LONDON (Alliance News) - Solo Oil PLC, Stellar Resources PLC, Doriemus Resources PLC and UK Oil & Gas Investments PLC Tuesday announced that civil works have now commenced on the Horse Hill site in the UK Weald Basin.
The companies said civil works are in preparation for the drilling of a proposed 2,646 metre well on the prospect which is designed to test a number of conventional oil and gas targets.
The Horse Hill-1 well is scheduled to be completed by the end of August 2014, testing conventional stacked oil targets at the Portland sandstone, Corallian sandstone and Great Oolite limestone levels.
The operator of the site, Magellan Petroleum Corp, previously estimated 87 million barrels of mean recoverable resources in the levels with an additional 164 billion cubic feet of mean recoverable prospective gas resources in the deeper Triassic play.
"Horse Hill has significant potential to discover oil, but UKOG is particularly excited about the potential of locating significant conventional gas deeper down the Horse Hill-1 well in the Triassic," David Lenigas, an Executive at UKOG, Stellar and Solo Oil said in a statement.
The news comes a day after Doriemus entered an agreement to acquire a 10% interest in the Horse Hill Development Ltd, which is 7.5% held by UKOG, 7.5% held by Stellar Resources and 10% held by Solo Oil.
Horse Hill Development Ltd holds a 65% participating interest in the site, while the remaining 35% interest in the site is held by its operator Magellan Petroleum Corporation.
Stellar Resources shares were up 5.3% to 0.500 pence, UKOG shares were up 4.2% to 0.62 pence, Doriemus shares were up 5.6% to 0.188 pence and Solo Oil shares were trading flat at 0.190 pence Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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