TIDMPRD
RNS Number : 8245X
Predator Oil & Gas Holdings PLC
02 May 2019
2 May 2019
Predator Oil & Gas Holdings Plc
("Predator" or the "Company" and together with its subsidiaries
"the Group")
Licensing Option 16/30 offshore Ireland Technical Update ("Ram
Head")
Competent Person's Report ("CPR") Prospective Resources
Audit
by SLR Consulting (Ireland) Ltd
Highlights
-- CONCEPTUAL RAM HEAD P50 GAS FIELD DEVELOPMENT IS FEASIBLE
WITH MINIMUM OF 10 WELLS TO BE COMPLETED IN 3 GAS ZONES
-- POTENTIAL ULTIMATE TECHNICAL GAS RECOVERY BY DEPLETION DRIVE
OF 96%, REPRESENTING 1.773 TCF OF GROSS RESOURCES
-- INITIAL PRODUCTION PLATEAU ESTIMATED AT 400 MM CFGPD
-- DEVELOPMENT OPTIONS INCLUDE 40KM 24" PIPELINE TO OF EXISTING
KINSALE FIELD PIPELINE OR 75KM 20" PIPELINE TO EXISTING INCH
ONSHORE TERMINAL
-- TECHNICALLY FEASIBLE TO RE-ENTER 49/19-1 MARATHON GAS DISCOVERY
AT AN ESTIMATED TOTAL COST OF $20.2 MILLION TO FLOW TEST 3 GAS
ZONES
-- STRONG INDIGENOUS MARKET FOR GAS
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company, with a portfolio of upstream gas assets adjacent
to European gas infrastructure entry points, is pleased to provide
a Prospective Resources update and Conceptual Gas Field Development
Plan for Ram Head in Licensing Option 16/30, offshore Ireland.
Licensing Option 16/30 is operated by Predator Oil and Gas
Ventures Ltd. (POGVL 50%), a wholly-owned Predator Oil & Gas
Holdings Plc subsidiary, on behalf of its partner Theseus Ltd.
("Theseus" 50%).
Reservoir Deliverability and Impact on Resource Estimates
Wireline neutron-density logs show a gas effect over a gross
Middle and Upper Jurassic interval of 270 feet in discovery well
49/19-1, drilled by Marathon in 1984/5, with about 80 feet of
potentially productive sand. The potential gross gas column could
reach 400 feet. This was not tested at the time in 1984 because
there was no commercial incentive for Marathon. Marathon's Kinsale
Gas Field fully catered for the Irish gas demand and there was no
interconnectors with the UK for export.
NuTech detailed petrophysical evaluation of these gas reservoirs
using "Shale Vision" and "Thin Bed Vision Analysis with Fracture
Intensity Vision" software highlighted missed reservoir "sweet
spots" with average permeability of 56 mD and capable of producing
hydrocarbons at good rates.
Independently Esso well 49/14-3 (28 kms to the northeast)
provides reservoir quality information from core data for the
Middle to Upper Jurassic sands at a burial depth similar to 49/19-1
(Ram Head). Sands with gas shows in this well have porosities up to
13% at 11,300 feet. The reservoir quality observed in 49/14-3 is
consistent with the NuTech log analysis results from
49/19-1.Comparison with 49/14-3 also shows that around 150 feet of
potential gross reservoir section is faulted out in 49/19-1.
The previously reported range of gas initially in place ("GIIP")
for these Jurassic reservoirs in the 140 km(2) Ram Head Marathon
gas discovery are as follows:
Low Estimate Best Estimate High Estimate
GIIP 100% Gross 392.6 BCF 1,451.0 3,653.2 BCF
BCF
------------- -------------- --------------
GIIP 50% Net 196.3 BCF 725.5 BCF 1,826.6 BCF
------------- -------------- --------------
Conceptual Ram Head P50 Gas Field Development
The independently validated new reservoir quality information
facilitated the commissioning of a Conceptual Ram Head P50 Gas
Field Development Study. The data allowed an assessment to be made
of reservoir performance, gas well hydraulic performance, and
hydraulics of the pipeline to the nearest platform together with
potential gas compression requirements. This exercise had never
been previously attempted due to insufficient information and a
lack of analysis of reservoir quality using new technology.
The study shows that the Ram Head gas discovery can be developed
with a minimum number of 10 vertical wells completed in 3 gas
zones. It is expected that the gas will most likely be produced by
a depletion drive mechanism with an Ultimate Technical Gas Recovery
of 96% based on a gross GIIP volume of 1,834 BCF.
The initial plateau gas production rate by 10 production wells
is estimated to be 400 mm cfgpd. The study also shows that the
reservoir pressure is sufficient to deliver gas to the Kinsale
platform at 35 psia and hence gas compression will not be
required.
Conceptual 49/19-1 Well Re-entry Feasibility Study
A separate independent study to assess the technical
feasibility, cost and risks associated with re-entering and
separately testing 3 gas-bearing zones in the Middle and Upper
Jurassic in the 49/19-1 well has shown that it is technically
feasible. The total cost is estimated to be $20.2 mm. The re-entry
and testing of the 49/19-1 well achieves the same objective as a
new appraisal well, namely better definition of expected flow rates
and therefore resources; the potential for depletion; and of the
potential for reservoir compartmentalization.
Kinsale Gas Field Decommissioning
Decommissioning plans for the Kinsale platform, owned and
operated by PSE Kinsale Energy are well underway and under the
current scenario, all offshore facilities will be removed, and the
Inch terminal returned to agricultural use. However it is expected
that the application will seek that the 55km 24" offshore pipeline
that connects the Kinsale field to shore may be left in situ.
Conceptual Development Scenario
It is currently envisaged that the 10 development wells would be
tied by 4" flow lines to a subsea manifold, which in turn would be
connected by a 40km 24" pipeline either to the end of the existing
offshore Kinsale pipeline, or to a new 75km 20" pipeline that could
be laid directly to the current landfall of the Kinsale pipeline at
Inch. This latter case is considered to be the preferred
development option as it would minimise the length of umbilical
needed to power and control the subsea wells. At this time
reservoir pressures are considered to be high enough to preclude
the need for offshore compression.
Both the above development scenarios require the Inch Terminal
to be retained for future use and not decommissioned. At this time,
one half of the Inch Terminal is owned by PSE Kinsale Energy (owned
by PETRONAS) and one half by Gas Networks Ireland (owned by Ervia).
Discussions on the future of the Inch Terminal have been held with
some of the relevant parties.
Irish Gas Market
In the median demand scenario annual Republic of Ireland gas
demand is expected to grow by 23.7% between 2017/18 and 2026/27
with growth of 6.7% and 36.8% forecast in the low and high demand
scenarios respectively over the same period (Gas Networks Ireland
2018).
By 2026/27 Corrib gas supply will have declined to less than one
third of initial peak production levels. Energy Security of Supply
as Corrib production declines in the medium term will continue to
depend upon the Moffat entry point if new sources of indigenous gas
are not discovered, developed and brought on production.
In summary there is a strong indigenous market for gas with the
potential to export to the United Kingdom in the event of surplus
supplies if large discoveries are made and developed.
The International Energy Agency ("IEA") recommends, in its 2019
review of Ireland's Energy Policy that the Irish government should
continue to promote exploration opportunities while ensuring that
these opportunities lead to successful production.
Purbeck Oil Resources
The previously reported range of the oil resource for the
Purbeck reservoirs in the 123 km(2) Ram Head Marathon 49/19-1
structure are as follows:
Low Estimate Best Estimate High Estimate
100% Gross 64 MMbls 189 MMbls 493 MMbls
------------- -------------- --------------
50% Net 32 MMbls 95 MMbls 247 MMbls
------------- -------------- --------------
The Purbeck Oil resource at Ram Head is considered to be a
Contingent Resource based on the view that the poor result of DST 2
in 49/19-1 was due to formation damage caused by high mud weight
required to balance formation overpressure whilst drilling the
well. The resource is still under evaluation and requires
significant further appraisal to clarify the potential for
development. A 49/19-1 well re-entry to test the deeper gas also
creates an opportunity for an extended flow test of the Purbeck oil
reservoirs.
Paul Griffiths, Chief Executive of Predator, commented:
"The independent Competent Person's Report represents a
significant milestone in demonstrating for the first time the
potential for the Jurassic gas reservoirs present in the 49/19-1
discovery well to be able to deliver gas flows at significant
rates. The next step is to confirm the actual well deliverability
through a re-entry of the well and to conduct tests over 3 gas
zones to address the vertical and lateral connectivity of the
reservoirs. Whilst no-one underestimates the significant technical,
commercial, environmental and regulatory challenges that lie ahead,
the confirmation of the potential size of the gas resource combined
with a simple and clear development concept serve to further
illustrate why Ram Head is currently Ireland's largest undeveloped
gas resource. As such it warrants further evaluation combined with
an intensified effort to attract drilling partners for a re-entry
of the well, subject to regulatory approvals and consents. This is
a cost effective and novel method of assessing the development
potential of Ram Head without requiring a new appraisal well to be
drilled."
This announcement contains inside information for the purposes
of Article 7 of the Regulation (EU) No 596/2014 on market abuse
Enquiries:
Predator Oil & Gas Holdings Tel: +44 (0) 1534 834 600
Plc
Paul Griffiths, Chief Executive
Officer
Sarah Cope, Non-Executive Chairman
Novum Securities Limited Tel: +44(0) 207 399 9425
Broker
Jon Belliss
Notes to Editors:
Follow us also on VOX Market
https://www.voxmarkets.co.uk/
Notes to Editors:
Predator is an oil and gas exploration company with the
objective of participating with FRAM Exploration Trinidad Ltd. in
further developing the remaining oil reserves in the producing
Inniss Trinity oil field onshore Trinidad, primarily through the
application of C02 EOR technology. Potential for cash flow exists
by executing a Pilot Enhanced Oil Recovery project using
locally-sourced carbon dioxide for injection into the oil
reservoirs ("C02 EOR"). Near-term expansion and growth potential is
focussed on upscaling the C02 EOR operations in the Inniss-Trinity
oil field and potential acquisitions of assets suitable for C02 EOR
development, subject to all necessary approvals.
In addition, Predator also owns and operates exploration and
appraisal assets in current licensing options offshore Ireland, for
which Successor Authorisations have been applied for, adjoining
Shell's Corrib gas field in the Slyne Basin on the Atlantic Margin
and east of the Kinsale gas field and Barryroe oil field in the
Celtic Sea.
Predator is operator of the Guercif Petroleum Agreement onshore
Morocco which is initially prospective for Tertiary gas in
prospects less than 10 kilometres from the Maghreb gas
pipeline.
The Company has a highly experienced management team with a
proven track record in the oil and gas industry.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDGMGGKZMFGLZZ
(END) Dow Jones Newswires
May 02, 2019 02:00 ET (06:00 GMT)
Predator Oil & Gas (LSE:PRD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Predator Oil & Gas (LSE:PRD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
