Savannah Energy announced the publication of an updated Competent Person’s Report (CPR) covering the company’s assets in Nigeria, whereby Gross 2P Reserves increased 27%, together with a financial and operational update for the year to date.
The CPR was compiled by CGG Services (UK) Ltd (CGG), a well-known independent third-party reserves auditor.
Key Highlights
Updated Competent Persons Report for Nigeria
- Certification by CGG of 108.6 MMboe 2P Reserves (2019 CPR[1]: 85.5MMboe) with additional 99.7 MMboe 2C Contingent Resources (2019 CPR1: 98.0MMboe);
- Significant 27% increase to Gross Uquo 2P Reserves driven by the new Pre-Stack Depth Migration (“PSDM”) re-processing/re-interpretation of the Uquo 3D seismic survey and better than prognosis from the newly drilled Uquo-11 well; and
- Nigerian Assets[2]gross NPV10 of US$1.2bn assessed by CGG (NPV10 net to Savannah of US$954m).
Nigeria CPR Summary
The Nigerian CPR has been published by CGG and is available to download on the Company’s website (https://www.savannah-petroleum.com/en/key-documents). A summary of the gross reserves and contingent resources associated with the Uquo and Stubb Creek fields in South East Nigeria, in accordance with the 2018 Petroleum Resource Management System (“PRMS”) is set out in the table below, along with a comparison vs. the numbers presented in the Company’s December 2019 CPR as adjusted for production since its publication.
Operational Update
Average gross daily Nigeria production in the year-to-date period ended 31 October 2021 was 21.9 Kboepd, a 16% increase on the average gross daily production of 19.0 Kboepd in same period last year.
Of the total average gross daily production of 21.9 Kboepd in the year-to-date period ended 31 October 2021, 88% was gas, including a 16% increase in production from the Uquo gas field compared to the same period last year, from 99.5 MMscfpd (16.6 Kboepd) to 115.6 MMscfpd (19.3 Kboepd). Gas production levels are driven by customer nomination levels.
Accugas commenced first gas sales to FIPL, an affiliate company of the Sahara Group, in November 2021 for the provision of gas to the FIPL Afam power plant.
The Uquo-11 gas producer well has been drilled and was completed in the D1.0 and D1.3/D1.4 reservoirs on 16 November 2021. The well total net pay thickness came 71ft above prognosis, with a total thickness of 355ft for the main reservoirs’ targets (i.e. C9.0, D1.0 and D1.3/D1.4 reservoirs).
The Company also started ordering compression equipment for the Accugas gas processing plant during the first half of 2021. Factory Acceptance Tests for the two compressor packages have been successfully carried out, the Front End Engineering Design is in progress and we expect the Long Lead Items to be ordered before the year end. Both the drilling and compression projects will ensure our continued ability to deliver gas at current and anticipated future increased contracted volumes to satisfy customer demand.
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