UK Oil and Gas (UKOG) has signed an alliance and consulting services agreement with US-based NUTECH Energy Alliance.
The companies will work together to maximise the potential value of the Horse Hill area licences in England.
NUTECH have previously analysed thousands of wells for oil majors in around 80 countries and last year completed a detailed analysis of the conventional potential of 381 UK onshore wells.
The company will assist UKOG in the assessment of reservoir parameters, including oil in place volumes and rock mechanical properties, encountered in the HH-1 discovery.
The analysis will encompass the conventional Portland Sandstone oil pay and the full 1,496 ft thick gross, highly organically rich and thermally mature, Upper Jurassic Kimmeridge Clay (“KC”) Formation source rock section, which includes an oil saturated conventional Upper KC limestone reservoir.
Additional analysis will be undertaken in the Middle and Lower Jurassic source rock sections to help the company understand hydrocarbon charge mechanisms and related potential in this part of the Weald basin.
UKOG will obtain advice on testing and completion design for the HH-1 discovery and for future wells.
Stephen Sanderson, UKOG’s chief executive, said: “I am delighted that the Company will gain access to NUTECH’s proven global technical expertise, unrivalled experience and extensive industry network in this specialist field, to help us fully understand the potential of the HH-1 discovery and its implications for our appraisal and wider exploration objectives.
“NUTECH brings to the Company, and to the UK, proven knowledge of how to assess and exploit cutting-edge plays, such as the KC micrite, from their vast experience, particularly in the onshore unconventional USA arena.
“The alliance is thus a sound investment for the future of UKOG from a technical and a business perspective.”
The Horse Hill site, in the Weald Basin, sits just 3km from the Gatwick airport, and is thought to contain up to 87 million barrels of oil and a further 164 billion cubic feet of gas.
Horse Hill re-emerged as a fruitful target after a failed attempt to leverage its potential 50 years ago.
Oil giant Esso uncovered viable oil shows on the site in the 1960s but later drilled on the wrong side of the fault.
UKOG, Solo Oil, Regency Mines, Stellar Resources, Alba Mineral Resources and Doriemus PLC have since taken up the development.
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