TIDMALBA
RNS Number : 2884Q
Alba Mineral Resources PLC
18 February 2019
Alba Mineral Resources plc
("Alba" or "the Company")
Update on Portland Oil Production at Horse Hill-1 ("HH-1")
Alba Mineral Resources plc (AIM: Alba) ("Alba" or the
"Company"), the diversified mineral exploration and development
company, announces that Horse Hill Developments Ltd ("HHDL" or the
"Operator"), the operator of the HH-1 Kimmeridge Limestone ("KL")
and Portland Sandstone ("Portland") oil discovery ("HHDL" or the
"Operator"), has informed the Company that Portland oil production
has been re-established from the Horse Hill-1 ("HH-1") well in
which the Company has an 11.765% interest.
The Operator further advises as follows:
- The resumption of continuous Portland dry oil flow (i.e. oil
with zero water content), at a stable daily rate of between 208 and
218 bopd ("barrels per day"), forms a key part of the schedule of
works required to finalise the Portland field development plan and
to the targeted establishment of permanent long-term Portland
production, planned by end 2019.
- The total production figures to date from the extended well
test ("EWT") at Horse Hill are as follows:
- Over 30,200 barrels ("bbl") of aggregate KL and Portland oil
production (comprising over 25,000 bbl of total KL production and
over 5,100 bbl of total Portland production).
- 142 tankers of sales crude exported primarily to Perenco's Hamble oil terminal.
- The 40deg API Brent quality crude of KL production contained
no produced water and has been sold at prevailing Brent crude oil
prices, less a small deduction for handling and marketing.
- For prudent reservoir management purposes, the average test
production rate from the 114 ft vertical perforated Portland
section has been maintained below the previously reported 362 bopd
calculated optimised sustainable rate. HH-1 test production is
planned to continue until the completion of the new HH-2 Portland
well, scheduled to start in spring 2019 subject to receipt of all
necessary approvals (noting that planning and environmental permits
are already in place), and that Portland test production would then
be switched over to HH-2.
- In tandem with Portland operations, the KL oil pool was
shut-in to conduct a further long-term pressure build up test.
Pressure gauges, set within the KL reservoir, will monitor the KL
reservoir whilst the Portland is flowed.
- Resumption of continuous KL test production is now planned to
follow directly after the drilling of HH-2. Initially via a short
flow test period from HH-1, then by further long-term production
testing of the new HH-1z KL side-track, subject to receipt of all
necessary approvals (noting that planning and environmental permits
are already in place).
George Frangeskides, Alba's Executive Chairman, commented: "We
are pleased to see the resumption of test production from the
Portland Sandstone and look forward to further reports from the
Operator as the test programme continues."
Glossary
degAPI a measure of the density of crude oil, as defined
by the American Petroleum Institute
oil field an accumulation, pool or group of pools of oil
in the subsurface that produces oil to surface.
---------------------------------------------------------
extended well a well test, as per the permission granted by
test the Oil and Gas Authority, with an aggregate flow
period duration over all zones of greater than
96 hours and up to 90 days maximum
---------------------------------------------------------
flow test a flow test or well test involves testing a well
by flowing hydrocarbons to surface, typically
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 hydrocarbons
at a commercial flow rate.
---------------------------------------------------------
side-track 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 announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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.
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 / Harriet Jackson / Henry Wilkinson +44 77 1071 8649
alba@yellowjerseypr.com
Alba's Project & Investment Portfolio
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.
Clogau (Gold, Wales): Alba owns a 90 per cent interest in Gold
Mines of Wales Limited ("GMOW"), the ultimate owner of the Clogau
Gold project situated in the Dolgellau Gold Belt in Wales.
Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent
of mineral exploration licence ("MEL") 2017/40 and 2018/25 in
north-west Greenland.
Limerick (Base Metals, Ireland): Alba owns 100 per cent of the
Limerick base metal project in the Republic of Ireland.
Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per
cent interest in MEL 2017/41 in Melville Bay, north-west Greenland.
The licence area benefits from an existing inferred JORC resource
of 67 Mt @ 31.4% Fe.
Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent
of MEL 2017/29 in the Thule region, north-west Greenland.
Oil & Gas
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.
Horse Hill (Oil & Gas, UK): Alba holds an 11.765 per cent
effective interest in the Horse Hill oil and gas project (licences
PEDL 137 and PEDL 246 covering a total area of 142.9 km(2)) in the
UK Weald Basin.
Web: www.albamineralresources.com
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END
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