Trillions of pounds worth of oil – as much as the entire North Sea fields – lies beneath an area of England dubbed ‘Britain’s Dallas’, it was claimed yesterday.

Analysis suggests there is up to 100billion barrels of the fossil fuel under the Home Counties.

The potential goldmine in the Weald Basin, across Surrey, Sussex, Hampshire and Kent, could meet up to a third of Britain’s oil demand within 15 years, according to the consortium exploring the area.

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UK Oil & Gas Investments say they have discovered 100billion barrels worth of oil reserves in the Weald Basin, near Gatwick airport (pictured, the well head at Horse Hill)

A map showing the location of the oil and gas deposits within the Weald Basin, which are thought to lie at between 2,500ft and 3,000ft below the ground

This could reduce reliance on oil from the Middle East and Russia and could be a major boost for British industry at a time when the North Sea supply is dwindling.

But industry experts remained sceptical of the claims, with one describing them as ‘overly optimistic’.

Since 1975, of an estimated 100billion barrels of oil in the UK North Sea, only 45billion have been pumped out. It is believed another 20billion barrels can be recovered before extraction becomes too difficult.

Experts warned last night that only a fraction of the Weald Basin oil may be accessible for extraction. They also claimed fracking could be required to retrieve significant volumes.

Stephen Sanderson, the chief executive of UKOG, said the site at Horse Hill was 'world class' and had the potential for 'significant daily oil production' at this proposed drilling site

Horse Hill Developments consortium made the discovery during test drilling in a well five miles from Gatwick Airport.

UK Oil & Gas Investments, which has a 30 per cent stake, said ‘cutting-edge’ data suggested the oilfield holds 158million barrels per square mile – equating to 100billion barrels across the basin.

At current crude prices, this could be worth £3.7trillion. Stephen Sanderson of UKOG, which insisted it would not use fracking, said: ‘By 2030, we could produce 10 per cent to 30 per cent of the UK’s oil demand from within the Weald area.’

Neil Ritson, of fellow consortium firm Solo Oil, said it was of ‘major economic significance’. If flow tests showed oil could be extracted, the production process could begin within 18 months, he added.

US firm Nutech, which conducted the tests, estimated 3 per cent to 15 per cent of the oilfield could be extracted – up to 15billion barrels.

UKOG chairman David Lenigas said drilling in the Weald could create ‘many thousands’ of jobs. Although the exploration site covered 55 square miles out of 1,100, he said the consortium was confident the entire region was oil-rich.

Works: The well is situated in this container on the proposed drilling site

Exploration: Experts are now trying to work out how much of the oil will be properly recoverable

Mr Lenigas dismissed suggestions it would be hard to extract from the site, saying the ground was limestone which acted ‘like a big sponge’ and that ‘you can effectively suck the oil out’.

The Australian entrepreneur, who lives in Monaco, is a director of 16 British companies – and has been criticised in the past for exaggerating the success of his enterprises to jack up share prices. UKOG shares soared after the firm claimed to have discovered a ‘world-class potential resource’.

However, Professor Alastair Fraser, of Imperial College London, said the claims were ‘overly optimistic’.

A study by the university suggested a maximum of 40billion barrels in the region, while the British Geological Survey estimated the basin held just 4.4billion barrels of shale oil.

Discovery: The Horse Hill site near Gatwick in Sussex, where a large amount of oil has apparently been found

Drilling: Exploratory wells have found that the ground contains 158million barrels per square mile

Development: The site is owned by a number of companies including UK Oil & Gas Investments

The professor added: ‘The question will be how much of it we can actually get out and whether it is commercially and technologically viable to do so.’

Malcolm Graham-Wood, of oil consultants HydroCarbon Capital, suggested residents might object to rows of onshore oil wells, adding: ‘The question is can it produce oil? It is extremely difficult with a very low recovery rate. This is potentially interesting but I wouldn’t attribute any value yet.’

But Mr Lenigas said: ‘To all those people who say I am hiking up the share price, I am not. I am just saying what the Nutech report says … I feel passionate that this is globally significant for Britain.’

A Department of Energy & Climate Change spokesman said: ‘The Government welcomes any new information which expands our understanding of the potential of the Weald Basin.’

THE RESIDENTS WHO WON'T SEE A PENNY OF OIL PROFITS There might be 100billion barrels of oil beneath the Home Counties – but residents living above it may not receive a penny of the profits. The Government owns the land under your house – meaning homeowners have no right to any oil found beneath them. Once oil has been found, oil companies pay the Government for an annual licence which gives them the right to excavate the oil and keep the profits. The Government also gains money from the tax it receives on the oil extracted. The only way an oil company would pay the surface landowner is if it wanted to base its drilling site on their land. However, firms that undertake fracking, which is seen as a more intrusive and controversial method of extracting oil than simply drilling, must sometimes agree to provide ‘community benefits’. This could include building a playground or school nearby the fracking site, and is seen as compensation for residents. Oil companies need to consult communities if they plan to undertake fracking in their area, as well as gaining planning permission from the local council. Advertisement

Oil rush: The Weald Basin, of which Horse Hill is part, could contain a total of 100billion barrels

Mystery: It is not yet known how much of the area's oil will be easily recoverable