Alba Mineral has received the following update from UK Oil & Gas Plc ("UKOG"), the majority owner of Horse Hill Developments Limited ("HHDL"), the operator of Horse Hill licences PEDL 137 and PEDL 246 in which Alba has an 11.765% interest.

HH-2z well
The first phase of open hole EWT and associated well clean-up has been completed at the Horse Hill-2z (“HH-2z”) horizontal well.
HH-2z is currently shut-in for a scheduled long-duration pressure build-up test (“PBU”), during which time preparations will be finalised for a series of planned interventions to further optimise flow rates from the Portland reservoir.
Whilst HH-2z continued to clean-up prior to the current shut-in, returning oil, completion and drilling fluids to surface, evidence of formation water ingress was also recorded. Consequently, an additional well intervention is planned to shut-off the water source.
The HH-2z interventions are planned to commence in the New Year following completion of the HH-2z PBU and will be reported in due course.

HH-1 well

• Immediately following the current HH-2z shut-in, flow lines were reconnected to HH1 and dry Kimmeridge oil flow was resumed on 18 December 2019 at an initial halfhourly rate of 354 barrels of oil per day (“bopd”). HH-1 is currently producing at around the average rates previously reported.
• Upon establishment of stable oil flow from HH-2z, a short HH-1 intervention is also planned to further optimise both Kimmeridge and Portland test production from the vertical wellbore.

FDP

• A field development plan (“FDP”) has been submitted to the Oil and Gas Authority, seeking consent for the field’s planned first development phase, consisting of two producing wells, HH-1 and HH-2z. Subsequent phases, involving further infill production wells and a possible water reinjection well, are planned to be submitted as FDP addenda in the coming year, once longer-term well behaviour is more comprehensively understood.