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UK: UKOG announces Horse Hill-1 and Horse Hill-2/2z drilling and testing update

12 Sep 2019

Photo - see caption

UK Oil & Gas (UKOG) has announced that final site works to accommodate the arrival of the rig to drill the new Horse Hill-2/2z ('HH-2/2z') Portland horizontal well commenced at 1200 hrs, Friday 30 August and were completed yesterday. Test production from the Horse Hill-1 ('HH-1') Kimmeridge oil pool was temporarily shut-in to permit oil storage tanks and flowlines to be relocated to enable safe simultaneous drilling and HH-1 testing operations. Kimmeridge test oil production has now resumed and will continue until the rig arrives, when a further short shut-in will occur to enable the HH-2/2z drilling set-up to be assembled.

Prior to the current shut-in, Kimmeridge test production reached a total of 36,559 barrels ("bbl") of dry Brent quality crude at a final metered rate of 313 bbl of oil per day ("bopd") over the final 48 hour test period. Peak instantaneous rates of up to 374 bopd were recorded during this period. Total aggregate Portland and Kimmeridge test production now stands at a landmark 66,127 bbl. Kimmeridge production is planned to continue during the drilling campaign.

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.

Following UKOG's recent acquisition of Tellurian's 35% direct share of Horse Hill, the Company now holds a controlling 85.635% interest in the field and surrounding highly prospective PEDL137 and PEDL246 licences, which continue to be operated by UKOG's subsidiary company, Horse Hill Developments Ltd, in which UKOG holds a 77.9% direct controlling interest.

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
Photo - see caption

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.'

Original article link

Source: UKOG

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