UK Oil & Gas Investments PLC Horse Hill - Planning Permission Granted (9916T)

TIDMUKOG

RNS Number : 9916T

UK Oil & Gas Investments PLC

18 October 2017

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Planning Permission Granted for Further Flow Testing and Drilling

Horse Hill Oil Discovery, Weald Basin, UK

UK Oil & Gas Investments PLC (London AIM and ISDX: UKOG) is pleased to announce that it has been informed by Horse Hill Developments Ltd ("HHDL"), the operator of Horse Hill licences PEDL137 and PEDL246, containing the Horse Hill-1 ("HH-1") oil discovery, that on 18 October 2017 Surrey County Council's Planning and Regulatory Committee granted planning permission to enable HHDL to carry out extended flow tests at HH-1, plus drill and test both a sidetrack from the existing HH-1 well and new borehole HH-2. The committee voted overwhelmingly in favour of HHDL's planning application.

Along with the Environment Agency's approval of all necessary permits, HHDL can now proceed with its Horse Hill appraisal programme as soon as the similar extended flow testing programme has been completed at our Broadford Bridge well site in West Sussex.

HH-1 Oil Discovery (UKOG interest 32.435%)

The HH-1 Kimmeridge Limestone and Portland oil discovery well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin, 3 km north of Gatwick Airport. As previously reported in February and March 2016, two naturally-fractured limestone members within the Kimmeridge section, known as KL3 and KL4, flowed dry, 40-degree API oil, at an aggregate stabilised natural flow rate of 1,365 barrels per day ("bopd") with no clear indication of depletion.

The overlying Portland flowed dry, 35-degree API gravity oil at a stable pumped rate of 323 bopd. The Portland oil was produced at the rod-pump's maximum achievable rate and thus flow was constrained by the pump's mechanical capacity.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"This is welcome news for the planned Horse Hill Portland and Kimmeridge appraisal programmes, both of which are key steps towards our goal of delivering stable first oil production by early 2019. Horse Hill operations are scheduled to follow the current Broadford Bridge-1z flow testing and will build upon and benefit from the many learnings and insights gained to date. I look forward to HHDL's return to Horse Hill."

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: [phone] 

WH Ireland (Nominated Adviser and Broker)

   James Joyce / James Bavister                                                   Tel: [phone] 

Cenkos Securities PLC (Joint Broker)

   Nick Tulloch / Neil McDonald                                                   Tel: [phone] 

Square 1 Consulting (Public Relations)

   Brian Alexander / David Bick                                                    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 
-----------  ------------------------------------------ 
 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 
-----------  ------------------------------------------ 
 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 
               fracturing 
-----------  ------------------------------------------ 
 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 
-----------  ------------------------------------------ 
 

UKOG Licence Interests

The Company has interests in the following ten UK licences:

 
Asset              Licence        UKOG's       Licence Holder      Operator      Area (km(2) )          Status 
                                 Interest 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 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 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Broadford Bridge   PEDL234         100%        Kimmeridge Oil   Kimmeridge Oil       300.0         BB-1&1z drilling 
(3)                                            & Gas Limited    & Gas Limited                     completed, testing 
                                                    (4)              (4)                               underway 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Holmwood (3)       PEDL143         30%              UKOG         Europa Oil &        91.8             Holmwood-1 
                                                                Gas (Holdings)                     exploration well 
                                                                     plc                          planned in 2017/18 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 UKOG (GB)       IGas Energy                        Field in stable 
Horndean (1)        PL211          10%            Limited            Plc             27.3             production 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Horse Hill (5)     PEDL137       32.435%         Horse Hill       Horse Hill         99.3         Submitted planning 
                                                Developments     Developments                    application for long 
                                                    Ltd              Ltd                         term production tests 
                                                                                                  and drilling of two 
                                                                                                         wells 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 Horse Hill       Horse Hill 
                                                Developments     Developments 
Horse Hill (5)     PEDL246       32.435%            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 
                                                                                                      development 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
 

Notes:

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 Broadford Bridge-1 and 1z 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 49.9% 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

MSCMPBITMBIBBTR

(END) Dow Jones Newswires

October 18, 2017 10:45 ET (14:45 GMT)