Saffron Energy PLC Drilling/Production Report (3356J)
29 Março 2018 - 3:01AM
UK Regulatory
TIDMSRON
RNS Number : 3356J
Saffron Energy PLC
29 March 2018
29 March 2018
Saffron Energy Plc (to be renamed Coro Energy Plc)
("Saffron" or the "Company")
Production Update
Saffron Energy, the AIM quoted explorer with a Pan Euro Asian
expansion strategy is pleased to provide a quarterly production
update covering its existing Italian operations for the three
months ended 31 December 2017 and anticipated production for the
three months ending 31 March 2018 including actual production to 23
March 2018.
Total Production for the financial year amounted to 7 million
standard cubic metres of gas (circa 247 million standard cubic
feet), a daily rate of 20,000 standard cubic metres (circa 706
thousand standard cubic feet). Production in 2016 for the same
period was 4.4 million standard cubic metres (circa 156 million
standard cubic feet), a daily rate of 12,400 standard cubic metres
(circa 438 thousand standard cubic feet). The increase in combined
production for the Company is attributable to the Bezzecca gas
field which started commercial production mid-year in summer
2017.
The Bezzecca gas field
During the second half of 2017, early water arrival in the major
R completion on Bezzecca-1 led to a significant reduction in
production and in the estimate of remaining reserves as compared to
the estimates originally published in the IPO Admission document
dated 24 February 2017. Following the preparation of the Competent
Person's Report for the Re-Admission Document published on 15
February 2018, the Company announced that the 1P and 2P reserve
estimates for Bezzecca will be reduced compared to the original
volumes and were specifically 33.9 and 65.7 MMscm, net to Saffron,
respectively.
Importantly, a rig-less intervention to seal off water
production from the bottom-most perforations of level R was carried
out at approximately the same time that the revised Competent
Person's Report was being prepared. The outcome of that rigless
operation was positive and, since January 2018, the Bezzecca field
has been producing at an average of 15,000 standard cubic
metres/day (circa 424,500 cubic feet per day) with limited
associated water production. This production, both in terms of
daily rates and quantum, is above the estimations indicated in the
revised Competent Person's Report. On the basis that these rates
continue for a reasonable period, the Board will consider
commissioning a new Competent Person's Report for the Bezzecca
field. In accordance with IAS 36, the Board has impaired the
carrying value of the Bezzecca field at 31 December 2017 to reflect
the fair value at that date.
The Sillaro gas field
In early January, production at Sillaro achieved a significant
increase in daily rates up to 726,000 scf/day (20,000 scm/day)
following a zero cost production restart initiative. As expected,
the daily rate has and will continue to decrease gradually and is
currently with constant WHP (approximately 500,000 scf/day as of
the date of this announcement). Production from this field has
clearly surpassed 3P reserves - therefore it is expected that this
field, under its current completion scheme, is close to depletion
and will require a workover (sidetrack) to unlock further
production potential as described in the Supplementary Admission
Document released on 7 March 2018.
The table below summarizes the historical production and
forecast sales results for 1Q18 compared to the previous quarter.
The table below includes actual data up to 23 March and an estimate
for the remaining 8 days to quarter close.
Q4 17 Q1 18 Change YTD 18
(%)
-------------------------- ------- ------- ------- -------
Total production ('000
cubic metres) 1,890 2,622 +39% 2,622
Total production ('000
cubic feet) 66,760 92,603 +39% 92,603
Daily production (cubic
metres per day) 20,548 29,136 +41%
Daily production ('000
cubic feet per day) 726 1,029 +41%
Daily production (boepd) 125 176 +41%
Revenue (EUR) 380,847 545,376 +43% 545,4
Average gas price (EUR
per cubic metre) 0.201 0.208 +3%
Average gas price (EUR
per Mcf) 5.69 5.89 +3%
-------------------------- ------- ------- ------- -------
The Rapagnano and Casa Tiberi gas fields
Following shareholder approval, the Company will add two
production concessions to its portfolio with one gas field each,
Rapagnano and Casa Tiberi (results of which are not represented in
the table above). The current daily production from the two fields
is 441,000 scf/day (12,500 scm/day). Reservoir studies are
undergoing for both fields with the objective to optimize the
current production and possibly identify new areas for additional
production.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Release of year end accounts
The Company is today separately announcing its results for the
year ended 31 December 2017 which reflect these production
figures.
For further information please contact:
Saffron Energy plc / Coro
Energy plc s.edmonson@coroenergyplc.com
Sara Edmonson, Chief Executive j.parsons@coroenergyplc.com
Officer
James Parsons, Non-Executive
Chairman
Grant Thornton UK LLP (Financial Tel: +44 (0)20 383
and Nominated Adviser) 5100
Colin Aaronson
Jen Clarke
Harrison J Clarke
Turner Pope Investments (TPI) Tel: +44 (0)20 3621
Ltd (Broker) 4120
Ben Turner info@turnerpope.com
James Pope
This information is provided by RNS
The company news service from the London Stock Exchange
END
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