(Alliance News) - UK Oil & Gas PLC has finished site work ahead of the drilling of a new well at Horse Hill, it said on Thursday, just a day after planning permission was received.
Work has ended ahead of the arrival of a rig, which will drill the Horse Hill-2/2z well into the Portland formation.
UKOG did have to halt test production from the Horse Hill-1 well temporarily to allow this work to carry out, but has resumed, although it will have to be stopped temporarily once again when the rig arrives.
Before the shut-in, Horse Hill-1 reached a total of 36,559 barrels of oil over the final 48-hour test period.
UKOG expects the rig for the second well to arrive late in September, with drilling work to take around 30 days.
On Wednesday, the firm said Surrey County Council had granted planning permission for oil production at Horse Hill lasting 25 years, at up to 3,500 barrels a day. It also Wednesday took its stake to 86% from 51%, for GBP12 million.
Chief Executive Stephen Sanderson said on Thursday: "Following our transformational acquisition of a further 35% interest in Horse Hill, our attention is now firmly refocused upon the Portland oil pool and the drilling of the much anticipated HH-2/2z Portland horizontal well, a key step towards establishing significant long-term production and cash flow from Horse Hill by the end of the year.
"Meanwhile, the Kimmeridge continues to produce solidly and beyond our technical expectations, which bodes extremely well for the future Kimmeridge development at Horse Hill and elsewhere in our licences in the Weald Basin."
Alba Mineral Resources PLC noted UKOG's announcement on Thursday. It holds 12% of Horse Hill.
UKOG shares were 4.0% lower on Thursday at a price of 1.20 pence each, with Alba down 7.1% at 0.20p.
Alba Mineral Resources (ALBA)
Uk Oil & Gas (UKOG)