Angus Energy Plc (LON:ANGS) said it will produce oil from the Kimmeridge shale at the Brockham well in Surrey.
This is the same horizon that produced 1,500 barrels a day at Horse Hill, some five miles to the south.
Drill results revealed the characteristics of Brockham to be very similar and, in some respects superior, to those of the so-called Gatwick Gusher.
WATCH: Our interview with Angus
READ: The announcement in full
The discoveries by Angus and the Horse Hill consortium, led by UK Oil & Gas Investments PLC (LON:UKOG), suggest the oil-bearing Kimmeridge limestone may be widespread across a huge swathe of the Weald Basin.
Okay, so what did the Brockham well uncover?
· The Kimmeridge at Brockham is 385 metres thick
· The two limestone intervals (each around 30 metres) tested in Horse Hill are also seen in the Brockham well
· The reservoir properties appear to be very similar to Horse Hill, based on electrical logging evidence
· There were natural fractures in the two main limestones intervals previously tested at Horse Hill (these are key to oil flowing naturally)
· There were also abundant natural fractures in sections of interbedded shales and limestones between and below the two main limestones
· Additional oil shows were found in the Portland and lower lying Corallian formations
“Based on the evidence so far, Angus has confidence that the well will be similar to Horse Hill and perhaps given that the reservoir is potentially much thicker in zones not previously tested the results could be even better,” the company said.
“These results achieve everything short of production to prove the potential from this zone.”
Subject to sign off from the Oil & Gas Authority, the well could be in production late spring/early summer.
The shares, listed last November at 6p each, are currently changing hands for 12.8p (up 6%).
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