Savannah Petroleum announced Wednesday that its resource estimate on Niger’s R1/R2 license area has doubled, following an independent assessment by CGG Robertson.
CGG increased R1/R2 best estimate gross risked prospective oil resources from 573 million barrels of oil, a figure submitted in a Competent Persons Report published in July 2014, to 1.191 million barrels. CGG also assessed the size and risk profile of fourteen of Savannah's previously announced 3D-seismic backed drill-ready exploration prospects in Niger. These prospects were deemed to contain a gross mean unrisked recoverable resource volume of 259 million barrels of oil, instead of Savannah's estimate of 215 million barrels.
Savannah Petroleum CEO Andrew Knott commented in a company statement:
"It is highly encouraging for our stakeholders that CGG's assessment of the size of the R1/R2 prize continues to increase and that they have validated our assessment of the potential size and risk profile of our previously announced drill ready prospect inventory. Equally as important is the progress we have made in better delineating ARB development economics. Overall, CGG's work supports our view that R1/R2 is potentially a large, relatively low risk and low cost asset.
"As a company we remain focused around accelerating the exploration, appraisal and anticipated future development of R1/R2. We continue to anticipate the introduction of a partner in the second half of the year, with all other required workstreams expected to have been substantially completed in 2H to ensure operational readiness for recommencement of exploration activities on the permit by the end of the year. Today's update is further cause for confidence in Savannah's future and we thank our stakeholders for the support we have been shown to date."
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