Oil potential basin identified under Lake Kivu (03.06.09)
Will oil discovery fuel ongoing expansionist wars and inequality or bring peace and solidarity?
Vangold Resources Ltd. ("Vangold") reports that it has signed on April 30, 2009 an Addendum to the Technical Evaluation Agreement ("TEA") to assess the petroleum potential in the Rwandan side of the western branch of the African rift that was originally executed on October 19th, 2007. Vangold will, within 90 days of the amendment, complete the remainder of the Airborne Gravity and Aeromagnetic Study by flying approximately 900 km's of survey subject to regulatory approval and the permitting by the Rwandan Government and the DRC, and availability of an airborne geophysical team. Delays in any of the implementation and permitting would result in appropriate extensions for Vangold.
Upon completion of the exploration program described above and prior to seismic exploration, Dal Brynelsen, President of Vangold and Dr. Albert Butare will negotiate in good faith the terms of the Production Sharing Agreement (PSA) between Vangold and the Minister of State in Charge of Energy and Water, Dr. Albert Butare.
The remainder of the survey (900 kilometres) will be flown over the western portion of Vangold's 1,631- square-kilometre oil and gas concession, which covers the complete sedimentary basin of the Kivu Graben in Rwanda. The Kivu Graben is located south of the Albertine Graben in Uganda on Lake Albert, where Tullow Oil plc and Heritage Oil have made a major oil and gas discovery. Both grabens occupy the northern part of the western branch of the East African rift system (EARS).
18 months ago, Vangold commenced exploration in Lake Kivu, Rwanda. To date, we have identified a basin under Lake Kivu of about approximately 400 square kilometers based on the partially completed gravity and mag. survey flown in the fall of 2008 by Vangold.
The oil potential (OOIP) of Lake Kivu cannot be estimated at this stage. Woodhole oceanographic (MIT Research team) analysis of sediments in 1973 established evidence of long chain hydrocarbon, clearly indicating evidence of a petroleum system under the lake.
Lake Kivu is on a hydrocarbon fairway (western arm of the rift valley) that starts with 1.5 billion barrel oil field under and adjacent to Lake Albert approx. 300 kilometers to the north. To the south is Lake Tanganyika with oil seeps. Lake Kivu has equally encouraging SAR slicks. In addition, excellent seismic results on Lake Edward 100 kilometres to the North will result in 3 wells being drilled there this year by Dominion Resources.
While the Kivu basins may not be as large as other basins in East Africa, this in no way minimizes the oil potential of this Basin. The Albertine Basin is estimated to have generated well in excess of 100 billion barrels of oil within its confines. Tullow Oil and Heritager Oil are estimating a 3% to 10% trapping ratio for this resource and have already publicly stated they have found 1.5 billion recoverable barrels of oil and have not yet scratched the enormous potential of this area.
Dal Brynelsen, President of Vangold Resources Ltd. states : "We have been very pleased with the Geochemical and Geophysical results that Vangold has developed at Lake Kivu in Rwanda.
Many similarities occur when comparing our Lake Kivu findings with the discoveries in Uganda on Lake Albert. We would also like to point out that Lake Edward, which lies between Lake Albert and Lake Kivu, has currently had seismic completed and a drill program planned for Q2 and Q3 of 2009 by Dominion Petroleum of Australia.
Clearly the geophysical data has outlined the presence of a significant basin under Lake Kivu. With the completion of the Gravity and Magnetic Survey expected over the next 90 days we feel we will demonstrate a potential for a petroleum discovery similar to the new oil fields in Uganda".