Horse Hill 2019

HH-1 Extended Well Test operations continued virtually uninterrupted throughout the reporting period until the Autumn.

The licence is operated by our subsidiary company, Horse Hill Developments Ltd (UKOG 77.9% controlling shareholding), which holds a 65% direct interest in the field and surrounding highly prospective licences. UKOG also owns the remaining 35% direct interest in the Horse Hill licences through its wholly owned subsidiary UKOG (137/246) Ltd.

The HH-1 Portland oil discovery was declared to be commercially viable in October 2018. No formation water has been seen in HH-1. The produced crude has been exported and sold to UK oil refineries via nearly 500 road tankers.

The two Kimmeridge oil pools (KL3 and KL4) in the HH-1 well are now recognised to be one single accumulation 358 ft thick, as evidenced by fluid and pressure data.

Drilling of the HH-2/2z horizontal appraisal well commenced in September 2019 and was successfully completed post period in November 2019. The HH-2 pilot hole was extensively cored and electric logged over the full extent of the Portland oil pool. The HH-2z sidetrack was then drilled with a horizontal trajectory of 2,500 ft within the Portland oil pool’s most productive zone. A high capacity/high rate electric submersible pump (ESP) was run in the well.

Post period the HH-2z well was cleaned up using the ESP, with evidence of formation water recorded. A water shut-off well intervention has been successfully completed to isolate the source of water ingress, which was a naturally fractured zone at the well’s end or “toe”. The HH-2z well clean-up and EWT have been resumed following this successful intervention.

Around 96,000 bbl of oil had been produced from the Portland and Kimmeridge oil pools in the HH-1 and HH-2z EWTs.

A planning application to Surrey County Council (SCC) was submitted in December 2018 for Horse Hill long-term production. SCC approved the production planning application in September 2019. A Field Development Plan (FDP) was submitted to the OGA and approved in March 2020. The FDP covers the HH-1 well and Portland reservoir unit. Further Horse Hill field development phases will be submitted to OGA via FDP addenda, initially the HH-1 Kimmeridge reservoir unit and HH-2z.