Firm makes major Gatwick oil find

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Published: Thursday 9th April 2015 by The News Editor

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An exploration firm has announced the discovery of billions of barrels of oil reserves at a site near Gatwick airport.

UK Oil & Gas Investments (UKOG) said drilling of the 55-square mile site at the Weald Basin had discovered 158 million barrels per square mile.

Chief executive Stephen Sanderson said the Horse Hill-1 well required appraisal and testing to prove its commercial viability but that it had “the potential for significant daily oil production”.

Together with another discovery, Portland Sandstone, it was a “possible world class potential resource”.

Mr Sanderson told the BBC: “We think we’ve found a very significant discovery here, probably the largest [onshore in the UK] in the last 30 years, and we think it has national significance.”

Similar wells in the US had seen “estimated recovery factors” of between 3% and 15% of the oil in place, he added.

He said: “Drilling the deepest well in the basin in 30 years, together with the ability to use concepts, techniques and technology unavailable in the 1980s, has provided new cutting-edge data and interpretations to comprehensively change the understanding of the area’s potential oil resources.”

UKOG has an interest of just over a fifth in the Horse Hill site. Shares in the company initially more than quadrupled in value on the announcement.

Published: Thursday 9th April 2015 by The News Editor

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