13 March 2014
Doriemus Plc
("Doriemus" or the "Company")
Reserves and Resources Statements for the Lidsey and Brockham Oil Fields, UK
Doriemus Plc (AIM: DOR) today announces the conclusions of the independent
reserve and resource reports ("CPR") by RPS Energy Consultants Limited ("RPS")
for both the Lidsey and Brockham Fields in the Weald Basin, UK for the operator
Angus Energy Ltd ("Angus Energy").
Doriemus has a 20% participating interest in the Lidsey Field and a 10%
participating interest in the Brockham Field. Angus Energy is operator of both
Fields and owns 70% of the Lidsey Field and 80% of the Brockham Field.
Highlights:
* Lidsey Field (20% Doriemus)
* oil in-place P50 best case of 9.52 MMstb (gross)
* 2P reserves of 36.0 Mstb (gross)
* 2C contingent resources of 413.6 MMstb (gross)
* Brockham Field (10% Doriemus)
*
+ Oil in-place P50 best case of 3.62 MMstb (gross)
+ 2P reserves of 47.0 Mstb (gross)
The CPRs calculate the reserves and resources with an effective date of 31
December 2013. A new reserve and resource report will be commissioned after the
drilling of the Brockham side-track well, due to start before the end of March
2014, and the drilling of the new Lidsey-2 well to be drilled during April and
May 2014.
The gross in-place volumes for the Brockham Field are as previously announced
on 28 February 2014.
Donald Strang, the Company's Chairman, commented:
"There is a combined 13 million barrels gross barrels of contained oil within
these two conventional oil fields south of London (2.26 million barrels
attributable to Doriemus). The Company is anticipating production to
substantially increase at both the Brockham Field, after the side-track well is
completed in April 2014, and at the Lidsey Field, on completion of the new
Lidesy-2 well before June 2014."
Competent Person's Statement:
The information contained in this announcement has been prepared by RPS Energy
Consultants, and has been reviewed and signed off by Mr Gordon Taylor (CEng,
CGeol) who has over 30 years' experience in upstream oil and gas.
Mr Taylor is a Chartered Geologist and Chartered Engineer. The technical
disclosure in this report complies with the 2007 SPE/AAPG/WPC/SPEE Petroleum
Resource Management System ("PRMS").
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
Simon Clements / Virginia Bull
Full extract from the RPS Reports dated 10 March 2014:
EVALUATION OF LIDSEY AND BROCKHAM FIELDS, ONSHORE UK
In response to Angus Energy Limited's request of February 2014 and the Letter
of Engagement dated 5th February 2014 with Angus Energy Limited (the
"Agreement"), RPS Energy Consultants Limited ("RPS") has completed an
independent evaluation of liquid hydrocarbons in Licence PL241 in the United
Kingdom (the "Properties") in which Angus Energy Limited ("Angus") has an
interest.
This report is issued by RPS under the appointment by Angus Energy Limited and
is produced as part of the Services detailed therein and subject to the terms
and conditions of the Agreement.
This report is addressed to the Company and Third Parties as defined in the
Agreement and is only capable of being relied on by the Company and any Third
Parties under and pursuant to (and subject to the terms of) the Agreement.
The Company may disclose the signed and dated report to third parties as
contemplated by the Purpose defined in the Agreement but in making any such
disclosure the Company shall require the third party (including any Sponsor and
Third Parties) to accept it as confidential information only to be used or
passed on to other persons as the Company is permitted to do under the
Agreement.
The report is based on data and information available up to February 28th 2014.
An effective date of 31st December 2013 has been assumed for the evaluation.
The Services have been performed by an RPS team of professional petroleum
engineers, geoscientists and economists and is based on the Operator's data,
supplied through Angus. All Reserves and Resources definitions and estimates
shown in this report are based on the 2007 SPE/AAPG/WPC/SPEE Petroleum Resource
Management System ("PRMS").
Our approach has been to review the Operator's technical interpretation of
their base case geoscience and engineering data for the field for
reasonableness and to review the ranges of uncertainty for each parameter
around this base case in order to estimate a range of petroleum initially in
place and recoverable.
SUMMARY OF RESERVES AND RESOURCES
Lidsey Field
Volumes of hydrocarbons initially in place in the Lidsey field, as of 31st
December 2013, that have been estimated by RPS are summarised in Table 1.
Field In-Place Volumes (MMstb)
Gross (On Doriemus
Block)1 Working
Interest
(On Block) 1,2
Low Best High Low Best High
(P90) (P50) (P10) (P90) (P50) (P10)
Lidsey Field 7.49 9.52 11.93 1.50 1.90 2.39
1. 97% of the Lidsey Field lies within Licence PL241
2. Doriemus working interest in Licence PL241 is 20%
Table 1: Lidsey Field In Place Volumes, On Block
Reserves in the Lidsey field as of 31st December 2013 that have been estimated
by RPS are summarised in Table 2.
Field Reserves (Mstb)
Gross Field Net Doriemus
Working
Interest
1P 2 2P 3P 1P 2 2P 3P
Lidsey Field 1 12.7 36.0 54.7 2.5 7.2 10.9
1. The Lidsey field lies in Licence PL241. Doriemus working interest in Licence
PL241 is 20%
2. The 1P case has been truncated to the anticipated Licence expiry as
published by DECC of 01/12/2017
Table 2: Lidsey Field Reserves as of 31st December 2013
Contingent Resources in the Lidsey field as of 31st December 2013 that have
been estimated by RPS are summarised in Table 3.
Field Contingent Resources (Mstb)1
Gross Field Net Doriemus
Working
Interest
1C 2C 3C 1C 2C 3C
Lidsey Field 2 195.9 413.6 620.3 39.18 82.7 124.1
1. No economic cutoff applied. A nominal production cutoff of 6 bopd or 1/1/
2033 (whichever earlier) applied with an assumed start date of 1/1/2016.
2. The Lidsey field lies in Licence PL241. Doriemus working interest in
Licence PL241 is 20%
Table 3: Lidsey Field Contingent Resources
Brockham Field
Volumes of hydrocarbons initially in place in the Brockham field, as of 31st
December 2013, that have been estimated by RPS are summarised in Table 4.
Field In-Place Volumes (MMstb)
Gross Net
Doriemus
Working
Interest 1
Low Best High Low Best High
(P90) (P50) (P10) (P90) (P50) (P10)
Brockham Field 1 1.89 3.62 5.83 0.19 0.36 0.58
1. The Brockham field lies in Licence PL235. Doriemus working interest in
Licence PL235 is 10%
Table 4: Brockham Field In Place Volumes
Reserves in the Brockham field as of 31st December 2013 that have been
estimated by RPS are summarised in Table 5.
Field Reserves (Mstb)
Gross Field Doriemus Working
Interest 1
1P 2 2P 3P 1P 2 2P 3P
Brockham Field 1 17.9 47.0 101.5 1.8 4.7 10.1
1. The Brockham field lies in Licence PL235. Doriemus working interest in
Licence PL235 is 10%
2. The 1P case has been truncated to the anticipated Licence expiry as
published by DECC of 27/10/2017.
Table 5: Brockham Field Reserves as of 31st December 2013
QUALIFICATIONS
RPS is an independent consultancy specialising in petroleum reservoir
evaluation and economic analysis. The provision of professional services has
been solely on a fee basis. Mr Gordon Taylor, Director, Geoscience for RPS
Energy, has supervised the evaluation. Mr Taylor is a Chartered Geologist and
Chartered Engineer with over 30 years experience in upstream oil and gas.
Other RPS employees involved in this work hold at least a Masters degree in
geology, geophysics, petroleum engineering or a related subject or have at
least five years of relevant experience in the practice of geology, geophysics
or petroleum engineering.
BASIS OF OPINION
The results presented herein reflects our informed judgement based on accepted
standards of professional investigation, but is subject to generally recognised
uncertainties associated with the interpretation of geological, geophysical and
engineering data. The Services have been conducted within our understanding of
petroleum legislation, taxation and other regulations that currently apply to
these interests. However, RPS is not in a position to attest to the property
title, financial interest relationships or encumbrances related to the
properties.
Our estimates of resources and value are based on the data set available to,
and provided by Angus. We have accepted, without independent verification, the
accuracy and completeness of these data.
The report represents RPS' best professional judgement and should not be
considered a guarantee or prediction of results. It should be understood that
any evaluation, particularly one involving exploration and future petroleum
developments, may be subject to significant variations over short periods of
time as new information becomes available. As stated in the Agreement, RPS
cannot and does not guarantee the accuracy or correctness of any interpretation
made by it of any of the data, documentation and information provided by the
Company or others in accordance with the Agreement. The Consultant does not
warrant or guarantee, through the Services, this report or otherwise, any
geological or commercial outcome.
This report relates specifically and solely to the subject assets and is
conditional upon various assumptions that are described herein. The report, of
which this letter forms part, must therefore be read in its entirety. Except
with permission from RPS, this report may only be used in accordance with the
Agreement. It must not be reproduced or redistributed, in whole or in part, to
any other person than the addressees or published, in whole or in part, for any
purpose without the express written consent of RPS.
Glossary
MMstb million stock tank barrels of oil
Mstb thousand stock tank barrels of oil
oil-in-place the volume of oil estimated to have been initially in
place
P90 There is estimated to be at least a 90% probability
(P90) that the quantities in place equal or exceed
this low estimate
P50 There is estimated to be at least a 50% probability
(P50) that the quantities in place equal or exceed
this best estimate
P10 There is estimated to be at least a 10% probability
(P10) that the quantities in place equal or exceed
this high estimate
1C The low estimate of Contingent Resources. There is
estimated to be a 90% probability that the quantities
actually recovered could equal or exceed this
estimate
2C The best estimate of Contingent Resources. There is
estimated to be a 50% probability that the quantities
actually recovered could equal or exceed this
estimate
3C The high estimate of Contingent Resources. There is
estimated to be a 10% probability that the quantities
actually recovered could equal or exceed this
estimate
1P The low estimate of Reserves (proved). There is
estimated to be a 90% probability that the quantities
remaining to be recovered will equal or exceed this
estimate
2P The best estimate of Reserves (proved+probable).
There is estimated to be a 50% probability that the
quantities remaining to be recovered will equal or
exceed this estimate
3P The high estimate of Reserves
(proved+probable+possible). There is estimated to be
a 10% probability that the quantities remaining to be
recovered will equal or exceed this estimate
-END-