UK Oil & Gas, one of the companies behind the Horse Hill well near Gatwick, announced this morning a new estimate of up to 9.2bn barrels of oil in its licence areas.
The latest figures for oil in play (OIP) came in a report by Nutech, appointed by UKOG in January to analyse findings from the Horse Hill well and advise on testing.
UKOG said the study calculated a best estimate of 9.245bn barrels for the total Jurassic shale and tight conventional reservoir. The best estimate for the Kimmeridge zone was put at 5.23bn barrels. The totals were for the 55 squares miles covered by the PEDL 137 and 246 licences.
The company said the study used modelling and analysis of findings from the Horse Hill (HH-1) and Collendean Farm wells and the eight closest boreholes to the licences. It also drew on Nutech’s data from 114 wells.
UKOG’s shares opened at 2.82p this morning but fell back to 2.32p by 10am.
UKOG’s chief executive, Stephen Sanderson, said: “Nutech’s latest report is a significant step towards understanding the resource potential of our Weald licences, being the first independent semi-regional quantification of OIP over the area that incorporates the findings from the Company’s HH-1 well.”
On 6th June, UKOG announced the results of a report by Schlumberger, which it said, estimated 271m barrels of oil per square mile in the Weald, 70% more than previously thought.
In April, the company reported the oil in play to be 158m barrels per square mile. But it had to issue a clarification to investors after claiming it had discovered 100bn barrels of oil across the Weald. Our report
The oil in place should “not be considered as either contingent or prospective resources or reserves”, the clarification said. And it added that “further development work in the form of appraisal drilling, well testing and assessment” would be required.