LONDON (Alliance News) - The companies involved in the Horse Hill project in southern England said the latest reservoir to be tested has flowed oil to the surface, and the well has now produced an average of 1,528 barrels of oil per day from three reservoirs.
The Upper Portland sandstone interval was the third and final reservoir to be tested by the companies, flowing oil at a stabilised rate of 168 barrels of oil per day over a nine hour period - the worst performing result from the project so far.
The other two intervals previously tested, the Lower Kimmeridge limestone and the Upper Kimmeridge limestone, yielded better flow rates than the Upper Portland.
The well has now produced a stablised average rate of 1,528 barrels of oil per day from all three intervals, up from the 1,360 barrels per day prior to the test on the Upper Portland.
Notably, the companies said the only existing commercial production from the Upper Portland interval has been achieved at the nearby Brockham field, in which UK Oil & Gas Investments PLC holds an indirect 3.6% stake.
Horse Hill Developments owns a 65% stake in the project, with the rest held by Magellan Petroleum Corp.
UK Oil and Gas holds a 30% stake in Horse Hill Developments, Alba Mineral Resources PLC holds a 15% interest whilst Doriemus PLC, Stellar Resources PLC and Solo Oil PLC each hold 10% stakes in Horse Hill Developments. Regency Mines PLC holds a 5% stake and Evocutis PLC holds a smaller a 2% stake.
UK Oil shares were down 7.3% on Wednesday morning, Solo Oil shares were down 7.4%, Alba shares were trading down 6.6%, Doriemus shares were down 4% and Stellar shares were down 3.9%. Evocutis shares were trading flat whilst Regency shares were trading up 6.5%.