REG - Tower Resources PLC - South Africa update

Tower ResourcesAnnouncement

08/02/2021 07:01

RNS Number : 2262O
  
Tower Resources PLC
  
08 February 2021
  
 

8 February 2021
 
 
Tower Resources plc
 
("Tower" or the "Company")
 
South Africa update
 
Tower Resources plc (TRP.L, TRP LN), the AIM listed oil and gas company with its focus on Africa, is pleased to announce that its subsidiary Rift Petroleum Ltd ("Rift") has received updated resource estimates from its 50% partner and license Operator, New Age Energy Algoa (Pty) Ltd ("New Age"), following NewAge's interpretation of the reprocessing of additional 2D seismic data covering the Algoa-Gamtoos license, offshore South Africa.
The reprocessing work encompassed 4,500 line kms of 2D seismic data incorporating both data already owned by the partners and also further data acquired from the Petroleum Authority of South Africa ("PASA") including tie lines from Brulpadda to the Algoa-Gamtoos area, together with two post-stack merged 3D seismic surveys in the Algoa Basin. The work was undertaken by PGS and the focus was on creating a time and phase matched dataset covering the Gamtoos Basin and the Deepwater (Outeniqua basin) section of the license area.
The resulting seismic dataset shows an overall improvement in bandwidth, de-noise and imaging. Structural imaging is substantially sharper than in the previous vintage dataset, gathers are significantly flatter with less noise, and the Operator places greater confidence in the Amplitude Versus Offset ( AVO) analysis.
The impact on what can be seen in the Deepwater (Outeniqua basin) section of the license is especially pronounced, allowing the Operator to identify a deeper level slope (as seen at Brulpadda) and three separate reservoir targets:
·    A shallow section which was previously identified by the Operator, whose size is now estimated to be slightly larger, to which the Operator ascribes 470 million boe Pmean recoverable resources (unrisked);
·    A deeper slope section which was not previously identified by the Operator, to which the Operator ascribes 231 million boe Pmean recoverable resources (unrisked);
·    A basin floor fan section which was not previously identified by the Operator, to which the Operator ascribes 710 million boe Pmean recoverable resources (unrisked);
In addition, the Operator has been able to identify a new substantial lead in a submarine fan complex in the shallow-water Gamtoos area of the license, which it estimates to contain 135 million boe Pmean recoverable resources (unrisked); and has updated its estimates of the recoverable resources in the other leads it has already identified, some of which now appear larger and others smaller. Overall, the Operator has increased the portfolio volumes by 54% as a result of reprocessing seismic data and reinterpretation.
The Operator's most recent estimates of the in-place and recoverable resources, prepared in accordance with the SPE-PRMS classification standard, are set out in detail in the tables below:







Oil in Place (MMbbl)




Lead


P90


P50


P10


Mean




Reedbuck


110


288


624


336




Steenbok


34


124


381


174




Lead 1


40


210


853


356




Roan


89


322


1275


558




Canyon


25


84


207


103




Deepwater Slope


Shallow


377


1,093


2,954


1,444




Deep


111


349


1,241


563




Deepwater Basin Floor Fan


528


1,349


3,384


1739








Summed Mean


5,273












 







Recoverable Oil Equivalent (MMboe)


POSg


% change (Mean)




Lead


P90


P50


P10


Mean




Reedbuck


41


108


239


127


24 %


+ 48 %




Steenbok


13


46


145


66


21 %


+ 47 %




Lead 1


15


79


324


135


24 %


-




Roan


33


121


475


211


13 %


- 9 %




Canyon


8


27


67


33


32 %


- 58 %




Deepwater Slope


Shallow


122


354


961


470


12 %


+ 11 %




Deep


44


142


505


231


10 %


-




Deepwater Basin Floor Fan


210


540


1,383


710


12 %


-








Summed Mean


1,983


 



As previously noted, the Algoa-Gamtoos license is located adjacent to Total's Blocks 11B/12B, where Total has made discoveries in excess of 1 billion boe at Brulpadda and Luiperd, in the Outeniqua basin that runs across those blocks. The Algoa-Gamtoos license also contains the southern deep-water basin margin of the Outeniqua Basin and is approximately 150 kms along strike to the East of Total's Brulpadda and Luiperd-1X wells. 
The Luiperd-1X well encountered 73 meters of good quality net pay in 85 meters of gross sands in the main target interval and, according to Africa Energy which owns 49% of Main Street 1549 Proprietary Ltd (one of Total's partners in the well) the well reached a maximum constrained flow-rate through a 58/64" choke of 33 million cubic feet per day of natural gas ('MMcfpd') and 4,320 barrels of condensate per day ('bcpd'), an aggregate of approximately 9,820 barrels of oil equivalent per day ('boepd'). The choke configuration could not be increased due to surface equipment limitations. The absolute open flow ('AOF') potential of the well is expected to be significantly higher than the restricted test rates. Current indications are that the Luiperd discovery is larger than the 1 billion boe Brulpadda discovery announced in 2019.
The Company plans to update its website section on South Africa over the coming days and will make a brief announcement when this updated section has been uploaded.
 
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
 
Contacts
 



Tower Resources plc


+44 20 7157 9625




Jeremy Asher

Chairman and CEO 








 
Andrew Matharu

VP - Corporate Affairs


















SP Angel Corporate Finance LLP

Nominated Adviser and Joint Broker
Stuart Gledhill
Caroline Rowe
 


+44 20 3470 0470




ETX Capital

Joint Broker
Elliott Hance


+44 20 7392 1436














Turner Pope Investments (TPI) Limited

Joint Broker
Andy Thacker
Zoe Alexander
 


+44 20 3657 0050




Panmure Gordon (UK) Limited

Joint Broker
Nick Lovering 
Hugh Rich 
 


+44 20 7886 2500



 
 
Notes:
In accordance with the guidelines for the AIM market of the London Stock Exchange, Dr. Mark Enfield, BSc Geology, PhD Geology, a Director of Tower Resources plc who has over 30 years' experience in the oil & gas industry, is the qualified person that has reviewed and approved the technical content of this announcement.
Glossary:
Prospective Resources
Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.
P90
The estimated probability distribution of outcomes indicates that the estimated likelihood of a better outcome than this figure is 90%
P50
The estimated probability distribution of outcomes indicates that the estimated likelihood of a better outcome than this figure is 50%; this is also referred to as the Median of a probability distribution, and is not the same as the Mean, which is the probability-weighted average of the entire distribution
P10
The estimated probability distribution of outcomes indicates that the estimated likelihood of a better outcome than this figure is 10%
Recoverable
Those quantities of hydrocarbons which are estimated to be producible from accumulations, either discovered or undiscovered.
STOIIP
Stock Tank Oil Initially In Place 
Unrisked
Quantities which have not been adjusted for the probability of loss or failure (as opposed to "Risked" quantities which have been adjusted accordingly). Risk is not synonymous with uncertainty, and is generally associated with the negative outcome; the terms "chance" or "likelihood" are more generally used to describe the probability of a discrete event occurring.

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