("Prospex" or the "Company")
Investment Update: Receipt of Competent Persons Report
A copy of the CPR is located on the Company's website: www.prospexoilandgas.com and a summary of the findings and the Executive Summary from the CPR are set out below.
· Gross Best Estimate Technical Unrisked Prospective Resources for the Boleslaw prospect (within the Kolo Licence) are estimated at 87.1 Bscf. All estimates are expressed as reservoir gas quality at surface conditions, and include N2 and other inerts.
· The prospect comprises two objectives within the Cretaceous sequence; a Santonian objective (geological possibility of success, POSg, estimated at 40%) supported by distinct seismic amplitude anomalies, and a Deep Cretaceous target (POSg 20%) with possible amplitude indications.
· Economic assessments clearly indicated that in the case of a gas discovery with N2 content less than 50mol% a
· The economic results assuming the CHP notional development were used to interpolate indicative unrisked NPVs (based on a 10% discount rate) for the Mean resource cases under the four N2 thresholds less than 50mol%. The indicative NPVs ranged from
· The notional CHP development scenarios were based on a single well assuming production rates of 20MMscf to 40MMscf per day (3333 to 6666 boe/d)
· The economic assessment based on the AGR TRACS N2 risk profile indicated a risked EMV of
Executive Summary
In early
Following this review
Oil & Liquids: MMbbls Gas: Bscf |
Gross Technical Prospective Resources |
Net Attributable Technical Prospective Resources |
Risk Factor |
Operator |
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PROSPECT |
Low Estimate |
Best Estimate |
High Estimate |
Low Estimate |
Best Estimate |
High Estimate |
POS (%) |
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GAS (Reservoir gas quality incl. N2) - Bscf |
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Santonian |
18.1 |
31.5 |
49.4 |
8.8 |
15.5 |
24.2 |
40% |
Hutton |
Deep Cretaceous |
16.4 |
55.6 |
105.8 |
8.0 |
27.2 |
51.9 |
20% |
Hutton |
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TOTAL# |
34.5 |
87.1 |
155.2 |
16.9 |
42.7 |
76.1 |
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Table ES.1:
"Risk Factor" for Prospective Resources means the chance, or probability, of discovering hydrocarbons in sufficient quantity for them to be tested to the surface. This, then, is the chance or probability of the Prospective Resources maturing into a Contingent Resource. Where a prospect could contain either oil or gas the hydrocarbon type with the higher probability of being discovered has been listed in the table. The volumes tabulated are expressed as reservoir gas quality including N2 and other inert components, and are the estimated technically recoverable volumes without any economic cut-off applied.
"Operator" is the name of the company that operates the asset.
"Gross" are 100% of the resources attributable to the licence whilst "Net Attributable" are those attributable to the AIM company.
"Total…#" - implies totals have been derived by arithmetic summation without any probabilistic addition.
The Best Estimate Risked Technical Prospective Resources Net Attributable to Prospex are estimated at 11.6 Bscf, comprising 6.2 Bscf in the Santonian and 5.4 Bscf in the Deep Cretaceous, see Table ES.2 below. As before, these estimates are expressed as reservoir gas quality at surface conditions, and include N2 and other inerts.
Oil & Liquids: MMbbls Gas: Bscf |
Unrisked Technical Prospective Resources Net Attributable to Prospex |
Risk Factor |
Risked Technical Prospective Resources Net Attributable to Prospex |
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PROSPECT |
Low Estimate |
Best Estimate |
High Estimate |
POS (%) |
Low Estimate |
Best Estimate |
High Estimate |
GAS (Reservoir gas quality incl. N2) - Bscf |
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Santonian |
8.8 |
15.5 |
24.2 |
40% |
3.5 |
6.2 |
9.7 |
Deep Cretaceous |
8.0 |
27.2 |
51.9 |
20% |
1.6 |
5.4 |
10.4 |
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TOTAL# |
16.9 |
42.7 |
76.1 |
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5.1 |
11.6 |
20.1 |
Table ES.2:
"Total…#" - implies totals have been derived by arithmetic summation without any probabilistic addition.
There is significant uncertainty around the possible N2 content, as the database of 48 gas analyses from nearby wells suggests possible N2 contents from less than 10mol% to more than 90mol%.
N2 mol% |
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Prospex |
N2< 15% |
6.25% (3 samples out of 48) |
14% |
15% < N2 < 25% |
12.50% (6 samples out of 48) |
11% |
25% < N2 < 40% |
18.75% (9 samples out of 48) |
47% |
40% < N2 < 50% |
12.50% (6 samples out of 48) |
5% |
N2 > 50% |
50.00% (24 samples out of 48) |
23% |
Table ES.3:
Economic evaluations were carried out for a range of notional GIIP cases (10, 30, 50, 100 and 200 Bscf) based on notional production profiles and conceptual development costs for two development scenarios; the first based on conventional gas processing with N2 removal (if required) and a Low-Cal gas export pipeline of some 90km length tying into the Low Cal grid in western
The CHP results were therefore used to interpolate indicative NPVs for the Mean resource cases under the four N2 thresholds less than 50mol% listed in Table ES.3. These Mean NPVs were combined in an extensive decision tree analysis (with more than 120 outcome nodes) along with the POSg and the N2 risks in order to derive indicative Expected Monetary Values ("EMVs"), which include the potential dry hole costs and failed exploration wells with well test costs where required. The resulting EMVs are listed in Table ES.4, which demonstrate that the prospect is economically robust under both the N2 risk profiles provided in Table ES.3.
CHP developments with POSg and N2 risk scenarios |
EMV(10%) US$mln PV |
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100% of project |
Prospex net 49% |
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PLN 120/MWh |
PLN 144/MWh |
PLN 120/MWh |
PLN 144/MWh |
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AGR TRACS N2 risks |
9.7 |
14.5 |
4.8 |
7.1 |
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Prospex N2 risks |
17.1 |
24.9 |
8.4 |
12.2 |
Table ES.4: Summary of EMV estimates for CHP development cases and N2 risk scenarios
Bjørn Smidt-Olsen, (SLOAN Fellow, MSc Petroleum Exploration Studies), a managing consultant of APR Tracs, has reviewed and approved the inclusion of the material in this announcement in the form and context in which it appears.
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0207 887 1461 |
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0113 394 6600 0207 220 1658 |
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0207 469 0932 |
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0207 382 8300 |
Glossary of Technical Terms
Bscf |
Billion standard cubic feet of natural gas |
GIIP |
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MMscf |
Million standard cubic feet of natural gas |
mol% |
% by molecular weight |
POSg |
Probability of Success to find gas |
This information is provided by RNS