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UKOG shares hit after Broadford Bridge testing hit snag

UKOG boss Stephen Sanderson says the Broadford Bridge well will be restored to an optimal condition for further testing.
Onshore oil drilling
The shares were down around 14%

UK Oil & Gas Investments PLC (LON:UKOG) shares were on the back foot today after the UK onshore exploration firm revealed complications at the Broadford Bridge project.

The oil company has been trying to flow test the Kimmeridge play in the Broadford Bridge well. It has been successful in as much as light oil has flowed to surface, however, further work-over programmes will be needed before meaningful analysis can take place.

READ: UKOG cleared to complete full well test programme

UKOG encountered problems related to cement bonding in the well, and it has been interpreted that those issues mean the well is not effectively connected to “much of the best open natural fractures” in the Kimmeridge.

“Therefore, the testing to date has not properly evaluated the full flow potential of the overall Kimmeridge reservoir sequence,” UKOG said in a statement.

A workover programme, to fix the problem, will get underway following the completion of clean-up operations.

READ: UKOG's upbeat update has WH Ireland eager for more data

Stephen Sanderson, UKOG's executive chairman, said: “The recovery of free, mobile light oil and solution gas to surface is significant and encouraging news and testament to the Kimmeridge Limestone reservoir's ability to deliver hydrocarbons even from a less than optimal completion. 

“The periods of good natural flow and identification of additional prospective reservoir zones to flow test add further positive outcomes.

He added: “Although the forthcoming workover presents additional unplanned work, the reservoir zone's cement-bond integrity is readily rectifiable by the planned short cement-squeeze phase, a common-place and routine oilfield practice.

“The well will then be restored to an optimal condition for further testing.”

By afternoon trading, UKOG shares had dropped by 19% to 5.08p.

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