TIDMALBA
RNS Number : 0012M
Alba Mineral Resources PLC
11 September 2019
Alba Mineral Resources plc
("Alba" or the "Company")
Horse Hill Oil Field Granted Long-term Production Consent by
Surrey County Council
Alba (LON: ALBA) announces that it has been informed by UK Oil
& Gas Plc ("UKOG"), the majority owner of Horse Hill
Developments Limited ("HHDL"), the operator of Horse Hill licences
PEDL 137 and PEDL 246, containing the Horse Hill-1 ("HH-1") oil
discovery, that, earlier today, Surrey County Council's ("SCC")
Planning and Regulatory Committee granted full planning consent for
long-term oil production at the Horse Hill oil field near Gatwick
Airport, subject to certain stipulated conditions.
UKOG has further advised as follows below:
Summary of Planning Consent
- The planning consent gives permission to produce oil over a
period of 25 years at up to 3,500 barrels of oil per day from a
total of six wells within the Portland and Kimmeridge oil pools,
including the existing Horse Hill-1 ("HH-1") and the forthcoming
HH-2/2z horizontal well.
- Consent also includes permission to drill one water
reinjection well to help maximise oil recovery. All existing and
future wells will be drilled from within the existing 20 x 15 metre
concrete pad. No further drilling sites beyond Horse Hill are
required.
- This consent means that the field's immediate oil production
from HH-1 and HH-2/2z will no longer be limited to existing
extended well test planning consents. Consequently, for the first
time in Horse Hill's history, Proven and Probable (recoverable)
Reserves for the field's full 25-year economic life can be
assigned.
- The permission also enables the Field Development Plan to be
finalised and submitted to the Oil and Gas Authority ("OGA") for
the necessary regulatory and technical consent. Meetings in this
respect have been scheduled with OGA in the coming weeks.
- The field's environmental permit application, covering the
four new wells and production activities, was submitted to the
Environment Agency ("EA") in January and is under determination. As
a statutory consultee to the planning application, the EA has
stated to SCC that it has no concerns regarding either production
activities or water reinjection. Drilling of the four new
production and reinjection wells will require the usual drilling
regulatory consents from the HSE and OGA.
Forward Operational Plans at Horse Hill
- The first new horizontal production well, Horse Hill-2/2z
("HH-2/2z") is scheduled to start drilling before the end of this
month, with a further new Portland production well and Portland
water reinjection well planned to follow upon completion of
production testing in early 2020.
- During HH-2/2z drilling, the Kimmeridge oil pool will continue
to be production tested to provide further key technical data and
associated sales revenues to partially offset drilling and testing
costs. Planning approval also exists to sidetrack the HH-1 well
horizontally into either the Kimmeridge or Portland oil pools.
George Frangeskides, Alba's Executive Chairman, commented:
"The decision of Surrey County Council today to grant planning
permission for long-term production from Horse Hill is a critical
milestone in this project. Alba was a founding partner in the Horse
Hill consortium and over the past four years has provided
significant funds for the project, which support has contributed in
large measure to this positive outcome. We look forward to
providing further updates as Horse Hill now progresses on its final
path to long-term production."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Glossary
flow test or well 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.
horizontal well: a well that during drilling is steered so as to
follow and remain within a particular geological stratum or
reservoir unit having a trajectory that runs approximately parallel
to the top and or base of the target horizon
oil field: an accumulation, pool or group of pools of oil in the
subsurface that produces oil to surface.
For further information, please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3907 4297
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)
Harriet Jackson / Henry Wilkinson +44 77 1071 8649
alba@yellowjerseypr.com
Alba's Project & Investment Portfolio
Project (commodity) Location Ownership
Mining Projects
Amitsoq (graphite) Greenland 90%
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Clogau (gold) Wales 90%
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Inglefield (copper, cobalt,
gold) Greenland 100%
----------- ----------
Limerick (zinc-lead) Ireland 100%
----------- ----------
Melville Bay (iron ore) Greenland 51%
----------- ----------
TBS (ilmenite) Greenland 100%
----------- ----------
Oil & Gas Investments
Brockham (oil) England 5%
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Horse Hill (oil) England 11.765%
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Web: www.albamineralresources.com
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END
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