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UKOG hires reservoir specialist to assist evaluation of Horse Hill area

UKOG hires reservoir specialist to assist evaluation of Horse Hill area

UK Oil & Gas Investments (LON:UKOG) has hired US specialist NUTECH Energy Alliance to help maximise the potential value of the Horse Hill area licences.

NUTECH is a leader in the field of petro-physical analysis and reservoir Intelligence, the AIM quoted company said.

It comes after the discoveries in the Horse Hill exploration well.

UKOG said NUTECH will immediately assist the assessment of reservoir parameters, including oil in place volumes and rock mechanical properties.

This work will encompass the conventional Portland Sandstone oil pay and the full Upper Jurassic Kimmeridge Clay (KC) formation. NUTECH will also carry out additional analysis of the Middle and Lower Jurassic source rock sections to help the company understand hydrocarbon charge mechanisms and related potential in this part of the Weald basin.

The American firm will also advise on testing and completion design for the HH-1 discovery and for future wells.

Earlier this week UKOG appointed Stephen Sanderson, author of the Horse Hill discovery’s technical appraisal report, as the company’s chief executive.

Sanderson today said: “I am delighted that the company will gain access to NUTECH's proven global technical expertise, unrivalled experience and extensive industry network in this specialist field, to help us fully understand the potential of the HH-1 discovery and its implications for our appraisal and wider exploration objectives.

“NUTECH brings to the company, and to the UK, proven knowledge of how to assess and exploit cutting-edge plays, such as the KC micrite, from their vast experience, particularly in the onshore unconventional USA arena.”

UKOG chairman David Lenigas took to social media and described the NUTECH appointment as “very significant”.

“Nutech are the world leaders. They are excited about HH, even if you're not,” the outspoken deal maker told his 1,700 Twitter followers.

On AIM, UKOG shares advanced nearly 8% to trade at 0.43p each following the news of NUTECH’s involvement in the project.

The Horse Hill well was drilled last summer amid great expectations and although not all pre-drill targets were successful the well made two discoveries.

Portland, the more advanced and straightforward of the two, was recently estimated to contain some 8.2mln barrels of ‘most likely’ oil in place (the range was estimated between 5.7mln to 12.1mln barrels). Upcoming flow-tests will be key to determining recoverability as well as the field’s potential economics.

The exploration well also encountered Kimmeridge, a formation that comprises porous limestone as well as intervals of shale and clay.

Whilst the Portland discovery represents a relatively low-risk, near-term production opportunity, Kimmeridge is potentially a more significant ‘blue sky’ play.

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