JOHANNESBURG (miningweekly.com) – Emerging coalbed methane developer Sunbird Energy on Tuesday said an independent reserves assessment of its 76%-owned Ibhubesi gas project, off South Africa’s West Coast, had confirmed proven 1P reserves of 210-billion cubic feet (bcf).
This was consistent with a previous estimate of 190 bcf in 2009 and was considered to be of high certainty of recovery, underpinning Phase 1 of the project development plan.
Sunbird indicated that the 2P estimate of 540 bcf represented the most likely recoverable volume for the project, indicating significant potential for project viability beyond the Phase 1 development, which was currently the subject of a feasibility study.
The ASX-listed company noted that the targeted production-drilling programme planned for the Phase 1 development would provide further appraisal of the field and could enable the upgrading of 2P reserves to the 1P proven category. This would allow Sunbird to progressively upgrade the 1P reserve and expand production from the field.
MD Will Barker said the completion of the independent reserves assessment at Ibhubesi, which is located 380 km north-west of Cape Town and 105 km off the coast of the Northern Cape, was an important first step to deliver on its vision to supply gas to the West Coast of South Africa.
“The independent verification of the high-certainty proven gas volumes and their ability to underwrite Phase 1 of the Ibhubesi gas project, along with the large 2P reserves, provides Sunbird with the confidence to move forward with our partners into the detailed engineering planning, gas sales negotiations and approval process required to bring the project to commercialisation,” he added.
In April, the company announced the completion of the independent technical assessment of Ibhubesi, which confirmed its planned Phase 1 development could be achieved without the need for further exploration or appraisal drilling.
Ibhubesi gas field project joint-venture partner PetroSA acting VP Andrew Dippenaar said his company shared Sunbird’s vision to develop the Ibhubesi and other potential West Coast gas resources for a South African market as soon as possible.
“We will study and incorporate the findings of the independent audit report with our own understanding of the Ibhubesi gas field and the discoveries made in the field to date. We look forward to working with our joint venture partners towards a common goal of monetising the West Coast resources as soon as possible,” he stated.
Meanwhile, Sunbird and PetroSA had identified various domestic gas market opportunities for Ibhubesi, which was currently South Africa’s only undeveloped gas field with independently certified reserves.