Nutech Report on Horse Hill

RNS Number : 4987Q

Solo Oil Plc

18 June 2015

 

For Immediate Release, 7 am                                                                         18 June 2015

Solo Oil plc

('Solo' or 'the Company')

Independent Assessment of the Oil in Place of the Horse Hill Licences

Further to the report provided to UK Oil & Gas Investments PLC ("UKOG") and Solo by Nutech in relation to the Horse Hill-1 ("HH-1") well in the Weald basin, previously announced in April 2015, Solo has been advised that Nutech has now provided UKOG with an additional independent report of the estimated oil in place ("OIP") contained within the 55 square mile area covered by the Horse Hill licences (PEDL 137 and PEDL 246) ("Horse Hill") near Gatwick Airport, south of London, where Solo holds a 6.5% net attributable interest.

The new study calculates that the total Jurassic mudstone and tight limestone section of the Horse Hill licences contain a best estimate oil in place ("OIP") of 9,245 million barrels ("mmbbls"). The most significant OIP within the Jurassic section is contained within the mudstones and tight limestone sequences of the Kimmeridge Formation, with a calculated best estimate total Kimmeridge OIP of 5,230 mmbbls. 

This evaluation does not include the OIP for the Portland Sandstones, which has already been evaluated independently by Xodus Group and announced on 11 May 2015. The calculated OIP figures estimated by Nutech should not be construed as contingent resources or reserves.

Neil Ritson, Solo's Chairman, commented;

"Nutech have further advanced the understanding of the unconventional and tight limestone plays that were discovered in the Horse Hill-1 well in 2014 by extending their analysis into a small semi-regional evaluation covering the Horse Hill licences using their proprietary methodology.  We look forward to further advances in the understanding of this potentially very valuable play as study work continues.  We also look forward to the planned flow test of the conventional Portland Sandstone discovery made at HH-1 which is expected later in the year."

Solo's interest in Horse Hill:

Solo owns a 10 percent interest in Horse Hill Developments Ltd ("HHDL"), a special purpose company which owns a 65% participating interest and operatorship of onshore licences PEDL137 and the adjacent licence PEDL 246 in the UK Weald Basin.  HHDL with a 65% working interest in PEDL137 and Magellan Petroleum Corporation with a 35% interest.  Solo consequently has a net 6.5% interest in PEDL137 and PEDL246.

About Nutech:

Nutech (www.nutechenergy.com) is a global oil services company specialising in reservoir evaluation and optimisation at all stages of the exploration and production life-cycle. 

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director for Solo Oil Plc who has over 35 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc Neil Ritson Fergus Jenkins	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Bell Pottinger                            Public Relations Henry Lerwill Cassiopeia Services Investor Relations Stefania Barbaglio	[phone] [phone] [phone]

Glossary:

contingent resources	those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies
limestone	a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone.
mmbbs	million barrels of oil
mudstone	an extremely fine-grained sedimentary rock consisting of a mixture of predominantly clay plus silt-sized particles.
oil in place or OIP	the quantity of oil or petroleum that is estimated to exist originally in naturally occurring accumulations before any extraction or production
play	a set of known or postulated oil and or gas accumulations sharing similar geologic, geographic, and temporal properties, such as source rock, migration pathways, timing, trapping mechanism, and hydrocarbon type
reserves	those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions
reservoir	a subsurface rock formation containing an individual natural accumulation of moveable petroleum
unconventional reservoir	although there is no universally accepted definition unconventional reservoirs are widely accepted to mean those hydrocarbon reservoirs that are tight; that is have low permeability

 

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