TIDMALBA
RNS Number : 8649E
Alba Mineral Resources PLC
11 May 2017
Alba Mineral Resources plc
("Alba" or the "Company")
FDP Addendum submitted to commence production
from Brockham X4Z Kimmeridge layers
The Company is pleased to announce that it has been advised the
Operator, Angus Energy plc ("Angus Energy" or the "Operator"),
that, following consultation with the UK's Oil & Gas Authority
(OGA), it has submitted the required Field Development Plan (FDP)
Addendum to commence production from the Kimmeridge layers at its
Brockham Oil Field, Production Licence 235. In addition to the
standard HSE consent for any well operations, Angus Energy advises
that the FDP Addendum approval from the OGA is the sole regulatory
approval required to produce hydrocarbons from the Kimmeridge
layers in addition to the existing Portland production.
The Company will update investors once it is informed that the
OGA has approved the FDP Addendum.
In addition, the Company has also been advised by the Operator
of the following additional information and updates pertaining to
the planning-related matters referred to in the Company's
announcement on 10 March 2017:
-- Following Angus Energy's RNS dated 10 March 2017, Angus
Energy's guidance from 10 March 2017 is unchanged.
-- Following various press reports and speculation pertaining to
the BR-X4Z sidetrack, the legal status of said sidetrack and the
future of production from the Brockham Oil Field, for the avoidance
of any doubt Angus Energy has taken the precaution of obtaining
additional legal review from Queen's Counsel.
-- Queen's Counsel (the "QC") has confirmed her considered view
that well BR-X4 (the donor well of the X4Z sidetrack, also known as
well no. 3) has planning permission until 2036. Similarly, the QC
confirms that the sidetrack to Well BR-X4, drilled in January 2017,
is authorised by the 2006 planning permission.
-- With the review completed, Angus Energy highlights below the
potential cause for any perceived misunderstanding. Although not
material in its own right, a mismatch of well numbering in prior
administrative paperwork provided to Angus Energy appears to have
allowed some confusion to arise as to the actual operations at the
Brockham Oil Field. The key points highlighted by Angus Energy are
as follows:
-- As stated in Angus Energy's admission document to AIM, it was
the objective to drill a sidetrack from the BR-X4 well to ensure
the continued use and production from the Portland reservoir and
assess the hydrocarbon production potential from the Kimmeridge
layers and Corallian section.
-- During the preparation phase of the drilling operation, Angus
Energy detected that the surface infrastructure of the BR-X4 well
did not match its expected subsurface composition but instead,
based on the documentation available to Angus Energy, appeared to
be the original Brockham-X1 well. Angus Energy acquired the
Brockham Oil Field in 2012 and had not re-entered either the BR-X4
or Brockham-X1 well before commencement of these operations, so
this was the first time this apparent mismatch in surface and
subsurface composition had come to light.
-- In addition to necessary maintenance, re-entry of the
original Brockham-X1 well also allowed for the proper assessment of
the layers of interest.
-- The Brockham site had the benefit of existing planning
permissions granted by Surrey County Council (SCC) and the required
approvals from the EA, HSE and OGA for the maintenance work,
re-entry and/or planned sidetrack, therefore the subsurface
assessment continued. The re-entry with Measurement While Drilling
(MWD) tools confirmed that the well that had been entered was
indeed BR-X4 rather than Brockham-X1.
-- Best practice for operational safety dictated that only when
operations were finished and the well was safely cased off could
Angus Energy determine the root cause of the well numbering
confusion. Angus Energy determined that the mismatch was caused by
an undocumented, non-standard, spool piece which was installed by
the previous owners of the field and resulted in the 'mislabelling'
of the well head.
-- No matter the determination by Angus Energy, whether it was a
re-entry of Brockham-X1 or a sidetrack of BR-X4, either operation
was fully permitted within Angus Energy's regulatory approvals from
the relevant authorities. It should be noted, that a sidetrack is a
component of a drilled well. It is not a well and cannot be created
or exist independent of the actual well.
-- Angus Energy has been transparent throughout its operations.
As such, it apprised the SCC of the documentation discrepancy as
discovered during the January operations.
-- Prior to the confusion over well numbering, in December 2016
the County Council gave advice that any new well was not to be
drilled into 'any different geological formations or to a deeper
depth or into any undrilled area than already drilled to"'. The
geological area of interest was already drilled and defined by the
existing permits for the wells and their inclusive sidetracks.
Taken in the context of the actual communications, this letter is
unrelated to the operations in January.
-- For reference, the original Brockham-X1 well was drilled by
BP to a total depth of 2,070m Total Vertical Depth (TVD) while the
X4Z sidetrack only reached a depth of 1,391m TVD. Well within the
constraints of the existing geological envelope of operations.
-- Despite the misleading press reports, no new well was drilled
nor were any operations conducted into any different geological
formations, at a deeper depth or in any undrilled area.
-- Upon OGA approval, Angus Energy plans to put this well into production as soon as possible.
Michael Nott, Alba's CEO, commented:
"We are very pleased to report that the Field Development Plan
(FDP) Addendum has now submitted to the OGA to commence production
from the Kimmeridge layers at the Brockham Oil Field. We await
further updates from the Operator, Angus Energy, with great
interest."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Alba Mineral Resources plc
Michael Nott, CEO +44 20 7264 4366
Cairn Financial Advisers LLP
James Caithie / Liam Murray +44 20 7213 0880
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil Badger +44 1293 517744
About Alba
Alba holds a 15 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. Alba also has a
direct 5% interest in Production Licence 235, which comprises the
producing onshore Brockham Oil Field.
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.
In addition, the Company has 100 per cent of the Limerick base
metal project in the Republic of Ireland and has applied for the
reissue of a uranium permit in northern Mauritania, centred on
known uranium-bearing showings.
Alba continues actively to review and discuss numerous other
project opportunities which have value-enhancing potential for the
Company whether by bolt-on or stand-alone acquisition, farm in or
joint venture.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCUAVKRBOAVARR
(END) Dow Jones Newswires
May 11, 2017 06:00 ET (10:00 GMT)
Alba Mineral Resources (LSE:ALBA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Alba Mineral Resources (LSE:ALBA)
Historical Stock Chart
From Apr 2023 to Apr 2024