UK Oil & Gas Investments has released a Competent Persons Report (CPR) calculating that the onshore Markwells Wood oil field's Jurassic Great Oolite limestone reservoir contains a 2C or P50 potentially recoverable Contingent Resource of 1.25 MMbbl net to the company.
The Markwells Wood oil field, in which the company has a 100% interest, is located in UK license PEDL126 in the west of the Weald basin immediately to the east of the producing Horndean field, in which the company has a 10% production interest, and approximately 12km northeast of Portsmouth on the south coast of England. The field lies approximately 60km to the southeast of the company's Horse Hill oil discovery.
The Markwells Wood Contingent Resources ranges estimated by Xodus Group are shown in Table 1:
The CPR is based on Xodus' review and audit of the company's recent subsurface evaluations of all available data over the Markwells Wood-1 (MW-1) discovery and the surrounding field area.
The CPR's 1C volume estimate is, therefore, based on a field development of two new horizontal wells (to include the MW-1ST), whereas the 2C and 3C volume estimates are based on 5 new horizontal wells in the field.
Although no economic analysis was conducted by Xodus, the CPR concludes that the expected MW-1ST well performance gives confidence that production from a new well is likely to be commercial.
Image: Xodus' Estimated Markwells Wood Contingent Resources/Xodus