With the UKOG shareholders eyes firmly focused on the flow test results soon to arrive from Horse Hill, the company released an Executive Summary of their play in the Isle of Wight. We also received news yesterday that the rig was installed at Horse Hill to start flow tests.
Here is small overview for non-shareholders of UKOG
Isle of Wight licence & Horse Hill
With the UKOG shareholders eyes firmly focused on the flow test results soon to arrive from Horse Hill, the company released an Executive Summary of their play in the Isle of Wight. It may have escaped some with all the attention given to the company’s discovery near Gatwick but for those in for the long run, it shows that the company has more than one trick up its sleeve.
UK Oil & Gas Investments PLC (UKOG) has a 65% interest in the PEDL331 onshore Isle of Wight licence, which was recently offered in the 14th licence round
The summary produced by the Xodus Group analysis the results of a previous well, drilled by British Gas back in 1974, which until now reveals its secrets. The Xodus Group claim to have been able to determine the new potential available to UKOG from a stochastic simulation software tool used on those results. Someone in their IT department will be happy for that investment! What appears to have been British Gas’s misfortune for not realising the opportunity beneath the ground will benefit the new pioneers looking to profit from its reservoirs.
With UKOGs 65% interest in the region from the licence granted last year they will be eager to progress plans within the area in which their Chairman, Stephen Sanderson, has already stated they are intending to do. Following their previous statements with Horse Hill, they will be looking at using new methods to get the best out of the reservoir without impacting the region with massive hydraulic fracturing. Pleasing some who may be concerned about the environmental disruption.
The added bonus that came with the licence (PEDL331) includes the landward extension known as the M Prospect to the West. Promising similar formations to those found near Gatwick it will be interesting to see results of that survey later on in the year. If they are correct it looks as though this could add to the previous discoveries and increase the number of cards they already have tucked up their sleeves.
UKOG is slowly proving that they are ambitious in their attempt to be a key player within the UK. Continuing with is approach during a climate of low oil prices shows enthusiasm that many similar companies are struggling to maintain.
While we wait to see the anticipated results from Horse Hill it will be reassuring to some that the company has no intention of just focusing on what lies below Gatwick. The message is clear from UKOG that if they were in the music industry, they’ve an album to complete and no desire o be remembered as a ‘one-hit’ wonder.
Picture: Lisa Scott
The rig needed to start flow test arrived at the Horse Hill exploration well near Horley in Surrey yesterday afternoon and the start of testing looks to be drawing closer. The flow test is expected to last for around 30 days and will finally prove the true flow rate this well can produce.
Photos: Eddie Mitchell
In the top image we can see the red blow back preventer being lifted in to position on the well head, this tells me they are very close to starting operations.
We have submitted an Q&A to UKOG with their permission, we have not received a reply yet, but are in talks for a future re-visit with the company.