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Andalas Energy and Power Plc (ADL) Colter Well Update
Andalas Energy and Power Plc, the AIM listed oil and gas exploration and development company, is pleased to provide the following update on the Colter appraisal well (‘the Well’ or ‘Colter’), currently being drilled by Corallian Energy Limited (‘Corallian’) in the P1918 licence in the Wessex Basin. Andalas holds an 8% interest in the licence.
The Colter well (98/11a-6) has been drilled as a vertical well with the Ensco-72 jack-up rig and has reached a Total Depth of 1870m MD in the Sherwood Sandstone. The Well is an appraisal of the 98/11-3 well, drilled in 1986 by British Gas, within the Colter Prospect.
The 98/11a-6 well unexpectedly remained on the southern side of the Colter Prospect bounding fault but encountered oil and gas shows over a 9.4 metres interval at the top of the Sherwood Sandstone reservoir – a separate discovery to the original appraisal target. A petrophysical evaluation of the LWD data has calculated a net pay of 3 metres. Similar indications of oil and gas were encountered in the 98/11-1 well, drilled in 1983 by British Gas, within the Colter South fault terrace.
Provisional analysis of the new data indicates that the two wells may a share a common oil-water-contact having both intersected the down-dip margin of the Colter South prospect. Corallian’s most recent assessment of the Colter South Prospect prior to drilling the 98/11a-6 well had estimated a mean recoverable volume of 15 mmbbls. Further work will be required to refine this assessment with the new well data
The joint venture has commenced preparations to side-track the 98/11a-6 well. The side-track will be drilled directionally to a Sherwood Sandstone target within the Colter prospect on the northern side of the bounding fault and will take approximately two weeks to complete.
Andalas Energy and Power plc CEO, Simon Gorringe, said: “The initial results from Colter have delivered valuable information on the potential of an additional hydrocarbon structure called the Colter South Prospect. This is an added bonus and offers opportunity for future appraisal to increase the overall value of the Colter licence area. The oil and gas shows encountered in Colter South mean that we maintain our confidence levels for the side-track into the main the main Colter Prospect target. We look forward to updating share in the coming weeks.”
Qualified Person’s Statement
The technical information contained in this announcement has been reviewed and approved by Mr. Gregor Mawhinney. Mr. Mawhinney is consulting for Andalas, acting in the role of Vice President Operations. He has nearly 40 years experience in the oil and gas industry, is a member of the Society of Petroleum Engineers (SPE) and a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL).
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR). Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
For further information, please contact:
|
Simon Gorringe |
Andalas Energy and Power Plc |
Tel: +62 21 2965 5800 |
|
Roland Cornish/ James Biddle |
Beaumont Cornish Limited |
Tel: +44 20 7628 3396 |
|
Colin Rowbury |
Novum Securities Limited |
Tel: +44 207 399 9427 |
|
Christian Dennis |
Optiva Securities Limited |
Tel: +44 20 3411 1881 |
|
Stefania Barbaglio |
Cassiopeia Services Limited |
Stefania@cassiopeia-ltd.com |
Andalas Energy and Power Plc – Bunga Mas Update
Andalas Energy and Power Plc provides the following update in relation to its proposed acquisition of an interest in the Bunga Mas production sharing contract (“PSC”) (announced 29 August 2018).
The long stop date for fulfilment of the conditions precedent to the sale and purchase agreement expired on Friday, 15 February, and the parties have not extended it. The vendor has advised Andalas that the government of Indonesia (“GOI”) has advised that it intends to issue a letter terminating the PSC during the week commencing today. If, as is expected, the GOI issues the termination letter, Andalas will terminate the sale and purchase agreement.
As advised on 12 February 2019, the GOI asked the PSC contractors to deposit sums into an escrow account and lodge performance bonds as a condition of renewal of the PSC. The escrow sum is understood to be approximately US$5.8 million and the contractors have not satisfied this request. The directors have concluded that it would not be in the interests of the Company to seek to raise funds sufficient to fulfil these requirements.
As previously announced, to date Andalas has incurred direct costs of an estimated £200,000 of legal, professional and other direct costs in connection with Bunga Mas.
Andalas Energy & Power PLC CEO, Simon Gorringe, said: “We are disappointed by the recent developments at Bunga Mas. We could not ask shareholders for the funds to lock up US$6 million in addition to the capital required to develop the field. However, Andalas will only terminate the agreement when we know that the licence has been terminated by GOI.
“Colter is currently drilling, and we look forward to providing shareholders with further news in the coming weeks both on Colter and the Company’s interest in Badger.”
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR). Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
For further information, please contact:
| Simon Gorringe | Andalas Energy and Power Plc | Tel: +62 21 2965 5800 |
| Roland Cornish/ James Biddle | Beaumont Cornish Limited (Nominated Adviser) |
Tel: +44 20 7628 3396 |
| Colin Rowbury | Novum Securities Limited (Joint Broker) |
Tel: +44 207 399 9427 |
| Christian Dennis | Optiva Securities Limited (Joint Broker) |
Tel: +44 20 3411 1881 |
| Stefania Barbaglio | Cassiopeia Services Limited (Public Relations) | Stefania@cassiopeia-ltd.com |
Andalas Energy and Power Plc (ADL) – Update on Eagle Gas investment
Andalas Energy and Power plc is pleased to provide the following update on its investment in Eagle Gas Limited.
- The OGA has agreed a 5 month extension of the initial term of licence P2112 to 19 May 2019.
- Under the terms of the extension, the licence holder must:
- By no later than 31 March 2019, advise the OGA that it either: (i) has elected to drill one well to 3800m or 100m into the Namurian (whichever is the shallower) and approved the necessary funding for the well commitment; or (ii) elected to terminate the licence;
- Provide the results of two G&G studies to the OGA by 1 March 2019 together with a conclusion as to whether the results of these studies support a drill decision; and
- Provide an update to the OGA by 1 March 2019 on all pre-drill decision work.
- Operator to undertake an additional technical assessment of the Ketch gas prospect after a third-party review concluded that there may be additional gas potential in the Ketch.
- Identification of additional gas potential in the Ketch may inform the licence holders’ decision on the optimal location of an exploration well on the licence.
- Eagle Gas Limited has the funds available to complete the additional work programme.
Simon Gorringe, CEO of Andalas Energy and Power PLC said, “We are pleased that the Badger licence has been extended. It enables the operator, Holywell Resources Ltd, and Atlantic Petroleum UK Limited to complete further work and optimise the technical and commercial appraisal and development plans.”
Andalas is the owner of a 25% interest in Eagle Gas Limited that is itself the 100% owner of Holywell Resources Limited, which owns a 66 2/3% interest in licence P2112 (“the licence”). Atlantic Petroleum UK Limited owns a 33 1/3% interest in the licence. The licence contains the Badger prospect which contains a significant resource which was the subject of the Company’s announcement of 20 August 2018.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR). Upon the publication of this announcement via a Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
For further information, please contact:
| Simon Gorringe | Andalas Energy and Power Plc | Tel: +62 21 2965 5800 |
| Roland Cornish/ James Biddle | Beaumont Cornish Limited (Nominated Adviser) |
Tel: +44 20 7628 3396 |
| Colin Rowbury | Novum Securities Limited (Joint Broker) |
Tel: +44 207 399 9427 |
| Christian Dennis | Optiva Securities Limited (Joint Broker) |
Tel: +44 20 3411 1881 |
| Stefania Barbaglio | Cassiopeia Services Limited (Public Relations) | Stefania@cassiopeia-ltd.com |