Gunsynd PLC Horse Hill Update (6562M)

TIDMGUN

RNS Number : 6562M

Gunsynd PLC

17 October 2016

Gunsynd Plc

("Gunsynd" or the "Company")

Horse Hill-1 Oil Discovery, Weald Basin, UK

Planning Application for Significant Appraisal Programme, UK Weald Basin

Gunsynd (AIM: GUN, ISDX: GUN) announces that Horse Hill Developments Ltd ("HHDL") has informed the Company that a planning application has been submitted to Surrey County Council seeking permission to conduct further significant appraisal testing and drilling at the Horse Hill-1 ("HH-1") oil discovery, located in Licence PEDL137, close to Gatwick Airport. The HH-1 oil discovery achieved an aggregate stabilised flow rate of 1688 bopd from two Kimmeridge limestones plus the overlying Portland sandstone. The Company holds a 1.3% interest in PEDL137.

Subject to the required regulatory approvals, the first phase of the proposed development is planned to consist of the extended production testing of four zones, designed to confirm the commerciality of the discovery, and to examine a previously untested Kimmeridge limestone. The planning application also seeks permission for a two-well drilling phase, which contingent upon successful testing, will further appraise the extent of the oil accumulations and the field's production capabilities. The proposed drilling phase includes plans for a deviated sidetrack, HH-1z, to be drilled from the existing HH-1 borehole, together with a new well, Horse Hill-2 ("HH-2"). On completion of drilling, both the HH-1z and HH-2 are planned to be long-term production tested.

In order to minimise impact to the locality, feedback from both a public consultation and engagement process, undertaken in July, and subsequent meetings with local residents' representatives, was incorporated into the envisaged development design and planning application. The normal local planning authority cycle for an application not requiring an Environmental Impact Assessment such as at Horse Hill, takes approximately 13 weeks.

HHDL and the Company's Interest in the Licence

HHDL is a special purpose vehicle, which owns a 65% working interest and operatorship of the Licence. Gunsynd owns a 2% beneficial shareholding in HHDL, which equates to a 1.3% net working interest in the Licences. The remaining 35% interest in the Licences is held by Magellan Petroleum (UK) Limited.

Qualified Person's Statement

Stephen Sanderson, UK Oil & Gas Investment plc's Executive Chairman, who has over 35 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Sanderson is a Fellow of the Geological Society of London and is an active member of the American Association of Petroleum Geologists.

For further information please contact:

 
 Gunsynd plc:                [phone] 
 Hamish Harris 
 
 Nominated Adviser and 
  Broker:                    [phone] 
 Cairn Financial Advisers 
  LLP 
 James Caithie / Liam 
  Murray 
 
 

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 
--------------------  ------------------------------------------ 
 extended production   a flow test, or extended well test 
  test                  as per the permission granted by 
                        the Oil and Gas Authority, with 
                        an aggregate flow period duration 
                        over all zones of greater than 96 
                        hours and up to 90 days maximum 
--------------------  ------------------------------------------ 
 sidetrack             re-entry of a well from the well's 
                        surface location with drilling equipment 
                        for the purpose of deviating from 
                        the existing well bore to achieve 
                        production or well data from an 
                        alternative zone or bottom hole 
                        location, or to remedy an engineering 
                        problem encountered in the existing 
                        well bore. 
--------------------  ------------------------------------------ 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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October 17, 2016 02:00 ET (06:00 GMT)