Horse Hill-1 Oil Discovery, Flow Test Consent

RNS Number : 3678H

Solo Oil Plc

30 November 2015

 

FOR IMMEDIATE RELEASE                                                                                            30 November 2015

SOLO OIL PLC

("Solo" or the "Company")

Horse Hill-1 Oil Discovery, Weald Basin, UK

Flow Test Consent from the UK Environment Agency

Solo is pleased to report that it has been informed by the Operator, Horse Hill Developments Limited ("HHDL"), that the Environment Agency has formally granted the permit necessary to carry out a flow test of the Horse Hill-1 ("HH-1") oil discovery well.  The HH-1 well, drilled at the end of 2014, is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport.  Solo has a net attributable interest of 6.5% in the Licence Area.

According to HHDL, the planned flow test is designed to test both the oil bearing Upper Portland sandstone reservoir and the Kimmeridge limestone reservoirs beneath the Portland. The test is designed to provide the necessary reservoir engineering data to enable an assessment of the commercial viability of the Portland sandstone oil discovery, where significant oil shows were encountered whilst drilling.  The test will also provide a further "proof of concept" for the Kimmeridge tight oil play, which has previously been shown to flow oil elsewhere in the same formations of the Weald Basin, at Balcombe, some 10 miles to the south.

HHDL has also reported that the operational planning for the test is in its final stages and the necessary work-over rig and test equipment have been contracted and the testing team is being mobilised. HHDL expects flow tests to be conducted as soon as practicable following the remaining regulatory approvals from the Health and Safety Executive and Oil and Gas Authority, which are expected in the very near future.  Solo believes that testing will now occur in early 2016.

Neil Ritson, Solo's Non-Executive Chairman Commented:

"We are very pleased that consent to flow test the Horse Hill-1 discovery well has now been granted. The results of the test will be important in determining the viability of a Portland oil development and to help to shape the development strategy. Additionally, we hope that the test will provide additional data on the high potential Kimmeridge tight oil play within the Weald Basin."

Solo's interest in the Licence Area and Horse Hill:

The Licence Area, comprising licences PEDL137 and PEDL246, is located on the northern side of the Weald Basin of South East England near Gatwick Airport. The HH-1 discovery well is located in PEDL137.  Solo owns a 10% direct interest in Horse Hill Developments Ltd a special purpose company that owns a 65% participating interest and is the operator of the Licence Area. The remaining 35% participating interest in the Licence Area is held by Magellan Petroleum Corporation.

Qualified Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chairman and Director for Solo Oil Plc who has over 38 years of relevant experience in the energy sector.  Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc Neil Ritson Fergus Jenkins	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen (Corporate Broker) Bell Pottinger                            Public Relations Henry Lerwill Cassiopeia Services LLP Investor Relations Stefania Barbaglio	[phone] [phone] [phone]

Glossary

discovery	a discovery is a petroleum accumulation for which one or several exploratory wells have established through testing, sampling and/or logging the existence of a significant quantity of potentially moveable hydrocarbons
flow test	a flow test or well test involves testing a well by flowing hydrocarbons to surface, typically through a test separator. Key measured parameters are oil and gas flow rates, downhole pressure and surface pressure. The overall objective is to identify the well's capacity to produce hydrocarbons at a commercial flow rate
limestone	a sedimentary rock predominantly composed of calcite (a crystalline mineral form of calcium carbonate) of organic, chemical or detrital origin. Minor amounts of dolomite, chert and clay are common in limestones. Chalk is a form of fine-grained limestone
play	a set of known or postulated oil and or gas accumulations sharing similar geological, geographical, and temporal properties, such as source rock, migration pathways, timing, trapping mechanism, and hydrocarbon type
sandstone	a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to imply consolidated sand or a rock made of predominantly quartz sand.
tight oil	oil found or expected to be present within a reservoir with low permeability, i.e. a tight reservoir. The term, in the case of the Weald Tight Oil Plays, is applied to a play where trapped petroleum accumulations are expected to be pervasive throughout a large area and that are not significantly affected by hydrodynamic influences (also called "continuous-type deposits")

 

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