StockMarketWire.com - Solo Oil [LON:SOLO] was one of the sector's biggest risers after it was advised of significant oil flows at the Horse Hill-1 well in the Weald Basin.

Solo said it had been been advised by the operator, Horse Hill Developments Limited, that light, 40 degree API, sweet oil has flowed naturally to surface from an 80-foot zone within the Lower Kimmeridge limestone interval at a depth of approximately 900 metres below ground level.

Fluid flow commenced at around 10.00 a.m. yesterday at an initial instantaneous rate in excess of 700 barrels per day through a 1-inch choke, in an approximate mix of 50:50 oil to water. The well was then choked back to 32/64-inches resulting in a steady early oil rate in excess of 460 barrels of oil per day over a further seven hour period, in an approximate mixture of 99% oil and less than 1% water.

The Lower Kimmeridge flow period will continue today following an overnight shut-in. Upon completion of testing in this zone, operations will move to the shallower Upper Kimmeridge limestone and Portland Sandstone zones at approximately 840 and 615 metres below ground level, respectively.

The Horse Hill-1 discovery well, in which the original exploration drilling phase was completed at the end of 2014, is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. Solo owns a 6.5% interest in PEDL137.

Solo chairman Neil Ritson said: "Early reports from the wellsite are extremely encouraging and certainly exceed our expectations for natural flow from the Kimmeridge limestones. We look forward to more news from the final test results from the Lower Kimmeridge limestone and the remaining Portland Sandstone tests in due course."

Solo's interests, comprise licences PEDL137 and PEDL246, are located on the northern side of the Weald Basin. The HH-1 discovery well is located in PEDL137. Solo owns a 10% direct interest in Horse Hill Developments Ltd, a special purpose company, that owns a 65% participating interest and is the operator of these licences. The remaining 35% participating interest is held by Magellan Petroleum Corporation.

* * *

Tower Resources [LON:TRP] subsidiary Rift Petroleum Ltd and its partner New African Global Energy SA (Pty) Ltd have agreed not to proceed with an application to convert the SW Orange Basin Technical Co-operation Permit into an exploration right.

Accordingly, New Age will reimburse Rift the sum of USD500,000, which was paid by Rift as part of its original farm-in agreement in 2013, and which has now been terminated.

Tower's exit from this high cost ultra deep-water frontier basin is consistent with its move towards a more balanced portfolio of proven and emerging basins.

This decision will enable the company to focus its efforts in South Africa on the Algoa-Gamtoos ER, which offers greater near-term potential.

* * *

San Leon Energy [LON:SLE] said certain of its subsidiaries, including Aurelian Oil & Gas Ltd (together, Aurelian) have been unsuccessful in their appeal against the findings of the International Court of Arbitration of the International Chamber of Commerce in relation to the arbitration between Aurelian and Avobone N.V. and Avobone Poland B.V.

Aurelian appealed the ICC findings to the UK Commercial Court in October 2015. The findings of the court, received by the Company on 4 February 2016 but not conclusive until 11 February, were that Aurelian's leave to appeal was dismissed.

Accordingly, the original award as detailed in the Company's announcement of 26 May 2015 stands.

San Leon is conferring with Counsel on its options, and will provide further updates in due course.

* * *

The sector's biggest risers were Range Resources [LON:RRL] and Regal Petroleum [LON:RPT] - up by more than 38.6% and over 22.8% respectively. The biggest fallers were Management Resource Solutions [LON:MRS] and Caza Oil & Gas [LON:CAZA] - down by more than 11.2% and 10% respectively.





At 4:01pm:

[LON:AUR] Aurum Mining PLC share price was 0p at 0.95p

[LON:BOR] Borders Southern Petroleum PLC share price was +0.11p at 2.06p

[LON:CHAR] Chariot Oil Gas Ltd share price was +0.36p at 5.25p

[LON:ENQ] EnQuest Plc share price was -0.12p at 13.88p

[LON:GKP] Gulf Keystone Petroleum share price was +0.13p at 14.63p

[LON:GPX] Gulfsands Petroleum PLC share price was 0p at 3.25p

[LON:INDI] Indus Gas Ltd share price was +3p at 118p

[LON:PET] Petrel Resources PLC share price was 0p at 2.88p

[LON:RKH] Rockhopper Exploration PLC share price was -0.75p at 26p

[LON:RPT] Regal Petroleum PLC share price was +0.61p at 3.26p

[LON:RRL] Range Resources Ltd share price was +0.09p at 0.31p

[LON:SOLO] Solo Oil PLC share price was +0.04p at 0.32p

[LON:TRP] Tower Resources PLC share price was +0.01p at 0.09p

[LON:XEL] Xcite Energy Ltd share price was 0p at 13.5p



Story provided by StockMarketWire.com