Doriemus PLC Portland Oil Discovery, Horse Hill-1, Weald Basin
24 Oktober 2014 - 8:01AM
UK Regulatory
TIDMDOR
24 October 2014
Doriemus plc
("Doriemus" or "the Company")
Portland Oil Discovery, Horse Hill-1, Weald Basin UK
Doriemus today announces that, following preliminary evaluation of the electric
logs, the Horse Hill-1 well has discovered an oil accumulation in the
conventional Upper Jurassic Portland Sandstone at a top reservoir depth of
1,791 feet TVDss.
A preliminary most likely estimate of 3.1 million barrels ("mmbbls") of gross
in place hydrocarbon volume has been calculated within the upper Portland, with
a further gross unrisked in place prospective hydrocarbon volume of 16.8 mmbbls
of oil in a separate lower sand in the Portland interval located in an untested
fault block to the south. As previously announced, the well is being deepened
to the Triassic where an additional target, believed to have potential for gas,
is expected to be reached in the next two weeks.
The Portland Sandstone was previously reported on 16 October 2014 to have oil
shows in cuttings and elevated gas readings whilst drilling and these
indications have been confirmed by independent petrophysical analysis of the
electric logs acquired in the well during the last week. Further analysis is
continuing to establish the recoverable volume of oil that has been discovered.
Donald Strang, the Company's Chairman, commented:
"We are delighted with the results so far from this well. The presence of a
larger, unappraised, Portland feature creates considerable further upside. We
are now looking forward to drilling the Triassic, which is a new and untested
exploration target in the area and which, if successful, may contain
appreciable volumes of gas."
The Horse Hill-1 well is located on the northern side of the Weald Basin near
Gatwick Airport. Doriemus owns a 10% interest in Horse Hill Development Limited
("HHDL"), a special purpose company. HHDL owns a 65% participating interest and
is the operator of onshore licences PEDL 137 and the adjacent licence PEDL 246
in the Weald Basin. The participants in the Horse Hill-1 well are HHDL with a
65% working interest and Magellan Petroleum Corporation with a 35% interest.
Doriemus's net interest in any discovery is 6.5%.
Additional analysis:
The upper Portland Sandstone reservoir, which produces at the nearby Brockham
oil field, was also intersected by the Collendean Farm-1 exploration
approximately 790 metres north of the Horse Hill-1 well. Using the solely
available 2D seismic data and the well results, the operator has mapped an area
of closure of approximately 3.8 square kilometres where the Portland Sandstone
is above the observed oil down to at a depth of 1,901 feet TVDss. The presence
of two wells within the same mapped structural closure significantly increases
the confidence in a commercial discovery and there is every indication that the
Portland reservoir can be developed as a commercial oil field.
The gross oil bearing upper Portland Sandstone interval in Horse Hill-1
measures 102 feet, has an average porosity of over 16% and average oil
saturation is estimated as 36%. Based on regional and local trends, confirmed
by wells at Brockham, these reservoir parameters indicate a high likelihood of
production at commercial rates. The equivalent interval in the Collendean
Farm-1 well, drilled by Esso in 1964, shows similar reservoir characteristics
over a 97 foot gross interval. The gross oil column contained within the Horse
Hill-Collendean Farm structure is in excess of 140 feet.
The lower Portland Sandstone reservoir, which is seen to be water wet in Horse
Hill-1 and Collendean Farm-1, lies above the oil down to in an untested fault
block to the south of the Horse Hill-1 well and is interpreted to contain a
prospective most likely in place oil gross volume of 16.8 mmbbls.
The Corallian Sandstone and Great Oolite targets in the Horse Hill-1 well are
not seen on electric logging to contain moveable hydrocarbons, however, further
evaluation of several thick Kimmeridgian-age limestones, which had hydrocarbon
shows and elevated mud gas readings whilst drilling, may provide additional oil
potential within the well.
Low, medium and high estimates of Portland oil in place are summarised in Table
1.
Table 1: Estimated gross in place discovered and undiscovered oil volumes
mmbbls, Low (P90) Medium (P50) High (P10)
in-place-oil
Discovered 1.5 3.1 4.8
Undiscovered 7.8 16.8 29.7
The gross in place hydrocarbon volumes have been prepared by Stephen Sanderson
acting as the competent person on behalf of HHDL.
Volumes have been prepared using the methodologies and standards published by
the Society of Petroleum Engineers.
The gross in place hydrocarbon volumes presented should not be considered as
either contingent resources or reserves.
Competent Person's Statement:
The technical information contained in this announcement has, for the purposes
of the AIM Guidance Note for Mining, Oil and Gas companies has been reviewed
and approved by Jonathan Tidswell-Pretorius, executive director at HHDL and
Chairman of Angus Energy Ltd, a UK-registered onshore operator who has 15 years
of relevant experience in the oil and gas industry. Mr. Tidswell-Pretorius is
a member of the Society of Petroleum Engineers and United Kingdom Onshore Oil
and Gas (UKOOG) industry bodies.
Glossary:
2D seismic seismic data collected using the two-dimensional common
depth point method
contingent resources those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known
accumulations, but the applied project(s) are not yet
considered mature enough for commercial development due
to one or more contingencies. Contingent Resources may
include, for example, projects for which there are
currently no viable markets, or where commercial
recovery is dependent on technology under development,
or where evaluation of the accumulation is insufficient
to clearly assess commerciality
discovered/discovery a discovery is a petroleum accumulation for which one or
several exploratory wells have established through
testing, sampling and/or logging the existence of a
significant quantity of potentially moveable
hydrocarbons
electric logs tools used within the wellbore to measure the rock and
fluid properties of surrounding rock formations
mmbbls million barrels
oil down to the deepest level where oil saturation is measured at
the base of a porous reservoir where it directly
overlies rock of very low porosity and permeability
where no reliable oil water contact can be established
oil in place the quantity of oil or petroleum that is estimated to
exist originally in naturally occurring accumulations
before any extraction or production
oil saturation the percentage of available pore space within the
reservoir containing oil
P10 a 10% probability that a stated volume will be equalled
or exceeded
P50 a 50% probability that a stated volume will be equalled
or exceeded
P90 a 90% probability that a stated volume will be equalled
or exceeded
porosity the percentage of void space in a rock formation, where
the void may contain, for example, water or petroleum
reserves those quantities of petroleum anticipated to be
commercially recoverable by application of development
projects to known accumulations at a given date forward
under defined conditions
TVDss true vertical depth below a subsea datum
undiscovered those quantities of petroleum which are estimated, as of
a given date, to be contained within accumulations that
have not been tested by drilling
Enquiries:
Doriemus plc
Donald Strang, Chairman +44 (0) 20 7440 0640
Cairn Financial Advisers LLP:
James Caithie / Jo Turner / Carolyn Sansom +44 (0) 20 7148 7900
END
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