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Alba reports Horse Hill STOIIP upgrade

By BFN News | 07:53 AM | Monday 11 May, 2015


Alba Mineral Resources reports an upgrade to the conventional stock tank oil initially in place (STOIIP) volumes estimated for the overall Upper Portland Sandstone conventional reservoir in the Horse Hill-1 and Collendean Farm-1 structure, in the PEDL137 licence area in the Weald Basin. This revised STOIIP is separate to the oil-in-place volumes estimated for the argillaceous limestones and mudstones of the Kimmeridge, Oxford and Lias rock sections of the HH-1 well, as reported on 9 April and 15 April. The company has a net attributable interest of 6.5% in PEDL137. An independent study of the Portland Sandstone reservoir was conducted by Xodus Group, an international energy consultancy based in the UK for the Horse Hill Developments Ltd (HHDL) main consortium partners UK Oil and Gas Investments PLC (UKOG). The study is based on new petrophysical evaluations of both the HH-1 discovery and the older Collendean Farm-1 ("CF-1") well plus an updated interpretation of 2D seismic data across the Licence. The study report is available on UKOG's website (see www.ukogplc.com). The HH-1 and CF-1 discoveries lie within an approximately 100-foot thick, Upper Portland Sandstone gross reservoir interval, within a 6km by 3km tilted fault block structure as defined by 2D seismic. The crest of the Upper Portland conventional oil discovery lies at approximately 1,760ft TVDSS, and extends over a mapped maximum areal closure of approximately 2,000 acres. The Upper Portland reservoir is productive at the nearby Brockham field, some 9km NNW, in which UKOG has an indirect interest of 3.6%. Xodus calculates that the Upper Portland Sandstone conventional reservoir contains a 'best estimate' (P50) gross STOIIP of 21.0 MMbbl, which is slightly more than UKOG's own revised latest estimate of 20MMbbl, and which is entirely within PEDL137 and encompasses both the HH-1 and CF-1 wells. This is an increase of 12.8 MMbbl over the 8.2 MMbbl (P50) gross STOIIP reported on 17 December 2014, which results largely from the new petrophysical evaluation of HH-1 electric logs, calibrated to new XRD and MICP data, and a new interpretation of the CF-1 electric logs, calibrated to core data. Alba chief executive Michael Nott said: "The Xodus report supports the Company's view that the Horse Hill and Collendean Farm oil pool constitutes a significant conventional Upper Portland Sandstone oil discovery in the Weald basin. "Subject to approval by the relevant authorities, the Consortium intends to flow test this conventional sandstone zone as part of a wider test programme of the HH-1 well later in 2015. A successful test would be followed by a full technical resource assessment, and the identification of potentially recoverable resource volumes. "Subject to these results, the Company is informed that the operator, Horse Hill Developments Ltd, intends to engage with the Oil and Gas Authority ("OGA") and other regulators, and seek to move the PEDL137 licence into the Production Period as soon as practicable, via submission of a Field Development Plan to the OGA. The PEDL137 licence is currently in the exploration phase and expires on 30 September 2015. HHDL has applied for a one-year extension of the exploration phase to 30 September 2016." Story provided by StockMarketWire.com

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