Exploration business UK Oil & Gas Investments (Ukog) has described oil reserves confirmed yesterday in the Weald Basin near Gatwick that around 158M barrels per square mile as a “world class” resource.
Ukog made the announcement regarding the Horse Hill 1 well following investigation of the reserve by US-based petrophysical analysis company Nutech.
The Horse Hill licence covers a 55 square mile area. The 158M barrels of oil in place is located within the argillaceous limestones and interbedded mudstones of the Kimmeridge beds and the mudstones of the Oxford and Lias bed and does not include the previously reported Upper Portland Sandstone oil discovery.
“Drilling the deepest well in the basin in 30 years, together with the ability to use concepts, techniques and technology unavailable in the 1980s, has provided new cutting-edge data and interpretations to comprehensively change the understanding of the area’s potential oil resources,” said Ukog CEO Stephen Sanderson.
“As a result, we believe that, in addition to the Portland Sandstone oil discovery, the Horse Hill well has discovered a possible world class potential resource in what is interpreted to be a new Upper Jurassic ‘hybrid play’.
According to Sanderson, Nutech’s analysis using US analogues has estimated recovery factors of between 3% and 15% of oil in place.
“The company considers that the high pay thickness, combined with interpreted naturally fractured limestone reservoir with measurable matrix permeability, gives strong encouragement that these reservoirs can be successfully produced using conventional horizontal drilling and completion techniques,” he added,
“Appraisal drilling and well testing will be required to prove its commerciality, but there is potential for significant daily oil production.”
Flow testing the Portland Sandstone and Kimmeridge Limestone sections of the well willnow be undertaken to better understand the potential of the reserve.