Name and Location
Ibhubesi gas project, offshore Northern Cape, South Africa.

Client
Sunbird Energy has acquired 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 enables the ASX-listed company to operate and develop Ibhubesi 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 can be achieved without the need for further exploration or appraisal drilling.

Should additional resources be strengthened, the project’s life could be extended to 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
A final investment decision is expected in 2015.

Latest Developments
The South African government has approved the transfer of an offshore licence, which includes the Ibhubesi gas project, to ASX-listed Sunbird Energy.

The approval allows Sunbird to acquire a 76% interest in the production licence from Forest Oil and Anschutz Corporation. South Africa’s national oil company, PetroSA, holds the balance.

The approval represents a critical milestone for Sunbird, enabling it to consolidate its position as the operator of what is described as South Africa’s largest and most advanced undeveloped gas field.

The transfer enables the company to focus on securing a gas market, which will further unlock the significant value of the project’s proven reserve base and large exploration potential.

Sunbird is advancing two key routes to market for the project, which include a supply to State-owned power utility Eskom and an independent power plant tender for a new 474 MW gas-fired facility.

Sunbird has also started field development planning as part of the front-end engineering and design phase, which will enable the project to reach a final investment decision by early 2015.

The initial phase of the project, which is located 380 km north of Cape Town and 105 km offshore, could involve an investment of between R12-billion and R14-billion to produce 28.3-billion cubic feet a year of gas over an initial six- to eight-year horizon.

In August, Sunbird secured funding from the US Trade and Development Agency for Ibhubesi. The US foreign assistance agency will provide 80% of the funding for a A$1-million work programme, which US-based consultants MHA Petroleum will undertake.

Key Contracts and Suppliers
MHA Petroleum Consultants (field development plan) and WGK (engineering and project management services).

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.
WGK director, corporate communications – eastern hemisphere , Carolyn Smith, tel +44 1224 851099 or email carolyn.smith@woodgroup.com.