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Stickmandickman
That may be true but any return will be based on the studies that came out of this report as to if there is any value in returning to BB for a future sidetrack as stated.
My understanding was that the reasons for the lower flow rates experienced would not exist with a new sidetrack & a different completion method.
The original value at BB should still be at BB if that is the case & 100% of it belonging to UKOG with no partner buyouts necessary.
The exploration & appraisal data is all held by UKOG who have the decisions to make of if to:
1. Extend the site life.
2. Put in planning for a sidetrack.
3. Restore the site.
UKOG already has a production licence in PEDL234.
Part 3
Whilst the KL flow rates observed to date are likely sub-commercial, we are encouraged by the multiple occurrences of mobile oil observed in the well and their correlation with good calculated oil saturations in electric logs and core analyses. Consequently we are currently exploring new methods and technologies that might enable us to achieve higher sustainable oil rates and commercial viability from the 1400 vertical feet of oil-saturated KL reservoir rock interpreted at BB-1z.
With this in mind, serious consideration is being given to a possible future short sidetrack, BB-1y. The sidetrack's objective would include a selective re-test of the main KL units, likely utilising an alternate completion methodology, new completion fluids, the possible use of small-bore radial drilling and other reservoir stimulation techniques. Any future work at BB-1/1z would likely take place after a successful trial of such alternate methods and technologies in the next planned PEDL234 exploration well. Such future operations will require further in-depth study of the vast amount of data collected during drilling, coring, electric logging and testing before any conclusions can be finalised.
Sorry for the broken up article it is the comments on BB from the UKOG 2016/17 accounts published 29.3.2018 in RNS
It is worth reflecting that, to date, the first two wells of UKOG's KL exploration programme, HH-1 and this year's BB-1/1z have produced Kimmeridge oil to the surface. This is no mean feat for a new play, particularly one involving both the first large-scale potential continuous oil deposit identified in the UK and one reliant on flowing oil to surface via naturally fractured reservoir rocks. Prior to these two wells, only one well (the 1986 Balcombe-1 well) within the Weald Basin's central thousand square mile area had tested the Kimmeridge reservoir, returning Kimmeridge oil to the surface.
Part 2
The flow test campaign also contributed significantly to our understanding of the Kimmeridge play. Flow test inflows and pressure data, together with the specialist analysis of formation image log and core fractures, also demonstrated that the Kimmeridge contains both a local and regionally developed natural-fracture system, key to the future commercial viability of the KL deposit. These fractures are present in both limestones and shales.
Significantly, prior to the testing campaign these fracture-related data showed the key fracture sets to be open, i.e. likely able to transmit fluids under reservoir conditions. Consequently, neither the drilling fluid nor drilling and coring methodology appears to have "damaged" the reservoir (i.e. blocked or plugged fractures surrounding the well bore). As to whether these fractures remained fully or partly open during the necessary pressure draw-downs following acidisation used during testing is currently under investigation.
The ability of these fractures to deliver hydrocarbons to surface at BB-1z without stimulation (i.e. without "fracking") was demonstrated by both the KL5 test and by high initial instantaneous flow-back rates from the KL4 and KL3 test zones of 466 and 719 barrels of fluid per day respectively.
The finding of near identical reservoir geology and geochemistry between HH-1 and BB-1/1z also provided a valuable understanding that the Kimmeridge oil deposit stretches around 30 km across the Weald basin from the north-east at Horse Hill to the southern edge of our 100% PEDL234 Licence, with BB-1/1z likely lying on the deposit's southernmost boundary.
It is worth noting that since BB-1 lies in the extreme south of PEDL234, the well also demonstrates that most of the licence lies within the deposit's most prospective sweet spot. It is in this area where the Upper Jurassic shales are thickest, most deeply buried and have likely generated the most significant volumes of in-situ hydrocarbons.
Consequently, in the light of significant positive technical learnings and understanding of the wider KL deposit gained from BB-1/1z, the Company has accelerated its PEDL 234 drilling plans. We have now selected two further drilling sites in the central area of the licence, the first of which, subject to regulatory approval, should commence drilling in 2019. The required necessary planning application and Environment Agency ("EA") application are currently in preparation and are scheduled to be submitted by the summer.
Whilst the KL flow rates observed to date are likely sub-commercial, we are encouraged by the multiple occurrences of mobile oil observed in the well and their correlation with good calculated oil saturations in electric logs and core analyses. Consequently we are currently exploring new methods and technologies that might enable us to achieve higher sustainable oil rates and commercial viability from the 1400 vertical feet of oil-saturat
Part 1
PEDL234 - Broadford Bridge
The potential and further understanding of the KL oil play has been our prime focus over the past year. The Broadford Bridge-1 and 1z ("BB-1/1z") oil discovery, located in the Weald's largest single licence, the 300 kmĀ² PEDL234, 100% UKOG owned and operated by Kimmeridge Oil and Gas Limited ("KOGL"), delivered on most of its technical objectives, namely: "proof of concept" for the existence of a continuous oil deposit within the Kimmeridge section, the determination of the deposit's lateral extent and supporting evidence for a regionally extensive natural fracture system within Kimmeridge Limestones. Importantly, the fracture system was shown to deliver oil to surface without the need for reservoir stimulation utilising massive hydraulic fracturing ("fracking").
The BB-1/1z exploration well, for which operations ceased in March 2018, was a bold 27 km step-out from HH-1, designed to provide proof of our geological concept that oil within the KL, as demonstrated at the Company's Horse Hill-1 discovery ("HH-1"), was part of a regionally extensive continuous oil deposit. Since the two prior Weald Basin wells which tested and recovered Kimmeridge oil to surface, HH-1 and Balcombe-1, were drilled within well-defined mapped conventional structural features, it was necessary to demonstrate that the BB-1/1z location, without any discernible conventional hydrocarbon trapping configuration (i.e. no structural or stratigraphic closure) contained moveable oil within the Kimmeridge.
Consequently, the multiple live, mobile oil shows seen in cuttings and drilling fluids, light oil seen in open fractures in cores, the recovery of oil and gas to surface from KL1 to KL4 flow tests, together with the light oil flowed continuously to surface from the KL5 test zone, presents further compelling evidence that the Upper Jurassic Kimmeridge of the central Weald Basin contains an extensive continuous oil accumulation. We believe that the data provided from BB-1/1z and analysed to date provides us proof of geological concept.
These live, mobile oil occurrences, together with corresponding rock and electric log data likely demonstrate a KL oil deposit of up to 1400 ft vertical extent exists at BB-1z. Geochemical analyses further support this proof of concept, as all oil samples from both BB-1z and HH-1 analysed to date are determined by Geomark Research to come from the same Upper Jurassic shale source, i.e. the oil lies within or immediately adjacent to the Upper Jurassic rocks where it was generated, one of the fundamental characteristics of a continuous oil accumulation.
The flow test campaign also contributed significantly to our understanding of the Kimmeridge play. Flow test inflows and pressure data, together with the specialist analysis of formation image log and core fractures, also demonstrated that the Kimmeridge contains both a local and regionally developed natural-fracture system, key to t