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DORIEMUS PLC - Update on UK onshore oil investments

May 16, 2014



16 May 2014Doriemus Plc ("Doriemus" or the "Company") Update on UK onshore oil investments Doriemus (AIM: DOR) today announces that Angus Energy Limited ("Angus Energy") as operator of the Horse Hill Prospect in the Weald Basin near Gatwick Airport is on schedule for a potential spud date in July 2014. In addition, Angus Energy, as major shareholder and operator, has provided the following update on its onshore producing Brockham and Lidsey Oil Fields in the Weald Basin south of London. Donald Strang, the Company's Chairman, commented: "There have been some unscheduled delays with stage 2 improvement programmes at the two producing fields, but we are optimistic that the next few months should be very active on the ground. The news that Horse Hill is planned to spud in July is exciting for the Company, as this well will be testing known oil targets and exploring the concept of a gas in the deeper Triassic." Horse Hill Prospect: (10% 0wned by DOR and operated by Angus Energy) Angus Energy, the major shareholder of Horse Hill Development Ltd ("HHDL") and the operator of the Horse Hill Petroleum Exploration and Development Licence No. 137 (PEDL 137) located in Surrey, United Kingdom' has provided the Company with the following update on the proposed Horse Hill-1 well planned for completion by the end of August 2014. * All tenders are now out for the site construction and long lead items for the well. * The contracts for the drill rig and key service providers are in the final stages of negotiation. * Permitting is currently on track for a spud date in July 2014. * The depth of Horse Hill-1 well has been set to 8,512 feet to test conventional stacked oil and gas targets. DOR has a direct 10.0% interest in Horse Hill Development Ltd ("HHDL"), a special purpose company that owns a 65% participating interest and operatorship of the Horse Hill licence PEDL 137. As previously announced on 13 January 2014, the Horse Hill-1 well is designed to test a number of conventional stacked oil and gas targets which the board believes could contain up to an estimated 671 million stock barrels ("MMSTB") oil in place with an estimated total mean recoverable prospective resources of 87 MMSTB and additional prospectivity of 456 Bcf gas in place (Mean 164+ Bcf recoverable prospective resource) in the proposed Triassic gas play. Brockham Oil Field (10% owned by DOR and operated by Angus Energy): The Brockham Oil Field ("Brockham"), in the Weald Basin, is held under United Kingdom Production Licence PL 235. Oil production was recently increased from 42 bopd to 84 bopd after a successful work-over programme in January 2014 and production has only slightly tapered off to its current levels of about 66 bopd. Brockham's 28 API oil is regularly trucked and sold to the Perenco Refinery. The planned 450 metre side-track well at Brockham, designed to increase overall production from the Field, as previously announced on 25 April 2014, has been temporarily delayed by up to 13 weeks due to the UK Environmental Agency having recently requested that the operator Angus Energy must apply for a new mining waste permit. The Operator is currently attending to obtaining this additional permit. An appropriate drill rig is on standby to undertake this side-track well, and it is planned to mobilise the rig to site once the new mining waste permit has been issued. In preparation for the expected increase in oil production, post the side-track, Angus Energy has now completed the refurbishment of the 1,200-barrel storage tank facilities. In March 2014, the Company announced that RPS Energy Consultants Limited ("RPS") had independently assessed that, as at 31 December 2013, the Brockham Field contains 3.62 million barrels (gross) Oil in-place (P50 best case). Lidsey Oil Field (20% owned by DOR and operated by Angus Energy): The Lidsey Oil Field ("Lidsey"), in the Weald Basin, is held under United Kingdom Production Licence PL 241. Oil production was 25 bopd, prior to a re-completion programme completed in November and December 2013, which resulted in a temporary boost in oil production. Production has steadily declined to 36 bopd and Angus Energy has now formally advised the partners in Lidsey that a new re-completion is being planned in order to again increase production. Applications are now being prepared for the UK Health and Safety Executive to re-perforate virgin oil zones in the Lidsey-1 well and this work will take place once final approvals have been granted. Lidsey has a fully permitted and operational 2,000-barrel storage facility and its 38 API oil is regularly trucked and sold to the Perenco Oil Refinery. In March 2014, DOR announced that RPS had independently assessed that, as at 31 December 2013, the Lidsey Field contained 9.52 million barrels (gross) of P50 best case Oil In-Place. In addition, Angus Energy had previously advised that the drilling of the new Lidsey-2 well was to be drilled during April and May 2014. The drilling of this new Lidsey-2 well has now been postponed until after the Lidsey-1 well re-completion has been completed. -END- For further information, please contact: Doriemus plc +44 (0) 20 7440 0640 Donald Strang / Hamish Harris Sanlam Securities UK Limited +44 (0) 20 7628 2200 Nominated Adviser and Broker Simon Clements / Virginia Bull




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Source: PR Newswire (UK Disclosure)


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