# Alba Mineral Resources plc Confirm Intention to Produce from Kimmeridge Formation

- Link: https://www.directorstalkinterviews.com/alba-mineral-resources-plc-confirm-intention-produce-kimmeridge-formation/412724865
- Published: 2017-03-03T07:11:56+00:00
- Author: Giles Arbor

**Alba Mineral Resources plc** (LON:ALBA) have today announced that it has been 
advised by the Operator, Angus Energy plc (LON:ANGS) that, following extensive analysis
of the BR-X4Z sidetrack well, the Operator’s intention is to bring the Kimmeridge
into production at the existing Brockham production facility as soon as the necessary
OGA approval is in place.

The Brockham X4Z well, drilled to a total depth of 1,391m, was planned to evaluate
the Portland, Corallian and Kimmeridge formations at Brockham, including an evaluation
of the Kimmeridge reservoir that had been demonstrated by the Horse Hill discovery
8 km to the South. Horse Hill Developments Limited (“HHDL”), the operator of the
well at Horse Hill, in which project Alba has a 9.75% economic interest, has announced
cumulative production rates of over 1,500 barrels per day in short term testing.

The Brockham X4Z well was intended to establish whether the evidence of a potential
reservoir reported at Horse Hill extended further north into the Brockham licence.
The well was therefore intended to answer three main questions: Is the reservoir
section in Brockham similar in thickness and reservoir properties to what had been
reported at Horse Hill? Is there evidence of naturally occurring fractures to enable
production of oil using conventional means? Is the content of oil in the Kimmeridge
similar to Horse Hill where oil was tested at substantial rates?

The company is therefore pleased to report that Angus has confirmed as follows:

· The preliminary results from the Brockham X4Z well confirm very similar thickness
of reservoir and properties to those reported at Horse Hill. The gross thickness
of the Kimmeridge formation in Brockham X4Z is some 385m.

· The two limestone intervals (each around 30m) tested in Horse Hill are also seen
in the Brockham well.

· The reservoir properties appear to be very similar to Horse Hill, based on electrical
logging evidence.

· The first use in Europe of the Weatherford Ultra Wave Acoustic borehole imaging
tool has made it possible to see fractures in the borehole directly, without the
need to infer fractures from logs. The information thereby obtained has confirmed
not only evidence of natural fractures in the two main limestones intervals previously
tested at Horse Hill, but also confirmed abundant natural fractures in sections 
of interbedded shales and limestones between and below the two main limestones. 
Around 200m of the reservoir has this potential.

· Angus took many samples during the drilling to use for geochemical analysis. The
initial results of this work show total organic content through the Kimmeridge section
between 2-12%, exceeding Horse Hill in places. Furthermore, evidence shows that 
the highest organic content corresponds to the limestones and, in particular, the
intervals in between the limestones which have natural fracturing. Whilst organic
content is not the same as oil content, it is indicative of those sections where
oil content will be highest. This supports the potential for some 200m of reservoir
of interest. Actual oil content depends on the extent to which burial has resulted
in pressures and temperatures sufficient to generate oil. Initial Tmax and Hydrogen
Index readings correspond with Horse Hill data. Since oil was produced briefly at
Horse Hill and as it is most likely that the oil in the Portland Sandstone in Brockham
is sourced from the Kimmeridge, the evidence backs a similar oil content to Horse
Hill.

· Therefore, based on the evidence so far, Angus has confidence that the well will
be similar to Horse Hill and, perhaps, given that the reservoir is potentially much
thicker in zones not previously tested, the results could be even better. These 
results achieve everything short of production to prove the potential from this 
zone.

· Operations are in hand to install new production facilities for the well and to
prepare for production as soon as necessary OGA approval is in place. Production
is targeted for spring/summer 2017. The Operator will shortly be meeting Surrey 
County Council to discuss the position in relation to the sidetrack and also to 
agree what further planning permissions are necessary in order to regularise the
existing site cabins, fencing and associated structures.

· Additional oil shows were observed in the Portland and Corallian formations. Currently,
the Brockham number 2 well is a temporarily suspended producing well from the Portland
reservoir and the Operator is confident of additional production from the Portland
from Brockham X4Z in due course. The Corallian formation, with good indications 
of both gas and oil, is still being evaluated.

· Further technical analysis of the results is contained in a presentation prepared
by Angus, a copy of which is available on the Angus website (www.angusenergy.co.
uk).

> **Michael Nott, Alba Mineral Resources plc CEO, commented:** “These results are
> very positive for the Weald Basin as a whole, and very positive also for Alba 
> given our interests at both Horse Hill and Brockham. We look forward to the work
> that will be undertaken by the consortium over the coming months and the benefits
> that will arise for all shareholders and stakeholders.”

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