UK Oil & Gas PLC advised that the Horse Hill-1 well has now been drilled to the second casing point at 1,795 feet measured depth, and the setting and cementing a 13 3/8-inch steel casing is now underway.  The bottom of the well is currently located in the upper part of the Jurassic and the well has encountered the expected mud gas up to C3 (propane) and mineral fluorescence just above current well depth. Geological analysis and mud logging from rock cuttings circulated out of the hole indicate that geological markers in the well are slightly shallower than initially prognosed based on seismic and the nearby Collendean - 1 well drilled by ESSO in 1964.  The second casing point has been revised up from 1,865 feet MD to reflect this. The Horse Hill-1 well is located on the northern side of UK Weald Basin near Gatwick Airport and is planned to drill to a Total Depth of 8,680 feet measured depth to test a number of conventional oil and gas targets.

The primary oil reservoir targets in this well lie in the Jurassic Portland Sandstone at about 2,200 feet true vertical depth below sea level and the Corallian Sandstone at about 3,440 feet TVD ss. There are also a number of secondary oil targets in the Jurassic aged formations, including the Great Oolite Limestone, estimated to be at 4,530 feet TVD ss. After setting the 13 3/8-inch casing the well will be drilled in 12 ½-inch hole to a depth of approximately 5,900 feet MD where open-hole electric logs will be acquired through the prognosed oil reservoirs before setting a 9 5/8-inch casing.  Then an 8 ½-inch hole will be drilled to TD in order to test for Triassic aged formations which are expected to contain gas.