Nu-Oil and Gas PLC PL2002-01(A) Update and Board Change (8419J)
July 03 2017 - 1:00AM
UK Regulatory
TIDMNUOG
RNS Number : 8419J
Nu-Oil and Gas PLC
03 July 2017
NU-OIL AND GAS PLC
AIM symbol: 'NUOG'
3 July 2017
NU-Oil and Gas plc
("NU-Oil" or "the Company")
Operations Commence on PL2002-01(A) and Board Change
PL2002-01(A)
Further to the announcement of 22 June 2017, NU-Oil, the
independent Oil and Gas Company, is pleased to announce that
operations on onshore petroleum lease PL2002-01(A) in western
Newfoundland, Canada have commenced. Approval for the first phase
of the work programme has been received from the Department of
Natural Resources and PVF Energy Services ("PVF") have commenced
the approved operations.
As previously announced, PVF have agreed to provide 100% of the
financing for a work programme which will consist of two phases
("Work Programme"). The first phase involves a wireline operation
to clean up the PAP#1-ST#3 well and mill out a physical obstruction
in the completion that is believed to have been restricting flow.
The well will then be flowed for a period anticipated to be between
15 and 30 days to allow for reliable analysis and evaluation of the
resulting production. Subject to satisfactory results, a rig will
be mobilised to site to undertake the second phase of the Work
Programme, which will include recompletion of the well and
installation of an appropriate artificial lift system.
The Company and PVF have agreed to share Net Revenue from
production from petroleum lease PL2002-01(A) on a 50/50 basis
following cost recovery by PVF. Enegi Oil Inc, NU-Oil's wholly
owned subsidiary, will remain as Operator.
Pursuant to the Production Sharing Agreement, PVF have the right
to drill new wells on the lease. Both the Company and PVF expect to
conclude a farm in agreement to cover this scenario in the near
future.
PL2002-01(A) contains the Garden Hill Field Trend, which is a
proven hydrocarbon bearing accumulation beneath the Port--au--Port
peninsula in Western Newfoundland that is estimated, based upon
internal reservoir models, to contain between 83 and 341MMBO
in--place, increasing to between 136 and 591MMBO when considering
the mapped offshore extent. PL2002--01(A) covers an area of 16km(2)
and holds between 21 and 97MMBO of this total. Initially discovered
in 1994 with the "PAP#1" well, the conventional Lower Ordovician,
Aguathuna Formation reservoir has since been penetrated by three
appraisal side--tracks, which support the theory that reservoir
productivity is linked to hydrothermal alteration. Extensive
testing at the Garden Hill Site observed a lack of pressure
depletion, indicating that a minimum connected volume in excess of
100 million barrels of oil is present.
Board Change
The Company also announces that Tejvinder Minhas, Executive
Director, has moved to a position of Non-Executive Director with
the Company, effective from 3rd July 2017. The increasing technical
focus of the Company has been the key reason behind the mutually
agreed decision and Tejvinder will continue to support the Company
going forward from his role as a Non-Executive.
Nigel Burton, CEO of NU-Oil, commented:
"The Company is delighted that the workover programme at
PL2002-01(A) has commenced on schedule. This new activity and
investment at the Garden Hill Field is expected to lead to
production being reinstated.
I would like to thank Tej for his contribution to the Company in
his role as an Executive Director and look forward to and welcome
his future support on the Board as a Non-Executive".
Enquiries:
NU-Oil and Gas plc
Alan Minty, Executive Chairman Tel: +44 161 817 7460
Nigel Burton, CEO Tel: +44 7785 234447
Strand Hanson Limited
Rory Murphy/Ritchie Balmer Tel: +44 20 7409 3494
Beaufort Securities Limited Tel: +44 20 7382 8300
Jon Belliss
Elliot Hance
St Brides Partners Limited Tel: +44 20 7236 1177
Elisabeth Cowell
Lottie Brocklehurst
www.nu-oilandgas.com
Qualified Persons
The information in this release has been reviewed by Professor
Mike Bowman, a Non-Executive Director of NU-Oil and Gas plc. Mr.
Bowman was the President of the Petroleum Exploration Society of
Great Britain in 2012 and has over 30 years' experience in the
petroleum industry
Note to Editors:
NU-Oil and Gas plc is an independent oil and gas
company whose strategy is to build a diverse portfolio
of assets with a strong emphasis on acquiring interests
in stranded and marginal fields.
These fields are low risk highly-appraised projects
and consequently the Company's entry cost will
be low. NU-Oil will look to develop these assets
utilising solutions delivered by Marginal Field
Development Company (MFDevCo) and the MFD Consortium,
which can significantly improve the development
economics of a project. This is also expected to
enable the early booking of reserves.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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