Successful Testing of Temane-3 Well in Mozambique Confirms Potentially Significant Natural Gas Accumulation

abarrelfullabarrelfull wrote on 07 Aug 2012 12:26
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02 September 1998

The successful testing of the Temane-3 exploration well has confirmed a potentially significant natural gas accumulation in the Temane region of the Republic of Mozambique, it was announced today by a consortium of international oil and gas companies.

Temane-3 tested gas at a rate up to 25 million cubic feet per day from the Cretaceous Grudja G-9 horizon. The successful well confirms earlier indications of a gas accumulation in the region made by Gulf Oil with its Temane-1 and 2 wells drilled in 1956 and 1967, respectively.

The government of Mozambique and the government-owned company ENH (Empresa Nacional de Hidrocarbonetos de Mocambique, EP) signed a Production Sharing Agreement on 15 May, 1998, with an international group made up of ARCO Mozambique (Temane) Ltd, a subsidiary of Los Angeles-based ARCO (NYSE: ARC) and operator with a 47.62% interest; Sasol Petroleum Temane Limitada of South Africa (47.62%); and Zarara Petroleum Resources Limited of Dubai (4.76%).

The Nabors 235 drilling rig has been moved to the Temane-4 location approximately 11km southwest of Temane-3 for the first of up to five appraisal wells. Drilling on Temane-4 commenced 24 August. The consortium partners expect to spend up to US$50 million in drilling, seismic and engineering activities on the Temane prospect over the next 18 months.

Discussions are ongoing for the possible sale of natural gas to Sasol in South Africa and to JCI Projects for use in its proposed Hot Briquetted Iron plant in the Beira area of Mozambique. Additional markets are expected to develop in the Maputo and Maputo Corridor regions and the Beira Corridor area.

The same group of companies has signed Production Sharing Agreements for two additional blocks in Mozambique — Sofala and M-10.


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