UK Oil & Gas Investments (UKOG) has announced a new report by consultancy firm Xodus that calculated the Horse Hill Portland sandstone conventional oil accumulation as 32mmbbl of oil in Place (OIP), a 53% increase from the previously reported 21mmbbl in May 2015.
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The company has also stated that OIP should not be misconstrued as recoverable contingent resources or reserves.
UKOG executive chairman Stephen Sanderson said: “I am very encouraged by the report's conclusions, particularly with respect to the significant further oil recovery that could be obtained from a simple water re-injection scheme.
“Such schemes are typical practice in similar reservoirs in the US, but have not been widely utilised in the Weald Basin.
"We will aim to buck this trend, instigate such a programme and deliver the associated material monetary reward.
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By GlobalData“Upon the expected grant of the necessary regulatory consents, the company is fully geared to start long-term production testing at Horse Hill, commencing with the Portland.
“Our aim is to move towards a declaration of commerciality and stable long-term production from the Portland and Kimmeridge Limestones by the end of 2018.”
In March last year, UKOG reported that the final Horse Hill-1 (HH-1) Portland test flowed at a stable dry oil rate of 323bopd, producing light, sweet, 35 API gravity crude.
After analysing the Portland flow test data further and reviewing similar producing fields, Xodus estimates that the gross recoverable Portland 2C Contingent resources is 1.5mmbbl. Accordingly, net attributable Portland 2C resources are assessed at 0.5mmbbl.
Calculated OIP and resources indicate oil contained in the complete Portland structure, as penetrated by the HH-1 and Collendean Farm -1 wells.
The report also highlighted that for a shallow but permeable reservoir such as the Portland, a water re-injection scheme can provide pressure support in the field's early productive life, which will lead to a material increment in overall oil recovery.
Successful implementation of such a scheme is estimated to lead to the recovery of an additional 8%-14% of OIP, equivalent to a further 1.7mmbbl to 6.6mmbbl of gross recoverable oil, and a further 0.5mmbbl to 2.1mmbbl net to the company.
Located within onshore exploration Licence PEDL137, the HH-1 oil discovery well is situated on the northern side of the Weald Basin near Gatwick Airport.
UKOG owns a 31.2% interest in this property through its 48% ownership of the licence's operator HHDL.
Image: Horse Hill flow test. Photo: courtesy of UKOG.
