LONDON (Alliance News) - Two London-listed companies which hold stakes in the Horse Hill oil field in southern England, on Friday said that aggregate test production from the field's Portland reservoir now has exceeded 10,000 barrels.
UK Oil & Gas PLC, with a 50.635% interest in the Horse Hill well, operated by its subsidiary Horse Hill Developments Ltd, said that the continuous Portland dry oil flow, at a daily average rate of over 220 barrels per day, forms a "key part" of the schedule of works required to finalise the Portland field development plan.
Drilling of the HH-2 and HH-1z Kimmeridge appraisal/production wells is targeted to start in spring 2019, the firm added.
Uk Oil & Gas Chief Executive Officer Stephen Sanderson said: "The Portland's continued excellent production performance, particularly from a non-optimised vertical well, provides building confidence that the previously reported 720-1,080 bopd horizontal well production targets are increasingly attainable."
"This programme puts UKOG in a strong position to deliver real growth and positive cash flow in the near future."
The results were also noted by Alba Mineral Resources PLC, the owner of a 11.765% interest in Horse Hill Developments.
Shares in UK Oil & Gas were trading down 1.1% at 1.29 pence each, while Alba Mineral shares were down 4.0% at 0.24p.
Alba Mineral Resources (ALBA)
Uk Oil & Gas (UKOG)