A tweet from David Lenigas about the ongoing flow testing at Horse Hill has sent shares in UK Oil & Gas Investments Limited (LON:UKOG) soaring on Monday afternoon.
The serial small cap investor, who is executive chairman at Doriemus (ASX:DOR) which has a stake in the ‘Gatwick Gusher’, said the oil flowing from the HH-1 well was 40° API.
40 API oil at Horse Hill in the Kimmeridge limestones was a great surprise. Because that is better quality than North Sea #Brent . The better surprise was that both the Kimmeridge and Portland oil were DRY #Oil on the initial flow tests - No water! Amazing! @UKOGlistedonAIM— David Lenigas (@DavidLenigas) July 2, 2018
That figure, if true, is higher than Brent crude (38.06°) and West Texas Intermediate (39.6°) and makes the oil a light crude.
Light crude tends to receive a higher price than heavy crude oil on commodity markets because it produces a higher percentage of gasoline and diesel when converted by a refinery.
Lenigas also added that both the Kimmeridge and Portland zones have flowed only oil and not water so far.
UKOG shares were up 22.5% to 2.6p on Monday afternoon. Alba Minerals PLC (LON:ALBA) and Solo Oil PLC (LON:SOLO), which also have stakes in Horse Hill, saw their share prices climb 15.6% and 5.8% to 0.37p and 2.75p, respectively.