Alba Mineral Resources PLC (LON:ALBA) has hailed “rapid progress” in the drilling of a horizontal well at the Portland reservoir of the Horse Hill project near Gatwick, in which it owns an 11.8% stake.

The AIM-listed firm, citing an update from Horse Hill’s largest stakeholder, UK Oil & Gas PLC (LON:UKOG), said the Horse Hill-2z well had successfully drilled 2,016 feet into the Portland reservoir’s most oil-productive zone, and that the remaining 1,200 ft of drilling is expected to be completed “over the coming days”.

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HH-2z is designed to be used as a production well in the future, with Alba saying the well has potential to deliver flow rates that are “significantly higher” than those produced from an extended well test programme at the reservoir.

“We are delighted to hear of the rapid progress that has been made in drilling this Portland horizontal well, with two-thirds of the horizontal already completed and the well's trajectory being kept within what is believed to be the Portland Sandstone's most oil-productive zone”, said Alba’s executive chairman, George Frangeskides.

“We look forward to the expected completion of the well in the next few weeks, and then await with great anticipation the start of extended well testing, given the potential for a horizontal well to deliver significantly higher flow rates", he added.

In early trading on Monday, Alba’s shares were steady at 0.18p.