TIDMSAVP
RNS Number : 0975D
Savannah Petroleum PLC
05 October 2018
5 October 2018
Savannah Petroleum PLC
("Savannah" or "the Company")
Zomo Oil Discovery
Fifth oil discovery made 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 Zomo-1 exploration well as
an oil discovery. Zomo-1 is the fifth consecutive discovery to be
made in the exploration campaign conducted by Savannah's Niger
subsidiary ("Savannah Niger") 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 5.4m
of net oil-bearing reservoir sandstones in the E1 reservoir unit
within the primary Eocene Sokor Alternances objective. Additional
pay is thought to potentially exist in the well, but will require
further technical evaluation and/or testing to confirm. 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 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 2,499m, and encountered the main objective targets at, or near,
their prognosed depths. The well took a total of 20 days to reach
target depth, and all operations are expected to be completed
within 28 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
Following the successful results of the five exploration wells
drilled to date, Savannah Niger has elected to commission Pre-Stack
Depth Migration ("PSDM") processing of the R3 East 3D seismic
dataset. PSDM processing is intended to provide Savannah Niger with
a significantly enhanced definition of the oil pay zones at the
crests of each of the discoveries and significantly assist in full
"field scale" evaluations and associated development well planning.
PSDM is also anticipated to significantly enhance the 3D imaging of
the as yet un-drilled deeper Cretaceous aged Yogou and Donga
exploration targets identified on the existing data set (including
potentially significant structures underlying Savanah Niger's
Amdigh, Bushiya and Eridal discoveries).
Separately, Savannah Niger has recently received an additional
400 km of 2D seismic data on the R3 Central area. Savannah Niger is
currently in the process of incorporating this data into its R3
Central area subsurface model and expects to conclude this process
shortly. Preliminary work conducted to date has served to
revalidate many of the previously identified exploration targets on
the area as well as identifying several new targets.
Given the importance of these workstreams for the next phase of
drilling activity in the R3 East and R3 Central areas, Savannah
Niger has decided to conclude its maiden exploration campaign
following the completion of operations at Zomo-1. A new drilling
campaign is expected to commence in early 2019, initially focusing
on the R3 East and R3 Central areas, before likely proceeding to
the R1 Dinga 3D area and, potentially, the R2 Dinga Ridge area.
Savannah Niger continues to expect to perform a well test on
Amdigh-1 in December 2018, and preparations for this are underway.
It is anticipated that following completion of the well test,
production from Savannah's planned Early Production System ("EPS")
will commence in early 2019.
Steve Jenkins, Chairman of Savannah Petroleum, said:
"Following the Zomo-1 discovery, our maiden exploration campaign
in Niger has delivered five discoveries from five wells and
resulted in the discovery of more than sufficient oil to enable us
to proceed towards our planned 2019 Early Production System. This
is a fantastic achievement, and we expect the EPS to create a
material new revenue stream for our Company. Looking forward, 2019
is set to be an extremely busy time for Savannah Niger on the
drilling front. Our team is in the process of putting together a
large multi-well campaign aimed at replicating our 2018 successes
and delivering further transformational value for our
stakeholders."
Andrew Knott, CEO of Savannah Petroleum, said:
"The discovery of the Amdigh, Bushiya, Eridal, Kunama and Zomo
fields in the R3 East PSC area has delivered material value for our
stakeholders. The discoveries have also served to demonstrate the
world class exploration potential of our wider PSC areas, where we
have identified 120 potential drilling targets which we expect to
high grade for inclusion in future drilling campaigns. I would like
to take the opportunity to thank our drilling and technical teams,
as well as our service company partners, for delivering a safe and
successful campaign within time and budget expectations. I look
forward to providing further updates on our Niger business as it
develops, ahead of the upcoming Amdigh-1 well test and our planned
EPS, as well as our next phase of exploration drilling which we
expect to commence in early 2019."
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
Hamish Clegg
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 its maiden 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 five wells drilled to
date by the Company (Bushiya-1, Amdigh-1, Kunama-1, Eridal-1 and
Zomo-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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