NUTECH is pleased to announce it has signed an alliance and consulting services agreement with London listed UK Oil & Gas Investments PLC (UKOG). NUTECH will work with UKOG to maximize the potential value of the Horse Hill area licences after the success of the company's recent Horse Hill-1 discovery in the UK's Weald Basin and assist UKOG with its other key UK hydrocarbon assets.
In 2014, prior to the UK Landward 14th Licence Round, NUTECH completed the detailed analysis of the conventional and unconventional potential of 381 UK onshore released wells, situated within key hydrocarbon play fairways in seven basins across the UK. The study included 133 wells in the Weald and Wessex basins, currently UKOG's prime areas of interest.
NUTECH will immediately assist UKOG in the assessment of reservoir parameters, including oil in place volumes and rock mechanical properties, encountered in the HH-1 discovery. The analysis will encompass the conventional Portland Sandstone oil pay and the full 1496 ft thick gross, highly organically rich and thermally mature, Upper Jurassic Kimmeridge Clay Formation source rock section, which includes an oil saturated conventional Upper KC limestone reservoir. Additional analysis will be undertaken in the Middle and Lower Jurassic source rock sections to help the company understand hydrocarbon charge mechanisms and related potential in this part of the Weald basin. UKOG will obtain advice on testing and completion design for the HH-1 discovery and for future wells.
As part of the alliance agreement, UKOG will also obtain NUTECH's 2014 analyses of key wells surrounding PEDL137 and PEDL246 licences, which cover 140 km2 (34,600 acres). These analyses will be used to further define the likely semi-regional extent and size of the KC micrite and related plays encountered in the HH-1 well.
UKOG will also obtain NUTECH's analyses of the Arreton-2 well, an undeveloped potential Portland missed oil-pay discovery onshore Isle of Wight, drilled by British Gas in 1974. The Arreton-2 well is located within UKOG's 14th round application area, which lies adjacent to its P1916 offshore Isle of Wight acreage. In addition to the missed pay potential the Company will utilize its learning from HH-1 to investigate the hydrocarbon potential not only within the KC Formation but also in the Osmington Oolite limestone and Middle and Lower Jurassic hot shale sequences in the Isle of Wight area.