17 Novemeber 2017
Doriemus Plc
("Doriemus" or the
"Company")
Oil Production
commences from Lidsey-X2 Production Well
Doriemus plc (Listed in Australia ASX:DOR and listed in London
NEX:DOR) (“Doriemus” or the “Company”), is pleased to
provide an update from Angus Energy Plc (the “Operator”) on the new
Lidsey-X2 production well at the Lidsey Oil Field, located at the
southern edge of the UK’s onshore Weald Basin, south of
London.
David Lenigas, Doriemus Plc’s
Executive Chairman, commented;
“We are pleased to see that oil production has now commenced
from Lidsey-X2. Even with these initial flow rates, the Lidsey-X2
well provides important commercial oil production and cash flow to
Doriemus. We see considerable upside from this well going forward,
as the Operator continues to optimise oil production from the Great
Oolite reservoir. This is an important milestone for Doriemus and
we look forward to gradulally increasing the oil flows from Lidsey
over the coming weeks. We are also looking forward to moving to
production from our recently drilled Brockham Oil Field’s
side-track soon and also moving towards long term flow testing from
our Horse Hill -1 well near London’s Gatwick Airport.”
The Operator of the Lidsey Oil Field has advised today that:
“Angus Energy Plc, a conventional oil and gas production and
development company, is pleased to announce it has commenced
production at Lidsey Oil Field from the well, Lidsey-X2.
Following the drilling and completion of the Lidsey-X2
horizontal production well, which was drilled on time and within
budget, the Company is working through the production start-up and
production has now been initiated. Initial start-up rates of
production from the Great Oolite reservoir are coming in at forty
barrels of 38.5 API of dry oil per day. The fluid column (oil)
extends to 322m from surface (bottom hole depth of 1,009.3m) with a
measured static bottom hole pressure of 764 psi. The Great Oolite
is the first of three reservoirs with potential viability in
Lidsey-X2 as per the Company RNS of 6
November 2017.
Compared to pre-drill assessments set forth in the Competent
Person’s Report (“CPR”) of the 7 November
2016 Admission Document, flow rates from the Great Oolite
reservoir are below expectations, and work is continuing to clean
up the well. The Company is investigating the new geological and
borehole information to update its understanding of the reservoir.
In addition, the Company is currently examining evidence that
suggests a partial flow reduction is the result of a hole in the
production tubing, therefore not allowing the well to be fully
drawn down. The Company is conducting further analysis and if
confirmed, the Company will undertake operations to repair the
tubing which will allow maximum draw from the reservoir. This is
the priority for the Company over the coming weeks.
In addition to any necessary repair, industry information and
technical guidance on analogous wells in the region suggest initial
flow rates can be improved. Angus Energy believes its initial flow
rates from Lidsey-X2 have similar potential for increased yield.
Therefore, the Company is conducting a thorough study to optimise
and enhance production levels from the Great Oolite.
Further to the Company RNS of 6 November
2017, Angus Energy will submit an FDP Addendum to the Oil
and Gas Authority (“OGA”) to begin production appraisal of the
Kimmeridge and Oxford layers at Lidsey.
Operations Update: Lidsey-X1
The Lidsey-X1 well, first drilled in 1987, will now resume
production from the Great Oolite reservoir in addition to
production from Lidsey-X2. The Company expects to achieve the
historic production levels of 15-20 barrels of oil per day (“bopd”)
before the well was shut in nearly 2 years ago in January
2016.
Given the encouraging geochemical analysis of Lidsey-X2’s
Kimmeridge and Oxford Layers, disclosed in the Company RNS of
6 November 2017, the above-mentioned
FDP Addendum will include a submission to conduct analysis of the
production potential from the Kimmeridge layer and Lias source rock
from Lidsey-X1. The Lidsey-X1 exploration well was previously
drilled through all the aforementioned layers.
The Lias source rock, positioned beneath the Great Oolite, has a
comparable composition to the interbedded limestones / shales found
in the hybrid Kimmeridge reservoir at the Company’s Brockham Oil
Field, located on the northern end of the Weald Basin. The deeper
depth of the Lias source rock in the Lidsey-X1 indicates an
increased maturity as compared to layers above the Great Oolite
such as the component Kimmeridge and Oxford layers of the
Lidsey-X2, as outlined in the Company RNS of 6 November 2017.
Paul
Vonk, Manging Director of Angus Energy, commented:
“Production has now commenced from Lidsey-X2. This project
was delivered on time and on budget. Even with these initial flow
rates, Lidsey-X2 provides commercial production and cash flow. We
will continue to optimise production from the Great Oolite
reservoir at Lidsey as we work to increase flow rates and we look
forward to developing its additional reservoirs to enhance long run
value for our shareholders.”
Qualified Person's Statement:
Chris de Goey, a Non-Executive
Director of the Company, who has over 20 years of relevant
experience in the oil and gas industry, has approved the
information contained in this announcement. Mr de Goey is a member
of the Petroleum Exploration Society of Great Britain and the Society of Petroleum
Engineers.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
END
About the Lidsey Production Oil Field
and Doriemius Plc’s Interest:
The Lidsey Oil Field is 5.3km2 in size and located in
the southern portion of the onshore UK Weald Basin in West Sussex south of London and next to Bognor Regis on the south
coast of England.
Doriemus Plc owns a 30% direct participating working interest in
the Lidsey-X2 production well, which is located within the onshore
Lidsey Oil Field (PL 241)(Production Licence) under the rights it
has under the 21 November 2013
Farm-Out Agreement. The Lidsey Oil Field is operated by Angus
Energy Plc. In respect of all other wells on the Lidsey Oil Field,
Doriemius has a 20% participating interest and contribution to
capital costs will be 20%.
The directors of the Company accept responsibility for the
contents of this announcement.
CONTACTS:
For further information on this update or the Company generally,
please visit our website at
www.doriemus.co.uk or contact:
Doriemus Plc
UK Contacts:
David Lenigas (Executive Chairman)
+44 (0) 20 7440 0640
Greg Lee (Technical Director)
Australia Contacts:
Julia Beckett (Joint Company
Secretary) +61 (08) 6141
3500
Email: julia.beckett@wolfstargroup.com.au
UK Advisors:
Peterhouse Corporate Finance Limited
+44 (0) 20 7469 0930
Guy Miller
Fungai Ndoro
FORWARD LOOKING STATEMENTS AND
IMPORTANT NOTICE:
This document may contain forward looking statements that are
subject to risk factors associated with the oil and gas industry.
It is believed that the expectations reflected in these statements
are reasonable, but they may be affected by many variables which
could cause actual results or trends to differ materially.
Investors should make and rely upon
their own enquiries before deciding to acquire or deal in the
Company’s securities.
This report contains forecasts, projections and forward looking
information. Although the Company believes that its
expectations, estimates and forecast outcomes are based on
reasonable assumptions it can give no assurance that these will be
achieved. Expectations, estimates and projections and
information provided by the Company are not a guarantee of future
performance and involve unknown risks and uncertainties, many of
which are out of the Company’s control. Actual results and
developments will almost certainly differ materially from those
expressed or implied. The Company has not audited or investigated
the accuracy or completeness of the information, statements and
opinions contained in this report. To the maximum extent
permitted by applicable laws, the Company makes no representation
and can give no assurance, guarantee or warranty, express or
implied, as to, and takes no responsibility and assumes no
liability for (1) the authenticity, validity, accuracy, suitability
or completeness of, or any errors in or omission from, any
information, statement or opinion contained in this report and (2)
without prejudice to the generality of the foregoing, the
achievement or accuracy of any forecasts, projections or other
forward looking information contained or referred to in this
report.
