Ansila Energy has announced the results of a Conceptual Field Development Plan (CFDP) for the Gora license and economic evaluation of the unconventional 1.6 Tcf (1) 2C contingent resource discovered by the Siciny-2 well ahead of imminent appraisal operations.
The CFPD and economic evaluation was compiled by Xodus Group with a review and audit conducted by Netherland, Sewell & Associates, Inc. (NSAI).
- The Ansila Base Case scenario generates a gross (un-risked) pre-tax NPV10 of US$1,649 million with a project IRR of 62.6% (net US$577 million to Ansila);
- Based on Ansila management’s estimate of a 42% commercial CoS associated with the 2C resources the net (risked) pre-tax NPV10 equates to US$242 million;
The purpose of the CFDP and economic evaluation was designed to assist investors in determining what the Siciny-2 well fracture stimulation and well test work program translates into in terms of a potential value per unit volume of 2C contingent resource in a success case.
The objective of the operations at Siciny-2 is to confirm the result of the already conducted diagnostic fracture infectivity test (mini-frac), and thereby improve the understating of the reservoir properties and improve confidence in the commerciality of the development.
NSAI concluded 'Based on our review of the economic model parameters, we regard the unrisked net contingent cash flow to be representative of the unrisked net cash flow that could be received from the properties if (1) the contingencies are successfully removed, (2) the best estimate (2C) contingent resources are produced, and (3) the properties are developed in accordance with the schedule of the CFDP.'
Andrew Matharu, Executive Director, commented:
'The CFDP and economic evaluation demonstrates the transformational value potential that may be unlocked from the unconventional gas resources at Siciny-2 in the event of a successful fracture stimulation and acquisition of associated reservoir and well performance data. A phased development plan would allow for early free operating cashflow whilst minimising capital expenditure requirements in a project with the potential to generate excellent returns in a robust gas pricing environment.'
(1) Volume estimates are from Netherland, Sewell & Associates, Inc. report entitled “Estimates of Reserves and Future Revenue and Contingent Resources to the Gemini Resources Ltd. Interest and Gross (100 Percent) Prospective Resources in Certain Oil and Gas Properties located in the Nowa Sol and Gora Concessions Permian Basin, Onshore Poland as of May 1, 2019” (Report). The % CoS are estimated by ANA Management.
Source: Ansila Energy