CityView Acquires Stake in Cameroon Oilfield

CityView Corporation has acquired the right to take up a 28.5% of Turnberry Resources Inc., which equates to a net 20% interest in North Matanda PH72 oilfield.

CityView has acquired the right to take a net twenty percent (20%) interest in North Matanda oilfield PH72 Cameroon.

Gulf Oil USA drilled two wells in PH72 and discovered condensate in both of the wells.

Condensate reserves are estimated to be 60 million barrels from the two wells, with a production plateau at 4 million barrels per annum(a). West African condensate prices currently exceed US$70 per barrel.

Addition of the gas income stream from the two wells would create an uplift of 30-50% in NPV. The major market, Douala, is 13 kilometers away.

Other prospects in the license area are expected to increase reserves: their development to be financed from the current proposed production.

The Matanda block (1187 km2) PH-72 (former OLHP-3) is situated in the northern part of the Douala/Kribi-Campo basin covering the northern half of the Wouri estuary and surrounding onshore areas. The block is partly onshore and partly shallow offshore.

Condensate was discovered in two wells drilled to a depth of 3,000 meters in the permit by Gulf Oil USA during the 1980s. Gulf, which was looking for a giant oilfield similar to that found in the Niger delta, relinquished the permit.

Gulf, as operator, based on the wells, seismic and testing, quoted the following reserves of condensate:

  • P 60 MMBBLS
  • P+P 120 MMBBLS
  • P+P+P 300 MMBBLS

According to Dr Smith, six other prospects exist in the license area (two are offsets of discoveries outside the license). Turnberry considers they have a potential for a further 1.8 TCF natural gas and 600 MMBBLS of condensate.

Condensate prices from this region historically trade at a premium of US$3 to the price of Brent crude oil. West African condensate prices currently exceed US$70 per barrel.

The entry cost to CityView will be US$1.3 million total in tranches plus half of the NPV of a net 20% interest calculated by a leading valuer.

CityView has agreed with the holder of another 28.5% interest (20% net) in Turnberry to treat the two companies combined 57% interest in Turnberry as concert parties with mutual pre-emptive rights in the event of sale.

Gas production will be directed via a new 13 kilometer pipe line to a 100 megawatt power station to be constructed by Quest, which will finance future expansion of operations.

Negotiations for CityView to acquire an onshore oilfield in the Kwanza Basin of Angola are on-going.