The first batch of production testing results from the Horse Hill project has boosted the small cap companies invested in the UK oil project.
Initial oil flows from the conventional Portland reservoir are described as being equal to or exceeding the past results from the 2016 test programme.
The highest observed hourly rate was said to be equivalent to 352 barrels of oil per day, but, in a series of stock market statements revealed that the oil flows have not yet been optimised for maximum sustainable flow rates.
Based on the initial analysis, it was stated that the well’s productivity is unaffected by 2 year shut-in period since 2016.
The first of three planned test sequences will shortly begin, following a 24-hour shut in.
Meanwhile, a tanker carrying some 214 barrels of dry oil has been mobilized to BP's Hamble oil terminal.
UK Oil & Gas Investments PLC (LON:UKOG), the largest London listed stakeholder with 32.43%, saw its shares advance around 6% immediately after the statement. Elsewhere, fellow stakeholders Solo Oil PLC (LON:SOLO) and Alba Minerals Resources Plc (LON:LON:ALBA) also moved on the front foot, rising around 8% and 6% respectively.
"Extremely positive" indications
“Although we are in the very early stages of our 150-day test campaign at Horse Hill, the signs to date are extremely positive for the Portland oil pool.”
Sanderson added: “The unexpected bonus of natural oil flow to the surface, without the use of a pump, gives us cause for further optimism regarding the Portland's overall commercial potential. It is important at this stage, however, to keep our expectations at a realistic level.
“The company looks forward to further positive results from the remaining Portland test sequences and then the testing of the two deeper and higher productivity Kimmeridge Limestone oil pools.”
Solo Oil chairman Neil Ritson, meanwhile, added: "This is an excellent start to the extended well tests at Horse Hill and fully confirms our expectations for the productivity of the Portland reservoir.
“A lot more testing is planned over the coming months and we look forward to further positive updates from the operator as the test sequence progresses."