The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
legalease
What we so far have no idea from from the EWT at Horse Hill is if any tests were conducted on the KL1 and 2 layers.
These as I understand were the deeper Kimmeridge layers and may be deep enough and mature enough to produce oil or gas and may or may not be fractured we don't know.
There was talk of these layers being tested in the EWT but we received no details.
DL always said there was a lot of gas at HH and the reason the well was drilled was based on these figures in the RNS below.
https://www.lse.co.uk/rns/UKOG/update-on-investment-sndio5dg6rfrr4z.html
It may also be a indication as to why they want Loxley and Broadford Bridge data results.
Stevehoops
I wander if we will see a continuous drilling program for Horse Hill of the kind once mooted?
It has been a long time coming!
If this would this be done by UKOG or a farm in would depend on any government funding or if a new CPR was released providing funding or a buy out.
HH now has the potential to become of National importance despite the nay sayers so watch this space.
HH1AN2
My understanding was that the Kimmeridge was sealed.
What it takes to unseal it and re-establish the flow I don't know.
Maybe some of our resident experts with so much knowledge can enlighten us with there wisdom.
HH1AN2
While I am not who Adrian likes to say I am. I am in the same boat and can only hope that we can now see some progress.
I don't know how much control UKOG has in its 50/50 partnership with AME but they are the operator. Hopefully sooner rather than later.
News on the recompletion of HH2 and review of re-establishing the Kimmeridge production could come at any time.
I'm not sure if flowing the Kimmeridge again from HH1 requires any regulatory approval or if it just needs opening up the sealed shut in well that produced well after being shut in following the 2016 flow tests.
If the dollar rate changes another 20 cents in the next 12 months as it has in the last 12 it will be $1 to £1.
That would mean at $100 per barrel for 100 BOPD £10,000 per income. Lets see where water injection takes us.
Ibug
UKOG can now proceed ahead with its plans to convert Horse Hill-2z into a water injector during 2022, which, if implemented, would remove the need for costly transportation and disposal of produced saline formation water at remote third-party sites. The initial application for the PP was submitted to the EA 31 months ago on 24 September 2019.
Following the PP grant a review of the viability of reinstating Kimmeridge production and further new Portland infill drilling locations are now under way
If UKOG can add the water injection to HH2 with production returning to 200 - 300 BOPD from the HH1 Portland while reopening the Kimmeridge section we could see 600+ BOPD from HH1.
Revenue from production was only ever calculated at $70 per barrel with costs estimated at $11 per barrel.
These new figures would soon see a turn around in sentiment and profits providing cashflow for further development.
What we now need is the final regulatory approval and positive progress.
Despite the doom and gloom mongers death cries there has been no placing.
The last Kimmeridge flow update was:
Immediately following the current HH-2z shut-in, flow lines were reconnected to HH-1 and dry Kimmeridge oil flow was resumed on 18 December at an initial half-hourly rate of 354 barrels of oil per day ("bopd") with an average daily rate of 301 bopd.
Sting69
They said that they are looking at reproducing from the Kimmeridge layer now that production permit has been granted. From memory during testing it produced 400 BOPD but we don't know what was possible if the taps were opened. I believe that we did see 4 tankers on occasion, was that a taste of things to come.
I believe that they closed of the Kimmeridge production. If it can be reopened with regulator approval things could change quite quickly here.
I'm still in hold tight!
Germany nearly ready to embargo Russian oil.
https://oilprice.com/Latest-Energy-News/World-News/Germany-Could-Ban-Russian-Oil-In-Days.html
New supplies will be needed to meet changes in European demand. There is no pipeline accross the Atlantic Ocean.
This also leaves oil prices vulnerable to heading higher.