The value of the UK oil exploration company UK Oil & Gas Investments (UKOG) soared on Tuesday morning at 77%, after the company reported receiving a stable oil flow in “the largest land field” the UK’s horse hill, located 50 miles from London, near Gatwick airport. The company managed to achieve a stable oil flow volume of more than 463 barrels. a day that was fixed for 7.3 hours, the FT reports.
During the day the UKOG share price has corrected, at 17:15 GMT they were trading at the level of ₤0,020, which is 42.8% more than at the close of trading on Monday. UKOG owns 30% of the company-operator of Horse Hill Developments Limited (HHDL). That, in turn, has a license for the area development of the horse hill area of 55 square miles (142 sq km) oil basin uild (Weald Basin) in the South of England. Just the HHDL consortium consists of eight companies, of which UKOG is the largest.
This is an extremely important event for the company and oil and gas production in the basin uild in the South of England, said in a press release by UKOG CEO Stephen Sanderson. He also said: “the Company will immediately begin the process of obtaining of permits of Supervisory bodies so that we were able to resume production for sustainable industrial production”.
Exploration well on “the largest land field” the UK’s horse hill Photo: REUTERS 2016
The field is located 50 miles from London, near Gatwick airport Photo: REUTERS 2016
UKOG announced the discovery of oil in April last year. The then head of David Lenigas stated that the volume of oil deposits at the field amounts to “billions of barrels”. Sanderson in an interview with BBC estimated the reserves at 50-100 billion barrels, adding that it is the largest onshore field in the UK, discovered over the past 30 years. UKOG compared the stocks of horse hill Texas Dallas, and the American research company Nutech Ltd has estimated that, judging by the amount of oil obtained from wells drilled in the Northern part of the Weald area, the capacity of the field amounts to 158 million barrels. 1 sq mile.
According to the company UKOG, the bulk of the oil lies at a depth in the range 762-914 m. It can be extracted through the traditional horizontal drilling. Relevant work began in 2014.
While UKOG recognized that, given the analysis of similar deposits in the U.S. the company will be able to get only 3-15% of the total amount contained in the oil field. According to Sanderson, by the year 2030 due to extraction in the basin uild UKOG will be able to satisfy 10-30% of the oil needs of the UK. According to official statistics (*.pdf), in 2014 total oil demand in this country amounted to 434,45 million barrels., thus the British manufacturers produced 285,2 million barrels. oil.