Cap Energy Ltd
LSE : CAPP

July 09, 2013 02:00 ET

Competent Person's Report on Cap Energy Limited's Guinea-Bissau Assets

                                                                                                         GB00B7KFPB91
                                                                                                         09 July 2013


                                                 CAP ENERGY LIMITED
                                              ("Cap" or the "Company")

                       Competent Person's Report on Cap Energy Limited's Guinea-Bissau Assets

Cap  Energy  Limited,  a  company  listed  on the ISDX Growth Market focused  on  the  exploration,  production,  and
development of oil and gas primarily in sub-Saharan Africa, has received a Competent Person's Report ("CPR") on Block
1  and  Block  5B in Guinea-Bissau prepared by Gas Mediterraneo & Petrolio ("GM&P"). The Company has an  interest  of
approximately  30%  in each of the Blocks, both of which are operated by Atlantic Petroleum Guinea-Bissau  Limited  a
subsidiary of Trace Atlantic Oil Ltd ("TAOL").

This  CPR  provides a quantification of the estimated prospective resources in Block 1 and Block 5B and assesses  the
associated  degree  of  geological  risk,  based on the currently available  historical  geological  and  geophysical
information including regional well data and 2D seismic data recorded in the two blocks in the past.

In  Block 1, five leads have been delineated and relevant time maps of Albian/Aptian and Maastrichtian age were depth
converted. Surface extensions of the leads range from 13 to 35 sq km for Albian and Aptian reservoirs and between  13
and  20  sq  km  for  Maastrichtian. The mean STOIIP volumes of the three leads on two levels  (Albian/Aptian)  range
between  213  and  459  MMBO; the mean reserves range between 53 and 115 MMBO. The mean  STOIIP  volume  of  the  two
Maastrichtian leads ranges between 50 and 58 MMBO. The mean reserves range between 12 and 14 MMBO. Chances of Success
estimated either for the Albian/Aptian and Maastrichtian leads range in the order of 13 and17%.

The potential of block 5B has been identified into:

    -       two turbidite channels interpreted of Albian age;
    -       a structure of Intra Albian age;
    -       a carbonate platform of Jurassic age, with two large structural closures showing a "non-reefal" seismic
            facies and two leads with reef facies.
        
The  mean  STOIIP  volume  of the two Albian channel leads range between 195 and 286 MMBO. The  mean  Reserves  range
between 49 and 72 MMBO with Chance of Success of the order of 7%. The mean STOIIP volumes of the Albian Rollover lead
is  of the order of 147 MMBO. The mean reserves estimated are 37 MMBO with Chance of Success of the order of 12%. The
mean  STOIIP volumes of the 2 Jurassic reefal leads range between 35 and 132 MMBO. The mean Reserves range between  9
and 33 MMBO with Chance of Success in the order of 16%.

The  mean  STOIIP  volumes of the two Jurassic non-reefal leads range between 1406 and 1422 MMBO. The  mean  reserves
range between 205 and 216 MMBO with Chance of Success in the order of 7 to 10%. The deeper part of the block at  this
stage of knowledge may have an additional interest in the pre-turbiditic plays.

The  CPR  does not include the new 2D seismic data that was shot on the two blocks in the first half of  2013,  which
currently  is  being  processed,  and  neither  does it take account of the  further  interpretation  activity  being
undertaken on the Blocks by TAOL.

It  is  anticipated that the additional seismic interpretation activity should be near completion  by  year  end  and
thereafter  Cap  shall  obtain  an  updated CPR incorporating all the geological, geophysical,  and  seismic  results
completed at that time.

The Directors are confident that this new CPR will build on the encouraging results as tabled below.




Block 1-Corvina:  Leads Resources/Reserves
Lead       Formation   Water   Target           STOOIP                 Reserves           Solution Gas - Reserves
                       depth   depth                       Oil(MMbbl)                       Solution Gas (Bcf)
                                                                                   

   Block 1                m      m      P90    P50  Pmean    P10   P90   P50  Pmean     P10   P90   P50  Pmean     P10
 Alpha     Albian        -14   -2540  147.4  326.3  381.4  718.4  35.4  80.8   95.4   181.7  10.5  24.3   29.3    54.6
           Aptian        -14   -2900   15.8   52.5   77.6  182.0   3.8  13.1   19.4    45.5   1.2   4.0    6.0    13.8
           Total                      163.1  378.8  459.0  900.4  39.2  93.9  114.8   227.3  11.7  28.3   35.2    68.4

  Beta     Albian        -14   -2540   27.3   88.0  115.7  254.0   6.6  21.6   28.9    64.2   2.0   6.6    8.9    20.1
           Aptian        -14   -2940   33.7   89.9  112.5  227.2   8.2  22.1   28.1    57.2   2.6   7.0    8.6    18.1
           Total                       61.0  177.9  228.2  481.2  14.8  43.7   57.0   121.4   4.6  13.6   17.5    38.2

 Gamma     Albian        -14   -2520   55.2  161.9  200.0  415.7  13.4  39.8   50.0   105.0   4.3  11.8   15.4    33.2
           Aptian        -14   -2920    2.5    9.2   12.9   29.5   0.6   2.3    3.2     7.4   0.2   0.7    1.0     2.3
           Total                       57.7  171.1  212.9  445.2  14.0  42.1   53.2   112.4   4.5  12.5   16.4    35.5

Delta      Maastrichtian -14   -980    17.6   46.4   58.0  118.2   4.3  11.4   14.5    30.0   1.2   3.3    4.0     8.5
Epsylon    Maastrichtian -14   -1000   18.5   41.8   49.6   94.6   4.4  10.3   12.4    24.0   1.3   2.8    3.5     6.7
                                                                                                                                               
Totals                                317.9  816.0 1007.6 2039.6  76.6 201.2 252.0    515.0  23.1  60.4   76.6   157.3


Block 1: Chance of Success - COS
                                                            
                                                                               
Lead     Formation                                             COS
        Block 1              Source     Migration   Reservoir   Closure   Containment    Total COS
                                                                               
                                                                                       
  Alpha     Albian            0.9          0.8         0.8        0.5         0.6           0.17
            Aptian            0.9          0.8         0.6        0.5         0.6           0.13
            Total                                                                      
  Beta      Albian            0.9          0.8         0.8        0.5         0.6           0.17
            Aptian            0.9          0.8         0.6        0.5         0.6           0.13
            Total                                                                      
  Gamma     Albian            0.9          0.8         0.8        0.5         0.6           0.17
            Aptian            0.9          0.8         0.6        0.5         0.6           0.13
            Total                                               
Delta       Maastrichtian     0.9          0.8         0.7        0.5         0.6           0.15
            
Epsylon     Maastrichtian     0.9          0.8         0.7        0.5         0.6           0.15
            
                 
                 
Block 5B-Becuda: Leads Resources/Reserves

Lead       Formation   Water   Target           STOOIP                 Reserves           Solution Gas - Reserves
                       depth   depth                       Oil(MMbbl)                       Solution Gas (Bcf)

     Block 5B             m      m      P90    P50  Pmean    P10   P90   P50  Pmean     P10   P90   P50  Pmean    P10
Channel North
(Albian)               -170   -1850    65.8  217.4  286.3  634.9  15.9  53.3   71.6   160.0   4.9  16.5   22.0   48.9

Channel South
(Albian)               -220   -1830    45.8  146.5  195.0  429.6  11.1  36.1   48.8   108.5   3.3  11.3   15.0   34.2

Albian Lead Rollover   -170   -1640    40.4  112.8  147.5  308.9   9.7  27.8   36.9    78.5   3.0   8.4   11.3   25.0

Jurassic Reef South   -1080   -2150    31.4  101.0  131.8  288.1   7.6  24.9   33.0    72.5   3.0   9.7   12.7   28.6

Jurassic Reef North   -1010   -2250     7.3   25.1   35.0   80.0   1.8   6.2    8.8    20.1   0.7   2.4    3.4    8.0

Jurassic Structure    -1010   -1990   349.7  737.0  817.7 1421.5   84.0 182.2 204.6   362.8  31.2  67.8   78.4  141.4
South 
                                                                                                 
Jurassic Structure    -1010   -2070   414.1  807.5  862.8 1406.0   99.0 199.2 215.9   360.1  37.9  73.8   82.6  136.3
Centre                                                                                                 
                                                                                                                                                    
Totals                                954.5 2147.4 2476.1 4568.9  229.0 529.6 619.5  1162.5  84.0 189.9  225.3  422.3
                                                                                                                                    

Block 5B: Chance of Success - COS

Lead/Formation                                                                            
     BLOCK 5B                                             COS
                          Source           Migration    Reservoir   Closure   Containment    Total COS
                                                                               
Channel North               0.7               0.7          0.6       0.5        0.5          0.07
(Albian)
Channel South               0.7               0.7          0.6       0.5        0.5          0.07
(Albian)
Albian Lead                 0.7               0.7          0.6       0.6        0.7          0.12
Rollover
Jurassic                    0.7               0.7          0.8       0.6        0.7          0.16
Reef_South
Jurassic                    0.7               0.7          0.8       0.6        0.7          0.16
Reef_North
Jurassic                    0.7               0.7          0.4       0.5        0.7          0.07
StructureSouth
Jurassic Structure          0.7               0.7          0.5       0.6        0.7          0.10
Centre



Pierantonio  Tassini,  the  Company's Chief Operating Officer, who has 42 years of  relevant  experience  within  the
sector, has reviewed and approved the technical information contained in this announcement.

The Directors of Cap Energy Limited are responsible for the contents of this announcement.

The complete CPR Statement is available on the Cap Energy website at www.capenergy.co.uk.

For further information please contact:

Tim Hearley, Chairman
Tel: +44 (0) 7850 390998
Email: tim.hearley@capenergyplc.com

Lina Haidar, Chief Executive Officer
Tel: +44 (0) 20 7491 9196
Email: lina.haidar@capenergyplc.com

Corporate Adviser:
Duncan Vasey and Mark Anwyl
Peterhouse Corporate Finance Limited
Tel: +44 (0) 20 7469 0930
Email: duncan@pcorpfin.com

CAP Energy Limited
25 Dover Street
London W1S 4LX
Tel: +44 (0) 20 7491 9196
Email: info@capenergyplc.com

Contact Information

  • Cap Energy Ltd