8 March 2019
Andalas Energy and
Power Plc
(‘Andalas’ or the
‘Company’)
Update on
Colter
Andalas Energy and Power Plc (AIM: ADL) has been informed by the
Operator (Corallian Energy Limited) that the sidetrack well
98/11a-6Z has encountered the top of the Sherwood Sandstone
reservoir below the level of the 98/11-3 oil water contact and did
not penetrate the predicted fault bounding the target Colter
Prospect. The well will now be plugged and abandoned and the
rig released. Andalas has an 8% interest in Licence P1918,
including the Colter Area Prospects.
As previously reported on 25 February
2019, the Colter well (98/11a-6) was drilled as a vertical
well with the Ensco-72 jack-up rig and reached a Total Depth of
1870m MD in the Sherwood Sandstone.
The well was drilled to appraise the 98/11-3 well, drilled in 1986
by British Gas, within the Colter Prospect. The 98/11a-6 well
unexpectedly remained on the southern side of the Colter Prospect
bounding fault but encountered oil and gas shows over a
9.4m interval at the top of the
Sherwood Sandstone reservoir. A petrophysical evaluation of
the LWD data has calculated a net pay of 3m. Similar indications of oil and gas were
encountered in the 98/11-1 well, drilled in 1983 by British Gas,
within the Colter South fault terrace. Provisional analysis
of the new data indicates that the two wells may share a common
oil-water-contact having both intersected the down-dip margin of
the Colter South Prospect. The Operator (Corallian Energy Limited)
gave its most recent assessment of the Colter South Prospect prior
to drilling the 98/11a-6 well at an estimated mean recoverable
volume of 15 mmbbls. Further work will be required to refine
this assessment with the new well data.
A decision was made by the Joint Venture to drill a side-track
(98/11a-6Z) to the north to evaluate the Colter Prospect. The
well has now been drilled to a Total Depth of 1910m MD and encountered the Sherwood Sandstone
below the oil-water-contact of the 98/11-3 well. Initial
evaluation of the data from both wells indicates that the Colter
Prospect is smaller than pre-drill estimates. The Colter
South discovery remains an opportunity to evaluate further as it is
now areally more extensive than indicated by the pre-drilling
mapping. In addition, the side-track encountered oil and gas
shows in the Jurassic Cornbrash-Lower Oxfordian interval, the
producing reservoirs in the Kimmeridge oilfield, and this provides
an interesting potential target on trend to the west within the
onshore licences held by the Joint Venture. The data from
these well results and existing data will be incorporated to
determine the best forward plan.
The Joint Venture partners would like to thank the well operator
Fraser Well Management, rig operator Ensco and all the many
contractors who assisted with the drilling operations which have
been completed safely in an environmentally sensitive area.
Simon Gorringe, CEO of Andalas
Energy and Power PLC said: “The Colter appraisal programme has
delivered a larger than expected Colter South prospect and
significantly increased our understanding of the broader Colter
prospect. The results of the sidetrack does, however,
indicate that overall the Colter prospect is smaller than initially
expected, but the results from the drilling of the sidetrack did
deliver encouragement for our adjacent onshore prospects from the
good shows encountered in the Middle Jurassic.
“The joint venture will now integrate
the results of the programme into its evaluation of the way forward
to commercialisation of the Colter prospect and the enlarged Colter
South prospect. We have now met our financial obligations
under the farm-in agreement and there are currently no outstanding
obligations under the licence.”
Qualified Person's Statement
The technical information contained in this announcement has
been reviewed and approved by Mr. Gregor
Mawhinney. Mr. Mawhinney is consulting for Andalas, acting
in the role of Vice President Operations. He has nearly 40
years experience in the oil and gas industry, is a member of
the Society of Petroleum Engineers (SPE) and a member of the
Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL).
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ('MAR). Upon the publication of this
announcement via a Regulatory Information Service ('RIS'), this
inside information is now considered to be in the public
domain.
For further information, please contact:
Simon Gorringe |
Andalas Energy and Power Plc |
Tel: +62 21 2965 5800 |
Roland Cornish/ James Biddle |
Beaumont Cornish Limited
(Nominated Adviser) |
Tel: +44 20 7628 3396 |
Colin Rowbury
|
Novum Securities Limited
(Joint Broker) |
Tel: +44 207 399 9427 |
Christian Dennis |
Optiva Securities Limited
(Joint Broker) |
Tel: +44 20 3411 1881 |