UK Oil & Gas Investments PLC Update - Isle of Wight (3975D)

TIDMUKOG

RNS Number : 3975D

UK Oil & Gas Investments PLC

31 January 2018

UK Oil & Gas Investments PLC

("UKOG" or the "Company")

Isle of Wight Update

UK Oil & Gas Investments PLC (London AIM: UKOG) announces that to focus upon appraising the onshore PEDL331 Arreton oil discovery and satellite exploration prospects, it has informed the Oil and Gas Authority that it will not seek any further extension to the offshore P1916 Licence. Consequently, the P1916 Licence, in which the Company held a 100% interest, has now lapsed. In the Company's view the offshore Licence's low geological prospectivity, high environmental sensitivity and consequential high associated drilling costs merited no further commitment of UKOG's financial or technical resources. No remaining P1916 Licence obligations remain.

As previously reported in January 2016, Xodus' independent report allocated a gross mean aggregated oil in place of 227 million barrels ("MMbbl") to the onshore Arreton oil discovery and associated Arreton South and North satellite prospects. Recoverable gross 2C Contingent Resources were calculated as 15.7 MMbbl, with 10.2 MMbbl net to UKOG. The Company holds a 65% interest in PEDL331.

Arreton site selection and regulatory permitting activities are now underway to permit a planned appraisal drilling campaign in the first half of 2019.

Stephen Sanderson, UKOG's Executive Chairman, commented:

"The Arreton discovery on the Isle of Wight's remains a key element of the company's 2018 and 2019 growth strategy and plans. We look forward to working with our partners towards a successful 2019 appraisal drilling campaign."

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 Sinclair-Ford                                          Tel: [phone] 

Cenkos Securities PLC (Joint Broker)

Joe Nally / Leif Powis Tel: [phone]

Public Relations

Brian Alexander / David Bick Tel: [phone]

Glossary

 
                        denotes the mid or best estimate scenario of Contingent 
   2C                    Resources 
---------------------  ---------------------------------------------------------- 
 Contingent Resources   Contingent Resources are those quantities of petroleum 
                         estimated, as of a given date, to be potentially 
                         recoverable from known accumulations, but the 
                         applied project(s) are not yet considered mature 
                         enough for commercial development due to one or 
                         more contingencies. Contingent Resources are further 
                         categorised in accordance with the level of certainty 
                         associated with the estimates and may be sub-classified 
                         based on project maturity and/or characterised 
                         by their economic status. 
---------------------  ---------------------------------------------------------- 
 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 
---------------------  ---------------------------------------------------------- 
 oil in place           the quantity of oil or petroleum that is estimated 
  (OIP)                  to exist originally in naturally occurring accumulations 
                         before any extraction or production 
---------------------  ---------------------------------------------------------- 
 

UKOG Licence Interests

The Company has interests in the following nine 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 of 
                                                    (4)              (4)                            multiple zones 
                                                                                                       underway 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Holmwood (3)       PEDL143         40%              UKOG         Europa Oil &        91.8             Holmwood-1 
                                                                Gas (Holdings)                     exploration well 
                                                                     plc                            planned in 2018 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 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        Planning Permission & 
                                                Developments     Developments                    EA permit granted for 
                                                    Ltd              Ltd                         production tests and 
                                                                                                       two wells 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
                                                 Horse Hill       Horse Hill 
                                                Developments     Developments 
Horse Hill (5)     PEDL246       32.435%            Ltd              Ltd             43.6              As above 
----------------  ---------  ---------------  ---------------  ---------------  --------------  ---------------------- 
Isle of Wight 
 (Onshore) (2,                                                                                    Preparing Arreton-3 
 3)                PEDL331         65%              UKOG             UKOG            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 Broadford Bridge-1 and 1z discovery well and the extension of the Godley Bridge Portland gas discovery.

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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCFKKDPOBKDPDN

(END) Dow Jones Newswires

January 31, 2018 02:00 ET (07:00 GMT)