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New analysis reveals potential conventional oil reserves in the south of England

09th April 2015

A new analysis of oil deposits in the south of England have suggested a total 100 billion barrels of conventional oil could lie beneath the Weald Basin with a 3 to 15 per cent recovery rate

A new analysis of oil deposits in the south of England have suggested a total 100 billion barrels of conventional oil could lie beneath the Weald Basin with a 3 to 15 per cent recovery rate
The Horse Hill licences cover 55 square miles of the Weald Basin in southern England in which the UKOG has a 20.36 per cent interest

“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 Stephen Sanderson, UKOG's CEO.

UK Oil & Gas Investments has announced that US-based Nutech Ltd, one of the world's leading companies in petrophysical analysis and reservoir intelligence, estimate that the Horse Hill-1 (HH-1) well in the Weald Basin has a total oil in place (OIP) of 158 million barrels of oil per square mile, excluding the previously reported Upper Portland Sandstone oil discovery.

The Horse Hill licences cover 55 square miles of the Weald Basin in southern England in which the UKOG has a 20.36 per cent interest.

Nutech's report to UKOG states this OIP lies within a 653 feet aggregate net pay section, primarily within three argillaceous limestones and interbedded mudstones of the Kimmeridge, and the mudstones of the Oxford and Lias sections. Approximately 72 per cent of OIP, or 114 MMBO, lies within the Upper Jurassic Kimmeridge interbedded limestone and mudstone sequence.

"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’.”

The Horse Hill-1 well is located within onshore exploration License PEDL 137, on the northern side of the Weald Basin near Gatwick Airport.  UKOG owns a 30 per cent direct interest in Horse Hill Developments Ltd (HHDL) and a 1.32 per cent interest in HHDL via its 6 per cent interest in Angus Energy Limited. HHDL is a special purpose company that owns a 65 per cent participating interest and operatorship of Licence PEDL 137 and the adjacent Licence PEDL 246 in the UK Weald Basin.

From its proprietary regional well log analyses Nutech considers that the HH-1 OIP extends significantly beyond the 55 square miles of PEDL137 and PEDL246 with strong evidence that the eastern section of the Weald Basin contains considerably larger oil potential than has been previously estimated and published. This regional potential is the subject of ongoing analysis under NUTECH's contracted alliance with UK Oil & Gas Investments PLC and Solo Oil Plc.

"With the help of Nutech's considerable global knowledge base and play library, we have identified that the Horse Hill Upper Jurassic rock sequence is analogous to known oil productive hybrid reservoir sections of the Bakken of the US Williston Basin, the Wolfcamp, Bone Springs, Clearfork, Spraberry, and Dean Formations in the US Permian Basin and the Bazhenov Formation of West Siberia."

"The US analogues have estimated recovery factors of between 3 per cent and 15 per cent of Oil in Place."

Fracture analysis, together with information from offset well information, indicates that the Kimmeridge shows good evidence of natural fracturing, particularly in the Middle Kimmeridge Limestone 1 and 2 pay sections.

"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.

 "Nutech's results, combined with our extensive geochemical analyses, strongly indicates that the company's Horse Hill licences lie within the likely sweet spot of the identified ‘Weald hybrid play’.”

Final assessments of the Upper Portland sandstone reservoir and the Oxford and Lias sections are still being completed with the assistance of UKOG and its technical team. The overall regional potential of the Weald Basin is the subject of ongoing analysis under the contracted alliance.

In order to establish estimates of total OIP within the licence area, the semi-regional resource potential of the Weald Basin's eastern footprint is the subject of ongoing analysis under the contracted alliance between Nutech, UKOG and Solo Oil Plc.

"Appraisal drilling and well testing will be required to prove its commerciality, but this Weald hybrid play has the potential for significant daily oil production."

"The operator, Horse Hill Developments Ltd, with the assistance of Nutech, is now focussed on flow testing the Portland Sandstone and Kimmeridge Limestone sections of the well, to establish producibility and thereby seeking to quantify an overall net discovered resource.”

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