TIDMALBA
RNS Number : 4986Q
Alba Mineral Resources PLC
18 June 2015
18 June 2015
Alba Mineral Resources plc
("ALBA" or the "Company")
Independent Assessment of Horse Hill Licences
Further to the report provided to UK Oil & Gas Investments
plc ("UKOG") by Nutech in relation to the Horse Hill-1 ("HH-1")
well in the Weald basin, previously announced in April 2015, Alba
Mineral Resources plc (LSE AIM: ALBA) has been advised that Nutech
has now provided an independent report of the oil initially in
place ("OIP") contained within 55 square miles covered by the Horse
Hill licences (PEDL137 and PEDL246) near Gatwick Airport, south of
London. This evaluation does not include the OIP for the Portland
Sandstones, which has already been evaluated and reported on.
The study calculates that the total Jurassic shale plus tight
conventional reservoir section of UKOG's licences contain a Best
Estimate, or P50, OIP of 9,245 million barrels ("MMBO"). The most
significant OIP within the Jurassic section is contained within the
shales and tight conventional reservoir limestone sequences of the
Kimmeridge, with a calculated Best Estimate, or P50, total
Kimmeridge OIP of 5,230 MMBO.
As the Company has stated in relation to previous announcements,
the calculated OIP figures should not be construed as contingent
resources, prospective resources or reserves.
As detailed in the report on the Horse Hill-1 well, Nutech
considers that the analysed Kimmeridge zones are possibly analogous
to the known oil productive hybrid reservoir benches of the Bakken
of the US Williston Basin, and of the Wolfcamp, Bone Springs,
Clearfork, Spraberry, and Dean Formations in the US Permian Basin.
Nutech's proprietary database indicates that these US analogues
have estimated recovery factors of between 3% and 15% of contacted
OIP per well, again as we have reported previously. Further work
will be required to determine the likely recovery factor for the
Horse Hill licence areas.
The study also identifies possible significant OIP within the
Middle Jurassic Oolite limestone section that could be analogous to
the Mississippian Limestone Play of Oklahoma. Further work will be
carried out to establish the economics of the oil saturations in
this section.
Table 1: Summary of OIP for PEDL137 and PEDL246
OIP, MMBO
---------------------- ----------------------------------
P90 Low P50 Best P10 High Mean
---------------------- ------- -------- -------- -----
Zone KIMMERIDGE TOTAL 1,949 5,230 8,881 5,355
---------------------- ------- -------- -------- -----
Zone CORALLIAN 122 556 1,384 687
---------------------- ------- -------- -------- -----
Zone OXFORD_CLAY 188 495 908 530
---------------------- ------- -------- -------- -----
Zone OOLITE 410 1,544 3,352 1,769
---------------------- ------- -------- -------- -----
Zone LIAS_CLAY 462 1,420 2,994 1,625
---------------------- ------- -------- -------- -----
TOTAL* 3,131 9,245 17,519 9,965
---------------------- ------- -------- -------- -----
* Arithmetic sum
---------------------- ----------------- -------- -----
The above table states the estimated gross OIP.
The Nutech OIP study presents the results of a 3D geological and
petrophysical static model used to calculate the range of possible
OIP over the 55 square mile PEDL137 and PEDL246 licenses in the UK
Weald Basin. The study utilises new 2015 analyses of the HH-1 and
Collendean Farm-1 wells and the 8 closest wells to the licenses,
together with NUTECH's existing 2014 regional 3D Weald basin
framework of 114 wells.
The ranges of calculated geological and petrophysical parameters
in each well's NULOOK and NULIST interpretation were used to run a
stochastic simulation of OIP over the license areas for key
prospective tight Jurassic shale and limestone benches or reservoir
units.
Michael Nott, ALBA's CEO, commented:
"Nutech's latest report is a significant step towards
understanding the resource potential of the Weald licences, being
the first independent semi-regional quantification of OIP over the
area that incorporates the findings from the HH-1 well.
The results, utilising over 114 wells in the basin, confirm the
likely presence of significant and potentially extensive
hydrocarbon volumes within the licence areas and thus provides a
further valuable step towards "proof of concept" for the identified
Jurassic resource plays.
We now look forward to receiving Nutech's advice on the proposed
HH-1 flow test objectives."
ALBA's interest in Horse Hill:
The Horse Hill-1 well is located within onshore exploration
Licence PEDL137, on the northern side of the Weald Basin near
Gatwick Airport. ALBA owns a 10% direct interest in Horse Hill
Developments Ltd ("HHDL"). HHDL is a special purpose company that
owns a 65% participating interest and is the operator of licence
PEDL137 and the adjacent licence PEDL246 in the UK Weald Basin. The
remaining 35% participating interests in the PEDL137 and PEDL246
licences are held by Magellan Petroleum Corporation.
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 on behalf of Alba. Mr Sanderson is a
Fellow of the Geological Society of London and is an active member
of the American Association of Petroleum Geologists.
Enquiries:
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
About Nutech:
Nutech (www.nutechenergy.com) is a global oil services company
specialising in reservoir evaluation and optimisation at all stages
of the exploration and production life-cycle.
Glossary
3D three dimensional
----------------------- -------------------------------------------------------------
Benches Individual reservoir units contained within a resource
play sequence
----------------------- -------------------------------------------------------------
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
----------------------- -------------------------------------------------------------
conventional reservoir a reservoir normally with an average permeability
exceeding 1 milliDarcy.
----------------------- -------------------------------------------------------------
hybrid reservoir a conventional reservoir that sits within a generative
source rock sequence comprised of shales.
----------------------- -------------------------------------------------------------
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
----------------------- -------------------------------------------------------------
Mean or expected value, is the probability-weighted average
of all possible values and is a measure of the central
tendency either of a probability distribution or
of the random variable characterized by that distribution
----------------------- -------------------------------------------------------------
MMBO millions of barrels of oil
----------------------- -------------------------------------------------------------
NULIST NULIST is a proprietary tool of Nutech; it provides
petrophysical reservoir parameters in tabular form
and additional calculations such as OIP
----------------------- -------------------------------------------------------------
NULOOK NULOOK is a proprietary tool of Nutech; it is an
enhanced petrophysical analysis which utilises conventional
open hole electric logs
----------------------- -------------------------------------------------------------
oil initially in the quantity of oil or petroleum that is estimated
place (OIP) to exist originally in naturally occurring accumulations
before any extraction or production
----------------------- -------------------------------------------------------------
oil saturation the amount of the pore space within a reservoir
containing oil
----------------------- -------------------------------------------------------------
P10 a 10% probability that a stated volume will be equalled
or exceeded
----------------------- -------------------------------------------------------------
P50 a 50% probability that a stated volume will be equalled
or exceeded
----------------------- -------------------------------------------------------------
P90 a 90% probability that a stated volume will be equalled
or exceeded
----------------------- -------------------------------------------------------------
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 oil saturation)
are net pay
----------------------- -------------------------------------------------------------
permeability the capability of a porous rock or sediment to permit
the flow of fluids through its pore spaces
----------------------- -------------------------------------------------------------
petrophysics the study of physical and chemical rock properties
and their interactions with fluids
----------------------- -------------------------------------------------------------
play a set of known or postulated oil and or gas accumulations
sharing similar geologic, geographic, and temporal
properties, such as source rock, migration pathways,
timing, trapping mechanism, and hydrocarbon type
----------------------- -------------------------------------------------------------
porosity the percentage of void space in a rock formation,
where the void may contain, for example, water or
petroleum
----------------------- -------------------------------------------------------------
prospective resources those quantities of petroleum estimated, 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
----------------------- -------------------------------------------------------------
resource play a play where oil is found or expected to be present
within a reservoir with low permeability i.e. a
tight reservoir. The term in the case of HH-1, 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").
----------------------- -------------------------------------------------------------
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
----------------------- -------------------------------------------------------------
stochastic simulation a simulation that traces the evolution of variables
that can change stochastically (randomly) with certain
probabilities. A stochastic model creates a projection
which is based on a set of random values
----------------------- -------------------------------------------------------------
tight reservoir a reservoir with low permeability, usually below
1 millidarcy
----------------------- -------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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