BLR Black Rock Oil

RNS Number:0096J
Black Rock Oil & Gas PLC
03 December 2007


For immediate release                                      3 December 2007

                            Black Rock Oil & Gas Plc
                        ("Black Rock" or the "Company")

                               Update on projects


The Directors are pleased to provide an update on the company's activities in
Colombia and the Southern North Sea. In summary:

   *The Acacia Este -1 discovery well has been re-worked with a gravel pack
    and has commenced an extended production test, with positive production
    results at a current average of 70 barrels of oil per day ("BOPD") under low
    pump rates. The Directors expect that the Acacia Este-2 appraisal well will
    be spudded in December and it will enter an extended production test early
    in 2008. The location of a further appraisal well will be determined
    following the acquisition in early 2008 of new seismic over the field. The
    directors continue to be excited about the prospects for Acacia Este.

   *There have been continuing operational difficulties with the Arce Field
    steam test which has now been suspended. Future options for Arce are under
    review. Meanwhile Arce 4 will be kept on cold production operations.

   *On the Alhucema contract the Arriconada-1 exploration well (previously
    known as Juanes SW) will be spudded as soon as possible after environmental
    permitting is completed. It is expected that these permits will be obtained
    during the month of December.

   *In the Southern North Sea, further activities including pre-development
    and economic screening studies have been approved in respect of the Monterey
    Field.

   *Gaffney Cline & Associates have been commissioned to provide a Competent
    Persons Report on the Company's Colombian and Southern North Sea assets as
    at 31 December 2007.


Colombia - Las Quinchas Association Contract

Kappa Resources Colombia Limited ("Kappa"), the operator of the Las Quinchas
Contract, is in the process of applying for the formal assignment to Black Rock
of 50% of its interest in the Las Quinchas Association Contract. This assignment
is subject to the approval of both Ecopetrol and the ANH, the Colombian
government agency responsible for overseeing Colombia's oil and gas exploration
and production sector.


Acacia Este discovery

Operations at Acacia Este-1 were temporarily suspended in late August after the
well sanded up. Operations recommenced in late October after a work-over rig
became available and was mobilized to the well. After cleaning out the well, the
opportunity was taken to re-test the lowermost zone which had not previously
produced significant volumes. Swab tests resulted in production rates of several
barrels per day with no water. Although the rates are low, the results are very
important because this potentially extends the hydrocarbon column significantly
down dip.

A work-over was then undertaken to re-complete the well with a gravel pack
within the liner over the upper zone that had previously produced up to 101 BOPD
at a pump rates of 3-4 strokes per minute ("SPM"). Initial rates following the
work-over peaked at 98 BOPD at 2 SPM, with very little water. Production at
higher pump rates has not been undertaken as there is presently insufficient
storage capacity in the field. A pressure build up test will be carried out in
the near future, after which the well will recommence the extended production
test.

The initial appraisal well, Acacia Este-2, is expected to be spudded in early
December (to be funded from the proceeds of the September placing). Initial test
results are expected to be available around the end of the year. The two wells
will then be put on extended production test, which should start early in 2008.

The current seismic data coverage is inadequate to optimise further appraisal
well locations. The joint venture therefore intends to mobilise a seismic crew
early in 2008. The second appraisal well, Acacia Este-3, will be located after
this data has been acquired and interpreted and is planned for mid-2008.


Arce Field

Ecopetrol has declined to participate in the Arce Field at this time. Ecopetrol
has authorised Kappa, the operator of the Arce Field, and Black Rock to proceed
with the development of a 77 acre area including the 4 existing Arce wells and
the surrounding area at its sole risk. As is customary, Ecopetrol retains the
right to participate at a future date by reimbursing past costs, including a
penalty premium for those costs expended during sole risk operations.
Exploration operations outside of the sole risk area, including the Acacia Este
discovery, and untested extensions of the Arce accumulation, will also continue
to be funded by Kappa and Black Rock. Ecopetrol also confirmed that the
contract's exploration period is now over, and the contract has entered the
exploitation period.

The steam test pilot at Arce has been problematic with both the steam generation
equipment and the individual well completions. The most recent attempt has been
abandoned after components of the steam generator failed. The joint venture is
reviewing its options in the light of these continuing testing problems.

Since the joint venture is mobilising a seismic crew for Acacia Este,
consideration is being given to acquiring data over the Arce field also. This
would allow more confident selection of an up-dip location for a further
appraisal well.


Colombia - Alhucema Exploration & Production Contract

The first well under the Alhucema contract has been delayed due to permitting
and land access issues. To avoid confusion with the Juanes prospects, the Juanes
SW location and well have been renamed Arrinconada. The Directors expect
Arrinconada-1 will now be drilled in the first quarter of 2008 or as soon as the
appropriate approvals have been obtained.

Black Rock's formal assignment of interest in the Alhucema contract from Kappa
is subject to the approval of the ANH.


Southern North Sea P1147 licence

Cautious progress has been made towards development during the last six months.
Through extensive evaluation of the results of the 49/8c-4 well by the operator,
Wintershall, and modelling of the potential application of horizontal well
technology and fracture stimulation, potentially positive economics have now
been obtained for the Monterey field. Wintershall has also identified a possible
export route that would reduce non-well capital expenditure significantly. The
future work programme includes phase 2 of a detailed seismic project to evaluate
the distribution and quality of the Carboniferous reservoir units,
pre-development studies and economic screening of the Monterey field. A
mandatory 50% relinquishment of the 49/8c and 49/9d area has been completed and
the joint venture has moved into the second 4 year term of the licence.


Corporate

Black Rock has commissioned Gaffney, Cline and Associates to produce a Competent
Person's Report on its Colombian and Southern North Sea assets. Work has
commenced and it is expected that the report will be completed by the end of
March 2008 with an effective date of 31 December 2007. This will incorporate
reserves and resource estimates (as appropriate) for the current portfolio of
discoveries and prospects. The Company does not propose to update any reserves
or resource estimates while this report is pending.

As announced in September, the Company is using the proceeds of the September
placing to fund the current stage of drilling activity in its Colombian
interests as described in this announcement.


Qualified Person

Dr John Cubitt (a Director of the Company) has been involved in the oil and gas
production industry for more than 26 years. Dr John Cubitt is a registered
Chartered Geologist (CGeol) and has a BSc and PhD in geology. He has compiled,
read and approved the technical disclosure as it relates to Black Rock in this
regulatory announcement.


For further information, please contact:

Black Rock Oil & Gas Plc                               Tel: 01189 001350
Dr John Cubitt, Managing Director                      www.blackrockoil.com
                                                       ----------------------

Beaumont Cornish Limited (Nominated Adviser)           Tel: 0207 628 3396
Michael Cornish

Hanson Westhouse Limited (Broker to the Company)       Tel: 0207 601 6100
Tim Feather / Matthew Johnson

Aquila Financial Limited                               Tel: 0207 202 2600
Peter Reilly


www.blackrockoil.com


ENDS






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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