Africa’s first independent oil explorer hits 1.2 billion barrel prospect in Ghana deep water

OIL exploration company, Springfield Group, will this week announce its first discovery – a 1.2 billion barrel prospect located in deep water off the coast of Ghana, said the Financial Times in an article republished by BusinessLive.

The unique aspect of the discovery is that Springfield Group will be the first independent African energy group to make such a find. Moreover the block that is expected to yield the oil will be Ghana’s largest, eclipsing the country’s Jubilee field operated by the UK’s Tullow Oil, the newspaper said.

Ghana has forecast production of 250,000 barrels of oil a day by next year. If achieved, this would make the country the fourth-largest oil producer in Sub-Saharan Africa even without a contribution from Springfield Group which could cement Ghana’s position in the continent’s oil sector yet further.

“We are the first African company to drill in deep water and to find oil,” said Kevin Okyere, Springfield’s CEO and a former telecom entrepreneur. “Nigeria has had oil for a long time and no indigenous company there has ever done this.”

Springfield had drilled two wells in the past 40 days and hit oil in both. Of the 1.2 billion in proven reserves, 30% to 35% would be recoverable, said the Financial Times. There were also commercially viable quantities of gas, it said citing the company.

“These numbers are still early days,” said Lennert Koch, principal Sub-Saharan analyst at Wood Mackenzie, an energy consultancy. “But if it is in that range, it is what we would call a significant discovery.”

Koch said Springfield would need partners to help with both finance and technical development of the field. He doubted whether Ghana had the capacity to use more gas.

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