Name and Location
Ibhubesi gas project, offshore South Africa.

Client
Sunbird Energy is acquiring a 76% interest in the production right for Block 2A, within which the Ibhubesi gas project is located, from Forest Oil and Anschutz Corporation.

The acquisition, which is subject to approvals by the Petroleum Agency of South Africa and the Department of Mineral Resources, will enable the ASX-listed company to operate and develop Ibhubesi together with South Africa’s national oil company, PetroSA, which will hold the remaining 24%.

Project Description
An independent reserves certification of the Ibhubesi gas project has yielded proven and probable reserves of 540 billion cubic feet (bcf), with Phase 1 designed to exploit proven reserves of 210-bcf to produce 28.3 bcf a year of gas over an initial six- to eight-year horizon.

The technical assessment confirms that the planned Phase 1 development of Ibhubesi can be achieved without the need for further exploration or appraisal drilling.

Should additional resources be firmed up, the project’s life could be extended beyond 15 years and into Phase 2.

Value
The initial phase of the project could involve an investment of between R12-billion and R14-billion.

Duration
Not stated.

Latest Developments
Sunbird Energy has secured funding from the US Trade and Development Agency (USTDA) to progress the field development of the Ibhubesi project.

The USTDA will provide about 80% of the funding for a A$1-million work programme to be undertaken by US-based consultants MHA Petroleum Consultants.

The field development plan includes studies on reservoir modelling, production forecasts and the design of a production drilling programme.

Sunbird expects to make a final investment decision on the gasfield by early 2015.

The company expects that the front-end engineering design phase will involve an investment of between R100- to R150-million, depending on the scope of work.

Sunbird, together with PetroSA, is funding all costs in advance of the project, passing the investment threshold, but its funding plan for the actual project is still being finalised.

Key Contracts and Suppliers
MHA Petroleum Consultants (field development plan).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Sunbird Energy, tel +61 8 9463 3260 or fax +61 8 9462 6630.
PetroSA group communications manager Thabo Mabaso, tel +27 21 929 3365 or email thabo.mabaso@petrosa.co.za.
MHA Petroleum Consultants, tel + 303 277 0270 or fax +1 303 277 0267.