4 March 2014
Doriemus Resources Plc
("Doriemus" or the "Company")
Work commences on Horse Hill-1 well in the UK Weald Basin.
Doriemus Plc (AIM: DOR) is pleased to announce that civil works have now
commenced on the Horse Hill site in the UK Weald Basin in preparation for the
drilling of the proposed 2,646 metre (8,680 feet) Horse Hill-1 well on the
Horse Hill Prospect, which lies about 3 kilometres from Gatwick Airport and is
designed to test a number of promising conventional oil and gas targets.
The Horse Hill-1 well, which is scheduled to be completed by the end of August
2014, is planned to test several conventional stacked oil targets at the proven
productive Portland sandstone, Corallian sandstone and Great Oolite limestone
levels in the well-defined Horse Hill Prospect. Gross prospective recoverable
resources in these stratigraphic levels totalling a mean 87 million barrels
("mmbbls") have been estimated by the previous operator Magellan Petroleum
Corporation. An additional mean 164 billion cubic feet ("bcf") of gross
recoverable prospective gas resources were also estimated by Magellan Petroleum
within the deeper Triassic play.
Donald Strang, the Company's Chairman, commented:
"The Horse Hill-1 well, one of the deepest to be drilled in the Weald Basin,
has significant potential to discover oil, especially after the results of
ExxonMobil in the 1960's, but the Company is particularly excited about the
potential of locating significant conventional gas deeper down the Horse Hill-1
well into the Triassic."
"Any success in the Triassic on the Horse Hill-1 well could add upside
potential below the current Brockham producing oil zones, as Brockham is
immediately adjacent to the Horse Hill licence."
Doriemus has a binding agreement in place to own a 10% interest in Horse Hill
Development Ltd ("HHDL"), a special purpose company, which now owns a 65%
participating interest and operatorship of onshore licence PEDL137 ("Horse
Hill") in the UK Weald Basin.
Horse Hill Wood Prospect:
The participants in the Horse Hill-1 well are the operator Horse Hill
Development Limited with 65% and Magellan Petroleum Corporation with a 35%
interest.
As previously reported on 13 January 2014 (see hereafter), the 99.29 square
kilometres (24,525 acre) Exploration and Development Licence No. 137 ("PEDL
137") is located in the Weald Basin in Surrey.
The Horse Hill Wood prospect lies about 3 kilometres from Gatwick Airport and
covers an area of up to 16 square kilometres in the south-west of PEDL 137. The
trap is a seismically defined tilted horst structure, similar to the Palmers
Wood oil field which lies only about 20 kilometres to the north-east. The
Collendean Farm-1 well, drilled by ExxonMobil in 1964, lies on the
north-eastern edge of the Horse Hill Wood structure and found good oil shows at
various Jurassic levels. Recent seismic re-interpretation suggests that the
Collendean Farm-1 well was drilled off structure on the downthrown side of the
bounding fault and outside closure.
The Triassic reservoir has yet to be tested in this part of the Weald Basin and
if present is likely to be gas charged.
The Horse Hill Wood Prospect's OIP and GIP and Prospective Resources estimated
by Magellan are summarised in Table 1 below.
Table 1: Horse Hill Prospect estimated OOIP, OGIP and Prospective Resources.
Target OIP OIP Prospective
Reservoir Upside Potential Mean Resources
Oil (mmbbls) (mmbbls) Mean (mmbbls)
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 GIP GIP Prospective
Reservoir Upside Potential Mean Resources
Gas (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 approved by Mr Mervyn Cowie
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 recognised as a qualified person under the AIM Rules . The technical
disclosure in this report complies with the SPE-PRMS standard.
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-
For further information, please contact:
Doriemus plc +44 (0) 20 7440 0640
Donald Strang / Hamish Harris
Sanlam Securities UK Limited (Nominated Adviser and Broker) +44 (0) 20 7628 2200
Simon Clements / Virginia Bull