Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 62
30 June 2021 and were effectively disposed of during
July 2021. For purposes of the “Item 18—Financial
Statements—Supplemental Oil and Gas Information”
disclosure, the closing balances as at 30 June 2021 are
presented as zero.
marketing fees. Natural gas is delivered to the sales
hubs through long-term transportation contracts
expiring between 2021 and 2033.
As at 30 June 2021 Farrell Creek comprised
31 licences and leases and Cypress A comprised 19
licences and leases. The Farrell Creek and Cypress A
asset covers an area of 18,2 thousand developed net
acres and 35,5 thousand undeveloped net acres.
Acreage retention and the conversion of licences to
leases is enabled by drilling commitments, the
provincial government’s prescribed lease selection and
validation process and licence extension applications.
Our North America proved reserves are
contained in the Canada Farrell Creek and Cypress A
asset. These represent the net economic interest
volumes that are attributable to Sasol before the
deduction of royalties. The primary sales product is
natural gas, with minor amounts of associated liquid
hydrocarbons.
Proved reserves (all quantities are net to Sasol)
Full development of the asset will require
around 2 200 wells, of which only some 9% have been
drilled and completed to date. Reserves are limited to
those volumes of gas and associated liquid
hydrocarbons attributable to Sasol that are forecast to
be produced from productive wells together with wells
to be drilled and/or completed in the approved work
programme.
Activities
During 2021, no wells were drilled or
completed.
Capitalised exploratory well costs
For purposes of the “Item 18—Financial
Statements—Supplemental Oil and Gas Information”
disclosure, the closing balances as at 30 June 2021 are
presented as zero.
At 30 June 2021, there were no exploratory
well costs capitalised in Canada.
Facilities and productive wells
Changes to proved reserves
Natural gas and liquids are produced from the
Farrell Creek and Cypress A asset by means of
production wells, flowlines, gathering lines and
processing facilities. Gas from Farrell Creek wells and
Cypress A southern wells is processed through facilities
owned by SCEP LP and PECL, covering a site of
approximately 160 000 square metres. Gas from
Cypress A northern wells is currently processed and
sold through third party production facilities.
There was an increase of 19,5 billion cubic
feet in proved gas reserves.
For purposes of the “Item 18—Financial
Statements—Supplemental Oil and Gas Information”
disclosure, the closing balances as at 30 June 2021 are
presented as zero.
Changes to proved developed reserves
At 30 June 2021, there were 158 productive
wells.
Proved developed gas reserves increased by
19,5 billion cubic feet to 76,4 billion cubic feet. An
upward revision was partially offset by production of
12,4 billion cubic feet.
Delivery commitments
We currently do not have any delivery
commitments with customers in Canada. The marketing
and sale of natural gas, and the small amount of
petroleum liquids, from the Farrell Creek and Cypress
A assets is managed on a short-term basis as part of
operations.
For purposes of the “Item 18—Financial
Statements—Supplemental Oil and Gas Information”
disclosure, the closing balances as at 30 June 2021 are
presented as zero.
Natural gas from the Farrell Creek and
Cypress A asset is sold into the Western Canada market
at two sales hubs. Pricing at each hub is based on the
daily realised spot market prices less transportation and
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