14 Aug 2019 07:00
Attis Oil and Gas Ltd / Index: AIM / Epic: AOGL/ ISIN: VGG0620A1003 / Sector: Oil and Gas
14 August 2019
Attis Oil & Gas Ltd ('the Company')
Service Division and Operations Update
Attis Oil and Gas Ltd (AIM: AOGL), the AIM listed oil and gas company, is pleased to announce it has secured two oilfield service contracts. As per the announcement dated 11 July 2019, the Company has been leveraging its increasing regional reputation to build out a services division from its Borger operational base near Amarillo, Texas.
Attis' 100% US subsidiary, Attis Oilfield Services LLC, has entered into agreements to provide regulatory testing and reporting services for 987 wells in the Texas Panhandle for Kodiak Operating LLC and Ponderosa TX Operating LLC ('the Contracts').
The Company forecasts that the Contracts will generate positive cashflow from September 2019 and represent the first step in building out a robust oilfield service offering across the region. The US management team continues to develop the service division and further contracts are anticipated to be agreed, providing a stable revenue base. The service division revenues complement the Company's established strategy to insulate production revenue pressure brought about by the volatility in commodity prices.
Additionally, the Company is pleased to announce an operations update for the period beginning the date of the Attis Oil & Gas field work. Between 1st April 2019 to 31 July 2019 a total of 17,765 barrels of oil equivalent ("BOE") were produced with 11,620 BOE net to Attis. Beginning on August 1 2019, the Company consistently averaged 110 barrels of oil equivalent per day ("BOEPD") net to Attis, further demonstrating the Company's operational success.
Following the completion of initial reworks across the three fields it is expected that production to the Company for the existing pumping assets will be within the 110-120 BOEPD range. The Board believes that future development opportunities are available and that these will be further defined through the reserve and subsurface work currently being undertaken in collaboration with third party geologists and reservoir engineers.
Further to the Company's announcement 31 July 2019, Attis continues to progress the subsurface assessment and development potential across all three fields and current estimates for the completion of work is expected by the end of Q3 2019.
Thom Board, Attis COO said, "I am immensely proud of our operations team and their field delivery. They have consistently proved their depth of knowledge, resourcefulness and commitment. I do however emphasise that I believe this is only the beginning for Attis. The stabilised production base we've built over the last four months provides the platform from which the Company will expand its production and revenue. We believe the preliminarily reserve studies which are being refined together with the external geologists' team could open up development and new drill opportunities within our existing acreage. At the same time, we continue to explore new acreage and drilling opportunities which will complement and enhance our portfolio."
**ENDS**
For further information visit www.attisog.com or contact the following:
Charlie Wood | Attis Oil & Gas Ltd | +44 20 7236 1177 |
Thom Board | Attis Oil & Gas Ltd | +44 20 7236 1177 |
Roland Cornish | Beaumont Cornish Ltd | +44 20 7628 3396 |
James Biddle | Beaumont Cornish Ltd | +44 20 7628 3396 |
Frank Buhagiar | St Brides Partners Limited | +44 20 7236 1177 |
Gaby Jenner | St Brides Partners Limited | +44 20 7236 1177 |
Colin Rowbury | Novum Securities Limited | +44 20 7399 9400 |
About Us
Attis Oil & Gas Ltd is an AIM-traded (London Stock Exchange) North American-based energy company. It is actively pursuing a primary recovery oil strategy focused on re-stimulating wells within mature producing basins with immediate cash flow from projects that are shallow, low risk with low levels of capex and infrastructure already in place. Attis is also seeking to develop new drill opportunities within both existing & new acreage.
Technical Sign Off:
All of the technical information, including information in relation to reserves and resources that is contained in this announcement has been reviewed by, Mr Thom Board. Mr Board is a member of the Society of Petroleum Engineers who is a suitably qualified person with over 24 years' experience operating and developing oil and gas assets. Mr Board has reviewed the release and consents to the inclusion of the technical information.