1st May 2020 15:06
(Alliance News) - Savannah Energy PLC on Friday said a new competent persons report, which is covering its assets in Niger, independently verified the value potential of this asset base in-country.
The energy company said the new report was compiled by CGG Services UK Ltd, an independent third-party auditor.
Savannah Energy said CGG certified 35 million stock tank barrels of gross 2C resources for the R3 East discoveries with an additional 90 million stock tank barrels of gross unrisked prospective resources within tie-in distance to the planned R3 East facilities.
The company's technically recoverable resources for its discovered but uncommercialised gas fields are classified as contingent resources. 2C denotes the best estimate of contingent resources.
Savannah Energy also said CGG's maximum estimated cash outflow is USD57.7 million for full field development.
In addition, CGG has certified unrisked prospective resources estimated at 360 million stock tank barrels for a subset of 11 prospects and leads from Savannah's extensive exploration portfolio comprising up to 146 prospects and leads.
"The robust economics and growth potential of the R3 East area and our wider Niger asset portfolio should be clear for all to see. Importantly, the competent person has continued to recognise the low technical risk profile of the Alternances as well as highlighting the significant upside that other exploration plays could offer," said Chief Executive Andrew Knott.
"In terms of our plans for delivering the development we are happy to confirm that these continue to progress and that as a company we are now intending to commence installation of an early production system on R3 East within the next twelve months, market conditions and financing permitting," added Knott.
AIM-listed Savannah Energy shares were trading 7.1% higher in London on Friday at 8.30 pence each.
By Evelina Grecenko; [email protected]
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