Solo holds a 15 percent interest in HHDL which in turn holds a 65 percent interest in the HH-1 discovery.
Horse Hill Developments, the operator of the Horse Hill-1oil discovery has informed Solo Oil (LSE:SOLO) that the UK Oil and Gas Authority has now granted its consent for the forthcoming HH-1 extended well test program. All other necessary regulatory consents from Surrey county council, the Environment Agency and the Health and Safety Executive are already in place. Solo holds a 15 percent interest in HHDL which in turn holds a 65 percent interest in the HH-1 discovery.
As quoted from the press release:
- Planned 150-day EWT is now set to commence on the Horse Hill oil discovery
- All EWT regulatory permissions now in place and operations are fully funded
- EWT follows the successful short-term flow tests in 2016 which achieved an aggregate stable rate of 1,688 barrels of oil per day (“bopd”)
- Planned EWT comprises three separate long-term flow periods of the Portland, Kimmeridge Limestone 4 (“KL4”) and Kimmeridge limestone 3 (“KL3”) zones
- Program aims to confirm commerciality of the Portland and Kimmeridge limestone oil discoveries
- If successful the EWT paves the way for first permanent oil production targeted for 2019
- Drilling of an appraisal well, HH-2, as future producer is expected to follow successful flow testing with planning approval and environmental permits for drilling are already in place.
Horse Hill Oil Discovery
The HH-1 Portland sandstone and Kimmeridge Limestone (KL3 and KL4) oil discoveries lie within onshore Weald Basin licences PEDL137 and PEDL246, covering an area of 55 square miles (143 km2) to the north of Gatwick Airport. As reported on 21 March 2016, HH-1 flow tested at a significant commercial aggregate stable dry oil rate of 1,688 barrels of oil per day (“bopd”) from the Portland, KL3 and KL4 reservoir horizons. During the 30-90 hour flow periods from each of the three productive zones no clear indications of any reservoir pressure depletion were observed.
The EWT will comprise a series of three separate test sequences commencing in the Portland followed by the KL4 and the deeper KL3. If time permits a test combining the KL4 and KL3 (a commingled test) may be undertaken. Each test will utilize existing perforated zones from the 2016 test program. The expected duration of the full 2018 program is around 150 days.
“We are very pleased that the EWT will now get underway since it is through these tests that we will be able to confirm that commercial production can be achieved from the reservoirs discovered in Horse Hill-1,” said Neil Ritson, Solo’s chairman.