Alba Mineral Resources PLC Horse Hill Update (5766R)
June 30 2020 - 8:43AM
UK Regulatory
TIDMALBA
RNS Number : 5766R
Alba Mineral Resources PLC
30 June 2020
Alba Mineral Resources plc
("Alba" or the "Company")
UKOG RNS Regarding Horse Hill Oil Field
Alba Mineral Resources plc (AIM: ALBA), the diversified mineral
exploration and development company, notes the announcement today
by UK Oil & Gas Plc ("UKOG"), the majority owner of Horse Hill
Developments Limited ("HHDL"), the operator of Horse Hill licences
PEDL 137 and PEDL 246 in which Alba has an 11.765% interest. The
UKOG announcement contained the following operational update
regarding the Horse Hill Oil Field (which is extracted verbatim
below):
Regarding the Horse Hill-2z Well ("HH-2z"):
"After the initial reported high HH-2z oil rates, significant
formation water ingress was observed, requiring the successful
installation of a Thermatek plug to isolate the water inflow. It is
now clear from the image logs recorded in the well, that both the
oil and water flow originated from a series of extensive natural
fractures, primarily at the toe of the well, although there are
also further natural fractures observed higher up in the well. The
plug was initially successful in returning flow to the reported
high oil cut, however water cut built up, necessitating the well to
be produced intermittently as the water disposal costs outweighed
oil revenues."
"The HH-2z well is currently shut in for a long duration
pressure build up test to re-assess its connected oil volume.
Consequently, the company has sought an extension to the current
test permission in order to ensure that sufficient data is
available to enable the correct forward decisions to be made."
"We are reviewing a number of options for the future use of
HH-2z, including stimulation to return it into long-term oil
production, sidetracking the well to a different subsurface
location and possibly converting it into a future water
re-injection well to further reduce future operating costs (as
foreseen in the Horse Hill field development plan presented to the
OGA earlier this year)."
Regarding the Horse Hill-1 Well ("HH-1"):
"On a positive note we also firmed up our plans for the
reperforation and recompletion of HH-1. The current completion and
perforation scheme is less than optimal for both pump efficiency
and oil inflow. Consequently, if successful we remain confident
this programme can further improve the well's oil production rate.
We currently plan this activity to occur this summer."
"...the Company also plans a significant intervention in HH-1
specifically designed to further improve flow into the wellbore.
Together with a full reperforation of the entire Portland section
using a different type of perforating gun than prior operations, a
new, simpler production tubing completion will be installed. The
new completion will permit the downhole pump to be installed below
the Portland interval to significantly improve pump
efficiency."
Forward Looking Statements
This announcement contains forward-looking statements relating
to expected or anticipated future events and anticipated results
that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market
and business conditions, competition for qualified staff, the
regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political
jurisdiction, uncertainties regarding the results of exploration,
uncertainties regarding the timing and granting of prospecting
rights, uncertainties regarding the Company's or any third party's
ability to execute and implement future plans, and the occurrence
of unexpected events. Actual results achieved may vary from the
information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors.
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.
Glossary
oil field: an accumulation, pool or group of pools of oil in the
subsurface that produces oil to surface.
sidetrack: re-entry of a well from the well's surface location
with drilling equipment for the purpose of deviating from the
existing well bore to achieve production or well data from an
alternative zone or bottom hole location, or to remedy an
engineering problem encountered in the existing well bore.
For further information, please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 3907 4297
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Alba's Project and Investment Portfolio
Project (commodity) Location Ownership
Mining Projects
Amitsoq (graphite) Greenland 90%
----------- ----------
Clogau (gold) Wales 90%
----------- ----------
Inglefield (copper, cobalt,
gold) Greenland 100%
----------- ----------
Limerick (zinc-lead) Ireland 100%
----------- ----------
Melville Bay (iron ore) Greenland 51%
----------- ----------
TBS (ilmenite) Greenland 100%
----------- ----------
Oil & Gas Investments
Brockham (oil) England 5%
----------- ----------
Horse Hill (oil) England 11.765%
----------- ----------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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