Although UKOG has denied that there will be fracking at the Horse Hill site, the notion that the UK Government supports this is good for the oil industry in UK. This is because convention recovery of the estimated potential oil in place for Horse Hill's 8.7 billion barrels is circa 3% - 15% but with fracking it could be a high 30% - 40%.
This bodes well for UKOG, and we can only await the flow test which will be carried in the later half of the year.There are a lot of possibilities. To name a few:
1) A buyout by Big Oil of UKOG's asset(s)
2) A potential farm in with a partner
3) UKOG to go at it alone to develop and produce though this will likely require further dilution as the amount of capital investment is high.
My belief, 1) or 2) could happen. My disclosure: I am long UKOG.
You can read the report here:
http://www.lse.co.uk/AllNews.asp?code=kvglbm0h&headline=UK_Conservative_Government_Vows_To_Support_Shale_Gas_Fracking
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