logo-loader
EnergyOil & Gas
viewUK Oil & Gas PLC

UK Oil & Gas aims to drill nine wells between 2019 and 2020, move Horse Hill into permanent production

The AIM-listed group also said that after a successful drilling campaign, it plans to move Horse Hill's ongoing test-based oil production into permanent production by the end of 2019

Drilling
UKOG said it aims to convert around 15.6mln barrels of the company's net discovered conventional recoverable resources into reserves

UK Oil & Gas PLC (LON:UKOG) saw its shares jump on Wednesday as the explorer behind the so-called Gatwick Gusher at Horse Hill revealed it will drill nine wells between 2019 and 2020.

The AIM-listed group also said that after a successful drilling campaign, it plans to move Horse Hill's ongoing test-based oil production into permanent production by the end of 2019.

READ: UK Oil & Gas investors unimpressed by Horse Hill testing update

In its latest strategy and drilling plan, the firm said it aims to convert around 15.6mln barrels of the company's net discovered conventionally recoverable resources into reserves over the period.

UKOG’s chief executive officer, Stephen Sanderson commented: "If successful, this comprehensive plan aims to add significant value to the company and shareholders via transforming UK Oil & Gas from an exploration and appraisal company into a fully-fledged producing oil company by the end of 2019."

In mid-afternoon trading, shares in UK Oil & Gas shares were 8.5% higher at 1.27p.

Horse Hill flows

UKOG owns a 46.735% beneficial interest in the Horse Hill project, which is located in the Weald Basin of Surrey, while Alba Mineral Resources PLC (LON:ALBA) holds an 11.765% beneficial interest.

Last week, UKOG revealed that production testing from Horse Hill had passed a milestone of 25,000 barrel of oil.

The company said that based on the successful results to date, it has now been decided that this production phase will continue through to the expiry of the current permits in spring.

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

Quick facts: UK Oil & Gas PLC

Price: 1.125 GBX

AIM:UKOG
Market: AIM
Market Cap: £75.09 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Polar Capital Global Healthcare's Daniel Mahony talks key sector developments

Polar Capital Global Healthcare's (LON:PCGH) Daniel Mahony talks through the key developments he's seeing in the healthcare sector at the moment in addition to the impact of political issues stemming from the US. He also discusses how IT is beginning to disrupt the healthcare landscape.

9 hours, 59 minutes ago

2 min read