Skip to main content
The Markets by Proactive
Go to Proactive UK
Proactive UK has moved. Proactive’s coverage of London’s small caps continues on proactiveinvestors.com Go there →
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Mining

Alba Mineral Resources hails production test success at Horse Hill oil project

Continuous oil production is anticipated through most of 2019 - the current test programme will run to spring, before two new wells are drilled and then tested through to the autumn, and, UKOG hopes permanent production will kick off in the

Alba Mineral Resources plc (LON:ALBA) executive chairman George Frangeskides has hailed the ongoing success of test production at the Horse Hill project.

The AIM-quoted firm holds an 11.765% beneficial interest in the project which has now yielded some 25,000 barrels of crude oil since the current phase of production testing began in July.

Production rates since 7 January have ranged between 303 bopd and 525 bopd.

Some 21,000 of that total have flowed from the Kimmeridge oil zones where test production is now expected to continue until to the expiry of the current permits in spring.

READ: Alba in focus as Angus Energy confirms restart of Brockham programme

It is then expected that the project operator will advance immediately to the drilling of two horizontal wells, HH-2 and HH-3, which also undergo a long term production test.

Planning applications were recently submitted for the proposed seven-well field development, and, the company anticipates that all necessary permits will be in place by the autumn – which will enable the transition from test production into permanent production in winter 2019.

"The plans to continue the EWT test programme into this quarter are testament to the success of the extended testing programme that we commenced back in July of last year,” George Frangeskides said in a statement.

“The declaration of commerciality for the Portland sandstone, followed by these sustained production levels at the Kimmeridge limestones, are the solid foundations upon which the planned move into permanent production at Horse Hill before the end of this year will be built."

AIM peer UK Oil & Gas plc (LON:UKOG) is the the largest UK-listed stakeholder in the venture.

In its separate statement this morning, UKOG highlighted that the absence of formation water in the oil flows continues to give support to the company’s geological concept that KL oil lies within a significant continuous oil deposit.

UKOG chief executive Stephen Sanderson said: “UKOG aims to deliver near-continuous oil production throughout 2019 via a combination of long term testing of HH-1 and two new wells, followed by a smooth transition into permanent production in the winter.

“The potentially transformative effect of a successful programme is an exciting prospect for 2019."

UKOG owns a 46.735% beneficial interest in the Horse Hill project.

Advertisement
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK