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BBM

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Share Name Share Symbol Market Type
TSXV:BBM TSX Venture Common Stock
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Brandenburg Energy Updates on Due Diligence in Niger

22/11/2012 2:48pm

Marketwired Canada


Brandenburg Energy Corp. (TSX VENTURE:BBM) ("Brandenburg" or the "Company"),
further to signing the Memorandum of Understanding (MOU) as announced on October
15, 2012, which contemplates the Company acquiring a 60% interest in the
Production Sharing Contracts (PSC's), or PSC Holder, for the four blocks known
as Dibella 1, Dibella 2, Mandaram and Dallol, is pleased to provide the
following as a summary of its due diligence efforts to date, while also
conveying Management's view of this exploration opportunity for the Company in
Niger.


"We are pleased with our progress to date and the exploration potential that we
have confirmed in Niger. We are content to explore in the flanks of a rift basin
that is known to have over a hundred leads and tests and where reserves are now
reported to be over 650 million barrels. We view this play as presenting
shareholders with exposure to a low risk and low cost drilling exploration
opportunity that lies between proven reserves and infrastructure both
immediately to the west as well southeast in neighbouring Chad. After completing
our due diligence we look forward to determining a mutually acceptable scope of
work for the next couple of years," stated Robert Findlay, President of
Brandenburg.


EXPLORATION POTENTIAL OF DIBELLA 1 & 2, AND MANDARAM BLOCKS (EAST NIGER GRABENS):

Regional interpretations suggest reservoirs are indicated in the Eocene,
Maastrichtian and the Lower Cretaceous. The depositional environment is
continental so reservoirs will be fluvial and while usually of limited extent
are good to excellent quality, occur frequently, and can be seen on conventional
2D seismic. The Maastrichtian sandstones are also fluvial and have excellent
reservoir quality (porosity 25-35%).


Eocene fluvial sandstones are interbedded with thick shales providing seal.
Oligocene shales provide seal although sandstones might be sealed locally by
shale intercalations. Shales providing seal can also provide source. Source and
maturity are also available by communication with the deeper and thicker
sediments within the Dinga trough (just west) where fields are now being brought
into production. The presence of marine or lacustrine shale sequences upgrade
the source potential of the grabens. Source rocks are identified in the marine
Upper Cretaceous shales and the lacustrine Oligocene shales.


Stratigraphic traps can be expected locally while regionally a system of north
south faulting provides numerous types of structural traps as seen in
neighbouring Chad's discovered and producing fields.


From 2009 to 2012, approximately 75 kms east northeast of the now producing
Agadem fields (within the Dinga trough) where the China National Petroleum
Company (CNPC) has, since 2008, invested over US $3.0 billion in upstream and
downstream, two exploration wells Dibella N-1 and Dibella N-2, and the Dibella
N-5 appraisal well were drilled by CNPC and reported to have encountered from 23
to 43.5 metres of net pay from the Sokor Alternances Formation (total depths
from 1775 to 1850 metres). These wells are located on the eastern extents of the
Agadem block approximately 25kms west southwest of the Dibella 1 block's western
boundary. One regional line of 2D seismic running NE-SW extends from this area
of the Agadem Block across Dibella 1 & 2 blocks.


Although Dibella 2 block is very similar to Dibella 1 block in its setting it
overlies the Dibella sub-basin which will give a thicker and deeper section
providing more reservoir seal, maturity, source and seal. The Paleocene is
either eroded or not deposited to the east. If eroded an unconformity trapping
opportunity will be present.


The Mandaram block shares a similar geological depositional environment as the
Dibella blocks except that it lies to the east of the Western African Rift
System. All factors evidenced in the east at the Dibella blocks can be seen in
the west. Although the Mandaram block is on the western part of the Manga
sub-basin it is expected to share the same benefits as Dibella 2 regarding oil
generation and pooling. Limited regional 2D seismic lines are in proximity to
the block.


EXPLORATION POTENTIAL OF DALLOL BLOCK (IULLEMEDEN BASIN):

The Dallol block lies within the northern extent of Iullemmeden Basin
(Mali-Niger-Benin-Nigeria), or the Sokoto Basin as it is known in Nigeria where
it is a major producing area. The basin is of tectono-epeirogenic origin and was
invaded several times by epicontinental transgressions during the Cretaceous and
Paleocene. Although available data is limited, features that support the
Company's interest in the Dallol block are as follows:




--  Paleozoic to Tertiary section present 
--  Thickness of sediments vary from 1500 to 2000 m (and much thicker in the
    grabens) 
--  North to south faulting system similar to eastern Niger where formation
    of traps are demonstrated 
--  Presence of deep narrow grabens in the south-western parts of the block 
--  Comparable system to that now in production from the Agadem Block 
--  Source and maturity are expected to be good in the Cretaceous grabens



To view a map illustrating the above please visit the Company's website at
www.brandenburgcorp.com or select the following link:
http://www.brandenburgcorp.com/i/pdf/2012-11_NigerRVB.pdf


OVERVIEW OF THE PETROLEUM INDUSTRY IN NIGER:

IOCs (International Oil Companies) explored for oil in Niger since the 1950's
and drilled the first exploration wells from 1962 to 1964 (Petropar, in the
Djado and Tamesna-Talak areas). Results revealed oil deposits in some of the
wells, which encouraged further activity. In 1969 Texaco is reported to have
made the first discovery at Agadem which initiated more extensive exploration
during the 1970s and 1980s by firms such as Global Energy, Sun Oil, Conoco,
Texaco, Esso and Elf throughout the Kafra-Seguedine grabens, the Dosso area, the
Agadem Block, the Iullemeden Basin and the Bilma area. Focus finally centred on
the Djado and Agadem Basin. In 1992 Hunt Petroleum was awarded the Djado permit
on the northern tip of the Termit-Tenere Rift Basin. By 1997, with Esso/Exxon
holding rights to the Agadem block, the Tenere permit was awarded to TG World
Energy Inc. Since, Algeria's Sonatrach, Malaysian Petronas, Canadian TVI
Pacific, China's CNPC and Russian Gazprom have all been active explorers in the
oil and gas industry of Niger.


In January 2005 Petronas Carigali Niger Exploration & Production Ltd. (PCNEPL),
a subsidiary of Petronas, announced that it had encountered hydrocarbons in the
Agadem Block 1 Permit. Also the Jaouro-1 exploration well was drilled in the
Termit Basin to a total depth of 2,462 metres with production tests resulting in
a maximum flow rate of 2,540 barrels of oil per day. Reported reserves from +300
to 350 MMbbls were not yet developed to a point thought to be required for
commercialization.


In 2007, with better economics, the Republic of Niger initiated a bidding
process for the 27,660 km2 Agadem Block. Out of seven bidders the China National
Petroleum Corporation (CNPC) was ultimately successful and signed an agreement
in 2008 awarding them a licence to explore and produce from the Agadem Block
with a phased investment of up to US $5.0 billion comprising geological
research, construction of a refinery capable of 20,000 barrels per day (bpd),
and 2,000 kilometres of pipeline. By November 2011, after US $3.0 billion
already expended by CNPC, Niger had entered an 'oil era' when the CNPC-funded
Soraz Oil Refinery in Zinder fed by production of light crude from the Agadem
Block's oilfields through a 462.5 km pipeline became operational.


Readers are cautioned the MOU (Memorandum of Understanding) referred to herein
is subject to the negotiation and execution of a definitive agreement,
governmental and third party approvals, and available financing.


James Dick, P.Geol., P.Eng., (Calgary) is an Qualified Person in accordance with
National Instrument 51-101 and has reviewed and approves the technical
disclosure in this news release.


Additionally, concurrent to these efforts in Niger, the Company remains active
assessing other African opportunities and is now preparing an application for a
PSC covering a prospective onshore block in the coastal West Africa region.
Management also continues its efforts recruiting a couple of key individuals
with expertise in the sector and region.


On behalf of the Board of Directors,

BRANDENBURG ENERGY CORP.

Karl Antonius, CEO

We seek safe harbor.

This news release contains forward-looking statements, which may relate to
future events or future performance and reflect management's current
expectations and assumptions. Such forward-looking statements reflect
management's current beliefs and are based on assumptions made by and
information currently available to the Company. Readers are cautioned that these
forward looking statements are neither promises nor guarantees, and are subject
to risks and uncertainties that may cause future results to differ materially
from those expected. There are no assurances that the Company will be successful
in entering into formal agreements on commercially acceptable terms or at all.
All of the forward-looking statements made in this news release are qualified by
these cautionary statements. These forward-looking statements are made as of the
date hereof and the Company does not assume any obligation to update or revise
them to reflect new events or circumstances save as required under applicable
securities legislation.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Brandenburg Energy Corp.
Karl Antonius
+604.669.9330 or +604.218.9434


Brandenburg Energy Corp.
Robert Findlay
+604.809.2102

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