Angus Energy Plc (LON:ANGS) has denied suggestions that its work programme at the Brockham field was ‘unauthorised’.
In a stock market statement, the company said: “Angus Energy notes the BBC London news item yesterday evening where claims were made that the Brockham X4Z well drilling was 'unauthorised'.
“The company is of the firm opinion that the drilling of the BR-X4Z well, which was approved by the OGA, EA and HSE, did not constitute a breach of the planning consents.
“Discussions with Surrey County Council are ongoing and the company will update the market as soon as these discussions are complete.”
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Well success at Brockham
A week ago, Angus told investors 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.
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.
At Brockham the programme saw Angus and its partners re-enter an existing well bore and conduct additional drilling.
The well unearthed a 385 metre thick Kimmeridge zone, including two intervals (each around 30 metres) that were tested with success at Horse Hill.
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.
Last week, Angus said: “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.”
“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.