UK Oil & Gas PLC Loxley appeal submitted to Planning Inspectorate (5311O)

TIDMUKOG

RNS Number : 5311O

UK Oil & Gas PLC

10 February 2021

UK Oil & Gas PLC

("UKOG" or the "Company")

Loxley appeal submitted to Planning Inspectorate

UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce today that, further to its announcement of 17(th) December 2020, the Company has now lodged an appeal with the Planning Inspectorate against Surrey County Council's ("SCC") 15(th) December 2020 decision to refuse planning consent for the Loxley gas appraisal project. Pandemic permitting, the expectation is that a public inquiry will be held in the autumn, with a decision by the end of 2021.

Leading Counsel continues to advise that there are strong grounds to expect a positive appeal outcome, as SCC's cited grounds for refusal are in direct conflict with the advice of its professional Planning and Highway Officers and their respective recommendations for approval.

UKOG's submitted Statement of Case can be viewed on its website:

https://www.ukogplc.com/

As previously reported on 19(th) September 2020, in terms of recoverable gas resources, Loxley, 100%-owned by UKOG, is estimated to be one of the largest gas accumulations discovered and flow tested in the UK onshore. Its success case is estimated to be capable of providing energy to power around 200,000 homes per year.

Furthermore, as stated at the SCC planning committee meetings of 29(th) June and 27(th) November 2020, the Company envisages Loxley could play its part in helping achieve net-zero via the supply of gas feedstock for reformation into clean burning hydrogen, an energy source with an 85% reduction in related carbon emissions versus natural gas.

Loxley's and other UK domestic gas also provide a much lower carbon-footprint hydrogen feedstock option than imports, having approximately a quarter of the carbon emissions of imported liquefied natural gas.

Stephen Sanderson UKOG's Chief Executive commented:

"We take comfort that the future of Loxley as a low-impact hydrogen feedstock project will now be decided by a professional planning inspector, who must consider hard facts, not fiction, and arrive at a decision that is wholly consistent with the objective evidence presented. Our planning case is strong and we remain confident of a positive result."

For further information, please contact:

 
 
   UK Oil & Gas PLC 
  Stephen Sanderson / Kiran Morzaria   Tel: [phone] 
  WH Ireland Ltd (Nominated Adviser 
   and Broker) 
  James Joyce / James Sinclair-Ford    Tel: [phone] 
  Communications 
  Brian Alexander                      Tel: [phone] 
 
 

UKOG Licence Interests

The Company has interests in the following UK and international licences:

 
Asset            Licence      UKOG      Licence Holder      Operator      Area          Status 
                             Interest                                      (km 
                                                                           (2) 
                                                                            ) 
Avington                                  UKOG (GB)       IGas Energy             Field temporarily 
 (1)             PEDL070       5%           Limited            Plc        18.3          shut in 
-------------              ----------  ---------------  ---------------  -----  --------------------- 
Loxley                                                                              Loxley/Godley 
 & Broadford                                                                          Bridge gas 
 Bridge                                                                               discovery, 
 (2, 3,                                   UKOG (234)       UKOG (234)                 BB-1/1z oil 
 7)              PEDL234      100%          Ltd (4)          Ltd (4)      300          discovery 
-------------              ----------  ---------------  ---------------  -----  --------------------- 
Horndean                                  UKOG (GB)       IGas Energy              Field in stable 
 (1)              PL211        10%          Limited            Plc        27.3        production 
-------------              ----------  ---------------  ---------------  -----  --------------------- 
                                          Horse Hill       Horse Hill 
Horse                                    Developments     Developments             Field in stable 
 Hill (1)(,)     PEDL137     85.635%          Ltd              Ltd        99.3        production 
-------------              ----------  ---------------  ---------------  -----  --------------------- 
                                          Horse Hill       Horse Hill 
Horse                                    Developments     Developments             Field in stable 
 Hill (1)(,)     PEDL246     85.635%          Ltd              Ltd        43.6        production 
-------------              ----------  ---------------  ---------------  -----  --------------------- 
                                                                                 Planning application 
                                                                                       submitted 
Isle                                                                                  for Arreton 
 of Wight                                                                            oil appraisal 
 (2, 3)          PEDL331       95%           UKOG             UKOG        200            well 
-------------              ----------  ---------------  ---------------  -----  --------------------- 
                                                                                      Appraisal 
                                                                                    of Basur-Resan 
                                                                                     oil discovery 
Resan                                                                                plus further 
 Turkey                                                                            expl. prospects. 
 (2, 3,         M-47-b1,                 UKOG Turkey     Aladdin Middle            Drilling planned 
 8)                 b2         50%            Ltd             East        305           in 2021 
-------------              ----------  ---------------  ---------------  -----  --------------------- 
 

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 Loxley Portland gas accumulation, the Broadford Bridge-1/1z Kimmeridge oil discovery, plus further undrilled Kimmeridge exploration prospects.

5. Portland and Kimmeridge oil field with productive and commercially viable zones, HH-1 in stable oil production, production planning consent granted in September 2019, long-term production consent granted in March 2020.

   6.   UKOG has a direct 77.9% interest in HHDL, which has a 65% interest in PEDL137 and PEDL246. 
   7.   Gas discovery pending appraisal drilling and development with underlying Kimmeridge potential 

8. High-impact oil appraisal project with an upside OIP range of 150-500 mmbbl gross with expected recovery factors of 10-20% of OIP

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014

END

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February 10, 2021 02:00 ET (07:00 GMT)