LONDON (Alliance News) - UK Oil & Gas PLC and Alba Mineral Resources PLC on Monday said the operator of the HH-1 Kimmeridge Limestone and Portland Sandstone oil discovery has re-established Portland oil production from the Horse Hill-1 well.
UK Oil & Gas subsidiary Horse Hill Developments is the operator of the Horse Hill oil field, located in the Weald Basin of Surrey, southern England. UK Oil & Gas has a 50.6% majority interest in the field, while Alba holds an 11.8% stake. Meanwhile, UK Oil & Gas holds a 77.9% stake in Horse Hill Developments.
The companies highlighted that the resumption of continuous Portland dry oil flow forms a key part of the schedule of works required to finalise the Portland field development plan and to the targeted establishment of permanent long-term Portland production, planned by end 2019.
To-date, the companies reported over 30,200 barrels aggregate Kimmeridge and Portland oil production, with 142 tankers of crude successfully exported primarily to oil & gas company Perenco's Hamble oil terminal in England.
Looking forward, UK oil & Gas said HH-1 test production is planned to continue until the completion of the new HH-2 Portland horizontal well, scheduled to start in spring 2019.
"We are pleased to see the resumption of test production from the Portland Sandstone and look forward to further reports from the operator as the test programme continues," said Alba Executive Chair George Frangeskides.
"The flow test results to date, combined with the prospect of further near-term drilling, place Horse Hill in a strong position to deliver positive free cash flow to UK Oil & Gas in the near and foreseeable future," added UK Oil & Gas Chief Executive Stephen Sanderson.
UK Oil & Gas shares were trading 1.9% lower on Monday at 1.42 pence each, while Alba was up 6.1% at 0.30p a share.
Alba Mineral Resources (ALBA)
Uk Oil & Gas (UKOG)