RNS Number : 4696R
UK Oil & Gas Investments PLC
09 March 2016

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Further Update on Horse Hill-1 Flow Test

Portland Zone Flows Oil at a Sustained Rate of 168 Barrels Per Day


UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Limited ("HHDL") has informed the Company that 37-degree API, light, sweet, dry (99-100% oil) crude has flowed to surface, via rod pumping, at an average stabilised rate of 168 barrels per day over a continuous 9-hour period. The flow is from an 103-ft aggregate perforated zone within the Upper Portland sandstone interval at a depth of approximately 615 metres below ground level. Maximum flow during this test period was restricted by the initial rod pump configuration. The flow test will now continue with a pump configuration designed to permit optimal flow over a longer flow period.

The Horse Hill-1 ("HH-1") well has now produced at a combined average stable rate of over 1,528 bopd from the two Kimmeridge and Upper Portland zones.

It should be noted that the only commercial Upper Portland oil production in the Weald Basin is from the nearby Brockham field, 8 km to the northwest of HH-1, in which the Company has an indirect 3.6% interest. The Brockham field was discovered by BP in 1987 and flowed 28-degree API oil on an extended well test in 1988, at a maximum stabilised rate on pump of 117 bopd. A subsequent extended well test in 2001, prior to commercial production, produced oil at an average pumped rate of approximately 140 bopd.

Horse Hill-1 Discovery Well and Licence

The exploration drilling phase of the HH-1 discovery well was originally completed at the end of 2014. The well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG owns a 19.968% interest in PEDL137.

Stephen Sanderson, UKOG's Executive Chairman commented:

"The Horse Hill well still continues to flow and perform above management's expectations. Higher flow rates and markedly better crude quality than the Upper Portland oil from the nearby Brockham field make the HH-1's commercial prospects very real. We look forward to the results from the optimised pumping programme."

UKOG's Interest in Horse Hill

The HH-1 well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. UKOG owns a 30% direct interest in HHDL and a 0.72% interest in HHDL via its 6% interest in Angus Energy Limited. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL137 and the adjacent Licence PEDL246 in the UK Weald Basin.

Qualified Person's Statement:


Stephen Sanderson, UKOG's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.


For further information, please contact:

UK Oil & Gas Investments PLC

Stephen Sanderson / Jason Berry                                                                             Tel: 020 7440 0640


WH Ireland (Nominated Adviser and Broker)

James Joyce / Mark Leonard                                                                                       Tel: 020 7220 1666


Square 1 Consulting (Public Relations)

David Bick / Brian Alexander                                                                                      Tel: 020 7929 5599





a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons

extended flow test

a flow test, as per the permission granted by the Oil and Gas Authority, with an aggregate flow period duration over all zones of greater than 96 hours and up to 90 days maximum

flow test

a flow test or well test involves testing a well by flowing hydrocarbons to surface, typically through a test separator. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate


a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone.


Notes to Editors:

The Company has interests in the following UK licences:



UKOG's Interest

Licence Holder


Area (km2)



Avington 1



UKOG (GB) Limited

IGas Energy Plc


Field in stable production.


Baxters Copse 2



UKOG Weald Limited

IGas Energy Plc


Reviewing economics of appraisal/ development well.


Brockham 1



Angus Energy 5

Angus Energy 5


Drilling of sidetrack well being considered.


Holmwood 3




Europa Oil & Gas (Holdings) plc


H-1 exploration commitment well planned.


Horndean 1



UKOG (GB) Limited

IGas Energy Plc


Field in stable production.


Horse Hill 4



Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6


Extended flow testing of HH-1.


Horse Hill 4



Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6


Extended flow testing of HH-1.


Isle of Wight (Offshore) 3



UKOG Solent Limited

UKOG Solent Limited


Preparing drilling planning submission


Isle of Wight (Onshore) 2 3






Preparing drilling planning submission


Lidsey 1



Angus Energy 5

Angus Energy 5


Drilling of infill well being considered.


Markwells Wood 2



UKOG (GB) Limited

UKOG (GB) Limited


Compiling Field Development Plan.





1. Oil field currently in production.


2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads.


4. Oil discovery pending flow testing.


5. UKOG has a 6% interest in Angus Energy. Angus Energy has a 70% interest in Lidsey and a 60% interest in Brockham.


6. UKOG has a direct 30% interest in HHDL, plus an indirect 0.72% interest via Angus Energy. HHDL has a 65% interest in PEDL137 and PEDL246.



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