Doriemus PLC - Lidsey-X2 Oil Production Commences

17 Novemeber 2017

Doriemus Plc
("Doriemus" or the "Company")

Oil Production commences from Lidsey-X2 Production Well

Doriemus plc (Listed in Australia ASX:DOR and listed in London NEX:DOR) (“Doriemus” or the “Company”), is pleased to provide an update from Angus Energy Plc (the “Operator”) on the new Lidsey-X2 production well at the Lidsey Oil Field, located at the southern edge of the UK’s onshore Weald Basin, south of London.

David Lenigas, Doriemus Plc’s Executive Chairman, commented;

“We are pleased to see that oil production has now commenced from Lidsey-X2. Even with these initial flow rates, the Lidsey-X2 well provides important commercial oil production and cash flow to Doriemus. We see considerable upside from this well going forward, as the Operator continues to optimise oil production from the Great Oolite reservoir. This is an important milestone for Doriemus and we look forward to gradulally increasing the oil flows from Lidsey over the coming weeks. We are also looking forward to moving to production from our recently drilled Brockham Oil Field’s side-track soon and also moving towards long term flow testing from our Horse Hill -1 well near London’s Gatwick Airport.”

The Operator of the Lidsey Oil Field has advised today that:

“Angus Energy Plc, a conventional oil and gas production and development company, is pleased to announce it has commenced production at Lidsey Oil Field from the well, Lidsey-X2.

Following the drilling and completion of the Lidsey-X2 horizontal production well, which was drilled on time and within budget, the Company is working through the production start-up and production has now been initiated. Initial start-up rates of production from the Great Oolite reservoir are coming in at forty barrels of 38.5 API of dry oil per day. The fluid column (oil) extends to 322m from surface (bottom hole depth of 1,009.3m) with a measured static bottom hole pressure of 764 psi. The Great Oolite is the first of three reservoirs with potential viability in Lidsey-X2 as per the Company RNS of 6 November 2017.

Compared to pre-drill assessments set forth in the Competent Person’s Report (“CPR”) of the 7 November 2016 Admission Document, flow rates from the Great Oolite reservoir are below expectations, and work is continuing to clean up the well. The Company is investigating the new geological and borehole information to update its understanding of the reservoir. In addition, the Company is currently examining evidence that suggests a partial flow reduction is the result of a hole in the production tubing, therefore not allowing the well to be fully drawn down. The Company is conducting further analysis and if confirmed, the Company will undertake operations to repair the tubing which will allow maximum draw from the reservoir. This is the priority for the Company over the coming weeks.

In addition to any necessary repair, industry information and technical guidance on analogous wells in the region suggest initial flow rates can be improved. Angus Energy believes its initial flow rates from Lidsey-X2 have similar potential for increased yield. Therefore, the Company is conducting a thorough study to optimise and enhance production levels from the Great Oolite. 

Further to the Company RNS of 6 November 2017, Angus Energy will submit an FDP Addendum to the Oil and Gas Authority (“OGA”) to begin production appraisal of the Kimmeridge and Oxford layers at Lidsey.

Operations Update: Lidsey-X1

The Lidsey-X1 well, first drilled in 1987, will now resume production from the Great Oolite reservoir in addition to production from Lidsey-X2. The Company expects to achieve the historic production levels of 15-20 barrels of oil per day (“bopd”) before the well was shut in nearly 2 years ago in January 2016. 

Given the encouraging geochemical analysis of Lidsey-X2’s Kimmeridge and Oxford Layers, disclosed in the Company RNS of 6 November 2017, the above-mentioned FDP Addendum will include a submission to conduct analysis of the production potential from the Kimmeridge layer and Lias source rock from Lidsey-X1. The Lidsey-X1 exploration well was previously drilled through all the aforementioned layers.

The Lias source rock, positioned beneath the Great Oolite, has a comparable composition to the interbedded limestones / shales found in the hybrid Kimmeridge reservoir at the Company’s Brockham Oil Field, located on the northern end of the Weald Basin. The deeper depth of the Lias source rock in the Lidsey-X1 indicates an increased maturity as compared to layers above the Great Oolite such as the component Kimmeridge and Oxford layers of the Lidsey-X2, as outlined in the Company RNS of 6 November 2017.

Paul Vonk, Manging Director of Angus Energy, commented:

“Production has now commenced from Lidsey-X2.  This project was delivered on time and on budget. Even with these initial flow rates, Lidsey-X2 provides commercial production and cash flow. We will continue to optimise production from the Great Oolite reservoir at Lidsey as we work to increase flow rates and we look forward to developing its additional reservoirs to enhance long run value for our shareholders.”

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.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

END

About the Lidsey Production Oil Field and Doriemius Plc’s Interest:

The Lidsey Oil Field is 5.3km² in size and located in the southern portion of the onshore UK Weald Basin in West Sussex south of London and next to Bognor Regis on the south coast of England.

Doriemus Plc owns a 30% direct participating working interest in the Lidsey-X2 production well, which is located within the onshore Lidsey Oil Field (PL 241)(Production Licence) under the rights it has under the 21 November 2013 Farm-Out Agreement. The Lidsey Oil Field is operated by Angus Energy Plc. In respect of all other wells on the Lidsey Oil Field, Doriemius has a 20% participating interest and contribution to capital costs will be 20%.

The directors of the Company accept responsibility for the contents of this announcement.

CONTACTS:

For further information on this update or the Company generally, please visit our website at

www.doriemus.co.uk or contact:

Doriemus Plc

UK Contacts:
David Lenigas (Executive Chairman)             [phone]
Greg Lee (Technical Director)                                                                                    

Australia Contacts:
Julia Beckett (Joint Company Secretary)             [phone]
Email: [e-mail]

UK Advisors:

Peterhouse Corporate Finance Limited            [phone]
Guy Miller
Fungai Ndoro

FORWARD LOOKING STATEMENTS AND IMPORTANT NOTICE:

This document may contain forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by many variables which could cause actual results or trends to differ materially.

Investors should make and rely upon their own enquiries before deciding to acquire or deal in the Company’s securities.

This report contains forecasts, projections and forward looking information.  Although the Company believes that its expectations, estimates and forecast outcomes are based on reasonable assumptions it can give no assurance that these will be achieved.  Expectations, estimates and projections and information provided by the Company are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are out of the Company’s control.  Actual results and developments will almost certainly differ materially from those expressed or implied. The Company has not audited or investigated the accuracy or completeness of the information, statements and opinions contained in this report.  To the maximum extent permitted by applicable laws, the Company makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for (1) the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this report and (2) without prejudice to the generality of the foregoing, the achievement or accuracy of any forecasts, projections or other forward looking information contained or referred to in this report.

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