We caught up with Stephen Sanderson as he left the Horse Hil -1site today and he gave Share Talk this exclusive interview on today’s news update.
Today UK Oil & Gas Investments PLC (AIM: UKOG) announced Portland Extended Flow Test (“EWT”): Well Clean-Up Phase Complete, Dry Oil Flows to Surface, Horse Hill-1 Oil Discovery, PEDL137, Weald Basin, UK update.
Highlights:
· Initial Portland well “clean-up” phase completed successfully
· Light sweet crude oil (36 API) and associated solution gas flowed sustainably via pump and natural flow to surface over a 4-day period to date. Oil contains no metered water content (i.e. “dry oil”)
· Metered daily oil rates to date equal to or exceed 2016 values. Highest observed hourly rate equivalent to an implied daily rate of 352 barrels of oil per day (“bopd”). Corresponding metered solution gas volumes are up to an implied rate of 30,000 cu ft per day.
· Flow has not yet been optimised for maximum sustainable flow rates
· First tanker containing 214 barrels of dry oil exported to BP’s Hamble oil terminal
· Initial analysis indicates well productivity unaffected by 2 year shut-in period since 2016
· Following a planned 24-hour shut in (i.e. pressure build-up test) the first of three planned Portland test sequences will commence
Stephen Sanderson, UKOG’s Executive Chairman and Chief Executive, commented:
“Test results to date have exceeded our initial expectations given the length of time the well was shut-in since 2016. Although we are in the very early stages of our 150-day test campaign at Horse Hill, the signs to date are extremely positive for the Portland oil pool. The unexpected bonus of natural oil flow to the surface, without the use of a pump, gives us cause for further optimism regarding the Portland’s overall commercial potential. It is important at this stage, however, to keep our expectations at a realistic level.
The Company looks forward to further positive results from the remaining Portland test sequences and then the testing of the two deeper and higher productivity Kimmeridge Limestone oil pools. Further updates will be made throughout the test campaign.”
