13 October 2017
Doriemus Plc
("Doriemus" or the
"Company")
443 metres “Net
Oil Pay” - Lidsey-X2 Production Well
Doriemus plc (Listed in Australia ASX:DOR and listed in London
NEX:DOR) (“Doriemus” or the “Company”), is pleased to
provide an update on the drilling of its new Lidsey-X2 production
well at the Lidsey Oil Field, located at the southern edge of the
UK’s onshore Weald Basin, south of London.
Highlights:
-
Lidsey-X2 production well has reached
its planned TD of 1,700m Measured Depth.
-
443m of “net oil pay” to be produced
from the Greater Oolite limestone reservoir.
-
The 5” slotted production liner has
been successfully installed.
-
Following de-mobilisation of the
BDF-28 drilling rig, the Lidsey-X2 well will be placed into
production.
-
Planning permission in place for a
third well at the site.
-
Drilling also intersected 66m in the
Kimmeridge and 105m in the Oxford, which are now being
evaluated.
-
Upgrade of surface facilities at
Lidsey to efficiently and safely managage all future
production.
David Lenigas, Doriemus Plc’s
Executive Chairman, commented;
“This is an
excellent result for Doriemus and it’s shareholders. The drilling
of the Lidsey-X2 production well has gone like clockwork, and we
are pleased to report that the Company’s first new oil production
revenues are not far away, with the Lidsey-X2 well preparing to
bring on line 443m of net oil pay from the Greater Oolite
conventional limestone reservoir. We are also encouraged that the
Lidsey-X2 well site offers scope for further developments with the
potential extention of the Greater Oolite reservoir horizon and the
prospects of further oil zones being identified within the
Kimmeridge and Oxford layers which are now being analysed post
drilling.”
The operators of the Lidsey Oil Field, Angus Energy Plc, have
advised that:
“Angus Energy is pleased to announce it has successfully
completed the drilling of the Lidsey-X2 production well.
The Company will produce from a “net oil pay” section of 443
metres (“m”) from the Great Oolite limestone reservoir. The
production reservoir section has a Measured Depth (“MD”) of
1,230-1,673m. True Vertical Depth (“TVD”) of the production
section is measured to be 994.9m-1,009.3m.
The well reached its Total Depth (“TD”) objective at 1,700m and
the slotted oil production liner has been installed. Following
de-mobilisation of the BDF-28 drilling rig, the Lidsey-X2 well will
be placed into production.
The well was drilled on time and on budget as outlined in
previous Company guidance.
Towards the end of the horizontal section of the Great Oolite
reservoir, initial analysis by the Company showed an unexpected
change in the lithology of the well. The lithological change
indicates a potential extension, continuing to the west of the
original reservoir. This entirely new and separate section of the
Great Oolite reservoir would be at original conditions as it has
never been produced. Further analysis will be undertaken to reach a
final determination. The Company will update the market in due
course.
Drilling to the Great Oolite reservoir, the primary well
objective, the Lidsey-X2 well passed through two additional
potential production resevoirs, the Kimmeridge and the Oxford Clay
source rocks. Both are positioned above the Great Oolite.
The Kimmeridge was encountered between 782.3m-862.4m MD (with a
true vertical thickness of 66.2m). The layers in the well consisted
of a mixed series of shales and limestones typical of the formation
in the Weald Basin. Natural fractures appear to be present but
further detailed analysis of the image logging will be undertaken
to quantify this. Samples have now been sent for geochemical
analysis to verify if this section has seen pressures and
temperatures in the past needed to generate oil in commercial
quantities.
The Oxford Clay was found between 920.8m-1179.5m MD (with a true
vertical thickness of 105.0m). The Oxford Clay is a potential oil
source rock and has oil production potential where mature. The
British Geological Society (“BGS”) reported Oxford Clay has
“potential where mature (Ro > 0.6%), especially in lower parts
and where free oil exists (perhaps limited to sweet-spots)”.
As part of the above mentioned geochemical analysis, Angus Energy
has also sent samples for further examination to ascertain whether
the drilled section conforms with the previous BGS findings.
The Company notes it has planning permission for a third well at
the site and can convert the existing Lidsey-X1 well into a water
injector if required.
The Lidsey Oil Field is located on-shore at the southern edge of
the Weald Basin, near Bognor Regis.”
About the Lidsey Production Oil Field
and Doriemius Plc’s Interest:
The Lidsey Oil Field is 5.3km2 in size and located in
the southern portion of the onshore UK Weald Basin in West Sussex south of London and next to Bognor Regis on the south
coast of England.
Doriemus Plc owns a 30% direct participating working interest in
the Lidsey-X2 production well, which is located within the onshore
Lidsey Oil Field (PL 241)(Production Licence) under the rights it
has under the 21 November 2013
Farm-Out Agreement. The Lidsey Oil Field is operated by Angus
Energy Plc. In respect of all other wells on the Lidsey Oil Field,
Doriemius has a 20% participating interest and contribution to
capital costs will be 20%.
COMPETENT PERSONS STATEMENT:
Pursuant to the requirements of the
ASX Listing Rules Chapter 5 in Australia and the NEX Rules in the
United Kingdom for Companies, the
technical information and resource reporting contained in this
announcement was prepared by, or under the supervision of, Mr
Gregory Lee, who is the Technical
Director of the Company. Mr Lee has more than 30 years' diversified
experience in the petroleum industry. Mr Lee is a chartered
professional Engineer (CPEng) and a member of the society of
petroleum engineers (MSPE) and has been an independent consultant
Petroleum Engineer since 1992 and has sufficient experience in
exploration for, appraisal and development, operations of oil and
gas resources.
The directors of the Company accept responsibility for the
contents of this announcement.
CONTACTS:
For further information on this update or the Company generally,
please visit our website at
www.doriemus.co.uk or contact:
Doriemus Plc
UK Contacts:
David Lenigas (Executive
Chairman)
+44 (0) 20 7440 0640
Greg Lee (Technical
Director)
Australia Contacts:
Julia Beckett (Joint Company
Secretary)
+61
(08) 6141 3500
Email: julia.beckett@wolfstargroup.com.au
UK Advisors:
Peterhouse Corporate Finance
Limited
+44 (0) 20 7469 0930
Guy Miller
Fungai Ndoro
Technical Glossary:
BGS: The British Geological Survey is a world-leading geological
survey. It focuses on public-good science for government, and
research to understand earth and environmental processes.
MD & TVD: Measured depth (MD) is the length of the
borehole. In conventional vertical wells, this coincides with the
true vertical depth (TVD) of the borehole as measured from the
surface in a straight line, but in directional or horizontal wells,
like Lidsey-X2 these two can deviate significantly.
TD: Total Depth (TD) is the depth of the bottom of the well.
Usually, it is the depth where drilling has stopped.
Ro: Vitrinite reflectance data is presented in units
of %Ro, the measured percentage of reflected light from a
sample which is immersed in oil (%Ro = % reflectance in
oil).
FORWARD LOOKING STATEMENTS AND
IMPORTANT NOTICE:
This document may contain forward looking statements that are
subject to risk factors associated with the oil and gas industry.
It is believed that the expectations reflected in these statements
are reasonable, but they may be affected by many variables which
could cause actual results or trends to differ materially.
Investors should make and rely upon
their own enquiries before deciding to acquire or deal in the
Company’s securities.
This report contains forecasts, projections and forward looking
information. Although the Company believes that its
expectations, estimates and forecast outcomes are based on
reasonable assumptions it can give no assurance that these will be
achieved. Expectations, estimates and projections and
information provided by the Company are not a guarantee of future
performance and involve unknown risks and uncertainties, many of
which are out of the Company’s control. Actual results and
developments will almost certainly differ materially from those
expressed or implied. The Company has not audited or investigated
the accuracy or completeness of the information, statements and
opinions contained in this report. To the maximum extent
permitted by applicable laws, the Company makes no representation
and can give no assurance, guarantee or warranty, express or
implied, as to, and takes no responsibility and assumes no
liability for (1) the authenticity, validity, accuracy, suitability
or completeness of, or any errors in or omission from, any
information, statement or opinion contained in this report and (2)
without prejudice to the generality of the foregoing, the
achievement or accuracy of any forecasts, projections or other
forward looking information contained or referred to in this
report.
