11th Dec 2019 16:56
(Alliance News) - Savannah Petroleum PLC on Wednesday said that a report has confirmed the resources estimate for the company's Nigerian assets.
The company said a Competent Person's Report for the Uquo and Stubb Creek fields as well as the Accugas midstream business estimates gross and net proved and probable reserves reserves of 99.6 million barrels of oil equivalent and 71.0 million barrels, respectively.
The best gross and net resource estimate stands at 98.0 million barrels of oil equivalent and 58.6 million barrels, respectively.
The report states a net present value of the Nigerian assets at USD1.2 billion, with USD9597 million net to Savannah Petroleum.
The 2019 guidance for cash collections from the Nigerian assets is estimated at USD190 million and capital expenditure for 2020 is predicted at USD41.5 million.
Andrew Knott, chief executive of Savannah Petroleum, said: "We continue to view these assets as a strong platform from which we will deliver further growth. In this regard, we continue to make good progress in relation to the supply of gas to potential new customers, and are investing in additional well stock to ensure anticipated future production levels are capable of being met".
Savannah Petroleum shares closed at 21.00 pence each in London on Wednesday, up 0.9%.
By Tapan Panchal; [email protected]
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