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Savannah Makes Amdigh Oil Discovery

Source: www.gulfoilandgas.com 6/6/2018, Location: Africa

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Savannah Petroleum PLC, the British independent oil and gas company focused around oil and gas activities in Niger and Nigeria, is pleased to announce the result of the Amdigh-1 exploration well as an oil discovery. Amdigh-1 is located on the R3 portion of the R3/R4 PSC Area in the Agadem Rift Basin (“ARB”), South East Niger.

Well Result
Preliminary results based on the interpretation of the available data set (which includes wireline logs, fluid sampling and pressure data) indicate that the well has encountered a total estimated 22m of net oil bearing reservoir sandstones in the E1 and E2 reservoir units within the primary Eocene Sokor Alternances objective. Wireline logs indicate the reservoir properties to be good to excellent quality and the available pressure data indicates light oil, which is consistent with offset wells along trend and the depth/API trend observed across the basin. Oil samples from both the E1 and E2 reservoir units have been taken and returned to surface using wireline testing equipment.

Drilling Performance
The well was drilled by the GW 215 Rig to a total measured depth of 2,469m, and encountered the main objective targets at, or near, their prognosed depths. The well took a total of 24 days to reach target depth, and all operations are expected to be completed within 33 days of spud. No significant geological or drilling hazards were encountered.

Next Steps
Amdigh-1 is currently being suspended for future re-entry. Consistent with standard industry practice in the ARB, a production test is expected to be performed on the well as part of a batch campaign using a dedicated test rig once the results of the remaining exploration well in the current drilling campaign, Kunama-1, are available. Savannah does not expect to provide a discovered resource and volumes report until its expected well test program has been completed. Following testing, a downhole completion assembly to Amdigh-1 will be installed so as to enable the well to function as a production well in the future.

Kunama-1
The GW 215 Rig will now mobilise to the Kunama-1 well site, located 12km from Amdigh-1, where it will prepare to spud the Kunama-1 exploration well. The Kunama-1 well site has been prepared and is ready to accept the rig. The move is anticipated to take between 10 – 15 days, and the Company will provide an update upon spud of the well. As with the previous wells drilled in this campaign, the well is designed to evaluate potential oil pay in the Eocene Sokor Alternances as the primary target, with the secondary target of potential oil pay in the Eocene Upper Sokor being considered as upside.

Andrew Knott, CEO of Savannah Petroleum, said: “Two discoveries from our first two ARB exploration wells is clearly encouraging for the future of our Niger project. Given these successes, we have now engaged external consultants to commence detailed development concept evaluation work around the creation of a potential R3 East Area Early Production System. On the drilling front, I expect our near-term focus to remain on the prospects in the R3 area and we expect to provide further updates on potential additional drilling activity over the coming months. I would also like to take this opportunity to once again thank our local community and governmental stakeholders, as well as our operations and subsurface teams and oil service company partners, for the work and support that the Company has received to reach this point.”

Steve Jenkins, Chairman of Savannah Petroleum, said: “Amdigh is a significant discovery for Savannah, which I believe, alongside Bushiya, has the potential to underpin a future R3 East development hub. The well further validates Savannah’s original thesis for entering the ARB, being that significant portions of the Company’s acreage have similar geology to that of the neighbouring Agadem PSC area, which has proven so prolific for the Joint Venture partnership led by China National Petroleum Corporation. I firmly believe that all of the necessary ingredients for repeatable exploration success exist in our project areas. Given the extensive prospects and leads inventory we have in the wider R3 license area and in our Niger portfolio, we remain encouraged about the potential of our future exploration activities.”

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