LONDON (Alliance News) - Niger-focused oil and gas company Savannah Petroleum PLC on Wednesday said it has received an upgrade to the resource estimate for the R1/R2 licence area in the West African country and said the guidance for the Agadem Rift Basin export pipeline tariff has been cut.
Savannah said a report from CCG Robertson has increased the best estimate gross risked prospective oil resources to 1,191 million barrels of oil from 573 million barrels.
CCG also estimated a gross mean risked recoverable resource volume on Savannah's prospects of 259 million barrels, compared to Savannah's 215 million estimate.
In addition, Savannah said it has received an update from the Niger Ministry of Energy and Petroleum which indicates the estimated tariff for the Agadem Rift Basin export pipeline will be USD16 per barrel, down from USD18 per barrel previously.
"It is highly encouraging for our stakeholders that CGG's assessment of the size of the R1/R2 prize continues to increase and that they have validated our assessment of the potential size and risk profile of our previously announced drill ready prospect inventory," said Savannah Chief Executive Andrew Knott.
Savannah shares were up 2.0% to 39.00 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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