The Horse Hill production test has delivered positive results, with flows from the first section ahead of those seen in the prior 2016 programme.
Production testing in the conventional Portland reservoir saw short-term, high-rate tests with implied equivalent daily pumped rates between 401 and 414 barrels of oil per day (bopd) over two periods of six and two hours.
The maximum rate was limited to a pump capacity of 470 bopd, and, higher capacity equipment is now being mobilized.
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In stock market statements, each of the London-listed stakeholders in the Horse Hill project revealed that metered rates and recovered volumes to date from the Portland have exceeded the 2016 comparative figures.
As the well testing programme advances, flow optimisation efforts will be conducted to determine the maximum sustainable long-term flow rate and a ‘lengthy stabilised flow period’ will access a commercially viable oil volume.
More testing will follow in the deeper sections in the Kimmeridge zones, directly after the completion of the Portland test sequence.
UKOG welcomes ‘excellent’ results
Stephen Sanderson, chief executive of Horse Hill stakeholder UK Oil & Gas Investments PLC (LON:UKOG), said: "HH-1 continues to deliver positive results that exceed the 2016 Portland test outcomes.
“The excellent short-term high rate test results, combined with pressure build up data, provide further confidence that the next phases of the Portland test can deliver both an optimal sustainable long-term flow rate and deliver the primary objective of confirming the Portland's commercial viability.”
He added: “Whilst the potential future near-term cash flow from the Portland is very important to UKOG, we should not lose sight of the significance of the potential prize that lies in the underlying primary Kimmeridge objective, the long-term testing of which will follow directly after the Portland programme.”
Solo awaits ‘long term sustainable rates’
Elsewhere, Solo Oil PLC (LON:SOLO) chairman Neil Ritson added: "The recent high rate test of the Portland Sandstone continues the very positive indications already seen after re-opening the well and re-establishing flow from the Portland oil reservoir previously tested in 2016.
“It should be stressed, however, that these rates are not the long-term sustainable rates of production from the well on which commerciality will be based and that Portland testing operations are continuing.”
UK Oil & Gas Investments PLC (LON:UKOG), the largest London-listed stakeholder with 32.43%, saw its shares advance around 12% after the well results.
Elsewhere, fellow stakeholders Solo Oil and Alba Minerals Resources PLC (LON:ALBA) also moved on the front foot, rising around 7.8% and 4% respectively.