UKOG receives EA consent for flow test of the Horse Hill-1 oil discovery

UK Oil & Gas Investments has announced that it has been informed by Horse Hill Developments Ltd (HHDL) that the Environment Agency (EA) has formally granted the necessary permit to flow test the Horse Hill-1 (HH-1) oil discovery well. The HH-1 well was drilled at the end of 2014, and is located within onshore exploration licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport, in which UKOG owns a 20.163% net attributable interest.

Operational planning for the test is in the final stages of completion. The required work-over rig and test equipment has been contracted. The company expects these flow tests to be conducted in the coming months as soon as practicable following the last remaining regulatory sign-offs from the Health and Safety Executive and Oil and Gas Authority.

The flow test is designed to test both the oil bearing Upper Portland sandstone reservoir and the Kimmeridge limestone reservoirs beneath the Portland. The test will provide the reservoir engineering data that will enable the company to assess the commercial viability of the Portland sandstone oil discovery, which encountered significant oil shows whilst drilling, and to further advance the 'proof of concept' process for the Kimmeridge tight oil play, which has previously been shown to flow oil elsewhere in the same formations of the Weald Basin, at Balcombe some 10 miles to the south.

Stephen Sanderson, UKOG's and HHDL's Executive Chairman, said: “The consent to flow test is a major milestone for the company. The flow test's outcome will help UKOG shape its future Portland oil development activities and materially advance its knowledge and growth in the Kimmeridge tight oil play within our licences and the wider Weald Basin. The Company is now fully focussed on delivering a successful HH-1 test programme as soon as possible following final regulatory consents.”

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/03122015/ea-gives-consent-for-flow-test-of-the-horse-hill-1-oil-discovery-1735/