TIDMUKOG
RNS Number : 7383B
UK Oil & Gas PLC
11 June 2019
UK Oil & Gas PLC
("UKOG" or the "Company")
Horse Hill-1 Test Hits Landmark 50,000 Barrels of Oil
Production
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce
that, as at close of business on Friday 7(th) June, total aggregate
Portland and Kimmeridge test oil production from the Horse Hill oil
field, in which the Company has a 50.635% majority interest,
reached a significant landmark of 50,000 barrels ("bbl") of light,
sweet, dry oil. Total aggregate test production now stands at
50,871 bbl.
Horse Hill-1 continues to produce Portland oil at a stable rate
of over 220 barrels of oil per day ("bopd") via a modest pressure
draw down. The Portland has now delivered an aggregate total of
25,777 bbl to date, exceeding the 25,094 bbl produced from the
deeper Kimmeridge. During the test, no formation water has been
produced from either the Portland or Kimmeridge reservoirs.
Portland test production is now planned to continue until the
second half of June when final site preparations for simultaneous
HH-2/2z Portland drilling and HH-1 Kimmeridge production operations
will commence. To facilitate both safe drilling and coring of
HH-2/2z through the Portland, to provide continued oil sales
revenues and further valuable test data prior to drilling HH-1z,
preparations will include switching test production to the deeper
Kimmeridge oil pool. Further necessary logistic and administrative
arrangements for the arrival of the drilling rig and associated
services are scheduled to be finalised this week.
The Horse Hill oil field and surrounding highly prospective
PEDL137 and PEDL246 licences are operated by UKOG's subsidiary
company Horse Hill Developments Ltd, in which UKOG holds a 77.9%
direct interest.
Horse Hill 2018-19 EWT Oil Production Milestones:
-- 50,871 bbl aggregate Kimmeridge and Portland oil production
-- 25,777 bbl total Portland production
-- 25,094 bbl total Kimmeridge oil production
-- No discernible formation water produced from either reservoir
-- Stable Portland test production continues to prove more oil in the ground
Stephen Sanderson, UKOG's Chief Executive, commented:
"The Horse Hill Portland continues to produce strongly and
consistently under modest pressure draw downs, delivering over half
of the landmark 50,871 bbl test production to date. With the much
awaited simultaneous HH-2/2z Portland horizontal drilling and HH-1
Kimmeridge test campaign fast approaching, the remainder of the
year at Horse Hill now promises to be truly exciting and
potentially transformational for both Horse Hill and UKOG."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has over 35
years of relevant experience in the global oil 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 / Kiran Morzaria Tel: 01483 900582
WH Ireland (Nominated Adviser and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Cenkos Securities PLC (Joint Broker)
Joe Nally / Neil McDonald Tel: 0207 397 8919
Novum Securities (Joint Broker)
John Bellis Tel: 020 7399 9400
Public Relations
Brian Alexander / David Bick Tel: 01483 900582
Glossary
draw down pressure drawdown ( P) is defined as the difference
between the reservoir pressure and the flowing
bottom hole pressure. Drawdown enables fluids to
flow from the reservoir into the wellbore. The
magnitude of the drawdown is a major controlling
factors of a well's production rate
extended well a well test, as per the permission granted by the
test or production Oil and Gas Authority, with an aggregate flow period
test duration over each zone of greater than 96 hours;
the objective being to establish whether a discovery
is commercially viable and the optimal methods
of future production and recovery
-------------------------------------------------------
flow test a flow test or well test involves testing a well
by flowing hydrocarbons to surface, typically through
a test separator; key measured parameters are oil
and gas flow rates, downhole pressure and surface
pressure. The overall objective is to identify
the well's capacity to produce hydrocarbons at
a commercial flow rate
-------------------------------------------------------
oil field an accumulation, pool or group of pools of oil
in the subsurface that produces oil to surface
-------------------------------------------------------
UKOG Licence Interests
The Company has interests in the following UK licences:
Asset Licence UKOG Licence Operator Area Status
Interest Holder (km(2)
)
Field currently
Avington UKOG (GB) IGas Energy temporarily shut
(1) PEDL070 5% Limited Plc 18.3 in
----------------- ---------- -------------- -------------- -------- ----------------------
BB-1 & 1z oil
Broadford UKOG (234) UKOG (234) discovery, planning
Bridge (3) PEDL234 100% Ltd (4) Ltd (4) 300.0 application approved
----------------- ---------- -------------- -------------- -------- ----------------------
Finalising new
site selection
to drill Portland
and Kimmeridge
A24 (3) PEDL143 40% UKOG UKOG (7) 91.8 prospects
----------------- ---------- -------------- -------------- -------- ----------------------
Horndean UKOG (GB) IGas Energy Field in stable
(1) PL211 10% Limited Plc 27.3 production
----------------- ---------- -------------- -------------- -------- ----------------------
Production tests
ongoing, two
Horse Hill Horse Hill further appraisal
Horse Hill Developments Developments wells scheduled
(5) PEDL137 50.635% Ltd Ltd 99.3 for 2019
----------------- ---------- -------------- -------------- -------- ----------------------
Horse Hill Horse Hill
Horse Hill Developments Developments
(5) PEDL246 50.635% Ltd Ltd 43.6 As above
----------------- ---------- -------------- -------------- -------- ----------------------
Preparing planning
submission for
Arreton-3 oil
Isle of appraisal well
Wight (Onshore) and Arreton South
(2, 3) PEDL331 95% UKOG UKOG 200.0 exploration well
----------------- ---------- -------------- -------------- -------- ----------------------
Markwells UKOG (GB) UKOG (GB)
Wood PEDL126 100% Limited Limited 11.2 MW-1 P&A
----------------- ---------- -------------- -------------- -------- ----------------------
Notes:
1. Oil field currently in stable production.
2. Oil discovery pending development and/or appraisal
drilling.
3. Exploration asset with drillable prospects and leads.
4. Contains the Broadford Bridge-1 /1z Kimmeridge oil discovery,
the eastern extension of the Godley Bridge Portland gas discovery
plus further undrilled Kimmeridge exploration prospects.
5. Oil field with three productive and commercially viable
zones, EWT ongoing, further drilling campaign scheduled,
development underway subject to grant of planning consent expected
in Q3 2019.
6. UKOG has a direct 77.9% interest in HHDL, which has a 65%
interest in PEDL137 and PEDL246.
7. OGA consent received for the transfer of operatorship from
Europa to UKOG
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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