Republic of the Congo
The Republic of the Congo is one of Sub-Saharan Africa’s largest oil producing countries with approximately 1.6 billion barrels of proved crude oil reserves, 3.2 TCF of proved natural gas reserves, and a daily production of approximately 300,000 barrels of oil per day. It has an established history of prolific oil production operations, specifically by majors including ENI and Total who have been operating in-country since 1968.
Zenith views the Republic of the Congo as a highly prospective hydrocarbon province with a very supportive jurisdictional framework for junior, independent oil companies with ambitious development objectives.
Low-cost oil production and potentially transformational exploration upside
In May 2020, Zenith completed the 100% acquisition of Anglo African Oil & Gas Congo S.A.U (AAOG Congo”) from AIM listed Anglo African Oil and Gas plc (“AAOG”).
AAOG Congo’s licence to operate the Tilapia oilfield (“Tilapia I”) expired on July 18, 2020, as publicly announced by Zenith Energy and previously announced by AAOG.
On July 20, 2020, the Company announced that it had submitted a comprehensive technical and commercial offer to the Ministry of Hydrocarbons of the Republic of the Congo for the award of a new 25-year licence in relation to the Tilapia oilfield, to be named “Tilapia II”.
AAOG Congo has total receivables of approximately US$5.7 million from Société Nationale des Pétroles du Congo (“SNPC”), the National Oil Company.
Production: Output is approximately 30 barrels of oil per day (39-41 API light sweet crude) from one near surface interval.
Licence Area Highlights
- Located in the Lower Republic of the Congo Basin, West African Atlantic Margin, extending from Gabon down to Angola, a prolific hydrocarbon region.
- 50 km square kilometres, mainly offshore (less than 10m depth) – drilled from onshore
- In close proximity to oil storage /processing infrastructure located in the nearby town of Pointe-Noire.
The Tilapia licence is located in the Lower Congo Basin, the main reservoir and exploration targets are all pre-salt Lower Cretaceous age. Existing production is from the Pointe Indienne Fm (Tilapia sandstone R2).
Recent drilling activity in well TLP-103C drilling has confirmed the potential of the Mengo sandstones in the Tilapia licence, one of the most productive reservoirs in the onshore Congo Basin.
The exploration target, the Djeno sandstones (Hauterivian age), are an exploration target which has successfully been tested during recent drilling activities in well TLP-103C. This reservoir has recently emerged as a potentially prolific horizon in Congo with significant discoveries being made in the Nene-Banga and Litchendjili offshore fields. Wells drilled in these licences produced between 1,000 to 5,000 barrels of oil per day following fracking.
AAOG Congo had a 56% working interest in partnership with SNPC, (holding the remaining 44%), as part of the Tilapia I.
Following successful drilling operations performed in 2019, which encountered hydrocarbons across each target reservoir and confirmed by expert wireline log analysis indicating a reservoir quality of between good and excellent, plans have been made (in the event the Company was successful in being awarded a new 25-year permit) to begin drilling activities in order to begin commercial production from well TLP-103C. The target formations will be the potentially transformational, unexplored Djeno formation, as well as the to the regionally proven Mengo formation.
Zenith is currently producing a new Competent Person’s Report (“CPR”) in compliance with Canadian securities laws, specifically the COGE Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.