3 December 2013
Doriemus Plc
("Doriemus" or the "Company")
New Producing Oil Investment - Brockham Oil Field in the Weald Basin, UK.
Doriemus Plc (AIM: DOR) is pleased to announce that it has signed a Binding
Term Sheet ("BTS") with Angus Energy No. 3 Limited ("Angus Energy No.3") to
acquire an initial participating 10% in United Kingdom Production Licence PL
235, which comprises the producing onshore Brockham Oil Field ("Brockham") on
the northern flank of the Weald Basin at Brockham in Surrey.
Highlights:
* Brockham is currently producing 42 bopd of 28 degree API crude from the
Brockham-1 well.
* Current production costs are around $45 per barrel.
* A well stimulation programme is due to be completed on Brockham-1 during
December 2013.
* A new side track on the shut in Brockham-4 well is scheduled to be drilled
in January 2014 to intersect other parts of the reservoir.
* 46 km of seismic has recently been acquired and a new CPR has been
commissioned.
Donald Strang, the Company's Chairman, commented:
"The Company sees significant upside potential at Brockham, similar to what we
have seen at the Lidsey oil field where the current well work over is
progressing, with an imminent well work over planned and a new side track
planned for very early in the New Year."
"This Brockham oil field investment is the second such UK onshore producing oil
investment under the Company's new stated investment strategy over the past few
months and represents an opportunity for Company to further increase its UK
conventional onshore oil production."
Brockham Oil Field:
The Brockham Oil Field was discovered by BP in 1987 when BP drilled the
Brockham-1 well and initially flowed 95 bopd of 27.5 API crude from the
Portland sands reservoir. Brockham is held under United Kingdom Production
Licence PL 235.
Brockham is now owned by:
* Angus Energy No.3 Limited (60% interest and Operator)
* Terrain Energy Ltd (20% interest)
* Doriemus (10% interest)
* Brockham Energy (10% interest)
The Brockham surface facilities are fully permitted and operational with onsite
oil storage facilities of 1,200 barrels.
Current production costs at the current production of 42 bopd are around $45
per barrel. All production is currently sold to the Perenco BP refinery.
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 No.3 has been paid an initial cash payment of £
5,000 and will be issued 130 million ordinary shares in Doriemus (the
"Consideration Shares") within 10 days of signing of the BTS. Angus Energy will
also be paid an addition payment of £100,000 on signing of the formal Farm In
Agreement ("FIA"), which will be executed within 30 days of signing of the BTS.
Doriemus will be responsible for paying £100,000 towards the side-track on
Brockham-4 which is scheduled for January 2014.
Application has been made for the Consideration Shares to be admitted to
trading on AIM and it is anticipated that Admission will occur on 12 December
2013.
Following Admission, the Company's enlarged issued share capital will comprise
4,189,999,998 ordinary shares. The Company does not hold any shares in
treasury. This figure of 4,189,999,998 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