REG - Pennpetro Energy PLC - Horse Hill Farmin Update

Pennpetro EnergyAnnouncement

11/12/2023 07:15

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RNS Number : 2564W  Pennpetro Energy PLC  11 December 2023

Pennpetro Energy PLC

("PPP" or "Pennpetro")

 

Horse Hill Farmin Update

 

 

London, 11 December 2023 - Pennpetro Energy PLC (LSE: PPP) announces that it
has agreed to extend the binding Horse Hill farm-in term sheet ("Agreement")
with UKOG (137/246) Ltd and Horse Hill Developments Ltd ("HHDL"), both
subsidiaries of UK Oil & Gas plc (collectively "UKOG") until 30 June 2024.

 

The Horse Hill Oil Field ("Horse Hill"), located about 2 km north of Gatwick
airport.

 

The Agreement, as originally announced on 28 March 2023, enables PPP to
farm-in to the Horse Hill Oil Field on an incremental production only basis
via funding 100% of the acquisition of a twelve square km 3D seismic survey
and the drilling of the next crestal infill production well, designated as
HH-3.

 

The Agreement's binding farm-in terms, which are subject to certain conditions
as outlined below, cover the drilling of a new crestal infill well, designated
Horse Hill-3 ("HH-3"), to be spudded after the completion of a Pennpetro
funded high-definition 3D seismic survey. On completion of HH-3, Pennpetro
will receive a 49% share of all production derived from Horse Hill-3 and
future wells plus a 49% interest in the Licences. UKOG's subsidiaries will
retain their current interests in all oil production from Horse Hill-1
("HH-1") and HHDL will remain as the named Licence operator.

 

Tom Evans, PPP's Chief Executive commented: "I'm very pleased to announce that
our agreement with UKOG on the potential Horse Hill seismic and drilling
farmin has been extended to 30 June 2024. Horse Hill is an exciting project
and it could prove to be a very exciting venture for Pennpetro."

 

About Horse Hill Oil Field

 

As previous reported in the Pennpetro Energy RNS dated 28 March, 2023;

 

"Following its discovery in 2014, Horse Hill was successfully production
tested in the Upper Portland sandstone and underlying Kimmeridge limestone
section from 2016 through to the start of long-term continuous Portland
production in 2020. UKOG advise that, as of mid-March 2023, continuing oil
production from HH-1 totalled an aggregate of over 185,000 barrels of 35 ̊-
41 ̊ API sweet crude. Full planning and environmental consents are in place
for four additional infill production wells.

 

A 2018 Xodus CPR for UKOG estimated a gross mid case P50 Portland oil in place
("OIP") of 30 million barrels, with a corresponding mid-case 2C recoverable
Contingent Resource of 1.5 million barrels. The estimated mid case 5% recovery
factor being stated as in accord with other analogous fields in the Weald
Basin. It should be noted that the recovery factor being stated as in accord
with other analogous fields in the Weald Basin. It should be noted that the
total HH-1 Portland production to date potentially leaves around 1.36 million
barrels of the estimated mid-case recoverable Portland resource available to
infill drilling and remaining HH-1 production.

 

In addition to the 132,000 barrels of 35-36 ̊ API Portland continuous
production as at mid-March 2023, approximately 53,000 barrels of 41 ̊ API
sweet crude was produced from multiple zones within the Kimmeridge limestones
during production testing, before being shut in to allow for longer term
Portland production. In 2015 a Schlumberger report calculated an estimated
mean OIP of 8.262 billion barrels lying within the entire Kimmeridge section
underlying the Licences.

 

Note: OIP should not be construed as either recoverable Contingent resources
or Reserves. The Kimmeridge therefore remains a potentially viable secondary
production target at Horse Hill."

 

-ENDS-

 

This announcement contains inside information within the meaning of Article
7(1) of (i) Regulation (EU) No 596/2014 of the European Parliament and of the
Council of 16 April 2014, as amended (the "EU Market Abuse Regulation") and
(ii) the EU Market Abuse Regulation as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018.

 

For further information visit www.pennpetroenergy.co.uk
(http://www.pennpetroenergy.co.uk) or follow us on twitter @pennpetro or
contact:

 

 Pennpetro Energy PLC:

 Tom Evans, CEO                                                                                                   tme@pennpetroenergy.com (mailto:tme@pennpetroenergy.com)

 David Lenigas, Chairman                                                                                          +44 (0) 7881825378

                                                                                                                  lenigas@monaco-capital.com

 Brokers:                                                                                                         +44 (0) 207 614 5900

 Zeus Capital

 Simon Johnson

 Peterhouse Capital Limited

 Lucy                                                                                                             +44 (0) 20 7469 0930
 Williams

                                                                                                                +44 (0) 20 7220 9797
 Duncan Vasey

                                                                                                                +44(0) 207 129 1474
 Flagstaff Strategic and Investor Communications

                                                                                                                pennpetro@flagstaffcomms.com
 Tim Thompson

 Alison Allfrey

 Anna
 Probert

 

 

 

NOTES TO EDITORS:

 

Pennpetro Energy is an independent oil and gas company focusing on production
in the Gonzales Oil Field in Texas, USA. Shares in the company were admitted
to the Official List of the London Stock Exchange by way of a Standard Listing
on 21 December 2017 with the ticker symbol "PPP".

 

Its wholly owned subsidiary, Nobel Petroleum USA Inc. has a 100% Working
Interest in 2,036.38 acres in Gonzales County in Texas. These acres include
the Whistling Straits #5 well and the Chalk Talk #1H and #4H wells. Noble also
has a Participation, Development and Option Agreement and Joint Operating
Agreement with Texas based Millennium PetroCapital Corporation over a
250,000-acre Area of Mutual Interest in Gonzales County, Texas, aimed at
exploiting the prolific proven Austin Chalk oil and gas play. Pennpetro Energy
has also recently signed a conditional binding agreement to conduct a new 3D
seismic survey on the Horse Hill Oil Field near London's Gatwick Airport which
paves the way to drilling the next production well (HH-3) for 49% of the
revenue of this proposed well.

 

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