Uk Oil & Gas Share Discussion Threads

[moneymunch] 19/7/2016 07:17

Lol funky, that's because the upgrade only relates to the Portland you numptie. The the upgrade on the Kimmeridge Interval is going to be breathtaking given the stunning free flow that was witnessed. Gla holders.....Mpet's 35% could be pivotal to proceedings......more for Ukog or maybe a Major waiting in the wings. ;-)

[funkmasterp12] 19/7/2016 07:08

There it is then. No upgrade to the Kimmeridge. Let's see if this produces the "sudden and significant" re-rating as the rampers have promised. My bet is it won't.

[moneymunch] 19/7/2016 07:03

UK Oil & Gas Inv PLC

Upgrade to Portland Oil in Place, Weald Basin
RNS Number : 5309E

19 July 2016


UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Upgrade to Portland Oil in Place, Horse Hill-1 Discovery, Weald Basin



UK Oil & Gas Investments PLC (LSE AIM/ISDX: UKOG) announces that a new petrophysical analysis by Nutech, incorporating the findings of the successful Horse Hill-1 ("HH-1") flow test, demonstrates a threefold increase in calculated total oil in place (OIP) per square mile at the HH-1 well within the Upper Portland pay zone. As reported in May 2015 a total Horse Hill Portland P50 OIP of 21 million barrels ("MMbbl") was calculated utilising Nutech's petrophysical analyses. Nutech's May 2015 evaluation assigned a Portland OIP value of 7.7 MMbbl per square mile at the HH-1 well. Nutech's current evaluation upgrades the Portland OIP at HH-1 to 22.9 MMbbl per square mile, a 200% increase

As previously announced the final HH-1 Portland test flowed at a constrained stable dry oil rate of 323 barrels of oil per day ("bopd"). The Portland was produced at maximum pump capacity and showed no clear indication of depletion. It is likely that the rate can be further increased using a higher capacity downhole pump during the next planned test.

As previously stated by the Company, the calculated OIP per square mile should not be construed as recoverable resources, contingent or prospective resources or reserves.

HH-1 Discovery Well Location and Company Interest

The HH-1 well is located within onshore exploration Licence PEDL137, on the northern side of the Weald Basin near Gatwick Airport. PEDL246 lies adjacent to and immediately to the east of PEDL137 ("the Licences"). UKOG owns a 27.3% interest in the Licences, which are operated by Horse Hill Developments Ltd.

Background

Nutech's Report ("Report") details that the production of dry oil from the Portland, with little or no observed water production, required a rethink of the pre-flow test petrophysical model. Prior to the flow test, interpretations suggested that water would likely be produced along with oil, as is seen in Portland reservoirs in nearby producing oil fields. The revised model fully incorporates well test observations and measurements.



From a similar review of the petrophysical response within the Kimmeridge Limestones, the Report concludes that the well test results reinforce Nutech's and the Company's expectations regarding the significant volumes of OIP seen at the HH-1 well. As previously reported in April and June 2015, the overall Kimmeridge and Jurassic shale and limestone sequence is calculated to contain an OIP of 158 MMbbl per square mile at the HH-1 well and P50 9,245 MMbbl over the 55 square miles of the Licences.



Horse Hill Future Plans

The revised petrophysical model will be used to update Xodus' 2015 estimates of the total OIP contained within the mapped Horse Hill Portland oil accumulation. This will include an estimate of Contingent Resources net to the Company and will be reported in due course.

The Operator has also informed the Company that the flow test data analysis undertaken by Nutech and Xodus provides the necessary technical encouragement to engage Barton Wilmore Ltd, one of the UK's leading planning and environmental assessment practitioners, to prepare and submit a planning application to Surrey County Council ("SCC"), and to assist with obtaining necessary permissions from the Environment Agency ("EA"), for a significant appraisal programme at Horse Hill.

The applications will seek permission to conduct a programme consisting of the production flow testing of 3 Kimmeridge Limestone zones plus the overlying Portland over a total flow period of up to 360 days, plus two further appraisal/development wells and the acquisition of 3D seismic data.

A public consultation and engagement process related to the planning application is scheduled to take place, leading to an application to SCC and the EA.

Engineering studies to examine the range of possible flow rates from a planned horizontal sidetrack well are ongoing. Data to further calibrate these studies will be acquired during the further planned extended flow tests.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"The record breaking flow test results and revised Nutech analysis gives us key new technical insight into the oil bearing Portland reservoir. More importantly than the simple increase in Portland oil in the ground, these learnings have significant positive implications for potential recovery factors and for future commercial viability. The economic potential of the Portland looks increasingly positive.



The validation of Nutech's Kimmeridge evaluation by the flow tests also underscore the Company's expectation that significant volumes of oil lie in the ground within the licence and can be brought to the surface at commercial rates.



We will work closely with Barton Willmore and others to ensure the necessary applications for regulatory consents are submitted. The granting of these permissions is the next key step to enable us to move the Horse Hill Portland and Kimmeridge projects forwards towards early monetisation.



We look forward to the conclusion of the regulatory consent cycle and eagerly await the start of planned long term flow testing."

[theuniversal] 18/7/2016 18:47

Moneymunch like i said before the 11th hour syndrome. I recon not a sneak peak but 15% of HH and the other two licences... give it two more weeks then boom... mpet up $1.3 someone knows ;-)

[beebong1] 18/7/2016 18:14

an asystolic and herpetic day

[moneymunch] 18/7/2016 16:09

ps the expected Nutech/Xodus report is unlikely to be released until we know what Mpet intend to do with their 35% interest at HH, Ukog certainly wouldn't want to add extra value to Mpet's interest by releasing a stellar reserves upgrade before any business is concluded if they're in the frame to take some more, and of course further delay could be caused if a Major was in the process of due diligence for acquiring the full 35% and maybe 231 and 243, if not Ukog, and could be number crunching Nutech's figures before showing their hand.....potential big news imminent. Gla ;-)

[moneymunch] 18/7/2016 15:46

The 90 day production flow tests are now planned to start early 2017 including the 4th zone ( the third limestone ), although 90 days isn't the length of each flowtest, but are issued for 90 days incase of any operational delays. Chances are the results from the drilling of the Kimmeridge limestones at Brockham could arrive first, 2016 according to DOR's Rns , which will be viewed as an appraisal well for HH and could be a game changer if they free flow as they did at HH......Gla 2017 could be a transformational year for Ukog. ;-)

Horse Hill next steps

UKOG will accelerate the appraisal and development plans to include testing a third deeper Kimmeridge Limestone, longer-term production tests, a Kimmeridge horizontal appraisal well and 3D seismic acquisition and analysis.

Similarly, we plan a longer flow test of the Portland Sandstone reservoir, to be followed, in the success case, by a new Portland appraisal well. All necessary permissions are currently being sought with a plan to re-start operations at the HH-1 site in early 2017.

-- The final Portland test of 323 bopd, over an 8.5-hour, period is the highest stable dry oil flow rate from any onshore UK Portland well. On further testing, with a larger pump, the rate doubled from the previously reported stable dry oil rate of 168 bopd. The Portland was produced at maximum pump capacity and showed no clear indication of depletion. It is likely that the rate can be further increased using a higher capacity downhole pump during the next planned test.

-- Proof that the Kimmeridge limestones contain significant volumes of moveable light oil that can be flowed to surface at commercial rates

-- As previously reported, the stable, natural dry-oil flow rate of 464 bopd from the Lower Kimmeridge Limestone is the first ever flow from this rock unit in the Weald Basin and onshore UK

-- Based on the analysis of published reports from all significant UK onshore discovery wells, the Company concludes that the 901 bopd from the Upper Kimmeridge zone is likely the highest stable natural dry oil flow rate from a single reservoir in any UK onshore new field wildcat discovery well

-- High quality Brent Crude produced: light, sweet oil (40 degrees API in Kimmeridge, 35-37 degrees API in Portland) 1,940 barrels delivered to the Esso Fawley refinery

-- Preliminary analysis confirms that the Lower and Upper Kimmeridge Limestone units are naturally fractured reservoirs with high deliverability

-- Strong possibility for further optimisation and increased flow rates from all 3 zones in future development and production wells, particularly through the use of horizontal wells

OUTLOOK

Over the next twelve-month period the Directors expect to see a number of positive developments for the Company.

-- In conjunction with HHDL, UKOG plan to return to the HH-1 well to conduct long-term well testing, and to drill two appraisal wells; this will establish the most likely expected recoverable volume of oil from the discovery.

-- Preparations are now underway to submit the necessary documentation to acquire the regulatory permissions to proceed towards further appraisal of the Kimmeridge and Portland zones.




-- KOGL is planning to drill the Broadford Bridge-1 exploration well in PEDL234, and progress regulatory approvals for a Godley Bridge exploration/appraisal well in the north of the licence.

-- Europa is planning to drill the Holmwood-1 exploration well (UKOG 30%)

-- UKOG is well advanced in the preparation of a Field Development Plan for the Markwells Wood oil discovery (UKOG 100% and Operator). Planning permission will also be sought from the South Downs National Park Authority, plus necessary consents from the Environment Agency.

-- UKOG will finalise the onshore Isle of Wight licence (PEDL331, UKOG 65%) with OGA, following the 14th Round award.

-- UKOG will continue with regulatory steps necessary to drill an appraisal well on the Arreton Main oil discovery in PEDL331 (UKOG 65%) and an exploration well on the M Prospect in P1916 offshore Isle of Wight (UKOG 77.5% and Operator).

-- UKOG is considering drilling an appraisal well on the Baxters Copse discovery (IGas 50% Operator, UKOG 50%).

-- New production wells are being planned on two of Angus Energy's producing licences (Lidsey and Brockham).

-- UKOG plans to continue to expand its licence position in the UK onshore, particularly in its core Weald Basin Kimmeridge oil play, with additional exploration, development and production investments.

Your Board of Directors will continue to seek out further attractive investments in line with the UKOG's investment strategy.


OGA may authorise extended periods of test production (extended well tests EWT) from exploration or appraisal wells prior to the approval of a Field Development Plan if it can be demonstrated the licensee will thereby gain technical understanding or confidence in the performance of the field needed to progress towards a development.

The EWT should have realistic and definable appraisal objectives essential to the success of a development, and not be prejudicial to ultimate recovery. A plan of operations and explanation of why the intended completion and testing techniques are appropriate to test each stratigraphic level is required. There are no strict criteria governing the maximum volume to be produced or the duration of an EWT, but they are usually issued for 90 days to allow for operational delays.

[rayrac] 18/7/2016 15:05

Why? Seems it could be the lions den!

[beebong1] 18/7/2016 14:04

Thursday 21 July 2016
Public exhibition by Horse Hill Developments Ltd, the holding company that operates the Horse Hill exploration well, near Gatwick. 12 noon-7.30pm, Charlwood Parish Hall, 92 The Street, Charlwood, Surrey, RH6 0DU.

It will be interesting to see if those that say they live close by attend.

[beebong1] 18/7/2016 13:29

You can say goodbye to "3x 90 day production tests (2016)". My understanding is that it will be 4 layers and unless they get a move on they won't even complete one 90 day production test this year, two is now impossible.

[moneymunch] 18/7/2016 08:28

KIMMERIDGE LIMESTONE OIL PRODUCTION

Can be produced with low visual impact
-
12-24 wells in 4-6 acre site
-
Wells and pumps below ground level
-
Control production to reduce initial road tanker impact
-
Can be located in brown field sites and away from villages, houses, small roads

KIMMERIDGE LIMESTONE OIL PLAN TO 2018

The journey has just begun
-
Consolidate and increase licences holding in Weald Basin - control the Kimmeridge Oil play
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Bring Horse Hill/Gatwick Gusher to production
-
3x 90 day production tests (2016)
-
3D seismic (2017)
-
Horizontal production wells (2017)
-
Show HH-1 resources can be repeated to south and west in the Basin sweet-spots

Holmwood-1 well (2016/17

2 others identified wells (2017/18)

[moneymunch] 18/7/2016 08:21

History and development of the Wytch Farm oil project

The Wytch Farm oil field was discovered and initially operated by the nationalised British Gas Corporation. The first phase of the field development, completed in 1980, involved four well sites targeting the Bridport reservoir.

BP, after taking over as operator of the field in 1984 following the privatisation of British Gas, upgraded the existing well sites and constructed five new well sites as part of the second phase development initiated in 1987.

The field started producing from both Bridport and Sherwood reservoirs with the completion of the second phase. The reserve base of the oil field was also raised from 30 million barrels to 378 million barrels.
Lindsey Oil Refinery, United Kingdom

The third phase of development initiated in 1993 involved extended reach drilling from the mainland under Poole Bay and the construction of a new well site on the Goathorn Peninsula.

The oil production from Wytch Farm peaked at 110,000 barrels per day in 1997 compared to 6,000 barrels per day in 1984. The oil production, however, gradually declined since then to 50,000 barrels per day in 2002 and to 16,000 barrels per day in 2011.

BP, in 2011, sold its 67.8% interest in the Wytch Farm to Perenco which further sold 17.7% to Premier. The new operator started infill drilling at the site in the first quarter of 2012.

[moneymunch] 18/7/2016 08:19

Infrastructure at the Wytch Farm oil field

More than 100 wells (including producers and water injectors) were being operated from 13 well sites at the Wytch Farm oilfield as of June 2012. The oil field also uses a sea water-pumping station.

The fluid output from the well sites is sent via infield pipelines to the gathering station located at Wytch Heath where crude oil and liquid petroleum gases (LPGs) are separated. Oil from two other Perenco-operated smaller oil fields namely Wareham and Kimmeridge is also transported to the Wytch Farm gathering station for processing.

Oil from the gathering station is sent via a 91km long and 16-inch diameter pipeline via the Fawley refinery to the Hamble oil terminal. Natural Gas (methane) produced at Wytch Farm is piped to Sopley located north of Christchurch. The LPG produced from the gathering station is exported by road tankers.

[moneymunch] 18/7/2016 08:17

Wytch Farm in Dorset is in the heart of an Area of Outstanding Natural Beauty. But you would be forgiven for not knowing the largest oilfield in western Europe is even there.

Nestled in a pine forest near a nature reserve and on islands off Poole Harbour, the oilfield owned by French company Perenco has been quietly producing thousands of barrels a day since the late 1970s, by means of a form of fracking called 'water injection', also known as 'water flooding'.

At one point the oilfield had the longest horizontal drill in the world and has regularly pumped water into wells to “fracture” the rock and force out oil and gas.

Academics say that this so-called “fracking” has been used on 200 wells across the UK over the last 20 years or so.

In contrast, the local community around Wytch Farm appear relaxed about the "discreet" operations happening in the heart of their community.

Tony and Kate Bryan, both retired, from Corfe Castle, the village two miles north of the oilfield, have been on one of the visits to Furzey Island to see the oil refinery in action.

Mr Bryan said occasionally you see a drilling rig poking above the trees or a “nodding donkey” on the coast but most people do not know it is there.

“We have never had any seismic impact that we are aware of and you have to get your oil from somewhere.

“It is all very well saying not in my backyard but it has been very well done.”

Most of the tourists eating ice creams and wandering around the National Trust castle were unaware that “fracking” is going on around the corner.

It certainly does not seem to have affected property prices. In Poole, which looks out on the main offshore activities of Perenco, properties go for millions. Purbeck Property, the local estate agents, said the proximity of an oilfield has not had an adverse effect – yet.

Dean Watts of Purbeck Angling is Chairman of the Carp Angling Protection Society, but he said no fishermen have yet complained about leaks into the groundwater.

He said there are footpaths, bridleways and even fishing ponds close to the main operations in Wytch Farm but it is still quite peaceful “you occasionally hear a whining noise but other than that you wouldn’t know it was there”, he added.

“It is a necessary evil. As long as it not going to affect wildlife or anyone in an adverse way then I say live and let live.”

[moneymunch] 18/7/2016 08:03

Lol and don't forget the peak production of 110,000bopd which is the main reason it's mentioned......HH and the Weald potentially will be much bigger given the extent of the Kimmeridge limestones of the Weald Oil Basin in relation to the size of Wytch Farm's oil reservoir.....gla holders.....if the oil is recoverable in volume, then this new Govt. will make its production and development a top priority. ;-)

[beebong1] 18/7/2016 07:58

I would hardly class Wytch Farm as "low visual impact" as the rig and cranes can clearly be seen for miles above the tree line. 12 wells in last two years is pretty visual.

edit. Link to picture removed as it messes up browser view. It's on google maps.

In fact you wouldn't be talking about Wytch Farm IMO if;
1) it hadn't been developed by a major
2) didn't have a pipeline to get the oil to the Hamble terminal (62 mile road trip)
3) a minnow had tried to develop it

[moneymunch] 17/7/2016 23:08

Lol Ray, if Welwitschia-1 duster news had been c1,700bopd instead, we would have a made hundreds of 1000's of £'s regardless of how much oil was ultimately recoverable, and with Ukog we need to know how much is recoverable/bankable before true value is realised, and in the near term will be further validated by the Nutech/Xodus report and confirmed by the 90 day production flowtests at HH and appraised by drill results from the Kimmeridge Limestones at Brockham, and if/when confirmed that Ukog's problem is how to shift so much oil, then the share price will have muti-bagged from this bargain low by then....regardless.

There are dozens of well sites/oil fields in Southern England already, small scale production mainly from the Portland Sandstone, but the largest onshore producing oil reserve in Western Europe is in the South of England....Wytch Farm, 110,100bopd peak production and still producing c18,000bopd after 30 years, located in the pristine area and natural beauty of Poole Harbour, out of sight where the majority of the public and even locals are oblivious to its existence.

Wytch Farm will be used as the benchmark for Ukog's low visual impact development plans for the Weald.......... and so if the multi-billion barrel assessment is confirmed and is recoverable in volume then this new UK Govt. will do everything in their power to extract it imho, they've already indicated that they're keen to push ahead the fracking of the Northern shale gas, and so conventional extraction of the Southern shale oil will be approved......and if indeed there are billions of barrels recoverable across the region, then undoubtedly a Major will get invovled and backed to the hilt by UK Plc......gl...excting times head. ;-)

[rayrac] 17/7/2016 16:52

No way are the powers that be in the south of England, going to let an under-capitalised aim listed smidgeon of a company, ride rough shod over their back yard, drilling holes in their turf, without one hell of a rumpass. It's the movement by tanker or pipeline of any oil that's the big problem, ie, getting it from a to b across the surface of their land, not just the drilling of holes in their land!

UKOG need a a big brother holding their hand and that ain't likely without one of them taking an interest in the mpet 35%!

Might as well face the obvious?💔

I think I stand a better chance at TRP.🙏ㇿ7; I'll get my 🎩

[rayrac] 17/7/2016 13:07

....big news coming with any luck...

Not so sure now mm? Seems there's a general lack of cash around these guys. Not just mpet!

[moneymunch] 17/7/2016 12:30

Can't be too much longer before we find out TU, it could have backed fired if Mpet were holding out for a higher price given the drop in sterling against the dollar, and although it appears they have a free carry up to and including the 90 day production flowtests, can Mpet wait that long given their cash problems???

Unless a major player came in for the full 35%, it would make perfect sense for Mpet to hold on to some for future potential returns and for Ukog to take on another 10% or so, as they probably couldn't afford the full 35% at this stage, and there's still the question of Pedl231 ans 243 that were reliquished by Mpet/Celtiquie, both licenses have ended but presumably someone else must be interested in them given their location to the Weald Basin sweet spot.

Hopefully we should find out soon enough on Mpet's plans, and when we know how much of the Weald Ukog own's the Nutech/Xodus report should follow.....big news coming with any luck, and significant upside likely, especially if a Major is in the frame for the full 35% along with the possibilty of picking up the vacant Pedl 231 and 243 at the same time......all will be revealed!!! Gl ;-)

[theuniversal] 16/7/2016 15:36

MM i whole heartedly agree the suspense is killing me...

[moneymunch] 16/7/2016 13:00

ps i would have thought Mpet would have made or will be making a statement soon on last weeks special shareholders meeting, which may include news on their intentions to monitise their 35% interest at HH, or not..

[moneymunch] 16/7/2016 12:51

If that's the case let's hope he hasn't gone to Turkey, the court appearance was trivial in the scheme of things, and no point antagonising the crusties for the sake of it by having the head of Ukog giving evidence against them. The focus of the anti-fracking brigade will no doubt turn to the Northern shale prospects when they get underway, rather than the conventional extraction at HH etc. Gl ;-)

[beebong1] 16/7/2016 10:18

It's a load of rubbish. I had a house in Rowlands Castle for about 5 years when my so was growing up in Portsmouth in a house that backed onto the Golf Club many moons ago.
Hardly any of what the SDNPA have said is worth the paper it is written on IMO.
They have drilled at Markwells once with no problems that I am aware of. If you look at google street view and go back a few years you will see the rig from the road to the south though.

PS SS has obviously gone on holiday so not expecting any news soon IMO. Why else would you miss a court appearance.