ADM Energy PLC (LON:ADME) has commissioned consultant Xodus Group Ltd for an updated competent person's report (CPR) to assess the Barracuda field, in Nigeria’s Niger Delta.
Completion of a new CPR is the next step in the agreed scope of the Barracuda risk sharing agreement and the independent report is expected to provide a full technical and economic review of the field.
Included will be new estimates of the field’s gross in-place and recoverable oil and gas volumes.
"The new CPR is the springboard for the RSA Consortium's plans to develop the Barracuda Field and take the asset into production,” said chief executive Osamede Okhomina. “It will validate the appraisal work already conducted by our internal technical team, which has defined immediate recoverable reserves and significant potential beyond.
“We believe that first oil of 4,000 bopd [barrels of oil per day] may be possible and, subject to rig availability, could be achieved in H2 2021 by drilling an appraisal well (Barracuda-5).
“If this is successful, there may be the opportunity to further increase production to approximately 23,000 bopd by drilling six wells by 2026.”
The new CPR is expected to take four to six weeks to complete.
Okhomina added: “We are pleased by progress at Barracuda to date and will continue to take a proactive role in driving the project forwards towards production."