Business
Horse Hill oil field update
Horse Hill oil field update.
About this update from Uk Oil & Gas Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 8473L\n UK Oil & Gas PLC\n 15 January 2021\n \n \n \n \n UK Oil & Gas PLC\n \n \n (\"UKOG\" or the \"Company\")\n \n \n \n \n \n Horse Hill oil field update\n \n \n \n \n \n UK Oil & Gas PLC (London AIM: UKOG) is pleased to provide the following operational update for its 85.635% owned Horse Hill oil field.\n \n \n \n \n Production\n \n \n \n To date, the field has produced and exported over 132,000 barrels (\"bbl\") of Brent quality crude from its Kimmeridge and Portland oil pools.\n \n Despite the planned October and November downtime for the Horse Hill-1 (\"HH-1\") intervention, the total Portland oil production for the first quarter of UKOG's 2020/21 financial year to December 2020 was 7,045 bbl. The average production uptime was 57% over the period and ranged from 37% during October's main HH-1 intervention period, to 85% in November, post-intervention. \n \n As announced on 5 November 2020, we safely completed an intervention to reperforate the full Portland oil producing section, insert a new simplified production tubing string and set the downhole pump at a deeper level to increase Portland pumping efficiency. \n \n \n The intervention was immediately followed by an ongoing series of multi-week production optimisation trials to achieve an optimum balance between oil revenues and water handling and other operational costs. Trials include well-cycling (i.e., shutting in the well for a set period each day to reduce water inflow) and pump fill optimisation. The trials are expected to continue for several months. Early results are encouraging, with stable water influx levels achieved by the end of 2020.\n \n Water reinjection plans\n \n \n \n Formation water production and an associated drop in overall oil production is entirely normal in conventional oil fields, and its management, necessary to optimise net revenue, is routine oil field practice. For this reason, Horse Hill's planning consent included a provision for a formation water reinjection well.\n \n Consequently, to remove the need for expensive off-site water disposal via tanker and to also help maximise oil recovery by supporting reservoir pressure, HH-2z will now be reconfigured, subject to regulatory consent, into a water re-injection well as soon as practi...