IR Update today13 Jan 2022 20:05
Q. It was mentioned that the SIMBA field was being fast tracked development (Tullow 57% Licence), which would result in an extra 7k - 14K increase in Gross BOPD. Has this been achieved/ or still on target to meet this target? if so, what is the likely month this will be met?
A. The Simba expansion project has made good progress with a successful infill well brought onstream in September 2021. In the webinar Rahul mentioned the field producing c.7 kbopd (gross) and targeting c.13 kbopd (gross) as a result of the expansion project. This is expected to be realised in 1Q22.
Q. Also in the webcast, Tullow were looking to have a 2nd RIG for Ghana later this year, is this still the case? If so what month could we expect this to be started?
A. Yes, a second rig is still a consideration, but the earliest would be towards the end of the year. I couldn’t second guess which month that will be or if it would be at the start of 2023 yet.
Q. Late last year, we pre-empted the back in rights for Jubille/TEN, are we any nearer to this Agreement being signed off?
A. I can’t speculate on the timeframe at the moment, but we are keen to keep the momentum on this to reach completion as soon as possible. We would be obliged to release this when it happens.
Q. It was mentioned in the Webinar that The Ghanian authority were claiming $471 Million, which Les/Rahaul had visited the country in October to discuss this. I haven't heard any updates with this? Is the settlement looking to be anywhere near being agreed in 2022?
A. The Group continues to dispute the validity of the assessments and is evaluating what steps may be required in addition to the existing dispute process. At this stage there isn’t any more information I can provide you with but conversations are ongoing with the Government.
Q. We are still waiting for the $75 Million payment from Total, is this something which is nearer to finalisation this quarter?
A. Our cash flow assumptions for 2022 include the expected $75 million payment from Total following parliamentary approval of the Uganda FID.
Q. In the webinar Rahaul mentioned that the Farm in market was still not as active as previous up-turns, but hoped it would be back up too some sort of interest in 2022. Are we seeing an increased level of M&A in the oil and gas sector, and are we seeing some interested parties come forward for the farm-down of Guyana drill later this year? Could you remind me of the expected drill date for this well (if the operator has set out a date)?
A. It is early days, but there does seem to be more activity generally. In Guyana, the Respol operated Beebei-Potaro well is scheduled to spud in the second quarter of 2022.
Q. I see in the news that the port of Mombasa have a new port terminal being built, is this something which could be used for any future Kenya oil exports? As currently the port of Lamu is being talked about for the oil pipeline?
CONT’D
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