LONDON (ShareCast) - Stellar Resources has commenced civil works for the drilling of the Horse Hill-1 well on the prospect going by the same name, with completion expected by August 2014.

The 2,646 metre (8,680 feet) well is targeting a number of conventional stacked oil targets at the proven Portland sandstone, Corallian sandstone and Great Oolite limestone levels in Exploration and Development Licence 137 (PEDL 137).

The license is located in the Weald Basin in Surrey with the Horse Hill Wood Prospect lying about 3km from Gatwick Airport, in the southwets of the licence.

Esso drilled in the area in the 1960's and found good oil shows at various Jurassic levels. However, recent seismic re-interpretation suggests that the company´s Collendean Farm-1 well was drilled 'off structure'.

The estimated prospective recoverable oil resources at Horse Hill total a mean 87m barrels.

According to the company´s Chairman, David Lenigas, the outfit is particularly excited about the potential to locate significant conventional gas deeper down the Horse Hill-1 well, into the Triassic period formations.

The estimated prospective recoverable resources of natural gas are estimated at a mean value of 164bcf.

Prospective resources represent those quantities which have been calculated, at a given date, to be potentially recoverable from undiscovered accumulations.

As of 16:03 shares of the firm were unchanged at the 0.48p level, giving it a market capitalisation of 3.5m pounds.

AB

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