Scirocco Energy informed the market on Friday of its oil and gas operations in Tanzania, indicating that operations were progressing on the Ruvuma PSA, where it holds a non-operated 25% stake.
The AIM-listed company said the seismic acquisition program and preparations for drilling the Chikumbi-1 (CH-1) well were underway, led by operator ARA Petroleum Tanzania (APT).
Along with ongoing seismic operations, APT has advanced planning for the CH-1 well, with all long-term contracts now executed.
Scirocco said APT has a target date for CH-1 in November.
As previously announced, revised mapping and APT internal management estimates suggested prospective gas-in-place risk for Ntorya accumulation of a gross average of 3.024 billion cubic feet in multiple lobes to test, and a potential recoverable gas at risk resource of 1.99 trillion cubic feet.
That was “considerably higher” than the joint venture’s retained resource estimate, Scirocco noted, presenting “significant” upside opportunities in the well.
At Kiliwani North, where Scirocco has an 8.39% unoperated working interest, the company noted that operator Aminex had announced that all future drilling was dependent on improved seismic resolution of potential target structures.
Additionally, the operator had agreed with Pan African Energy Tanzania (PAET) to use its high-resolution 3D seismic campaign, targeting a mid-year start-up, to receive approximately 12.5 square kilometers of new high-resolution 3D coverage.” precious” on Kiliwani North. , at no cost to the joint venture.
PAET would acquire high-resolution 3D seismic over the adjacent Songo Songo producing field, and the Kiliwani North joint venture would allow PAET to partially overlap the area to allow full processing of the new 3D dataset up to Songo Songo and Kiliwani North frontier.
Scirocco said the coverage, which was over 40% of the critical license area, would allow the operator to link the new high-resolution 3D data to its existing older 2D seismic data, which currently covered Kiliwani North with seismic “irregular”. Grid.
This, he said, should “significantly improve” both fault resolution and reservoir horizon mapping – both considered “essential” to understanding the compartmentalized nature of the reservoir.
“The operational progress made by both operators on our oil and gas assets in Tanzania represents long overdue activity on both blocks, which are significant value drivers for Scirocco shareholders,” said Chief Executive Tom Reynolds.
“We are excited about the schedule of work activities in 2022 and beyond in Tanzania and look forward to being able to further update the market on the progress of ongoing operations.”
As of 3.40pm BST, Scirocco Energy shares were down 4.76% to 0.5p.