Name and Location
Ibhubesi gas project, off the Northern Cape coast, 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
The Ibhubesi project is located 380 km north of Cape Town, in Block 2A, which is a production right that covers 5 000 km². The undeveloped gasfield – the largest in South Africa – has 1P reserves of 210-billion cubic feet (bcf) and 2P reserves of 540 bcf.

Value
The initial phase of the project could involve an investment of between R12-billion and R14-billion to produce 28.3 bcf of gas a year over an initial six- to eight-year horizon.

Duration
A final investment decision is expected in 2015, with first gas planned for 2017.

Latest Developments
Sunbird Energy has obtained final approvals for the acquisition of the Ibhubesi gas project from Forest Oil Corporation.

The approvals conclude Sunbird’s acquisition of a 76% interest in the production right for Block 2A, which covers a 5 000 km² area within the Orange basin and contains the Ibhubesi project.

Sunbird MD Will Barker says that completing the Forest Oil transaction has delivered a highly valuable asset to Sunbird, in South Africa’s largest proven gasfield, at a time when emergency electricity load shedding is again in the headlines in the country.

The company has said that it looks forward to progressing its gas sales negotiations with Eskom for the supply of gas to the existing Ankerlig power station that is currently run on expensive diesel, and further exploring Block 2A’s upside potential.

More than $125-million has been invested in the exploration and appraisal of Block 2A since 2000, with seven of the 11 wells drilled to date discovering commercial volumes of gas. Beyond the existing discoveries, an independent assessment determined that the block contained a best estimate prospective gas resource of 7.8-trillion cubic feet.

Having executed the sale and purchase agreement in December 2012, which provided Sunbird with control of the entities holding the Ibhubesi licence and operatorship of the licence, South African government approvals were still required for the acquisition.

Sunbird had previously revealed plans to fast-track the commercial development of its Ibhubesi gas project.

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.