UK Oil & Gas says Gatwick Gusher on Horse Hill to become commercially viable earlier than expected

 
Catherine Neilan
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The black stuff is bubbling up (Source: Getty)

The oil at Gatwick Gusher is continuing to flow strongly, prompting the company behind it to say it should become commercially viable "earlier than expected".

Yesterday UK Oil & Gas said it had discovered "significant" amounts of "moveable oil" of good quality, and would begin further testing to establish if it could become a "sustainable commercial production". UKOG's share price surged more than 71 per cent on the news, ending the day up 58 per cent.

Today it confirmed that "light, 40-degree API, sweet oil has continued to flow naturally to surface from an 80-foot zone within the Lower Kimmeridge limestone interval at a depth of approximately 900 metres below ground level".

It produced a steady rate equivalent to more than 465 barrels per day. "Yesterday's flow consisted of dry oil with zero water", UKOG said.

Stephen Sanderson, UKOG's executive chairman, added: "The well continues to produce high quality oil at good rates.

"Although further work is required to be done, we are now beginning to establish the commerciality of the project earlier than originally anticipated. The first two tankers full with 348 barrels of oil were sent to be refined at noon yesterday."

Further testing will take place at the shallower Upper Kimmeridge limestone and Portland sandstone zones - roughly 840 and 615 metres below ground level - once the Lower Kimmeridge testing is completed.

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