Industry

UKOG announces solution to formation water problem at Horse Hill

191026 HH Well site DoD

Horse Hill well site. 26 October 2019. Photo: DrillOrDrop

UK Oil & Gas plc has announced it has successfully shut-off the source of formation water that entered an oil well at its Horse Hill site in Surrey.

The company said in a statement it had plugged a section of the horizontal HH-2z well, in what it described as a zone of open natural fractures. The statement said the work was carried out at the deepest part of the wellbore.

The statement also said since plugging, initial tests had “demonstrated a continuous flow of dry oil to surface”.

This confirmed the plug had “eliminated underlying formation water ingress into HH-2z, the company said.

According to the statement, half hourly flow rates had ranged from 10-778 barrels of oil per day (bopd).

UKOG’s chief executive, Stephen Sanderson, said:

“Such water shut-off operations are routinely undertaken in production wells.

“However, success, particularly in horizontal wellbores and where water ingress is via open natural fractures, is by no means guaranteed. Consequently, this is an excellent result for the Company as it has enabled HH-2z to flow dry oil to surface at encouraging initial rates.”

UKOG revealed the water problem just before Christmas 2019. It said on 19 February 2020 that work had begun to tackle the problem.

Today’s statement said the company expected the full clean-up of spent drilling and completion fluids in the wellbore would take “a number of weeks”.

It added: “further interventions are planned to help fine-tune and optimise flow from the well”.

Shares in UKOG fell at the start of trading but have since recovered. At the time of writing (10.48am), they were down 1.75% at 0.56 pence.

9/3 Share price corrected to pence in final paragraph

7 replies »

  1. Shares in all companies across the world fell at the start of trading today! Something to do with a virus and the “modern” systems installed that seem to have an inbuilt over reaction and then an adjustment. (But, don’t rely on the adjustment!)

    If one was skeptical, one might think that such enables the bold to gamble with other peoples money and make profit out of any problem!

    Maybe one outcome of the current situation is that local supply chains will start to have greater focus. Good for HH, good for Donald but a lot of adjustment required in some big industries eg. the vehicle industry.

  2. Please correct the the mistake in the share price, before some desperate punter believes it. I suspect £0.56 is 100x the correct figure?

    • Must be the menace of the predictive text, Dorkinian!

      Mind you, if you want to see an even more humorous bit of media, try the Times today.

      Headlines, front page, written by 4 “journalists”, including a Tom Ball, including a section on “No 10 unit will fight fake news”, then on Page 3 a section about EGGS from same Tom Ball which is the biggest piece of fake news since last April 1st!! I suspect the journos must be having a competition to see who can pen the biggest load of tosh about chickens, having done so well with chlorination. Looks like Tom is not minded that some readers will actually know something about chicken behaviour and chicken genetics.

      (I will not bore you with why it is totally fake, but it is, I assure you. You would think the Times, at £1.80/go could afford an agricultural journalist!)

  3. Somewhat different, Paula C. At HH, they deal with them. Maybe, later on, they can return to Broadford Bridge and use the experience they have gained? That’s exploration for you.

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