What a week for UKOG shareholders, on Tuesday we had the update of the Completion of Acquisition in Horse Hill. significantly increases the Company’s holding in its flagship asset, from 50.635% to a controlling 85.635%, a 69% increase in UKOG’s associated Horse Hill net asset value and net reserves/resources.
Following the acquisition, ongoing civil works at Horse Hill, necessary to enable simultaneous Horse Hill-2/2z (“HH-2/2z”) drilling and HH-1 Kimmeridge test production, are expected to be completed this week
Yesterday Surrey County Council Planning and Regulatory Committee granted full planning consent for long-term oil production at the Company’s flagship Horse Hill oil field near Gatwick Airport.
This landmark milestone, perhaps the most significant event at Horse Hill since the HH-1 oil discovery, paves the way for the Company to realise the full value of future long-term production from the Horse Hill oil field.
Today Drilling and Testing Update
Horse Hill-1 and Horse Hill-2/2z drilling and testing update
Having signed the relevant drilling and service contracts, the rig is now scheduled to arrive later in September to commence drilling and coring the HH-2 vertical pilot hole, expected to be completed in around 30 days from start. The horizontal well section, HH-2z, with a planned trajectory of up to 1000m wholly within the Portland reservoir, will follow directly afterwards. Further operational updates will be issued in due course.
Horse Hill 2018-19 Test Oil Production Milestones:
· 66,127 bbl aggregate Kimmeridge and Portland oil production
· 36,559 bbl total Kimmeridge oil production
· 29,568 bbl total Portland production
· No discernible formation water produced from either reservoir
Stephen Sanderson, UKOG’s Chief Executive, commented:
“Following our transformational acquisition of a further 35% interest in Horse Hill, our attention is now firmly refocused upon the Portland oil pool and the drilling of the much anticipated HH-2/2z Portland horizontal well, a key step towards establishing significant long-term production and cash flow from Horse Hill by the end of the year. Meanwhile, the Kimmeridge continues to produce solidly and beyond our technical expectations, which bodes extremely well for the future Kimmeridge development at Horse Hill and elsewhere in our licences in the Weald Basin.”
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