Following the exciting announcements of Venus-1 (Total) and Graff (Shell) offshore Namibia, the market is showing increased interest in the country’s onshore exploration. While onshore oil and gas investments have marked a worldwide decline in the recent years, this may well be the world’s last prospect region and Monitor has set its foot here since 2018, gaining valuable competitive advantage.
Monitor’s CEO Andrew Shrager was approached by Energy Voice to share his experience and future outlook for Namibia’s onshore oil and gas. Energy Voice published the article “Namibia’s next great hopes, beyond Venus and Graff” on April 20, 2022.
Read the full article here. Abstract from it below.
Monitor Exploration CEO Andrew Shrager described ReconAfrica’s decision to drill two wells based solely on aeromagnetic data as “very brave” – but paying off. Monitor has the next door licence to ReconAfrica, in the Owambo Basin to ReconAfrica’s Kavango.
“You have to read between the lines in ReconAfrica’s announcements but with evidence of petroleum in five layers, in carbonates below the Permian play, this is very encouraging for us. They’ve derisked the area for us, where we are in the older rocks,” Shrager said.
Success for ReconAfrica helps make the case for Monitor, and there would also be positives around development. “We’ve got good logistics, there’s a rail line that can move tank cars to a port, it’s practical at an early stage. Expansion could see a pipeline laid along the line of the rail,” Shrager said.
Monitor has focused on remote satellite sensing, the CEO explained, using passive seismic. Tullow Oil has previously used this technique to look for basement.
“We’ve gained confidence that we have a big prospect. We’ve been in the market looking for a partner,” Shrager said. While seismic costs are fairly high in the onshore, drilling costs are lower than the offshore.
Namibia has a small population and political stability, Shrager said, with very favourable terms. Despite the potential, it is tough finding partners of the right scale. Monitor, the CEO said, needed to shoot some seismic and drill a couple of wells, with a projected cost of around $30 million.
Ideally, Monitor would aim to drill early in 2023, Shrager said. This would have to come after seismic and permitting, including environmental impact assessments (EIAs). The company feels upbeat though and is in talks with the government for another licence.