UKOG update September 30th 2019 - Well spud and SCC Final planning approval for Horse Hill

Horse hill rig

RNS September 30th 2019

UKOG announce that drilling operations for its new Horse Hill-2/2z Portland well commenced (spudded) on Sunday morning, 29 September.


HH-2/2z, the first of two new horizontal wells in the field's Portland oil pool, is designed to be retained as a future production well, capable of delivering flow rates significantly higher than the previously reported 362 barrels of oil per day ("bopd") from the HH-1 vertical Portland discovery well. Following a planned extensive HH-2z production flow-testing campaign, both HH-2z Portland and the HH-1 Kimmeridge well are expected to be put into long term production by the end of 2019.

Stephen Sanderson, UKOG's Chief Executive, commented:

“The spud of HH-2/2z is another UKOG landmark milestone and a key enabler towards establishing long term oil production at Horse Hill. We are confident that the meticulously planned HH-2/2z operation, the first of two planned horizontal wells in the Portland oil pool, leaves little to chance. We look forward to a safe and successful drilling campaign and to the realistic prospect of HH-2/2z delivering a significant increase in UKOG's net oil production and associated revenues before the end of 2019."

Forward Drilling Plans:

The HH-2 pilot, designed to acquire key geological data to ensure the horizontal is correctly positioned within the Portland reservoir, will drill ahead in 12¼" diameter hole down to around 2,000 ft below surface and will then be cased back to surface. Drilling of 8½" diameter hole and conventional coring over the full vertical extent of the Portland oil pool will then follow.

Upon reaching a total depth of approximately 3,000 ft, HH-2 will be electric logged and then plugged back in preparation for the immediate start of HH-2z. The planned HH-2z trajectory, of total length of approximately 5,800 ft from surface, will contain a horizontal section of approximately 3,200 ft wholly within the Portland reservoir's most oil-productive zone.

HH-1 Kimmeridge Flow Test Update:

Following last Monday's shut-in, necessary to ensure safe rig assembly, test production from the HH-1 Kimmeridge oil pool was restarted on Saturday at initial half hourly rates of between 302-473 bopd. Kimmeridge test production is planned to continue throughout the drilling campaign. Further drilling and testing updates will be issued in due course.

Final approval for Horse Hill for UKOG and Alba

TOWN AND COUNTRY PLANNING ACT 1990

SURREY COUNTY COUNCIL AS COUNTY PLANNING AUTHORITY HAVING TAKEN THE

ENVIRONMENTAL STATEMENT AND ENVIRONMENTAL INFORMATION AS DEFINED BY

THE TOWN AND COUNTRY PLANNING (ENVIRONMENTAL IMPACT ASSESSMENT)

REGULATIONS 2017 INTO CONSIDERATION DO HEREBY GRANT PLANNING

PERMISSION FOR RETENTION AND EXTENSION OF AN EXISTING WELL SITE, HH1 AND

HH2 WELLS, AND VEHICULAR ACCESS TO ALLOW: THE DRILLING OF FOUR NEW

HYDROCARBON WELLS AND ONE WATER REINJECTION WELL; THE CONSTRUCTION

OF A PROCESS AND STORAGE AREA AND TANKER LOADING FACILITY; NEW

BOUNDARY FENCING; WELL MAINTENANCE WORKOVERS AND SIDETRACK DRILLING;

AND ANCILLARY DEVELOPMENT ENABLING THE PRODUCTION OF HYDROCARBONS

FROM SIX WELLS, FOR A PERIOD OF 25 YEARS.

AT HORSE HILL WELL SITE, HORSE HILL, HOOKWOOD, HORLEY, SURREY RH6 0HN

SUBJECT TO THE FOLLOWING CONDITIONS: IMPORTANT CONDITION NUMBERS 8, 11, 16, 19, 24 MUST BE DISCHARGED PRIOR TO THE COMMENCEMENT OF THE DEVELOPMENT.

Looking at 8,11,16,24 conditions, no issues.

SCC planning approval Sep 2019 Horse Hill final