REG - Wildcat Petroleum - Reconnaissance Permit Agreement obtained

Wildcat PetroleumAnnouncement

09/05/2022 07:00

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RNS Number : 7047K  Wildcat Petroleum PLC  09 May 2022

9 May 2022

Wildcat Petroleum Plc

("Wildcat" or the "Company")

Reconnaissance Permit Agreement obtained for 20 blocks off-shore Sierra Leone

 

Follow the link to view the announcement in full including all figures:

http://www.rns-pdf.londonstockexchange.com/rns/7047K_1-2022-5-8.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7047K_1-2022-5-8.pdf)

 

Wildcat Petroleum plc (LSE: WCAT), a company targeting investment
opportunities in business and assets within the upstream sector of the
petroleum industry, is pleased to announce that after a process of engagement
with the Petroleum Directorate of Sierra Leone (PDSL) it has entered into a
Reconnaissance Permit Agreement (Permit) over 20 offshore petroleum blocks in
Sierra Leone territorial waters comprising a total 24,000 square kilometres.
This Permit grants WCAT a non-exclusive right to conduct reconnaissance
operations within the relevant blocks for the period of six months from the
start of the Agreement.

 

The Company will carry out a desktop study using geophysical and geological
data already acquired in the offshore domain. The objective being to identify
those blocks which have the potential to yield commercially viable oil finds.
The Permit is non-exclusive and gives WCAT no pre-emptive rights over any of
the acreage covered by the Permit. If block(s) with the potential of
containing commercially viable oil discoveries are identified then WCAT
intends to enter negotiations with the PDSL for a Petroleum Exploration and
Production Licence(s). The study area covers acreage that contains two
uncommercial oil discoveries (Mercury and Jupiter by Anadarko and partners
Tullow & Repsol). Other companies, such as Mobil, Amoco & Lukoil who
have also drilled exploration wells in Sierra Leonean waters, have seen
hydrocarbon shows in their wells. Out of the 8 wells drilled to date, 3 are
sub-commercial discoveries and 3 have hydrocarbon shows.

 

This indicates that there is a working petroleum system in the offshore.
However, the failure to discover commercial quantities of oil, combined with
falling oil prices caused companies to subsequently relinquish their blocks.

 

In the period since these blocks were relinquish billions of barrels of oil
resources have been discovered in the Cretaceous fans beneath the deep waters
of the Guyana-Suriname Basin in South America Ð which can be linked
tectonically & litho-stratigraphically with the conjugate Sierra Leone
Basin. As testimony to the hydrocarbon potential of deep water acreage
(specifically deep water fans), we can also note that two exploration wells
were drilled this year in Namibian waters by Shell and by TotalEnergies, both
discovering what the companies expect to be billions of barrels of oil
resources in these types of Cretaceous deep water fans.

 

Regarding the potential of the Cretaceous deep water plays off Sierra Leone,
we can also note that African Petroleum estimated, from 3D seismic data over
their (now relinquished) deep water blocks, Prospective Resources of ~ 2.5
billion barrels in a number of large stacked fans. These fans are in what are
now, following a reorganisation of blocks onto a rectangular grid in 2018,
Blocks 130 and 131 and we would hope to recognise similar fans along the same
Ôfoot of slope/basin floor fanÕ trend in our study area.

 

We can also note that petroleum exploration (off the passive margins of
Africa, South America etc) is increasingly turning to ultra-deep waters (>
2500m water depth)  where the potential to find billion barrel oil resources
in unconfined toe of slope/basin floor fans is recognised e.g. Westwood
GlobalÕs 2018 analysis of  drilling and success on the Central Atlantic
Margin between 2007 (when Jubilee was discovered in Ghana) and 2018 discusses
the lessons learnt from drilling this margin (ie modest success in many
countries to date) but points out that only 12 wells out of 128 studied had
been drilled into the ÔBasin FloorÕ (i.e. Toe of Slope) but that these
accounted for > 50% of the total discovered resources and have the highest
success rates.

 

Based on its preliminary analysis; the abundance of data and recent
discoveries indicating billions of barrels of oil resources along the West
African coastline as well as similar finds in South American conjugate basins,
WCAT believes that the offshore Sierra Leone blocks in our study area could
offer the company an exciting and economical way to access a share of
potentially billions of barrels of oil resources.

 

A preliminary summary of the geology and potential of the Sierra Leone Basin
(using information in the public domain) will be loaded to WCATÕs website
subsequent to the publication of this RNS. It will also outline other
potential plays in the deep water domain.

 

The map below shows the 20 blocks (Blocks 72, 73, 91, 92, 110, 111, 112, 128,
129, 132, 144, 145, 146, 147, 148, 149, 150, 162, 163 & 164) in Sierra
Leone territorial waters, in red, to which the Permit relates. The base map is
from PDSL and shows the concessions offshore as of April 2022. Blocks referred
to above have been outlined in red by WCAT. The 2500m bathymetric line is in
purple and can be regarded as defining the foot of the present-day continental
slope.

 

Figure 1

 

It is the intention of the Company to analyse geological/geophysical data over
our study area - taking into account learnings from recent deep water
discoveries in South America, Namibia etc - in order to identify blocks with
the greatest potential.

 

Mandhir Singh, Wildcat Petroleum Chairman, commented: ÒIn its quarterly
review (01/04/22) the companyÕs management restated its aim in the current
high oil price environment to complete a deal which would transform WCAT into
a profitable, debt free, dividend paying Oil Company. The extent of the blocks
covered by the Sierra Leone deal indicates WCATÕs ambition and the size of
assets it is trying to secure. Although the Sierra Leone endeavour is an
exploration project the CompanyÕs top priority is to a secure a stake in a
producing asset(s) with resources in the billions of barrels.

 

Enquiries:

 Wildcat                               groberts@wildcatpetroleum.co.uk

 Glyn Roberts
 Guild Financial Advisory              ross.andrews@guildfin.co.uk

 Ross Andrews
 Yellow Jersey (Investor Relations)    +44 (0)20 3004 9512

 Tom Randell                           wildcat@yellowjerseypr.com

 

Notes to Editors:

Wildcat Petroleum (LSE:WCAT) is listed on the Standard Segment of the Official
List, with shares traded on the main market of the London Stock Exchange. WCAT
is seeking to acquire a business operating in the upstream sector of the
petroleum industry - namely exploration, appraisal, development and production
of oil and gas, with a primary focus on assets that are at the later phases of
exploration and production.

https://www.wildcatpetroleum.co.uk/ (https://www.wildcatpetroleum.co.uk/)
 

Notes to Editors:

 

1.   Reconnaissance licence/permit: preliminary prospecting for hydrocarbons
through regional, aerial geophysical or geochemical surveys or geological
mapping.

2.   Each complete Block offshore Sierra Leone is ~ 1360 square kms. The
Permit covers 16 whole Blocks and 4 part Blocks (the part Blocks being 149,
150, 163 and 164).

3.   A conjugate basin is a basin that is connected/related to another. In
the case of the Sierra Leone Basin and the Guyana-Suriname Basin of South
America, the basins were separated by rifting and plate tectonic processes.

 

 

 

 

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