- Australis Oil and Gas (ATS) continues to take a conservative approach to estimates in its 2021 reserve and resource update
- Given its current strategy to introduce a partner for the purposes of advancing the development of its TMS asset, Australis’ board has determined it is not appropriate to propose a development plan as part of the 2021 reserves evaluation
- As such, the reserve and resource estimate consists of a proved, probable, and possible developed reserve estimate only
- The company says it is continuing to seek a partner to help progress the TMS field development
- ATS shares up 3.57 per cent at 5.8 cents
Australis Oil and Gas (ATS) has continued to adopt a conservative approach to estimating oil and gas reserves and resources for its onshore assets in the US.
The company released its 2021 reserve and resource update as of 31 December 2021, which was independently assessed by Ryder Scott Company.
Australis said given its current strategy to introduce a partner for the purposes of advancing the development of its TMS asset, the company’s board felt it would not be appropriate to propose a development plan as part of the 2021 year-end reserves evaluation.
The latest reserve and resource update consists of a proved, probable and possible developed reserve estimate only and incorporates no estimates for undeveloped acreage.
Developed recoverable oil volumes from existing wells net to Australis sat at 2.98 million barrels of oil, while the possible, probable, and proved total weighed in at 4.54 million barrels.
At the end of 2021, Australis held the rights to about 98,000 net acres within the TMS Core area, marking a reduction of about 10,000 acres during the year.
Australis also divested its interests in five marginal TMS wells in Louisiana, outside the TMS Core area, reducing the existing operated well count to 33, two of which were shut in awaiting workovers for the year and therefore designated proved developed not producing.
The remaining 31 producing operated wells and interests in 15 producing non-operated wells were assessed on a proved developed producing basis.
Managing Director and CEO Ian Lusted said Australis would continue to take a conservative approach to its reserve and resource estimates.
“We remain absolutely confident that we will secure a partner to contribute to the development of the large TMS asset that we hold and will update our undeveloped reserve estimates once a forward program has been adopted which we believe will be highly economic at prevailing oil prices,” he said.
Australis’ board deemed it appropriate to wait to update the undeveloped reserve assessment until there was more clarity on future development plans as the company sought a partner to help progress the TMS field development.
ATS shares ended the day’s trading session up 3.57 per cent at 5.8 cents.