Rockrose: CPR of Certain UK Oil Fields ... Reserves Attributable to Rockrose (MMstb) 7.00 1.29 0.49

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Transcript of Rockrose: CPR of Certain UK Oil Fields ... Reserves Attributable to Rockrose (MMstb) 7.00 1.29 0.49

  • Rockrose: CPR of Certain UK Oil Fields

    PREPARED FOR: Rockrose Energy plc

    BY: ERC Equipoise Limited

    Date: November 2017

  • Rockrose Competent Person’s Report for Certain UK Assets

    November 2017

    1

    Approved by: Simon McDonald

    ERC Equipoise Ltd (“ERCE”) has made every effort to ensure that the interpretations, conclusions and

    recommendations presented in this report are accurate and reliable in accordance with good industry

    practice. ERCE does not, however, guarantee the correctness of any such interpretations and shall not be

    liable or responsible for any loss, costs, damages or expenses incurred or sustained by anyone resulting

    from any interpretation or recommendation made by any of its officers, agents or employees. This report

    is produced solely for the benefit of and on the instructions of ERCE’s client named in the contract, and not

    for the benefit of any third party. The client agrees to ensure that any publication or use of this report

    which makes reference to ERCE shall be published or quoted in its entirety and the client shall not publish

    or use extracts of this report or any edited or amended version of this report, without the prior written

    consent of ERCE. In the case that any part of this report is delivered in digital format, ERCE does not accept

    any responsibility for edits carried out by the client or any third party or otherwise after such material has

    been sent by ERCE to the client.

  • Rockrose Competent Person’s Report for Certain UK Assets

    November 2017

    2

    Table of Contents 1. Summary of Reserves...................................................................................................................... 5

    2. Dataset ............................................................................................................................................ 8

    3. Evaluation Basis .............................................................................................................................. 9

    3.1. Methodology for Economic Modelling ................................................................................... 9

    3.1.1. Discount Rate and Method ........................................................................................... 10

    3.1.2. Economic Assumptions ................................................................................................. 10

    3.1.3. UK Tax Considerations .................................................................................................. 10

    4. The Nelson Field ............................................................................................................................ 11

    5. The Howe Field.............................................................................................................................. 16

    6. The Blake Field .............................................................................................................................. 20

    7. The Ross Field................................................................................................................................ 25

    8. Appendix 1: SPE PRMS Guidelines ................................................................................................ 28

    9. Appendix 2: Field Production Forecasts Before Economic Limits are Applied ............................. 37

    10. Appendix 3: Nomenclature ............................................................................................................. 1

    10.1. Units and their abbreviations ................................................................................................. 1

    10.2. Resources Categorisation........................................................................................................ 2

    10.3. Terms and their abbreviations ................................................................................................ 3

  • Rockrose Competent Person’s Report for Certain UK Assets

    November 2017

    3

    List of Tables Table 1.1: Summary of Reserves and Net NPV for the Rockrose Portfolio, effective 31/12/2017 .............. 7

    Table 3.1: Economic Assumptions .............................................................................................................. 10

    Table 4.1: Nelson Field Oil Reserves as at 1 January 2018 ......................................................................... 11

    Table 5.1: Howe Field Oil Reserves as at 1 January 2018 ........................................................................... 16

    Table 6.1: Blake Field Oil Reserves as at 1 January 2018 ............................................................................ 20

    Table 7.1: Ross Field Oil Reserves as at 1 January 2018 ............................................................................. 25

    Table 9.1: Economic Input for Nelson Field: Proved Case ............................................................................ 1

    Table 9.2: Economic Input for Nelson Field: Proved + Probable Case .......................................................... 2

    Table 9.3: Economic Input for Nelson Field: Proved + Probable + Possible Case ......................................... 3

    Table 9.4: Economic Input for Howe Field: Proved Case .............................................................................. 4

    Table 9.5: Economic Input for Howe Field: Proved + Probable Case ............................................................ 5

    Table 9.6: Economic Input for Howe Field: Proved + Probable + Possible Case ........................................... 6

    Table 9.7: Economic Input for Ross Field: Proved Case ................................................................................ 7

    Table 9.8: Economic Input for Ross Field: Proved + Probable Case .............................................................. 8

    Table 9.9: Economic Input for Ross Field: Proved + Probable + Possible Case ............................................. 9

    Table 9.10: Economic Input for Blake Field: Proved Case ........................................................................... 10

    Table 9.11: Economic Input for Blake Field: Proved + Probable Case ........................................................ 11

    Table 9.12: Economic Input for Blake Field: Proved + Probable + Possible Case ....................................... 12

  • Rockrose Competent Person’s Report for Certain UK Assets

    November 2017

    4

    List of Figures Figure 1.1: Rockrose UK North Sea Field Locations (Source: Rockrose) ....................................................... 5

    Figure 4.1: Nelson and Howe Field Locations ............................................................................................. 11

    Figure 4.2: Nelson Production History ........................................................................................................ 12

    Figure 4.3: Nelson Top Forties Depth Map (Source: Rockrose) .................................................................. 13

    Figure 5.1: Howe Top Fulmar Depth Map (Source: Rockrose) ................................................................... 17

    Figure 5.2: Howe Field Production History ................................................................................................. 18

    Figure 6.1: Blake Top Captain Two Way Time Map (Source: Rockrose) ..................................................... 21

    Figure 6.2: Blake Channel Area Production History .................................................................................... 22

    Figure 6.3: Blake Flank Area Production History ........................................................................................ 22

    Figure 6.4: Blake Water Injection History ................................................................................................... 23

    Figure 7.1: Ross Top Depth Map with Well Locations (Source: Repsol Sinopec) ....................................... 26

    Figure 7.2: Ross and Blake Development Schematic (Source: Repsol Sinopec) ......................................... 26

    Figure 7.3: Ross Field Production History ................................................................................................... 27

  • Rockrose Competent Person’s Report for Certain UK Assets

    November 2017

    5

    1. Summary of Reserves

    ERCE has audited the Reserves for four fields in the UK North Sea in which Rockrose has working interest

    positions: Nelson, Howe, Ross and Blake. Figure 1.1depicts the location of the fields.

    Figure 1.1: Rockrose UK North Sea Field Locations (Source: Rockrose)

    Our forecasts of production and costs for each field reviewed at the Proved (1P), Proved plus Probable

    (2P) and Proved plus Probable plus Possible