Member Article

Flow test given government go-ahead at Gatwick oil site

The Environment Agency has granted a waste permit to the developer behind the Horse Hill oil resource, near Gatwick airport, allowing for the commencement of tests to measure oil flow.

The company already held a permit to drill the exploratory borehole and manage wastes arising from that process; this variation allows them to test whether the oil reserves will flow and at what rate. The agency has confirmed that no hydraulic fracturing will take place as part of this activity.

The Environment Agency said it considered the opinions raised by local people during the 4-week consultation with communities, interested groups and other professional organisations before reaching this decision.

The company has also been issued with an environmental permit to manage and dispose of radioactive waste containing naturally occurring radioactive material arising from the production of oil and gas.

This permit limits the amount of waste allowed on site at any one time and requires aqueous and solid wastes to be disposed of within 3 months, at sites permitted to receive and dispose of these radioactive wastes.

A spokesperson for the Environment Agency said: “We would like to thank all those people who responded to the consultation. Since the consultation period closed, Horse Hill Developments Limited has provided additional information to clarify some of the aspects of their application for flow testing.

“After considering all of the information available and completing our assessment we are confident that the environment and people will be protected. Environment Agency officers will now ensure compliance with these operating conditions during the next phase of works.”

UK Oil and Gas Investments holds a 30 per cent stake in Horse Hill Developments, whilst Doriemus PLC, Stellar Resources PLC, Solo Oil PLC and Alba Mineral Resources PLC each hold 10% stakes in Horse Hill Developments, with Evocutis PLC holding a 2 per cent stake and the balance is owned by Angus Energy, in which UK Oil & Gas has a 6 per cent stake.

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.

In a joint statement, the companies said: “The company expects these flow tests to be conducted in the coming months as soon as practicable following the last remaining regulatory sign-offs from the Health and Safety Executive and Oil and Gas Authority.”

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