Tende Energy, an Africa-focused oil & gas development and production company, has announced a group operational and commercial update
Nigeria OML 65 FTSA – Phase 1 Abura Field Development
The initial phase of the Abura development prioritised the mobilisation and integration of the joint venture management and operational groups to execute the Financial Technical Services Agreement (FTSA) working in conjunction with Nigeria Exploration and Production Limited (NEPL), the upstream arm of the Nigerian National Petroleum Company Limited (NNPC). Additional analysis included essential subsurface work to determine the optimal economic and engineering programme for an initial series of workovers to existing producing wells.
Well intervention operations
The subsurface work entailed an ongoing review of the existing static and dynamic models of the Abura field, incorporating the latest production and pressure history. This subsurface data modelling combined with the ongoing field production data across 15 wells/strings enabled the team to identify several high-impact workover opportunities on existing wells which could add material production.
As a priority, these opportunities were ranked in a work programme of near-term well interventions with Baker Hughes who mobilised a team on site performing well interventions on the first series of wells: Abura 8L and Abura 11L which are expected to be completed at the end of December and are expected to add 1,000-1,500 bopd to gross production. A further well intervention is planned at Abura 4L during Q1 2024 which is expected to add incremental production of 500 bopd.
In addition, the operational team undertook a study for the optimisation of production facilities to accommodate the additional crude stream which will be put through the system as the initial workover programme is completed.
Current production at Abura is now running at 13,000 bopd as a result of the optimisation of production facilities and infrastructure. Further workovers are programmed to be undertaken during the early part of 2024 to add additional incremental production.
Drilling of new production infill wells
The operational team is finalising the overall work scope planned for the Abura drilling programme for 2024. Drilling of the first two of the new production infill wells focused on established horizons is expected to spud during Q2 2024 and the second in H2 2024, in line with the 2024 programme. These are expected to add a further 4,000 bopd of gross production from the Abura field. A third new infill well is also expected to spud during H2 and this target will be assessed as part of the ongoing appraisal of the Abura field as the team builds on its knowledge base through each new well.
At the commercial level, and with base volumes methodology under the structure of the FTSA having been agreed, the crude lifting programme regarding OML 65 entitlement is in the final stages of being established for the 2024 loading programme.
As previously announced, the Company has facilities of up to US$200mn senior loan facility allocated to Phase 1 of the OML65 Approved Work Programme (AWP).
In June 2023 Tende Energy took 100% control of ATOG Midco Limited, together with its subsidiaries, following the acquisition of a further 90% equity interest in ATOG.
The portfolio onshore Tunisia is currently producing approximately 700 boepd net from the three onshore licences: Bir Ben Tartar (operated, 100% Working Interest “WI”); and two operated by Eni: Adam (5% WI) and Abir and Bochra (5% WI for producing fields).
The operational team in Tunisia has made excellent progress during the last three months since commencing a work programme at the Bir Ben Tartar concession which has included well Intervention/workover activities on shut-in wells between July and September. As a result, average daily production saw an increase of the concession from 190 bopd to 400 bopd.
In addition, the drilling of the TT27 development well began on 27 October 2023 using the Pergemine-29 rig. The well reached a total depth of 1,465m in mid-November and has been successfully logged. The well is expected to enter production during Q1 2024 together with the TT34 well which was originally drilled in December 2021.
Further to these activities, the average daily production of Bir Ben Tartar Concession is expected to reach 800 bopd and net production from the onshore producing assets to 1,100 boepd by the end of Q1 2024. The possibility of further rig interventions early next year to refrack existing wells is under review and could add significant additional production.
The Company executed a lifting of 75,500 barrels (net to ATOG) with Trafigura at the end of September, as part of a co-loading with Mazarene Energy, achieving a net price per barrel of US$92.40. Given current production levels, another lifting of a similar volume in Q1 2024 is anticipated.
Offshore Tunisia, the initial Cosmos discovery (ATOG operator, WI 80% and ETAP (Tunisian National Oil Company) 20% WI) achieved a combined flow rate of 5,700 bopd under well test and recently updated estimates provide an estimated ultimate recovery of 15-20 mn boe for the initial phase of the development.
The Company reported that all these activities were completed ahead of schedule, within budget and with no lost time to injury. These are the first upstream activities to be undertaken by an exclusively Tunisian crew and supporting team in the history of the Tunisian oil and gas industry.
Tende Energy is working in partnership with Etu S.A., the largest privately owned Angolan oil company, in the Tende-Etu consortium which has signed sale and purchase agreements (SPA) with Sonangol Pesquisa e Produção S.A. (Sonangol), Angola’s state-owned oil company, to acquire participating interests of 8.28% and 10% respectively in the producing Angolan offshore Blocks 18 and 31 and a 25% participating interest in the exploration Block 27 (the Proposed Acquisition). Blocks 18 and 31 are world-class producing assets (combined gross daily production of 120,000 bopd), supermajor operated with considerable medium-term development potential.
The Company is working towards completion of the proposed acquisition having satisfied the majority of the conditions precedent.
On completion of the proposed acquisition of the Angola interests, it remains the firm intention of the Company to prepare for the listing for its issued share capital on the LSE’s AiM market.
Source : Oil Review Africa