TIDMUKOG
RNS Number : 9916T
UK Oil & Gas Investments PLC
18 October 2017
UK Oil & Gas Investments PLC
("UKOG" or the "Company")
Planning Permission Granted for Further Flow Testing and
Drilling
Horse Hill Oil Discovery, Weald Basin, UK
UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) is
pleased to announce that it has been informed by Horse Hill
Developments Ltd ("HHDL"), the operator of Horse Hill licences
PEDL137 and PEDL246, containing the Horse Hill-1 ("HH-1") oil
discovery, that on 18 October 2017 Surrey County Council's Planning
and Regulatory Committee granted planning permission to enable HHDL
to carry out extended flow tests at HH-1, plus drill and test both
a sidetrack from the existing HH-1 well and new borehole HH-2. The
committee voted overwhelmingly in favour of HHDL's planning
application.
Along with the Environment Agency's approval of all necessary
permits, HHDL can now proceed with its Horse Hill appraisal
programme as soon as the similar extended flow testing programme
has been completed at our Broadford Bridge well site in West
Sussex.
HH-1 Oil Discovery (UKOG interest 32.435%)
The HH-1 Kimmeridge Limestone and Portland oil discovery well is
located within onshore exploration Licence PEDL137, on the northern
side of the Weald Basin, 3 km north of Gatwick Airport. As
previously reported in February and March 2016, two
naturally-fractured limestone members within the Kimmeridge
section, known as KL3 and KL4, flowed dry, 40-degree API oil, at an
aggregate stabilised natural flow rate of 1,365 barrels per day
("bopd") with no clear indication of depletion.
The overlying Portland flowed dry, 35-degree API gravity oil at
a stable pumped rate of 323 bopd. The Portland oil was produced at
the rod-pump's maximum achievable rate and thus flow was
constrained by the pump's mechanical capacity.
Stephen Sanderson, UKOG's Executive Chairman, commented:
"This is welcome news for the planned Horse Hill Portland and
Kimmeridge appraisal programmes, both of which are key steps
towards our goal of delivering stable first oil production by early
2019. Horse Hill operations are scheduled to follow the current
Broadford Bridge-1z flow testing and will build upon and benefit
from the many learnings and insights gained to date. I look forward
to HHDL's return to Horse Hill."
Qualified Person's Statement
Stephen Sanderson, UKOG's Executive Chairman, who has over 35
years of relevant experience in the oil industry, has approved the
information contained in this announcement. Mr Sanderson is a
Fellow of the Geological Society of London and is an active member
of the American Association of Petroleum Geologists.
For further information, please contact:
UK Oil & Gas Investments PLC
Stephen Sanderson / Kiran Morzaria Tel: 01483 243450
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Bavister Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Nick Tulloch / Neil McDonald Tel: 0131 220 6939
Square 1 Consulting (Public Relations)
Brian Alexander / David Bick Tel: 01483 243450
Glossary:
discovery a discovery is a petroleum accumulation
for which one or several exploratory
wells have established through
testing, sampling and/or logging
the existence of a significant
quantity of potentially moveable
hydrocarbons
----------- ------------------------------------------
limestone a sedimentary rock predominantly
composed of calcite (a crystalline
mineral form of calcium carbonate)
of organic, chemical or detrital
origin. Minor amounts of dolomite,
chert and clay are common in limestones.
Chalk is a form of fine-grained
limestone
----------- ------------------------------------------
naturally a fractured reservoir contains
fractured open and usually connected cracks
reservoir or fissures within the rock matrix;
fractures can enhance permeability
of rocks greatly by connecting
pore-spaces together; naturally
fractured reservoirs have been
created over geological time by
nature, not man-made via hydraulic
fracturing
----------- ------------------------------------------
sidetrack re-entry of a well from the well's
surface location with drilling
equipment for the purpose of deviating
from the existing well bore to
achieve production or well data
from an alternative zone or bottom
hole location, or to remedy an
engineering problem encountered
in the existing well bore
----------- ------------------------------------------
UKOG Licence Interests
The Company has interests in the following ten UK licences:
Asset Licence UKOG's Licence Holder Operator Area (km(2) ) Status
Interest
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
UKOG (GB) IGas Energy Field in stable
Avington (1) PEDL070 5% Limited Plc 18.3 production
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Baxters Copse PEDL233 50% UKOG Weald IGas Energy 89.6 Appraisal/development
(2) Limited Plc well planned; licence
extended to 2018
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Broadford Bridge PEDL234 100% Kimmeridge Oil Kimmeridge Oil 300.0 BB-1&1z drilling
(3) & Gas Limited & Gas Limited completed, testing
(4) (4) underway
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Holmwood (3) PEDL143 30% UKOG Europa Oil & 91.8 Holmwood-1
Gas (Holdings) exploration well
plc planned in 2017/18
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
UKOG (GB) IGas Energy Field in stable
Horndean (1) PL211 10% Limited Plc 27.3 production
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Horse Hill (5) PEDL137 32.435% Horse Hill Horse Hill 99.3 Submitted planning
Developments Developments application for long
Ltd Ltd term production tests
and drilling of two
wells
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Horse Hill Horse Hill
Developments Developments
Horse Hill (5) PEDL246 32.435% Ltd Ltd 43.6 As above
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Isle of Wight UKOG Solent UKOG Solent Preparing drilling
(Offshore) (3) P1916 100% Limited Limited 46.7 planning submission
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Isle of Wight
(Onshore) (2, Preparing drilling
3) PEDL331 65% UKOG TBA 200.0 planning submission
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Markwells Wood PEDL126 100% UKOG (GB) UKOG (GB) 11.2 Submitted planning
(2) Limited Limited application for
appraisal and field
development
---------------- --------- --------------- --------------- --------------- -------------- ----------------------
Notes:
1. Oil field currently in production.
2. Oil discovery pending development and/or appraisal
drilling.
3. Exploration asset with drillable prospects and leads.
Contains the extension of the Godley Bridge Portland gas discovery
and the site of the Broadford Bridge-1 and 1z well.
4. UKOG has a 100% interest in Kimmeridge Oil & Gas Limited,
which has a 100% interest in PEDL234.
5. Oil discovery with recently completed flow testing.
6. UKOG has a direct 49.9% interest in HHDL, which has a 65%
interest in PEDL137 and PEDL246.
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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