logo-loader
EnergyOil & Gas
viewSolo Oil PLC

Horse Hill oil stocks advance on initial production test results

Initial indications are better than expected ahead of the formal sequence of testing in the Horse Hill well.

oil and gas operations
The Portland flowed at an equivalent rate to 352 bopd

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.

WATCH: Alba Mineral chairman looks forward to definitive Horse Hill flow test results

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.

READ: UKOG raises more capital as Horse Hill remains in the spotlight

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.

"Test results to date have exceeded our initial expectations given the length of time the well was shut-in since 2016,” said Stephen Sanderson, UK Oil & Gas Investments PLC (LON:UKOG), which is the

"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."

Quick facts: Solo Oil PLC

Price: 2.425 GBX

AIM:SOLO
Market: AIM
Market Cap: £15.32 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Solo Oil PLC named herein, including the promotion by the Company of Solo Oil PLC in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Solo Oil's Neil Ritson on Horse Hill, Ruvuma and plans to refresh the team

Neil Ritson, chairman of Solo Oil PLC (LON:SOLO), discusses with Proactive's Andrew Scott the first batch of production testing results from Horse Hill,  the decision by their partner at Ntorya, Aminex plc (LON:AEX) to farm-out two-thirds of its 75% interest in the project and the...

on 19/7/18

RNS

Suspension - Solo Oil Plc

6 days, 15 hours ago

Interim Results

2 weeks, 5 days ago

Ruvuma Update

3 weeks, 1 day ago

Management Appointments

3 weeks, 2 days ago

3 min read