Results of well testing at the Horse Hill oil exploration site in Surrey have exceeded expectations, the leading investor said this afternoon.
In a statement to investors, UK Oil & Gas plc (UKOG) forecast that the Portland formation could achieve a production rate of 362 barrels of oil per day (bopd). This would put it in the top five onshore oil wells in the UK.
UKOG said plans were being made to extract oil from the Portland using a sidetrack to the existing well (HH-1) or a new horizontal appraisal well (HH-2). The target production rate of the new well would be 720-1,080 bopd, the statement said.
Horse Hill has all the necessary planning permissions and environmental permits for the new wells. A planning application to Surrey County Council for long-term production was expected soon, UKOG added.
The statement said the HH-1 Portland formation was “robustly commercial” at 140 bopd and oil prices below $60 per barrel.
The tests re-perforated the Portland section of the HH-1 well, resulting in an increase in productivity of up to 65%, the statement added.
Stephen Sanderson, UKOG’s chief executive, said:
“We are delighted that the HH-1 re-perforation and optimisation programme has resulted in the forecast sustainable Portland production rate of 362 bopd, which significantly exceeds our initial test programme expectations.
“This high rate, together with our economic modelling, strongly indicates that the HH-1 Portland vertical well is commercially viable and robustly economic at the lowest observed sustainable test rates and the predicted future sustainable production rates.
“We also look forward to the near-term prospect of a new Portland horizontal appraisal well attaining a sustainable test rate in early 2019. This commercial result would make the Portland a significant asset and would underpin both the Horse Hill oil discovery’s and the Company’s future.”
The UKOG statement said Portland production after perforation had been restricted to what it described as a sustainable 24/7 rate of 140-160 bopd. It added that this did not reflect the Portland’s full flow potential from “further optimisation” of the HH-1 well or a new horizontal production well.
UKOG said preparation was now underway for extended well tests on what the company regards as the primary target at Horse Hill, the Kimmeridge Limestone (KL) formation.
The tests aim to establish whether the KL3 and KL4 zones of the vertical well are commercial.
Investors do take responsibility for their actions, Sherwulfe. Nobody forces their actions. Quite understand you don’t want to join them.
Yours however is a minority view and whilst you seem to have a compulsion to force diverse minority views upon the majority you may find it will not be helped by quoting fake news to encourage and excite. Goodness, some may feel the argument is flawed if it relies on false information.
Some bedtime reading for you, oh sorry, you have already gone; tomorrow then….
‘have a compulsion to force diverse minority views upon the majority you may find it will not be helped by quoting fake news to encourage and excite’ – you should take your own advice.
Time is ticking
The oil is slicking
The investors are kicking
Call your yourself Ecco warrior sherwolf .[edited by moderator] Give up your weekends and clean up your and your friends Ecco s-it at Leigh hill and all your other protest site .We residents are sick to death of you .You rather import from half way around the world .It far Ecco to produce close to where supplies of oil /gas needed .Uk Energy for U.K. Consumers
Hey Slade; I’m sorry you are so angry at society and are unable to grasp the important things in life…..
Just to put the record straight, resident of Leigh hill, I have never called myself an Ecco or even Eco Warrior.
[edited by moderator]
There are many different perspectives on life, and too many judgmental individuals who put themselves above others. It would be better if a conversation is begun to make a peaceful solution to your anger. One day you may find yourself on the other side of the fence, like Martin and his Gypsies. There is no right or wrong, judgement only serves to incite conflict. Take a moment to understand the other’s point of view and you may find yourself conversing with a real human rather than a perceived threat.
My reply to your guardian article.You have not put in to the equation North Sea oil production is in serious decline 75 % less production in 12 years .Where do you think uk oil/gas needs will come from ??.Oh yes just maybe from onshore cheaper to produce Weald basin production Viva all upstart small oil companies ukog angus energy.Putting there necks on the line to supply your personal oil needs and the uk .Or are we going to be held to ransom from the likes of Russia and co [edited by moderator]
sorry oh wise one [not] this is old PR; keep up…
Ah, but there you go again Sherwulfe, stating fake news. “Martin and his Gypsies” was a statement of fact-ie. illegal occupation of land next to a property that flouts all planning controls will decrease that property valuation. Absolutely correct. The statement also included Martin’s direct contact with part of that community and clearly identified that there were, like all communities, some who were sociable and those who were not. But, you want to do your virtue signalling and change the reality to support that.
Might be better to find a situation where you don’t need to change the reality to enable your virtue signalling. There must be plenty available. “Big corporations pay no tax” was not a good one either. But, keep trying-you will hit the dart board one day but maybe not the bull.
For someone who has continually shown lack of empathy for anyone on this site who disagrees with your views Sherwulfe your “conversion” is as fake as your news. Good try, but history is against you.
Perhaps you may look again at the story you have woven about the Travellers; seems there is more to this than meet the eye?
You may wish to read some of my posts, there are moments of conversation, even with you, that have shown an appreciation for all views…sadly the same cannot be said about yourself?
You can keep screaming fake news just as Trumpton does when the truth does not suit, but you have no takers am afraid…..
The only poster hitting the bull [s_it] is you 🙂
Only time will tell; it appears some of us may have more patience than others; seems the shaky shaky has been put off again? sigh
Perhaps Slade, that’s why £500m more is planned for investment by Exxon Mobil into Fawley! To increase diesel production for the 4X4 drivers in Surrey and Sussex.
Oh, by the way Sherwulfe, INEOS investing another £60m into Grangemouth. Should reduce their taxation a little bit.
No, just put them in more debt….
I appreciate all views that are founded in fact Sherwulfe. When they are fiction they are not views but poor attempts to excite and confuse, and an insult to their target audience.
“No, just put them in more debt…” Thanks for the demonstration.
“The truth does not fit”?? No, the anti truth doesn’t-some of us remember 1984.
Quite interesting are that the antis who used to post and kept reasonably close to facts have disappeared, or have converted to the dark side. Now, what does that indicate?
…sorry MC, not convincing enough; gotta know what you’re talking about to be credible, and that last post is not….