UK Oil & Gas Investments PLC Planning Application Update (9740D)

TIDMUKOG

RNS Number : 9740D

UK Oil & Gas Investments PLC

03 May 2017

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Markwells Wood Planning Application Update

UKOG (AIM & NEX: UKOG) announces that, in order to progress the acquisition of new site-specific hydrogeological data over and around the Markwells Wood drilling pad, the Company has temporarily withdrawn its planning application to the South Downs National Park Authority ("SDNPA"). The application is now planned for resubmission later in 2017 after the completion of the planned data acquisition and upon the conclusions of ongoing technical conversations with the Environment Agency ("EA").

In order to address the EA's last-minute submission of 4 April requesting that new site-specific data be acquired over the site to confirm the validity of the submitted Groundwater Risk Assessment, UKOG requested that SDNPA delay the determination of the Markwells Wood project from their planning committee meeting of 11 May to the 13 July 2017. This period would have enabled necessary acquisition and dialogue to be completed. Disappointingly, this request was refused by SDNP. Data acquisition has commenced, and is expected to be completed before the summer.

The Company now also intends to take this opportunity to apply for a full EA permit covering the first phase of the proposed development, with a view to including this as part of the resubmission of the planning documents.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"Given the potential sensitivity of the Markwells Wood site to the adjacent chalk groundwater system, it is in the public interest that this subject be investigated as thoroughly as possible prior to any further site activity. Whilst the refusal of SDNPA to accommodate this important step is somewhat unsatisfactory, we look forward to concluding this matter with the EA and resubmitting the application as soon as practicable. Our target of drilling Markwells Wood by Q2 2019 is unlikely to be affected."

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 
----------  ---------------------------------------- 
 

UKOG Licence Interests

The Company has interests in the following 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 well permitted, 
(3)                                            & Gas Limited    & Gas Limited                     drilling planned in 
                                                    (4)              (4)                                 2017 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                Angus Energy     Angus Energy                      Well intervention 
Brockham            PL235         0.72%             (6)              (6)              8.9          programme ongoing 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
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 (7)          Ltd (7)                       term production tests 
                                                                                                  and drilling of two 
                                                                                                         wells 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 Horse Hill       Horse Hill 
                                                Developments     Developments 
Horse Hill (5)     PEDL246        31.2%           Ltd (7)          Ltd (7)           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 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Lidsey              PL241         0.56%         Angus Energy     Angus Energy         5.3         Drilling of infill 
                                                    (6)              (6)                         well being considered 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
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 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 1.11% interest in Angus Energy, which has a 50% interest in Lidsey and a 65% interest in Brockham; Angus hold an option to increase their Lidsey interest by a further 10% to 60%.

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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May 03, 2017 02:00 ET (06:00 GMT)