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UKOG says new Horse Hill drilling is on-track to start during Q2

“We remain fully on track to drill new horizontals in the second quarter of this year and are even more confident that the new Portland horizontal well can achieve its 720-1,080 bopd target,” said Stephen Sanderson

Horse Hill tanker
186 tankers worth of crude has been sold to date

UK Oil & Gas plc (LON:UKOG) has updated on Horse Hill’s Portland reservoir production test as preparation for new drilling programmes near finalisation.

The AIM firm, the largest UK listed stakeholder in Horse Hill, said that the Portland has continued to flow at a stable rate of 220 barrels of oil per day. It is a constrained rate, held below the 362 bopd top rate seen previously, due to prudent reservoir management.

UKOG told investors that the well has now been shut-in for a 60-hour pressure build-up test, after which test production will resume.

READ: UKOG could target foreign assets as it hits acquisition trail

It is anticipated that the drill programme for the HH-1z sidetrack well and the HH2 well is slated to start during the current quarter.

“We remain fully on track to drill new horizontals in the second quarter of this year and are even more confident that the new Portland horizontal well can achieve its 720-1,080 bopd target,” said Stephen Sanderson, UKOG chief executive.

“We believe Horse Hill remains well positioned to deliver future significant value."

The company also highlighted a number of notable milestones for the test production operation which has now yielded over 40,000 barrels of crude combined from the well’s Portland and Kimmeridge zones.

Some 25,000 barrels were previously produced from the Kimmeridge, whole Portland production has now exceeded 15,000 barrels.

A total of 186 tankers have so far transported crude to the Hamble oil terminal. The Portland crude, at 36 degree API, is sold at the prevailing Brent price, less deductions for handling and marketing.

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Price: 1.025 GBX

AIM:UKOG
Market: AIM
Market Cap: £68.42 m
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