Last checked at 4 Mar 2014 07:00
Stellar Resources Plc
("STELLAR" or the "Company")
Work commences on Horse Hill-1 well in the UK Weald Basin.
STELLAR is pleased to announce that civil works have now commenced on the Horse Hill site in the UK Weald Basin in preparation for the drilling of the proposed 2,646 metre (8,680 feet) Horse Hill-1 well on the Horse Hill Prospect, which lies about 3km from Gatwick Airport and is designed to test a number of promising conventional oil and gas targets.
The Horse Hill-1 well, which is scheduled to be completed by the end of August 2014, is planned to test a number of conventional stacked oil targets at the proven productive Portland sandstone, Corallian sandstone and Great Oolite limestone levels. Prospective recoverable resources totalling a mean 87 million barrels ("mmbbls") have been estimated; with an additional mean 164 billion cubic feet ("bcf") of recoverable prospective resources proposed within the deeper Triassic gas play.
David Lenigas, the Company's Chairman, commented:
"The Horse Hill-1 well, one of the deepest to be drilled in the Weald Basin, has significant potential to discover oil, especially after the results of Esso in the 1960's, but the Company is particularly excited about the potential of locating significant convention gas deeper down the Horse Hill-1 well into the Triassic."
STELLAR has a binding agreement in place to own a 7.5% interest in Horse Hill Development Ltd ("HHDL"), a special purpose company, which now owns a 65% participating interest and operatorship of onshore licence PEDL137 ("Horse Hill") in the UK Weald Basin.
Horse Hill Prospect:
The participants in the Horse Hill-1 well are Horse Hill Development Limited with a 65% participating interest and operatorship of the licence and Magellan Petroleum Corporation with a 35% interest.
As previously reported, the 99.29 square kilometres (24,525 acre) Exploration and Development Licence No. 137 ("PEDL 137") is located in the Weald Basin in Surrey.
The Horse Hill Wood Prospect lies about 3 kilometres from Gatwick Airport and covers an area of up to 16 square kilometres in the south-west of PEDL 137. The trap is a seismically defined tilted horst structure, similar to the Palmers Wood oil field which lies only about 20 kilometres to the north-east. The Collendean Farm-1 well, drilled by ESSO in 1964, lies on the north-eastern edge of the Horse Hill structure and found good oil shows at various Jurassic levels. Recent seismic re-interpretation suggests that the Collendean Farm-1 well was drilled off structure on the downthrown side of the bounding fault and outside closure.
The Triassic reservoir has yet to be tested in this part of the Weald Basin and if present is likely to be gas charged.
The Horse Hill Prospect's OIP and GIP and Prospective Resources estimated by Magellan are summarised in Table 1 below.
Table 1: Horse Hill Prospect estimated OOIP, OGIP and Prospective Resources.
Target Reservoir Oil | OIP Upside Potential (mmbbls) | OIP Mean (mmbbls) | Prospective Resources Mean (mmbbls) |
Upper Portland Sandstone | 116 | 57 | 17 |
Lower Portland Sandstone | 284 | 147 | 44 |
Corallian Sandstone | 67 | 33 | 10 |
Greater Oolite Limestone | 204 | 104 | 16 |
Total Oil | 671 | 341 | 87 |
Target Reservoir Gas | GIP Upside Potential (bcf) | GIP Mean (bcf) | Prospective Resources Mean (bcf) |
Triassic Sandstone | 456 | 234 | 164 |
Glossary:
Prospective Resources
| those quantities of petroleum which are estimated, at a given date, to be potentially recoverable from undiscovered accumulations |
oil-in-place/OIP | the volume of oil estimated to be in place |
gas-in-place/GIP | the volume of gas estimated to be in place
|
-END-
For further information, please contact:
Stellar Resources plc David Lenigas, Executive Chairman Donald Strang, Finance Director
|
+44 20 7440 0640 |
Cairn Financial Advisers LLP James Caithie / Paul Trendell |
+44 20 7148 7900
|