MX Oil notes increase in gross reserves at Aje field offshore Nigeria

MXO plc, an oil and gas investing company quoted on AIM, provides additional information in relation to its updated CPR and its announcement of 30 April 2019.

The revised CPR produced by AGR TRACS International Limited (“AGR TRACS”), which was received by the Company in April 2019 (“2019 CPR”), updates reserves estimates for the Cenomanian and Turonian reservoirs using the Aje-4 and Aje-5ST2 production history from May 2016 to 31 December 2018.  The Company’s 2018 CPR was prepared to 31 December 2017. During 2018, the wells performed better than previously expected.

The Cenomanian and Turonian production anticipated from the Aje-4 and -5ST2 wells during 2019-2021 is classed as “Reserves – Developed Producing (“DP”)”, while any oil production forecast from these two wells beyond 1 January 2022 is dependent on Turonian gas development commencing production when the condensate stream will help support the costs of the oil FPSO. The anticipated gas/condensate/LPG production from the Turonian development as well as any further oil production from Aje-4 and -5ST2 are considered as “Reserves – Justified for Development (“JD”)”.

As a result AGR TRACS reports that the gross (100%) 2P Reserves (DP + JD) in the Aje field, OML 113, offshore Nigeria are estimated at 138.2MMboe based on an oil and condensate price of USD$60/Bbl, a LPG price of USD$39/Bbl, and a gas price of USD$4/MMBtu. As a result of the Company’s interest, which equates to approximately 6.4% for calculating its net reserves, the 2P net reserves attributable to the Company are estimated at 8.9MMboe. The corresponding gross (100%) 1P Reserves and net attributable 1P Reserves are estimated at 82.4MMboe and 5.2Mmboe respectively under the same oil price scenario.

The table below summarises the increase in the Aje field reserves, and the Company’s corresponding entitlement, in the 2019 CPR with those previously announced on 1 May 2018:

 

Reserves

2019

2019

2018

2018

2014

2014

Gross

Net entitlement to MXO

Gross

Net entitlement to MXO

Gross

Net entitlement to MXO

MMboe

MMboe

MMboe

MMboe

MMboe

MMboe

1P Proven Reserves

82.4

5.2

78.2

5.0

11.7

0.7

2P Proven and Probable Reserves

138.2

8.9

127.1

8.2

23.4

1.3

3P Proven, Probable and Possible Reserves

220.8

12.8

215.0

12.7

 

In its announcement of 30 April 2019, the Company highlighted the increase in the 2P recoverable barrels of oil.  The recoverable oil is a subset of the 2P information presented above and excludes condensate, LPG and gas which form the bulk of the 2P reserves estimates (2018: 127.1 MMboe and 2019: 138.2 MMboe).  In 2018, AGR TRACS estimated the 2P recoverable oil reserve to be 2.96m bbls.  In the 2019 CPR, AGR TRACS has revised the figure to 4.73m bbls, taking account of the approximate 1.1m bbls produced during 2018, an increase of approximately 2.87m bbls. The increase in the 2P recoverable oil therefore represents a significant increase in comparison to the increase in the total gross recoverable reserves for Aje.  

The table below, as per the 2019 CPR, summarises the 100% gross reserves split between oil, condensate, LPG and gas:

 

Oil & Liquids: MMbbls

Gas: Bscf

Gross

Net Attributable to MX OIL

1P Proved

2P Proved & Probable

3P Proved, Probable & Possible

1P Proved

2P Proved & Probable

3P Proved, Probable & Possible

OML 113 Aje OIL

Developed Producing (DP)

2.05

2.25

2.43

0.10

0.11

0.12

Justified for Development (JD)

1.11

2.48

4.17

0.07

0.16

0.25

OML 113 Aje CONDENSATE

Justified for Development (JD)

10.32

17.41

27.87

0.65

1.12

1.66

OML 113 Aje LPG

Justified for Development (JD)

20.11

33.86

54.39

1.29

2.20

3.14

OML 113 Aje DRY GAS (Bscf)

Justified for Development (JD)

292.7

492.8

791.9

18.8

32.1

45.7

TOTAL, Mmboe

82.4

138.2

220.8

5.2

8.9

12.8

In addition, to these results, AGR TRACS suggests that the 2C Best Estimate Unrisked Technically Recoverable Resources from these two targets are 9.00MMbbls, and the corresponding Unrisked Technically Recoverable Resources Net Attributable to MX Oil are estimated at 0.45MMbbls. The 2C Risked Technically Recoverable Resources Net Attributable to MX Oil are estimated at 0.20MMbbls.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 and the person who arranged for release of this announcement on behalf of the Company was Stefan Olivier, Chief Executive Officer of the Company. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

 

Source: MX Oil

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