(Alliance News) - UK Oil & Gas PLC said Wednesday it was ready to start an extended well test of one of its second Horse Hill wells in the Weald Basin of Surrey.
UK Oil & Gas owns an 86% interest in the Horse Hill PEDL 137 and PEDL 246 licenses, with Alba Mineral Resources PLC holding a further 12% interest.
UK Oil & Gas said it completed the Portland horizontal well at Horse Hill-2z and temporarily suspended it as a future oil-production well. HH-2z is now ready to start an extended well test campaign.
This is anticipated to begin in early December.
The HH-1 Kimmeridge early well test production has also been shut-in temporarily amid the rig-down operations at HH-2z. Oil production at the EWT of HH-1 had been ongoing during the drilling of HH-2z, and will resume alongside production from the HH-2z EWT.
In total, HH-1 had produced over 78,844 barrels.
"Preliminary HH-2z electric log analysis suggests the horizontal trajectory has penetrated good to excellent reservoir quality and high oil saturations throughout the 35 foot thick sweet-spot zone," UK Oil & Gas said in a statement.
"The drilling fluid density required whilst drilling the horizontal is also strongly indicative that HH-2z has penetrated an area of the Portland oil pool with significantly lower pressure depletion than expected, a positive indication for possible larger connected oil volumes than previously recognised," UK Oil & Gas added.
The HH-2z EWT will start with normal clean up operations at the site. Following clean up, the well will be flowed for 90 days to assess stable production performance.
Following the EWT, UK Oil & Gas expects to transition both HH-2z and HH-1 "seamlessly from test production into long-term stable oil production".
Chief Executive Officer 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 2,500 feet 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."
Shares in UK Oil & Gas were marginally lower at 1.02 pence in London on Wednesday, Alba down 6.1% at 0.16p.
By Ahren Lester; firstname.lastname@example.org
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