London, October 16
17 October 2016
(“Doriemus” or the “Company”)
Horse Hill-1 Oil Discovery, Weald Basin, UK
Planning Application for Significant Appraisal and Drilling Programme, UK Weald Basin
Doriemus PLC (ISDX:DOR), the London traded UK focused oil and gas exploration and production investment company, is pleased to announce that Horse Hill Developments Ltd (“HHDL”) has informed the Company that a planning application has now been submitted to the Surrey County Council seeking permission to conduct further significant appraisal testing and drilling at the Company’s Horse Hill-1 (“HH-1”) oil discovery, located in Licence PEDL137, close to Gatwick Airport. The HH-1 oil discovery achieved an aggregate stabilised flow rate of 1,688 barrels of oil per day from two Kimmeridge limestones plus the overlying Portland sandstone when tested earlier this year.
David Lenigas, Doriemus’s Executive Chairman, commented:
“Doriemus is excited that the Horse Hill oil play at Gatwick Airport is finally, subject to planning approval, moving further along the path to appraisal and development, with this important submission of the necessary planning applications to the Surrey County Council. The planned long term flow testing and the drilling of 2 new wells, including one low cost sidetrack well, should significantly enhance Horse Hill’s value to shareholders and stakeholders’ and assist Doriemus towards near term oil production and oil revenues from this important onshore UK oil discovery. It is also an important step in furthering our knowledge of the Kimmeridge limestone plays beneath our acreage in the Weald, especially our interests in the Brockham and Lidsey production fields.”
Subject to the required regulatory approvals, the first phase of the proposed development is planned to consist of the extended production testing of four zones, designed to confirm the commerciality of the discovery, and to examine a previously untested Kimmeridge limestone.
The planning application also seeks permission for a two-well drilling phase, which contingent upon successful testing, will further appraise the extent of the oil accumulations and the field’s production capabilities. The proposed drilling phase includes plans for a deviated sidetrack, HH-1z, to be drilled from the existing HH-1 borehole, together with a new well, Horse Hill-2 (“HH-2”). On completion of drilling, both the HH-1z and HH-2 are planned to be long-term production tested.
In order to minimise the impact to the locality, feedback from both a public consultation and engagement process, undertaken in July, and subsequent meetings with local residents’ representatives, was incorporated into the envisaged development design and planning application. The normal local planning authority cycle for an application not requiring an Environmental Impact Assessment such as at Horse Hill, takes approximately 13 weeks.
HHDL and the Company’s Interest in the Licence
HHDL is a special purpose vehicle, which owns a 65% working interest and operatorship of the Licence. UKOG now owns a 10% beneficial shareholding in HHDL.
The directors of the Company accept responsibility for the contents of this announcement.
For further additional information, please contact:
|Doriemus plc |
David Lenigas / Donald Strang
|+44 (0) 20 7440 0640|
|Peterhouse Corporate Finance Limited |
Guy Miller / Fungai Ndoro
|+44 (0) 20 7469 0930|
|Optiva Securities Limited |
Christian Dennis / Jeremy King
|+44 (0) 20 3137 1902|
|Square1 Consulting |
|+44 (0) 20 7929 5599|
|discovery||a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons|
|extended production test||a flow test, or extended well test as per the permission granted by the Oil and Gas Authority, with an aggregate flow period duration over all zones of greater than 96 hours and up to 90 days maximum|
|sidetrack||re-entry of a well from the well's surface location with drilling equipment for the purpose of deviating from the existing well bore to achieve production or well data from an alternative zone or bottom hole location, or to remedy an engineering problem encountered in the existing well bore.|