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Horse Hill contains 9.2bn barrels oil-in-place, says new report

Published: 17:15 18 Jun 2015 AEST

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The new report is a 'significant step' in understanding Horse Hill's resource potential

The Horse Hill discovery, near Gatwick airport, has been estimated in excess of 9.2bn barrels of oil.

This latest estimation of Horse Hill comes from independent consultant Nutech, which previously estimated the newly discovered ‘play’ could host 158mln barrels per square mile.

Today’s estimate specifically looks at the 55 square mile area covered by Horse Hill licences (PEDL 137 and PEDL 246), and refers to the oil-in-place (OIP) within Jurassic mudstone and tight limestone sections.

It is not an estimation of what may be recoverable from Horse Hill, nor does it include the project’s conventional Portland oil discovery, which is believed to contain a more accessible 21mln barrels of in-place oil.

The new 9.2bn barrel estimate comprises various formations including both shale and ‘tight’ conventional reservoirs.

Nutech, an American specialist in ‘tight’ reservoirs, believes that the deeper discoveries in the Horse Hill well are possibly analogous to well-known US ‘hybrid’ plays such as the Bakken, Wolfcamp, Bone Springs.

Using its own database Nutech asserts that in the analogous US plays oil recovery rates were between 3% and 15%, though it says more work will be required to determine the likely recovery factor for Horse Hill.

"Nutech's latest report is a significant step towards understanding the resource potential of our Weald licences, being the first independent semi-regional quantification of OIP over the area that incorporates the findings from the company's HH-1 well,” said Stephen Sanderson, chief executive of UK Oil & Gas Investments (LON:UKOG), a 20% stakeholder in the project.

“The results, utilising over 114 wells in the basin, confirm the likely presence of significant and potentially extensive hydrocarbon volumes within the licence areas and thus provides a further valuable step towards ‘proof of concept’ for the identified Jurassic resource plays.”

Sanderson highlighted that Nutech would now advise on the plans for flow testing at Horse Hill, and will also assist in evaluation the potential across UKOG’s other UK licences.

Fellow Horse Hill stakeholders include Solo Oil (LON:SOLO), Doriemus (LON:DOR), Alba Minerals (LON:ALBA), Stellar Resources (LON:STG) and Evocutis (LON:EVO).

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