5 Jun 2019 07:00
5 June 2019
Andalas Energy and Power Plc
('Andalas' or the 'Company')
Offer of New UK Offshore Licences
Andalas Energy and Power Plc (AIM: ADL) is pleased to report that the Oil and Gas Authority has announced offers of awards for the UK's Frontier 31st Offshore Licensing Round and that Andalas and its partners in the Colter joint venture have been successful in their application.
Corallian Energy Limited, the licence administrator, together with its partners, Andalas, UOG Colter, Baron Oil and Corfe Energy have been offered Blocks 98/11b and 98/12 in the English Channel. Andalas has earnt the right to an 8% interest in the blocks through its Farm-In agreement with Corallian. The blocks are contiguous with acreage currently held by the P1918 Joint Venture (Block 98/11a containing the Colter South discovery in which Andalas has an 8% interest); PEDL330 and PEDL345. Andalas participates via its wholly owned subsidiary, Resolute Oil and Gas Limited.
Block 98/12 contains the eastern portion of the Colter South discovery, a rotated fault block with Sherwood Sandstone reservoir which was drilled in a downdip position by well 98/11-1 in 1983, and recently confirmed as a discovery by the Corallian operated 98/11a-6 Colter appraisal well. This well encountered 9 metres of gross oil pay in Sherwood Sandstone and the prospect contains an estimated mean recoverable volume of 15mmbbls prospective resource, 30% of which is located on Block 98/12. Block 98/12 also contains the Ballard Point East Prospect which is a structural high mapped at Penarth level, along strike from the Ballard Point discovery. The prospective reservoir is Sherwood Sandstone.
Block 98/11b contains the Ballard Point discovery which was drilled by Gas Council Exploration in 1984. Well 98/11-2 flowed 9.6 million standard cubic feet of gas per day with 170 barrels of 45oAPI condensate from Triassic Sherwood Sandstone. The appraisal well 98/11-4,4Z drilled in 1987 tested oil at low rates (c.180 bopd equivalent) from just above the oil-water contact in the Sherwood, and gas at low rates (25,000 - 50,000 scfg/d) also from the Sherwood. This well appears to share the same fluid contacts as 98/11-2. Block 98/11b also contains the offshore portion of the Purbeck Prospect which comprises the Purbeck anticline, the northern flank of which anticline was drilled by the BP Southard Quarry well in 1989. This well encountered hydrocarbon columns in the Cornbrash similar to those encountered at the recently drilled 98/11a-6Z sidetrack, and in the Lower Jurassic Bridport and Triassic Sherwood Sandstones. The hydrocarbon phase is uncertain due to mud losses while drilling. The southern flank of the anticline contains a bright amplitude anomaly at Bridport Sand level.
In the southern portion of 98/11b and 98/12 three leads have also been identified on sparse 2D seismic data, south of the main inversion zone. These leads have targets at both Bridport and Sherwood levels.
Within Phase A of the Innovate licence the joint venture must make a decision to enter into Phase B for new seismic acquisition or drill or drop the licence within 3 years.
Simon Gorringe, CEO of Andalas Energy and Power PLC said: "We are pleased that our application has been successful and look forward to furthering this opportunity with our partners."
Qualified Person's Statement
The technical information contained in this announcement has been reviewed and approved by Mr. Gregor Mawhinney. Mr. Mawhinney is consulting for Andalas, acting in the role of Vice President Operations. He has nearly 40 years experience in the oil and gas industry, is a member of the Society of Petroleum Engineers (SPE) and a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL).
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.
For further information, please contact:
Simon Gorringe | Andalas Energy and Power Plc | Tel: +44 1624 681250 |
Graham Smith | FIM Capital Limited | Tel: +44 1624 681250 |
Roland Cornish/ James Biddle | Beaumont Cornish Limited(Nominated Adviser) | Tel: +44 20 7628 3396 |
Colin Rowbury | Novum Securities Limited(Joint Broker) | Tel: +44 207 399 9427 |
Christian Dennis | Optiva Securities Limited(Joint Broker) | Tel: +44 20 3411 1881 |
Technical Glossary
Discovered | A petroleum accumulation where one or several exploratory wells through testing, sampling, and/or logging have demonstrated the existence of a significant quantity of potentially recoverable hydrocarbons and thus have established a known accumulation. In this context, "significant" implies that there is evidence of a sufficient quantity of Petroleum to justify estimating the in-place volume demonstrated by the well(s) and for evaluating the potential for technical recovery.
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Gross oil pay | The portion (before applying cutoffs) of the thickness of a reservoir from which oil can be produced or extracted. Value is referenced to a true vertical thickness measured.
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mmbbls | Million barrels. |