Nakfa Energy

Geology

Tectonic map of the Red Sea region, highlighting the Afar Triple Junction and key geological features such as the Arabian Plate, Nubian Shield, and Somali Block, showcasing rift systems that underscore the region’s significant hydrocarbon potential and strategic importance for exploration (after Bosworth, 2015). Red arrows are GPS velocities in a Eurasia-fixed reference frame from ArRajehi et al., 2010.

Nafka Energy – Pursuing a New Paradigm in African Oil and Gas Exploration in Eritrea

Offshore Eritrea is an underexplored, highly accessible, frontier geologic setting that likely hosts billions of barrels of yet untapped hydrocarbons. It remains one of the last truly frontier oil and gas basins in the world, with only 12 deep and 11 shallow water exploration wells drilled offshore along its 1,215 km continental shoreline. Excluding the axial trough, the Eritrean offshore covers an era of approximately 75,000 km2. This is an average of one exploratory well per 3,260 km2. None of these wells penetrated the most promising reservoir objectives which lie beneath the Miocene massive salt section. Offshore Eritrea could become one of the most significant hydrocarbon plays in East Africa.

Through comprehensive geological and geophysical analysis, Eritrea’s offshore basins demonstrate strong correlations with proven petroleum systems along the Red Sea margins of Sudan, Saudi Arabia, and Egypt, making them a high-value investment opportunity. The tectonic evolution, structural traps, and hydrocarbon generation processes align with commercially successful Red Sea discoveries, reinforcing the case for investment in Nakfa Energy’s exploration prospects.

Schematic cross-section showing play types of the Eritrean Red Sea margin (after Savoyat et al., 1989). Based on well control and extensive 2D reflection seismic profiles. The greatest exploration potential lies in untested, subsalt structural and stratigraphic traps.

Present day structural map of the Eritrean Red Sea (after Savoyat et al, 1989). The most prospective areas for hydrocarbon exploration lie within the Salt Basins that parallel the coastline and are far removed from the Red Sea Axial Trough.

Why Eritrea’s Offshore Basin Represents High-Value Opportunity

Structural and Stratigraphic Parallels

Eritrea’s offshore basins display the structural and stratigraphic characteristics of the proven basins of the Gulf of Suez, Midyan Basin, and Sudanese Red Sea margin, enhancing exploration predictability and success rates.

Underexplored with High-Quality Source Rocks

The presence of Miocene marine shales and Jurassic source rocks with high TOC levels indicates strong hydrocarbon generation potential. Subsidence models indicate these source rocks are mature to highly mature in the Eritrean offshore basins.

Proven Reservoir Models

Carbonates and a variety of sandstone facies including deepwater turbidites in Eritrea’s offshore zone align with known reservoir systems, supporting strong flow capacity and commercial recovery potential.
Strategic Location and Infrastructure
Eritrea’s proximity to global shipping routes and established Red Sea infrastructure positions it as a commercially viable hub for regional hydrocarbon production.

Tectonostratigraphic chart of the Eritrean Red Sea (after Savoyat et al., 1989). Massive halite beds of the Late Miocene Amber Formation provide excellent top seal for reservoir rocks in the underlying Habab and older formations. Salt walls and diapirs in the Amber Formation also provide conduits for heat to escape and thereby moderated long-term heat flow.

Regional Geology

Geological Context

The Eritrean offshore area is part of the Red Sea Rift System, formed by the divergence of the African and Arabian plates starting in the Oligocene and continuing to the Present-day. This tectonic activity has led to the preservation and development of sedimentary basins with sequences from the Mesozoic and Cenozoic eras, including evaporites, carbonates, and siliciclastic deposits. These formations constitute potential hydrocarbon systems.

Tectonic Evolution

The Red Sea’s formation was linked to the separation of Arabia from Africa, and later to the formation of the Afar triple junction. Rifting in the southern Red Sea, including offshore Eritrea, began in the Late Oligocene epoch (approximately 27.5 to 23.0 million years ago). This rifting was initially accompanied by volcanic activity, including basaltic dikes and layered gabbro intrusions. From its onset, the Eritrean Red Sea was connected to the World Ocean, which resulted in the deposition of marine strata including organic rich rocks.

Volcanic Activity
Eritrea features notable volcanic structures, such as the Assab volcanic field and the Dubbi Volcano. The Assab volcanic field comprises basaltic cinder cones and lava flows, with the most recent activity occurring in the Holocene epoch. The Dubbi Volcano, a stratovolcano with an elevation of 1,625 meters, has recorded eruptions, including a significant event in 1861 that produced extensive lava flows reaching the Red Sea. This onshore volcanism is related to the evolution of the Afar triple junction, rather than the Red Sea axial trough.

Sedimentary Basins and Hydrocarbon Potential

The offshore sedimentary basins of Eritrea contain sequences of Mesozoic and Cenozoic sediments, including marine deposits and evaporites. These basins have been the focus of hydrocarbon exploration, with several wells drilled between 1966 and 1977. Although this early exploration encountered potential hydrocarbon shows, commercial production was not established.

Key Takeaways

Additional Highlights

Proven Rift Basin Maturation

Eritrea’s offshore basins have the same stratigraphic sequence and have undergone the same hydrocarbon maturation processes seen in commercially successful oil and gas fields in the region, minimizing exploration risk.

Fault-Controlled Hydrocarbon Traps
Eritrean offshore prospects mirror the structural geometry of the Gulf of Suez, Midyan and the Sudanese margin, strengthening confidence in their hydrocarbon potential.
High-Quality Reservoir and Sedimentation Patterns
The combination of thick, high-quality reservoirs and proven hydrocarbon-bearing formations enhances Eritrea’s commercial viability.
Natural Hydrocarbon Seeps Indicating Active Petroleum Systems
Direct evidence of hydrocarbons significantly reduces exploration uncertainty and strengthens Eritrea’s attractiveness for investment.
Gulf of Suez: A Model for Eritrea’s Success

Eritrea’s offshore blocks closely resemble the structure, stratigraphy, and burial histories of the Gulf of Suez’s successful petroleum systems, justifying investor confidence in Nakfa Energy’s prospects.

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