TIDMALBA
RNS Number : 4121Y
Alba Mineral Resources PLC
03 March 2017
3 March 2017
Alba Mineral Resources plc
("Alba" or the "Company")
Brockham Oil Field -Drilling Results Confirm
Intention to Produce from Kimmeridge Formation
Alba Mineral Resources plc (AIM: ALBA) is pleased to announce
that it has been advised by the Operator, Angus Energy plc ("Angus"
or the "Operator") that, following extensive analysis of the BR-X4Z
sidetrack well, the Operator's intention is to bring the Kimmeridge
into production at the existing Brockham production facility as
soon as the necessary OGA approval is in place.
The Brockham X4Z well, drilled to a total depth of 1,391m, was
planned to evaluate the Portland, Corallian and Kimmeridge
formations at Brockham, including an evaluation of the Kimmeridge
reservoir that had been demonstrated by the Horse Hill discovery 8
km to the South. Horse Hill Developments Limited ("HHDL"), the
operator of the well at Horse Hill, in which project Alba has a
9.75% economic interest, has announced cumulative production rates
of over 1,500 barrels per day in short term testing.
The Brockham X4Z well was intended to establish whether the
evidence of a potential reservoir reported at Horse Hill extended
further north into the Brockham licence. The well was therefore
intended to answer three main questions: Is the reservoir section
in Brockham similar in thickness and reservoir properties to what
had been reported at Horse Hill? Is there evidence of naturally
occurring fractures to enable production of oil using conventional
means? Is the content of oil in the Kimmeridge similar to Horse
Hill where oil was tested at substantial rates?
Alba is therefore pleased to report that Angus has confirmed as
follows:
-- The preliminary results from the Brockham X4Z well confirm
very similar thickness of reservoir and properties to those
reported at Horse Hill. The gross thickness of the Kimmeridge
formation in Brockham X4Z is some 385m.
-- The two limestone intervals (each around 30m) tested in Horse
Hill are also seen in the Brockham well.
-- The reservoir properties appear to be very similar to Horse
Hill, based on electrical logging evidence.
-- The first use in Europe of the Weatherford Ultra Wave
Acoustic borehole imaging tool has made it possible to see
fractures in the borehole directly, without the need to infer
fractures from logs. The information thereby obtained has confirmed
not only evidence of natural fractures in the two main limestones
intervals previously tested at Horse Hill, but also confirmed
abundant natural fractures in sections of interbedded shales and
limestones between and below the two main limestones. Around 200m
of the reservoir has this potential.
-- Angus took many samples during the drilling to use for
geochemical analysis. The initial results of this work show total
organic content through the Kimmeridge section between 2-12%,
exceeding Horse Hill in places. Furthermore, evidence shows that
the highest organic content corresponds to the limestones and, in
particular, the intervals in between the limestones which have
natural fracturing. Whilst organic content is not the same as oil
content, it is indicative of those sections where oil content will
be highest. This supports the potential for some 200m of reservoir
of interest. Actual oil content depends on the extent to which
burial has resulted in pressures and temperatures sufficient to
generate oil. Initial Tmax and Hydrogen Index readings correspond
with Horse Hill data. Since oil was produced briefly at Horse Hill
and as it is most likely that the oil in the Portland Sandstone in
Brockham is sourced from the Kimmeridge, the evidence backs a
similar oil content to Horse Hill.
-- Therefore, based on the evidence so far, Angus has confidence
that the well will be similar to Horse Hill and, perhaps, given
that the reservoir is potentially much thicker in zones not
previously tested, the results could be even better. These results
achieve everything short of production to prove the potential from
this zone.
-- Operations are in hand to install new production facilities
for the well and to prepare for production as soon as necessary OGA
approval is in place. Production is targeted for spring/summer
2017. The Operator will shortly be meeting Surrey County Council to
discuss the position in relation to the sidetrack and also to agree
what further planning permissions are necessary in order to
regularise the existing site cabins, fencing and associated
structures.
-- Additional oil shows were observed in the Portland and
Corallian formations. Currently, the Brockham number 2 well is a
temporarily suspended producing well from the Portland reservoir
and the Operator is confident of additional production from the
Portland from Brockham X4Z in due course. The Corallian formation,
with good indications of both gas and oil, is still being
evaluated.
-- Further technical analysis of the results is contained in a
presentation prepared by Angus, a copy of which is available on the
Angus website (www.angusenergy.co.uk).
Michael Nott, CEO, commented: "These results are very positive
for the Weald Basin as a whole, and very positive also for Alba
given our interests at both Horse Hill and Brockham. We look
forward to the work that will be undertaken by the consortium over
the coming months and the benefits that will arise for all
shareholders and stakeholders."
Qualified Person's Statement:
Michael Nott, aged 68, Alba's CEO, has over 45 years relevant
experience in the geological, mining, minerals, waste disposal,
industrial minerals, oil , drilling, mineral planning and quarrying
industries has approved the information in this announcement.
He holds a BSc. degree in Geology from Queen Mary, University of
London, a MSc. Degree in Mineral Production Management from the
Royal School of Mines, Imperial College, University of London, The
Diploma of Imperial College in Mineral Production Management and is
a Chartered Engineer.
He is a Fellow of the Institute of Materials, Minerals and
Mining, a Fellow of the Minerals Engineering Society, a Fellow of
the Institute of Quarrying and an Associate of the Royal School of
Mines Association.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Alba Mineral Resources
plc
Michael Nott, CEO +44 20 7264 4366
Cairn Financial Advisers
LLP
James Caithie / Liam Murray +44 20 7213 0880
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil
Badger +44 1293 517744
About Alba
Alba holds a 15 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. Alba is also earning
a 5% interest in Production Licence 235, which comprises the
producing onshore Brockham Oil Field.
Alba is the owner of 90 per cent of the Amitsoq Graphite Project
in Southern Greenland. In addition, the Company recently renewed
its Limerick base metal licence in the Republic of Ireland until
May 2018. The Company has applied for the reissue of a uranium
permit in northern Mauritania. The new Mauritanian permit will be
on a reduced area, and is centred on known uranium-bearing
showings.
Alba continues actively to review and discuss numerous other
project opportunities which have value-enhancing potential for the
Company whether by bolt-on or stand-alone acquisition, farm in or
joint venture in a range of jurisdictions around the world.
Technical Glossary
Burial: As layers are piled one upon another, the sediments
beneath are buried.
Hydrogen Index: The number of hydrogen atoms per unit volume
divided by the number of hydrogen atoms per unit volume of pure
water at surface conditions. The hydrogen index (HI) is thus the
density of hydrogen relative to that of water. It is a key factor
in the response of a neutron porosity log.
OGA: the Oil & Gas Authority, an independent Government
agency, established by the UK Government in its current form on 1
October 2016.
Tmax: The temperature at which the maximum rate of hydrocarbon
generation occurs in a kerogen sample during pyrolysis analysis
Weatherford Ultra Wave Acoustic borehole imaging tool: Acquires
high resolution images in Oil Based Mud Environments. Its two
measurements are the travel time and amplitude of the ultrasonic
wave emitted from the ultrasonic transducer and reflected back from
the formation to the tool. It provides calliper measurement and the
detection of formation/geological features (beddings and fractures)
and borehole breakouts from the change in signal amplitude.
This information is provided by RNS
The company news service from the London Stock Exchange
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