWOMER-1, to the northwest of the Koula field.

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