8 May 2018 10:30
08 May 2018
Nu-Oil and Gas plc
("Nu-Oil" or "the Company")
Approval of Production Test Plan - PL2002-01(A)
Nu-Oil is pleased to announce that the Department of Natural Resources ("DNR") has approved the programme for the production test (the "Test") at Enegi Oil Inc.'s ("Enegi") Garden Hill site in western Newfoundland. Enegi is the Company's wholly owned subsidiary.
PVF Energy Services ("PVF") is completing the clean-up of the well-tubing, undertaking any maintenance required to site facilities and performing routine pre-flow checks. The test, which is expected to last between 30 and 90 days, will begin when this preparation is concluded. Under the Production Sharing Agreement announced on 31 January 2017 all operations on site are undertaken and financed by PVF.
The Company looks forward the Test, which will be a significant milestone towards achieving the objective of restoring production from the PAP#1-ST#3 well (the "Well").
Alan Minty, Chairman of Nu-Oil, commented:
"PL2002-01(A) is leased to our subsidiary Enegi Oil Inc., which is working with PVF as they progress operations at Garden Hill. We believe that the field has significant value for the Company. We look forward to the production test, the results of which will be used by PVF as they finalise their plans for the wider development of the field. We continue our negotiations with PVF to agree a farm-out and we look forward to updating the market as and when an agreement is concluded."
Enquiries
Nu-Oil and Gas plc | |
Simon Bygrave Investor Relations & Communications | Tel: +44 (0)161 817 7460 |
Nigel Burton Chief Executive Officer | Tel: +44 (0)7785 234 447 |
Strand Hanson Limited Rory Murphy/Ritchie Balmer/Jack Botros | Tel: +44 (0)20 7409 3494 |
Novum Securities Limited | Tel: +44 (0) 20 7399 9425 |
Jon Bellis |
Notes
The Company
Nu-Oil is a development and production company, which utilises appropriate development approaches to create value from undeveloped and mature oil and gas assets. Nu-Oil is building a portfolio of development and production assets with an emphasis on stranded and marginal discoveries which can be unlocked using cost-effective development solutions.
Nu-Oil targets thoroughly appraised fields located in basins with stable political and regulatory regimes. By doing so Nu-Oil minimises exposure to the risks associated with frontier plays, particularly exploration and appraisal risks.
Enegi Oil Inc.
Enegi Oil Inc., the Company's wholly owned subsidiary, is a private limited company registered in Canada through which the Company manages its Newfoundland assets. Enegi Oil Inc. owns 100% of Production Lease 2002-01(A) and Exploration Licence 1070.
Disclaimer
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").