Angkor Resources subsidiary EnerCam Resources has received final approval to proceed with the onshore oil and gas development project in Cambodia’s Block VIII.
The project promises substantial benefits for Cambodia, allowing it to be energy independent with a domestic energy source.
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Angkor Resources CEO Delayne Weeks said: “Once we prove commercial quantity, the country opens up so many possibilities. In time, on a national level, oil production in the Kingdom has the potential to make Cambodia, with a population of under 17 million people, an exporter of oil instead of an importer of all its hydrocarbon-based energy products.”
EnerCam will immediately start the environmental impact assessment, followed by the acquisition of around 350-line kilometres of 2D seismic data in late spring.
Detailed interpretation of the data will occur during the rainy season after which the company will take decisions to either proceed with drilling the first exploratory well(s) or acquire additional 2D/3D seismic data before committing to drilling.
EnerCam said the initial exploratory well (or wells) will be drilled vertically or directionally as needed based on what is interpreted from the seismic data acquired in the regional 2D programme.
Weeks added: “We went to great lengths to retain all the best prospects and include oil seeps we had identified. The retained areas with seeps are conducive to drilling. Our geotechnical experts indicated that relinquished areas were of minimal value to the project, would cost us hundreds of thousands of dollars in land rentals and assessments, and would deter the project from accelerated progress. It made good sense to remove them before we started exploration activities.”
The term of the production sharing agreement between the Royal Government of Cambodia and EnerCam is for 30 years, with renewals depending on production.
EnerCam will be the operator-contractor of the project from exploration through to production.
Angkor Resources’ mineral subsidiary Angkor Gold in Cambodia holds three mineral exploration licences in Cambodia. EnerCam Resources was granted an onshore oil and gas licence of 7,300km² in the south-west quadrant of Cambodia, dubbed Block VIII.
