Last checked at 27 Jun 2018 07:00
Gunsynd plc
("Gunsynd" or the "Company")
Production Flow Test Operations Commence
Horse Hill-1 Kimmeridge Limestone and Portland Oil Discovery, PEDL137, Weald Basin, UK
Gunsynd (London AIM: PRIM) is pleased to announce that it has been informed by Horse Hill Developments Ltd ("HHDL"), the operator of the Horse Hill-1 ("HH-1") Kimmeridge Limestone 3 ("KL3"), KL4 and Portland oil discovery, that planned flow testing operations of HH-1 have commenced. All key equipment necessary to carry out a 150-day long-term extended flow test campaign at HH-1 is now on site. The Company holds a 1.3% beneficial interest in licence PEDL137 containing the HH-1 oil discovery.
Following final equipment set-up and the subsequent removal of three temporary suspension plugs in the wellbore, flow will first be re-established from the Portland sandstone oil pool. Testing of each of the KL4 and KL3 oil pools will follow completion of the Portland test sequence.
Extended Well Test ("EWT") Overview
As the 2016 short flow test campaign established commercially viable initial flow rates for each of the Portland, KL4 and KL3 zones, the 2018 EWT's prime goal is to confirm that the wellbore is connected to a commercially viable oil volume within one or more of the three zones.
The long term reservoir performance data is also expected to provide the necessary data to enable, for the first time, Petroleum Resources Management System compliant Kimmeridge and Portland reserve figures to be estimated at Horse Hill.
Each test sequence will include a short, optimised rate test, together with a sequence of "choked back"(i.e. reduced) steady-state flow periods necessary to obtain the data required to determine the connected oil volume within each zone. A series of associated long pressure build up tests are also planned. Oil produced from the EWT will be sold on the "spot" oil market and any revenues will be utilised to offset overall testing costs.
In a move to further minimise environmental impact, the EWT will utilise a new type of clean-burning enclosed flare, a UK onshore industry first. The flare, utilising technology from UK landfill sites, was developed jointly between Landfill Systems, PW Well Test and UK Oil & Gas Investments plc.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
The directors of Gunsynd accept responsibility for this announcement.
For further information please contact:
Gunsynd plc Hamish Harris |
+44 20 7440 0640 |
Cairn Financial Advisers LLP James Caithie / Liam Murray |
+44 20 7213 0880 |
Peterhouse Corporate Finance Lucy Williams |
+44 20 7469 0930
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Glossary:
discovery | a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons |
limestone | a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone |
oil field | an accumulation, pool or group of pools of oil in the subsurface. A conventional oil field consists of a reservoir or reservoirs in a shape or configuration that will trap hydrocarbons and that is covered by an impermeable or sealing rock |
oil pool | a discrete single oil accumulation within a oil field, see definition above |
sandstone | a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to imply consolidated sand or a rock made of predominantly quartz sand. |