Horizon Petroleum Receives Resource Report for Ledieux Permit in France
Horizon Petroleum Ltd. (the “Company” or “Horizon”) (TSXV: HPL) is pleased to report the results of an independent Resource Report prepared by Apex Energy Consultants Inc. (the “Apex Report”), of Calgary, Alberta, on the Company’s recently-acquired and 100%-owned Ledieux Exploration Permit (the “Permit”) in the Aquitaine Basin of south-western France. The Apex Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook reserve definitions that are consistent with the standards of National Instrument 51-101 ("NI 51-101"), to describe and quantify the Contingent Resources and Prospective Resources contained within the Permit.
The valuation was limited to the following scope:
- Presenting the discovered Contingent Conventional Natural Gas Resources in the Saucède -1 gas discovery in the Permit; and
- Undiscovered Prospective Conventional Natural Gas Resources in the undrilled structures of the Permit, Aquitaine Basin, France.
The key highlights of the Report are as follows:
- Unrisked Best Estimate Contingent Conventional Natural Gas Resources of 718.7 billion cubic feet.
- Net Present Value of the Risked Contingent Conventional Natural Gas Resources, discounted at 10%, of US$1.116 billion.
Ledieux Exploration Permit, France
Horizon holds a 100% interest in the Permit, which is located in the Aquitaine Basin of south-western France. The basin contains the largest natural gas fields in France: Lacq and Meillon, which combined have produced 11 TCF of gas to date. Hydrocarbons were sourced from the Lower Jurassic aged shales and marls, and have migrated into Jurassic and Cretaceous aged naturally fractured carbonate reservoirs contained in folded thrust sheets of the Pyrenean fold belt.
Eleven wells have been drilled in the Permit, with two of those wells testing hydrocarbons. Saucede-1 drilled in 1978 by Esso was a gas discovery flowing an average 9 MMscf/d over 19 days. It was placed on production 1981- 1985 and again in 1988 to 1993. The well produced a cumulative 1.85 BCF of gas from Lower Cretaceous and Jurassic aged naturally fractured carbonate reservoirs between 4,200 and 5,410 meters below sea level. Reservoir engineering analysis has indicated significant wellbore damage, caused by overweight drilling fluids and poor completion practices which could have resulted in poor well performance.
A number of leads have also been identified in different thrust sheets that have similar characteristics to the Saucede gas discovery at shallower depths that provide significant upside potential.
The Apex Report
The Apex Report documents the results of its independent evaluation with Tables summarizing the total Company gross and net, unrisked and risked Contingent and Prospective Resource volumes. The volumes were estimated using stochastic techniques.
The “A-2, A-3 and A-4” Reservoirs contain Contingent Conventional Natural Gas Resources as defined in the Canadian Oil and Gas Handbook and summarized below. Based upon Apex’s evaluation, the Saucède-1 well was a discovery well and is located on the downdip edge of an undeveloped gas field. The well was placed on production at an initial rate of 1.5 MMscfd, producing a total of 1.85 Bcf of conventional sweet gas before being shut in at a rate of approximately 0.46 MMscfd. The poor production performance of the well was attributed to the poor operating and completions practices when the well was drilled and tested. Based on the reservoir test data, Apex estimate an initial production rate of 25 – 30 MMscf/d per well with an appropriate completion.
The Saucède-1 well is shown by seismic data to be part of a large structure comprising three separate thrust sheets, and additional Contingent Resources were assigned to the remainder of the A2, A-3 and A-4 reservoirs penetrated by the Saucede-1 well. The main contingencies relate to the future successful completion of new production wells, the development of the gas processing infrastructure and the negotiation to access the regional infrastructure, and gas marketing agreements to sell the natural gas. Approximately 60% of the Contingent Resources are contained in the A2 reservoir between 4,200m and 4,800m. Horizon plans to target the A2 reservoir for an initial development on the Saucede discovery with the deeper A3 and A4 reservoirs being targeted later once cash flow has been established from the A2 reservoir.
The Permit contains other prospects that will require drilling to test the Undiscovered Prospective Resources. There are sufficient geological and geophysical interpretations that in the opinion of Apex Energy Consultants allow for the estimation of a Prospective Resource as defined in the body of the Report:
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. There is no certainty that any portion of the Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied projects are not yet considered mature enough for commercial development due to one or more contingencies.
A BOE conversion ratio of 6 Mscf: 1 barrel has been used within the Report. This conversion ratio is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Summary of the Report
The Report focuses on the Saucède – 1 gas discovery well, which was drilled to sufficient depth to intersect prospective horizons in the Permit. It was the only well in the Permit to produce from the naturally fractured carbonate reservoirs in the thrust sheets referred to as the A2, A3 and A4 thrust sheets. While the well was successfully drilled it was not successfully completed which had negative impact on the eventual production of conventional natural gas from the well. Conventional Natural Gas refers to natural gas that can be produced from reservoirs using traditional drilling, pumping and compression techniques.
Contingent Resources and Prospective Resources are summarized in Tables 1, and 3 below. The resources are sub-classified as “Development Unclarified” as the project is currently under active evaluation. Apex completed an economic analysis of the Risked Contingent Resources the results of which are summarized in Table 2.
Gross (100% WI) Conventional Natural Gas Volumes (Bcf)
Unrisked Contingent Conventional Natural
|Reservoir||Low Estimate||Best Estimate||High Estimate||Best Estimate||Best Estimate|
|Discounted NPV of Future Cash Flow (US$ MM)|
Prospective Resources were assigned to two undrilled structures in the Permit that were not previously tested by drilling. These present significant upside potential to the Permit:
|Gross (100% WI) Conventional Natural Gas Volumes (Bcf)|
Unrisked Prospective Recoverable
|Low Estimate||Best Estimate||High Estimate||Best Estimate||Best Estimate||Best Estimate|
Exploration and Development Strategy for the Permit
The French government has recently stated that it will no longer issue exploration permits. As well, the extension of current concessions will be gradually limited until they are phased out by 2040. The French government has also recently stated that it plans to pass legislation this year to phase out all oil and gas exploration and production by 2040.
This will not impact the Permit because it is an existing exploration permit. Furthermore, the Company intends to meet its financial commits on the Permit, which would ensure its continuance. Horizon management will be meeting with representatives of the BEPH (Bureau Exploration-Production des Hydrocarbures) in Paris in October, to discuss the Company's plans for its Permit.
The Permit presents an opportunity to appraise and potentially develop Contingent Conventional Natural Gas Resources in a basin with ample existing gas infrastructure, and a well-developed gas market. Management and Directors of Horizon have expertise and experience in appraising, developing and monetizing naturally fractured reservoirs around the world with a number of oil and gas companies. Horizon’s strategy is to leverage that experience to target, acquire, develop and monetize these permits as well as similar gas resources in Europe. The scale of the target resource plays is such that they are immaterial to the large independents and major oil and gas companies but highly material to junior independents that have the technical and operating expertise and experience. The permits in France represent the first step in executing this strategy, and management has identified a number of potential follow up opportunities with significant undeveloped gas resources.
About Horizon Petroleum Ltd.
Calgary-based Horizon is focused on the appraisal and development of oil & gas reserves internationally. The Management and Board of Horizon consist of oil & gas professionals with significant international experience.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. This press release contains forward-looking statements pertaining to, among other things Horizon’s ability to meet its obligations regarding the Permit and otherwise maintain the Permit and the furtherance of Horizon’s European acquisition and development strategy.
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Horizon and described in the forward-looking information contained in this press release.
Certain of the "risk factors" that could cause actual results to differ materially from the Company's forward-looking statements in this press release include, without limitation, changes of laws or regulations; the ability to implement business strategies or to pursue business opportunities, whether for economic or other reasons; status of the world markets, prices and price volatility; state of capital markets and ability to raise capital; litigation; the commercial and economic viability of the extraction technology the ability to Horizon to extract resources or develop on the Permit, reliance on suppliers, contractors, consultants and key personnel, risks associated with compliance with environmental protection laws and regulations.
Although Horizon believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
Horizon Petroleum Ltd.
Dr. David Winter, +1-403-984-2444
President & CEO
David R. Robinson, +1-403-399-9047
VP Business Development
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
BCW Names Jillian Janaczek New York Market Leader19.9.2018 15:50 | Pressemelding
BCW (Burson Cohn & Wolfe), a leading global communications agency, today announced Jillian Janaczek has been named Executive Vice President, Managing Director, Market Leader for New York, the firm’s largest market globally. In her new role, she will manage talent and operations of the firm’s headquarters office, maintain key client relationships and help drive business growth across all industry sectors. Rachi Govil will assume the role of Executive Vice President, Managing Director, New York Healthcare Practice Leader. “Jillian is a veteran communications professional and leader with deep experience running and growing multimillion dollar clients and large teams,” said Chris Foster, President, North America, BCW, to whom Janaczek will report. “She is also deeply committed to finding and nurturing the best talent in the business. Jillian will be an invaluable partner to me and to our entire organization as she builds the business in our largest market.” Before this role, Janaczek spent
District Court in Rotterdam (Netherlands), Accepts Jurisdiction in Securities Fraud Litigation against Petrobras19.9.2018 15:11 | Pressemelding
On January 23, 2017, Stichting Petrobras Compensation Foundation (the “Foundation”) initiated an international collective action for Petrobras investors who purchased Petrobras securities outside of the United States and have suffered damages as a consequence of fraud that was uncovered by the “Lavo Jato” or “Operation Car Wash” investigations at the Brazilian petrochemical company that was once the 5th largest company in the world. Petrobras has structured a significant part of its assets through the Netherlands and one of the entities issuing Petrobras securities (Petrobras Global Finance B.V.) is based in Rotterdam, the Netherlands. Moreover Petrobras is benefiting from the Dutch tax environment and Dutch investment protection treaties. Despite its strong nexus with the Dutch jurisdiction, Petrobras strongly contested the jurisdiction of the District Court in Rotterdam. Today the District Court in Rotterdam ruled in favor of the Foundation by accepting jurisdiction. Also the Court r
TRAXENS Digital Freight Train Honored as « Coup De Cœur » By ERCI Innovation Awards IoT Based Solution Presented At InnoTrans 201819.9.2018 14:00 | Pressemelding
TRAXENS today announced that ERCI Eurail Clusters has named TRAXENS DIGITAL FREIGHT TRAIN, Europe's first Freight Train to use an innovative IoT-based system allowing digitalization of operations, the winner of their « Coup de Cœur » Innovation Award. The prize has been given to the company at the InnoTrans 2018 tradeshow in Berlin. Initially launched with Fret SNCF, the TRAXENS DIGITAL FREIGHT TRAIN solution is based on smart devices capable of communicating with each other using wireless digital network. TRAXENS solution goes beyond smart wagons to connect the entire train offering new high-value-added services. Inherited from the Shipping Industry, TRAXENS DIGITAL FREIGHT TRAIN has been designed to work worldwide and manage any type of asset (e.g., Dry or Reefer container, wagon, trailer) which means that rail freight can be connected to the rest of the supplier chain anywhere, to explore and leverage door-to-door multimodal applications. « This industry recognition is a major miles
WilsonHCG Recognized as a Top Global RPO Provider in HRO Today Baker's Dozen for Eighth Year in a Row19.9.2018 14:00 | Pressemelding
WilsonHCG, a multi-award winning global leader in innovative talent solutions, has once again been recognized in HRO Today magazine's annual RPO Baker's Dozen list. It’s the eighth year in a row the company has been honored for its exemplary partnership with its clients. WilsonHCG was one of only two providers to see an increase in client satisfaction scores. The Baker’s Dozen highlights the top recruitment process outsourcing (RPO) providers on a global level and is based solely on feedback from buyers. It’s one of the most distinguished customer satisfaction surveys in the RPO industry and service providers are rated on a variety of factors including size-of-deal, breadth of solutions, and quality of service. “We’re extremely proud to be ranked in the Baker’s Dozen for the eighth year in a row. It showcases WilsonHCG’s commitment to clients and is a testament to the effort that each and every one of our people put in on a daily basis,” says John Wilson, CEO at WilsonHCG. “We’re thank
Sharjah Announces its First Fully Integrated Investors Services Centre19.9.2018 13:36 | Pressemelding
In a bid to support prospective foreign investors expand their international growth ambition in the UAE, its third largest emirate, Sharjah, has announced the launch of a digitally robust business facilitation initiative, the Investors Services Centre. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180919005444/en/ General photo of Sharjah (Photo: Shurooq) The emirate’s investment and development authority, Shurooq, has partnered with Injazat Services, to develop this high-end facility to offer an exhaustive list of fully integrated business consultancy services, which will specially benefit new players on the UAE turf. The office will serve as a key access point for global business owners and investors in Sharjah, and serviced by a highly trained staff, will play an integral role in facilitating high-level and mid-level investments across a variety of sectors within the emirate. Through this service centre, investors will b
ISACA Research: Only 4 in 10 Tech Professionals Confident in Security of Their Organizations’ AI Deployments19.9.2018 13:00 | Pressemelding
Despite heightened interest in enterprise deployment of artificial intelligence, only 40 percent of respondents to ISACA’s second annual Digital Transformation Barometer express confidence that their organizations can accurately assess the security of systems based on AI and machine learning. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180919005423/en/ ISACA's 2018 Digital Transformation Barometer looks at companies' digital transformation journeys, including the technologies with the biggest impacts and the positive effect of digitally literate leaders. (Graphic: Business Wire) This becomes especially striking given the potential for serious consequences from maliciously trained AI; survey respondents identify social engineering, manipulated media content and data poisoning as the types of malicious AI attacks that pose the greatest threat within the next five years. AI/machine learning also continued to rise toward the