18 October 2013
Doriemus plc
(the "Company")
UK Oil Farm-In
Doriemos Plc (AIM: DOR) is pleased to announce that it has signed a Binding
Term Sheet ("BTS") with Angus Energy Weald Basin No. 3 Limited ("Angus
Energy"), a UK based oil production company, to farmin to a participating 10%
in the producing onshore Lidsey Oilfield ("Lidsey") in West Sussex. Doriemus
has a First Right of Refusal ("FROR") period to negotiate increasing its
participating interest to 25%.
Highlights:
• Lidsey currently produces 25 bopd from the Lidsey-1 well, which has been in
production since 2008, with current operating costs of $45 per barrel.
• A work over on the Lidsey-1 well is planned before the end of October 2013 to
increase production.
• Doriemus has the option to maintain a 10% participating interest on the
entire Oilfield by paying cash calls on a 2 for 1 basis on the next well at
Lidsey and thereafter by paying cash calls on a 1 for 1 basis on any further
wells.
• In 2002, an independent Schlumberger report concluded the most like 1P
reserves of the filed are 230 mstb or 5.75% of the STOIIP and with an
additional well the 2P reserve would be 600 mstb or 6.5% of the STOIIP.
• Angus Energy have acquired addition 2D seismic and revised reserves are in
the process of being calculated.
Donald Strang, the Company's Chairman, commented:
"The acquisition of an initial 10% working interest in a producing UK oil field
automatically makes Doriemos an oil producer in its own right and the Company
looks forward to participating with Angus Energy in optimising the potential of
the Lidsey Oilfield."
"The Lidsey investment is the first investment under the Company's new stated
investment strategy, and represents a very exciting new direction for Doriemos
shareholders."
The Lidsey Oilfield ("Lidsey") is held under United Kingdom Production Licence
PL241 which was granted on 2 December 1983. Oil was discovered on Lidsey in
1987 by Carless Exploration when an exploration well successfully flowed oil.
Lidsey has one vertical producing well in the Jurassic, Great Oolite reservoir
which has produced an average of 25 bopd of 38 API oil over the past 12 months.
The Lidsey surface facilities are fully permitted and operational with onsite
oil storage of 2,000 barrels.
The Licence is an ever green production licence, providing the field remains an
active oil production status. A rent review on the Licence is expected in 2017.
Terms of the Acquisition:
In consideration, Angus Energy have been paid an initial cash payment of £
10,000 and will be issued 100 million ordinary shares in Doriemus (the
"Consideration Shares") on signing of the BTS. Angus Energy will also be paid
an addition payment of £230,000 on signing of the formal Farm In Agreement
("FIA") which will be executed on or before 18 November 2013.
Angus has granted Doriemus a 60 day FROR to purchase an additional 15%
participating interest in the Licence following completion of the FIA.
Application has been made for the Consideration Shares to be admitted to
trading on AIM and it is anticipated that Admission will occur on 25 October
2013.
Following Admission, the Company's enlarged issued share capital will comprise
3,559,999,998 ordinary shares. The Company does not hold any shares in
treasury. This figure of 3,559,999,998 ordinary shares may be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change in their interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.
For further information please contact:
Doriemus plc
Donald Strang +44 (0) 207 440 0640
Hamish Harris
Sanlam Securities UK Limited
Simon Clements/Virginia Bull +44 (0) 207 628 2200