TIDMALBA
RNS Number : 6561M
Alba Mineral Resources PLC
17 October 2016
Alba Mineral Resources Plc
("Alba" or the "Company")
Horse Hill-1 Oil Discovery, Weald Basin, UK
Planning Application for Significant Appraisal Programme, UK
Weald Basin
Alba Mineral Resources plc (AIM: ALBA) announces that Horse Hill
Developments Ltd ("HHDL") has informed the Company that a planning
application has been submitted to Surrey County Council seeking
permission to conduct further significant appraisal testing and
drilling at the Horse Hill-1 ("HH-1") oil discovery, located in
Licence PEDL137, close to Gatwick Airport. The HH-1 oil discovery
achieved an aggregate stabilised flow rate of 1688 bopd from two
Kimmeridge limestones plus the overlying Portland sandstone. The
Company holds a 9.75% interest in PEDL137.
Subject to the required regulatory approvals, the first phase of
the proposed development is planned to consist of the extended
production testing of four zones, designed to confirm the
commerciality of the discovery, and to examine a previously
untested Kimmeridge limestone. The planning application also seeks
permission for a two-well drilling phase the purpose of which,
contingent on successful production testing, would be further to
appraise the extent of the oil accumulations and the field's
production capabilities. The proposed drilling phase includes plans
for a deviated sidetrack, HH-1z, which would be drilled from the
existing HH-1 borehole, together with a new well, Horse Hill-2
("HH-2"). On completion of drilling, both HH-1z and HH-2 are
planned to be long-term production tested.
In order to minimise the impact upon the locality, feedback from
both a public consultation and engagement process, undertaken in
July, and subsequent meetings with local residents'
representatives, was incorporated into the envisaged development
design and planning application. The normal local planning
authority cycle for an application not requiring an Environmental
Impact Assessment, such as at Horse Hill, takes approximately 13
weeks.
HHDL and the Company's Interest in the Licences
HHDL is a special purpose vehicle, which owns a 65% working
interest and operatorship of the Horse Hill licences, being PEDL137
and PEDL246. Alba owns a 15% shareholding in HHDL, which equates to
a 9.75% net working interest in the Licences. The remaining 35%
interest in the Licences is held by Magellan Petroleum (UK)
Limited.
Mike Nott, Alba's Chief Executive Officer, commented:
"This planning application is designed to move these already
discovered assets into near-term oil production and the
monetisation of our recoverable resources. It is also one of the
key steps in furthering our knowledge of the Kimmeridge Micritic
Limestone formations that also lie beneath our other oil and gas
interests at Brockham (PL235), which is also in the Weald Basin
some eight kilometres to the north-west of the HHDL site. We look
forward to further engaging with stakeholders and to a successful
planning outcome."
Qualified Person's Statement:
Michael Nott, aged 67, Alba's Chief Executive Officer, who has
over 45 years' relevant experience in the geological, mining,
minerals, waste disposal, industrial minerals, oil , drilling,
mineral planning and quarrying industries, has approved the
information in this announcement.
Mr Nott holds a BSc. degree in Geology from Queen Mary,
University of London, a MSc. Degree in Mineral Production
Management from the Royal School of Mines, Imperial College,
University of London, the Diploma of Imperial College in Mineral
Production Management and is a Chartered Engineer. He is a Fellow
of the Institute of Materials, Minerals and Mining, a Fellow of the
Minerals Engineering Society, a Fellow of the Institute of
Quarrying and an Associate of the Royal School of Mines
Association.
For further information please contact:
Alba Mineral Resources
plc +44 (0) 20 7264 4366
Michael Nott, CEO
Nominated Adviser +44 (0) 20 7148 7900
Cairn Financial Advisers
LLP
James Caithie / Liam
Murray
Broker +44 (0) 1293 517 744
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil
Badger
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 is also earning
a 5% interest in Production Licence 235, which comprises the
producing onshore Brockham Oil Field.
Alba has the right to earn up to 70 per cent of the Amitsoq
Graphite Project in Southern Greenland. In addition, the Company
has recently renewed its Limerick base metal and gold licence in
the Republic of Ireland, and has applied for the reissue of a
uranium permit in northern Mauritania. The new Mauritanian permit
will be on a reduced area, and is centred on known uranium-bearing
showings.
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.
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
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extended production a flow test, or extended well test
test as per the permission granted by
the Oil and Gas Authority, with
an aggregate flow period duration
over all zones of greater than 96
hours and up to 90 days maximum
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sidetrack re-entry of a well from the well's
surface location with drilling equipment
for the purpose of deviating from
the existing well bore to achieve
production or well data from an
alternative zone or bottom hole
location, or to remedy an engineering
problem encountered in the existing
well bore.
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This information is provided by RNS
The company news service from the London Stock Exchange
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