27.10 2015 Charles Ellinas
Soon Total is expected to formalize its request to extend the lease of Block 11 beyond Feabruary 2016, when the current lease expires. Assurances for this intent were given to Cyprus Energy Minister during recent meetings in Paris.
This is the outcome of further assessment of Block 11 seismic and geological data during this year, following Total’s decision to relinquish the lease of Block 10 and to re-evaluate Block 11 and the area round it, especially in areas adjacent to mount Eratosthenes.
Total has also been re-evaluating their geophysical models in view of the discovery of Zhor only about 6km away from the boundary of Block 11. It is understood that Total may have now identified new targets to drill, which will be a requirement for such a renewal of the lease to be granted.
Another strong incentive behind this new-found interest in Block 11 is the discovery of Zhor itself and the probability that it may extend into Block 11. ENI has stated that the Zhor gas reservoir lies entirely in Egyptian waters, but there is a small probability that a small part of it may extend into Block 11.
In addition, there are indications, with low but reasonable geological probability, that oil may exist deeper than the Zhor gas reservoir, with higher likelihood that this may extend well into Block 11.
With such good indications of possible hydrocarbons in the area, Total may now regret relinquishing the rights to Block 10 prematurely.
The prospect of Total staying and actually carrying out more drilling is of course to be welcomed. It is only through additional drilling that Cyprus can discover whether the good prospects for larger quantities of gas than discovered so far are real.
Source: http://www.sigmalive.com/en/blog/charles.ellinas/2015/10/987/total-will-extend-its-lease-of-block-11
