TIDMPRS

RNS Number : 8677X

Paternoster Resources PLC

02 September 2015

Paternoster Resources plc

("Paternoster" or the "Company")

Announcement by MX Oil plc

Paternoster is pleased to note the announcement by MX Oil plc ("MX Oil") this morning that the company has been advised by its partners that the Aje-5 well ('Aje-5' or 'the Well') in the proven Aje Field on licence OML 113 offshore Nigeria, has reached targeted depth of 3,255 metres (measured depth) and has intersected hydrocarbon bearing intervals in line with the pre-drill geological model. The Well is now being completed as a subsea oil production well at the Cenomanian level. Aje-5 is the first of a two well Phase 1 drilling programme, targeting first oil in December 2015. Peak gross production from these two wells is estimated at 11,000 bopd, as stated in the June 2015 Competent Persons Report ('CPR'). The CPR also states that Phase 2 is targeting gross production of 19,000 bopd from an additional two well development. As announced on 13 July 2015, by MX Oil has agreed to invest in a 5% revenue interest in OML 113 via Jacka Resources.

Aje-5 is a twin to the legacy Aje-2 well, which was production tested in 1997 and flowed approximately 3,700 bopd. Aje-5 was drilled as a deviated well using the Saipem Scarabeo 3 semi-submersible drilling rig in 300 metres water depth. Aje-5 encountered 19.4 metres (vertical interval) of gross oil-bearing reservoir in the targeted Cenomanian level. Logging while drilling tools ('LWD') including gamma ray, resistivity, neutron and density have been run which confirm the presence of oil in line with pre-drill estimates.

Drilling operations have been completed ahead of schedule with no safety related incidents reported. The rig has now set a 7" production liner and Aje-5 is currently being completed as a Cenomanian production well. Following these operations, the rig will re-enter the existing Aje-4 well to complete it as a second Cenomanian production well. Aje-4 and Aje-5 represent the first of a three phase development programme of Aje.

In addition to the Cenomanian level, Aje-5 intersected 72 metres (vertical interval) of gross hydrocarbon-bearing Turonian sandstone. The reservoir has been evaluated using data obtained from a limited suite of LWD tools including resistivity and gamma ray. The LWD data is consistent with that of the Aje-1, Aje-2 and Aje-4 wells, all of which intersected a condensate-rich gas column with an underlying liquid oil rim of approximately nine metres. Preliminary indications are that the net reservoir over this interval in Aje-5 is slightly better than seen in these previous wells and a 9 5/8" casing has been set to isolate this Turonian reservoir interval. The Aje Joint Venture partners continue to evaluate opportunities to commercialise this significant hydrocarbon resource in the future.

For more information please contact:

 
 Paternoster Resources 
  plc: 
 Nicholas Lee, Chairman 
  Matt Lofgran, Non-Executive    +44 20 7580 7576 
  Director                        +1 480 993 8933 
 
 
 Nominated Advisor and 
  Joint Broker: 
 Westhouse Securities 
 Antonio Bossi / David 
  Coaten                  +44 20 7601 6100 
 
 
 Joint Broker: 
 Peterhouse Corporate Finance 
 Lucy Williams                   +44 20 7562 3351

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCPKBDDBBKDNCK

(END) Dow Jones Newswires

September 02, 2015 08:15 ET (12:15 GMT)

Viridas (LSE:VIR)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Viridas Charts.
Viridas (LSE:VIR)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Viridas Charts.