21 Mar 2016 08:00
FOR RELEASE, 8:00 am 21 March 2016
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SOLO OIL PLC
("Solo" or the "Company")
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Horse Hill-1 Oil Discovery, Weald Basin, UK
Initial Flow Test Programme Completed
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Solo Oil plc today announces that it has been notified by Horse Hill Developments Limited ("HHDL") that stable dry oil flow rates from the three intervals in the Horse Hill-1 well ("HH-1") when summed amounted to 1,688 barrels of oil per day ("bopd") obtained over a total 5 陆 day total aggregate flow period, and that no clear indication of any reservoir pressure depletion was observed. Analysis of data is still ongoing and HHDL indicate that further information will be reported in the coming weeks.
Highlights
路 Results confirm the geological concept that the Kimmeridge limestones contain moveable light oil that can be flowed to surface at commercial rates
路 HHDL report this as the highest aggregate stable dry oil flow from any onshore UK exploration well
路 The highest stable natural dry oil flow rate from a single reservoir in the Upper Kimmeridge of HH-1, at 900 bopd, exceeds the previous UK onshore record of 640 bopd from Herriard-1
路 The well achieved the first documented oil production from the Lower Kimmeridge limestone, at a stable natural flow rate of 464 bopd of dry oil
路 The highest ever stable dry oil flow rate from a Portland well was obtained at 323 bopd
路 High quality light, sweet oil (40 API in Kimmeridge, 37 API in Portland) was produced and delivered to the Esso Fawley refinery
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Neil Ritson, Solo's Chairman commented:
"This is truly a game changing well for exploration in the Weald Basin and provides considerable encouragement that a significant commercial accumulation has been found in the Portland sandstones and that a potentially massive Kimmeridge limestone play has been revealed. Solo looks forward to further results from the tests and future plans to produce the discovery and further explore the potential of the Kimmeridge play.
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Final Portland Flow Test
As previously reported, the first Portland sandstone test period gave a stable dry oil rate of 168 bopd over a period of 9 hours. Further periods of flow using the same pump, located immediately above the perforated zone, resulted in a similar stable dry oil flow over a two-day period. The flow rate was limited by the stroke of the pump. A larger stroke pump was installed resulting in a maximum rate in excess of 360 bopd and an average stable rate of 323 bopd over 8.5 hours. Pumping was halted for mechanical reasons since the pump had been operated at maximum capacity. During pumping the annulus fluid levels did not drop appreciably indicating inflow rates from the well matched the offtake rate.
HH-1 Overview and Test Summary
The HH-1 discovery well, completed in November 2014, was the first well since the 1980s to test the entire Jurassic and Triassic section of the Weald Basin, reaching Palaeozoic basement at approximately 8,500 feet. The well was drilled with oil-based mud to ensure good electric log data could be collected. A comprehensive suite of modern log data, including magnetic resonance data, was acquired. Geological samples were collected at 10-foot intervals throughout the well for geochemical analysis.
The analysis of thermal maturity data from geological samples showed that the Kimmeridge section of the well was within the peak oil generative window. Previous researchers had considered that the Kimmeridge was thermally immature, and whilst recognised to be the time equivalent of the North Sea's main oil source rock, it was thought likely only generated either early stage immoveable bitumen or minor quantities of moveable oil in the Weald Basin.
Geochemical analysis of samples throughout the approximately 1,300-foot thick Kimmeridge shale section of HH-1, however showed that the shales comprised a world class oil source rock. Further significant potential source rock sections were also identified in the Middle Jurassic and Lias sections of the well.
Both Nutech and Schlumberger, leaders in the field of electric log analysis in low permeability rocks, investigated the presence of oil in the HH-1 well. HHDL and UK Oil and Gas Investments PLC ("UKOG") presented the results of that work during 2015, which indicated that a total of between approximately 9 and 11 billion barrels of oil in place ("OIP") could be estimated under the HH-1 licence area, contained in shales and limestones of the Kimmeridge, Oxford Clay and Lias. Further studies showed that these oil deposits could be expected to extend over much of the Weald Basin.
The Kimmeridge flow test programme was designed to test the concept that significant moveable oil had been generated within the Kimmeridge shales and had migrated directly into the naturally fractured porous limestones.
Both Nutech's and UKOG petrophysical analyses demonstrated that a conventional oil accumulation existed in the Upper Portland sandstone of the HH-1 and Collendean Farm-1 wells. Xodus calculated an estimated most likely, or P50, OIP of 21 million barrels. Electric log analysis showed that the well had approximately 100 feet of gross oil pay. The flow test results exceeded expectations and the log evaluation will be revisited and may lead to an upgrade in OIP.
Summary Table of Test Results
Zone | Maximum instantaneous oil rate | Stabilised dry oil rate *** | Perforated interval | Depth below surface |
聽 | bopd | bopd | feet | metres |
U. Portland* | 360 | 323 | 103 | 615 |
U. Kimmeridge ** | 1008 | 901 | 88 | 840 |
L Kimmeridge ** | 700 | 464 | 80 | 900 |
Total | 2068 | 1688 | 271 | 聽 |
Notes: * flow rate limited by pump stroke rate capacity ** natural flow *** average over 20 hours aggregate | ||||
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Solo's interest in the Licence Area and Horse Hill:
The Licence Area, comprising licences PEDL137 and PEDL246, is located on the northern side of the Weald Basin of South East England near Gatwick Airport. The HH-1 discovery well is located in PEDL137. Solo owns a 10% direct interest in Horse Hill Developments Ltd ("HHDL") a special purpose company that owns a 65% participating interest and is the operator of the Licence Area. The remaining 35% participating interest in the Licence Area is held by Magellan Petroleum Corporation.
Qualified Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director of Solo Oil plc who has over 38 years of relevant experience in the energy sector.聽Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.
For further information:
Solo Oil plc Neil Ritson Fergus Jenkins | +44 (0) 20 3794 9230 |
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Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish | +44 (0) 20 7628 3396 |
聽 Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) 聽 Bell Pottinger Public Relations Henry Lerwill 聽 Cassiopeia Services LLP Investor Relations Stefania Barbaglio | 聽 +44 (0) 20 7408 4090 聽 聽 聽 聽 聽 +44 (0) 20 3772 2500 聽 聽 聽 +44 (0) 79 4969 0338 |
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聽Glossary:
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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 |
degree API | a measure of the density of crude oil, as defined by the American Petroleum Institute |
dry oil | crude oil produced with no appreciable quantity of water |
electric logs | tools used within the wellbore to measure the rock and fluid properties of surrounding rock formations |
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 |
mean | or expected value, is the probability-weighted average of all possible values and is a measure of the central tendency either of a probability distribution or of the random variable characterised by that distribution |
moveable oil | oil that can flow or be pumped to the surface |
naturally fractured reservoirs | fractured reservoirs contain cracks or surface of breakage within rock; fractures can enhance permeability of rocks greatly by connecting pores together; naturally fractured reservoirs have been created over geological time by nature, not man-made via hydraulic fracturing |
OIP | oil in place, the quantity of oil estimated to be in place within a reservoir |
P50 | a 50% probability that a stated volume will be equalled or exceeded |
permeability | the capability of a porous rock or sediment to permit the flow of fluids through its pore spaces |
pump stroke | in a rod pump the product of the rod cross-sectional area, maximum distance between the top and bottom of the rod stroke movement and the pump stroking speed |
reservoir pressure depletion | a reduction in reservoir pressure as indicated by downhole pressure gauges positioned in the well close to the zone being tested |
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 |
source rock | a rock rich in organic matter which, if subjected to sufficient heat and pressure over geological time, will generate oil or gas. Typical source rocks, usually shale or limestone, contain above an initial 1% organic matter by weight |
thermal maturity | a term applied to source rocks which have received sufficient temperature and pressure over geological time to generate hydrocarbons |
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