The company behind the so-called “Gatwick gusher” claims the results of its latest flow tests prove beyond doubt that it has made a major commercial oil discovery.
UK Oil & Gas said the latest test at the Horse Hill-1 well in Surrey showed oil flowing at more than 900 barrels a day, double the rate seen a fortnight ago from deeper reserves.
Together, they mean a combined average flow of 1,360 barrels a day without significant stimulation and before any horizontal drilling at the site, which is just a mile down the road from London’s second airport.
Once the company has finished testing the Kimmeridge limestone, it will move onto the shallower Portland sandstone.
UKOG shares jumped 14 per cent to 2.88p on the news, while shares in the six other companies with stakes in the project, including Alba Mineral Resources and Solo Oil, also advanced.
UKOG’s executive chairman Stephen Sanderson said the test provided “unequivocal proof of concept” for the discovery. “The Kimmeridge play has moved from science project into the zone of commercial reality,” he said.
David Lenigas, who stepped down as chairman of UKOG last year, hailed the results on Twitter: “Who said there was no oil at Gatwick? Garbage!”
