Alba Mineral Resources PLC Horse Hill Update (3401Z)

TIDMALBA

RNS Number : 3401Z

Alba Mineral Resources PLC

17 May 2019

Alba Mineral Resources plc

("Alba" or "the Company")

Portland oil production at Horse Hill now exceeds 20,000 barrels

Alba Mineral Resources plc (AIM: Alba) ("Alba" or the "Company"), the diversified mineral exploration and development company, announces that Horse Hill Developments Ltd ("HHDL" or the "Operator"), the operator of the HH-1 Kimmeridge Limestone ("KL") and Portland Sandstone ("Portland") oil discovery in which Alba has an 11.765% interest, has advised the Company that:

- following a week-long pressure build-up test ("PBU"), the aggregate total Portland oil production at the Horse Hill oil field now exceeds 20,500 barrels ("bbl");

- the Portland continues to produce at a stable rate of over 220 barrels of dry oil per day ("bopd") at a modest reservoir pressure draw-down, and no formation water has yet been produced to surface;

- the latest PBU yielded significantly better than expected results, with little or no apparent pressure depletion compared to the last PBU in early April;

- the potential positive impact on connected oil in place will therefore be thoroughly evaluated and reported in due course; and

- the Portland and Kimmeridge extended well test ("EWT") programme has now produced an aggregate volume in excess of 45,500 bbl to date.

Glossary

 
 degAPI                 A measure of the density of crude oil, 
                         as defined by the American Petroleum Institute. 
 Draw-down              Pressure draw-down ( P) is defined as the 
                         difference between the reservoir pressure 
                         and the flowing bottom hole pressure. Drawdown 
                         enables fluids to flow from the reservoir 
                         into the wellbore. The magnitude of the 
                         drawdown is a major controlling factors 
                         of a well's production rate. 
                       ------------------------------------------------- 
 Extended well test     A well test, as per the permission granted 
  (EWT) or production    by the Oil and Gas Authority, with an aggregate 
  test                   flow period duration over all zones of 
                         greater than 96 hours and generally up 
                         to 90 days maximum flowing time per productive 
                         horizon. The objective being to establish 
                         whether a discovery is commercially viable 
                         and the best methods of future production 
                         and recovery. 
                       ------------------------------------------------- 
 Flow test              A flow test or well test involves testing 
                         a well by flowing hydrocarbons to surface, 
                         typically through a test separator. Key 
                         measured parameters are oil and gas flow 
                         rates, downhole pressure and surface pressure. 
                         The overall objective is to identify the 
                         well's capacity to produce hydrocarbons 
                         at a commercial flow rate. 
                       ------------------------------------------------- 
 Oil field              An accumulation, pool or group of pools 
                         of oil in the subsurface that produces 
                         oil to surface. 
                       ------------------------------------------------- 
 

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

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.

Glossary

 
 degAPI          a measure of the density of crude oil, as defined 
                  by the American Petroleum Institute 
 oil field       an accumulation, pool or group of pools of oil 
                  in the subsurface that produces oil to surface. 
                --------------------------------------------------------- 
 extended well   a well test, as per the permission granted by 
  test            the Oil and Gas Authority, with an aggregate flow 
                  period duration over all zones of greater than 
                  96 hours and up to 90 days maximum 
                --------------------------------------------------------- 
 flow test or    a flow test or well test involves testing a well 
  well test       by flowing hydrocarbons to surface, typically 
                  through a test separator. Key measured parameters 
                  are oil and gas flow rates, downhole pressure 
                  and surface pressure. The overall objective is 
                  to identify the well's capacity to produce hydrocarbons 
                  at a commercial flow rate. 
                --------------------------------------------------------- 
 

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 / Harriet Jackson / Henry Wilkinson            [phone] 

[e-mail]

Alba's Project & Investment Portfolio

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.

Clogau (Gold, Wales): Alba owns a 90 per cent interest in Gold Mines of Wales Limited ("GMOW"), the ultimate owner of the Clogau Gold project situated in the Dolgellau Gold Belt in Wales.

Inglefield Land (Copper, Cobalt, Gold): Alba owns 100 per cent of mineral exploration licence ("MEL") 2017/40 and 2018/25 in north-west Greenland.

Limerick (Base Metals, Ireland): Alba owns 100 per cent of the Limerick base metal project in the Republic of Ireland.

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

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

Oil & Gas

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.

Horse Hill (Oil & Gas, UK): Alba holds an 11.765 per cent effective interest in the Horse Hill oil and gas project (licences PEDL 137 and PEDL 246 covering a total area of 142.9 km(2)) in the UK Weald Basin.

Web: www.albamineralresources.com

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May 17, 2019 02:00 ET (06:00 GMT)