NUTECH signs alliance with UKOG

NUTECH, one of the world's leading companies in petrophysical analysis and reservoir intelligence, has signed an alliance and consulting services agreement with London listed UK Oil & Gas Investments PLC (UKOG). NUTECH will work with UKOG to maximise the potential value of the Horse Hill area licenses 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 License 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 feet thick gross, highly organically rich and thermally mature Upper Jurassic Kimmeridge Clay Formation source rock section that includes an oil saturated conventional Upper KC limestone reservoir. Additional analyses 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 licenses which cover 140 km2. 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 that 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.

Stephen Sanderson, CEO, UKOG, commented, "I am delighted that the Company will gain access to NUTECH's proven global technical expertise, unrivalled experience and extensive industry network in this specialist field to help us fully understand the potential of the HH-1 discovery and its implications for our appraisal and wider exploration objectives. NUTECH brings to the Company, and to the UK, proven knowledge of how to assess and exploit cutting-edge plays, such as the KC Micrite, from their vast experience, particularly in the onshore unconventional USA arena. The alliance is thus a sound investment for the future of UKOG from a technical and a business perspective"

Allen D. Howard II, CCO & EVP, NUTECH, said, "I am excited by the opportunity to work with UKOG on HH-1 given its potential significance to unlock the oil play potential of the KC in the Weald basin. NUTECH will endeavour to implement what has been learned by experience in evaluation and development strategies to assist UKOG's team achieve the best potential outcome in this proof of concept, with the aim of bringing great value to the UK's future onshore production. We, at NUTECH, are pleased to engage in an alliance with the ‘ahead of the wave’ team at UKOG."

Edited from various sources by Joseph Green

Published on 17/03/2015

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