The unfolding story of Horse Hill

As news is starting to circulate about the Gatwick Gusher, let’s return to the video of Andrew Bell, CEO of Regency Mines (RGM), to get a better understanding of the story unfolding.
Regent Mines (RGM) returned to the Horse Hill project alongside a number of other companies who have a stake in the game. Clearly Andrew Bell liked the results he was seeing and when the opportunity arose to take Angus Energy’s stake they snapped it up. Now you might ask the question – If the results look that positive on paper why would they leave? The simple answer is that they didn’t. They’ve realised an opportunity to drill next door without being part of the Horse Hill consortium. Their drills, their rules. So you now have two companies helping to build the plot of what is coming with the Horse Hill story.
What have they found so far?
From the recent first flow test results they brought light, 40 degrees API, sweet oil out of the ground. And plenty of it. That’s like looking at the expensive wine menu list when choosing your oil.
Andrew references the project to the likes of Wytch Farm. For those unfamiliar with it, Wytch Farm is the biggest onshore oil field in Western Europe. Not something to be taken lightly if he is correct as they peaked at 110,000 bopd when in full production.
Frack Free!
Another good point made in the video is that the oil is free flowing. This indicates that there is no need for any chemical stimulation or fracking. Given that there has been a protest camp near the Horse Hill site, it will please many environmentalists. For the UK government, this is an added bonus and will help with future planning permission to increase the number of wells in the location. This will of course have a big effect on benefitting the UK economy.
The landscape around Gatwick is not suddenly going to disappear under a sea of nodding donkeys. As Andrew explained, there is the option to have multiple wells off each platform. Even given the first flow results around 450bopd it’s easy to envisage the platforms producing over 2000bopd each. Think “Octopus Style” drill pads, which David Lenigas blogged about on Friday.
“The real deal”
The story sounding good so far? It’s about to get more interesting. Andrew Bell has announced today that during the next flow tests, when using a wider choke, the well produced reached 1,700 bopd. Creating multi-well pads with those figures and you are looking at extremely large bopd values in the not too distant future. From the sounds of it, that could be within 2 years.
To give this story an even happier ending you have to remember that this is taking place onshore. Despite oil prices reaching low levels over the past year, the cost to extract the oil is minimal when considering the logistics of what it costs to reach the North sea oil. There were already tanker trucks removing oil from the site following the first flow results. That pattern could be increased without too much disruption.
Anyone holding shares in the Horse Hill consortium could find themselves singing “I’ve got a golden ticket” this week after official news comes out.
We’ll be following this story next week with another article titled “The race is on – Angus Energy vs Horse Hill. Who will be first”
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