May 23, 2018 Last Updated 11:11 AM, May 23, 2018

Kefi announces updated gold estimations

An updated probable ore reserve at the Ethiopia-based Tulu Kapi project has been announced by Kefi Minerals (LSE: KEFI).

The JORC-compliant ore reserve estimation stands at 12.9 million tons containing 2.41 grams of gold per ton, for one million ounces of gold.

Following modelling of the mineralisation and metallurgical test work, it was decided that conventional carbon-in-leach extraction could be used to produce the gold.

Kefi CEO Harry Anagnostaras-Adams said: “The independent verification of the one-million-ounce Tulu Kapi reserve complements our recently published production, cost and valuation estimates and completes the independent substantiation of Kefi’s overhaul of the Tulu Kapi gold project.

“With the achievement of this latest milestone, we are on track for starting project development in the first half of 2015.”

Kefi will apply for the mining licence this month.


Egypt repays debt to foreign oil & gas companies

Foreign oil and gas companies received a US$1.5 billion payment from Egypt as a repayment of part of its debt.

The payment followed the announcement that the government had signed $1.4 billion worth of loans with a National Bank of Egypt led consortium of banks.

The debt owed now stands at $4.9 billion. The last repayment by Egypt was in December 2013 and worth $1.5 billion.

Minister of Petroleum Sheri Ismail said: “The government aims to reduce the debt to encourage the firms to step up research and exploration operations, to boost local production of oil and gas and minimise imports, which in turn will spare the cash to continue paying Egypt's due debts to its foreign partners.”

The minister announced earlier this week that $2-3 billion of its debt would be paid to foreign oil and gas companies before the end of the calendar year.


Cairn discovers oil in FAN-1 exploration well

 Scotland-headquartered Cairn Energy PLC (LSE: CNE) and its joint venture partners have discovered oil in its Senegal-based FAN-1 exploration well.

The preliminary analysis of the well indicated a net oil bearing reservoir of 29 metres.

The well, located 1,427 metres deep in the Sangomar Deep block, reached the target depth of 4,927 metres.

Estimates for the well are in line with the pre-drill STOIIP predictions and include a proven resource of 250 million barrels (mmbbls), probable 950 mmbbls and possible 2,500 mmbbls.

Cairn CEO Simon Thomson said: "The oil discovered in the FAN-1 prospect is an important event for Senegal and the Joint Venture.

“We have encountered a very substantial oil bearing interval which may have significant potential as a standalone discovery.

“Furthermore, this result materially upgrades the prospectivity of the block with a proven petroleum system and a number of deep fan and shelf prospects established.”

Follow-up activity is targeted for 2015 onwards.

Following completion of the FAN-1 well, the rig will go on to complete the second well SNE-1, which is targeting a dual objective in 1,100 metre water depth.


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