Uk Oil & Gas Share Discussion Threads

[moneymunch] 14/7/2016 21:29

Lol, just read it and take it in, the majority of posters including the basher's rarely read the content of any link posted imho!!! gl ;-)

ps DYOR

[lithological heterogeneities] 14/7/2016 21:21

MM

a link would be fine rather than fill up the entire BB, especially as the thread creator "forwood" has already filled up the top half of this thread leaving very little room for the rest of us to post.

[moneymunch] 14/7/2016 21:16

It seems pretty clear that the new PM and the the new appointments made have high hopes of the potential Northern shale gas and the Southern shale oil as a way of securing UK Plc's future energy security and the prospect of billions of £'s likely to be generated........gla holders BIG news coming!!! ;-)


LONDON (Alliance News) - The UK government Thursday said developing the shale gas industry would not impact its ambition to lower carbon emissions and said there is a "clear need" to explore the resource to better understand the potential size and impact of the industry.

However, unlocking the onshore petroleum market will require the UK to lower carbon emissions elsewhere in the economy to facilitate the rise that would come from exploiting the potentially vast resource lying underneath the UK.

Current estimates from the British Geological Survey suggest there could be anywhere between 23.2 to 64.6 trillion cubic metres of gas lying within the Bowland-Hodder basin under Northern England alone - potentially equivalent to somewhere between 4.00 to 11.00 trillion barrels of oil.

However, it is not known how much of that potential resource would be extractable, either on a technical or economic basis, but the UK government is keen to open up the industry to strengthen the country's own energy supplies.

To put that potential resource into perspective, the UK currently consumes around 70.00 billion cubic feet of gas on annual basis, and the commodity accounts for around one third of the country's overall energy supply - but none of that comes from shale gas production at the moment.

The government's comments on Thursday were in response to the report conducted by the Committee on Climate Change that evaluated the onshore petroleum potential in the UK.

Natural gas is seen as the key to bridging the gap that is expected to emerge while coal generation is phased out and new renewable and nuclear energy comes online. The current aim is to have all coal plants closed by 2025 and although all of the current UK nuclear fleet will be decommissioned in the next two decades, at least six new sites are set to come online in the future.

Gas has an advantage as an energy supply, as it can be used not only to generate electricity but also directly for heating and cooking. Crude oil cannot be used in this way without processing.

The UK been importing gas from abroad since 2004 after the UK's main home for energy production, the North Sea, began to experience declining production rates. Although oil still flows offshore the UK, the area is mature and expensive to operate in, especially during the current oil market.

Around 45% of the UK's gas consumption in 2014 was imported, and estimates show this will continue to rise in the foreseeable future, placing further pressure on the government to find new sources of domestic energy.

Compared to 2014, the oil and gas sector in the UK is expected to have cut 120,000 jobs by the end of this year, but the government plans to transfer the skills currently being lost into the wider engineering sector - and the shale industry, if unlocked, could create around 64,000 new jobs.

In tandem, investment has also slowed in the UK oil and gas industry, but the government forecasts investment into the shale industry could reach GBP33.00 billion if pursued, including the boost it would give to associated markets such as construction and engineering.

One the main issues that was analysed by the Committee on Climate Change was the compatibility of opening up an onshore petroleum market in the UK with the country's climate change commitments and ambitions.

The UK signed off its fifth carbon budget last week that outlines the country's target to reduce emissions by 57% during the next period, part of the longer-term goal of reducing emissions by 80% by 2050. The reduction targets are based on emission levels in 1990.

Environmental groups have also been concerned by the potential implications of fracking, the popular method of extracting gas in the US which is highly controversial in the UK, slowing the industry's development over recent years.

Not all onshore projects require fracking. One of the most eagerly watched projects onshore the UK at the moment is the Horse Hill project near Gatwick Airport that is being developed by a number of London-listed companies and involves no fracking.

Under test conditions, one well at Horse Hill managed to produce 1,688 barrels of oil per day from three intervals. Notably, that well is only recovering a minor amount of the total oil that lies beneath the project, somewhere between 3.0% to 15% - demonstrating the uncertainty over estimates made about potential shale gas resources in the UK.

Importantly, Horse Hill lies over the Weald basin in the south of the country and is completely separate from the Bowland-Hodder basin in the North.

Both basins hold numerous onshore petroleum projects that are under development, with many being pursued by London-listed companies, mainly smaller exploration firms looking to benefit from an early mover advantage when, or if, things take off.

However, a local council earlier this year approved a plan to frack the first well in the UK for five years, and the market is hoping that means more operations will be given the green light going forward. The government said operations that require fracking will still need further consents compared to conventional projects that do not use the method, such as Horse Hill.

Importantly, the report has advised the government that a UK shale gas industry in production "is compatible with carbon budgets if certain conditions, set out in three 'tests', are met".

The first 'test' is to ensure the emissions released during well development, production and decommissioning are closely monitored to allow quick responses to any leaks or issues and the second is to ensure the country's gas consumption remains in line with carbon budgets.

The third requires the UK to facilitate and offset the guaranteed rise in emissions that would be caused by the shale gas industry by lowering emissions elsewhere in the UK economy.

"The government believes that the strong regulatory environment for shale gas development, plus the determined efforts of the UK to meet its carbon budgets, means that the three 'tests' put forward by the Committee on Climate Change will be met," said the government.

[beebong1] 14/7/2016 19:27

DECC Works with 8 agencies and public bodies. Let's wait and see how it pans out under Business, Energy and Industrial Strategy.

Non-ministerial department
1)Ofgem
Executive agency
2)Oil and Gas Authority
Executive non-departmental public body
3)Civil Nuclear Police Authority
4)Coal Authority
5)Committee on Climate Change
6)Nuclear Decommissioning Authority
Advisory non-departmental public body
7)Committee on Radioactive Waste Management
8)Nuclear Liabilities Financing Assurance Board


The Queen has been pleased to approve the appointment of Rt Hon David Davis MP as Secretary of State for Exiting the European Union.
IMO a bit old at 67 to carry this through without propping up the daisies but obviously good for UKOG!

[moneymunch] 14/7/2016 18:42

Lol beewrong....don't shoot the messenger!!!....what are you frightened of??? Success for Ukog and a boost for UK Plc....Gla holders...they don't like it up 'em...;-))))

[moneymunch] 14/7/2016 18:24

Theresa May voted against regulations to prevent fracking and Andrea Leadsom has long been an ardent supporter of fracking.....and so you can imagine that they will both be very keen to develop the conventional extraction of the potential billions of barrels of high quality oil in the Kimmeridge limestones of the Weald Basin......all bodes well for Ukog's future and transformational returns for shareholers as the new PM will undoubtedly herald the national significance of so much recoverable oil and so much potential revenue for UK Plc as the new and exciting chapter in our history begins, in full control of our own destiny....They mean business.......all we need now is a stellar reserves upgrade from Nutech and Xodus and for the new PM to rejoice in its potential as a panacea for the coffers and future prosperity of UK Plc....EXCITING TIMES AHEAD!!!... Gla ;-)

[moneymunch] 14/7/2016 18:03

Malcolm Webb, the former Oil & Gas UK chief executive, said there was an “urgent need for change in Government energy policy”. He has since suggested mothballing DECC.

“Currently, in my opinion, it is a mess of confused and conflicting objectives and it needs to be reset to recognise the inevitable and strong need for UK oil and gas production in significant quantities for decades yet to come. All too often, instead of focusing on the total energy situation, governments north and south of the border have obsessed on the issue of electricity generation,” he said.



Business, Energy and Industry......has a nice ring to it, don't you think...gla ;-)

DECC abolished as part of major ministerial overhaul

14 July 2016, source edie newsroom

DECC has been abolished by new Prime Minister Theresa May, with UK energy policy set to be merged into a new ministry called the Department of Business, Energy and Industrial Strategy.

“Now more than ever the Secretary of State for the Environment has a huge and vital role to play in deciding the future of our country. Key to this ambition will be to develop a 25 year plan for the environment which was also a manifesto commitment; a generational commitment by our country that we will safeguard nature and wildlife, both at home or overseas. Andrea Leadsom should set out the Government’s ambition for world-leading environmental policy, maintaining but also improving on our existing framework of laws, whether national, European or international.”;

[moneymunch] 14/7/2016 17:16

DL's recent summary on Brockham in his capacity as Executive Chairman of DOR. Gla holders ;-)

The logs from Brockham X1 bear a striking resemblance to Horse Hill. Almost the same thicknesses of juicy Kimmeridge limestones can be seen in both wells. A little known fact is there are actually three of them, not two. Horse Hill only tested the two upper limestones that were 100 feet thick. They never tested the Kimmeridge Micrite (Limestone) three because it was only about 30 feet thick. But it looks like there’s oil there too.

Unlike Horse Hill, Brockham has the great advantage of already being a producing UK oil field. So any new oil drilled could be put straight into production and immediately added to the UK’s domestic oil supply.

It’s time to test the Kimmeridge limestones at Brockham. The plan is to do it as soon as possible. This year.

No need to drill a new well, just a short cheap side-track from one of the existing wells within the Brockham fence. And it can be drilled in a week, not months like Horse Hill.

The good lads at Angus Energy have been busy upgrading the surface facilities at Brockham expecting a big uplift from the rather dull 50-100 barrels a day that Brockham has been sucking out of the Portland for last 14 years.

Success at Brockham will help not only my old mates at UK Oil & Gas Investments Plc, as they have a small stake in Brockham. It will also help prove once and for all the thesis that there’s a serious amount of recoverable oil in the Weald.

[moneymunch] 14/7/2016 17:01

Lol and so no apology beewrong in your incorrect assertion that drilling into the Kimmeridge limestones wasn't mentioned in any DOR Rns...pmsl you numptie!!!

ps Brockham already has a full production license in place and so the application in place by DOR potentially will be more straight forward, and DL has implied sooner rather than later.....and maybe wheels will now be oiled generally with Andrea Leadsom's appointment as Environment Secretary which sponsors the Environment Agency, given her position on UK onshore oil and gas exploration......Gla holders....news from Nutech coming soon and the potential near term drilling of the kimmeridge at Brockham....a game changer if the limestones free flow in volume as witnessed at HH. ;-)

[beebong1] 14/7/2016 12:19

"DL has implied ( as per DOR's RNS ) that they will be drilling into the Kimmeridge limestones at Brockham very soon and will take not much more than a week."

It will be a bit difficult with the EA permits not in place. Months IMO and it wouldn't surprise me if it was next year. I'll stick with the official "later this year" until we get an official update.

Who will get to TD first? Brockham or HH?

[moneymunch] 14/7/2016 07:05

Lol tweedle bee....get your facts right you desperate numptie ;-)))



"Brockham Oil Field

(10% interest operated by Angus Energy):

The Brockham Oil Field (Brockham), in the Weald Basin, is held under UK Production Licence PL235. The Operator Angus Energy advised that the average current production rate for 2015 was 24 bopd.
The situation in relation to the planned new side-track infill production well at Brockham will be reviewed and advised by the Operator during 2016. The Operator has commenced applications to abandon two well-bores and started the upgrade process on its field surface facilities for continued long term production from the site. In addition to the abandonment of the well-bores, a side-track will be drilled to enhance production from the Portland sandstones and test the hydrocarbon potential in the Kimmeridge limestone layers that have tested so successfully at the adjacent Horse Hill-1 well."

[beebong1] 13/7/2016 19:07

So why post it then? I know you don't care because you will post anything to make something look good.

Here is yet another example.

"DL has implied ( as per DOR's RNS ) that they will be drilling into the Kimmeridge limestones at Brockham very soon and will take not much more than a week."

Nothing in any DOR RNS about the Kimmeridge. Do you just make this up or post from gossip? Latest was "we are looking forward to participating in the proposed new drilling programme at our nearby producing Brockham oil field later this year.”"

[moneymunch] 13/7/2016 15:21

Hopefully so, and maybe the reason why we'rre still waiting for the expected Nutech report, as well as Brexit and a new PM and Energy Minister, a much needed good news story for UK Plc given the potential significance of so much recoverable oil. ...a sudden and significant uplift in share price more than likely. Gl :-)

[theuniversal] 13/7/2016 14:56

MoneymunchHopefully and finally either tonight or by end of week we will find out clues to wether mpet need more dosh or not and can hold onto the 35% in HH.. yes it is a possiblity they might have to sell some of the 36% if they cant keep to their lusting requirements. ..TU

[beebong1] 13/7/2016 13:11

5m 12s in "If we drill a sidetrack at Brockham and a horizontal well at Horse Hill we are looking at 400bopd gross production, which we own between 50 and 60%"

Doesn't sound like existing production to me. You can't argue with the video, or can you? Yes, of course you can but you would be wrong as usual.

[moneymunch] 13/7/2016 12:45

Great news for Uk onshore oil and gas exploration if the Telegraph are correct, and great news for Ukog with Andrea especially and Thersa both keen on its development. :-)


Energy Secretary

The neatest way Theresa May might find to keep Andrea Leadsom in her government while giving her a bigger job is by promoting her to the department she currently works in. So the energy minister is favourite to be her Energy Secretary, but may clamour for something more closely involved with the Brexit talks.

[beebong1] 13/7/2016 12:44

.

edit
From the December interview with Vonk he said "a sidetrack at Brockham and a horizontal well at Horse Hill we are looking at 400 bopd gross production".
No mention of Portland or Kimmeridge so all supposition IMO.

[moneymunch] 13/7/2016 12:30

Ps their expectation of 400 barrels a day only relates to the Portland and not the Kimmeridge limestones which is now the main prize and potential game changer for Ukog if the free flow at HH is replicated at Brockham which would essentially confirm and appraise Nutech and Schlumberger's multi-billion barrel assessment of the Weald Basin sweet spot.