UK Oil and Gas, the major investor in the Horse Hill oil site in Surrey, has forecast that permanent production would be underway by next winter.
This will follow extended well tests during this year on the current HH-1 well and two new boreholes, the company said.
In a statement to investors, the chief executive, Stephen Sanderson, said:
“UKOG aims to deliver near-continuous oil production throughout 2019 via a combination of long-term testing of HH-1 and two new wells, followed by a smooth transition into permanent production in the winter.”
The statement said UKOG planned to continue the current extended well test on HH-1 until spring 2019.
It would then “move directly” into the drilling and long-term testing of two new horizontal wells, to be called HH-2 and HH-1z, the statement said. Planning permission was granted for this work in Ocober 2017. UKOG said environmental permits and funding for the work were also in place.
A new planning application for another four wells and long-term production at Horse Hill was submitted to Surrey County Council in December 2018. UKOG said it made an application for an environmental permit for this work last week (10 January 2019). Details of the permit application have not yet been published by the Environment Agency.
On the four extra wells, the statement said:
“It is anticipated that all necessary permits should be in place by autumn 2019, enabling a transition from EWT [extended well test] production into permanent production during winter 2019.”
Flow test data
The statement also gave details of the current extended well test on HH-1, which has been underway since June 2018.
It said the company had now produced more than 25,000 barrels of oil. Of this, more than 21,000 barrels had been produced from the Kimmeridge limestone. 114 tankers had been exported to the Hamble oil terminal, the company said. No formation water had been returned to the surface during the entire well test.
The company said 2,192 barrels were produced in late November from the KL4 section of the well. The flow rate was said to be 584 barrels of oil per day (bopd) based on the maximum measured over half an hour.
UKOG also said the KL3 and KL4 zones were now regarded as a single oil pool and the company had decided to produce from both sets of perforations at the same time. Flow rates from both sections varied from 303- 525 bopd.