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FHN announces an update on its oil reserve

First Hydrocarbon Nigeria Limited recently announced that an independent assessment of the reserve and contingent recourse potential at the Ogini and Isoko fields has significantly increased 2P reserves and combined 2P/2C resources.

Following the completion of that assessment of the oil reserve at Ogini and Isoko, the reserve had been grossly estimated at 129.3 million barrels and gross contingent resources have been estimated at 75.7 million barrels (gross 2P+2C reserves and resources 205.0 million barrels; 92.3 million barrels net to FHN). According to sources, this represents a 218 per cent and 12 per cent increases on 2P reserves and 2P+2C volumes respectively, that were previously carried by FHN.

“FHN acquired a 45% interest in the OML 26 portfolio of assets from the Shell Petroleum Development Company Joint Venture (SPDC) in December 2011 and raised US$280 million of syndicated debt and mezzanine finance to fund the field development and further inorganic growth.

The OML 26 portfolio of assets holds two producing fields (Ogini and Isoko, with 2P oil reserves estimated at 129.3 million barrels and gross contingent resources estimated at 75.7 million barrels) and three proven but undeveloped fields (Aboh, Ovo and Ozoro, with an estimated 144 mmboe of gross contingent resources (previous operator’s estimates), as well as a further 615 mmboe of gross prospective resources on the block. OML 26 also has gas resources of 582 bcf (2C) and 1076 bcf (prospective) according to the previous operator’s estimates.

The Nigerian Petroleum Development Company (NPDC’), the oil and gas exploration and production subsidiary of Nigerian National Petroleum Company (NPDC) is the Operator of OML 26 and works closely in partnership with FHN on the re-development of the assets.

Speaking further, Chief Executive FHN, Labi Ogunbiyi, said that the increase in reserves on the Ogini and Isoko fields is a further testament to the scale of the opportunity onshore Niger Delta. The progress we have made optimizing existing production and advancing Field Development Plans (FDPs) at Ogini and Isoko alongside our partner NPDC endorses the strength of our working relationship with our operating partner and demonstrates the potential that a public private partnership model offers for both parties.


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