The prospect of Broadford Bridge and Horse Hill well programmes running back-to-back is good news for the UK oil industry, according to independent oil analyst Barney Gray.
UK Oil & Gas Investments PLC (LON:UKOG) is advancing its wholly owned Broadford Bridge well - the project has had some technical problems, but, has also seen encouraging signs with light oil flowing to surface – with a flow testing operation expected to start in late October and run until mid-December.
Thanks to an approval by Surrey County Council on Wednesday the team working at Broadford Bridge will move on to the Horse Hill field, where a two-well programme will advance a long term production test.
These programmes are expected to provide further catalysts for the emerging oil play in the south of England.
“[The results] will really start to tell us what the Kimmeridge and other formations are capable of,” Gray said in an interview with Proactive Investors Stocktube.
“Remember you’ve also got a conventional Portland [oil] discovery in Horse Hill as well, so there is much to go for.”
Gray reckons there can be much more to come in the Weald basin, if the upcoming programmes see positive results and the local authorities can see that the companies are responsible operators.
“We’ll see the next generation of exploration wells slated, we’ll see more appraisal work. Operators will really get it down pat, how to operate responsibly down here, and I think there is much more to come.
“So, there’s plenty going on. And if everyone does things right, and councils play ball, you’ve got a resurgence in the onshore UK oil industry. “
He added: “I think councils are under a lot of pressure to be assertive. This is a very political industry. They have to look to have ticked every box.”