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Alba Min Res PLC - Horse Hill Update

RNS Number : 5766R
Alba Mineral Resources PLC
30 June 2020
 

 

Alba Mineral Resources plc

("Alba" or the "Company")

 

UKOG RNS Regarding Horse Hill Oil Field

 

Alba Mineral Resources plc (AIM: ALBA), the diversified mineral exploration and development company, notes the announcement today by UK Oil & Gas Plc ("UKOG"), the majority owner of Horse Hill Developments Limited ("HHDL"), the operator of Horse Hill licences PEDL 137 and PEDL 246 in which Alba has an 11.765% interest.  The UKOG announcement contained the following operational update regarding the Horse Hill Oil Field (which is extracted verbatim below):

 

Regarding the Horse Hill-2z Well ("HH-2z"):

 

"After the initial reported high HH-2z oil rates, significant formation water ingress was observed, requiring the successful installation of a Thermatek plug to isolate the water inflow. It is now clear from the image logs recorded in the well, that both the oil and water flow originated from a series of extensive natural fractures, primarily at the toe of the well, although there are also further natural fractures observed higher up in the well. The plug was initially successful in returning flow to the reported high oil cut, however water cut built up, necessitating the well to be produced intermittently as the water disposal costs outweighed oil revenues."

 

"The HH-2z well is currently shut in for a long duration pressure build up test to re-assess its connected oil volume. Consequently, the company has sought an extension to the current test permission in order to ensure that sufficient data is available to enable the correct forward decisions to be made."

 

"We are reviewing a number of options for the future use of HH-2z, including stimulation to return it into long-term oil production, sidetracking the well to a different subsurface location and possibly converting it into a future water re-injection well to further reduce future operating costs (as foreseen in the Horse Hill field development plan presented to the OGA earlier this year)."

 

 Regarding the Horse Hill-1 Well ("HH-1"):

 

"On a positive note we also firmed up our plans for the reperforation and recompletion of HH-1. The current completion and perforation scheme is less than optimal for both pump efficiency and oil inflow. Consequently, if successful we remain confident this programme can further improve the well's oil production rate. We currently plan this activity to occur this summer."

 

"…the Company also plans a significant intervention in HH-1 specifically designed to further improve flow into the wellbore. Together with a full reperforation of the entire Portland section using a different type of perforating gun than prior operations, a new, simpler production tubing completion will be installed. The new completion will permit the downhole pump to be installed below the Portland interval to significantly improve pump efficiency."

 

Forward Looking Statements

 

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events.  Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

 

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.

 

Glossary

 

oil field:            an accumulation, pool or group of pools of oil in the subsurface that produces oil to surface.

 

       sidetrack:         re-entry of a well from the well's surface location with drilling equipment for the purpose of deviating from the existing well bore to achieve production or well data from an alternative zone or bottom hole location, or to remedy an engineering problem encountered in the existing well bore.

 

For further information, please contact:

 

Alba Mineral Resources plc

George Frangeskides, Executive Chairman

+44 20 3907 4297

 



Cairn Financial Advisers LLP (Nomad)     

James Caithie / Liam Murray                            

+44 20 7213 0880

 



First Equity Limited (Broker)

Jason Robertson

+44 20 7374 2212

 



 

Alba's Project and Investment Portfolio

Project (commodity)

Location

Ownership

Mining Projects

Amitsoq (graphite)

Greenland

90%

Clogau (gold)

Wales

90%

Inglefield (copper, cobalt, gold)

Greenland

100%

Limerick (zinc-lead)

Ireland

100%

Melville Bay (iron ore)

Greenland

51%

TBS (ilmenite)

Greenland

100%

Oil & Gas Investments

Brockham (oil)

England

5%

Horse Hill (oil)

England

11.765%

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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Price: 0.07

Market: AIM
Market Cap: £2.9 m
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