Page 12 - AfrOil Week 04 2020

AfrOil
NEWS IN BRIEF
AfrOil
UPSTREAM
SDX Energy: Update
on drilling operations
in Morocco
SDX Energy, the MENA-focused oil and gas company, is pleased to announce that the OYF-2 well in Morocco (SDX 75% working interest) has been drilled to a measured depth of 1,210 metres and has encountered commercial quantities of gas in excess of pre-drill estimates. The discovery also confirms that the Company’s core produc- tive area extends to the north.
Both the Upper and Lower Guebbas targets in OYF-2 were encountered, and reservoir thick- ness and quality were better than pre-drill expec- tations. The Upper Guebbas was encountered at a measured depth of 1,001 metres, while the Lower Guebbas was penetrated at a measured depth of 1,120 metres.
Management estimates that approximately 1.3-1.9 bcf of gas is recoverable from the hori- zons encountered by the OYF-2 well, which will be tested in February. The discovery will be tied into the Company’s infrastructure when required, at an estimated cost of approximately US$2mn net to SDX. Furthermore, the discovery has de-risked a further 0.5 to 1.0 bcf of prospec- tive resources in the western compartment of the Lower Guebbas target, which the company expects to recover with a single development well in the future.
The rig has now moved to the BMK-1 loca- tion, which is approximately 11 km to the north of OYF-2. BMK-1 will again test the extent of the northern expansion of the company’s core productive area and, if successful, could de-risk a number of similar close-by prospects. After BMK-1, one more close to infrastructure well and two other potentially play-opening wells in
Lalla Mimouna will be drilled to complete the campaign in March.
Mark Reid, CEO of SDX, commented: “We have a particularly busy year ahead with the drill bit, giving us the opportunity to increase significantly the Company’s reserves life. OYF-2 in Morocco is a very positive start, a discovery which is larger than pre drill expectations, and confirmation that our core productive area extends to the north. With the planned follow-on development well, we now have the potential to increase our total reserves in Morocco to approx- imately three to four years of customer demand with our gas being sold under five and ten year fixed priced contracts at an average gas price of circa US$11/mcf.”
SDX Energy, January 28 2020
LEKOIL announces
update on operations
at Otakikpo field
LEKOIL, the oil and gas exploration and pro- duction company with a focus on Nigeria and West Africa, has announced, on behalf of the Otakikpo Joint Venture which is made up of Green Energy International Ltd (GEIL), the operator, and the technical partner, LEKOIL Oil and Gas Investments Ltd (LOGL), a member of the LEKOIL Ltd group, an operational update on Otakikpo Marginal Field in OML 11.
The Otakikpo JV, on 25 January 2020, com- pleted the first crude oil lifting of this year by the nominated offtaker, Shell Western Supply and Trading (SWST), a member of the Royal Dutch Shell group of companies. LOGL expects to receive cash proceeds from this crude oil lifting of approximately US$7.0mn. The next lifting, of a similar quantity, is expected to occur within the next four to six weeks.
For the full year 2019, production from
Otakikpo averaged 5,305 bpd gross with 2,122 bpd net to LOGL (full year 2018: 5,345 bpd gross with 2,138 bpd net to LOGL). For the first 20 days of this year, production at Otakikpo has averaged 5,860 bpd gross with 2,344 bpd net to LOGL.
Further to the announcement on July 1, 2019, where the Otakikpo JV executed a memoran- dum of understanding (MoU) with Schlum- berger and a subsidiary of a major international oil company, the parties remain aligned and committed to the expansion project which has the potential, subject to satisfaction of the con- ditions set as previously announced, to increase production on the field up to 20,000 bpd (8,000 bpd net to LOGL). The phased development plan for the project consists of drilling between five and seven new wells as well as the expan- sion of processing infrastructure which will be financed by a project finance debt facility. A fur- ther update on the progress of this project will be provided shortly.
Lekan Akinyanmi, LEKOIL’s CEO, com- mented: “Otakikpo continues to provide steady production and cashflow for LEKOIL. We are delighted with the collaborative progress being made by all parties towards the development and transformation project planned for Otakikpo that is aimed at increasing production from the field. We remain fully focused to generate value on this asset for all shareholders.”
LEKOIL, January 27 2020
BW Energy completes
second production well
for Tortue Phase 2
BW Energy is pleased to announce the successful completion of the second production well of the Tortue Phase 2 development.
The DTM-5H well marks the completion of the first of two new well clusters on the Tortue field, which will be tied back to the FPSO BW Adolo and boost oil output. First production from the completed cluster, consisting of the DTM-4H and DTM-5H production wells, is planned for March 2020.
The second cluster, also consisting of two wells, is expected to be in production by June 2020.
The Tortue development will upon com- pletion of Phase 2 have six wells producing an estimated total of 17,300-21,600 bpd gross for 2020, compared with 11.8 kbpd gross on average produced in 2019.
“We are pleased to be on plan and budget for the completion of our current well program. This will give us a substantial increase in produc- tion over the coming two quarters”, said Carl K. Arnet, CEO of BW Energy.
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Week 04 29•January•2020