LONDON (ShareCast) - Oil explorers Solo Oil, Alba Mineral Resources and Stellar Resources have struck oil at a site in southern England.
The companies said their Horse Hill-1 drilling well encountered Portland Sandstone over the weekend, with oil shows at between 2,100 and 2,400 feet of measured depth.

The sandstone drill cuttings indicated the presence of oil within a porous and permeable rock matrix, the company said in a statement.

Drilling is now proceeding towards the remaining primary and secondary targets.

The Horse Hill-1 well is on the northern side of the UK Weald Basin, near Gatwick Airport.

The well is aiming to test for Triassic aged formations which are expected to contain gas.

Solo Oil owns a 10% interest in special purpose company HHDL, which in turn has a 65% interest in the Horse Hill-1 well. Alba holds 5% of HHDL and Stellar has 10%.

Solo's executive director Neil Ritson said: ""Drilling has shown the presence of the anticipated Portland Sandstone reservoir and the presence of oil shows is an encouraging development.

"We will gain considerably more information from electric logs that will be run at the end of the current section of the well, and in the meantime we have further primary oil targets to drill."

Shares in Stellar Resources lifted 5.6% to 0.95p, Solo gained 5.4% to 0.96p but Alba dropped 6.5% to 1.08p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE