UK Oil & Gas Investments PLC Appraisal & Development Planning Submission (3239K)

TIDMUKOG

RNS Number : 3239K

UK Oil & Gas Investments PLC

20 September 2016

20 September 2016

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Appraisal & Development Planning Submission - Markwells Wood Oil Discovery, UK Weald Basin

UK Oil & Gas Investments PLC (LSE AIM/ISDX: UKOG) announces that a planning application has been submitted to the South Downs National Park Authority for the appraisal and development of the company's conventional Markwells Wood-1 ("MW-1") oil discovery, located near Rowlands Castle in West Sussex. UKOG owns a 100% interest in the Markwells Wood licence (PEDL126). The MW-1 oil discovery, which was successfully tested in 2012, lies adjacent to the producing Horndean oil field, a geological look-alike accumulation in which the company has a 10% interest.

Subject to the required regulatory approvals, the first phase of the envisaged Markwells Wood development would consist of the drilling and extended production testing of a new horizontal sidetrack appraisal well from the existing MW-1 borehole. Contingent upon the sidetrack's commercial performance, a second phase of up to three further horizontal production wells and a water injection well would be undertaken.

In order to minimise impact to the locality, feedback from a public consultation and engagement process, undertaken in July, was incorporated into the envisaged development design and planning application. The normal local planning authority cycle takes approximately 16 weeks.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"This is an important milestone towards monetising the Markwells Wood oil discovery. We look forward to further engaging with stakeholders and to a successful planning outcome."

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 / Jason Berry Tel: [phone]

WH Ireland (Nominated Adviser and Broker)

James Joyce / James Bavister Tel: [phone]

Square 1 Consulting (Public Relations)

David Bick / Brian Alexander Tel: [phone]

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 
----------  ------------------------------------------ 
 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. 
----------  ------------------------------------------ 
 

Notes to Editors:

UKOG Licence Interests

The Company has interests in the following UK licences:

 
Asset          Licence     UKOG's          Licence              Operator         Area              Status 
                           Interest         Holder                               (km(2) 
                                                                                   ) 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
Avington                                  UKOG (GB)           IGas Energy                      Field in stable 
 (1)           PEDL070       5%             Limited                Plc           18.3            production. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                                                  Reviewing 
Baxters                                                                                           economics 
 Copse                                    UKOG Weald          IGas Energy                  of appraisal/development 
 (2)           PEDL233       50%            Limited                Plc           89.6               well. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                          Kimmeridge           Kimmeridge                         BB-1 well 
Broadford                                    Oil &                Oil &                           permitted, 
 Bridge                                   Gas Limited          Gas Limited                      expected 2017 
 (3)           PEDL234      100%              (4)                  (4)           300.0            spud date. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                                                 Drilling of 
                                            Angus                Angus                            sidetrack 
Brockham                                    Energy               Energy                           well being 
 (1)            PL235       3.6%              (6)                  (6)            8.9            considered. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                                                 Europa 
                                                                  Oil &                          Holmwood-1 
Holmwood                                                     Gas (Holdings)                      exploration 
 (3)           PEDL143       30%             UKOG                  plc           91.8           well planned. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
Horndean                                  UKOG (GB)           IGas Energy                      Field in stable 
 (1)            PL211        10%            Limited                Plc           27.3            production. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
Horse                                       Horse                Horse                          Extended flow 
 Hill                                  Hill Developments    Hill Developments                     testing of 
 (5)           PEDL137      31.2%           Ltd (7)              Ltd (7)         99.3               HH-1. 
                                                                               --------  -------------------------- 
Horse                                       Horse                Horse                          Extended flow 
 Hill                                  Hill Developments    Hill Developments                     testing of 
 (5)           PEDL246      31.2%           Ltd (7)              Ltd (7)         43.6               HH-1. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
Isle 
 of Wight                                                                                         Preparing 
 (Offshore)                              UKOG Solent          UKOG Solent                     drilling planning 
 (3)            P1916       100%            Limited              Limited         46.7            submission. 
------------ 
Isle 
 of Wight                                                                                         Preparing 
 (Onshore)                                                                                    drilling planning 
 (2, 3)        PEDL331       65%             UKOG                 TBA            200.0           submission. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
                                            Angus                Angus                           Drilling of 
Lidsey                                      Energy               Energy                          infill well 
 (1)            PL241       4.2%              (6)                  (6)            5.3         being considered. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
Markwells 
 Wood                                     UKOG (GB)            UKOG (GB)                          Submitted 
 (2)           PEDL126      100%            Limited              Limited         11.2       planning application. 
------------  ---------  ----------  -------------------  -------------------  --------  -------------------------- 
 

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. 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 6% interest in Angus Energy, which has a 70% interest in Lidsey and a 60% interest in Brockham.

7. UKOG has a direct 48% interest in HHDL, which 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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September 20, 2016 05:58 ET (09:58 GMT)