Angus Energy (LSE:ANGS) dipped 11.6pc to 11.4p yesterday after beginning a long-awaited commercial flow test programme at its Brockham oil field. The firm will provide an update on the targeted Kimmeridge layers of its BR-X4Z well at the area in due course.
Angus added that it will suspend its long-term flow testing programme at Brockham over Christmas. Work will resume on 7 January.
The firm is the 65pc-owner and operator of Brockham. Like many of the business’s assets, it is located in Surrey’s Weald Basin. This is also the location of the high profile Horse Hill discovery, which is being led by UK Oil & Gas (LSE:UKOG).
Brockham is based on the Basin’s northern flank along strike from the Albury and Palmers Wood fields. It is a faulted three-way dip Jurassic closure sealed by overlying Purbeck Anhydrite. The area was discovered first by BP in 1987 when the oil major found oil in the Portland Sandstone.
Today’s test is funded from a £2m placing at the beginning of November. At this time, Angus said it planned to start commercial production from the Kimmeridge layers before the end of the year.
It hopes to re-enter the BR-X4Z well and access c.200m of interbedded, naturally-fractured Kimmeridge shale and limestone layers. These share numerous characteristics with Balcombe, one of the firm’s other partially-owned assets in the Weald Basin.
Angus first received planning approval to drill the Kimmeridge layers from Surrey’s County Council in August.
All operations at the site, like at Balcombe, focus on conventional production. This means they do not use controversial techniques like hydraulic fracturing, also known as ‘fracking’.
In July, the business’s belief in Brockham was bolstered by a Kimmeridge assessment at another of its fields, called Lidsey. Here, the firm said it had found ‘demonstrable evidence’ of oil generation of good quality on the outer perimeter of the Weald Basin.
Paul Vonk, Angus’s managing director, said at the time: ‘This supports our conclusion that the Weald Basin Kimmeridge play is robust and the highest maturity will be found in the centre of the Weald at Brockham, Balcombe, Holmwood and Horse Hill.’
Earlier in the year, the business resumed production at Brockham from its Portland layer, via its BR-X2Y well. It resumed production at 21bopd, which the firm expected to increase to roughly 35bopd once initial water slugging had stopped.