Uk Oil & Gas Share Discussion Threads

[moneymunch] 13/6/2017 07:43

I wonder how the swampies clean their toilets at home???

The other issue raised has been about the process commonly referred to as acidisation”. There are many unfounded claims about this process, which has been used safely in the global oil and water-well drilling industry for 120 years, and over 50 years throughout the onshore oil sector in the UK including over many years in a limestone oil reservoir in the Wytch Farm oil field, Dorset, Europe’s largest onshore oil field.

At our site, diluted hydrochloric acid will be applied via a further 3-inch steel pipe through the cemented steel casings solely to the limestone oil reservoir rocks lying immediately adjacent to the well bore, again at between half to over three quarters of a mile beneath the surface. The dilute acid dissolves small amounts of the limestone (rocks comprised of calcium carbonate) up to some tens of centimetres from the steel casing and concrete of the well bore.

We do not use hydrofluoric acid (HF), which is highly toxic. The HF is used in the oil industry to dissolve silica based rocks (i.e. sandstones and clays) not limestone rocks, so it has zero efficacy for our operations. As an aside, the HF used in other oil industry applications is primarily under strict laboratory conditions and if used under site conditions doesn’t exist as an acid at the surface, it is mixed from components solely in the subsurface at the target rock unit depth.

The hydrochloric acidisation process utilised thus enables the well bore to properly connect with the encasing limestone rock and natural fracture system, thus permitting commercial fluid flow into the well bore. The reaction with the limestone neutralises the acid, forming water, calcium chloride (a highly soluble natural salt and a significant component of sea water) and small volumes of carbon dioxide.

The dilute acid (85% water, 15% hydrochloric acid) is similar in strength to that contained in domestic toilet bowl cleaners and lime scale removers, indeed the acid performs exactly the same process as in domestic use (i.e. it dissolves limescale composed of calcium carbonate). It is approximately half the concentration of the hydrochloric acid typically used to improve the inflow of drinking water into public water supply abstraction wells in limestone aquifer rocks, such as the major chalk aquifers in the Southeast and Yorkshire.

Note that the dilute acid is NOT forced into the well at sufficiently high pressures to artificially fracture the limestone.

[moneymunch] 13/6/2017 06:59

Cement trucks.....presumably casing now set to first Kimmeridge limestone. Gl ;-)

Our drilling activity will have ZERO IMPACT on ground water or water supplies. Even though there are no potable drinking water sources underlying or surrounding the site, it is UKOG’s policy to use a water-based, non-toxic, biodegradable, zero-hazard, drilling fluid made from modified plant starches (essentially potato starch). The drilling fluid lubricates the drill-bit and will be used while drilling through groundwater zones (i.e. those zones that may contain fresh water from percolated rain water, normally shallower than 300 metres).

This drilling fluid is used by water-well drilling companies in the UK, and is registered with the Centre for Environment, Fisheries and Aquaculture Science (CEFAS). It is also the only drilling fluid to be formally approved by the Department for the Environment, Food and Rural Affairs for use in drilling water wells for public water supply.

The Broadford Bridge hard-standing well pad is specifically designed and constructed to ensure that ZERO fluids, including rainwater, can discharge down into the ground beneath and adjacent to the site. The pad has multiple fluid containment systems to ensure ZERO DISCHARGE of any fluids and complete isolation of surface activities from the underlying and surrounding ground.

These systems comprise; a man-made impermeable membrane and an impermeable natural clay-layer underlying the entire well pad, a membrane-lined perimeter ditch, an impermeable concrete well-cellar and bunding of all storage tanks and chemicals.

Even rainwater from the site during operations is not discharged and is collected by tanker and sent to an EA approved disposal site. The integrity of the impermeable membrane was surveyed and tested prior to moving the rig on-site, a procedure which is an industry first and something we intend to make industry standard-practice.

Additionally, before any oil can flow into the well , the well will be completely isolated from the surrounding rocks by three sets of overlapping heavy gauge steel tubing (known as casing), which are bonded to the surrounding rock by a layer of impermeable concrete.

The casing and well integrity are pressure tested during operations and subsequently at least twice per year as standard company policy (note the testing frequency is more rigorous than industry norms).

[mikeygit] 12/6/2017 18:44

Thanks MM--FYI--DOR fell out with AIM and --IMO and DL said as much---are unlikely to try to get back onto AIM. Listed as an Investment company and according to AIMs interpretation of their rules!!!! DOR failed to make an investment in a given times scale. DL has said that he wants to get into the FTSE---a big ask---but we shall have to see. Agree, though, that where ever they are, should they strike it rich it is inevitable the share price should rise considerably----here´s hoping!!!

[moneymunch] 12/6/2017 18:12

I don't know enough about them these days Mikey but believe they lost their Aim listing prior to DL's involvement, and so I'm sure DL is working hard behind the scenes to get them back on to Aim...there's no doubting their potential given the reasonably high % interest at both Brockham and HH as well as the IoW etc, but their share price performance on Nex/isdx will always under perform compared to Aim, although confirmation of free flowing oil in commercial recoverable volume at Brockham and HH would be transformational for DOR regardless, and no doubt expedite their return to Aim Gl.:-)

[temmujin] 12/6/2017 17:52

michael Gove APPOINTMENT good for ukog and co..bad for greens

[mikeygit] 12/6/2017 17:17

RAY---Sounds like the song GO WEST??!!

MM--I am in DOR also---getting a little frustrated at the lack of news from DL--particularly on the question of changing where their shares are quoted---takes time, granted, but some snippets of encouraging news would be good!!!---any opinions on this one--Sorry I know it is not DOR blog site!!

[rayrac] 12/6/2017 16:05

Made it to here! W Country.

Fingers xd we have a winner!? ....then I can go further west!!!

Gla!

[moneymunch] 12/6/2017 11:46

Ps in the meantime Ukog is where it's at....fully loaded at sub 1p and looking forward to the imminent re-rate or two as good news comes in from BB. Gl :-)

[moneymunch] 12/6/2017 11:40

Alba along with Angus and Dor are still waiting for OGA approval for Brockham's completion/ Production, and obviously delayed by SCC's confusion over the letigamcy of the sidetrack...it will be resolved sooner or later and so plenty of upside for Alba et al when Brockham's production is underway by which time HH'S eagerly awaited extended flowtests should also be underway that will also add value, and of course Alba are planning to drill Amitsoq's treasure chest of graphite and gold later this year and so plenty of potential ahead, especially from their miniscule Market Cap....I'll take advantage of any placing they might have in the pipeline as the potential transformational upside is pretty obvious on free flowing commercial recoverable volumes at Brockham and HH....don't you agree??? Gl ;-)

[thehitman1] 12/6/2017 10:56

Monyemunch, what happened to the transformational news at alba?.

[moneymunch] 12/6/2017 10:08

Cheers Ed, the next 6 months or so will be transformational for Ukog on confirmation of their expectations at BB and HH...results expected in a few weeks on BB's drill followed by flow testing for up to 14 weeks if required, and then HH's production tests which are expected to last approximately 6 months, and so we should see the share price moving up as positive data and permit news is delivered. Gl :-)

[edgein] 12/6/2017 08:46

MM,

Very interesting posts, agreed, anything that makes frac simpler to get passed will help the whole sector when it comes to planning consent. Very interesting clip of DL at master investor, shows the simplicity of the new pads of potentially 18 wells and interesting to hear his views on Brockham given the vicinity of Holmwood later this year too. The Holmwood licence being many times the size of Brockham. Going to be an interesting 12 months for these companies.

Regards,
Ed.

[moneymunch] 12/6/2017 06:57

Have a nice time.....EA flowtest permit and drilling update for BB imminent, c3 weeks to Target Depth, and 4 weeks for HH's Ewt permit and maybe the green light for Holmwood....Significant upside more than likely. Gla ;-)

Wednesday 12 July 2017

Scheduled meeting of Surrey County Council at which Horse Hill planning application (SCC2016/0189) and plans for Bury Hill Wood (SCC Ref 2016/0170 and SCC Ref 2008/0169 may be discussed. To be confirmed.

[rayrac] 11/6/2017 19:51

Yes mm, more relaxed! Just right for my trip to the West Country tomorrow!

Thanks for the update! Looking forward to the next 2/3weeks.

[moneymunch] 11/6/2017 18:50

Relax to this Ray....DL at his finest. ;-)

[moneymunch] 11/6/2017 18:44

They all produce from the Portland Sandstone Ray, which lies above the oil saturated Kimmeridge interval, which is now thought to be the source and supply of oil to the Portland.....HH was the first time the Kimmeridge limestones were flow tested Gl ;-)



Over the last two to three decades around 30 wells have been drilled into the Kimmeridge limestones of the Weald Basin.

The Kimmeridge rock of the Weald underlies the south and south-eastern corner of the country and was host to the Horse Hill crude.

However those 30 wells never tested for oil as the sedimentary rock was thought to lack the porosity required to host it.

What the experts suspect is the Kimmeridge at Horse Hill is naturally fractured, allowing oil to accumulate that when accessed flows easily to surface under its own steam.

If this model holds up then there would be no need for fracking to release this hydrocarbon bounty.

Sometime in the first-half of next year UKOG will move 11 miles along the road from Horse Hill to the PEDL234 licence area to drill the Broadford Bridge-1 well.

It will test the same Kimmeridge limestones discovered at Horse Hill.

Success here would start to suggest our theorising geologists are indeed correct about the make-up of the Weald Basin and, specifically, the fractured rock model.

[rayrac] 11/6/2017 17:30

I'm a little concerned why the other producing drills around the Weald, are not as prolific as the Gatwick gusher. Is it because they are shallower and haven't reached the main pay zones?

UKOG have intimated that the zones at HH spread all over the Weald...or have I got it wrong? Nutech and Schlumberger have suggested it's Weald wide, i.e. Billions of barrels. So why are some companies getting out only a few hundred barrels per day?

I hope there's a good answer out there. Then I can relax!

[moneymunch] 11/6/2017 14:41

Barton Willmore responded to SCC 31st May on behalf of Ukog, and so it would appear all additional information and concerns have been dealt with, and therefore a positive decision by SCC's planning committee next month, for HH's ewt's and drilling application should be highly likely. Gla....a re-rate or two or three very likely in the coming days and weeks. ;-)

Duncan Evans
Surrey County Council
County Hall
Penrhyn Road
Kingston upon Thames
KY1 2DN
By Email
Our Ref: 25128/A3/KM/SO

31 May 2017

Dear Duncan,

RE16/02556/CON – HORSE HILL-1 WELL SITE, HORSE HILL, HOOKWOOD, SURREY - RESPONSE TO CONSULTEES

I write in relation to the consultee comments that have been received for the subject application. The purpose of this letter is to provide clarity and, where appropriate, additional information.

Environment Agency

Alongside the planning application, the Applicant has sought environmental permits from the Environment Agency (EA), which has necessitated further groundwater investigations. The EA made similar comments in relation to the planning application and environmental permit and therefore the information compiled to address the permit application is also relevant to the planning application.

Attached is the following information:
Updated Groundwater Risk Assessment, November 2016
Addendum to the Flood Risk and Ground Water Risk Assessments, February 2017
HHDL’s response to EA’s Schedule 5 notice

It is acknowledged that a number of the drawings incorrectly state that a drainage pipe was installed in the swale “at the request of the Environment Agency” or words to that affect.

The Applicant is happy to accept the standard condition proposed by the EA:

The development hereby permitted shall not be commenced until such time as a scheme to manage surface water has been submitted to, and approved in writing by, the local planning authority. The scheme shall be implemented as approved.

[moneymunch] 11/6/2017 14:11

TARGETS FOR THE COMING YEAR

-- Demonstrate commercial production from one, possibly two, wells at Horse Hill by end 2018

-- Demonstrate that Horse Hill results can be replicated in three other locations across the Weald Basin (two wells in 2017: Broadford Bridge-1, Holmwood-1, one further in the first half of 2018)

-- Deliver production from each well as early as permitting allows
-- Further consolidate our holdings, where possible, and acquire further prospective acreage

-- Planning permissions are in place for the two 2017 wells, and we expect to receive the necessary consents for the planned Horse Hill production testing and drilling activities by the end of July this year.

-- We are firmly on track to meet our end 2018 first production oil target.

BB - Our planning permission also includes the ability to flow test the well for up to 14 weeks. If successful, and provided the tests are encouraging, KOGL would aim to apply for permanent production status from BB-1 by the end of 2018.



ps the planning application at HH is for a 3 year retention of the site, which will include this years extended flow / production tests from the existing well bore, the testing will last for approximately 6 months. Gla holders ;-)

Following the production tests, we plan to drill a further deviated KL wellbore, HH-1z, from the existing HH-1 wellbore, and then a new well, HH-2, designed to access the Portland in both the Horse Hill and Collendean Farm fault blocks. We may use the opportunity to drill a HH-2 pilot hole down through the Kimmeridge to take key core and image log data. These wells are designed to be completed as future permanent oil producers, with first oil planned towards the end of 2018, subject to the necessary regulatory approvals and field development consent.

[moneymunch] 11/6/2017 14:10

Of the 120 miilion stock options 45 million were issued to contractors and consultants whom are currently engaged on the Broadford Bridge operations.

[slider27] 11/6/2017 13:56

MM thanks for the input but where did you get the info that the contractors and consultants are being paid in shares
BTW thinking of dabbling here

[mikeygit] 11/6/2017 13:38

Even I---who know little or nothing about oil drills and costs---know that a land based drill like this is so much cheaper than -say--a North Sea oil drill---so , as MM , says minimal costs compared and the higher oil prices get then the higher the profit margins and then --hopefully--an even higher share price IMO we are on the verge of getting things going---there will be many drill pads across the Weald with oil flowing freely, and will any big boys come in when that happens?? Any long term holders will need to be patient a little longer and then everything will take off---providing more oil is found and flowing freely. NUTECH and SCHLUMBERGER have given good accounts so we shall have to see!!

[moneymunch] 11/6/2017 13:32

Costs are at a bare minimum, the site was already prepared with the well pad constructed and drill ready when Ukog acquired the licence from Celtique Energy and Mpet last year, with permits to drill already in place.....and the drilling contractors and consultants are being paid in Ukog shares and not cash.....they know when they are on to a good thing, as they're the same drilling contractors and consultants who worked on HH.....Gl....plenty of upside on its way imho.....EA flow test permit excpected "very shortly" and the first kimmeridge limestone expected to be intersected end of this week. ;-)

ps and Ukog holds the full 100% of Broadford Bridge PEDL234 which also includes the Godley Bridge Gas discovery which Ukog plans to re-appraise in due course.

[rayrac] 11/6/2017 12:54

As much as it will?

If they find an HH it won't matter!