UK Oil and Gas saw its shares rise in value by nearly 25% today following a statement on the company’s Broadford Bridge oil exploration site in West Sussex.
Last week, the company announced problems with the cement bond on sections of the well and said it would need to carry out a workover and cement squeeze.
Today it gave details of revised testing plans and released three short videos showing oil and gas said to be produced from the Broadford Bridge well.
In a statement, UKOG said:
“Light, sweet crude oil and hydrocarbon gas continues to flow from the Kimmeridge Limestones”.
There were, however, no details of flow rates.
Shares ended the day at 5.82p, up more than 23%. The afternoon saw large sales of shares. Some investors speculated that a share placing was imminent.
UKOG said in the statement the testing programme would now continue until mid-December. The programme would comprise:
- Isolation, acid wash and flow testing perforated zones in four zones of the Kimmeridge Limestones, KL1-KL4
- Perforate further zones in KL1-KL3, isolate, acid wash and flow test
- Cement squeeze in KL4 and KL5 zones, run a new cement bond log, re-perforate the newly cemented section, isolate, acid wash and flow test
The statement said the shrouded flare stack at the site had been operating daily. This, it said, showed a “clean burn of methane and wet gases delivered from the test separator”. Oil samples had been sent for analysis.
UKOG’s Executive Chairman, Stephen Sanderson, said the volume of oil and gas recovered so far “proved” that the Broadford Bridge well, called BB-1z, contained a continuous oil accumulation some 1,400ft thick.
“Our focus now moves to delivering further proof that BB-1z can deliver both commercially-viable rates and volumes of oil to surface.”
“The test results to date are technically significant and highly encouraging and I am confident that the more finely focussed and optimised testing plan can establish commercial viability.”