TIDMALBA TIDMUKOG
RNS Number : 2319K
Alba Mineral Resources PLC
15 April 2015
15 April 2015
Alba Mineral Resources PLC
("Alba" or the "Company")
Clarification of Press Comment in relation to 9 April
Announcement
Alba announces that UK Oil and Gas Investments Plc ("UKOG") has
made the following news release with respect to the Horse Hill-1
well in the UK's Weald Basin. See the UKOG announcement reproduced
below.
Horse Hill
The Horse Hill-1 well is located within onshore exploration
licence PEDL 137, on the northern side of the Weald Basin near
Gatwick Airport. Alba owns a 10% direct interest in HHDL. HHDL is a
special purpose company that owns a 65% participating interest and
operatorship of Licence PEDL 137 and the adjacent Licence PEDL 246
in the UK's Weald Basin. The participants in the Horse Hill-1 well
are HHDL with a 65% working interest and Magellan Petroleum
Corporation with a 35% interest. Alba's net attributable interest
in PEDL 137 and 246 is therefore 6.5%.
For further information, please contact:
Alba Mineral Resources plc
Michael Nott, CEO +44 (0) 20 3696 4616
Cairn Financial Advisers
LLP
Avi Robinson/ James Caithie
Dowgate Capital Stockbrokers +44 (0) 20 7148 7900
Limited:
Jason Robertson/ Neil Badger +44 (0) 1293 517 744
The UKOG news release of 15 April 2015 in full is as
follows:
Further to its announcement of 9 April 2015 in relation to the
upgrade of its Horse Hill discovery, London quoted UK Oil & Gas
Investments PLC (LSE AIM: UKOG) wishes to repeat and clarify a
number of points as a result of recent reports in the media.
US-based Nutech Ltd ("Nutech") estimates that the Horse Hill-1
("HH-1") well in the Weald Basin has a total oil in place ("OIP")
of 158 million barrels ("MMBO") per square mile. The upgrade is in
relation to the Kimmeridge, Oxford and Lias sections of Horse Hill
and does not relate to the previously reported Upper Portland
Sandstone oil discovery.
The OIP hydrocarbon volumes estimated should not be considered
as either contingent or prospective resources or reserves.
The Horse Hill licences cover 55 square miles of the Weald Basin
in southern England in which the Company has a 20.358% interest. It
is estimated that the relevant Jurassic section of the Weald Basin
is approximately 1,100 square miles. The Company has not undertaken
work outside of its licence areas sufficient to comment on the
possible OIP in either the approximate 1,100 square miles or the
whole of the Weald Basin.
Further development work in the form of appraisal drilling, well
testing and assessment of recovery factors will be required to seek
to quantify net resources in relation to the Company's licence
areas and to prove its commerciality.
Nutech's report to the Company states this OIP of HH-1 lies
within a 653 feet aggregate net pay section, primarily within three
argillaceous limestones and interbedded mudstones of the
Kimmeridge, and the mudstones of the Oxford and Lias sections.
Approximately 72% of OIP, or 114 MMBO, lies within the Upper
Jurassic Kimmeridge interbedded limestone and mudstone
sequence.
In order to establish estimates of total OIP within the licence
areas, the semi-regional resource potential of the Weald Basin's
eastern footprint is the subject of ongoing analysis under the
contracted alliance between Nutech, UKOG and Solo Oil Plc. The
results of the estimated OIP within the licence will be reported
when completed.
Final assessments of the Upper Portland Sandstone and the Oxford
and Lias sections are in progress, with further results expected
shortly.
The executive summary of the Nutech report is available on the
Company's website at www.ukogplc.com.
UKOG's interest in Horse Hill:
The Horse Hill-1 well is located within onshore exploration
License PEDL137, on the northern side of the Weald Basin near
Gatwick Airport. UKOG owns a 30% direct interest in Horse Hill
Developments Ltd ("HHDL") and a 1.32% interest in HHDL via its 6%
interest in Angus Energy Limited. HHDL is a special purpose company
that owns a 65% participating interest and operatorship of Licence
PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.
Qualified Person's Statement:
Stephen Sanderson, UKOG's CEO, who has over 30 years of relevant
experience in the oil industry, has approved the information
contained in this announcement. Mr Sanderson is a Fellow of the
Geological Society of London and is an active member of the
American Association of Petroleum Geologists.
For further information please contact:
UK Oil & Gas Investments PLC
David Lenigas / Donald Strang Tel: 020 7440 0640
WH Ireland (Nominated Adviser and Broker)
James Joyce / Mark Leonard Tel: 020 7220 1666
Square 1 Consulting (Public Relations)
David Bick / Mark Longson Tel: 020 7929 5599
Glossary:
argillaceous a limestone containing a significant
limestone proportion of clay minerals
--------------------- ------------------------------------------------
contingent resources those quantities of petroleum estimated,
as of a given date, to be potentially
recoverable from known accumulations,
but the applied project(s) are not yet
considered mature enough for commercial
development due to one or more contingencies;
contingent resources may include, for
example, projects for which there are
currently no viable markets, or where
commercial recovery is dependent on
technology under development, or where
evaluation of the accumulation is insufficient
to clearly assess commerciality; contingent
resources are further categorized in
accordance with the level of certainty
associated with the estimates and may
be sub-classified based on project maturity
and/or characterised by their economic
status
--------------------- ------------------------------------------------
discovery a discovery is a petroleum accumulation
for which one or several exploratory
wells have established through testing,
sampling and/or logging the existence
of a significant quantity of potentially
moveable hydrocarbons
--------------------- ------------------------------------------------
limestone a carbonate sedimentary rock predominantly
composed of calcite of organic, chemical
or detrital origin. Minor amounts of
dolomite, chert and clay are common
in limestones. Chalk is a form of fine-grained
limestone
--------------------- ------------------------------------------------
MMBO millions of barrels of oil
--------------------- ------------------------------------------------
mudstone an extremely fine-grained sedimentary
rock consisting of a mixture of clay
and silt-sized particles
--------------------- ------------------------------------------------
net resources ownership interest share of resources
--------------------- ------------------------------------------------
oil in place the quantity of oil or petroleum that
(OIP) is estimated to exist originally in
naturally occurring accumulations before
any extraction or production
--------------------- ------------------------------------------------
pay a reservoir or portion of a reservoir
that contains economically producible
hydrocarbons. The term derives from
the fact that it is capable of "paying"
an income. The overall interval in which
pay sections occur is the gross pay;
the smaller portions of the gross pay
that meet local criteria for pay (such
as minimum porosity, permeability and
hydrocarbon saturation) are net pay
--------------------- ------------------------------------------------
prospective those quantities of petroleum estimated,
resources as of a given date, to be potentially
recoverable from undiscovered accumulations
by application of future development
projects; prospective resources have
both an associated chance of discovery
and a chance of development; prospective
resources are further sub-divided in
accordance with the level of certainty
associated with recoverable estimates
assuming their discovery and development
and may be sub-classified based on project
maturity
--------------------- ------------------------------------------------
recovery factor those quantities of petroleum, as a
proportion of OIP anticipated to be
commercially recoverable by application
of development projects to known accumulations
from a given date forward under defined
conditions
--------------------- ------------------------------------------------
reserves those quantities of petroleum anticipated
to be commercially recoverable by application
of development projects to known accumulations
from a given date forward under defined
conditions; reserves must further satisfy
four criteria: they must be discovered,
recoverable, commercial and remaining
(as of the evaluation date) based on
the development project(s) applied;
reserves are further categorized in
accordance with the level of certainty
associated with the estimates and may
be sub-classified based on project maturity
and/or characterised by development
and production status
--------------------- ------------------------------------------------
reservoir a subsurface rock formation containing
an individual natural accumulation of
moveable petroleum that is confined
by impermeable rock/formations
--------------------- ------------------------------------------------
resources the total of contingent resources and
prospective resources
--------------------- ------------------------------------------------
sandstone a clastic sedimentary rock whose grains
are predominantly sand-sized. The term
is commonly used to imply consolidated
sand or a rock made of predominantly
quartz sand.
--------------------- ------------------------------------------------
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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