Horse Hill Update

RNS Number : 4947D

Alba Mineral Resources PLC

19 February 2020

 

Alba Mineral Resources plc

("Alba" or the "Company")

Horse Hill Oil Field Update - Commencement of HH-2Z Intervention

Alba Mineral Resources plc (AIM: ALBA), the diversified mineral exploration and development company, announces that it has received the following update from UK Oil & Gas Plc ("UKOG"), the majority owner of Horse Hill Developments Limited ("HHDL"), the operator of Horse Hill licences PEDL 137 and PEDL 246 in which Alba has an 11.765% interest:

-  Operations to shut off formation water ingress into the Horse Hill-2z ("HH-2z") horizontal production well have commenced.  By means of a Halliburton coiled tubing unit, production logging tools will be run along the entire length of the 2,500 ft horizontal section to identify the source of water ingress, thought to be from a series of open natural fractures at the base or "toe" of the wellbore.

-  Once identified, the source of water ingress will be isolated, either via a rigid setting fluid plug, or by a conventional cementing and selective perforation programme.  A resumption of HH-2z extended well test operations is planned to follow directly after a successful intervention.  Portland oil pool test production from HH-1 will continue during the intervention.

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events.  Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and approved by Feroz Sultan (B.Sc (Hons) Geology, M.Sc, Petroleum and Structural Geology, Karachi and M.Sc Petroleum Geology, Imperial College London), a petroleum geologist with over 45 years' experience in the management, exploration, development and production of oil and gas.

Glossary

coiled tubing (CT)	a very long, narrow (typically 1 to 3.5 inch diameter) continuously welded metal tube, which is supplied spooled on a large reel. It is used for interventions to convey tools and/or fluids to specific downhole locations where deployment via wireline or other conventional means is impossible or impractical i.e. in existing deviated and horizontal wells. It can also be used for drilling purposes in existing wellbores via the installation of a drill bit and bottom hole assembly powered solely by drilling fluid circulation. Its use removes the need for a workover rig as most CT units are self-contained and trailer mounted.
horizontal well	a well that during drilling is steered so as to follow and remain within a particular geological stratum or reservoir unit having a trajectory that runs approximately parallel to the top and or base of the target horizon
oil field	an accumulation, pool or group of pools of oil in the subsurface that produces oil to surface
production logging tools (PLTs)	PLTs measure flowing fluid parameters on a zone-by-zone basis within a producing well.  They provide diagnostic information, pinpoint where fluids such as water, oil and gas are entering a well and gives an indication about the efficiency of the perforations. PLTs normally measure four parameters: flow (via a series of spinners which rotate in the flow), density, temperature and pressure. The flow and density readings are used in traditional quantitative production logging analysis, whilst temperature and pressure data are used in more of a qualitative way to compute in-situ flow properties and locate zones of entry of fluids into a well
well test	or flow test involves testing a well by flowing hydrocarbons to surface, typically through a test separator over a flowing period of up to 96 hours; key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate and volumes. An extended well test or EWT is a well test with duration of over 96 hours and up to 90 or 180 flowing days aimed at assessing longer term production viability and the connected oil in place seen by the well.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

Alba Mineral Resources plc George Frangeskides, Executive Chairman	[phone]
Cairn Financial Advisers LLP (Nomad)  James Caithie / Liam Murray	[phone]
First Equity Limited (Broker) Jason Robertson	[phone]

Alba's Project and Investment Portfolio

Project (commodity)	Location	Ownership
Mining Projects
Amitsoq (graphite)	Greenland	90%
Clogau (gold)	Wales	90%
Inglefield (copper, cobalt, gold)	Greenland	100%
Limerick (zinc-lead)	Ireland	100%
Melville Bay (iron ore)	Greenland	51%
TBS (ilmenite)	Greenland	100%
Oil & Gas Investments
Brockham (oil)	England	5%
Horse Hill (oil)	England	11.765%

 

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