(Alliance News) - UK Oil & Gas PLC on Wednesday announced the successful implementation of simultaneous drilling and test production operations at Horse Hill in Sussex.
UKOG holds a controlling 86% interest in the Horse Hill oil field and surrounding licences. Alba Mineral Resources PLC, a mineral exploration firm, holds a 12% interest.
Horse Hill-1 has continuously produced oil from the Kimmeridge shale formation at Horse Hill since the Horse Hill-2/2z horizontal drill campaign started on September 29. Total test production from Horse Hill-1 is currently 41,800 barrels of light, sweet 40 degree API crude.
Combined aggregate production from the Portland and Kimmeridge shale formations at Horse Hill now exceeds more than 71,368 barrels in total. Thus far, no Kimmeridge formation water has been recovered to surface.
Safe simultaneous drilling and test production operations or "sim-ops" let UKOG collect necessary reservoir performance data from Kimmeridge while at the same time generating oil sale revenue to offset operation costs," UKOG said.
Both Horse Hill-2z Portland and Horse-Hill-1 Kimmeridge are set to start long-term production by 2019-end.
UKOG Chief Executive Stephen Sanderson said: "The establishment of safe and innovative sim-ops at Horse Hill marks another significant operational milestone for the company in 2019."
Shares in UKOG were up 1.5% at 1.09 pence in London on Wednesday morning. Shares in Alba were down 5.3% at 0.18 pence.
Alba Executive Chair George Frangeskides commented: "It is pleasing to see HH-1 test production being successfully maintained at the same time as drilling operations are ongoing for HH-2. This bodes well for the future of the Horse Hill oil field as a long-term producer from multiple wells."
By Anna Farley; annafarley@alliancenews.com
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Alba Mineral Resources (ALBA)
Uk Oil & Gas (UKOG)