UK Oil and Gas Investments share price rockets on new Horse Hill oil report estimating more oil

 
Lynsey Barber
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A new report indicates the amount of oil which may be at Horse Hill (Source: Getty)

Shares in UK Oil and Gas Investments rocketed by as much as 52 per cent in early trading after it published a new report on the amount of oil located at Horse Hill near Gatwick.

Shares in the Aim-listed oil exploration firm were suspended yesterday pending the announcement.

The new report estimates overall oil in place (OIP) of 271.4m barrels of oil (MMBO) per square mile at the Horse Hill well, which is nicknamed the "Gatwick gusher". The well is located in part of the oil-producing Weald Basin area which spans Sussex, Surrey, Kent and Hampshire called Britain's Dallas

It's larger than the previous estimates of 158 MMBO per square mile - however, OIP estimates do not indicate how much of that oil can be extracted.

Shares in other oil companies involved in the development of the Horse Hill well also rose. Solo Oil was up three per cent, Alba Minerals 12 per cent, Stellar Resources up 13 per cent and Doriemus up five per cent.

The initial report by Nutech sent shares in the company surging 300 per cent in April. UKOG chief Stephen Sanderson called the discovery "world class" and the biggest oil discovery in the last 30 years at the time.

"This independent technical viewpoint adds further weight to the potential significance of the HH-1 well and the potential of the Horse Hill licences," he said today.

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