Andalas Energy And Power PLC Offer of New UK Offshore Licences (1391B)

TIDMADL

RNS Number : 1391B

Andalas Energy And Power PLC

05 June 2019

5 June 2019

Andalas Energy and Power Plc

('Andalas' or the 'Company')

Offer of New UK Offshore Licences

Andalas Energy and Power Plc (AIM: ADL) is pleased to report that the Oil and Gas Authority has announced offers of awards for the UK's Frontier 31(st) Offshore Licensing Round and that Andalas and its partners in the Colter joint venture have been successful in their application.

Corallian Energy Limited, the licence administrator, together with its partners, Andalas, UOG Colter, Baron Oil and Corfe Energy have been offered Blocks 98/11b and 98/12 in the English Channel. Andalas has earnt the right to an 8% interest in the blocks through its Farm-In agreement with Corallian. The blocks are contiguous with acreage currently held by the P1918 Joint Venture (Block 98/11a containing the Colter South discovery in which Andalas has an 8% interest); PEDL330 and PEDL345. Andalas participates via its wholly owned subsidiary, Resolute Oil and Gas Limited.

Block 98/12 contains the eastern portion of the Colter South discovery, a rotated fault block with Sherwood Sandstone reservoir which was drilled in a downdip position by well 98/11-1 in 1983, and recently confirmed as a discovery by the Corallian operated 98/11a-6 Colter appraisal well. This well encountered 9 metres of gross oil pay in Sherwood Sandstone and the prospect contains an estimated mean recoverable volume of 15mmbbls prospective resource, 30% of which is located on Block 98/12. Block 98/12 also contains the Ballard Point East Prospect which is a structural high mapped at Penarth level, along strike from the Ballard Point discovery. The prospective reservoir is Sherwood Sandstone.

Block 98/11b contains the Ballard Point discovery which was drilled by Gas Council Exploration in 1984. Well 98/11-2 flowed 9.6 million standard cubic feet of gas per day with 170 barrels of 45oAPI condensate from Triassic Sherwood Sandstone. The appraisal well 98/11-4,4Z drilled in 1987 tested oil at low rates (c.180 bopd equivalent) from just above the oil-water contact in the Sherwood, and gas at low rates (25,000 - 50,000 scfg/d) also from the Sherwood. This well appears to share the same fluid contacts as 98/11-2. Block 98/11b also contains the offshore portion of the Purbeck Prospect which comprises the Purbeck anticline, the northern flank of which anticline was drilled by the BP Southard Quarry well in 1989. This well encountered hydrocarbon columns in the Cornbrash similar to those encountered at the recently drilled 98/11a-6Z sidetrack, and in the Lower Jurassic Bridport and Triassic Sherwood Sandstones. The hydrocarbon phase is uncertain due to mud losses while drilling. The southern flank of the anticline contains a bright amplitude anomaly at Bridport Sand level.

In the southern portion of 98/11b and 98/12 three leads have also been identified on sparse 2D seismic data, south of the main inversion zone. These leads have targets at both Bridport and Sherwood levels.

Within Phase A of the Innovate licence the joint venture must make a decision to enter into Phase B for new seismic acquisition or drill or drop the licence within 3 years.

Simon Gorringe, CEO of Andalas Energy and Power PLC said: "We are pleased that our application has been successful and look forward to furthering this opportunity with our partners."

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and approved by Mr. Gregor Mawhinney. Mr. Mawhinney is consulting for Andalas, acting in the role of Vice President Operations. He has nearly 40 years experience in the oil and gas industry, is a member of the Society of Petroleum Engineers (SPE) and a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL).

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). Upon the publication of this announcement via a Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

For further information, please contact:

 
 Simon Gorringe                 Andalas Energy and Power Plc   Tel: +44 1624 
                                                                681250 
 Graham Smith                   FIM Capital Limited            Tel: +44 1624 
                                                                681250 
 Roland Cornish/ James Biddle   Beaumont Cornish Limited       Tel: [phone] 
                                 (Nominated Adviser)            3396 
 Colin Rowbury                  Novum Securities Limited       Tel: [phone] 
                                 (Joint Broker)                 9427 
 Christian Dennis               Optiva Securities Limited      Tel: [phone] 
                                 (Joint Broker)                 1881 
 

Technical Glossary

 
 Discovered      A petroleum accumulation where one or several 
                  exploratory wells through testing, sampling, 
                  and/or logging have demonstrated the existence 
                  of a significant quantity of potentially recoverable 
                  hydrocarbons and thus have established a known 
                  accumulation. In this context, "significant" 
                  implies that there is evidence of a sufficient 
                  quantity of Petroleum to justify estimating 
                  the in-place volume demonstrated by the well(s) 
                  and for evaluating the potential for technical 
                  recovery. 
 Gross oil pay   The portion (before applying cutoffs) of the 
                  thickness of a reservoir from which oil can 
                  be produced or extracted. Value is referenced 
                  to a true vertical thickness measured. 
 mmbbls          Million barrels. 
 

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June 05, 2019 02:00 ET (06:00 GMT)