UK Oil & Gas
PLC
("UKOG" or the
"Company")
Pinarova-1 Testing Operations
Update
UK Oil & Gas plc (London AIM:
UKOG) announces that, following successful reperforating and
extensive swab testing at Pinarova-1 by operator Aladdin Middle
East, we have mutually concluded that, in the absence of commercial
rates of hydrocarbons, no further testing will take
place.
Given the prior recovery of mobile
light 42° API oil from the mud pit (RNS of
22nd September 2023), oil shows, strong oil odours at surface
over a 12-hour drilling period and the associated shot-hole oil
seep with geochemically identical oil, we are disappointed that
Pinarova-1 has not met our joint expectations.
However, we believe that the
drilling and testing results indicate Pinarova likely penetrated
the southernmost feather edge of a small oil accumulation within
the Germik/Hoya sequence, stretching updip towards Kezer-1.
Preliminary analysis of all data indicates that the source of these
shallow light oils is most likely from spill or seepage from an
underlying deeper light oil pool in the Kezer-Pinarova area. We
will continue to investigate the commercial potential of both these
future targets.
The testing operations involved
successfully detonating 7-inch perforating guns at 12 shots per
foot over a 40 ft section of Germik/Hoya sequence, a comprehensive
injectivity and swab testing programme, followed by an acidisation
operation and further swab testing.
Results confirmed full communication
with the reservoir via the new 7-inch perforations, justifying the
Company's interpretation that the original 4.5-inch guns did not
fully access the Hoya/Germik reservoir. Costs for the operations
were kept to a minimum throughout.
The larger guns, supplied by PSI,
were used following normal site rig up and necessary safety and
environmental checks. UKOG's own site representative was on hand to
monitor quality control and safe operations.
UKOG holds a 50% non-operated
interest in Pinarova-1 and the surrounding 305 km² Resan
licence.
Chief Executive Stephen Sanderson commented:
"Exploration drilling and testing is
never guaranteed to deliver success, even if all prior indicators
are positive. This is certainly the case for Pinarova-1, and we are
disappointed by the lack of commercial flow. We will continue to
analyse all data and explore both the potential updip shallow
Germik/Hoya accumulation and the likely more significant deeper
pool objective, the most probable source of the observed shallow
hydrocarbons and shot-hole oil seep. With operator Aladdin's cooperation,
costs were fortunately kept to a minimum and it adds to our bank of
data about the Resan licence for the future."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial
Director, who has 40 years of relevant experience in the global
petroleum industry, has approved the information contained in this
announcement. Mr Cartwright is a Chartered Engineer and member of
the Society of Petroleum Engineers.
For
further information, please contact:
UK
Oil & Gas plc
Stephen Sanderson / Allen D
Howard
Tel:
01483 941493
WH
Ireland Ltd (Nominated Adviser and
Broker)
James Joyce / James Bavister /
Andrew de Andrade
Tel: 020 7220
1666
Communications
Brian Alexander
Tel: 01483
941493
Glossary
|
°API
|
a measure of the density of crude
oil, as defined by the American Petroleum Institute
|
|
oil
seep
|
a natural flow of crude oil at or
close to the earth's surface whose origin is from a petroleum
accumulation or oil source rock at depth.
|
|
shot-hole
|
a shallow borehole in which a small
amount of explosive is detonated in order to generate a seismic
signal
|
The
information contained within this announcement is deemed to
constitute inside information as stipulated under the retained EU
law version of the Market Abuse Regulation (EU) No. 596/2014 (the
"UK MAR") which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. The information is disclosed in accordance
with the Company's obligations under Article 17 of the UK MAR. Upon
the publication of this announcement, this inside information is
now considered to be in the public domain.