The US oil company VANCO Energy will start its first deep sea drilling operations in Namibian waters this year. Gene van Dyke, owner and president of VANCO made this announcement during the 7^th annual Offshore West Africa (OWA) conference in Windhoek, Namibia from 11 to 13 March 2003.

Van Dyke said his company was convinced there was a potential of 3 billion barrels crude oil in Albian reservoirs in its license area 1711, which is 56 kilometres off the northwestern coastline of Namibia opposite the Kunene River mouth. “We took 3 600 kilometres of 2-dimensional and 3-dimensional data in our license block and the immediate area around it. The results for the Kunene Prospect were very good. Gas is leaking out there,” van Dyke told delegates at the conference. The carbonate reservoir appeared to stem for the Cretaceous or Albo-Aptian Age, he added. Drilling for the exploration well is to start in the second half of 2003.

The Kunene Prospect covers 95 square kilometres and lies 900 metres below sea level. It will require a well drilled to a total depth of 3 625 metres below sea level.

Within the same license area a second offshore site, the Hartmann Prospect was found by VANCO. It is presumed to be the same age as the Kunene prospect and is situated a few kilometres south of the Kunene prospect, about 5o km away from the Namibian coast. It covers 343 square kilometres and lies in 1 375 m depth of water. It will require a well of 3 500m in depth. Oil reserves are estimated at 2,2 billion barrels.

Vanco owns 88% interest in the petroleum agreement for license area 1711. The agreement was signed in June 2000. The Namibian Petroleum Corporation (Namcor) owns 9% and Pamue Investment Corporation, a black empowerment company, holds 3% equity. Namcor and Pamue are carried through development of the oil field and VANCO is reimbursed from 70% of Namcor’s and Pamue’s share of production.