Solo Oil Plc Upgrade to Portland OIP, Horse Hill-1 Discovery (5318E)
July 19 2016 - 2:00AM
UK Regulatory
TIDMSOLO
RNS Number : 5318E
Solo Oil Plc
19 July 2016
FOR IMMEDIATE RELEASE, 7:00 am 19 July 2016
SOLO OIL PLC
("Solo" or the "Company")
Upgrade to Portland Oil in Place, Horse Hill-1 Discovery, Weald
Basin
Solo today notes the contents of an announcement by UK Oil and
Gas Investments plc ("UKOG") that a new petrophysical analysis by
Nutech, incorporating the findings of the successful Horse Hill-1
("HH-1") flow tests, has significantly upgraded the previously
calculated total oil in place ("OIP") per square mile within the
Upper Portland pay zone at the HH-1 well, from 7.7 million barrels
("mmbbls") per square mile to 22.9 mmbbls per square mile, an
increase of 200%. As previously announced the final Horse Hill 1
('HH-1') Portland test flowed at a stable dry oil rate of 323
barrels of oil per day ('bopd').
Nutech's report notes that the production of dry oil from the
Portland Sandstone, with little or no observed water production,
required a reassessment of the pre-flow test petrophysical model.
Prior to the flow test, interpretations suggested that water would
likely be produced along with oil, as is seen in Portland
reservoirs in nearby producing oil fields. The revised model fully
incorporates the well test observations and measurements.
The HH-1 well is located within onshore exploration licence
PEDL137, on the northern side of the Weald Basin near Gatwick
Airport. PEDL246 lies adjacent to and immediately to the east of
PEDL137. Solo owns a 6.5% interest in the Licences which are
operated by Horse Hill Developments Ltd ("Operator").
The Operator has also informed the Company that the flow test
data analysis undertaken by Nutech and Xodus provides the necessary
technical encouragement to engage Barton Willmore Ltd, one of the
UK's leading planning and environmental assessment practitioners,
to prepare and submit a planning application to Surrey County
Council ("SCC"), and to assist with obtaining necessary permissions
from the Environment Agency ("EA"), for an appraisal programme at
Horse Hill.
The applications will seek permission to conduct a programme
consisting of the production flow testing of three Kimmeridge
Limestone zones plus the overlying Portland over a total flow
period of up to 360 days, plus two further appraisal/development
wells and 3D seismic.
A public consultation and engagement process related to the
planning application will take place shortly, leading to an
application to SCC and the EA by early fourth quarter 2016.
Engineering studies to examine the range of possible flow rates
from a planned horizontal side track well are ongoing. Data to
further calibrate these studies will be acquired during the further
planned extended flow tests.
Neil Ritson, Solo's Chairman commented:
"Significant progress is being made at Horse Hill building on
the results of the very successful flow tests earlier in the year.
Solo is pleased that the estimated oil in place has been increased
and that the Horse Hill group is proceeding with the next phase of
the appraisal of this important discovery."
As previously stated by the Company, the calculated OIP per
square mile should not be construed as either contingent resources
or reserves.
Qualified Person's Statement:
The information contained in this announcement has been reviewed
and approved by Neil Ritson, Chairman and Director of Solo Oil plc
who has over 38 years of relevant experience in the energy sector.
Mr. Ritson is a member of the Society of Petroleum Engineers, an
Active Member of the American Association of Petroleum Geologists
and is a Fellow of the Geological Society of London.
For further information:
Solo Oil plc
Neil Ritson
Fergus Jenkins +44 (0) 20 3794 9230
Beaumont Cornish Limited
Nominated Adviser and
Joint Broker
Roland Cornish +44 (0) 20 7628 3396
Shore Capital
Joint Broker
Pascal Keane
Jerry Keen (Corporate
Broker)
Bell Pottinger
Public Relations
Henry Lerwill
Cassiopeia Services
LLP +44 (0) 20 7408 4090
Investor Relations +44 (0) 20 3772 2500
Stefania Barbaglio +44 (0) 79 4969 0338
Glossary:
discovery a discovery is a petroleum accumulation
for which one or several exploratory
wells have established through testing,
sampling and/or logging the existence
of a significant quantity of potentially
moveable hydrocarbons
------------- ------------------------------------------------
contingent contingent resources are those quantities
resources of petroleum estimated, as of a given
date, to be potentially recoverable
from known accumulations, but the
applied project(s) are not yet considered
mature enough for commercial development
due to one or more contingencies.
Contingent resources may include,
for example, projects for which there
are currently no viable markets, or
where commercial recovery is dependent
on technology under development, or
where evaluation of the accumulation
is insufficient to clearly assess
commerciality. Contingent Resources
are further categorized in accordance
with the level of certainty associated
with the estimates and may be sub-classified
based on project maturity and/or characterized
by their economic status
------------- ------------------------------------------------
flow test a flow test or well test involves
testing a well by flowing hydrocarbons
to the surface, typically through
a test separator. Key measured parameters
are oil and gas flow rates, downhole
pressure and surface pressure. The
overall objective is to identify the
well's capacity to produce hydrocarbons
at a commercial flow rate
------------- ------------------------------------------------
oil field an accumulation, pool or group of
pools of oil in the subsurface. An
oil field consists of a reservoir
in a shape that will trap hydrocarbons
and that is covered by an impermeable
or sealing rock
------------- ------------------------------------------------
oil in place the quantity of oil or petroleum that
is estimated to exist originally in
naturally occurring accumulations
before any extraction or production
------------- ------------------------------------------------
petrophysics the study of physical and chemical
rock properties and their interactions
with fluids utilising electric logs,
physical rock and fluid measurements
------------- ------------------------------------------------
reserves those quantities of petroleum anticipated
to be commercially recoverable by
application of development projects
to known accumulations from a given
date forward under defined conditions;
reserves must further satisfy four
criteria: they must be discovered,
recoverable, commercial and remaining
(as of the evaluation date) based
on the development project(s) applied;
reserves are further categorized in
accordance with the level of certainty
associated with the estimates and
may be sub-classified based on project
maturity and/or characterised by development
and production status
------------- ------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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