Shell Offers Farm-In Opportunity Offshore Brazil
Shell Brasil Ltda. formally announces the opening of a Data Room for block BMS-31, Santos Basin, Brazil. The block is in shallow water (500m), contains a near term drilling opportunity, and greater than 1,000MMbbls potential.
BMS-31 contains a drill-ready prospect with primary objective volumes estimated at 560MMbbls (STOIIP) of light oil. In addition, a number of follow-up prospects have been identified. Total unrisked volumes on the block are greater than 1,000MMbbls STOIIP.
Current working interest holders are Shell, the operator at 55% and Maersk at 45%. Shell is making up to 17.5% interest in BMS-31 available by farm-out to interested parties, and Maersk is making 15% available - for a total up to 32.5%.
BMS-31 is in Exploration Phase II, and carries an outstanding one-well commitment to be drilled by September 2007. Dry hole cost is estimated at approximately USD 50MM. A rig is contracted and the joint venture intends to drill the primary prospect, Jumante, during the first half of 2007.
Brazil is an attractive concession (tax/royalty) regime with "special participation" that enables investors to participate in upsides. Brazil has a strong market for consumption, and the contract enables export to ensure international pricing. Upon success, production is estimated to start in approximately 7-8 years.
This block sits to the NE of the largely untested updip Albian roller play. A series of discoveries have been made in blocks BS-400, BMS-4, BS-500, and BS-4 operated respectively by Petrobras, ENI, Petrobras, and Shell. These surrounding discoveries have proven the presence of thick Albian sandstones and charge.
The primary prospect, Jumante, is a large 4-way closure with the primary target in the Albian-Cenomanian sands age-equivalent to the Namorado in Campos. Abundant hydrocarbons are available to charge the prospect from a large mature kitchen in the pre-salt lacustrine source rocks of the Barremian Lagoa Feia. Upside exists in the Cenomanian-Turonian "subvolcanic" sands and Albian carbonates.
An Information Memorandum, including bid process rules, is available online through IndigoPool. The data-room is located in Shell's Houston offices. Bids will be accepted up to March 2, 2007.
- Acquired: Round 4
- Operator: Shell
- Other Partner(s): Maerks (45%)
- Area: 1060 square kilometers (after 50% relinq.)
- Distance to Coast: 85 km
- 3D Acquired: 1,200 square kilometers
- Water Depths: 150 - 750 m
- Phase 1: Expired Sept. 2005, 0 well commitment
- Phase 2: Ends Sept. 2007, 2 well commitment renegotiated to 1 well to Albian
- Prospect Inventory: 2007 drill-stie +2 additional prospects (unrisked-1000 MMbbls STOIIP)
Key Prospect: Jumante (2007 Drillsite) Objectives:
- Primary: Albian-Cenomanian sands: 560 MMbbls STOIIP
- Secondary: Cenomanian-Turonian sands
- Prospect Area; 40 square kilometers
- Phase: Light Oil
- TD: 5400 m TVDss
- Seismic: PSDM over Jumante
- Water Depth: 515 m
- Spud Date: Early 2007 (rig contracted)
Access to the Information Memorandum, Data Room and any additional information shall only be provided to selected parties who have executed a Confidentiality Agreement. Interested parties are requested to contact the person named below to register their interest, request a copy of the Confidentiality Agreement and request a Data Room invitation and time:
Gregory Mowlds, Houston
713 513 1519
Miles Dyton, London
44 20 7517 2660
Rob Singh, Melbourne
61 3 9674 7172
Sudha Chetty, Dubai
971 4 306 7217
Operates 30 Offshore Rigs
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