MX Oil PLC Update on the Aje Field (6632M)
May 01 2018 - 1:00AM
UK Regulatory
TIDMMXO
RNS Number : 6632M
MX Oil PLC
01 May 2018
1 May 2018
MX Oil / Ticker: MXO / Index: AIM / Sector: Oil & Gas
MX Oil plc ("MX Oil" or the 'Company')
Update on the Aje Field
MXO plc, the oil and gas investing company listed on AIM, is
pleased to provide an update with regard to OML 113, the offshore
licence in Nigeria, in which it has an investment. The Aje Field
within the OML 113 licence area commenced production in 2016. On 5
February 2018, the Company announced that it would be updating its
Competent Persons Report ("CPR") as a result of the production data
that had been generated to date. The Company is pleased to announce
the results from the updated CPR.
There have been significant developments in the Aje project over
the past two years that have had a material impact on the project's
reserves and resource position. Since the last CPR in July 2014,
three new Cenomanian penetrations have been drilled (Aje-5,
Aje-5ST1 and Aje-5ST2), with production coming on-stream from the
Cenomanian reservoir in May 2016 and from the Turonian oil rim in
May 2017. A field development plan for the Turonian Aje gas project
("FDP") was submitted to the Nigerian Government for consideration
in 2017. The FDP comprises four to five production wells in the
Turonian, tied back to existing and new infrastructure.
The revised CPR has been completed by AGR TRACS International
Limited ("AGR TRACS"). This is an update to the CPR prepared by
them in July 2014 and incorporates all developments and new data
generated by the project since that date. Reserves and contingent
resources reported in this latest CPR and from the 2014 CPR are
summarised below.
Reserves 2018 2018 2014 2014
Gross Net entitlement Gross Net entitlement
to MXO to MXO
------ ---------------- ------ ----------------
MMboe MMboe MMboe MMboe
------ ---------------- ------ ----------------
1P Proven Reserves 78.2 5.0 11.7 0.7
------ ---------------- ------ ----------------
2P Proven and Probable
Reserves 127.1 8.2 23.4 1.3
------ ---------------- ------ ----------------
3P Proven, Probable and
Possible Reserves 215.0 12.7 - -
------ ---------------- ------ ----------------
The level of reserves have increased significantly since the
2014 CPR.
These estimates of reserves have been derived based on an oil
price assumption of US$60/bbl flat Real Terms and a gas price
assumption of US$4.00/Mscf flat Real Terms. Condensate is assumed
to achieve the same price as oil and LPGs 65% of the oil price
expressed in US$/bbl.
AGR TRACS has also certified gross 1C Unrisked Contingent
Resources of 4 MMboe, 2C Unrisked Contingent Resources of 9 MMboe
and 3C Unrisked Contingent Resources of 17.5 MMboe. MX Oil's net
entitlement is respectively 1C Unrisked Contingent Resources of
0.20 MMboe, 2C Unrisked Contingent Resources of 0.45 MMboe and 3C
Unrisked Contingent Resources of 0.88 MMboe. All these Contingent
Resource volumes are expressed as unrisked technically recoverable
volumes without any economic cut-off, as the development plans are
still in progress.
The recent performance of the Aje-5ST2 well completed on the
Turonian oil rim has encouraged the Aje partnership to consider a
more extensive development of this oil rim. Since the Aje Gas FDP
was completed and submitted ahead of this well coming on line, AGR
TRACS has only been able to recognise contingent resources
associated with four horizontal wells proposed as a Phase 2
development in that plan. The encouraging production performance
for the Aje-5ST2 well so far provides a strong incentive for
further studies to better understand how the oil rim can be
optimally developed.
These results confirm the commerciality of the Aje gas
development, highlight the need for a revision to the development
plan once the oil rim studies are completed and will underpin a
final investment decision on the development of the Turonian
reserves in the future.
MX Oil's classification of reserves and resources are based on
the definitions set by the Petroleum Resources Management System
(PRMS-2007), sponsored by the Society of Petroleum Engineers/World
Petroleum Council/American Association of Petroleum
Geologists/Society of Petroleum Evaluation Engineers
(SPE/WPC/AAPG/SPEE) as issued in March 2007.
This announcement has been reviewed by Dr Mike Wynne, on behalf
of AGR TRACS, who is VP of Reservoir Management for AGR TRACS
International Ltd and who is a reservoir engineer and SPE member
with more than 30 years of experience in Africa, FSU, Middle East,
and NW Europe. The announcement has also been reviewed by Nigel
McKim, COO of MX Oil plc, who is a petroleum engineer and SPE
member with more than 30 years of experience in field development
planning and production.
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.
Stefan Oliver CEO said:
"The revised CPR clearly demonstrates the potential of the Aje
Field and the level of resources and reserves that are potentially
available. I look forward to updating the market as the various
studies underway progress."
* * ENDS * *
For further information please visit www.mxoil.co.uk or
contact:
MX Oil PLC
Stefan Olivier, CEO +44 20 7710 9618
Cairn Financial Advisers
LLP
(Nominated Adviser)
Jo Turner/James Caithie +44 20 7213 0880
Cornhill Capital
(Broker)
Nick Bealer +44 20 7710 9612
Glossary of key terms
Mscf Thousand standard cubic feet
MMboe Million barrels of oil equivalent
-------------------------------------------------
LPGs Liquid petroleum gas
-------------------------------------------------
Condensate Liquid phase of the gas produced by condensation
at standard conditions
-------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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