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.

BMS-31 Factsheet

  • 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

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit