Kilosa-Kilombero Licence, Tanzania
This large (17,675km2) licence is located on the East African Rift System (EARS), a proven oil trend. Over 6 billion barrels of oil has been found in the Lake Albert area of Uganda, in the western branch of the EARS. Another 600mmbbls+ have subsequently been found in the Lokichar Basin in Kenya on the eastern branch of the EARS. The discoveries have provided compelling evidence that the presence of oil in the rift systems is geographically more extensive than previously thought.
Airborne gravity and magnetic surveys acquired during the first year of operations confirmed the presence of at least three sedimentary basins of up to 7,000m deep. On the basis of this the company expected to encounter a typical rift system, half-graben plays, analogous to the Lokichar Basin where the Ngamia and Twiga South discoveries were made. In 2013 the Joint Venture carried out a total of 300-kms of 2D seismic over the three basins in the Kilosa-Kilombero licence area.
Kilosa and Kidatu Basins
A total of 273km of 2D seismic data (130km in Kilosa and 243km in Kidatu) were acquired over the Kilosa and Kidatu basins during 3rd and 4th Quarters 2013. Initial results based on preliminary processed data indicate the possible presence of large-scale structures along the edges of both basins. Seismic stacking velocities very fast suggesting that the sediments are well-compacted and likely to be Karoo (pre-Neogene) in age.
The most prominent structure in the Kidatu Basin is called the Angaza Lead.
The structure at a deep (Blue) horizon may be as large as 30 to 60 square kilometres. A shallower closure indicated on the section below has an estimated Best Recoverable Hydrocarbon volume of 43BCF gas (GCA 2016).
The Kilombero Basin is approximately 80 kms long. In late 2013 Swala acquired 2D seismic data over a 20km-long section of the basin. The results showed a large structural high adjacent to the basin-bounding fault that extended over a distance of 9km and was about 4km wide. Initial results also suggested the presence of a thick, Neogene-age basin (based on relatively low seismic stacking velocities) with a maximum depth to basement in excess of 3,000m. These sediments are interpreted to be similar in age to the now proven oil basins of Lokichar (Kenya) and Lake Albert (Uganda). This structural prospect, named Kito, was characterised by a Competent Person’s Report in 2013 and also in 2016 (GCA). Best Estimate recoverable hydrocarbons for the Kito prospect are 181MMBBLS. Dip lines across the basin suggest the presence of both structural traps and traps against the main basin-bounding fault with possible Direct Hydrocarbon Indicators (DHIs or "Flat Spots") observed at several levels at the crest.
During 4Q 2014 the Company carried out a further seismic survey over the Kilombero basin with particular emphasis on the edges of the basin. This survey identified a number of leads and prospects along the basin-boundary faults, extending in a 'string of pearls' configuration to the NE and SW of the Kito prospect. This configuration is analogous to the structural setting of the discoveries made to date in the Lokichar Basin in Northern Kenya.
The Company was recently allowed to extend the Initial Exploration Period to allow the drilling of the exploration commitment well to be drilled within the Period. This was allowed due to the extremely tight drilling window in the marshy Kilombero basin which is only dry between the months of September to December. the seismic and geological work carried out in 2015 has allowed the company to select the Kito prospect as the selected drill target for the commitment well and drill planning is already well underway with Long Lead Items already ordered. It is expected that the well should be drilled for a gross cost of less than $10MM. The well is expected to spud at the beginning of September.