UK Oil & Gas PLC Horse Hill oil field update (4250E)
November 05 2020 - 9:28AM
UK Regulatory
TIDMUKOG
RNS Number : 4250E
UK Oil & Gas PLC
05 November 2020
UK Oil & Gas PLC
("UKOG" or the "Company")
Horse Hill oil field update
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
that surface-based intervention operations at its 85.635% owned
Horse Hill-1("HH-1") well have now has been completed. The well has
now been shut in for a long term pressure build up test ("PBU"),
designed to provide data necessary to understand whether the
Portland reperforation programme has achieved the desired
optimisation of well inflow performance.
As previously announced on October 1(st) , the intervention's
objective was to optimise oil flow by reperforating the full
Portland oil producing section, inserting a new production tubing
string and thus enabling the downhole pump to be placed at a deeper
level. Originally the intervention was planned for April/May but,
due to the COVID-19 lockdowns in both the UK and USA, a further
unforeseen 6-month delay was introduced. Further updates will be
reported when the PBU data has been fully analysed and
interpreted.
The HH-1 intervention and other related activities are part of
normal oil well optimisation. By their very nature, these
operations and the continual need to optimise pump performance, can
result in considerable down time i.e. periods of no production as
such monthly or annual production figures may not fully reflect the
long term flow rates of the well. During 6-month period to the end
September 2020, approximately 28,060 bbls of oil were produced over
approximately 135 operating days.
It should also be noted that in the normal course of
conventional oil well optimisations there can be a requirement to
change the placement of the downhole pump should the flow
characteristics change over time, this can be the result of various
factors including the break-out of solution gas and increased water
cut, translating directly into a production decline over time. It
is also normal that individual conventional oil well production
declines over time.
The Horse Hill Portland and Kimmeridge oil field is operated by
UKOG's subsidiary company Horse Hill Developments Ltd ("HHDL"), in
which UKOG has a direct 77.9% interest. HHDL has a 65% interest in
the field and surrounding PEDL137 and PEDL246 licences, with the
remaining 35% interest held by UKOG's wholly owned subsidiary, UKOG
(137/246) Ltd.
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 37 years of
relevant experience in the global oil industry, has approved the
information contained in this announcement. Mr Cartwright is a
Chartered Engineer and member of the Society of Petroleum
Engineers.
For further information, please contact:
UK Oil & Gas PLC
Stephen Sanderson / Kiran Morzaria Tel: 01483 941493
WH Ireland Ltd (Nominated Adviser
and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Communications
Brian Alexander Tel: 01483 941493
Glossary
oil field an accumulation, pool or group of pools of
oil in the subsurface that produces oil to
surface
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014
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END
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