SCIR have a positive view2 Feb 2022 09:08
SCIR have included an update in their RNS today:
Tanzania Operations
Operational activities under the Ruvuma PSA in Tanzania, where Scirocco Energy owns a legacy 25% working interest, have progressed under the supervision of operator, ARA Petroleum Tanzania ("APT"):
· Seismic camp fully constructed, and the contractor Africa Geophysical Services Limited ("AGS") is completing the mobilisation of all necessary equipment to site. This work is expected to be completed by mid-February;
· Acquisition of the 338km2 3D seismic survey will commence upon full equipment mobilisation;
· The 3D seismic survey is an integral step in progressing and de-risking the Ntorya gas discovery ahead of the drilling of the Chikumbi-1 ("CH-1") well;
· The seismic acquisition and subsequent interpretation will seek to refine and confirm the exploitable gas resources of the Ntorya field. Additionally the survey will provide greater clarity of the potential upside of the discovery as identified by the operator APT, through a re-interpretation of the existing 2D seismic dataset. APT's revised mapping and internal management estimates suggest a risked prospective gas in place ("GIIP") for the Ntorya accumulation of 3,024 Bcf (gross basis, mean case), in multiple lobes to be tested, and a prospective, risked recoverable gas resource of 1,990 Bcf (gross basis, mean case); and
· APT continue to progress with well planning for the CH-1 well with key contracting now being undertaken. The operator continues to target a Q3 spud.
Commenting on the update, Tom Reynolds said "Ruvuma Operator, ARA Petroleum Tanzania, has injected energy into the operational programme and we are seeing the benefit of this engagement now. Following the award of the seismic contract in Q4 2021 and the ongoing mobilisation of the equipment to site, the Joint Venture expects to commence shooting seismic imminently. This will provide the high quality 3D definition of the subsurface in preparation for the appraisal well to be drilled in Q3 this year. An exciting time on the licence which has the potential to prove up substantial gas volumes. As Scirocco moves towards these key operational milestones we are continuing with our ongoing discussions regarding possible farm-down and divestment options, while simultaneously progressing our funding options in the event that we retain 25% interest in Ruvuma at the time of the CH-1 well."
This presents a positive view mentioning ARA injecting energy into the operational programme and an exciting time on the licence. They are continuing their talks on divestment but also progressing funding options if they retain their 25% interest.
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