Alba Mineral Resources has disposed of its 5% stake in the Brockham oil licence in Surrey.
The deal, announced this morning, transfers the interest to the licence operator, Angus Energy.
It leaves Alba with a remaining onshore UK oil interest in Horse Hill Developments Limited, the operator of the Horse Hill field, also in Surrey.
Under the Brockham settlement, Alba paid Angus Energy £6,400 in cash and £32,000 in Alba shares to cover back costs and a contribution to abandonment.
Alba’s board said the deal was part of the company’s drive to “rationalise its non-core assets”. Its portfolio focuses on gold, graphite, ilmenite, base metal and iron ore.
Alba is the second company to give up interests in Brockham in the past year. In October 2020, Doriemus disposed of its 10% holding in a deal with Angus Energy.
Data from the Oil & Gas Authority shows that the Brockham licence (PL235) last produced oil in October 2018.
Last year, Angus sought consent to inject produced water at Brockham. A public consultation ended last month (May 2021). A decision by the Environment Agency is awaited.
Shares in the Brockham licence are now divided between Angus Energy (80%), Brockham Capital Limited (10%) and Terrain Energy Limited (10%).
The three partners have the same stakes in another Angus Energy-operated oil licence, at Lidsey in West Sussex (PL241).
Earlier this year, Angus announced that the Lidsey wells had probably been drilled on the edge of the oil reservoir, rather than the preferred crest. It said then it would remap the field and look for a new drilling target.
Today, Angus managing director, George Lucan, said:
“Seismic acquisition at Lidsey is complete and reprocessing of newly acquired and existing lines is underway.”
“It is the Company’s expectation that moderate oil production and the facility of water injection at Brockham, together with 9.7 million barrels of Oil In Place at Lidsey, will represent a good value proposition for shareholders, and for possible farminees, once seismic re-interpretation is complete and permissions are in place for a side-track at Lidsey.”
- Angus Energy is taking part in an online forum on Thursday 17 June 2021. The event, which begins at 6pm, includes a presentation by George Lucan at 7.30pm. Link to attend the event