Alba Mineral Resources PLC Horse Hill-1 Flow Test Consent (3658H)
November 30 2015 - 6:15AM
UK Regulatory
TIDMALBA
RNS Number : 3658H
Alba Mineral Resources PLC
30 November 2015
30 November 2015
Alba Mineral Resources plc
("Alba" or the "Company")
Horse Hill-1 Oil Discovery, Weald Basin, UK
Flow Test Consent from the UK Environment Agency
Alba Mineral Resources Plc (AIM:ALBA) announces that it has been
informed by Horse Hill Developments Limited ("HHDL") that the
Environment Agency ("EA") has formally granted the necessary permit
to flow test the Horse Hill-1 ("HH-1") oil discovery well. The HH-1
well, drilled at the end of 2014, is located within onshore
exploration Licence PEDL137, on the northern side of the Weald
Basin near Gatwick Airport, in which Alba owns a 9.75%
interest.
Operational planning for the test is in the final stages of
completion and the necessary work-over rig and test equipment have
been contracted. The Company expects these flow tests to be
conducted in the coming months following the last remaining
regulatory sign-offs from the Health and Safety Executive ("HSE")
and Oil and Gas Authority ("OGA").
The flow test is designed to test both the oil bearing Upper
Portland sandstone reservoir and the Kimmeridge limestone
reservoirs beneath the Portland. The test will provide the
necessary reservoir engineering data to enable the Company to
assess the commercial viability of the Portland sandstone oil
discovery, which encountered significant oil shows whilst drilling,
and to further the "proof of concept" process for the Kimmeridge
tight oil play, which has previously been shown to flow oil
elsewhere in the same formations of the Weald Basin, at Balcombe
some 10 miles to the south.
Mike Nott, Alba's CEO, commented:
"The Environment Agency's consent to the proposed flow test is a
significant and very welcome development. The flow test's outcome
will help shape both future Portland oil development activities and
our knowledge and growth in the Kimmeridge tight oil play within
the HHDL licences.
We look forward to confirmation of the remaining regulatory
sign-off, which we understand HHDL expect to have in place
shortly."
For further information please contact:
Alba Mineral Resources
plc
Michael Nott, CEO +44 20 3696 4616
Cairn Financial Advisers
LLP
Avi Robinson / James Caithie +44 20 7148 7900
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil
Badger +44 1293 517744
Glossary
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
---------- ---------------------------------------------
flow test a flow test or well test involves
testing a well by flowing hydrocarbons
to surface, typically through a test
separator. Key measured parameters
are oil and gas flow rates, downhole
pressure and surface pressure. The
overall objective is to identify the
well's capacity to produce hydrocarbons
at a commercial flow rate
---------- ---------------------------------------------
limestone a sedimentary rock predominantly composed
of calcite (a crystalline mineral
form of calcium carbonate) 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
---------- ---------------------------------------------
play a set of known or postulated oil and
or gas accumulations sharing similar
geological, geographical, and temporal
properties, such as source rock, migration
pathways, timing, trapping mechanism,
and hydrocarbon type
---------- ---------------------------------------------
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.
---------- ---------------------------------------------
tight oil oil found or expected to be present
within a reservoir with low permeability,
i.e. a tight reservoir. The term,
in the case of the Weald Tight Oil
Plays, is applied to a play where
trapped petroleum accumulations are
expected to be pervasive throughout
a large area and that are not significantly
affected by hydrodynamic influences
(also called "continuous-type deposits")
---------- ---------------------------------------------
About Alba
Alba holds interests in the following projects:
-- UK onshore oil & gas
o A 15% in Horse Hill Developments Limited, the owner of a 65%
participating interest and operatorship of the Horse Hill oil and
gas project (Licence PEDL 137 and PEDL 246) ("Horse Hill"), located
on the northern side of the Weald Basin near Gatwick Airport.
Independent reports prepared by Nutech and Schlumberger have
assessed the petrophysics of the Horse Hill-1 well ("HH-1") (refer
to our announcement on 26 August 2016 for details) and the report
findings will be integrated into the planned flow test of HH-1
expected later this year, subject to approval by the Environmental
Agency.
o An option to farm into 5% of Production Licence 235, which
comprises the producing onshore Brockham Oil Field.
-- Amitsoq (graphite) - an option to earn up to a 70% interest
in a graphite project in Southern Greenland. The licence area
comprises the historic Amitsoq graphite mine and is prospective not
only for graphite but also for copper, gold, nickel and platinum
group elements. During the option period, Alba intends to undertake
further historical data acquisition and to carry out field work
(ground truthing, mapping and sampling). A remote sensing study is
expected to be commissioned to complete this first phase of work
(refer to our announcement dated 6 October 2015 for further
details).
-- Mauritania (uranium) - a joint venture with FOSSE Investments
Limited comprising early phase exploration targets.
-- Ireland (base metals) - 10 km away from and part of the same
target unit as the Pallas Green property.
Alba continues actively to review and discuss other project
opportunities which have value-enhancing potential for the Company
whether by acquisition, farm in or joint venture in a range of
jurisdictions around the world.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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