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Horse Hill test flows equate to 8.5% of Britain’s daily onshore production

The final Horse Hill test measured oil flows at a rate of 323 bopd from the Portland reservoir, which takes the aggregate for the discovery’s three tested zones to 1,688 bopd.
Horse Hill test flows equate to 8.5% of Britain’s daily onshore production
Next at Horse Hill a longer term production testing programme is planned.

UK Oil & Gas Investments PLC (LON:UKOG) chief executive Stephen Sanderson has called the Horse Hill flow-testing results “outstanding” and highlighted that the aggregate flow of oil measured in the programme would be equivalent to 8.5% of the UK’s total daily production from onshore fields.

Sanderson’s comments came as the final flow tests of the programme have now completed.

In the final test, the Portland reservoir flowed at a stable dry rate of 323 barrels of oil per day, which is double the rate seen in the prior Portland test.

In this second test a larger pump was used to extract the oil, and even at maximum pump capacity there were no indications of depletion. It is believed that the use of a higher capacity pump would probably yield higher rates still.

This final Portland test result means that the three phase testing programme has measured flow rates of 1,688 barrels of oil per day in aggregate across the Horse Hill discovery’s three separate test zones.

The stakeholders in Horse Hill - which include UKOG and Solo Oil - are now applying for regulatory permissions to conduct extended production testing on all three zones that have been tested to date.

It is also proposed that this extended testing programme be followed by horizontal side-track drilling through Horse Hill’s two deeper Kimmeridge zones. It is also possible that a separate vertical development well could be drilled solely for the Portland reservoir.

In a stock market statement, Sanderson said: “The flow test results are outstanding, demonstrating North Sea-like oil rates from an onshore well.

“This simple vertical well has achieved an impressive aggregate oil rate equivalent to 8.5% of total UK onshore daily oil production.

“The Portland also has greater flow potential as rates were limited by the test pump's maximum capacity. Further significant flow rate improvements may be achieved from all zones using horizontal sidetracks during future planned operations.”

He added: “Whilst there is still much work to be done, this test has moved the project into a potential commercial reality.”

Neil Ritson, chairman of Solo Oil, meanwhile, said: “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.”

UKOG owns a 19.968% interest in PEDL137, the onshore licence that hosts the Horse Hill discovery, whereas Solo Oil has a 6.5% interest in the project.

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