Solo Oil (LSE: SOLO) announced an oil discovery at Horse Hill this morning -- and as I write, the firm's shares are down by more than 10%. The explanation is simple: although today's news confirms that the Horse Hill-1 well has found oil, the amount found appears to be far below pre-drill expectations. The first (Jurassic) stage of the well has found oil in only one of the four targets that original well operator Magellan specified before drilling. Jurassic disappointment The discovery, which was made in the upper Portland Sandstone interval, only appears to contain an estimated 3.1m barrels of oil in place -- compared to pre-drill estimates of 57 million barrels. Today's announcement from Solo also refers to the lower Portland Sandstone interval having a gross unrisked in place prospective hydrocarbon volume of 16.8 million barrels of oil. However, it turns out that the Horse Hill-1 well has not discovered this interval, which appears to be located further south than thought. In other words, the well has missed this target completely. The key numbers Here's a comparison of Magellan's pre-drill estimates versus today's reported results:
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