TIDMSOLO TIDMUKOG
RNS Number : 7126M
Solo Oil Plc
11 May 2015
FOR IMMEDIATE RELEASE, 7 am 11 May 2015
SOLO OIL PLC
("Solo" or the "Company")
Upgrade to Horse Hill Conventional Portland Sandstone Oil in
Place Volumes
Solo is pleased to announce that its technical alliance partner
in the Horse Hill discovery in the UK Weald Basin, UK Oil and Gas
Investments plc ("UKOG"), has released a further update based on
the technical work being conducted by UKOG and the Xodus Group.
UKOG has announced a substantial upgrade to the previously
announced conventional Stock Tank Oil Initially in Place ("STOIIP")
volumes estimated for the overall Upper Portland Sandstone
conventional reservoir in the Horse Hill-1 ("HH-1") and Collendean
Farm-1 ("CF-1") structure within the PEDL137 licence area in the
Weald Basin, where Solo holds a 6.5 percent interest. This revised
STOIIP is separate to the oil-in-place volumes estimated for the
argillaceous limestones and mudstones of the Kimmeridge, Oxford and
Lias rock sections of the HH-1 well, reported on 9 April and 15
April 2015.
An independent study of the Portland Sandstone reservoir has
been conducted for UKOG by Xodus Group ("Xodus") an international
energy consultancy based in the UK. The study is based on new
petrophysical evaluations of both the HH-1 discovery and the older
CF-1 well, plus an updated interpretation of 2D seismic data across
the licence and is available on UKOG's website.
The HH-1 and CF-1 discovery lies within an approximately
100-foot thick, Upper Portland Sandstone gross reservoir interval,
within a 6 kilometre by 3 kilometre tilted fault block structure as
defined by existing 2D seismic. The crest of the Upper Portland
conventional oil discovery lies at approximately 1,760ft TVDSS and
extends over a mapped maximum areal closure of approximately 2,000
acres (approximately 3 square miles). The equivalent Upper Portland
reservoir is productive at the nearby Brockham field, some 9
kilometres to the north-north-west.
Xodus calculate that theUpper Portland Sandstone conventional
reservoir contains a "Best Estimate" (P50) gross STOIIP of 21.0
million barrels ("mmbbls") entirely within PEDL137 and encompasses
both the HH-1 and CF-1 wells. This is an increase of 12.8 mmbbls
from the 8.2 mmbbls (P50) gross STOIIP reported on 17 December
2014. This results largely from the new petrophysical evaluation of
HH-1 and CF-1 electric logs.
The Upper Portland is the uppermost, conventional, oil-saturated
reservoir found in the HH-1 and CF-1 wells. It overlies, and is
entirely separate from, the Kimmeridge, Oxford and Lias
oil-saturated argillaceous limestone and mudstone rock sections
reported on 9 April and 15 April 2015. These deeper intervals
continue to be under evaluation by UKOG and further results for the
Oxford and Lias intervals are expected shortly.
The gross Upper Portland STOIIP ranges estimated by Xodus are as
per the table below:
STOIIP (mmbbls) Low (P90) Best (P50) High Mean
Gross 100% (P10)
----------------- ---------- ----------- ------- -----
Upper Portland 14.3 21.0 30.4 21.8
----------------- ---------- ----------- ------- -----
Oil in place hydrocarbon volumes (STOIIP) should not be
construed as recoverable resources or reserves. Meaningful
estimates of recoverable oil within the Upper Portland can best be
made following the proposed HH-1 flow test (see below) and a
significant proportion of the STOIIP will not be recovered during
any future production.
Subject to approval by the relevant authorities, the operator
intends to flow test the conventional Portland sandstone zone as
part of a wider test programme of the HH-1 well later in 2015. A
successful test would then be followed by a full technical resource
assessment, and the identification of potentially recoverable
resource volumes.
UKOG has stated that the operator, Horse Hill Developments Ltd,
intends, on receipt of favourable test results, to engage with the
Oil and Gas Authority ("OGA") and other regulators, in order to
seek to move the PEDL137 licence into the Production Period as soon
as practicable, via submission of a Field Development Plan to the
OGA. The PEDL137 licence is currently in the exploration phase and
expires on 30 September 2015. HHDL has applied for a one-year
extension of the exploration phase to 30 September 2016, news of
which is awaited.
Neil Ritson, Solo's Chairman, commented:
"This report from Xodus clearly supports Solo's existing view
that there is a worthwhile sized, and potentially commercial,
discovery in the conventional sandstone reservoirs in the Upper
Portland at Horse Hill and we look forward to the results of the
planned flow test."
Solo's interest in Horse Hill:
Solo owns a 10 percent interest in Horse Hill Developments Ltd
("HHDL"), a special purpose company which owns a 65% participating
interest and operatorship of onshore licences PEDL137 and the
adjacent licence PEDL 246 in the UK Weald Basin. HHDL with a 65%
working interest in PEDL137 and Magellan Petroleum Corporation with
a 35% interest. Solo consequently has a net interest in PEDL137 and
PEDL246 of 6.5 percent.
Qualified Person's Statement:
The information contained in this announcement has been reviewed
and approved by Neil Ritson, Chairman and Director for Solo Oil Plc
who has over 35 years of relevant experience in the oil industry.
Mr. Ritson is a member of the Society of Petroleum Engineers, an
Active Member of the American Association of Petroleum Geologists
and is a Fellow of the Geological Society of London.
For further information:
Solo Oil plc
Neil Ritson
Fergus Jenkins +44 (0) 20 7440 0642
Beaumont Cornish Limited
Nominated Adviser and
Joint Broker
Roland Cornish +44 (0) 20 7628 3396
Shore Capital
Joint Broker
Pascal Keane
Jerry Keen (Corporate
Broker)
Bell Pottinger
Public Relations
Henry Lerwill
Cassiopeia Services +44 (0) 20 7408 4090
Investor Relations +44 (0) 20 3772 2500
Stefania Barbaglio +44 (0) 79 4969 0338
Glossary:
argillaceous limestone a limestone containing a significant proportion of clay minerals
------------------------- -------------------------------------------------------------------------------------------
clastic rocks composed of broken pieces of older rocks
------------------------- -------------------------------------------------------------------------------------------
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
------------------------- -------------------------------------------------------------------------------------------
electric logs tools used within the wellbore to measure the rock and fluid properties of surrounding
rock
formations
------------------------- -------------------------------------------------------------------------------------------
limestone a carbonate sedimentary rock predominantly composed of calcite of organic, chemical or
detrital
origin
------------------------- -------------------------------------------------------------------------------------------
mmbbls million barrels
------------------------- -------------------------------------------------------------------------------------------
mudstone an extremely fine-grained sedimentary rock consisting of a mixture of clay and silt-sized
particles
------------------------- -------------------------------------------------------------------------------------------
oil initially in place the quantity of oil or petroleum that is estimated to exist originally in naturally
occurring
accumulations before any extraction or production
------------------------- -------------------------------------------------------------------------------------------
petrophysical evaluation the study of physical and chemical rock properties and their interactions with fluids;
studies
typically use well logs, well cores and seismic data
------------------------- -------------------------------------------------------------------------------------------
P10 a 10% probability that a stated volume will be equaled or exceeded
------------------------- -------------------------------------------------------------------------------------------
P50 a 50% probability that a stated volume will be equaled or exceeded
------------------------- -------------------------------------------------------------------------------------------
P90 a 90% probability that a stated volume will be equaled or exceeded
------------------------- -------------------------------------------------------------------------------------------
recovery or recoverable the quantity or portion of petroleum, here oil and gas, initially-in-place that can be
extracted
by a well or wells to the surface
------------------------- -------------------------------------------------------------------------------------------
resources the Society of Petroleum engineers ("SPE") defines as all quantities of petroleum, here
oil
and gas, which are estimated to be initially-in-place; however, some users consider only
the
estimated recoverable portion to constitute a resource
------------------------- -------------------------------------------------------------------------------------------
reserves reserves are defined by the SPE as those quantities of petroleum, here oil and gas, which
are anticipated to be commercially recovered from known accumulations from a given date
forward
------------------------- -------------------------------------------------------------------------------------------
reservoir a subsurface rock formation containing an individual natural accumulation of moveable
petroleum
that is confined by impermeable rock/formations
------------------------- -------------------------------------------------------------------------------------------
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
------------------------- -------------------------------------------------------------------------------------------
seismic use of reflected and refracted sound waves generated at the surface to ascertain the
nature
of the subsurface geological structures. 2D seismic records a two dimensional
cross-section
through the subsurface collected using the two-dimensional common depth point method
------------------------- -------------------------------------------------------------------------------------------
STOIIP stock tank oil initially in place
------------------------- -------------------------------------------------------------------------------------------
TVDSS true vertical depth below a subsea datum
------------------------- -------------------------------------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLSFSFUSFISESI
Scirocco Energy (LSE:SCIR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Scirocco Energy (LSE:SCIR)
Historical Stock Chart
From Sep 2023 to Sep 2024
