London quoted UK Oil & Gas Investments PLC is has announced that US-based Nutech Ltd estimate that the Horse Hill-1 well in the Weald Basin has a total oil in place (OIP) of 158 million barrels per square mile (MMBO), with the potential for significant daily oil production.

 The Horse Hill licences cover 55 square miles of the Weald Basin in southern England in which the UK Oil & Gas has a 20.36% interest - the estimate excludes the previously reported Upper Portland Sandstone oil discovery.

According to UKOG, the oil can be extracted by using conventional drilling techniques without the need for hydraulic fracturing where chemicals are pumped into the ground to bring out the oil.

Nutech, one of the world's leading companies in petrophysical analysis and reservoir intelligence, has reported that the OIP lies within a 653 feet aggregate net pay section.

In order to establish estimates of total OIP within the licence area, the semi-regional resource potential of the Weald Basin's eastern footprint is the subject of ongoing analysis under the contracted alliance between Nutech, UKOG and Solo Oil Plc. The results of the estimated OIP within the licence will be reported when completed.

 Final assessments of other sections are also in progress, with further results expected shortly.

Possible world class potential resource

 Stephen Sanderson, UKOG's CEO, commented:

"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."

 "As a result, we believe that, in addition to the Portland Sandstone oil discovery, the Horse Hill well has discovered a possible world class potential resource in what is interpreted to be a new Upper Jurassic "hybrid play".

 "With the help of Nutech's considerable global knowledge base and play library, we have identified that the Horse Hill Upper Jurassic rock sequence is analogous to known oil productive hybrid reservoir sections of the Bakken of the US Williston Basin, the Wolfcamp, Bone Springs, Clearfork, Spraberry, and Dean Formations in the US Permian Basin and the Bazhenov Formation of West Siberia."

 "The US analogues have estimated recovery factors of between 3% and 15% of Oil in Place."

According to UKOG, the high pay thickness, combined with interpreted naturally fractured limestone reservoir with measurable matrix permeability, provides strong encouragement that the reservoirs can be successfully produced using conventional horizontal drilling and completion techniques.

Sanderson continued:

 "Nutech's results combined with our extensive geochemical analyses strongly indicates that the Company's Horse Hill licences lie within the likely sweet spot of the identified "Weald hybrid play"."

"Appraisal drilling and well testing will be required to prove its commerciality, but this "Weald hybrid play" has the potential for significant daily oil production."

The operator, Horse Hill Developments Ltd, with the assistance of Nutech, is now focussed on flow testing the Portland Sandstone and Kimmeridge Limestone sections of the well, to establish producibility and thereby seeking to quantify an overall net discovered resource.

The Horse Hill-1 well is located within onshore exploration License PEDL 137, on the northern side of the Weald Basin near Gatwick Airport.  UKOG owns a 30% direct interest in Horse Hill Developments Ltd and a 1.32% interest in HHDL via its 6% interest in Angus Energy Limited. HHDL is a special purpose company that owns a 65% participating interest and operatorship of Licence PEDL 137 and the adjacent Licence PEDL 246 in the UK Weald Basin.