2D Seismic in onshore Odewayne PSC Somaliland Pushed to Q4, Early 2017

The acquisition of 2D seismic in the large onshore Odewayne PSC block will commence in late 2016, early 2017 according to operator Genel Energy.

Although 2D seismic acquisition is already carried by Genel Energy Somaliland Limited for all exploration costs during the current third, and subsequent fourth exploration period an agreement with Somaliland government will see the government acquire the data by contracting with an international seismic contractor and the operator will purchase data.

The seismic exercise earlier been planned for the second quarter is expected to open up the region which has been highlighted as a potential oil province due to its similarities to the productive rifts in Yemen and the presence of localized oil seep.

The Odewayne basin is considered to be sufficiently deep for source rocks to be mature for oil generation and extensive oil seeps have been observed on block indicating a working hydrocarbon system.

No seismic data has been acquired to date and the Block remains undrilled but the scale of the basin and comparison with analogue basins suggests potential for developing a significant portfolio of potentially drillable structures.

Gravity and aeromag has already been acquired and interpreted over the entire 40,000 square km acreage.

The seismic operations in Somaliland have been temporarily suspended for a while due to deterioration in the security environment.

Operator estimates of the potential of the basin are in the order of 1Bn bbls.

The holders of the PSC are: Genel Energy Somaliland Limited (Operator) 50%, Sterling Energy (East Africa) Limited 40%, Petrosoma Limited 10%.