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LONDON (Alliance News) - UK Oil & Gas PLC and Alba Mineral Resources PLC on Friday said extended well testing operations are now underway at Horse Hill in Surrey.
The Horse Hill-1 Kimmeridge limestone and Portland sandstone oil discovery is located in licence PEDL137, in which UK O&G holds a 47% interest. Alba holds a 12% beneficial interest in PEDL137 and its adjoining PEDL246 licence.
UKOG's subsidiary, which operates Horse Hill-1, said the Kimmeridge limestone 4 flow sequence operation has begun. This follows a prior extended well testing of Portland sandstone.
Oil & gas consultancy group Xodus has now delivered its own report on Horse Hill-1, saying the single well has estimated, approximately, between 7 million and 11 million connected barrels out of the total estimated full field oil in place.
"Based upon modelled production profiles and oil recoveries, the operator believes this to be a commercial connected oil in place volume for a single well and that it supports the operator's envisaged multi-well Portland oil drilling and production programme," said Alba.
The Horse Hill Portland and Kimmeridge long-term scoping report has now been submitted to Surrey County Council, with plans including six production wells. A planning application for production must be submitted to the council before the 2018 extended well testing programme is complete.
A number of disposals by Horse Hill stakeholders mean Alba and UKOG are the only AIM-listed participants remaining in Horse Hill.
Former companies involved were Solo Oil PLC, Gunsynd PLC, and Primorus Investments PLC.
"The Portland continues to out-perform our initial expectations and looks set to provide the production and cash flow base that can underpin UKOG's future growth," said UKOG Chief Executive Stephen Sanderson.
"Our immediate operational focus now switches to the Kimmeridge extended well testing, which, if successful, has the potential to make Horse Hill one of the UK's leading onshore producing oil fields," Sanderson added.
Shares in Alba were down 1.5% at 0.41 pence on Friday while UKOG shares were down 1.4% at 1.95p.