Alba Mineral Resources PLC Horse Hill Update (7933W)

TIDMALBA

RNS Number : 7933W

Alba Mineral Resources PLC

03 August 2018

Alba Mineral Resources plc

("Alba" or the "Company")

Completion of Portland High Rate Flow Test

Horse Hill-1 ("HH-1") oil discovery, Weald Basin, UK

Highlights:

-- Portland short-term high rate tests achieve stable implied equivalent daily pumped rates of 401 and 414 barrels of oil per day ("bopd") of dry 36 API oil over two periods of 6 and 2 hours, respectively. Maximum instantaneous half-hourly pumped rates of 441 and 470 bopd.

-- The maximum rate recorded was limited by the rod pump's maximum rate capacity of approximately 470 bopd. Higher capacity rod pump sourced and mobilised for use at HH-1.

   --     Metered daily oil rates and recovered Portland volumes, to date, exceed 2016 test values. 
   --     Associated solution gas rates of around 41,000 cu ft per day. 

-- Forward extended well test ("EWT") programme includes flow optimisation necessary to determine the maximum sustainable long-term flow rate and a lengthy stabilised flow period to test whether the well accesses a commercially viable oil volume.

-- The further EWT objective, to establish the commerciality of the Kimmeridge Limestone 3 & 4 oil pools, will follow directly after the completion of the Portland test sequence.

Alba (London AIM: ALBA) is pleased to announce that it has been informed by Horse Hill Developments Ltd ("HHDL"), the operator of the Horse Hill-1 ("HH-1") Kimmeridge and Portland oil discovery, located in licence PEDL137, in which Alba holds an 11.765% beneficial interest, has informed the Company that the planned high rate Portland test sequence, designed to assess the reservoir's maximum short-term flow capacity, has been successfully completed. Stable implied daily pumped rates of 401 and 414 bopd of dry 36 API oil were recorded over two periods of 6 and 2 hours respectively, with associated maximum half-hourly pumped rates of 441 and 470 bopd. Metered solution gas rates of around 41,000 cu ft per day were recorded through the test separator over the two maximum rate periods.

George Frangeskides, Alba's Executive Chairman, commented:

"These latest positive Portland results continue to build on the Portland tests conducted in 2016. It should be stressed, however, that these short-term, high rate test results are not the long-term sustainable rates of production from the well on which the assessment of commerciality will be based and that Portland testing operations are continuing. Following the completion of the Portland test programme, the Operator will move directly onto the long-term Kimmeridge test programme, with the objective being to establish the commerciality of the Kimmeridge Limestone 3 & 4 oil pools. We look forward to providing further updates on progress as we move through the programme."

The Company has been further advised that:

-- as maximum initial rates were restricted by the pump's capacity of around 470 bopd, a larger capacity pump has been sourced and has been mobilised to site for possible use during the remainder of the Portland test sequence;

-- to date, the recorded implied daily oil rates and overall produced Portland oil volumes exceed those reported from the initial short-term test programme of March 2016. The Portland oil exported from HH-1 to date is of Brent Crude quality and exceeds minimum refinery specifications, containing only around 0.2% water content.

It should be noted that the Operator has advised that the above high rate results are not the long-term sustainable flow rates that will be utilised to assess the Portland's commercial viability as part of the next test phase.

Forward EWT Plans

HHDL has advised the Company that following a planned further short restricted flow period and pressure build up test, flow will be further optimised to determine the well's sustainable long-term production rate and to test whether the well can recover a commercially viable volume of oil.

The further EWT objective, of testing the two underlying Kimmeridge Limestone 3 & 4 oil pools which in 2016 flowed 40 API crude naturally to surface at an aggregate implied stable dry oil rate of 1,365 bopd, will commence directly after completion of the Portland test.

Further updates will be provided as the EWT progresses.

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and approved by Feroz Sultan (B.Sc (Hons) Geology, M.Sc, Petroleum and Structural Geology, Karachi and M.Sc Petroleum Geology, Imperial College London), a petroleum geologist with over 45 years' experience in the management, exploration, development and production of oil and gas.

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

For further information please contact:

Alba Mineral Resources plc

   George Frangeskides, Executive Chairman                          [phone] 

Cairn Financial Advisers LLP (Nomad)

   James Caithie / Liam Murray                                                      [phone] 

First Equity Limited (Broker)

   Jason Robertson                                                             [phone] 
 
 
   Yellow Jersey PR (Financial PR/ 
   IR) 
 Tim Thompson / Henry Wilkinson 
  [e-mail]             [phone] 
 

Alba's Principal Operations & Investments

Oil & Gas

Horse Hill (Oil & Gas, UK): Alba holds an 18.1 per cent interest in Horse Hill Developments Limited, the company which has a 65 per cent participating interest and operatorship of the Horse Hill oil and gas project (licences PEDL 137 and PEDL 246) in the UK Weald Basin.

Brockham (Oil & Gas, UK): Alba has a direct 5 per cent interest in Production Licence 235, which comprises the previously producing onshore Brockham Oil Field.

Mining

Amitsoq (Graphite, Greenland): Alba owns a 90 per cent interest in the Amitsoq Graphite Project in Southern Greenland and has an option over the remaining 10 per cent.

Thule Black Sands (Ilmenite, Greenland): Alba owns 100 per cent of mineral exploration licences 2017/29 and 2017/39 in the Thule region, north-west Greenland.

Gold Mines of Wales (Gold, Wales, UK): Alba holds a 49 per cent interest in Gold Mines of Wales, the ultimate owner of the Clogau Gold project situated in the Dolgellau Gold Belt in Wales.

Inglefield Land (Multi-Commodity, Greenland): Alba owns 100 per cent of mineral exploration licences 2017/40 and 2018/15 in north-west Greenland.

Melville Bay (Iron Ore, Greenland): Alba is entitled to a 51 per cent interest in mineral exploration licence 2017/41 in Melville Bay, north-west Greenland. The licence area benefits from an existing inferred JORC resource of 67 Mt @ 31.4% Fe.

Web: www.albamineralresources.com

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August 03, 2018 06:30 ET (10:30 GMT)