Sunbird Energy (ASX: SNY) has received an independent certification of 7.8 trillion cubic feet of Best Estimate Prospective Resource gas in Block 2A offshore South Africa.
This comes at an opportune time, given that gas use has the potential to grow in South Africa, which has plans to reduce its reliance on aging coal-powered generation with gas (including shale gas) and renewable sources.
The resource for Block 2A, where the Ibhubesi Gas Project is located, highlights the potential to enhance the longevity and commerciality of the planned project.
Sunbird holds a 76% interest in the block and is the nominated operator.
It now plans to high grade the portfolio through additional geological studies to identify key targets for future exploration drilling based on geological certainty, size of the prospects and proximity to the planned IGP development.
Sunbird intends to initiate these geological studies during 2014.
It will also pursue its development planning, engineering design and gas commercialisation negotiations for the IGP.
The Ibhubesi gas field is located in the offshore Orange Basin that extends along the western coastline of South Africa into south western Namibia.
It has tested gas from Cretaceous Albian aged sandstone reservoirs which are identified with a high degree of accuracy from seismic data due to the impedance effect of the porosity of the reservoirs.
These same reservoirs have also tested gas at the A-F1 well in Block 1 near the northern border with
Block 2A , delineating a productive trend at least 200 kilometres long.
Source: Proactive Investors