DGR Global and Armour Energy (AJQ) have jointly founded a new company called Conjugate Energy, which is registered in the UK. Conjugate Energy’s main purpose is to hold stakes in oil exploration projects located in the Albertine Graben region of Uganda. The company plans to pursue listing on a UK stock exchange and intends to raise capital primarily for the drilling of two exploration wells or drill-ready prospects with significant oil reserves. It’s important to note that any potential listing will be contingent on meeting regulatory requirements, and therefore, there is no certainty regarding if or when this listing will happen.
Conjugate will be exploring the Albertine Graben of Uganda, a prolific hydrocarbon basin on the East African Rift System. On May 18, 2023, DGR Global Ltd. (DGR) announced on the ASX that DGR Energy Turaco Uganda SMC Ltd., a wholly owned subsidiary of DGR, had been granted the Turaco Petroleum Exploration Licence for a 4-year period. In addition, it was announced that the Kanywataba Petroleum Exploration Licence, held by Armour Energy Uganda SMC Ltd., which in turn is owned 83% by DGR and 17% by AJQ, had been renewed for a further 2-year period. It is intended that both of these companies will be transferred to and become subsidiaries of Conjugate.
DGR and AJQ have expended considerable funds on the licences in preparation for exploration drilling. These work streams have included 110 km of new 2D seismic, reprocessing existing seismic data and reinterpretation, geological studies, social and environmental impact reviews, government and regulatory liaison, planning and preparation for two oil exploration wells in 2024, and entering contracts for delivery of these services.
Conjugate has identified a prospective oil and gas in-place resource of approximately 3.158 billion barrels of oil across nine prospects and leads over both tenements. French and Chinese petroleum companies TotalEnergies and CNOOC hold tenure over the Albertine Graben, which has a defined resource of 6.5 billion barrels of oil in place, with 1.4 billion barrels recoverable, despite modern seismic surveys, interpretation, and drilling having explored only 40% of the area.
A planned refinery and the East African Crude Oil Pipeline (EACOP), due for completion and commissioning in 2025, with an overall capacity of up to 240,000 barrels of oil a day for export, will provide Conjugate with an identifiable pathway to market for developed reserves post-discovery. Wells in the Albertine Graben have flowed at up to 15,000 bbl per day from stacked Miocene and Pliocene sand reservoirs.
DGR and AJQ believe that the planned well-drilling programmes, if successful, would substantially reduce the project’s risks and additionally boost the value of equity for Conjugate shareholders.
