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Thermal Customer Connections and Drilling Update, Cameroon

23 Dec 2016

 

The Company is pleased to provide an update on both the gas pipeline expansion and ongoing drilling programme in Douala, Cameroon.

Pipeline Extension

Gaz du Cameroun S.A. ("GDC"), the Company's Cameroon gas producing and distribution subsidiary, has successfully completed both the Phase II & Phase III of the Bonaberi pipeline extension programme. GDC has laid a total of 15km of gas pipeline, including spur lines and metering points to seven new customers. Three of the new customers are now consuming gas for thermal applications. The remaining four thermal customers are scheduled to commission their burners during Q1 2017. The estimated consumption from the seven new customers will be 600,000 scf/d.

The Bonaberi extension of the central pipeline is part of the Company strategy to provide gas to the Western industrial area which is becoming a new hub for industrial developments utilising Douala's port, power and road networks. GDC has established itself as an important supplier of energy to industry either through thermal gas supply or via gas to power and had anticipated the Bonaberi growth and will be able to meet the growing gas demand in this area.

Customers currently online or scheduled to be online in January, all using gas for thermal use, include:



•    Maya & C              Palm oil refinery

•    OK Foods             Biscuit and sweet manufacturer

•    Agrocam              Specialists in poultry hatchery, egg and corrugated carton packaging

•    NAYA                   Food processing

•    BATOULA             Plastic processing

•    BOCOM                Car battery recycling and steel products

•    Camaco                Cocoa processing



Drilling Update



Drilling of wells La-107 and La-108 is continuing and GDC is working with its contractors to make up for the delayed start to drilling primarily due to lightning strikes during rig up.

The Company is pleased to announce that GDC has successfully drilled and cased the 17½" section of La-107 to 1004 m and we are preparing to drill the 12¼" section to 1600m where we will set the 9⅝" production casing prior to drilling the reservoir section in 8½" hole.

The 17½" section of La-108 has also been drilled and cased to 1173m and its 12¼" section will be drilled after the 12¼" section of La-107 is completed.

The 2016/17 drilling campaign at Logbaba is designed around a 'batch drilling' approach. As a well is drilled the equipment, drilling fluids, drilling services and specialist personnel required vary for each hole section. In a batch drilling programme the rig is moved back and forth between the wells, progressing through all the hole sections until the well is completed, which allows for a more efficient and cost effective utilisation of the various services and personnel for each hole section. The Komako 1 rail mounted drilling rig is designed for this type of operation.

The gas bearing target horizons from which it is anticipated both new wells will produce are in the Upper Cretaceous (Campanian and Santonian) Logbaba Formation, which is a thick sequence of interbedded sands and shales found at depths between 1,700m and 3,200m below the surface.