UK Oil & Gas leads peers higher on Horse Hill potential

Shares in a number of AIM oil producers rose on Wednesday after an update on the Horse Hill discovery in the UK Weald Basin showed further potential oil pay.

Horse Hill Developments Ltd (HHDL), which is part-owned by several UK-listed producers, said that ongoing well analysis of the Horse Hill-1 well found more oil in addition to the previously reported 102 feet of Portland sandstone gross oil pay.

A further 407 net feet of potential oil pay exists within limestones and claystones of the Kimmeridge Clay, Oxford Clay and Middle Lias formations, it said.

HHDL is a special purpose company that owns a 65% stake and operatorship of Licence PEDL 137 and the adjacent Licence PELD 246 in the UK Weald Basin. Magellan Petroleum owns the other 35% interest.

UK Oil & Gas Investments (UKOG) owns a 30% direct interest in HHDL and a further 1.32% stake via its interest in Angus Energy.

UKOG's chief executive Stephen Sanderson said: "The data and analyses to date give strong encouragement that the company has encountered something new and substantive in the Kimmeridge section of PEDL137 and PEDL246 to add to the HH-1 Portland sandstone oil discovery."

Regency Mines, Alba Mineral Resources, Solo Oil, Doriemus and Stellar Resources also own smaller stakes in HHDL through direct and indirect interests.

UKOG in particular, was trading up 5.4% at 0.901p in early deals.