28th Jan 2016 08:37
LONDON (Alliance News) - UK Oil & Gas Investments PLC and Solo Oil PLC Thursday said an independent analysis over their licence onshore the Isle of Wight has shown there could be over 200 million barrels of oil in place.
The independent analysis was carried out by Xodus Group Ltd, which has calculated the licence may contain an aggregate gross best estimate oil in place of 219 million barrels of oil within the Purbeck, Portland and Inferior Oolite limestone reservoirs within PEDL331.
Those 219 million barrels are thought to lie in the historic Arreton-2 well, now interpreted to be an undeveloped oil discovery, and the adjacent low-risk Arreton North and South prospects, it said.
An oil in place estimate is the total estimated quantity of oil in the ground before any extraction or production and should not be construed as contingent resources or reserves.
Xodus has also estimated that the Arreton main structure in the licence contains an aggregate best estimate net recoverable resource volume of 10.2 million barrels of oil. Solo and UK Oil & Gas said these can be classified as contingent resources.
In addition to the potential oil in the main structure, the Arreton North and South prospects are thought to have a best estimate aggregate net prospective resource of 6.8 million barrels, it said.
Solo Oil holds a 30% working interest in the onshore licence whilst UK Oil & Gas holds a 65% working interest. Angus Energy, in which UK Oil & Gas is invested in, holds the other 5% stake.
The trio were offered the licence in December last year by the Oil and Gas Authority, and although the companies intend to take up the licence, they are currently finalising necessary documentation to formally accept the licence, which they expect will occur in April.
"We are delighted with the technical progress being made on the recently offered licence PEDL331 and look forward to further plans as they emerge from the licence group. The Arreton-2 discovery, Arreton Main, clearly contains significant potential for producible oil and there are similar undrilled prospects within the licence," said Neil Ritson, chairman of Solo Oil.
UK Oil shares were trading up 2.6% to 1.41 pence per share on Thursday morning whilst Solo shares were up 9.2% to 0.295p.
By Joshua Warner; [email protected]; @JoshAlliance
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