Britain went crazy last week when it heard that UK Oil & Gas Investments, the exploration, development, and production group, revealed that it discovered about 100 billion barrels of oil near Gatwick Airport.
Effectively, in this long and not so clear regulatory statement it said it is actually not sure how much oil is in Horse Hill near Gatwick Airport, West Sussex.
It didn’t even just say in the statement what potential barrel discovery is in round numbers, even though the Stephen Sanderson, CEO of UKOG told the media over the last week that the group uncovered potentially up to 100 billion barrels of oil (emphasis ours):
Further to its announcement of 9 April 2015 in relation to the upgrade of its Horse Hill discovery, London quoted UK Oil & Gas Investments PLC wishes to repeat and clarify a number of points as a result of recent reports in the media.
US-based Nutech Ltd (“Nutech”) estimates that the Horse Hill-1 (“HH-1”) well in the Weald Basin has a total oil in place (“OIP”) of 158 million barrels (“MMBO”) per square mile. The upgrade is in relation to the Kimmeridge, Oxford and Lias sections of Horse Hill and does not relate to the previously reported Upper Portland Sandstone oil discovery.
The OIP hydrocarbon volumes estimated should not be considered as either contingent or prospective resources or reserves.
Further development work in the form of appraisal drilling, well testing and assessment of recovery factors will be required to seek to quantify net resources in relation to the Company’s licence areas and to prove its commerciality.
Last week, UKOG said in a regulatory statement that up to 100 billion barrels of oil could be onshore beneath the South of England, after it drilled a well at Horse Hill near Gatwick Airport, West Sussex, last year. The number comes from the fact that UKOG said that the local area could hold 158 million barrels of oil per square mile and from management estimates confirmed on the BBC.
“Based on what we’ve found here, we’re looking at between 50 and 100 billion barrels of oil in place in the ground. We believe we can recover between 5% and 15% of the oil in the ground, which by 2030 could mean that we produce 10%-to-30% of the UK’s oil demand from within the Weald area,” said Stephen Sanderson, CEO of UKOG.
Immediately after the initial announcement, UKOG shares rocketed by over 200%.