Last checked at 9 Mar 2016 07:00
Stellar Resources plc
("Stellar Resources" or the "Company")
Further Update on Horse Hill-1 Flow Test
Portland Zone Flows Oil at a Sustained Rate of 168 Barrels Per Day
Stellar Resources (AIM: STG, ISDX: STG) announces that Horse Hill Developments Limited ("HHDL") has informed the Company that 37-degree API, light, sweet, dry (99-100% oil) crude has flowed to surface, via rod pumping, at an average stabilised rate of 168 barrels per day over a continuous 9-hour period. The flow is from a 103-ft aggregate perforated zone within the Upper Portland sandstone interval at a depth of approximately 615 metres below ground level. Maximum flow during this test period was restricted by the initial rod pump configuration. The flow test will now continue with a pump configuration designed to permit optimal flow over a longer flow period.
The Horse Hill-1 ("HH-1") well has now produced at a combined average stable rate of over 1,528 bopd from the two Kimmeridge and Upper Portland zones..
Horse Hill-1 Discovery Well and Licence
The exploration drilling phase of the HH-1 discovery well was originally completed at the end of 2014. The well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. Stellar Resources owns a 6.5% interest in PEDL137.
Jeremy Taylor-Firth, Non-Executive Chairman of Stellar, commented:
"We congratulate the Horse Hill Team on their continued success and look forward to further news"
Interest in Horse Hill
Stellar Resources owns a 10% direct interest in HHDL. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.
Qualified Person's Statement:
Stephen Sanderson, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.
For further information please contact:
Stellar Resources plc: +44 (0) 20 7440 0640
Alastair Clayton
Nominated Adviser:
Cairn Financial Advisers LLP +44 (0) 20 7148 7900
James Caithie / Sandy Jamieson
Broker:
Optiva Securities Limited +44 (0) 20 3137 1902
Christian Dennis / Jeremy King
Public Relations:
Square1 Consulting +44 (0) 20 7929 5599
David Bick
Glossary
choke | Device incorporating a fixed or variable orifice that is used to control fluid flow rate during testing of an exploratory discovery |
degree API | A measure of the density of crude oil as defined by the American Petroleum Institute |
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 |
extended flow test | a flow test, as per the permission granted by the Oil and Gas Authority, with an aggregate flow period duration over all zones of greater than 96 hours and up to 90 days maximum. |
flow test | a flow test or well test involves testing a well by flowing hydrocarbons to surface, typically through a test separator. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate |
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 |
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. |
sweet oil or crude | A type of oil that contains less than 0.42% Sulphur |