TIDMALBA
RNS Number : 1958N
Alba Mineral Resources PLC
16 January 2019
Alba Mineral Resources plc
("Alba" or "the Company")
Update on Kimmeridge Oil Production at Horse Hill-1 ("HH-1")
Alba Mineral Resources plc (AIM: Alba), the diversified mineral
exploration and development company, announces that Horse Hill
Developments Ltd ("HHDL" or the "Operator"), the operator of the
HH-1 Kimmeridge Limestone and conventional Portland Sandstone oil
discovery ("HHDL" or the "Operator"), has informed the Company that
sustained production continues to be maintained from the HH-1
extended well test ("EWT") programme, achieving a total of over
25,000 barrels ("bbl") to date, a significant production milestone.
Of that total, the Operator has informed the Company that over
21,000 bbl has been produced to date from the Kimmeridge Limestone
("KL") oil pool, more than doubling November's reported Kimmeridge
production total, no formation water has been returned to surface
during the entire EWT and dry oil and solution gas production
continues from the HH-1 well.
Based on the continued Kimmeridge EWT success and last October's
announcement of Portland commercial viability, the Company has been
informed that the Operator's plans are to continue HH-1 EWT
production until the expiry of the current permits in spring 2019
and then, subject to receipt of all necessary approvals, to move
directly into the drilling and long-term testing of two new wells,
HH-2 and HH-1z.
HH-1 is located in licence PEDL 137 in which Alba holds an
11.765% beneficial interest.
The Operator has provided the following summary of key EWT oil
production milestones achieved to date:
-- Over 25,000 bbl total aggregate Kimmeridge and Portland oil
production since early July 2018.
-- Over 21,000 bbl total Kimmeridge oil production since mid-October 2018.
-- 114 tankers of crude successfully exported to Perenco's
Hamble oil terminal. The KL's 40deg API Brent quality crude
continues to be sold at prevailing Brent crude oil prices, less a
small deduction for handling and marketing.
The Operator has provided this update of the KL EWT
programme:
-- KL4 production from a 103 ft perforated interval commenced in
late November 2018, yielding 2,192 bbl at a maximum half-hourly
metered rate of 584 barrels of oil per day ("bopd") and at an
average sustained daily continuous rate of 300 bopd over the
subsequent week.
-- Fluid and pressure build-up data gathered from the KL4 test
demonstrate that KL3 and KL4 are one single oil pool of 358 ft in
vertical extent. As a result, and as previously indicated, a
decision was made to commingle both KL3 and KL4 production (i.e.
produce from both sets of perforations at the same time).
-- Commingled KL3 and KL4 production from an aggregate 187 ft
perforated interval commenced on 4 December 2018 at a maximum
half-hourly rate of 426 bopd and continued throughout the Christmas
and New Year period, producing 8,829 bbl of 40deg API crude. The
programme included several pressure build-up tests and testing of
different pump configurations, settings and equipment.
-- Following the installation of a new downhole pump and an
optimised surface hydraulic pump unit, stable commingled production
resumed on 7 January 2019 at an increased initial rate of 525 bopd.
The sustained daily rate over the subsequent week averaged 303
bopd. A de-waxing treatment applied on 14 January 2019 led to an
increase in the hourly rate to 351 bopd. Commingled production
continues.
-- To date, the absence of produced formation water adds
continuing support to the Operator's geological concept that KL oil
lies within a significant continuous oil deposit.
-- Planning and environmental permit applications for permanent
oil production via a 7-well development were submitted to Surrey
County Council and the Environment Agency on 7 December 2018 and 10
January 2019, respectively. It is anticipated that all necessary
permits should be in place by autumn 2019, enabling a transition
from EWT production into permanent production during winter
2019.
George Frangeskides, Executive Chairman, commented:
"The plans to continue the EWT test programme into this quarter
are testament to the success of the extended testing programme that
we commenced back in July of last year. The declaration of
commerciality for the Portland sandstone, followed by these
sustained production levels at the Kimmeridge limestones, are the
solid foundations upon which the planned move into permanent
production at Horse Hill before the end of this year will be
built."
Glossary
degAPI a measure of the density of crude oil, as defined
by the American Petroleum Institute
oil field an accumulation, pool or group of pools of oil
in the subsurface that produces oil to surface.
---------------------------------------------------------
extended well a well test, as per the permission granted by
test the Oil and Gas Authority, with an aggregate flow
period duration over all zones of greater than
96 hours and up to 90 days maximum
---------------------------------------------------------
flow test a flow test or well test involves testing a well
by flowing hydrocarbons to surface, typically
through a test separator. Key measured parameters
are oil and gas flow rates, downhole pressure
and surface pressure. The overall objective is
to identify the well's capacity to produce hydrocarbons
at a commercial flow rate.
---------------------------------------------------------
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Qualified Person's Statement
The technical information contained in this announcement has
been reviewed and approved by Feroz Sultan (B.Sc (Hons) Geology,
M.Sc, Petroleum and Structural Geology, Karachi and M.Sc Petroleum
Geology, Imperial College London), a petroleum geologist with over
45 years' experience in the management, exploration, development
and production of oil and gas.
For further information please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 7264 4366
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Yellow Jersey PR (Financial PR/ IR)
Tim Thompson / Harriet Jackson / Henry Wilkinson +44 77 1071 8649
alba@yellowjerseypr.com
Alba's Project & Investment Portfolio
Mining
Amitsoq (Graphite, Greenland): Alba owns a 90 per cent interest
in the Amitsoq Graphite Project in Southern Greenland and has an
option over the remaining 10 per cent.
Clogau (Gold, Wales): Alba owns a 90 per cent interest in Gold
Mines of Wales Limited ("GMOW"), the ultimate owner of the Clogau
Gold project situated in the Dolgellau Gold Belt in Wales.
Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent
of mineral exploration licence 2017/40 in north-west Greenland.
Limerick (Base Metals, Ireland): Alba owns 100 per cent of the
Limerick base metal project in the Republic of Ireland.
Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per
cent interest in mineral exploration licence 2017/41 in Melville
Bay, north-west Greenland. The licence area benefits from an
existing inferred JORC resource of 67 Mt @ 31.4% Fe.
Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent
of mineral exploration licences 2017/29 and 2017/39 in the Thule
region, north-west Greenland.
Oil & Gas
Brockham (Oil & Gas, UK): Alba has a direct 5 per cent
interest in Production Licence 235, which comprises the previously
producing onshore Brockham Oil Field.
Horse Hill (Oil & Gas, UK): Alba holds a 18.1 per cent
interest in Horse Hill Developments Limited, the company which has
a 65 per cent participating interest and operatorship of the Horse
Hill oil and gas project (licences PEDL 137 and PEDL 246 covering a
total area of 142.9 km(2)) in the UK Weald Basin.
Web: www.albamineralresources.com
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END
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