Schlumberger Estimates 10.99B Barrels of OIP in Horse Hill License Area

UK Oil & Gas Investments (UKOG) announced Wednesday that 10.993 billion barrels of mean oil in place (OIP) has been independently calculated by Schlumberger to lie within the 55 square miles of the PEDL137 and PEDL246 Horse Hill licenses.

The tight Jurassic limestones and shales of the Kimmeridge Clay Formation in the licence area are calculated by Schlumberger to contain a total OIP of 8.262 billion barrels, with the shales of the Oxford Clay and Lias formations holding 1.017 billion barrels and 1.714 billion barrels of OIP, respectively.

Schlumberger’s latest estimates build on the company’s previous petrophysical evaluation of the Horse Hill-1 well, located in PEDL137 near to London Gatwick Airport, which estimated the gross OIP for the Jurassic section of the UK’s HH-1 well to be approximately 271 million barrels of oil per square mile. A previous report by US petrophysical analysis firm Nutech estimated that the Horse Hill-1 well contained a total OIP value of 158 million barrels per square mile. Schlumberger’s new report incorporates the analysis of a further nine wells located within and beyond the licence area.

Stephen Sanderson, UKOG's chairman, commented in an organization statement:

"The independent analysis has further tested and given support to our geological model which predicts that the significant volumes of OIP calculated within the tight Jurassic section of HH-1 extend across the licence area. The report is thus a further step towards establishing proof of concept for the Jurassic tight oil play potential of Horse Hill and the Weald Basin."

In addition to its impending HH-1 flow test studies for the Portland sandstone and underlying tight Jurassic oil zones, UKOG has also commissioned related engineering and environmental studies to investigate a conceptual Weald Jurassic field development. UKOG owns a 30 percent direct interest in Horse Hill Developments Ltd (HHDL), which owns a 65 percent participating interest and is the operator of PEDL137 and PEDL246.

Neil Ritson, chairman of Solo Oil, which holds a 10 percent direct interest in HHDL and a net interest of 6.5 percent in PEDL137 and PEDL246, commented in a company statement:

“The prospective resources in the Jurassic could clearly be very substantial. The upcoming flow test of the Portlandian discovery will also be important in establishing the viability of conventional reservoirs to produce commercially from the Horse Hill oil discovery.”


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