Share Name Share Symbol Market Type Share ISIN Share Description
UK Oil & Gas LSE:UKOG London Ordinary Share GB00B9MRZS43 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +1.325p +22.27% 7.275p 7.25p 7.30p 7.65p 6.10p 6.10p 549,081,364 16:29:24
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Technology Hardware & Equipment 0.2 -2.0 -0.1 - 253.18

UK Oil & Gas Investments PLC Drilling Update - Broadford Bridge-1

10/07/2017 2:45pm

UK Regulatory (RNS & others)

UK Oil & Gas (LSE:UKOG)
Historical Stock Chart

1 Month : From Jun 2017 to Jul 2017

Click Here for more UK Oil & Gas Charts.


RNS Number : 6216K

UK Oil & Gas Investments PLC

10 July 2017

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Drilling Reveals Significant 1,490 ft Thick Kimmeridge Continuous Oil Deposit at Broadford Bridge-1 Exploration Well, PEDL234 Licence, Weald Basin, UK


-- Drilling programme reveals a Continuous Oil Deposit, with gross possible Kimmeridge oil bearing zone of at least 1,490 ft measured depth ("MD"), equating to 1,100 ft vertical depth, has been encountered at BB-1; spans entire naturally fractured Kimmeridge Limestone (KL1-KL4) and shale section from 4,018-5,508 ft MD

-- 200 ft thick KL1 fractured oil reservoir sequence drilled from 4,945-5,155 ft MD; mobile oil recovered from drilling mud, oil shows in drill-cuttings, good wet gas readings; significant lost circulation zones ("LCZs") within KL1 indicates connected and laterally extensive natural-fracture system

-- Drilling and coring successfully completed at Total Depth of 5,850 ft MD; Schlumberger electric logging and fracture imaging underway, flow testing to commence following setting of 7-inch steel casing and well completion

UK Oil & Gas Investments PLC (London AIM and NEX: UKOG) is pleased to announce that it has successfully completed the drilling and coring programme through the entire Kimmeridge Limestone (KL1 to KL4) target section at its 100% owned Broadford Bridge-1 ("BB-1") exploration well located in licence PEDL234.

In the Company's opinion, the evidence of mobile light oil in core, drill-cuttings, and drilling fluid, plus wet gas readings throughout the entire naturally fractured Kimmeridge KL1-KL4 limestone and shale target section, from 4,018-5,508 ft MD, is supportive that a significant 1,490 ft thick continuous oil deposit has been demonstrated at BB-1.

This continuous oil deposit therefore likely underlies the entire PEDL234 licence and a significant area of the wider Weald Basin, including the Horse Hill-1 Kimmeridge oil discovery some 27 km to the north east. The Company has the largest licence holding in the Weald Basin and within the prospective area of the Kimmeridge play.

A comprehensive electric logging and fracture-imaging programme is now underway and the Company will provide an update in due course.

A comprehensive extended flow testing programme will commence directly following the setting of 7-inch steel casing and well completion. This programme is designed to establish if oil can flow at commercial rates and in commercial quantities from BB-1.

Stephen Sanderson, UKOG's Executive Chairman commented:

"In the Company's view, these highly positive and ground-breaking drilling results support our concept that a continuous oil deposit, some 1100 feet vertical thickness, underlies the BB-1 well location and the wider Weald Basin. UKOG as the largest licence holder in the prospective area of the Kimmeridge oil deposit is ideally positioned to take full advantage of this position.

Given our 100% ownership of BB-1 and the 300 km(2) size of the PEDL234 licence, this licence now looks set to supplant Horse Hill as the Company's flagship asset.

The major technical learning from BB-1 to date is that the Kimmeridge oil deposit now spans both fractured limestones and shales over almost the entire Kimmeridge section and that natural fracturing is more pervasive than expected. This bodes very well for the forthcoming flow test programme, which will commence following electric logging and well completion.

The forthcoming extensive flow testing phase will now hopefully move us even further from proof of geological concept towards demonstrating that BB-1 itself is commercially viable."

About BB-1

BB-1 is located near Billingshurst, West Sussex, within the 300 km(2) PEDL234 licence, in which the Company has a 100% interest via its ownership of the licence's operator, Kimmeridge Oil & Gas Limited ("KOGL"). The well, an exploration step-out, is designed to penetrate four naturally fractured Kimmeridge Limestone units (KL1-KL4), the uppermost two units of which flowed at record rates in the HH-1 discovery near Gatwick Airport.

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 / 020 7929 5599


 casing             heavy gauge steel tubing designed 
                     to line the wall of a well. The 
                     casing provides a safe controlled 
                     space in which the drill pipe and 
                     bit can operate in isolation from 
                     conditions in overlying rock units. 
                     The steel tubing is bonded to the 
                     surrounding rock by impermeable 
                     concrete, known as "cement" 
-----------------  ------------------------------------------------ 
 core or coring     a drilling technique that involves 
                     using a doughnut-shaped drilling 
                     bit to capture or "cut" a continuous 
                     cylinder-shaped core of undamaged 
                     in-situ rock. The core is captured 
                     in a steel pipe or "core barrel" 
                     above the bit. Core is normally 
                     cut in 30 feet lengths, or multiples 
                     of 30 feet, and normally with a 
                     diameter of 3.5 or 4 inches. Core 
                     is taken in petroleum reservoir 
                     rocks for detailed laboratory analyses 
                     of petrophysical and geomechanical 
-----------------  ------------------------------------------------ 
 continuous         a petroleum accumulation that is 
  oil deposit        pervasive throughout a large area, 
  or resource        which is not significantly affected 
  deposit            by hydrodynamic influences (i.e. 
                     the buoyancy of oil in water) and 
                     is not trapped by structural or 
                     stratigraphic geological conditions. 
                     The deposit, in contrast to conventional 
                     accumulations, has therefore not 
                     accumulated by the migration of 
                     petroleum over medium to long distances. 
                     The petroleum in such deposits 
                     is found within, or immediately 
                     adjacent or close to, the pore 
                     spaces where the petroleum is generated, 
                     i.e. those pore spaces lying within 
                     petroleum source rocks containing 
                     organic rich compounds (kerogen) 
                     that, when heated over geological 
                     time, transform into petroleum. 
                     These accumulations are generally 
                     associated with organic-rich shales 
                     such as the Kimmeridge Clay Formation. 
                     Such accumulations do not generally 
                     contain significant volumes of 
                     free, mobile formation water and 
                     therefore have no observable hydrocarbon-water 
                     contacts. The extent of the accumulation 
                     is generally defined by the limit 
                     of where burial depths have been 
                     sufficient to transform organic 
                     matter within the petroleum source 
                     rock unit into petroleum. 
-----------------  ------------------------------------------------ 
 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 
-----------------  ------------------------------------------------ 
 electric logs      Tools which measure the electrical 
                     properties of the rock and fluids 
                     in and surrounding the wellbore 
                     to determine the petrophysical 
                     and geological properties of the 
                     rock in its in-situ state. The 
                     logging equipment is lowered into 
                     the borehole on a steel cable through 
                     which a wire conveys data to be 
                     recorded at surface. The logging 
                     at BB-1 also includes tools which 
                     record 3-dimensional images and 
                     ultrasound scans of the rock designed 
                     to map and characterise natural 
-----------------  ------------------------------------------------ 
 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 
-----------------  ------------------------------------------------ 
 lost circulation   a zone of highly porous and permeable 
  zone (LCZ)         rock or voids directly intersecting 
                     the wellbore into which drilling 
                     fluid can escape. Commonly LCZs 
                     occur in extensive open fracture 
                     networks, voids or vugs within 
                     limestones and highly porous and 
                     permeable sandstones 
-----------------  ------------------------------------------------ 
 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 
-----------------  ------------------------------------------------ 
 shale              a fissile rock that is formed by 
                     the consolidation of clay, mud, 
                     or silt particles, and that has 
                     a finely stratified or laminated 
                     structure. Certain shales, such 
                     as those of the Kimmeridge Clay, 
                     often contain a significant proportion 
                     of organic material, which when 
                     subject to increasing temperature 
                     and pressure over geological time 
                     transform into petroleum (known 
                     as petroleum "source rocks") 
-----------------  ------------------------------------------------ 
 step-out well      a well specifically designed to 
                     determine the lateral extent of 
                     a discovered hydrocarbon accumulation 
                     or play 
-----------------  ------------------------------------------------ 
 wet gas            natural gas, predominantly consisting 
                     of methane (C1), ethane (C2) and 
                     propane (C3) but also containing 
                     the longer molecular chain natural 
                     gases butane and iso-butane (C4), 
                     pentane and iso-pentane (C5). The 
                     C4 and C5 gases are created during 
                     oil-generation within a petroleum 
                     source rock unit when oil is thermally 
                     cracked. At Horse Hill these natural 
                     gases lie in solution within the 
                     oil in the KL3 and KL4 Kimmeridge 
                     Limestone reservoirs (i.e. solution 
                     or associated gas and not as a 
                     separate free-gas phase). 
-----------------  ------------------------------------------------ 

UKOG Licence Interests

The Company has interests in the following ten UK licences:

Asset              Licence        UKOG's       Licence Holder      Operator      Area (km(2) )          Status 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 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 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                               Kimmeridge Oil   Kimmeridge Oil 
Broadford Bridge                               & Gas Limited    & Gas Limited                        BB-1 drilling 
 (3)               PEDL234         100%             (4)              (4)             300.0             underway 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Holmwood (3)       PEDL143         30%              UKOG         Europa Oil &        91.8             Holmwood-1 
                                                                Gas (Holdings)                     exploration well 
                                                                     plc                            planned in 2017 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Horndean (1)        PL211          10%            Limited            Plc             27.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Horse Hill (5)     PEDL137        31.2%          Horse Hill       Horse Hill         99.3         Submitted planning 
                                                Developments     Developments                    application for long 
                                                    Ltd              Ltd                         term production tests 
                                                                                                  and drilling of two 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 Horse Hill       Horse Hill 
                                                Developments     Developments 
Horse Hill (5)     PEDL246        31.2%             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 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 


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 forthcoming Broadford Bridge-1 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 48% 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) Dow Jones Newswires

July 10, 2017 09:45 ET (13:45 GMT)

1 Year UK Oil & Gas Chart

1 Year UK Oil & Gas Chart

1 Month UK Oil & Gas Chart

1 Month UK Oil & Gas Chart
Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:30 V:gb D:20170726 00:55:04