Mira Secures Rig, Preps for Re-Entry Offshore Gabon
Mira announced that its wholly owned Nigerian subsidiary Equinox TSB Development, with the approval of both its partners AOGSLand Dansaki Petroleum("DPL"), has signed a Rig and Bundled Services Contract with AXXIS to acquire one firm well slot and a second optional well slot on the Ben Avon jackup. The Rig, owned and operated by KCA Deutag, is currently in Port Gentil, Gabon undergoing refurbishment and is due to arrive in Nigeria around May 25, 2011. It is first contracted by another operator for a single well, where after Mira will take delivery of the Rig. Mira's current best estimate is that we will take delivery of the Rig in early July 2011 to re-enter the Tom Shot Bank 1 well ("TSB 1") and to wire line log and production test the previously identified hydrocarbon bearing zones in this well.
AXXIS is a Nigerian drilling consultancy company with a solid track record of services in Nigeria. AXXIS has contracted the Rig for 270 days from KCA Deutag and is offering individual rig slots together with all additional support services such as supply vessels, security boats and helicopters. This has significant advantages for Mira as it allows our staff to focus on successful execution of the drilling program.
Mira's President, Thomas Cavanagh stated, "I am very pleased to announce that Mira Resources has secured two drilling slots, one firm and one optional slot for the Rig. Our plans are to first re-enter TSB-1, run modern high resolution cased hole logs, and then complete production tests in the selected reservoirs. We anticipate testing 2 or 3 separate reservoirs and if successful will allow Mira to convert these resources into TSX compliant reserves. I am very pleased that within one month of closing the financing that Mira was able to secure the Rig and that we will be able to have a significant part of the planned work program completed within 5 months. This illustrates the commitment Mira has to this project, our partners and investors, and is a significant step forward towards achieving our goal of bringing this field into production in late 2011 or early 2012. The second optional drilling slot will not only give us the ability to optimize the completion design of TSB 1 to maximize production, but will also give the partnership the opportunity, if desired, to drill a second delineation or development well in Tom Shot Bank Field in 2011, thereby potentially significantly increasing the proven resources and the estimated initial production rates. Furthermore, Mira is excited to communicate to our investors, timely operational updates on Tom Shot Bank Field including new opportunities that arise."
TSB Field is located within Oil Prospecting License 276 ("OPL 276") which is adjacent to the Abana Field in Oil Mining License 114 and due north of Addax Petroleum Corp. in Oil Mining License 123 ("OML 123"). Addax Petroleum Corp. is producing almost 50,000 BOPD from multiple fields within OML 123. TSB Field was discovered by Shell Petroleum in 1980 and encountered 425 Gross Feet of hydrocarbon pay, 57 net feet of gas and 83 net feet of oil proven pay with another possible 111 net feet of oil and 29 net feet of gas pay in reservoirs which Shell Petroleum interpreted as probable laminated reservoirs.
Netherland Sewell & Associates ("NSAI") has assigned gross contingent (P50) resources of 8.7 MMBL and 75 BcF of gas to the area around the TSB-1 well. Over and above the currently assigned contingent resources, Mira has exposure to over 110 MMBL (gross) of additional potential in and around the Tom Shot Bank discovery. Mira has allocated $12.6 million for the re-entry and testing of the TSB-1.