Proactive Investors - Run By Investors For Investors

UK Oil & Gas: Deluge of date shows Horse Hill’s Kimmeridge is “commercially viable”

UKOG said that well testing results to date indicate that the KL3 zone is “commercially viable”.
oil and gas operations
More than 10,000 barrels of crude has so far been retrieved from KL3

UK Oil & Gas Plc (LON:UKOG) has delivered a deluge of statistics from its ongoing well testing campaign at the Horse Hill project.

It told investors that the KL3 zone, one of the multiple zones in the targeted Kimmeridge play, had initially produced oil at a rate of 771 barrels of oil per day, and, marked a peak rate of 909 bopd, before reducing to averaging a rate of 342 bopd over the full test period.

In total, some 10,2448 barrels of oil was produced from the KL3 zone over the course of the 30-day programme, which included 9 days of pressure build up (when no oil flowed)and a variety of tests on different well configurations. Additionally, the KL3 produced 3.5mln cubic feet of total gas to date.

READ: UK Oil & Gas declares Horse Hill’s Portland reservoir “commercially viable”

UKOG said that well-testing results to date indicate that the KL3 zone is “commercially viable”.

The programme will now move on to open up and the test KL4 zone for testing. A comingled test on KL3 and KL4 is also anticipated.

Back in 2016, a four-hour long test saw a production rate equivalent to 901 bopd.

UKOG, meanwhile, also revealed to investors that the whole Horse Hill programme - which started with a successful extended test of the shallower Portland reservoir – had so far yielded a total of 13,920 barrels of crude- 3,672 barrels from the Portland and 10,248 barrels from KL3.

The sale of this oil has generated around US$1.1mln of gross revenue to date.

It highlighted that, in aggregate, the 2018 and 2016 test programmes had now seen 15,860 barrels of crude from the so-called ‘Gatwick Gusher’ oil project.

"The 2018 EWT's total test production of almost 14,000 barrels of oil, with over 10,000 barrels to date from the single Kimmeridge KL3 horizon, firmly establishes Horse Hill as a commercially viable oil field.

“These "hard fact" production numbers, together with the million dollar sales revenues, undoubtedly mark the most significant milestone in the company's short history,” said Stephen Sanderson, UKOG chief executive.

“The company will spare no effort to push Horse Hill towards full-time production in late 2019/early 2020.

“We now look forward to the forthcoming KL4 EWT programme and the prospect of KL3 and KL4 commingled test production that will take us up to the spud of the HH-2 and HH-1z production wells in 2019."

View full UKOG profile View Profile

UK Oil & Gas PLC Timeline

Related Articles

Kvanefjeld project in picturesque Greenland
March 26 2019
The company added to its share price yesterday after shaving US$38 million off its civil construction costs.
April 08 2019
The South Disouq project has been pushed back towards the end of 2019
Gas flare
The group is in the middle of a three well programme to explore the A1 prospect, close to the original Tendrara discovery

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use