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Thursday, July 9, 2015
Savannah Petroleum reported on work which has been conducted by independent expert CGG Robertson on the resource volumes held on its R1/R2 license area in Niger. The work updates the previous Competent Persons Report published in the company’s AIM Admission Document from July 2014.
CGG has also reviewed Savannah’s conceptual development solution and associated economics for potential Agadem Rift Basin (ARB) economics. Savannah has also provided an update in relation to the expected cost of crude export via the planned Agadem-Kribi pipeline route and the progress made by the company towards ensuring operational readiness to recommence exploration activities on the permit area in H2 2015.
The highlights of the CGG report have resources from the R1/R2 increasing to 1,191 million barrels best estimate gross risked prospective oil, from the previous estimate of 573 million barrels. CGG has assessed the size and risk profile of Savannah’s previously announced 14, 3D seismic-backed drill -eady exploration prospects. They have indicated a gross mean risked recoverable resource volume on these prospects of 259 million barrels versus Savannah’s estimate of 215 million barrels. Savannah’s previously announced risk assessment of these prospects has been assessed as reasonable.
Environmental authorizations now received to conduct drilling and seismic surveys on the license area. Savannah said that the well design and seismic acquisition planning contracts have been signed with the intention of ensuring operational readiness for recommencement of exploration activities.
Andrew Knott, CEO of Savannah Petroleum, said: “It is highly encouraging for our stakeholders that CGG’s assessment of the size of the R1/R2 prize continues to increase and that they have validated our assessment of the potential size and risk profile of our previously announced drill ready prospect inventory. Equally as important is the progress we have made in better delineating ARB development economics. Overall, CGG’s work supports our view that R1/R2 is potentially a large, relatively low risk and low cost asset. As a company we remain focused around accelerating the exploration, appraisal and anticipated future development of R1/R2. We continue to anticipate the introduction of a partner in the second half of the year, with all other required workstreams expected to have been substantially completed in 2H to ensure operational readiness for recommencement of exploration activities on the permit by the end of the year. Today’s update is further cause for confidence in Savannah’s future and we thank our stakeholders for the support we have been shown to date.”
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