‘Old Father Shale’ David Lenigas has been at it again on Twitter with a few choice put-downs for the growing band Angus Energy Plc (LON:ANGS) critics.
Lenigas, an investor who has fast become expert in the geology of the Weald Basin, thinks the naysayers have missed the point in panning Angus’ latest drilling results.
On the face of it, output from the Lidsey well, West Sussex, was disappointing at just 40 barrels a day recovered by the Great Oolite formation.
Excitement elsewhere
Lenigas’ point in his Tweet below is ‘ignore the Oolite, the excitement lies elsewhere’.
Give me the Kimmeridge and the Oxford at Lidsey Oil Field any day of the week. That's my main focus and always was. https://t.co/SsyPt1jlQt Lidsey is an approved oil Field and that is also key. Some people don't get it. The Oolite is OK, but to me not the main play. Kimmeridge!
— David Lenigas (@DavidLenigas) November 20, 2017
And in fact that would seem to be the thought process of Angus itself, which has filed an addendum to its field development plans to start production appraisal of Kimmeridge and Oxford horizons of the Lidsey well.
READ: Production falls short of expectations
WATCH: Lenigas on the Weald Basin
Why is that significant? The Kimmeridge in particular is hugely exciting in that it was the source of the oil that flowed in significant quantities (more than 1,700 barrels a day) from Horse Hill discovery.
“Lidsey is an approved oil field and that is also key,” said Lenigas in one Tweet. “Some people don't get it. The Oolite is OK, but to me not the main play. Kimmeridge!”
Also known as the Gatwick Gusher, because of its proximity to Britain’s second largest airport, Horse Hill was the first to test the potential of the Weald Basin, an area of southern England potentially host to significant hydrocarbon accumulations.
Over 30 wells to date
Over the last two to three decades around 30 wells have been drilled into the limestones of the Weald Basin. However none tested for oil as the sedimentary rock was thought to lack the porosity required to host it.
What the experts suspect is the Kimmeridge at Horse Hill is naturally fractured, allowing oil to accumulate that when accessed flows easily to surface under its own steam.
The quantum of oil in the vicinity Gatwick could be mind boggling if the initial Horse Hill results are replicated with follow-up drilling.
The Kimmeridge reservoirs of PEDL234, a licence near the Gusher, owned by UK Oil & Gas Investments (LON:UKOG) are estimated to be host to 1.7bn barrels of the blacks stuff; Horse Hill itself may be sitting on up to 1bn barrels. Those two alone would be internationally significant.
Finger in the air time?
It has to be stressed that these are guesses based on the geology being absolutely as expected and the Kimmeridge being as prevalent as thought.
There are a whole host of other assumptions too that make this a bit of a finger-in-the-air exercise.
Anyway, success would throw up a huge conundrum. Does the UK, which is looking for energy independence, drill areas of outstanding natural beauty to unlock the oil?
The backlash could be interesting.