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EWT Updates, Portland & Kimmeridge Oil Discovery
EWT Updates, Portland & Kimmeridge Oil Discovery.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 2898A UK Oil & Gas PLC 10 September 2018 \n\n \nUK Oil & Gas PLC\n(\"UKOG\" or the \"Company\")\n \nPortland extended well test (\"EWT\") successfully completed, Kimmeridge EWT to commence \nHorse Hill-1 (\"HH-1\") Portland and Kimmeridge oil discovery, Weald Basin, UK \n \nKey Points:\n \n· Final HH-1 Portland flow test sequence successfully completed. all Portland operational objectives achieved.\n· Successful Portland re-perforation programme targeted 114 feet of oil pay, adding 14 feet of new pay. Following re-perforation, well productivity increased by up to 65%. \n· Independent oil consultants Xodus Group's (\"Xodus\") analysis of flow and pressure data interprets that further HH-1 Portland vertical well optimisation could achieve a forecast sustainable initial 24/7 pumped rate of around 362 barrels of oil per day (\"bopd\")* when full scale long-term production commences, exceeding original estimates. This analysis is key as it establishes the absolute flow potential of the Portland reservoir for future production wells.\n· Given the knowledge of the Portland's true flow potential, plans are now being formulated to drill either the HH-1z sidetrack or HH-2 new drill as a horizontal Portland appraisal well, with a targeted* sustainable daily production rate of 720 to 1,080 bopd, 2 to 3 times the forecast calculated* HH-1 vertical well rate of 362 bopd. All planning permissions, Environment Agency permits and the HH-2 well cellar are in place for a horizontal well. If successful it is envisaged that all future Portland production will be via horizontal wells. \n· The Company's economic modelling indicates that HH-1 Portland is robustly commercial at even the lowest observed sustainable daily rate of 140 bopd and at oil prices below $60 per barrel. A formal Horse Hill Developments Ltd (\"HHDL\") declaration of Portland commerciality is therefore expected shortly following receipt of Xodus' final connected oil volume analysis. A planning application for long term production is planned to be submitted to Surrey County Council shortly, prior to the completion of the forthcoming Kimmeridge EWT programme. Full-scale long-term production, targeted for 2019, is su...