UKOG commences operations for Horse Hill-2/2z well

Exploration firm UK Oil & Gas (UKOG) has started operations for the new Horse Hill-2/2z (HH-2/2z) Portland horizontal well, following the arrival of the rig.

The company owns an 85.635% controlling interest in the Horse Hill-2/2z well, which will be spudded shortly following the rig-up process completion.

UKOG said that drilling will commence with the HH-2 vertical pilot programme, followed directly by the horizontal HH-2z well section.

The well will be drilled with a planned trajectory of approximately 1,000m wholly within the Portland reservoir.

UKOG expects to complete drilling within 60 days, followed by well testing using a bespoke downhole electric pump or electric submersible pump (ESP).

The company said in a statement: “Immediately prior to rig arrival, test production from the HH-1 Kimmeridge oil pool was temporarily shut-in to permit a safe rig-up process and will be resumed prior to the pilot hole spud.”

Total aggregate test production capacity of Portland and Kimmeridge currently stands at more than 68,773 barrels.

UKOG CEO Stephen Sanderson said: “The journey to long-term oil production at Horse Hill has now begun. We look forward to a safe and successful drilling campaign at our flagship asset.”

UKOG recently gained another 35% stake in the Horse Hill oil field for a £12m consideration comprising cash and UKOG shares, following the acquisition of Magellan Petroleum from Tellurian Investments.

Following the acquisition, UKOG has now increased its stake in the Horse Hill oil field from 50.635% to 85.635%. The company also owns a controlling stake in the surrounding PEDL137 and PEDL246 licences.

These licences will continue to be operated by UKOG subsidiary Horse Hill Developments.