04:23 Sat 21 Dec 2019
Angus Energy PLC - Update on Balcombe
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU No. 596/2014) ("MAR"). THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
("Angus Energy" or the "Company")
Balcombe Oil Field Update
The HRA updates risk assessment of sub-surface and downhole operations, but importantly provides detailed description of fluid containment and management at the surface. In particular, the HRA, and supporting Design Philosophy Statement, identifies those soil and water protection measures to be put in place for Phase 2 of the Extended Well Test with a designed lifetime well in excess of the expected term of that Test.
The Company is regularly questioned and is constantly reviewing its expectations for flow rates at the Balcombe 2Z Well. In investor meetings and conference calls estimates as low as 300 barrels of oil per day (bopd) have been mentioned. To clarify, the Company cannot accurately predict flow rates based on the limited information available, but it is possible to use geological information and analogous rates from offset wells.
In this regard, the Company has noted that the Balcombe 2Z well addresses a horizontal length of approximately 1700 feet within one of the two Kimmeridge Limestones tested together in the Horse Hill 1 well. We understand that at Horse Hill a 360 feet vertical section of similar Kimmeridge Limestonachieved rates of 200-300 bopd, publicly reported. Whilst it is sometimes hard to compare horizontal and vertical well productivity, especially in naturally fractured reservoirs, it is reasonable to expect we can at least achieve similar or better rate so other things being equal, the Company does believe that the estimate mentioned above for Balcombe may be overly pessimistic.
As regards estimates, in the past the Company has raised a high bar in expectations which have not subsequently been met. The Board is anxious not to repeat that error, nonetheless the technical team here remains upbeat."
Technical Sign off
END.
Enquiries:
|
|
|
Tel: +44 (0) 208 899 6380 |
|
|
|
|
|
|
|
Tel: +44 (0) 207 628 3396 |
|
|
|
|
|
Tel: +44 (0) 113 394 6600 |
|
|
Flagstaff PR/IR |
|
|
Tel: +44 (0) 207 129 1474 |
|
|
Notes
About
This information is provided by RNS, the news service of the
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE