22nd Oct 2013 11:25
LONDON (Alliance News) - Doriemus PLC Tuesday said that the operators of the Lidsey Oilfield in West Sussex plan to conduct a work-over and a re-completion on the producing Lidsey-1 well in the coming few weeks as part of the company's recent acquisition at the site.
The oil and gas investment company said on October 18 it signed a binding term sheet with Angus Energy Weald Basin No. 3 Limited to acquire a 10% stake in the site and has been granted a first-right-of-refusal period to negotiate increasing its interest in the site to 25% as part of the deal.
Doriemus said a contract work-over rig has now been secured to conduct a full well clean-out and scraper run to the total depth of the well and to perforate a new 10 foot section of the reservoir.
The company said it will pay Angus Energy GBP10,000 in cash and will issue to Angus Energy 100 million shares in Doriemus, worth GBP100,000 at Thursday's closing price on AIM. Angus will be paid an additional GBP230,000 cash on signing the formal farm-in agreement, which should be completed on November 18.
Doriemus said it has the option to maintain a 10% participating interest on the entire oilfield by paying cash calls on a 2-for-1 basis on the next well at Lidsey and thereafter by paying cash calls on a 1-for-1 basis on any further wells.
The Lidsey site currently produces 25 barrels of oil per day, with operating costs of USD45 per barrel. A work over of the well is planned before the end of October to increase production.
Doriemus shares were up 4.9% to 0.110 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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