UK Oil & Gas Reports Positive Outcome To Horse Hill Repair Work

(Alliance News) - UK Oil & Gas PLC said on Monday work to stop water flowing into a well at Horse ...

Alliance News 9 March, 2020 | 2:51PM
Email Form

(Alliance News) - UK Oil & Gas PLC said on Monday work to stop water flowing into a well at Horse Hill has been successful.

UKOG owns an 86% stake in each of the two Horse Hill licences, PEDL137 and PEDL246, which are in Surrey. Alba Mineral Resources PLC owns 12% of each licence.

UKOG previously identified the flow of water into the Horse Hill-2z horizontal production well. A plug was used to try and remedy this, which the company said has been succesful.

Testing of the well post-repairs has now demonstrated the flow of dry oil to the surface. Flow rates since then have been encouraging, UKOG added, averaging 223 barrels of oil per day.

UKOG Chief Executive Stephen Sanderson commented: "Such water shut-off operations are routinely undertaken in production wells. However, success, particularly in horizontal wellbores and where water ingress is via open natural fractures, is by no means guaranteed.

"Consequently, this is an excellent result for the company as it has enabled HH-2z to flow dry oil to surface at encouraging initial rates. Our operations team deserves tremendous credit for this successful outcome."

George Frangeskides, executive chair at Alba, added: "We are very pleased to learn of the completion of the well intervention involving HH-2z and that, for the first time since completion of the drilling of the well in late 2019, a significant amount of dry oil has flowed to surface.

"We look forward to hearing of the outcome of the further works now planned to optimise and stabilise flow from the well."

UKOG shares were 7.2% lower on Monday afternoon in London at 0.529 pence each, while Alba was 12% lower at 0.075p.

By George Collard;

Copyright 2020 Alliance News Limited. All Rights Reserved.

Email Form

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
UK Oil & Gas PLC 0.19 GBX -2.63 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies