Roc Oil Downgrades BMG Project's 2P Reserves
Roc Oil, as operator of the Basker-Manta-Gummy ("BMG") project, has obtained preliminary results from its first integrated full field reservoir simulation model of the Basker and Manta reservoirs. The reservoir modelling incorporates relevant development and production data over the life of the field. This review is subject to further sub-surface modelling and development optimization work, and it should also be noted that the BMG Joint Venture is yet to review the outputs of the work undertaken by ROC.
Resource Investment Strategy Consultants ("RISC") has also been engaged to independently review ROC's Basker and Manta reservoir modelling and estimated reserves. RISC's review is anticipated to be completed by the end of February 2010. The results of this work will be considered in relation to the finalization of the December 31, 2009 gross 2P Reserves for the BMG project in due course.
As a result of this work, ROC now anticipates that remaining gross 2P Reserves at the BMG project as at December 31, 2009 are likely to be reduced from approximately 18 MMBBL to between 3 MMBBL and 5 MMBBL subject to further development activity.
This will result in a reduction of the ROC Group remaining 2P Reserves by approximately 20%-25%. BMG continues to produce oil at approximately 6,000 BOPD and is anticipated to produce at an average rate of 5,000 BOPD in 2010.
Future development plans for the BMG Phase-1 Oil project and BMG Phase-2 Gas project are being evaluated.
The downgrade of the BMG project's 2P Reserves will result in an impairment of ROC's carrying value of its interest in the BMG project.
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