15 January 2018
Doriemus Plc
("Doriemus" or the
"Company")
Update on Brockham
and Lidsey Oil Fields and Horse Hill Discovery
Doriemus plc (Listed in Australia ASX:DOR and listed in London
NEX:DOR) (“Doriemus” or the “Company”), is pleased to
advise that the operator of both the Brockham and Lidsey Oil Fields
in the UK’s onshore Weald Basin, Angus Energy Plc (the “Operator”),
will resume conventional production from two currently temporarily
suspended wells in Doriemus’s portfolio bringing the total wells in
production at the Lidsey and Brockham Oil Fields to four by the end
of March 2018.
The Operator of the Brockham and Lidsey Oil Fields have advised
that they will re-commence production from the Portland Reservoir
via the BR-X2Y well at Brockham in March
2018, as well as the Great Oolite Reservoir at Lidsey from
the Lidsey-X1 well next month. These operations reflect improved
market conditions and an increase in oil pricing. Prior to these
wells’ temporary closure, the BR-X2Y and Lidsey-X1 wells had
normative operations at approximately 50bbl/day.
Brockham BR-X4Z well Update:
Further to the Company announcement dated 23 October 2017, the installation of a connection
to the National Grid for selling on-site power generated from
associated gas production is in progress, contracts have been
executed with a scheduled completion in March 2018. Prior company guidance for the
beginning of production from BR-X4Z is unchanged.
Lidsey-X2:
Subsequent to the Company announcement dated 20 November 2017, the Operator has completed its
review of initial flow rates from Greater Oolite reservoir in the
Lidsey-X2 well. The installation of a new pump to
optimise pressure differentials and maximize production flow rates
will be completed in February
2018.
Angus Energy advise also that all the aforementioned operations
are performed through conventional production. There will be no
hydraulic fracturing or “fracking”.
2018 Horse Hill Flow Test
Programme:
Doriemus is expecting the 150 day extended flow testing of the
Horse Hill-1 well on the Horse Hill oil discovery to commence in
March 2018.
As previously advised in December
2017, following a short period of civil works to upgrade
site facilities, a 150-day production testing programme focused
upon the Portland, KL3 and KL4 reservoirs will commence. As
commercially viable initial flow rates were established by the 2016
flow tests, the 2018 testing programme’s goal is to confirm that
HH-1’s reservoirs are each connected to a commercially viable oil
volume, thus enabling a declaration of commerciality to be
made.
The Portland, KL3 and KL4 flow tests, each planned for around
30-40 days duration, will consist of a sequence of stabilised
steady state flow and shut in periods to establish the oil in place
(“OIP”) directly connected to the well. A short maximum flow-rate
test will also be included for each reservoir. If time permits, a
further short-term test of a deeper untested Kimmeridge reservoir
may be undertaken.
Testing will commence with the Portland reservoir, which in the
Company’s opinion, given the 323 bopd stable pumped rate achieved
in 2016 and the 32 million barrels most likely OIP calculated by
Xodus in 2017, is a strong candidate for commercial viability.
Subject to a successful test, a Portland commercial declaration is
expected to be made by mid-2018. A Kimmeridge commerciality
declaration would follow programme completion and analysis of
reservoir engineering data.
Horse Hill Oil Discovery:
The HH-1 Portland sandstone and Kimmeridge Limestone oil
discoveries lie within onshore Weald Basin licences PEDL137 and
PEDL246 covering an area of 55 square miles (143 km2)
north of Gatwick Airport. As previously reported on 21 March 2016, HH-1 flow tested at a significant
commercial aggregate stable dry oil rate of 1,688 barrels of oil
per day (“bopd”) from the Portland, Kimmeridge Limestone 3 (“KL3”)
and Kimmeridge Limestone 4 (“KL4”) reservoir horizons.
David Lenigas, Doriemus Plc’s
Executive Chairman, commented;
“Doriemus will be participating in a lot of new oil wells coming
on line this quarter and next. All of these wells will provide a
solid revenue stream to the Company.”
About the Horse Hill licences and
Doriemius Plc’s Interest:
The Horse Hill licences PEDL137 and PEDL246 cover
143km2 in size and located to the north and adjacent to
London’s Gatwick International
Airport. The Horse Hill licences are operated by Horse Hill
Developments Ltd (“HHDL”). Doriemus owns 10% of HHDL, which in turn
owns 65% of the Horse Hill licences (or a 6.5% attributable
interest in the licences), which contains the Horse Hill-1 (“HH-1”)
oil discovery well.
About the Brockham Oil Field and
Doriemus Plc’s Interest:
The Brockham Licence is 8.9km2 in size and located in
the northern portion of the onshore UK Weald Basin in Surrey south of London and 10km north-west of London’s Gatwick
International Airport (Figure 1).
Doriemus owns a 10% direct interest in the Brockham Oil Field
which is held under UK Production Licence PL 235. The Field is
operated by Angus Energy Plc.
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%.
COMPETENT PERSONS STATEMENT:
Pursuant to the requirements of the
ASX Listing Rules Chapter 5 in Australia, the technical information and
resource reporting contained in this announcement was prepared by,
or under the supervision of, Mr Gregory
Lee, who is the Technical Director of the Company. Mr Lee
has more than 30 years' diversified experience in the petroleum
industry. Mr Lee is a chartered professional Engineer (CPEng)
and a member of the society of petroleum engineers (MSPE) and has
been an independent consultant Petroleum Engineer since 1992 and
has sufficient experience in exploration for, appraisal and
development, operations of oil and gas resources.
The directors of the Company accept responsibility for the
contents of this announcement.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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.
