HDR hardman resources limited

cinguetti reserves

  1. 213 Posts.
    I am trying to reconcile some of the numbers in the Euroz report with each other and also with some of the numbers in the 618 report to the Motley Fool.

    The Chinguetti Proven and Probable (2P) reserves are given as 123 million barrels in the Euroz report page 12.
    On the same page oil processing capacity of 75,000 = peak production. Actual production post build-up allows for maintenance downtime.

    75,000bbl/day for 9 years = 246million bbl
    I can imagine maintenance downtime accounting for perhaps 10% of production time which would reduce averge daily production to maybe 67,500bbl/day but certainly not 37,500bbl/day. Is there a fall off in optimum recovery rates over the 9 year period as the reserves are depleted and is this likely to be about 17.5%pa?

    I appreciate that the reserves could be conservative and may be increased as time goes on. I also beleive that the 75,000bbl/day may not be a maximum rate nor even an optimum recovery rate but rather a capped rate because higher rates would reduce the JV benefits. However the numbers suggest that the annual production rate would start off at about 27million bbl/year and fall to less than 10million bbl/year giving an average over 9 years of 13.7million bbl/year.

    Could someone with experience in the oil business please suggest an initial rate and a year 9 rate if the reserves are in fact only 123 million barrels.

    regards

    Complex


 
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