…Hydrocarbon found in two reservoirs
OpeOluwani Akintayo
01 February 2018, Sweetcrude, Lagos – Conoil Producing, owned by business mogul Chief Mike Adenuga has reportedly found commercial sized hydrocarbon footage in its Tolu Ejanla-1 in Oil Mining Lease, OML 103 in the Niger Delta.
The discovery was made in the fourth quarter of last year after rigorous search and drilling jack up with the Adriatic-1.
The project is being handled by Shelf Drilling Ltd.
The footage/well is between the Niger Delta boundary and the Benin Basin.
Hydrocarbon was found in two reservoirs and presently, some testing and sampling are ongoing to determine the total capacity of the discovery.
Conoil was the first real Nigerian operator of a Nigerian hydrocarbon acreage, winning its first license as one of the several local firms granted discretionary awards in 1991, during “The Indigenous Thrust”.
The company made history when it claimed to have made oil discovery in OML 103 in Christmas of 1993.
At the height of its powers, Conoil produced over 35,000 barrels of oil per day, BOPD, between 2005 and 2006.
“Our overall potential hydrocarbon resources of over 1.0 billion barrels of oil and 7.0 trillion cubic feet of gas, helps position us in Africa as the flagship of the independent oil and gas companies”, the company claims on its website.
Conoil is the operator of oil six blocks in the Niger Delta.
Its asset include OML 290, which it describes as its latest (PSC agreement was signed in October 2008); OML 59, for which it signed a technical operator agreement with Continental Oil and Gas Limited, CONOG, in 1998, to provide 100% funding and technical service agreement to operate; OML 136; Oil Prospecting Lease (OPL) 2007; OPL 257 as well as Block 4 in the Joint Development Zone (JDZ), in which it is 25% equity holder.
This is the lowest equity Conoil holds in any asset.
However, the company left these assets to lie fallow for more than 10 years before resuming work on some.
In the last six years, Conoil has been more aggressive working on OPL 290, OML 2007 and OML 59.
It has also made deeper pool discoveries in OML 59 and proved up new oil in OML 2007 and OPL 290, which, experts say, could push production to 60,000BOPD by this year, if corporate governance issues do not stand in the way.
