Pennpetro Energy PLC Horse Hill Farmin Update (2564W)
December 11 2023 - 2:00AM
UK Regulatory
TIDMPPP
RNS Number : 2564W
Pennpetro Energy PLC
11 December 2023
Pennpetro Energy PLC
("PPP" or "Pennpetro")
Horse Hill Farmin Update
London, 11 December 2023 - Pennpetro Energy PLC (LSE: PPP)
announces that it has agreed to extend the binding Horse Hill
farm-in term sheet ("Agreement") with UKOG (137/246) Ltd and Horse
Hill Developments Ltd ("HHDL"), both subsidiaries of UK Oil &
Gas plc (collectively "UKOG") until 30 June 2024.
The Horse Hill Oil Field ("Horse Hill"), located about 2 km
north of Gatwick airport.
The Agreement, as originally announced on 28 March 2023, enables
PPP to farm-in to the Horse Hill Oil Field on an incremental
production only basis via funding 100% of the acquisition of a
twelve square km 3D seismic survey and the drilling of the next
crestal infill production well, designated as HH-3.
The Agreement's binding farm-in terms, which are subject to
certain conditions as outlined below, cover the drilling of a new
crestal infill well, designated Horse Hill-3 ("HH-3"), to be
spudded after the completion of a Pennpetro funded high-definition
3D seismic survey. On completion of HH-3, Pennpetro will receive a
49% share of all production derived from Horse Hill-3 and future
wells plus a 49% interest in the Licences. UKOG's subsidiaries will
retain their current interests in all oil production from Horse
Hill-1 ("HH-1") and HHDL will remain as the named Licence
operator.
Tom Evans, PPP's Chief Executive commented: "I'm very pleased to
announce that our agreement with UKOG on the potential Horse Hill
seismic and drilling farmin has been extended to 30 June 2024.
Horse Hill is an exciting project and it could prove to be a very
exciting venture for Pennpetro."
About Horse Hill Oil Field
As previous reported in the Pennpetro Energy RNS dated 28 March,
2023;
"Following its discovery in 2014, Horse Hill was successfully
production tested in the Upper Portland sandstone and underlying
Kimmeridge limestone section from 2016 through to the start of
long-term continuous Portland production in 2020. UKOG advise that,
as of mid-March 2023, continuing oil production from HH-1 totalled
an aggregate of over 185,000 barrels of 35 - 41 API sweet crude.
Full planning and environmental consents are in place for four
additional infill production wells.
A 2018 Xodus CPR for UKOG estimated a gross mid case P50
Portland oil in place ("OIP") of 30 million barrels, with a
corresponding mid-case 2C recoverable Contingent Resource of 1.5
million barrels. The estimated mid case 5% recovery factor being
stated as in accord with other analogous fields in the Weald Basin.
It should be noted that the recovery factor being stated as in
accord with other analogous fields in the Weald Basin. It should be
noted that the total HH-1 Portland production to date potentially
leaves around 1.36 million barrels of the estimated mid-case
recoverable Portland resource available to infill drilling and
remaining HH-1 production.
In addition to the 132,000 barrels of 35-36 API Portland
continuous production as at mid-March 2023, approximately 53,000
barrels of 41 API sweet crude was produced from multiple zones
within the Kimmeridge limestones during production testing, before
being shut in to allow for longer term Portland production. In 2015
a Schlumberger report calculated an estimated mean OIP of 8.262
billion barrels lying within the entire Kimmeridge section
underlying the Licences.
Note: OIP should not be construed as either recoverable
Contingent resources or Reserves. The Kimmeridge therefore remains
a potentially viable secondary production target at Horse
Hill."
-ENDS-
This announcement contains inside information within the meaning
of Article 7(1) of (i) Regulation (EU) No 596/2014 of the European
Parliament and of the Council of 16 April 2014, as amended (the "EU
Market Abuse Regulation") and (ii) the EU Market Abuse Regulation
as it forms part of United Kingdom domestic law by virtue of the
European Union (Withdrawal) Act 2018.
For further information visit www.pennpetroenergy.co.uk or
follow us on twitter @pennpetro or contact:
Pennpetro Energy PLC:
Tom Evans, CEO tme@pennpetroenergy.com
David Lenigas, Chairman +44 (0) 7881825378
lenigas@monaco-capital.com
Brokers:
Zeus Capital
Simon Johnson +44 (0) 207 614 5900
Peterhouse Capital Limited
Lucy Williams +44 (0) 20 7469 0930
Duncan Vasey +44 (0) 20 7220 9797
Flagstaff Strategic and Investor +44(0) 207 129 1474
Communications pennpetro@flagstaffcomms.com
Tim Thompson
Alison Allfrey
Anna Probert
NOTES TO EDITORS:
Pennpetro Energy is an independent oil and gas company focusing
on production in the Gonzales Oil Field in Texas, USA. Shares in
the company were admitted to the Official List of the London Stock
Exchange by way of a Standard Listing on 21 December 2017 with the
ticker symbol " PPP " .
Its wholly owned subsidiary, Nobel Petroleum USA Inc. has a 100%
Working Interest in 2,036.38 acres in Gonzales County in Texas.
These acres include the Whistling Straits #5 well and the Chalk
Talk #1H and #4H wells. Noble also has a Participation, Development
and Option Agreement and Joint Operating Agreement with Texas based
Millennium PetroCapital Corporation over a 250,000-acre Area of
Mutual Interest in Gonzales County, Texas, aimed at exploiting the
prolific proven Austin Chalk oil and gas play. Pennpetro Energy has
also recently signed a conditional binding agreement to conduct a
new 3D seismic survey on the Horse Hill Oil Field near London's
Gatwick Airport which paves the way to drilling the next production
well (HH-3) for 49% of the revenue of this proposed well.
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END
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