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Brockham Oil Field Investment

3rd Dec 2013 07:00

DORIEMUS PLC - Brockham Oil Field Investment

DORIEMUS PLC - Brockham Oil Field Investment

PR Newswire

London, December 2

3 December 2013 Doriemus Plc ("Doriemus" or the "Company") New Producing Oil Investment - Brockham Oil Field in the Weald Basin, UK. Doriemus Plc (AIM: DOR) is pleased to announce that it has signed a BindingTerm Sheet ("BTS") with Angus Energy No. 3 Limited ("Angus Energy No.3") toacquire an initial participating 10% in United Kingdom Production Licence PL235, which comprises the producing onshore Brockham Oil Field ("Brockham") onthe northern flank of the Weald Basin at Brockham in Surrey. Highlights: * Brockham is currently producing 42 bopd of 28 degree API crude from the Brockham-1 well. * Current production costs are around $45 per barrel. * A well stimulation programme is due to be completed on Brockham-1 during December 2013. * A new side track on the shut in Brockham-4 well is scheduled to be drilled in January 2014 to intersect other parts of the reservoir. * 46 km of seismic has recently been acquired and a new CPR has been commissioned. Donald Strang, the Company's Chairman, commented: "The Company sees significant upside potential at Brockham, similar to what wehave seen at the Lidsey oil field where the current well work over isprogressing, with an imminent well work over planned and a new side trackplanned for very early in the New Year." "This Brockham oil field investment is the second such UK onshore producing oilinvestment under the Company's new stated investment strategy over the past fewmonths and represents an opportunity for Company to further increase its UKconventional onshore oil production." Brockham Oil Field: The Brockham Oil Field was discovered by BP in 1987 when BP drilled theBrockham-1 well and initially flowed 95 bopd of 27.5 API crude from thePortland sands reservoir. Brockham is held under United Kingdom ProductionLicence PL 235. Brockham is now owned by: * Angus Energy No.3 Limited (60% interest and Operator) * Terrain Energy Ltd (20% interest) * Doriemus (10% interest) * Brockham Energy (10% interest) The Brockham surface facilities are fully permitted and operational with onsiteoil storage facilities of 1,200 barrels. Current production costs at the current production of 42 bopd are around $45per barrel. All production is currently sold to the Perenco BP refinery. The Licence is an ever green production licence, providing the field remains anactive oil production status. A rent review on the Licence is expected in 2017. Terms of the Acquisition: In consideration, Angus Energy No.3 has been paid an initial cash payment of £5,000 and will be issued 130 million ordinary shares in Doriemus (the"Consideration Shares") within 10 days of signing of the BTS. Angus Energy willalso be paid an addition payment of £100,000 on signing of the formal Farm InAgreement ("FIA"), which will be executed within 30 days of signing of the BTS.Doriemus will be responsible for paying £100,000 towards the side-track onBrockham-4 which is scheduled for January 2014. Application has been made for the Consideration Shares to be admitted totrading on AIM and it is anticipated that Admission will occur on 12 December2013. Following Admission, the Company's enlarged issued share capital will comprise4,189,999,998 ordinary shares. The Company does not hold any shares intreasury. This figure of 4,189,999,998 ordinary shares may be used byshareholders in the Company as the denominator for the calculations by whichthey will determine if they are required to notify their interest in, or achange in their interest in, the share capital of the Company under the FCA'sDisclosure and Transparency Rules. For further information please contact: Doriemus plc Donald Strang +44 (0) 207 440 0640 Hamish Harris Sanlam Securities UK Limited

Simon Clements/Virginia Bull +44 (0) 207 628 2200


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