Magellan Petroleum Corporation (NASDAQ:MPET) announced preliminary results of a flow test of the Horse Hill-1 well located in the Weald Basin, onshore UK, which is operated by Horse Hill Development Limited and in which Magellan has a 35% interest.

UK Oil & Gas Investments PLC, listed on the AIM of the London Stock Exchange, owns direct and indirect interests totaling approximately 20% in the Horse Hill-1 well. On February 16 and 17, 2016, UKOG announced that HHDL had informed them of the preliminary results of the flow test, indicating that light, 40-degree API, sweet oil has flowed naturally to the surface from the Lower Kimmeridge limestone interval at a rate of approximately 450 bopd.

The Horse Hill-1 well lies within the license area of PEDL 137. Pursuant to a farmout agreement executed in December 2013, HHDL is the operator of and owns a 65% interest in both the license and the well, and Magellan is carried 100% for its 35% share of the costs of this well, including drilling, testing, and completion costs.

J. Thomas Wilson, President and CEO of the Company, commented, “Even though the results of this flow test are not definitive and are just the beginning of measures to establish the commercial viability of this discovery, they are very encouraging as to the potential future production rate of the well. The Lower Kimmeridge limestone formation represents a new reservoir objective and this is the first time oil has been tested from this interval. The ability to receive free flowing oil from the Lower Kimmeridge formation provides significant additional evidence that oil is mature in the Kimmeridge formation onshore UK, which is a critical aspect of our interpretation of the Weald Basin and provides further support to the potential of the Weald Basin as a potentially significant prospect. The Kimmeridge formation is already known to be a major source rock of the North Sea. The next steps of the flow test consist of testing the Upper Kimmeridge and Portland formations.” (Original Source)

Shares of Magellan Petroleum closed yesterday at $1.12. MPET has a 1-year high of $6.88 and a 1-year low of $0.20. The stock’s 50-day moving average is $0.71 and its 200-day moving average is $0.89.

Magellan Petroleum Corp is an oil and gas exploration and production company. It is engaged in the development of CO2-enhanced oil recovery project in the Rocky Mountain region. It operates in USA, UK and Australia.