A new study has quadrupled UK Oil and Gas’ Kimmeridge reserves estimate, it was today confirmed.
UKOG said work done by Nutech positioned Kimmeridge to sit as “flagship” alongside its Horse Hill prospect.
Nutech calculates P50 Kimmeridge Clay Formation’s (KCF) oil in place (OIP) of 7.12 billion barrels (BBO), of which 1.71 BBO lies within Kimmeridge Limestones
Executive Chairman Stephen Sanderson said: “The Nutech analysis securely underpins our rationale for the Licence acquisition and BB-1 drilling plans in 2017. This study, and the resultant four-fold increase in the Company’s net Kimmeridge oil in the ground, clearly highlights PEDL234 as a potential flagship asset to sit alongside Horse Hill.
“The BB-1 well is designed not only to test a geological mirror-image of the Horse Hill Kimmeridge oil discovery, but, more significantly, to also seek to establish whether Kimmeridge Limestone oil is truly an extensive resource play. If so proven, given the sheer size of the PEDL234 Licence, our 100% interest, and the existence of further multiple identified drilling targets, the impact of BB-1 success would likely be transformational.
“Our wider strategy over the forthcoming 18-24 months aims to de-risk the overall Kimmeridge Limestone oil play, both commercially and geographically. Through the planned extended production testing, sidetrack and new well at Horse Hill, the goal is to establish that the Kimmeridge can be brought into commercial production. In parallel, our three-well exploration programme of BB-1, Holmwood-1 and an additional PEDL234 well, also aims to demonstrate that Horse Hill success can be replicated over the central “sweet-spot” of the Weald Basin. We look forward to this journey and eagerly await the start of BB-1 in the first half of 2017.”