UK Oil & Gas Investments PLC has unveiled a 53% upgrade to the oil in place in the ‘conventional’ portion of the Horse Hill discovery near Gatwick Airport.
The ‘P50 estimate’ (meaning there is a 50% certainty of crude being produced) rises to 32mln barrels from 21mln prior to flow testing.
The numbers were compiled by a consultancy called Xodus, which puts the gross recoverable ‘2C contingent resource’ at 1.5mln barrels with ‘base case’ initial oil production of a highly respectable 350 barrels a day.
Early water injection could boost recoveries by 114-440%, the report says.
"I am very encouraged by the report's conclusions, particularly with respect to the significant further oil recovery that could be obtained from a simple water re-injection scheme,” said UKOG chairman Stephen Sanderson.
“Such schemes are typical practice in similar reservoirs in the US, but have not been widely utilised in the Weald Basin.
“We will aim to buck this trend, instigate such a programme and deliver the associated material monetary reward.”
Remember, the Portland is the shallowest oil horizon tapped by drilling at Horse Hill. The huge potential lies beneath that level in the Kimmeridge sandstone.
The exploration well tested at almost 1,700 barrels of oil a day, which surprised many experts and commentators.
While UKOG is the operator, Horse Hill has received investment from a host of companies listed on AIM.
It tested the Kimmeridge was well as going deeper into the Corallian formation.