LONDON (Alliance News) - Solo Oil PLC, Stellar Resources PLC, Doriemus PLC and UK Oil & Gas Investments PLC Friday announced that the Horse Hill-1 well is on schedule to go into test production during July towards planned completion in August.
The four oil and gas exploration and development companies, which all have interests in the Horse Hill-1 site, said that the operator of the Weald Basin site near Gatwick airport, Angus Energy Ltd, said that tenders are now out for the site construction and contracts for the drill rig and key service providers are in the final stages of negotiation.
The Horse Hill-1 well plans to drill 8,512 feet in depth to test conventional stacked oil and gas targets which could contain up to an estimated 671 million stock barrels of oil in place with an estimated total mean recoverable prospective resource of 87 million stock barrels and a possible 456 billion cubic feet of gas in place in a deeper possible Triassic gas play.
"UKOG is pleased with the progress being made to spud this exciting well in the Weald Basin south of London. There is still a great deal of work to be done by the operator with respect to finalising contracts and final permits to drill, however we are optimistic that the planned July spud date is realistic," UK Oil & Gas Investments Chairman David Lenigas said in a statement.
However, UKOG and Doriemus, which both also hold interests in the Brockham Oil Field and Lidsey Oil Field in the UK Weald Basin, announced that a re-completion is being planned to again improve production at the Lidsey Oil Field and applications are now being prepared for this process.
The re-completion means that plans to drill the new Lidsey-2 well at the site during April and May has now been postponed until after the Lidsey-1 well gets its re-completion.
UKOG added that it has also informed Angus Energy that it no longer wishes to proceed with a GBP290,000 transaction to acquire 10% interests in onshore UK Petroleum Exploration and Development Licences PEDL 118 and PEDL 203 as previously planned.
The company said that after a full technical review, these minority interests in the Eakring-Dukes Wood and Kirklington Licences were deemed at too early stage and it is more focused towards near term drilling and production opportunities in the UK.
UKOG shares were down 10.6% to 0.470 pence, Doriemus shares were down 10.0% to 0.0990 pence, Stellar Resources shares were up 2.8% to 0.539 pence and Solo Oil shares were down 1.5% to 0.202 pence on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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