BritNRG - 100 Days Delivery and Workover Success

RNS Number : 4976A

MetalNRG PLC

02 June 2021

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

2^nd June 2021

MetalNRG plc
(The "Company" or "MetalNRG")

BritNRG 100 Days Delivery and Workover Success

MetalNRG plc (LON:MNRG), the natural resources and energy investment company, provides an update on its investment in BritNRG Limited ("BritNRG").

Following completion of the acquisition of the Oil and Gas assets in Lincolnshire, completed in January 2021, BritNRG had set a number of operational priorities, feeding into a 100-day operational plan. The plan included engagement with key stakeholders, in respect to priority business objectives, risk and compliance management of the assets and a workover of one of the blocked-in wells.

BritNRG now provides a summary of the relevant achievements, including the completion of the workover on Whisby No. 6 well ("W6"), executed within Q2-2021 as per plan.

Key achievements include:

§ Delivery to the UK Oil & Gas Authority ("OGA") of the updated Field Development Plan (FDP) for the Whisby field (PL-199):

o  The FDP includes an additional producer, the Whisby #7 well, obtained by side-track drilling of a suspended producer within the licence.

§ Completion and third-party verification of the Business Management Systems, audited and certified by QMS International as follows:

o  Quality Management System certified against ISO 9001;

o  Environmental Management System certified against ISO 14001;

o  Occupational Health and Safety Management System certified against ISO 45001;

§ Debt reconciliation plans agreed with key creditors.

§ Community Engagement Plan ready for implementation.

§ Key appointments within management team, including the group 'Risk and Compliance Director' and the 'Whisby/Newton Asset Manager';

§ W6 well returned to production.

Whisby-6 Well Workover

The W6 well was successfully brought back into production on the 25 ^th   May without any safety or environmental incidents. The W6 well was successfully brought back into production on the 25^th May without any safety or environmental incidents. The current W6 production is circa 50 barrels a day (initial apportion depending on BritNRG recovering of certain costs, thereafter 15% of production to BritNRG plus recovery of 85% of relevant OPEX/overheads) and, with a total workover costs of circa £180,000 (shared by the W6 partners), which includes new well completions, it is expected to payback in less than three months.

The W6 well was drilled and completed Q2 2016 by our partners, Terrain Energy, and is operated by the Whisby (PL199) asset operating subsidiary, Blackland Park Exploration Limited. The well was suspended in 2018 following a wax blockage. The workover scope, which included cleaning, recompleting (new well completions) and retesting the well, involved a number of parties, mainly Zenith Energy Limited as temporary duty holders for the W6 wellsite and PW Well Services who provided the workover rig, the operational personnel, the blowout preventer ("BOP") and the relevant equipment.

About BritNRG

BritNRG and its subsidiaries' interests in the following UK onshore licences: PL199 (95%, Operator); PL215 (50%); EXL141 (100%, Operator); EXL294 (100%, Operator); PEDL090 (50%, Operator); and PEDL209 (28%). The portfolio includes three producing licences and three exploration permits in Lincolnshire.

The currently producing assets are within the Whisby Field [PL199]; production comes from Whisby #4 well at c. 50bbls/day and Whisby #6 well at c.50 bbls/day, (restarted on 25^th May 2021 after the workover for wax cleaning and recompletion). A field development plan was submitted to the OGA for Whisby's redevelopment on 1^st May 2021. Other assets are the Reepham Field, with one well (currently shut-in) and the Newton on Trent Field, with one well (currently shut-in), for which we are in process of completing the reserve appraisal process with a view to near-term redevelopment plan to be submitted.

Pierpaolo Rocco, Executive Director, Oil & Gas of MetalNRG commented:

"Overall, we can be satisfied with the progress over the first 100 days following completion of the acquisition mid-January. The execution of the workover without incidents and the restart of Whisby 6 well was an early priority to improve the financial stability of the business and to demonstrate our commitment to our engagements and, most importantly, to safe and compliant operations. There were issues to solve and significant risks to manage, and I would like to thank the wide team for their professionalism and commitment to deliver such essential milestones. There is much left to do but we are very well placed, and I see considerable opportunities ahead of us."

Rolf Gerritsen, CEO of MetalNRG commented:

"These developments are in line with our plans aimed to baselining the group financial position and providing consistent cashflow, so as to place the company in a good position to achieve our growth objectives. We look forward to further progress."

The person who arranged for the release of this information is Rolf Gerritsen, the Company's Chief Executive Officer.

For further information, please contact:

METALNRG PLC - Rolf Gerritsen (Chief Executive Officer)	[phone]
Joint Brokers:
PETERHOUSE CAPITAL LIMITED Guy Miller / Duncan Vasey / Lucy Williams	[phone]
SI CAPITAL LIMITED Nick Emerson	[phone]

 

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