Tag Archives: holywell resources limited

Andalas Energy and Power Plc, the AIM listed upstream oil and gas and energy company (AIM: ADL), is pleased to provide an update on its investment in Eagle Gas Limited.  Eagle’s operating subsidiary Holywell Resources Limited now has the results of the 2018 seismic interpretation work programme on Southern North Sea Licence P2112, which contains the gas prospect known as Badger.

Highlights:

• 2018 technical work programme completed thereby completing the Licence commitment.
• Following the interpretation of the reprocessed 3D seismic covering the block, Holywell has assessed the resource potential of the Badger gas prospect:
  • Four seismic horizons mapped to represent prospective sandstone reservoir objectives: Base Ketch, Westphalian B (Murdoch equivalent), Westphalian A and Namurian (Trent equivalent) layers.
  • Gross mean prospective resources assessed to be 399 Billion cubic feet (Bcf) of recoverable gas (net of inerts and liquids) and 3.9 million barrels of natural gas liquids.
• Potential exploration well location identified to target 2 of the 4 objectives.
  • The well would be drilled in water depth of circa 45 metres (148 feet) to a total depth (TD) of circa 4,200 metres (13,800 feet).
• Proposed well location is approximately 35 kms from local infrastructure, including the Perenco operated Eagles Transport System (ETS) pipeline that could, subject to negotiation, be the evacuation route for the produced gas to the Bacton terminal, North Norfolk.
• Completion of acquisition of increased interest in Eagle (announced 25 July 2018):
  • Andalas now has a 25% interest in Eagle.
  • Andalas has issued 2,941,176 consideration shares to Eagle.
  • Simon Gorringe appointed to the board of Eagle.

Simon Gorringe, CEO of Andalas Energy and Power Plc said: “We believe that the definition of a prospective resource is validation of our decision to participate in the project via our investment in Eagle.  Badger is a significant gas prospect, which has the potential to be one of the larger discoveries in recent years in the UK Southern North Sea.

“The programme finished on time and on budget.  The next steps for the project include the presentation to the UK OGA and for the joint venture partners to agree a forward plan under which they can progress the project.”

Table 1 Gross prospective unrisked resources (Note 1 and 2):

Table 2 Net (to Holywell) prospective unrisked resources*

*Andalas has a 25% shareholding in Eagle, which is the 100% owner of Holywell, which is the owner of 66 ²/₃% of the licence.

Note 1: The work carried out using international resources and reserves reporting and classification standard adopted by the AIM market of the London stock exchange – the March 2007 SPE/WPC/AAPG/SPEE Petroleum Resources Management System (“PRMS”).

Note 2: Prospective Resources are those estimated quantities of hydrocarbons that may be potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Issue of Equity

The Company has issued 2,941,176 nil par value ordinary shares in Andalas to Eagle ( “Consideration Shares”) and therefore completed the acquisition of its additional interest, thereby taking its interest in Eagle to 25%. The Consideration Shares which will rank pari passu with existing Ordinary Shares. Application will be made to the London Stock Exchange for the Consideration Shares to be admitted to trading on AIM and it is expected that dealings in the consideration shares will commence on or about 21 August 2018.

Total voting rights

Following Admission of the Consideration Shares, expected on or around 21 August 2018, the Company’s issued share capital will consist of 296,184,423 ordinary shares of nil par value (“Ordinary Shares”), with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 296,184,423 Ordinary Shares may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules (“DTRs”).

Reserves and Resources Cautionary Statement

Oil and gas reserves and resource estimates are expressions of judgment based on knowledge, experience and industry practice.  Estimates that were valid when originally calculated may alter significantly when new information or techniques become available.  Additionally, by their very nature, reserve and resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate.  As further information becomes available through additional drilling and analysis, the estimates are likely to change.  This may result in alterations to development and production plans which may, in turn, adversely impact the Company’s operations.  Reserves estimates and estimates of future net revenues are, by nature, forward looking statements and subject to the same risks as other forward looking statements.

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.

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Glossary:

Unless otherwise stated, words and expressions used in this announcement have the same meaning as is given to them in the SPE Peteroleum Resources Management System.