UK oil and gas target rises by half

The most recent and Horse Hill Portland test results have been revealed, and it appears that due to a larger pump, UK Oil and Gas (UKOG) has increased the last recorded flow rate of oil from the Portland reservoir’s Horse Hill 1 discovery well by 50%.

There is still a great deal of toil to be done, but this final test pushes the scheme forward to a ‘potential commercial reality’, and the broker for UKOG believes that shares are worth a lot more than was originally suggested.

The tests found that a stable number of 323 barrels of oil each day could be achieved using a more sizeable pump. That number is the highest for any onshore Portland well in the UK.

The Horse Hill 1 discovery, at present, has a combined flow rate of 1,688 barrels of oil per day, with a maximum of 2,608 barrels of oil per day.

Pressure at the reservoir remains strong during the course of several tests, and company management is positive that the current reliable rate can be increased with the use of a down hole pump with a higher holding ability during the next set of tests.

Speaking about the tests, UKOG’s executive chairman Stephen Sanderson said:

“The flow test results are outstanding, demonstrating North Sea-like oil rates from an onshore well. This simple vertical well has achieved an impressive aggregate oil rate equivalent to 8.5% of total UK onshore daily oil production.”

If this venture is successful, it could mean that oil companies like Royal Dutch Shell use oil from this site in Shell Tellus S2 M 46 and other products.