Block 3104 Tsimiroro

Block 3104 Tsimiroro:
PSC 3104 is approximately 125km from the west coast of Madagascar. The Tsimiroro field was first drilled in 1909 and 14 degree API oil was discovered at a depth of 40m to 300m. Various drilling campaigns by several operators added 75 wells to the field, but found difficulty in defining the reservoir correlations.

Continuous work by Madagascar Oil on the field since 2006, including; the 2007 detailed geologic analysis clarifying the main Tsimiroro Field area; the drilling of 21 wells in 2007, 23 wells in 2008 and 24 wells in 2010, with an 80% rate of success; and a 430 km Electrical Resistivity Tomography program, has demonstrated that Tsimiroro is a significant heavy oil resource volume.
 
Following the 2010 work, Netherland Sewell Associates, Inc. reevaluated the Tsimiroro oil volumes. Based on the new assessment, the Best Estimate volumes for Contingent and Prospective have doubled and the Low and High Estimates have tripled from the prior 2009 analysis. The 2011 Contingent Best Estimate is now 1.7 billion barrels and the Prospective Best Estimate exceeds 2.1 billion barrels of Original-Oil-in-Place.



The NSAI recovery factor estimate for the steam flood is unchanged at 70% from the 2010 CPR analysis and the new Best Estimate OOIP would result in a Contingent Resource volume (2C) of 1.1 Billion barrels.

In 2008, Madagascar Oil also built a production test facility in the field and subjected three Amboloando wells to cyclic steam injection. Each of the wells produced approximately one barrel of oil prior to steam, and after the stimulation, the wells returned to production at peak rates of 50, 135 and 200 barrels of oil per day. The wells exhibited a classic steam stimulation production rate and decline that greatly exceeded expectations, and Madagascar Oil estimates that the field can be successfully developed utilizing a conventional vertical pattern steam flood. 

 




 
As noted above, the work conducted in 2010 to drill 24 wells in the field and to run 430km of Electrical Resistivity Tomography ("ERT"), a process much like seismic for shallow deposits, has added significantly to the potential oil resources. The ERT lines and 2010 well locations are shown below. In addition to the increase in resources, the program also discovered a new development area on the south end of the field which is not included in the volume increase. Due to time available the data set is limited and further drilling will be required in future years to fully assess the potential for resource contribution.
 
Madagascar Oil has also completed an Airborne Gravity (Full Tensor Gravimetric) survey for Block 3104 which flew 16,000 line km of survey over the block in September and October 2011. It is expected this survey will assist with planning for additional work in the new south area, provide additional data for the main portion of the field and identify other areas on the block that may have shallow or deep hydrocarbon potential.
  


Madagascar Oil is actively installing the planned nine pattern steam flood pilot project, to test the viability of using a conventional pattern vertical multi-layer steam flood in the Tsimiroro field. The project is expected to start production in late 2012 and will run approximately 18 months to acquire data that will resolve numerous reservoir performance factors that are expected to de-risk the decision to proceed with a full scale development of the field.
 
The layout of the nine patterns is indicated below. The drilling of the 16 producing wells and nine injection wells will begin in late 2011 and 3 temperature observation wells will also be included in the project. It is anticipated that cyclic steam will be applied to the injectors and producers and that all wells will be produced by rod pump prior to the start of continuous steam injection at the end of 2012.
 
 
Surface projection


  
Top of Amboloando sand


  
Base of sand


The surface facility construction commenced in mid-2011 and equipment orders and shipment are underway. The main facility tanks are on site and construction will commence prior to the end of 2011. Installation of steam, water and fuel systems will proceed in 2012 and the production and steam lines to the wells will be installed following the completion of the drilling activity.




Tsimiroro Steam Flood Pilot Plot Plan