Agri Energy Limited, to be renamed Sirocco Energy Limited has received the results of the Competent Persons Report for Block 14 (the “CPR”) produced by independent consultant Senergy (GB) Limited (Senergy).
The CPR concluded there is potential in Block 14 for a portfolio of prospects that could have a gross unrisked total prospective resource of 1.5 billion barrels. This prospective resource is based on 30 potential traps containing a best estimate of 50 million barrels each. The study identified the gross resource range of each trap to be from 20 million barrels (low or P90) to 200 million barrels (high or P10) each, with the best estimate being 50 million barrels.
For the purposes of the report, and based on the current limited dataset, Senergy has determined Block 14 to be frontier but potentially high reward hydrocarbon exploration acreage. The CPR considers the chance of success to be 4.5% (1 in 22) based on the limited data, however, Senergy notes that there is significant scope to reduce risk during the planned exploration phase. Technical de-risking through the planned seismic acquisition and lead and prospect mapping could increase the chance of success to 7-8% (1 in 12.5) pre-drilling. The CPR concludes that if a petroleum system is proven by nearby drilling in the Mourdi or Mesaha Sub-basins, the chance of success could increase to about 30% or 1 in 3.3. The overall historical chance of success in the Murzuq Basin is greater than 40%.
The CPR notes that drilling activity is increasing in the region. A well in Block 12A, Sudan, immediately to the south of Block 14, drilled by an Al Qahtani led joint venture, intersected oil shows. A further exploration well is now planned in the block. In the El Mesaha Block in Egypt, immediately to the north of Block 14, Petroceltic International plc and its partners are currently drilling an exploration well.
Upon reviewing the Senergy CPR, the Managing Director of Agri Energy, Mr Gregory Channon commented:
“The identification of a prospective resource of 1.5 billion barrels is an excellent outcome for Block 14. At this early stage of exploration, prior to our more extensive technical work beginning, this result validates our understanding of the block. We look forward to maturing the leads and de-risking the plays with our upcoming work. We have a solid foundation on which to execute our technical program, which will be led in Khartoum by the newly appointed Block 14 Joint Operating Company President, Dr Michael Earle.”
Senergy prepared the CPR in accordance with the 2007 Petroleum Resources Management System (PRMS) prepared by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE) and reviewed and jointly sponsored by the World Petroleum Council (WPC), the American Association of Petroleum Geologists (AAPG) and the Society of Petroleum Evaluation Engineers (SPEE).
The CPR provides an independent evaluation of the recoverable hydrocarbons attributable to Block 14 Sudan. As the project is at an early stage of exploration maturity, a play level evaluation has been used by Senergy to assess the conceptual resource potential of the Block. Senergy estimated the conceptual potential based on the productive Murzuq Basin, which is considered an analogue for Block 14.