On 25 January 2019, Doriemus Plc (ASX: DOR), an oil and gas exploration company from the energy sector announced that it was successful in completing the production testing and declaration of Portland commercial viability at the Horse Hill oil field in association with UK Oil & Gas Investments Plc (“UKOG”). The strategic review of asset portfolio has come to an end by UKOG. The forward plans regarding the drilling production, appraisal, and exploration wells during the period from 2019 to 2020 got finalized by UKOG.
By the end of 2019, DOR already has plans to transit its ongoing test-based oil production into permanent production by creating two new horizontal production well. Earlier, Xodus Group Ltd (“Xodus”) did a verification of the first horizon well which has a production target of 720-1,080 barrels of oil per day (“bopd”) and proved it to be the realistic and viable expectation. It also claimed that the production well is designed in such a way that it can position the Horse Hill as the Weald Basin’s leading oil producing companies. Based on this, through the designing of the horizontal well in 2020, the company has plans to increase the gross production more than 2,000 bopd.
In 2020, the company has plans to convert PEDL 331 discovered conventional recoverable resources to reserves.
At UK onshore PEDL137 Horse Hill Oil Field where Doriemus has 6.5% interest, UKOG has plans to deliver continuous oil production from Horse Hill through its continuous extended well testing of HH-1z and HH-2. The drilling and production testing will start in the spring season in the UK.
At the UK onshore Isle of Wight PEDL331 Arreton Main Oil Discovery and Arreton South Exploration site where DOR has 5% interest, the operator of PEDL 331, UKOG has plans to convert 14.9 mmbbl of its net unrisked Contingent Resources into Proven and Probable Reserves through the drilling and the long-term testing program within the Arreton Main oil discovery.
The official listing date of DOR on ASX is 29 September 2017 where the performance of the company remains negative till last one year. However, DOR’s YTD performance is 25%.
For the half-year period ending on 30 June 2018, the company made a net loss of £0.396 million. The balance sheet of the company appears stable with a net asset base of £4.532 million and a debt to equity ratio of 0.14 which indicates a stable financial position of the company to meet its long-term obligations. A lower debt-equity ratio during the period states that DOR used its resources to fund during the period. However, there is a decrease in the retained earnings during the period which is an indication weak operating performance which led to the net loss during the period. It could also create a negative impact on the shareholders as it directly impacts their dividend. The balance sheet also highlights that the company can efficiently manage its working capital and short-term debt. By the end of the period, the company has net cash of £0.387 million.
The share of DOR traded last on 24 January 2019 with the closing price of A$0.100 with the market capitalization of A$5.8 million.
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