SAVP announce this morning that the Amdigh-1 exploration well on the R3 portion odd the R3/R4 PSC area in the Agadem Rift Basin is an oil discovery. The well encountered a total estimated 22m of net oil bearing sandstones in the E1 and E2 reservoir units within the primary Eocene Sokor Alternances objective. The reservoir properties are good to excellent and the oil is light.
I am interviewing Andrew Knott this morning and will put a more detailed note out tomorrow along with a link to the interview but this makes 2/2 in Niger which is impressive and validates the original plan we saw some years ago. Whilst there are concerns about the Seven deal completing I don’t share them and the shares are increasingly looking like good if not excellent value.
Today’s RNS shows that Echo is hitting all its targets and has seemingly got the second well ‘under its belt’ with what looks like 8m of pay in the Tobifera which could be another producer. It is worth noting that this well came in at much less than anticipated cost and gives the company more scope for future campaigns, next stop well three of four.
Finals for 2017 and a Q1 update from PPC, I will update tomorrow after the analysts call this afternoon but all is humming at the company. 2017 was a transformational year particularly with the acquisition of the assets in the Nequen Basin concessions of Puesto Flores/Estancia Vieja from Chevron.
1Q 2018 has seen group turnover on course to triple after an 81% increase in 2017 and thus quarter shows positive cash generation and set to increase. Current production is 2,400 b/d and could be higher and with operating margins up due to a mixture of costs in the field down and a further attack on G&A economics keep getting better.
President has adopted the motto ‘Cash flow, profit and margins’ and is going from strength to strength.
Yet more from the mothership as Sound announce for the third day in a row. Today’s news is that they have received Environmental Impact Assessment approval for their TE-9 and TE-10 wells at the Tendrara-Lakbir permit onshore Morocco. The approval covers a total of eight wells over a broad area and enables the Company to finalise its preparations for forthcoming wells.
Again, more tomorrow but the company has announced the hiring of the BD-260 rig from B Robotics W for six months to complete the planned workover and drilling activities in the Zardab and Muradkhanli fields in Azerbaijan . The rig replaces the ZJ-30 that was under negotiation and will complete the Z-21, do production tests and drill deeper beyond the Maykop into the Eocene and Upper Cretaceous formations if necessary. After that it is Z-28,Z-3 and MOC-1 for cleaning up and producing. Zenith now has the wherewithal to deliver from these key wells and it should be an exciting ride in the coming months.