PanAfrican Energy announces drilling results offshore Gabon

PanAfrican Energy announces the successful drilling of a fourth appraisal oil well in the Etame Marine Concession offshore Gabon. Etame 4, in which PAE Mauritius, a controlled subsidiary of PanAfrican Energy, has a 32.5 % interest, encountered over 24 metres of net pay in the Gamba and Dentale formations. First production from the Etame field could be on stream around the end of this year.
The partners in the Etame offshore project are now expected to proceed with the development of this resource on a fast track basis. To bring the field into production, three of the four appraisal wells are to be re-entered and connected through sub sea completions to a Floating Production Storage and Offloading Facility. Initial production rates are expected to be approximately 15,000 bpd of oil.
The Etame 1 well, drilled in 1998, drill stem tested in excess of 3,500 bpd of oil from 13 metres of net pay in the Gamba formation. It is estimated that the Etame field contains approximately 40 mm barrels of recoverable light oil reserves. With total going-forward capital costs of up to $ 36 mm, the onstream cost of developing the Etame field is approximately $ 1 per barrel.

The undeveloped offshore satellite fields of South and North Tchibala, each containing approximately 10 mm barrels, can now become economic when tied into the facilities to be constructed for Etame. Total reserves for the Etame Marine Concession now exceed 60 mm barrels. Additional exploration leads, associated with the field, are being examined by the partners.
Partners in the Etame Marine Concession are Vaalco Energy (operator) 30.35 %, PAE Mauritius (a controlled subsidiary of PanAfrican Energy) 32.5 %, Sasol 30 %, PetroEnergy 4.5 % and Nissho Iwai 2.6 %.

PanAfrican is a publicly traded international energy company engaged in the exploration, development, production and marketing of oil, natural gas and electricity in sub-Saharan Africa through a joint venture with the African Infrastructure Fund.
PanAfrican has announced that it intends to change the name of the company to PanOcean Energy at its annual meeting on June 20, 2001. The name change is intended to reflect a broadened focus for the company. To achieve this wider geographic focus, PanOcean is actively examining additional energy investment opportunities beyond sub-Saharan Africa.