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Uk Oil & Gas Plc LSE:UKOG London Ordinary Share GB00B9MRZS43 ORD 0.01P
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  0.00 0.0% 0.95 0.90 1.00 0.95 0.95 0.95 15,470,578 07:42:52
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 0.2 -2.3 -0.1 - 66

UK Oil & Gas PLC Horse Hill Oil Field: HH-2z Horizontal Update

04/11/2019 7:00am

UK Regulatory (RNS & others)


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UK Oil & Gas PLC

04 November 2019

UK Oil & Gas PLC

("UKOG" or the "Company")

Horse Hill Oil Field: HH-2z Horizontal Update

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that its Horse Hill-2z ("HH-2z") Portland horizontal well (UKOG 85.635% net controlling interest) has, to date, successfully drilled 2,016 ft wholly within the Portland reservoir's most oil productive zone or "sweet spot", the presence and quality of which was defined by the HH-2 pilot well's successful coring and electric logging programmes.

Following the fitting of a new rig engine, expected to be completed over the coming days, the remaining 1,200 ft of the planned circa 3,200 ft horizontal section within the "sweet-spot" will be drilled. Horizontal drilling is expected to be completed by mid-November.

Drilling data indicates that sections of possible increased reservoir quality over that seen in HH-1 and HH-2 have been encountered within the sweet-spot. Furthermore, mud weights indicate that the horizontal may lie within a reservoir zone that is less pressure depleted by HH-1 oil production than expected. A comprehensive electric logging and extended well test ("EWT") programme will further clarify these potentially positive outcomes.

HH-2/2z, the first horizontal well in the field's Portland oil pool, is designed to be retained as a future production well, capable of delivering flow rates significantly higher than the previously reported 362 barrels of oil per day from the HH-1 vertical Portland discovery well.

HH-2z Operations

After cementing the 7-inch diameter casing down to 2373 ft, the well drilled ahead in 6-inch diameter hole, encountering the top Portland sandstone at a drilled depth below rig floor of 2389 ft, some 850 ft laterally southeast of the HH-2 surface location.

The well's 6-inch hole trajectory was increased from around 70deg to vertical at the 7-inch casing shoe to its current 88deg-90deg to vertical, approximately parallel to the geological dip of the Portland. Electric logging tools close to the drilling bit together with rock cuttings have enabled the trajectory to be kept within an overall 35 ft thick section containing the highest permeability reservoir zones.

After reaching its total drilled depth, HH-2z will then be completed with production tubing and a downhole electric pump or "ESP" prior to a clean-up programme and extensive EWT campaign.

UKOG holds a controlling 85.635% interest in the Horse Hill oil field and surrounding highly prospective PEDL137 and PEDL246 licences, which are operated by UKOG's subsidiary company, Horse Hill Developments Ltd.

Stephen Sanderson, UKOG's Chief Executive, commented:

"We have successfully delivered around two thirds of the planned horizontal section within the Portland reservoir's sweet-spot, a 35 ft zone containing the most productive, porous and permeable sandstones. Keeping within this zone is no mean feat and is a testament to the meticulous preparation and skill of our geologists and directional drillers. We remain on schedule to complete drilling the full trajectory around the middle of November, and will then immediately complete, clean-up and flow test the well."

Qualified Person's Statement

Matt Cartwright, UKOG's Commercial Director, who has over 36 years of relevant experience in the global oil industry, has approved the information contained in this announcement. Mr Cartwright is a Chartered Engineer and member of the Society of Petroleum Engineers.

For further information, please contact:

UK Oil & Gas PLC

Stephen Sanderson / Kiran Morzaria Tel: 01483 900582

WH Ireland Ltd (Nominated Adviser and Broker)

James Joyce / James Sinclair-Ford Tel: 020 7220 1666

Cenkos Securities PLC (Joint Broker)

Joe Nally / Neil McDonald Tel: 0207 397 8919

Novum Securities (Joint Broker)

John Bellis Tel: 020 7399 9400

Public Relations

Brian Alexander Tel: 01483 900582

Glossary

 
 coring       a drilling technique that involves using a doughnut-shaped 
               drilling bit to capture or "cut" a continuous cylinder-shaped 
               sample of 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 with a diameter of 3-4.5 inches. 
               Core is taken in petroleum reservoir rocks for 
               detailed laboratory analyses of geological, geochemical 
               petrophysical and geomechanical properties 
 horizontal   a well that during drilling is steered so as to 
  well         follow and remain within a particular geological 
               stratum or reservoir unit having a trajectory that 
               runs approximately parallel to the top and or base 
               of the target horizon 
             --------------------------------------------------------------- 
 oil field    an accumulation, pool or group of pools of oil 
               in the subsurface that produces oil to surface 
             --------------------------------------------------------------- 
 well test    or flow test involves testing a well by flowing 
               hydrocarbons to surface, typically through a test 
               separator; key measured parameters are oil and 
               gas flow rates, downhole pressure and surface pressure. 
               The overall objective is to identify the well's 
               capacity to produce hydrocarbons at a commercial 
               flow rate and volumes. 
             --------------------------------------------------------------- 
 

UKOG Licence Interests

The Company has interests in the following UK licences:

 
Asset                    Licence      UKOG         Licence        Operator      Area (km(2) )          Status 
                                     Interest       Holder 
                                                    UKOG            IGas                          Field currently 
Avington                                             (GB)           Energy                           temporarily 
 (1)                     PEDL070       5%          Limited           Plc            18.3               shut in 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
                                                                                                    BB-1/1z oil 
                                                                                                     discovery, 
Broadford                                                                                           Loxley-1 gas 
 Bridge/Loxley/Godley                                                                                 appraisal 
 Bridge                                             UKOG            UKOG                            well planning 
 (2, 3,                                             (234)           (234)                            application 
 8)                      PEDL234      100%         Ltd (4)         Ltd (4)          300.0             submitted 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
                                                                                                     Finalising 
                                                                                                 new site selection 
                                                                                                  to drill Portland 
                                                                    UKOG                           and Kimmeridge 
A24 (3)                  PEDL143      67.5%         UKOG             (7)            91.8              prospects 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
                                                    UKOG            IGas 
Horndean                                             (GB)           Energy                        Field in stable 
 (1)                      PL211        10%         Limited           Plc            27.3             production 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
                                                    Horse           Horse 
                                                     Hill            Hill                            Production 
Horse Hill                                       Developments    Developments                      tests ongoing, 
 (5)                     PEDL137     85.635%         Ltd             Ltd            99.3          HH-2/2z drilling 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
                                                    Horse           Horse 
                                                     Hill            Hill 
Horse Hill                                       Developments    Developments 
 (5)                     PEDL246     85.635%         Ltd             Ltd            43.6              As above 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
                                                                                                     Preparing 
                                                                                                 planning submission 
                                                                                                    for Arreton-3 
                                                                                                    oil appraisal 
Isle of                                                                                           well and Arreton 
 Wight (Onshore)                                                                                  South exploration 
 (2, 3)                  PEDL331       95%          UKOG            UKOG            200.0               well 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
                                                    UKOG            UKOG 
Markwells                                            (GB)            (GB) 
 Wood                    PEDL126      100%         Limited         Limited          11.2              MW-1 P&A 
----------------------             ----------  --------------  --------------  --------------  --------------------- 
 

Notes:

1. Oil field currently in stable production.

2. Oil discovery pending development and/or appraisal drilling.

3. Exploration asset with drillable prospects and leads.

4. Contains the Broadford Bridge-1/1z Kimmeridge oil discovery, the eastern extension of the Godley Bridge Portland gas discovery, plus further undrilled Kimmeridge exploration prospects.

5. Portland and Kimmeridge Oil field with productive and commercially viable zones, EWT ongoing, production planning consent granted in September 2019, appraisal/development drilling campaign underway. Long term production start expected late 2019.

6. UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246.

7. OGA consent received for the transfer of operatorship from Europa to UKOG

8. Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential

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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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