TIDMMNRG
RNS Number : 4976A
MetalNRG PLC
02 June 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION 2014/596/EU (WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS
INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
2(nd) June 2021
MetalNRG plc
(The "Company" or "MetalNRG")
BritNRG 100 Days Delivery and Workover Success
MetalNRG plc (LON:MNRG), the natural resources and energy
investment company, provides an update on its investment in BritNRG
Limited ("BritNRG").
Following completion of the acquisition of the Oil and Gas
assets in Lincolnshire, completed in January 2021, BritNRG had set
a number of operational priorities, feeding into a 100-day
operational plan. The plan included engagement with key
stakeholders, in respect to priority business objectives, risk and
compliance management of the assets and a workover of one of the
blocked-in wells.
BritNRG now provides a summary of the relevant achievements,
including the completion of the workover on Whisby No. 6 well
("W6"), executed within Q2-2021 as per plan.
Key achievements include:
-- Delivery to the UK Oil & Gas Authority ("OGA") of the
updated Field Development Plan (FDP) for the Whisby field
(PL-199):
o The FDP includes an additional producer, the Whisby #7 well,
obtained by side-track drilling of a suspended producer within the
licence.
-- Completion and third-party verification of the Business
Management Systems, audited and certified by QMS International as
follows:
o Quality Management System certified against ISO 9001;
o Environmental Management System certified against ISO
14001;
o Occupational Health and Safety Management System certified
against ISO 45001;
-- Debt reconciliation plans agreed with key creditors.
-- Community Engagement Plan ready for implementation.
-- Key appointments within management team, including the group
'Risk and Compliance Director' and the 'Whisby/Newton Asset
Manager';
-- W6 well returned to production.
Whisby-6 Well Workover
The W6 well was successfully brought back into production on the
25 (th) May without any safety or environmental incidents. The W6
well was successfully brought back into production on the 25(th)
May without any safety or environmental incidents. The current W6
production is circa 50 barrels a day (initial apportion depending
on BritNRG recovering of certain costs, thereafter 15% of
production to BritNRG plus recovery of 85% of relevant
OPEX/overheads) and, with a total workover costs of circa
GBP180,000 (shared by the W6 partners), which includes new well
completions, it is expected to payback in less than three
months.
The W6 well was drilled and completed Q2 2016 by our partners,
Terrain Energy, and is operated by the Whisby (PL199) asset
operating subsidiary, Blackland Park Exploration Limited. The well
was suspended in 2018 following a wax blockage. The workover scope,
which included cleaning, recompleting (new well completions) and
retesting the well, involved a number of parties, mainly Zenith
Energy Limited as temporary duty holders for the W6 wellsite and PW
Well Services who provided the workover rig, the operational
personnel, the blowout preventer ("BOP") and the relevant
equipment.
About BritNRG
BritNRG and its subsidiaries' interests in the following UK
onshore licences: PL199 (95%, Operator); PL215 (50%); EXL141 (100%,
Operator); EXL294 (100%, Operator); PEDL090 (50%, Operator); and
PEDL209 (28%). The portfolio includes three producing licences and
three exploration permits in Lincolnshire.
The currently producing assets are within the Whisby Field
[PL199]; production comes from Whisby #4 well at c. 50bbls/day and
Whisby #6 well at c.50 bbls/day, (restarted on 25(th) May 2021
after the workover for wax cleaning and recompletion). A field
development plan was submitted to the OGA for Whisby's
redevelopment on 1(st) May 2021. Other assets are the Reepham
Field, with one well (currently shut-in) and the Newton on Trent
Field, with one well (currently shut-in), for which we are in
process of completing the reserve appraisal process with a view to
near-term redevelopment plan to be submitted.
Pierpaolo Rocco, Executive Director, Oil & Gas of MetalNRG
commented:
"Overall, we can be satisfied with the progress over the first
100 days following completion of the acquisition mid-January. The
execution of the workover without incidents and the restart of
Whisby 6 well was an early priority to improve the financial
stability of the business and to demonstrate our commitment to our
engagements and, most importantly, to safe and compliant
operations. There were issues to solve and significant risks to
manage, and I would like to thank the wide team for their
professionalism and commitment to deliver such essential
milestones. There is much left to do but we are very well placed,
and I see considerable opportunities ahead of us."
Rolf Gerritsen, CEO of MetalNRG commented:
"These developments are in line with our plans aimed to
baselining the group financial position and providing consistent
cashflow, so as to place the company in a good position to achieve
our growth objectives. We look forward to further progress."
The person who arranged for the release of this information is
Rolf Gerritsen, the Company's Chief Executive Officer.
For further information, please contact:
METALNRG PLC - Rolf Gerritsen (Chief Executive +44 (0) 20 7796
Officer) 9060
Joint Brokers:
--------------------
PETERHOUSE CAPITAL LIMITED +44 (0) 20 7469
Guy Miller / Duncan Vasey / Lucy Williams 0930
--------------------
SI CAPITAL LIMITED
Nick Emerson +44 (0) 1483 413500
--------------------
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