Nu-Oil and Gas PLC Marginal Field Development Company Ltd Farm-In (5293P)

TIDMNUOG

RNS Number : 5293P

Nu-Oil and Gas PLC

19 February 2016

NU-OIL AND GAS PLC

AIM symbol: 'NUOG'

19 February 2016

NU-Oil and Gas plc

("NU-Oil" or "the Company")

Marginal Field Development Company Ltd (formerly ABT Oil and Gas Ltd) Farm-In to the Helvick Oil Field and Dunmore Oil Discovery

NU-Oil, the independent Oil and Gas Company, is pleased to provide an update regarding Marginal Field Development Company Ltd ("MFDevCo" formerly ABT Oil & Gas Limited), the oil and gas technology company in which NU-Oil has a 50% interest, and its farm-in to the Helvick oil field and the Dunmore oil discovery (collectively the "Discoveries"), located in Standard Exploration Licence 2/07 in the North Celtic Sea Basin offshore Ireland. The agreement was originally announced on 13 November 2013.

A two year Lease Undertaking in respect of both Discoveries has been granted by the Minister of State at the Department of Communications, Energy and Natural Resources of Ireland, with effect from 1 March 2016 to allow for evaluation of low cost development options. The award of the Lease Undertaking triggers a staged 50% farm-in by MFDevCo, with an agreed work programme for staged equity participation:

   --     10% initial working interest assignment to MFDevCo, subject to Ministerial consent; 

-- Further equity assignment (up to 40%) based on undertaking the agreed work programme and receipt of a Petroleum Lease from the Minister and the approval of any Plan of Development.

Nigel Burton, CEO of NU-Oil, commented:

'MFDevCo and the MFD Consortium's solutions have the potential to improve the commercial viability of fields and we look forward to them being utilised to advance Helvick and Dunmore for the benefit of all interest holders."

Helvick

The Helvick oil field is located in Block 49/9, some 36 kilometres off the south coast of Ireland. The Helvick discovery well, 49/9-2, was first drilled in 1983 and flowed at a cumulative rate of approximately 9,900 BOPD and 7.5 MMSCFGD. Three appraisal wells were subsequently drilled in the late 1980s to delineate the field. In 2000, Providence drilled the 49/9-6Z well which was tested at rates of approximately 5,200 BOPD. Further detailed analysis indicated that the Helvick reservoir is relatively small in size and, due to this small size and the low oil price at the time, the field was not deemed commercially viable. However, MFDevCo and the Partners now believe that Helvick is potentially commercial using MFDevCo and the MFD Consortium's new low cost development solutions.

Dunmore

The Dunmore discovery is located approximately 20 kilometres north of the Hook Head discovery in the Celtic Sea. The discovery well, 50/6-1, was drilled by the then Operator, Gulf Oil, in 1985/86 and flowed at a rate of approximately 2,100 BOPD of high quality (44 API) oil. During 2008, Providence drilled the 50/6-4 appraisal well on the Dunmore structure and, whilst the well failed to prove the lateral extent of the hydrocarbon bearing Upper Jurassic sands, a new oil bearing carbonate interval was intersected.

**ENDS**

Enquiries:

   NU-Oil and Gas                plc 
   Alan Minty, Executive Chairman              Tel: + 44 161 817 7460 
   Nigel Burton, CEO                                           Tel: [phone] 
   Beaufort Securities Limited                         Tel: [phone] 

Jon Belliss

Elliot Hance

Cenkos Securities

   Neil McDonald                                                 Tel: + 44 131 220 9771 
   Derrick Lee                                                          Tel: + 44 131 220 6939 
   St Brides Partners Limited                            Tel: [phone] 

Elisabeth Cowell

Lottie Brocklehurst

www.nu-oilandgas.com

Note to Editors:

NU-Oil and Gas plc (NUOG) is an independent oil and gas company whose strategy is to build a diverse portfolio of assets with a strong emphasis on acquiring interests in stranded and marginal fields. These fields are producing or highly-appraised. NUOG will look to develop these assets utilising solutions delivered by Marginal Field Delivery Company ("MFDevCo" formerly ABT Oil and Gas Ltd) and the MFD Consortium, which can significantly improve the development economics of a project. This is also expected to enable the early booking of reserves.

Marginal Field Delivery Company (formerly ABT Oil and Gas Ltd) (www.mfdevco.com)

Marginal Field Delivery Company ('MFDevCo') is a joint venture between RMRI (www.rmri.co.uk) and NU-Oil and Gas plc Oil plc. It focuses on maximising recovery from the vast, undeveloped hydrocarbon resources contained within marginal fields worldwide, utilising appropriate re-deployable solutions to transform these undervalued assets. MFDevCo manages the entire lifecycle of marginal field projects from opportunity screening, suitability assessment and financing through engineering to production and decommissioning. The solutions developed can be used to:

   --     Realise the potential from marginal or stranded fields 
   --     Extend the life of mature fields 

-- Rejuvenate fields with a previous or existing development solution that is currently sub-economic

   --     Defer decommissioning liabilities 
   --     Provide early production systems 

The Marginal Field Delivery Consortium www.mfdconsortium.com

The Marginal Field Delivery Consortium (the Consortium) is a collaborative partnership, established and led by MFDevCo, between upstream oil and gas industry specialists committed to developing hydrocarbon resources around the world which cannot be economically recovered using conventional methods. Through its members, The Consortium offers the technology and services required to deliver marginal oil and gas projects from project identification and concept selection through to operation and decommissioning, using cost-effective and re-deployable production solutions which transform the economics of marginal fields by reducing the development costs by up to 60% compared to using conventional solutions.

The Consortium is led by MFDevCo and also includes:

Arup - ACE platform and project management

Kongsberg - Control and automation systems for 'normally unattended' operations

Frames - Process and utility design for 'normally unattended' solutions

RMRI - Managing regulatory aspects of 'normally unattended' operations

Braemar ACM - Facility financing, yard broker and assistance with project acquisition

AGR - Drilling management and well design services

Apollo - NU-SIFT structural engineering

This information is provided by RNS

The company news service from the London Stock Exchange

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February 19, 2016 02:00 ET (07:00 GMT)