Solo Oil Plc Weald Basin Update (0845X)
August 26 2015 - 2:05AM
UK Regulatory
TIDMSOLO
RNS Number : 0845X
Solo Oil Plc
26 August 2015
FOR IMMEDIATE RELEASE, 7:05 am 26 August 2015
SOLO OIL PLC
("Solo" or the "Company")
Weald Basin Update
Solo notes with interest further resource estimates provided by
UK Oil & Gas Investments PLC ("UKOG") which have been
independently prepared by Schlumberger within the 55 square miles
of the PEDL137 and PEDL246 Horse Hill licences ("the Licence Area")
in the Weald Basin, located in the South East of England. Solo has
a net attributable interest of 6.5% in the Licence Area.
UKOG have stated that the tight Jurassic limestones and shales
of the Kimmeridge Clay Formation in the Licence Area are calculated
to contain a total oil in place ("OIP") of 8,262 million barrels,
with the shales of the Oxford Clay and Lias Formations containing a
further aggregate OIP of 2,731 million barrels. A breakdown of
Schlumberger's analysis by formation is given in Table 1.
Table 1: Licence Area mean OIP estimates, millions of barrels
("mmbbls")
Formation Mean OIP (mmbbls)
----------------- ------------------
Kimmeridge Clay 8,262
Oxford Clay 1,017
Lias 1,714
----------------- ------------------
TOTAL 10,993
----------------- ------------------
This analysis, conducted solely for UKOG, builds upon
Schlumberger's previous petrophysical evaluation of the Horse
Hill-1 well ("HH-1"), located in PEDL137 near to London Gatwick
Airport, and announced on 5 June 2015. Further independent work by
Nutech was announced on 18 June 2015. The new report incorporates
the analysis of a further nine wells located within or near to the
Licence Area. In Schlumberger's previous HH-1 analysis a total mean
OIP, excluding the Upper Portland sandstone oil discovery, of 255
million barrels of oil per square mile was calculated. The latest
estimate is equivalent to approximately 200 million barrels per
square mile on an average basis across the Licence Area.
It should be noted, as previously reported, that the HH-1 Upper
Portland sandstone oil discovery is a geologically separate oil
accumulation from, and additional to, the identified underlying
Jurassic tight oil plays being reported on by Schlumberger.
Neil Ritson, Solo's Chairman, commented:
"Whilst the new data from Schlumberger does not materially
change the estimates previously released following work conducted
by Nutech for UKOG and Solo, we are of course encouraged by the
similarity of the resources estimated made by two independent
groups using their own proprietary methodologies. The prospective
resources in the Jurassic could clearly be very substantial. The
upcoming flow test of the Portlandian discovery will also be
important in establishing the viability of conventional reservoirs
to produce commercially from the Horse Hill oil discovery."
Estimated OIP hydrocarbon volumes should not be construed as
recoverable resources or reserves and also should not be construed
in any way to reflect potential production of hydrocarbons from the
formations evaluated.
Solo's interest in the Licence Area and Horse Hill:
The Licence Area, comprising licences PEDL137 and PEDL246, is
located on the northern side of the Weald Basin of South East
England near Gatwick Airport. The HH-1 discovery well is located in
PEDL137. Solo owns a 10% direct interest in Horse Hill Developments
Ltd ("HHDL") a special purpose company that owns a 65%
participating interest and is the operator of the Licence Area. The
remaining 35% participating interest in the Licence Area is held by
Magellan Petroleum Corporation.
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 38 years of relevant experience in the energy sector.
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 3794 9230
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
LLP +44 (0) 20 7408 4090
Investor Relations +44 (0) 20 3772 2500
Stefania Barbaglio +44 (0) 79 4969 0338
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
------------------- -----------------------------------------------
electric logs tools used within the wellbore to
measure the rock and fluid properties
of surrounding rock formations
------------------- -----------------------------------------------
flow test a flow test or well test involves
testing a well by flowing hydrocarbons
to surface, typically through a
test separator. Key measured parameters
are oil and gas flow rates, downhole
pressure and surface pressure. The
overall objective is to identify
the well's capacity to produce hydrocarbons
at a commercial flow rate
------------------- -----------------------------------------------
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
------------------- -----------------------------------------------
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 characterised
by that distribution
------------------- -----------------------------------------------
oil in place the quantity of oil or petroleum
that is estimated to exist originally
in naturally occurring accumulations
before any extraction or production
------------------- -----------------------------------------------
petrophysics the study of physical and chemical
rock properties and their interactions
with fluids utilising electric logs,
physical rock and fluid measurements
------------------- -----------------------------------------------
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
------------------- -----------------------------------------------
recoverable those quantities of petroleum (oil
resources in this case) estimated, as of a
given date, to be potentially recoverable
from known accumulations
------------------- -----------------------------------------------
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
------------------- -----------------------------------------------
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
------------------- -----------------------------------------------
shale a laminated and fissile very fine-grained
sedimentary rock, consisting of
compacted silt and clay-size mineral
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