LONDON (Alliance News) - UK Oil and Gas Investments PLC Friday said it has signed an alliance and consulting services agreement with US company NUTECH Energy Alliance Ltd in order to maximise the potential value of the Horse Hill license areas in the UK.
NUTECH is a oil service provider specialising in reservoir evaluation and optimisation and will assess the reservoir parameters at the Horse Hill development, including the amount of oil in place and rock mechanical properties, said UK Oil.
NUTECH has analysed over 20,000 wells in North America over a 13 year period, alongside evaluating 381 UK onshore wells, including 133 wells in the Weald and Wessex basins, said UK Oil.
As part of the alliance agreement, NUTECH will also supply data on previous evaluations of wells on the PEDL137 and PEDL246 licenses which surround the Horse Hill development.
There are seven companies with a stake in Horse Hill Developments Ltd, a special-purpose vehicle which owns a 65% participating interest in the Horse Hill licence. The remaining 35% is held by Magellan Petroleum (UK) Ltd, a subsidiary of Magellan Petroleum Corp of the US.
UK Oil & Gas Investments PLC owns a 20% stake in the vehicle, with Doriemus PLC, Stellar Resources PLC and Solo Oil PLC each holding 10% stakes and Regency Mines PLC and Alba Mineral Resources PLC each owning 5% stakes. Angus Energy Ltd, a company in which UK Oil & Gas Investments has a 6% stake, holds the remaining 40% of Horse Hill Developments.
Only UK Oil and Gas have released a statement concerning the agreement with NUTECH, and it is not clear whether the deal has been signed just with UK Oil and Gas or with the other partners in the project as well.
"I am delighted that the company will gain access to NUTECH's proven global technical expertise, unrivalled experience and extensive industry network in this specialist field, to help us fully understand the potential of the Horse Hill-1 discovery and its implications for our appraisal and wider exploration objectives," said Stephen Sanderson, chief executive of UK Oil and Gas.
UK Oil and Gas shares were up 14.3% to 0.440 pence per share on Friday morning.
Doriemus shares climbed 6% to 0.0530 pence per share whilst Stellar shares dropped 5.9% to 0.320 pence per share. Solo shares fell 2.1% to 0.470 pence per share and Regency shares were up 4.8% to 0.110 pence. Alba shares were up 3.7% to 0.285 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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