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Pboo - when I mentioned water I was talking about onshore UK fields in general - a lot of the smaller ones have been killed by water transport issues

As you say not only has Horse Hill not seen any water to date (which is remarkable and a MAJOR positive - think of Brockham....) but they are also planning an injector - hopefully they'll get the water for that from another formation under the site and not have to truck it in.

its fairly complex - see

https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/dttl-er-UK-oilandgas-guide.pdf

Basically you have to remember that they can recover their past expenditures on the field before paying the full rate of tax - CT at 30% plus Special CT at 10%

I'd expect them to make between $ 10 -$ 30 a barrel after all costs and taxes....................

Onshore UK the killer is if you have to truck large amounts of water..................

Bridgedog - useful post

You can see it from the Council's side - hundreds of loony submissions, threats of expensive court cases by both sides - they're damned if they do and damned if they don't... so they have a herd of lawyers at everyone's elbow to make sure that if it goes to court they are fire proof

TBH in the same position I'd do the same.......

This is ridiculous - not a shred of evidence ..............................................

Even Dave L gave up on ramping Lidsey - its a dog, it was always a dog and its still a dog

look at the Relinquishment reports filed withe OGA by previous operators.................

We really don't know one way or another until they open that valve.....

I would say that Lucan isn't as convinced as JT or Vonk that it will flow - or that it will flow really well

I'd guess they've looked at what they did and then compared it to Horse Hill and Broadford Bridge and there is still a niggling worry that something may go wrong. But this is the oil business and it's a big risk every time - especially in a totally new and unknown reservoir

"If the rig at West Newton could be serviced on site why isn't it at Horse Hill."

I've pointed out a dozen times that the lack of news from HHDL suggests to me it's actually going elsewhere for 2-3 weeks to do a short job for maybe Centrica or IGas.

Sanderson may have hoped the planning meeting would be this week and wanted to keep the rig away from any swampies while the meeting was on

It really doesn't matter in the medium term..............

I can't see the point in selling now and taking a big loss - it's mad money so I'm letting it ride

I have to say that Lucan looks to be playing the game properly - it's almost as if we have decent management at last....

My big worry is that if Brockham has any issues where are we then? Nothing at Lidsey, no planning approval for Balcombe and Saltfleetby probably 1-2 years away for positive cash flow..

Nail biting TBH

I doubt it is "faulty" - more that they will need to pull and repair parts, change out connectors and check life expired items

TBF HHDL/UKOG know the rig very well and I'm sure they have been all over its performance at W Newton.

As for rates any maintenance will be done at zero cost to HHDL - and it might as well be done at Horse Hill rather than West Newton - for a start a rig actually at Horse Hill will send more positive signals to investors rather than having it at W Newton on another promise.

How long is a piece of string?

TBH they are really on production right now albeit at low rates (which are still higher than most UK Onshore fields)

Officially to book reserves and to get underway they need OGA approval and that won't come without local Planning Permission first.

Then each horizontal well takes 40-60 days drilling then a couple of weeks messing about installing a production string, pumps etc etc and hooking up the pipework.

They currently have permission for (not production permission but hey ho) for a vertical well and a horizontal - say 300+ from the vertical optimized and 1000 bopd from the horizontal. They then add 1000 barrel a day from each horizontal as it comes on - so 4 or 5 producers at 1000 a day plus a water injector in the plan by end 2020 I'd guess

Each well will gradually decline in production with time so it may require work overs, more injectors, more producers

The question they may be wrestling with is what to do about the other locations - they may need another rig for exploration if they keep drilling at Horse Hill with the BDF 28 (which I think they should) and that has a whole different set of problems,

"RIG will be serviced at West Newton before coming down to HH---unofficial of course but maybe credible"

very credible - unless something has gone horribly wrong with it it shouldn't have to go back to the BDF base near Nottingham.

On the other hand I'd guess the W newton guys will want it off site ASAP as they have other fish to fry now and they'll need the space. So any maintenance may well be done on arrival at Horse Hill - obviously at a zero day rate.

Tho as I've said it wouldn't surprise me if it goes to Caythorpe or IGas for a couple of weeks , Once HHDL have the rig it wont be available for anyone else for a long time which means they're faced with bringing a cold stacked rig into action for a small job - which is highly unattractive. BDF might well offer HHDL a better deal if they can use the rig elsewhere first.

When they drill a new bore it 'll only be a few metres from the current HH1 bore which is producing.

You can see the risks without being a driller . It can be done and is often done offshore with care.

I t wouldn't surprise me if they took a more careful approach and stopped producing for a week or so until they get down a few hundred metres at which point they can case the new bore and then steer the hole a bit further away from the current producer.

Still no update on the rig - I'm wondering if the rig might just be going u the road to Caythorpe to abandon that field (2-3 weeks)

https://caythorpegasstorage.com/news/caythorpe-restoration/

They were planning to abandon it this year but I don't find anything to say its been done - and once the BDF 28 gets to Horse Hill it'll be there for the rest of the year probably.

This way HHDL can keep producing, get in Centrica's good books ( a good thing to have) and have a couple more weeks to sort out the Alba/Doriemus situation which seems to be bubbling away underneath

This way UKOG/HHDl can contract the rig for a really long programme - which is cheaper and better than a couple of shorter ones.

"Still similar to Horse Hill, still more kimmeridge layer than HH, still much better prospects than HH, especially Balcombe"

but one small difference - Horse Hill has produced AND sold 25,000 barrels of oil from the Kimmeridge whereas Angus............

and don't mention rates - ask them how much OIL they produced IN BARRELS and where is it stored - 'cos it hasn't been sold...............

I'm not surprised Lucan is playing this long and careful - he clearly isn't totally convinced................

If they can get even 200 barrels a day it will be a major step forward and will , at long last, maybe move this investment back up.

Does anyone read the posts?

The rig will take 10-12 days to get off site at West Newton starting today. It might start appearing in drib & drabs at Horse Hill over the next week (but I doubt it - I really suspect its going somewhere else until after the July planning
meeting)

Remember NO TRUCKS are allowed onto Horse Hill from lunch on Saturday to dawn on Monday - planning restrictions. These things are 40-60 truck loads of kit and much of it is very slow moving...............

What are you talking about? there was never a mention of another RNS this week

all they said was that they were working towards finalizing the rig paperwork this week..... it may or may not be finished and they may or may not issue an RNS about it

Yannis

I think you're sailing close to the wind accusing people

"They are systematically chipping at the bid to drive the SP down and personally I am convinced that JTP/GL (and DL?) are complicit to this. "

One day someone might come after you .................... you can't just fling accusations about for Gods sake

As Alan says - why not wait until next week ........

Ok looks like the rig will start demobilizing from West Newton around 28th June ASSUMING NOTHING GOES WRONG........

A lot depends if there is contract from either HHDL or someone else for it's next job - if it has a contract it will go directly to the new site (as it is currently "Warm" no maintenance at home should be required). It will take 7-10 days to move and rig up at the next site .

I hope this is Horse Hill but I'm beginning to believe that maybe, just maybe, HHDL would be happy to see it do another, maybe small, job to take them past the Planning Meeting date - the last thing they want are swampies in the road and rig surfing whilst the decision is taken...................

Where else could it go? looking at Drill or Drop etc I can't see it's going to Brockham - that's a serious piece of kit for any work so far indicated by Lucan & Co. Maybe Bletchingley were Igas have permission to do more work - or Caythorpe which should be abandoned this year....... stick the rig there for another 3-4 weeks and turn up at Horse Hill in 1st week of August.........

Rigs cost anywhere from US10mm - $80 million to buy in the USA and then you have to ship and pay VAT etc.

Wells? How long is a piece of string ??

But it's hard to do them for less than £ 2 million these days and it could cost over £ 10 million depending on depth etc etc

But NO oil company owns it's own rigs - you have all the storage, maintenance, crew issues and it's a terrible diversion of money and management attention.

From Drill or Drop last night:-

"The community liaison group also heard that the well being drilled at West Newton had reached the target depth of 2060m.

The well, the second at the site, is exploring the Cadeby and Kirkham Abbey formations for both oil and gas.

It was reported that a wireline log of the lower parts of the well had been taken and sent for analysis. The rest of the well casing would now be installed.

It was also reported that the rig at the site would be demobilised in the next 10-12 days. This would be followed by a period of low levels of activity at the well site."

Now lets see where it goes.....