TIDMSAVP
RNS Number : 2344U
Savannah Petroleum PLC
11 July 2018
11 July 2018
Savannah Petroleum PLC
("Savannah" or "the Company")
Kunama Oil Discovery and Exercise of Drilling Rig Option
Third 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 Kunama-1 exploration well
as an oil discovery. Kunama-1 is the third consecutive discovery
Savannah has made in its maiden 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 9m
of net oil bearing reservoir sandstones in the E1 and E5 reservoir
units within the primary Eocene Sokor Alternances objective.
Wireline logs indicate the reservoir properties to be good quality
and the available data indicates light oil equivalent to the
Amdigh-1 well (the second discovery well announced by Savannah on 6
June 2018), and consistent with offset wells along trend and the
depth/API trend observed across the basin. Oil samples from the E1
and E5 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 2,460m, 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
Kunama-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. This extended well testing
programme is currently being planned for later in the year and the
Company intends to provide further details in due course. Following
testing, a downhole completion assembly to Amdigh-1 is expected to
be installed so as to enable the well to function as a production
well in the future. Savannah does not expect to provide a
discovered resource and volumes report until its expected well test
programme has been completed.
Following the successful results of the three exploration wells
drilled to date on the R3 East area, Savannah has elected to
exercise the first of the six individual options under its contract
with Great Wall Drilling Company Niger SARL. The GW 215 rig will
now mobilise to the Eridal-1 well site, located on the R3 portion
of the R3/R4 PSC Area 6km from Amdigh-1, where it will prepare to
spud the Eridal-1 exploration well. Following the exercise of this
option, Savannah will continue to have options for a further five
wells, each of which can be exercised individually at Savannah's
discretion.
Eridal-1
The Eridal-1 well site preparation is in the final stages of
completion and is on schedule to accept the rig following
demobilisation from the Kunama-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.
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:
"This is clearly an exciting time for Savannah and our
stakeholders. The Kunama discovery, following on from Amdigh and
Bushiya, provides further encouragement for our plans to establish
an early production scheme in Niger, which we expect to be able to
provide an update on later in this quarter. The improved
understanding of the R3 geology we have gained from the outcome of
these wells has also given us the confidence to extend our campaign
to target the Eridal prospect, located in close proximity to
Amdigh, and we expect to provide updates on further potential
additional drilling activity over the course of the coming
months.
I would also like to take this opportunity to again thank our
operations and subsurface teams and oil service company partners
for the delivery of a safe and successful campaign which has been
achieved within time and budget expectations. We look forward to
continuing to work with them, as well as with our local community
and governmental stakeholders, as we continue our exploration and
appraisal activities and move into the development phase of our
Niger project."
A selection of photographs of Savannah's operations at Kunama-1
has been uploaded to the Company's website at
http://www.savannah-petroleum.com/en/gallery.php.
Steve Jenkins, Chairman, and David Clarkson, COO, 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 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 three wells drilled to date by the Company (Bushiya-1, Amdigh-1
and Kunama-1) having resulted in light 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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