20 Feb Update on Well A-EZ Z4 (2)
Path Investments plc (TIDM: PATH) is pleased to announce that, further to the update announced on 7 February 2018 in relation to the Company’s conditional acquisition of a 50% participating interest in an onshore producing conventional gas field, the Alfeld-Elze II Licence and Gas Field in Germany, well A-EZ Z4 (2), the second gas production well on the Alfeld-Elze II Licence and Gas Field, has been successfully drilled and completed.
Well A-EZ Z4 (2) has been drilled to a total depth of 1,491 metres (bsl) , some 11 metres into the Carboniferous. The well encountered a gross 258 metre interval of Permian Rotliegendes reservoir. No gas water contact was encountered in the well and the preliminary wireline log interpretation undertaken by the Operator, 5P Energy GmbH (“5P Energy”), indicates good correlation with the original gas producing A-EZ Z4 well drilled in the 1970s during the original development of the gas field. As anticipated under the current field development plan, the results suggest gas recharging of the reservoir since abandonment of the field in 1995. The drilling rig has been released, a wellhead and tree installed and the well has been perforated and suspended awaiting the installation of surface gas treatment facilities. Subject to final approvals and commissioning of the well, gas production is anticipated to commence around mid-2018.
The Alfeld-Elze II onshore gas field was brought back into production in 2015 by 5P Energy through the workover and re-entry of an existing well, H-WD Z2, and the installation of processing facilities at the well-site. Since 2015, this vertical well has produced in excess of 2.6 Bcf gas at a choked rate of c 3.0 MMscfpd. A-EZ Z4 (2) is located less than 1 km away from H-WD Z2 and is expected to produce at the same rate.
As previously announced, the Company intends to undertake a fund raising and to seek admission of the Company’s ordinary shares to trading on the AIM Market of the London Stock Exchange plc (“AIM”) during Q1 2018, in conjunction with the completion of the acquisition of a 50% non-operating participating interest in the Alfeld-Elze II Licence and Gas-Field from 5P Energy.
Further announcements will be made, as appropriate, in due course.
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
For further information please contact:
Path Investments plc
Andy Yeo 020 3934 6632
Shard Capital (Broker and Financial Adviser)
Damon Heath 020 7186 9900
IFC Advisory (Financial PR & IR)
Heather Armstrong 020 3934 6630
The information contained in this announcement has been reviewed and approved by Tom Mackay, a consultant petroleum engineer to Path and member of the Advisory Committee. He has 36 years’ experience as a petroleum engineer and is a member of the Society of Petroleum Engineers (“SPE”). He has read and approved the technical disclosure in this regulatory announcement.
The technical disclosures in this announcement comply with SPE standards.
Bcf means billion standard cubic feet of natural gas; MMscfpd means million standard cubic feet per day