Member Article

‘World class’ oil resource discovered at Gatwick site

UK Oil & Gas Investments (UKOG) has announced that over 100 billion barrels worth of oil have been discovered at the Horse Hill site near Gatwick Airport, considerably more than initially thought.

A contracted alliance between Solo Oil and US-based Nutech Ltd have estimated that the Horse Hill-1 well in the Weald Basin has a total oil in place (OIP) of 158 million barrels per square mile, not including the previously reported Upper Portland Sandstone oil discovery in which Solo holds 6.5% interest.

The Horse Hill licences cover 55 square miles of the Weald Basin in southern England in which OKOG has a 20.36% interest.

In a report, Nutech states this OIP lies within a 653 feet aggregate net pay section, primarily within three argillaceous limestones and interbedded mudstones of the Kimmeridge, and the mudstones of the Oxford and Lias sections.

Approximately 72% of OIP, or 114 MMBO, lies within the Upper Jurassic Kimmeridge interbedded limestone and mudstone sequence.

Stephen Sanderson, UKOG’s CEO, commented: “Drilling the deepest well in the basin in 30 years, together with the ability to use concepts, techniques and technology unavailable in the 1980s, has provided new cutting-edge data and interpretations to comprehensively change the understanding of the area’s potential oil resources.”

“As a result, we believe that, in addition to the Portland Sandstone oil discovery, the Horse Hill well has discovered a possible world class potential resource in what is interpreted to be a new Upper Jurassic “hybrid play”.

Neil Ritson, Solo’s Chairman, said: “Following the drilling of the deepest well in the Weald Basin for over 30 years and using up to date techniques that have been developed in recent years a hybrid play involving thermally mature Kimmeridge source rocks and porous limestones has emerged that may have very major significance for the Basin and for Solo’s interest. We look forward to further analysis as it is completed.”

There has been widespread concern over fracking in the region, despite UKOG consistently stating that it does not employ this method.

The company says that the oil at Horse Hill is held in rocks that are naturally fractured, which “gives strong encouragement that these reservoirs can be successfully produced using conventional horizontal drilling and completion techniques”.

However, it notes that further drilling and well testing will be needed to prove these initial results.

This was posted in Bdaily's Members' News section by Ellen Forster .