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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Brandenburg Energy Corp. Karl Antonius +604.669.9330
or +604.218.9434 Brandenburg Energy Corp. Robert Findlay
+604.809.2102