TIDMSAVP
RNS Number : 4164Q
Savannah Petroleum PLC
06 June 2018
6 June 2018
Savannah Petroleum PLC
("Savannah" or "the Company")
Amdigh Oil Discovery
Second oil discovery made in multi-well drilling campaign in
Niger
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 Amdigh-1 exploration well
as an oil discovery. Amdigh-1 is located on 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 22m
of net oil bearing reservoir sandstones in the E1 and E2 reservoir
units within the primary Eocene Sokor Alternances objective.
Wireline logs indicate the reservoir properties to be good to
excellent quality and the available pressure data indicates light
oil, which is consistent with offset wells along trend and the
depth/API trend observed across the basin. Oil samples from both
the E1 and E2 reservoir units 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 2,469m, and encountered the main objective targets at, or near,
their prognosed depths. The well took a total of 24 days to reach
target depth, and all operations are expected to be completed
within 33 days of spud. No significant geological or drilling
hazards were encountered.
Next Steps
Amdigh-1 is currently being suspended for future re-entry.
Consistent with standard industry practice in the ARB, a production
test is expected to be performed on the well as part of a batch
campaign using a dedicated test rig once the results of the
remaining exploration well in the current drilling campaign,
Kunama-1, are available. Savannah does not expect to provide a
discovered resource and volumes report until its expected well test
program has been completed.
Following testing, a downhole completion assembly to Amdigh-1
will be installed so as to enable the well to function as a
production well in the future.
Kunama-1
The GW 215 Rig will now mobilise to the Kunama-1 well site,
located 12km from Amdigh-1, where it will prepare to spud the
Kunama-1 exploration well. The Kunama-1 well site has been prepared
and is ready to accept the rig. The move is anticipated to take
between 10 - 15 days, and the Company will provide an update upon
spud of the well.
As with the previous wells drilled in this campaign, the well is
designed to evaluate potential oil pay in the Eocene Sokor
Alternances as the primary target, with the secondary target of
potential oil pay in the Eocene Upper Sokor being considered as
upside.
Andrew Knott, CEO of Savannah Petroleum, said:
"Two discoveries from our first two ARB exploration wells is
clearly encouraging for the future of our Niger project. Given
these successes, we have now engaged external consultants to
commence detailed development concept evaluation work around the
creation of a potential R3 East Area Early Production System. On
the drilling front, I expect our near-term focus to remain on the
prospects in the R3 area and we expect to provide further updates
on potential additional drilling activity over the coming
months.
I would also like to take this opportunity to once again thank
our local community and governmental stakeholders, as well as our
operations and subsurface teams and oil service company partners,
for the work and support that the Company has received to reach
this point."
Steve Jenkins, Chairman of Savannah Petroleum, said:
"Amdigh is a significant discovery for Savannah, which I
believe, alongside Bushiya, has the potential to underpin a future
R3 East development hub. The well further validates Savannah's
original thesis for entering the ARB, being that significant
portions of the Company's acreage have similar geology to that of
the neighbouring Agadem PSC area, which has proven so prolific for
the Joint Venture partnership led by China National Petroleum
Corporation.
I firmly believe that all of the necessary ingredients for
repeatable exploration success exist in our project areas. Given
the extensive prospects and leads inventory we have in the wider R3
license area and in our Niger portfolio, we remain encouraged about
the potential of our future exploration activities."
A selection of photographs of Savannah's operations at Amdigh-1
has been uploaded to the Company's website at
http://www.savannah-petroleum.com/en/gallery.php.
Steve Jenkins, Chairman, and David Clarkson, a non-executive
director of the Company, have read and 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 holds a BSc degree in Mechanical Engineering from
the University of Strathclyde, and has over 40 years' experience in
the oil and gas industry with senior level leadership roles in
major international developments. Mr Clarkson is a Chartered
Engineer and 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 Hostage, 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
both wells drilled to date by the Company (Bushiya-1 and Amdigh-1)
having resulted in light oil discoveries. The third well in the
program, Kunama-1, is also located in the R3 East Area. Savannah
expects to provide an update in relation to potential future
additional drilling plans over the course of the coming months.
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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