(Alliance News) - UK Oil & Gas PLC on Tuesday said horizontal drilling operations have begun at Horse Hill-2z, located on the Horse Hill oil field in the Weald Basin of the UK.
UK Oil & Gas holds an 86% net controlling interest in the Horse Hill oil field. The news was also noted by Alba Mineral Resources PLC, which owns a 12% stake.
The Horse Hill-2 Portland pilot well has been completed, and so Horse Hill-2z horizontal drilling has started. This is aimed at delivering a horizontal section of around 3,200 feet inside the most oil productive zone of the Portland oil reservoir.
As the first horizontal well at Portland, Horse Hill-2z will be kept as a future production well able to deliver "flow rates significantly higher than the previously reported 362 barrels of oil per day from the HH-1 vertical Portland discovery well".
When the extended well testing of Horse Hill-2z is complete, Horse Hill-2z Portland and Horse Hill-1 Kimmeridge are planned to go into long term production before 2019 ends.
Horse Hill-2z will be "actively 'geo-steered' during drilling" to keep it entirely within the most productive zone. It should reach total depth around midway through November.
UK Oil & Gas Chief Executive Stephen Sanderson said: "Our confidence in the HH-2z horizontal's ability to deliver significant flow rates has been further boosted by the pilot well's better than expected geological results. Our subsurface team's focus is now firmly upon steering the well wholly within the target zone, the Portland sweet spot , demonstrably the most oil productive part of the reservoir. I have every confidence we can deliver the desired positive result."
Shares in UK Oil & Gas were up 2.7% at 1.13 pence in London on Tuesday afternoon. Alba Mineral Resources shares were down 5.3% at 0.18p.
By Anna Farley; annafarley@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
Alba Mineral Resources (ALBA)
Uk Oil & Gas (UKOG)