TIDMPRIM
RNS Number : 0568V
Primorus Investments PLC
18 July 2018
Primorus Investments plc
("Primorus" or the "Company")
Portland Extended Flow Test ("EWT"): Well Clean-Up Phase
Complete, Dry Oil Flows to Surface,
Horse Hill-1 Oil Discovery, PEDL137, Weald Basin, UK
Highlights:
-- Initial Portland well "clean-up" phase completed successfully
-- Light sweet crude oil (36 API) and associated solution gas
flowed sustainably via pump and natural flow to surface over a
4-day period to date. Oil contains no metered water content (i.e.
"dry oil")
-- Metered daily oil rates to date equal to or exceed 2016
values. Highest observed hourly rate equivalent to an implied daily
rate of 352 barrels of oil per day ("bopd"). Corresponding metered
solution gas volumes are up to an implied rate of 30,000 cu ft per
day.
-- Flow has not yet been optimised for maximum sustainable flow rates
-- First tanker containing 214 barrels of dry oil exported to BP's Hamble oil terminal
-- Initial analysis indicates well productivity unaffected by 2 year shut-in period since 2016
-- Following a planned 24-hour shut in (i.e. pressure build-up
test) the first of three planned Portland test sequences will
commence
Primorus (London AIM: PRIM) is pleased to announce that it has
been informed by its investee company, Horse Hill Developments Ltd
("HHDL"), the operator of the Horse Hill-1 ("HH-1") Kimmeridge and
Portland oil discovery that the initial well "clean-up" phase of
the Portland extended well test ("EWT") programme has been
completed according to plan. Over the past four days, the well has
delivered a sustained dry oil and solution gas flow to surface via
pump and natural flow.
The Company holds a 3.25% beneficial interest in licence PEDL137
containing the HH-1 oil discovery.
Observed metered Portland flow rates to date are broadly
equivalent to, or exceed, those recorded during the short duration
2016 test. The highest recorded hourly metered rate to date,
equates to an implied daily rate of 352 bopd and was achieved using
a 20/64" choke, a notably more restricted setting than the 64/64"
choke used in 2016. Corresponding solution gas flows have been
measured up to an implied rate of 30,000 cubic feet per day. Note
that, to date, flow has not yet been optimised for maximum
sustainable production rates, this will follow in the subsequent
test sequences.
Several periods of sustained natural flow (i.e. flow to surface
without pumping) have also been observed over the past few days,
with the most productive period producing an implied daily dry oil
rate of 228 bopd over a two-hour period.
Initial reservoir parameter analysis indicates that the Portland
is performing very well compared to the productivity measured in
2016 prior to temporarily shutting in and suspending the well.
To date a total of 463 barrels of light sweet 36 API crude have
been recovered to surface during the clean-up period, together with
all 141 barrels of completion and kill fluids (i.e. saline water)
used to suspend the well after the 2016 well test.
Forward EWT Plans
The well will now be shut in for a planned 24-hour pressure
build-up test. Operations will then include further flow parameter
optimisation, followed by the first of three planned flow sequences
designed to assess whether the Portland oil pool contains a
commercially viable volume of oil. The first test sequence will
likely include an optimised maximum rate test, prior to choking
back the well to provide the steady state flow conditions necessary
to determine the Portland oil pool's connected oil volume. Note
that in order to collect the required data during these steady
state flow periods, rates will likely be below any future optimised
production rates.
Testing of each of the Kimmeridge Limestone 4 ("KL4") and KL3
oil pools will follow completion of the Portland test sequence.
Alastair Clayton, Executive Director of Primorus, commented:
"with the clean-up phase now complete, the operator can now get on
with the business of determining the actual flow parameters. We
are, at this very early stage, also pleased to note the strong oil
and gas flows to surface at the well in advance of the shut-in and
commencement of the flow testing programme itself."
Extended Well Test ("EWT") Overview
As the 2016 short flow test campaign established commercially
viable initial flow rates for each of the Portland, KL4 and KL3
zones, the 2018 EWT's prime goal is to confirm that the wellbore is
connected to a commercially viable oil volume within one or more of
the three zones.
The long-term reservoir performance data is also expected to
provide the necessary data to enable, for the first time, Petroleum
Resources Management System compliant Kimmeridge and Portland
reserve figures to be estimated at Horse Hill.
Each test sequence will include a short, optimised rate test,
together with a sequence of "choked back" (i.e. reduced)
steady-state flow periods necessary to obtain the data required to
determine the connected oil volume within each zone. A series of
associated long pressure build up tests are also planned. Oil
produced from the EWT will be sold on the "spot" oil market and any
revenues will be utilised to offset overall testing costs.
Qualified Person's Statement
Stephen Sanderson, Executive Chairman and Chief Executive of UK
Oil & Gas Investments plc, who has over 35 years of relevant
experience in the oil industry, has approved the information
contained in this announcement. Mr Sanderson is a Fellow of the
Geological Society of London and is an active member of the
American Association of Petroleum Geologists.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
The directors of Primorus accept responsibility for this
announcement.
For further information, please contact:
+44 (0) 20 7440
Primorus Investments plc: 0640
Alastair Clayton
+44 (0) 20 7213
Nominated Adviser: 0880
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
+44 (0) 20 3621
Broker: 4120
Turner Pope Investments Limited
Andy Thacker
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END
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