UK Oil & Gas reports increase in production at Horndean

(Sharecast News) - UK Oil & Gas reported a significant increase in production at the Horndean oil field on Monday, following a successful workover campaign in late 2024. The AIM-traded firm said the deeper seating of a downhole pump had driven a 60% year-on-year rise in full-field production, with January output averaging 200 barrels per day, compared to 125 daily barrels in January last year.

It said the field operator, Star Energy, had now revised its 2025 production forecast to 61,195 barrels, a 24% increase from the 49,402 barrels produced in 2024.

That projection assumed an average daily rate of 168 barrels of oil, though January's actual production levels already exceed this by 19%, suggesting further upside potential.

The board said the 2024 total field production also outperformed expectations, exceeding budget forecasts by 11%.

It said the combined impact of recent workovers and the installation of new electric pumps in 2023 had sustained an upward trend in field performance, with 2023 daily production already showing a 22% increase compared to 2022.

UK Oil & Gas holds a 10% interest in the Horndean field, and is continuing to benefit from improved production efficiency and higher resultant revenues.

The company said it would monitor the field's ongoing performance to assess the potential for further gains beyond current forecasts.

"We are delighted with the clear success of the workover programme and the materially increased production rates obtained," said chief executive officer Stephen Sanderson.

"Horndean's production rate, decline and revenues continue to exceed expectations, further underscoring its value to our portfolio."

At 1430 GMT, shares in UK Oil & Gas were down 2.63% at 0.02p.

Reporting by Josh White for Sharecast.com.