Uk Oil & Gas Share Discussion Threads

[datait] 21/3/2016 08:37

Well its not all about you !

[rayrac] 21/3/2016 08:36

I prefer to cut my own thank you!

[datait] 21/3/2016 08:35

Rayrac put your glasses on.

[forwood] 21/3/2016 08:34

Simply, in terms of onshore oil in the UK, this one well is the best thing since sliced bread!

[datait] 21/3/2016 08:34

forwood this will rise soon enough wont be held back for long.

[rayrac] 21/3/2016 08:34

Datait, that's a rather repetitive post! Stop treating your fellow posters as being stupid! We have enough of that from the stupid detractors.

[datait] 21/3/2016 08:33

Final Portland Flow Test

As previously reported, the first Portland test period gave a stable dry oil rate of 168 bopd over 9 hours. Further periods of flow using the same pump, re-seated immediately above the perforated zone, resulted in a similar stable dry oil flow over a two-day period. It was apparent that the rate was limited by the 7-ft stroke capacity of the pump. A larger 26-ft stroke pump was installed resulting in a maximum rate in excess of 360 bopd and an average stable rate of 323 bopd over 8.5 hours. This flow rate was still limited by pump capacity. During pumping, annulus fluid levels did not drop appreciably, implying little pressure depletion.

[forwood] 21/3/2016 08:32

The share price is only subdued because idiots are selling their shares for a pittance compared to what could be achieved by holding for the inevitable and much overdue rise.

These results are outstanding. This is not 'ramping' - it's a sober evaluation of the facts to date.

"Xodus calculated an estimated P50 OIP of 21 million barrels for the accumulation. Electric log analysis showed that the well had circa 100 feet of gross pay with water saturations often exceeding 50%. The flow test results of 100% dry oil thus require the log evaluation to be revisited and to review a possible upgrade to the OIP. Xodus will integrate this with the available flow test analyses to derive recoverable Portland resources. This will be reported in due course....

This simple vertical well has achieved an impressive aggregate oil rate equivalent to 8.5% of total UK onshore daily oil production.....rates were limited by the test pump's maximum capacity. Further significant flow rate improvements may be achieved from all zones using horizontal sidetracks during future planned operations. "

[datait] 21/3/2016 08:31

Flow Test Highlights

-- The final Portland test of 323 bopd, over an 8.5-hour, period is the highest stable dry oil flow rate from any onshore UK Portland well. On further testing, with a larger pump, the rate doubled from the previously reported stable dry oil rate of 168 bopd. The Portland was produced at maximum pump capacity and showed no clear indication of depletion. It is likely that the rate can be further increased using a higher capacity downhole pump during the next planned test.

-- Proof that the Kimmeridge limestones contain significant volumes of moveable light oil that can be flowed to surface at commercial rates

-- As previously reported, the stable, natural dry-oil flow rate of 464 bopd from the Lower Kimmeridge Limestone is the first ever flow from this rock unit in the Weald Basin and onshore UK

-- Based on the analysis of published reports from all significant UK onshore discovery wells, the Company concludes that the well's 1688 bopd is likely the highest aggregate stable dry-oil flow from any onshore UK new field wildcat discovery well

-- Based on the analysis of published reports from all significant UK onshore discovery wells, the Company concludes that the 901 bopd from the Upper Kimmeridge zone is likely the highest stable natural dry oil flow rate from a single reservoir in any UK onshore new field wildcat discovery well

-- High quality Brent Crude produced: light, sweet oil (40 degrees API in Kimmeridge, 35-37 degrees API in Portland) 1,940 barrels delivered to the Esso Fawley refinery

-- Preliminary analysis confirms that the Lower and Upper Kimmeridge Limestone units are naturally fractured reservoirs with high deliverability

-- Strong possibility for further optimisation and increased flow rates from all 3 zones in future development and production wells, particularly through the use of horizontal wells

[datait] 21/3/2016 08:30

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Ltd has informed the Company that the final Horse Hill 1 ('HH-1') Portland test flowed at a stable dry oil rate of 323 barrels of oil per day ('bopd'), double the previously reported rate. The final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone stands at 1688 bopd. Over the 30-90 hour flow periods from each of the 3 zones, no clear indication of any reservoir pressure depletion was observed. Further analysis of data is ongoing and will be reported shortly.

Way Forward

Given these exceptional results, the Company has commissioned Nutech to investigate a possible upgrade to the oil in place ("OIP") calculated within all 3 test zones together with engineering studies to examine possible flow rates from a horizontal well. Reservoir engineering analyses by Nutech and Xodus are also underway, and will likely result in an estimation of potential recoverable volumes. Results of these studies will be reported shortly.

Preparation is now underway to obtain regulatory permissions to conduct extended production tests from all 3 zones at the site, followed by a horizontal sidetrack in the Kimmeridge and a possible new Portland development well.

[moneymunch] 21/3/2016 08:26

Lol simon, last week you were hoping it wasn't heading back to 1p.....PMSL....;-)

[rayrac] 21/3/2016 08:26

Looking extremely undervalued. No pressure drop! That's another one in the eye of the 'crankies' of southern England. The so called 'protectionists', are on a loser!

We need, desperately, to get out of the grip of the Russians, ISIS and Saudi's. The Weald is our way out!

[moneymunch] 21/3/2016 08:22

Lol a big blue day ahead and a sudden and significant re-rating at any time as positive newsflow keeps coming....Xodus, Nutech, Ernst and Young etc etc etc....truly stunning and transformational prospects and potential for all invested. ;-)))

[moneymunch] 21/3/2016 08:19

Way Forward

Given these exceptional results, the Company has commissioned Nutech to investigate a possible upgrade to the oil in place ("OIP") calculated within all 3 test zones together with engineering studies to examine possible flow rates from a horizontal well. Reservoir engineering analyses by Nutech and Xodus are also underway, and will likely result in an estimation of potential recoverable volumes. Results of these studies will be reported shortly.

Preparation is now underway to obtain regulatory permissions to conduct extended production tests from all 3 zones at the site, followed by a horizontal sidetrack in the Kimmeridge and a possible new Portland development well.

[12bn] 21/3/2016 08:18

This has a long way to retrace yet imo. Keep an eye on the volume.

[moneymunch] 21/3/2016 08:17

The final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone stands at 1688 bopd. Over the 30-90 hour flow periods from each of the 3 zones, no clear indication of any reservoir pressure depletion was observed. Further analysis of data is ongoing and will be reported shortly.

[moneymunch] 21/3/2016 08:13

RNS


Horse Hill-1 Oil Discovery, Weald Basin, UK

Aggregate Flow Rate Likely the Highest of any UK Onshore New Field Discovery Well

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) announces that Horse Hill Developments Ltd has informed the Company that the final Horse Hill 1 ('HH-1') Portland test flowed at a stable dry oil rate of 323 barrels of oil per day ('bopd'), double the previously reported rate. The final total aggregate stable dry oil flow rate from two Kimmeridge limestones plus the overlying Portland sandstone stands at 1688 bopd. Over the 30-90 hour flow periods from each of the 3 zones, no clear indication of any reservoir pressure depletion was observed. Further analysis of data is ongoing and will be reported shortly.

Way Forward

Given these exceptional results, the Company has commissioned Nutech to investigate a possible upgrade to the oil in place ("OIP") calculated within all 3 test zones together with engineering studies to examine possible flow rates from a horizontal well. Reservoir engineering analyses by Nutech and Xodus are also underway, and will likely result in an estimation of potential recoverable volumes. Results of these studies will be reported shortly.

Preparation is now underway to obtain regulatory permissions to conduct extended production tests from all 3 zones at the site, followed by a horizontal sidetrack in the Kimmeridge and a possible new Portland development well.

Flow Test Highlights

-- The final Portland test of 323 bopd, over an 8.5-hour, period is the highest stable dry oil flow rate from any onshore UK Portland well. On further testing, with a larger pump, the rate doubled from the previously reported stable dry oil rate of 168 bopd. The Portland was produced at maximum pump capacity and showed no clear indication of depletion. It is likely that the rate can be further increased using a higher capacity downhole pump during the next planned test.

-- Proof that the Kimmeridge limestones contain significant volumes of moveable light oil that can be flowed to surface at commercial rates

-- As previously reported, the stable, natural dry-oil flow rate of 464 bopd from the Lower Kimmeridge Limestone is the first ever flow from this rock unit in the Weald Basin and onshore UK

-- Based on the analysis of published reports from all significant UK onshore discovery wells, the Company concludes that the well's 1688 bopd is likely the highest aggregate stable dry-oil flow from any onshore UK new field wildcat discovery well

-- Based on the analysis of published reports from all significant UK onshore discovery wells, the Company concludes that the 901 bopd from the Upper Kimmeridge zone is likely the highest stable natural dry oil flow rate from a single reservoir in any UK onshore new field wildcat discovery well

-- High quality Brent Crude produced: light, sweet oil (40 degrees API in Kimmeridge, 35-37 degrees API in Portland) 1,940 barrels delivered to the Esso Fawley refinery

-- Preliminary analysis confirms that the Lower and Upper Kimmeridge Limestone units are naturally fractured reservoirs with high deliverability

-- Strong possibility for further optimisation and increased flow rates from all 3 zones in future development and production wells, particularly through the use of horizontal wells

[moneymunch] 21/3/2016 06:37

A while back we looked at the story unfolding beneath Horse Hill. At the time we were curious to understand why Angus Energy had decided to depart from the Horse Hill Sisters and sell their stake to Regency. A simple answer would be that owning the rights to Brockham field meant they could benefit from the same oil that HH-1 discovered from only 2 miles away. And more so but we’ll get back to that. Before we do, let’s take a brief history trip!

Back in 2014, UKOG embarked on journey to target a massive payload of oil within the Upper Portland Sandstone. In October they found what they were after. Well, they almost did. From the start their intention was to find oil there and even though they did, it wasn’t the right spot. The figures that were released weren’t as big as some had anticipated.

Even when they did reveal the discovery they only briefly mention that they hoped to discover gas in the Triassic.

Luck was on their side and when they drilled further they came across the two separate Kimmeridge discoveries. The HH-1 discovery well was now a success for all the wrong reasons, albeit a good one.

Suddenly UKOG started to understand what they were standing on and shortly afterwards, went for a bigger stake in HHDL. Next it was time to bring in a respected geologist, Stephen Sanderson, to the picture.

Many will remember when results of the drill became known in April 2015 and the media attention it generated.

At first it was discounted by some but further analysis of the results by reputed companies started to prove David Lenigas was right about its potential.

Fast forward to 2016 and the flow tests started.

The two Kimmeridge results came first and they showed the enormous potential that could be reached there.

When the last of the three results (Upper Portland) came back, it didn’t show as much as the previous results, but combined, the well could produce over 1,500 bopd. More importantly this was free flowing and no need for fracking or stimulation with only a one inch choke.

When Wytch farm originally started out, they were looking at less than 700 bopd. It later developed into the largest onshore oil field in not just the UK, but also in Western Europe. HH-1 has managed to outperform that first well and it’s only the start. Plans for multiple wells off singular pads are not far away. Not bad for what at first appeared to be a failure by missing the sweet spot in the Upper Portland Sandstone.

So why did Angus decide to leave? Brockham field lies just to the north west of HH-1. The company are experts at drilling since that’s their bread and butter. It has same geology beneath it and they already have 140 barrels coming out the ground. They know what they can achieve from the Kimmeridge, but they can improve what HH-1 did with the Upper Portland. It won’t be long before they’ll be hunting for the sweet spot that was originally missed and at the same time hitting the Kimmeridge zones over and over again. UKOG aren’t stupid either and rather than just watch a competitor take advantage, they have a 6% interest in Angus.

It also wouldn’t be unreal to expect 1 billion barrels or more coming out the region. This won’t be overnight of course, more a long term investments so one to consider for the ISAs and SIPPS. And when this happens,David Lenigas will be getting ready to say "I told you so!"

[moneymunch] 20/3/2016 16:17

ps IGAS operates a 1.1km pipeline near Junction 6 of the M25 from their Palmers Wood oil wells, not that far from HH, and the following explains how they transport oil by road and rail......Gl ;-)

IGAS

Oil is exported by tanker from all sites except the Palmers Wood Coney Hill site which exports to the Palmers Wood Rooks Nest site by pipeline. There are plans to abandon this pipeline. There is also a pipeline into the Holybourne terminal from Humbly Grove. Produced water is either reinjected on site or trucked to another site for reinjection. Power is imported or generated by an on-site diesel generator.



Oil can be either exported by road tanker to the BP operated Hamble terminal on the Solent or by road tanker to the Star operated Holybourne storage facility for onward transport by rail (5,000 stb loads) to the Esso Fawley refinery, which is generally once per week. Generally oil from Stockbridge is exported to Hamble and oil from the other fields is exported to Holyboure / Fawley. However, there is flexibility of operation and any production can be exported via either route.

[moneymunch] 20/3/2016 15:26

and talking of pipelines, another timely UK Gov publication. GLA ;-)

The Oil and Pipelines Agency account 2014 to 2015

From:
The Oil and Pipelines Agency
First published:
15 March 2016

This document contains the following information: The Oil and Pipelines Agency accounts 2014 to 2015.
Document
The Oil and Pipelines Agency account 2014-15

Ref: ISBN 9781910305379, HC 63 2015-16 PDF, 254KB
Detail

This document contains the following information: The Oil and Pipelines Agency account 2014 to 2015.

This paper was laid before Parliament in response to a legislative requirement or as a Return to an Address and was ordered to be printed by the House of Commons.

Published:
15 March 2016

From:
The Oil and Pipelines Agency








The GPSS consists of some 2,500 kilometres of underground cross-country pipelines of differing diameters, together with storage depots, salt cavities, associated pumping stations, receipt and delivery facilities and other ancillary equipment.

An outline map of the GPSS is included on page 10. Most of the storage depots are connected to the pipeline ringmain, which in turn is supplied by the majority of the major refining centres and port areas in England. Other self-standing pipelines and depots are situated elsewhere in England and Scotland.

The GPSS receives, stores, transports and delivers light oil petroleum products for military and civil users.

[thegrumpster] 20/3/2016 15:10

Transporting crude oil by rail. .....All in the US FWIW.










(Related articles down the right hand side)

Negative side of rail transport. Obviously needs to be considered.

[thegrumpster] 20/3/2016 15:09

Does that mean they will re-drill Brockham....deeper?