Savannah Energy Plc Publication of updated Niger CPR (5811L)
May 01 2020 - 2:00AM
UK Regulatory
TIDMSAVE
RNS Number : 5811L
Savannah Energy Plc
01 May 2020
1 May 2020
Savannah Energy PLC
("Savannah" or "the Company")
Publication of updated Niger CPR
Savannah Energy PLC, the British independent energy company
focused around activities in Nigeria and Niger, is pleased to
announce the publication of an updated Competent Person's Report
("CPR") covering the Company's assets in Niger.
The report was compiled by CGG Services (UK) Ltd ("CGG"), a
well-known independent third-party auditor. For an explanation of
the defined terms in this announcement readers should refer to the
CPR and the Company's Supplemental Admission Document, both of
which are available to download from the Company's website at
www.savannah-energy.com .
Key Highlights
-- Certification by CGG of 35MMstb of Gross 2C Resources for the
R3 East discoveries with an additional 90MMstb of Gross Unrisked
Prospective Resources (Best case) within tie-in distance to the
planned R3 East facilities
-- 2C Resource NPV10 of planned gross 28MMstb R3 East Early
Production System development estimated at US$132.8m or US$5.8/bbl
net to Savannah. Gross 20MMstb of additional developed resource
estimated to increase NPV by US$100m net to Savannah.
-- 2C case economic break-even oil price estimated at US$26/bbl
(assuming 10% IRR), with R3 East development CAPEX to first oil
estimated at US$6.8m. Maximum estimated cash outflow of US$57.7m
for full field development.
-- Average size of the Savannah discoveries STOIIP estimated at
c.30MMstb, in line with the basin exploration statistics. Amdigh's
STOIIP estimate shows the discovery to be one of the ten largest in
the basin;
-- GG has certified Unrisked Prospective Resources (Best case)
estimated at 360MMstb for a subset of 11 prospects and leads from
Savannah's extensive exploration portfolio comprising up to 146
prospects and leads;
-- CGG has reiterated that estimated average play geological
chance of success (GCOS) for the Alternances exploration prospects
and leads, such as those drilled to date by Savannah in the R3 East
area, is high (>75%).
Andrew Knott, CEO of Savannah Energy, said:
"I believe that our new Niger Competent Persons Report once
again independently verifies the value potential of our asset base
in-country. The robust economics and growth potential of the R3
East area and our wider Niger asset portfolio should be clear for
all to see. Importantly, the Competent Person has continued to
recognise the low technical risk profile of the Alternances as well
as highlighting the significant upside that other exploration plays
could offer. Our large seismically identified portfolio of 146
prospects and leads serves to again demonstrate the strong future
'running room' the assets have.
In terms of our plans for delivering the development we are
happy to confirm that these continue to progress and that as a
Company we are now intending to commence installation of an Early
Production System on R3 East within the next twelve months, market
conditions and financing permitting."
Update on Niger Licences
Following a successful exploration drilling programme in 2018 on
the R3 East portion of the R3/R4 PSC, the Company has agreed with
the Ministry of Energy and Petroleum that the R4 area, which was
relinquished at the end of the initial Exclusive Exploration
Authorisation in accordance with the terms of the R3/R4 PSC, will
be combined with the R1/R2 PSC Area into a new R1/R2/R4 PSC to be
issued under the Petroleum Code 2017, t hus retaining the full
acreage position previously covered by the R1/R2 PSC and the R3/R4
PSC . Ratification of the new R1/R2/R4 PSC is subject to Council of
Minister approval, and payment of the associated fee.
Christophe Ribeiro, Savannah's VP Technical, has approved the
technical disclosure in this regulatory announcement in his
capacity as a qualified person under the AIM Rules.
Mr Ribeiro is a qualified geoscientist with 20 years' experience
in the oil and gas industry. He holds a MSc in Geophysics from the
Institut de Physique du Globe de Paris and a PhD in Reservoir
Geophysics from Heriot-Watt University. Mr Ribeiro is a member of
the European Association of Geoscientists and Engineers (EAGE) and
Petroleum Exploration Society of Great Britain (PESGB).
For further information contact:
+44 (0) 20 3817
Savannah Energy 9844
Andrew Knott, CEO
Isatou Semega-Janneh, CFO
Sally Marshak, Communications
+44 (0) 20 7409
Strand Hanson (Nominated Adviser) 3494
James Spinney
Ritchie Balmer
Rory Murphy
+44 (0) 20 7878
Mirabaud (Joint Broker) 3362
Peter Krens
Ed Haig-Thomas
+44 (0) 20 7260
Numis Securities (Joint Broker) 1000
John Prior
Emily Morris
Alamgir Ahmed
+44 (0) 20 8434
Celicourt Communications 2754
Mark Antelme
Jimmy Lea
Ollie Mills
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 Energy
Savannah Energy PLC is an AIM listed energy company with
exploration and production assets in Nigeria and Niger. In Nigeria,
the Company has controlling interests in the cash flow generative
Uquo and Stubb Creek oil and gas fields, and the Accugas midstream
business in South East Nigeria, which provides gas to approximately
10% of Nigeria's available power generation capacity. In Niger,
Savannah has interests in two large PSC areas located in the highly
oil prolific Agadem Rift Basin of South East Niger, where the
Company has made five oil discoveries and seismically identified a
large exploration prospect inventory, consisting of 146 additional
prospects and leads to be considered for potential future drilling
activity.
Further information on Savannah Energy PLC can be found on the
Company's website: www.savannah-energy.com
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END
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