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
Pan-African investment company Vandasia Investments will acquire a 43.9% interest in Sunbird Energy for about A$25-million.

The investment company will acquire an initial 20.37-million Sunbird shares for $5-million within ten business days.

Subject to shareholder approval and the execution by Sunbird of a gas sales term sheet with a potential customer, Vandasia will acquire a further 23.02-million Sunbird shares for $9.35-million.

The second stage of the transaction will also include the acquisition and conversion of 47.75-million options, which will result in Sunbird receiving an additional amount of about $8.85-million. The exact amounts will be subject to the exchange rate.

The deal ensures that Sunbird is fully funded to advance Ibhubesi through front-end engineering and design studies, commercial negotiations and regulatory approval to a final investment decision in 2015.

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, fax +61 8 9462 6630 or info@sunbirdenergy.com.au.
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.