TIDMALBA
RNS Number : 6283D
Alba Mineral Resources PLC
10 October 2018
Alba Mineral Resources plc
("Alba" or the "Company")
Extended Well Test ("EWT") Update
Horse Hill-1 ("HH-1") Portland and Kimmeridge Oil Discovery,
Weald Basin, UK
Alba (AIM: ALBA), the diversified mineral exploration and
development company, is pleased to announce that it has been
informed by Horse Hill Developments Ltd ("HHDL" or the "Operator"),
the operator of the Horse Hill-1 ("HH-1") Kimmeridge and Portland
oil discovery located in licence PEDL137, that the Kimmeridge
Limestone 3 ("KL3") EWT programme has recorded sustained light,
sweet, 40-41deg API crude oil flow continuously and naturally to
surface over the past 50 hours at sustained rates significantly
exceeding those recorded during the KL3 short flow test programme
in 2016.
Alba holds an 11.765% beneficial interest in licence PEDL137 and
adjoining licence PEDL246.
Alba is further advised by the Operator as follows:
-- KL3 EWT flow sequence commenced ahead of planned KL4 test.
-- KL3 flowed 40-41deg API continuously and naturally to surface
(i.e. without any pump) over a 50 hour initial planned oil flow
period. Oil flow initiated instantaneously with minimal pressure
"draw- down". First planned 24-hour shut-in and pressure build-up
test ("PBU") now underway.
-- Sustained continuous oil rates of between 563 and 771 barrels
of oil per day ("bopd") on 36/64 and 38/64 inch choke,
respectively, recorded over last 24 hours through test separator.
Gas rates up to 186,000 cu ft per day measured through enclosed
flare. Flow sustained at constant stable bottom hole pressure.
-- Recorded sustained rates significantly exceed the 464 bopd
over a short 7.5-hour total flow period reported in 2016.
-- Initial well productivity index of between 1.4 to 2.5 bpd/psi
is around twice that seen in 2016 KL3 test.
-- To date four tankers of KL3 crude have been exported to Fawley refinery.
-- Zero formation water produced. Metered associated water rates
of 52 barrels per day ("bpd") decreasing to 14 bpd (i.e. 9%
decreasing to 2%) in the past 24 hours. Produced water consists
wholly of returned heavy completion brine. Well continues to
"clean-up" with decreasing water content.
-- Simultaneous pressure data recorded in overlying KL4 is
indicative that KL3 and KL4 are one single connected oil pool with
an implied minimum vertical extent of 358 ft.
-- Further updates to be provided in due course following
completion of the ongoing PBU test, further well clean-up, flow
stabilisation, downhole oil sampling and further pressure build up
tests.
-- The KL4, which flowed at a reported rate of 901 bopd over a
4-hour period in 2016, will be flow tested after completion of the
current KL3 EWT.
It should be noted that these are preliminary results achieved
during the well "clean up" phase. Alba awaits from the Operator the
final reservoir information in order to ascertain the sustained
deliverability of the KL3 and KL4 reservoirs.
George Frangeskides, Alba's Executive Chairman, commented:
"Whilst these are early results from the KL3 EWT sequence, with
the well still "cleaning-up", the rates achieved so far in the
Kimmeridge limestones are highly encouraging. We look forward to
the results of the remainder of the KL3 and KL4 test programme, and
look forward also to learning of the Operator's go forward plans
for the field development of the Portland sandstone and Kimmeridge
limestone reservoirs at Horse Hill".
Qualified Person's Statement
The technical information contained in this announcement has
been reviewed and approved by Feroz Sultan (B.Sc (Hons) Geology,
M.Sc, Petroleum and Structural Geology, Karachi and M.Sc Petroleum
Geology, Imperial College London), a petroleum geologist with over
45 years' experience in the management, exploration, development
and production of oil and gas.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
For further information please contact:
Alba Mineral Resources plc
George Frangeskides, Executive Chairman +44 20 7264 4366
Cairn Financial Advisers LLP (Nomad)
James Caithie / Liam Murray +44 20 7213 0880
First Equity Limited (Broker)
Jason Robertson +44 20 7374 2212
Yellow Jersey PR (Financial PR/
IR)
Tim Thompson / Harriet Jackson
alba@yellowjerseypr.com +44 77 1071 8649
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
draw down the difference between the average static reservoir
pressure and the flowing bottomhole pressure
---------------------------------------------------------
extended well a well test, as per the permission granted by
test the Oil and Gas Authority, with an aggregate flow
period duration over all zones of greater than
96 hours and up to 90 days maximum
---------------------------------------------------------
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
---------------------------------------------------------
Productivity A mathematical means of expressing the ability
Index of a reservoir to deliver fluids to the wellbore.
The PI is usually stated as the volume delivered
per psi of drawdown at the sandface (bbl/d/psi).
---------------------------------------------------------
Alba's Project Portfolio
Mining
Amitsoq (Graphite, Greenland): Alba owns a 90 per cent interest
in the Amitsoq Graphite Project in Southern Greenland and has an
option over the remaining 10 per cent.
Clogau (Gold, Wales): Alba owns a 90 per cent interest in Gold
Mines of Wales Limited ("GMOW"), the ultimate owner of the Clogau
Gold project situated in the Dolgellau Gold Belt in Wales.
Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent
of mineral exploration licence 2017/40 in north-west Greenland.
Limerick (Base Metals, Ireland): Alba owns 100 per cent of the
Limerick base metal project in the Republic of Ireland.
Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per
cent interest in mineral exploration licence 2017/41 in Melville
Bay, north-west Greenland. The licence area benefits from an
existing inferred JORC resource of 67 Mt @ 31.4% Fe.
Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent
of mineral exploration licences 2017/29 and 2017/39 in the Thule
region, north-west Greenland.
Oil & Gas
Brockham (Oil & Gas, UK): Alba has a direct 5 per cent
interest in Production Licence 235, which comprises the previously
producing onshore Brockham Oil Field.
Horse Hill (Oil & Gas, UK): Alba holds a 18.1 per cent
interest in Horse Hill Developments Limited, the company which has
a 65 per cent participating interest and operatorship of the Horse
Hill oil and gas project (licences PEDL 137 and PEDL 246) in the UK
Weald Basin.
Web: www.albamineralresources.com
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END
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