Sirius Petroleum PLC Ororo Field Update - Compact Well Heads Ororo 4+5
20 Mars 2018 - 8:30AM
RNS Non-Regulatory
TIDMSRSP
Sirius Petroleum PLC
20 March 2018
20 March 2018 RNS Reach
Sirius Petroleum Plc
("Sirius" or the "Company")
Ororo Field Update
Delivery of Compact Well Head Systems for Ororo-4 and
Ororo-5
Sirius Petroleum (AIM:SRSP), the Nigeria focused oil and gas
development and production company, is pleased to provide a further
update on the Company's Ororo Field operations, confirming that two
further well head systems are on route to Nigeria where they are
planned for deployment on wells Ororo-4 and Ororo-5.
Sirius announced on 21 December 2017 the delivery of its first
two sets of Cameron SOLIDrill modular compact well head systems in
Nigeria for the Company to commence the drilling programme at:
Ororo-2 and Ororo-3. Sirius plans to commence the drilling of its
first well on the Ororo Field, the Ororo-2 in April 2018 which will
be in a location close to the Ororo-1 well which was originally
successfully drilled by Chevron in 1986.
All well head equipment and services for the Ororo Field are
being supplied through Cameron, a Schlumberger Group Company. The
Cameron SOLIDrill modular compact wellhead systems increase casing
and tubing hanger landing reliability and help prevent debris from
entering the wellhead. The hangers and packoffs are designed with
angled shoulders to repel debris, such as dirt, metal shavings, and
cement plugs.
Ends
Enquiries:
Sirius Petroleum +44 20 3740 7640
Bobo Kuti, Chief Executive
Mark Henderson, Chief Financial Officer
Cantor Fitzgerald Europe +44 20 7894 7000
David Porter/Nick Tulloch
Gable Communications +44 20 7193 7463
John Bick srsp@gablecommunications.com
Sirius Petroleum's Strategy and the Ororo Field
The Company's strategy is to target proven opportunities and
maximize hydrocarbon production and recovery through the
acquisition of discovered assets in Nigeria, with a particular
focus on shallow water offshore areas and realise upside potential
through appraisal activities. As part of the Company's strategy,
Sirius has agreed innovative funding and operating partnerships
with global industry leaders to work together on the Ororo asset
and execute the drilling campaign to first oil.
Sirius's initial focus is on the Ororo field, which was
originally operated by Chevron in 1986. Chevron drilled Ororo-1 and
hydrocarbons were discovered in seven sandstone reservoirs (D1 to
D5, F and G). Four of the reservoirs in the original Ororo-1 well
were tested, two produced oil (D3 and G) at a combined rate of
2,800 bopd and two produced gas condensate (D4 and D5).
The Ororo field is located within OML 95 in the Niger Delta,
offshore Nigeria, in the western part of the prolific Niger Delta
petroleum system. It lies in shallow waters offshore Ondo State in
water depths ranging between 23ft and 27ft. The field is adjacent
to the Mina, West Isan, Ewan, Eko and Parabe fields, all of which
are operated by Chevron.
Sirius has a 40% economic interest under a Financial &
Technical Service Agreement and entered into a Joint Operating
Agreement ('JOA') in August 2017 with its indigenous partners Owena
Oil & Gas (100% state owned entity) and Guarantee Petroleum,
who own 27% and 33% respectively.
According to the Ororo CPR produced by Rockflow Resources
("Rockflow") and set out in the Company's admission document, it is
estimated that the Ororo-2 well will initially produce
approximately 2,700bopd of light oil and 6mmcfd of gas.
Rockflow estimates that the Ororo asset has a Mid Case Net
Present Value to Sirius (NPV10) of $96m, based on a $65 per barrel
flat real oil price for the life of the field. According to the
Ororo CPR, the mid-case gross recoverable 2C contingent resources
are 24 mmboe.
Ororo economic evaluations produced by Rockflow subsequent to
issue of the CPR:
Oil Price Gross Gross Gross Sirius Sirius Sirius
Project Project Project Project Project Project
NPV10 NPV10 NPV10 NPV10 NPV10 NPV10
US$ US$ US$ US$ US$ US$
MM Low MM Mid MM High MM Low MM Med MM High
---------- --------- --------- --------- --------- --------- ---------
65 126.5 279.4 695.2 32.9 96.1 274.3
---------- --------- --------- --------- --------- --------- ---------
70 144.6 309.1 756.9 40.9 108.9 300.9
---------- --------- --------- --------- --------- --------- ---------
Gas BOE conversion factor: 1 barrel of oil equivalent = 5800 cu
ft gas
*Under SPE Guidelines, the hydrocarbons are classified as
Contingent Resources and will convert into Reserves upon
finalisation of approvals and agreements with contractors. The
valuation methodology used by Rockflow provides for the commercial
producible resources to be defined rather than the technically
producible oil. Under the present oil price scenario this results
in a modest change for the tail end volumes in relation to the
volumetrics reported on 2(nd) June 2017
Glossary
Bopd: barrels of oil per day.
Mmboe: million barrels of oil equivalent.
Contingent Resources estimated at a certain
resource: date as potentially recoverable
from known accumulations, but which
are not currently considered commercially
recoverable.
2C: Proved and Probable Contingent Resources.
Packoff: A flexible housing used to seal
an irregular surface such as a wireline.
Tubing Hanger: A device attached to the topmost
tubing joint in the wellhead to
support the tubing string. The tubing
hanger typically is located in the
tubing head, with both components
incorporating a sealing system to
ensure that the tubing conduit and
annulus are hydraulically isolated.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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