DOR Doriemus

 
TIDMDOR 
 
13 January 2014 
 
                                  Doriemus Plc 
 
                         ("Doriemus" or the "Company") 
 
             Farm-in to Horse Hill Prospect in the UK Weald Basin 
 
Doriemus Plc (AIM: DOR) is pleased to announce that it has signed a Binding 
Term Sheet ("BTS") to acquire an initial 7.5% interest in Horse Hill 
Development Ltd ("HHDL"), a special purpose company that holds the rights to a 
65% participating interest and operatorship in the highly prospective UK 
onshore Horse Hill Oil Field in the Weald Basin. Doriemus also has the right 
under the BTS, at its sole discretion, to increase its ownership of HHDL to 15% 
by 31 January 2014. The total consideration payable by Doriemus for the initial 
7.5% is GBP450,000, mostly comprising monies to be used for drilling. The 
consideration will be satisfied by a combination of existing cash balances and 
funding facilities already in place. Details of the transaction are given 
below. 
 
Highlights: 
 
  * The target for the Horse Hill Prospect are stacked oil and gas targets in 
    the proposed 2,646 m (5,680 ft.) well. 
 
  * Upside potential of an estimated 671 million stock barrels ("MMSTB") oil in 
    place with an estimated total mean recoverable prospective resources of 87 
    MMSTB (Source: Magellan Petroleum (UK) Limited) 
 
  * Additional prospectivity of 456 Bcf gas in place (mean 164+ Bcf recoverable 
    prospective resource) in the proposed Triassic gas play (Source: Magellan 
    Petroleum (UK) Limited) 
 
  * The first well is expected to spud in Q2 2014. 
 
Donald Strang, the Company's Chairman, commented: 
 
"This Horse Hill Prospect is immediately adjacent and to the east of the 
Company's producing Brockham Field and we look forward to participating in this 
exciting conventional oil and gas play with tremendous potential upside 
alongside other notable investors." 
 
About Horse Hill Prospect: 
 
The Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL 137) 
is located in Surrey. 
 
Magellan Petroleum (UK) Limited, a subsidiary of NASDAQ-listed Magellan 
Petroleum Corporation ("Magellan"), currently owns 100% of the 99.29 km2 
(24,525 acre)PEDL 137 ("Horse Hill") and has agreements with HHDL for HHDL to 
earn a direct 65% participating interest and operatorship in the Licence, under 
certain contractual conditions, by the drilling of the proposed 2,646 m (8,680 
ft) Horse Hill-1 well by the end of August 2014. 
 
The newly defined Horse Hill prospect covers an area of up to 16 km2 in the 
south-west quadrant of PEDL 137. It is a tilted horst structure, similar to the 
Palmers Wood oil field structure which lies approximately 20 km to the 
north-east. The Collendean Farm-1 well was drilled by ESSO in 1964 on the 
north-eastern edge of the Horse Hill structure and found good oil shows. Recent 
seismic re-interpretation shows the Collendean Farm-1 well was drilled on the 
wrong side of a significant fault. 
 
The Horse Hill Prospect could contain up to an estimated 671 MMSTB oil in 
place, the majority in the Lower Portland sandstone which alone has an 
estimated upside oil in place potential of 284 MMSTB. The Collendean Farm-1 
well confirms reservoir presence with porosity of 27% and a net: gross of 0.95, 
with an expected oil recovery rate in the region of 30%. The reservoirs are 
sealed by the Purbeck anhydrite and calcareous mudstones. Potential probably 
also exists in the Corallian sands sealed by the overlying Kimmeridge Clay. 
Estimated total mean recoverable prospective resources of oil for the Portland 
sandstone, Corallian sandstone and Great Oolite limestone are 87 MMSTB. 
 
Importantly, the Horse Hill Prospect is considered to have additional 
prospectivity of 456 Bcf gas in place (Mean 164+ Bcf recoverable prospective 
resource) in the proposed Triassic gas play.The Triassic sandstone is the 
expected reservoir with an anticipated porosity of in the order of 18%, net: 
gross of 0.58 and recovery factor of up to 70%. The stacked play potential of 
this prospect is, therefore, considered substantial by the Board of Doriemus. 
 
The Horse Hill Prospect OOIP and OGIP and prospective resources are summarised 
in Table 1. 
 
Table 1: Horse Hill Prospect estimated OOIP, OGIP and Prospective Resources. 
 
   Target Reservoir            OOIP               OOIP          Prospective 
                                                                 Resources 
         Oil             Upside Potential     Mean (MMSTB) 
                              (MMSTB)                          Mean (MMSTB ) 
 
Upper Portland                  116                57               17 
Sandstone 
 
Lower Portland                  284               147               44 
Sandstone 
 
Corallian Sandstone             67                 33               10 
 
Greater Oolite                  204               104               16 
Limestone 
 
Total Oil                       671               341               87 
 
   Target Reservoir            OGIP               OGIP          Prospective 
                                                                 Resources 
         Gas             Upside Potential      Mean (Bcf) 
                               (Bcf)                            Mean (Bcf) 
 
Triassic Sandstone              456               234               164 
 
Competent Person's Statement: 
 
The information contained in this report has been prepared by Magellan 
Petroleum (UK) Limited, and has been reviewed and signed off by Mr MervynCowie 
BSc (Geology & Mineralogy), who has over 35 years' experience as a geologist. 
Mr Cowie is a Fellow of the Australian Institute of Mining and Metallurgy and 
is a competent person under Australian Stock Exchange Rules. The technical 
disclosure in this report complies with the SPE-PRMS standard. 
 
Transaction details: 
 
The consideration due by Doriemusfor the initial 7.5% interest in HHDL shall be 
paid as follows: 
 
 1. Doriemus will immediately pay HHDL GBP10,000 towards the cost of the Horse 
    Hill1 Well. 
 
 2. On completion of all necessary legal documentation within 30 days, Doriemus 
    will make a further payment of GBP50,000 to HHDL towards the cost of the 
    Well. 
 
 3. Doriemus shall bear a further total sum of GBP390,000 of cash calls for the 
    drilling of the Well to be drilled on the Horse Hill Licence. 
 
 4. Doriemus will have the exclusive right, at Doriemus's sole discretion, to 
    double its interest to a 15% participating interest in HHDL by advising 
    HHDL in writing of its intention to do so by 31 January 2014 and paying an 
    immediate further GBP50,000 to HHDL towards the cost of the Well on this 
    advice and guaranteeing to bear a further total sum of GBP400,000 of cash 
    calls for the drilling of the Well. 
 
Glossary: 
 
MMSTB - million stock barrels 
 
Bcf - billion cubic feet 
 
OOIP - Original Oil in Place 
 
OGIP - Original Gas in Place 
 
Prospective Resources - Prospective resources are estimated volumes associated 
with undiscovered accumulations. These represent quantities of petroleum which 
are estimated, as of a given date, to be potentially recoverable from oil and 
gas deposits identified on the basis of indirect evidence but which have not 
yet been drilled. This class represents a higher risk than contingent resources 
since the risk of discovery is also added. For prospective resources to become 
classified as contingent resources, hydrocarbons must be discovered, the 
accumulations must be further evaluated and an estimate of quantities that 
would be recoverable under appropriate development projects prepared. 
 
                                     -END- 
 
Enquiries: 
 
For further information please contact: 
 
Doriemus plc                                               +44 (0) 20 7440 0640 
Donald Strang / Hamish Harris 
 
Sanlam Securities UK Limited                               +44 (0) 20 7628 2200 
Nominated Adviser and Broker 
Virginia Bull / Simon Clements / Catherine Miles 
 
 
 
END 
 

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