PERTH (miningweekly.com) – A series of independent studies into South Africa-focused Sunbird Energy’s Ibhubesi gas project has confirmed that the 210-billion cubic feet 1P reserves project was viable.

The studies included a subsurface geological study, a resource review and subsurface development options study, a surface facility study, an environmental prescoping assessment and a review of the gas market.

In June, an independent reserve assessment of the Ibhubesi project confirmed the 1P reserve, which would underwrite the first phase of development for the project.

Sunbird said, on Monday, that the now-completed subsurface development options study determined the flow profiles that could be generated, based on the production test result and a review of the reservoir characteristics.

Based on the reservoirs, the study estimated that an average well could produce in excess of 50-million standard cubic feet a day, with tubing size being the limiting factor on production rates.

The study also found that the 2P reserve of 540-billion cubic feet represented the most likely recoverable volume for the project and provided significant Phase 2 extension or expansion opportunities.

A capital cost of between $1.2-billion and $1.4-billion has been attached to the Phase 1 development, with the Phase 2 development able to leverage this upstream and pipeline infrastructure to extend and expand production.

Sunbird told shareholders that, with the completion of the independent studies, the company would now advance to the next stage of the geological, engineering and environmental studies, which were required to prepare an integrated full field development plan.

The plan would define the final well designs, locations and scheduling; the engineering designs of the necessary gas processing facilities and the optimal export pipeline size and route, which would form the basis for the front-end engineering and design studies.

Based on the current schedule, a final investment decision on the Ibhubesi project was scheduled for the first half of 2015.