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UKOG says new well is “optimally placed” as horizontal drilling completes

"We are delighted to have safely and successfully delivered a significant 2,500 ft of horizontal section within the Portland reservoir's sweet-spot, the prime 35 ft zone containing the reservoir's most oil productive sandstones."

UK Oil & Gas PLC - UKOG says new well is “optimally placed” as horizontal drilling completes
The well will shortly begin an extended production test

UK Oil & Gas PLC (LON:UKOG) has confirmed the successful completion of horizontal drilling at the Horse Hill project.

Horse Hill’s largest stakeholder, in a statement, declared that the new well is “optimally placed” to deliver significantly higher production rates compared to the vertical HH-1 well which remains in extended well testing.

HH-1 well has to date flowed in excess of 77,200 barrels of crude oil from two separate zones, the Portland reservoir and the deeper Kimmeridge play.

Test production in the Portland achieved maximum flow rates of around 362 barrels per day in the vertical HH-1 well.

In the new well, HH-2z, some 2,500 feet was successfully drilled horizontally wholly within the targeted ‘sweet spot’ of the conventional Portland oil reservoir.

It was decided, according to Alba, that there was little technical or economic merit in completed the maximum allowed horizontal section, of 3,000 feet, because the programme achieved a good, clean horizontal trajectory.

The new horizontal well (HH-2z) is now being prepared for extensive well testing, due to start in the coming weeks, ahead of a transition into long term production.

It is anticipated that the well test will include the use of a downhole electric pump over a 90-day period.

UKOG chief executive Stephen Sanderson said: "We are delighted to have safely and successfully delivered a significant 2,500 ft of horizontal section within the Portland reservoir's sweet-spot, the prime 35 ft zone containing the reservoir's most oil productive sandstones.

“The significant horizontal trajectory, combined with the continued positive indications of increased reservoir quality and lower pressure-depletion, effectively negated any technical or economic need to attain the maximum planned c. 3,000 ft horizontal section.

“As a result, HH-2z remains optimally placed to be able to deliver its goal of significantly higher flow rates than the highly productive HH-1 vertical discovery."

He added: “We now look forward to the imminent flow test campaign, a key step towards delivering significant long-term production at Horse Hill."

UKOG holds 85.635% of Horse Hill via both direct interest in the project and a stake in the HHDL vehicle.

AIM market peer Alba Mineral Resources PLC (LON:ALBA) holds an 11.765% interest in Horse Hill Developments Limited (HHDL) which in turn owns 65% of the project.

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