TIDMANGS
RNS Number : 9729W
Angus Energy PLC
20 November 2017
20 November 2017
Angus Energy Plc
("Angus Energy" or the "Company")
Lidsey Oil Field Update
Angus Energy Plc, a conventional oil and gas production and
development company, is pleased to provide an update to the Company
RNS of 17 November 2017.
Operational Update - Lidsey Oil Field
-- The Lidsey-X2 well experienced significant gas locks at pump
causing the original equipment to cease operation.
-- A 150 bopd pump with a 120-meter tailpipe extension was
installed (prior to the 17 November RNS). This pump did not gas
lock or cease functioning however every six hours the rate declined
significantly with bubbly oil recovered to surface even though
production is above bubble point.
-- The flow rate of 40 bopd, per the company RNS of 17 November
was recorded from Lidsey-X2 on Thursday 16 November whilst
attempting to identify the down hole issues. The company notes this
current rate is twice the historical output from the Lidsey
field.
-- The Lidsey-X1 well, shut in since January 2016, to be brought back in to production.
-- Angus Energy has put in place a comprehensive diagnostic
program with the help of external experts to make all necessary
repairs and adjustments to further conventional oil production at
Lidsey and increase yield from Lidsey-X2.
Geochemical Analysis Update - Lidsey-X2
Angus Energy is pleased to provide an update to the Company RNS
of 6 November 2017. The Company has now received final results from
a third-party study of tests performed on the Kimmeridge Layer and
Oxford source rocks of Lidsey-X2.
These results were received after Angus Energy fulfilled its
statutory requirements to release the above mentioned RNS of 17
November 2017.
Per the Company RNS of 6 November 2017, detailed geochemical
analysis of all potential hydrocarbon bearing formations
encountered in the Lidsey-X2 well has been performed. The Group
carried out similar work on its Brockham assets and compared the
results from Lidsey-X2 with Brockham and data from Horse Hill-1 -
the first well in the UK to successfully test oil from the
Kimmeridge - as summerised below.
The Company has received confirmation, the Lidsey-X2 has TOC
(total organic content) values similar to the Brockham and the
Horse Hill-1 well and is comparable to the Bakken Shale formation
(US).
The historical temperature reached by the rock is estimated with
the RockEval pyrolysis analyses method. Angus Energy has received
third party confirmation, the values seen at Lidsey are similar to
those seen in Horse Hill and the Bakken Shale formation. In the
Bakken Shale the onset of oil generation is at a Tmax of around
420-425deg F and this is met in both Brockham and Lidsey. The
Bakken formation is a hybrid reservoir like the Kimmeridge in that
it has fractured limestones which enable natural production. It is
therefore a close analogue to the Kimmeridge in both the generation
of oil and how it can be produced.
The results received on Friday were unexpected as basin
modelling of the Weald Basin in recent years has suggested that
peripheral areas such as the location of Lidsey would not be
expected to reach these temperatures. These temperatures appear
sufficient to generate oil thus far.
The amount of oil generated cannot be measured directly but is
indicated by the metrics S1 and S2 reflecting the total oil content
and H1 the hydrogen index.
The newly confirmed third party review of the Lidsey data and
the earlier reviewed Brockham data indicate the hydrogen index Tmax
plot for the Kimmeridge at Lidsey and Brockham to be within the
same envelope as Horse Hill-1 and the analogue of the Bakken Shale
formation. Similarly, S1 oil content and oil saturation index
derived from it, for both the Lidsey and Brockham wells also fall
in the same envelope as Horse Hill 1 and the Bakken. The Company
believes this data demonstrates that significant producible oil has
been generated.
The Kimmeridge was encountered at Lidsey-X2 between
782.3m-862.4m MD (with a true vertical thickness of 66.2m). Lidsey
has a thinner Kimmeridge section than Brockham and Horse Hill with
less limestone present. But nonetheless the limestones seen are
likely to be fractured and Angus Energy plans to attempt production
from this zone.
There are two other major source rocks seen in Lidsey as well as
Brockham - the Oxford (with a true vertical thickness of 105.0m at
Lidsey-X2) and the Lias (located below the Great Oolite reservoir
but drilled with the Lidsey-X1 exploration well). These are deeper
formations indicating greater thermal maturity. Angus Energy has
also received confirmation these formations compare favourably as
far as organic content and oil generation.
Further data is available on the company website,
www.angusenergy.co.uk.
Per the Company RNS of 17 November 2017, Angus Energy will
submit an FDP Addendum to the Oil and Gas Authority ("OGA") to
begin production appraisal of the Kimmeridge and Oxford layers at
Lidsey.
Qualified Person's Statement:
Chris de Goey, a Non-Executive Director of the Company, who has
over 20 years of relevant experience in the oil and gas industry,
has approved the information contained in this announcement. Mr de
Goey is a member of the Petroleum Exploration Society of Great
Britain and the Society of Petroleum Engineers.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
END.
About Angus Energy plc.
Angus Energy plc. is a UK AIM quoted independent onshore oil and
gas production and development company focused on leveraging its
expertise to advance its portfolio of UK assets as well as acquire,
manage and monetise select projects. Angus Energy majority owns and
operates conventional oil production fields at Brockham (PL 235)
and Lidsey (PL 241) and has a 12.5% interest in the Holmwood
licence (PEDL143).
Interest in Lidsey Oil Field (PL 241):
Following completion of the acquisition of a 10% interest from
Terrain Energy (RNS 4 May 2017) the Group will own a 60% direct
interest in the Lidsey Oil Field and a 50% economic interest in the
Lidsey-X2 well which is held under UK Production Licence PL
241.
Technical Glossary
bopd: Abbreviation for barrels of oil per day, a common unit of
measurement for volume of crude oil.
Gas lock: A condition in pumping and processing equipment caused
by the induction of free gas. The compressible gas interferes with
the proper operation of valves and other pump components,
preventing the intake of fluid.
Hydrogen Index: Gross trends of hydrogen indices (HIs) can be
used as a maturation indicator. The hydrogen index is calculated
from Rock Eval data using the following formula: 'HI = S2/TOCx100'
where S2 is the amount of hydrocarbons generated through thermal
cracking of nonvolatile organic matter in mg/g of rock and TOC is
total organic carbon in %.
Tmax: The temperature at which the maximum rate of hydrocarbon
generation occurs in a kerogen sample during pyrolysis analysis
Enquiries:
Angus Energy Plc
----------------------------- --------------------------
Jonathan Tidswell-Pretorius Tel: +44 (0) 208 899 6380
/ Paul Vonk
----------------------------- --------------------------
Beaumont Cornish (NOMAD)
----------------------------- --------------------------
James Biddle/ Roland Cornish Tel: +44 (0) 207 628 3396
----------------------------- --------------------------
Optiva Securities Limited
(BROKER)
----------------------------- --------------------------
Jeremy King/ Ed McDermott Tel: +44 (0) 203 137 1902
----------------------------- --------------------------
Yellow Jersey
----------------------------- --------------------------
Tim Thompson Tel: +44 (0) 203 735 8825
----------------------------- --------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAEFEASPXFFF
(END) Dow Jones Newswires
November 20, 2017 06:15 ET (11:15 GMT)
Angus Energy (LSE:ANGS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Angus Energy (LSE:ANGS)
Historical Stock Chart
From Apr 2023 to Apr 2024