RE: Leno Corporate Services - BPC Private Offer16 Jan 2020 21:56
Nice link Jim...thanks.
Page 34-35 is a reminder of just what this is all about...
In 2012 the Company completed a Front-End Engineering Design study for the well design, being consistent with discharging the licence obligation to drill an exploratory well targeting the shallowest prospective horizons and with drilling equipment
capable of reaching depths of at least 18,000 feet. To all intents and purposes this meant that, having completed a significant amount of preparatory work, the Company regarded the prospect as ‘drill-ready’. However various ‘above ground’ issues pertaining to the establishment of a New Petroleum Act and the New Petroleum Regulations (as detailed further in the Legislation & Regulatory Environment section above) resulted in a delay to the implementation of these plans.
During the period of this delay, the Company invested considerable additional efforts into a range of technical work focused on the Southern Licences. This work further established the presence and robustness of the petroleum systems, and assessed and sought to mitigate individually source rock interval and maturity, trap formation, oil migration, reservoir and seal risks. This work included analysis of fluid inclusion and oils collected from the region, determining multiple pulses of oil migration from differing source rock intervals, all determined to be in the oil window; an analysis of seal facies and distribution linked to vertical seismic anomalies to determine trap/seal integrity across the prospective structures; seismic inversion to aid determination of reservoir-seal pairs; and, a detailed seismic interpretation to test fault independent closure thus mitigating trap risk. Much of this work has been tested and validated through the farm-in process with a wide range of industry majors and large independents.
As a result of this and earlier work BPC determined that the Southern Licences contained considerable oil potential, and in 2017 the Company engaged Moyes & Co, an international petroleum industry consultancy, as external technical experts to conduct an independent audit of BPC’s own assessment of the total petroleum system and prospect portfolio utilising the full range of the Company’s exhaustive database (the “Moyes Report”). The key findings of the Moyes Report were as follows:
Stock Tank Oil Initially in Place (“STOIIP”) assessed for the prospect structures as 8.4 billion barrels, with an upside of up to 28 billion barrels;
Applying a recovery factor in the range of 20 – 40 per cent. to the Moyes STOIIP volumetrics would result in an unrisked Estimated Ultimate Recoverable (“EUR”) in the range of 1.6 billion to 3.3 billion barrels (mean), and up to 11 billion barrels (upside); and,
Moyes & Co. independently calculated the probability of success (“PoS”) factors for each of the stacked reservoirs assessed, the majority of which were calculated in the 25 – 35 per cent range.
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