London South East | The UK's favourite investor portal.

Angus has confirmed as follows:

The preliminary results from the Brockham X4Z well confirm very similar thickness of reservoir and properties to those reported at Horse Hill. The gross thickness of the Kimmeridge formation in Brockham X4Z is some 385m.
The two limestone intervals (each around 30m) tested in Horse Hill are also seen in the Brockham well.
The reservoir properties appear to be very similar to Horse Hill, based on electrical logging evidence.
The first use in Europe of the Weatherford Ultra Wave Acoustic borehole imaging tool has made it possible to see fractures in the borehole directly, without the need to infer fractures from logs. The information thereby obtained has confirmed not only evidence of natural fractures in the two main limestones intervals previously tested at Horse Hill, but also confirmed abundant natural fractures in sections of interbedded shales and limestones between and below the two main limestones. Around 200m of the reservoir has this potential.
Angus took many samples during the drilling to use for geochemical analysis. The initial results of this work show total organic content through the Kimmeridge section between 2-12%, exceeding Horse Hill in places. Furthermore, evidence shows that the highest organic content corresponds to the limestones and, in particular, the intervals in between the limestones which have natural fracturing. Whilst organic content is not the same as oil content, it is indicative of those sections where oil content will be highest. This supports the potential for some 200m of reservoir of interest. Actual oil content depends on the extent to which burial has resulted in pressures and temperatures sufficient to generate oil. Initial Tmax and Hydrogen Index readings correspond with Horse Hill data. Since oil was produced briefly at Horse Hill and as it is most likely that the oil in the Portland Sandstone in Brockham is sourced from the Kimmeridge, the evidence backs a similar oil content to Horse Hill.
Therefore, based on the evidence so far, Angus has confidence that the well will be similar to Horse Hill and, perhaps, given that the reservoir is potentially much thicker in zones not previously tested, the results could be even better. These results achieve everything short of production to prove the potential from this zone.
Operations are in hand to install new production facilities for the well and to prepare for production as soon as necessary OGA approval is in place.
Additional oil shows were observed in the Portland and Corallian formations. Currently, the Brockham number 2 well is a temporarily suspended producing well from the Portland reservoir and the Operator is confident of additional production from the Portland from Brockham X4Z in due course. The Corallian formation, with good indications of both gas and oil, is still being evaluated.

Alba has a 5% direct interest in Production Licence 235 (“PL 235”), which comprises the producing onshore Brockham Oil Field, which is located just to the north-west of the Horse Hill licences.

The Brockham Oil Field is located on licence PL235 in the Weald Basin in Surrey, southern England. The field was discovered by BP in 1987 with the drilling of the Brockham-X1 well. The field was in production until early 2016, and had average daily production of approximately 35 bopd from the Brockham-X2Y production well. In March 2018 Alba announced that production had recommenced from Brockham-X2Y.

In March 2017 Alba was advised by the Operator, Angus Energy plc (“Angus” or the “Operator”), that, following extensive analysis of the BR-X4Z sidetrack well, the Operator’s intention is to bring the Kimmeridge into production at the existing Brockham production facility as soon as the necessary OGA approval is in place.

The Brockham X4Z well, drilled in Q1 2017 to a total depth of 1,391m, was planned to evaluate the Portland, Corallian and Kimmeridge formations at Brockham, including an evaluation of the Kimmeridge reservoir that had been demonstrated by the Horse Hill discovery 8 km to the South. Horse Hill Developments Limited (“HHDL”), the operator of the well at Horse Hill, in which project Alba has a 9.75% economic interest, has announced cumulative production rates of over 1,500 barrels per day in short term testing.

The Brockham X4Z well was intended to establish whether the evidence of a potential reservoir reported at Horse Hill extended further north into the Brockham licence. The well was therefore intended to answer three main questions: Is the reservoir section in Brockham similar in thickness and reservoir properties to what had been reported at Horse Hill? Is there evidence of naturally occurring fractures to enable production of oil using conventional means? Is the content of oil in the Kimmeridge similar to Horse Hill where oil was tested at substantial rates?

In Q1 2016 work a flow test was carried out from the HH-1 Upper Portland conventional oil pool and the Upper and Lower Kimmeridge limestones in order to assess the recoverable volume of oil. The final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone was recorded at 1688 bopd. Over the 30-90 hour flow periods from each of the three zones, no clear indication of any reservoir pressure depletion was observed. The final Portland test of 323 bopd, over an 8.5 hour period is the highest stable dry oil flow rate from any onshore UK Portland well. The stable, natural dry-oil flow rate of 464 bopd from the Lower Kimmeridge Limestone is the first ever flow from this rock unit in the Weald Basin and onshore UK. Based on the analysis of published reports from all significant UK onshore discovery wells, the 901 bopd from the Upper Kimmeridge zone is likely the highest stable natural dry oil flow rate from a single reservoir in any UK onshore new field wildcat discovery well.

High quality Brent Crude was produced: light, sweet oil (40 degrees API in Kimmeridge, 35-37 degrees API in Portland), with 1,940 barrels delivered to the Esso Fawley refinery. Preliminary analysis confirms that the Lower and Upper Kimmeridge Limestone units are naturally fractured reservoirs with high deliverability. There is a strong possibility for further optimisation and increased flow rates from all three zones in future development and production wells, particularly through the use of horizontal wells.

The most recent Xodus calculation (February 2017) for Portland sandstone P50 Oil in Place (OIP) is 32 million barrels, a 53% increase on previous calculations. The base case Portland initial oil rate was estimated at 350 barrels of oil per day per well. Ultimate recovery could be increased by a further 8-14% of OIP via implementation of a water re-injection scheme.

On 27 June 2018 it was announced that long-term production testing operations at Horse Hill were commencing, with the aim of moving towards a declaration of commerciality and stable long-term production from the Portland and Kimmeridge.

The Horse Hill-1 well was spudded on 3rd September 2014 to test several conventional stacked oil and gas targets in the proven productive Portland Sandstone, Corallian Sandstone and Great Oolite Limestone levels in the well-defined Horse Hill prospect in the Weald Basin situated in Surrey, England.

The well was completed on 5 November 2014, reaching a total depth of 8,770 ft (2,673 metres), and encountering several hydrocarbon-bearing horizons. Having initially acquired a 5 per cent interest in the Project, following subsequent acquisitions Alba now has an 18% shareholding in Horse Hill Developments Limited ("HHDL").

HHDL is a special purpose company that owns a 65% participating interest and is the operator of the licence area, comprising Production and Exploration Development Licences (PEDL) 137 and 246 ("Horse Hill or the "Licence Area"). For further information go to www.horsehilldevelopments.co.uk. The remaining 35% participating interest in the Licence Area is held by Tellurian Inc, formerly Magellan Petroleum Corporation (NASDAQ: TELL). As such, Alba owns an effective economic interest of 11.765% in the Horse Hill Project.

On 11 May 2015 Alba announced that the calculated estimates by Xodus Group (“Exodus”), an independent international energy consultancy based in the UK, showed that the Upper Portland Sandstone conventional reservoir contains a "Best Estimate" (P50) gross oil initially in place (“OIIP”) of 21.0 million barrels ("mmbbls") entirely within PEDL137 and incorporating both the HH-1 and CF-1 wells. Alba had initially announced a gross OIIP of 3.1 mmbbls (P50) in the Upper Portland Sandstone on 24 October 2014, which was then upgraded to 8.2 mmbbls (P50) on 17 December 2014.

In August 2015, Schlumberger provided HHDL with an independent report of the estimated oil in place contained within the licence area. The calculated gross OIIP at Horse Hill was 10,993 mmbbls, and is composed of 8,262 mmbbls within tight limestones and shales of the Kimmeridge Clay Formation, and 2,731 mmbbls associated with the shales of the Oxford Clay and Lias Formations.

Latest Share Chat

Member Info for Jarv55

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)