Big Picture – A Deep Dive Examination of Doriemus PLC
Doriemus PLC Snapshot
The Company currently owns a 4% interest in a special purpose company, Horse Hill Developments Ltd, which is the operator and 65% interest holder in two Petroleum Exploration and Development Licences (“PEDL”) 137 and 246, in the northern Weald Basin north of Gatwick Airport.
The PEDL137 licence covers 99.29 square kilometres (24,525 acres) in Surrey and contains the Horse Hill-1 (“HH-1”) discovery and several other exploration leads. PEDL246 covers an area of 43.58 square kilometres (10,769 acres) and lies immediately adjacent and to the east of PEDL137.
The HH-1 well is located approximately 7.5 kilometres south east of the producing Brockham oil field and approximately 15 kilometres southwest of the Palmers Wood oil field. The pre-drill primary target reservoir horizons were the Portland Sandstone, which is productive in the Brockham oil field, and the Corallian Formation, which is the producing horizon in the Palmers Wood oil field. Secondary targets for the well included the Triassic, which has previously tested gas in the Weald Basin, and the Oolite Formation.
In May 2015, an independent oil in place (“OIP”) review of the Upper Portland Sandstone discovery by the Xodus Group was released, which saw initial OIP estimates substantially increased to 21.0 million barrels, (“mmbbl”, Best Estimate, P50).
Nutech Inc. (“Nutech”), an industry specialist in tight reservoir analysis, was contracted to conduct further detailed petrophysical evaluation of the electric logs. This work resulted in the announcement in April 2015 of a potentially significant play with estimated gross OIP of over 150 mmbbl per square mile.
The results of the work by Nutech were independently verified in May 2015 by Schlumberger, one of the world’s leading oil and gas service companies, using their proprietary modelling developed in tight reservoirs in the USA and applied extensively in the USA and elsewhere. Schlumberger’s estimate of OIP in the Kimmeridge, Oxford and Lias mudstones and limestones is approximately 255 mmbbl per square mile (gross). If confirmed, this Kimmeridge play opens up large areas of the Weald Basin that may have potential for oil production, not limited to the PEDL137 and PEDL246 licences where Horse Hill is located.
In June 2015, Nutech calculated that the total Jurassic shale plus conventional reservoir sections contained in the 55 square miles of PEDL137 and PEDL246 is a Best Estimate, or P50, OIP of 9,245 mmbbl. The most significant oil in place within the Jurassic section is contained within the shales and conventional limestone reservoir sequences of the Kimmeridge, with a calculated Best Estimate, or P50, total Kimmeridge OIP of 5,230 mmbbl.
Again, in August 2015, Schlumberger independently verified Nutech’s Horse Hill OIP estimates contained in PEDL137 and PEDL246. Schlumberger estimated a Mean OIP of 10,993 mmbbl, with Kimmeridge OIP of 8,262 mmbbl. Schlumberger’s Mean OIP estimates are therefore 19% higher in total than Nutech’s P50 OIP estimate over the two Horse Hill licences and 58% higher in the Kimmeridge.
In November 2015 and December 2015, respectively, the Environment Agency and the Oil and Gas Authority granted permits for the flow testing of the Horse Hill-1 discovery well.
Flow testing operations commenced in February 2016 and were completed in March 2016. Flow testing far exceeded expectations with an aggregate stable oil rate of 1,688 bbl per day achieved, from the Lower Kimmeridge, Upper Kimmeridge and Upper Portland reservoirs. The produced oil contained no water and no clear indication of any reservoir pressure depletion was observed.
Based on analysis of published reports from all significant UK onshore discovery wells, the 1,688 bbl per day flow rate is likely the highest aggregate stable rate from any onshore UK discovery well.
All of the reviews and reports mentioned above state that the OIP volumes estimated should not be construed as recoverable resources or reserves.
Lidsey Oil Field
Doriemos Plc has a participating interest in the Lidsey Oilfield (“Lidsey”) in West Sussex of 20%
- Lidsey currently produces 22 bopd from the Lidsey-1 well, which has been in production since 2008.
- In March 2014, the Company announced that RPS had independently assessed that, as at 31 December 2013, the Lidsey Field contained 9.52 mmbbls (gross) of P50, or best case Oil In-Place. The planned infill well is thus targeted to recover similar or greater volumes to the Lidsey-1 producer.
The Lidsey Oil Field (“Lidsey”) is held under United Kingdom Production Licence PL241 which was granted on 2 December 1983. Oil was discovered on Lidsey in 1987 by Carless Exploration when an exploration well successfully flowed oil. Lidsey has one vertical producing well in the Jurassic, Great Oolite reservoir which has produced an average of 25 bopd of 38 API oil over the past 12 months. The Lidsey surface facilities are fully permitted and operational with onsite oil storage of 2,000 barrels.
The Licence is an ever green production licence, providing the field remains an active oil production status. A rent review on the Licence is expected in 2017.
Brockham Oil Field
Doriemus Plc has acquired an initial participating 10% in United Kingdom Production Licence PL 235.
The Brockham Oil Field is located on licence PL235 in Surrey, southern England. The field was discovered by BP in 1987 with the drilling of the Brockham-X1 well. The field currently has average daily production of approximately 35 bopd from the Brockham-X2Y production well.
- 10% working interest
- Located in the Weald Basin
- Operated by Angus Energy who own 55%
- Acreage covers 8.9 km2
- Mid-case (Xodus CPR): 2.8 million barrels of oil (gross)
Mr Keith Coughlan
Mr Coughlan has almost 30 years’ experience in stockbroking and funds management. He has been largely involved in the funding and promotion of resource companies listed on the ASX, AIM and TSX. He has advised various companies on identification and acquisition of resource projects and was previously employed by one of Australia’s then largest funds.
Mr Coughlan is currently Managing Director of European Metals Holdings Limited (ASX & AIM: EMH), Non-executive Director of Calidus Resources Limited (ASX: CAI) and Southern Hemisphere Mining Limited (ASX: SUH) and was previously Non-Executive Chairman of Talga Resources Limited (ASX: TLG).
Mr Greg Lee
Executive Director (Technical)
Mr Lee is a Petroleum Engineer and has over 30 years of diversified oil and gas experience in both technical and managerial positions. The main focus of his responsibilities has been on acquisitions and divestments, project management and supervision, oil and gas field development and operation, production technology and reservoir enhancement, field operations, drilling and completions activities, exploration, carbon dioxide capture and storage. Mr Lee also has a very keen interest in renewable and sustainable energy and best practices.
Mr Lee is a chartered professional engineer (CPEng) and a member of the Society of Petroleum Engineers (MSPE) and has been an independent petroleum engineer consultant since 1992 having worked with both large and small organisations (both as operators and non-operators) in numerous countries worldwide.
Mr Lee has been involved with the listing and management of public listed companies on both AIM and the ASX since 2003.
Mr Donald Strang
Executive Director (Finance)
Mr Strang is a member of the Australian Institute of Chartered Accountants and has been in business over 20 years, holding senior financial and management positions in both publicly listed and private enterprises in Australia, Europe and Africa. Mr Strang has considerable corporate and international expertise and over the past decade has focused on mining and exploration activities in the oil and gas and natural resources sectors. He is also a Director of other AIM companies.
Mr Hamish Harris
Mr Harris holds a Bachelor of Commerce and has held positions within market risk management at a number of financial institutions including Nomura Group, Deutsche Bank AG and BZW plc in Singapore, Hong Kong and London. Mr Harris is also a Director on a number of AIM listed companies.
38 Jermyn Street
020 7440 0642
020 7440 0641
38 Jermyn Street
020 7440 0642
020 7440 0641