Oil and gas exploration company UK Oil & Gas (UKOG) is seeking approval from the Isle of Wight Council for the appraisal drilling and flow testing of the Arreton oil discovery located in Petroleum Exploration Development Licence 331.
The application determines the company’s planned construction, operation and eventual decommissioning of a well site for the appraisal of hydrocarbons.
During the three years, the firm plans to drill and flow test the discovery well via a deviated borehole (A-3) plus a potential horizontal sidetrack off the “mother” borehole (A-3z).
UKOG said in a statement: “UKOG has spent considerable time and undertaken much research to minimise the potential noise and visual impact of the site, which will be largely screened from public view.”
According to the company’s July 2018 AIM admission document report, the Arreton conventional oil discovery holds three stacked Jurassic oil pools holding a third party (Xodus) aggregate gross P50 oil in place of 127 million barrels (mmbbl).
A-3 well envisaged to twin A-1 and A-2 discovery wells
The company expects the A-3 well to duplicate A-1 and A-2 discovery wells that were drilled by BP and the Gas Council in 1952 and 1974, respectively.
However, UKOG plans to drill an A-3z horizontal sidetrack, upon indication of possible commercial viability following short term flow testing of A-3. It also plans to test extended well to assess longer-term flow performance.
UKOG CEO Stephen Sanderson said: “Whilst UKOG’s primary focus will remain on maintaining continued long-term stable and profitable oil production at Horse Hill, our efforts will also continue with those actions necessary to ensure that both the Arreton oil and Loxley gas appraisal projects move forwards as swiftly as the current UK situation permits.”
The Petroleum Exploration Development Licence 331, which is 95% owned by UKOG, extends over a 200km² of area and covers most of the southern half of the Isle of Wight.
