A US-based oil specialist today released another report adding weight to claims by British explorer UK Oil and Gas (Ukog) that there are billions of barrels of oil beneath the ground in the Southeast of England.
Nutech said there could be as many as 15.7bn barrels across Ukog's eight licences in the Weald Basin. Of this, 3.9bn barrels are attributable to Ukog interests in the licence areas.
The release is more expansive than previous reports commissioned by Ukog, looking at 1,261 sq miles of the Weald Basin. The overall Weald basin covers 5,500 sq km.
Stephen Sanderson, executive chairman of Ukog, said: "These findings should now serve to give the market the company's up to date and science-based view of the estimated quantity of oil in place within Ukog's licence areas and in the wider Weald Basin."
"The company believes that the report illuminates the wider Weald Basin's significant potential and demonstrates how the company's interests fit within the overall geological picture."
Despite that, Ukog's share price closed almost six per cent lower, at 1.2p.
Analysts cautioned that the findings still reflect the potential amount of oil that can be drilled, rather than the amount that can definitely be recovered.
"We caution that estimated oil in place volumes mentioned in today’s report by Nutech refers are based on petrophysical analysis and cannot/should not be interpreted as discovered reserves or resources," Brendan D'Souza, an analyst at WH Ireland, said.