Page 16 - AfrOil Week 14 2020

AfrOil
NEWS IN BRIEF
AfrOil
Angola: PGS completes
Kwanza Shelf acquisition,
releases fast-track data
Marine geophysical company PGS has announced the completion of acquisition on its MC3D Kwanza Shelf survey offshore Angola. Total GeoStreamer coverage in Blocks 6, 7 and 8 and the surrounding areas of the Kwanza Shelf is now 8,300 square km.
This MC3D Kwanza Shelf survey comple- ments earlier PGS acquisition, carried out in 2019.
The latest Kwanza Shelf survey will provide key data for the Angolan 2021 License Round. A fast-track dataset is now available for view- ing. The present-day shelf of the Kwanza Basin has been overlooked in previous exploration cycles. The combination of 3D GeoStreamer technology with modern imaging techniques is expected to unlock plays in shallow Kwanza Shelf open blocks.
Shallow-water environments such as the Kwanza Shelf can present imaging challenges. These are resolved in this survey by enhanced processing flows such as FWI and SWIM ena- bled by high-quality GeoStreamer 3D broad- band data.
“High-density GeoStreamer acquisition combined with the latest processing and imag- ing technology, provide a detailed view of the hydrocarbon potential of the Kwanza Shelf area. This high-quality dataset will allow for lead and prospect generation, attribute analysis and res- ervoir-scale evaluations,” promises Christine Roche New Ventures Manager Africa at PGS. PGS, April 02 2020
PERFORMANCE
SDX Energy announces
year-end 2019 financial and
operating results
SDX Energy, the MENA-focused oil and gas company, has announced its audited financial and operating results for the year ended Decem- ber 31, 2019.
2019 entitlement production of 4,062 boepd was 14% higher than 2018, and by individual asset, production either exceeded or was at the upper end of 2019 guidance. The 24% year on year production increase in Morocco supported our customers’ growth using natural gas, a less carbon-intensive fuel source.
South Disouq field brought on production as planned in Q4-2019. The performance of the Central Processing Facility (CPF) and wells
exceeded expectations and resulted in an accel- erated ramp up to plateau of gross 50 mcf (1.416 mcm) per day in mid-December, which was three months ahead of expectations. This per- formance has been sustained to date in 2020.
Continuing the exploration drilling cam- paign in South Disouq, the SD-12X well tar- geting gross 33 bcf (935 mcf) as estimated by management was spud on March 18, 2020. The SD-6X well encountered sub-economic quanti- ties of gas; however, this has no anticipated read across to SD-12X.
The Moroccan drilling campaign, which commenced in Q4 2019, has resulted in seven discoveries from nine wells drilled to date, with the 10th well, LMS-2, completed and awaiting crew mobilisation for testing. Significantly, the discoveries at OYF-2 and BMK-1 have con- firmed that the prospectivity in SDX’s existing core production and development area extends to the north, and have de-risked circa 20 bcf of P50 prospective resources. Five commercial discoveries close to existing infrastructure have increased gross 2P gas reserves to 6.0 bcf as at December 31, 2019.
All of the objectives of the drilling campaign were achieved with 10 wells, allowing the Com- pany to preserve capital and defer the final two wells to a later campaign.
As at December 31, 2019, the Company’s working interest share of audited(1) 2P reserves was 12.0mn boe and audited 2C contingent resources was 2.6mn boe(2). Approximately 2.3mn boe of the 2.6mn boe of contingent resources relates to the Company’s Meseda and Rabul producing assets in its West Gharib con- cession in Egypt. These contingent resources will be converted to 2P reserves upon approval of the development plan for the wells required to pro- duce them.
Q1-2020 daily average production estimated to be at or above upper end of 2020 guidance for all assets.
2020 production guidance of 6,750-7,000 boepd is 66-72% higher than 2019 actual production.
Whilst the level of potential revision to FY 2020 Moroccan guidance is as yet unknown,
as an indication, it should be noted that if the three customers remain closed down for three months, then FY-2020 guidance of 6.7-6.9 mcf per day is likely to be revised to 5.7-6.2 mcf per day and if the close-down extends to six months, then the guidance would be revised to 5.0-5.5 mcf per day.
SDX Energy, April 07 2020
Egypt: United Oil and Gas
announces operational and
corporate update
AIM-listed United Oil & Gas has provided an operational and corporate update to sharehold- ers, including the commencement of gas pro- duction at the Al Jahraa field in the Company’s 22%-owned Abu Sennan concession onshore Egypt and measures taken in response to the COVID-19 pandemic and ongoing oil-price volatility.
Egypt Update: completion of low capital expenditure gas pipeline project at Al Jahraa. Production of gas and elimination of flaring increases gross production in Egypt to circa 8,400 boepd (1,850 boepd net), more than dou- bling the production compared to 12 months ago. All Egyptian production, including new gas supply, has positive operational cashflow, even at current low market prices. Low operating costs at Abu Sennan of around $6.5 per barrel provide solid operating margins even at low price levels. The Company’s pre-payment facility with BP provides downside price protection by effec- tively hedging 6,600 barrels per month of oil at $60 per barrel for the next 30 months. Circa 20% of United’s net production is gas, which is sold under a fixed contract that is relatively insensi- tive to oil-price changes. Drilling operations are continuing at the El Salmiyah 5 infill well within the El Salmiyah field
Proactive measures taken by United and its partners to reduce near-term capex com- mitments during current oil-price uncertainty and the impact of Covid-19: Deferral of Egyp- tian Capex reduces 2020 infill campaign from four to two wells, significantly reducing gross 2020 Capex estimates. Further optimisation of the capex and opex budgets is being consid- ered. Completion of post-Egyptian-acquisition licence review sees divestment plans for selected non-core assets in the Wessex Basin and a deci- sion not to exercise the farm-in option in Benin. Substantial cut in administrative expenditure resulting in further cost savings. Measures taken to minimise the impact of oil-price uncertainty and Covid-19 will help safeguard the company during the current industry challenges, with the aim of putting it in a position to take advantage of future opportunities
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Week 13 01•April•2020