Angus Energy PLC Brockham Field Update (4115Y)

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RNS Number : 4115Y

Angus Energy PLC

03 March 2017

3 March 2017

Angus Energy plc

("Angus Energy", "Angus" or the "Company")

Brockham oil field - BR-X4Z Drilling results confirming potential to place Kimmeridge into production at the Brockham oil field (PL 235)

Angus Energy plc (the "Group") is pleased to announce that, following the extensive analysis of the BR-X4Z sidetrack well, the Company's intention is to bring the Kimmeridge into production at its existing Brockham production facility as soon as the necessary OGA approval is in place.

The Brockham X4Z well, drilled 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. The operator of the well at Horse Hill 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?

Angus Energy is pleased to announce that the preliminary results from Brockham X4Z confirm very similar thickness of reservoir and properties to those reported at Horse Hill. The gross thickness of Kimmeridge in Brockham X4Z is some 385m thick. 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.

Angus took the search for natural fractures a stage further by using the Weatherford Ultra Wave Acoustic borehole imaging tool. This is its first use in Europe. Technical papers are to be presented on this at DEVEX shortly. The tool made it possible to see fractures in the borehole directly, unlike the need to infer fractures from logs. The information 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 Kimmerdige 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.

In line with Angus's measured approach to field development, operations are in hand to install new production facilities for the well and to prepare for the production as soon as necessary OGA approval is in place. Targeted completion for production is in spring/summer 2017. Our professional team will shortly be meeting Surrey County Council to discuss the position in relation to the sidetrack and also to agree what further planning permissions are necessary in order to regularise the existing site cabins, fencing and associated structures.

In addition, additional oil shows were observed in the Portland and Corallian formations. Currently, the Brockham number 2 well is a temporarily suspended producer from the Portland reservoir and the Company 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.

Fuller technical analysis of the results is contained in a presentation prepared by Angus, a copy of which is available from the Company's website: www.angusenergy.co.uk

Qualified Person's Statement:

Chris de Goey, a Non-Executive Director of the Company, who has over 20 years of relevant experience in the oil and gas industry, has approved the information contained in this announcement. Mr de Goey is a member of the Petroleum Exploration Society of Great Britain and the Society of Petroleum Engineers.

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Enquiries:

 
 Angus Energy Plc 
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 Jonathan Tidswell-Pretorius    Tel: [phone] 
  / Paul Vonk 
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 Beaumont Cornish (NOMAD) 
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 James Biddle/ Roland Cornish   Tel: [phone] 
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 www.beaumontcornish.com 
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 Optiva Securities Limited 
  (BROKER) 
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 Jeremy King/ Ed McDermott      Tel: [phone] 
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About Angus Energy plc.

Angus Energy plc. is an AIM quoted independent onshore oil and gas development company focused on leveraging its expertise to advance its portfolio of UK assets as well as acquire, manage and monetise select projects. Angus Energy owns and operates conventional oil production fields in Brockham (PL 235) and Lidsey (PL 241).

Technical Glossary

Burial: As layers are piled one upon another, the sediments beneath are buried

DEVEX: an annual UK based technical conference focussed on reservoir discovery, evaluation, development and recovery in the UK to be held in May 2017. The event is jointly organised by the Petroleum Exploration Society of Great Britain (PESGB), Society of Petroleum Engineers (SPE) and Aberdeen Formation Evaluation Society (AFES).;

Hydrogen Index: Gross trends of hydrogen indices (HIs) can be used as a maturation indicator. The hydrogen index is calculated from Rock Eval data using the following formula: 'HI = S2/TOCx100' where S2 is the amount of hydrocarbons generated through thermal cracking of nonvolatile organic matter in mg/g of rock and TOC is total organic carbon in %.

OGA: the Oil & Gas Authority, an independent government company established by the UK Government in its current form on 1 October 2016

Tmax: The temperature at which the maximum rate of hydrocarbon generation occurs in a kerogen sample during pyrolysis analysis

Weatherford Ultra Wave Acoustic borehole imaging tool: Acquires high resolution images in Oil Based Mud Environments. Its two measurements are the travel time and amplitude of the ultrasonic wave emitted from the ultrasonic transducer and reflected back from the formation to the tool. It provides calliper measurement and the detection of formation/geological features (beddings and fractures) and borehole breakouts from the change in signal amplitude

This information is provided by RNS

The company news service from the London Stock Exchange

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March 03, 2017 02:00 ET (07:00 GMT)