TIDMALBA
RNS Number : 0569V
Alba Mineral Resources PLC
18 July 2018
Alba Mineral Resources plc
("Alba" or the "Company")
Portland Extended Flow Test ("EWT"): Well Clean-Up Phase
Complete, Dry Oil Flows to Surface,
Horse Hill-1 Oil Discovery, PEDL137, Weald Basin, UK
Highlights:
-- Initial Portland well "clean-up" phase completed successfully
-- Light sweet crude oil (36 API) and associated solution gas
flowed sustainably via pump and natural flow to surface over a
4-day period to date. Oil contains no metered water content (i.e.
"dry oil")
-- Metered daily oil rates to date equal to or exceed 2016
values. Highest observed hourly rate equivalent to an implied daily
rate of 352 barrels of oil per day ("bopd"). Corresponding metered
solution gas volumes are up to an implied rate of 30,000 cu ft per
day.
-- Flow has not yet been optimised for maximum sustainable flow rates
-- First tanker containing 214 barrels of dry oil exported to BP's Hamble oil terminal
-- Initial analysis indicates well productivity unaffected by 2 year shut-in period since 2016
-- Following a planned 24-hour shut in (i.e. pressure build-up
test) the first of three planned Portland test sequences will
commence
Alba (London AIM: ALBA) is pleased to announce that it has been
informed by Horse Hill Developments Ltd ("HHDL"), the operator of
the Horse Hill-1 ("HH-1") Kimmeridge and Portland oil discovery,
that the initial well "clean-up" phase of the Portland extended
well test ("EWT") programme has been completed according to plan.
Over the past four days, the well has delivered a sustained dry oil
and solution gas flow to surface via pump and natural flow.
Alba holds an 11.765% beneficial interest in licence PEDL137
containing the HH-1 oil discovery.
Alba has been informed by HHDL that:
-- Observed metered Portland flow rates to date are broadly
equivalent to, or exceed, those recorded during the short duration
2016 test. The highest recorded hourly metered rate to date,
equates to an implied daily rate of 352 bopd and was achieved using
a 20/64" choke, a notably more restricted setting than the 64/64"
choke used in 2016. Corresponding solution gas flows have been
measured up to an implied rate of 30,000 cubic feet per day. Note
that, to date, flow has not yet been optimised for maximum
sustainable production rates, this will follow in the subsequent
test sequences.
-- Several periods of sustained natural flow (i.e. flow to
surface without pumping) have also been observed over the past few
days, with the most productive period producing an implied daily
dry oil rate of 228 bopd over a two-hour period.
-- Initial reservoir parameter analysis indicates that the
Portland is performing very well compared to the productivity
measured in 2016 prior to temporarily shutting in and suspending
the well.
-- To date a total of 463 barrels of light sweet 36 API crude
have been recovered to surface during the clean-up period, together
with all 141 barrels of completion and kill fluids (i.e. saline
water) used to suspend the well after the 2016 well test.
Forward EWT Plans
The well will now be shut in for a planned 24-hour pressure
build-up test. Operations will then include further flow parameter
optimisation, followed by the first of three planned flow sequences
designed to assess whether the Portland oil pool contains a
commercially viable volume of oil. The first test sequence will
likely include an optimised maximum rate test, prior to choking
back the well to provide the steady state flow conditions necessary
to determine the Portland oil pool's connected oil volume. Note
that in order to collect the required data during these steady
state flow periods, rates will likely be below any future optimised
production rates.
Testing of each of the Kimmeridge Limestone 4 ("KL4") and KL3
oil pools will follow completion of the Portland test sequence.
Extended Well Test ("EWT") Overview
As the 2016 short flow test campaign established commercially
viable initial flow rates for each of the Portland, KL4 and KL3
zones, the 2018 EWT's prime goal is to confirm that the wellbore is
connected to a commercially viable oil volume within one or more of
the three zones.
The long-term reservoir performance data is also expected to
provide the necessary data to enable, for the first time, Petroleum
Resources Management System compliant Kimmeridge and Portland
reserve figures to be estimated at Horse Hill.
Each test sequence will include a short, optimised rate test,
together with a sequence of "choked back" (i.e. reduced)
steady-state flow periods necessary to obtain the data required to
determine the connected oil volume within each zone. A series of
associated long pressure build up tests are also planned. Oil
produced from the EWT will be sold on the "spot" oil market and any
revenues will be utilised to offset overall testing costs.
Qualified Person's Statement
The technical information contained in this announcement has
been reviewed and approved by Feroz Sultan (B.Sc (Hons) Geology,
M.Sc, Petroleum and Structural Geology, Karachi and M.Sc Petroleum
Geology, Imperial), a petroleum geologist with over 45 years'
experience in the management, exploration, development and
production of oil and gas.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
For further information please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 7264 4366
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Yellow Jersey PR (Financial PR/
IR)
Tim Thompson / Henry Wilkinson
alba@yellowjerseypr.com +44 77 1071 8649
Alba's Principal Operations & Investments
Oil & Gas
Horse Hill (Oil & Gas, UK): Alba holds an 18.1 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.
Brockham (Oil & Gas, UK): Alba has a direct 5 per cent
interest in Production Licence 235, which comprises the previously
producing onshore Brockham Oil Field.
Mining
Amitsoq (Graphite, Greenland): Alba owns a 90 per cent interest
in the Amitsoq Graphite Project in Southern Greenland and has an
option over the remaining 10 per cent.
Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent
of mineral exploration licences 2017/29 and 2017/39 in the Thule
region, north-west Greenland.
Gold Mines of Wales (Gold, Wales, UK): Alba holds a 49 per cent
interest in Gold Mines of Wales, the ultimate owner of the Clogau
Gold project situated in the Dolgellau Gold Belt in Wales.
Inglefield Land (Multi-Commodity, Greenland): Alba owns 100 per
cent of mineral exploration licences 2017/40 and 2018/15 in
north-west Greenland.
Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per
cent interest in mineral exploration licence 2017/41 in Melville
Bay, north-west Greenland. The licence area benefits from an
existing inferred JORC resource of 67 Mt @ 31.4% Fe.
Web: www.albamineralresources.com
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END
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