Oryx eyes 2019 drilling on AGC Central

15 May 2018, Week 19, Issue 739

Calgary-based Oryx Petroleum expects to carry out drilling on the AGC Central licence in 2019, the company said last week in its first quarter results. Oryx is principally focused on Kurdistan but acquired a stake in the shared development area, which lies between Senegal and Guinea Bissau, in 2014. 

The company struck a deal to farm-out its 30% stake in the Haute Mer B licence, offshore Congo Brazzaville, in April. Total is to take the stake for US$8 million in cash plus the reimbursement of US$5.3 million of costs. The deal is expected to close before the end of June. 

Oryx’s CEO, Vance Querio, said work had continued in the first quarter on the AGC Central area. “Final interpretation and prospect selection are ongoing and drilling preparation will follow as we prepare for exploration drilling in 2019.”

The company acquired around 2,000 square km of 3D seismic on the AGC Central licence in early 2017. In April, Oryx said final interpretation was in an advanced stage, with prospect selection to follow. 

The CEO, speaking last month, said initial data from the seismic showed 11 prospects, with a best estimate unrisked prospective oil resource of 3.45 billion barrels.

Spending this year on the Senegal and Guinea Bissau block will reach US$13 million, it said, with a contingent payment for 3D seismic acquisition and processing required on entering the first renewal period. This is due in September 2018. 

Querio went on to say cash on hand, with revenues and the proceeds of the Haute Mer B sale would cover its planned capital expenditure until the end of the year. For further work, in Kurdistan and on AGC Central, more cash is likely to be needed. 

Oryx was awarded its 30% stake in Haute Mer B in 2012, with the licence covering 402 square km. Total has a 34.62% stake in the deepwater block, which may hold opportunities in the pre- and post-salt. 

The company is also disposing of its stake in Haute Mer A, assigning this to the other partners on the block. The Elephant-1 well was drilled on this licence in 2014, finding non-commercial amounts of oil and gas. Other assets Oryx has cut loose include the AGC Shallow and Nigeria’s Oil Mining Licence (OML) 141.

Oryx is part of Jean Claude Gandur’s AOG Energy. 

Edited by

Ed Reed

Editor

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