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.

  • Angus Energy has put in place a comprehensive diagnostic program with the help of external experts to immediately make all necessary repairs and adjustments to further conventional oil production at Lidsey and increase yield from Lidsey-X2.

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.

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