EXCLUSIVE by Scottish Energy News
The onshore oil and gas company which is exploring the ‘Gatwick’ oil field near the airport in Surrey says it is likely to ‘gush like a North Sea oil well’ after latest drilling test results.
In its latest update for shareholders, UK Oil and Gas said says its test oil well at the Horse Hill site near Gatwick – the ‘largest onshore oil field in the UK’ – has seen successful flow tests during February and March.
AIM-listed UKOG owns a near-20% share in petroleum exploration licence N. 137 (PEDL), which includes its Horse Hill-1 field on the northern side of the Weald Basin near the airport.
Stephen Sanderson, Executive Chairman, UKOG, explained: “These latest flow test results are outstanding, demonstrating North Sea-like oil rates from an onshore well.
“This simple vertical well has achieved an impressive aggregate oil rate equivalent to 8.5% of total UK onshore daily oil production.
“The Portland also has greater flow potential as rates were limited by the test pump’s maximum capacity. Further significant flow rate improvements may be achieved from all zones using horizontal sidetracks during future planned operations.
“These results also cause us to rethink and recalibrate many prior geological assumptions. Nutech will now reinvestigate the presence of significant natural fracturing and oil in place figures for both the Portland and Kimmeridge units given that all flow periods produced 100% dry oil.
“Most importantly, this well has proven that the new Kimmeridge oil play is a reality within our Licence interests.
Whilst there is still much work to be done, this test has moved the project into a potential commercial reality. “
Addressing the anti-fracking movement, Sanderson commented: “In a wider sense, whilst it is absolutely correct for us all to press for low cost, renewable sources of electrical energy, we must be mindful that oil fills a very different strategic role.
“Oil is not used for electrical power generation but fuels all transport and the manufacture of essential everyday products, such as plastics and pharmaceuticals. Oil provides the vital feedstock for components that are essential for all industrial sectors.
“We are delighted, therefore, that this discovery has the serious prospect of being a meaningful addition to the UK’s own supply of oil in a period where North Sea production is declining more rapidly than expected.”
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