Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
According to Nutech and Shlumberger, world leading oilfield analyst and advisers to UK Govt. There is 10 Billion barrels of OIP P50 within the Kimmeridge formation in the HH licence areas alone.
That does not include the Portland Reservoir millions of barrels of oil.
Which is more reliable. The Nutech and Schlumberger scientific calculations, or the Backward man back of a fag packet working out based on a made up assumption to support his personal agenda?
Although rule of thumb is for a horizontal well to produce 3 to 5 times the bopd of a vertical well, many horizontal wells manage 4 to 5 times the vertical rate. Some even more.
So although 600 to 900 bopd should be expected, 1200 to 1500 bopd is not totally out of the question.
All the weekend activity at HH and work expected to progress throughout next week getting HH2z rectification completed should be reflected in a rising SP.
Some large share BUYs recently, especially Friday, with a 4 Million Share BUY at almost the full Ask demonstrates the returning confidence of investors.
HH2z at 2,500m is relatively short for a modern horizontal well, almost half the length of some wells. So far easier to work on than many other wells Halliburton has had to rectify, and onshore to do easier still.
Could be Blue SP all week as HH2z rectification work seems well underway.
According to Halliburton these fixes have been carried out so many times now they are just routine. Also so much easier when onshore, avoiding all those extra difficulties and huge costs associated with offshore wells.
The last official figures given show HH Portland reservoir is producing at 293bopd.
There is also a direct incoming to UKOG from its share of the Horndean oilfield.
Together there would be revenue of over £400,000 per month of consistent production.
Over the last couple of years there has been £Millions of cash from the sale of oil produced at HH, and that is just from well testing of three different levels in two different reservoirs.
There is also an income directly to UKOG from its share in another producing oilfield, Horndean.
The 235 tonnes of storage is just that being retained in the original part of the HH site and is only for Phase 1.
"Phase 1: Well Site Modifications and Workover of Horse Hill-1 (HH-1) and Horse Hill-2z (HH-2z) Wells: all work will be confined within the existing well site retained as part of the appraisal consent."
"This substances consent application relates to Phase 1 works authorised as part of the production consent. It seeks consent for the storage of up to 285 tonnes of crude oil within the confines of the existing well site which has been approved for retention as part of the production consent."
Phase 2 will have additional oil storage within the new extended part of the HH site.
"Phase 2: Installation of Processing, Storage and Transportation Facilities: on a new site to the east of the existing well site..."
To make it clearer:
"For the avoidance of doubt, a further substances consent application would be submitted to authorise Phase 2 works prior to the installation of the new processing, storage and transportation facilities on land to the east of the existing well site."
Lack of confidence is manifest by the panicking down bet holders out in force the last few days as the HH2z rectification has commenced earlier then they had hoped for.
There could be some big bills going out very soon for those caught out.
Was that 3 million + share BUY a few minutes ago someone without confindence.
Those with the down bets seem to be the ones having a big dump as their confidence crumbles. Hence their panicked ramblings over the last few days.