Gunsynd PLC Horse Hill Update (6562M)
17 October 2016 - 5:00PM
UK Regulatory
TIDMGUN
RNS Number : 6562M
Gunsynd PLC
17 October 2016
Gunsynd Plc
("Gunsynd" or the "Company")
Horse Hill-1 Oil Discovery, Weald Basin, UK
Planning Application for Significant Appraisal Programme, UK
Weald Basin
Gunsynd (AIM: GUN, ISDX: GUN) announces that Horse Hill
Developments Ltd ("HHDL") has informed the Company that a planning
application has been submitted to Surrey County Council seeking
permission to conduct further significant appraisal testing and
drilling at the Horse Hill-1 ("HH-1") oil discovery, located in
Licence PEDL137, close to Gatwick Airport. The HH-1 oil discovery
achieved an aggregate stabilised flow rate of 1688 bopd from two
Kimmeridge limestones plus the overlying Portland sandstone. The
Company holds a 1.3% interest in PEDL137.
Subject to the required regulatory approvals, the first phase of
the proposed development is planned to consist of the extended
production testing of four zones, designed to confirm the
commerciality of the discovery, and to examine a previously
untested Kimmeridge limestone. The planning application also seeks
permission for a two-well drilling phase, which contingent upon
successful testing, will further appraise the extent of the oil
accumulations and the field's production capabilities. The proposed
drilling phase includes plans for a deviated sidetrack, HH-1z, to
be drilled from the existing HH-1 borehole, together with a new
well, Horse Hill-2 ("HH-2"). On completion of drilling, both the
HH-1z and HH-2 are planned to be long-term production tested.
In order to minimise impact to the locality, feedback from both
a public consultation and engagement process, undertaken in July,
and subsequent meetings with local residents' representatives, was
incorporated into the envisaged development design and planning
application. The normal local planning authority cycle for an
application not requiring an Environmental Impact Assessment such
as at Horse Hill, takes approximately 13 weeks.
HHDL and the Company's Interest in the Licence
HHDL is a special purpose vehicle, which owns a 65% working
interest and operatorship of the Licence. Gunsynd owns a 2%
beneficial shareholding in HHDL, which equates to a 1.3% net
working interest in the Licences. The remaining 35% interest in the
Licences is held by Magellan Petroleum (UK) Limited.
Qualified Person's Statement
Stephen Sanderson, UK Oil & Gas Investment plc's Executive
Chairman, who has over 35 years of relevant experience in the oil
industry, has approved the information contained in this
announcement. Mr Sanderson is a Fellow of the Geological Society of
London and is an active member of the American Association of
Petroleum Geologists.
For further information please contact:
Gunsynd plc: +44 (0) 20 7440 0640
Hamish Harris
Nominated Adviser and
Broker: +44 (0) 20 7148 7900
Cairn Financial Advisers
LLP
James Caithie / Liam
Murray
Glossary:
discovery a discovery is a petroleum accumulation
for which one or several exploratory
wells have established through testing,
sampling and/or logging the existence
of a significant quantity of potentially
moveable hydrocarbons
-------------------- ------------------------------------------
extended production a flow test, or extended well test
test as per the permission granted by
the Oil and Gas Authority, with
an aggregate flow period duration
over all zones of greater than 96
hours and up to 90 days maximum
-------------------- ------------------------------------------
sidetrack re-entry of a well from the well's
surface location with drilling equipment
for the purpose of deviating from
the existing well bore to achieve
production or well data from an
alternative zone or bottom hole
location, or to remedy an engineering
problem encountered in the existing
well bore.
-------------------- ------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGGUCUUPQGWQ
(END) Dow Jones Newswires
October 17, 2016 02:00 ET (06:00 GMT)