TIDMSAVP
RNS Number : 8169X
Savannah Petroleum PLC
15 August 2018
15 August 2018
Savannah Petroleum PLC
("Savannah" or "the Company")
Eridal Oil Discovery and Exercise of Drilling Rig Option
Fourth oil discovery made in Niger, drilling campaign
extended
Savannah Petroleum PLC, the British independent oil and gas
company focused around oil and gas activities in Niger and Nigeria,
is pleased to announce the result of the Eridal-1 exploration well
as an oil discovery. Eridal-1 is the fourth consecutive discovery
Savannah has made in its ongoing exploration campaign in the R3
portion of the R3/R4 PSC Area in the Agadem Rift Basin ("ARB"),
South East Niger.
Well Result
Preliminary results based on the interpretation of the available
data set (which includes wireline logs, fluid sampling and pressure
data) indicate that the well has encountered a total estimated
13.6m of net oil bearing reservoir sandstones in the E1 reservoir
unit within the primary Eocene Sokor Alternances objective.
Wireline logs indicate the reservoir properties to be good quality
and the available data indicates light oil consistent with
Savannah's discoveries to date, and in line with offset wells and
the depth/API trend observed across the basin. Oil samples from the
E1 reservoir unit have been taken and returned to surface using
wireline testing equipment.
Drilling Performance
The well was drilled by the GW 215 Rig to a total measured depth
of 2,542m, and encountered the main objective targets at, or near,
their prognosed depths. The well took a total of 14 days to reach
target depth, and all operations are expected to be completed
within 23 days of spud. This compares with a pre-drill expectation
of 22 days to reach target depth and 30 - 35 days to complete all
drilling operations. No significant geological or drilling hazards
were encountered.
Next Steps, Exercise of Drilling Rig Option and Eridal-1
Eridal-1 is currently being suspended for future re-entry.
Production tests are expected to be performed on at least two of
Savannah's discovery wells as a precursor to the Company's plans to
implement our Niger Early Production Scheme ("EPS"), as referenced
in the Company's RNS on 8 August 2018. The testing is expected to
require standard production completion equipment to be installed in
the wells, enabling them to be connected to the proposed EPS. This
well testing programme is currently being planned for later in the
year and the Company intends to provide further details in due
course. The Company does not expect to provide a discovered
resource and volumes report until the well test programme has been
completed and evaluated.
Following the successful results of the four exploration wells
drilled to date on the R3 East area, Savannah has elected to
exercise the second of the six individual options it has under
contract with Great Wall Drilling Company Niger SARL. The GW 215
rig will now mobilise to the Zomo-1 well site, located on the R3
portion of the R3/R4 PSC Area 12km from Eridal-1, where it will
prepare to spud the Zomo-1 exploration well. Following the exercise
of this option, Savannah will continue to have options for a
further four wells, each of which can be exercised individually at
Savannah's discretion.
Zomo-1
The Zomo-1 well site preparation is in the final stages of
completion and is on schedule to accept the rig following
demobilisation from the Eridal-1 well site. The move is anticipated
to take between 10 - 15 days, and the Company will provide an
update upon spud of the well.
The well is designed to evaluate potential oil pay in the Eocene
Sokor Alternances as the primary target.
Andrew Knott, CEO of Savannah Petroleum, said:
"We are excited with the success we have delivered to date in
Niger. Eridal-1 maintains our 100% exploration success record and
marks our fourth discovery in the R3 East Area. What was different
about Eridal-1 was that we were targeting a structure which had
previously been drilled in a down-dip location by a previous
operator. Our technical team had a strong view that significant
potential existed up-dip and selected the Eridal-1 well
accordingly. We believe this has contributed meaningful oil
resource additions to support the development of our proposed EPS.
I would like to thank our subsurface team, along with our oil
service company partners, for the continued delivery of a safe and
successful campaign which remains significantly ahead of time and
budget expectations. We look forward to providing further updates
on our drilling campaign and plans for the EPS over the course of
the coming weeks and months."
Steve Jenkins, Chairman, and David Clarkson, COO, have approved
the technical disclosure in this regulatory announcement in their
capacity as qualified persons under the AIM Rules.
Mr Jenkins is a qualified geologist with 35 years' experience in
the oil and gas industry. He holds a BSc (Hons) in Geology and a
MSc in Petroleum Geology. Mr Jenkins is a Fellow of the Geological
Society.
Mr Clarkson is a Chartered Engineer with over 40 years'
experience in the oil and gas industry, and has held senior level
leadership roles in major international developments. He holds a
BSc (Hons) in Mechanical Engineering. Mr Clarkson is a Fellow of
the Institution of Mechanical Engineers
For further information contact:
Savannah Petroleum +44 (0) 20 3817 9844
Andrew Knott, CEO
Isatou Semega-Janneh, CFO
Jessica Ross, VP Corporate Affairs
Strand Hanson (Nominated Adviser) +44 (0) 20 7409 3494
Rory Murphy
James Spinney
Ritchie Balmer
Mirabaud (Joint Broker) +44 (0) 20 7878 3362
Peter Krens
Ed Haig-Thomas
Hannam & Partners (Joint Broker) +44 (0) 20 7907 8500
Neil Passmore
Alejandro Demichelis
Sam Merlin
Celicourt Communications +44 (0) 20 7520 9266
Mark Antelme
Jimmy Lea
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No.596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Notes to Editors:
About Savannah Petroleum
Savannah Petroleum PLC is an AIM listed oil and gas company with
exploration and production assets in Niger and Nigeria. Savannah's
flagship assets include the R1/R2 and R3/R4 PSCs, which cover c.50%
of the highly prospective Agadem Rift Basin ("ARB") of South East
Niger, acquired in 2014/15. The Company is also in the process of
acquiring interests in the cash flow generative Uquo and Stubb
Creek oil and gas fields and a 20% interest in the Accugas
midstream business in South East Nigeria from Seven Energy.
Further information on Savannah Petroleum PLC can be found on
the Company's website:
http://www.savannah-petroleum.com/en/index.php
About the Agadem Rift Basin
The Agadem Rift Basin is located in South East Niger and covers
an area of approximately 30,000 km(2) in size located in South East
Niger. In the modern era, China National Petroleum Corporation
("CNPC") has made 97 discoveries from the last 127 exploration
wells with the principal discovered geological play being a
relatively shallow Eocene Sokor Alternances tilted fault light oil
block play. The basin has been in production since 2011 following a
first phase of development of the Agadem PSC area (which is
adjacent to Savannah permit areas) by a CNPC-led joint venture.
Despite the high success rate seen in the ARB to date, Savannah
believes the basin to have been relatively lightly explored, both
in terms of overall activity levels and stratigraphic horizons
which have been targeted. Further exploration activity in the basin
is aided by the very large geological dataset managed by the
Niger's Ministry of Energy & Petroleum which comprises c.12,000
km(2) of modern 3D seismic, c.30,000 km of 2D seismic and over 250
well data suites.
About Savannah's ARB Project
Savannah's Niger project consists of two PSC areas (R1/R2 and
R3/R4) which together cover an area of 13,655 km(2) . Across these
permit areas, Savannah has mapped 126 un-drilled exploration
prospects and leads.
Following an extensive period of geological data acquisition and
evaluation, Savannah commenced a 3 firm well and 6 optional well
drilling program with the spud of the Bushiya-1 well in March 2018.
The initial focus of this program has been the R3 East area, with
all four wells drilled to date by the Company (Bushiya-1, Amdigh-1,
Kunama-1 and Eridal-1) having resulted in oil discoveries.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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