TIDMALBA
RNS Number : 6783S
Alba Mineral Resources PLC
27 June 2018
Alba Mineral Resources plc
("Alba" or the "Company")
Production Flow Test Operations Commence at
Horse Hill-1, Weald Basin, UK
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce
that it has been informed by Horse Hill Developments Ltd ("HHDL"),
the operator of the Horse Hill-1 ("HH-1") Kimmeridge Limestone 3
("KL3"), Kimmeridge Limestone 4 ("KL4") and Portland oil discovery,
that planned flow testing operations of HH-1 have commenced. Alba
is further informed that all key equipment necessary to carry out a
150-day long-term extended flow test campaign at HH-1 is now on
site.
Alba holds an 11.765% beneficial interest in licence PEDL137
containing the HH-1 oil discovery.
Following final equipment set-up and the subsequent removal of
three temporary suspension plugs in the wellbore, flow will first
be re-established from the Portland sandstone oil pool. Testing of
each of the KL4 and KL3 oil pools will follow completion of the
Portland test sequence which is expected to take 30 to 40 days.
George Frangeskides, Alba's Executive Chairman, commented:
"We are very pleased that, following receipt of all regulatory
approvals, HHDL has now confirmed that it has mobilised equipment
to site and intends to commence the extended well test programme
shortly. This test programme is designed to provide the necessary
data to assess the commerciality of the Portland and the Kimmeridge
zones at Horse Hill and, as such, clearly represents a key phase in
the Project."
The Operator, HHDL, has provided the following further
information regarding the forthcoming extended well tests.
Extended Well Test ("EWT") Overview
As the 2016 short flow test campaign established commercially
viable initial flow rates for each of the Portland, KL4 and KL3
zones, the 2018 EWT's prime goal is to confirm that the wellbore is
connected to a commercially viable oil volume within one or more of
the three zones.
The long term reservoir performance data is also expected to
provide the necessary data to enable, for the first time, Petroleum
Resources Management System compliant Kimmeridge and Portland
reserve figures to be estimated at Horse Hill.
Each test sequence will include a short, optimised rate test,
together with a sequence of "choked back" (i.e. reduced)
steady-state flow periods necessary to obtain the data required to
determine the connected oil volume within each zone. A series of
associated long pressure build up tests are also planned. Oil
produced from the EWT will be sold on the "spot" oil market and any
revenues will be utilised to offset overall testing costs.
In a move to further minimise environmental impact, the EWT will
utilise a new type of clean-burning enclosed flare, a UK onshore
industry first. The flare, utilising technology from UK landfill
sites, was developed jointly between Landfill Systems, PW Well Test
and UK Oil & Gas Investments plc.
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), a petroleum geologist with over 45 years'
experience in the management, exploration, development and
production of oil and gas.
Glossary:
discovery a discovery is a petroleum accumulation
for which one or several exploratory wells
have established through testing, sampling
and/or logging the existence of a significant
quantity of potentially moveable hydrocarbons
limestone a sedimentary rock predominantly composed
of calcite (a crystalline mineral form of
calcium carbonate) of organic, chemical
or detrital origin. Minor amounts of dolomite,
chert and clay are common in limestones.
Chalk is a form of fine-grained limestone
-----------------------------------------------------
oil field an accumulation, pool or group of pools
of oil in the subsurface. An oil field consists
of a reservoir in a shape that will trap
hydrocarbons and that is covered by an impermeable
or sealing rock
-----------------------------------------------------
Petroleum Resources A Global Standard of Reserve and Resource
Management System Classification published by the Society
of Petroleum Engineers (SPE) jointly with
the World Petroleum Council (WPC) and the
American Association of Petroleum Geologists
(AAPG)
-----------------------------------------------------
pump stroke capacity in a rod pump the product of the rod cross-sectional
area, maximum distance between the top and
bottom of the rod stroke movement and the
pump stroking speed
-----------------------------------------------------
recoverable volumes those quantities of petroleum (oil in this
or resources case) estimated, as of a given date, to
be potentially recoverable from known accumulations
-----------------------------------------------------
reserves those quantities of petroleum anticipated
to be commercially recoverable by application
of development projects to known accumulations
from a given date forward under defined
conditions. Reserves must further satisfy
four criteria: they must be discovered,
recoverable, commercial, and remaining (as
of the evaluation date) based on the development
project(s) applied. Reserves are further
categorised in accordance with the level
of certainty associated with the estimates
and may be sub-classified based on project
maturity and/or characterised by development
and production status
-----------------------------------------------------
sandstone a clastic sedimentary rock whose grains
are predominantly sand-sized. The term is
commonly used to imply consolidated sand
or a rock made of predominantly quartz sand.
-----------------------------------------------------
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
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 / Henry Wilkinson
alba@yellowjerseypr.com +44 77 1071 8649
Alba's Principal Operations & Investments
Oil & Gas
Horse Hill (Oil & Gas, UK): Alba holds an 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) in the UK
Weald Basin.
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.
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.
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.
Gold Mines of Wales (Gold, Wales, UK): Alba holds a 49 per cent
interest in Gold Mines of Wales, the ultimate owner of the Clogau
Gold project situated in the Dolgellau Gold Belt in Wales.
Inglefield Land (Multi-Commodity, Greenland): Alba owns 100 per
cent of mineral exploration licences 2017/40 and 2018/15 in
north-west Greenland.
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.
Web: www.albamineralresources.com
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END
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