3rd Jul 2017 07:00
NU-OIL AND GAS PLC
AIM symbol: 'NUOG'
3 July 2017
NU-Oil and Gas plc
("NU-Oil" or "the Company")
Operations Commence on PL2002-01(A) and Board Change
PL2002-01(A)
Further to the announcement of 22 June 2017, NU-Oil, the independent Oil and Gas Company, is pleased to announce that operations on onshore petroleum lease PL2002-01(A) in western Newfoundland, Canada have commenced. Approval for the first phase of the work programme has been received from the Department of Natural Resources and PVF Energy Services ("PVF") have commenced the approved operations.
As previously announced, PVF have agreed to provide 100% of the financing for a work programme which will consist of two phases ("Work Programme"). The first phase involves a wireline operation to clean up the PAP#1-ST#3 well and mill out a physical obstruction in the completion that is believed to have been restricting flow. The well will then be flowed for a period anticipated to be between 15 and 30 days to allow for reliable analysis and evaluation of the resulting production. Subject to satisfactory results, a rig will be mobilised to site to undertake the second phase of the Work Programme, which will include recompletion of the well and installation of an appropriate artificial lift system.
The Company and PVF have agreed to share Net Revenue from production from petroleum lease PL2002-01(A) on a 50/50 basis following cost recovery by PVF. Enegi Oil Inc, NU-Oil's wholly owned subsidiary, will remain as Operator.
Pursuant to the Production Sharing Agreement, PVF have the right to drill new wells on the lease. Both the Company and PVF expect to conclude a farm in agreement to cover this scenario in the near future.
PL2002-01(A) contains the Garden Hill Field Trend, which is a proven hydrocarbon bearing accumulation beneath the Port‐au‐Port peninsula in Western Newfoundland that is estimated, based upon internal reservoir models, to contain between 83 and 341MMBO in‐place, increasing to between 136 and 591MMBO when considering the mapped offshore extent. PL2002‐01(A) covers an area of 16km2 and holds between 21 and 97MMBO of this total. Initially discovered in 1994 with the "PAP#1" well, the conventional Lower Ordovician, Aguathuna Formation reservoir has since been penetrated by three appraisal side‐tracks, which support the theory that reservoir productivity is linked to hydrothermal alteration. Extensive testing at the Garden Hill Site observed a lack of pressure depletion, indicating that a minimum connected volume in excess of 100 million barrels of oil is present.
Board Change
The Company also announces that Tejvinder Minhas, Executive Director, has moved to a position of Non-Executive Director with the Company, effective from 3rd July 2017. The increasing technical focus of the Company has been the key reason behind the mutually agreed decision and Tejvinder will continue to support the Company going forward from his role as a Non-Executive.
Nigel Burton, CEO of NU-Oil, commented:
"The Company is delighted that the workover programme at PL2002-01(A) has commenced on schedule. This new activity and investment at the Garden Hill Field is expected to lead to production being reinstated.
I would like to thank Tej for his contribution to the Company in his role as an Executive Director and look forward to and welcome his future support on the Board as a Non-Executive".
Enquiries:
NU-Oil and Gas plc
Alan Minty, Executive Chairman Tel: +44 161 817 7460
Nigel Burton, CEO Tel: +44 7785 234447
Strand Hanson Limited
Rory Murphy/Ritchie Balmer Tel: +44 20 7409 3494
Beaufort Securities Limited Tel: +44 20 7382 8300
Jon Belliss
Elliot Hance
St Brides Partners Limited Tel: +44 20 7236 1177
Elisabeth Cowell
Lottie Brocklehurst
www.nu-oilandgas.com
Qualified Persons
The information in this release has been reviewed by Professor Mike Bowman, a Non-Executive Director of NU-Oil and Gas plc. Mr. Bowman was the President of the Petroleum Exploration Society of Great Britain in 2012 and has over 30 years' experience in the petroleum industry
Note to Editors:
NU-Oil and Gas plc is an independent oil and gas company whose strategy is to build a diverse portfolio of assets with a strong emphasis on acquiring interests in stranded and marginal fields.
These fields are low risk highly-appraised projects and consequently the Company's entry cost will be low. NU-Oil will look to develop these assets utilising solutions delivered by Marginal Field Development Company (MFDevCo) and the MFD Consortium, which can significantly improve the development economics of a project. This is also expected to enable the early booking of reserves. |
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").
Related Shares:
NUOG.L