Alba Mineral Resources PLC Horse Hill Update (4495B)
April 04 2017 - 2:00AM
UK Regulatory
TIDMALBA
RNS Number : 4495B
Alba Mineral Resources PLC
04 April 2017
Alba Mineral Resources plc
("Alba" or the "Company")
OGA Agrees Work Programme and Extends Retention Area Periods for
Horse Hill Licenses, Weald Basin, SE UK
The Company announces that it has been informed by the operator,
Horse Hill Developments Limited ("HHDL"), that the Oil and Gas
Authority ("OGA") has consented to extend the current PEDL137 and
PEDL246 Retention Areas ("RAs") until 2021. The PEDL137 and PEDL246
RAs, which cover the entirety of the licences, will now expire on
30(th) September and 30(th) June, 2021, respectively. The Company
holds a 9.75 % net interest in the licences via its 15% ownership
of the licence's operator HHDL.
The RA work programmes, now agreed with OGA, comprise; the
planned Horse Hill-1 ("HH-1") Kimmeridge and Portland production
tests, HH-1z Kimmeridge Limestone ("KL") and HH-2 Portland
appraisal wells, 50 km(2) of 3D seismic, 25 km of 2D seismic in
PEDL246 and a PEDL246 exploration step-out well. The RAs for each
licence can be further extended or modified subject to an ongoing
minimum work programme agreed by the OGA.
Mike Nott, CEO of Alba, commented:
"We are very pleased to have received this notification from the
OGA. The matter represents another significant step in the journey
from discovery to production. There is no doubt in my mind that the
Wealden area is developing into a significant natural resources oil
play and we are pleased to be one of the joint venture partners
pursuing the exploitation of one of our Country's significant
natural resources"
HH-1 Oil Discovery
The HH-1 Kimmeridge Limestone and Portland oil discovery well is
located within onshore exploration Licence PEDL137, on the northern
side of the Weald Basin, 3 km north of Gatwick Airport. As
previously reported in February and March 2016, two
naturally-fractured limestone members within the Kimmeridge
section, known as KL3 and KL4, flowed dry, 40-degree API oil, at an
aggregate stabilised natural flow rate of 1,365 barrels per day
("bopd") with no clear indication of depletion. The overlying
Portland flowed dry, 35-37 API gravity crude at a stable pumped
rate of 323 bopd. The Portland was produced at the rod-pump's
maximum achievable rate and thus flow was constrained by the pump's
mechanical capacity.
As previously reported in October 2016 and March 2016, an
application for long term production testing and further appraisal
drilling was submitted to Surrey County Council in October 2016,
and is now scheduled to be decided at the Council's planning
committee meeting in July 2017. The Company therefore envisages
that these operations will commence in the second half of 2017 upon
grant of the necessary remaining regulatory permissions.
Qualified Person's Statement
Michael Nott, aged 68, Alba's CEO, 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.
He 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.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014
For further information, please contact:
For further information please contact:
Alba Mineral Resources
plc
Michael Nott, CEO +44 20 3696 4616
Cairn Financial Advisers
LLP
James Caithie / Liam
Murray +44 20 7213 0880
Dowgate Capital Stockbrokers
Limited
Jason Robertson / Neil
Badger +44 1293 517744
Glossary:
degree API a measure of the density of crude
oil, as defined by the American
Petroleum Institute
------------- ------------------------------------------
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 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
------------- ------------------------------------------
Retention An area covering all or part of
Area ("RA") an onshore UK "14(th) Round New
Model" Licence that can be retained
until the expiry date without any
relinquishment and subject to a
work programme agreed by the OGA.
Usually, as in the case of PEDL137
and PEDL246, the Retention Area
covers the entire Licensed area
------------- ------------------------------------------
seismic use of reflected and refracted
sound waves generated at the surface
to ascertain the nature of subsurface
geological structure. 2D seismic
records a two-dimensional cross-section
through the subsurface collected
using the two-dimensional common
mid-point method. 3D seismic records
a three-dimensional image through
the subsurface using the common
depth-point method.
------------- ------------------------------------------
step-out a well designed to determine the
lateral extent of a discovered
hydrocarbon accumulation or play
------------- ------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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