logo-loader
viewAlba Mineral Resources PLC

Alba Mineral Resources confirms Horse Hill progress as first tests complete

First tests confirmed the well could flow at rates significantly above the existing vertical well, as expected

Alba Mineral Resources PLC - Alba Mineral Resources confirms Horse Hill progress as first tests complete

Alba Mineral Resources PLC (LON:ALBA) has updated on the Horse Hill oil project where a new horizontal well has completed its initial flow testing period, showing positive rates but also a requirement for certain interventions.

Fellow Horse Hill stakeholder UK Oil & Gas PLC (LON:UKOG) highlighted that the new horizontal well initially flowed at some 1,087 barrels of fluid per day during ‘clean-up’ with oil cuts of up to 60%.

Crude oil produced in the initial testing has been exported to Perenco's Hamble oil terminal for onward sale at market price, UKOG noted.

READ: UKOG confirms completion of initial tests for horizontal Horse Hill well

The well is now shut-in for a scheduled long duration pressure build-up test.

In the meantime, preparations will now be made to finalise a series of planned interventions to further optimise flow rates from the Portland reservoir's sweet-spot.

Whilst the HH-2z well continued to clean-up prior to the current shut-in, returning crude oil, it also showed evidence of formation water ingress. Additional routine intervention will also take place to remedy this ingress, it added.

Further operations will take place in the New Year.

Alba noted that on 18 December, immediately after HH-2z was shut-in, production testing operations resumed for the vertical HH-1 well – yielding an initial rate of 354 bopd.

The Horse Hill partners have also now submitted a field development plan to the UK Oil and Gas Authority seeking consent for the first development phase – effectively the greenlighting of a two-well production operation from the pair of already drilled wells.

Looking further ahead, subsequent phases of development would involve further infill production wells and a possible water reinjection well.

These later phases of development would be included in separate submissions, in the coming year, once there is better understanding of the field’s longer-term behaviour.

Alba owns an 11.765% interest in the Horse Hill Developments Limited (HHDL) vehicle, which in turn is the operator (and 65% stakeholder) of the Horse Hill licences.

Quick facts: Alba Mineral Resources PLC

Price: 0.075 GBX

AIM:ALBA
Market: AIM
Market Cap: £3.11 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...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Electric vehicle sales to accelerate following coronavirus pandemic

Roskill analyst Jose Lazuen tells Proactive London's Andrew Scott severe falls were expected in EV sales but that European and Chinese policies coupled with consumer preferences have shown them to remain strong. He adds that policy is going to favour and push EV sales in certain jurisdictions...

2 days, 11 hours ago

2 min read