Accra, March 2, GNA - Ghana on Tuesday announced the discovery of a significant accumulation of oil and gas on the Cape Three Points Deep Water Block located offshore the West African nation.

The Ghana National Petroleum Corporation (GNPC) and its partners, LUKOIL Overseas Ghana Ltd (LUKOIL) (56.6%), and Vanco Ghana Ltd (Vanco) (28.34%), announced that the discovery was in the Dzata-1 exploration well. A statement from GNPC said the well was drilled in water depths of 1,878 meters (6,161 feet), and is therefore the well with the deepest water depth ever drilled in Ghana.

It said the well was drilled to a total depth of 4,433 meters and is located about 75 km (45 miles) south of Cape Three Points. The Dzata-1 well is some 100 km southeast of the Jubilee Field, which is in the Tano/Cape Three Points basin in Ghana.

"Based on drilling results, wire line logs and samples of reservoir fluids, it has been determined that the well encountered a gross oil and gas column of 94 meters and a net stacked oil and gas pay of 25 meters. "The primary reservoir sandstone between 3,663 and 3,690 meters contains a 21-meter gas condensate zone. Light oil was recovered from a 4-meter zone between 3,701 and 3,709 meters. The well has since been plugged and temporarily abandoned pending further evaluation." Nana Boakye Asafu-Adjaye, Managing Director of GNPC, said the Dzata-1 discovery had confirmed the existence of an extensive deepwater petroleum province offshore Ghana.

"It has proven a new Geological play concept different from the Jubilee discovery as this find is in older aged rocks. This indicates the breadth of the hydrocarbon potential within the basin."

He added: "GNPC is happy to continue its partnership with the Oil industry to establish fully the hydrocarbon potential of Ghana and to ensure the efficient development of these resources for the benefit of the people of Ghana, as well as our partners".

On April 1, 2009, the Government of Ghana, the Ghana National Petroleum Corporation, Vanco Ghana Limited and LUKOIL Overseas Ghana Limited signed a new Petroleum Agreement covering the Cape Three Points Deep Water Block and the new Agreement was ratified by Parliament on June 30, 2009. GNPC holds an initial carried interest of 15% with an option to acquire an additional interest of 5% on commercial discovery. The new agreement replaced an earlier agreement with Vanco in which GNPC held a 10% carried interest.

The Vanco-LUKOIL partnership, is currently acquiring a new 1,664 sq km of 3D seismic data in pursuit of other leads and prospects in the north and western parts of their block. 2 March 10