OGA Approval of PEDL143 Farm-In ...

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RNS Number : 0706G

UK Oil & Gas Investments PLC

18 November 2015

 



18 November 2015                                         

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

 

OGA Approval of PEDL143 Farm-In, Holmwood Prospect, Weald Basin, UK

 

UK Oil & Gas Investments PLC (London AIM and ISDX:UKOG) announces that it has received final regulatory consent from the Oil and Gas Authority ("OGA") to acquire a 20% interest in UK onshore Weald Basin licence PEDL143, via the previously announced farm-in with Egdon Resources U.K. Limited ("Egdon").

PEDL143 covers 35.5 square miles and is located to the immediate west of Horse Hill licence PEDL137, in which UKOG has a 20.163% interest, and to the immediate south of the Brockham oil field, licence PL235, in which UKOG has an interest via its 6% ownership of Angus Energy Limited.

PEDL143 contains the Holmwood conventional prospect, which the PEDL143 partnership plans to test with the Holmwood-1 ("H-1") exploration well. Full planning consent was granted for the well in September 2015. The well is intended to be drilled to a total depth of approximately 4,600 ft (1,400 metres) true vertical depth, to penetrate the Upper and Lower Portland Sandstone reservoir targets, the full Kimmeridge tight oil section and the underlying Middle Jurassic Corallian Sandstone reservoir objective.

As previously reported, a Competent Persons Report ("CPR") by ERC Equipoise Limited ("ERCE") shows the H-1 exploration well will target mean gross prospective resources of 5.6 million barrels for the combined Portland and Corallian objectives.

The H-1 well will also provide a key new penetration into the Kimmeridge tight oil play fairway, adjacent to UKOG's Horse Hill licences. The H-1 well will represent only the third modern well to penetrate and sample the Kimmeridge tight oil section alongside Horse Hill-1 and Balcombe-2. Therefore, the well will provide an insightful modern data point in the overall tight oil proof of concept process in the Weald Basin.

The recently reported Nutech Wider Weald oil in place study indicates the Kimmeridge section to be favourably developed and with significant oil in place underlying the proposed H-1 well location and PEDL143. Nutech identified further significant tight oil potential in the Oxford Clay and Lias Formation sections underlying PEDL143.

The partnership anticipates that H-1 drilling will take place in late 2016 or early 2017.

Stephen Sanderson, UKOG's Executive Chairman commented:

"As a result of OGA's consent for the PEDL143 farm-In, UKOG has now materially increased the prospective resources and recoverable oil potential of its core Weald portfolio. The conventional Holmwood prospect alone adds an additional net 1.1 million mean unrisked barrels of prospective resources to UKOG.

 

The additional potential contained within the Kimmeridge tight oil section, to be tested by the H-1 well, provides the company with both a stronger overall position in the tight oil play fairway and a further opportunity to validate the regional extent and commerciality of the play.

 

Given UKOG's position in the Kimmeridge limestone play, together with its knowledgeable position in the Portland gained from Brockham and Horse Hill-1, we plan to be an active partner, particularly in assisting well design and data acquisition within the H-1 well.

 

We look forward to a fruitful relationship with the partnership and future success in the H-1 well."

 

Qualified Person's Statement:

 

Stephen Sanderson, UKOG's Executive Chairman, who has over 30 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 / Jason Berry                                                                              Tel: [phone]

 

WH Ireland (Nominated Adviser and Broker)

James Joyce / Mark Leonard                                                                                       Tel: [phone]

 

Square 1 Consulting (Public Relations)

David Bick / Brian Alexander                                                                                      Tel: [phone]

 

GLOSSARY

 

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
mean	or expected value, is the probability-weighted average of all possible values and is a measure of the central tendency either of a probability distribution or of the random variable characterised by that distribution
oil in place	the quantity of oil or petroleum that is estimated to exist originally in naturally occurring accumulations before any extraction or production
play	a set of known or postulated oil and or gas accumulations sharing similar geologic, geographic, and temporal properties, such as source rock, migration pathways, timing, trapping mechanism, and hydrocarbon type
Probability of Success (POS)	also known as chance of success (COS), being the probability that an exploration well will encounter flowable hydrocarbons from a prospect with a described volumetric probability distribution. The POS or COS represents the combined probability of the presence of key elements of a petroleum accumulation such as; the presence of mature source rock, effective hydrocarbon migration and charge, the presence of an effective reservoir and seal couplet and the presence and definition of a hydrocarbon trapping mechanism or trap
prospect	a project associated with a potential accumulation that is sufficiently well defined to represent a viable drilling target
prospective resources	those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects; potential accumulations are evaluated according to their chance of discovery and, assuming a discovery, the estimated quantities that would be recoverable under defined development projects. It is recognised that the development programs will be of significantly less detail and depend more heavily on analogue developments in the earlier phases of exploration
reservoir	a subsurface rock formation containing an individual natural accumulation of moveable petroleum that is confined by impermeable rock/formations
sandstone	a clastic sedimentary rock whose grains are predominantly sand-sized. The term is commonly used to imply consolidated sand or a rock made of predominantly quartz sand
tight oil	oil found or expected to be present within a reservoir with low permeability, i.e. a tight reservoir. The term, in the case of the Weald Tight Oil Plays, is applied to a play where trapped petroleum accumulations are expected to be pervasive throughout a large area and that are not significantly affected by hydrodynamic influences (also called "continuous-type deposits")
unrisked	without multiplying by the Probability of Success factor.

 

Notes to Editors:

The Company has interests in the following UK licences:

Asset

Licence

UKOG's Interest

Licence Holder

Operator

Area (km2)

Status

Avington 1

PEDL070

5%

UKOG (GB) Limited

IGas Energy Plc

18.3

Field in stable production.

Baxters Copse 2

PEDL233

50%

UKOG Weald Limited

IGas Energy Plc

89.6

Reviewing economics of appraisal/ development well.

Brockham 1

PL234

3.6%

Angus Energy 5

Angus Energy 5

8.9

Drilling of sidetrack well being considered.

Holmwood 3

PEDL143

20%

UKOG

Europa Oil & Gas (Holdings) plc

91.8

H-1 exploration well planned.

Horndean 1

PL211

10%

UKOG (GB) Limited

IGas Energy Plc

27.3

Field in stable production.

Horse Hill 4

PEDL137

20.163%

Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6

99.3

Flow testing of HH-1 planned, awaiting regulatory approvals.

Horse Hill 4

PEDL246

20.163%

Horse Hill Developments Ltd 6

Horse Hill Developments Ltd 6

43.6

Flow testing of HH-1 planned, awaiting regulatory approvals.

Isle of Wight (Offshore) 3

P1916

77.5%

UKOG Solent Limited

UKOG Solent Limited

46.7

Awaiting 14th Round, UKOG adjacent onshore acreage.

Isle of Wight (Onshore) 3

14th Round

TBA

TBA

TBA

200.0

Subject to 14th Round awards.

Lidsey 1

PL241

4.2%

Angus Energy 5

Angus Energy 5

5.3

Drilling of infill well being considered.

Markwells Wood 2

PEDL126

100%

UKOG (GB) Limited

UKOG (GB) Limited

11.2

Compiling Field Development Plan.

Notes:

1. Oil field currently in production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads.

4. Oil discovery pending flow testing.

5. UKOG has a 6% interest in Angus Energy. Angus Energy has a 70% interest in Lidsey and a 60% interest in Brockham.

6. UKOG has a direct 30% interest in HHDL, plus an indirect 1.02% interest via Angus Energy. HHDL has a 65% interest in PEDL137 and PEDL246.

 

This information is provided by RNS

The company news service from the London Stock Exchange

 

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