The Australian investor, David Lenigas, says the Brockham well near Dorking in Surrey is key to unlocking potential oil production in the Weald Basin in southern England.
Mr Lenigas, chair of Doriemus PLC, told Proactive Investors today the well would reveal whether oil in Kimmeridge limestones would flow in other parts of the Weald, as well as at Horse Hill near Gatwick.
He said his company, which has a 10% stake in Brockham, was “very excited” about the results of work recently carried out on the well.
“All zones that we were looking for in the log analysis have identified hydrocarbons, and in particular gas.
“Over the course of the next week or three we’ll be releasing the results of the log work, the maturity analysis, the whole concept of ‘Is the weald limestones in the Kimmeridge naturally fractured like it was at Horse Hill’ and then obviously going to move into production testing.”
Since December, work on the Brockham well, operated by Angus Energy, has prompted protests and concern from some residents. Last week DrillOrDrop reported that part of the well had had to be abandoned after hydrocarbons bypassed an isolation plug.
Surrey County Council has confirmed that Angus Energy does not have permission to extend the well vertically or horizontally and no planning application had been submitted.
Similar characteristics to Horse Hill
Mr Lenigas said the analysis from Brockham so far had revealed similar characteristics to the well at Horse Hill.:
“The proof of the pudding’s going to be in the eating when we do the flow test, not too far away.
“And then that, I think, opens up the whole Weald basin for other players to go look. There is substantial amounts of oil in these Kimmeridge limestones. And it’s shallow and it doesn’t require fracking.”
Mr Lenigas, a former chairman of UK Oil & Gas, said Brockham had advantages over Horse Hill.
“The beautiful thing about the Brockham field is it’s already a producing licence. Horse Hill now needs to go through two, three, four, five years of permitting, flow tests, appraisal wells, government legislation to turn it from an exploration site into a development site.
“But Brockham’s been producing happily in that part of the south of England, just south of the M25, for 40 years, so the exciting thing about Brockham is when we start flowing the oil we can put it straight into the industry.”
‘Brockham’s been producing happily in that part of the south of England, just south of the M25, for 40 years’
Official Oil and Gas Authority Data Release date 01/12/2016
Between Sept 2015 and Aug 2016 the Brockam site produced 6 Barrels of oil per day.
No gas flowed in the same period.
More water than oil was produced from the same well
Brockham currently produces from Portland Sandstone, as you point out, at very low rates. However the Portland Sandstone is not one of the formations of interest in the new program which is to see if the petrophysical properties of the Kimmeridge Limestones, and also the Corallian, are similar to Horse Hill and potentially exhibit similar PI. To be confirmed with production testing. The big plus of course is that Brockham already has a long production licence (30 years) so the antis will have a problem no matter how many druids try and slow the trucks down.
Brockham shut down at the end of January 2016 for site upgrade so has not produced any oil since then.
Click to access report2.pdf
Before then it was averaging about 60m3 a month
Ok. That explains it.
These guys do talk it up, don’t they? It doesn’t hurt their company account. Just wondering what happened in the last 5 years? Why the oil didn’t flow and now suddenly it does.
They talk it up, you talk it down. The difference is, they have the data from the recent work-over, you don’t.
The share-price seems to be following their position. It may not continue to do so, but what is certain is that it will follow facts, and not speculation.
Keep digging John.
If this is true “Surrey County Council has confirmed that Angus Energy does not have permission to extend the well vertically or horizontally and no planning application had been submitted.” Angus have clearly broken planning permission consent as they have drilled down into the Corallian.
They would have done well to drill with the rig they had. It didn’t have a TD or Kelly.
David – 99% on this BB won’t know what a top drive or a kelly and rotary table are.
Is that a TD or Kelly in the video? 2 minutes in.
Behind The Scenes at Brockham
Looks like a Varco power swivel.
Cheers. Every day is a learning day.
“If this is true” ….. “Angus have clearly broken”.
Speculate as much as you like. You might even suggest one of the workers left his safety hat off at some time, not sure it will change the reality.
The work has been completed, and the results have to be reported to the market, when available. All will become fact soon enough.
Share price still rising!
Councils can be bought…if they allow fracking in other parts of UK then Brockham production is 100% guaranteed
What has fracking in “other parts of the UK” got to do with Brockham oil production. Brockham already has a 30 year production licence and no “fracking” is required.