20 Novemeber 2017
Doriemus Plc
("Doriemus" or the
"Company")
Update on Lidsey
Oil Field
Doriemus plc (Listed in Australia ASX:DOR and listed in London
NEX:DOR) (“Doriemus” or the “Company”), announces an
update from Angus Energy Plc (the “Operator”) on the Lidsey Oil
Field, located at the southern edge of the UK’s onshore Weald
Basin, south of London.
The Operator of the Lidsey Oil Field has advised today, the 20
Novermber, that:
“Angus Energy Plc, a conventional oil and gas production and
development company, is pleased to provide an update to the Company
RNS of 17 November 2017.
Operational Update - Lidsey Oil
Field
-
The Lidsey-X2 well experienced numerous and significant gas
locks at pump causing the original equipment to cease
operation.
-
A smaller 150 bopd pump with a 120-meter tailpipe extension was
installed. This smaller pump did not gas lock or cease functioning
however every six hours the rate declined drastically with bubbly
oil recovered to surface.
-
The flow rate of 40 bopd, per the company RNS of 17 November was
recorded from Lidsey-X2 on Thursday 16 November with the smaller
pump whilst attempting to identify the down hole issues. The
company notes this current rate is an increase by a multiple of 2x
over historical output from the Lidsey field.
-
The Lidsey-X1 well, shut in since January
2016, to be brought back in to production.
Geochemical Analysis Update -
Lidsey-X2
Angus Energy is pleased to provide an update to the Company RNS
of 6 November 2017. The Company has
now received final results from a third-party review of tests
performed on the Kimmeridge Layer and Lias source rock of
Lidsey-X2.
These results were received after Angus Energy fulfilled its
statutory requirements to release the above mentioned RNS of
17 November 2017.
Per the Company RNS of 6 November
2017, Angus Energy carried out detailed geochemical analysis
of all potential hydrocarbon bearing formations encountered in the
Lidsey-X2 well. The Group carried out similar work on its Brockham
assets and compared the results from Lidsey-X2 with Brockham and
data from Horse Hill-1 - the first well in the UK to successfully
test oil from the Kimmeridge.
The Company has received confirmation, the Lidsey-X2 has TOC
(total organic content) values similar to the Brockham, Horse
Hill-1 well and is comparable to the Bakken Shale formation
(US).
The historical temperature reached by the rock is estimated with
the RockEval pyrolysis analyses method. Angus Energy has received
third party confirmation, the values seen at Lidsey are similar to
those seen in Horse Hill and the Bakken Shale formation. In the
Bakken Shale the onset of oil generation is at a Tmax of around
420-425deg F and this is met in both Brockham and Lidsey.
The results received on Friday were unexpected as basin
modelling of the Weald Basin in recent years has suggested that
peripheral areas such as the location of Lidsey would not be
expected to reach these temperatures. These temperatures appear
sufficient to generate oil thus far.
The amount of oil generated cannot be measured directly but is
indicated by the metrics S1 and S2 reflecting the total oil content
and H1 the hydrogen index.
The newly confirmed third party review of the Lidsey data and
the earlier reviewed Brockham data indicate the hydrogen index Tmax
plot for the Kimmeridge at Lidsey and Brockham to be within the
same envelope as Horse Hill-1 and the analogue of the Bakken Shale
formation. Similarly, S1 oil content and oil saturation index
derived from it, for both the Lidsey and Brockham wells also fall
in the same envelope as Horse Hill 1 and the Bakken. The Company
believes this data demonstrates that significant producible oil has
been generated.
The Kimmeridge was encountered at Lidsey-X2 between
782.3m-862.4m MD (with a true vertical thickness of 66.2m).
There are two other major source rocks seen in Lidsey as well as
Brockham - the Oxford (with a true vertical thickness of 105.0m at
Lidsey-X2) and the Lias (located below the Great Oolite reservoir
but drilled with the Lidsey-X1 exploration well). These are deeper
formations indicating greater thermal maturity. Angus Energy has
also received confirmation these formations compare favourably as
far as organic content and oil generation.
Further data is available on the company website,
www.angusenergy.co.uk.
Per the Company RNS of 17 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.
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.
Technical Glossary
Hydrogen Index: Gross trends of hydrogen indices (HIs) can be
used as a maturation indicator. The hydrogen index is calculated
from Rock Eval data using the following formula: ‘HI = S2/TOCx100’
where S2 is the amount of hydrocarbons generated through thermal
cracking of nonvolatile organic matter in mg/g of rock and TOC is
total organic carbon in %.
Tmax: The temperature at which the maximum rate of hydrocarbon
generation occurs in a kerogen sample during pyrolysis
analysis.”
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) +44 (0) 20 7440
0640
Greg Lee (Technical Director)
Australia Contacts:
Julia Beckett (Joint Company
Secretary) +61 (08) 6141 3500
Email: julia.beckett@wolfstargroup.com.au
UK Advisors:
Peterhouse Corporate Finance Limited +44 (0)
20 7469 0930
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.