UK Oil & Gas, one of the companies behind the Horse Hill exploratory oil well near Gatwick airport, announced this morning it estimated there were 158m barrels of oil per square mile in the Weald Basin. This could mean 50bn-100bn barrels across the region, meeting up to 30% of UK oil demand, the company said.
UKOG suggested it could recover 5-15% of the oil and it restated that it would not need to frack.
This is the latest in a series of announcements by the company since drilling the well near Horley in Surrey last year.
In March, the company described Horse Hill as a “world class” find. In February, chief executive Stephen Sanderson told investors the source rocks at Horse Hill were “super rich”, and “as good, if not better, than stuff in the North Sea”. He said the results challenged the British Geological Survey estimates of 2.2-8.5bn barrels of oil in the Weald Basin.
This morning’s estimate follows analysis of cores from Horse Hill by the US company, Nutech. Its report saids almost three quarters of the oil in play (114m barrels) were in the Upper Jurassic Kimmeridge in a sequence of limestone and mudstone at 2,500-3,000ft (762m-914m).
Stephen Sanderson said the area had potential for “significant daily oil production”. He described the Upper Jurassic as a hybrid play and said it was analogous to areas in the US Bakken and Permian basins and the Bazhenov formation of West Siberia.
He also said again that it thought the oil could be recovered without hydraulic fracturing. “The Company considers that the high pay thickness, combined with interpreted naturally fractured limestone reservoir with measurable matrix permeability, gives strong encouragement that these reservoirs can be successfully produced using conventional horizontal drilling and completion techniques.”
UKOG said the potential of the Weald Basin as a whole was still being analysed. But in interviews Mr Sanderson said: “Based on what we’ve found here, we’re looking at between 50 and 100 billion barrels of oil in place in the ground. We believe we can recover between 5% and 15% of the oil in the ground, which by 2030 could mean that we produce 10%-to-30% of the UK’s oil demand from within the Weald area.”
- The Horse Hill well is in PEDL 137. UKOG owns a 30% direct interest in Horse Hill Developments Ltd. HHDL owns 65% of PEDL 137.