UK Oil & Gas (AIM: UKOG) has increased production from the Horndean field after a workover campaign successfully located a downhole pump further down the wellbore.
With the work taking place in the last quarter of 2024, the field’s results for January 2025 saw an average 200 bpd of oil produced. This is 60% higher than the 125 bpd achieved in January 2024.
Based upon the improved post-workover performance, the operator, Star Energy, now forecasts 2025 annual field production to be 61,195 barrels compared to 49,402 bbl produced in 2024, a material 24% increase if achieved.
The forecast assumes an average daily rate of 168 bpd.
As January 2025’s 200 bpd average is already 19% above the 168 bpd 2025 annual field production forecast, further potential exists for increased 2025 production over the forecast.
2024 total field production also outperformed the budget forecast by 11%, achieving 49,402 barrels versus the forecast of 44,379 barrels.
The recent workovers, combined with the prior installation of new electric pumps in 2023, have further increased the trend of improved field performance and low decline seen in 2023’s production figures, which showed a 22% increase in daily production versus 2022.
UKOG chief executive Stephen Sanderson commented: “We are delighted with the clear success of the workover programme and the materially increased production rates obtained. Horndean’s production rate, decline and revenues continue to exceed expectations, further underscoring its value to our portfolio.”
UKOG holds a 10% interest in the Horndean field, which is located in Hampshire. Since the start of production in 1987, the field and has produced 2.4 million barrels of oil.
In addition to the field, UKOG has been looking to develop a hydrogen storage site, having raised £500,000 to buy a salt cavern in East Yorkshire as part of the project.
RWE has come out in support of the development, saying it could be “potentially beneficial” for the company.
Recommended for you
