Good news at Gatwick bumps UK Oil & Gas up
SHARES in UK Oil and Gas Investments (UKOG), the firm behind the oil discovery at Horse Hill near Gatwick, were up six per cent in early trading yesterday, after estimates for the amount of oil in the area’s sandstone rocks were upgraded.
The new estimates are separate to the one made last month, which claimed that another part of the Weald Basin could hold up to 100bn barrels. UKOG was later forced to issue two separate clarifications on the size of that find.
However, by the close of trading, the gains had been pared to leave shares up just 0.96 per cent.
A new report on behalf of Horse Hill Developments, the consortium of companies behind the exploration in the area and of which UKOG is a part, found the upper Portland sandstone reservoir area has an estimated 21m barrels in place, up on the previous estimate of 8.2m barrels made in December last year.
“The Xodus Report supports the company’s view that the Horse Hill and Collendean Farm oil pool constitutes a significant conventional upper Portland sandstone oil discovery in the Weald Basin,” said UKOG chief Stephen Sanderson.