TIDMUKOG
RNS Number : 0900T
UK Oil & Gas PLC
23 March 2021
UK Oil & Gas PLC
("UKOG" or the "Company")
Turkey Basur-3 drilling site construction commences
UK Oil & Gas PLC (London AIM: UKOG) is delighted to announce
that construction of the Basur-3 appraisal well's drilling pad and
access road has now commenced. Construction works, located within
the Company's 50% owned 305 km(2) Resan licence, are scheduled to
last approximately 60 days.
The Basur-3 location lies approximately 1.2 km north and
geologically updip from the 1964 Basur-1 oil discovery well, which
as detailed in the Company's 14 October 2020 and 15 January 2021
releases, produced 500 barrels ("bbl") of oil from a short 6-hour
swab test, equivalent to an extrapolated daily rate of 2,000 bbl of
oil per day.
Basur-3, the first modern appraisal well designed to confirm the
extent and commerciality of the discovered Basur-Resan Mardin oil
pool, will test the north western structural culmination of the 45
km(2) Basur-Resan geological structure.
As per the Company's 15 January 2021 release, Basur-Resan's
Mardin oil pool is estimated to contain aggregate gross mean and
high case discovered recoverable resources (see glossary below) of
37.2 million barrels ("mmbbl") and 67 mmbbl respectively. UKOG's
corresponding 50% net share being 18.6 mmbbl (mean case) and 33.6
mmbbl (high case).
The board continues to view the forthcoming Basur-3 and
subsequent Resan-6 appraisal drilling programme to present a
compelling and potentially transformational growth opportunity for
the Company.
A Basur-3 presentation, including site photographs, is available
on the Company's website:
https://www.ukogplc.com
Stephen Sanderson UKOG's Chief Executive commented:
"The breaking of ground at the new Basur-3 drilling site makes
this material appraisal project very real and tangible. The speed
of entry into the operational phase, barely two months after
government ratification of our entry into Turkey and despite
pandemic constraints, nicely demonstrates the ability to move
projects forwards at pace in Turkey, a welcome change from the UK.
We salute our highly experienced partner Aladdin Middle East's
efforts in this respect and look forward to drilling and testing
once the site is completed."
Qualified Person's Statement
Matt Cartwright, UKOG's Commercial Director, who has 37 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 941493
WH Ireland Ltd (Nominated Adviser
and Broker)
James Joyce / James Sinclair-Ford Tel: 020 7220 1666
Communications
Brian Alexander Tel: 01483 941493
Glossary
discovered recoverable those quantities of discovered petroleum estimated,
volumes/resources as of a given date, to be recoverable from
( or contingent a known accumulation, but where the project
resources) is not yet considered proven for commercial
development due to one or more contingencies.
In the case of Basur-Resan the contingency
being confirmation that a well can recover
a commercial volume at commercially viable
rates, a normal appraisal stage uncertainty.
Discovered resources are further categorised
in accordance with the level of certainty associated
with the estimates and may be sub-classified
based on project maturity and/or characterised
by their economic status. Should the appraisal
programme confirm commerciality, it is expected
that resources would convert into reserves
(see reserves definition below)
discovery 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
------------------------------------------------------
gross 100% share
------------------------------------------------------
high case or P10 volume, where there is a 10% probability
respectively, that the stated volume will be
equalled or exceeded
------------------------------------------------------
mean the expected or average outcome of a defined
probability distribution, in this case the
calculated distribution of recoverable volumes
------------------------------------------------------
net UKOG's 50% Resan licence interest share
------------------------------------------------------
reserves those quantities of petroleum anticipated to
be commercially recoverable by application
of development projects to known accumulations
from a given date forward under defined conditions.
Reserves must further satisfy four criteria:
they must be discovered, recoverable, commercial,
and remaining (as of the evaluation date) based
on the development project(s) applied. Reserves
are further categorised in accordance with
the level of certainty associated with the
estimates (i.e., Proven, Probable and Possible)
and may be sub-classified based on project
maturity and/or characterised by development
and production status
------------------------------------------------------
UKOG Licence Interests
The Company has interests in the following UK and international
licences:
Asset Licence UKOG Licence Holder Operator Area Status
Interest (km
(2)
)
Horndean UKOG (GB) IGas Energy Field in stable
(1) PL211 10% Limited Plc 27.3 production
------------- ---------- --------------- --------------- ----- ---------------------
Horse Hill Horse Hill
Horse Developments Developments Field in stable
Hill (1)(,) PEDL137 85.635% Ltd Ltd 99.3 production
------------- ---------- --------------- --------------- ----- ---------------------
Horse Hill Horse Hill
Horse Developments Developments Field in stable
Hill (1)(,) PEDL246 85.635% Ltd Ltd 43.6 production
------------- ---------- --------------- --------------- ----- ---------------------
Avington UKOG (GB) IGas Energy Field temporarily
(1) PEDL070 5% Limited Plc 18.3 shut in
------------- ---------- --------------- --------------- ----- ---------------------
Appraisal
of Basur-Resan
oil discovery
Resan plus further
Turkey expl. prospects.
(2, 3, M-47-b1, UKOG Turkey Aladdin Middle Drilling planned
8) b2 50% Ltd East 305 in 2021
------------- ---------- --------------- --------------- ----- ---------------------
Loxley/Godley
Bridge gas
Loxley discovery,
(2, 3, UKOG (234) UKOG (234) BB-1/1z oil
7) PEDL234 100% Ltd (4) Ltd (4) 300 discovery
------------- ---------- --------------- --------------- ----- ---------------------
Planning application
submitted
Isle for Arreton
of Wight oil appraisal
(2, 3) PEDL331 95% UKOG UKOG 200 well
------------- ---------- --------------- --------------- ----- ---------------------
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 Loxley Portland gas accumulation, the Broadford
Bridge-1/1z Kimmeridge oil discovery, plus further undrilled
Kimmeridge exploration prospects.
5. Portland and Kimmeridge oil field with productive and
commercially viable zones, HH-1 in stable oil production,
production planning consent granted in September 2019, long-term
production consent granted in March 2020.
6. UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.
7. Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential
8. High-impact oil appraisal project with an upside OIP range of
150-500 mmbbl gross with expected recovery factors of 10-20% of
OIP
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014
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END
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