TIDMPRIM
RNS Number : 7152Z
Primorus Investments PLC
19 December 2017
Primorus Investments plc
("Primorus" or the "Company")
Operational Update
Horse Hill-1 Oil Discovery, Weald Basin, UK
Highlights:
-- 150-day production flow-test and new drilling programme set
to commence in late winter 2017/18
-- Programme aims to confirm commerciality of Portland and
Kimmeridge oil discoveries and gear-up for first permanent oil
production targeted for early 2019.
-- Drilling of HH-2 appraisal well as future producer to directly follow flow testing programme
-- Permanent production consent application underway, submission to SCC expected in spring 2018
-- Swift and successful eviction of protesters completed at Horse Hill site
Primorus announces that it has been advised by Horse Hill
Developments Ltd ("HHDL"), the operator of the Horse Hill-1
("HH-1") oil discovery, in which the Company holds a 10% interest,
that key contracts and the requisite funding commitments from all
participants are in place to undertake the production flow testing
and drilling campaign approved by Surrey County Council ("SCC") in
October 2017. The 2018 programme is planned to commence directly
upon the discharge of SCC's pre-commencement planning conditions,
expected by the end of winter 2017/18. Environment Agency approval
for the full programme was granted in September 2017.
Horse Hill Oil Discovery
The HH-1 Portland sandstone and Kimmeridge Limestone oil
discoveries lie within onshore Weald Basin licences PEDL137 and
PEDL246 covering an area of 55 square miles (143 km(2) ) north of
Gatwick Airport. As previously reported on 21 March 2016, HH-1 flow
tested at a significant commercial aggregate stable dry oil rate of
1,688 barrels of oil per day ("bopd") from the Portland, Kimmeridge
Limestone 3 ("KL3") and Kimmeridge Limestone 4 ("KL4") reservoir
horizons.
2018 Horse Hill Flow Test Programme
Following a short period of civil works to upgrade site
facilities, a 150-day production testing programme focused upon the
Portland, KL3 and KL4 reservoirs will commence. As commercially
viable initial flow rates were established by the 2016 flow tests,
the 2018 testing programme's goal is to confirm that HH-1's
reservoirs are each connected to a commercially viable oil volume,
thus enabling a declaration of commerciality to be made.
The Portland, KL3 and KL4 flow tests, each planned for around
30-40 days duration, will consist of a sequence of stabilised
steady state flow and shut in periods to establish the oil in place
("OIP") directly connected to the well. A short maximum flow-rate
test will also be included for each reservoir. If time permits, a
further short-term test of a deeper untested Kimmeridge reservoir
may be undertaken.
Testing will commence with the Portland reservoir, which in the
Company's opinion, given the 323 bopd stable pumped rate achieved
in 2016 and the 32 million barrels most likely OIP calculated by
Xodus in 2017, is a strong candidate for commercial viability.
Subject to a successful test, a Portland commercial declaration is
expected to be made by mid-2018. A Kimmeridge commerciality
declaration would follow programme completion and analysis of
reservoir engineering data.
2018 Horse Hill Drilling Programme
Subject to a successful testing outcome in the Kimmeridge and
Portland, the HH-2 well is planned as a future Portland producer,
with an expected spud towards the end of Summer 2018. Drilling
plans include optionality to deepen HH-2 into the Kimmeridge to
gather core and image log data, together with a possible northwards
deviation to access the adjacent oil bearing Collendean Farm fault
block's significant Portland OIP.
The HH-1z Kimmeridge sidetrack spud is now planned for 2019
following construction of a Kimmeridge reservoir model utilising
HH-1 Kimmeridge production data and any future HH-2 Kimmeridge
core.
Production Planning Application
To achieve its goal of stable, long-term Horse Hill oil
production by Spring 2019, HHDL now plans to submit a further
production planning application to SCC in late Spring 2018. This
application will seek consent to produce oil initially from
HH-1&1z, and HH-2, together with further production wells in a
second contingent drilling phase.
Horse Hill Eviction
We are informed by HHDL that on Saturday 2 December 2017, a
42-person team, including High Court bailiffs and the UK's
pre-eminent specialist protester removal contractor, successfully
removed around 20 activists who had illegally occupied part of the
Horse Hill site since Thursday 30 November 2017.
An increased security presence will now remain on the site until
completion of the 2018 programme.
The Company is rigorously pursuing all available legal means to
seek recourse for this and any future events that prevent or
obstruct its right to conduct its lawful business.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Primorus Investments plc:
+44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser:
Cairn Financial Advisers LLP
+44 (0) 20 7213 0880
James Caithie / Sandy Jamieson
Broker:
Turner Pope Investments Limited
+44 (0) 20 3621 4120
Andy Thacker
Glossary
core or coring a drilling technique that involves using a doughnut-shaped drilling bitto capture or "cut"
a continuous cylinder-shaped core of undamaged in-situ rock. The core is captured in a steel
pipe or "core barrel" above the bit. Core is normally cut in 30 feet lengths, or multiples
of 30 feet, and normally with a diameter of 3.5 or 4 inches. Core is taken in petroleum
reservoir
rocks for detailed laboratory analyses of petrophysical and geomechanical parameters
------------------- -------------------------------------------------------------------------------------------------
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
------------------- -------------------------------------------------------------------------------------------------
flow test a test period where hydrocarbons are flowed to surface 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 oil at a commercial flow rate and
to recover oil in commercial quantities or volumes
------------------- -------------------------------------------------------------------------------------------------
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, being made of the remains
of calcareous planktonic algae called coccoliths. The Kimmeridge Limestones are comprised
of fine grained coccoliths, fine grained calcium carbonate mud, clay minerals, together with
dark grey organic matter
------------------- -------------------------------------------------------------------------------------------------
oil in place (OIP) the quantity of oil or petroleum that is estimated to exist originally in naturally occurring
accumulations before any extraction or production
------------------- -------------------------------------------------------------------------------------------------
sandstone a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly
used to describe a consolidated and cemented rock made predominantly of quartz grains
------------------- -------------------------------------------------------------------------------------------------
sidetrack re-entry of a well from the well's surface location with drilling equipment for deviating
from the existing well bore to achieve production or well data from an alternative zone or
bottom hole location
------------------- -------------------------------------------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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