UK Oil & Gas (UKOG) has unveiled its plans to drill up to nine production, appraisal and exploration wells during 2019 and 2020 across its assets, located onshore UK, including the Horse Hill field, which it aims to bring into permanent production.
Currently, going through the test-based oil production phase, the Horse Hill oil field is expected to enter into permanent production by the end of this year through the drilling of two new horizontal production wells, said UKOG. The company holds an operating stake of 46.7% in the onshore field located in the Weald Basin in Surrey.
The two wells – HH-1z and HH-2 are planned to be spudded in spring 2019. The company has secured planning consent and environmental permits along with the necessary funding for the two production wells.
UKOG said that production target at the Portland prospect in the oil field is 720-1,080 barrels of oil per day (bopd) from the first horizontal well. The second well will target the combined Kimmeridge Limestone 3 (KL3) and KL4 oil pool prospects.
The company said that drilling of horizontal wells in 2020 will increase gross production to more than 2,000 bopd.
UKOG CEO Stephen Sanderson said: “If successful, this comprehensive plan aims to add significant value to the Company and shareholders via transforming UKOG from an exploration and appraisal company into a fully-fledged producing oil company by the end of 2019.
“By attaining the stated production targets, which have been independently verified as viable and realistic by Xodus, the resultant success case daily 2019 production could establish Horse Hill as the largest single oil producing field in the Weald Basin.”
During the winter of 2019/20, the oil and gas firm will undertake drilling and testing of the Arreton-3 (A-3) appraisal well within the Arreton Main oil discovery in Isle of Wight PEDL331.
In license PEDL234, UKOG will look to submit a planning application to Surrey County Council by spring 2019 for the drilling and testing of the Godley Bridge Portland gas discovery and the underlying Kimmeridge.
After completing the Godley Bridge appraisal well, the company will re-focus on its Broadford Bridge Kimmeridge oil discovery for the drilling and testing of a BB-1y Kimmeridge sidetrack.
Following the completion of a strategic review of its assets, the UK oil and gas producer concluded that it will not make any additional investment at its 100%-owned Markwells Wood asset in PEDL126 license. It said that as the technical and regulatory risks of the project significantly outweigh the modest success case potential, the Markwells Wood-1 well has been plugged and abandoned.