Alpha Petroleum

Alpha Petroleum

March 19, 2015 06:55 ET

Alpha Petroleum Resources Limited ("Alpha Petroleum") Operational Update

LONDON, UNITED KINGDOM--(Marketwired - March 19, 2015) - Alpha Petroleum, the North Sea focused oil and gas developer and producer, is pleased to provide an update on its operations during the twelve months since its acquisition in February 2014 by private equity firm Petroleum Equity.

During the past year, Alpha Petroleum has made significant progress in the exploitation of its North Sea portfolio of both producing and development assets. In addition, it continues to see considerable value in UK North Sea oil and gas and is evaluating opportunities for further acquisitions.

Highlights

  • Estimated recoverable oil and gas volumes increased to at least 75 million barrels of oil equivalent for the key Cheviot development asset
  • Field Development Plan (FDP) for Cheviot being prepared for submission to the Department of Energy and Climate Change (DECC) by September 2015
  • Successfully extended the life of operated Southern North Sea gas fields Garrow, Kilmar and Wenlock

The most significant progress has been made at the 100% owned and operated Cheviot oil field, located in in part Blocks 2/10b, 2/15a and 3/11b in the UK Northern North Sea, as follows:

  • Established an integrated multi-disciplined team which has carried out an extensive re-evaluation of the hydrocarbon potential of the field
  • Concluded that the combination of re-injected produced gas and water injection together with optimising well numbers and well lengths has increased the estimate of Cheviot recoverable oil volumes to at least 55 million barrels of oil, with further upside potential
  • The simultaneous development of the adjacent Peel oil field and future development of gas from the Cheviot field and adjacent Padon field has increased the reserves potential of the licences to more than 75 million barrels of oil equivalent
  • In parallel with the subsurface analysis, Alpha has been evaluating different development concepts, and is now preparing a FDP based around a Floating Production Storage Offtake (FPSO) facility for submission to DECC by September 2015
  • The development will not only allow the optimum development of the existing oil reserves, but will also be designed for future gas export and the tie-back of discoveries in adjacent acreage.

Progress has also been made with the development planning for the Alpha operated Blythe gas field located Block 48/22 and 48/23a in the UK Southern North Sea. The gross gas reserves are estimated at 32 billion cubic feet, and the focus has been on working with adjacent infrastructure owners to determine the optimum export route. Alpha is planning to submit a Blythe FDP by September 2015.

Alpha has been active in extending the life of its operated Southern North Sea gas fields Garrow, Kilmar and Wenlock. Investments have been made to both improve the well performance and increase the reliability of the production facilities. This work will continue in 2015 and beyond as required. The Kilmar joint venture is also re-evaluating undeveloped parts of the field to determine if further development drilling is economically viable.

Graham Walters, Managing Director, Alpha Petroleum, commented: "Over the past 12 months, we have made strong progress across our portfolio of high quality producing and development assets, in particular at our key Cheviot asset, where we have been able to substantially increase our estimate of recoverable oil and gas volumes to at least 75 million barrels of oil equivalent, and we are now preparing a Field Development Plan to take this forward.

The recently announced changes to the fiscal system will clearly be of help, and these changes also support our shareholder's commitment last year to long term UK North Sea investments such as the development of Cheviot"

Notes to Editors

About Alpha Petroleum Resources Limited

Alpha is a privately owned UK company focussed on the United Kingdom offshore basins. It currently operates all of the 12 Blocks in which it currently has an interest. Those are:

Block Interest Licence
2/10b 100% P1070
2/15a 100% P1070
3/11b 100% P1070
9/21a 50% P1609
42/25a 17% P1034
43/21a 17% P1034
43/22a 17% P683
47/10a 50% P1
48/22b 50% P1736
48/23a 50% P1736
49/12a 20% P33
49/12b 100% P1062

Alpha's strategy is to focus on the appraisal, development and production from conventional offshore oil and gas fields. In addition to the managing its existing portfolio Alpha is very active evaluating additional investment opportunities.

www.alphapetroleum.com

About Petroleum Equity

Petroleum Equity was founded in 2012 with the aim of addressing the significant lack of private equity capital focused on the upstream oil & gas industry outside of North America. Petroleum Equity is seeking to build the leading private equity firm in the upstream energy sector outside of North America. The investment team consists of senior industry professionals with strong technical, operational, financial and principal investment track record of over 20 years. With a clearly defined and differentiated investment approach Petroleum Equity are targeting high quality upstream oil & gas assets managed by best-in class management teams.

www.petroleumequity.com

Contact Information

  • Alpha Petroleum
    Graham Walters
    Managing Director
    01483 307 200
    www.alphapetroleum.com

    Instinctif Partners
    Anca Spiridon /Harry Cameron
    020 7257 2020