TIDMALBA
RNS Number : 7933W
Alba Mineral Resources PLC
03 August 2018
Alba Mineral Resources plc
("Alba" or the "Company")
Completion of Portland High Rate Flow Test
Horse Hill-1 ("HH-1") oil discovery, Weald Basin, UK
Highlights:
-- Portland short-term high rate tests achieve stable implied
equivalent daily pumped rates of 401 and 414 barrels of oil per day
("bopd") of dry 36 API oil over two periods of 6 and 2 hours,
respectively. Maximum instantaneous half-hourly pumped rates of 441
and 470 bopd.
-- The maximum rate recorded was limited by the rod pump's
maximum rate capacity of approximately 470 bopd. Higher capacity
rod pump sourced and mobilised for use at HH-1.
-- Metered daily oil rates and recovered Portland volumes, to date, exceed 2016 test values.
-- Associated solution gas rates of around 41,000 cu ft per day.
-- Forward extended well test ("EWT") programme includes flow
optimisation necessary to determine the maximum sustainable
long-term flow rate and a lengthy stabilised flow period to test
whether the well accesses a commercially viable oil volume.
-- The further EWT objective, to establish the commerciality of
the Kimmeridge Limestone 3 & 4 oil pools, will follow directly
after the completion of the Portland test sequence.
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,
located in licence PEDL137, in which Alba holds an 11.765%
beneficial interest, has informed the Company that the planned high
rate Portland test sequence, designed to assess the reservoir's
maximum short-term flow capacity, has been successfully completed.
Stable implied daily pumped rates of 401 and 414 bopd of dry 36 API
oil were recorded over two periods of 6 and 2 hours respectively,
with associated maximum half-hourly pumped rates of 441 and 470
bopd. Metered solution gas rates of around 41,000 cu ft per day
were recorded through the test separator over the two maximum rate
periods.
George Frangeskides, Alba's Executive Chairman, commented:
"These latest positive Portland results continue to build on the
Portland tests conducted in 2016. It should be stressed, however,
that these short-term, high rate test results are not the long-term
sustainable rates of production from the well on which the
assessment of commerciality will be based and that Portland testing
operations are continuing. Following the completion of the Portland
test programme, the Operator will move directly onto the long-term
Kimmeridge test programme, with the objective being to establish
the commerciality of the Kimmeridge Limestone 3 & 4 oil pools.
We look forward to providing further updates on progress as we move
through the programme."
The Company has been further advised that:
-- as maximum initial rates were restricted by the pump's
capacity of around 470 bopd, a larger capacity pump has been
sourced and has been mobilised to site for possible use during the
remainder of the Portland test sequence;
-- to date, the recorded implied daily oil rates and overall
produced Portland oil volumes exceed those reported from the
initial short-term test programme of March 2016. The Portland oil
exported from HH-1 to date is of Brent Crude quality and exceeds
minimum refinery specifications, containing only around 0.2% water
content.
It should be noted that the Operator has advised that the above
high rate results are not the long-term sustainable flow rates that
will be utilised to assess the Portland's commercial viability as
part of the next test phase.
Forward EWT Plans
HHDL has advised the Company that following a planned further
short restricted flow period and pressure build up test, flow will
be further optimised to determine the well's sustainable long-term
production rate and to test whether the well can recover a
commercially viable volume of oil.
The further EWT objective, of testing the two underlying
Kimmeridge Limestone 3 & 4 oil pools which in 2016 flowed 40
API crude naturally to surface at an aggregate implied stable dry
oil rate of 1,365 bopd, will commence directly after completion of
the Portland test.
Further updates will be provided as the EWT progresses.
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 College London), 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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