DORIEMUS PLC – Nutech reports 282 million barrels of Oil for Brockham

For Immediate Release

13 September 2016

DORIEMUS PLC

("Doriemus" or the "Company")

Nutech reports 282 million barrels of Oil in Place per square mile for Brockham-1 well in the UK’s Weald Basin
 

London-quoted Doriemus PLC (ISDX: DOR) is pleased to announce that US-based Nutech Ltd ("Nutech"), one of the world's leading companies in petrophysical analysis and reservoir intelligence, has independently assessed the Brockham-1 well. Drilled by BP in 1987 under UK Production License PL 235, this Weald Basin well sits approximately 6 miles north west of Gatwick Airport, with an estimated total oil in place (“OIP”) of 281.7 million barrels of oil (“MMBO”)  per sector or per square mile inclusive of all reservoirs within the well.

The Executive Summary of the Nutech Report (“Nutech Report”) on the Brockham-1 well is appended to this news release, and the complete Nutech Report can be seen on the Company’s website.

In comparison, Nutech’s previous reported OIP assessment of the the nearby Horse Hill-1 well (“HH-1”),  located approximately 4.5 miles from the Brockham play, reported a total of 158 MMBO OIP per square mile last year.  This excluded the previously reported Upper Portland Sandstone oil discovery previously announced on 9 April 2015. The flow testing of the HH-1 well, as announce on 21 March 2016, reported a total aggregate stable dry oil flow rate of 1,688 barrels of oil per day from two of the three Kimmeridge Limestones and the Portland Sandstone.  The pay zones successfully flow tested at HH-1 in February and March this year are similar to those seen in the Brockham-1 well.  

Doriemus is a  partner in the planned Brockham sidetrack and will take advice from Nutech in order  to provide input and suggestions to the operator.

David Lenigas, Executive Chairman of Doriemus Plc, commented:

“The great advantage of the Brockham oil field is that it is already a producing oil field and any new production should be able to be put on line relatively quickly. This Nutech work for Doriemus has highlighted that the conventional Portland Sandstones and the Kimmeridge Limestones that were oil productive at the Horse Hill -1 well near Gatwick Airport are indeed evident at the nearby Brockham Oil Field. Doriemus looks forward to participating in the next phase of developing the oil potential of Brockham with the proposed drill of the next side track well designed to penetrate the Portland and the entire Kimmeridge sections of the well."

Bill Boykin, NUTECH Energy’s EVP Business Development, commented:

“From the initial NUTECH petrophysical and reservoir analysis, we are excited about the potential of the Brockham oil field. It is early in the assessment with limited data, but we are looking forward to updating the reports as additional information comes in from log/core data from new drills and additional production data from completions.”

Interest in Horse Hill:   Doriemus owns a 10% direct interest in the Brockham Oil Field (“Brockham”) which is held under UK Production Licence PL 235. Angus Energy Weald Basin no.3 Limited own 55% of of Brockham and are the operators with Terrain Energy Limited owning 20%, Brockham Capital Limited owning 10% and Alba Minerals Plc owning 5%.

Cautionary Statement: The above estimated OIP hydrocarbon volumes should not be construed as recoverable resources or reserves and also should not be construed in any way to reflect potential producibility of hydrocarbons from the formations evaluated. The Company would expect to report estimated recoverable resources following a successful completion of the Brockham-4 sidetrack planned to later this year, in order to comply with the standards of the Society of Petroleum Engineers’ 2007 Petroleum Resources Management System.

Qualified Person's Statement: Bill Boykin, NUTECH Energy’s EVP Business Development, who has over 30 years in of relevant experience in the oil industry, has approved the information contained in the announcement.  Mr. Boykin is a member of numerous oil and gas societies, and past officer in local Engineering, Geological and SPWLA chapters.

The directors of the Company accept responsibility for the contents of this announcement.

For further information please contact:

Doriemus Plc:

www.doriemus.com

David Lenigas (Executive Chairman)                    +44 (0) 20 74400640

Hamish Harris (Non-Executive Director)

Peterhouse Corporate Finance Limited           +44 (0) 20 7469 0930

Guy Miller

Fungai Ndore

Square 1 Consulting (Public Relations)     +44 (0) 20 7929 5599

David Bick

Nutech Executive Report Summary (dated: 12 September 2016):

Results and Recommendations:

Doriemus Plc has engaged Nutech Ltd (“Nutech”), to aid in its independent assessment and development potential of the Brockham oilfield in UK onshore Production License PL 235, Weald Basin.  Doriemus has acquired the rights to the adjacent Horse Hill-1 well ("HH-1") and Collendean Farm-1 well (“CF-1”) analysis (Doriemus is a stakeholder in the Horse Hill license) to assist with the assessment of the nearby Brockham-1 well and launched an initial study on Brockham-1 to better understand the potential in this play. 

Included in the analysis by Nutech is a cross section of the three wells, CF-1, HH-1, and Brockham-1 to understand the geological variations across the Basin where the wells lay.  It is seen that there are some geologic variations across the 4.5 miles in between the HH-1 and Brockham-1 within the Portland zone, but the overall stratigraphy remains prevalent.   It is also observed that the Brockham-1 formations lay slightly deeper in the Portland zone, and close in the Kimmeridge formations relative to HH-1.

It is imperative to realize the limitations on the analysis in the bulk of the Kimmeridge zone where only sonic porosity logs were available.  The lack of high quality data reduces the confidence level of the quantitative results.  To overcome this, offset logs in junction with a robust process driven methodology yield reliable qualitative results.

Petrophysical results in the Brockham-1 well yield an oil in place ("OIP") estimate of 281.67 million barrels of oil ("MMBO") per square mile, primarily from the Portland Sandstone, and the argillaceous Limestones and mudstones of the Kimmeridge, and the mudstones of the Oxford and Lias sections.

The total OIP in the conventional Sandstones and Limestones of the Portland and Kimmeridge totals 101.7 MMBO per square mile, in comparison to 68.5 MMBO per square mile analyzed in the HH-1 well. The breakdown of each formation is listed below.

Brockham-1 Portland Sandstone contains 76.8 MMBo per square mile over a gross interval of 409 feet, with average porosity of 17% and permeability of 162 milliDarcy (“mD”). Similarly, the HH-1 Portland Sandstone Group of 314 feet contains an average porosity of 17% and permeability of 152.4 mD. The HH-1 well was perforated over an interval of 103 feet and naturally flowed to surface 323 barrels of oil per day (“bopd”) of 35-37° API oil at a stabilized dry oil rate for an 8.5 hour period from the Portland Sandstone on well test in 2016.

The Upper Kimmeridge Micrite has been estimated to contain 11 MMBO per square mile over an 85 foot interval, with an average porosity of 7.7% and tight matrix permeability of 0.02 mD. This is similar to the HH-1 well an average porosity of 6.1% and tight matrix permeability of 0.005 mD. HH-1’s OIP for the upper Micrite was 6.96 MMBO per square mile over an interval of 105 feet. The HH-1 well was perforated over an interval of 88 feet and naturally flowed to surface 901 bopd of 40 API oil at a stabilized dry oil rate for a 4 hour period from the Upper Kimmeridge Micrite on well test in 2016.

The Middle Kimmeridge Micrite contains an estimated 8.8 MMBO per square mile over an interval 67 feet with an average porosity of 7.7% and permeability of 0.024 mD. This is similar to the HH-1 well an average porosity of 7.6% and permeability of 0.107 mD. HH-1’s OIP for the upper Micrite was 17.1 MMBO per square mile over an interval of 135 feet. The HH-1 well was perforated over an interval of 80 feet and naturally flowed to surface 464 bopd of 40 API oil at a stabilized dry oil rate for a 7.5 hour period from the Middle Kimmeridge Micrite on well test in 2016.

The Lower Kimmeridge Micrite has an estimated 4.3 MMBO per square mile over an interval 29 feet with an average porosity of 8.4% and permeability of 0.032 mD. The HH-1 well did not flow test this zone.

Fracture analysis, coupled with information from the HH-1 well and CF-1 well offset well information indicate that the Kimmeridge Limestones (Micrites) show potential of natural fracturing and are potential candidates for flow testing when drilling and completing the Brockham-4 sidetrack.

Table 1 shows the calculated total OIP values for the Brockham well’s conventional Sandstone and Limestone. It is recommended that conventional flow testing be undertaken within the Upper Portland Sandstone and the three Kimmeridge Micrite units to better understand the producibility of each zone when drilling the proposed sidetrack on the Brockham-4 well.

Table 1: Brockham-1 - NULOOK/NULIST OIP Summary Table:

Cautionary Statement: The above estimated OIP hydrocarbon volumes should not be construed as recoverable resources or reserves and also should not be construed in any way to reflect potential producibility of hydrocarbons from the formations evaluated. The Company would expect to report estimated recoverable resources following a successful completion of the Brockham-4 sidetrack planned to later this year, in order to comply with the standards of the Society of Petroleum Engineers’ 2007 Petroleum Resources Management System.

Glossary: