PERTH, Australia--(BUSINESS WIRE)--CityView Corporation Ltd. (OTCBB:CTVWF)(ASX:CVI)(FWB:C4Z), IS PLEASED to announce that it has acquired the right to take up a 28.5% of Turnberry Resources Inc. (“Turnberry”) which equates to a net 20% interest in North Matanda PH72 oilfield.
A report by CityView’s consulting geologist Eur.Ing. Dr Michael Smith FIMMM, C. Sci. C. Eng. is attached.
The Matanda block (1187 km²) PH-72 (former OLHP-3) is situated in the northern part of the Douala/Kribi-Campo basin see maps at http://www.cityviewcorp.com/recentframe.html covering the northern half of the Wouri estuary and surrounding onshore areas. The block is partly onshore and partly shallow offshore.
Condensate was discovered in two wells drilled to a depth of 3,000 metres in the permit by Gulf Oil USA during the 1980s. Gulf, who were looking for a giant oilfield similar to that found in the Niger delta, relinquished the permit.
Gulf, as operator, based on the wells, seismic and testing, quoted the following reserves of condensate;
P 60 MMBBLS P+P 120 MMBBLS P+P+P 300 MMBBLS
According to Dr Smith, six other prospects exist in the licence area (two are offsets of discoveries outside the licence). Turnberry considers they have a potential for a further 1.8 TCF natural gas and 600 MMBBLS of condensate.
Condensate prices from this region historically trade at a premium of US$3 to the price of Brent crude oil. West African condensate prices currently exceed US$70 per barrel.
The entry cost to CityView will be US$1.3 million total in tranches plus half of the NPV of a net 20% interest calculated by a leading valuer.
CityView has agreed with the holder of another 28.5% interest (20% net) in Turnberry to treat the two companies combined 57% interest in Turnberry as concert parties with mutual pre-emptive rights in the event of sale.
Gas production will be directed via a new 13 kilometre pipe line to a 100 megawatt power station to be constructed by Quest, which will finance future expansion of operations.
Negotiations for CityView to acquire an onshore oilfield in the Kwanza Basin of Angola are on-going.
Enquiries: Mark Smyth Chief Executive Officer Contact: Telephone (61-8) 9226 4788 Facsimile: (61-8) 9226 4799 Email: email@example.com Website; www.cityviewcorp.com
Eur. Ing. Dr. Michael H. Smith, FIMMM, C. Sci, C. Eng. Economic Geologist 205 Rathmines Road Upper DUBLIN 6, Republic of Ireland Tel : 00 353 1 498 0206 Mobile : 00 353 86 821 7465
15th June 2007 To: The Directors, CityView Corporation Limited Dear Sirs, PH - 72 Matanda Permit Cameroon Summary of Data Review, 14 Jun 07
The following is a summary of my conclusions resulting from a quick – look data assessment.
The licence was originally held by Gulf and relinquished when they failed to find a giant field in the 1980’s. They were looking for a new Niger Delta but the Douala Basin is smaller. It is, however, capable of yielding economic fields of reasonable size.
Two key wells were drilled on the Matanda permit, both targeting the Logbaba sands (Cretaceous). Both wells penetrated three other reservoir sections:
N'Kapa - Lower Tertiary Souellaba - Upper Tertiary Matanda - Neogene
All are productive in the Douala Basin and wireline logs indicate hydrocarbons in the Souellaba and N’Kapa formations in the wells drilled. They were not tested.
DST’s were run on both wells. Results were as follows:
|NM – 1X||#1||2m||17.1||535|
|NM – 2X||#1||3m||1.7||72|
None of the shallow horizons were tested. Gulf, as operator, based on the wells, seismic and testing, quoted the following reserves of condensate:
P 60 MMBBLS P+P 120 MMBBLS P+P+P 300 MMBBLS
Gas reserves were not quoted other than a global figure for the 54,000 acres of potential reservoir surrounding the wells ( 4TCF ).
Turnberry, the current operator has used specialist contractors to:
Their results are as follows:
P Based on 2 x 640 acres drainage 60 BCFG 3 MMBBL Condensate P+P Based on 9000 acres reservoir 423 BCFG 21 MMBBL Condensate(a) P+P+P Total area of potential reservoir 2.1 TCFG 100 MMBBL Condensate.
(a) This was proposed as the “Proven” Reserve.
Six other prospects exist in the licence area (two are offsets of discoveries outside the licence). Turnberry considers they have a potential for a further 1.8 TCFG and 600 MMBBLS Condensate.
In the year 2000, based on the Degolyer and Gruy studies, Turnberry proposed a development based on their mid – case – 20 MMBBLS Condensate and 420 BCF Gas. The decision to go with this model was partly political; 20 BCF is the upper limit for a “Marginal Field” and this attracts lower royalties and taxes than larger fields.
Based on a condensate price of $ 15.00 / BBL (probably $ 60 – 70 today) and the gas being flared (no value) and two wells, a financial model was created. Life of field was 10 years, condensate plateaued at 4 MMBBLS / year in year 3 and gas at 70 MMCF / D in year 4. Only the Cretaceous reservoir was developed.
NPV $ 60 Million ROR 21 % Investment $ 145 million.
This was, by todays standards a ridiculously low estimate, especially as condensate reserves are likely to be 60 MMBBLS and the condensate prices today are 4 to 5 those prevailing in 2000. Also the gas was flared. A 120MW power station can be operated on 30 MMCF / Day (the output from one well). At 2000 prices, this represents $ 14,000.00 per day or $ 4.9 million per year. Two units burning all of the gas would generate twice this. Cameroon is energy deficient and predicted demand growth would absorb all of this. Addition of the gas income stream would create an uplift of 30 – 50% in NPV. A ball – park NPV utilising all the resources and recent pricing would be $ 450 – 500 million.
Infrastructure requirements are not major – a small offshore platform, a small bore pipeline ( 10” – 12” ), separator and storage facilities for condensate and a modular power station onshore. The major market, Douala, is only 13 kilometres away.
I have examined all the data and am evaluating certain key documents. Interpretation of the G and G data set will require significant work. However, I am satisfied that under today’s economic conditions, this project can be very successful.
1. My name is Eur. Ing. Dr. Michael Harold Smith, FIMMM, C. Eng and I reside at 205 Rathmines Road Upper, Dublin 6, Republic of Ireland 2. I am a qualified Economic Geologist with a record of practicing in the Resources Industry as well as recognition by the European Commission and the World Bank as an approved consultant. I currently practice as "Natural Resources Developments" from the above address and also act as Senior Associate Consultant to CSA of Dublin, Ireland. 3. I graduated from Durham University, England with a First Class Honours B.Sc. in Geology and have a Ph. D. by research from the University of Strathclyde, Scotland. I have more than 35 post - doctoral research years of professional experience. I am a member of the Irish Association of Economic Geology, a member of the Gemmological Association, a Chartered Engineer, Chartered Scientist and a Euro - Engineer and a Fellow of the Institution of Metals, Materials and Mining, 4. I have no direct or indirect interest in this project, its joint venture partners or any associated companies other than as an independent consultant. 5. The only benefit I expect for the preparation of this report is the fees for the professional work done. Mark Smyth Signed 15th June 2007 Eur. Ing. Dr. Michael H. Smith, FIMMM, C. Eng.
About CityView Corporation
City View Corporation Ltd. is an exploration and development company. It is managements’ objective to grow CityView into a significant uranium, beryllium, oil and gas project by developing its interest in Angola. The company trades on the OTCBB market under the symbol “CTVWF” and on the Australian Exchange under the symbol “CVI”. For more information please visit the company’s web site at: www.cityviewcorp.com
This news release includes comments that may be deemed forward-looking within the meaning of the safe harbor provision of the U.S. Federal Securities Laws. These include, among other things, statements about expectations of future transactions or events, revenues, and performance. Forward-looking statements are subject to risk and uncertainties that may cause the company’s results to differ materially from expectations. These risks include the company’s ability to complete transactions which remain subject to a due diligence review, obtaining any regulatory approvals, having necessary financing in time to meet contractual obligations, developing appropriate strategic alliances, raising working capital, building a functional infrastructure, and other such risks as the company may identify from time to time. Accordingly, there is no certainty that the company’s plans will be achieved.