The first horizontal well at the Horse Hill oil site near Gatwick Airport has been completed, UK Oil & Gas (UKOG) has announced.
The well, called HH-2z, will now undergo an extended flow test, expected to begin early next month (December 2019), the company said.
In a statementto investors, UKOG said the well would undergo a “full clean-up” and then be flowed for at least 90 days. It said oil storage capacity would be significantly increased at the site.
After the extended well test, HH-2z and the original vertical HH-1 well would move into production, UKOG said. This transition would need consent from the Oil & Gas Authority. Planning permission for 25 years of production was granted in September 2019.
The HH-2z well has a 2,500ft long section within the Portland reservoir’s most productive oil zone or sweet spot, which should deliver “significantly greater flow rates” than those seen in HH-1, UKOG said.
UKOG’s chief executive, Stephen Sanderson, said:
“Horse Hill’s first optimally placed horizontal is now poised to enter its next key phase, the eagerly anticipated flow testing campaign.
“We remain confident that the 2,500ft of permeable Portland sweet-spot reservoir section, 70 times that seen in HH-1, can deliver significant rates. We look forward to safe and successful EWT operations over the coming months.”
The company said oil production in the extended well test on HH-1 would continue during tests on HH-2z. Total production from HH-1 now stood at more than 78,844, the company said.