Sumary of Africa Oil Provides an Update for Project Oil Kenya Including a Higher Plateau Production Rate and an Independent Resources Evaluation:
- (“Africa Oil”, “AOC” or the “Company”) is pleased to provide an update for its Kenya development project incorporating Blocks 10BB and 13T (“Project Oil Kenya”).
- A higher oil production plateau of 120,000 barrels of oil per day is now planned with expected gross oil recovery of 585 million barrels of oil (“MMbbl”) over the life of the field1. This resource position has been audited by external independent auditor, Gaffney, Cline &
- Africa Oil’s best (2C) development pending contingent resource on a net working interest basis, derived from GaffneyCline’s report is 93 MMbbl2. The estimated unrisked3 post-tax net present value, using a 10% discount rate (“NPV10”), of $577 million is attributable to Africa Oil’s net 2C development pending contingent resource base.
- Story continuesAfrica Oil President and CEO, Keith Hill, commented on the statement of resources: “Together with our JV partners we have made significant progress in redesigning and optimizing Project Oil Kenya.
- Compared to the previous field development plan, we have a more economically robust project, which I am confident is more attractive to potential new partners.
- “Further InformationThe key changes to the development concept have been driven by:Incorporating the production data from the Early Oil Pilot Scheme (“EOPS”) where 450,000 bbls was produced from Amosing and Ngamia fields.
- These fields account for approximately 54% of the resource distribution, leading to greater confidence in achieving the higher end of the resource distribution range.
- Initially drilling at the crest of the field in the highest quality reservoirs prior to First Oil and optimizing the number of wells to improve pressure support to recover larger resources from the reservoir and to rapidly build up the initial production plateau.