Page 7 - AfrOil Week 32

AfrOil invEstmEnt AfrOil
Genel plans African farm-outs
somaliland, moRoCCo
GENEL Energy intends to begin a farm-out pro- cess o ering a stake in its Somaliland acreage. e company will begin trying to attract inves- tors late in the third quarter of this year, it said in its results for the rst half of 2019, posted on august 6. It also plans a farm-out process on its Moroccan assets, in 2020.
The company acquired 2D seismic on the onshore acreage in 2018. Following interpreta- tion and basin analysis, it has generated a pros- pects and leads inventory on the SL-10-B/13 block. as such, it believes the block has “signi - cant hydrocarbon potential”.
a number of high-impact exploration targets have been identi ed, with play types analogous to Yemeni ri basins.
Farming out a stake in this block, in which Genel owns a 75% stake, is in line with its strat- egy, which it said was based on reserves replace- ment from africa, “targeted through the lowest possible capital outlay”. Previously, the company has said it may spud a well with a partner on the SL-10-B/13 block in 2020.
Seismic processing is under way on informa- tion from the Odewayne block. Minimum work commitments have been met on both blocks, Genel said.
In Morocco, meanwhile, Genel is processing the 3,500-square km multi-azimuth broadband 3D seismic survey on the Sidi Moussa block, which was completed in November 2018. is rounds o the company’s commitments on the licence. During 2019, the company expects
to spend only $5mn on african work, most of which will go on processing Moroccan seismic.
Once work has been nished, a farm-out plan will begin in the rst quarter of 2020. Genel said it was holding talks with the Moroccan govern- ment on securing licence time to complete nego- tiations. In 2017, the local government agreed to drop a well drilling commitment and extend the licence deadline to February 2020.
Genel’s push into africa has not been success- ful thus far. e company participated in wells in angola and Cote d’Ivoire but both disappointed. It also drilled the SM-1 well on the Sidi Moussa block, in Morocco, in 2014. is found oil but well control problems hindered analysis.™
TransGlobe ramps up output
EGyPt
TraNSGLOBE Energy has increased produc- tion in the second quarter, to 16,940 barrels of oil equivalent per day (boepd), up 6%. Egypt reached 14,663 boepd, from 13,616 boepd in the rst quarter. More appears set to come, the company said, with the Egyptian Ministry of Petroleum having approved the South Ghazalat licence, which is due to begin producing by the end of this year.
Production from Egypt for the first half achieved 14,143 boepd, above guidance and 17% higher than the same period of 2018. e company expects to produce 15,000-16,000 boepd this year, a rise of 1,000 boepd on previ- ous estimates.
e increase was driven by three new wells being drilled and brought into production at West Bakr, in addition to optimisation work.
roughput is rising, with the K Station Phase 3 expanding to 45,000 barrels per day of gross uid handling, from 30,000 bpd. is should be completed in the second half of 2019.
Oil from Egypt is sold at a discount to Dated Brent, with TransGlobe receiving $60.58 per barrel during the quarter. Dated Brent averaged $68.92 per barrel during the period. During the rst quarter, Dated Brent ran at $63.17 per barrel, while the company’s production sold at $54.93.
During the quarter, the company sold 489,100 barrels of entitlement crude, up from 452,600 barrels in the rst quarter. Its inventory increased from 647,000 barrels at the end of the rst quarter to 735,000 barrels, driven by higher than expected production.
During the second quarter, TransGlobe drilled two development wells, H-30 and K-63,
PERfoRmanCE
Week 32 13•August•2019 w w w . N E W S B A S E . c o m P7