Fleurette's Oil of DRCongo - Seismic Update

KINSHASA, Democratic Republic of Congo, August 7, 2014 /PRNewswire/ --

• Oil of DRCongo completes analysis of first and second phase seismic campaign
• Total investment in project of $75 million
• Seismic results indicate c. 3 billion barrels of oil in place

Oil of DRCongo, the Fleurette Group's oil exploration subsidiary, today announces an update of the interpretation of the recently processed 3D seismic surveys acquired in 2013-14 over its prospects in Blocks I and II in Lake Albert in the Democratic Republic of Congo.

The seismic campaign (1st and 2nd phases) has covered approximately 700km offshore and 150km onshore. Oil of DRCongo has invested in excess of $75 million in the exploration works of the Blocks I & II so far including above $20 million on the seismic investigations. The seismic data acquisition itself was carried out by TESLA (UK). Oil of DRCongo employed 250 people based in Kasenyi, out of which 204 were Democratic Republic of the Congo (DRC) locals, for the seismic works.

Oil of DRCongo has now completed the interpretation of the seismic data. The analysis was undertaken by the UK's GeoTrace and Italy's Ecopetrol in conjunction with Sproule International. The analysis indicates around 3 billion barrels of oil in place (STOOIP). As anticipated from early stage seismic results, the oil in place on the DRC side of Lake Albert mirrors that of the Ugandan side. Therefore, the results show a potential significant resource which has the ability to fundamentally rescale the GDP of the DRC if it can be safely and economically extracted and exported. As Oil of DRCongo has previously indicated, a production from Lake Albert of c. 50,000boe/day will increase the present GDP of the DRC by 25%.

Oil of DRCongo's next priority is the establishment of two exploratory wells plus a 3D seismic campaign acquisition focused on the most complex structures identified. Oil of DRCongo is presently carrying out a Feasibility Study aimed at evaluating the entire drilling exercise with particular reference to the two wells to be made on the identified prospects.

The preparation phase of the drilling includes relocation of some local communities, transport to the site of the drilling equipment, installation of a base camp for staff, new supply roads, a new dock on Lake Albert and a landing strip for moving personnel and equipment. The Tender Documents for the drilling works expect to be launched by the end of October 2014.

Oil of DRCongo has also made further progress on a number of important social commitments. Oil of DRCongo is proud that it, in its capacity as operator of Bocks I and II on the Albertine Graben, it has far exceeded the licencee's obligations to the DRC with regards to providing local community support.

Work has been completed on the refurbishment of the most critical sections of the Bunia-Kasenyi Road (14km over a total of 40km) into which Oil of DRCongo invested USD $700,000 jointly with the Government of the Oriental Province. The road is a vital artery linking the towns of Bunia and Kasenyi. Oil of DRCongo has invested over $4 million in other local projects including assistance to the medical/maternity centre in Kasenyi, staffed by two full time doctors and eight nurses. Oil of DRCongo was also proud to host the inauguration of the school in Jiba (North-West Tchomia-Block I area) for 400 students, which was also attended by the Governor of the Oriental Province H. E. Jean Bamanisa. A new school for up to 400 students will be built in the coastal village of Roo-Voo that will host the rig for the first of the two scheduled wells. The construction of 25 houses to relocate part of the local Community has been scheduled and is presently under a Tender Process.

Giuseppe Ciccarelli, CEO of Oil of DRCongo commented:  

"These are very positive results from our extensive seismic campaign. We continue to believe the project has the potential to provide significant revenues and multiple other benefits to the people of the DRC, generating jobs, fuelling development and prosperity and contributing to social progress. We remain committed to making the investment necessary to progress the project, which has the potential to transform the DRC." 

About Fleurette Group 

The Fleurette Group of Companies ("Fleurette") is a Dutch entrepreneurial business with significant investment in diverse sectors, including natural resources, infrastructure, agriculture and technology. Fleurette has substantial investments and operations in the Democratic Republic of Congo (DRC).  The parent company of the group, Fleurette Properties Limited, a Dutch resident company, is owned by Line Trust Corporation Limited strictly and solely as trustees of the Ashdale Settlement, a trust established in 2006 for the benefit of the family of Dan Gertler. Mr Gertler is a citizen and resident of Israel and the DRC (and honorary counsel to the DRC) and is committed to developing the country's natural resources and infrastructure, while investing in the Congolese people and their communities.

Fleurette has a proven track record of successful co-operation with diverse parties, including the DRC State-owned mining company Gécamines, and to date has brought more than USD $7 billion of investment into the DRC, on top of its USD $2 billion in private investment. As a result, Fleurette's subsidiaries and partnerships support around 30,000 jobs in the DRC and are amongst the DRC's leading taxpayers, contributing significant revenues to the State.

Fleurette is also a major contributor to social development in the DRC through the Gertler Family Foundation (GFF) and through direct investment in social infrastructure. The GFF is the largest charitable organization in the DRC, funding more than 50 programs and projects across the DRC, which help tens of thousands of Congolese every year.  These include rebuilding key hospitals, notably the Kisangini "Hospital du Cinquantenaire"; supporting the Operation Smile campaign in Lubumbashi and Kinshasa; rebuilding Blaise Pascal School in Lubumbashi; and supporting the Lubumbashi Zoo.

Food security is a critical issue for the DRC and in Kinshasa, Fleurette and the GFF are developing 1,482 acres of land into the Kitoko Food Farm in partnership with local and international organizations. The farm is expected to employ 400 people and is expected to produce more than 4,500 tons of carrots, tomatoes, onions, potatoes and other vegetables in 2014.

About Oil of DRCongo 

On 5th May 2010, Fleurette, through Caprikat and Foxwhelp Ltd, two entities created for the Project, entered into a PSC with the DRC Government relating to the oil exploration and production of the Blocks I&II on the Albertine Graben. Presidential Approval was granted on June, 18th, 2010. The Blocks cover an area of over 7000 km2, including onshore and offshore acreage. Caprikat and Foxwhelp Ltd, through Caprikat and Foxwhelp SARL (DRC), hold a 85% interest in the Blocks, while the remaining 15% is held by the DRC Government. Oil of DRCongo was established by

Caprikat and Foxwhelp Ltd in the last Quarter of 2010 as Operator. It is responsible, on behalf of the interest holders, for the management and performance of all the activities envisaged by the PSC for the Blocks' development.

A video of the work being done by Oil of DRCongo can be found here: http://www.youtube.com/channel/UCtp5vMqUpnZWxLlCyDj8l5Q

Press enquiries
Maitland
Peter Ogden, pogden@maitland.co.uk, +44(0)207-379-5151
Andy Donald, adonald@maitland.co.uk